Regulatory and Agency Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2020

Table 23.1 presents regulatory capital information for Wells Fargo & Company and the Bank in accordance with Basel III capital requirements. We must report the lower of our Common Equity Tier 1 (CET1), tier 1 and total capital ratios calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. The Standardized Approach applies assigned risk weights to broad risk categories, while the calculation of risk-weighted assets (RWAs) under the Advanced Approach differs by requiring applicable banks to utilize a risk-sensitive methodology, which relies upon the use of internal credit models, and includes an operational risk component. The

Basel III capital requirements for calculating CET1 and tier 1 capital, along with RWAs, are fully phased-in. However, the requirements for determining tier 2 and total capital are still in accordance with Transition Requirements and are scheduled to be fully phased-in by the end of 2021. Accordingly, the information presented below reflects fully phased-in CET1 capital, tier 1 capital, and RWAs, but reflects total capital still in accordance with Transition Requirements.

At March 31, 2020, the Bank and our other insured depository institutions were considered well-capitalized under the requirements of the Federal Deposit Insurance Act.

The Bank is an approved seller/servicer of mortgage loans and is required to maintain minimum levels of shareholders’ equity, as specified by various agencies, including the United States Department of Housing and Urban Development, GNMA, FHLMC and FNMA. At March 31, 2020, the Bank met these requirements.

Table 23.1: Regulatory Capital Information



	Wells Fargo & Company									Wells Fargo Bank, N.A.
	March 31, 2020						December 31, 2019			March 31, 2020			December 31, 2019
(in millions, except ratios)	Advanced Approach			Standardized Approach			Advanced Approach	Standardized Approach		Advanced Approach	Standardized Approach		Advanced Approach	Standardized Approach
Regulatory capital:
Common equity tier 1	$	134,751		134,751			138,760	138,760		147,537	147,537		145,149	145,149
Tier 1	154,277			154,277			158,949	158,949		147,537	147,537		145,149	145,149
Total	184,068			192,121			188,333	196,223		162,300	169,846		158,615	166,056
Assets:
Risk-weighted assets (1)	$	1,181,271		1,262,808			1,165,079	1,245,853		1,061,736	1,171,371		1,047,054	1,152,791
Adjusted average assets (2)	1,922,129			1,922,129			1,913,297	1,913,297		1,711,367	1,711,367		1,695,807	1,695,807
Regulatory capital ratios:
Common equity tier 1 capital (1)	11.41		%	10.67		*	11.91	11.14	*	13.90	12.60	*	13.86	12.59	*
Tier 1 capital (1)	13.06			12.22		*	13.64	12.76	*	13.90	12.60	*	13.86	12.59	*
Total capital (1)	15.58			15.21		*	16.16	15.75	*	15.29	14.50	*	15.15	14.40	*
Tier 1 leverage (2)	8.03			8.03			8.31	8.31		8.62	8.62		8.56	8.56
	Wells Fargo & Company									Wells Fargo Bank, N.A.
	March 31, 2020						December 31, 2019			March 31, 2020			December 31, 2019
Supplementary leverage (3):
Total leverage exposure	$	2,256,314					2,247,729			2,017,471			2,006,180
Supplementary leverage ratio	6.84				%		7.07			7.31			7.24

*Denotes the lowest capital ratio as determined under the Advanced and Standardized Approaches.


(1)	RWAs and capital ratios for December 31, 2019, have been revised as a result of a decrease in RWAs under the Advanced Approach due to the correction of duplicated operational loss amounts.


(2)	The leverage ratio consists of Tier 1 capital divided by total average assets, excluding goodwill and certain other items.

(3)

The supplementary leverage ratio (SLR) consists of Tier 1 capital divided by total leverage exposure. Total leverage exposure consists of total average assets, less goodwill and other permitted Tier 1 capital deductions (net of deferred tax liabilities), plus certain off-balance sheet exposures.

Minimum Required Regulatory Capital Ratios - Transition Requirements

Table 23.2 presents the minimum required regulatory capital ratios under Transition Requirements to which the Company and

the Bank were subject as of March 31, 2020, and

December 31, 2019.

Table 23.2: Minimum Required Regulatory Capital Ratios – Transition Requirements (1)



	Wells Fargo & Company			Wells Fargo Bank, N.A.
	March 31, 2020		December 31, 2019	March 31, 2020	December 31, 2019
Regulatory capital ratios:
Common equity tier 1 capital	9.000	%	9.000	7.000	7.000
Tier 1 capital	10.500		10.500	8.500	8.500
Total capital	12.500		12.500	10.500	10.500
Tier 1 leverage	4.000		4.000	4.000	4.000
Supplementary leverage (2)	5.000		5.000	6.000	6.000

(1)

At March 31, 2020, under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements for Wells Fargo & Company include a capital conservation buffer of 2.500% and a global systemically important bank (G-SIB) surcharge of 2.000%. Only the 2.500% capital conservation buffer applies to the Bank at March 31, 2020. Effective October 1, 2020, the 2.500% capital conservation buffer will be replaced under the Standardized Approach by a stress capital buffer that will be calculated annually as part of the Comprehensive Capital Analysis and Review (CCAR).

(2)

Wells Fargo & Company is required to maintain a SLR of at least 5.000% (comprised of a 3.000% minimum requirement plus a supplementary leverage buffer of 2.000%) to avoid restrictions on capital distributions and discretionary bonus payments. The Bank is required to maintain a SLR of at least 6.000% to be considered well-capitalized under applicable regulatory capital adequacy guidelines.