8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 13, 2017

WELLS FARGO & COMPANY

(Exact Name of Registrant as Specified in Charter)

Delaware	001-02979	No. 41-0449260
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

420 Montgomery Street, San Francisco, California 94163

(Address of Principal Executive Offices) (Zip Code)

1-866-249-3302

(Registrant’s telephone number, including area code)

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On January 13, 2017, Wells Fargo & Company (the “Company”) issued a press release regarding its results of operations and financial condition for the quarter ended December 31, 2016, and posted on its website its 4Q16 Quarterly Supplement, which contains certain additional historical and forward-looking information relating to the Company. The press release is included as Exhibit 99.1 to this report and is incorporated by reference into this Item 2.02. The information included in Exhibit 99.1 is considered to be “filed” for purposes of Section 18 under the Securities Exchange Act of 1934. The Quarterly Supplement is included as Exhibit 99.2 to this report and is incorporated by reference into this Item 2.02. Except for the “Retail Banking sales practices” portion on pages 3-6 of the Quarterly Supplement, which portion shall be considered “filed,” the rest of Exhibit 99.2 shall not be considered “filed” for purposes of Section 18 under the Securities Exchange Act of 1934 and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

On January 13, 2017, the Company intends to host a live conference call that will also be available by webcast to discuss the press release, the Quarterly Supplement, and other matters relating to the Company.

Item 9.01  Financial Statements and Exhibits.

(d)  Exhibits
99.1	Press Release dated January 13, 2017, deemed “filed” under the Securities Exchange Act of 1934
99.2	Quarterly Supplement, deemed “furnished” under the Securities Exchange Act of 1934, except for the “Retail Banking sales practices” portion on pages 3-6 of the Quarterly Supplement, which portion is deemed “filed” under the Securities Exchange Act of 1934

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:	January 13, 2017	WELLS FARGO & COMPANY
		By:	/s/ RICHARD D. LEVY
			Richard D. Levy
			Executive Vice President and Controller
			(Principal Accounting Officer)

EX-99.1

Exhibit 99.1

Media	Investors
Ancel Martinez	Jim Rowe
415-222-3858	415-396-8216

Friday, January 13, 2017

WELLS FARGO REPORTS $5.3 BILLION IN QUARTERLY NET INCOME;

Diluted EPS of $0.96 included net hedge ineffectiveness accounting impact of $(0.07)

▪ Full year 2016

◦ Net income of $21.9 billion, compared with $22.9 billion in 2015

◦ Diluted earnings per share (EPS) of $3.99, compared with $4.12

◦ Revenue of $88.3 billion, up 3 percent

◦ Return on assets (ROA) of 1.16 percent and return on equity (ROE) of 11.49 percent

◦ Returned $12.5 billion to shareholders through common stock dividends and net share repurchases

▪ Fourth quarter 2016

◦ Net income of $5.3 billion, compared with $5.6 billion in fourth quarter 2015

▪ Included net hedge ineffectiveness accounting impact of $(592) million

◦ Diluted EPS of $0.96, compared with $1.00

▪ Included net hedge ineffectiveness accounting impact of $(0.07)

◦ Revenue of $21.6 billion, consistent with fourth quarter 2015

▪ Net interest income of $12.4 billion, up 7 percent

◦ ROA of 1.08 percent and ROE of 10.94 percent

◦ Total average loans of $964.1 billion, up $51.9 billion, or 6 percent

◦ Total average deposits of $1.3 trillion, up $67.3 billion, or 6 percent

◦ Provision expense of $805 million, down $26 million, or 3%

◦ Nonaccrual loans of $10.4 billion, down $998 million, or 9 percent

◦Common Equity Tier 1 ratio (fully phased-in) of 10.7 percent¹

¹ 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.

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Selected Financial Information

				Quarter ended		Year ended Dec. 31,
	Dec 31, 2016			Sep 30, 2016	Dec 31, 2015	2016	2015
Earnings
Diluted earnings per common share	$	0.96		1.03	1.00	3.99	4.12
Wells Fargo net income (in billions)	5.27			5.64	5.58	21.94	22.89
Return on assets (ROA)	1.08		%	1.17	1.24	1.16	1.31
Return on equity (ROE)	10.94			11.60	11.93	11.49	12.60
Return on average tangible common equity (ROTCE)(a)	13.16			13.96	14.30	13.85	15.17
Asset Quality
Net charge-offs (annualized) as a % of average total loans	0.37		%	0.33	0.36	0.37	0.33
Allowance for credit losses as a % of total loans	1.30			1.32	1.37	1.30	1.37
Allowance for credit losses as a % of annualized net charge-offs	348			396	380	356	433
Other
Revenue (in billions)	$	21.6		22.3	21.6	88.3	86.1
Efficiency ratio (b)	61.2		%	59.4	58.4	59.3	58.1
Average loans (in billions)	$	964.1		957.5	912.3	950.0	885.4
Average deposits (in billions)	1,284.2			1,261.5	1,216.8	1,250.6	1,194.1
Net interest margin	2.87		%	2.82	2.92	2.86	2.95

(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.

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

Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $3.99 for 2016, compared with $4.12 for 2015. Full year net income in 2016 was $21.9 billion, compared with $22.9 billion in 2015. For fourth quarter 2016, net income was $5.3 billion, or $0.96 per share, compared with $5.6 billion, or $1.00 per share, for fourth quarter 2015, and $5.6 billion, or $1.03 per share, for third quarter 2016.

Chief Executive Officer Tim Sloan said, "We continued to make progress in the fourth quarter in rebuilding the trust of our customers, team members and other key stakeholders. I am pleased with the progress we have made in customer remediation, the ongoing review of sales practices across the company and fulfilling our regulatory requirements for sales practices matters. As planned, we launched our new Retail Bank compensation program this month, which is based on building lifelong relationships with our customers. While we have more work to do, I am proud of the effort of our entire team to make things right for our customers and team members and to continue building a better Wells Fargo for the future.”

Chief Financial Officer John Shrewsberry said, “Wells Fargo had solid underlying performance in the fourth quarter as we continued to benefit from our diversified business model. Net interest income increased from the prior quarter, largely driven by growth in loans and investments, as well as higher interest rates. Noninterest income declined from the prior quarter due to net hedge accounting ineffectiveness associated with our hedging of long-term debt as part of our asset/liability management program, as well as lower market-sensitive revenue. Other sources of noninterest income were diversified and stable with the prior quarter. Credit quality remained solid in the quarter, and we returned $3.0 billion to shareholders in the quarter, with a full year 2016 net payout ratio² of 61 percent."

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

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Net Interest Income

Net interest income in fourth quarter 2016 increased $450 million from third quarter 2016 to $12.4 billion, primarily due to growth in loans and investment securities, higher interest income on trading assets, higher variable income including periodic dividends and fees, and a modest benefit from higher interest rates in the quarter.

Net interest margin was 2.87 percent, up 5 basis points from third quarter 2016, driven by growth in loans, investment securities and trading assets, and the impact from higher interest rates. Income from variable sources contributed approximately two basis points in the quarter. These benefits were partially offset by growth in funding balances, primarily long-term debt and deposits.

Noninterest Income

Noninterest income in the fourth quarter was $9.2 billion, compared with $10.4 billion in third quarter 2016. Fee income in many of the businesses in the quarter was stable compared with the prior quarter; however, linked-quarter results included a $592 million loss due to the impact of higher interest rates and currency movements on hedging results (net hedge ineffectiveness accounting loss) reflected in Other income. The linked-quarter decline also reflected decreases in trading income and mortgage banking fees, partially offset by higher equity gains and stronger investment banking fees.

Net loss from trading activities was $109 million in the fourth quarter, compared with a net gain of $415 million in the third quarter. Of the total linked-quarter decline of $524 million, $223 million resulted from a decrease in secondary trading, reflecting lower client volumes compared with a strong third quarter, as well as seasonality and fewer trading days in the quarter. Market-driven changes in credit spreads and higher swap rates resulted in a $61 million decline from credit valuation adjustments (CVA) in the quarter. Additionally, $204 million of the decline was associated with items that were offset in other areas, and were therefore neutral to net income:

• $98 million of losses resulted from certain hedged trading positions in our equity and residential mortgage-backed security books in which dividend and interest payments were recognized in net interest income and corresponding declines in the value of associated hedges were reflected in trading losses.

• Deferred compensation trading gains, which were largely offset in employee benefits expense, declined $106 million from the third quarter.

Mortgage banking noninterest income was $1.4 billion, compared with $1.7 billion in third quarter 2016. Residential mortgage loan originations were $72 billion in the fourth quarter, up from $70 billion in the third quarter. The production margin on residential held-for-sale mortgage loan originations³ was 1.68 percent, down from 1.81 percent in the third quarter. Mortgage servicing income declined to $196 million in the fourth quarter from $359 million in the third quarter, primarily due to higher unreimbursed servicing costs.

Other income was $(382) million, compared with $315 million in third quarter, and included $592 million in hedge ineffectiveness losses, net of related economic hedges, resulting from certain key interest rate and foreign currency

³ 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.

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fluctuations. Full year 2016 net hedge ineffectiveness losses were $15 million, as prior quarters included net gains. Substantially all of the ineffectiveness related to hedges of U.S. dollar and non-U.S. dollar long-term debt.

Background on Hedge Ineffectiveness

As part of Wells Fargo's ongoing funding strategy, the Company is a regular issuer of long-term debt, which typically is fixed rate in order to meet the demands of debt investors. As part of the Company’s asset/liability management program, however, this fixed rate is typically swapped to floating rate in order to balance the Company's deposit-oriented liability structure to better align with the interest rate sensitivity characteristics of the Company's assets. While the majority of long-term debt is issued in U.S. dollars, non-U.S. dollar issuances are also used to diversify funding sources. Any non-U.S. dollar issuance is either swapped to U.S. dollars or is identified to be directly funding non-U.S. dollar assets. While the Company believes this hedging strategy is prudent from an asset/liability management perspective, it is generally not possible to achieve a perfect accounting hedge due to differences in the required valuation measurement of the hedging instrument, such as an interest rate swap, and the hedged risk component of the Company's long-term debt.

From an accounting standpoint, the measurement of the “effectiveness” of the hedge occurs throughout the quarter up to and including the last day of the quarter and results, therefore, can be affected by that point-in time calculation. While the hedge ineffectiveness recognized over the life of hedging relationships is expected to be zero as long as hedge accounting is maintained and the hedges are held to maturity, periodic ineffectiveness is recognized in other noninterest income as interest rate and foreign currency fluctuations occur. In first quarter 2016, for example, a sharp decline in interest rates and foreign currency fluctuations drove a net hedge accounting gain of $379 million in the Company’s other noninterest income. Conversely, the net hedge accounting losses in fourth quarter 2016 were driven by a sharp increase in certain interest rates and foreign currency fluctuations. Reported results in any quarter can also be affected by a related but separate economic hedging strategy the Company employs, also utilizing interest rate swaps, to partially offset the periodic volatility caused by the required effectiveness measurement.

The Financial Accounting Standards Board issued an exposure draft on hedge accounting guidelines and is expected to issue new guidance in 2017. If issued in its current form, the interest rate-related ineffectiveness associated with the Company's long-term debt hedges would be significantly reduced.

Noninterest Expense

Noninterest expense in the fourth quarter declined $53 million from the prior quarter to $13.2 billion, primarily due to lower operating losses, charitable donations, which were elevated in the third quarter due to a $107 million donation to the Wells Fargo Foundation, and deferred compensation expense (included in employee benefits expense and largely offset in revenue). Fourth quarter expenses included typically higher outside professional services, equipment, and advertising. Fourth quarter foreclosed asset expense increased from the third quarter which included an elevated level of commercial real estate recoveries. The efficiency ratio increased to 61.2 percent in fourth quarter 2016, compared with 59.4 percent in the prior quarter, primarily due to the impact of hedge ineffectiveness losses on revenue. The efficiency ratio for full year 2016 was 59.3 percent. The Company expects the efficiency ratio to remain at an elevated level.

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Loans

Total loans were $967.6 billion at December 31, 2016, up $6.3 billion from September 30, 2016. Loan growth in the quarter was affected by the deconsolidation of certain previously sold reverse mortgage loans, which resulted from the sale of the related servicing, and reduced real estate 1-4 family first mortgages by $3.8 billion (offset in long-term debt). Commercial and industrial, commercial real estate, credit card and lease financing all grew in the quarter, while real estate 1-4 family junior lien mortgage and automobile declined. Total average loans were $964.1 billion in the fourth quarter, up $6.7 billion from the prior quarter.

Period-End Loan Balances

(in millions)	Dec 31, 2016		Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Commercial	$	506,536	496,454	494,538	488,205	456,583
Consumer	461,068		464,872	462,619	459,053	459,976
Total loans	$	967,604	961,326	957,157	947,258	916,559
Change from prior quarter	$	6,278	4,169	9,899	30,699	13,326

Investment Securities

Investment securities were $407.9 billion at December 31, 2016, up $17.1 billion from third quarter, as approximately $44 billion of purchases, predominantly federal agency mortgage-backed securities in the available-for-sale portfolio, were partially offset by run-off.

Net unrealized losses on available-for-sale securities were $1.8 billion at December 31, 2016, compared with net unrealized gains on available-for-sale securities of $4.5 billion at September 30, 2016, as the impact from higher interest rates was partially offset by tighter credit spreads.

Deposits

Total average deposits for fourth quarter 2016 were $1.3 trillion, up 2 percent from the prior quarter, driven by both commercial and consumer growth. The average deposit cost for fourth quarter 2016 was 12 basis points, up 1 basis point from the prior quarter.

Capital

Capital levels remained strong in the fourth quarter, with a Common Equity Tier 1 ratio (fully phased-in) of 10.7 percent¹. While flat from the prior quarter, Common Equity Tier 1 experienced a decline due to changes in unrealized gains/losses recognized in Other comprehensive income (OCI) resulting from higher interest rates experienced in the fourth quarter, which were largely offset by a decline in standardized risk-weighted assets, primarily due to a decrease in the Company's exposure to counterparty risk. In fourth quarter 2016, the Company repurchased 24.9 million shares of its common stock and entered into a $750 million forward repurchase transaction, which settled on January 12, 2017, for 14.7 million shares. The Company paid a quarterly common stock dividend of $0.38 per share, up from $0.375 per share a year ago.

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Credit Quality

“Credit results were stable in the fourth quarter and overall credit quality continued to be driven by strong performance in the commercial and consumer real estate portfolios," said Chief Risk Officer Mike Loughlin. "Continued improvement in residential real estate and stabilization in oil and gas industry conditions drove a $100 million reserve release⁴ in the fourth quarter."

Net Loan Charge-offs

The quarterly loss rate of 0.37 percent (annualized) reflected commercial losses of 0.20 percent and consumer losses of 0.56 percent. Credit losses were $905 million in fourth quarter 2016, up $100 million, from third quarter 2016. Consumer losses increased $64 million, driven by losses in the credit card, automobile and other revolving credit and installment portfolios. Commercial losses were up $36 million, driven by $32 million in lower recoveries.

Net Loan Charge-Offs

	Quarter ended
	December 31, 2016					September 30, 2016					June 30, 2016
($ 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	$	256		0.31	%	$	259		0.32	%	$	368		0.46	%
Real estate mortgage	(12		)	(0.04	)	(28		)	(0.09	)	(20		)	(0.06	)
Real estate construction	(8		)	(0.13	)	(18		)	(0.32	)	(3		)	(0.06	)
Lease financing	15			0.32		2			0.04		12			0.27
Total commercial	251			0.20		215			0.17		357			0.29
Consumer:
Real estate 1-4 family first mortgage	(3		)	—		20			0.03		14			0.02
Real estate 1-4 family junior lien mortgage	44			0.38		49			0.40		62			0.49
Credit card	275			3.09		245			2.82		270			3.25
Automobile	166			1.05		137			0.87		90			0.59
Other revolving credit and installment	172			1.70		139			1.40		131			1.32
Total consumer	654			0.56		590			0.51		567			0.49
Total	$	905		0.37	%	$	805		0.33	%	$	924		0.39	%

(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 $644 million from third quarter 2016 to $11.4 billion. Nonaccrual loans decreased $602 million from third quarter to $10.4 billion reflecting lower consumer real estate, commercial and industrial, and commercial real estate nonaccruals.

⁴ 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.

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Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)

	December 31, 2016					September 30, 2016					June 30, 2016
($ 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	$	3,216		0.97	%	$	3,331		1.03	%	$	3,464		1.07	%
Real estate mortgage	685			0.52		780			0.60		872			0.68
Real estate construction	43			0.18		59			0.25		59			0.25
Lease financing	115			0.60		92			0.49		112			0.59
Total commercial	4,059			0.80		4,262			0.86		4,507			0.91
Consumer:
Real estate 1-4 family first mortgage	4,962			1.80		5,310			1.91		5,970			2.15
Real estate 1-4 family junior lien mortgage	1,206			2.61		1,259			2.62		1,330			2.67
Automobile	106			0.17		108			0.17		111			0.18
Other revolving credit and installment	51			0.13		47			0.12		45			0.11
Total consumer	6,325			1.37		6,724			1.45		7,456			1.61
Total nonaccrual loans	10,384			1.07		10,986			1.14		11,963			1.25
Foreclosed assets:
Government insured/guaranteed	197					282					321
Non-government insured/guaranteed	781					738					796
Total foreclosed assets	978					1,020					1,117
Total nonperforming assets	$	11,362		1.17	%	$	12,006		1.25	%	$	13,080		1.37	%
Change from prior quarter:
Total nonaccrual loans	$	(602	)			$	(977	)			$	(271	)
Total nonperforming assets	(644		)			(1,074		)			(433		)

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.5 billion at December 31, 2016, which was down $154 million from September 30, 2016. The allowance coverage for total loans was 1.30 percent, compared with 1.32 percent in third quarter 2016. The allowance covered 3.5 times annualized fourth quarter net charge-offs, compared with 4.0 times in the prior quarter. The allowance coverage for nonaccrual loans was 121 percent at December 31, 2016, compared with 116 percent at September 30, 2016. “We believe the allowance was appropriate for losses inherent in the loan portfolio at December 31, 2016,” said Loughlin.

Business Segment Performance

Wells Fargo defines its operating segments by product type and customer segment. Effective fourth quarter 2016, we realigned some personnel and business activities from Wholesale Banking to Community Banking, as a result of the formation of the new Payments, Virtual Solutions, and Innovation Group. Results for these operating segments reflect the shift prospectively from November 1, 2016. Segment net income for each of the three business segments was:

	Quarter ended
(in millions)	Dec 31, 2016		Sep 30, 2016	Dec 31, 2015
Community Banking	$	2,733	3,227	3,169
Wholesale Banking	2,194		2,047	2,104
Wealth and Investment Management	653		677	595

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

Selected Financial Information

	Quarter ended
(in millions)	Dec 31, 2016		Sep 30, 2016	Dec 31, 2015
Total revenue	$	11,661	12,387	12,330
Provision for credit losses	631		651	704
Noninterest expense	6,985		6,953	6,893
Segment net income	2,733		3,227	3,169
(in billions)
Average loans	488.1		489.2	482.2
Average assets	1,000.7		993.6	921.4
Average deposits	709.8		708.0	663.7

Community Banking reported net income of $2.7 billion, down $494 million, or 15 percent, from third quarter 2016. Revenue of $11.7 billion decreased $726 million, or 6 percent, from third quarter 2016 due to lower other income (hedge ineffectiveness), mortgage banking revenue, and deposit service charges, partially offset by higher net interest income, market sensitive revenue, primarily higher gains on sales of debt securities and equity investments, and other fees. Noninterest expense increased $32 million, compared with third quarter 2016, due to higher equipment, project-related, and advertising expense, which are typically elevated in the fourth quarter, as well as higher legal expense. The increase in noninterest expense was partially offset by lower operating losses and a donation to the Wells Fargo Foundation in the prior quarter. The provision for credit losses decreased $20 million from the prior quarter.

