Wells Fargo & Company (NYSE:WFC):

• Continued strong financial results:
  • Record Wells Fargo net income of $5.5 billion, up 19 percent from second quarter 2012
  • Record diluted earnings per share of $0.98, up 20 percent
  • Revenue of $21.4 billion, up $89 million
  • Noninterest expense of $12.3 billion, down $142 million
    • 57.3 percent efficiency ratio, improved from 58.2 percent
  • Pre-tax pre-provision profit (PTPP)1 of $9.1 billion, up 3 percent
  • Return on average assets (ROA) of 1.55 percent, up 14 basis points
  • Return on equity (ROE) of 14.02 percent, up 116 basis points
• Continued loan and deposit growth:
  • Total average loans of $800.2 billion, up $32.0 billion from second quarter 2012
    • Quarter-end loans of $802.0 billion, up $26.8 billion
    • Quarter-end core loans2 of $714.4 billion, up $42.3 billion
  • Total average core deposits of $936.1 billion, up $55.5 billion from second quarter 2012
    • Quarter-end core deposits of $941.2 billion, up $59.0 billion
• Significant improvement in credit quality:
  • Net charge-offs of $1.2 billion, down $1.0 billion from second quarter 2012
    • Net charge-off rate of 0.58 percent (annualized), lowest since second quarter 20063
  • Non-performing assets of $21.1 billion, down $3.8 billion from second quarter 2012
  • $500 million (pre-tax) reserve release4 due to continued strong credit performance
• Strengthened capital levels; increased dividends and continued share repurchases:
  • Tier 1 common equity5 under Basel I increased $15.9 billion from second quarter 2012 to $117.6 billion, with Tier 1 common equity ratio of 10.73 percent under Basel I at June 30, 2013
  • Estimated Tier 1 common equity ratio of 8.54 percent under Basel III capital rules6
  • Increased quarterly common stock dividend to $0.30 per share in second quarter 2013
  • Purchased 26.7 million shares of common stock in second quarter 2013 and an additional estimated 13 million shares through a forward repurchase transaction expected to settle in third quarter 2013

Wells Fargo & Company (NYSE:WFC) reported record net income of $5.5 billion, or $0.98 per diluted common share, for second quarter 2013, up from $4.6 billion, or $0.82 per share, for second quarter 2012, and up from $5.2 billion, or $0.92 per share, for first quarter 2013. For the first six months of 2013, net income was a record $10.7 billion, or $1.90 per share, compared with $8.9 billion, or $1.57 per share, for the same period in 2012.

“Wells Fargo achieved outstanding results for the second quarter, with our diluted EPS growing for the 14th consecutive quarter and our returns on assets and equity increasing from second quarter 2012 and first quarter 2013,” said Chairman and CEO John Stumpf. “Our results reflected the strength of our diversified business model. Compared with the prior quarter, we grew loans, deposits, and net interest income, and both our efficiency ratio and credit quality improved. Wells Fargo again demonstrated an ability to grow during a dynamic economic and interest rate environment, and we feel very well positioned to continue to perform for our shareholders over the long term.”

Chief Financial Officer Tim Sloan said, “Solid performance in the quarter reflected the strength of our broad and diverse franchise. Linked quarter we grew revenue, with higher net interest income as we grew loans and invested in securities. In addition, expenses and net charge-offs were lower in the quarter and we continued to grow capital. Our estimated Tier 1 common equity ratio under the Basel III capital rules adopted July 2, 2013, increased to 8.54 percent this quarter, despite the increase in market interest rates late in the quarter which reduced unrealized security gains and negatively impacted the ratio by 24 basis points. That’s a testament to the earnings power of Wells Fargo.”

Revenue

Revenue was $21.4 billion, up from $21.3 billion in first quarter 2013. Total revenue increased due to growth in net interest income, while growth in noninterest income fee categories, driven by trust and investment fees, was offset by lower market sensitive revenue7 and other income. Businesses generating year-over-year double-digit revenue growth included asset-backed finance, capital markets, corporate banking, credit card, personal credit management, real estate capital markets, retail brokerage, retail sales finance, retirement services, and small business administration loans.

7 Includes net gains from trading activities, net gains (losses) on debt securities available for sale and net gains from equity investments.

Net Interest Income

Net interest income in second quarter 2013 increased $251 million on a linked-quarter basis to $10.8 billion largely due to higher interest income from the available-for-sale (AFS) securities portfolio as we purchased $21.1 billion in securities, largely consisting of agency mortgage-backed securities (MBS), during the quarter. The portfolio yield improved as prepayments of existing MBS slowed. In addition, we benefitted modestly from organic growth in consumer and commercial loans and income from purchased credit-impaired (PCI) loan resolutions which mitigated the impact of loan portfolio repricing. Net interest income also improved as deposit and long term funding interest expense declined $74 million, and we benefitted from an additional day in the quarter.

