Wholesale Banking Presentation

Wholesale Banking

Tim Sloan, Senior EVP, Wholesale Banking

Perry Pelos, EVP, Commercial Banking

Mike Johnson, EVP, Corporate Banking Group

Mark Myers, EVP, Commercial Real Estate

Danny Peltz, EVP, Treasury Management

May 20, 2014

© 2014 Wells Fargo & Company. All rights reserved.

Wholesale Banking 1 Wells Fargo 2014 Investor Day

Agenda

Wholesale Banking overview – Tim Sloan

Featured Wholesale businesses:

- Commercial Banking – Perry Pelos

- Corporate Banking – Mike Johnson

- Commercial Real Estate – Mark Myers

Wholesale core product:

- Treasury Management – Danny Peltz

Wholesale Banking 2

Business Overview Wholesale Banking

Wells Fargo 2014 Investor Day


Wholesale Banking operates over 50 lines of business serving:

U.S. middle-market and large corporates with annual sales of $20 million and higher

Foreign subsidiaries of U.S. companies and the U.S. needs of multi-national corporations

Financial institutions and investment funds globally

Business highlights:

Over 35,000 team members

More than 400 domestic and international locations

1Q14 average assets: $517.4 billion

1Q14 average core deposits: $259.0 billion

1Q14 average loans: $301.9 billion

Revenue: 1Q14 $5.6 billion; FY 2013 $24.1 billion

Net income: 1Q14 $1.7 billion; FY 2013 $8.1 billion

Wholesale Banking overview


A diverse set of businesses

Commercial Banking Commercial Banking Government and Institutional Banking

Commercial Real Estate Homebuilder Banking Hospitality Finance Real Estate Merchant Banking REIT Finance Portfolio Management & Commercial Real Estate Services U.S. and International Lending

Corporate Banking Energy Group Financial Institutions Group Financial Sponsors Group Gaming Division Healthcare Group Power and Utilities Group Restaurant Finance U.S. Corporate Banking

International Group Foreign Exchange Global Banking Global Financial Institutions

Specialized Lending, Servicing, and Trust Services Asset Backed Finance Commercial Mortgage Originations Commercial Mortgage Servicing Community Lending & Investment Corporate Trust Services Equipment Finance Multifamily Capital Shareowner Services

Treasury Management &

Internet Solutions Commercial Electronic Office® portal Health Benefit Services Treasury Management

Wells Fargo Asset Management Affiliated Managers Funds Management Group Wells Capital Management

Wells Fargo Insurance Insurance Brokerage and Consulting Personal and Small Business Insurance Rural Community Insurance Services

Wells Fargo Capital Finance Corporate Finance Group Industries Group Retail Sales Finance Trade Capital

Wells Fargo Securities Eastdil Secured Investment Banking & Capital Markets Debt Originations Equity Originations Loan Syndications M&A Advisory

Markets Division ABF Sales and Trading Client Trade Services

Commodity Derivatives Sales and Trading Credit Sales and Trading Investment Solutions Liquid Products Sales and Trading Equity Sales and Trading

Municipal Products Principal Investments


Broad product set


Expansive distribution

688 U.S. and 76 international offices in 406 locations globally (1)

(1) Office count as of 1Q14.


#1 share of middle-market customers in the U.S. (1)

#1 total commercial real estate originations in the U.S. (2)

#1 commercial mortgage servicer in the U.S. by size (3) #1 U.S. oil & gas loan syndications bookrunner (4)

#1 in energy investment banking (5)

#1 in overall satisfaction in correspondent banking bank-to-bank services (6) #1 U.S. factor, by volume (7)

#1 in ACH payments (8)

#2 asset-based loan bookrunner (9)

#3 share of U.S. Treasury Management market (10)

#3 credit enhancer of municipal new issues (11)

#3 in U.S. commercial mortgage backed securities issuance (12)

#3 in debt capital markets, fee-based (13)

#4 in loan syndications, fee-based (13)

An industry leader

(1) TNS Commercial Banking Momentum Monitor, 2013; Middle market is defined as companies with revenues between $25MM and $500MM. (2) MBA Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, year ending 12/31/13. (3) MBA Commercial/ Multifamily Mortgage Servicer Rankings, year-end 2013. (4) Thomson Reuters LPC, 2013. (5) Dealogic, U.S. only fee-based ranking, 2013. (6) FImetrix Global Report on Bank-to-Bank Transaction Services, 2013. (7) Commercial Finance Association (CFA) 2014 Annual Factoring Survey.(8) NACHA - The Electronic Payments Association, 2014. (9) Thomson Reuters LPC, 2013. (10) Ernst & Young: 2013 Cash Management Survey of fee-equivalent revenues. (11) Securities Data Corp., December 2013. (12) Commercial Mortgage Alert, 2013. (13) Dealogic, Jan. 2014; U.S. only; Excludes Public and Asset Backed Finance.


Focus on building long-term customer relationships

Evolve with and respond to our customers’ needs

Provide a broad product offering that can serve customers over time

Work closely with customers through all market cycles

Relationships drive growth


51%

6%

9% 8%

5%

6%

5%

2%

3%

5%

Wholesale: 29%

Share of Wells Fargo Revenues and Earnings

2013 Earnings

2013 Revenues

Wholesale: 37%

Wholesale Revenues by Category

Investment Banking Trust & investment

fees

Service charges

Loan and letter of credit fees

Net interest income

Insurance

Trading gains

Equity investment gains

Operating leases

Other

Revenue and earnings contribution


Net income growth

0.8 0.8 1.0 1.1 1.1

1.4 1.7 1.7

2.2 2.3

1.4

3.9

5.9

7.0

7.8 8.1

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

($ in billions)

12% CAGR 1998-2007

11% CAGR 2010-2013


Wholesale Banking credit quality

0.10%

0.29% 0.33%

0.56% 0.56%

0.36%

0.12%

0.00% 0.02% 0.08%

0.47%

0.94%

1.08%

0.34%

0.19%

-0.07% -0.08%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q14

Wholesale Net Charge-offs (% of average loans)