Net income was down $436 million, or 14 percent, from fourth quarter 2015. Revenue decreased $669 million, or 5 percent, compared with a year ago due to lower other income (hedge ineffectiveness), mortgage banking revenue, and gains on equity investments, partially offset by higher net interest income and other fees. Noninterest expense increased $92 million, or 1 percent, from a year ago driven by higher personnel, legal, project-related, and FDIC expense, partially offset by lower operating losses. The provision for credit losses decreased $73 million from a year ago due to improvement in the consumer real estate portfolios.

Retail Banking and Consumer Payments

• We recently launched a new compensation plan in our Retail Bank focused on customer service, growth in primary customers, household relationship growth and risk management. These measures are consistent with other success metrics we have introduced in the recent past and, as part of this evolution, the cross-sell metric will not be included going forward.

• Branch customer experience survey scores continued to improve throughout the fourth quarter, with many metrics reaching close to pre-settlement ranges by the end of December; loyalty, which has also shown a strong improvement trajectory, will require a longer period to recover previous highs.

• Primary consumer checking customers⁵ up 3.5 percent year-over-year⁶

• Primary consumer checking customers⁵ in December up 3.0 percent year-over-year

⁵ Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.

⁶ Data as of November 2016, comparisons with November 2015.

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• Debit card purchase volume⁷ of $78.4 billion in fourth quarter, up 7 percent year-over-year

• Credit card purchase volume of $20.2 billion in fourth quarter, up 7 percent year-over-year

• Credit card penetration in retail banking households rose to 45.5 percent, up from 45.4 percent in prior year^6,8

• 27.4 million digital (online and mobile) active customers, including 19.6 million mobile active users^6, 9

Consumer Lending

• Auto originations of $6.4 billion in fourth quarter, down 21 percent from prior quarter and down 15 percent from prior year

• Home Lending

◦ Originations of $72 billion, up from $70 billion in prior quarter

◦ Applications of $75 billion, down from $100 billion in prior quarter

◦ Application pipeline of $30 billion at quarter end, down from $50 billion at September 30, 2016

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

Selected Financial Information

	Quarter ended
(in millions)	Dec 31, 2016		Sep 30, 2016	Dec 31, 2015
Total revenue	$	7,153	7,147	6,559
Provision for credit losses	168		157	126
Noninterest expense	4,002		4,120	3,491
Segment net income	2,194		2,047	2,104
(in billions)
Average loans	461.5		454.3	417.0
Average assets	811.9		794.2	755.4
Average deposits	459.2		441.2	449.3

Wholesale Banking reported net income of $2.2 billion, up $147 million, or 7 percent, from third quarter 2016. Revenue of $7.2 billion increased $6 million as higher net interest income, investment banking fees, equity investment gains and commercial real estate brokerage fees were partially offset by lower sales and trading results, and lower mortgage banking fees in multi-family capital and structured real estate. Noninterest expense decreased $118 million, or 3 percent, from the prior quarter primarily due to lower personnel expense and operating losses. The provision for credit losses increased $11 million from the prior quarter on lower recoveries.

Net income was up $90 million, or 4 percent, from fourth quarter 2015. Revenue increased $594 million, or 9 percent, from fourth quarter 2015, on increased net interest income driven by strong loan growth, including the

⁷ Combined consumer and business debit card purchase volume dollars.

⁸ Credit card penetration defined as the percentage of Retail Banking households that have a credit card with Wells Fargo. 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 definition of Retail Banking households. Credit card household penetration rates have not been adjusted to reflect the impact of the approximately 565,000 potentially unauthorized accounts identified by an independent consulting firm because the maximum impact in any one quarter was not greater than 86 basis points, or approximately 2 percent.

⁹ Primarily includes retail banking, consumer lending, small business and business banking customers.

- 10 -

GE Capital portfolio acquisitions, and higher trading and other earning assets. Noninterest income was down 1 percent from the prior year due to lower insurance fees driven by the sale of our crop insurance business in first quarter 2016, lower gains from trading activities, and lower gains on debt securities, partially offset by higher leasing income related to the GE Capital portfolio acquisitions and strong investment banking fees. Noninterest expense increased $511 million, or 15 percent, from a year ago primarily due to the GE Capital portfolio acquisitions and higher expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses increased $42 million from a year ago primarily due to higher oil and gas net charge-offs.

• Average loans increased 11 percent from fourth quarter 2015, on broad-based growth, including asset-backed finance, commercial real estate, corporate banking, equipment finance, government and institutional banking, international, and structured real estate as well as the GE Capital portfolio acquisitions

• Treasury management revenue up 4 percent from fourth quarter 2015

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)	Dec 31, 2016		Sep 30, 2016	Dec 31, 2015
Total revenue	$	4,074	4,099	3,947
Provision (reversal of provision) for credit losses	3		4	(6	)
Noninterest expense	3,042		2,999	2,998
Segment net income	653		677	595
(in billions)
Average loans	70.0		68.4	63.0
Average assets	220.4		212.1	197.9
Average deposits	194.9		189.2	177.9

Wealth and Investment Management reported net income of $653 million, down $24 million, or 4 percent, from third quarter 2016. Revenue of $4.1 billion decreased $25 million, or 1 percent, from the prior quarter, primarily due to lower deferred compensation plan investment results (offset in employee benefits expense), transaction revenue and other fee income, partially offset by higher net interest income and asset-based fees. Noninterest expense increased $43 million, or 1 percent, from the prior quarter, largely driven by higher operating losses and other non-personnel expenses, partially offset by lower deferred compensation plan expense (offset in trading revenue).The provision for credit losses decreased $1 million from third quarter 2016.

Net income was up $58 million, or 10 percent, from fourth quarter 2015. Revenue increased $127 million, or 3 percent, from a year ago primarily driven by higher net interest income and asset-based fees, partially offset by lower transaction revenue and deferred compensation plan investment results (offset in employee benefits expense). Noninterest expense increased $44 million, or 1 percent, from a year ago, primarily due to higher broker

- 11 -

commissions and non-personnel expenses, partially offset by lower deferred compensation plan expense (offset in trading revenue). The provision for credit losses increased $9 million from a year ago.

Retail Brokerage

• Client assets of $1.5 trillion, up 7 percent from prior year

• Advisory assets of $464 billion, up 10 percent from prior year, primarily driven by higher market valuations and positive net flows

• Strong loan growth, with average balances up 16 percent from prior year largely due to continued growth in non-conforming mortgage loans and security-based lending

Wealth Management

• Client assets of $231 billion, up 3 percent from prior year

• Average loan balances up 9 percent over prior year primarily driven by continued growth in non-conforming mortgage loans, security-based lending and commercial loans

Retirement

• IRA assets of $379 billion, up 7 percent from prior year

• Institutional Retirement plan assets of $351 billion, up 5 percent from prior year

Asset Management

• Total assets under management of $482 billion, down 2 percent from prior year primarily due to equity and money market net outflows, partially offset by higher market valuations, fixed income inflows and assets acquired during the quarter

Conference Call

The Company will host a live conference call on Friday, January 13, at 8:30 a.m. PT (11:30 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~31502149.

A replay of the conference call will be available beginning at 11:30 a.m. PT (2:30 p.m. ET) on Friday, January 13 through Friday, January 27. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #31502149. 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~31502149.

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Forward-Looking Statements

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

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

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

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

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

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

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

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

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

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

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

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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;

• negative effects from the retail banking sales practices matter, including on our legal, operational and compliance costs, our ability to engage in certain business activities or offer certain products or services, our ability to keep and attract customers, our ability to attract and retain qualified team members, and our reputation;

• 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 and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2016.

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 and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.

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

- 14 -

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 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 42 countries and territories to support customers who conduct business in the global economy. With approximately 269,000 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.

# # #

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Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS

	Pages
Summary Information
Summary Financial Data	16
Income
Consolidated Statement of Income	18
Consolidated Statement of Comprehensive Income	20
Condensed Consolidated Statement of Changes in Total Equity	20
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)	21
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)	23
Noninterest Income and Noninterest Expense	24
Balance Sheet
Consolidated Balance Sheet	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

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Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

	Quarter ended					% Change Dec 31, 2016 from				Year ended
($ in millions, except per share amounts)	Dec 31, 2016			Sep 30, 2016	Dec 31, 2015	Sep 30, 2016		Dec 31, 2015		Dec 31, 2016			Dec 31, 2015	% Change
For the Period
Wells Fargo net income	$	5,274		5,644	5,575	(7	)%	(5	)	$	21,938		22,894	(4	)%
Wells Fargo net income applicable to common stock	4,872			5,243	5,203	(7	)	(6	)	20,373			21,470	(5	)
Diluted earnings per common share	0.96			1.03	1.00	(7	)	(4	)	3.99			4.12	(3	)
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)	1.08		%	1.17	1.24	(8	)	(13	)	1.16		%	1.31	(11	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)	10.94			11.60	11.93	(6	)	(8	)	11.49			12.60	(9	)
Return on average tangible common equity (ROTCE)(1)	13.16			13.96	14.30	(6	)	(8	)	13.85			15.17	(9	)
Efficiency ratio (2)	61.2			59.4	58.4	3		5		59.3			58.1	2
Total revenue	$	21,582		22,328	21,586	(3	)	—		$	88,267		86,057	3
Pre-tax pre-provision profit (PTPP) (3)	8,367			9,060	8,987	(8	)	(7	)	35,890			36,083	(1	)
Dividends declared per common share	0.380			0.380	0.375	—		1		1.515			1.475	3
Average common shares outstanding	5,025.6			5,043.4	5,108.5	—		(2	)	5,052.8			5,136.5	(2	)
Diluted average common shares outstanding	5,078.2			5,094.6	5,177.9	—		(2	)	5,108.3			5,209.8	(2	)
Average loans	$	964,147		957,484	912,280	1		6		$	949,960		885,432	7
Average assets	1,944,250			1,914,586	1,787,287	2		9		1,885,441			1,742,919	8
Average total deposits	1,284,158			1,261,527	1,216,809	2		6		1,250,566			1,194,073	5
Average consumer and small business banking deposits (4)	749,946			739,066	696,484	1		8		732,620			680,221	8
Net interest margin	2.87		%	2.82	2.92	2		(2	)	2.86		%	2.95	(3	)
At Period End
Investment securities	$	407,947		390,832	347,555	4		17		$	407,947		347,555	17
Loans	967,604			961,326	916,559	1		6		967,604			916,559	6
Allowance for loan losses	11,419			11,583	11,545	(1	)	(1	)	11,419			11,545	(1	)
Goodwill	26,693			26,688	25,529	—		5		26,693			25,529	5
Assets	1,930,115			1,942,124	1,787,632	(1	)	8		1,930,115			1,787,632	8
Deposits	1,306,079			1,275,894	1,223,312	2		7		1,306,079			1,223,312	7
Common stockholders' equity	176,469			179,916	172,036	(2	)	3		176,469			172,036	3
Wells Fargo stockholders’ equity	199,581			203,028	192,998	(2	)	3		199,581			192,998	3
Total equity	200,497			203,958	193,891	(2	)	3		200,497			193,891	3
Tangible common equity (1)	146,737			149,829	143,337	(2	)	2		146,737			143,337	2
Common shares outstanding	5,016.1			5,023.9	5,092.1	—		(1	)	5,016.1			5,092.1	(1	)
Book value per common share (5)	$	35.18		35.81	33.78	(2	)	4		$	35.18		33.78	4
Tangible book value per common share (1)(5)	29.25			29.82	28.15	(2	)	4		29.25			28.15	4
Common stock price:
High	58.02			51.00	56.34	14		3		58.02			58.77	(1	)
Low	43.55			44.10	49.51	(1	)	(12	)	43.55			47.75	(9	)
Period end	55.11			44.28	54.36	24		1		55.11			54.36	1
Team members (active, full-time equivalent)	269,100			268,800	264,700	—		2		269,100			264,700	2

(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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
($ in millions, except per share amounts)	Dec 31, 2016			Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
For the Quarter
Wells Fargo net income	$	5,274		5,644	5,558	5,462	5,575
Wells Fargo net income applicable to common stock	4,872			5,243	5,173	5,085	5,203
Diluted earnings per common share	0.96			1.03	1.01	0.99	1.00
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)	1.08		%	1.17	1.20	1.21	1.24
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)	10.94			11.60	11.70	11.75	11.93
Return on average tangible common equity (ROTCE)(1)	13.16			13.96	14.15	14.15	14.30
Efficiency ratio (2)	61.2			59.4	58.1	58.7	58.4
Total revenue	$	21,582		22,328	22,162	22,195	21,586
Pre-tax pre-provision profit (PTPP) (3)	8,367			9,060	9,296	9,167	8,987
Dividends declared per common share	0.380			0.380	0.380	0.375	0.375
Average common shares outstanding	5,025.6			5,043.4	5,066.9	5,075.7	5,108.5
Diluted average common shares outstanding	5,078.2			5,094.6	5,118.1	5,139.4	5,177.9
Average loans	$	964,147		957,484	950,751	927,220	912,280
Average assets	1,944,250			1,914,586	1,862,084	1,819,875	1,787,287
Average total deposits	1,284,158			1,261,527	1,236,658	1,219,430	1,216,809
Average consumer and small business banking deposits (4)	749,946			739,066	726,359	714,837	696,484
Net interest margin	2.87		%	2.82	2.86	2.90	2.92
At Quarter End
Investment securities	$	407,947		390,832	353,426	334,899	347,555
Loans	967,604			961,326	957,157	947,258	916,559
Allowance for loan losses	11,419			11,583	11,664	11,621	11,545
Goodwill	26,693			26,688	26,963	27,003	25,529
Assets	1,930,115			1,942,124	1,889,235	1,849,182	1,787,632
Deposits	1,306,079			1,275,894	1,245,473	1,241,490	1,223,312
Common stockholders' equity	176,469			179,916	178,633	175,534	172,036
Wells Fargo stockholders’ equity	199,581			203,028	201,745	197,496	192,998
Total equity	200,497			203,958	202,661	198,504	193,891
Tangible common equity (1)	146,737			149,829	148,110	144,679	143,337
Common shares outstanding	5,016.1			5,023.9	5,048.5	5,075.9	5,092.1
Book value per common share (5)	$	35.18		35.81	35.38	34.58	33.78
Tangible book value per common share (1)(5)	29.25			29.82	29.34	28.50	28.15
Common stock price:
High	58.02			51.00	51.41	53.27	56.34
Low	43.55			44.10	44.50	44.50	49.51
Period end	55.11			44.28	47.33	48.36	54.36
Team members (active, full-time equivalent)	269,100			268,800	267,900	268,600	264,700

(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.

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Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

	Quarter ended December 31,				%		Year ended December 31,			%
(in millions, except per share amounts)	2016			2015	Change		2016		2015	Change
Interest income
Trading assets	$	745		558	34	%	$	2,506	1,971	27	%
Investment securities	2,512			2,323	8		9,248		8,937	3
Mortgages held for sale	235			176	34		784		785	—
Loans held for sale	2			5	(60	)	9		19	(53	)
Loans	10,128			9,323	9		39,505		36,575	8
Other interest income	436			258	69		1,611		990	63
Total interest income	14,058			12,643	11		53,663		49,277	9
Interest expense
Deposits	400			241	66		1,395		963	45
Short-term borrowings	101			13	677		330		64	416
Long-term debt	1,061			713	49		3,830		2,592	48
Other interest expense	94			88	7		354		357	(1	)
Total interest expense	1,656			1,055	57		5,909		3,976	49
Net interest income	12,402			11,588	7		47,754		45,301	5
Provision for credit losses	805			831	(3	)	3,770		2,442	54
Net interest income after provision for credit losses	11,597			10,757	8		43,984		42,859	3
Noninterest income
Service charges on deposit accounts	1,357			1,329	2		5,372		5,168	4
Trust and investment fees	3,698			3,511	5		14,243		14,468	(2	)
Card fees	1,001			966	4		3,936		3,720	6
Other fees	962			1,040	(8	)	3,727		4,324	(14	)
Mortgage banking	1,417			1,660	(15	)	6,096		6,501	(6	)
Insurance	262			427	(39	)	1,268		1,694	(25	)
Net gains (losses) from trading activities	(109		)	99	NM		834		614	36
Net gains on debt securities	145			346	(58	)	942		952	(1	)
Net gains from equity investments	306			423	(28	)	879		2,230	(61	)
Lease income	523			145	261		1,927		621	210
Other	(382		)	52	NM		1,289		464	178
Total noninterest income	9,180			9,998	(8	)	40,513		40,756	(1	)
Noninterest expense
Salaries	4,193			4,061	3		16,552		15,883	4
Commission and incentive compensation	2,478			2,457	1		10,247		10,352	(1	)
Employee benefits	1,101			1,042	6		5,094		4,446	15
Equipment	642			640	—		2,154		2,063	4
Net occupancy	710			725	(2	)	2,855		2,886	(1	)
Core deposit and other intangibles	301			311	(3	)	1,192		1,246	(4	)
FDIC and other deposit assessments	353			258	37		1,168		973	20
Other	3,437			3,105	11		13,115		12,125	8
Total noninterest expense	13,215			12,599	5		52,377		49,974	5
Income before income tax expense	7,562			8,156	(7	)	32,120		33,641	(5	)
Income tax expense	2,258			2,533	(11	)	10,075		10,365	(3	)
Net income before noncontrolling interests	5,304			5,623	(6	)	22,045		23,276	(5	)
Less: Net income from noncontrolling interests	30			48	(38	)	107		382	(72	)
Wells Fargo net income	$	5,274		5,575	(5	)	$	21,938	22,894	(4	)
Less: Preferred stock dividends and other	402			372	8		1,565		1,424	10
Wells Fargo net income applicable to common stock	$	4,872		5,203	(6	)	$	20,373	21,470	(5	)
Per share information
Earnings per common share	$	0.97		1.02	(5	)	$	4.03	4.18	(4	)
Diluted earnings per common share	0.96			1.00	(4	)	3.99		4.12	(3	)
Dividends declared per common share	0.380			0.375	1		1.515		1.475	3
Average common shares outstanding	5,025.6			5,108.5	(2	)	5,052.8		5,136.5	(2	)
Diluted average common shares outstanding	5,078.2			5,177.9	(2	)	5,108.3		5,209.8	(2	)

