v3.26.1
Operating Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Operating Segments
Note 16:  Operating Segments
Our management reporting is organized into four reportable operating segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. All other business activities that are not included in the reportable operating segments have been included in Corporate. We define our reportable operating segments based on the product or service provided and the type of customer served, and their results are based on our management reporting process. The management reporting process measures the performance of the reportable operating segments based on the Company’s management structure, and the results are regularly reviewed with our Chief Executive Officer (CEO) and relevant senior management. Our CEO is the chief operating decision maker (CODM) and reviews actual and forecasted operating segment net income for assessing performance and deciding how to allocate resources. The management reporting process is based on U.S. GAAP and includes specific adjustments, such as funds transfer pricing for asset/liability management, shared revenue and expenses, and taxable-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources, which allows management to assess performance consistently across the operating segments.

In first quarter 2026, we moved the revenue, noninterest expense, loans, and deposits associated with clients who receive wealth management and financial planning services in our consumer bank branches from the Wealth and Investment Management operating segment to Consumer, Small and Business Banking in the Consumer Banking and Lending operating segment. Prior period balances have been revised to conform with the current period presentation.

Consumer Banking and Lending offers diversified financial products and services for consumers and small businesses. These financial products and services include checking and savings accounts, credit and debit cards as well as home, auto, personal, and small business lending. We also provide personalized wealth management and financial planning services through our branch channel.

Commercial Banking provides financial solutions to private, family owned and certain public companies. Products and services include banking and credit products across multiple industry sectors and municipalities, secured lending and lease products, and treasury management.

Corporate and Investment Banking delivers a suite of capital markets, banking, and financial products and services to corporate, commercial real estate, government and institutional clients globally. Products and services include corporate banking, investment banking, treasury management, commercial real estate lending and capital markets, equity and fixed income solutions as well as sales, trading, and research capabilities.

Wealth and Investment Management provides personalized wealth management, brokerage, financial planning, lending, trust and fiduciary products and services to affluent, high-net worth and ultra-high-net worth clients. We operate through financial advisors in our brokerage and wealth offices, independent offices, and digitally through WellsTrade® and Intuitive Investor®.
Corporate includes corporate treasury and enterprise functions, net of expense allocations, in support of the reportable operating segments (including funds transfer pricing, capital, and liquidity), as well as our investment portfolio and venture capital investments. Corporate also includes results for previously divested businesses.

Basis of Presentation
FUNDS TRANSFER PRICING. Corporate treasury manages a funds transfer pricing methodology that considers interest rate risk, liquidity risk, and other product characteristics. Operating segments pay a funding charge for their assets and receive a funding credit for their deposits, both of which are included in net interest income. The net impact of the funding charges or credits is recognized in corporate treasury.

REVENUE SHARING AND EXPENSE ALLOCATIONS. When lines of business jointly serve customers, the line of business that is responsible for providing the product or service recognizes revenue or expense with a referral fee paid or an allocation of cost to the other line of business based on established internal revenue-sharing agreements.

When a line of business uses a service provided by another line of business, expense is generally allocated based on the cost and use of the service provided. Enterprise functions, such as operations, technology, and risk management, are included in Corporate with an allocation of their applicable costs to the reportable operating segments based on the level of support provided by the enterprise function. We periodically assess and update our revenue sharing and expense allocation methodologies.

Table 16.1 includes the allocated expenses from Corporate to the reportable operating segments within the relevant personnel and nonpersonnel expense lines. Personnel expense is a significant expense for our reportable operating segments. Nonpersonnel expense includes other expense categories that are consistent with those presented on our consolidated statement of income, such as technology, telecommunications and equipment expense, occupancy expense, and professional and outside services expense.

TAXABLE-EQUIVALENT ADJUSTMENTS. Taxable-equivalent adjustments related to tax-exempt income on certain loans and debt securities are included in net interest income, while taxable-equivalent adjustments related to income tax credits for affordable housing and renewable energy investments are included in noninterest income, in each case with corresponding impacts to income tax expense (benefit). Adjustments are included in Corporate, Commercial Banking, and Corporate and Investment Banking and are eliminated to reconcile to the Company’s consolidated financial results.

