Wells Fargo Reports $5.6 Billion in Quarterly Net Income

Diluted EPS of $1.01; Revenue Up 4 Percent from Prior Year

SAN FRANCISCO--(BUSINESS WIRE)-- Wells Fargo & Company (NYSE:WFC):

• Continued strong financial results:
  • Net income of $5.6 billion, compared with $5.7 billion in second quarter 2015
  • Diluted earnings per share (EPS) of $1.01, compared with $1.03
  • Revenue of $22.2 billion, up 4 percent
  • Pre-tax pre-provision profit¹ of $9.3 billion, up 5 percent
  • Return on assets of 1.20 percent and return on equity of 11.70 percent

• Strong growth in loans and deposits:
  • Total average loans of $950.8 billion, up $80.3 billion, or 9 percent, from second quarter 2015
  • Total average deposits of $1.2 trillion, up $51.4 billion, or 4 percent
• Solid overall credit quality:
  • Net charge-offs of $924 million, up $274 million from second quarter 2015 on higher losses in the oil and gas portfolio
    • Net charge-offs were 0.39 percent of average loans (annualized), up from 0.30 percent
  • Nonaccrual loans down $480 million, or 4 percent
  • Reserve build² of $150 million, primarily driven by loan growth, compared with a $350 million reserve release² in second quarter 2015

• Maintained strong capital levels while continuing to return capital to shareholders:
  • Common Equity Tier 1 ratio (fully phased-in) of 10.6 percent³
  • Total stockholders' equity exceeded $200 billion for the first time
  • Period-end common shares outstanding down 27.4 million from first quarter 2016
  • Increased quarterly common stock dividend to $0.38 per share under the Company's 2015 Comprehensive Capital Analysis and Review (CCAR) submission

• Received a non-objection to the Company's 2016 CCAR submission from the Federal Reserve.

Selected Financial Information
			Quarter ended
			Jun 30, 2016					Mar 31, 2016				Jun 30, 2015
Earnings
Diluted earnings per common share			$	1.01				0.99				1.03
Wells Fargo net income (in billions)			5.56					5.46				5.72
Return on assets (ROA)			1.20		%			1.21				1.33
Return on equity (ROE)			11.70					11.75				12.71
Return on average tangible common equity (ROTCE)(a)			14.15					14.15				15.32
Asset Quality
Net charge-offs (annualized) as a % of average total loans			0.39		%			0.38				0.30
Allowance for credit losses as a % of total loans			1.33					1.34				1.42
Allowance for credit losses as a % of annualized net charge-offs			343					355				484
Other
Revenue (in billions)			$	22.2				22.2				21.3
Efficiency ratio			58.1		%			58.7				58.5
Average loans (in billions)			$	950.8				927.2				870.4
Average deposits (in billions)			1,236.7					1,219.4				1,185.3
Net interest margin			2.86		%			2.90				2.97
(a) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 35.

Wells Fargo & Company (NYSE:WFC) reported net income of $5.6 billion, or $1.01 per diluted common share, for second quarter 2016, compared with $5.7 billion, or $1.03 per share, for second quarter 2015, and $5.5 billion, or $0.99 per share, for first quarter 2016.

Chairman and CEO John Stumpf said, “Wells Fargo's second quarter results demonstrated our ability to generate consistent performance during periods of economic, capital markets and interest rate uncertainty. Compared with a year ago, we had solid growth in loans, deposits and customers, which are our fundamental drivers of long-term value. We also improved our efficiency ratio while continuing to reinvest in the franchise. We returned more capital to our shareholders in the quarter and were pleased to have received a non-objection to our 2016 Capital Plan from the Federal Reserve. We remain well positioned to continue to meet the financial needs of our customers.”

Chief Financial Officer John Shrewsberry added, “Second quarter results benefited from our diversified business model, as demonstrated by higher linked-quarter net interest income, growth in many of our fee-based businesses and positive operating leverage. Earning assets increased in the second quarter, driven by growth in both loans and investment securities. Investment securities were up $18.5 billion in the second quarter, reflecting gross purchases of approximately $38 billion compared with $5 billion in first quarter. Second quarter purchases were made at interest rate levels above those available late in the quarter, after the 'Brexit' vote. We continue to have capacity for additional deployment of liquidity, but will remain disciplined in our investment approach. Capital remained strong with a net payout ratio⁴ of 62 percent in the quarter, as we returned $3.2 billion to shareholders through common stock dividends and net share repurchases."

Net Interest Income

Net interest income in second quarter 2016 increased $66 million from first quarter 2016 to $11.7 billion, primarily driven by loan growth, including the full quarter benefit of the assets acquired from GE Capital that closed late in the first quarter. The benefit to net interest income from loan growth was partially offset by reduced income in the investment securities portfolio reflecting accelerated prepayments, primarily on our mortgage-backed securities (MBS), increased interest expense from higher debt balances, and lower interest income from trading assets.

Net interest margin was 2.86 percent, down 4 basis points from first quarter 2016. The decline was primarily driven by the impact of growth in long-term debt, growth in deposits and reduced income on investment securities. The impact of all other balance sheet growth, mix changes and repricing was beneficial to the net interest margin.

Noninterest Income

Noninterest income in the second quarter was $10.4 billion, down from $10.5 billion in first quarter 2016. Second quarter noninterest income reflected higher net gains on debt securities, trust and investment fees, net gains from trading activities, lease income, card fees and service charges on deposit accounts. These increases were partially offset by a linked-quarter reduction in other income, driven by a decline in hedge ineffectiveness income from $379 million in first quarter 2016 to $56 million in second quarter. Other income also included a $290 million gain on the sale of our health benefit services business in second quarter 2016, while first quarter results included a $381 million gain from the sale of our crop insurance business. Insurance revenue declined $141 million linked quarter, due to the sale of our crop insurance business.

Trust and investment fees were $3.5 billion, up $162 million from the prior quarter, primarily due to higher investment banking fees, as well as higher retail brokerage asset-based fees and transaction activity, and trust and investment management fees.

Mortgage banking noninterest income was $1.4 billion, down $184 million from first quarter 2016, as a $306 million increase in origination gains was more than offset by a decline in servicing revenue due in part to lower mortgage servicing rights (MSR) hedging results. Residential mortgage loan originations were $63 billion in the second quarter, up $19 billion linked quarter. The production margin on residential held-for-sale mortgage loan originations⁵ was 1.66 percent, compared with 1.68 percent in first quarter.

Noninterest Expense

Noninterest expense declined $162 million from the prior quarter, primarily due to lower employee benefits, which were seasonally elevated in first quarter 2016, as well as lower operating losses. Insurance expense also declined as a result of the first quarter 2016 sale of our crop insurance business. The decline in noninterest expense was partially offset by higher outside professional services, primarily for project-related expenses, and higher operating lease depreciation expense as a result of the GE Capital transactions. The efficiency ratio was 58.1 percent in second quarter 2016, compared with 58.7 percent in the prior quarter. The Company continues to expect to operate at the higher end of its targeted efficiency ratio range of 55 to 59 percent for full year 2016.

Loans

Total loans were $957.2 billion at June 30, 2016, up $9.9 billion, or 1 percent, from March 31, 2016, driven by growth in commercial loans, including commercial and industrial and real estate mortgage loans, as well as growth in consumer loans, including real estate 1-4 family first mortgage loans, credit card and automobile. Total average loans were $950.8 billion in the second quarter, up $23.5 billion from the prior quarter, and included the full quarter impact of the March 1, 2016 acquisition of GE Capital's Commercial Distribution Finance and Vendor Finance businesses, as well as a portion of its Corporate Finance business.

Period-End Loan Balances
(in millions)			Jun 30, 2016				Mar 31, 2016			Dec 31, 2015			Sep 30, 2015			Jun 30, 2015
Commercial			$	494,538			488,205			456,583			447,338			438,022
Consumer			462,619				459,053			459,976			455,895			450,437
Total loans			$	957,157			947,258			916,559			903,233			888,459
Change from prior quarter			$	9,899			30,699			13,326			14,774			27,228

Investment Securities

Investment securities were $353.4 billion at June 30, 2016, up $18.5 billion from first quarter, as approximately $38 billion of purchases, predominantly federal agency MBS for our held-to-maturity portfolio, were partially offset by run-off, including accelerated prepayments of investment securities, and sales.

Net unrealized available-for-sale securities gains of $4.5 billion at June 30, 2016, increased from $3.5 billion at March 31, 2016, primarily due to a decline in interest rates, which was partially offset by widening credit spreads.

Deposits

Total average deposits for second quarter 2016 were $1.2 trillion, up 1 percent from the prior quarter, driven by a $13.4 billion increase in consumer and small business. The average deposit cost for second quarter 2016 was 11 basis points, up 3 basis points from a year ago and up 1 basis point from the prior quarter.

Capital

Capital levels remained strong in the second quarter, with Common Equity Tier 1 (fully phased-in) (CET1) of 10.6 percent³, compared with 10.6 percent in the prior quarter. In second quarter 2016, the Company repurchased 44.8 million shares of its common stock, reducing period-end common shares outstanding by 27.4 million shares. The Company paid a quarterly common stock dividend of $0.38 per share, up from $0.375 per share a year ago. The Company received a non-objection to its 2016 Capital Plan from the Federal Reserve.

Credit Quality

“Overall credit results were solid in the second quarter as our quarterly loss rate remained low, at 0.39 percent (annualized)," said Chief Risk Officer Mike Loughlin. "The loan portfolio continued to perform well, led by further improvement in consumer real estate. Oil and gas portfolio performance during the quarter was generally consistent with our expectations. Results in the oil and gas portfolio remained under pressure with higher credit losses and nonaccrual loans, while our allowance coverage ratio for the portfolio remained stable at 9.2 percent at quarter-end. The allowance for credit losses in the second quarter reflected a reserve build² of $150 million, primarily attributable to loan growth in the commercial, automobile and credit card portfolios. Future allowance levels will be based on a variety of factors, including loan growth, portfolio performance and general economic conditions.”

Net Loan Charge-offs

The quarterly loss rate of 0.39 percent (annualized) reflected commercial losses of 0.29 percent and consumer losses of 0.49 percent. Credit losses were $924 million in second quarter 2016, compared with $886 million in first quarter 2016, on $59 million higher oil and gas portfolio losses. Consumer losses decreased $82 million, driven by a $46 million decline in consumer real estate losses and a $37 million decline in automobile losses reflecting seasonality.

Net Loan Charge-Offs
			Quarter ended
			June 30, 2016									March 31, 2016									December 31, 2015
($ in millions)			Net loan charge- offs					As a % of average loans (a)				Net loan charge- offs					As a % of average loans (a)				Net loan charge- offs					As a % of average loans (a)
Commercial:
Commercial and industrial			$	368				0.46	%			$	273				0.36	%			$	215				0.29	%
Real estate mortgage			(20		)			(0.06	)			(29		)			(0.10	)			(19		)			(0.06	)
Real estate construction			(3		)			(0.06	)			(8		)			(0.13	)			(10		)			(0.18	)
Lease financing			12					0.27				1					0.01				1					0.01
Total commercial			357					0.29				237					0.20				187					0.16
Consumer:
Real estate 1-4 family first mortgage			14					0.02				48					0.07				50					0.07
Real estate 1-4 family junior lien mortgage			62					0.49				74					0.57				70					0.52
Credit card			270					3.25				262					3.16				243					2.93
Automobile			90					0.59				127					0.85				135					0.90
Other revolving credit and installment			131					1.32				138					1.42				146					1.49
Total consumer			567					0.49				649					0.57				644					0.56
Total			$	924				0.39	%			$	886				0.38	%			$	831				0.36	%
(a) Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 31 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets decreased $433 million from first quarter 2016 to $13.1 billion. Nonaccrual loans decreased $271 million from first quarter to $12.0 billion as an $809 million decrease in consumer nonaccruals was partially offset by a $651 million increase in oil and gas nonaccruals. Foreclosed assets of $1.1 billion were down $162 million from first quarter 2016.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
			June 30, 2016									March 31, 2016									December 31, 2015
($ in millions)			Total balances					As a % of total loans				Total balances					As a % of total loans				Total balances					As a % of total loans
Commercial:
Commercial and industrial			$	3,464				1.07	%			$	2,911				0.91	%			$	1,363				0.45	%
Real estate mortgage			872					0.68				896					0.72				969					0.79
Real estate construction			59					0.25				63					0.27				66					0.30
Lease financing			112					0.59				99					0.52				26					0.21
Total commercial			4,507					0.91				3,969					0.81				2,424					0.53
Consumer:
Real estate 1-4 family first mortgage			5,970					2.15				6,683					2.43				7,293					2.66
Real estate 1-4 family junior lien mortgage			1,330					2.67				1,421					2.77				1,495					2.82
Automobile			111					0.18				114					0.19				121					0.20
Other revolving credit and installment			45					0.11				47					0.12				49					0.13
Total consumer			7,456					1.61				8,265					1.80				8,958					1.95
Total nonaccrual loans			11,963					1.25				12,234					1.29				11,382					1.24
Foreclosed assets:
Government insured/guaranteed			321									386									446
Non-government insured/guaranteed			796									893									979
Total foreclosed assets			1,117									1,279									1,425
Total nonperforming assets			$	13,080				1.37	%			$	13,513				1.43	%			$	12,807				1.40	%
Change from prior quarter:
Total nonaccrual loans			$	(271	)							$	852								$	(155	)
Total nonperforming assets			(433		)							706									(497		)

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 $788 million at June 30, 2016, down from $803 million at March 31, 2016. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgage loans and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $11.6 billion at June 30, 2016, down from $12.3 billion at March 31, 2016.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.7 billion at June 30, 2016, compared with $12.7 billion at March 31, 2016. The allowance coverage for total loans was 1.33 percent, compared with 1.34 percent in first quarter 2016. The allowance covered 3.4 times annualized second quarter net charge-offs, compared with 3.6 times in the prior quarter. The allowance coverage for nonaccrual loans was 107 percent at June 30, 2016, compared with 104 percent at March 31, 2016. “We believe the allowance was appropriate for losses inherent in the loan portfolio at June 30, 2016,” said Loughlin.