Financial performance

$21,568

$24,092 $24,064

FY11 FY12 FY13

Total Revenue

$11,177

$12,082$12,378

FY11 FY12 FY13

Noninterest Expense

$6,987

$7,774$8,133

FY11 FY12 FY13

($ in millions)

CAGR = 5.6%

CAGR = 5.2%

CAGR = 7.9%

Net Income


Wholesale loans and deposits

$283$285

$288

$295

$302

1Q13 2Q13 3Q13 4Q13 1Q14

Loans

($ in billions, average balances)

$269

$278

$290

$313$316

1Q13 2Q13 3Q13 4Q13 1Q14

Broad-based Commercial Banking growth started late 2013

$5.2B from CRE loan acquisitions added in 3Q13

Corporate Banking and Asset Backed Finance grew across many sectors

Wells Fargo Capital Finance grew across asset-based lending divisions

International grew from GFI demand in Asia

Total Deposits

($ in billions, average balances) 4Q13 deposits increased on broad-

based organic growth in Corporate Banking, Commercial Banking, and Gov’t/Inst. Banking, including increases from a few large customers preparing for acquisitions

1Q14 deposits increased 17% YoY


Competitive Positioning

and Advantages Wholesale Banking


People as a competitive advantage

Tim Sloan

Senior EVP, Wholesale Banking 27 years at Wells Fargo

15 direct reports with average 23 years at WFC

Perry Pelos

Head of Commercial Banking

27 years at WFC

13 direct reports - Average 20 years at WFC

1,367 lenders - Average 10 years at WFC

2,651 total team members - Average 11 years at WFC

Mike Johnson

Head of Corporate Banking

31 years at WFC


371 lenders - Average 10 years at WFC

683 total team members - Average 11 years at WFC

Mark Myers

Head of Commercial Real Estate

30 years at WFC


399 lenders

- Average 10 years at WFC

966 total team members

- Average 11 years at WFC

Danny Peltz

Head of Treasury Management

24 years at WFC


537 TM Sales Consultants - Average 11 years at WFC

3,818 total team members - Average 13 years at WFC

Steve Ellis

Head of Wholesale Services

26 years at WFC

Average tenure of all Wholesale team members is 10 years (1)

Information as of April 2014. (1) Average tenure of all Wholesale team members includes team members in lines of business not featured here.


Average number of products per relationship

6.7

6.9

7.2

1Q12 1Q13 1Q14

Single product types are counted only once per relationship. Cross-sell reported on a one-quarter lag.


Cross-sell focus

Cross-sell Product Penetration, by Product Family

Credit and Treasury Management are our two core products

Over 75% of Wholesale relationships have a credit product and nearly 85% have a Treasury Management product with Wells Fargo

Additionally, Wholesale product families are listed in the chart below:

Data as of February 2014 for all Wholesale Banking relationships >$10K Pre-tax pre-provision profit (PTPP). PTPP is total revenue less noninterest expense.

0% 10% 20% 30% 40%

International

Investments

Risk Management

Corporate Trust

Insurance

Capital Markets & Advisory

Shareowner Services


Relationship tenure and cross-sell drive revenue

6.8

8.3 9.2

10.9

1 - 5 6 - 10 11 - 15 > 15

Avg. # of

products

Tenure (years)

$227 $301 $611

$1,388

$2,849

$7,331

1 - 5 6 - 10 11 - 15 16 - 20 21 - 25 > 25

Avg. annual

revenue ($000)

# of products

Longer Tenure = More Cross-sell More Cross-sell = More Revenue

Data as of February 2014. Average number of products and average annual revenue shown is per relationship.


We promote a risk culture of sound judgment, conservatism, and responsibility among our team members, and attempt to avoid anything that could cause permanent or irreparable damage to our reputation.

Credit

Take only as much risk as is appropriate to efficiently, effectively, and prudently serve customers.

Take risks when we understand them; avoid/ minimize risk when we have no competitive advantage.

Price our business to cover risk to capital; retain risk only if priced for a sufficient risk-adjusted return.

Market

Thoughtfully balance risk and return on behalf of our shareholders.

Take market risk only when appropriate controls and models are in place to accurately monitor and assess risk.

Independently assess and challenge line-of-business market risk exposures, when appropriate.

Operational

Customers expect we will be a reliable provider of services.

Wholesale decision makers have primary responsibility for risk. Corporate Risk functions provide oversight, enterprise view, and appropriate “challenge.”

Wholesale Banking has no tolerance for willful or negligent violation of laws, regulations, or company policies.

Striving toward risk management excellence


Key Growth Opportunities Wholesale Banking


Growth opportunities

Expand our global platform and sector expertise

Invest in our products, capabilities, distribution platform, and team members globally

Leverage deep sector expertise to grow select businesses

Explore opportunistic business and asset purchases

Focus on building long-term relationships

Partner across our diverse businesses to address customer needs and cross-sell our broad product offerings

Acquire new customers that fit Wells Fargo’s relationship-focused model

Up-tier relationships with sound advice and superb execution

Continue to execute our core values

Do the right thing for customers

Serve relationships for the long term, through all business cycles

Understand, price, and manage risk


Commercial Banking

Perry Pelos

Executive Vice President Head of Commercial Banking


31%

17%

7% 7%

6%

5%

27% Manufacturing

Wholesale Trade

Professional, Scientific, and Technical Services

Retail Trade

Construction

Finance and Insurance

Other

Commercial Banking: leader in the middle market

#1 share of middle-market

customers in the U.S. (1)

Wells Fargo banks approximately 25% of middle-market companies in the U.S. (1)

Our customers are in nearly every industry, including manufacturing, wholesale, retail, distribution, construction, and services.

We have a tenured management team with an average 20 years of service.

(1) TNS Commercial Banking Momentum Monitor (2013); Middle market is defined as companies with revenues between $25MM and $500MM.

(2) Data as of February 2014. Industry classifications based on NAICS level 2 codes.

Commercial Banking Customers by Industry (2)


Commercial Banking coast to coast

A local approach to serve the middle market via our Commercial Banking offices

(1) In addition to these primary U.S. offices, there are 17 satellite offices in the U.S. and 2 offices in Canada.

