WFC 10-K & 10-Q changes, risk factors and insider trading

Investment Banking, and Wealth and Investment Management. Wells Fargo ranked No. 3338 on Fortune’s 20252026 rankings of America’s largest corporations. We ranked fourth in assets and fifth in the market value of our common stock among all U.S. banks at MarchJune 31,30, 2026.

In firstsecond quarter 2026, we generated $5.3$6.4 billion of net income and diluted earnings per common share (EPS) of $1.60,$2.00, compared with $4.9$5.5 billion of net income and diluted EPS of $1.39$1.60 in the same period a year ago. In the first half of 2026, we generated $11.7 billion of net income and diluted EPS of $3.60, compared with $10.4 billion of net income and diluted EPS of $2.98 in the same period a year ago. Financial performance for the second quarter and first quarterhalf of 2026, compared with firstthe quartersame 2025,periods a year ago, included the following:

•noninterest expense increased due to higher advertising and promotion expense, technology, telecommunications and equipment expense, advertising and promotion expense, and personnel expense, partially offset by lower other noninterest expense;

•average deposits increased driven by growth in interest-bearing deposits, partially offset by a decline in noninterest-bearing deposits.

We maintained a strong capital and liquidity position in the first quarterhalf of 2026, which included the following:

•The allowance for credit losses (ACL) for loans of $14.4 billion at MarchJune 31,30, 2026, increased $37$70 million from December 31, 2025.

•Our provision for credit losses for loans was $1.1$2.1 billion in the first quarterhalf of 2026, compared with $925$1.9 millionbillion in the same period a year ago, and included an increase in the allowance reflecting a higher allowance for commercial and industrial and auto loans driven by higher loan balances, partially offset by a lower allowance for commercial real estate loans and lower credit card balances.loans.

•The allowance coverage for total loans was 1.41%1.40% at MarchJune 31,30, 2026, compared with 1.45% at December 31, 2025, reflecting a decrease in the allowance for our commercial real estate portfolio driven by improved credit performance.

•Commercial portfolio net loan charge-offs were $360$156 million, or 2410 basis points of average commercial loans, in firstsecond quarter 2026, compared with net loan charge-offs of $211$247 million, or 1618 basis points, in the same period a year ago, driven by higherlower losses in our commercial and industrial portfolio, partially offset by lower losses in ourand commercial real estate portfolio.portfolios.

•Consumer portfolio net loan charge-offs were $740$720 million, or 7874 basis points of average consumer loans, in firstsecond quarter 2026, compared with net loan charge-offs of $798$750 million, or 8681 basis points, in the same period a year ago, due to lower losses in our credit card and other consumer portfolios, partially offset by higher losses in our auto portfolio.

•Nonperforming assets (NPAs) of $8.8$7.9 billion at MarchJune 31,30, 2026, increaseddecreased $265$559 million from December 31, 2025, driven by higher commercial and industrial nonaccrual loans, partially offset by lower commercial real estate nonaccrual loans. NPAs represented 0.86%0.77% of total loans at MarchJune 31,30, 2026.

Wells Fargo net income for firstsecond quarter 2026 was $5.3$6.4 billion ($1.60$2.00 diluted EPS), compared with $4.9$5.5 billion ($1.39$1.60 diluted EPS) in the same period a year ago. Net income increased in firstsecond quarter 2026, compared with the same period a year ago, predominantly due to a $696$1.2 millionbillion increase in noninterest income and a $601$609 million increase in net interest income, partially offset by a $439$486 million increase in income tax expense and a $282 million increase in noninterest expense and a $203 million increase in provision for credit losses.expense.

Net interest income increased in both the second quarter and first quarterhalf of 2026, compared with the same periodperiods a year ago, driven by lower average deposit costs, higher loan and investment securities balances, improved results in our Corporate and Investment Banking Markets (Markets) business, and fixed rate asset repricing, partially offset by the impact of lower interest rates onand floatingbalance ratesheet assetsgrowth in our Corporate and deposit mix changes.Investment

Net interest margin decreased in both the second quarter and first quarterhalf of 2026, compared with the same periodperiods a year ago, driven by growth in lower-yielding assets in our Markets business as well as growth in interest-bearing deposits and other short-term borrowings.deposits.

(2)Includes taxable-equivalent adjustments of $72$75 million and $77 million for the quarters ended MarchJune 31,30, 2026,2026 and 2025, respectively, and $147 million and $154 million for the first half of 2026 and 2025, respectively, predominantly related to tax-exempt income on certain loans and securities.

Investment banking fees increased due to higher debt and equity underwriting fees and advisory fees, partially offset by lower debt underwriting fees.

Net gains from equity securities increased reflecting improved results from our venture capital investments, including higher realized and unrealized gains, andpartially loweroffset by higher impairment losses.

Technology, telecommunications and equipment expense increased due to higher software expense, as well as higher hardware depreciation expense and higher expense for the amortization of internally developed software.

Advertising and promotion expense increased reflecting higher investments in marketing driven by increased campaign volume.

Other•a $93 million and $180 million decrease in lease expense decreasedin reflectingthe lowersecond leasequarter and otherfirst expensehalf relatedof 2026, respectively, due to the sale of our rail car leasing business in first quarter 2026.2026; and

The increase in the effective income tax rate forincreased in the second quarter and first quarterhalf of 2026, compared with the same periodperiods a year ago, was driven by higher pre-tax income and lower discrete tax benefits related to the resolution of prior period tax matters.

Table 6a: Consumer Banking and Lending – Income Statement and Selected Metrics (1)

•higher net interest income reflecting lowerwider deposit pricingspreads and higher deposit and loan balancesbalances, due toincluding the impact of the transfer of certain business customers from the Commercial Banking operating segment in third quarter 2025; and

•higher deposit-related fees reflectingdriven repricingby onhigher volume and higher consumer accounts;account deposit service charges driven by account repricing.

Provision for credit losses increased reflectingreflected a higher change in allowance for Consumer,credit Small and Business Bankingcard and auto loans driven by higher loan balances, partially offset by lower net charge-offs on credit card and personal loans.