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
(in millions)			Jun 30, 2016					Mar 31, 2016				Jun 30, 2015
Community Banking			$	3,179				3,296				3,215
Wholesale Banking			2,073					1,921				2,191
Wealth and Investment Management			584					512				586

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

Selected Financial Information
			Quarter ended
(in millions)			Jun 30, 2016					Mar 31, 2016				Jun 30, 2015
Total revenue			$	12,204				12,614				11,967
Provision for credit losses			689					720				397
Noninterest expense			6,648					6,836				6,719
Segment net income			3,179					3,296				3,215
(in billions)
Average loans			485.7					484.3				472.3
Average assets			967.6					947.4				910.0
Average deposits			703.7					683.0				654.8

Community Banking reported net income of $3.2 billion, down $117 million, or 4 percent, from first quarter 2016. Revenue of $12.2 billion decreased $410 million, or 3 percent, from first quarter 2016 due to lower other income (hedge ineffectiveness), mortgage banking revenue, and net interest income, partially offset by higher gains from sale of debt securities. Noninterest expense decreased $188 million, or 3 percent, compared with first quarter 2016, due to lower operating losses and other expense, partially offset by higher project-related expense. The provision for credit losses decreased $31 million from the prior quarter.

Net income was down $36 million, or 1 percent, from second quarter 2015. Revenue increased $237 million, or 2 percent, compared with a year ago due to higher gains on sale of debt securities, other income (hedge ineffectiveness), net interest income and card fees, partially offset by lower mortgage banking revenue, gains on equity investments, and trust and investment fees. Noninterest expense decreased $71 million, or 1 percent, from a year ago driven by lower operating losses and foreclosed assets expense, partially offset by higher personnel costs. The provision for credit losses increased $292 million from a year ago primarily due to a reserve build compared with a reserve release in second quarter 2015.

Regional Banking

• Retail Banking
  • Primary consumer checking customers⁶ up 4.7 percent year-over-year⁷
  • Debit card purchase volume⁸ of $76.4 billion in second quarter, up 8 percent year-over-year
  • Retail Banking household cross-sell ratio of 6.27 products per household, compared with 6.32 year-over-year^7,9

• Small Business Banking
  • Launched new online FastFlex^SM Small Business Loan offering a fast decision and funding as soon as the next business day
  • Wells Fargo was the nation’s #1 SBA 7(a) small business lender in dollars and units for the first three quarters of the 2016 federal fiscal year¹⁰
• Digital Banking
  • 27.4 million digital (online and mobile) active customers, including 18 million mobile active users^7,11

Consumer Lending Group

• Home Lending
  • Originations of $63 billion, up from $44 billion in prior quarter
  • Applications of $95 billion, up from $77 billion in prior quarter
  • Application pipeline of $47 billion at quarter end, up from $39 billion at March 31, 2016
  • Launched yourFirst Mortgage^SM to help more first-time homebuyers and low- to moderate-income families achieve sustainable homeownership
• Consumer Credit
  • Credit card purchase volume of $19.4 billion in second quarter, up 10 percent year-over-year
  • Credit card penetration in retail banking households rose to 45.6 percent, up from 44.6 percent in prior year^7,12
  • Auto originations of $8.3 billion in second quarter, up 8 percent from prior quarter and up 2 percent from prior year

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $5 million. Products and businesses include Business Banking, Middle Market Commercial Banking, Government and Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities, Principal Investments and Asset Backed Finance.

Selected Financial Information
			Quarter ended
(in millions)			Jun 30, 2016					Mar 31, 2016				Jun 30, 2015
Total revenue			$	7,284				6,958				6,610
Provision (reversal of provision) for credit losses			385					363				(84	)
Noninterest expense			4,036					3,968				3,504
Segment net income			2,073					1,921				2,191
(in billions)
Average loans			451.4					429.8				386.2
Average assets			772.6					748.6				713.7
Average deposits			425.8					428.0				432.4

Wholesale Banking reported net income of $2.1 billion, up $152 million, or 8 percent, from first quarter 2016. Revenue of $7.3 billion increased $326 million, or 5 percent, from prior quarter due to the full quarter impact of the March 1, 2016GE Capital acquisition, broad-based loan growth, strong customer accommodation trading results and increased investment banking fees as well as the gain on sale of our health benefit services business, partially offset by lower insurance fees due to the sale of our crop insurance business in the first quarter. Noninterest expense increased $68 million, or 2 percent, from the prior quarter driven by the full quarter impact of the GE Capital acquisition, as well as higher project-related spending, partially offset by seasonally lower personnel expenses and lower insurance commissions due to the sale of our crop insurance business. The provision for credit losses increased $22 million from the prior quarter.

Net income was down $118 million, or 5 percent, from second quarter 2015. Revenue increased $674 million, or 10 percent, from second quarter 2015, on strong loan growth, including the GE Capital acquisitions, the gain on sale of our health benefit services business, higher customer accommodation trading, increased investment banking fees and higher treasury management fees, partially offset by lower insurance fees due to the sale of our crop insurance business, lower commercial real estate brokerage fees and lower gains on equity investments. Noninterest expense increased $532 million, or 15 percent, from a year ago primarily due to the GE Capital acquisitions and higher personnel expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses increased $469 million from a year ago primarily due to higher oil and gas net charge-offs. The second quarter 2015 results included an $89 million reserve release.

• Average loans increased 17 percent from second quarter 2015, on broad-based growth, including asset-backed finance, commercial real estate, corporate banking, equipment finance and structured real estate as well as the GE Capital acquisitions
• Treasury management revenue up 5 percent from second quarter 2015
• The Commercial Electronic Office^® (CEO) mobile channel piloted biometric authentication to customers in second quarter, using eyeprint image capture technology

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

Selected Financial Information
			Quarter ended
(in millions)			Jun 30, 2016					Mar 31, 2016				Jun 30, 2015
Total revenue			$	3,919				3,854				3,976
Provision (reversal of provision) for credit losses			2					(14	)			(10	)
Noninterest expense			2,976					3,042				3,038
Segment net income			584					512				586
(in billions)
Average loans			66.7					64.1				59.3
Average assets			205.3					208.1				189.1
Average deposits			182.5					184.5				168.2

Wealth and Investment Management reported net income of $584 million, up $72 million, or 14 percent, from first quarter 2016. Revenue of $3.9 billion increased $65 million, or 2 percent, from the prior quarter, primarily due to higher asset-based fees and brokerage transaction revenue. Noninterest expense decreased $66 million, or 2 percent, from the prior quarter, primarily driven by lower personnel expenses from seasonally higher first quarter expense, partially offset by higher broker commissions. The provision for credit losses was up $16 million from first quarter 2016 due to higher net charge-offs.

Net income was relatively flat compared with second quarter 2015. Revenue decreased $57 million, or 1 percent, from a year ago primarily driven by lower asset-based fees and brokerage transaction revenue, partially offset by higher net interest income as average loans increased $7.4 billion, or 12 percent, to $66.7 billion. Noninterest expense decreased $62 million, or 2 percent, from a year ago, primarily due to lower operating losses. The provision for credit losses increased $12 million from a year ago primarily due to higher net charge-offs.

Retail Brokerage

• Client assets of $1.5 trillion, up 2 percent from prior year
• Advisory assets of $444 billion, up 2 percent from prior year, primarily driven by positive net flows
• Strong loan growth, with average balances up 20 percent from prior year largely due to continued growth in non-conforming mortgage loans and security-based lending

Wealth Management

• Client assets of $224 billion, stable from prior year
• Average loan balances up 9 percent over prior year primarily driven by continued growth in non-conforming mortgage loans, commercial loans and security-based lending

Retirement

• IRA assets of $367 billion, up 1 percent from prior year
• Institutional Retirement plan assets of $337 billion, down 3 percent from prior year

Asset Management

• Total assets under management of $484 billion, down 1 percent from prior year primarily due to equity fund outflows, partially offset by favorable fixed income net inflows and higher market valuations

Conference Call

The Company will host a live conference call on Friday, July 15, at 7 a.m. PT (10 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~071516.

A replay of the conference call will be available beginning at 10 a.m. PT (1 p.m. ET) on Friday, July 15 through Friday, July 29. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #96514871. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~071516.

Endnotes
1		Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
2		Reserve build represents the amount by which the provision for credit losses exceeds net charge-offs, while reserve release represents the amount by which net charge-offs exceed the provision for credit losses.
3		See table on page 36 for more information on Common Equity Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules.
4		Net payout ratio means the ratio of (i) common stock dividends and share repurchases less issuances and stock compensation-related items, divided by (ii) net income applicable to common stock.
5		Production margin represents net gains on residential mortgage loan origination/sales activities divided by total residential held-for-sale mortgage originations. See the Selected Five Quarter Residential Mortgage Production Data table on page 41 for more information.
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 May 2016, comparisons with May 2015.
8		Combined consumer and business debit card purchase volume dollars.
9		Effective second quarter 2016, Retail Banking households reflect only those households that maintain a retail checking account, which we believe provides the foundation for long-term retail banking relationships. Additionally, we updated the products included to capture business products in addition to retail products that have the potential for revenue generation and long-term viability. Products and services that generally do not meet these criteria - such as ATM cards, online banking, bill pay and direct deposit - are not included. Prior period metrics have been revised to conform with the updated methodology.
10		U.S. SBA data, partial fiscal year as of June 2016 (federal fiscal full-year 2016 is October 2015-September 2016).
11		Primarily includes retail banking, consumer lending, small business and business banking customers.
12		Effective second quarter 2016, Retail Banking households reflect only those households that maintain a retail checking account, which we believe provides the foundation for long-term retail banking relationships. Prior period metrics have been revised to conform with the updated methodology.

Forward-Looking Statements

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

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

• current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and the overall slowdown in global economic growth;
• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
• the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;
• the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;
• negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;
• our ability to realize our efficiency ratio target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;
• the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;
• significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased 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, 2015.

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, 2015, 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.