135 Offices Across the U.S. (1)


Commercial Banking financial performance

64,110

74,239

81,653

2011 2012 2013

CAGR = 12.9%

Total Loans (average balances)

43,528

50,906 53,338

2011 2012 2013

CAGR = 10.7%

Total Deposits (average balances)

CAGR 2011 – 2013

PTPP: 4.3% (1)

Net income: 8.4%

3,605 3,903 4,064

2011 2012 2013

Total Revenue

CAGR = 6.2%

($ in millions)

Loans, revenue, PTPP, and net income include the credit for products and services to customers in multiple businesses that are eliminated in Wholesale segment reporting. (1) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense.


Net Interest

Income

Treasury

Management

Investment

Banking & Capital Markets

Risk

Management

Other fees

20%

5%

7%

5%

10%

2% 2%

Commitment and LC Fees

Foreign Exchange

49%

Commercial revenue diversification

Spread and Fee Income as a % of total revenue

Noninterest Income

Net Interest Income

2013 Revenue

2011 2012 2013

48%

52% 50% 49%

Asset Management 50% 51%


Strong Credit and Treasury Management platform

76% of Commercial Banking relationships have a Credit product and 91% have a Treasury Management product with Wells Fargo

Commercial portfolio has grown by focusing on solutions that address the full breadth of credit needs of privately held, middle-market companies

Our locally driven, “know your customer” decision-making model creates a diversified portfolio across industries and geography, while helping to sustain a strong and responsive risk management culture of accountability and service

Relationships w/ credit (1) (% of relationships)

Sole-bank lender (non-syndicated)

80%

<$25 million in commitments 64%

Data as of February 2014 for Commercial Banking relationships >$10K PTPP.


Top Commercial Banking cross-sell products

Cross-sell Penetration, by Product Family

Data as of February 2014 for Commercial Banking relationships >$10K PTPP.

0% 10% 20% 30% 40%

International

Investments

Risk Management

Insurance

Corporate Trust


Shareowner Services

10 products per customer on average

16-year average customer tenure


Highest middle-market share

Source: TNS 2013 Commercial Banking Momentum Monitor.

12.6% 10.3%

7.8%

3.6% 4.0%

11.9%

12.2%

10.9%

7.6% 4.4%

WFC BAC JPM USB PNC

Non Lead Bank

Lead Bank

24.5%

22.5%

18.7%

8.4%

11.2%

Wells Fargo Commercial Banking share of the middle market increased to 24.5% in 2013 from 22.1% in 2012


(1) American Bankers Association; FDIC, data as of 4Q13 for total Wells Fargo.

The expertise

• 32 offices across the U.S. and Canada have specialized Food & Agribusiness experts

• Leading provider of U.S. farm loans, by volume (1)

The opportunity

• Providing less than 10% of the total U.S. farm loan volume (1) • Added experts in five offices in last 12 months focused on growing market

share for Food & Agribusiness east of the Mississippi

Environmental & Waste

Management

Food & Agribusiness

Technology & Venture Banking

Investor Real Estate

Beverage

Heavy Equipment


Management

Technology Banking Group


Beverage

Heavy Equipment

Industry-specific teams: highlight on Food & Agribusiness


(1) Initial four sectors included semiconductors, software, hardware/networking, and internet.

2013

Launched National Life Science team

Expanded to Seattle

Late 90s

Internet movement; launched Technology Banking Group focused on four sectors (1)

2010

Launched National Clean Tech team

Expanded to L.A.

2006

Expanded to Southern CA

Increased Life Sciences focus

2012 Expanded to

Boston 2011

Expansion strategy driven by the geographic growth of Commercial Banking and Technology sectors


Management

Food & Agribusiness

Technology Banking Group


Beverage

Heavy Equipment

Expanded to Austin

Industry-specific teams: highlight on Technology Banking


Over 55% of middle-market companies that are geographically expanding plan to do so internationally (1)

Commercial Banking recently established new banking teams, comprised of 20 local relationship managers, in the four largest Canadian cities (Toronto, Montreal, Vancouver, and Calgary)

(1) KPMG Middle Market Survey (2013).

(2) Data as of February 2014 for Commercial Banking relationships >$10K PTPP.

(3) Includes Foreign Exchange, International Trade, Global Payments, and International Treasury Management.

CAGR = 12%

2011 2012 2013

Commercial Banking (2) Revenue from International Products (3)

We invest and grow with our customers: International


Over 250 Investment Banking transactions with Commercial Banking

customers in 2013 (1)

21% of Commercial Banking relationships use Wells Fargo Securities

products (2)

(1) Dealogic (2013).

(2) Data as of February 2014 for Commercial Banking relationships >$10K PTPP; Investment Banking products include Capital Markets & Advisory and Risk Management product families.

$847 Million

Initial Public Offering September 2013

Bookrunning Manager

We invest and grow with our customers: Investment Banking


Strength of Commercial Banking

Highest share of the middle market

Strong, tenured leadership team

An extensive domestic presence and expansion into Canada

Steady growth in loans and deposits

Strong Credit and broad Treasury Management platform

Growth opportunity to deepen cross-sell and strengthen our specialty team focus

Investing and growing with our customers domestically and globally


Corporate Banking

Mike Johnson

Executive Vice President Head of Corporate Banking


Corporate Banking overview

Corporate Banking today

Relationship statistics (1)

2,000+ relationships

Bank nearly 3 out of 4 Fortune 500 companies

18-year average bank relationship tenure

10 products per relationship

Business description

A diverse set of primarily industry-focused businesses

Provides integrated financial solutions to large corporate, investment grade, non-investment grade, public, and private customers in offices in the U.S., Canada, and the U.K.

(1) Data as of February 2014 for Corporate Banking relationships >$10K PTPP.


