Wells Fargo & Company (WFC) 8-K Results of Operations and Financial Condition

News Release
Corporate Communications

Media		Investors
Mary Eshet	Julia Tunis Bernard	Bob Strickland	Jim Rowe
704-383-7777	415-222-3858	415-396-0523	415-396-8216

Wednesday, October 21, 2009
WELLS FARGO REPORTS RECORD Q3 AND YEAR-TO-DATE NET INCOME

• 3^rd consecutive quarter of record earnings

– Record Wells Fargo net income of $3.2 billion, up 98 percent from last year; $9.5 billion year to date, up 75 percent from last year

– Diluted earnings per common share of $0.56, up 14 percent from last year; $1.69 per share year to date

– Results driven by record $10.8 billion pre-tax, pre-provision profit (PTPP); PTPP has been more than two times quarterly net charge-offs each quarter this year, despite cyclically elevated net charge-offs. (See footnote 4 on page 20 for information on PTPP)

• Continued strong revenue

– Revenue of $22.5 billion, flat with record revenue in second quarter 2009

– $169 billion of credit extended to customers in the quarter

– Average checking and savings deposits up 11 percent (annualized) from prior quarter

– Net interest margin of 4.36 percent, up 6 basis points from prior quarter

– Cross-sell for legacy Wells Fargo a record 5.90 for retail bank households

– Broad-based revenue contribution from diverse businesses, including double-digit linked-quarter growth in asset management, auto lending, consumer finance, debit cards, retirement services, SBA lending and wealth management, along with continued strong performance from regional banking and mortgage banking

• Significant increases in capital, reduction in risk

– Wells Fargo stockholders’ equity increased to $122 billion (10 percent of total assets), up $23 billion from year end

– Generated $20 billion during the past six months toward the $13.7 billion Supervisory Capital Assessment Program (SCAP) buffer requirement; PTPP tracking above Company’s internal SCAP estimates and 35 percent above supervisory adverse scenario estimate

– Credit reserves built by $1.0 billion ($3.0 billion year to date), reaching $24.5 billion, or 3.07 percent of total loans and 118 percent of nonaccrual loans

– Substantial increases in capital ratios driven by record retained earnings and other sources of internal capital generation

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	Sept. 30,			June 30,		Dec. 31,
(as a percent of total risk-weighted assets)	2009 (1)			2009		2008
Tier 1 capital		10.6	%		9.8		7.8
Tier 1 common equity (2)		5.2			4.5		3.1
Tier 1 leverage		9.0			8.3		14.5	(3)
Total capital		14.7			13.8		11.8

(1)	September 30, 2009, ratios are preliminary.
(2)	See table on page 38 for more information on Tier 1 common equity.
(3)	Based on average Q4 2008 Wells Fargo assets only, excludes Wachovia.

– Reduced non-strategic/liquidating loans by $5.7 billion in the quarter

– FAS 166/167 expected to add approximately $28 billion to risk-weighted assets upon adoption in 2010

• Current projections show credit losses peaking in 2010, with consumer losses potentially peaking in first half of the year and gradually declining, absent further economic deterioration

– Growth in nonperforming loans and net charge-offs slowing as of third quarter, for consumer and commercial portfolios

– Credit performance of recent vintage legacy Wells Fargo consumer portfolios improving, largely the result of proactive credit management over past two years

– 90 days past due and still accruing levels flat with second quarter; consumer 90 days past due and still accruing declined from prior quarter

– Significantly smaller credit card portfolio than large bank peers

– Pick-a-Pay portfolio currently estimated to have lower life-of-loan losses than originally estimated, driven in part by extensive and successful loan modification efforts

– Collateral values improving in auto market and housing prices stabilizing in many regions

– Legacy Wells Fargo commercial and commercial real estate portfolio well underwritten and diversified; Wachovia commercial and commercial real estate portfolio marked down at merger close at end of last year

– Legacy Wells Fargo loss rate of 3.37 percent, below large bank peers; overall loss rate of 2.50 percent reflected benefit of purchase accounting on Wachovia loan portfolio; combined losses less than half of Company’s quarterly PTPP

• Wachovia integration on track and on schedule

– Estimated cumulative merger expenses reduced to approximately $5.5 billion from $7.9 billion; on track to achieve $5.0 billion annual run-rate cost savings by completion of integration in 2011

– Cross-sell revenues already being realized

– Credit overall performing in line with original expectations

– First state community bank conversion (Colorado) scheduled for November; conversion of remaining overlapping markets expected in 2010

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• Increased loan modifications

– Provided 62,989 trial and completed modifications through theHome Affordable Modification Program(HAMP) and 292,005 through Company’s proprietary programs, bringing total this year through September 30, 2009, to 354,994

– Refinanced 987,000 customers’ mortgages using theHome Affordable Refinance Program (HARP) and other standard refinance programs

– Over 20 percent of PCI Pick-a-Pay portfolio modified through September 30, 2009, with positive early performance

Selected Financial Information

						Nine
						months
	Quarter ended					ended
	Sept. 30,			June 30,		Sept. 30,
	2009			2009		2009
Earnings
Diluted earnings per share	$	0.56			0.57		1.69
Wells Fargo net income (in billions)		3.24			3.17		9.45
Asset Quality
Net charge-offs as % of avg. total loans		2.50	%		2.11		2.05
Nonperforming loans as % of total loans		2.61			1.92		2.61
Allowance as a % of total loans		3.07			2.86		3.07
Other
Revenue (in billions)	$	22.47			22.51		65.99
Average loans (in billions)		810.2			833.9		833.1
Average core deposits (in billions)		759.3			765.7		759.7
Net interest margin		4.36	%		4.30		4.27

SAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported diluted earnings per common share of $0.56 for third quarter 2009 compared with $0.57 for second quarter 2009 and $0.49 for third quarter 2008. (Results prior to January 1, 2009, do not include Wachovia.) Wells Fargo net income was a record $3.24 billion for third quarter 2009, up 98 percent from last year, and a record $9.45 billion for the first nine months of 2009, up 75 percent from last year.

“Doing what’s right for our customers again proved to be right for our stockholders as our talented team members earned even more of our customers’ business, enabling us to achieve our third consecutive quarter of record earnings,” said President and CEO John Stumpf. “The Wells Fargo-Wachovia merger, agreed to a year ago, is exceeding our expectations and already adding value for many of our 70 million customers across North America. Merger costs have been significantly less than originally expected. With our 80-plus businesses pulling the stagecoach, the diversity of our business model again showed significant power to generate capital internally. We had solid performance across our company – especially among counter-cyclical businesses such as deposits, residential mortgages, debit card and asset-based lending. We’re also doing what’s right for our mortgage customers having difficulty making their payments on time. We’ve offered home payment relief to 1.3 million customers so far this year,

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including 355,000 loan modifications. We now have 13,000 team members working on helping customers stay in their homes and our delinquency and foreclosure rates continue to be well below the industry average. As we’ve already announced, Dick Kovacevich will step down as chairman and a director at the end of 2009 and retire from the Company in early 2010. I am grateful to Dick and to Wells Fargo’s leadership team and believe we have the strongest, most experienced team of senior leaders in all of financial services. They’ve led our businesses to a strong third quarter, following two consecutive quarters of record earnings, despite the economic recession. This is something that few, if any, financial services companies have achieved – and during the most challenging credit cycle in recent memory and while we continue to build reserves.

Wells Fargo has always been committed to providing clear, complete, and transparent communication about the Company’s results to all of its stakeholders. As we enter the second year of the merger with Wachovia, we will be expanding our quarterly communications to include a live quarterly earnings conference call – starting in January for our fourth quarter and full year 2009 results – and we will also host an investor day in 2010.”

Financial Performance

“Third quarter results again illustrated the Company’s ability to profitably grow, even through the downward cycle despite elevated credit losses,” said Chief Financial Officer Howard Atkins. “Since the merger with Wachovia at year-end 2008, we’ve earned a record $9.45 billion, even after building credit reserves by $3.0 billion and recording $1.4 billion of other-than-temporary impairment (OTTI) charges. Pre-tax pre-provision profit has grown every quarter this year, reaching a record $10.8 billion in the third quarter, more than double quarterly net charge-offs. While mortgage origination and hedging results contributed to our performance, collectively all of our other businesses have also grown PTPP each quarter this year reflecting the breadth of our diversified business model, record levels of sales and cross-sell, the realization of revenue synergies from the combination with Wachovia, and further improvements in our net interest margin to 4.36 percent and efficiency ratio to 52.0 percent. We continued to maintain what we believe is one of the strongest balance sheets in banking, building credit reserves by $1.0 billion in the quarter to $24.5 billion, or 3.07 percent of total loans, reducing previously identified non-strategic and liquidating loan portfolios to $152.7 billion, down over $14 billion from year end, and reducing the value of our debt and equity investment portfolios through $396 million of OTTI. Also, in line with lower mortgage rates, the ratio of mortgage servicing rights (MSRs) as a percentage of loans serviced for others was 83 basis points, the third lowest ratio in our Company’s history and a level considerably lower than our mortgage peers.

“We have significantly built capital, increasing common stockholders’ equity to $123 billion, up $23 billion so far in 2009 and increasing Tier 1 common to 5.2 percent, nearly two times our capital position at year-end 2008. Nonperforming loans and net charge-offs increased in the quarter, but the rate of growth of nonperforming loans has declined each quarter so far this year. While the level of nonperforming assets and losses is expected to remain elevated for a period of time, we currently expect

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total credit losses to peak in 2010, with consumer losses potentially peaking in the first half of the year and gradually declining as the year progresses, absent any further deterioration in the U.S. economy. Our credit reserves as of September 30, 2009, reflect an improvement in consumer loss emergence with almost all of the current quarter reserve build covering higher commercial loss emergence.

“Operationally and financially, the Wachovia merger is exceeding our expectations. Structurally, the merger leaves us with an even more diversified business than legacy Wells Fargo alone – less geographic concentration, an even wider array of products and services, better balance between consumer and commercial businesses, and an equal split between spread income and fee income. We are currently on track to realize our objective of $5.0 billion in annual run-rate savings when we complete the integration in 2011, with about 30-40 percent of those savings now beginning to be realized in our expense run-rate. We now expect to spend about $2.4 billion less in merger and integration costs than previously expected to achieve the run-rate savings, largely because proportionately more of the labor savings are being realized through attrition instead of severance and because we’re spending less than planned on building disposition, as we fill unoccupied space with third party tenants. We are ahead of plan in shedding asset risk from businesses that do not meet our financial and strategic criteria and in retaining deposits and customers. We’re already realizing meaningful revenue synergies, an important driver of our earnings this year. Because Wachovia’s credit-impaired loan portfolios were written down at the close of the merger at the end of last year, Wachovia is now contributing to the Company’s rapid internal capital growth.”  

Revenue

Revenue of $22.5 billion remained at near-record levels following strong first and second quarters. Relative to the pre-Wachovia third quarter a year ago, the Company’s assets almost doubled, while total revenue has substantially more than doubled, despite the weak economy and despite the reduction in non-strategic/liquidating loan and asset portfolios. The high levels of revenue generated in the third quarter related to several factors:

• Continued strong core deposits reflecting 11 percent (annualized) growth in checking and savings, 25 percent (annualized) growth in wholesale banking core deposits and 10 percent (annualized) growth in wealth management core deposits. Wachovia’s deposit pricing has been conformed to that of Wells Fargo, with continued better-than-planned retention of Wachovia’s maturing higher-rate CDs (57 percent retained in third quarter). The average cost of all core deposits declined to 41 basis points in the quarter, the principal reason for the Company’s 4.36 net interest margin, highest among large bank peers.

• The Company remained an industry leader in making credit available to U.S. consumers and businesses. Total credit supplied in the quarter through mortgage originations and new/increased credit facilities was $169 billion, one of the main drivers of continued strong loan fees, even though loan demand remained soft in the quarter.

• Record core product solutions (sales) and record cross-sell in regional banking for legacy Wells Fargo.

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• Broad-based revenue growth across multiple businesses, including double-digit (annualized) linked-quarter growth in asset management, auto lending, consumer finance, debit card, retirement services, SBA lending and wealth management. Linked-quarter growth in these businesses was partially offset by more modest mortgage revenue, lower investment banking revenue and seasonal decline in insurance revenue.

• While mortgage originations and servicing revenue remained high, total mortgage banking noninterest income represented less than 15 percent of consolidated company revenue, reflecting the breadth and depth of the Company’s business model.

