Wells Fargo Reports $5.7 Billion in Net Income

Wells Fargo & Company (NYSE:WFC):

• Continued strong financial results:
  • Net income of $5.7 billion, up 3 percent from third quarter 2013
  • Diluted earnings per share (EPS) of $1.02, up 3 percent
  • Revenue of $21.2 billion, up 4 percent
  • Pre-tax pre-provision profit1 of $9.0 billion, up 7 percent
  • Efficiency ratio of 57.7 percent, improved by 140 basis points
  • Return on assets (ROA) of 1.40 percent and return on equity (ROE) of 13.10 percent
• Strong loan and deposit growth:
  • Total average loans of $833.2 billion, up $31.1 billion, or 4 percent, from third quarter 2013
    • Quarter-end loans of $838.9 billion, up $29.7 billion, or 4 percent
    • Quarter-end core loans of $775.8 billion, up $50.8 billion, or 7 percent2
  • Total average deposits of $1.1 trillion, up $101.5 billion, or 10 percent
• Continued improvement in credit quality:
  • Net charge-offs of $668 million, down $307 million from third quarter 2013
    • Net charge-off rate of 0.32 percent (annualized), down from 0.48 percent
  • Nonperforming assets down $3.0 billion, or 15 percent
  • $300 million reserve release3 due to improvement in credit quality
• Maintained strong capital levels4 and continued share repurchases:
  • Common Equity Tier 1 ratio under Basel III (General Approach) of 11.16 percent at September 30, 2014
  • Common Equity Tier 1 ratio under Basel III (Advanced Approach, fully phased-in) of 10.46 percent
  • Period-end common shares outstanding down 34.9 million in third quarter on 48.7 million of purchases
    • Entered into a forward repurchase transaction for an additional estimated 19.8 million shares expected to settle in fourth quarter 2014

Wells Fargo & Company (NYSE:WFC) reported net income of $5.7 billion, or $1.02 per diluted common share, for third quarter 2014, up from $5.6 billion, or $0.99 per share, for third quarter 2013. For the first nine months of 2014, net income was $17.3 billion, or $3.08 per share, up from $16.3 billion, or $2.89 per share, for the same period in 2013.

“The Company’s third quarter results demonstrated strength in the fundamental drivers of our long-term growth,” said Chairman and CEO John Stumpf. “Loan and deposit growth was strong and diversified across both commercial and consumer businesses. Capital levels increased even as we returned more capital to shareholders through higher dividends and share repurchases from a year ago. We continue to see signs of a steadily improving economy, and I remain optimistic about the opportunities ahead for Wells Fargo. Our team remains committed to meeting the financial needs of our customers, and this focus will continue to drive our performance over the long term.”

Chief Financial Officer John Shrewsberry said, “This was a strong quarter for Wells Fargo and again demonstrated the benefits of our diversified business model. Despite the low interest rate environment, revenue and pre-tax pre-provision profit increased linked quarter, and we continued to operate within our target ranges for ROA, ROE, efficiency ratio, and capital return to shareholders. We also remain well positioned to benefit from higher rates in the future, and our balance sheet has never been stronger, with higher levels of capital and liquidity, and improved asset quality.”

Revenue

Revenue was $21.2 billion, up from $21.1 billion in second quarter 2014, reflecting an increase of $150 million in net interest income and stable noninterest income. Revenue sources remained balanced between spread and fee income and the sources of fee income were diversified among our consumer, commercial and brokerage businesses.

Net Interest Income

Net interest income in third quarter 2014 increased $150 million on a linked-quarter basis to $10.9 billion. The increase in net interest income resulted from balance sheet growth driven by commercial and consumer loan originations, larger mortgages held for sale balances and higher interest income from trading assets, as well as higher purchased credit-impaired accretion. Net interest income also benefited from one additional business day in the quarter.