NM – Not meaningful

- 19 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

	Quarter ended
(in millions, except per share amounts)	Dec 31, 2016			Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Interest income
Trading assets	$	745		593	572	596	558
Investment securities	2,512			2,298	2,176	2,262	2,323
Mortgages held for sale	235			207	181	161	176
Loans held for sale	2			2	3	2	5
Loans	10,128			9,978	9,822	9,577	9,323
Other interest income	436			409	392	374	258
Total interest income	14,058			13,487	13,146	12,972	12,643
Interest expense
Deposits	400			356	332	307	241
Short-term borrowings	101			85	77	67	13
Long-term debt	1,061			1,006	921	842	713
Other interest expense	94			88	83	89	88
Total interest expense	1,656			1,535	1,413	1,305	1,055
Net interest income	12,402			11,952	11,733	11,667	11,588
Provision for credit losses	805			805	1,074	1,086	831
Net interest income after provision for credit losses	11,597			11,147	10,659	10,581	10,757
Noninterest income
Service charges on deposit accounts	1,357			1,370	1,336	1,309	1,329
Trust and investment fees	3,698			3,613	3,547	3,385	3,511
Card fees	1,001			997	997	941	966
Other fees	962			926	906	933	1,040
Mortgage banking	1,417			1,667	1,414	1,598	1,660
Insurance	262			293	286	427	427
Net gains (losses) from trading activities	(109		)	415	328	200	99
Net gains on debt securities	145			106	447	244	346
Net gains from equity investments	306			140	189	244	423
Lease income	523			534	497	373	145
Other	(382		)	315	482	874	52
Total noninterest income	9,180			10,376	10,429	10,528	9,998
Noninterest expense
Salaries	4,193			4,224	4,099	4,036	4,061
Commission and incentive compensation	2,478			2,520	2,604	2,645	2,457
Employee benefits	1,101			1,223	1,244	1,526	1,042
Equipment	642			491	493	528	640
Net occupancy	710			718	716	711	725
Core deposit and other intangibles	301			299	299	293	311
FDIC and other deposit assessments	353			310	255	250	258
Other	3,437			3,483	3,156	3,039	3,105
Total noninterest expense	13,215			13,268	12,866	13,028	12,599
Income before income tax expense	7,562			8,255	8,222	8,081	8,156
Income tax expense	2,258			2,601	2,649	2,567	2,533
Net income before noncontrolling interests	5,304			5,654	5,573	5,514	5,623
Less: Net income from noncontrolling interests	30			10	15	52	48
Wells Fargo net income	$	5,274		5,644	5,558	5,462	5,575
Less: Preferred stock dividends and other	402			401	385	377	372
Wells Fargo net income applicable to common stock	$	4,872		5,243	5,173	5,085	5,203
Per share information
Earnings per common share	$	0.97		1.04	1.02	1.00	1.02
Diluted earnings per common share	0.96			1.03	1.01	0.99	1.00
Dividends declared per common share	0.380			0.380	0.380	0.375	0.375
Average common shares outstanding	5,025.6			5,043.4	5,066.9	5,075.7	5,108.5
Diluted average common shares outstanding	5,078.2			5,094.6	5,118.1	5,139.4	5,177.9

- 20 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Quarter ended Dec 31,					%		Year ended Dec 31,					%
(in millions)	2016			2015		Change		2016			2015		Change
Wells Fargo net income	$	5,274		5,575		(5	)%	$	21,938		22,894		(4	)%
Other comprehensive income (loss), before tax:
Investment securities:
Net unrealized losses arising during the period	(5,936		)	(1,301	)	356		(3,458		)	(3,318	)	4
Reclassification of net gains to net income	(239		)	(573	)	(58	)	(1,240		)	(1,530	)	(19	)
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period	(2,434		)	(684	)	256		177			1,549		(89	)
Reclassification of net gains on cash flow hedges to net income	(246		)	(294	)	(16	)	(1,029		)	(1,089	)	(6	)
Defined benefit plans adjustments:
Net actuarial and prior service gains (losses) arising during the period	422			(501	)	NM		(52		)	(512	)	(90	)
Amortization of net actuarial loss, settlements and other to net income	43			11		291		158			114		39
Foreign currency translation adjustments:
Net unrealized losses arising during the period	(30		)	(33	)	(9	)	(3		)	(137	)	(98	)
Reclassification of net gains to net income	—			(5	)	—		—			(5	)	—
Other comprehensive loss, before tax	(8,420		)	(3,380	)	149		(5,447		)	(4,928	)	11
Income tax benefit related to other comprehensive income	3,106			1,230		153		1,996			1,774		13
Other comprehensive loss, net of tax	(5,314		)	(2,150	)	147		(3,451		)	(3,154	)	9
Less: Other comprehensive income (loss) from noncontrolling interests	7			(58	)	NM		(17		)	67		NM
Wells Fargo other comprehensive loss, net of tax	(5,321		)	(2,092	)	154		(3,434		)	(3,221	)	7
Wells Fargo comprehensive income (loss)	(47		)	3,483		NM		18,504			19,673		(6	)
Comprehensive income (loss) from noncontrolling interests	37			(10	)	NM		90			449		(80	)
Total comprehensive income (loss)	$	(10	)	3,473		NM		$	18,594		20,122		(8	)

NM – Not meaningful

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

	Quarter ended
(in millions)	Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
Balance, beginning of period	$	203,958		202,661		198,504		193,891		194,043
Cumulative effect from change in consolidation accounting (1)	—			—		—		121		—
Wells Fargo net income	5,274			5,644		5,558		5,462		5,575
Wells Fargo other comprehensive income (loss), net of tax	(5,321		)	(764	)	1,174		1,477		(2,092	)
Noncontrolling interests	(13		)	14		(92	)	(5	)	(100	)
Common stock issued	610			300		397		1,079		310
Common stock repurchased (2)	(2,034		)	(1,839	)	(2,214	)	(2,029	)	(1,974	)
Preferred stock released by ESOP	43			236		371		313		210
Common stock warrants repurchased/exercised	—			(17	)	—		—		—
Preferred stock issued	—			—		1,126		975		—
Common stock dividends	(1,909		)	(1,918	)	(1,930	)	(1,904	)	(1,917	)
Preferred stock dividends	(401		)	(401	)	(386	)	(378	)	(371	)
Tax benefit from stock incentive compensation	74			31		23		149		22
Stock incentive compensation expense	232			39		139		369		204
Net change in deferred compensation and related plans	(16		)	(28	)	(9	)	(1,016	)	(19	)
Balance, end of period	$	200,497		203,958		202,661		198,504		193,891

(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 quarter ended December 31, 2016, includes $750 million related to a private forward repurchase transaction that settled in first quarter 2017 for 14.7 million shares of common stock. For the quarter ended December 31, 2015, includes $500 million related to a private forward repurchase transaction that settled in first quarter 2016 for 9.2 million shares of common stock.

- 21 -

Wells Fargo & Company and Subsidiaries

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

	Quarter ended December 31,
	2016							2015
(in millions)	Average balance			Yields/ rates		Interest income/ expense		Average balance		Yields/ rates		Interest income/ expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	273,073		0.56	%	$	381	274,589		0.28	%	$	195
Trading assets	102,757			2.96		761		68,833		3.33		573
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	25,935			1.53		99		34,617		1.58		137
Securities of U.S. states and political subdivisions	53,917			4.06		547		49,300		4.37		539
Mortgage-backed securities:
Federal agencies	147,980			2.37		875		102,281		2.79		712
Residential and commercial	16,456			5.87		242		21,502		5.51		297
Total mortgage-backed securities	164,436			2.72		1,117		123,783		3.26		1,009
Other debt and equity securities	52,692			3.71		492		52,701		3.35		444
Total available-for-sale securities	296,980			3.03		2,255		260,401		3.27		2,129
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies	44,686			2.20		246		44,656		2.18		246
Securities of U.S. states and political subdivisions	4,738			5.31		63		2,158		6.07		33
Federal agency and other mortgage-backed securities	46,009			1.81		209		28,185		2.42		170
Other debt securities	3,597			2.26		20		4,876		1.77		22
Total held-to-maturity securities	99,030			2.17		538		79,875		2.35		471
Total investment securities	396,010			2.82		2,793		340,276		3.05		2,600
Mortgages held for sale (4)	27,503			3.43		235		19,189		3.66		176
Loans held for sale (4)	155			5.42		2		363		4.96		5
Loans:
Commercial:
Commercial and industrial - U.S.	272,828			3.46		2,369		250,445		3.25		2,048
Commercial and industrial - Non U.S.	54,410			2.58		352		47,972		1.97		239
Real estate mortgage	131,195			3.44		1,135		121,844		3.30		1,012
Real estate construction	23,850			3.61		216		21,993		3.27		182
Lease financing	18,904			5.78		273		12,241		4.48		136
Total commercial	501,187			3.45		4,345		454,495		3.16		3,617
Consumer:
Real estate 1-4 family first mortgage	277,732			4.01		2,785		272,871		4.04		2,759
Real estate 1-4 family junior lien mortgage	47,203			4.42		524		53,788		4.28		579
Credit card	35,383			11.73		1,043		32,795		11.61		960
Automobile	62,521			5.54		870		59,505		5.74		862
Other revolving credit and installment	40,121			5.91		595		38,826		5.83		571
Total consumer	462,960			5.01		5,817		457,785		4.99		5,731
Total loans (4)	964,147			4.20		10,162		912,280		4.08		9,348
Other	6,729			3.27		56		5,166		4.82		61
Total earning assets	$	1,770,374		3.24	%	$	14,390	1,620,696		3.18	%	$	12,958
Funding sources
Deposits:
Interest-bearing checking	$	46,907		0.17	%	$	19	39,082		0.05	%	$	5
Market rate and other savings	676,365			0.07		122		640,503		0.06		93
Savings certificates	24,362			0.30		18		29,654		0.54		41
Other time deposits	49,170			1.16		144		49,806		0.52		64
Deposits in foreign offices	110,425			0.35		97		107,094		0.14		38
Total interest-bearing deposits	907,229			0.18		400		866,139		0.11		241
Short-term borrowings	124,698			0.33		102		102,915		0.05		12
Long-term debt	252,162			1.68		1,061		190,861		1.49		713
Other liabilities	17,210			2.15		94		16,453		2.14		88
Total interest-bearing liabilities	1,301,299			0.51		1,657		1,176,368		0.36		1,054
Portion of noninterest-bearing funding sources	469,075			—		—		444,328		—		—
Total funding sources	$	1,770,374		0.37		1,657		1,620,696		0.26		1,054
Net interest margin and net interest income on a taxable-equivalent basis (5)				2.87	%	$	12,733			2.92	%	$	11,904
Noninterest-earning assets
Cash and due from banks	$	18,967						17,804
Goodwill	26,713							25,580
Other	128,196							123,207
Total noninterest-earning assets	$	173,876						166,591
Noninterest-bearing funding sources
Deposits	$	376,929						350,670
Other liabilities	64,775							65,224
Total equity	201,247							195,025
Noninterest-bearing funding sources used to fund earning assets	(469,075		)					(444,328	)
Net noninterest-bearing funding sources	$	173,876						166,591
Total assets	$	1,944,250						1,787,287

(1) Our average prime rate was 3.54% and 3.29% for the quarters ended December 31,2016 and 2015, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.92% and 0.41% 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 $331 million and $316 million for the quarters ended December 31,2016 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.

- 22 -

Wells Fargo & Company and Subsidiaries

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

	Year ended December 31,
	2016							2015
(in millions)	Average balance			Yields/ rates		Interest income/ expense		Average balance		Yields/ rates		Interest income/ expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	287,718		0.51	%	$	1,457	266,832		0.28	%	$	738
Trading assets	88,400			2.89		2,553		66,679		3.01		2,010
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	29,418			1.56		457		32,093		1.58		505
Securities of U.S. states and political subdivisions	52,959			4.20		2,225		47,404		4.23		2,007
Mortgage-backed securities:
Federal agencies	110,637			2.50		2,764		100,218		2.73		2,733
Residential and commercial	18,725			5.49		1,029		22,490		5.73		1,289
Total mortgage-backed securities	129,362			2.93		3,793		122,708		3.28		4,022
Other debt and equity securities	53,433			3.44		1,841		49,752		3.42		1,701
Total available-for-sale securities	265,172			3.14		8,316		251,957		3.27		8,235
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies	44,675			2.19		979		44,173		2.19		968
Securities of U.S. states and political subdivisions	2,893			5.32		154		2,087		5.40		113
Federal agency and other mortgage-backed securities	39,330			2.00		786		21,967		2.23		489
Other debt securities	4,043			2.01		81		5,821		1.73		101
Total held-to-maturity securities	90,941			2.20		2,000		74,048		2.26		1,671
Total investment securities	356,113			2.90		10,316		326,005		3.04		9,906
Mortgages held for sale (4)	22,412			3.50		784		21,603		3.63		785
Loans held for sale (4)	218			4.01		9		573		3.25		19
Loans:
Commercial:
Commercial and industrial - U.S.	268,182			3.45		9,243		237,844		3.29		7,836
Commercial and industrial - Non U.S.	51,601			2.36		1,219		46,028		1.90		877
Real estate mortgage	127,232			3.44		4,371		116,893		3.41		3,984
Real estate construction	23,197			3.55		824		20,979		3.57		749
Lease financing	17,950			5.10		916		12,301		4.70		577
Total commercial	488,162			3.39		16,573		434,045		3.23		14,023
Consumer:
Real estate 1-4 family first mortgage	276,712			4.01		11,096		268,560		4.10		11,002
Real estate 1-4 family junior lien mortgage	49,735			4.39		2,183		56,242		4.25		2,391
Credit card	34,178			11.62		3,970		31,307		11.70		3,664
Automobile	61,566			5.62		3,458		57,766		5.84		3,374
Other revolving credit and installment	39,607			5.93		2,350		37,512		5.89		2,209
Total consumer	461,798			4.99		23,057		451,387		5.02		22,640
Total loans (4)	949,960			4.17		39,630		885,432		4.14		36,663
Other	6,262			2.51		157		4,947		5.11		252
Total earning assets	$	1,711,083		3.21	%	$	54,906	1,572,071		3.20	%	$	50,373
Funding sources
Deposits:
Interest-bearing checking	$	42,379		0.14	%	$	60	38,640		0.05	%	$	20
Market rate and other savings	663,557			0.07		449		625,549		0.06		367
Savings certificates	25,912			0.35		91		31,887		0.63		201
Other time deposits	55,846			0.91		508		51,790		0.45		232
Deposits in foreign offices	103,206			0.28		287		107,138		0.13		143
Total interest-bearing deposits	890,900			0.16		1,395		855,004		0.11		963
Short-term borrowings	115,187			0.29		333		87,465		0.07		64
Long-term debt	239,471			1.60		3,830		185,078		1.40		2,592
Other liabilities	16,702			2.12		354		16,545		2.15		357
Total interest-bearing liabilities	1,262,260			0.47		5,912		1,144,092		0.35		3,976
Portion of noninterest-bearing funding sources	448,823			—		—		427,979		—		—
Total funding sources	$	1,711,083		0.35		5,912		1,572,071		0.25		3,976
Net interest margin and net interest income on a taxable-equivalent basis (5)				2.86	%	$	48,994			2.95	%	$	46,397
Noninterest-earning assets
Cash and due from banks	$	18,617						17,327
Goodwill	26,700							25,673
Other	129,041							127,848
Total noninterest-earning assets	$	174,358						170,848
Noninterest-bearing funding sources
Deposits	$	359,666						339,069
Other liabilities	62,825							68,174
Total equity	200,690							191,584
Noninterest-bearing funding sources used to fund earning assets	(448,823		)					(427,979	)
Net noninterest-bearing funding sources	$	174,358						170,848
Total assets	$	1,885,441						1,742,919

(1) Our average prime rate was 3.51% and 3.26% for the years ended December 31,2016 and 2015, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.74% and 0.32% for the same periods, respectively.

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

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

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

(5) Includes taxable-equivalent adjustments of $1.2 billion and $1.1 billion for the years ended December 31,2016 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.