Net Interest Income

Net interest income was $11.7 billion, compared with $11.8 billion in second quarter 2009. While the net interest margin improved to 4.36 percent, average earning assets were down $23.7 billion linked quarter, reflecting soft loan demand and reductions in non-strategic/liquidating assets. While average investment securities were up $7.3 billion, this largely reflected the averaging effect in the quarter of mortgage-backed securities (MBS) purchased late in the second quarter at yields more than 1 percent above current market. During the third quarter, $23 billion of the lowest-yielding MBS were sold to reduce exposure to higher long-term interest rates.

Loans

Average total loans were $810.2 billion compared with $833.9 billion in second quarter 2009, as consumer and commercial demand for credit remained moderate and the Company continued to reduce certain higher-risk loan portfolios. The decline in average loans included a reduction of $5.7 billion linked quarter in the non-strategic and liquidating loan portfolios that the Company has been exiting, such as indirect home equity and indirect auto from legacy Wells Fargo, and Wachovia’s Pick-a-Pay and commercial real estate portfolios.

Deposits

Average total core deposits were $759.3 billion compared with $765.7 billion in second quarter 2009. During the quarter, $38 billion of Wachovia’s higher-rate certificates of deposit matured, with $22 billion of those balances retained. “We continued to gain new deposit customers and deepen our relationship with existing customers,” said Atkins. Average checking and savings deposits increased 11 percent (annualized) to $629.6 billion from $613.3 billion in second quarter 2009. Average mortgage escrow deposits were $28.7 billion compared with $32.0 billion in second quarter 2009. Average consumer checking accounts at legacy Wells Fargo grew a net 6.4 percent from third quarter 2008 and, for Wells Fargo and Wachovia combined, grew a net 5.2 percent in California for the same period.

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Noninterest Income

Noninterest income of $10.8 billion was flat compared with $10.7 billion in second quarter 2009 and included:

• Mortgage banking income of $3.1 billion, including:

– $1.1 billion in revenue from mortgage loan originations/sales activities on $96 billion of residential mortgage originations

– $1.5 billion combined market-related valuation changes to mortgage servicing rights (MSRs) and economic hedges (consisting of a $2.1 billion decrease in the fair value of the MSRs more than offset by a $3.6 billion economic hedge gain in the quarter), largely due to hedge-carry income reflecting the current low short-term interest rate environment, which is expected to continue into the fourth quarter; MSRs as a percentage of loans serviced for others reduced to 0.83 percent; average servicing portfolio note rate was only 5.72 percent.

• Trust and investment fees of $2.5 billion, up 15 percent (annualized) linked quarter primarily reflecting an increase in client assets, bond origination fees, and higher brokerage revenue as the Company further builds its retail securities brokerage business

• Service charges on deposit accounts of $1.5 billion, up 8 percent (annualized) linked quarter driven by continued strong checking account growth

• Card fees of $946 million, up 10 percent (annualized) linked quarter reflecting seasonally higher purchase volumes and higher customer penetration rates

• Net losses on debt and equity securities totaling $11 million, including $396 million of OTTI write-downs and $120 million of realized gains on the sale of MBS in the third quarter. After having purchased over $34 billion of agency MBS in the second quarter of 2009 at yields more than 1 percent above the current market, the Company sold $23 billion of its lowest-yielding MBS after long-term interest rates declined in the third quarter.

Due to the general decline in long-term yields and narrowing of credit spreads in the quarter, the Company’s net unrealized securities gains, reflected in equity, increased to $6.6 billion at September 30, 2009, from net losses of $400 million at June 30, 2009.

Noninterest Expense

Noninterest expense declined to $11.7 billion from $12.7 billion in the second quarter, which included $565 million of FDIC deposit insurance assessments. The balance of the decline in third quarter expense was due to merger consolidation savings and ongoing expense management initiatives. “We currently expect cumulative merger integration costs of approximately $5.5 billion, down from our previous $7.9 billion estimate,” said Atkins. “The revised estimate reflects lower owned real estate write-downs and lower estimated severance costs since a greater proportion of labor savings is being realized through attrition. Of this $5.5 billion, we’ve spent $1.0 billion merger to date, including $200 million in the third quarter. Of the amount spent thus far, $444 million has been recorded through the income statement and $559 million has been recorded through purchase accounting adjustments to goodwill. A portion of the

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remaining integration costs will be charged to goodwill in the fourth quarter under purchase accounting. The balance of the cumulative estimated integration costs are expected to be expensed over the next two years, and are likely to be offset by merger-related savings during this period. We remain on track to achieve $5.0 billion in annual run-rate savings upon completion of the integration in 2011. To date, we have achieved approximately 30-40 percent of these savings.” Noninterest expense also included $100 million of additional insurance reserve at the Company’s captive mortgage reinsurance operation and $49 million of non-Wachovia-related integration costs. “As we reduce expenses through consolidation and other expense initiatives, we continue to reinvest in our businesses for long-term revenue growth,” said Atkins. “During 2009, we’ve opened 41 banking stores and converted 1,274 ATMs toEnvelope-Free^SMwebATM machines. We have also continued to increase the level and productivity of our sales force in community banking, commercial banking and wealth management. We continue to manage to a variable expense base in the mortgage company. Part-time staff was reduced in third quarter as application volume declined, and increased again in September and early in the fourth quarter as applications increased.” The Company’s efficiency ratio improved to 52.0 percent from 56.4 percent in second quarter and 56.2 percent in first quarter.

Capital

“We have rebuilt capital significantly this year,” said Atkins, “with most of our capital ratios now higher – in some cases substantially so – than they were just before the Wachovia merger a year ago.”

	Sept. 30,			Sept. 30,
(as a percent of total risk-weighted assets)	2009 (1)			2008 (2)
Tier 1 common equity		5.2	%		6.4
Tier 1 capital		10.6			8.6
Tier 1 leverage		9.0			7.5
Total capital		14.7			11.5

(1)	September 30, 2009, ratios are preliminary
(2)	Wells Fargo only, excludes Wachovia

Stockholders’ equity now stands at $122 billion, up $50 billion from a year ago (excluding the U.S. Treasury’s $25 billion Capital Purchase Program investment), up $23 billion from post-merger closing year-end equity and up $8 billion just in the third quarter of this year alone. “In the past year, we have more than doubled stockholders’ equity while significantly reducing risk and increasing internal capital momentum,” said Atkins. Tier 1 common equity grew from second quarter 2009 entirely from internally generated sources – record retained earnings, realization of deferred tax assets and stock issued to the Company’s benefit plans. Through September 30, 2009, the Company generated $20 billion, including the $8.6 billion equity raise in the second quarter, toward the $13.7 billion regulatory capital buffer under SCAP, exceeding the requirement by $6 billion. “A major contributor to our strong results compared with the regulatory SCAP requirement has been our consistent outperformance on pre-tax pre-provision profit year to date, which confirmed the confidence we’ve had from the beginning of this process in the underlying revenue strength of our company and the consistency of our revenue generation even in

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adverse scenarios,” said Atkins. See footnote (4) on page 20 and the table on page 38 for more information.

In January, the Company will adopt FAS 166/167, which will result in the consolidation of certain off-balance sheet assets not currently included in its financial statements. The Company’s current estimate is that FAS 166/167 is expected to add approximately $28 billion in risk-weighted assets. This latest analysis is lower than originally projected primarily due to a reduction in the amount of securitized residential mortgages expected to be consolidated. In addition, the Company continues to explore the sale of certain interests held in securitized residential mortgage loans, which would be expected to reduce further the amount of incremental GAAP assets and incremental risk-weighted assets.

Credit Quality

“While the challenging credit cycle continues and losses remain elevated, we have begun to see early indications of consumer credit stability,” said Chief Credit and Risk Officer Mike Loughlin. “In the third quarter, this stabilization was evident in several consumer loan portfolios, while the consumer real estate portfolio continued to vary across geography. Some real estate markets, such as California, have had increased home sales and home price stabilization and, as these conditions improve in more markets, we expect to see improvement in credit results. Third quarter commercial and commercial real estate losses remained at manageable levels, reflecting the high-quality of Wells Fargo’s commercial loan portfolio and the fact that Wachovia’s commercial and commercial real estate loan portfolios were already written down at the end of last year.

“Nonperforming assets and credit losses increased during the quarter, and once again we increased reserve levels to provide for the additional risk. We expect credit losses and nonperforming assets to continue to increase in the near term, but at a slower rate as we have seen the pace of deterioration slow. Based on our current economic outlook, we expect losses to peak in 2010, with consumer losses expected to peak in the first half of 2010 and commercial and commercial real estate losses expected to peak in the second half of 2010. The recovery may take some time to gain momentum and changes in the economic outlook could affect this time horizon.”

Credit Losses

Third quarter net charge-offs were $5.1 billion, or 2.50 percent of average loans, compared with second quarter net charge-offs of $4.4 billion, or 2.11 percent of average loans. While losses were up in the quarter, the increase in terms of both dollars and percentages moderated from prior quarter growth. The overall quarterly loss rate in the third quarter, 2.50 percent, is substantially lower than reported large peer loss rates partly because Wells Fargo had already written down Wachovia’s higher-risk loan portfolios at year end. Reflecting, in part, stabilizing credit performance, legacy Wells Fargo net charge-offs were $3.4 billion, or 3.37 percent of average loans. Wachovia’s net charge-offs increased to $1.7 billion, or 1.66 percent of average loans, compared with $984 million in second quarter 2009, due to some deterioration in its portfolios and the lagging effect of purchase accounting.

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Total credit losses of $5.1 billion included $1.5 billion of commercial and commercial real estate loans (1.78 percent of average loans) and $3.6 billion in consumer loans (3.13 percent of average loans), as shown in the following table.

Net Loan Charge-Offs (1)

											Quarter ended
	September 30, 2009					June 30, 2009					March 31, 2009
			As a					As a					As a
			% of					% of					% of
	Net loan		average			Net loan		average			Net loan		average
	charge-		loans			charge-		loans			charge-		loans
($ in millions)	offs		(annualized)			offs		(annualized)			offs		(annualized)
Commercial and commercial real estate:
Legacy Wells Fargo	$	862		1.96	%	$	897		2.01	%	$	667		1.48	%
Wachovia		602		1.57			246		0.61			30		0.07
Total commercial and commercial real estate		1,464		1.78			1,143		1.35			697		0.80
Consumer:
Legacy Wells Fargo		2,480		4.50			2,462		4.44			2,175		3.90
Wachovia		1,107		1.87			735		1.22			341		0.56
Total consumer		3,587		3.13			3,197		2.77			2,516		2.16
Foreign
Legacy Wells Fargo		43		3.00			43		3.05			45		3.13
Wachovia		17		0.28			3		0.05			—		—
Total foreign		60		0.79			46		0.61			45		0.56
Total Legacy Wells Fargo		3,385		3.37			3,402		3.35			2,887		2.82
Total Wachovia		1,726		1.66			984		0.92			371		0.34
Total	$	5,111		2.50	%	$	4,386		2.11	%	$	3,258		1.54	%

(1) See explanation on page 40 of the accounting for purchased credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.

“Commercial and commercial real estate charge-offs remained manageable in the third quarter,” said Loughlin. “In fact, legacy Wells Fargo’s commercial and commercial real estate losses declined $35 million, or 4 percent, in the quarter. The increase in commercial and commercial real estate losses was entirely in the Wachovia non-impaired portfolio, in part reflecting the fact that charge-offs are just now coming through Wachovia’s portfolio after having eliminated nonaccruals through purchase accounting at the end of last year. The overall loss rate in third quarter for Wachovia’s commercial and commercial real estate portfolio was roughly comparable to Wells Fargo’s higher-quality commercial portfolio. While the industry is likely to experience elevated commercial and commercial real estate losses, we continue to believe we have one of the best commercial and commercial real estate loan portfolios among large bank peers given our long-standing underwriting discipline and because we wrote down Wachovia’s commercial and commercial real estate portfolio when we closed the acquisition at year end.”

Consumer losses were up 12 percent in the third quarter, with virtually all of the increase in Wachovia’s consumer portfolios. Over 40 percent of the increase in Wachovia consumer loan losses came from the non-impaired Pick-a-Pay portfolio, in large part reflecting the lagging effect of purchase accounting. “We are currently expecting lower life-of-loan losses on the non-impaired Pick-a-Pay portfolio than originally assumed at the time of the merger,” said Loughlin. Overall losses on legacy Wells Fargo’s consumer

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portfolio were essentially flat linked quarter. “Given the actions we’ve previously taken to reduce higher-risk portfolios, given the life-of-loan loss write-downs we have taken through purchase accounting and given the substantially smaller exposure to credit cards and sub-prime loans, we are expecting consumer losses to potentially peak in the first half of 2010 and gradually decline as the year progresses.