Net interest margin was 3.06 percent, down 9 basis points from second quarter 2014, primarily due to higher cash and short-term investment balances. Strong customer driven deposit growth, which is essentially neutral to net interest income, diluted net interest margin by approximately 4 basis points. Liquidity funding actions also diluted the margin by 4 basis points, but with minimal impact to net interest income. The net impact of all other balance sheet growth and repricing was minimal, causing approximately 1 basis point of dilution.

Noninterest Income

Noninterest income was $10.3 billion, unchanged from the prior quarter. Higher market sensitive revenue5, as well as higher mortgage origination gains and brokerage advisory fees were offset by lower mortgage servicing income and lower investment banking fees. Market sensitive revenue was $1.1 billion, up $231 million from second quarter, on increased net gains in debt securities and equity investments. Net gains from trading activities were down $214 million primarily due to lower deferred compensation gains (offset in employee benefits expense).

Trust and investment fees were $3.6 billion, down $55 million from the prior quarter. Increases in retail brokerage asset-based fees and trust and investment management fees were offset by lower investment banking fees.

Mortgage banking noninterest income was $1.6 billion, down $90 million from second quarter 2014. Mortgage origination gains were up largely due to an increase in the gain on sale margin, but this was more than offset by a decrease in servicing income, which was driven by lower net mortgage servicing rights (MSRs) results and an increase in unreimbursed direct servicing costs. During the third quarter, residential mortgage originations were $48 billion, up $1 billion linked quarter, while the gain on sale margin was 1.82 percent, compared with 1.41 percent in second quarter.

Noninterest Expense

Noninterest expense increased $54 million from the prior quarter to $12.2 billion. The increase included higher operating losses from litigation accruals and higher outside professional services costs. Personnel expense was down modestly linked quarter as lower employee benefits expense, driven by lower deferred compensation costs (offset in trading revenue), were largely offset by higher salaries and higher commission and incentive compensation expense. The efficiency ratio was 57.7 percent in third quarter 2014, an improvement from 57.9 percent in second quarter 2014. The Company expects to operate within its targeted efficiency ratio range of 55 to 59 percent in fourth quarter 2014.

Income Taxes

Our effective tax rate was 31.6 percent for third quarter 2014, compared with 33.4 percent for second quarter 2014. The lower effective tax rate in third quarter 2014 was due primarily to tax benefits resulting from charitable donations of appreciated securities.

Loans

Total loans were $838.9 billion at September 30, 2014, up $9.9 billion from June 30, 2014, driven by growth in commercial and industrial, real estate construction, 1-4 family first mortgage, credit card, automobile, and other revolving credit and installment loans. Core loan growth was $12.2 billion, as non-strategic/liquidating portfolios declined $2.3 billion in the quarter.

Average total loans were $833.2 billion, up $2.2 billion from the prior quarter and $31.1 billion from a year ago. This growth was reduced by the transfer to loans held for sale at the end of the second quarter of $9.7 billion of government guaranteed student loans, which were previously included in the Company’s non-strategic/liquidating loan portfolio. Excluding this transfer, average total loans would have been up $12.0 billion, or 6 percent (annualized), from second quarter. Portfolios with double-digit year-over-year growth included asset backed finance, capital finance, commercial banking, commercial real estate, corporate banking, credit card, dealer services, government and institutional banking, mortgage core portfolios, personal lines and loans, retail brokerage, and wealth management.

Investment Securities

Investment securities were $289.0 billion at September 30, 2014, up $9.9 billion from second quarter. Approximately $25 billion of purchases were partially offset by run-off, mostly within the available-for-sale portfolio, which declined $710 million from prior quarter. Held-to-maturity securities were up $10.7 billion, primarily due to an increase in U.S. Treasury and federal agency debt.

The Company had net unrealized available-for-sale securities gains of $6.6 billion at September 30, 2014, down from $8.2 billion at June 30, 2014, primarily due to an increase in interest rates and realized securities gains.