Industry-focused relationship businesses

General Corporate

Financial Institutions

Power and Utilities

Energy Gaming Healthcare Financial Sponsors

Restaurant Finance

Corporate Banking’s broad range of customers have complex financial services needs and significant capital markets activities

Industry/sector expertise allows us to understand our customers’ needs and serve them more effectively

In-depth customer and industry knowledge is fundamental to our risk management for both new customer acquisition and ongoing portfolio management


Corporate Banking locations

Energy

Power and Utilities

General Corporate

Financial Sponsors

Gaming


Restaurant Finance

Healthcare

Aberdeen, Scotland

Calgary


Know our customers

Understand their financial services needs

Offer value-added ideas and products that fit those needs

Our growth is driven by our relationship managers


Close coordination and active relationship planning

Ongoing dialogue on capital markets ideas and advice on M&A and corporate finance

Risk and liability management

Both teams licensed with Series 79 and 63 licenses

Corporate Banking and Investment Banking partnership


Corporate Banking financial performance

22,130

30,291

34,401

2011 2012 2013

CAGR = 24.7%


42,861

53,042

59,193

2011 2012 2013

CAGR = 17.5%


CAGR 2011 – 2013

PTPP: 15.2% (1)

Net income: 15.6%

2,801 3,337 3,589

2011 2012 2013

Total Revenue

CAGR = 13.2%

($ in millions)



7%

3% 3%

3%

24%

15%

9%

2%

34%

X%


Treasury Management

Net Interest Income

Equity Investment Gains

Other

Spread and Fee Income (as a % of total revenue)

2010 2011 2012 2013

32% 34% 34%

Non Interest Income

Net Interest Income

2013 Revenue

Investment Banking &

Capital Markets

Asset Management

Foreign Exchange

Risk Management

Corporate Banking’s revenue diversification

68%

66% 66%


Market leadership

Power and utilities

Financial institutions

#3 U.S. utilities loan syndications bookrunner (3)

#2 U.S. and Bermuda insurance investment grade bond issuance (5)

#3 U.S. financial services loan syndications bookrunner (6)

Consumer, retail, and gaming

#3 U.S. hotel & gaming loan syndications bookrunner (6)

(1) Thomson Reuters LPC, by number of deals and by volume, 2013. (2) Dealogic, U.S. only fee-based ranking, 2013. (3) Thomson Reuters LPC, by number of deals and by volume, 2013. (4) SIC 5812, by number of deals, 2013. (5) Dealogic, excludes FA notes, 2013. (6) Thomson Reuters LPC, by volume, 2013.

Energy

#1 U.S. oil & gas loan syndications bookrunner (1)

#1 energy investment banking (2)

Restaurants

#1 restaurant loan syndications bookrunner (4)


Corporate Banking cross-sell opportunity

Data as of February 2014 for Corporate Banking relationships >$10K PTPP.

Cross-sell Penetration, by Product Family

0% 10% 20% 30% 40%

Investments


International

Corporate Trust

Risk Management

Shareowner Services

Insurance

85% of Corporate Banking relationships have a credit product and 73% have a Treasury Management product with Wells Fargo


Up-tier relationships through value-added ideas

Acquire new customers that fit Wells Fargo’s relationship-focused model

Leverage deep sector expertise to expand existing businesses

Continue development of our Energy business in Canada and the U.K.

Coordinate with the International Group to serve our multi-national customers

Well positioned for continued growth


Energy Corporate Banking


Energy overview

Energy platform

today

Team members

Over 400 team members across the Wholesale platform located throughout the U.S., Canada, and U.K. dedicated to serving Energy customers

Experienced management team

Dedicated, industry-focused Energy group for 40+ years

Management team has a 13-year average tenure at Wells Fargo

Business description

One of the largest capital providers in the Energy sector

Active across the upstream, midstream, and services sectors for companies of all sizes


Energy overview

Other 4%

Midstream 20%

Services & equipment

22%

Upstream 54%

Lending Commitments by Sector (2)

Market leader in a growing, capital intensive industry

540+ relationships (1)

8 products per relationship (1)

(1) Data as of February 2014 for Corporate Banking Energy relationships >$10K PTPP. (2) Commitments as of 12/31/2013.


Energy market leadership

#1 high yield energy bookrunner (1)

#1 U.S. oil & gas loan syndications bookrunner (2)

#1 energy investment banking (3)

#1 energy high grade loan syndications (3)

#1 energy leveraged loan syndications (3)

#1 master limited partnership (MLP) equity bookrunner (4)

#3 energy equity bookrunner (5)

(1) WFS and Dealogic, by deals, 2013. (2) Thomson Reuters LPC, 2013. (3) Dealogic, U.S. only fee-based ranking, 2013. (4) Dealogic, by number of deals, 2010-2013. (5) Dealogic, by fees and number of deals, 2013.


Experienced, industry focused bankers that know their customers

Consistent, active presence providing capital throughout all cycles

A broad and deep platform that allows us to help our customers grow

Growth in the business has been driven by


Broad product platform supports our customers’ growth

Start-up

- Basic treasury

management

- Revolving credit

- Second lien

- Derivatives hedging

- Direct equity

investment

Growth - Expand treasury

management

- Leasing

- Syndicated financing

- Term loan

- High-yield issuance

- Advisory

- Corporate trust

Corporate/public - Foreign exchange

- International treasury

management

- Initial public offering/

equity issuance

- Shareowner services

- Wealth management


Broad product platform supports our customers’ growth

BreitBurn Energy Partners LP

(NASDAQ: BBEP)

Wells Fargo is:

Administrative agent and lead arranger on credit facilities

Acquisition underwriter

Bookrunner for senior notes offering

Bookrunner on IPO and follow-on equity offerings

Administrative agent and lead arranger on second lien facility

Co-investor including introduction of other equity investors

Treasury management provider

Commodity derivatives provider

Corporate trust provider

15+ year relationship with Wells Fargo


Energy financial performance

6,943

11,204 12,565

2011 2012 2013

CAGR = 34.5%


4,034 4,557

6,477

2011 2012 2013

CAGR = 26.7%


CAGR 2011 – 2013

PTPP: 23.6% (1)

Net income: 24.0%

690

974 1,044

2011 2012 2013

Total Revenue

CAGR = 23.0%

($ in millions)