- 23 -

Wells Fargo & Company and Subsidiaries

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

	Quarter ended
	Dec 31, 2016					Sep 30, 2016					Jun 30, 2016					Mar 31, 2016					Dec 31, 2015
($ in billions)	Average balance			Yields/ rates		Average balance			Yields/ rates		Average balance			Yields/ rates		Average balance			Yields/ rates		Average balance			Yields/ rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	273.1		0.56	%	$	299.4		0.50	%	$	293.8		0.49	%	$	284.7		0.49	%	$	274.6		0.28	%
Trading assets	102.8			2.96		88.8			2.72		81.4			2.86		80.5			3.01		68.8			3.33
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	25.9			1.53		25.8			1.52		31.5			1.56		34.4			1.59		34.6			1.58
Securities of U.S. states and political subdivisions	53.9			4.06		55.2			4.28		52.2			4.24		50.5			4.24		49.3			4.37
Mortgage-backed securities:
Federal agencies	148.0			2.37		105.8			2.39		92.0			2.53		96.5			2.80		102.3			2.79
Residential and commercial	16.5			5.87		18.1			5.54		19.6			5.44		20.8			5.20		21.5			5.51
Total mortgage-backed securities	164.5			2.72		123.9			2.85		111.6			3.04		117.3			3.23		123.8			3.26
Other debt and equity securities	52.7			3.71		54.2			3.37		53.3			3.48		53.6			3.21		52.7			3.35
Total available-for-sale securities	297.0			3.03		259.1			3.13		248.6			3.20		255.8			3.20		260.4			3.27
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies	44.7			2.20		44.6			2.19		44.6			2.19		44.7			2.20		44.7			2.18
Securities of U.S. states and political subdivisions	4.7			5.31		2.5			5.24		2.2			5.41		2.1			5.41		2.1			6.07
Federal agency and other mortgage-backed securities	46.0			1.81		48.0			1.97		35.1			1.90		28.1			2.49		28.2			2.42
Other debt securities	3.6			2.26		3.9			1.98		4.1			1.92		4.6			1.92		4.9			1.77
Total held-to-maturity securities	99.0			2.17		99.0			2.15		86.0			2.14		79.5			2.37		79.9			2.35
Total investment securities	396.0			2.82		358.1			2.86		334.6			2.93		335.3			3.01		340.3			3.05
Mortgages held for sale	27.5			3.43		24.1			3.44		20.1			3.60		17.9			3.59		19.2			3.66
Loans held for sale	0.2			5.42		0.2			3.04		0.2			4.83		0.3			3.23		0.4			4.96
Loans:
Commercial:
Commercial and industrial - U.S.	272.8			3.46		271.2			3.48		270.9			3.45		257.7			3.39		250.5			3.25
Commercial and industrial - Non U.S.	54.4			2.58		51.3			2.40		51.2			2.35		49.5			2.10		48.0			1.97
Real estate mortgage	131.2			3.44		128.8			3.48		126.1			3.41		122.7			3.41		121.8			3.30
Real estate construction	23.9			3.61		23.2			3.50		23.1			3.49		22.6			3.61		22.0			3.27
Lease financing	18.9			5.78		18.9			4.70		19.0			5.12		15.1			4.74		12.2			4.48
Total commercial	501.2			3.45		493.4			3.42		490.3			3.39		467.6			3.31		454.5			3.16
Consumer:
Real estate 1-4 family first mortgage	277.7			4.01		278.5			3.97		275.9			4.01		274.7			4.05		272.9			4.04
Real estate 1-4 family junior lien mortgage	47.2			4.42		48.9			4.37		50.6			4.37		52.2			4.39		53.8			4.28
Credit card	35.4			11.73		34.6			11.60		33.4			11.52		33.4			11.61		32.8			11.61
Automobile	62.5			5.54		62.5			5.60		61.1			5.66		60.1			5.67		59.5			5.74
Other revolving credit and installment	40.1			5.91		39.6			5.92		39.5			5.91		39.2			5.99		38.8			5.83
Total consumer	462.9			5.01		464.1			4.97		460.5			4.98		459.6			5.02		457.8			4.99
Total loans	964.1			4.20		957.5			4.17		950.8			4.16		927.2			4.16		912.3			4.08
Other	6.7			3.27		6.4			2.30		6.0			2.30		5.8			2.06		5.1			4.82
Total earning assets	$	1,770.4		3.24	%	$	1,734.5		3.17	%	$	1,686.9		3.20	%	$	1,651.7		3.22	%	$	1,620.7		3.18	%
Funding sources
Deposits:
Interest-bearing checking	$	46.9		0.17	%	$	44.0		0.15	%	$	39.8		0.13	%	$	38.7		0.12	%	$	39.1		0.05	%
Market rate and other savings	676.4			0.07		667.2			0.07		659.0			0.07		651.5			0.07		640.5			0.06
Savings certificates	24.4			0.30		25.2			0.30		26.2			0.35		27.9			0.45		29.6			0.54
Other time deposits	49.2			1.16		54.9			0.93		61.2			0.85		58.2			0.74		49.8			0.52
Deposits in foreign offices	110.4			0.35		107.1			0.30		97.5			0.23		97.7			0.21		107.1			0.14
Total interest-bearing deposits	907.3			0.18		898.4			0.16		883.7			0.15		874.0			0.14		866.1			0.11
Short-term borrowings	124.7			0.33		116.2			0.29		111.8			0.28		107.9			0.25		102.9			0.05
Long-term debt	252.2			1.68		252.4			1.59		236.2			1.56		216.9			1.56		190.9			1.49
Other liabilities	17.1			2.15		16.8			2.11		16.3			2.06		16.5			2.14		16.5			2.14
Total interest-bearing liabilities	1,301.3			0.51		1,283.8			0.48		1,248.0			0.45		1,215.3			0.43		1,176.4			0.36
Portion of noninterest-bearing funding sources	469.1			—		450.7			—		438.9			—		436.4			—		444.3			—
Total funding sources	$	1,770.4		0.37		$	1,734.5		0.35		$	1,686.9		0.34		$	1,651.7		0.32		$	1,620.7		0.26
Net interest margin on a taxable-equivalent basis				2.87	%				2.82	%				2.86	%				2.90	%				2.92	%
Noninterest-earning assets
Cash and due from banks	$	19.0				18.7					18.8					18.0					17.8
Goodwill	26.7					27.0					27.0					26.1					25.6
Other	128.2					134.4					129.4					124.1					123.2
Total noninterest-earnings assets	$	173.9				180.1					175.2					168.2					166.6
Noninterest-bearing funding sources
Deposits	$	376.9				363.1					353.0					345.4					350.7
Other liabilities	64.9					63.8					60.1					62.6					65.2
Total equity	201.2					203.9					201.0					196.6					195.0
Noninterest-bearing funding sources used to fund earning assets	(469.1		)			(450.7		)			(438.9		)			(436.4		)			(444.3		)
Net noninterest-bearing funding sources	$	173.9				180.1					175.2					168.2					166.6
Total assets	$	1,944.3				1,914.6					1,862.1					1,819.9					1,787.3

(1) Our average prime rate was 3.54% for the quarter ended December 31, 2016, 3.50% for the quarters ended September 30, June 30 and March 31, 2016, and 3.29% for the quarter ended December 31,2015. The average three-month London Interbank Offered Rate (LIBOR) was 0.92%, 0.79%, 0.64%, 0.62% and 0.41% for the same quarters, respectively.

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

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

- 24 -

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME

	Quarter ended December 31,					%		Year ended December 31,				%
(in millions)	2016			2015		Change		2016		2015		Change
Service charges on deposit accounts	$	1,357		1,329		2	%	$	5,372	5,168		4	%
Trust and investment fees:
Brokerage advisory, commissions and other fees	2,342			2,288		2		9,216		9,435		(2	)
Trust and investment management	837			838		—		3,336		3,394		(2	)
Investment banking	519			385		35		1,691		1,639		3
Total trust and investment fees	3,698			3,511		5		14,243		14,468		(2	)
Card fees	1,001			966		4		3,936		3,720		6
Other fees:
Charges and fees on loans	305			308		(1	)	1,241		1,228		1
Cash network fees	130			129		1		537		522		3
Commercial real estate brokerage commissions	172			224		(23	)	494		618		(20	)
Letters of credit fees	79			86		(8	)	321		353		(9	)
Wire transfer and other remittance fees	105			95		11		401		370		8
All other fees (1)(2)(3)	171			198		(14	)	733		1,233		(41	)
Total other fees	962			1,040		(8	)	3,727		4,324		(14	)
Mortgage banking:
Servicing income, net	196			730		(73	)	1,765		2,441		(28	)
Net gains on mortgage loan origination/sales activities	1,221			930		31		4,331		4,060		7
Total mortgage banking	1,417			1,660		(15	)	6,096		6,501		(6	)
Insurance	262			427		(39	)	1,268		1,694		(25	)
Net gains (losses) from trading activities	(109		)	99		NM		834		614		36
Net gains on debt securities	145			346		(58	)	942		952		(1	)
Net gains from equity investments	306			423		(28	)	879		2,230		(61	)
Lease income	523			145		261		1,927		621		210
Life insurance investment income	132			139		(5	)	587		579		1
All other (3)	(514		)	(87	)	491		702		(115	)	NM
Total	$	9,180		9,998		(8	)	$	40,513	40,756		(1	)

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 Dec 31,			%		Year ended Dec 31,			%
(in millions)	2016		2015	Change		2016		2015	Change
Salaries	$	4,193	4,061	3	%	$	16,552	15,883	4	%
Commission and incentive compensation	2,478		2,457	1		10,247		10,352	(1	)
Employee benefits	1,101		1,042	6		5,094		4,446	15
Equipment	642		640	—		2,154		2,063	4
Net occupancy	710		725	(2	)	2,855		2,886	(1	)
Core deposit and other intangibles	301		311	(3	)	1,192		1,246	(4	)
FDIC and other deposit assessments	353		258	37		1,168		973	20
Outside professional services	984		827	19		3,138		2,665	18
Operating losses	243		532	(54	)	1,608		1,871	(14	)
Operating leases	379		73	419		1,329		278	378
Contract services	325		266	22		1,203		978	23
Outside data processing	222		205	8		888		985	(10	)
Travel and entertainment	195		196	(1	)	704		692	2
Postage, stationery and supplies	156		177	(12	)	622		702	(11	)
Advertising and promotion	178		184	(3	)	595		606	(2	)
Telecommunications	96		106	(9	)	383		439	(13	)
Foreclosed assets	75		20	275		202		381	(47	)
Insurance	23		57	(60	)	179		448	(60	)
All other	561		462	21		2,264		2,080	9
Total	$	13,215	12,599	5		$	52,377	49,974	5

- 25 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME

	Quarter ended
(in millions)	Dec 31, 2016			Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Service charges on deposit accounts	$	1,357		1,370	1,336	1,309	1,329
Trust and investment fees:
Brokerage advisory, commissions and other fees	2,342			2,344	2,291	2,239	2,288
Trust and investment management	837			849	835	815	838
Investment banking	519			420	421	331	385
Total trust and investment fees	3,698			3,613	3,547	3,385	3,511
Card fees	1,001			997	997	941	966
Other fees:
Charges and fees on loans	305			306	317	313	308
Cash network fees	130			138	138	131	129
Commercial real estate brokerage commissions	172			119	86	117	224
Letters of credit fees	79			81	83	78	86
Wire transfer and other remittance fees	105			103	101	92	95
All other fees (1)(2)(3)	171			179	181	202	198
Total other fees	962			926	906	933	1,040
Mortgage banking:
Servicing income, net	196			359	360	850	730
Net gains on mortgage loan origination/sales activities	1,221			1,308	1,054	748	930
Total mortgage banking	1,417			1,667	1,414	1,598	1,660
Insurance	262			293	286	427	427
Net gains (losses) from trading activities	(109		)	415	328	200	99
Net gains on debt securities	145			106	447	244	346
Net gains from equity investments	306			140	189	244	423
Lease income	523			534	497	373	145
Life insurance investment income	132			152	149	154	139
All other (3)	(514		)	163	333	720	(87	)
Total	$	9,180		10,376	10,429	10,528	9,998

(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
(in millions)	Dec 31, 2016		Sep 30, 2016		Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Salaries	$	4,193	4,224		4,099	4,036	4,061
Commission and incentive compensation	2,478		2,520		2,604	2,645	2,457
Employee benefits	1,101		1,223		1,244	1,526	1,042
Equipment	642		491		493	528	640
Net occupancy	710		718		716	711	725
Core deposit and other intangibles	301		299		299	293	311
FDIC and other deposit assessments	353		310		255	250	258
Outside professional services	984		802		769	583	827
Operating losses	243		577		334	454	532
Operating leases	379		363		352	235	73
Contract services	325		313		283	282	266
Outside data processing	222		233		225	208	205
Travel and entertainment	195		144		193	172	196
Postage, stationery and supplies	156		150		153	163	177
Advertising and promotion	178		117		166	134	184
Telecommunications	96		101		94	92	106
Foreclosed assets	75		(17	)	66	78	20
Insurance	23		23		22	111	57
All other	561		677		499	527	462
Total	$	13,215	13,268		12,866	13,028	12,599

- 26 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

(in millions, except shares)	Dec 31, 2016			Dec 31, 2015		% Change
Assets
Cash and due from banks	$	20,729		19,111		8	%
Federal funds sold, securities purchased under resale agreements and other short-term investments	266,038			270,130		(2	)
Trading assets (1)	74,397			64,815		15
Investment securities:
Available-for-sale, at fair value	308,364			267,358		15
Held-to-maturity, at cost	99,583			80,197		24
Mortgages held for sale	26,309			19,603		34
Loans held for sale	80			279		(71	)
Loans	967,604			916,559		6
Allowance for loan losses	(11,419		)	(11,545	)	(1	)
Net loans	956,185			905,014		6
Mortgage servicing rights:
Measured at fair value	12,959			12,415		4
Amortized	1,406			1,308		7
Premises and equipment, net	8,333			8,704		(4	)
Goodwill	26,693			25,529		5
Derivative assets	14,498			17,656		(18	)
Other assets (1)	114,541			95,513		20
Total assets	$	1,930,115		1,787,632		8
Liabilities
Noninterest-bearing deposits	$	375,967		351,579		7
Interest-bearing deposits	930,112			871,733		7
Total deposits	1,306,079			1,223,312		7
Short-term borrowings	96,781			97,528		(1	)
Derivative liabilities	14,492			13,920		4
Accrued expenses and other liabilities (1)	57,189			59,445		(4	)
Long-term debt	255,077			199,536		28
Total liabilities	1,729,618			1,593,741		9
Equity
Wells Fargo stockholders’ equity:
Preferred stock	24,551			22,214		11
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	60,234			60,714		(1	)
Retained earnings	133,075			120,866		10
Cumulative other comprehensive income (loss)	(3,137		)	297		NM
Treasury stock – 465,702,148 shares and 389,682,664 shares	(22,713		)	(18,867	)	20
Unearned ESOP shares	(1,565		)	(1,362	)	15
Total Wells Fargo stockholders’ equity	199,581			192,998		3
Noncontrolling interests	916			893		3
Total equity	200,497			193,891		3
Total liabilities and equity	$	1,930,115		1,787,632		8

NM – Not meaningful

(1) Prior period has been revised to conform to the current period presentation of reporting derivative assets and liabilities separately.

- 27 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET

(in millions)	Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
Assets
Cash and due from banks	$	20,729		19,287		20,407		19,084		19,111
Federal funds sold, securities purchased under resale agreements and other short-term investments	266,038			298,325		295,521		300,547		270,130
Trading assets (1)	74,397			81,094		71,556		62,657		64,815
Investment securities:
Available-for-sale, at fair value	308,364			291,591		253,006		255,551		267,358
Held-to-maturity, at cost	99,583			99,241		100,420		79,348		80,197
Mortgages held for sale	26,309			27,423		23,930		18,041		19,603
Loans held for sale	80			183		220		280		279
Loans	967,604			961,326		957,157		947,258		916,559
Allowance for loan losses	(11,419		)	(11,583	)	(11,664	)	(11,621	)	(11,545	)
Net loans	956,185			949,743		945,493		935,637		905,014
Mortgage servicing rights:
Measured at fair value	12,959			10,415		10,396		11,333		12,415
Amortized	1,406			1,373		1,353		1,359		1,308
Premises and equipment, net	8,333			8,322		8,289		8,349		8,704
Goodwill	26,693			26,688		26,963		27,003		25,529
Derivative assets	14,498			18,736		20,999		20,043		17,656
Other assets (1)	114,541			109,703		110,682		109,950		95,513
Total assets	$	1,930,115		1,942,124		1,889,235		1,849,182		1,787,632
Liabilities
Noninterest-bearing deposits	$	375,967		376,136		361,934		348,888		351,579
Interest-bearing deposits	930,112			899,758		883,539		892,602		871,733
Total deposits	1,306,079			1,275,894		1,245,473		1,241,490		1,223,312
Short-term borrowings	96,781			124,668		120,258		107,703		97,528
Derivative liabilities	14,492			13,603		15,483		15,184		13,920
Accrued expenses and other liabilities (1)	57,189			69,166		61,433		58,413		59,445
Long-term debt	255,077			254,835		243,927		227,888		199,536
Total liabilities	1,729,618			1,738,166		1,686,574		1,650,678		1,593,741
Equity
Wells Fargo stockholders’ equity:
Preferred stock	24,551			24,594		24,830		24,051		22,214
Common stock	9,136			9,136		9,136		9,136		9,136
Additional paid-in capital	60,234			60,685		60,691		60,602		60,714
Retained earnings	133,075			130,288		127,076		123,891		120,866
Cumulative other comprehensive income (loss)	(3,137		)	2,184		2,948		1,774		297
Treasury stock	(22,713		)	(22,247	)	(21,068	)	(19,687	)	(18,867	)
Unearned ESOP shares	(1,565		)	(1,612	)	(1,868	)	(2,271	)	(1,362	)
Total Wells Fargo stockholders’ equity	199,581			203,028		201,745		197,496		192,998
Noncontrolling interests	916			930		916		1,008		893
Total equity	200,497			203,958		202,661		198,504		193,891
Total liabilities and equity	$	1,930,115		1,942,124		1,889,235		1,849,182		1,787,632

(1) Prior periods have been revised to conform to the current period presentation of reporting derivative assets and liabilities separately.

- 28 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER INVESTMENT SECURITIES

(in millions)	Dec 31, 2016		Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	$	25,819	26,376	27,939	33,813	36,250
Securities of U.S. states and political subdivisions	51,101		55,366	54,024	51,574	49,990
Mortgage-backed securities:
Federal agencies	161,230		135,692	95,868	95,463	104,546
Residential and commercial	16,318		18,387	19,938	21,246	22,646
Total mortgage-backed securities	177,548		154,079	115,806	116,709	127,192
Other debt securities	52,685		54,537	53,935	51,956	52,289
Total available-for-sale debt securities	307,153		290,358	251,704	254,052	265,721
Marketable equity securities	1,211		1,233	1,302	1,499	1,637
Total available-for-sale securities	308,364		291,591	253,006	255,551	267,358
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies	44,690		44,682	44,675	44,667	44,660
Securities of U.S. states and political subdivisions	6,336		2,994	2,181	2,183	2,185
Federal agency and other mortgage-backed securities (1)	45,161		47,721	49,594	28,016	28,604
Other debt securities	3,396		3,844	3,970	4,482	4,748
Total held-to-maturity debt securities	99,583		99,241	100,420	79,348	80,197
Total investment securities	$	407,947	390,832	353,426	334,899	347,555

(1) Predominantly consists of federal agency mortgage-backed securities.

FIVE QUARTER LOANS

(in millions)	Dec 31, 2016		Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Commercial:
Commercial and industrial	$	330,840	324,020	323,858	321,547	299,892
Real estate mortgage	132,491		130,223	128,320	124,711	122,160
Real estate construction	23,916		23,340	23,387	22,944	22,164
Lease financing	19,289		18,871	18,973	19,003	12,367
Total commercial	506,536		496,454	494,538	488,205	456,583
Consumer:
Real estate 1-4 family first mortgage	275,579		278,689	277,162	274,734	273,869
Real estate 1-4 family junior lien mortgage	46,237		48,105	49,772	51,324	53,004
Credit card	36,700		34,992	34,137	33,139	34,039
Automobile	62,286		62,873	61,939	60,658	59,966
Other revolving credit and installment	40,266		40,213	39,609	39,198	39,098
Total consumer	461,068		464,872	462,619	459,053	459,976
Total loans (1)	$	967,604	961,326	957,157	947,258	916,559

(1) Includes $16.7 billion, $17.7 billion, $19.3 billion, $20.3 billion, and $20.0 billion of purchased credit-impaired (PCI) loans at December 31,September 30, June 30, andMarch 31, 2016, and December 31, 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.

(in millions)	Dec 31, 2016		Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Commercial foreign loans:
Commercial and industrial	$	55,396	51,515	50,515	51,884	49,049
Real estate mortgage	8,541		8,466	8,467	8,367	8,350
Real estate construction	375		310	246	311	444
Lease financing	972		958	987	983	274
Total commercial foreign loans	$	65,284	61,249	60,215	61,545	58,117

- 29 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)

(in millions)	Dec 31, 2016			Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Nonaccrual loans:
Commercial:
Commercial and industrial	$	3,216		3,331	3,464	2,911	1,363
Real estate mortgage	685			780	872	896	969
Real estate construction	43			59	59	63	66
Lease financing	115			92	112	99	26
Total commercial	4,059			4,262	4,507	3,969	2,424
Consumer:
Real estate 1-4 family first mortgage	4,962			5,310	5,970	6,683	7,293
Real estate 1-4 family junior lien mortgage	1,206			1,259	1,330	1,421	1,495
Automobile	106			108	111	114	121
Other revolving credit and installment	51			47	45	47	49
Total consumer	6,325			6,724	7,456	8,265	8,958
Total nonaccrual loans (1)(2)(3)	$	10,384		10,986	11,963	12,234	11,382
As a percentage of total loans	1.07		%	1.14	1.25	1.29	1.24
Foreclosed assets:
Government insured/guaranteed	$	197		282	321	386	446
Non-government insured/guaranteed	781			738	796	893	979
Total foreclosed assets	978			1,020	1,117	1,279	1,425
Total nonperforming assets	$	11,362		12,006	13,080	13,513	12,807
As a percentage of total loans	1.17		%	1.25	1.37	1.43	1.40

(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 largely 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.