“We remain comfortable with our original loss estimates for the impaired portfolio from Wachovia, and currently expect life-of-loan losses on the purchased credit-impaired (PCI) Pick-a-Pay portfolio to be lower than original estimates. Also, while increasing this year, losses in the non-impaired Pick-a-Pay portion of the Wachovia portfolio are tracking below our original estimates at the time we acquired Wachovia. We continue to expect the non-impaired portfolios to perform significantly better than the impaired portfolios that have already been written down through purchase accounting, and the Pick-a-Pay portfolio to perform better than other companies’ option adjustable-rate mortgage portfolios.”

Nonperforming assets

Total nonperforming assets (NPAs) were $23.5 billion (2.93 percent of total loans) at September 30, 2009, and included $20.9 billion of nonaccrual loans and $2.5 billion of foreclosed assets (repossessed real estate and vehicles).

Nonaccrual Loans and Other Nonperforming Assets

	September 30, 2009					June 30, 2009					March 31, 2009
			As a					As a					As a
			% of					% of					% of
			total					total					total
($ in millions)	Balances		loans			Balances		loans			Balances		loans
Commercial and commercial real estate:
Legacy Wells Fargo	$	6,037		3.53	%	$	5,260		3.02	%	$	3,860		2.13	%
Wachovia		4,227		2.86			2,333		1.46			645		0.39
Total commercial and commercial real estate		10,264		3.22			7,593		2.28			4,505		1.30
Consumer:
Legacy Wells Fargo		6,293		2.90			5,687		2.59			4,970		2.22
Wachovia		4,168		1.78			2,292		0.96			966		0.40
Total consumer		10,461		2.32			7,979		1.74			5,936		1.27
Foreign		144		0.48			226		0.75			75		0.24
Total nonaccrual loans		20,869		2.61			15,798		1.92			10,516		1.25
Foreclosed assets:
Legacy Wells Fargo		1,756					1,741					1,421
Wachovia		771					783					641
Total foreclosed assets		2,527					2,524					2,062
Real estate and other nonaccrual investments		55					20					34
Total nonaccrual loans and other nonperforming assets	$	23,451		2.93	%	$	18,342		2.23	%	$	12,612		1.50	%
Change from prior quarter	$	5,109				$	5,730				$	3,603

While commercial and commercial real estate nonaccrual loans were up in the quarter, the dollar amount of the increase declined in the quarter and the rate of growth slowed considerably. Legacy Wells Fargo’s commercial and commercial real estate nonaccrual loans increased $777 million. The rate of growth in

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Wachovia’s commercial and commercial real estate nonaccrual loans reflected some deterioration but was in line with management’s expectations.

Similarly, the growth rate in consumer nonaccrual loans also slowed in the quarter. Legacy Wells Fargo’s consumer nonaccrual loans increased $606 million, about 11 percent, reflecting the more moderate deterioration the Company has experienced in consumer loans. Wachovia’s Pick-a-Pay portfolio represents the largest portion of consumer nonaccrual loans. While up $1.2 billion in the third quarter, the increase in nonaccrual loans in the non-impaired Pick-a-Pay portfolio reflected the inflows to nonaccruals expected in the first few quarters after purchase accounting write-downs. The Company continued to actively modify non-PCI Pick-a-Pay loans through the use of troubled debt restructurings (TDRs), which temporarily keeps NPA levels elevated until the modified loans can demonstrate performance. To the extent these nonperforming loans return to accrual status, NPA growth should moderate.

The loss exposure expected in the nonperforming assets is significantly mitigated by three factors. First, 96 percent of our nonperforming loans (NPLs) are secured. Second, losses have already been recognized on 36 percent of the total. Residential real estate NPLs greater than 180 days old, or 41 percent of the total NPLs balance, have been written down to net realizable value. Third, there is a segment of NPLs for which there are specific reserves in the allowance, while other NPLs are covered by general reserves. “We believe that the allowance as of September 30, 2009, fully covers loss content embedded in the September 30, 2009 nonaccrual balances,” said Loughlin.

Loans 90 Days or More Past Due and Still Accruing (1)
(Excluding Insured/Guaranteed GNMA and Similar Loans)
Includes Wells Fargo and Wachovia

	Sept. 30,		June 30,
(in millions)	2009		2009
Commercial and commercial real estate:
Commercial	$	458		415
Real estate mortgage		693		702
Real estate construction		930		860
Total commercial and commercial real estate		2,081		1,977
Consumer:
Real estate 1-4 family first mortgage		1,552		1,497
Real estate 1-4 family junior lien mortgage		484		660
Credit card		683		680
Other revolving credit and installment		1,138		1,160
Total consumer		3,857		3,997
Foreign		76		32
Total loans	$	6,014		6,006

(1) The table above does not include PCI loans that were contractually 90 days past due and still accruing. These loans have a related nonaccretable difference that will absorb future losses; therefore charge-offs on these loans are not expected to reduce income in future periods to the extent that actual future loan performance is consistent with original estimates.

Loans 90 days or more past due and still accruing totaled $18.9 billion at September 30, 2009, and $16.7 billion at June 30, 2009. For the same periods, the totals included $12.9 billion and $10.7 billion,

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respectively, in advances pursuant to the Company’s servicing agreement to Government National Mortgage Association (GNMA) mortgage pools and similar loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

Allowance for Credit Losses

(Includes Wells Fargo and, beginning December 31, 2008, Wachovia)

The allowance for credit losses, including the reserve for unfunded commitments, totaled $24.5 billion at September 30, 2009, compared with $23.5 billion at June 30, 2009. The credit reserve is driven by management’s estimate of inherent losses in the loan portfolio at September 30, 2009. Of the $1.0 billion reserve increase in the third quarter, approximately $900 million reflected continued deterioration in the commercial portfolios. “We continued to see a decline in the quality of our performing commercial and commercial real estate portfolio as well as an increase in the amount of life-of-loan reserves taken on large commercial loans where we believe it is probable that we will not collect all amounts due,” said Loughlin.

The remaining $100 million increase in the reserve relates mostly to the consumer loan portfolio and is principally due to the increasing level of residential real estate loan modifications classified as TDRs. The increased modifications this quarter resulted in an increase in the allowance of approximately $400 million compared with approximately $265 million last quarter. This increase was offset by approximately $345 million release in reserves related to performing consumer loans. “Based on our expectation that consumer related losses will peak in the first half of 2010 and then begin to gradually decline, the allowance required for performing consumer loans has decreased when compared to the allowance at the end of the second quarter 2009,” said Loughlin.

The allowance coverage to total loans increased to 3.07 percent compared with 2.86 percent at June 30, 2009. The allowance coverage to NPLs was 118 percent as of September 30, 2009. “We believe the allowance was adequate for losses inherent in the loan portfolio at September 30, 2009, including both performing and nonperforming loans,” said Loughlin.

Credit Summary

“We are two years into the most difficult credit cycle in recent memory,” said Loughlin. “Economic challenges continue and we expect that credit costs will remain elevated in the fourth quarter. However, based on portfolio trends and our current economic outlook, and assuming no unexpected further deterioration in the economy, we believe consumer loan losses will peak in the first half of 2010 then gradually decline, while commercial and commercial real estate loan losses will peak in the second half of 2010 and then gradually decline. We expect nonperforming assets to continue to increase in the near term, but at a slower pace as credit deterioration slows. NPAs are expected to remain elevated through 2010. We are working closely with customers who are having difficulties to understand their challenges, identify possible solutions and minimize loss. We believe our experienced and stable management team is well equipped to navigate through the end of this cycle.”

For additional detail on credit quality and trends, please refer to the quarterly supplement.

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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:

	Quarter ended
	Sept. 30,		June 30,
(in millions)	2009		2009
Community Banking	$	2,667		2,008
Wholesale Banking		598		1,067
Wealth, Brokerage and Retirement		244		363

More financial information about the business segments is on pages 39 and 40.

Community Bankingoffers a complete line of diversified financial products and services for consumers and small businesses including investment, insurance and trust services in 39 states and D.C., and mortgage and home equity loans in all 50 states and D.C.

Selected Financial Information

	Quarter ended
	Sept. 30,		June 30,
(in millions)	2009		2009
Total revenue	$	15,143		14,807
Provision for credit losses		4,572		4,264
Noninterest expense		6,802		7,665
Segment net income		2,667		2,008
(in billions)
Average loans		534.7		540.7
Average assets		785.2		799.2
Average core deposits		530.3		543.9

Community Banking reported net income of $2.7 billion, up $659 million, or 131 percent (annualized), from second quarter. Revenue increased $336 million, or 9 percent (annualized), driven by strong regional banking and mortgage fee income partially offset by a decrease in net interest margin. Noninterest income increased $420 million, or 28 percent (annualized), from prior quarter driven by continued strength in mortgage banking and strong growth in deposit service charges and card fees. Noninterest expense decreased $863 million, or 45 percent (annualized), driven by higher second quarter FDIC deposit insurance assessments as well as expense reductions due to Wachovia merger-related cost saves. The provision for credit losses increased $308 million, and included a $236 million credit reserve build compared with a $479 million credit reserve build in the prior quarter.

Regional Banking Highlights for Legacy Wells Fargo

• Record core product solutions (sales) of 6.84 million, up 10 percent from prior year on a comparable basis

• Core sales per platform banker FTE (active, full-time equivalent) of 5.88 per day, up from 5.65 in prior year on a comparable basis

• Record retail bank household cross-sell of Wells Fargo products of 5.90 products per household; 25 percent of retail bank households had 8 or more products, the Company’s long-term goal

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• Sales ofWells Fargo Packages^® (a checking account and at least three other products) up 14 percent from prior year, purchased by 78 percent of new checking account customers

• Customer loyalty scores up 3 percent, and welcoming and wait time scores improved 7 percent from prior year (based on customers conducting transactions with tellers)

• Business Banking

– Store-based business solutions up 11 percent from prior year

– Business Banking household cross-sell of 3.72 products per household

– Sales ofWells Fargo Business Services Packages(business checking account and at least three other business products) up 18 percent from prior year, purchased by 55 percent of new business checking account customers

Regional Banking Highlights for Wachovia

• Retail bank household cross-sell of Wachovia products of 4.65 products per household

• Wachovia maintained its very high customer experience levels; scores continued to surpass prior year

Combined Regional Banking

• Consumer checking accounts up a net 5.2 percent from prior year

• Business checking accounts up a net 4.1 percent from prior year

• Opened 15 banking stores for retail network total of 6,653 stores

• 12,352 ATMs across our network, including 3,260Envelope-Free^SMwebATMmachines

• America’s #1 small business lender for 7^th consecutive year (in loans under $100,000), according to 2008 Community Reinvestment Act (CRA) data

Online Banking

• 16.2 million combined active online customers

• 3.9 million combined active Bill Pay customers

• Global Finance Magazineranked Wells Fargo the Best Consumer Internet Bank in the U.S. (July 2009)

• Wells Fargo launched customer-to-customer mobile banking money transfers, a simple and secure way to send funds to family and friends

Wells Fargo Home Mortgage (Home Mortgage)

• Home Mortgage applications of $123 billion, compared with $194 billion in prior quarter

• Home Mortgage application pipeline of $62 billion at quarter end, compared with $90 billion at June 30, 2009

• Home Mortgage originations of $96 billion, down from $129 billion in prior quarter

• Owned residential mortgage servicing portfolio of $1.7 trillion

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Wholesale Bankingprovides financial solutions to businesses across the United States with annual sales generally in excess of $10 million and financial institutions globally. Products include middle market banking, corporate banking, commercial real estate, treasury management, asset-based lending, insurance brokerage, foreign exchange, correspondent banking, trade services, specialized lending, equipment finance, corporate trust, investment banking, capital markets and asset management.