Noninterest Income

Net Interest Income

2013 Revenue

Energy’s revenue diversification

67%

62% 59%

8%

6%

5%

26%

5% 6%

44%


Treasury Management

Net Interest Income

Equity Investment Gains

Investment Banking &

Capital Markets

Other NII

Risk Management

2011 2012 2013

41% 44%

37%

59% 56%

63%


BNP Paribas portfolio acquisition opportunity

BNP Paribas portfolio acquisition benefits:

Acquired $3.5 billion in loans on April 24, 2012

Well-established reputation as market leader with top-tier execution

Acquisition of new relationships

Experienced bankers with industry expertise and deep customer relationships

Significant cross-sell opportunity

4

5

8

BNPP 2012 BNPP 2013 EnergyBusiness

Products per Relationship


Positioned to serve the U.S. energy industry, which is capital intensive and has positive long-term growth prospects

Add new relationships and deepen existing relationships

Expand capabilities in our advisory and risk management businesses

Develop international presence to align with our customers’ global needs

Well positioned for continued growth


Commercial Real Estate

Mark Myers

Executive Vice President Head of Commercial Real Estate


The industry leader

In 2013 Wells Fargo originated more commercial real estate activity than any other competitor in (1):

Industrial Retail Hospitality Office building Affordable housing Fannie Mae Portfolio lender CMBS/conduit

(1) MBA Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, year ending 12/31/13. (2) MBA Commercial/ Multifamily Mortgage Servicer Rankings, year-end 2013. (3) Company filings. (4) Real Estate Alert, 2013. (5) Dealogic, 2013. (6) Thomson Reuters LPC, 2013.

Product 2013 market position

Total commercial real estate originations in the U.S. (1)

#1 since 2009

Commercial mortgage servicer in the U.S. by size (2)

#1

REIT Preferred Equity bookrunner (Wells Fargo Securities) (3)

#1

Equity Sales Advisory (Eastdil Secured) (4)

#1

RE Public Equity bookrunner (Wells Fargo Securities) (5)

#2

REIT Loan Syndications by # of deals (Wells Fargo Securities) (6)

#2

RE High Grade Debt bookrunner by # of deals (Wells Fargo Securities) (3)

#2

RE M&A Advisory by # of deals (Wells Fargo Securities) (6)

#2

PERE is published by PEI, the only global B2B information group focused exclusively on private equity, private real estate, private debt, and infrastructure.


Relationships

Focus on long-term collaboration and building long-term relationships

Experienced commercial real estate investors, operators, and developers

Public and private equity REITs

Real estate investment management and private equity firms

Public and private homebuilders

Strong nonprofits that focus on community development, specifically Community Development Entities (CDEs) and Community Development Financial Institutions (CDFIs)

Our comprehensive Commercial Real Estate platform

Products and terms

Structured on-balance sheet and capital markets solutions

Products

Acquisition loans

Construction and bridge loans

Permanent loans

Note financing

Secured and unsecured credit facilities (term loans and revolvers)

Letters of credit

A&D and unit construction financing

A/B structures and mezzanine debt

Subscription lines of credit for investment management firms

Terms

$1 million to $500+ million

Recourse and non-recourse

Fixed and floating rates

All major property types

Specialty groups across platform

Tailored market-specific financing

Homebuilder Banking

Hospitality Finance

Senior Housing

REIT Finance

Real Estate Merchant Banking

Real Estate Capital Markets (Commercial Mortgage-Backed Securities)

Commercial Mortgage Servicing

Multifamily – Fannie Mae & Freddie Mac, FHA/HUD

Affordable Housing/LIHTC

New Markets Tax Credits

Equity Equivalent Investments

Real Estate Syndicated Finance

Asset Backed Finance

Eastdil Secured

Wells Fargo Securities


6,917

8,331

10,068

2011 2012 2013

Commercial Real Estate financial performance

CAGR = 20.6%


CAGR 2011 – 2013

PTPP: 23.8% (1)

Net income: 37.3%

1,811 2,322 2,517

2011 2012 2013

Total Revenue

CAGR = 17.9%

($ in millions)


47,412

58,709 62,612

2011 2012 2013

CAGR = 14.9%



8%

80%

Commercial Real Estate’s revenue diversification

2011 2012 2013


2013 Revenue

19%

16% 20%

81%

84% 80%

Noninterest Income

Net Interest Income

2% Commitment and LC Fees

Net Interest Income

2% Treasury Management 2% ADC & Equity Investment

Investment Banking & Capital Markets

1% CMBS

2% Risk Management 3% Other


Competitive positioning and advantages

Experienced long-term commercial real estate management and relationship team in all markets with long local market tenure

Trusted advisor and certainty of execution, experience, and understanding of complex real estate transactions

Consistent commercial real estate lending and unwavering commitment to industry through all cycles

Strong balance sheet and willingness to use that balance sheet with larger hold positions across all property types

Evolved from simply providing credit, CMBS, and capital markets and advisory services (through Eastdil Secured) to fully integrated platform


Strong balance sheet leads to top market share

Rank Bank Outstandings ($ in millions)

% of Top 20 Banks

1 Wells Fargo $129,254 22%

2 JP Morgan $79,540 14%

3 Citi $73,728 13%

4 Bank of America $68,774 12%

5 US Bancorp $39,353 7%

6 PNC $32,653 6%

(1) Source: Federal Reserve Form FRY-9C Filings. Includes HFS, foreign, and other loans secured by RE as of 12/31/13. Top 20 Banks represents 35% of total industry bank lending.

Market Share by Commercial Real Estate Outstandings (1)


Consistent Commercial Real Estate lending through cycles

Strong balance sheet, industry commitment, and track record of performance through all cycles

Wells Fargo commercial real estate platform held relatively consistent origination levels

during 2008 – 2013 (1), benefitting our reputation and our experience

(1) MBA Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, years ending 12/31/08 - 12/31/13.