About Wells Fargo

Wells Fargo & Company (NYSE:WFC) is a diversified, community-based financial services company with $1.9 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 8,600 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries and territories to support customers who conduct business in the global economy. With approximately 268,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy 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			16
Income
Consolidated Statement of Income			18
Consolidated Statement of Comprehensive Income			20
Condensed Consolidated Statement of Changes in Total Equity			20
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)			21
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)			23
Noninterest Income and Noninterest Expense			24
Balance Sheet
Consolidated Balance Sheet			26
Investment Securities			28
Loans
Loans			28
Nonperforming Assets			29
Loans 90 Days or More Past Due and Still Accruing			30
Purchased Credit-Impaired Loans			31
Pick-A-Pay Portfolio			32
Changes in Allowance for Credit Losses			34
Equity
Tangible Common Equity			35
Common Equity Tier 1 Under Basel III			36
Operating Segments
Operating Segment Results			37
Other
Mortgage Servicing and other related data			39

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
																% Change
			Quarter ended													Jun 30, 2016 from								Six months ended
($ in millions, except per share			Jun 30,					Mar 31,				Jun 30,				Mar 31,				Jun 30,				Jun 30,					Jun 30,				%
amounts)			2016					2016				2015				2016				2015				2016					2015				Change
For the Period
Wells Fargo net income			$	5,558				5,462				5,719				2	%			(3	)			$	11,020				11,523				(4	)%
Wells Fargo net income applicable to common stock				5,173				5,085				5,363				2				(4	)				10,258				10,824				(5	)
Diluted earnings per common share				1.01				0.99				1.03				2				(2	)				2.00				2.07				(3	)
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)				1.20	%			1.21				1.33				(1	)			(10	)				1.20				1.35				(11	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)				11.70				11.75				12.71				—				(8	)				11.72				12.94				(9	)
Return on average tangible common equity (ROTCE)(1)				14.15				14.15				15.32				—				(8	)				14.15				15.61				(9	)
Efficiency ratio (2)				58.1				58.7				58.5				(1	)			(1	)				58.4				58.6				—
Total revenue			$	22,162				22,195				21,318				—				4				$	44,357				42,596				4
Pre-tax pre-provision profit (PTPP) (3)				9,296				9,167				8,849				1				5					18,463				17,620				5
Dividends declared per common share				0.380				0.375				0.375				1				1					0.755				0.725				4
Average common shares outstanding				5,066.9				5,075.7				5,151.9				—				(2	)				5,071.3				5,156.1				(2	)
Diluted average common shares outstanding				5,118.1				5,139.4				5,220.5				—				(2	)				5,129.8				5,233.2				(2	)
Average loans			$	950,751				927,220				870,446				3				9				$	938,986				866,873				8
Average assets				1,862,084				1,819,875				1,729,278				2				8					1,840,980				1,718,597				7
Average total deposits				1,236,658				1,219,430				1,185,304				1				4					1,228,044				1,180,077				4
Average consumer and small business banking deposits (4)				726,359				714,837				674,889				2				8					720,598				670,418				7
Net interest margin				2.86	%			2.90				2.97				(1	)			(4	)				2.88				2.96				(3	)
At Period End
Investment securities			$	353,426				334,899				340,769				6				4				$	353,426				340,769				4
Loans				957,157				947,258				888,459				1				8					957,157				888,459				8
Allowance for loan losses				11,664				11,621				11,754				—				(1	)				11,664				11,754				(1	)
Goodwill				26,963				27,003				25,705				—				5					26,963				25,705				5
Assets				1,889,235				1,849,182				1,720,617				2				10					1,889,235				1,720,617				10
Deposits				1,245,473				1,241,490				1,185,828				—				5					1,245,473				1,185,828				5
Common stockholders' equity				178,633				175,534				169,596				2				5					178,633				169,596				5
Wells Fargo stockholders’ equity				201,745				197,496				189,558				2				6					201,745				189,558				6
Total equity				202,661				198,504				190,676				2				6					202,661				190,676				6
Tangible common equity (1)				148,110				144,679				140,520				2				5					148,110				140,520				5
Common shares outstanding				5,048.5				5,075.9				5,145.2				(1	)			(2	)				5,048.5				5,145.2				(2	)
Book value per common share (5)			$	35.38				34.58				32.96				2				7				$	35.38				32.96				7
Tangible book value per common share (1)(5)				29.34				28.50				27.31				3				7					29.34				27.31				7
Common stock price:
High				51.41				53.27				58.26				(3	)			(12	)				53.27				58.26				(9	)
Low				44.50				44.50				53.56				—				(17	)				44.50				50.42				(12	)
Period end				47.33				48.36				56.24				(2	)			(16	)				47.33				56.24				(16	)
Team members (active, full-time equivalent)				267,900				268,600				265,800				—				1					267,900				265,800				1
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 35.
(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) Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(5) Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA
			Quarter ended
			Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
($ in millions, except per share amounts)			2016				2016				2015				2015				2015
For the Quarter
Wells Fargo net income			$5,558				5,462				5,575				5,796				5,719
Wells Fargo net income applicable to common stock			5,173				5,085				5,203				5,443				5,363
Diluted earnings per common share			1.01				0.99				1.00				1.05				1.03
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)			1.20	%			1.21				1.24				1.32				1.33
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			11.70				11.75				11.93				12.62				12.71
Return on average tangible common equity (ROTCE)(1)			14.15				14.15				14.30				15.19				15.32
Efficiency ratio (2)			58.1				58.7				58.4				56.7				58.5
Total revenue			$22,162				22,195				21,586				21,875				21,318
Pre-tax pre-provision profit (PTPP) (3)			9,296				9,167				8,987				9,476				8,849
Dividends declared per common share			0.380				0.375				0.375				0.375				0.375
Average common shares outstanding			5,066.9				5,075.7				5,108.5				5,125.8				5,151.9
Diluted average common shares outstanding			5,118.1				5,139.4				5,177.9				5,193.8				5,220.5
Average loans			$950,751				927,220				912,280				895,095				870,446
Average assets			1,862,084				1,819,875				1,787,287				1,746,402				1,729,278
Average total deposits			1,236,658				1,219,430				1,216,809				1,198,874				1,185,304
Average consumer and small business banking deposits (4)			726,359				714,837				696,484				683,245				674,889
Net interest margin			2.86	%			2.90				2.92				2.96				2.97
At Quarter End
Investment securities			$353,426				334,899				347,555				345,074				340,769
Loans			957,157				947,258				916,559				903,233				888,459
Allowance for loan losses			11,664				11,621				11,545				11,659				11,754
Goodwill			26,963				27,003				25,529				25,684				25,705
Assets			1,889,235				1,849,182				1,787,632				1,751,265				1,720,617
Deposits			1,245,473				1,241,490				1,223,312				1,202,179				1,185,828
Common stockholders' equity			178,633				175,534				172,036				172,089				169,596
Wells Fargo stockholders’ equity			201,745				197,496				192,998				193,051				189,558
Total equity			202,661				198,504				193,891				194,043				190,676
Tangible common equity (1)			148,110				144,679				143,337				143,352				140,520
Common shares outstanding			5,048.5				5,075.9				5,092.1				5,108.5				5,145.2
Book value per common share (5)			$35.38				34.58				33.78				33.69				32.96
Tangible book value per common share (1)(5)			29.34				28.50				28.15				28.06				27.31
Common stock price:
High			51.41				53.27				56.34				58.77				58.26
Low			44.50				44.50				49.51				47.75				53.56
Period end			47.33				48.36				54.36				51.35				56.24
Team members (active, full-time equivalent)			267,900				268,600				264,700				265,200				265,800
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 35.
(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) Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(5) Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
			Quarter ended June 30,									%				Six months ended June 30,									%
(in millions, except per share amounts)			2016					2015				Change				2016					2015				Change
Interest income
Trading assets			$	572				483				18	%			$	1,168				928				26	%
Investment securities				2,176				2,181				—					4,438				4,325				3
Mortgages held for sale				181				209				(13	)				342				386				(11	)
Loans held for sale				3				5				(40	)				5				10				(50	)
Loans				9,822				9,098				8					19,399				18,036				8
Other interest income				392				250				57					766				504				52
Total interest income				13,146				12,226				8					26,118				24,189				8
Interest expense
Deposits				332				232				43					639				490				30
Short-term borrowings				77				21				267					144				39				269
Long-term debt				921				620				49					1,763				1,224				44
Other interest expense				83				83				—					172				180				(4	)
Total interest expense				1,413				956				48					2,718				1,933				41
Net interest income				11,733				11,270				4					23,400				22,256				5
Provision for credit losses				1,074				300				258					2,160				908				138
Net interest income after provision for credit losses				10,659				10,970				(3	)				21,240				21,348				(1	)
Noninterest income
Service charges on deposit accounts				1,336				1,289				4					2,645				2,504				6
Trust and investment fees				3,547				3,710				(4	)				6,932				7,387				(6	)
Card fees				997				930				7					1,938				1,801				8
Other fees				906				1,107				(18	)				1,839				2,185				(16	)
Mortgage banking				1,414				1,705				(17	)				3,012				3,252				(7	)
Insurance				286				461				(38	)				713				891				(20	)
Net gains from trading activities				328				133				147					528				541				(2	)
Net gains on debt securities				447				181				147					691				459				51
Net gains from equity investments				189				517				(63	)				433				887				(51	)
Lease income				497				155				221					870				287				203
Other				482				(140	)			NM					1,356				146				829
Total noninterest income				10,429				10,048				4					20,957				20,340				3
Noninterest expense
Salaries				4,099				3,936				4					8,135				7,787				4
Commission and incentive compensation				2,604				2,606				—					5,249				5,291				(1	)
Employee benefits				1,244				1,106				12					2,770				2,583				7
Equipment				493				470				5					1,021				964				6
Net occupancy				716				710				1					1,427				1,433				—
Core deposit and other intangibles				299				312				(4	)				592				624				(5	)
FDIC and other deposit assessments				255				222				15					505				470				7
Other				3,156				3,107				2					6,195				5,824				6
Total noninterest expense				12,866				12,469				3					25,894				24,976				4
Income before income tax expense				8,222				8,549				(4	)				16,303				16,712				(2	)
Income tax expense				2,649				2,763				(4	)				5,216				5,042				3
Net income before noncontrolling interests				5,573				5,786				(4	)				11,087				11,670				(5	)
Less: Net income from noncontrolling interests				15				67				(78	)				67				147				(54	)
Wells Fargo net income			$	5,558				5,719				(3	)			$	11,020				11,523				(4	)
Less: Preferred stock dividends and other				385				356				8					762				699				9
Wells Fargo net income applicable to common stock			$	5,173				5,363				(4	)			$	10,258				10,824				(5	)
Per share information
Earnings per common share			$	1.02				1.04				(2	)			$	2.02				2.10				(4	)
Diluted earnings per common share				1.01				1.03				(2	)				2.00				2.07				(3	)
Dividends declared per common share				0.380				0.375				1					0.755				0.725				4
Average common shares outstanding				5,066.9				5,151.9				(2	)				5,071.3				5,156.1				(2	)
Diluted average common shares outstanding				5,118.1				5,220.5				(2	)				5,129.8				5,233.2				(2	)
NM – Not meaningful

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions, except per share amounts)			2016					2016				2015				2015				2015
Interest income
Trading assets			$	572				596				558				485				483
Investment securities				2,176				2,262				2,323				2,289				2,181
Mortgages held for sale				181				161				176				223				209
Loans held for sale				3				2				5				4				5
Loans				9,822				9,577				9,323				9,216				9,098
Other interest income				392				374				258				228				250
Total interest income				13,146				12,972				12,643				12,445				12,226
Interest expense
Deposits				332				307				241				232				232
Short-term borrowings				77				67				13				12				21
Long-term debt				921				842				713				655				620
Other interest expense				83				89				88				89				83
Total interest expense				1,413				1,305				1,055				988				956
Net interest income				11,733				11,667				11,588				11,457				11,270
Provision for credit losses				1,074				1,086				831				703				300
Net interest income after provision for credit losses				10,659				10,581				10,757				10,754				10,970
Noninterest income
Service charges on deposit accounts				1,336				1,309				1,329				1,335				1,289
Trust and investment fees				3,547				3,385				3,511				3,570				3,710
Card fees				997				941				966				953				930
Other fees				906				933				1,040				1,099				1,107
Mortgage banking				1,414				1,598				1,660				1,589				1,705
Insurance				286				427				427				376				461
Net gains (losses) from trading activities				328				200				99				(26	)			133
Net gains on debt securities				447				244				346				147				181
Net gains from equity investments				189				244				423				920				517
Lease income				497				373				145				189				155
Other				482				874				52				266				(140	)
Total noninterest income				10,429				10,528				9,998				10,418				10,048
Noninterest expense
Salaries				4,099				4,036				4,061				4,035				3,936
Commission and incentive compensation				2,604				2,645				2,457				2,604				2,606
Employee benefits				1,244				1,526				1,042				821				1,106
Equipment				493				528				640				459				470
Net occupancy				716				711				725				728				710
Core deposit and other intangibles				299				293				311				311				312
FDIC and other deposit assessments				255				250				258				245				222
Other				3,156				3,039				3,105				3,196				3,107
Total noninterest expense				12,866				13,028				12,599				12,399				12,469
Income before income tax expense				8,222				8,081				8,156				8,773				8,549
Income tax expense				2,649				2,567				2,533				2,790				2,763
Net income before noncontrolling interests				5,573				5,514				5,623				5,983				5,786
Less: Net income from noncontrolling interests				15				52				48				187				67
Wells Fargo net income			$	5,558				5,462				5,575				5,796				5,719
Less: Preferred stock dividends and other				385				377				372				353				356
Wells Fargo net income applicable to common stock			$	5,173				5,085				5,203				5,443				5,363
Per share information
Earnings per common share			$	1.02				1.00				1.02				1.06				1.04
Diluted earnings per common share				1.01				0.99				1.00				1.05				1.03
Dividends declared per common share				0.380				0.375				0.375				0.375				0.375
Average common shares outstanding				5,066.9				5,075.7				5,108.5				5,125.8				5,151.9
Diluted average common shares outstanding				5,118.1				5,139.4				5,177.9				5,193.8				5,220.5