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Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING

(in millions)	Dec 31, 2016		Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Total (excluding PCI)(1):	$	11,858	12,068	12,385	13,060	14,380
Less: FHA insured/guaranteed by the VA (2)(3)	10,883		11,198	11,577	12,233	13,373
Less: Student loans guaranteed under the FFELP (4)	3		17	20	24	26
Total, not government insured/guaranteed	$	972	853	788	803	981
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	28	47	36	24	97
Real estate mortgage	36		4	22	8	13
Real estate construction	—		—	—	2	4
Total commercial	64		51	58	34	114
Consumer:
Real estate 1-4 family first mortgage (3)	175		171	169	167	224
Real estate 1-4 family junior lien mortgage (3)	56		54	52	55	65
Credit card	452		392	348	389	397
Automobile	112		81	64	55	79
Other revolving credit and installment	113		104	97	103	102
Total consumer	908		802	730	769	867
Total, not government insured/guaranteed	$	972	853	788	803	981

(1) PCI loans totaled $2.0 billion, $2.2 billion, $2.4 billion, $2.7 billion and $2.9 billion, at December 31, September 30, June 30, and March 31, 2016, and December 31,2015, 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 largely guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP.

- 31 -

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 since the merger with Wachovia is presented in the following table.

(in millions)	Quarter ended Dec 31, 2016			Year  ended Dec 31, 2016		2009-2015
Balance, beginning of period	$	11,619		16,301		10,447
Change in accretable yield due to acquisitions	(31		)	27		132
Accretion into interest income (1)	(373		)	(1,365	)	(14,212	)
Accretion into noninterest income due to sales (2)	—			(9	)	(458	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)	—			1,221		9,734
Changes in expected cash flows that do not affect nonaccretable difference (4)	1			(4,959	)	10,658
Balance, end of period	$	11,216		11,216		16,301

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

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

(3) At December 31, 2016, our carrying value for PCI loans totaled $16.7 billion and the remainder of nonaccretable difference established in purchase accounting totaled $954 million. 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.

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Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)

	December 31, 2016
	PCI loans								All other loans
(in millions)	Adjusted unpaid principal balance (2)		Current LTV ratio (3)		Carrying value (4)		Ratio of carrying value to current value (5)		Carrying value (4)		Ratio of carrying value to current value (5)
California	$	14,219	65	%	$	11,070	50	%	$	7,871	47	%
Florida	1,648		72		1,216		52		1,651		58
New Jersey	663		77		470		54		1,090		65
New York	483		72		408		56		542		61
Texas	175		50		154		44		654		39
Other states	3,323		72		2,585		55		4,581		59
Total Pick-a-Pay loans	$	20,511	67		$	15,903	51		$	16,389	53

(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.

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Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES

	Quarter ended December 31,					Year ended December 31,
(in millions)	2016			2015		2016		2015
Balance, beginning of period	$	12,694		12,562		12,512		13,169
Provision for credit losses	805			831		3,770		2,442
Interest income on certain impaired loans (1)	(52		)	(48	)	(205	)	(198	)
Loan charge-offs:
Commercial:
Commercial and industrial	(309		)	(275	)	(1,419	)	(734	)
Real estate mortgage	(14		)	(11	)	(27	)	(59	)
Real estate construction	—			(2	)	(1	)	(4	)
Lease financing	(16		)	(3	)	(41	)	(14	)
Total commercial	(339		)	(291	)	(1,488	)	(811	)
Consumer:
Real estate 1-4 family first mortgage	(86		)	(113	)	(452	)	(507	)
Real estate 1-4 family junior lien mortgage	(110		)	(134	)	(495	)	(635	)
Credit card	(329		)	(295	)	(1,259	)	(1,116	)
Automobile	(243		)	(211	)	(845	)	(742	)
Other revolving credit and installment	(200		)	(178	)	(708	)	(643	)
Total consumer	(968		)	(931	)	(3,759	)	(3,643	)
Total loan charge-offs	(1,307		)	(1,222	)	(5,247	)	(4,454	)
Loan recoveries:
Commercial:
Commercial and industrial	53			60		263		252
Real estate mortgage	26			30		116		127
Real estate construction	8			12		38		37
Lease financing	1			2		11		8
Total commercial	88			104		428		424
Consumer:
Real estate 1-4 family first mortgage	89			63		373		245
Real estate 1-4 family junior lien mortgage	66			64		266		259
Credit card	54			52		207		175
Automobile	77			76		325		325
Other revolving credit and installment	28			32		128		134
Total consumer	314			287		1,299		1,138
Total loan recoveries	402			391		1,727		1,562
Net loan charge-offs	(905		)	(831	)	(3,520	)	(2,892	)
Other	(2		)	(2	)	(17	)	(9	)
Balance, end of period	$	12,540		12,512		12,540		12,512
Components:
Allowance for loan losses	$	11,419		11,545		11,419		11,545
Allowance for unfunded credit commitments	1,121			967		1,121		967
Allowance for credit losses	$	12,540		12,512		12,540		12,512
Net loan charge-offs (annualized) as a percentage of average total loans	0.37		%	0.36		0.37		0.33
Allowance for loan losses as a percentage of total loans	1.18			1.26		1.18		1.26
Allowance for credit losses as a percentage of total loans	1.30			1.37		1.30		1.37

(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 changes in allowance attributable to the passage of time as interest income.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES

	Quarter ended
(in millions)	Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
Balance, beginning of quarter	$	12,694		12,749		12,668		12,512		12,562
Provision for credit losses	805			805		1,074		1,086		831
Interest income on certain impaired loans (1)	(52		)	(54	)	(51	)	(48	)	(48	)
Loan charge-offs:
Commercial:
Commercial and industrial	(309		)	(324	)	(437	)	(349	)	(275	)
Real estate mortgage	(14		)	(7	)	(3	)	(3	)	(11	)
Real estate construction	—			—		(1	)	—		(2	)
Lease financing	(16		)	(4	)	(17	)	(4	)	(3	)
Total commercial	(339		)	(335	)	(458	)	(356	)	(291	)
Consumer:
Real estate 1-4 family first mortgage	(86		)	(106	)	(123	)	(137	)	(113	)
Real estate 1-4 family junior lien mortgage	(110		)	(119	)	(133	)	(133	)	(134	)
Credit card	(329		)	(296	)	(320	)	(314	)	(295	)
Automobile	(243		)	(215	)	(176	)	(211	)	(211	)
Other revolving credit and installment	(200		)	(170	)	(163	)	(175	)	(178	)
Total consumer	(968		)	(906	)	(915	)	(970	)	(931	)
Total loan charge-offs	(1,307		)	(1,241	)	(1,373	)	(1,326	)	(1,222	)
Loan recoveries:
Commercial:
Commercial and industrial	53			65		69		76		60
Real estate mortgage	26			35		23		32		30
Real estate construction	8			18		4		8		12
Lease financing	1			2		5		3		2
Total commercial	88			120		101		119		104
Consumer:
Real estate 1-4 family first mortgage	89			86		109		89		63
Real estate 1-4 family junior lien mortgage	66			70		71		59		64
Credit card	54			51		50		52		52
Automobile	77			78		86		84		76
Other revolving credit and installment	28			31		32		37		32
Total consumer	314			316		348		321		287
Total loan recoveries	402			436		449		440		391
Net loan charge-offs	(905		)	(805	)	(924	)	(886	)	(831	)
Other	(2		)	(1	)	(18	)	4		(2	)
Balance, end of quarter	$	12,540		12,694		12,749		12,668		12,512
Components:
Allowance for loan losses	$	11,419		11,583		11,664		11,621		11,545
Allowance for unfunded credit commitments	1,121			1,111		1,085		1,047		967
Allowance for credit losses	$	12,540		12,694		12,749		12,668		12,512
Net loan charge-offs (annualized) as a percentage of average total loans	0.37		%	0.33		0.39		0.38		0.36
Allowance for loan losses as a percentage of:
Total loans	1.18			1.20		1.22		1.23		1.26
Nonaccrual loans	110			105		98		95		101
Nonaccrual loans and other nonperforming assets	101			96		89		86		90
Allowance for credit losses as a percentage of:
Total loans	1.30			1.32		1.33		1.34		1.37
Nonaccrual loans	121			116		107		104		110
Nonaccrual loans and other nonperforming assets	110			106		97		94		98

(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 changes in allowance attributable to the passage of time as interest income.

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Wells Fargo & Company and Subsidiaries

TANGIBLE COMMON EQUITY (1)

(in millions, except ratios)		Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
Tangible book value per common share (1):
Total equity		$	200,497		203,958		202,661		198,504		193,891
Adjustments:
Preferred stock		(24,551		)	(24,594	)	(24,830	)	(24,051	)	(22,214	)
Additional paid-in capital on ESOP preferred stock		(126		)	(130	)	(150	)	(182	)	(110	)
Unearned ESOP shares		1,565			1,612		1,868		2,271		1,362
Noncontrolling interests		(916		)	(930	)	(916	)	(1,008	)	(893	)
Total common stockholders' equity	(A)	176,469			179,916		178,633		175,534		172,036
Adjustments:
Goodwill		(26,693		)	(26,688	)	(26,963	)	(27,003	)	(25,529	)
Certain identifiable intangible assets (other than MSRs)		(2,723		)	(3,001	)	(3,356	)	(3,814	)	(3,167	)
Other assets (2)		(2,088		)	(2,230	)	(2,110	)	(2,023	)	(2,074	)
Applicable deferred taxes (3)		1,772			1,832		1,906		1,985		2,071
Tangible common equity	(B)	$	146,737		149,829		148,110		144,679		143,337
Common shares outstanding	(C)	5,016.1			5,023.9		5,048.5		5,075.9		5,092.1
Book value per common share	(A)/(C)	$	35.18		35.81		35.38		34.58		33.78
Tangible book value per common share	(B)/(C)	29.25			29.82		29.34		28.50		28.15

		Quarter ended											Year ended
(in millions, except ratios)		Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015		Dec 31, 2016		Dec 31, 2015
Return on average tangible common equity (1):
Net income applicable to common stock	(A)	$	4,872		5,243		5,173		5,085		5,203		20,373		21,470
Average total equity		201,247			203,883		201,003		196,586		195,025		200,690		191,584
Adjustments:
Preferred stock		(24,579		)	(24,813	)	(24,091	)	(23,963	)	(22,407	)	(24,363	)	(21,715	)
Additional paid-in capital on ESOP preferred stock		(128		)	(148	)	(168	)	(201	)	(127	)	(161	)	(138	)
Unearned ESOP shares		1,596			1,850		2,094		2,509		1,572		2,011		1,716
Noncontrolling interests		(928		)	(927	)	(984	)	(904	)	(979	)	(936	)	(1,048	)
Average common stockholders’ equity	(B)	177,208			179,845		177,854		174,027		173,084		177,241		170,399
Adjustments:
Goodwill		(26,713		)	(26,979	)	(27,037	)	(26,069	)	(25,580	)	(26,700	)	(25,673	)
Certain identifiable intangible assets (other than MSRs)		(2,871		)	(3,145	)	(3,600	)	(3,407	)	(3,317	)	(3,254	)	(3,793	)
Other assets (2)		(2,175		)	(2,131	)	(2,096	)	(2,065	)	(1,987	)	(2,117	)	(1,654	)
Applicable deferred taxes (3)		1,785			1,855		1,934		2,014		2,103		1,897		2,248
Average tangible common equity	(C)	$	147,234		149,445		147,055		144,500		144,303		147,067		141,527
Return on average common stockholders' equity (ROE)	(A)/(B)	10.94		%	11.60		11.70		11.75		11.93		11.49		12.60
Return on average tangible common equity (ROTCE)	(A)/(C)	13.16			13.96		14.15		14.15		14.30		13.85		15.17

(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 goodwill and other intangibles on nonmarketable equity investments, which are included in other assets.

(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.

- 36 -

Wells Fargo & Company and Subsidiaries

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

		Estimated
(in billions, except ratio)		Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
Total equity		$	200.5		204.0		202.7		198.5		193.9
Adjustments:
Preferred stock		(24.6		)	(24.6	)	(24.8	)	(24.1	)	(22.2	)
Additional paid-in capital on ESOP preferred stock		(0.1		)	(0.1	)	(0.2	)	(0.2	)	(0.1	)
Unearned ESOP shares		1.6			1.6		1.9		2.3		1.3
Noncontrolling interests		(0.9		)	(1.0	)	(1.0	)	(1.0	)	(0.9	)
Total common stockholders' equity		176.5			179.9		178.6		175.5		172.0
Adjustments:
Goodwill		(26.7		)	(26.7	)	(27.0	)	(27.0	)	(25.5	)
Certain identifiable intangible assets (other than MSRs)		(2.7		)	(3.0	)	(3.4	)	(3.8	)	(3.2	)
Other assets (2)		(2.1		)	(2.2	)	(2.0	)	(2.1	)	(2.1	)
Applicable deferred taxes (3)		1.8			1.8		1.9		2.0		2.1
Investment in certain subsidiaries and other		(0.4		)	(2.0	)	(2.5	)	(1.9	)	(0.9	)
Common Equity Tier 1 (Fully Phased-In) under Basel III	(A)	146.4			147.8		145.6		142.7		142.4
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)	(B)	$	1,369.8		1,380.0		1,372.9		1,345.1		1,321.7
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5)	(A)/(B)	10.7		%	10.7		10.6		10.6		10.8

(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) Represents goodwill and other intangibles on nonmarketable equity investments, which are included in other assets.

(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.

(4) The final Basel III capital rules provide for two capital frameworks: the Standardized Approach, which replaced Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we are subject to the lower of our CET1 ratio calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. Because the final determination of our CET1 ratio and which approach will produce the lower CET1 ratio as of December 31, 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 September 30, June 30 and March 31, 2016, and December 31, 2015, was calculated under the Basel III Standardized Approach RWAs.

(5) The Company’s December 31, 2016, RWAs and capital ratio are preliminary estimates.

- 37 -

Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS (1)

(income/expense in millions, average balances in billions)	Community Banking			Wholesale Banking				Wealth and Investment Management				Other (2)				Consolidated Company
	2016		2015	2016		2015		2016		2015		2016		2015		2016	2015
Quarter ended Dec 31,
Net interest income (3)	$	7,556	7,409	4,323		3,711		1,061		933		(538	)	(465	)	12,402	11,588
Provision (reversal of provision) for credit losses	631		704	168		126		3		(6	)	3		7		805	831
Noninterest income	4,105		4,921	2,830		2,848		3,013		3,014		(768	)	(785	)	9,180	9,998
Noninterest expense	6,985		6,893	4,002		3,491		3,042		2,998		(814	)	(783	)	13,215	12,599
Income (loss) before income tax expense (benefit)	4,045		4,733	2,983		2,942		1,029		955		(495	)	(474	)	7,562	8,156
Income tax expense (benefit)	1,272		1,507	795		841		380		366		(189	)	(181	)	2,258	2,533
Net income (loss) before noncontrolling interests	2,773		3,226	2,188		2,101		649		589		(306	)	(293	)	5,304	5,623
Less: Net income (loss) from noncontrolling interests	40		57	(6	)	(3	)	(4	)	(6	)	—		—		30	48
Net income (loss)	$	2,733	3,169	2,194		2,104		653		595		(306	)	(293	)	5,274	5,575
Average loans	$	488.1	482.2	461.5		417.0		70.0		63.0		(55.5	)	(49.9	)	964.1	912.3
Average assets	1,000.7		921.4	811.9		755.4		220.4		197.9		(88.7	)	(87.4	)	1,944.3	1,787.3
Average deposits	709.8		663.7	459.2		449.3		194.9		177.9		(79.7	)	(74.1	)	1,284.2	1,216.8
Year ended Dec 31,
Net interest income (3)	$	29,833	29,242	16,052		14,350		3,913		3,478		(2,044	)	(1,769	)	47,754	45,301
Provision (reversal of provision) for credit losses	2,691		2,427	1,073		27		(5	)	(25	)	11		13		3,770	2,442
Noninterest income	19,033		20,099	12,490		11,554		12,033		12,299		(3,043	)	(3,196	)	40,513	40,756
Noninterest expense	27,422		26,981	16,126		14,116		12,059		12,067		(3,230	)	(3,190	)	52,377	49,974
Income (loss) before income tax expense (benefit)	18,753		19,933	11,343		11,761		3,892		3,735		(1,868	)	(1,788	)	32,120	33,641
Income tax expense (benefit)	6,182		6,202	3,136		3,424		1,467		1,420		(710	)	(681	)	10,075	10,365
Net income (loss) before noncontrolling interests	12,571		13,731	8,207		8,337		2,425		2,315		(1,158	)	(1,107	)	22,045	23,276
Less: Net income (loss) from noncontrolling interests	136		240	(28	)	143		(1	)	(1	)	—		—		107	382
Net income (loss)	$	12,435	13,491	8,235		8,194		2,426		2,316		(1,158	)	(1,107	)	21,938	22,894
Average loans	$	486.9	475.9	449.3		397.3		67.3		60.1		(53.5	)	(47.9	)	950.0	885.4
Average assets	977.3		910.0	782.0		724.9		211.5		192.8		(85.4	)	(84.8	)	1,885.4	1,742.9
Average deposits	701.2		654.4	438.6		438.9		187.8		172.3		(77.0	)	(71.5	)	1,250.6	1,194.1

(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. Effective fourth quarter 2016, we realigned some personnel and business activities from Wholesale Banking to Community Banking, as a result of the formation of the new Payments, Virtual Solutions, and Innovation Group. Results for these operating segments reflect the shift prospectively from November 1, 2016.

(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.