Selected Financial Information

	Quarter ended
	Sept. 30,		June 30,
(in millions)	2009		2009
Total revenue	$	4,916		5,238
Provision for credit losses		1,361		738
Noninterest expense		2,630		2,807
Segment net income		598		1,067
(in billions)
Average loans		247.0		263.5
Average assets		369.3		381.7
Average core deposits		146.9		138.1

Wholesale Banking reported net income of $598 million compared with $1.07 billion in second quarter 2009. Revenue decreased $322 million, primarily due to strength in investment banking and capital markets revenue in the prior quarter, as well as insurance revenue seasonality. Average core deposits were $147 billion up 25 percent (annualized) from the prior quarter. Noninterest expense decreased $177 million, primarily due to lower FDIC deposit insurance assessments. The provision for credit losses was $1.36 billion, an increase of $623 million from the prior quarter, and included $627 million of additional provision recorded to build reserves for the wholesale portfolio, compared with a credit reserve build of $162 million in the prior quarter.

• Government and Institutional Banking core deposits up 3 percent and noninterest income up 9 percent, driven by creation of integrated national platform of Wachovia and Wells Fargo capabilities, continued support of client credit needs and expansion in Public Finance

• Total core deposits up 13 percent and noninterest income up 2 percent in Global Financial Institutions and Trade Services, as international bank liquidity continued to improve and trade and payment volumes increased

• For 7^th time in 8 years,Wells Fargo Shareowner Services^SM received the TALON award as transfer agent ranked highest in Overall Satisfaction

• Treasury Management introduced enhanced version ofCEO Workstation^®, an easy-to-use online cash management tool

• Merger of Wachovia wholesale businesses on track to meet or exceed expected cost saves and is producing significant new growth opportunities from acquired businesses such as Government and Institutional Banking, Global Finance and Institutional Trade, and Investment Banking and Capital Markets

- 17 -

Wealth, Brokerage and Retirementprovides a full range of financial advisory services to clients using a comprehensive 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. Family Wealth meets the unique needs of the ultra high net worth customers. Retail Brokerage’s financial advisors serve customers’ advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the U.S. Retirement provides retirement services for individual investors and is a national leader in401(k) and pension record keeping.

Selected Financial Information

	Quarter ended
	Sept. 30,		June 30,
(in millions)	2009		2009
Total revenue	$	2,966		2,986
Provision for credit losses		234		115
Noninterest expense		2,314		2,289
Segment net income		244		363
(in billions)
Average loans		45.4		45.9
Average assets		108.6		110.2
Average core deposits		116.4		113.5

Wealth, Brokerage and Retirement reported net income of $244 million, compared with $363 million in the prior quarter. Revenue was $3.0 billion consistent with the prior quarter’s levels as the strong equity market recovery led to increases in client assets across the brokerage, wealth and retirement businesses, driving solid revenue growth, partially offset by lower realized gains on sales of securities available for sale in the brokerage business. Total provision for credit losses increased $119 million from the prior quarter, largely reflecting a credit reserve build of $137 million in third quarter due to higher loss rates. Average core deposits increased $2.9 billion, or 10 percent (annualized), from second quarter, reflecting continued success in attracting client assets, including deposits.

Retail Brokerage

• Client assets increased 8 percent to $1.1 trillion from prior quarter

• Managed account assets increased $23 billion, or 14 percent, from prior quarter, including net inflows of $8 billion

• Brokerage transactional revenue increased 2 percent from prior quarter

Wealth Management

• Continued strong deposit growth, with average balances up 8 percent from prior quarter

• Trust assets of $119 billion, up 7 percent from prior quarter

Retirement

• Retirement plan assets of $271 billion increased $22 billion, or 9 percent, from prior quarter

• IRA assets of $231 billion increased $20 billion, or 9 percent, from prior quarter

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• Integrated sales approach, firm stability and scale in the business, drove key new business wins in institutional retirement

Recorded Message

A recorded message reviewing Wells Fargo’s results is available at 5:30 a.m. Pacific Time through October 24, 2009. Dial 866-416-0522 (domestic) or 706-902-3479 (international). No password is required. The call is also available online atwellsfargo.com/invest_relations/earnings.

Cautionary Statement About Forward-Looking Information
In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that this news release contains forward-looking statements about our future financial performance and business. We make forward-looking statements when we use words such as “believe,” “expect,” “anticipate,” “estimate,” “should,” “may,” “can,” “will,” “outlook,” “project” or similar expressions. Forward-looking statements in this news release include, among others, statements about: (i) future credit quality, the adequacy of the allowance for loan losses, the level of nonperforming assets and nonaccrual loans, expected or estimated future losses in our loan portfolios and life-of-loan loss estimates, including that we currently expect that credit losses will peak in 2010, absent further deterioration in the economy, with consumer loan losses expected to peak in the first half of 2010 and commercial and commercial real estate loan losses expected to peak later in 2010, and that the pick-a-pay portfolios, both purchased credit-impaired and non-impaired, will perform better than management’s expectations at the time of the Wachovia merger; (ii) reduction or mitigation of risk in our loan portfolios and the effects of loan modification programs; (iii) the amount and timing of expected integration activities, expenses and cost savings relating to the Wachovia merger, as well as the expected synergies and benefits of the merger, including that we currently estimate merger expenses of approximately $5.5 billion and that we currently are on track to achieve $5.0 billion annual run rate cost savings by the expected completion of the integration in 2011; (iv) the status of our capital requirements under the Supervisory Capital Assessment Program; and (v) our preliminary estimates to add assets to our consolidated financial statements upon the implementation of FAS 166 and FAS 167.

Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. Several factors could cause actual results to differ materially from expectations including: current and future economic and market conditions, including the effects of further declines in housing prices and high unemployment rates; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; the terms of capital investments or other financial assistance provided by the U.S. government; legislative proposals to allow mortgage cram-downs in bankruptcy or force other loan modifications; the extent of success in our loan modification efforts; our ability to successfully and timely integrate the Wachovia merger and realize the expected cost savings and other benefits, including delays or disruptions in system conversions and higher severance costs; our ability to realize efficiency initiatives to lower expenses when and in the amount expected; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect of changes in interest rates on our net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; hedging gains or losses; disruptions in the capital markets and reduced investor demand for mortgage loans; our ability to sell more products to our customers; the effect of the economic recession on the demand for our products and services; the effect of fluctuations in stock market prices on fee income from our brokerage, asset and wealth management businesses; our election to provide support to our mutual funds for structured credit products they may hold; changes in the value of our venture capital investments; changes in our accounting policies or in accounting standards or in how accounting standards are to be applied, including the implementation of FAS 166 and FAS 167 and its effects on the consolidation of additional assets on our balance sheet; mergers and acquisitions; federal and state regulations; reputational damage from negative publicity, fines, penalties and other negative consequences from regulatory violations, the loss of checking and saving account deposits to other investments such as the stock market, and fiscal and monetary policies of the Federal Reserve Board. There is no assurance that our allowance for credit losses

- 19 -

will be adequate to cover future credit losses, especially if credit markets, housing prices, and unemployment do not stabilize or improve. Increases in loan charge-offs or in the allowance for credit losses and related provision expense could materially adversely affect our financial results and condition. There is no assurance that we will meet the SCAP capital requirement on the November 9, 2009, deadline established by the Federal Reserve Board. Although we exceeded the requirement at September 30, 2009, our common equity capital could fall between now and the deadline, causing us not to meet the requirement. Failure to meet the requirement could result in the issuance of equity securities or the conversion of preferred securities into common stock, resulting in substantial dilution to existing stockholders. There is no assurance as to when or how we will repay the government’s investment or that we will be able to repay the investment in a manner that does not require the issuance of equity securities resulting in substantial dilution to existing stockholders. 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 our Quarterly Reports on Form 10-Q for the periods ended March 31, 2009, and June 30, 2009, and our Annual Report on Form 10-K for the year ended December 31, 2008, including the discussions under “Risk Factors” in each of those reports, as filed with the SEC and available on the SEC’s website atwww.sec.gov. Any factor described above or in our SEC reports could, by itself or together with one or more other factors, adversely affect our financial results and condition.

About Wells Fargo

Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores, over 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.

# # #

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Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA(1) (2)

	Quarter ended Sept. 30,					Nine months ended Sept. 30,
($ in millions, except per share amounts)	2009			2008		2009		2008
For the Period
Wells Fargo net income	$	3,235			1,637		9,452		5,389
Wells Fargo net income applicable to common stock		2,637			1,637		7,596		5,389
Diluted earnings per common share		0.56			0.49		1.69		1.62
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.03	%		1.06		1.00		1.21
Net income to average assets		1.06			1.07		1.02		1.22
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		12.04			13.63		13.29		15.02
Net income to average total equity		10.57			13.66		11.32		15.06
Efficiency ratio (3)		52.0			53.0		54.9		51.8
Total revenue	$	22,466			10,377		65,990		32,400
Pre-tax pre-provision profit (PTPP) (4)		10,782			4,876		29,791		15,612
Dividends declared per common share		0.05			0.34		0.44		0.96
Average common shares outstanding		4,678.3			3,316.4		4,471.2		3,309.6
Diluted average common shares outstanding		4,706.4			3,331.0		4,485.3		3,323.4
Average loans	$	810,191			404,203		833,076		393,262
Average assets		1,246,051			614,194		1,270,071		594,717
Average core deposits (5)		759,319			320,074		759,668		318,582
Average retail core deposits (6)		584,414			234,140		590,499		230,935
Net interest margin		4.36	%		4.79		4.27		4.80
At Period End
Securities available for sale	$	183,814			86,882		183,814		86,882
Loans		799,952			411,049		799,952		411,049
Allowance for loan losses		24,028			7,865		24,028		7,865
Goodwill		24,052			13,520		24,052		13,520
Assets		1,228,625			622,361		1,228,625		622,361
Core deposits (5)		747,913			334,076		747,913		334,076
Wells Fargo stockholders’ equity		122,150			46,957		122,150		46,957
Total equity		128,924			47,259		128,924		47,259
Capital ratios:
Wells Fargo common stockholders’ equity to assets		7.41	%		7.54		7.41		7.54
Total equity to assets		10.49			7.59		10.49		7.59
Average Wells Fargo common stockholders’ equity to average assets		6.98			7.78		6.02		8.06
Average total equity to average assets		9.99			7.83		8.98		8.11
Risk-based capital (7)
Tier 1 capital		10.63			8.59		10.63		8.59
Total capital		14.66			11.51		14.66		11.51
Tier 1 leverage (7)		9.03			7.54		9.03		7.54
Book value per common share	$	19.46			14.14		19.46		14.14
Team members (active, full-time equivalent)		265,100			159,000		265,100		159,000
Common stock price:
High	$	29.56			44.68		30.47		44.68
Low		22.08			20.46		7.80		20.46
Period end		28.18			37.53		28.18		37.53

(1)	Wells Fargo & Company (Wells Fargo) acquired Wachovia Corporation (Wachovia) on December 31, 2008. Because the acquisition was completed on December 31, 2008, Wachovia’s results are included in the income statement, average balances and related metrics beginning in 2009. Wachovia’s assets and liabilities are included in the consolidated balance sheet beginning on December 31, 2008.
(2)	On January 1, 2009, we adopted new accounting guidance on noncontrolling interests contained in FASB ASC 810-10,Consolidation(Statement of Financial Accounting Standards (FAS) No. 160,Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51), on a retrospective basis for disclosure and, accordingly, prior period information reflects the adoption. The guidance requires that noncontrolling interests be reported as a component of total equity.
(3)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(4)	Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(5)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(6)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(7)	The September 30, 2009, ratios are preliminary.