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
			Quarter ended June 30,									%				Six months ended June 30,									%
(in millions)				2016				2015				Change					2016				2015				Change
Wells Fargo net income			$	5,558				5,719				(3	)%			$	11,020				11,523				(4	)%
Other comprehensive income (loss), before tax:
Investment securities:
Net unrealized gains (losses) arising during the period				1,571				(1,969	)			NM					2,366				(1,576	)			NM
Reclassification of net gains to net income				(504	)			(218	)			131					(808	)			(518	)			56
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period				1,057				(488	)			NM					3,056				464				559
Reclassification of net gains on cash flow hedges to net income				(265	)			(268	)			(1	)				(521	)			(502	)			4
Defined benefit plans adjustments:
Net actuarial losses arising during the period				(19	)			—				NM					(27	)			(11	)			145
Amortization of net actuarial loss, settlements and other to net income				39				30				30					76				73				4
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period				(6	)			10				NM					37				(45	)			NM
Other comprehensive income (loss), before tax				1,873				(2,903	)			NM					4,179				(2,115	)			NM
Income tax (expense) benefit related to other comprehensive income				(714	)			1,040				NM					(1,571	)			812				NM
Other comprehensive income (loss), net of tax				1,159				(1,863	)			NM					2,608				(1,303	)			NM
Less: Other comprehensive income (loss) from noncontrolling interests				(15	)			(154	)			(90	)				(43	)			147				NM
Wells Fargo other comprehensive income (loss), net of tax				1,174				(1,709	)			NM					2,651				(1,450	)			NM
Wells Fargo comprehensive income				6,732				4,010				68					13,671				10,073				36
Comprehensive income (loss) from noncontrolling interests				—				(87	)			(100	)				24				294				(92	)
Total comprehensive income			$	6,732				3,923				72				$	13,695				10,367				32
NM – Not meaningful

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
Balance, beginning of period			$	198,504				193,891				194,043				190,676				189,964
Cumulative effect from change in consolidation accounting (1)				—				121				—				—				—
Wells Fargo net income				5,558				5,462				5,575				5,796				5,719
Wells Fargo other comprehensive income (loss), net of tax				1,174				1,477				(2,092	)			321				(1,709	)
Noncontrolling interests				(92	)			(5	)			(100	)			(123	)			(51	)
Common stock issued				397				1,079				310				505				502
Common stock repurchased (2)				(2,214	)			(2,029	)			(1,974	)			(2,137	)			(1,994	)
Preferred stock released by ESOP				371				313				210				225				349
Common stock warrants repurchased/exercised				—				—				—				(17	)			(24	)
Preferred stock issued				1,126				975				—				975				—
Common stock dividends				(1,930	)			(1,904	)			(1,917	)			(1,926	)			(1,932	)
Preferred stock dividends				(386	)			(378	)			(371	)			(356	)			(355	)
Tax benefit from stock incentive compensation				23				149				22				22				55
Stock incentive compensation expense				139				369				204				98				166
Net change in deferred compensation and related plans				(9	)			(1,016	)			(19	)			(16	)			(14	)
Balance, end of period			$	202,661				198,504				193,891				194,043				190,676
(1) Effective January 1, 2016, we adopted changes in consolidation accounting pursuant to Accounting Standards Update 2015-02 (Amendments to the Consolidation Analysis). Accordingly, we recorded a $121 million net increase to beginning noncontrolling interests as a cumulative-effect adjustment.
(2) For the quarters ended December 31 and June 30, 2015, includes $500 million and $750 million related to private forward repurchase transactions that settled in subsequent quarters for 9.2 million and 13.6 million shares of common stock, respectively.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
			Quarter ended June 30,
			2016														2015
												Interest													Interest
			Average					Yields/				income/					Average				Yields/				income/
(in millions)			balance					rates				expense					balance				rates				expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments			$	293,783				0.49	%			$	359				267,101				0.28	%			$	186
Trading assets			81,380					2.86				582					67,615				2.91				492
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies			31,525					1.56				123					31,748				1.58				125
Securities of U.S. states and political subdivisions			52,201					4.24				553					47,075				4.13				486
Mortgage-backed securities:
Federal agencies			92,010					2.53				583					97,958				2.65				650
Residential and commercial			19,571					5.44				266					22,677				5.84				331
Total mortgage-backed securities			111,581					3.04				849					120,635				3.25				981
Other debt and equity securities			53,301					3.48				461					48,816				3.51				427
Total available-for-sale securities			248,608					3.20				1,986					248,274				3.25				2,019
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies			44,671					2.19				243					44,492				2.19				243
Securities of U.S. states and political subdivisions			2,155					5.41				29					2,090				5.17				27
Federal agency mortgage-backed securities			35,057					1.90				166					21,044				2.00				105
Other debt securities			4,077					1.92				20					6,270				1.70				26
Total held-to-maturity securities			85,960					2.14				458					73,896				2.18				401
Total investment securities			334,568					2.93				2,444					322,170				3.01				2,420
Mortgages held for sale (4)			20,140					3.60				181					23,456				3.57				209
Loans held for sale (4)			239					4.83				3					666				3.51				5
Loans:
Commercial:
Commercial and industrial - U.S.			270,862					3.45				2,328					231,551				3.36				1,939
Commercial and industrial - Non U.S.			51,201					2.35				300					45,123				1.93				217
Real estate mortgage			126,126					3.41				1,069					113,089				3.48				982
Real estate construction			23,115					3.49				200					20,771				4.12				214
Lease financing			18,930					5.12				242					12,364				5.16				160
Total commercial			490,234					3.39				4,139					422,898				3.33				3,512
Consumer:
Real estate 1-4 family first mortgage			275,854					4.01				2,765					266,023				4.12				2,740
Real estate 1-4 family junior lien mortgage			50,609					4.37				551					57,066				4.23				603
Credit card			33,368					11.52				956					30,373				11.69				885
Automobile			61,149					5.66				860					56,974				5.88				836
Other revolving credit and installment			39,537					5.91				581					37,112				5.88				544
Total consumer			460,517					4.98				5,713					447,548				5.02				5,608
Total loans (4)			950,751					4.16				9,852					870,446				4.20				9,120
Other			6,014					2.30				35					4,859				5.14				64
Total earning assets			$	1,686,875				3.20	%			$	13,456				1,556,313				3.22	%			$	12,496
Funding sources
Deposits:
Interest-bearing checking			$	39,772				0.13	%			$	13				38,551				0.05	%			$	5
Market rate and other savings			658,944					0.07				110					619,837				0.06				87
Savings certificates			26,246					0.35				23					32,454				0.63				52
Other time deposits			61,170					0.85				129					52,238				0.42				55
Deposits in foreign offices			97,525					0.23				57					104,334				0.13				33
Total interest-bearing deposits			883,657					0.15				332					847,414				0.11				232
Short-term borrowings			111,848					0.28				78					84,499				0.09				21
Long-term debt			236,156					1.56				921					185,093				1.34				620
Other liabilities			16,336					2.06				83					16,405				2.03				83
Total interest-bearing liabilities			1,247,997					0.45				1,414					1,133,411				0.34				956
Portion of noninterest-bearing funding sources			438,878														422,902
Total funding sources			$	1,686,875				0.34				1,414					1,556,313				0.25				956
Net interest margin and net interest income on a taxable-equivalent basis (5)								2.86	%			$	12,042								2.97	%			$	11,540
Noninterest-earning assets
Cash and due from banks			$	18,818													17,462
Goodwill			27,037														25,705
Other			129,354														129,798
Total noninterest-earning assets			$	175,209													172,965
Noninterest-bearing funding sources
Deposits			$	353,001													337,890
Other liabilities			60,083														67,595
Total equity			201,003														190,382
Noninterest-bearing funding sources used to fund earning assets			(438,878		)												(422,902	)
Net noninterest-bearing funding sources			$	175,209													172,965
Total assets			$	1,862,084													1,729,278
(1) Our average prime rate was 3.50% and 3.25% for the quarters ended June 30, 2016 and 2015, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.64% and 0.28% for the same quarters, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.
(4) Nonaccrual loans and related income are included in their respective loan categories.
(5) Includes taxable-equivalent adjustments of $309 million and $270 million for the quarters ended June 30, 2016 and 2015, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
			Six months ended June 30,
			2016														2015
												Interest													Interest
			Average					Yields/				income/					Average				Yields/				income/
(in millions)			balance					rates				expense					balance				rates				expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments			$	289,240				0.49	%			$	703				271,392				0.28	%			$	376
Trading assets				80,922				2.94					1,187				65,309				2.89					945
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies				33,000				1.58					259				28,971				1.56					225
Securities of U.S. states and political subdivisions				51,357				4.24					1,088				46,017				4.16					958
Mortgage-backed securities:
Federal agencies				94,216				2.67					1,258				100,064				2.71					1,356
Residential and commercial				20,199				5.32					537				23,304				5.77					673
Total mortgage-backed securities				114,415				3.14					1,795				123,368				3.29					2,029
Other debt and equity securities				53,430				3.34					890				47,938				3.47					827
Total available-for-sale securities				252,202				3.20					4,032				246,294				3.28					4,039
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies				44,667				2.19					487				43,685				2.20					477
Securities of U.S. states and political subdivisions				2,155				5.41					58				2,019				5.16					52
Federal agency mortgage-backed securities				31,586				2.16					341				16,208				1.95					158
Other debt securities				4,338				1.92					42				6,530				1.71					55
Total held-to-maturity securities				82,746				2.25					928				68,442				2.18					742
Total investment securities				334,948				2.97					4,960				314,736				3.04					4,781
Mortgages held for sale (4)				19,005				3.60					342				21,530				3.59					386
Loans held for sale (4)				260				3.97					5				683				3.08					10
Loans:
Commercial:
Commercial and industrial - U.S.				264,295				3.42					4,505				229,627				3.32					3,783
Commercial and industrial - Non U.S.				50,354				2.23					558				45,093				1.90					426
Real estate mortgage				124,432				3.41					2,109				112,298				3.52					1,963
Real estate construction				22,859				3.55					403				20,135				3.83					383
Lease financing				16,989				4.95					420				12,341				5.06					312
Total commercial				478,929				3.35					7,995				419,494				3.30					6,867
Consumer:
Real estate 1-4 family first mortgage				275,288				4.03					5,547				265,923				4.12					5,481
Real estate 1-4 family junior lien mortgage				51,423				4.38					1,122				57,968				4.25					1,224
Credit card				33,367				11.56					1,919				30,376				11.74					1,768
Automobile				60,631				5.66					1,708				56,492				5.91					1,657
Other revolving credit and installment				39,348				5.95					1,165				36,620				5.94					1,079
Total consumer				460,057				5.00					11,461				447,379				5.03					11,209
Total loans (4)				938,986				4.16					19,456				866,873				4.19					18,076
Other				5,910				2.18					65				4,795				5.27					127
Total earning assets			$	1,669,271				3.21	%			$	26,718				1,545,318				3.21	%			$	24,701
Funding sources
Deposits:
Interest-bearing checking			$	39,242				0.12	%			$	24				38,851				0.05	%			$	10
Market rate and other savings				655,247				0.07					217				616,643				0.06					184
Savings certificates				27,063				0.40					54				33,525				0.69					116
Other time deposits				59,688				0.80					236				54,381				0.41					111
Deposits in foreign offices				97,604				0.22					108				104,932				0.13					69
Total interest-bearing deposits				878,844				0.15					639				848,332				0.12					490
Short-term borrowings				109,853				0.27					145				78,141				0.10					39
Long-term debt				226,519				1.56					1,763				184,432				1.33					1,224
Other liabilities				16,414				2.10					172				16,648				2.17					180
Total interest-bearing liabilities				1,231,630				0.44					2,719				1,127,553				0.34					1,933
Portion of noninterest-bearing funding sources				437,641				—					—				417,765				—					—
Total funding sources			$	1,669,271				0.33					2,719				1,545,318				0.25					1,933
Net interest margin and net interest income on a taxable-equivalent basis (5)								2.88	%			$	23,999								2.96	%			$	22,768
Noninterest-earning assets
Cash and due from banks			$	18,407													17,262
Goodwill				26,553													25,705
Other				126,749													130,312
Total noninterest-earning assets			$	171,709													173,279
Noninterest-bearing funding sources
Deposits			$	349,200													331,745
Other liabilities				61,355													69,779
Total equity				198,795													189,520
Noninterest-bearing funding sources used to fund earning assets				(437,641	)												(417,765	)
Net noninterest-bearing funding sources			$	171,709													173,279
Total assets			$	1,840,980													1,718,597
(1) Our average prime rate was 3.50% and 3.25% for the first half of 2016 and 2015, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.63% and 0.27% for the same periods, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.
(4) Nonaccrual loans and related income are included in their respective loan categories.
(5) Includes taxable-equivalent adjustments of $599 million and $512 million for the first half of 2016 and 2015, respectively, predominantly 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)(2)
			Quarter ended
			Jun 30, 2016									Mar 31, 2016									Dec 31, 2015									Sep 30, 2015									Jun 30, 2015
			Average					Yields/				Average					Yields/				Average					Yields/				Average					Yields/				Average					Yields/
($ in billions)			balance					rates				balance					rates				balance					rates				balance					rates				balance					rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments			$	293.8				0.49	%			$	284.7				0.49	%			$	274.6				0.28	%			$	250.1				0.26	%			$	267.1				0.28	%
Trading assets			81.4					2.86				80.5					3.01				68.8					3.33				67.2					2.93				67.6					2.91
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies			31.5					1.56				34.4					1.59				34.6					1.58				35.7					1.59				31.7					1.58
Securities of U.S. states and political subdivisions			52.2					4.24				50.5					4.24				49.3					4.37				48.2					4.22				47.1					4.13
Mortgage-backed securities:
Federal agencies			92.0					2.53				96.5					2.80				102.3					2.79				98.4					2.70				98.0					2.65
Residential and commercial			19.6					5.44				20.8					5.20				21.5					5.51				21.9					5.84				22.7					5.84
Total mortgage-backed securities			111.6					3.04				117.3					3.23				123.8					3.26				120.3					3.27				120.7					3.25
Other debt and equity securities			53.3					3.48				53.6					3.21				52.7					3.35				50.4					3.40				48.8					3.51
Total available-for-sale securities			248.6					3.20				255.8					3.20				260.4					3.27				254.6					3.24				248.3					3.25
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies			44.6					2.19				44.7					2.20				44.7					2.18				44.6					2.18				44.5					2.19
Securities of U.S. states and political subdivisions			2.2					5.41				2.1					5.41				2.1					6.07				2.2					5.17				2.1					5.17
Federal agency mortgage-backed securities			35.1					1.90				28.1					2.49				28.2					2.42				27.1					2.38				21.0					2.00
Other debt securities			4.1					1.92				4.6					1.92				4.9					1.77				5.4					1.75				6.3					1.70
Total held-to-maturity securities			86.0					2.14				79.5					2.37				79.9					2.35				79.3					2.30				73.9					2.18
Total investment securities			334.6					2.93				335.3					3.01				340.3					3.05				333.9					3.02				322.2					3.01
Mortgages held for sale			20.1					3.60				17.9					3.59				19.2					3.66				24.2					3.69				23.5					3.57
Loans held for sale			0.2					4.83				0.3					3.23				0.4					4.96				0.6					2.57				0.7					3.51
Loans:
Commercial:
Commercial and industrial - U.S.			270.9					3.45				257.7					3.39				250.5					3.25				241.4					3.30				231.5					3.36
Commercial and industrial - Non U.S.			51.2					2.35				49.5					2.10				48.0					1.97				45.9					1.83				45.1					1.93
Real estate mortgage			126.1					3.41				122.7					3.41				121.8					3.30				121.0					3.31				113.1					3.48
Real estate construction			23.1					3.49				22.6					3.61				22.0					3.27				21.6					3.39				20.8					4.12
Lease financing			19.0					5.12				15.1					4.74				12.2					4.48				12.3					4.18				12.4					5.16
Total commercial			490.3					3.39				467.6					3.31				454.5					3.16				442.2					3.18				422.9					3.33
Consumer:
Real estate 1-4 family first mortgage			275.9					4.01				274.7					4.05				272.9					4.04				269.4					4.10				266.0					4.12
Real estate 1-4 family junior lien mortgage			50.6					4.37				52.2					4.39				53.8					4.28				55.3					4.22				57.0					4.23
Credit card			33.4					11.52				33.4					11.61				32.8					11.61				31.7					11.73				30.4					11.69
Automobile			61.1					5.66				60.1					5.67				59.5					5.74				58.5					5.80				57.0					5.88
Other revolving credit and installment			39.5					5.91				39.2					5.99				38.8					5.83				38.0					5.84				37.1					5.88
Total consumer			460.5					4.98				459.6					5.02				457.8					4.99				452.9					5.01				447.5					5.02
Total loans			950.8					4.16				927.2					4.16				912.3					4.08				895.1					4.11				870.4					4.20
Other			6.0					2.30				5.8					2.06				5.1					4.82				5.0					5.11				4.8					5.14
Total earning assets			$	1,686.9				3.20	%			$	1,651.7				3.22	%			$	1,620.7				3.18	%			$	1,576.1				3.21	%			$	1,556.3				3.22	%
Funding sources
Deposits:
Interest-bearing checking			$	39.8				0.13	%			$	38.7				0.12	%			$	39.1				0.05	%			$	37.8				0.05	%			$	38.6				0.05	%
Market rate and other savings			659.0					0.07				651.5					0.07				640.5					0.06				628.1					0.06				619.8					0.06
Savings certificates			26.2					0.35				27.9					0.45				29.6					0.54				30.9					0.58				32.5					0.63
Other time deposits			61.2					0.85				58.2					0.74				49.8					0.52				48.7					0.46				52.2					0.42
Deposits in foreign offices			97.5					0.23				97.7					0.21				107.1					0.14				111.5					0.13				104.3					0.13
Total interest-bearing deposits			883.7					0.15				874.0					0.14				866.1					0.11				857.0					0.11				847.4					0.11
Short-term borrowings			111.8					0.28				107.9					0.25				102.9					0.05				90.4					0.06				84.5					0.09
Long-term debt			236.2					1.56				216.9					1.56				190.9					1.49				180.6					1.45				185.1					1.34
Other liabilities			16.3					2.06				16.5					2.14				16.5					2.14				16.4					2.13				16.4					2.03
Total interest-bearing liabilities			1,248.0					0.45				1,215.3					0.43				1,176.4					0.36				1,144.4					0.34				1,133.4					0.34
Portion of noninterest-bearing funding sources			438.9					—				436.4					—				444.3					—				431.7					—				422.9					—
Total funding sources			$	1,686.9				0.34				$	1,651.7				0.32				$	1,620.7				0.26				$	1,576.1				0.25				$	1,556.3				0.25
Net interest margin on a taxable-equivalent basis								2.86	%								2.90	%								2.92	%								2.96	%								2.97	%
Noninterest-earning assets
Cash and due from banks			$	18.8								18.0									17.8									17.0									17.5
Goodwill			27.0									26.1									25.6									25.7									25.7
Other			129.4									124.1									123.2									127.6									129.8
Total noninterest-earnings assets			$	175.2								168.2									166.6									170.3									173.0
Noninterest-bearing funding sources
Deposits			$	353.0								345.4									350.7									341.9									337.9
Other liabilities			60.1									62.6									65.2									67.9									67.6
Total equity			201.0									196.6									195.0									192.2									190.4
Noninterest-bearing funding sources used to fund earning assets			(438.9		)							(436.4		)							(444.3		)							(431.7		)							(422.9		)
Net noninterest-bearing funding sources			$	175.2								168.2									166.6									170.3									173.0
Total assets			$	1,862.1								1,819.9									1,787.3									1,746.4									1,729.3
(1) Our average prime rate was 3.50% for the quarters ended June 30 and March 31, 2016, 3.29% for the quarter ended December 31, 2015, and 3.25% for the quarters ended September 30 and June 30, 2015. The average three-month London Interbank Offered Rate (LIBOR) was 0.64%, 0.62%, 0.41%, 0.31% and 0.28% for the same quarters, respectively.
(2) Yields/rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
			Quarter ended June 30,								%				Six months ended June 30,								%
(in millions)			2016				2015				Change				2016				2015				Change
Service charges on deposit accounts			$	1,336			1,289				4	%			$	2,645			2,504				6	%
Trust and investment fees:
Brokerage advisory, commissions and other fees				2,291			2,399				(5	)				4,530			4,779				(5	)
Trust and investment management				835			861				(3	)				1,650			1,713				(4	)
Investment banking				421			450				(6	)				752			895				(16	)
Total trust and investment fees				3,547			3,710				(4	)				6,932			7,387				(6	)
Card fees				997			930				7					1,938			1,801				8
Other fees:
Charges and fees on loans				317			304				4					630			613				3
Cash network fees				138			132				5					269			257				5
Commercial real estate brokerage commissions				86			141				(39	)				203			270				(25	)
Letters of credit fees				83			90				(8	)				161			178				(10	)
Wire transfer and other remittance fees				101			93				9					193			180				7
All other fees (1)(2)(3)				181			347				(48	)				383			687				(44	)
Total other fees				906			1,107				(18	)				1,839			2,185				(16	)
Mortgage banking:
Servicing income, net				360			514				(30	)				1,210			1,037				17
Net gains on mortgage loan origination/sales activities				1,054			1,191				(12	)				1,802			2,215				(19	)
Total mortgage banking				1,414			1,705				(17	)				3,012			3,252				(7	)
Insurance				286			461				(38	)				713			891				(20	)
Net gains (losses) from trading activities				328			133				147					528			541				(2	)
Net gains on debt securities				447			181				147					691			459				51
Net gains from equity investments				189			517				(63	)				433			887				(51	)
Lease income				497			155				221					870			287				203
Life insurance investment income				149			145				3					303			290				4
All other (3)				333			(285	)			NM					1,053			(144	)			NM
Total			$	10,429			10,048				4				$	20,957			20,340				3
NM – Not meaningful
(1) Wire transfer and other remittance fees, reflected in all other fees prior to 2016, have been separately disclosed.
(2) All other fees have been revised to include merchant processing fees for all periods presented.
(3) Effective fourth quarter 2015, the Company's proportionate share of its merchant services joint venture earnings is included in All other income.
NONINTEREST EXPENSE
			Quarter ended June 30,								%				Six months ended June 30,								%
(in millions)			2016				2015				Change				2016				2015				Change
Salaries			$	4,099			3,936				4	%			$	8,135			7,787				4	%
Commission and incentive compensation				2,604			2,606				—					5,249			5,291				(1	)
Employee benefits				1,244			1,106				12					2,770			2,583				7
Equipment				493			470				5					1,021			964				6
Net occupancy				716			710				1					1,427			1,433				—
Core deposit and other intangibles				299			312				(4	)				592			624				(5	)
FDIC and other deposit assessments				255			222				15					505			470				7
Outside professional services				769			627				23					1,352			1,175				15
Operating losses				334			521				(36	)				788			816				(3	)
Outside data processing				225			269				(16	)				433			522				(17	)
Contract services				283			238				19					565			463				22
Postage, stationery and supplies				153			180				(15	)				316			351				(10	)
Travel and entertainment				193			172				12					365			330				11
Advertising and promotion				166			169				(2	)				300			287				5
Insurance				22			156				(86	)				133			296				(55	)
Telecommunications				94			113				(17	)				186			224				(17	)
Foreclosed assets				66			117				(44	)				144			252				(43	)
Operating leases				352			64				450					587			126				366
All other				499			481				4					1,026			982				4
Total			$	12,866			12,469				3				$	25,894			24,976				4