Deposits

Total average deposits for third quarter 2014 were $1.1 trillion, up 10 percent from a year ago and up 9 percent (annualized) from second quarter 2014, driven by both commercial and consumer growth. The average deposit cost for third quarter 2014 was 10 basis points, unchanged from prior quarter, but an improvement of 2 basis points from a year ago. Average core deposits were $1.0 trillion, up 8 percent from a year ago and up 8 percent (annualized) from second quarter 2014. Average mortgage escrow deposits were $30.7 billion, compared with $34.7 billion a year ago and $27.2 billion in second quarter 2014.

Capital

Capital levels continued to be strong in the third quarter, with Common Equity Tier 1 of $136.5 billion under Basel III (General Approach), or 11.16 percent of risk-weighted assets. The Common Equity Tier 1 ratio under Basel III (Advanced Approach, fully phased-in) was 10.46 percent4. In third quarter 2014, the Company purchased 48.7 million shares of its common stock and an additional estimated 19.8 million shares through a forward repurchase transaction expected to settle in fourth quarter 2014. The Company also paid a quarterly common stock dividend of $0.35 per share, up from $0.30 per share a year ago.

Credit Quality

“Credit quality continued to trend positively in the third quarter as loan losses remained at historic lows, nonperforming assets continued to decrease, delinquency rates were stable, and we continued to originate high quality loans,” said Chief Risk Officer Mike Loughlin. “Credit losses were $668 million in third quarter 2014, compared with $975 million in third quarter 2013, a 31 percent improvement. The quarterly loss rate (annualized) was 0.32 percent with commercial recoveries of 0.02 percent and consumer losses of 0.62 percent. Nonperforming assets declined by $406 million, or 9 percent (annualized), from last quarter. We released $300 million from the allowance for credit losses in the third quarter, reflecting further credit quality improvement. We continue to expect future reserve releases absent a significant deterioration in the economic environment, but expect a lower level of future releases as the rate of credit improvement slows and the loan portfolio continues to grow.”

Net Loan Charge-offs

Net loan charge-offs improved to $668 million in third quarter 2014, or 0.32 percent (annualized) of average loans, compared with $717 million in second quarter 2014, or 0.35 percent (annualized) of average loans.

Nonperforming Assets

Nonperforming assets decreased by $406 million from second quarter to $17.7 billion. Nonaccrual loans decreased $607 million to $13.4 billion. Foreclosed assets were $4.3 billion, up from $4.1 billion in second quarter 2014 on higher government insured/guaranteed balances.

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $946 million at September 30, 2014, compared with $897 million at June 30, 2014. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $17.4 billion at September 30, 2014, down from $17.7 billion at June 30, 2014.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $13.5 billion at September 30, 2014, down from $13.8 billion at June 30, 2014. The allowance coverage to total loans was 1.61 percent, compared with 1.67 percent in second quarter 2014. The allowance covered 5.1 times annualized third quarter net charge-offs, compared with 4.8 times in the prior quarter. The allowance coverage to nonaccrual loans was 101 percent at September 30, 2014, compared with 99 percent at June 30, 2014. “We believe the allowance was appropriate for losses inherent in the loan portfolio at September 30, 2014,” said Loughlin.

Business Segment Performance

Wells Fargo defines its operating segments by product type and customer segment. Segment net income for each of the three business segments was:

More financial information about the business segments is in the OPERATING SEGMENT RESULTS and FIVE QUARTER OPERATING SEGMENT RESULTS tables.

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

Community Banking reported net income of $3.5 billion, up $39 million, or 1 percent, from second quarter 2014. Revenue of $12.8 billion increased $222 million, or 2 percent, from the prior quarter primarily due to higher net interest income, trust and investment fees, debit and credit card fees, and market sensitive revenue, mainly gains on sale of debt securities and equity investments, which were partially offset by lower mortgage banking revenue and lower gains on deferred compensation plan investments (offset in employee benefits expense). Noninterest expense rose slightly from the prior quarter due to higher operating losses, foreclosed assets expense, and project spending, partially offset by lower deferred compensation plan expense (offset in trading revenue). The provision for credit losses increased $186 million from the prior quarter primarily due to a lower reserve release.