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Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA(1) (2)

	Quarter ended
	Sept. 30,			June 30,		Mar. 31,		Dec. 31,			Sept. 30,
($ in millions, except per share amounts)	2009			2009		2009		2008			2008
For the Quarter
Wells Fargo net income (loss)	$	3,235			3,172		3,045		(2,734	)		1,637
Wells Fargo net income (loss) applicable to common stock		2,637			2,575		2,384		(3,020	)		1,637
Diluted earnings (loss) per common share		0.56			0.57		0.56		(0.84	)		0.49
Profitability ratios (annualized):
Wells Fargo net income (loss) to average assets (ROA)		1.03	%		1.00		0.96		(1.72	)		1.06
Net income (loss) to average assets		1.06			1.02		0.97		(1.72	)		1.07
Wells Fargo net income (loss) applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		12.04			13.70		14.49		(22.32	)		13.63
Net income (loss) to average total equity		10.57			11.56		11.97		(15.53	)		13.66
Efficiency ratio (3)		52.0			56.4		56.2		61.3			53.0
Total revenue	$	22,466			22,507		21,017		9,477			10,377
Pre-tax pre-provision profit (PTPP) (4)		10,782			9,810		9,199		3,667			4,876
Dividends declared per common share		0.05			0.05		0.34		0.34			0.34
Average common shares outstanding		4,678.3			4,483.1		4,247.4		3,582.4			3,316.4
Diluted average common shares outstanding		4,706.4			4,501.6		4,249.3		3,593.6			3,331.0
Average loans	$	810,191			833,945		855,591		413,940			404,203
Average assets		1,246,051			1,274,926		1,289,716		633,223			614,194
Average core deposits (5)		759,319			765,697		753,928		344,957			320,074
Average retail core deposits (6)		584,414			596,648		590,502		243,464			234,140
Net interest margin		4.36	%		4.30		4.16		4.90			4.79
At Quarter End
Securities available for sale	$	183,814			206,795		178,468		151,569			86,882
Loans		799,952			821,614		843,579		864,830			411,049
Allowance for loan losses		24,028			23,035		22,281		21,013			7,865
Goodwill		24,052			24,619		23,825		22,627			13,520
Assets		1,228,625			1,284,176		1,285,891		1,309,639			622,361
Core deposits (5)		747,913			761,122		756,183		745,432			334,076
Wells Fargo stockholders’ equity		122,150			114,623		100,295		99,084			46,957
Total equity		128,924			121,382		107,057		102,316			47,259
Capital ratios:
Wells Fargo common stockholders’ equity to assets		7.41	%		6.51		5.40		5.21			7.54
Total equity to assets		10.49			9.45		8.33		7.81			7.59
Average Wells Fargo common stockholders’ equity to average assets		6.98			5.92		5.17		8.50			7.78
Average total equity to average assets		9.99			8.85		8.11		11.09			7.83
Risk-based capital (7)
Tier 1 capital		10.63			9.80		8.30		7.84			8.59
Total capital		14.66			13.84		12.30		11.83			11.51
Tier 1 leverage (7)		9.03			8.32		7.09		14.52			7.54
Book value per common share	$	19.46			17.91		16.28		16.15			14.14
Team members (active, full-time equivalent)		265,100			269,900		272,800		270,800			159,000
Common stock price:
High	$	29.56			28.45		30.47		38.95			44.68
Low		22.08			13.65		7.80		19.89			20.46
Period end		28.18			24.26		14.24		29.48			37.53

(1)	Wells Fargo & Company (Wells Fargo) acquired Wachovia Corporation (Wachovia) on December 31, 2008. Because the acquisition was completed on December 31, 2008, Wachovia’s results are included in the income statement, average balances and related metrics beginning in 2009. Wachovia’s assets and liabilities are included in the consolidated balance sheet beginning on December 31, 2008.
(2)	On January 1, 2009, we adopted new accounting guidance on noncontrolling interests contained in FASB ASC 810-10,Consolidation(Statement of Financial Accounting Standards (FAS) No. 160,Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51), on a retrospective basis for disclosure and, accordingly, prior period information reflects the adoption. The guidance requires that noncontrolling interests be reported as a component of total equity.
(3)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(4)	Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(5)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(6)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(7)	The September 30, 2009, ratios are preliminary. Because the Wachovia acquisition was completed on December 31, 2008, the Tier 1 leverage ratio at December 31, 2008, which considers period-end Tier 1 capital and quarterly average assets in the computation of the ratio, does not reflect average assets of Wachovia for 2008.

-22-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Sept. 30,						Nine months ended Sept. 30,
(in millions, except per share amounts)	2009			2008			2009			2008
Interest income
Trading assets	$	216			41			688			126
Securities available for sale		2,947			1,397			8,543			3,753
Mortgages held for sale		524			394			1,484			1,211
Loans held for sale		34			12			151			34
Loans		10,170			6,888			31,467			20,906
Other interest income		77			42			249			140
Total interest income		13,968			8,774			42,582			26,170
Interest expense
Deposits		905			1,019			2,861			3,676
Short-term borrowings		32			492			210			1,274
Long-term debt		1,301			882			4,565			2,801
Other interest expense		46			-			122			-
Total interest expense		2,284			2,393			7,758			7,751
Net interest income		11,684			6,381			34,824			18,419
Provision for credit losses		6,111			2,495			15,755			7,535
Net interest income after provision for credit losses		5,573			3,886			19,069			10,884
Noninterest income
Service charges on deposit accounts		1,478			839			4,320			2,387
Trust and investment fees		2,502			738			7,130			2,263
Card fees		946			601			2,722			1,747
Other fees		950			552			2,814			1,562
Mortgage banking		3,067			892			8,617			2,720
Insurance		468			439			1,644			1,493
Net gains (losses) on debt securities available for sale (includes impairment losses of $273 and $850, consisting of $314 and $1,889 of total other-than-temporary impairment losses, net of $41 and $1,039 recognized in other comprehensive income, for the quarter and nine months ended September 30, 2009, respectively)		(40	)		84			(237	)		316
Net gains (losses) from equity investments		29			(509	)		(88	)		(149	)
Other		1,382			360			4,244			1,642
Total noninterest income		10,782			3,996			31,166			13,981
Noninterest expense
Salaries		3,428			2,078			10,252			6,092
Commission and incentive compensation		2,051			555			5,935			2,005
Employee benefits		1,034			486			3,545			1,666
Equipment		563			302			1,825			955
Net occupancy		778			402			2,357			1,201
Core deposit and other intangibles		642			47			1,935			139
FDIC and other deposit assessments		228			37			1,547			63
Other		2,960			1,594			8,803			4,667
Total noninterest expense		11,684			5,501			36,199			16,788
Income before income tax expense		4,671			2,381			14,036			8,077
Income tax expense		1,355			730			4,382			2,638
Net income before noncontrolling interests		3,316			1,651			9,654			5,439
Less: Net income from noncontrolling interests		81			14			202			50
Wells Fargo net income	$	3,235			1,637			9,452			5,389
Wells Fargo net income applicable to common stock	$	2,637			1,637			7,596			5,389
Per share information
Earnings per common share	$	0.56			0.49			1.70			1.63
Diluted earnings per common share		0.56			0.49			1.69			1.62
Dividends declared per common share		0.05			0.34			0.44			0.96
Average common shares outstanding		4,678.3			3,316.4			4,471.2			3,309.6
Diluted average common shares outstanding		4,706.4			3,331.0			4,485.3			3,323.4

-23-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions, except per share amounts)	2009			2009			2009			2008			2008
Interest income
Trading assets	$	216			206			266			51			41
Securities available for sale		2,947			2,887			2,709			1,534			1,397
Mortgages held for sale		524			545			415			362			394
Loans held for sale		34			50			67			14			12
Loans		10,170			10,532			10,765			6,726			6,888
Other interest income		77			81			91			41			42
Total interest income		13,968			14,301			14,313			8,728			8,774
Interest expense
Deposits		905			957			999			845			1,019
Short-term borrowings		32			55			123			204			492
Long-term debt		1,301			1,485			1,779			955			882
Other interest expense		46			40			36			-			-
Total interest expense		2,284			2,537			2,937			2,004			2,393
Net interest income		11,684			11,764			11,376			6,724			6,381
Provision for credit losses		6,111			5,086			4,558			8,444			2,495
Net interest income after provision for credit losses		5,573			6,678			6,818			(1,720	)		3,886
Noninterest income
Service charges on deposit accounts		1,478			1,448			1,394			803			839
Trust and investment fees		2,502			2,413			2,215			661			738
Card fees		946			923			853			589			601
Other fees		950			963			901			535			552
Mortgage banking		3,067			3,046			2,504			(195	)		892
Insurance		468			595			581			337			439
Net gains (losses) on debt securities available for sale		(40	)		(78	)		(119	)		721			84
Net gains (losses) from equity investments		29			40			(157	)		(608	)		(509	)
Other		1,382			1,393			1,469			(90	)		360
Total noninterest income		10,782			10,743			9,641			2,753			3,996
Noninterest expense
Salaries		3,428			3,438			3,386			2,168			2,078
Commission and incentive compensation		2,051			2,060			1,824			671			555
Employee benefits		1,034			1,227			1,284			338			486
Equipment		563			575			687			402			302
Net occupancy		778			783			796			418			402
Core deposit and other intangibles		642			646			647			47			47
FDIC and other deposit assessments		228			981			338			57			37
Other		2,960			2,987			2,856			1,709			1,594
Total noninterest expense		11,684			12,697			11,818			5,810			5,501
Income (loss) before income tax expense (benefit)		4,671			4,724			4,641			(4,777	)		2,381
Income tax expense (benefit)		1,355			1,475			1,552			(2,036	)		730
Net income (loss) before noncontrolling interests		3,316			3,249			3,089			(2,741	)		1,651
Less: Net income (loss) from noncontrolling interests		81			77			44			(7	)		14
Wells Fargo net income (loss)	$	3,235			3,172			3,045			(2,734	)		1,637
Wells Fargo net income (loss) applicable to common stock	$	2,637			2,575			2,384			(3,020	)		1,637
Per share information
Earnings (loss) per common share	$	0.56			0.58			0.56			(0.84	)		0.49
Diluted earnings (loss) per common share		0.56			0.57			0.56			(0.84	)		0.49
Dividends declared per common share		0.05			0.05			0.34			0.34			0.34
Average common shares outstanding		4,678.3			4,483.1			4,247.4			3,582.4			3,316.4
Diluted average common shares outstanding		4,706.4			4,501.6			4,249.3			3,593.6			3,331.0

-24-

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS)(1)(2)

	Quarter ended September 30,
	2009								2008
							Interest								Interest
	Average			Yields/			income/		Average			Yields/			income/
(in millions)	balance			rates			expense		balance			rates			expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	16,356			0.66	%	$	27		3,463			2.09	%	$	18
Trading assets		20,518			4.29			221		4,838			3.72			46
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		2,545			3.79			24		1,141			3.99			11
Securities of U.S. states and political subdivisions		12,818			6.28			204		7,211			6.65			124
Mortgage-backed securities:
Federal agencies		94,457			5.34			1,221		50,528			5.83			731
Residential and commercial		43,214			9.56			1,089		21,358			5.82			346
Total mortgage-backed securities		137,671			6.75			2,310		71,886			5.83			1,077
Other debt securities (4)		33,294			7.00			568		12,622			7.17			248
Total debt securities available for sale (4)		186,328			6.72			3,106		92,860			6.06			1,460
Mortgages held for sale (5)		40,604			5.16			524		24,990			6.31			394
Loans held for sale (5)		4,975			2.67			34		677			6.95			12
Loans:
Commercial and commercial real estate:
Commercial		175,642			4.34			1,919		100,688			5.92			1,496
Real estate mortgage		103,450			3.39			883		43,616			5.60			615
Real estate construction		32,649			3.02			249		19,715			4.82			238
Lease financing		14,360			9.14			328		7,250			5.48			100
Total commercial and commercial real estate		326,101			4.12			3,379		171,269			5.69			2,449
Consumer:
Real estate 1-4 family first mortgage		235,051			5.35			3,154		76,197			6.64			1,265
Real estate 1-4 family junior lien mortgage		105,779			4.62			1,229		75,379			6.36			1,206
Credit card		23,448			11.65			683		19,948			12.19			609
Other revolving credit and installment		90,199			6.48			1,473		54,104			8.64			1,175
Total consumer		454,477			5.73			6,539		225,628			7.52			4,255
Foreign		29,613			3.61			270		7,306			10.28			188
Total loans (5)		810,191			5.00			10,188		404,203			6.79			6,892
Other		6,088			3.29			49		2,126			4.64			24
Total earning assets	$	1,085,060			5.20	%	$	14,149		533,157			6.57	%	$	8,846
Funding sources
Deposits:
Interest-bearing checking	$	59,467			0.15	%	$	21		5,483			0.87	%	$	12
Market rate and other savings		369,120			0.34			317		166,710			1.18			495
Savings certificates		129,698			1.35			442		37,192			2.57			240
Other time deposits		18,248			1.93			89		7,930			2.59			53
Deposits in foreign offices		56,820			0.25			36		49,054			1.78			219
Total interest-bearing deposits		633,353			0.57			905		266,369			1.52			1,019
Short-term borrowings		39,828			0.35			36		83,458			2.35			492
Long-term debt		222,580			2.33			1,301		103,745			3.43			892
Other liabilities		5,620			3.30			46		-			-			-
Total interest-bearing liabilities		901,381			1.01			2,288		453,572			2.11			2,403
Portion of noninterest-bearing funding sources		183,679			-			-		79,585			-			-
Total funding sources	$	1,085,060			0.84			2,288		533,157			1.78			2,403
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.36	%	$	11,861					4.79	%	$	6,443
Noninterest-earning assets
Cash and due from banks	$	18,084								11,024
Goodwill		24,435								13,531
Other		118,472								56,482
Total noninterest-earning assets	$	160,991								81,037
Noninterest-bearing funding sources
Deposits	$	172,588								87,095
Other liabilities		47,646								25,452
Total equity		124,436								48,075
Noninterest-bearing funding sources used to fund earning assets		(183,679	)							(79,585	)
Net noninterest-bearing funding sources	$	160,991								81,037
Total assets	$	1,246,051								614,194