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
Service charges on deposit accounts			$	1,336				1,309				1,329				1,335				1,289
Trust and investment fees:
Brokerage advisory, commissions and other fees				2,291				2,239				2,288				2,368				2,399
Trust and investment management				835				815				838				843				861
Investment banking				421				331				385				359				450
Total trust and investment fees				3,547				3,385				3,511				3,570				3,710
Card fees				997				941				966				953				930
Other fees:
Charges and fees on loans				317				313				308				307				304
Cash network fees				138				131				129				136				132
Commercial real estate brokerage commissions				86				117				224				124				141
Letters of credit fees				83				78				86				89				90
Wire transfer and other remittance fees				101				92				95				95				93
All other fees (1)(2)(3)				181				202				198				348				347
Total other fees				906				933				1,040				1,099				1,107
Mortgage banking:
Servicing income, net				360				850				730				674				514
Net gains on mortgage loan origination/sales activities				1,054				748				930				915				1,191
Total mortgage banking				1,414				1,598				1,660				1,589				1,705
Insurance				286				427				427				376				461
Net gains (losses) from trading activities				328				200				99				(26	)			133
Net gains on debt securities				447				244				346				147				181
Net gains from equity investments				189				244				423				920				517
Lease income				497				373				145				189				155
Life insurance investment income				149				154				139				150				145
All other (3)				333				720				(87	)			116				(285	)
Total			$	10,429				10,528				9,998				10,418				10,048
(1) Wire transfer and other remittance fees, reflected in all other fees prior to 2016, have been separately disclosed.
(2) All other fees have been revised to include merchant processing fees for all periods presented.
(3) Effective fourth quarter 2015, the Company's proportionate share of its merchant services joint venture earnings is included in All other income.
FIVE QUARTER NONINTEREST EXPENSE
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
Salaries			$	4,099				4,036				4,061				4,035				3,936
Commission and incentive compensation				2,604				2,645				2,457				2,604				2,606
Employee benefits				1,244				1,526				1,042				821				1,106
Equipment				493				528				640				459				470
Net occupancy				716				711				725				728				710
Core deposit and other intangibles				299				293				311				311				312
FDIC and other deposit assessments				255				250				258				245				222
Outside professional services				769				583				827				663				627
Operating losses				334				454				532				523				521
Outside data processing				225				208				205				258				269
Contract services				283				282				266				249				238
Postage, stationery and supplies				153				163				177				174				180
Travel and entertainment				193				172				196				166				172
Advertising and promotion				166				134				184				135				169
Insurance				22				111				57				95				156
Telecommunications				94				92				106				109				113
Foreclosed assets				66				78				20				109				117
Operating leases				352				235				73				79				64
All other				499				527				462				636				481
Total			$	12,866				13,028				12,599				12,399				12,469