- 38 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)

								Quarter ended
(income/expense in millions, average balances in billions)	Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
COMMUNITY BANKING
Net interest income (2)	$	7,556		7,430		7,379		7,468		7,409
Provision for credit losses	631			651		689		720		704
Noninterest income	4,105			4,957		4,825		5,146		4,921
Noninterest expense	6,985			6,953		6,648		6,836		6,893
Income before income tax expense	4,045			4,783		4,867		5,058		4,733
Income tax expense	1,272			1,546		1,667		1,697		1,507
Net income before noncontrolling interests	2,773			3,237		3,200		3,361		3,226
Less: Net income from noncontrolling interests	40			10		21		65		57
Segment net income	$	2,733		3,227		3,179		3,296		3,169
Average loans	$	488.1		489.2		485.7		484.3		482.2
Average assets	1,000.7			993.6		967.6		947.4		921.4
Average deposits	709.8			708.0		703.7		683.0		663.7
WHOLESALE BANKING
Net interest income (2)	$	4,323		4,062		3,919		3,748		3,711
Provision for credit losses	168			157		385		363		126
Noninterest income	2,830			3,085		3,365		3,210		2,848
Noninterest expense	4,002			4,120		4,036		3,968		3,491
Income before income tax expense	2,983			2,870		2,863		2,627		2,942
Income tax expense	795			827		795		719		841
Net income before noncontrolling interests	2,188			2,043		2,068		1,908		2,101
Less: Net loss from noncontrolling interests	(6		)	(4	)	(5	)	(13	)	(3	)
Segment net income	$	2,194		2,047		2,073		1,921		2,104
Average loans	$	461.5		454.3		451.4		429.8		417.0
Average assets	811.9			794.2		772.6		748.6		755.4
Average deposits	459.2			441.2		425.8		428.0		449.3
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)	$	1,061		977		932		943		933
Provision (reversal of provision) for credit losses	3			4		2		(14	)	(6	)
Noninterest income	3,013			3,122		2,987		2,911		3,014
Noninterest expense	3,042			2,999		2,976		3,042		2,998
Income before income tax expense	1,029			1,096		941		826		955
Income tax expense	380			415		358		314		366
Net income before noncontrolling interests	649			681		583		512		589
Less: Net income (loss) from noncontrolling interests	(4		)	4		(1	)	—		(6	)
Segment net income	$	653		677		584		512		595
Average loans	$	70.0		68.4		66.7		64.1		63.0
Average assets	220.4			212.1		205.3		208.1		197.9
Average deposits	194.9			189.2		182.5		184.5		177.9
OTHER (3)
Net interest income (2)	$	(538	)	(517	)	(497	)	(492	)	(465	)
Provision (reversal of provision) for credit losses	3			(7	)	(2	)	17		7
Noninterest income	(768		)	(788	)	(748	)	(739	)	(785	)
Noninterest expense	(814		)	(804	)	(794	)	(818	)	(783	)
Loss before income tax benefit	(495		)	(494	)	(449	)	(430	)	(474	)
Income tax benefit	(189		)	(187	)	(171	)	(163	)	(181	)
Net loss before noncontrolling interests	(306		)	(307	)	(278	)	(267	)	(293	)
Less: Net income from noncontrolling interests	—			—		—		—		—
Other net loss	$	(306	)	(307	)	(278	)	(267	)	(293	)
Average loans	$	(55.5	)	(54.4	)	(53.0	)	(51.0	)	(49.9	)
Average assets	(88.7		)	(85.3	)	(83.4	)	(84.2	)	(87.4	)
Average deposits	(79.7		)	(76.9	)	(75.3	)	(76.1	)	(74.1	)
CONSOLIDATED COMPANY
Net interest income (2)	$	12,402		11,952		11,733		11,667		11,588
Provision for credit losses	805			805		1,074		1,086		831
Noninterest income	9,180			10,376		10,429		10,528		9,998
Noninterest expense	13,215			13,268		12,866		13,028		12,599
Income before income tax expense	7,562			8,255		8,222		8,081		8,156
Income tax expense	2,258			2,601		2,649		2,567		2,533
Net income before noncontrolling interests	5,304			5,654		5,573		5,514		5,623
Less: Net income from noncontrolling interests	30			10		15		52		48
Wells Fargo net income	$	5,274		5,644		5,558		5,462		5,575
Average loans	$	964.1		957.5		950.8		927.2		912.3
Average assets	1,944.3			1,914.6		1,862.1		1,819.9		1,787.3
Average deposits	1,284.2			1,261.5		1,236.7		1,219.4		1,216.8

(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. Effective fourth quarter 2016, we realigned some personnel and business activities from Wholesale Banking to Community Banking, as a result of the formation of the new Payments, Virtual Solutions, and Innovation Group. Results for these operating segments reflect the shift prospectively from November 1, 2016.

(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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
(in millions)	Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	10,415		10,396		11,333		12,415		11,778
Servicing from securitizations or asset transfers (1)	752			609		477		366		372
Sales and other (2)	(47		)	4		(22	)	—		(9	)
Net additions	705			613		455		366		363
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)	2,367			39		(779	)	(1,084	)	560
Servicing and foreclosure costs (4)	93			(10	)	(4	)	27		(37	)
Prepayment estimates and other (5)	(106		)	(37	)	(41	)	100		244
Net changes in valuation model inputs or assumptions	2,354			(8	)	(824	)	(957	)	767
Other changes in fair value (6)	(515		)	(586	)	(568	)	(491	)	(493	)
Total changes in fair value	1,839			(594	)	(1,392	)	(1,448	)	274
Fair value, end of quarter	$	12,959		10,415		10,396		11,333		12,415

(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
(in millions)	Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
Amortized MSRs:
Balance, beginning of quarter	$	1,373		1,353		1,359		1,308		1,277
Purchases	34			18		24		21		48
Servicing from securitizations or asset transfers	66			69		38		97		49
Amortization	(67		)	(67	)	(68	)	(67	)	(66	)
Balance, end of quarter	$	1,406		1,373		1,353		1,359		1,308
Fair value of amortized MSRs:
Beginning of quarter	$	1,627		1,620		1,725		1,680		1,643
End of quarter	1,956			1,627		1,620		1,725		1,680

- 40 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

		Quarter ended
(in millions)		Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
Servicing income, net:
Servicing fees (1)		$	738		878		842		910		872
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)	(A)	2,354			(8	)	(824	)	(957	)	767
Other changes in fair value (3)		(515		)	(586	)	(568	)	(491	)	(493	)
Total changes in fair value of MSRs carried at fair value		1,839			(594	)	(1,392	)	(1,448	)	274
Amortization		(67		)	(67	)	(68	)	(67	)	(66	)
Net derivative gains (losses) from economic hedges (4)	(B)	(2,314		)	142		978		1,455		(350	)
Total servicing income, net		$	196		359		360		850		730
Market-related valuation changes to MSRs, net of hedge results (2)(4)	(A)+(B)	$	40		134		154		498		417

(1) Includes contractually specified servicing fees, late charges and other ancillary revenues, net of unreimbursed direct servicing costs.

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

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

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

(in billions)	Dec 31, 2016			Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,205		1,226	1,250	1,280	1,300
Owned loans serviced	347			352	349	342	345
Subserviced for others	8			4	4	4	4
Total residential servicing	1,560			1,582	1,603	1,626	1,649
Commercial mortgage servicing:
Serviced for others	479			477	478	485	478
Owned loans serviced	132			130	128	125	122
Subserviced for others	8			8	8	8	7
Total commercial servicing	619			615	614	618	607
Total managed servicing portfolio	$	2,179		2,197	2,217	2,244	2,256
Total serviced for others	$	1,684		1,703	1,728	1,765	1,778
Ratio of MSRs to related loans serviced for others	0.85		%	0.69	0.68	0.72	0.77
Weighted-average note rate (mortgage loans serviced for others)	4.26			4.28	4.32	4.34	4.37

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

- 41 -

Wells Fargo & Company and Subsidiaries

SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA

		Quarter ended
		Dec 31, 2016			Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015
Net gains on mortgage loan origination/sales activities (in millions):
Residential	(A)	$	939		953	744	532	600
Commercial		90			167	72	71	108
Residential pipeline and unsold/repurchased loan management (1)		192			188	238	145	222
Total		$	1,221		1,308	1,054	748	930
Application data (in billions):
Wells Fargo first mortgage quarterly applications		$	75		100	95	77	64
Refinances as a percentage of applications		48		%	55	46	52	48
Wells Fargo first mortgage unclosed pipeline, at quarter end		$	30		50	47	39	29
Residential real estate originations:
Purchases as a percentage of originations		50		%	58	60	55	59
Refinances as a percentage of originations		50			42	40	45	41
Total		100		%	100	100	100	100
Wells Fargo first mortgage loans (in billions):
Retail		$	35		37	34	24	27
Correspondent		36			32	28	19	19
Other (2)		1			1	1	1	1
Total quarter-to-date		$	72		70	63	44	47
Held-for-sale	(B)	$	56		53	46	31	33
Held-for-investment		16			17	17	13	14
Total quarter-to-date		$	72		70	63	44	47
Total year-to-date		$	249		177	107	44	213
Production margin on residential held-for-sale mortgage originations	(A)/(B)	1.68		%	1.81	1.66	1.68	1.83

(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
(in millions)	Dec 31, 2016			Sep 30, 2016		Jun 30, 2016		Mar 31, 2016		Dec 31, 2015
Balance, beginning of period	$	239		255		355		378		538
Provision for repurchase losses:
Loan sales	10			11		8		7		9
Change in estimate (1)	(7		)	(24	)	(89	)	(19	)	(128	)
Net additions (reductions)	3			(13	)	(81	)	(12	)	(119	)
Losses	(13		)	(3	)	(19	)	(11	)	(41	)
Balance, end of period	$	229		239		255		355		378

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

EX-99.2

4Q16 Quarterly Supplement January 13, 2017 © 2017 Wells Fargo & Company. All rights reserved.

Wells Fargo 4Q16 Supplement 1 Appendix Real estate 1-4 family mortgage portfolio 29 Consumer credit card portfolio 30 Auto portfolios 31 Student lending portfolio 32 Common Equity Tier 1 (Fully Phased-In) 33 Return on average tangible common equity (ROTCE) 34 Forward-looking statements and additional information 35 Table of contents 4Q16 Results Year-over-year results Page 2 Retail Banking sales practices 3-6 4Q16 Highlights 7 Hedge ineffectiveness accounting impact 8 Balance Sheet and credit overview (linked quarter) 9 Income Statement overview (linked quarter) 10 Loans 11 Year-over-year loan growth 12 Deposits 13 Net interest income 14 Noninterest income 15 Total trading-related net interest income and noninterest income 16 Noninterest income trends 17 Noninterest expense and efficiency ratio 18 Continued expense and efficiency focus 19 Branch rationalization strategy 20 Community Banking 21 Wholesale Banking 22 Wealth and Investment Management 23 Credit quality 24 Oil and gas loan portfolio 25 Capital 26 Summary 27

Wells Fargo 4Q16 Supplement 2 885.4 950.0 2015 2016 1,194.1 1,250.6 2015 2016 45.3 47.8 2015 2016 5,092.1 5,016.1 2015 2016 86.1 88.3 2015 2016 22.9 21.9 2015 2016 Year-over-year results Diluted earnings per common share Net Income ($ in billions, except EPS) Revenue ($ in billions) Period-end Common Shares Outstanding (shares in millions) Average Deposits ($ in billions) Average Loans ($ in billions) Net Interest Income ($ in billions) $4.12 $3.99

Wells Fargo 4Q16 Supplement 3 Retail Banking sales practices remediation plan update  Reached out to 40 million retail and 3 million small business customers through statement messaging, other mailings and online communications – Over 168,000 potentially unauthorized credit card customers called as of 12/31/2016  Sales Practices Consent Order Program Office established in early October 2016 – Head of the group reports to the Chief Risk Officer  OCC and CFPB Consent Orders, and L.A. Stipulated Judgement – In December we submitted our Reimbursement and Redress Plans – As of 12/9/16, we have issued a total of $3.2 million of refunds for potentially unauthorized accounts that incurred fees and charges, including the addition of consumer and small business unsecured line of credit accounts, for the period of May 2011 – June 2015 • We believe we have fulfilled our customer reimbursement requirements under the L.A. Stipulated Judgement, subject to an audit review – Analytical work underway to review expanded time periods to cover the entire Consent Order period of January 2011 – September 2016 – Hired independent consultant to perform sales practices evaluation and root cause analysis  Additional work beyond requirements – Established a voluntary, no-cost to the consumer mediation program nation-wide (beyond the requirements in the L.A. Stipulated Judgement to do so for California) – Data analysis for potentially unauthorized accounts for 2009-2010 underway – Hired an additional third party consultant to evaluate sales practices more broadly across Wells Fargo  Continued progress to evaluate potentially unauthorized credit card accounts – Further analysis of potential credit score impact is underway, including review of customers impacted by lower credit score from a potentially unauthorized inquiry and/or credit card • ~ 56% of the 563,840 credit card accounts had a credit bureau inquiry and/or a new trade line originated within 12 months of account opening • ~ 56% of those (or 177,309 accounts, 31% of the total) had a credit score decline, with a median decrease of 9 points – Analysis of signature matching is underway • In the 267,000 cases where Wells Fargo has a signature from a credit card application and a signature from the corresponding deposit account, over 90% of those signatures match

Wells Fargo 4Q16 Supplement 4 Recently initiated Retail Banking compensation program  Principles of the new Retail Banking compensation program include: - No product sales goals - Performance based on customer service, growth in primary customers, household relationship growth, and risk management • A larger allocation of incentives will be associated with direct customer feedback and product usage • Metrics will take a longer term view of the customer relationship - Metrics will be heavily weighted towards team (branch) goals, not just individual goals - Additional centralized monitoring and controls in place to provide enhanced oversight of sales processes – Periodic reviews and checkpoints to monitor any unintended outcomes or behavior prompted by the new compensation plan  Developed by a team of HR professionals, cross organizational and cross functional management, and outside consultants leveraging listening sessions that Mary Mack, head of Community Banking, held across the U.S. over the last 3 months with ~3,000 team members  Team member communications outlining the new program have just recently been initiated  We will spend the first half of 2017 training our team to ensure that we successfully achieve our new objectives  As part of our annual compensation review process, on 1/8/17 Wells Fargo increased the minimum hourly pay rate for all U.S.-based team members to $13.50 - $17.00 an hour, depending on factors such as experience and geography, which at the low end of the range is a 12% increase from the previous minimum hourly rate and 86% higher than the national minimum wage of $7.25 an hour

Wells Fargo 4Q16 Supplement 5 Monitoring customer activity in Retail Banking (page 1 of 2) Percentage changes are calculated using whole numbers. If the % change were based on the rounded amounts presented, it would produce a different result for Branch Banker Interactions, Consumer Checking Account Opens, Consumer Checking Account Customer-Initiated Closures, Consumer Credit Card Point-of-Sale Active Accounts, Consumer Credit Card Applications and Consumer Credit Card Purchase Volume, but all differences are attributable to rounding. (1) December 2016 had 21 business days, November 2016 had 20 business days, while December 2015 had 22 business days. (2) A customer communication or transaction qualifies as a customer traffic interaction, which is consistent with the definition used by management for each customer channel presented. Preparation of customer traffic interaction metrics requires the application of interpretive judgement for each communication or transaction. Management uses these metrics to monitor customer traffic trends within the Company’s Retail Banking business. (3) Primarily includes retail banking, consumer lending, small business and business banking customers. (4) Does not include accounts closed by the bank. (5) Period-end and average deposits for December 2016 included $1.2 billion and $2.5 billion, respectively, of deposits related to our new Payments, Virtual Solutions, and Innovation Group that involved realignment in fourth quarter 2016 of some personnel and business activities from Wholesale Banking to the Community Banking operating segment. (6) Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit. (7) Credit card metrics shown in the table are for general purpose cards only. (in millions, unless otherwise noted) Dec 2016 Nov 2016 Dec 2015 Nov 2016 Dec 2015 Customer Interactions (2) Total Branch Interactions 55.3 49.7 58.8 11% -6% Teller Transactions 52.3 46.9 55.4 12% -6% Branch Banker Interactions 2.9 2.8 3.4 6% -14% Total Phone Banker Interactions 9.6 9.3 9.0 3% 7% Total Digital (Online and Mobile) Secure Sessions 479.2 461.5 461.2 4% 4% Total Digital (Online and Mobile) Active Customers (3) 27.3 27.4 Consumer Checking Account Opens 0.3 0.3 0.5 2% -40% Consumer Checking Account Customer-Initiated Closures (4) 0.2 0.2 0.2 -4% -5% Deposit Balances and Accounts Consumer and Small Business Banking Deposits (period end, $ in billions) (5) 760.6$ 748.8$ 711.0$ 2% 7% Consumer and Small Business Banking Deposits (average, $ in billions) (5) 753.8$ 747.5$ 702.0$ 1% 7% Primary Consumer Checking Customers (6) 23.5 23.6 22.8 0% 3% Primary Consumer Checking Customers YoY Growth (6) 3.0% 3.5% 5.5% Debit Cards (Consumer and Business) Point-of-Sale Active Cards 26.2 26.1 25.9 0% 1% Point-of-Sale Transactions 698.0 654.9 658.2 7% 6% Consumer Credit Cards (7) Point-of-Sale Active Accounts 8.0 7.8 7.5 2% 7% Applications 0.2 0.2 0.3 -7% -43% Balances (period end, $ in billions) 28.3$ 27.4$ 25.7$ 3% 10% Purchase Volume ($ in billions) 6.6$ 5.8$ 6.1$ 13% 8% Customer Experience Survey Scores with Branch Customer Loyalty 55.5% 53.6% 61.4% Overall Satisfaction with Most Recent Visit 76.4% 74.8% 78.0% Dec 2016 change from: (1)

Wells Fargo 4Q16 Supplement 6 In the month of December existing customers continued to actively use their accounts Monitoring customer activity in Retail Banking (page 2 of 2) Customer Interactions  Total branch interactions were up 11% from November 2016 (linked month “LM”) and down 6% from December 2015 – Branch banker interactions were down from December 2015 primarily driven by a slowdown in new account openings Deposit Balances and Accounts  Average consumer and small business deposit balances were up 1% LM and 7% from December 2015  Consumer checking account opens were up 2% LM and down 40% from December 2015  Customer-initiated consumer checking account closures were down 4% LM and 5% from December 2015 Debit and Credit Cards  Customers continued to actively use their debit and credit cards – Point-of-sale debit card transactions were up 7% LM consistent with historical seasonality, and were up 6% from December 2015 – Point-of-sale active consumer credit card accounts were up 2% LM and 7% from December 2015; both consumer credit card purchase volume and balances outstanding were up LM and from December 2015  New credit card applications were down 7% LM and 43% from December 2015 Customer Experience Surveys  Customer loyalty scores were up LM, with scores showing improvement from lows seen early in October, but down from December 2015  Survey results of overall satisfaction with most recent visit were 76.4% in December, up from 74.8% in November 2016, but down from 78.0% in December 2015

Wells Fargo 4Q16 Supplement 7 5,575 5,462 5,558 5,644 5,274 4Q15 1Q16 2Q16 3Q16 4Q16 4Q16 Highlights  Earnings of $5.3 billion included net hedge ineffectiveness accounting “net hedge ineffectiveness” impact of $(592) million, or $(0.07) per diluted common share  Diluted earnings per common share of $0.96  Revenue flat year-over-year (YoY) and down 3% linked quarter (LQ) - Net interest income up 7% YoY and 4% LQ - Noninterest income down 8% YoY and 12% LQ and included net hedge ineffectiveness impact of $(592) million  Continued loan and deposit growth - Average loans up 6% YoY and 1% LQ - Average deposits up 6% YoY and 2% LQ  Solid credit quality - Provision expense down 3% YoY and stable LQ - Nonperforming assets down 11% YoY and 5% LQ  Strong capital position - Common Equity Tier 1 ratio (fully phased- in) of 10.7% at 12/31/16 (1) - Returned $3.0 billion to shareholders through common stock dividends and net share repurchases (1) 4Q16 capital ratio is a preliminary estimate. Fully phased-in capital ratios are calculated assuming the full phase-in of the Basel III capital rules. See page 33 for additional information regarding the Common Equity Tier 1 capital ratio. Diluted earnings per common share Wells Fargo Net Income ($ in millions, except EPS) $1.00 $0.99 $1.01 $1.03 $0.96

Wells Fargo 4Q16 Supplement 8 Hedge ineffectiveness accounting impact  Fixed rate long-term debt is typically swapped to a floating rate as part of balancing our deposit oriented liability structure to better align with the interest rate sensitivity characteristics of our asset mix. Additionally, a portion of our non-US dollar long-term debt is issued to diversify our funding sources rather than funding non-US assets, and as a result is swapped back to US dollars.  Substantially all of our hedge ineffectiveness relates to these hedges on our long-term debt  Hedge ineffectiveness results when the change in the fair value of our swaps do not fully offset the change in value of our long-term debt due to changes in interest and foreign currency rates – A significant portion of this measurement difference results from the accounting requirement to include our credit spread in the contractual cash flows and discount rates for our long-term debt; however, interest rate swap cash flows and discount rates do not include a similar credit spread  In 2016 we experienced significant volatility in hedge ineffectiveness due to key interest rate and foreign currency fluctuations; however, the full year impact, net of related economic hedges, was close to neutral  In general, we experience hedge ineffectiveness losses when interest rates shift higher and/or the U.S. dollar appreciates  Over the life of the hedges, as long as hedge accounting is maintained and the hedges are held to maturity, the ineffectiveness is expected to be zero  If issued in its current form, FASB’s proposed new hedge accounting rules, which are expected to be finalized in 2017, would significantly reduce the interest rate-related ineffectiveness associated with our long-term debt hedges ($ in millions) 1Q16 2Q16 3Q16 4Q16 2016 Net hedge ineffectiveness $ 379 56 142 (592) (15)

Wells Fargo 4Q16 Supplement 9 Balance Sheet and credit overview (linked quarter) Loans  Loans up $6.3 billion on growth in commercial loans - Consumer loans were reduced by the $3.8 billion deconsolidation of certain previously sold reverse mortgage loans after the sale of the related servicing. Although these loans had previously been sold, they had remained consolidated as a result of their sale being treated as a secured borrowing with an offset in long- term debt. Short-term investments/ Fed funds sold  Down $32.3 billion reflecting deployment into loans and investment securities as well as a smaller balance sheet Trading assets  Down $6.7 billion Investment securities  Up $17.1 billion as ~$44 billion of gross purchases, predominantly agency MBS, were partially offset by run-off Deposits  Up $30.2 billion due to increases in commercial, and consumer and small business banking balances Long-term debt  Up $242 million as ~$22 billion of issuances were offset by maturities, fair value market changes and the deconsolidation of reverse mortgage-related debt - Issuances included $8.3 billion of parent TLAC-eligible issuance, and $8.5 billion of Federal Home Loan Bank (FHLB) borrowings Short-term borrowings  Down $27.9 billion reflecting lower repurchase balances Common stock outstanding  Common shares outstanding down 7.8 million on net share repurchases of $1.1 billion Credit  Net charge-offs of $905 million, up $100 million  Nonperforming assets of $11.4 billion, down $644 million  $100 million reserve release (1) driven by continued improvement in residential real estate and stabilization in oil and gas portfolio performance Period-end balances. All comparisons are 4Q16 compared with 3Q16. (1) 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.