Net income was up $129 million, or 4 percent, from third quarter 2013. Revenue increased $584 million, or 5 percent, from a year ago primarily due to higher net interest income, trust and investment fees, card fees, and market sensitive revenue, mainly gains on sale of debt securities and equity investments, partially offset by lower gains on deferred compensation plan investments (offset in employee benefits expense). Noninterest expense declined slightly from a year ago driven by lower mortgage volume-related expenses, and deferred compensation plan expense, partially offset by higher operating losses. The provision for credit losses increased $225 million from a year ago as the $290 million improvement in net charge-offs was more than offset by a lower reserve release.

Regional Banking

• Retail banking
  • Primary consumer checking customers6 up a net 4.9 percent year-over-year7
  • Retail Bank household cross-sell ratio of 6.15 products per household, unchanged year-over-year7
• Small Business/Business Banking
  • Primary business checking customers6 up a net 5.6 percent year-over-year7
  • Combined Business Direct credit card, lines of credit and loan product solutions (primarily under $100,000 sold through our retail banking stores) were up 27 percent from the prior year
  • For the 12th consecutive year, America’s #1 small business lender (in both loans under $100,000 and under $1 million) and #1 lender to small businesses in low- and moderate-income areas (2013 CRA data, released August 2014)
• Online and Mobile Banking
  • 24.4 million active online customers, up 7 percent year-over-year7
  • 13.7 million active mobile customers, up 19 percent year-over-year7
  • #1 ranking in Keynote Mobile Banking Scorecard; best in “Ease of Use” and “Quality & Availability” (September 2014)

Consumer Lending Group

• Home Lending
  • Originations of $48 billion, up from $47 billion in prior quarter
  • Applications of $64 billion, down from $72 billion in prior quarter
  • Application pipeline of $25 billion at quarter end, down from $30 billion at June 30, 2014
  • Residential mortgage servicing portfolio of $1.8 trillion; ratio of MSRs to related loans serviced for others was 82 basis points, compared with 80 basis points in prior quarter
  • Average note rate on the servicing portfolio was 4.47 percent, compared with 4.49 percent in prior quarter
• Consumer Credit
  • Credit card penetration in retail banking households rose to 39.7 percent7, up from 36.0 percent in prior year
  • Auto originations of $7.6 billion, up 9 percent from prior year

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $20 million. Products and business segments include 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, Asset Backed Finance, and Asset Management.

Wholesale Banking reported net income of $1.9 billion, down $32 million, or 2 percent, from second quarter 2014. Revenue of $5.9 billion decreased $44 million, or 1 percent, from prior quarter. Net interest income increased $54 million, or 2 percent, due to higher loan balances. Noninterest income decreased $98 million, or 3 percent, driven by the second quarter gain on the divestiture of 40 insurance offices as well as lower investment banking fees, trading revenue, and crop insurance fees (seasonal). Noninterest expense increased $47 million, or 1 percent, linked quarter as higher personnel costs were partially offset by seasonally lower insurance commissions. The provision for credit losses decreased $36 million from prior quarter due to an increase in net recoveries.

Net income was down $53 million, or 3 percent, from third quarter 2013. Revenue increased $31 million, or 1 percent, from third quarter 2013 on strong loan and deposit growth, strong treasury management fee growth and higher asset backed finance underwriting, commercial real estate brokerage and foreign exchange fees. Noninterest expense increased $166 million, or 5 percent, from a year ago primarily due to expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses increased $59 million from a year ago primarily due to a $62 million lower reserve release.