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
			Jun 30,					Dec 31,				%
(in millions, except shares)			2016					2015				Change
Assets
Cash and due from banks			$	20,407				19,111				7	%
Federal funds sold, securities purchased under resale agreements and other short-term investments				295,521				270,130				9
Trading assets				80,093				77,202				4
Investment securities:
Available-for-sale, at fair value				253,006				267,358				(5	)
Held-to-maturity, at cost				100,420				80,197				25
Mortgages held for sale				23,930				19,603				22
Loans held for sale				220				279				(21	)
Loans				957,157				916,559				4
Allowance for loan losses				(11,664	)			(11,545	)			1
Net loans				945,493				905,014				4
Mortgage servicing rights:
Measured at fair value				10,396				12,415				(16	)
Amortized				1,353				1,308				3
Premises and equipment, net				8,289				8,704				(5	)
Goodwill				26,963				25,529				6
Other assets				123,144				100,782				22
Total assets			$	1,889,235				1,787,632				6
Liabilities
Noninterest-bearing deposits			$	361,934				351,579				3
Interest-bearing deposits				883,539				871,733				1
Total deposits				1,245,473				1,223,312				2
Short-term borrowings				120,258				97,528				23
Accrued expenses and other liabilities				76,916				73,365				5
Long-term debt				243,927				199,536				22
Total liabilities				1,686,574				1,593,741				6
Equity
Wells Fargo stockholders’ equity:
Preferred stock				24,830				22,214				12
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares				9,136				9,136				—
Additional paid-in capital				60,691				60,714				—
Retained earnings				127,076				120,866				5
Cumulative other comprehensive income				2,948				297				893
Treasury stock – 433,317,519 shares and 389,682,664 shares				(21,068	)			(18,867	)			12
Unearned ESOP shares				(1,868	)			(1,362	)			37
Total Wells Fargo stockholders’ equity				201,745				192,998				5
Noncontrolling interests				916				893				3
Total equity				202,661				193,891				5
Total liabilities and equity			$	1,889,235				1,787,632				6

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
Assets
Cash and due from banks			$	20,407				19,084				19,111				17,395				19,687
Federal funds sold, securities purchased under resale agreements and other short-term investments				295,521				300,547				270,130				254,811				232,247
Trading assets				80,093				73,158				77,202				73,894				80,236
Investment securities:
Available-for-sale, at fair value				253,006				255,551				267,358				266,406				260,667
Held-to-maturity, at cost				100,420				79,348				80,197				78,668				80,102
Mortgages held for sale				23,930				18,041				19,603				21,840				25,447
Loans held for sale				220				280				279				430				621
Loans				957,157				947,258				916,559				903,233				888,459
Allowance for loan losses				(11,664	)			(11,621	)			(11,545	)			(11,659	)			(11,754	)
Net loans				945,493				935,637				905,014				891,574				876,705
Mortgage servicing rights:
Measured at fair value				10,396				11,333				12,415				11,778				12,661
Amortized				1,353				1,359				1,308				1,277				1,262
Premises and equipment, net				8,289				8,349				8,704				8,800				8,692
Goodwill				26,963				27,003				25,529				25,684				25,705
Other assets				123,144				119,492				100,782				98,708				96,585
Total assets			$	1,889,235				1,849,182				1,787,632				1,751,265				1,720,617
Liabilities
Noninterest-bearing deposits			$	361,934				348,888				351,579				339,761				343,582
Interest-bearing deposits				883,539				892,602				871,733				862,418				842,246
Total deposits				1,245,473				1,241,490				1,223,312				1,202,179				1,185,828
Short-term borrowings				120,258				107,703				97,528				88,069				82,963
Accrued expenses and other liabilities				76,916				73,597				73,365				81,700				81,399
Long-term debt				243,927				227,888				199,536				185,274				179,751
Total liabilities				1,686,574				1,650,678				1,593,741				1,557,222				1,529,941
Equity
Wells Fargo stockholders’ equity:
Preferred stock				24,830				24,051				22,214				22,424				21,649
Common stock				9,136				9,136				9,136				9,136				9,136
Additional paid-in capital				60,691				60,602				60,714				60,998				60,154
Retained earnings				127,076				123,891				120,866				117,593				114,093
Cumulative other comprehensive income				2,948				1,774				297				2,389				2,068
Treasury stock				(21,068	)			(19,687	)			(18,867	)			(17,899	)			(15,707	)
Unearned ESOP shares				(1,868	)			(2,271	)			(1,362	)			(1,590	)			(1,835	)
Total Wells Fargo stockholders’ equity				201,745				197,496				192,998				193,051				189,558
Noncontrolling interests				916				1,008				893				992				1,118
Total equity				202,661				198,504				193,891				194,043				190,676
Total liabilities and equity			$	1,889,235				1,849,182				1,787,632				1,751,265				1,720,617

Wells Fargo & Company and Subsidiaries
FIVE QUARTER INVESTMENT SECURITIES
			Jun 30,				Mar 31,			Dec 31,				Sep 30,			Jun 30,
(in millions)			2016				2016			2015				2015			2015
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies			$	27,939			33,813			36,250				35,423			35,944
Securities of U.S. states and political subdivisions				54,024			51,574			49,990				49,423			48,298
Mortgage-backed securities:
Federal agencies				95,868			95,463			104,546				105,023			100,078
Residential and commercial				19,938			21,246			22,646				22,836			23,770
Total mortgage-backed securities				115,806			116,709			127,192				127,859			123,848
Other debt securities				53,935			51,956			52,289				51,760			50,090
Total available-for-sale debt securities				251,704			254,052			265,721				264,465			258,180
Marketable equity securities				1,302			1,499			1,637				1,941			2,487
Total available-for-sale securities				253,006			255,551			267,358				266,406			260,667
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies				44,675			44,667			44,660				44,653			44,645
Securities of U.S. states and political subdivisions				2,181			2,183			2,185				2,187			2,174
Federal agency mortgage-backed securities				49,594			28,016			28,604				26,828			27,577
Other debt securities				3,970			4,482			4,748				5,000			5,706
Total held-to-maturity debt securities				100,420			79,348			80,197				78,668			80,102
Total investment securities			$	353,426			334,899			347,555				345,074			340,769
FIVE QUARTER LOANS
			Jun 30,				Mar 31,			Dec 31,				Sep 30,			Jun 30,
(in millions)			2016				2016			2015				2015			2015
Commercial:
Commercial and industrial			$	323,858			321,547			299,892				292,234			284,817
Real estate mortgage				128,320			124,711			122,160				121,252			119,695
Real estate construction				23,387			22,944			22,164				21,710			21,309
Lease financing				18,973			19,003			12,367				12,142			12,201
Total commercial				494,538			488,205			456,583				447,338			438,022
Consumer:
Real estate 1-4 family first mortgage				277,162			274,734			273,869				271,311			267,868
Real estate 1-4 family junior lien mortgage				49,772			51,324			53,004				54,592			56,164
Credit card				34,137			33,139			34,039				32,286			31,135
Automobile				61,939			60,658			59,966				59,164			57,801
Other revolving credit and installment				39,609			39,198			39,098				38,542			37,469
Total consumer				462,619			459,053			459,976				455,895			450,437
Total loans (1)			$	957,157			947,258			916,559				903,233			888,459
(1) Includes $19.3 billion, $20.3 billion, $20.0 billion, $20.7 billion, and $21.6 billion of purchased credit-impaired (PCI) loans at June 30, and March 31, 2016, and December 31, September 30, and June 30, 2015, respectively.
Our foreign loans are reported by respective class of financing receivable in the table above. Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign primarily based on whether the borrower's primary address is outside of the United States. The following table presents total commercial foreign loans outstanding by class of financing receivable.
			Jun 30,				Mar 31,			Dec 31,				Sep 30,			Jun 30,
(in millions)			2016				2016			2015				2015			2015
Commercial foreign loans:
Commercial and industrial			$	50,515			51,884			49,049				46,380			44,838
Real estate mortgage				8,467			8,367			8,350				8,662			9,125
Real estate construction				246			311			444				396			389
Lease financing				987			983			274				279			301
Total commercial foreign loans			$	60,215			61,545			58,117				55,717			54,653

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
Nonaccrual loans:
Commercial:
Commercial and industrial			$	3,464				2,911				1,363				1,031				1,079
Real estate mortgage				872				896				969				1,125				1,250
Real estate construction				59				63				66				151				165
Lease financing				112				99				26				29				28
Total commercial				4,507				3,969				2,424				2,336				2,522
Consumer:
Real estate 1-4 family first mortgage				5,970				6,683				7,293				7,425				8,045
Real estate 1-4 family junior lien mortgage				1,330				1,421				1,495				1,612				1,710
Automobile				111				114				121				123				126
Other revolving credit and installment				45				47				49				41				40
Total consumer				7,456				8,265				8,958				9,201				9,921
Total nonaccrual loans (1)(2)(3)			$	11,963				12,234				11,382				11,537				12,443
As a percentage of total loans				1.25	%			1.29				1.24				1.28				1.40
Foreclosed assets:
Government insured/guaranteed			$	321				386				446				502				588
Non-government insured/guaranteed				796				893				979				1,265				1,370
Total foreclosed assets				1,117				1,279				1,425				1,767				1,958
Total nonperforming assets			$	13,080				13,513				12,807				13,304				14,401
As a percentage of total loans				1.37	%			1.43				1.40				1.47				1.62
(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.

Wells Fargo & Company and Subsidiaries
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
Total (excluding PCI)(1):			$	12,385				13,060				14,380				14,405				15,161
Less: FHA insured/guaranteed by the VA (2)(3)				11,577				12,233				13,373				13,500				14,359
Less: Student loans guaranteed under the FFELP (4)				20				24				26				33				46
Total, not government insured/guaranteed			$	788				803				981				872				756
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial			$	36				24				97				53				17
Real estate mortgage				22				8				13				24				10
Real estate construction				—				2				4				—				—
Total commercial				58				34				114				77				27
Consumer:
Real estate 1-4 family first mortgage (3)				169				167				224				216				220
Real estate 1-4 family junior lien mortgage (3)				52				55				65				61				65
Credit card				348				389				397				353				304
Automobile				64				55				79				66				51
Other revolving credit and installment				97				103				102				99				89
Total consumer				730				769				867				795				729
Total, not government insured/guaranteed			$	788				803				981				872				756
(1) PCI loans totaled $2.4 billion, $2.7 billion, $2.9 billion, $3.2 billion and $3.4 billion, at June 30 and March 31, 2016, and December 31, September 30 and June 30, 2015, respectively.
(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
(3) Includes mortgages held for sale 90 days or more past due and still accruing.
(4) Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP.

Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS
Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans predominantly represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.
As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.
The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated lives of the PCI loans using the effective yield method. The accretable yield is affected by:
		•			Changes in interest rate indices for variable rate PCI loans - Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows;
		•			Changes in prepayment assumptions - Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and
		•			Changes in the expected principal and interest payments over the estimated life - Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.
The change in the accretable yield related to PCI loans is presented in the following table.

(in millions)
Balance, December 31, 2015			$	16,301
Addition of accretable yield due to acquisitions				69
Accretion into interest income (1)				(668	)
Accretion into noninterest income due to sales (2)				(9	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)				58
Changes in expected cash flows that do not affect nonaccretable difference (4)				(24	)
Balance, June 30, 2016			$	15,727
Balance, March 31, 2016			$	15,978
Addition of accretable yield due to acquisitions				70
Accretion into interest income (1)				(329	)
Accretion into noninterest income due to sales (2)				—
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)				24
Changes in expected cash flows that do not affect nonaccretable difference (4)				(16	)
Balance, June 30, 2016			$	15,727
(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) At June 30, 2016, our carrying value for PCI loans totaled $19.3 billion and the remainder of nonaccretable difference established in purchase accounting totaled $2.2 billion. The nonaccretable difference absorbs losses of contractual amounts that exceed our carrying value for PCI loans.
(4) 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.

Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO (1)
			June 30, 2016
			PCI loans																All other loans
															Ratio of								Ratio of
			Adjusted												carrying								carrying
			unpaid				Current								value to								value to
			principal				LTV				Carrying				current				Carrying				current
(in millions)			balance (2)				ratio (3)				value (4)				value (5)				value (4)				value (5)
California			$	15,462			67	%			$	12,246			53	%			$	8,858			49	%
Florida				1,757			78					1,327			57					1,849			62
New Jersey				726			81					546			59					1,223			68
New York				506			75					430			58					606			65
Texas				190			52					169			46					723			41
Other states				3,590			77					2,843			60					5,146			63
Total Pick-a-Pay loans			$	22,231			70				$	17,561			54				$	18,405			56
(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 2016.
(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.