Year

Number of Wells Fargo

transactions (1)

Wells Fargo transaction volume (1)

($ in millions)

Percent of total transactions in

market (1)

2013 10,477 $80,578 15.2%

2012 8,646 $63,806 16.9%

2011 7,767 $60,213 20.7%

2010 7,078 $44,845 25.8%

2009 7,705 $27,103 24.3%

2008 9,521 $37,566 15.5%


Trusted advisor with experienced local teams

Presence/coverage in markets across the U.S. Commercial real estate teams have in-depth

market knowledge and expertise that drive collaboration in the underwriting process across the entire platform

Average tenure for senior leaders is 24 years;

have managed through four market cycles Average tenure for team members is 11 years;

have experienced toughest market cycle

Ranked #1 in both loan volume and originations in the following growth markets in 2013 (1)

Charlotte, NC

Denver, CO

Los Angeles, CA

Miami & Orlando, FL

New York City, NY

Phoenix, AZ

Sacramento, CA

Salt Lake City, UT

San Diego, CA

San Francisco & San Jose, CA

Seattle, WA

Washington, DC

(1) MBA Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, year ending 12/31/13. Includes Eastdil Secured.


The fully integrated platform

With a comprehensive, end-to-end real estate platform, Wells Fargo offers customers a broad platform of individual asset acquisition and balance sheet solutions to meet their investment, capital, and liquidity needs.

Customer

Individual asset acquisition solutions

Balance sheet (capital and liquidity) solutions

Asset level

banking

Corporate investment

banking

Commercial real estate lending

CMBS, mezzanine & warehouse lending

Loan syndications

Debt placement

Loan & property sales

Securities

Private & public equity

Public debt

Advisory / M&A


The strength of cross-sell

CRE is a credit business with a 93% credit product penetration rate

83% of CRE relationships also have a Treasury Management product with Wells Fargo

Top 50 CRE credit relationships have an average of 14 bank products and an average

tenure of 17 years with Wells Fargo

0% 10% 20% 30% 40%

Risk Management

Investments


Corporate Trust

Insurance

International

Shareowner Services

Cross-sell Product Penetration, by Product Family

Data as of February 2014 for Commercial Real Estate relationships >$10K PTPP.


Key growth opportunities

Opportunistic loan purchases from de-leveraging U.S. and European banks

Active internal programs to increase cross-sell across the platform and with additional bank products

Expansion of Homebuilder Banking division and launch of focused Senior Housing division

Relationship model allows focus on repeat business with those who provide the highest percentage of revenue

Expansion into U.K. and Canadian markets


U.K. expansion

2013 strategic acquisition of a £4.0 billion ($6.05 billion) portfolio of commercial real estate loans comprised of high-quality institutional assets throughout the U.K. with a focus in London. New CRE U.K. team has a strong, 20-year history in London and recognition as a market leader in the commercial real estate industry. The addition of the CRE U.K. team enables Wells Fargo to: Develop and deepen customer relationships where our

customers are going

Continue to grow our business and that of our customers in the U.K.

Layer our relationship model on top of the existing long-term relationships that the CRE U.K. team already has in place

Leverage the status of our platform to bring in new U.K.-based customers


Strong relationship model built for growth with public companies

RLJ Lodging Trust

(NYSE: RLJ)

Customer since 2002

Credit facility lead arranger and administrative agent

Unsecured term loan lead arranger and administrative agent

Bookrunner on initial public offering and first follow-on equity offering (1)

Interest rate risk management (2)

Cash management services / treasury management (3)

Shareowner services

Chesapeake Lodging Trust

(NYSE: CHSP)

Customer since 2010

Administrative agent and co-lead arranger on revolving credit facilities

Balance sheet lender for secured term loans

Physical bookrunner on preferred offering (1)

Bookrunner on follow-up equity offerings (1)


Treasury management (3)

(1) Wells Fargo Securities is the trade name for the capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including but not limited to Wells Fargo Securities, LLC, a member of NYSE, FINRA, NFA and SIPC, Wells Fargo Institutional Securities, LLC, a member of FINRA and SIPC, Wells Fargo Prime Services, LLC, a member of FINRA, NFA and SIPC, and Wells Fargo Bank, N.A. Wells Fargo Securities, LLC carries and provides clearing services for Wells Fargo Institutional Securities, LLC customer accounts. (2) Derivative products are offered by Wells Fargo Bank, N.A. and are not bank deposits or FDIC insured. (3) Member FDIC. (4) Products and services are offered through Wells Fargo Insurance Services USA, Inc., and Wells Fargo Insurance Services of West Virginia, Inc., non-bank insurance agency affiliates of Wells Fargo & Company. Products and services are underwritten by unaffiliated insurance companies except crop and flood insurance, which may be underwritten by an affiliate, Rural Community Insurance Company. Some services require additional fees and may be offered directly through third-party providers. Banking and insurance decisions are made independently and do not influence each other.

The Macerich Company

(NYSE: MAC)

Customer since 1995

Administrative agent and lead arranger on secured credit facilities

Joint lead arranger on unsecured credit facility

Balance sheet term and construction financing

Bookrunner on follow-on equity offerings (1)


CMBS financing

Property sales advisory

Insurance services (4)

Brixmor Property Group

(NYSE: BRX)

Customer since 2011

Joint lead arranger for unsecured credit facility and unsecured term loan

Bookrunner on initial public offering (1)


CMBS and balance sheet financing



Strong relationship model built for growth with private developers

Range of solutions

Commercial real estate platform Eastdil Secured

Term financing

3, 5, 7, 10 year available

Non-recourse and recourse financing

Bridge financing

Incremental financing to permanent takeout through potential sale or refinancing

CMBS financing

Attractive current market interest rates

Moderate to higher leverage available in the CMBS market

Non-recourse financing

5, 7, 10 year available

Loan syndications

Access to broader real estate debt market via loan syndications

Property sale advisory

Ability to maximize value of asset

Contribution to REIT via OP units, which provide tax protection and potential for upside participation

Capability to access global capital sources

Private equity

Arrange third party capital infusion while maintaining control of the asset

Secured debt placement

Provide access to broader life insurance, pension fund, and offshore financing opportunities

Hypothetical situation:

A developer owns a shopping center with short-term financing coming due and overall liquidity needs. The Wells Fargo platform has a uniquely broad set of solutions to offer.