Table 16.1 presents our results by operating segment.


Table 16.1: Operating Segments

(in millions)
Consumer Banking and LendingCommercial BankingCorporate and Investment BankingWealth and Investment Management
Corporate
Reconciling Items (1)
Consolidated
Company
Quarter ended March 31, 2026
Net interest income (2) 
$7,551 1,988 2,184 905 (460)(72)12,096 
Noninterest income2,447 1,132 3,094 2,970 228 (521)9,350 
Total revenue9,998 3,120 5,278 3,875 (232)(593)21,446 
Provision for credit losses818 150 175 (10)2 — 1,135 
Personnel expense
3,991 1,074 1,800 2,697 31 — 9,593 
Nonpersonnel expense2,598 534 892 565 148 — 4,737 
Total noninterest expense
6,589 1,608 2,692 3,262 179 — 14,330 
Income (loss) before income tax expense (benefit)2,591 1,362 2,411 623 (413)(593)5,981 
Income tax expense (benefit)650 343 602 155 (466)(593)691 
Net income before noncontrolling interests
1,941 1,019 1,809 468 53 — 5,290 
Less: Net income from noncontrolling interests— 2 — — 35 — 37 
Net income
$1,941 1,017 1,809 468 18 — 5,253 
Quarter ended March 31, 2025
Net interest income (2)
$7,039 1,977 1,790 730 36 (77)11,495 
Noninterest income2,344 948 3,274 2,674 (213)(373)8,654 
Total revenue9,383 2,925 5,064 3,404 (177)(450)20,149 
Provision for credit losses739 187 — 11 (5)— 932 
Personnel expense4,030 1,139 1,708 2,481 116 — 9,474 
Nonpersonnel expense
2,312 531 768 465 341 — 4,417 
Total noninterest expense
6,342 1,670 2,476 2,946 457 — 13,891 
Income (loss) before income tax expense (benefit)2,302 1,068 2,588 447 (629)(450)5,326 
Income tax expense (benefit)570 272 647 98 (615)(450)522 
Net income (loss) before noncontrolling interests1,732 796 1,941 349 (14)— 4,804 
Less: Net income (loss) from noncontrolling interests
— 2 — — (92)— (90)
Net income
$1,732 794 1,941 349 78 — 4,894 
Quarter ended March 31, 2026
Loans (average)$335,265 229,060 342,315 88,386 999 — 996,025 
Assets (average)369,371 252,803 801,973 94,379 649,698 — 2,168,224 
Deposits (average)816,621 185,897 214,345 112,098 86,073 — 1,415,034 
Loans (period-end)336,560 236,577 353,151 89,537 962 — 1,016,787 
Assets (period-end)373,989 261,252 805,350 95,425 669,736 — 2,205,752 
Deposits (period-end)840,556 189,802 214,501 113,659 96,421 — 1,454,939 
Quarter ended March 31, 2025
Loans (average)$321,464 223,804 277,287 80,930 4,697 — 908,182 
Assets (average)356,888 246,604 611,037 86,793 618,339 — 1,919,661 
Deposits (average)799,882 182,859 203,914 102,097 50,576 — 1,339,328 
Loans (period-end)319,462 228,266 280,664 80,955 4,495 — 913,842 
Assets (period-end)357,299 252,759 632,478 86,330 621,445 — 1,950,311 
Deposits (period-end)821,261 181,469 209,200 102,162 47,636 — 1,361,728 
(1)Taxable-equivalent adjustments related to tax-exempt income on certain loans and debt securities are included in net interest income, while taxable-equivalent adjustments related to income tax credits for affordable housing and renewable energy investments are included in noninterest income, in each case with corresponding impacts to income tax expense (benefit). Adjustments are included in Corporate, Commercial Banking, and Corporate and Investment Banking and are eliminated to reconcile to the Company’s consolidated financial results.
(2)Net interest income is interest earned on assets minus the interest paid on liabilities to fund those assets. Segment interest earned includes actual interest income on segment assets as well as a funding credit for their deposits. Segment interest paid on liabilities includes actual interest expense on segment liabilities as well as a funding charge for their assets.