(1)	Our average prime rate was 3.25% and 5.00% for the quarters ended September 30, 2009 and 2008, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.41% and 2.91% for the same quarters, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

-25-

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS)(1)(2)

	Nine months ended September 30,
	2009								2008
							Interest								Interest
	Average			Yields/			income/		Average			Yields/			income/
(in millions)	balance			rates			expense		balance			rates			expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	20,411			0.73	%	$	111		3,734			2.59	%	$	72
Trading assets		20,389			4.64			709		4,960			3.57			133
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		2,514			2.61			48		1,055			3.88			30
Securities of U.S. states and political subdivisions		12,409			6.39			623		6,848			6.88			362
Mortgage-backed securities:
Federal agencies		87,916			5.45			3,492		42,448			5.93			1,854
Residential and commercial		41,070			9.05			3,150		21,589			5.92			1,010
Total mortgage-backed securities		128,986			6.72			6,642		64,037			5.92			2,864
Other debt securities (4)		31,437			7.01			1,691		12,351			6.78			670
Total debt securities available for sale (4)		175,346			6.69			9,004		84,291			6.11			3,926
Mortgages held for sale (5)		38,315			5.16			1,484		26,417			6.11			1,211
Loans held for sale (5)		6,693			3.01			151		686			6.66			34
Loans:
Commercial and commercial real estate:
Commercial		186,610			4.10			5,725		95,697			6.29			4,509
Real estate mortgage		104,003			3.44			2,677		40,351			5.91			1,788
Real estate construction		33,660			2.92			734		19,288			5.29			763
Lease financing		14,968			9.04			1,015		7,055			5.63			298
Total commercial and commercial real estate		339,241			4.00			10,151		162,391			6.05			7,358
Consumer:
Real estate 1-4 family first mortgage		240,409			5.51			9,926		74,064			6.77			3,761
Real estate 1-4 family junior lien mortgage		108,094			4.81			3,894		75,220			6.78			3,820
Credit card		23,236			12.16			2,118		19,256			12.11			1,749
Other revolving credit and installment		91,240			6.60			4,502		54,949			8.84			3,637
Total consumer		462,979			5.90			20,440		223,489			7.74			12,967
Foreign		30,856			4.02			929		7,382			10.72			592
Total loans (5)		833,076			5.05			31,520		393,262			7.10			20,917
Other		6,102			3.02			137		1,995			4.55			68
Total earning assets	$	1,100,332			5.21	%	$	43,116		515,345			6.81	%	$	26,361
Funding sources
Deposits:
Interest-bearing checking	$	73,195			0.14	%	$	77		5,399			1.31	%	$	53
Market rate and other savings		339,081			0.42			1,072		162,792			1.45			1,765
Savings certificates		150,607			1.14			1,280		38,907			3.23			940
Other time deposits		21,794			1.97			321		6,163			2.87			133
Deposits in foreign offices		50,907			0.29			111		49,192			2.13			785
Total interest-bearing deposits		635,584			0.60			2,861		262,453			1.87			3,676
Short-term borrowings		58,447			0.50			217		67,714			2.51			1,274
Long-term debt		238,909			2.55			4,568		101,668			3.71			2,825
Other liabilities		4,675			3.50			122		-			-			-
Total interest-bearing liabilities		937,615			1.11			7,768		431,835			2.40			7,775
Portion of noninterest-bearing funding sources		162,717			-			-		83,510			-			-
Total funding sources	$	1,100,332			0.94			7,768		515,345			2.01			7,775
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.27	%	$	35,348					4.80	%	$	18,586
Noninterest-earning assets
Cash and due from banks	$	19,218								11,182
Goodwill		23,964								13,289
Other		126,557								54,901
Total noninterest-earning assets	$	169,739								79,372
Noninterest-bearing funding sources
Deposits	$	169,187								86,676
Other liabilities		49,249								27,973
Total equity		114,020								48,233
Noninterest-bearing funding sources used to fund earning assets		(162,717	)							(83,510	)
Net noninterest-bearing funding sources	$	169,739								79,372
Total assets	$	1,270,071								594,717

(1)	Our average prime rate was 3.25% and 5.43% for the nine months ended September 30, 2009 and 2008, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.83% and 2.98% for the same periods, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

-26-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended Sept. 30,						Nine months ended Sept. 30,
(in millions)	2009			2008			2009			2008
Service charges on deposit accounts	$	1,478			839			4,320			2,387
Trust and investment fees:
Trust, investment and IRA fees		989			549			2,550			1,674
Commissions and all other fees		1,513			189			4,580			589
Total trust and investment fees		2,502			738			7,130			2,263
Card fees		946			601			2,722			1,747
Other fees:
Cash network fees		60			48			176			143
Charges and fees on loans		453			266			1,326			765
All other fees		437			238			1,312			654
Total other fees		950			552			2,814			1,562
Mortgage banking:
Servicing income, net		1,873			525			3,469			1,019
Net gains on mortgage loan origination/sales activities		1,125			276			4,910			1,419
All other		69			91			238			282
Total mortgage banking		3,067			892			8,617			2,720
Insurance		468			439			1,644			1,493
Net gains from trading activities		622			65			2,158			684
Net gains (losses) on debt securities available for sale		(40	)		84			(237	)		316
Net gains (losses) from equity investments		29			(509	)		(88	)		(149	)
Operating leases		224			102			522			365
All other		536			193			1,564			593
Total	$	10,782			3,996			31,166			13,981

NONINTEREST EXPENSE

	Quarter ended Sept. 30,				Nine months ended Sept. 30,
(in millions)	2009		2008		2009		2008
Salaries	$	3,428		2,078		10,252		6,092
Commission and incentive compensation		2,051		555		5,935		2,005
Employee benefits		1,034		486		3,545		1,666
Equipment		563		302		1,825		955
Net occupancy		778		402		2,357		1,201
Core deposit and other intangibles		642		47		1,935		139
FDIC and other deposit assessments		228		37		1,547		63
Outside professional services		489		206		1,350		589
Insurance		208		144		734		511
Postage, stationery and supplies		211		136		701		415
Outside data processing		251		122		745		353
Travel and entertainment		151		113		387		330
Foreclosed assets		243		99		678		298
Contract services		254		88		726		300
Operating leases		52		90		183		308
Advertising and promotion		160		96		396		285
Telecommunications		142		78		464		238
Operating losses		117		63		448		46
All other		682		359		1,991		994
Total	$	11,684		5,501		36,199		16,788

-27-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2009			2009			2009			2008			2008
Service charges on deposit accounts	$	1,478			1,448			1,394			803			839
Trust and investment fees:
Trust, investment and IRA fees		989			839			722			487			549
Commissions and all other fees		1,513			1,574			1,493			174			189
Total trust and investment fees		2,502			2,413			2,215			661			738
Card fees		946			923			853			589			601
Other fees:
Cash network fees		60			58			58			45			48
Charges and fees on loans		453			440			433			272			266
All other fees		437			465			410			218			238
Total other fees		950			963			901			535			552
Mortgage banking:
Servicing income, net		1,873			753			843			(40	)		525
Net gains (losses) on mortgage loan origination/sales activities		1,125			2,203			1,582			(236	)		276
All other		69			90			79			81			91
Total mortgage banking		3,067			3,046			2,504			(195	)		892
Insurance		468			595			581			337			439
Net gains (losses) from trading activities		622			749			787			(409	)		65
Net gains (losses) on debt securities available for sale		(40	)		(78	)		(119	)		721			84
Net gains (losses) from equity investments		29			40			(157	)		(608	)		(509	)
Operating leases		224			168			130			62			102
All other		536			476			552			257			193
Total	$	10,782			10,743			9,641			2,753			3,996

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2009		2009		2009		2008		2008
Salaries	$	3,428		3,438		3,386		2,168		2,078
Commission and incentive compensation		2,051		2,060		1,824		671		555
Employee benefits		1,034		1,227		1,284		338		486
Equipment		563		575		687		402		302
Net occupancy		778		783		796		418		402
Core deposit and other intangibles		642		646		647		47		47
FDIC and other deposit assessments		228		981		338		57		37
Outside professional services		489		451		410		258		206
Insurance		208		259		267		214		144
Postage, stationery and supplies		211		240		250		141		136
Outside data processing		251		282		212		127		122
Travel and entertainment		151		131		105		117		113
Foreclosed assets		243		187		248		116		99
Contract services		254		256		216		107		88
Operating leases		52		61		70		81		90
Advertising and promotion		160		111		125		93		96
Telecommunications		142		164		158		83		78
Operating losses		117		159		172		96		63
All other		682		686		623		276		359
Total	$	11,684		12,697		11,818		5,810		5,501

-28-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

	Sept. 30,			Dec. 31,
(in millions, except shares)	2009			2008
Assets
Cash and due from banks	$	17,233			23,763
Federal funds sold, securities purchased under resale agreements and other short-term investments		17,491			49,433
Trading assets		43,198			54,884
Securities available for sale		183,814			151,569
Mortgages held for sale (includes $33,435 and $18,754 carried at fair value)		35,538			20,088
Loans held for sale (includes $201 and $398 carried at fair value)		5,846			6,228
Loans		799,952			864,830
Allowance for loan losses		(24,028	)		(21,013	)
Net loans		775,924			843,817
Mortgage servicing rights:
Measured at fair value (residential MSRs)		14,500			14,714
Amortized		1,162			1,446
Premises and equipment, net		11,040			11,269
Goodwill		24,052			22,627
Other assets		98,827			109,801
Total assets	$	1,228,625			1,309,639
Liabilities
Noninterest-bearing deposits	$	165,260			150,837
Interest-bearing deposits		631,488			630,565
Total deposits		796,748			781,402
Short-term borrowings		30,800			108,074
Accrued expenses and other liabilities		57,861			50,689
Long-term debt		214,292			267,158
Total liabilities		1,099,701			1,207,323
Equity
Wells Fargo stockholders’ equity:
Preferred stock		31,589			31,332
Common stock - - $1-2/3 par value, authorized 6,000,000,000 shares; issued 4,756,071,429 shares and 4,363,921,429 shares		7,927			7,273
Additional paid-in capital		40,343			36,026
Retained earnings		41,485			36,543
Cumulative other comprehensive income (loss)		4,088			(6,869	)
Treasury stock - 76,876,271 shares and 135,290,540 shares		(2,771	)		(4,666	)
Unearned ESOP shares		(511	)		(555	)
Total Wells Fargo stockholders’ equity		122,150			99,084
Noncontrolling interests		6,774			3,232
Total equity		128,924			102,316
Total liabilities and equity	$	1,228,625			1,309,639

