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Operating Segments
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Operating Segments
Note 27:  Operating Segments
As of December 31, 2019, we had three reportable operating segments: Community Banking; Wholesale Banking; and Wealth and Investment Management (WIM). We define our operating segments by product type and customer segment and their results are based on our management reporting process. The management reporting process is based on U.S. GAAP with specific adjustments, such as for funds transfer pricing for asset/liability management, for shared revenues and expenses, and tax-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources. The management reporting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with similar information for other financial services companies. On February 11, 2020, we announced a new organizational structure with five principal lines of business: Consumer and Small Business Banking; Consumer Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The Company is currently in the process of transitioning to this new organizational structure, including identifying leadership for some of these principal business lines and aligning management reporting and allocation methodologies. These changes will not impact the consolidated financial results of the Company, but are expected to result in changes to our operating segments. We will update our operating segment disclosures, including comparative financial results, when the Company completes its transition and is managed in accordance with the new organizational structure.

Community Banking offers a complete line of diversified financial products and services for consumers and small businesses with annual sales generally up to $5 million in which the owner generally is the financial decision maker. These financial products and services include checking and savings accounts, credit and debit cards, and automobile, student, mortgage, home equity and small business lending, as well as referrals to Wholesale Banking and WIM business partners.
Community Banking serves customers through a complete range of channels, including traditional and in-supermarket and other small format branches, ATMs, digital (online, mobile, and social), and contact centers (phone, email and correspondence).
The Community Banking segment also includes the results of our Corporate Treasury activities net of allocations (including funds transfer pricing, capital, liquidity and certain corporate expenses) in support of other segments and results of investments in our affiliated venture capital and private equity partnerships.
 
Wholesale Banking provides financial solutions to businesses with annual sales generally in excess of $5 million and to financial institutions globally. Wholesale Banking provides a complete line of commercial, corporate, capital markets, cash management and real estate banking products and services. These include traditional commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange services, treasury management, institutional fixed-income sales, interest rate, commodity and equity risk management, online/electronic products such as the Commercial Electronic Office® (CEO®) portal, corporate trust fiduciary and agency services, and investment banking services. Wholesale Banking also supports the CRE market with products and services such as construction loans for commercial and residential development, land acquisition and development loans, secured and unsecured lines of credit, interim financing arrangements for completed structures, rehabilitation loans, affordable housing loans and letters of credit, permanent loans for securitization, and CRE loan servicing.
 
Wealth and Investment Management 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, 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 clients’ brokerage needs and provide investment management capabilities delivered to global institutional clients through separate accounts and the Wells Fargo Funds.
 
Other 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.

Table 27.1 presents our results by operating segment.
Table 27.1: Operating Segments
(income/expense in millions, average balances in billions)
Community 
 Banking 

 
Wholesale 
 Banking 

 
Wealth and Investment Management

 
Other (1) 

 
Consolidated
 Company 

2019
 
 
 
 
 
 
 
 
 
Net interest income (2) 
$
27,610

 
17,699

 
4,037

 
(2,115
)
 
47,231

Provision (reversal of provision) for credit losses
2,319

 
378

 
5

 
(15
)
 
2,687

Noninterest income
17,706

 
9,978

 
13,304

 
(3,156
)
 
37,832

Noninterest expense
32,696

 
15,352

 
13,709

 
(3,579
)
 
58,178

Income (loss) before income tax expense (benefit)
10,301

 
11,947


3,627


(1,677
)

24,198

Income tax expense (benefit) (3)
2,426

 
1,246

 
904

 
(419
)
 
4,157

Net income (loss) before noncontrolling interests
7,875

 
10,701

 
2,723

 
(1,258
)
 
20,041

Less: Net income (loss) from noncontrolling interests
477

 
5

 
10

 
—

 
492

Net income (loss)
$
7,398

 
10,696

 
2,713

 
(1,258
)
 
19,549

2018
 
 
 
 
 
 
 
 
 
Net interest income (2)
$
29,219

 
18,690

 
4,441

 
(2,355
)
 
49,995

Provision (reversal of provision) for credit losses
1,783

 
(58
)
 
(5
)
 
24

 
1,744

Noninterest income
17,694

 
10,016

 
11,935

 
(3,232
)
 
36,413

Noninterest expense
30,491

 
16,157

 
12,938

 
(3,460
)
 
56,126

Income (loss) before income tax expense (benefit)
14,639

 
12,607

 
3,443

 
(2,151
)
 
28,538

Income tax expense (benefit) (3)
3,784

 
1,555

 
861

 
(538
)
 
5,662

Net income (loss) before noncontrolling interests
10,855

 
11,052

 
2,582

 
(1,613
)
 
22,876

Less: Net income (loss) from noncontrolling interests
461

 
20

 
2

 
—

 
483

Net income (loss)
$
10,394

 
11,032

 
2,580

 
(1,613
)
 
22,393

2017
 
 
 
 
 
 
 
 
 
Net interest income (2)
$
28,658

 
18,810

 
4,641

 
(2,552
)
 
49,557

Provision (reversal of provision) for credit losses
2,555

 
(19
)
 
(5
)
 
(3
)
 
2,528

Noninterest income
18,360

 
11,190

 
12,431

 
(3,149
)
 
38,832

Noninterest expense
32,615

 
16,624

 
12,623

 
(3,378
)
 
58,484

Income (loss) before income tax expense (benefit)
11,848

 
13,395

 
4,454

 
(2,320
)
 
27,377

Income tax expense (benefit) (3)
634

 
3,496

 
1,668

 
(881
)
 
4,917

Net income (loss) before noncontrolling interests
11,214

 
9,899

 
2,786

 
(1,439
)
 
22,460

Less: Net income (loss) from noncontrolling interests
276

 
(15
)
 
16

 
—

 
277

Net income (loss)
$
10,938

 
9,914

 
2,770

 
(1,439
)
 
22,183

2019
 
 
 
 
 
 
 
 
 
Average loans
$
459.4

 
475.3

 
75.6

 
(59.3
)
 
951.0

Average assets
1,028.4

 
861.0

 
84.3

 
(60.3
)
 
1,913.4

Average deposits
782.0

 
422.5

 
146.0

 
(64.2
)
 
1,286.3

2018
 
 
 
 
 
 
 
 
 
Average loans
463.7

 
465.7

 
74.6

 
(58.8
)
 
945.2

Average assets
1,034.1

 
830.5

 
83.9

 
(59.6
)
 
1,888.9

Average deposits
757.2

 
423.7

 
165.0

 
(70.0
)
 
1,275.9

(1)
Includes the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for WIM customers served through Community Banking distribution channels. 
(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 as well as interest credits for any funding of a segment available to be provided to other segments. The cost of liabilities includes actual interest expense on segment liabilities as well as funding charges for any funding provided from other segments.
(3)
Income tax expense (benefit) for our Wholesale Banking operating segment included income tax credits related to low-income housing and renewable energy investments of $1.8 billion, $1.6 billion and $1.4 billion for the years ended December 31, 2019, 2018 and 2017 respectively.