Wells Fargo & Company and Subsidiaries
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
			Quarter ended June 30,									Six months ended June 30,
(in millions)			2016					2015				2016				2015
Balance, beginning of period			$	12,668				13,013				12,512				13,169
Provision for credit losses				1,074				300				2,160				908
Interest income on certain impaired loans (1)				(51	)			(50	)			(99	)			(102	)
Loan charge-offs:
Commercial:
Commercial and industrial				(437	)			(154	)			(786	)			(287	)
Real estate mortgage				(3	)			(16	)			(6	)			(39	)
Real estate construction				(1	)			(1	)			(1	)			(2	)
Lease financing				(17	)			(3	)			(21	)			(6	)
Total commercial				(458	)			(174	)			(814	)			(334	)
Consumer:
Real estate 1-4 family first mortgage				(123	)			(119	)			(260	)			(249	)
Real estate 1-4 family junior lien mortgage				(133	)			(163	)			(266	)			(342	)
Credit card				(320	)			(284	)			(634	)			(562	)
Automobile				(176	)			(150	)			(387	)			(345	)
Other revolving credit and installment				(163	)			(151	)			(338	)			(305	)
Total consumer				(915	)			(867	)			(1,885	)			(1,803	)
Total loan charge-offs				(1,373	)			(1,041	)			(2,699	)			(2,137	)
Loan recoveries:
Commercial:
Commercial and industrial				69				73				145				142
Real estate mortgage				23				31				55				65
Real estate construction				4				7				12				17
Lease financing				5				1				8				4
Total commercial				101				112				220				228
Consumer:
Real estate 1-4 family first mortgage				109				52				198				99
Real estate 1-4 family junior lien mortgage				71				69				130				125
Credit card				50				41				102				80
Automobile				86				82				170				176
Other revolving credit and installment				32				35				69				71
Total consumer				348				279				669				551
Total loan recoveries				449				391				889				779
Net loan charge-offs				(924	)			(650	)			(1,810	)			(1,358	)
Other				(18	)			1				(14	)			(3	)
Balance, end of period			$	12,749				12,614				12,749				12,614
Components:
Allowance for loan losses			$	11,664				11,754				11,664				11,754
Allowance for unfunded credit commitments				1,085				860				1,085				860
Allowance for credit losses			$	12,749				12,614				12,749				12,614
Net loan charge-offs (annualized) as a percentage of average total loans				0.39	%			0.30				0.39				0.32
Allowance for loan losses as a percentage of total loans				1.22				1.32				1.22				1.32
Allowance for credit losses as a percentage of total loans				1.33				1.42				1.33				1.42
(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.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
Balance, beginning of quarter			$	12,668				12,512				12,562				12,614				13,013
Provision for credit losses				1,074				1,086				831				703				300
Interest income on certain impaired loans (1)				(51	)			(48	)			(48	)			(48	)			(50	)
Loan charge-offs:
Commercial:
Commercial and industrial				(437	)			(349	)			(275	)			(172	)			(154	)
Real estate mortgage				(3	)			(3	)			(11	)			(9	)			(16	)
Real estate construction				(1	)			—				(2	)			—				(1	)
Lease financing				(17	)			(4	)			(3	)			(5	)			(3	)
Total commercial				(458	)			(356	)			(291	)			(186	)			(174	)
Consumer:
Real estate 1-4 family first mortgage				(123	)			(137	)			(113	)			(145	)			(119	)
Real estate 1-4 family junior lien mortgage				(133	)			(133	)			(134	)			(159	)			(163	)
Credit card				(320	)			(314	)			(295	)			(259	)			(284	)
Automobile				(176	)			(211	)			(211	)			(186	)			(150	)
Other revolving credit and installment				(163	)			(175	)			(178	)			(160	)			(151	)
Total consumer				(915	)			(970	)			(931	)			(909	)			(867	)
Total loan charge-offs				(1,373	)			(1,326	)			(1,222	)			(1,095	)			(1,041	)
Loan recoveries:
Commercial:
Commercial and industrial				69				76				60				50				73
Real estate mortgage				23				32				30				32				31
Real estate construction				4				8				12				8				7
Lease financing				5				3				2				2				1
Total commercial				101				119				104				92				112
Consumer:
Real estate 1-4 family first mortgage				109				89				63				83				52
Real estate 1-4 family junior lien mortgage				71				59				64				70				69
Credit card				50				52				52				43				41
Automobile				86				84				76				73				82
Other revolving credit and installment				32				37				32				31				35
Total consumer				348				321				287				300				279
Total loan recoveries				449				440				391				392				391
Net loan charge-offs				(924	)			(886	)			(831	)			(703	)			(650	)
Other				(18	)			4				(2	)			(4	)			1
Balance, end of quarter			$	12,749				12,668				12,512				12,562				12,614
Components:
Allowance for loan losses			$	11,664				11,621				11,545				11,659				11,754
Allowance for unfunded credit commitments				1,085				1,047				967				903				860
Allowance for credit losses			$	12,749				12,668				12,512				12,562				12,614
Net loan charge-offs (annualized) as a percentage of average total loans				0.39	%			0.38				0.36				0.31				0.30
Allowance for loan losses as a percentage of:
Total loans				1.22				1.23				1.26				1.29				1.32
Nonaccrual loans				98				95				101				101				94
Nonaccrual loans and other nonperforming assets				89				86				90				88				82
Allowance for credit losses as a percentage of:
Total loans				1.33				1.34				1.37				1.39				1.42
Nonaccrual loans				107				104				110				109				101
Nonaccrual loans and other nonperforming assets				97				94				98				94				88
(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.

Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY (1)
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions, except ratios)						2016					2016				2015				2015				2015
Tangible book value per common share (1):
Total equity						$	202,661				198,504				193,891				194,043				190,676
Adjustments:
Preferred stock							(24,830	)			(24,051	)			(22,214	)			(22,424	)			(21,649	)
Additional paid-in capital on ESOP preferred stock							(150	)			(182	)			(110	)			(128	)			(148	)
Unearned ESOP shares							1,868				2,271				1,362				1,590				1,835
Noncontrolling interests							(916	)			(1,008	)			(893	)			(992	)			(1,118	)
Total common stockholders' equity			(A)				178,633				175,534				172,036				172,089				169,596
Adjustments:
Goodwill							(26,963	)			(27,003	)			(25,529	)			(25,684	)			(25,705	)
Certain identifiable intangible assets (other than MSRs)							(3,356	)			(3,814	)			(3,167	)			(3,479	)			(3,807	)
Other assets (2)							(2,110	)			(2,023	)			(2,074	)			(1,742	)			(1,829	)
Applicable deferred taxes							1,906				1,985				2,071				2,168				2,265
Tangible common equity			(B)			$	148,110				144,679				143,337				143,352				140,520
Common shares outstanding			(C)				5,048.5				5,075.9				5,092.1				5,108.5				5,145.2
Book value per common share			(A)/(C)			$	35.38				34.58				33.78				33.69				32.96
Tangible book value per common share			(B)/(C)				29.34				28.50				28.15				28.06				27.31

					Quarter ended																					Six months ended
					Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,				Jun 30,			Jun 30,
(in millions, except ratios)					2016					2016				2015				2015				2015				2016			2015
Return on average tangible common equity (1):
Net income applicable to common stock			(A)		$	5,173				5,085				5,203				5,443				5,363				10,258			10,824
Average total equity						201,003				196,586				195,025				192,203				190,382				198,795			189,520
Adjustments:
Preferred stock						(24,091	)			(23,963	)			(22,407	)			(21,807	)			(21,847	)			(24,027	)		(21,316	)
Additional paid-in capital on ESOP preferred stock						(168	)			(201	)			(127	)			(147	)			(166	)			(184	)		(140	)
Unearned ESOP shares						2,094				2,509				1,572				1,818				2,051				2,302			1,737
Noncontrolling interests						(984	)			(904	)			(979	)			(1,012	)			(1,154	)			(944	)		(1,101	)
Average common stockholders’ equity			(B)			177,854				174,027				173,084				171,055				169,266				175,942			168,700
Adjustments:
Goodwill						(27,037	)			(26,069	)			(25,580	)			(25,703	)			(25,705	)			(26,553	)		(25,705	)
Certain identifiable intangible assets (other than MSRs)						(3,600	)			(3,407	)			(3,317	)			(3,636	)			(3,957	)			(3,503	)		(4,115	)
Other assets (2)						(2,096	)			(2,065	)			(1,987	)			(1,757	)			(1,509	)			(2,081	)		(1,433	)
Applicable deferred taxes						1,934				2,014				2,103				2,200				2,297				1,974			2,345
Average tangible common equity			(C)		$	147,055				144,500				144,303				142,159				140,392				145,779			139,792
ROE			(A)/(B)			11.70	%			11.75				11.93				12.62				12.71				11.72			12.94
ROTCE			(A)/(C)			14.15				14.15				14.30				15.19				15.32				14.15			15.61
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity.
(2) Represents other intangibles on nonmarketable equity investments which are included in other assets.

Wells Fargo & Company and Subsidiaries
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
						Estimated
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in billions)						2016					2016				2015				2015				2015
Total equity						$	202.7				198.5				193.9				194.0				190.7
Adjustments:
Preferred stock							(24.8	)			(24.1	)			(22.2	)			(22.4	)			(21.6	)
Additional paid-in capital on ESOP preferred stock							(0.2	)			(0.2	)			(0.1	)			(0.1	)			(0.1	)
Unearned ESOP shares							1.9				2.3				1.3				1.5				1.7
Noncontrolling interests							(1.0	)			(1.0	)			(0.9	)			(0.9	)			(1.1	)
Total common stockholders' equity							178.6				175.5				172.0				172.1				169.6
Adjustments:
Goodwill and other intangible assets							(32.4	)			(32.9	)			(30.8	)			(30.9	)			(31.4	)
Applicable deferred taxes (2)							1.9				2.0				2.1				2.2				2.3
Investment in certain subsidiaries and other							(2.5	)			(1.9	)			(0.9	)			(1.6	)			(0.6	)
Common Equity Tier 1 (Fully Phased-In) under Basel III			(A)				145.6				142.7				142.4				141.8				139.9
Total risk-weighted assets (RWAs) anticipated under Basel III (3)(4)			(B)			$	1,379.2				1,345.1				1,321.7				1,331.8				1,325.6
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (4)			(A)/(B)				10.6	%			10.6				10.8				10.6				10.6
(1) Basel III capital rules, adopted by the Federal Reserve Board on July 2, 2013, revised the definition of capital, increased minimum capital ratios, and introduced a minimum Common Equity Tier 1 (CET1) ratio. These rules established a new comprehensive capital framework for U.S. banking organizations that implements the Basel III capital framework and certain provisions of the Dodd-Frank Act. The rules are being phased in through the end of 2021. Fully phased-in capital amounts, ratios and RWAs are calculated assuming the full phase-in of the Basel III capital rules. Fully phased-in regulatory capital amounts, ratios and RWAs are considered non-GAAP financial measures that are used by management, bank regulatory agencies, investors and analysts to assess and monitor the Company’s capital position.
(2) Applicable deferred taxes relate to goodwill and other intangible assets.
(3) The final Basel III capital rules provide for two capital frameworks: the Standardized Approach, which replaced Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we are subject to the lower of our CET1 ratio calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. Because the final determination of our CET1 ratio and which approach will produce the lower CET1 ratio as of June 30, 2016, is subject to detailed analysis of considerable data, our CET1 ratio at that date has been estimated using the Basel III definition of capital under the Basel III Standardized Approach RWAs. The capital ratio for March 31, 2016, and December 31, September 30 and June 30, 2015, was calculated under the Basel III Standardized Approach RWAs.
(4) The Company’s June 30, 2016, RWAs and capital ratio are preliminary estimates.