On a linked-quarter basis, the Company’s net interest margin declined 2 basis points to 3.46 percent. Linked-quarter deposit growth caused cash and short term investments to grow despite growth in other earning asset categories including loans and AFS securities. Although deposit growth has little impact on net interest income, it is dilutive to net interest margin and accounted for 6 basis points of compression. Approximately 2 basis points of the decline was offset by higher income from variable sources, including PCI loan resolutions and periodic dividends. The net impact of repricing and growth of the balance sheet this quarter also improved net interest margin approximately 2 basis points compared with the first quarter largely due to the benefit of higher AFS securities portfolio income and reduced funding costs.

Noninterest Income

Noninterest income was $10.6 billion, down slightly from first quarter 2013. Fee income was up in many of the Company’s core businesses, including solid increases in trust and investment fees, lease income, equity gains, card and other fees, service charges on deposit accounts, and insurance. These increases were more than offset by lower trading income, including lower deferred compensation gains (offset in employee benefits expense), and lower other income, primarily lower income from investments accounted for under the equity method and a first quarter gain on sale of PCI loans.

Mortgage banking noninterest income was $2.8 billion, in line with first quarter 2013. During the second quarter, residential mortgage originations were $112 billion, up slightly from $109 billion in first quarter 2013, however gain on sale margins declined as expected. The Company provided $65 million for mortgage loan repurchase losses, compared with $309 million in first quarter 2013 (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were $68 million, compared with $129 million in first quarter 2013.

The Company had net unrealized securities gains of $5.1 billion at June 30, 2013, down from $11.2 billion at March 31, 2013, as market interest rates increased late in the quarter.

Noninterest Expense

Noninterest expense declined $145 million from the prior quarter primarily due to lower employee benefits which were seasonally elevated in first quarter 2013. This decline was partially offset by higher salaries, revenue-based incentive compensation, outside professional services, operating losses, and seasonally higher advertising and promotion expense. The efficiency ratio improved to 57.3 percent in second quarter 2013, compared with 58.3 percent in first quarter 2013. The Company expects to continue to operate within its targeted efficiency ratio range of 55 to 59 percent in third quarter 2013.

Loans

Total loans were $802.0 billion at June 30, 2013, up $2.0 billion from March 31, 2013, driven by growth in commercial and industrial, auto, foreign, credit card, and non-conforming first mortgage, partially offset by decreases in junior lien mortgage and commercial real estate mortgage, and a decline of $3.3 billion due to the continued runoff in the liquidating/non-strategic portfolio. Total average loans were $800.2 billion, up $2.2 billion from the prior quarter. The asset-backed finance, commercial banking, corporate banking, credit card, government and institutional banking, mortgage, personal credit management, real estate capital markets, retail brokerage, and retail sales finance portfolios all experienced year-over-year, double-digit growth.

Deposits

Total average deposits were $1.0 trillion, up 9 percent from a year ago and up 10 percent (annualized) from first quarter 2013. Average core deposits were $936.1 billion, up 6 percent from a year ago and up 4 percent (annualized) from first quarter 2013. Average core checking and savings deposits were $883.5 billion, up 8 percent from a year ago and up 6 percent (annualized) from first quarter 2013. Average mortgage escrow deposits increased to $39.6 billion, compared with $35.4 billion a year ago and $38.8 billion in first quarter 2013. Average core checking and savings deposits were 94 percent of average core deposits. The average deposit cost for second quarter 2013 improved to 14 basis points, compared with 15 basis points in the prior quarter and 19 basis points a year ago. Average core deposits were 117 percent of average loans, up slightly from first quarter 2013.

Capital

Capital increased in the second quarter, with Tier 1 common equity of $117.6 billion under Basel I, or 10.73 percent of risk-weighted assets, compared with 10.08 percent in second quarter 2012 and 10.39 percent in first quarter 2013. Under the Basel III capital rules adopted July 2, 2013, the Tier 1 common equity ratio was an estimated 8.54 percent.8 In second quarter 2013, the Company purchased 26.7 million shares of its common stock and an additional estimated 13 million shares through a forward repurchase transaction expected to settle in third quarter 2013. The Company also increased its quarterly common stock dividend to $0.30 per share, up from $0.22 a year ago.

8 Estimated based on management’s interpretation of final rules adopted July 2, 2013, by the Federal Reserve Board establishing a new comprehensive capital framework for U.S. banking organizations that would implement the Basel III capital framework and certain provisions of the Dodd-Frank Act.

