Regulatory Capital Requirements and Other Restrictions

3 Months Ended

Mar. 31, 2024

Regulatory Capital Requirements and Other Restrictions [Abstract]

Regulatory Capital Requirements and Other Restrictions

Note 22:  Regulatory Capital Requirements and Other Restrictions

Regulatory Capital Requirements

The Company and each of its subsidiary banks are subject to regulatory capital adequacy requirements promulgated by federal banking regulators. The FRB establishes capital requirements for the consolidated financial holding company, and the Office of the Comptroller of the Currency (OCC) has similar requirements for the Company’s national banks, including Wells Fargo Bank, N.A. (the Bank).

Table 22.1 presents regulatory capital information for the Company and the Bank in accordance with Basel III capital requirements. We must calculate our risk-based capital ratios

under both the Standardized and Advanced Approaches. 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.

At March 31, 2024, the Bank and our other insured depository institutions were considered well-capitalized under the requirements of the Federal Deposit Insurance Act.

Table 22.1: Regulatory Capital Information

	Wells Fargo & Company								Wells Fargo Bank, N.A.
	Standardized Approach						Advanced Approach		Standardized Approach			Advanced Approach
(in millions, except ratios)	March 31, 2024				December 31, 2023		March 31, 2024	December 31, 2023	March 31, 2024		December 31, 2023	March 31, 2024	December 31, 2023
Regulatory capital:
Common Equity Tier 1	$	136,717			140,783		136,717	140,783	142,959		142,108	142,959	142,108
Tier 1	154,915				159,823		154,915	159,823	142,959		142,108	142,959	142,108
Total	188,100				193,061		177,843	182,726	166,353		165,634	156,393	155,560
Assets:
Risk-weighted assets	1,221,647				1,231,668		1,099,557	1,114,281	1,128,621		1,137,605	944,342	956,545
Adjusted average assets (1)	1,889,773				1,880,981		1,889,773	1,880,981	1,688,899		1,682,199	1,688,899	1,682,199
Regulatory capital ratios:
Common Equity Tier 1 capital	11.19		%	*	11.43		12.43	12.63	12.67	*	12.49	15.14	14.86
Tier 1 capital	12.68			*	12.98		14.09	14.34	12.67	*	12.49	15.14	14.86
Total capital	15.40			*	15.67		16.17	16.40	14.74	*	14.56	16.56	16.26
Required minimum capital ratios:
Common Equity Tier 1 capital	8.90				8.90		8.50	8.50	7.00		7.00	7.00	7.00
Tier 1 capital	10.40				10.40		10.00	10.00	8.50		8.50	8.50	8.50
Total capital	12.40				12.40		12.00	12.00	10.50		10.50	10.50	10.50
	Wells Fargo & Company								Wells Fargo Bank, N.A.
	March 31, 2024						December 31, 2023		March 31, 2024			December 31, 2023
Regulatory leverage:
Total leverage exposure (1)	$	2,262,154					2,253,933		2,050,910			2,048,633
Supplementary leverage ratio (1)	6.85					%	7.09		6.97			6.94
Tier 1 leverage ratio (2)	8.20						8.50		8.46			8.45
Required minimum leverage:
Supplementary leverage ratio	5.00						5.00		6.00			6.00
Tier 1 leverage ratio	4.00						4.00		4.00			4.00

*Denotes the binding ratio under the Standardized and Advanced Approaches at March 31, 2024.

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

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

At March 31, 2024, the Common Equity Tier 1 (CET1), Tier 1 and total capital ratio requirements for the Company included a global systemically important bank (G-SIB) surcharge of 1.50%. The G-SIB surcharge is not applicable to the Bank. In addition, the CET1, Tier 1 and total capital ratio requirements for the Company included a stress capital buffer of 2.90% under the Standardized Approach and a capital conservation buffer of 2.50% under the Advanced Approach. The capital ratio requirements for the Bank included a capital conservation buffer of 2.50% under both the Standardized and Advanced Approaches. The Company is required to maintain these risk-based capital ratios and to maintain a supplementary leverage ratio (SLR) of at least 5.00% (composed of a 3.00% minimum requirement plus a supplementary leverage buffer of 2.00%) to

avoid restrictions on capital distributions and discretionary bonus payments. The Bank is required to maintain an SLR of at least 6.00% to be considered well-capitalized under applicable regulatory capital adequacy rules.

Capital Planning Requirements

The FRB’s capital plan rule establishes capital planning and other requirements that govern capital distributions, including dividends and share repurchases, by certain large bank holding companies (BHCs), including Wells Fargo. The FRB conducts an annual Comprehensive Capital Analysis and Review exercise and has also published guidance regarding its supervisory expectations for capital planning, including capital policies

regarding the process relating to common stock dividend and repurchase decisions in the FRB’s SR Letter 15-18. The Parent’s ability to make certain capital distributions is subject to the requirements of the capital plan rule and is also subject to the Parent meeting or exceeding certain regulatory capital minimums.

Loan and Dividend Restrictions

Federal law restricts the amount and the terms of both credit and non-credit transactions between a bank and its nonbank affiliates. Additionally, federal laws and regulations limit, and regulators can impose additional limitations on, the dividends that a national bank may pay.

Our nonbank subsidiaries are also limited by certain federal and state statutory provisions and regulations covering the amount of dividends that may be paid in any given year. In addition, we have entered into a Support Agreement dated June 28, 2017, as amended and restated on June 26, 2019, among Wells Fargo & Company, the parent holding company (Parent), WFC Holdings, LLC, an intermediate holding company and subsidiary of the Parent (IHC), the Bank, Wells Fargo Securities, LLC, Wells Fargo Clearing Services, LLC, and certain other subsidiaries of the Parent designated from time to time as material entities for resolution planning purposes or identified from time to time as related support entities in our resolution plan, pursuant to which the IHC may be restricted from making dividend payments to the Parent if certain liquidity and/or capital metrics fall below defined triggers or if the Parent’s board of directors authorizes it to file a case under the U.S. Bankruptcy Code.

For additional information on loan and dividend restrictions, see Note 26 (Regulatory Capital Requirements and Other Restrictions) in our 2023 Form 10-K.

Cash Restrictions

Cash and cash equivalents may be restricted as to usage or withdrawal. Table 22.2 provides a summary of restrictions on cash and cash equivalents.

Table 22.2: Nature of Restrictions on Cash and Cash Equivalents

(in millions)	Mar 31, 2024		Dec 31, 2023
Reserve balance for non-U.S. central banks	$	176	230
Segregated for benefit of brokerage customers under federal and other brokerage regulations	985		986