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)
(income/expense in millions, average balances in billions)			Community Banking									Wholesale Banking								Wealth and Investment Management								Other (2)								Consolidated Company
			2016					2015				2016				2015				2016				2015				2016				2015				2016				2015
Quarter ended June 30,
Net interest income (3)			$	7,379				7,277				3,919				3,591				932				832				(497	)			(430	)			11,733				11,270
Provision (reversal of provision) for credit losses				689				397				385				(84	)			2				(10	)			(2	)			(3	)			1,074				300
Noninterest income				4,825				4,690				3,365				3,019				2,987				3,144				(748	)			(805	)			10,429				10,048
Noninterest expense				6,648				6,719				4,036				3,504				2,976				3,038				(794	)			(792	)			12,866				12,469
Income (loss) before income tax expense (benefit)				4,867				4,851				2,863				3,190				941				948				(449	)			(440	)			8,222				8,549
Income tax expense (benefit)				1,667				1,620				795				951				358				359				(171	)			(167	)			2,649				2,763
Net income (loss) before noncontrolling interests				3,200				3,231				2,068				2,239				583				589				(278	)			(273	)			5,573				5,786
Less: Net income (loss) from noncontrolling interests				21				16				(5	)			48				(1	)			3				—				—				15				67
Net income (loss)			$	3,179				3,215				2,073				2,191				584				586				(278	)			(273	)			5,558				5,719
Average loans			$	485.7				472.3				451.4				386.2				66.7				59.3				(53.0	)			(47.4	)			950.8				870.4
Average assets				967.6				910.0				772.6				713.7				205.3				189.1				(83.4	)			(83.5	)			1,862.1				1,729.3
Average deposits				703.7				654.8				425.8				432.4				182.5				168.2				(75.3	)			(70.1	)			1,236.7				1,185.3
Six months ended June 30,
Net interest income (3)			$	14,847				14,424				7,667				7,028				1,875				1,658				(989	)			(854	)			23,400				22,256
Provision (reversal of provision) for credit losses				1,409				1,055				748				(135	)			(12	)			(13	)			15				1				2,160				908
Noninterest income				9,971				9,654				6,575				5,991				5,898				6,294				(1,487	)			(1,599	)			20,957				20,340
Noninterest expense				13,484				13,310				8,004				7,122				6,018				6,160				(1,612	)			(1,616	)			25,894				24,976
Income (loss) before income tax expense (benefit)				9,925				9,713				5,490				6,032				1,767				1,805				(879	)			(838	)			16,303				16,712
Income tax expense (benefit)				3,364				2,910				1,514				1,768				672				683				(334	)			(319	)			5,216				5,042
Net income (loss) before noncontrolling interests				6,561				6,803				3,976				4,264				1,095				1,122				(545	)			(519	)			11,087				11,670
Less: Net income (loss) from noncontrolling interests				86				41				(18	)			99				(1	)			7				—				—				67				147
Net income (loss)			$	6,475				6,762				3,994				4,165				1,096				1,115				(545	)			(519	)			11,020				11,523
Average loans			$	485.0				472.3				440.6				383.1				65.4				58.1				(52.0	)			(46.6	)			939.0				866.9
Average assets				957.5				909.8				760.6				702.2				206.7				190.3				(83.8	)			(83.7	)			1,841.0				1,718.6
Average deposits				693.3				649.1				426.9				432.1				183.5				169.2				(75.7	)			(70.3	)			1,228.0				1,180.1
(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 the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.
(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.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(income/expense in millions, average balances in billions)			2016					2016				2015				2015				2015
COMMUNITY BANKING
Net interest income (2)			$	7,379				7,468				7,409				7,409				7,277
Provision for credit losses				689				720				704				668				397
Noninterest income				4,825				5,146				4,921				5,524				4,690
Noninterest expense				6,648				6,836				6,893				6,778				6,719
Income before income tax expense				4,867				5,058				4,733				5,487				4,851
Income tax expense				1,667				1,697				1,507				1,785				1,620
Net income before noncontrolling interests				3,200				3,361				3,226				3,702				3,231
Less: Net income from noncontrolling interests				21				65				57				142				16
Segment net income			$	3,179				3,296				3,169				3,560				3,215
Average loans			$	485.7				484.3				482.2				477.0				472.3
Average assets				967.6				947.4				921.4				898.9				910.0
Average deposits				703.7				683.0				663.7				655.6				654.8
WHOLESALE BANKING
Net interest income (2)			$	3,919				3,748				3,711				3,611				3,591
Provision (reversal of provision) for credit losses				385				363				126				36				(84	)
Noninterest income				3,365				3,210				2,848				2,715				3,019
Noninterest expense				4,036				3,968				3,491				3,503				3,504
Income before income tax expense				2,863				2,627				2,942				2,787				3,190
Income tax expense				795				719				841				815				951
Net income before noncontrolling interests				2,068				1,908				2,101				1,972				2,239
Less: Net income (loss) from noncontrolling interests				(5	)			(13	)			(3	)			47				48
Segment net income			$	2,073				1,921				2,104				1,925				2,191
Average loans			$	451.4				429.8				417.0				405.6				386.2
Average assets				772.6				748.6				755.4				739.1				713.7
Average deposits				425.8				428.0				449.3				442.0				432.4
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)			$	932				943				933				887				832
Provision (reversal of provision) for credit losses				2				(14	)			(6	)			(6	)			(10	)
Noninterest income				2,987				2,911				3,014				2,991				3,144
Noninterest expense				2,976				3,042				2,998				2,909				3,038
Income before income tax expense				941				826				955				975				948
Income tax expense				358				314				366				371				359
Net income before noncontrolling interests				583				512				589				604				589
Less: Net income (loss) from noncontrolling interests				(1	)			—				(6	)			(2	)			3
Segment net income			$	584				512				595				606				586
Average loans			$	66.7				64.1				63.0				61.1				59.3
Average assets				205.3				208.1				197.9				192.6				189.1
Average deposits				182.5				184.5				177.9				172.6				168.2
OTHER (3)
Net interest income (2)			$	(497	)			(492	)			(465	)			(450	)			(430	)
Provision (reversal of provision) for credit losses				(2	)			17				7				5				(3	)
Noninterest income				(748	)			(739	)			(785	)			(812	)			(805	)
Noninterest expense				(794	)			(818	)			(783	)			(791	)			(792	)
Loss before income tax benefit				(449	)			(430	)			(474	)			(476	)			(440	)
Income tax benefit				(171	)			(163	)			(181	)			(181	)			(167	)
Net loss before noncontrolling interests				(278	)			(267	)			(293	)			(295	)			(273	)
Less: Net income from noncontrolling interests				—				—				—				—				—
Other net loss			$	(278	)			(267	)			(293	)			(295	)			(273	)
Average loans			$	(53.0	)			(51.0	)			(49.9	)			(48.6	)			(47.4	)
Average assets				(83.4	)			(84.2	)			(87.4	)			(84.2	)			(83.5	)
Average deposits				(75.3	)			(76.1	)			(74.1	)			(71.3	)			(70.1	)
CONSOLIDATED COMPANY
Net interest income (2)			$	11,733				11,667				11,588				11,457				11,270
Provision for credit losses				1,074				1,086				831				703				300
Noninterest income				10,429				10,528				9,998				10,418				10,048
Noninterest expense				12,866				13,028				12,599				12,399				12,469
Income before income tax expense				8,222				8,081				8,156				8,773				8,549
Income tax expense				2,649				2,567				2,533				2,790				2,763
Net income before noncontrolling interests				5,573				5,514				5,623				5,983				5,786
Less: Net income from noncontrolling interests				15				52				48				187				67
Wells Fargo net income			$	5,558				5,462				5,575				5,796				5,719
Average loans			$	950.8				927.2				912.3				895.1				870.4
Average assets				1,862.1				1,819.9				1,787.3				1,746.4				1,729.3
Average deposits				1,236.7				1,219.4				1,216.8				1,198.9				1,185.3
(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) 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.
(3) Includes the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
MSRs measured using the fair value method:
Fair value, beginning of quarter			$	11,333				12,415				11,778				12,661				11,739
Servicing from securitizations or asset transfers (1)				477				366				372				448				428
Sales and other (2)				(22	)			—				(9	)			6				(5	)
Net additions				455				366				363				454				423
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)				(779	)			(1,084	)			560				(858	)			1,117
Servicing and foreclosure costs (4)				(4	)			27				(37	)			(18	)			(10	)
Prepayment estimates and other (5)				(41	)			100				244				43				(54	)
Net changes in valuation model inputs or assumptions				(824	)			(957	)			767				(833	)			1,053
Other changes in fair value (6)				(568	)			(491	)			(493	)			(504	)			(554	)
Total changes in fair value				(1,392	)			(1,448	)			274				(1,337	)			499
Fair value, end of quarter			$	10,396				11,333				12,415				11,778				12,661
(1) Includes impacts associated with exercising our right to repurchase delinquent loans from GNMA loan securitization pools.
(2) Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios.
(3) 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)
(4) Includes costs to service and unreimbursed foreclosure costs.
(5) Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior and other external factors that occur independent of interest rate changes.
(6) Represents changes due to collection/realization of expected cash flows over time.
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2016					2016				2015				2015				2015
Amortized MSRs:
Balance, beginning of quarter			$	1,359				1,308				1,277				1,262				1,252
Purchases				24				21				48				45				29
Servicing from securitizations or asset transfers				38				97				49				35				46
Amortization				(68	)			(67	)			(66	)			(65	)			(65	)
Balance, end of quarter			$	1,353				1,359				1,308				1,277				1,262
Fair value of amortized MSRs:
Beginning of quarter			$	1,725				1,680				1,643				1,692				1,522
End of quarter				1,620				1,725				1,680				1,643				1,692

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
						Quarter ended
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)						2016					2016				2015				2015				2015
Servicing income, net:
Servicing fees (1)						$	842				910				872				990				1,026
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)			(A)				(824	)			(957	)			767				(833	)			1,053
Other changes in fair value (3)							(568	)			(491	)			(493	)			(504	)			(554	)
Total changes in fair value of MSRs carried at fair value							(1,392	)			(1,448	)			274				(1,337	)			499
Amortization							(68	)			(67	)			(66	)			(65	)			(65	)
Net derivative gains (losses) from economic hedges (4)			(B)				978				1,455				(350	)			1,086				(946	)
Total servicing income, net						$	360				850				730				674				514
Market-related valuation changes to MSRs, net of hedge results (2)(4)			(A)+(B)			$	154				498				417				253				107
(1) Includes contractually specified servicing fees, late charges and other ancillary revenues.
(2) Refer to the changes in fair value MSRs table on the previous page for more detail.
(3) Represents changes due to collection/realization of expected cash flows over time.
(4) Represents results from economic hedges used to hedge the risk of changes in fair value of MSRs.
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in billions)						2016					2016				2015				2015				2015
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others						$	1,250				1,280				1,300				1,323				1,344
Owned loans serviced							349				342				345				346				347
Subserviced for others							4				4				4				4				5
Total residential servicing							1,603				1,626				1,649				1,673				1,696
Commercial mortgage servicing:
Serviced for others							478				485				478				470				465
Owned loans serviced							128				125				122				121				120
Subserviced for others							8				8				7				7				7
Total commercial servicing							614				618				607				598				592
Total managed servicing portfolio						$	2,217				2,244				2,256				2,271				2,288
Total serviced for others						$	1,728				1,765				1,778				1,793				1,809
Ratio of MSRs to related loans serviced for others							0.68	%			0.72				0.77				0.73				0.77
Weighted-average note rate (mortgage loans serviced for others)							4.32				4.34				4.37				4.39				4.41
(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.

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
						Quarter ended
						Jun 30,					Mar 31,					Dec 31,				Sep 30,				Jun 30,
						2016					2016					2015				2015				2015
Net gains on mortgage loan origination/sales activities (in millions):
Residential			(A)			$	744				532					600				736				814
Commercial							72				71					108				55				108
Residential pipeline and unsold/repurchased loan management (1)							238				145					222				124				269
Total						$	1,054				748					930				915				1,191
Application data (in billions):
Wells Fargo first mortgage quarterly applications						$	95				77					64				73				81
Refinances as a percentage of applications							46	%			52					48				44				45
Wells Fargo first mortgage unclosed pipeline, at quarter end						$	47				39					29				34				38
Residential real estate originations:
Purchases as a percentage of originations							60	%			55					59				66				54
Refinances as a percentage of originations							40				45					41				34				46
Total							100	%			100					100				100				100
Wells Fargo first mortgage loans (in billions):
Retail						$	34				24					27				32				36
Correspondent							28				19					19				22				25
Other (2)							1				1					1				1				1
Total quarter-to-date						$	63				44					47				55				62
Held-for-sale			(B)			$	46				31					33				39				46
Held-for-investment							17				13					14				16				16
Total quarter-to-date						$	63				44					47				55				62
Total year-to-date						$	107				44					213				166				111
Production margin on residential held-for-sale mortgage originations			(A)/(B)				1.66	%			1.68					1.83				1.88				1.75
(1) Primarily includes the results of GNMA loss mitigation activities, interest rate management activities and changes in estimate to the liability for mortgage loan repurchase losses.
(2) Consists of home equity loans and lines.
CHANGES IN MORTGAGE REPURCHASE LIABILITY
						Quarter ended
						Jun 30,					Mar 31,				Dec 31,					Sep 30,				Jun 30,
(in millions)						2016					2016				2015					2015				2015
Balance, beginning of period						$	355				378				538					557				586
Provision for repurchase losses:
Loan sales							8				7				9					11				13
Change in estimate (1)							(89	)			(19	)			(128		)			(17	)			(31	)
Net reductions							(81	)			(12	)			(119		)			(6	)			(18	)
Losses							(19	)			(11	)			(41		)			(13	)			(11	)
Balance, end of period						$	255				355				378					538				557
(1) Results from changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160715005148/en/

Wells Fargo & Company
Media
Ancel Martinez, 415-222-3858
or
Investors
Jim Rowe, 415-396-8216

Source: Wells Fargo & Company

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