Wells Fargo 4Q16 Supplement 10 Income Statement overview (linked quarter) Total revenue  Revenue of $21.6 billion, down $746 million Net interest income  NII up $450 million, and NIM up 5 bps to 2.87%, primarily due to growth in loans and investment securities, higher interest income on trading assets, higher variable income, and a modest benefit from higher interest rates Noninterest income  Noninterest income down $1.2 billion - Trust and investment fees up $85 million on stronger investment banking - Mortgage banking down $250 million on lower mortgage servicing and mortgage origination revenue - Market sensitive revenue (1) down $319 million as lower trading was partially offset by higher gains on equity investments and debt securities - Other income down $697 million and included $592 million of net hedge ineffectiveness losses resulting from certain key interest rate and foreign currency fluctuations Noninterest expense  Noninterest expense down $53 million - Personnel expenses were down $195 million driven by lower deferred compensation expense and lower revenue-related incentive compensation - Equipment expense up $151 million on higher software maintenance including annual software license renewals - Outside professional services up $182 million reflecting higher project spending and legal expense - Operating losses were down $334 million on lower litigation accruals - All other expenses were down $116 million from 3Q16 which included a $107 million donation to the Wells Fargo Foundation All comparisons are 4Q16 compared with 3Q16. (1) Consists of net gains from trading activities, debt securities and equity investments.

Wells Fargo 4Q16 Supplement 11 916.6 947.3 957.2 961.3 967.6 4Q15 1Q16 2Q16 3Q16 4Q16 Loans  Total loans increased $51.0 billion, or 6%, YoY and $6.3 billion LQ - Commercial loans up $10.1 billion LQ on higher commercial real estate and broad-based C&I loan growth - Consumer loans down $3.8 billion LQ as declines in consumer real estate, auto and student lending were partially offset by growth in credit card and securities-based lending • Consumer real estate 1-4 family first mortgage loans were reduced by the $3.8 billion deconsolidation of certain reverse mortgage loans  Total average loans of $964.1 billion up $51.9 billion, or 6%, YoY and $6.7 billion, or 1%, LQ  Total average loan yield of 4.20%, up 3 bps LQ Average Period-end Total average loan yield Period-end Loans Outstanding ($ in billions) 4.08% 4.16% 4.16% 4.17% 4.20%

Wells Fargo 4Q16 Supplement 12 20 24 28 32 36 40 44 4Q15 4Q16 Other Revolving Credit and Installment 20 24 28 32 36 4Q15 4Q16 Credit Card 150 180 210 240 270 300 4Q15 4Q16 Real Estate 1-4 Family First Mortgage 100 120 140 160 4Q15 4Q16 Commercial Real Estate 200 230 260 290 320 350 4Q15 4Q16 Commercial and Industrial Year-over-year loan growth  Growth in active accounts, up 6% YoY ($ in billions)  GE Capital portfolio acquisitions and organic growth Period-end balances.  Primarily CRE mortgage growth  Nonconforming mortgage growth  Included $3.8 billion reduction from the deconsolidation of certain reverse mortgage loans  Growth in securities-based lending and student lending

Wells Fargo 4Q16 Supplement 13 866.1 898.4 907.3 350.7 363.1 376.9 1,216.8 1,261.5 1,284.2 4Q15 3Q16 4Q16 Interest-bearing deposits Noninterest-bearing deposits 1,223.3 1,275.9 1,306.1 4Q15 3Q16 4Q16 Deposits  Deposits up $67.4 billion, or 6%, YoY and $22.7 billion, or 2%, LQ - Noninterest-bearing deposits up $26.2 billion, or 7%, YoY and $13.8 billion, or 4%, LQ - Interest-bearing deposits up $41.2 billion, or 5%, YoY and $8.9 billion, or 1%, LQ  Average deposit cost of 12 bps, up 1 bp LQ and up 4 bps YoY driven by commercial deposit pricing  Consumer and small business banking deposits (1) of $749.9 billion, up 8% YoY and 1% LQ  Total period-end deposits up $82.8 billion, or 7%, YoY on strong commercial deposit growth as well as a $49.6 billion increase in consumer and small business banking balances (1)  Primary consumer checking customers (2) in December up 3.0% YoY Average deposit cost (1) Total deposits excluding mortgage escrow and wholesale deposits. Period-end and average consumer and small business banking deposits for 4Q16 included $1.2 billion and $2.1 billion, respectively, of deposits related to our new Payments, Virtual Solutions, and Innovation Group that involved realignment in fourth quarter 2016 of some personnel and business activities from Wholesale Banking to the Community Banking operating segment. (2) Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposits. Average Period-end Average Deposits and Rates ($ in billions) Period-end Deposits ($ in billions) 0.08% 0.11% 0.12%

Wells Fargo 4Q16 Supplement 14 11,588 11,667 11,733 11,952 12,402 4Q15 1Q16 2Q16 3Q16 4Q16  Net interest income up $814 million, or 7%, YoY and $450 million, or 4%, LQ primarily due to growth in loans and investment securities, higher interest income on trading assets, higher variable income, and a modest benefit from higher interest rates  Average earning assets up $35.9 billion, or 2%, LQ - Investment securities up $37.9 billion - Trading assets up $14.0 billion - Loans up $6.7 billion - Mortgages held for sale up $3.4 billion - Short-term investments/fed funds sold down $26.3 billion  NIM of 2.87% up 5 bps from 3Q16 primarily driven by growth in loans, investment securities and trading income, and the net benefit from higher interest rates - Income from variable sources, including periodic dividends and fees, contributed ~2 bps Net interest income Net Interest Margin (NIM) Net Interest Income ($ in millions) 2.92% 2.90% 2.86% 2.82% 2.87%

Wells Fargo 4Q16 Supplement 15 Noninterest income  Trust and investment fees up $85 million LQ on higher investment banking and asset-based fees - Brokerage advisory, commissions and other fees flat as lower transaction revenues were offset by higher asset-based fees - Investment banking fees up $99 million, or 24%, on higher advisory and loan syndications  Other fees up $36 million on higher commercial real estate brokerage commissions  Mortgage banking down $250 million reflecting lower servicing income and mortgage origination revenue - Servicing income down $163 million primarily due to higher unreimbursed servicing costs - Residential mortgage origination revenue down $87 million on a lower held-for-sale production margin  Trading gains down $524 million - Please see page 16 for additional information  Gains from equity investments up $166 million from a number of venture capital, private equity and other investments  Other income down $697 million and included $592 million in net hedge ineffectiveness losses due to certain key interest rate and foreign currency fluctuations 9,998 10,528 10,429 10,376 9,180 4Q15 1Q16 2Q16 3Q16 4Q16 ($ in millions) 4Q16 vs 3Q16 vs 4Q15 Noninterest income Service charges on deposit accounts $ 1,357 (1) % 2 Trust and investment fees: Brokerage advisory, commissions and other fees 2,342 - 2 Trust and investment management 837 (1) - Investment banking 519 24 35 Card fees 1,001 - 4 Other fees 962 4 (8) Mortgage banking 1,417 (15) (15) Insurance 262 (11) (39) Net losses from trading activities (109) n.m. n.m. Net gains on debt securities 145 37 (58) Net gains from equity investments 306 n.m. (28) Lease income 523 (2) n.m. Other (382) n.m. n.m. Total noninterest income $ 9,180 (12) % (8)

Wells Fargo 4Q16 Supplement 16  Total trading-related revenue was down $378 million from 3Q16: – Net interest income increased $146 million on: • Higher average trading asset balances, up 16% • $98 million in net interest income associated with the periodic dividends and carry income on hedged positions in our equity and RMBS books, with offsetting losses in net gains on trading activities from the resulting valuation change on the associated hedged assets (neutral to total trading-related revenue) – Net gains/(losses) on trading activities declined $524 million on: • $223 million in lower secondary trading driven by reduced client volumes compared with a strong 3Q16, as well as seasonality, fewer trading days in the quarter and lower client demand as clients adapted to the rising rate environment • $106 million decline in deferred compensation trading results (largely offset in employee benefits expense) • $98 million loss resulting from valuation adjustments related to hedging activity for RMBS and equity assets which was offset by dividends and carry income from the associated assets that was recognized in net interest income (neutral to total trading-related revenue) • $(61) million change in credit valuation adjustments (CVA) due to market-driven changes in credit spreads and higher swap rates during 4Q16  Total trading-related revenue was down $27 million from 4Q15 as a $60 million decline in deferred compensation results and $55 million lower CVA were partially offset by higher client volumes and interest income on trading assets Total trading-related net interest income and noninterest income ($ in millions) 4Q16 3Q16 4Q15 Total trading-related revenue Net interest income $ 651 505 470 $ 146 29 % $ 181 39 % Net gains/(losses) on trading activities (109) 415 99 (524) n.m. (208) n.m. Total trading-related revenue $ 542 920 569 $ (378) (41) % $ (27) (5) % Linked Quarter Change Year-over-year Change

Wells Fargo 4Q16 Supplement 17 (200) - 200 400 600 800 1,000 1,200 4Q15 1Q16 2Q16 3Q16 4Q16 Net gains from equity investments Net gains on debt securities Net gains (losses) from trading activities Noninterest income trends - 200 400 600 800 1,000 1,200 1,400 4Q15 1Q16 2Q16 3Q16 4Q16 Deposit Service Charges ($ in millions) ( 5 quarter average) Trust & Investment Fees ($ in millions) Card Fees ($ in millions) Other Fees ($ in millions) Mortgage Banking ($ in millions) Market Sensitive Revenue ($ in millions) - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4Q15 1Q16 2Q16 3Q16 4Q16 Investment banking Trust and investment management Brokerage advisory, commissions and other fees - 200 400 600 800 1,000 1,200 4Q15 1Q16 2Q16 3Q16 4Q16 - 200 400 600 800 1,000 1,200 4Q15 1Q16 2Q16 3Q16 4Q16 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 4Q15 1Q16 2Q16 3Q16 4Q16 Net gains on mortgage loan origination/sales activities Servicing income, net

Wells Fargo 4Q16 Supplement 18 Noninterest expense and efficiency ratio (1)  Noninterest expense down $53 million LQ - Personnel expense down $195 million • Salaries down $31 million on one less day in the quarter • Commission and incentive compensation down $42 million on lower revenue-based incentive compensation • Employee benefits expense down $122 million including a $92 million reduction in deferred compensation expense - Equipment expense up $151 million on higher software maintenance including annual software license renewals - Outside professional services (2) up $182 million reflecting higher project spending and legal expense - Other expense (2) down $228 million • Operating losses down $334 million on lower litigation accruals • Foreclosed assets expense up $92 million from a 3Q16 with elevated commercial foreclosed asset gains on sale • Advertising expense up $61 million on new media campaigns • All other down $116 million from 3Q16 which included a $107 million donation to the Wells Fargo Foundation  4Q16 efficiency ratio of 61.2% and full year 2016 efficiency ratio of 59.3%  Efficiency ratio expected to remain at an elevated level Efficiency Ratio (1) Efficiency ratio defined as noninterest expense divided by total revenue (net interest income plus noninterest income). Noninterest expense and our efficiency ratio may be affected by a variety of factors, including business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our business and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters. (2) The sum of Outside professional services expense and Other expense equals Other noninterest expense in the Consolidated Statement of Income, pages 18 and 19 of the press release. 12,599 13,028 12,866 13,268 13,215 4Q15 1Q16 2Q16 3Q16 4Q16 58.4% 58.7% 58.1% 59.4% 61.2% ($ in millions) 4Q16 vs 3Q16 vs 4Q15 Noninterest expense Salaries $ 4,193 (1) % 3 Commission and incentive compensation 2,478 (2) 1 Employee benefits 1,101 (10) 6 Equipment 642 31 - Net occupancy 710 (1) (2) Core deposit and other intangibles 301 1 (3) FDIC and other deposit assessments 353 14 37 Outside professional services (2) 984 23 19 Other (2) 2,453 (9) 8 Total noninterest expense $ 13,215 - % 5

Wells Fargo 4Q16 Supplement 19 Continued expense and efficiency focus We expect our efficiency initiatives will reduce expenses by ~$2 billion annually by year-end 2018 and that those savings will be reinvested in the business, all while continuing to have a strong efficiency ratio Savings allow for continued investment in top priorities such as customer and team member experience, innovation, risk management, and cybersecurity Business Rationalization  Selective divestitures of non-core sub-scale businesses - Sold Crop Insurance business (1Q16) and Health Benefits Services business (2Q16)  Realignment of businesses around customer needs for greater synergies and economics - Created the Payments, Virtual Solutions, and Innovation (PVSI) Group (4Q16) Centralization and Optimization  Marketing, Communications, Finance, Data and Analytics, Contact Centers, Operations, Technology centralization and optimization  Project Management process optimization Category Efficiency Opportunities Discretionary Spending  Continuous facilities optimization  Branch rationalization  Non-customer travel reduction  Consulting optimization  Supply Chain – 3rd party spend Stage of Completion

Wells Fargo 4Q16 Supplement 20 Branch rationalization strategy  Five external forces shape our physical distribution strategy - Customer behavior / digital adoption - Digital capabilities - Geographical differences, i.e., our strategy varies based on the nature and competitive dynamics of each individual market - Economic trends - Competitor distribution actions  Factors considered before closing a branch - Customer experience / retention / CRA impact - Profitability - Network benefit, i.e., how valuable is the branch to our customers  Near-term branch outlook - Based on observed trends and customer behavior, the pace of branch closures is expected to increase • 200 branches expected in 2017 and 200+ in 2018, up from 84 in 2016 • Continued opportunity for de novos in attractive markets

Wells Fargo 4Q16 Supplement 21 Community Banking  Net income of $2.7 billion, down 14% YoY and 15% LQ; included $592 million of net hedge ineffectiveness losses Retail Banking and Consumer Payments  Primary consumer checking customers (1)(2) up 3.5% YoY  Primary consumer checking customers (2) in December up 3.0% YoY  Debit card POS transactions (3) of 2.0 billion, flat LQ and up 7% YoY  Credit card purchase dollar volume of $20.2 billion, up 3% LQ on seasonality and up 7% YoY Consumer Lending  Consumer auto originations of $6.4 billion, down 21% LQ on seasonality and a continued focus on risk discipline, and down 15% YoY  Mortgage originations of $72 billion, up 3% LQ and up 53% YoY on strong refinance volume - 50% of originations were for purchases, compared with 58% in 3Q16 - 1.68% residential held for sale production margin (5) (1) Metrics reported on a one-month lag from reported quarter-end; for example 4Q16 data as of November 2016 compared with November 2015. (2) Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit. (3) Combined consumer and business debit card activity. (4) Household penetration as of November 2016 and defined as the percentage of Retail Banking households that have a credit card with Wells Fargo. Effective 2Q16, Retail Banking households reflect only those households that maintain a retail checking account, which we believe provides the foundation for long-term retail banking relationships. Prior period metrics have been revised to conform with the updated methodology. Credit card household penetration rates have not been adjusted to reflect the impact of the ~565,000 potentially unauthorized accounts identified by PwC because the maximum impact in any one quarter was not greater than 86 bps, or ~2%. (5) Production margin represents net gains on residential mortgage loan origination/sales activities divided by total residential held-for-sale mortgage originations. ($ in millions) 4Q16 vs 3Q16 vs 4Q15 Net interest income $ 7,556 2 % 2 Noninterest income 4,105 (17) (17) Provision for credit losses 631 (3) (10) Noninterest expense 6,985 - 1 Income tax expense 1,272 (18) (16) Segment net income $ 2,733 (15) % (14) ($ in billions) Avg loans, net $ 488.1 - 1 Avg deposits 709.8 - 7 ($ in billions) 4Q16 3Q16 4Q15 Retail Banking and Consumer Payments: Primary consumer checking customers (1)(2) 3.5 % 4.7 5.6 Debit card purchase volume (POS) (3) $ 78.4 76.0 73.0 Debit card POS transactions (millions) (3) 2,039 2,030 1,910 Credit card purchase volume (POS) $ 20.2 19.6 18.9 Credit card penetration (1)(4) 45.5 % 45.4 45.4 ($ in billions) 4Q16 vs 3Q16 vs 4Q15 Consumer Lending: Auto Originations $ 6.4 (21) % (15) Home Lending Applications $ 75 (25) % 17 Application pipeline 30 (40) 3 Originations 72 3 53 Residential HFS production margin (5) 1.68 % (13) bps (15)