Credit Quality

“Credit performance was very strong in the second quarter with improvement in all key metrics,” said Chief Risk Officer Mike Loughlin. “Credit losses were $1.2 billion in second quarter 2013, compared with $2.2 billion in second quarter 2012, representing a 48 percent year-over-year improvement. The quarterly loss rate fell to 0.58 percent with commercial losses of only 5 basis points and consumer losses of 1.01 percent. The consumer loss levels have improved rapidly due primarily to the positive momentum in the residential real estate market, with home prices improving faster and in more markets than expected. Nonperforming assets declined by $1.8 billion, or 8 percent from last quarter. We released $500 million from the allowance for credit losses in the second quarter, reflecting improvement in home prices and credit performance. We continue to expect future reserve releases absent a significant deterioration in the economic environment,” said Loughlin.

Net Loan Charge-offs

Net loan charge-offs improved to $1.2 billion in second quarter 2013, or 58 basis points of average loans, compared with $1.4 billion in first quarter 2013, or 72 basis points of average loans.

Nonperforming Assets

Nonperforming assets decreased by $1.8 billion in the quarter to $21.1 billion, compared with $22.9 billion in first quarter 2013. Nonaccrual loans decreased to $17.9 billion from $19.5 billion in first quarter 2013. Foreclosed assets were $3.1 billion, down from $3.4 billion in first quarter 2013.

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 $1.2 billion at June 30, 2013, compared with $1.4 billion at March 31, 2013. 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 $21.0 billion at June 30, 2013, down slightly from $21.7 billion at March 31, 2013.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $16.6 billion at June 30, 2013, down from $17.2 billion at March 31, 2013. The allowance coverage to total loans was 2.07 percent, compared with 2.15 percent in first quarter 2013. The allowance covered 3.6 times annualized second quarter net charge-offs, compared with 3.0 times in the prior quarter. The allowance coverage to nonaccrual loans was 93 percent at June 30, 2013, compared with 88 percent at March 31, 2013. “We believe the allowance was appropriate for losses inherent in the loan portfolio at June 30, 2013,” 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 $3.2 billion, up $321 million, or 11 percent, from first quarter 2013. Revenue increased $43 million, or 0.3 percent, primarily due to higher net interest income and mortgage banking revenue, growth in deposit service charges, and higher debit, credit and merchant card volumes, partially offset by lower deferred compensation plan investment gains (offset in employee benefits expense). Noninterest expense declined $164 million, or 2 percent, largely due to lower deferred compensation expense (offset in revenue) and seasonally lower employee benefit costs, partially offset by higher operating losses. The provision for credit losses was $499 million lower than first quarter 2013 as net-charge offs declined $183 million and portfolio credit performance improved, particularly in residential real estate.

Net income was up $710 million, or 28 percent, from second quarter 2012. Revenue decreased $150 million, or 1 percent, from second quarter 2012, due to lower net interest income, mortgage banking revenue and other noninterest income, mostly offset by growth in deposit service charges, higher trust and investment fees, and higher debit, credit and merchant card volumes. Noninterest expense declined $367 million, or 5 percent, largely driven by lower operating losses and FDIC deposit insurance assessments. The provision for credit losses decreased $810 million from a year ago as net-charge offs declined $765 million and portfolio credit performance improved, largely in the residential real estate portfolios.

Regional Banking

• Retail banking
  • Retail Bank household cross-sell ratio of 6.14 products per household, up from 6.00 year-over-year9
  • Primary consumer checking customers10 up a net 3.5 percent year-over-year9
  • Consumer credit card, lines of credit and loan product solutions (sales) in the retail banking stores in second quarter were up 17 percent from the prior year
  • Customers rated their experience with Wells Fargo stores at an all-time high based on second quarter survey results
  • Platform banker FTE (active, full-time equivalent) grew by approximately 1,900 from the prior year
• Small Business/Business Banking
  • Business checking accounts up a net 2.7 percent year-over-year9
  • Business Direct credit card, lines of credit and loan product solutions (primarily under $100,000 sold through our retail banking stores) in second quarter were up 55 percent from the prior year
  • $9.3 billion in new loan commitments to small business customers (primarily with annual revenues less than $20 million) in first half of 2013, up 25 percent from the prior year
  • Named U.S. Small business Administration’s 2013 SBA 7(a) Large Lender of the Year
• Online and Mobile Banking
  • 22.7 million active online customers, up 8 percent year-over-year9
  • 10.7 million active mobile customers, up 29 percent year-over-year9