-29-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2009			2009			2009			2008			2008
Assets
Cash and due from banks	$	17,233			20,632			22,186			23,763			12,861
Federal funds sold, securities purchased under resale agreements and other short-term investments		17,491			15,976			18,625			49,433			8,093
Trading assets		43,198			40,110			46,497			54,884			9,097
Securities available for sale		183,814			206,795			178,468			151,569			86,882
Mortgages held for sale		35,538			41,991			36,807			20,088			18,739
Loans held for sale		5,846			5,413			8,306			6,228			635
Loans		799,952			821,614			843,579			864,830			411,049
Allowance for loan losses		(24,028	)		(23,035	)		(22,281	)		(21,013	)		(7,865	)
Net loans		775,924			798,579			821,298			843,817			403,184
Mortgage servicing rights:
Measured at fair value (residential MSRs)		14,500			15,690			12,391			14,714			19,184
Amortized		1,162			1,205			1,257			1,446			433
Premises and equipment, net		11,040			11,151			11,215			11,269			5,054
Goodwill		24,052			24,619			23,825			22,627			13,520
Other assets		98,827			102,015			105,016			109,801			44,679
Total assets	$	1,228,625			1,284,176			1,285,891			1,309,639			622,361
Liabilities
Noninterest-bearing deposits	$	165,260			173,149			166,497			150,837			89,446
Interest-bearing deposits		631,488			640,586			630,772			630,565			264,128
Total deposits		796,748			813,735			797,269			781,402			353,574
Short-term borrowings		30,800			55,483			72,084			108,074			85,187
Accrued expenses and other liabilities		57,861			64,160			58,831			50,689			28,991
Long-term debt		214,292			229,416			250,650			267,158			107,350
Total liabilities		1,099,701			1,162,794			1,178,834			1,207,323			575,102
Equity
Wells Fargo stockholders’ equity:
Preferred stock		31,589			31,497			31,411			31,332			625
Common stock		7,927			7,927			7,273			7,273			5,788
Additional paid-in capital		40,343			40,270			32,414			36,026			8,348
Retained earnings		41,485			39,165			36,949			36,543			40,853
Cumulative other comprehensive income (loss)		4,088			(590	)		(3,624	)		(6,869	)		(2,783	)
Treasury stock		(2,771	)		(3,126	)		(3,593	)		(4,666	)		(5,207	)
Unearned ESOP shares		(511	)		(520	)		(535	)		(555	)		(667	)
Total Wells Fargo stockholders’ equity		122,150			114,623			100,295			99,084			46,957
Noncontrolling interests		6,774			6,759			6,762			3,232			302
Total equity		128,924			121,382			107,057			102,316			47,259
Total liabilities and equity	$	1,228,625			1,284,176			1,285,891			1,309,639			622,361

-30-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2009			2009			2009			2008			2008
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	16,356			20,889			24,074			9,938			3,463
Trading assets		20,518			18,464			22,203			5,004			4,838
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		2,545			2,102			2,899			1,165			1,141
Securities of U.S. states and political subdivisions		12,818			12,189			12,213			7,124			7,211
Mortgage-backed securities:
Federal agencies		94,457			92,550			76,545			51,714			50,528
Residential and commercial		43,214			41,257			38,690			18,245			21,358
Total mortgage-backed securities		137,671			133,807			115,235			69,959			71,886
Other debt securities (1)		33,294			30,901			30,080			14,217			12,622
Total debt securities available for sale (1)		186,328			178,999			160,427			92,465			92,860
Mortgages held for sale (2)		40,604			43,177			31,058			23,390			24,990
Loans held for sale (2)		4,975			7,188			7,949			1,287			677
Loans:
Commercial and commercial real estate:
Commercial		175,642			187,501			196,923			107,325			100,688
Real estate mortgage		103,450			104,297			104,271			45,555			43,616
Real estate construction		32,649			33,857			34,493			19,943			19,715
Lease financing		14,360			14,750			15,810			7,397			7,250
Total commercial and commercial real estate		326,101			340,405			351,497			180,220			171,269
Consumer:
Real estate 1-4 family first mortgage		235,051			240,798			245,494			78,251			76,197
Real estate 1-4 family junior lien mortgage		105,779			108,422			110,128			75,838			75,379
Credit card		23,448			22,963			23,295			20,626			19,948
Other revolving credit and installment		90,199			90,729			92,820			52,638			54,104
Total consumer		454,477			462,912			471,737			227,353			225,628
Foreign		29,613			30,628			32,357			6,367			7,306
Total loans (2)		810,191			833,945			855,591			413,940			404,203
Other		6,088			6,079			6,140			1,690			2,126
Total earning assets	$	1,085,060			1,108,741			1,107,442			547,714			533,157
Funding sources
Deposits:
Interest-bearing checking	$	59,467			79,955			80,393			6,396			5,483
Market rate and other savings		369,120			334,067			313,445			178,301			166,710
Savings certificates		129,698			152,444			170,122			41,189			37,192
Other time deposits		18,248			21,660			25,555			8,128			7,930
Deposits in foreign offices		56,820			49,885			45,896			42,771			49,054
Total interest-bearing deposits		633,353			638,011			635,411			276,785			266,369
Short-term borrowings		39,828			59,844			76,068			60,210			83,458
Long-term debt		222,580			235,590			258,957			104,112			103,745
Other liabilities		5,620			4,604			3,778			-			-
Total interest-bearing liabilities		901,381			938,049			974,214			441,107			453,572
Portion of noninterest-bearing funding sources		183,679			170,692			133,228			106,607			79,585
Total funding sources	$	1,085,060			1,108,741			1,107,442			547,714			533,157
Noninterest-earning assets
Cash and due from banks	$	18,084			19,340			20,255			11,155			11,024
Goodwill		24,435			24,261			23,183			13,544			13,531
Other		118,472			122,584			138,836			60,810			56,482
Total noninterest-earning assets	$	160,991			166,185			182,274			85,509			81,037
Noninterest-bearing funding sources
Deposits	$	172,588			174,529			160,308			91,229			87,095
Other liabilities		47,646			49,570			50,566			30,651			25,452
Total equity		124,436			112,778			104,628			70,236			48,075
Noninterest-bearing funding sources used to fund earning assets		(183,679	)		(170,692	)		(133,228	)		(106,607	)		(79,585	)
Net noninterest-bearing funding sources	$	160,991			166,185			182,274			85,509			81,037
Total assets	$	1,246,051			1,274,926			1,289,716			633,223			614,194

(1)	Includes certain preferred securities.
(2)	Nonaccrual loans are included in their respective loan categories.

-31-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2009		2009		2009		2008		2008
Commercial and commercial real estate:
Commercial	$	169,610		182,037		191,711		202,469		104,281
Real estate mortgage		103,442		103,654		104,934		103,108		44,741
Real estate construction		31,719		33,238		33,912		34,676		19,681
Lease financing		14,115		14,555		14,792		15,829		7,271
Total commercial and commercial real estate		318,886		333,484		345,349		356,082		175,974
Consumer:
Real estate 1-4 family first mortgage		232,622		237,289		242,947		247,894		77,870
Real estate 1-4 family junior lien mortgage		104,538		107,024		109,748		110,164		75,617
Credit card		23,597		23,069		22,815		23,555		20,358
Other revolving credit and installment		90,027		90,654		91,252		93,253		54,327
Total consumer		450,784		458,036		466,762		474,866		228,172
Foreign		30,282		30,094		31,468		33,882		6,903
Total loans (net of unearned income) (1)	$	799,952		821,614		843,579		864,830		411,049

(1) Includes $54.3 billion, $55.2 billion, $58.2 billion and $58.8 billion of purchased credit-impaired (PCI) loans at September 30, June 30 and March 31, 2009, and December 31, 2008, respectively. See table on page 32 for detail of PCI loans.

FIVE QUARTER NONACCRUAL LOANS AND OTHER NONPERFORMING ASSETS

	Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2009			2009		2009		2008		2008
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	4,540			2,910		1,696		1,253		846
Real estate mortgage		2,856			2,343		1,324		594		296
Real estate construction		2,711			2,210		1,371		989		736
Lease financing		157			130		114		92		69
Total commercial and commercial real estate		10,264			7,593		4,505		2,928		1,947
Consumer:
Real estate 1-4 family first mortgage		8,132			6,000		4,218		2,648		1,975
Real estate 1-4 family junior lien mortgage		1,985			1,652		1,418		894		780
Other revolving credit and installment		344			327		300		273		232
Total consumer		10,461			7,979		5,936		3,815		2,987
Foreign		144			226		75		57		61
Total nonaccrual loans (1) (2)		20,869			15,798		10,516		6,800		4,995
As a percentage of total loans		2.61	%		1.92		1.25		0.79		1.22
Foreclosed assets:
GNMA loans (3)	$	840			932		768		667		596
Other		1,687			1,592		1,294		1,526		644
Real estate and other nonaccrual investments (4)		55			20		34		16		56
Total nonaccrual loans and other nonperforming assets	$	23,451			18,342		12,612		9,009		6,291
As a percentage of total loans		2.93	%		2.23		1.50		1.04		1.53

(1)	Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(2)	Excludes PCI loans from Wachovia.
(3)	Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
(4)	Includes real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if these assets were recorded as loans, and nonaccrual debt securities.

-32-

Wells Fargo & Company and Subsidiaries
PURCHASED CREDIT-IMPAIRED (PCI) LOANS

Certain loans acquired from Wachovia have evidence of credit deterioration since origination and it is probable that we will not collect all contractually required principal and interest payments (referred to as “purchased credit-impaired"(PCI) loans). Such loans are accounted for under ASC 310-30,Receivables(American Institute of Certified Public Accountants Statement of Position 03-3,Accounting for Certain Loans or Debt Securities Acquired in a Transfer). The accounting provisions contained in ASC 310-30 require acquired loans be recorded at fair value at the acquisition date and prohibits carryover of the related allowance for loan losses. The difference between contractually required payments and cash flows expected to be collected is referred to as the nonaccretable difference. The difference between the cash flows expected to be collected and the fair value is referred to as the accretable yield.

Because PCI loans have been written down in purchase accounting to an amount estimated to be collectible, such loans are not classified as nonaccrual even though they may be contractually past due. Also, losses on such loans are charged against the nonaccretable difference established in purchase accounting and, as such, are not reported as charge-offs.

As a result of the application of ASC 310-30 to credit-impaired Wachovia loans, certain ratios of the combined company cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected by the accounting under ASC 310-30 include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.

	September 30, 2009 (1)						December 31, 2008
			All						All
	PCI		other				PCI		other
(in millions)	loans		loans		Total		loans		loans		Total
Commercial and commercial real estate:
Commercial	$	2,407		167,203		169,610		4,580		197,889		202,469
Real estate mortgage		5,950		97,492		103,442		7,762		95,346		103,108
Real estate construction		4,250		27,469		31,719		4,503		30,173		34,676
Lease financing		—		14,115		14,115		—		15,829		15,829
Total commercial and commercial real estate (CRE)		12,607		306,279		318,886		16,845		339,237		356,082
Consumer:
Real estate 1-4 family first mortgage		39,538		193,084		232,622		39,214		208,680		247,894
Real estate 1-4 family junior lien mortgage		425		104,113		104,538		728		109,436		110,164
Credit card		—		23,597		23,597		—		23,555		23,555
Other revolving credit and installment		—		90,027		90,027		151		93,102		93,253
Total consumer		39,963		410,821		450,784		40,093		434,773		474,866
Foreign		1,768		28,514		30,282		1,859		32,023		33,882
Total loans	$	54,338		745,614		799,952		58,797		806,033		864,830

(1) In the first three quarters of 2009, we refined certain of our preliminary purchase accounting adjustments based on additional information as of December 31, 2008. These refinements include a net increase to the nonaccretable difference of $3.8 billion ($2.2 billion of which related to Pick-a-Pay loans), and a net increase to the accretable yield of $1.9 billion ($2.0 billion of which related to Pick-a-Pay loans and reflects changes in the amount and timing of cash flows). The effect on goodwill of these adjustments amounted to a net increase to goodwill of $1.9 billion.

CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS

The nonaccretable difference was established in purchase accounting for PCI loans to absorb losses expected at that time on those loans. Amounts absorbed by the nonaccretable difference do not affect the income statement or the allowance for credit losses.

							Commercial,
				Other			CRE and
(in millions)	Pick-a-Pay			consumer			foreign			Total
Balance at December 31, 2008, with refinements	$	(26,485	)		(4,082	)		(10,378	)		(40,945	)
Release of nonaccretable difference due to:
Loans resolved by payment in full		—			—			194			194
Loans resolved by sales to third parties		—			85			28			113
Loans with improving cash flows reclassified to accretable yield		—			—			21			21
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (1)		8,320			1,796			3,552			13,668
Balance at September 30, 2009	$	(18,165	)		(2,201	)		(6,583	)		(26,949	)

(1) Use of nonaccretable difference through June 30, 2009, was $8.5 billion (including $5.1 billion for Pick-a-Pay loans); revised from second quarter to include all losses due to resolution of loans and write-downs.

CHANGES IN ALLOWANCE FOR LOAN LOSSES FOR PCI LOANS

Deterioration in expected credit losses for PCI loans subsequent to the acquisition on December 31, 2008, results the establishment of an allowance, provided for through a charge to income. Losses and improvements in expected losses will reduce the allowance.