• Average loans increased 10 percent in third quarter 2014, compared with third quarter 2013, on broad-based growth, including asset-backed finance, capital finance, commercial banking, commercial real estate, corporate banking, equipment finance, government and institutional banking, international, and real estate capital markets
• Cross-sell of 7.2 products per relationship, up from 7.0 in third quarter 2013 driven by new product sales to existing customers
• Treasury management revenue up 9 percent from third quarter 2013
• Assets under management of $484 billion, up $9 billion from third quarter 2013, including an $11 billion increase in equity assets under management reflecting increased market valuations and net inflows

Wealth, Brokerage and Retirement provides a full range of financial advisory services to clients using a planning approach to meet each client's financial needs. Wealth Management provides affluent and high net worth clients with a complete range of wealth management solutions, including financial planning, private banking, credit, investment management and fiduciary services. Abbot Downing, a Wells Fargo business, provides comprehensive wealth management services to ultra high net worth families and individuals as well as endowments and foundations. Brokerage serves customers' advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the United States. Retirement is a national leader in providing institutional retirement and trust services (including 401(k) and pension plan record keeping) for businesses, retail retirement solutions for individuals, and reinsurance services for the life insurance industry.

Wealth, Brokerage and Retirement (WBR) reported net income of $550 million, up $6 million, or 1 percent, from second quarter 2014. Revenue of $3.6 billion increased $3 million from the prior quarter as increased asset-based fees and net interest income were partially offset by lower gains on deferred compensation plan investments (offset in compensation expense) and decreased brokerage transaction revenue. Noninterest expense decreased $5 million from the prior quarter driven by lower deferred compensation plan expense (offset in trading revenue), largely offset by increased broker commissions and non-personnel expenses.

Net income was up $100 million, or 22 percent, from third quarter 2013. Revenue increased $246 million, or 7 percent, from a year ago as strong growth in asset-based fees and higher net interest income was partially offset by lower gains on deferred compensation plan investments. Noninterest expense increased $71 million, or 3 percent, from a year ago primarily due to increased broker commissions and other expenses, which were partially offset by lower deferred compensation plan expense. The provision for credit losses increased $13 million from a year ago as lower reserve releases more than offset lower net charge-offs. The provision in third quarter 2014 included a $15 million reserve release, compared with $38 million a year ago.

Retail Brokerage

• Client assets of $1.4 trillion, up 8 percent from prior year
• Managed account assets of $409 billion, increased $59 billion, or 17 percent, from prior year, reflecting increased market valuations and net flows
• Strong loan growth, with average balances up 19 percent from prior year on growth in first mortgage and security-based lending

Wealth Management

• Client assets of $219 billion, up 7 percent from prior year
• Strong loan growth, with average balances up 10 percent over prior year

Retirement

• IRA assets of $354 billion, up 8 percent from prior year
• Institutional Retirement plan assets of $314 billion, up 6 percent from prior year

WBR cross-sell ratio of 10.44 products per household, up from 10.41 a year ago

Conference Call

The Company will host a live conference call on Tuesday, October 14, at 7 a.m. PDT (10 a.m. EDT). 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 wellsfargo.com/invest_relations/earnings and at https://engage.vevent.com/rt/wells_fargo_ao~101414.

A replay of the conference call will be available beginning at 10 a.m. PDT (1 p.m. EDT) on October 14 through Tuesday, October 21. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #83804752. The replay will also be available online at wellsfargo.com/invest_relations/earnings and at https://engage.vevent.com/rt/wells_fargo_ao~101414.

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 releases; (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 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, 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, including our obligations under the settlement with the Department of Justice and other federal and state government entities, 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;
• a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our investment securities portfolio;
• the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;
• reputational damage from negative publicity, protests, fines, penalties and other negative consequences from regulatory violations and legal actions;
• a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;
• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
• fiscal and monetary policies of the Federal Reserve Board; and
• the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013.

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, 2013, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.

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

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.6 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 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com), and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2014 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.