Consumer Lending Group

• Home Lending
  • Originations of $112 billion, compared with $109 billion in prior quarter
  • Applications of $146 billion, compared with $140 billion in prior quarter
  • Application pipeline of $63 billion at quarter end, compared with $74 billion at March 31, 2013
  • Residential mortgage servicing portfolio of $1.9 trillion; ratio of MSRs to related loans serviced for others was 81 basis points, compared with 70 basis points in prior quarter
  • Average note rate on the servicing portfolio was 4.59 percent, compared with 4.69 percent in prior quarter
• Consumer Credit Solutions
  • Credit card penetration in retail banking households rose to 34.9 percent9, up from 31.0 percent in prior year
  • Record auto originations of $7.1 billion, up 4 percent from prior quarter and 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 $2.0 billion, down $41 million, or 2 percent, from first quarter 2013. Revenue of $6.1 billion increased $49 million, or 1 percent, from first quarter 2013 as strong growth across many businesses, including commercial banking, corporate banking, investment banking and international were partially offset by lower equity gains as well as lower sales and trading results. Noninterest expense increased $92 million, or 3 percent, from first quarter 2013 primarily from higher variable personnel expense.

Net income was up $123 million, or 7 percent, from second quarter 2012. Revenue increased $18 million, or 0.3 percent, from second quarter 2012 driven by business growth and strong loan and deposit growth, partially offset by a decline in PCI resolution income. Noninterest expense increased $70 million, or 2 percent, from second quarter 2012 due to higher personnel expenses related to revenue growth partially offset by lower foreclosed asset expenses. The provision for credit losses decreased $306 million from second quarter 2012 due to a $246 million reduction in credit losses and $60 million of additional reserve release. The second quarter 2013 provision included a $35 million reserve release, compared with a $25 million reserve build a year ago.

• Six percent year-over-year average loan and 4 percent average asset growth in second quarter 2013. Growth came from nearly all portfolios, including asset backed finance, capital finance, commercial banking, commercial real estate, corporate banking and government and institutional banking
• Second quarter 2013 average core deposits up 4 percent from second quarter 2012
• Investment banking year-to-date 2013 revenue from commercial and corporate customers increased 34 percent from year-to-date 2012 due to attractive capital markets conditions and continued momentum in cross selling
• Cross-sell of 6.9 products per relationship improved from 6.8 in prior quarter
• Second quarter 2013 treasury management revenue up 12 percent from second quarter 2012

Wealth, Brokerage and Retirement provides a full range of financial advisory services to clients using a planning approach to meet each client's 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 trust. Abbot Downing, a Wells Fargo business, provides comprehensive wealth management services to ultra high net worth families and individuals as well as their 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 reported net income of $434 million, up 29 percent from first quarter 2013. Total revenue of $3.3 billion was up 2 percent from first quarter 2013 predominantly due to higher asset-based fees and net interest income, partially offset by lower gains on deferred compensation plan investments (offset in compensation expense). Total provision for credit losses increased $5 million from first quarter 2013. The provision in second and first quarter 2013 included a $5 million and $6 million credit reserve release, respectively. Noninterest expense decreased 4 percent from first quarter 2013. The decrease was primarily due to the seasonal impact of the first quarter 2013 personnel expenses and a decrease in deferred compensation plan expense (offset in trading income), partially offset by increased broker commissions.

Net income was up 27 percent from second quarter 2012. Total revenue was up 10 percent from second quarter 2012 driven by strong growth in asset-based fees and increased brokerage transaction revenue, partially offset by reduced securities gains in the brokerage business. Total provision for credit losses decreased $18 million from second quarter 2012; the provision in second quarter 2012 included a $10 million credit reserve release. Noninterest expense increased 7 percent from second quarter 2012 largely due to higher personnel expenses, primarily broker commissions.

Retail Brokerage

• Client assets of $1.3 trillion, up 9 percent from prior year
• Managed account assets increased $52 billion, or 19 percent, from prior year driven by strong net flows and market performance
• Strong deposit growth, with average balances up 13 percent from prior year

Wealth Management

• Client assets of $203 billion, up 3 percent from prior year

Retirement

• IRA assets of $315 billion, up 12 percent from prior year
• Institutional Retirement plan assets of $277 billion, up 11 percent from prior year

Conference Call

The Company will host a live conference call on Friday, July 12, at 7 a.m. PDT (10 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and http://us.meeting-stream.com/wellsfargocompany_071213.

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on July 12 through Friday, July 19. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #12657627. The replay will also be available online at wellsfargo.com/invest_relations/earnings.

Cautionary Statement about Forward-Looking Information

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. Forward-looking statements are not based on historical facts but instead represent our current expectations regarding future events, circumstances or results. In particular, these 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; (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 Tier 1 common equity 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) the outcome of contingencies, such as legal proceedings; and (xii) the Company’s plans, objectives and strategies.

Forward-looking statements are based on 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, the sovereign debt crisis and economic difficulties in Europe, 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 available-for-sale 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 and 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, 2012.

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, 2012, 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 $1.4 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 9,000 stores, 12,000 ATMs, and the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With more than 275,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.