Note 24: Operating Segments       


We have three reportable operating segments: Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement. The results for these operating segments are based on our management accounting process, for which there is no comprehensive, authoritative guidance equivalent to GAAP for financial accounting. The management accounting 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. We define our operating segments by product type and customer segment. If the management structure and/or the allocation process changes, allocations, transfers and assignments may change.


Community Banking offers a complete line of diversified financial products and services to consumers and small businesses with annual sales generally up to $20 million in which the owner generally is the financial decision maker. Community Banking also offers investment management and other services to retail customers and securities brokerage through affiliates. These products and services include the Wells Fargo Advantage FundsSM, a family of mutual funds. Loan products include lines of credit, auto floor plan lines, equity lines and loans, equipment and transportation loans, education loans, origination and purchase of residential mortgage loans and servicing of mortgage loans and credit cards. Other credit products and financial services available to small businesses and their owners include equipment leases, real estate and other commercial financing, Small Business Administration financing, venture capital financing, cash management, payroll services, retirement plans, Health Savings Accounts, credit cards, and merchant payment processing. Community Banking also offers private label financing solutions for retail merchants across the United States and purchases retail installment contracts from auto dealers in the United States and Puerto Rico. Consumer and business deposit products include checking accounts, savings deposits, market rate accounts, Individual Retirement Accounts, time deposits, global remittance and debit cards.

Community Banking serves customers through a complete range of channels, including traditional banking stores, in-store banking centers, business centers, ATMs, Online and Mobile Banking, and Wells Fargo Customer Connection, a 24-hours a day, seven days a week telephone service.


Wholesale Banking provides financial solutions to businesses across the United States with annual sales generally in excess of $20 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, investment management, institutional fixed-income sales, interest rate, commodity and equity risk management, online/electronic products such as the Commercial Electronic Office® (CEO®) portal, insurance, corporate trust fiduciary and agency services, and investment banking services. Wholesale Banking manages customer investments through institutional separate accounts and mutual funds, including the Wells Fargo Advantage Funds and Wells Capital Management. 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, CRE loan servicing and real estate and mortgage brokerage services.


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.


Other includes corporate items not specific to a business segment and elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for wealth management customers provided in Community Banking stores.

     CommunityWholesaleand Consolidated
(income/expense in millions, average balances in billions)  BankingBanking Retirement Other (1)Company
Net interest income (2) $ 28,839 12,298 2,888 (1,225) 42,800
Provision (reversal of provision) for credit losses  2,755 (445) (16) 15 2,309
Noninterest income  21,500 11,766 10,315 (2,601) 40,980
Noninterest expense  28,723 12,378 10,455 (2,714) 48,842
Income (loss) before income tax expense (benefit)  18,861 12,131 2,764 (1,127) 32,629
Income tax expense (benefit)  5,799 3,984 1,050 (428) 10,405
Net income (loss) before noncontrolling interests  13,062 8,147 1,714 (699) 22,224
Less: Net income from noncontrolling interests  330 14 2 - 346
Net income (loss) (3) $ 12,732 8,133 1,712 (699) 21,878
Net interest income (2)$ 29,045 12,648 2,768 (1,231) 43,230
Provision (reversal of provision) for credit losses  6,835 286 125 (29) 7,217
Noninterest income  24,360 11,444 9,392 (2,340) 42,856
Noninterest expense  30,840 12,082 9,893 (2,417) 50,398
Income (loss) before income tax expense (benefit)  15,730 11,724 2,142 (1,125) 28,471
Income tax expense (benefit)  4,774 3,943 814 (428) 9,103
Net income (loss) before noncontrolling interests  10,956 7,781 1,328 (697) 19,368
Less: Net income from noncontrolling interests  464 7 - - 471
Net income (loss) (3)$ 10,492 7,774 1,328 (697) 18,897
Net interest income (2)$ 29,657 11,616 2,844 (1,354) 42,763
Provision (reversal of provision) for credit losses  7,976 (110) 170 (137) 7,899
Noninterest income  21,124 9,952 9,333 (2,224) 38,185
Noninterest expense  29,252 11,177 9,934 (970) 49,393
Income (loss) before income tax expense (benefit)  13,553 10,501 2,073 (2,471) 23,656
Income tax expense (benefit)  4,104 3,495 785 (939) 7,445
Net income (loss) before noncontrolling interests  9,449 7,006 1,288 (1,532) 16,211
Less: Net income from noncontrolling interests  316 19 7 - 342
Net income (loss) (3)$ 9,133 6,987 1,281 (1,532) 15,869
Average loans$ 499.3 290.0 46.1 (30.4) 805.0
Average assets  835.4 502.3 180.9 (70.3) 1,448.3
Average core deposits  620.1 237.2 150.1 (65.3) 942.1
Average loans$ 487.1 273.8 42.7 (28.4) 775.2
Average assets  761.1 481.7 164.6 (65.8) 1,341.6
Average core deposits  591.2 227.0 137.5 (61.8) 893.9