Approach:

Understand the customer’s specific situation and relevant available products to deliver a solution that is designed to achieve the customer’s objectives.

All securities products and services offered through Wells Fargo Securities, LLC.


Differentiating factors

Strong industry focus and willingness to use our balance sheet to provide certainty of execution at all times for our relationships

Proven ongoing commitment to industry and relationships by remaining an active force in the market through all cyclical environments

Team of commercial real estate professionals with long average tenures and experience through difficult economic environments

Uniquely broad and diverse platform makes us a one-stop shop for all financial solutions for this sector


Treasury Management

Danny Peltz

Executive Vice President Head of Treasury Management


A core relationship product

Treasury Management supports Wholesale, Business Banking, and Wealth Management customers

Treasury Management, along with credit, is a cornerstone of healthy, long-term relationships

It is the financial heartbeat our customers depend on to run their businesses day to day

And it helps us understand our customers’ businesses better

Our solutions give customers technology-based workflows to manage cash flows and optimize working capital availability

A full service offering

Payments ACH

Wires

Commercial Card

Controlled Disbursements

Collections Lockbox

Cash Vault

Merchant Solutions

Electronic Receivables

Information Intraday Visibility

Multibank Reporting

Cash Forecasting

Deposits Sweep Services

Investment Balances

Multicurrency Accounts

Channels Commercial Electronic Office® portal

Direct Data Connections

Mobile


Competitive advantages

Size and scale

Single nationwide service and delivery platform

Comprehensive suite of products for all market segments

#1 industry rank in ACH payments, with a proprietary platform that enables us to make changes quickly to meet new market opportunities (1)

Depth of experience in our business

TM Operating Committee members with an average of 20 years of Wells Fargo experience

3,800 team members vertically integrated across the sales, product, and service delivery lifecycle, with an average of 13 years at Wells Fargo

Culture of continuous improvement

Market-leading ethnography discipline strengthens relationships and solicits feedback on customers’ emerging needs

15+ years of investment in product innovation and payments technology, outpacing competitors

(1) NACHA - The Electronic Payments Association, 2014.


A single nationwide platform

Sales Consultant locations (134)

Lockbox sites (19)

Cash Vault sites (122)

Placing our sales people and product delivery where customers do business


0

200

400

600

800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

A single online portal for the entire relationship

The Commercial Electronic Office® (CEO®) portal extends our reach

(1) Active users are those with a log-in in the 6 months ending December 31, 2013.

2013 highlights

$11.5 trillion moved online

52 million logins

87 applications

Active CEO users (1)

(thousands)

Warehouse Finance

Self Administration

Remote Deposit

Insurance

FX

Trust & Investments

Wires & ACH Payments

Commercial Card Reporting

Cash Forecasting

Market-Linked Investments

Health Savings Accounts

CEO Mobile Channel

Mutual Fund Trading

Credit & TM Reporting

676


Market recognition

Independent customer

surveys confirm we exceed

expectations

Received A+ or A grades in 17 of 25 product qualities in a survey of middle-market customers (1)

- More than twice the number of A+ grades than the rest of the top five U.S. banks combined

Received A+ or A grades in 22 of 25 product qualities in a survey of large corporate customers (1)

- More A+ grades than the rest of the top five U.S. banks combined

(1) 2014 Phoenix-Hecht® Quality Index™.

How customers rate Wells Fargo Treasury Management (1)

Customer service

Relationship Manager overall

effectiveness

Product Average

Large Corporate A+ A+ A+

Middle Market A+ A A


Voice of the

Customer

Leadership in execution

Our approach puts the customer at the center of everything we do

Easy to do business with

Local distribution

Innovative product solutions

Build vs. buy philosophy

Continuous investment in our people

Multi-channel access

Align with relationship business

Delivery as competitive advantage

Anytime anywhere

Attract & cultivate talent

Highly integrated & customizable

Differentiated products


Investing for the future

We can no longer build for this

without delivering to all of these

Our competitive edge is increasingly based on how, not just what, we deliver


13%

25%

62%

Opportunity to continue to grow share

We have been growing twice as fast as the 3% rate of the industry as a whole (1)

The depth of our relationships allows us to continue to sell more products to our customer base

We have significant opportunity to grow business with every customer segment we serve

(1) Ernst & Young: 2013 Cash Management Survey of fee-equivalent revenues.

Providers ranked 6-20

Top 5 providers

Remaining 30 providers

We have the #3 share of the $16.8B U.S. Treasury Management market (1)


Growing by deepening relationships

We expanded our sales force 16% in the past 3 years, and have invested in internal tools and training to empower effectiveness in the field

Sales teams are organized and dedicated to specific market opportunities

Relationship segments

Geographic coverage aligns sales consultants with relationship teams

Commercial Banking

Corporate Banking

Business Banking

Wealth Management

Industry verticals

Deep industry expertise ensures our products fit customers’ needs

Retailers

Gaming

Energy / Utilities

Government

Education

Healthcare


Commercial Real Estate

Dealer Financial Services

Specialized products

Specific product expertise requires dedicated sales teams

Commercial Card

Merchant Card

Complex Electronic Commerce Solutions

International Treasury Management


Capturing opportunities for growth

Commercial Card

Aligning our customer solutions

with market trends

Fastest growing product in the industry, as customer use extends beyond T&E to invoice payments (1)

Wells Fargo commercial card purchasing volume has a 26% CAGR over the past four years

We are #5 in the market, with ample room to grow (1)

Paper to electronic

Customers look to us as a trusted adviser to facilitate change in their business processes

High-cost treasury operations are pushing customers to shift to electronic and automated tools

Integrating their systems with our platforms enables customers to realize efficiencies of straight-through processing

Rising rates

As day-to-day value of working capital increases, customers invest in more sophisticated Treasury Management solutions

Treasurers look to increase visibility and improve payment and collection controls

Smarter TM solutions accelerate the cash conversion cycle and deliver value directly to customers’ balance sheets

(1) Ernst & Young: 2013 Cash Management Survey of fee-equivalent revenues.