Wells Fargo 4Q16 Supplement 22 Wholesale Banking  Net income of $2.2 billion, up 4% YoY and 7% LQ  Net interest income up 6% LQ - Average loans up 2% LQ - Average deposits up 4% LQ  Noninterest income down 8% LQ as lower trading and commercial mortgage banking fees were partially offset by higher investment banking and equity investment gains  Provision for credit losses up 7% LQ reflecting lower recoveries  Noninterest expense down 3% LQ driven by lower revenue-based incentive compensation and operating losses Treasury Management  Treasury management revenue up 4% YoY reflecting new product sales and repricing  Commercial card spend volume (1) of $6.9 billion, up 9% YoY and 2% LQ Investment Banking  U.S. investment banking market share of 4.5% (2) vs. 4.3% in FY 2015 (1) Includes commercial card volume for the entire company. (2) Full year 2016 share. Source: Dealogic U.S. investment banking fee market share. ($ in millions) 4Q16 vs 3Q16 vs 4Q15 Net interest income $ 4,323 6 % 16 Noninterest income 2,830 (8) (1) Provision for credit losses 168 7 33 Noninterest expense 4,002 (3) 15 Income tax expense 795 (4) (5) Segment net income $ 2,194 7 % 4 ($ in billions) Avg loans, net $ 461.5 2 11 Avg deposits 459.2 4 2 ($ in billions) 4Q16 vs 3Q16 vs 4Q15 Key Metrics: Commercial card spend volume (1) $ 6.9 2 % 9 U.S. investment banking market share (2) 4.5 %

Wells Fargo 4Q16 Supplement 23 Wealth and Investment Management  Net income of $653 million, up 10% YoY and down 4% LQ  Net interest income up 9% LQ, and up 14% YoY on strong loan and deposit growth  Noninterest income down 3% LQ driven by lower deferred compensation plan investment results (offset in employee benefits expense), lower transaction revenue and other fee income, partially offset by higher asset-based fees  Noninterest expense up 1% LQ largely driven by higher operating losses and other non-personnel expense, partially offset by lower deferred compensation plan expense (offset in trading- related revenue) Retail Brokerage  Advisory assets of $464 billion, up 1% LQ; up 10% YoY primarily driven by higher market valuations and positive net flows Wealth Management  Wealth Management client assets up 1% LQ and 3% YoY Wells Fargo Asset Management  Total AUM (2) down 3% LQ; down 2% YoY primarily due to equity and money market net outflows, partially offset by higher market valuations, fixed income inflows and assets acquired during the quarter Retirement  Institutional Retirement plan assets up 1% LQ and 5% YoY (1) WIM Client Assets reflect Brokerage & Wealth assets, including Wells Fargo Funds holdings and deposits. (2) Wells Fargo Asset Management Total AUM not held in Brokerage & Wealth client assets excluded from WIM Client Assets. ($ in millions) 4Q16 vs 3Q16 vs 4Q15 Net interest income $ 1,061 9 % 14 Noninterest income 3,013 (3) - Provision for credit losses 3 n.m. n.m. Noninterest expense 3,042 1 1 Income tax expense 380 (8) 4 Segment net income $ 653 (4) % 10 ($ in billions) Avg loans, net $ 70.0 2 11 Avg deposits 194.9 3 10 ($ in billions, except where noted) 4Q16 vs 3Q16 vs 4Q15 Key Metrics: WIM Client assets (1) ($ in trillions) $ 1.7 - % 7 Retail Brokerage Financial advisors 14,882 (1) (1) Advisory assets $ 464 1 10 Client assets ($ in trillions) 1.5 - 7 Wealth Management Client assets 231 1 3 Wells Fargo Asset Management Total AUM (2) 482 (3) (2) Wells Fargo Funds AUM 202 (11) (14) Retirement IRA assets 379 - 7 Institutional Retirement Plan assets 351 1 5

Wells Fargo 4Q16 Supplement 24 Credit quality Nonperforming Assets ($ in billions) Provision Expense and Net Charge-offs ($ in millions)  Net charge-offs of $905 million, up $100 million, or 12%, LQ  $100 million reserve release driven by continued improvement in residential real estate, as well as stabilization in oil and gas portfolio performance  0.37% net charge-off rate - Commercial losses of 20 bps, up 3 bps LQ on lower recoveries - Consumer losses of 56 bps, up 5 bps LQ on higher credit card, auto and other revolving credit and installment  NPAs decreased $644 million LQ - Nonaccrual loans decreased $602 million on a $399 million decline in consumer nonaccruals and a $203 million decline in commercial nonaccruals - Foreclosed assets declined $42 million  Allowance for credit losses = $12.5 billion - Allowance covered 3.5x annualized 4Q16 net charge-offs 11.4 12.2 12.0 11.0 10.4 1.4 1.3 1.1 1.0 1.0 12.8 13.5 13.1 12.0 11.4 4Q15 1Q16 2Q16 3Q16 4Q16 Nonaccrual loans Foreclosed assets 831 1,086 1,074 805 805831 886 924 805 905 0.36% 0.38% 0.39% 0.33% 0.37% 4Q15 1Q16 2Q16 3Q16 4Q16 Provision Expense Net Charge-offs Net Charge-off Rate

Wells Fargo 4Q16 Supplement 25 17.4 16.0 14.8 42.0 38.3 37.8 4Q15 3Q16 4Q16 Outstandings Exposure Oil and gas loan portfolio Loans Outstanding and Exposure (1) ($ in billions) (1) Exposure = Loans outstanding + unfunded commitments. (1) Credit performance overview  $177 million of net charge-offs in 4Q16, up $9 million LQ - All losses were from the exploration & production (E&P) and services sectors  Nonaccrual loans of $2.4 billion, down $84 million LQ - ~90% of nonaccruals current on interest and principal - 96% of nonaccruals from the E&P and services sectors - Substantially all nonaccruals are senior secured  Criticized loans of $6.6 billion, down $776 million, or 11%, LQ, reflecting payoffs and reductions as well as facility upgrades and net charge-offs Allowance overview  $1.3 billion of allowance for credit losses allocated for oil and gas portfolio - 8.5% of total oil and gas loans outstanding - LQ decline reflects an improvement in portfolio metrics  Oil and gas outstandings down 8% LQ and 15% YoY, and exposure (1) down 1% LQ and 10% YoY reflecting pay-offs, exits and net charge-offs, as well as borrowing base reductions

Wells Fargo 4Q16 Supplement 26 10.8% 10.6% 10.6% 10.7% 10.7% 4Q15 1Q16 2Q16 3Q16 4Q16 Estimated  Common Equity Tier 1 ratio well above the regulatory minimum, including regulatory buffers, as well as our internal buffer - Common Equity Tier 1 ratio (fully phased- in) of 10.7% at 12/31/16 (1)  Period-end common shares outstanding down 7.8 million LQ - Repurchased 24.9 million common shares - Issued 17.1 million common shares  Entered into a $750 million forward repurchase transaction which settled on January 12, 2017 for 14.7 million shares  Our strong capital levels allowed us to continue to return capital to shareholders - Returned $3.0 billion to shareholders in 4Q16 - Net payout ratio (2) of 62% in 4Q16  As of 12/31/2016, we estimate that our eligible external TLAC as a percentage of total risk- weighted assets was 20.7% compared with an expected 1/1/2019 required minimum of 22.0% - Equates to a shortfall of approximately $18.1 billion - We expect to meet the required minimum by 1/1/19 through measured issuance Capital (1) 4Q16 capital ratio is a preliminary estimate. Fully phased-in capital ratios are calculated assuming the full phase-in of the Basel III capital rules. See page 33 for additional information regarding capital ratios. (2) Net payout ratio means the ratio of (i) common stock dividends and share repurchases less issuances and stock compensation-related items, divided by (ii) net income applicable to common stock. Capital Return Capital Position Common Equity Tier 1 Ratio (Fully Phased-In) (1) Total Loss Absorbing Capacity (TLAC) Update

Wells Fargo 4Q16 Supplement 27 Summary  Net income of $21.9 billion, diluted EPS of $3.99  Revenue of $88.3 billion, up 3% from 2015  ROA = 1.16%, ROE = 11.49%  Returned $12.5 billion to shareholders through common stock dividends and net share repurchases  Strong earnings of $5.3 billion - Diluted EPS of $0.96 included net hedge ineffectiveness accounting impact of $(0.07)  Solid returns - ROA = 1.08% - ROE = 10.94% • ROTCE (1) = 13.16%  Strong loan and deposit growth - Average loans up $51.9 billion, or 6%, YoY - Average deposits up $67.3 billion, or 6%, YoY  Diversified and high quality loan portfolio - Solid credit quality with net charge-offs of 0.37% of average loans (annualized) - Maintained our risk and pricing discipline  Strong capital levels while returning $3.0 billion to shareholders through common stock dividends and net share repurchases (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, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company's use of equity. See page 34 for additional information. 4Q16 2016

Appendix

Wells Fargo 4Q16 Supplement 29 Real estate 1-4 family mortgage portfolio (1) Nonconforming mortgages originated post February 2009. (2) The current loan-to-value (LTV) ratio is calculated as the net carrying value divided by the collateral value.  First lien mortgage loans down $3.1 billion LQ as an increase in nonconforming mortgage loans was more than offset by the $3.8 billion deconsolidation of certain previously sold reverse mortgage loans following the sale of the related servicing - Nonconforming mortgage loans increased $5.8 billion to $165.7 billion (1) - First lien home equity lines of $15.2 billion, down $249 million  First lien credit performance - Nonaccrual loans down $348 million, or 11 bps, LQ - Net charge-offs down $23 million LQ to a $3 million recovery for the quarter  Pick-a-Pay non-PCI portfolio - Loans of $16.4 billion down 5% LQ primarily reflecting loans paid-in-full - Nonaccrual loans decreased $159 million, or 9%, LQ - Net recovery of $8 million, up $2 million LQ - Current average LTV of 53% (2)  Junior lien mortgage loans down $1.9 billion, or 4%, LQ as paydowns more than offset new originations  Junior lien nonaccrual loans down $53 million, or 4%, LQ  Junior lien net charge-offs down $5 million, or 2 bps, LQ ($ in millions) 4Q16 3Q16 Real estate 1-4 family first mortgage loans: $ 275,579 278,689 Nonaccrual loans 4,962 5,310 as % of loans 1.80 % 1.91 Net charge-offs $ (3) 20 as % of average loans - % 0.03 Real estate 1-4 family junior lien mortgage loans: $ 46,237 48,105 Nonaccrual loans 1,206 1,259 as % of loans 2.61 % 2.62 Net charge-offs $ 44 49 as % of average loans 0.38 % 0.40

Wells Fargo 4Q16 Supplement 30 Consumer credit card portfolio  Credit card outstandings up 5% LQ from seasonal holiday spend and up 8% YoY reflecting active account growth - Credit card household penetration (3) (4) of 45.5%, up 15 bps LQ and up 10 bps YoY - Purchase dollar volume up 3% LQ driven by holiday spend volume and up 7% YoY - New accounts (1) down 52% LQ and 47% YoY reflecting reduced marketing activities and customer reaction to the sales practices settlement  Net charge-offs up $30 million, or 27 bps, LQ on seasonality and loan growth, and up $32 million YoY on loan growth  POS active accounts (2) flat LQ and up 6% YoY (1) Includes consumer credit card as well as certain co-brand and private label relationship new account openings. (2) Accounts having at least one POS transaction, including POS reversal, during the month. (3) Household penetration as of November 2016 and defined as the percentage of Retail Banking households that have a credit card with Wells Fargo. Effective 2Q16, Retail Banking households reflect only those households that maintain a retail checking account, which we believe provides the foundation for long-term retail banking relationships. Prior period metrics have been revised to conform with the updated methodology. (4) Credit card household penetration rates have not been adjusted to reflect the impact of the ~565,000 potentially unauthorized accounts identified by PwC because the maximum impact in any one quarter was not greater than 86 bps, or ~2%. ($ in millions) 4Q16 3Q16 Credit card outstandings $ 36,700 34,992 Net charge-offs 275 245 as % of avg loans 3.09 % 2.82 Key Metrics: Purchase volume $ 20,177 19,638 POS transactions (millions) 302 296 New accounts (1) (thousands) 319 667 POS active accounts (thousands) (2) 8,814 8,818 Penetration (3)(4) 45.5 % 45.4

Wells Fargo 4Q16 Supplement 31 Auto portfolios Consumer Portfolio  Auto outstandings of $62.3 billion down 1% LQ and up 4% YoY - 4Q16 originations of $6.4 billion down 21% LQ on seasonality and a continued focus on risk discipline, and down 15% YoY  Nonaccrual loans declined $2 million LQ and $15 million YoY  Net charge-offs up $29 million LQ and up $31 million YoY predominantly reflecting loan growth and higher severity  30+ days past due increased $330 million LQ driven by typically low 3Q levels and increased $244 million YoY on loan growth and mix Commercial Portfolio  Loans of $11.3 billion up 7% LQ and up 10% YoY on higher dealer floor plan utilization ($ in millions) 4Q16 3Q16 Auto outstandings $ 59,856 60,206 Nonaccrual loans 103 106 as % of loans 0.17 % 0.18 Net charge-offs $ 161 133 as % of avg loans 1.07 % 0.89 30+ days past due $ 1,659 1,332 as % of loans 2.77 % 2.21 Auto outstandings $ 2,430 2,667 Nonaccrual loans 3 2 as % of loans 0.12 % 0.07 Net charge-offs $ 5 4 as % of avg loans 0.76 % 0.60 30+ days past due $ 17 14 as % of loans 0.70 % 0.52 Commercial: Auto outstandings $ 11,279 10,580 Nonaccrual loans - 16 as % of loans - % 0.15 Net charge-offs $ 4 - as % of avg loans 0.16 % n.m. Indirect Consumer: Direct Consumer:

Wells Fargo 4Q16 Supplement 32 Student lending portfolio  $12.4 billion private loan outstandings down 1% LQ and up 1% YoY - Average FICO of 758 and 81% of the total outstandings have been co-signed - Originations down 6% YoY driven by lower retail bank channel originations  Net charge-offs increased $14 million LQ due to seasonality of repayments and increased $1 million YoY  30+ days past due increased $10 million LQ and decreased $11 million YoY ($ in millions) 4Q16 3Q16 Private outstandings $ 12,398 12,517 Net charge-offs 45 31 as % of avg loans 1.44 % 1.01 30+ days past due $ 229 219 as % of loans 1.84 % 1.75

Wells Fargo 4Q16 Supplement 33 Common Equity Tier 1 (Fully Phased-In) Wells Fargo & Company and Subsidiaries COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1) Estimated (in billions, except ratio) Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Total equity $ 200.5 204.0 202.7 198.5 193.9 Adjustments: Preferred stock (24.6 ) (24.6 ) (24.8 ) (24.1 ) (22.2 ) Additional paid-in capital on ESOP preferred stock (0.1 ) (0.1 ) (0.2 ) (0.2 ) (0.1 ) Unearned ESOP shares 1.6 1.6 1.9 2.3 1.3 Noncontrolling interests (0.9 ) (1.0 ) (1.0 ) (1.0 ) (0.9 ) Total common stockholders' equity 176.5 179.9 178.6 175.5 172.0 Adjustments: Goodwill (26.7 ) (26.7 ) (27.0 ) (27.0 ) (25.5 ) Certain identifiable intangible assets (other than MSRs) (2.7 ) (3.0 ) (3.4 ) (3.8 ) (3.2 ) Other assets (2) (2.1 ) (2.2 ) (2.0 ) (2.1 ) (2.1 ) Applicable deferred taxes (3) 1.8 1.8 1.9 2.0 2.1 Investment in certain subsidiaries and other (0.4 ) (2.0 ) (2.5 ) (1.9 ) (0.9 ) Common Equity Tier 1 (Fully Phased-In) under Basel III (A) 146.4 147.8 145.6 142.7 142.4 Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5) (B) $ 1,369.8 1,380.0 1,372.9 1,345.1 1,321.7 Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5) (A)/(B) 10.7 % 10.7 10.6 10.6 10.8 (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) Represents goodwill and other intangibles on nonmarketable equity investments, which are included in other assets. (3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end. (4) The final Basel III capital rules provide for two capital frameworks: the Standardized Approach, which replaced Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we are subject to the lower of our CET1 ratio calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. Because the final determination of our CET1 ratio and which approach will produce the lower CET1 ratio as of December 31, 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 September 30, June 30 and March 31, 2016, and December 31, 2015, was calculated under the Basel III Standardized Approach RWAs. (5) The Company’s December 31, 2016, RWAs and capital ratio are preliminary estimates.

Wells Fargo 4Q16 Supplement 34 Return on average tangible common equity (ROTCE) Wells Fargo & Company and Subsidiaries TANGIBLE COMMON EQUITY (1) (in millions, except ratios) Quarter ended Dec 31, 2016 Return on average tangible common equity (1): Net income applicable to common stock (A) $ 4,872 Average total equity 201,247 Adjustments: Preferred stock (24,579 ) Additional paid-in capital on ESOP preferred stock (128 ) Unearned ESOP shares 1,596 Noncontrolling interests (928 ) Average common stockholders’ equity (B) 177,208 Adjustments: Goodwill (26,713 ) Certain identifiable intangible assets (other than MSRs) (2,871 ) Other assets (2) (2,175 ) Applicable deferred taxes (3) 1,785 Average tangible common equity (C) $ 147,234 Return on average common stockholders' equity (ROE) (A)/(B) 10.94 % Return on average tangible common equity (ROTCE) (A)/(C) 13.16 (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, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company's use of equity. (2) Represents goodwill and other intangibles on nonmarketable equity investments, which are included in other assets. (3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.

Wells Fargo 4Q16 Supplement 35 Forward-looking statements and additional information 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. Investors are urged to not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. For more information about factors that could cause actual results to differ materially from expectations, refer to the “Forward-Looking Statements” discussion in Wells Fargo’s press release announcing our fourth quarter 2016 results and in our most recent Quarterly Report on Form 10-Q, as well as to Wells Fargo’s other 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 and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2016. Purchased credit-impaired loan portfolios: Loans acquired that were considered credit impaired at acquisition were written down at that date in purchase accounting to an amount estimated to be collectible and the related allowance for loan losses was not carried over to Wells Fargo’s allowance. In addition, such purchased credit-impaired loans are not classified as nonaccrual or nonperforming, and are not included in loans that were contractually 90+ days past due and still accruing. Any losses on such loans are charged against the nonaccretable difference established in purchase accounting and are not reported as charge-offs (until such difference is fully utilized). As a result of accounting for purchased loans with evidence of credit deterioration, certain ratios of Wells Fargo are not comparable to a portfolio that does not include purchased credit- impaired loans. In certain cases, the purchased credit-impaired loans may affect portfolio credit ratios and trends. Management believes that the presentation of information adjusted to exclude the purchased credit-impaired loans provides useful disclosure regarding the credit quality of the non-impaired loan portfolio. Accordingly, certain of the loan balances and credit ratios in this document have been adjusted to exclude the purchased credit-impaired loans. References in this document to impaired loans mean the purchased credit-impaired loans. Please see page 31 of the press release announcing our 4Q16 results for additional information regarding the purchased credit-impaired loans.