Summary

A core product for all relationships

Proven leadership

Investing for the future

Solution expertise to meet evolving customer needs

Positioned for growth

Biographies


Wholesale Banking 86

Timothy (Tim) J. Sloan is the head of the Wholesale Banking group and oversees Asset Management, Capital Markets, Commercial Banking, Commercial Real Estate, Asset Backed Finance, Equipment Finance, Corporate Banking, Insurance, International, Investment Banking, and Treasury Management groups as well as Wells Fargo Capital Finance. Tim serves on the Wells Fargo Operating and Management Committees and is based in Los Angeles.

A 27-year veteran of Wells Fargo & Company, Tim most recently served as the chief financial officer and was responsible for the financial management functions and the company’s corporate properties functions. Prior to that, Tim was chief administrative officer and managed Corporate Communications, Corporate Social Responsibility, Enterprise Marketing, Government Relations, and Corporate Human Resources for the enterprise.

From 1991 to 2010, Tim served in various leadership roles in Wholesale Banking including head of Commercial Banking, Real Estate and Specialized Financial Services. Prior to joining Wells Fargo as a vice president with the Loan Adjustment Group in 1987, he worked for three years at Continental Illinois Bank in Chicago.

Tim earned his B.A. in economics and history and his M.B.A. in finance and accounting, both from the University of Michigan in Ann Arbor.

With a strong commitment to community, Tim serves on the Board of Overseers of the Huntington Library, and is a member of the University of Michigan’s Ross School of Business Advisory Board. He is a trustee of Ohio Wesleyan University and the City of Hope.

Tim Sloan Senior Executive Vice President, Wholesale Banking



Perry Pelos is an executive vice president and group head of the Wells Fargo Commercial Banking Group. He is based in San Francisco. Commercial Banking provides loans, treasury management, and deposit products for middle-market businesses. The Commercial Banking group at Wells Fargo does more business with middle-market companies than any other bank in the United States.

Perry joined Wells Fargo in 1987 in the company’s Commercial Banking training program. He had several roles in Commercial and Corporate Banking, culminating with his heading the Corporate Banking Division in 1998. In 2000, he was named division manager for the Commercial Banking Central division. Perry assumed the role of group head of the Commercial Banking Group in 2010.

Perry received his B.A. in economics from Northwestern University and his M.B.A. in finance and accounting from Northwestern’s J.L. Kellogg Graduate School of Management.

His outside interests include board roles at the Bay Area Leadership Foundation, an organization that provides a path to college and career success for at-risk youth, and he is a board member and treasurer of the Bay Area Council, a business-sponsored, public-policy advocacy organization for the nine-county Bay Area. He currently serves as the co-chair of the Bay Area Community Support Campaign for Wells Fargo.

Perry Pelos Executive Vice President, Commercial Banking



Mike Johnson is an executive vice president and heads the Wells Fargo Corporate Banking Group. The group consists of a broad range of large corporate and industry specialized relationship businesses, including U.S. Corporate Banking, Financial Institutions, Energy, Healthcare, Power and Utilities, Gaming, Restaurant Finance, and Financial Sponsors. These businesses have aggregate loan commitments of approximately $107 billion and have more than 670 team members working in 37 offices across the United States. In addition, Mike oversees the Equity Funds Group, which manages a $2.4 billion portfolio of equity fund investments and select direct equity investments. He is based in San Francisco.

Mike joined Wells Fargo 31 years ago and has more than 35 years of diverse professional experience in corporate finance, commercial real estate, investment management, and capital markets. Prior to his current role, he was responsible for the Wells Fargo Debt Capital Markets and Investment Banking units as well as certain specialized relationship businesses; Debt Capital Markets included syndicated finance and private placements for corporate and commercial real estate borrowers.

A Kansas native, Mike earned his B.S. in business administration from Kansas State University in Manhattan, Kansas.

Active in the community, Mike serves on the Leadership Council for The Nature Conservancy of California and volunteers for Habitat for Humanity and other non-profits.

Mike Johnson Executive Vice President, Corporate Banking Group



Mark Myers is an executive vice president and heads the Wells Fargo Commercial Real Estate Group. Operating in regional offices in key cities throughout the United States as well as international operations in Toronto and London, Commercial Real Estate provides a comprehensive platform of banking and financing solutions to regional/national owners, operators and developers, institutional real estate funds, and REITs.

During Mark’s 30-year affiliation with Wells Fargo, he has held a number of senior leadership positions in the Real Estate, Corporate, Capital Markets and Special Situation Groups. Based in San Francisco, Mark is a member of Wells Fargo’s Management Committee.

Mark earned his B.S. degree from the University of California, Berkeley, and an M.B.A from the University of Oregon.

He currently serves on the board of trustees of the International Council of Shopping Centers (ICSC), as a trustee of the Urban Land Institute (ULI), is a member of the Real Estate Roundtable and is on the Policy Advisory Board Executive Committee of the Fisher Center for Real Estate at the University of California, Berkeley. Additionally, he serves as a member of various community and nonprofit boards.

Mark Myers Executive Vice President, Commercial Real Estate



Danny Peltz is an executive vice president and head of Wells Fargo Treasury Management, which offers the industry’s leading treasury solutions on a single, nationwide platform. Based in San Francisco, he is also a member of the Wells Fargo Management Committee.

Danny leads a team of more than 3,800 sales, marketing, product, implementation, operations, and service professionals. He also oversees Health Benefits Services, a premier provider of health savings accounts, and Wholesale Internet Solutions, which manages Wells Fargo’s internet and mobile channels for commercial customers, including the award-winning Commercial Electronic Office® (CEO®) portal.

A 24-year company veteran, Danny has been at the forefront of the paper-to-electronic revolution. Under Danny’s leadership, Wells Fargo has become an industry leader with world-class products and services.

Danny earned his bachelor’s degree from the University at Albany, State University of New York, graduating magna cum laude. He also has a master’s in business administration, with a focus in finance, from the University of Chicago, graduating with highest honors.

Danny Peltz Executive Vice President, Treasury Management


Wholesale Banking Presentation

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