					Commercial,
			Other		CRE and
(in millions)	Pick-a-Pay		consumer		foreign			Total
Balance at December 31, 2008	$	—		—		—			—
Provision for losses due to credit deterioration		—		—		458			458
Charge-offs		—		—		(225	)		(225	)
Balance at September 30, 2009	$	—		—		233			233

-33-

Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO

	PCI loans										All other loans
								Ratio of
								carrying
	Unpaid		Current					value to			Unpaid		Current
	principal		LTV			Carrying		current			principal		LTV			Carrying
(in millions)	balance		ratio (1)			value (2)		value			balance		ratio (1)			value
Sept. 30, 2009
California	$	39,034		150	%	$	25,492		98	%	$	24,447		95	%	$	24,395
Florida		5,929		144			3,532		85			5,166		108			5,117
New Jersey		1,676		101			1,309		78			3,017		82			3,021
Texas		452		81			395		71			2,031		66			2,039
Arizona		1,481		155			742		78			1,160		105			1,152
Other states		8,738		110			6,520		82			14,128		85			14,120
Total Pick-a-Pay loans	$	57,310				$	37,990				$	49,949				$	49,844
June 30, 2009
California	$	40,657		146	%	$	26,177		95	%	$	25,117		90	%	$	25,170
Florida		6,117		130			3,903		84			5,276		96			5,287
New Jersey		1,717		99			1,226		71			3,162		80			3,169
Texas		466		80			341		59			2,108		66			2,112
Arizona		1,553		148			1,001		96			1,195		99			1,197
Other states		9,041		108			6,227		75			14,607		83			14,640
Total Pick-a-Pay loans	$	59,551				$	38,875				$	51,465				$	51,575

(1)

The current loan-to-value (LTV) ratio is calculated as the unpaid principal balance plus the unpaid principal balance of any equity lines of credit that share common collateral divided by the collateral value. Collateral values are generally determined using automated valuation models (AVMs) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.

(2)

Carrying value, which does not reflect the allowance for loan losses, includes purchase accounting adjustments, which, for PCI loans, are the nonaccretable difference and the accretable yield, and for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.

-34-

Wells Fargo & Company and Subsidiaries
HOME EQUITY PORTFOLIOS(1)

								% of loans
								two payments					Annualized
	Outstanding balances				or more past due					loss rate
	Sept. 30,		June 30,		Sept. 30,			June 30,		Sept. 30,			June 30,
(in millions)	2009		2009		2009			2009		2009			2009
Core portfolio(2)
California	$	30,841		31,479		3.97	%		3.63		6.52			5.36
Florida		11,496		11,697		5.08			3.91		4.82	��		4.55
New Jersey		8,119		8,224		2.22			1.70		1.41			1.37
Virginia		5,736		5,805		1.60			1.26		1.22			0.99
Pennsylvania		4,971		5,048		1.95			1.46		1.51			1.29
Other		54,152		55,248		2.64			2.22		2.65			2.46
Total		115,315		117,501		3.13			2.65		3.69			3.25
Liquidating portfolio
California		3,406		3,616		8.75			8.16		18.22			17.13
Florida		435		460		9.83			9.14		16.97			18.11
Arizona		206		219		8.25			8.16		22.33			18.13
Texas		161		169		1.68			1.13		2.15			2.96
Minnesota		112		117		3.39			3.88		8.52			7.41
Other		4,546		4,764		4.68			4.00		7.14			6.25
Total		8,866		9,345		6.51			5.91		12.17			11.29
Total core and liquidating portfolios	$	124,181		126,846		3.37			2.89		4.31			3.85

(1)	Consists of real estate 1-4 family junior lien mortgages and lines of credit secured by real estate from all groups, excluding PCI loans.
(2)	Includes equity lines of credit and closed-end second liens associated with the Pick-a-Pay portfolio totaling $1.9 billion and $2.0 billion at September 30 and June 30, 2009, respectively.

-35-

Wells Fargo & Company and Subsidiaries

CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES (1)

	Quarter ended Sept. 30,							Nine months ended Sept. 30,
(in millions)		2009			2008			2009			2008
Balance, beginning of period		$	23,530			7,517			21,711			5,518
Provision for credit losses			6,111			2,495			15,755			7,535
Loan charge-offs:
Commercial and commercial real estate:
Commercial			(986	)		(305	)		(2,337	)		(897	)
Real estate mortgage			(215	)		(9	)		(398	)		(19	)
Real estate construction			(254	)		(36	)		(595	)		(93	)
Lease financing			(88	)		(19	)		(173	)		(44	)
Total commercial and commercial real estate			(1,543	)		(369	)		(3,503	)		(1,053	)
Consumer:
Real estate 1-4 family first mortgage			(1,015	)		(146	)		(2,229	)		(330	)
Real estate 1-4 family junior lien mortgage			(1,340	)		(669	)		(3,428	)		(1,476	)
Credit card			(691	)		(396	)		(2,025	)		(1,078	)
Other revolving credit and installment			(860	)		(586	)		(2,562	)		(1,617	)
Total consumer			(3,906	)		(1,797	)		(10,244	)		(4,501	)
Foreign			(71	)		(59	)		(181	)		(185	)
Total loan charge-offs			(5,520	)		(2,225	)		(13,928	)		(5,739	)
Loan recoveries:
Commercial and commercial real estate:
Commercial			62			27			153			90
Real estate mortgage			6			1			22			4
Real estate construction			5			-			11			2
Lease financing			6			3			13			9
Total commercial and commercial real estate			79			31			199			105
Consumer:
Real estate 1-4 family first mortgage			49			7			114			20
Real estate 1-4 family junior lien mortgage			49			28			119			63
Credit card			43			35			131			113
Other revolving credit and installment			178			117			580			363
Total consumer			319			187			944			559
Foreign			11			12			30			40
Total loan recoveries			409			230			1,173			704
Net loan charge-offs			(5,111	)		(1,995	)		(12,755	)		(5,035	)
Allowances related to business combinations/other			(2	)		10			(183	)		9
Balance, end of period		$	24,528			8,027			24,528			8,027
Components:
Allowance for loan losses		$	24,028			7,865			24,028			7,865
Reserve for unfunded credit commitments			500			162			500			162
Allowance for credit losses		$	24,528			8,027			24,528			8,027
Net loan charge-offs (annualized) as a percentage of average total loans			2.50	%		1.96			2.05			1.71

(1) Because the Wachovia acquisition was completed on December 31, 2008, charge-offs and recoveries for 2008 include only those of Wells Fargo, and exclude those of Wachovia for that period. Purchased credit-impaired loans (PCI) loans from Wachovia are included in total loans net of related purchase accounting adjustments. For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting adjustments. The Wachovia merger and the accounting for PCI loans both affect the comparability of certain ratios as described on page 32.

-36-

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES (1)

	Quarter ended
		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)		2009			2009			2009			2008			2008
Balance, beginning of quarter		$	23,530			22,846			21,711			8,027			7,517
Provision for credit losses (2)			6,111			5,086			4,558			8,444			2,495
Loan charge-offs:
Commercial and commercial real estate:
Commercial			(986	)		(755	)		(596	)		(756	)		(305	)
Real estate mortgage			(215	)		(152	)		(31	)		(10	)		(9	)
Real estate construction			(254	)		(236	)		(105	)		(85	)		(36	)
Lease financing			(88	)		(65	)		(20	)		(21	)		(19	)
Total commercial and commercial real estate			(1,543	)		(1,208	)		(752	)		(872	)		(369	)
Consumer:
Real estate 1-4 family first mortgage			(1,015	)		(790	)		(424	)		(210	)		(146	)
Real estate 1-4 family junior lien mortgage			(1,340	)		(1,215	)		(873	)		(728	)		(669	)
Credit card			(691	)		(712	)		(622	)		(485	)		(396	)
Other revolving credit and installment			(860	)		(802	)		(900	)		(683	)		(586	)
Total consumer			(3,906	)		(3,519	)		(2,819	)		(2,106	)		(1,797	)
Foreign			(71	)		(56	)		(54	)		(60	)		(59	)
Total loan charge-offs			(5,520	)		(4,783	)		(3,625	)		(3,038	)		(2,225	)
Loan recoveries:
Commercial and commercial real estate:
Commercial			62			51			40			24			27
Real estate mortgage			6			6			10			1			1
Real estate construction			5			4			2			1			-
Lease financing			6			4			3			4			3
Total commercial and commercial real estate			79			65			55			30			31
Consumer:
Real estate 1-4 family first mortgage			49			32			33			17			7
Real estate 1-4 family junior lien mortgage			49			44			26			26			28
Credit card			43			48			40			34			35
Other revolving credit and installment			178			198			204			118			117
Total consumer			319			322			303			195			187
Foreign			11			10			9			9			12
Total loan recoveries			409			397			367			234			230
Net loan charge-offs			(5,111	)		(4,386	)		(3,258	)		(2,804	)		(1,995	)
Allowances related to business combinations/other			(2	)		(16	)		(165	)		8,044			10
Balance, end of quarter		$	24,528			23,530			22,846			21,711			8,027
Components:
Allowance for loan losses		$	24,028			23,035			22,281			21,013			7,865
Reserve for unfunded credit commitments			500			495			565			698			162
Allowance for credit losses		$	24,528			23,530			22,846			21,711			8,027
Net loan charge-offs (annualized) as a percentage of average total loans			2.50	%		2.11			1.54			2.69			1.96
Allowance for loan losses as a percentage of:
Total loans			3.00			2.80			2.64			2.43			1.91
Nonaccrual loans			115			146			212			309			157
Nonaccrual loans and other nonperforming assets			102			126			177			233			125
Allowance for credit losses as a percentage of:
Total loans			3.07			2.86			2.71			2.51			1.95
Nonaccrual loans			118			149			217			319			161
Nonaccrual loans and other nonperforming assets			105			128			181			241			128

(1)

Because the Wachovia acquisition was completed on December 31, 2008, charge-offs and recoveries for 2008 include only those of Wells Fargo, and exclude those of Wachovia for that period. Purchased credit-impaired loans (PCI) loans from Wachovia are included in total loans net of related purchase accounting adjustments. For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting adjustments. The Wachovia merger and the accounting for PCI loans both affect the comparability of certain ratios as described on page 32.

(2)

Provision for credit losses for the quarter ended December 31, 2008, included $3.9 billion to conform reserve practices of Wells Fargo and Wachovia.

-37-

Wells Fargo & Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY(1)

	Nine months ended September 30,
(in millions)		2009			2008
Balance, beginning of period(2)		$	102,316			47,914
Cumulative effect from change in accounting for postretirement benefits (3)			-			(20	)
Adjustment for change of measurement date related to pension and other postretirement benefits (4)			-			(8	)
Net income before noncontrolling interests			9,654			5,439
Wells Fargo other comprehensive income (loss), net of tax, related to:
Translation adjustments			63			(20	)
Investment securities (5):
Unrealized losses related to factors other than credit (2)			(654	)		-
All other			11,220			(3,485	)
Derivative instruments and hedging activities			(189	)		(6	)
Defined benefit pension plans			570			3
Common stock issued			9,590			1,269
Common stock repurchased			(80	)		(1,162	)
Preferred stock released to ESOP			41			346
Common stock dividends			(1,891	)		(3,178	)
Preferred stock dividends			(1,558	)		-
Other, net			(158	)		167
Balance, end of period		$	128,924			47,259

(1)	On January 1, 2009, we adopted new accounting guidance on noncontrolling interests contained in Financial Accounting Standards Board (FASB) Accounting Standards Codification 810-10 (ASC 810-10),Consolidation(Statement of Financial Accounting Standards No. 160,Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51), on a retrospective basis for disclosure and, accordingly, prior period information reflects the adoption. ASC 810-10 requires that noncontrolling interests be reported as a component of total equity.
(2)	The impact on prior periods of adopting new accounting provisions for recording other-than-temporary impairment on debt securities as prescribed in ASC 320-10,Investments – Debt and Equity Securities (FASB Staff Position (FSP) FAS 115-2 and FAS 124-2,Recognition and Presentation of Other-Than-Temporary Impairments), was to increase the beginning balance of retained earnings and reduce the beginning balance of other comprehensive income by $85 million ($53 million after tax). The unrealized losses in Wells Fargo other comprehensive income in the first nine months of 2009 that related to factors other than credit, where the credit portion was recorded as other-than-temporary impairment in earnings, amounted to $1.04 billion ($654 million after tax).
(3)	On January 1, 2008, we adopted new accounting guidance for postretirement benefits in accordance with ASC 715,Compensation - Retirement Benefits (Emerging Issues Task Force (EITF) Issue No. 06-4,Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements, and Issue No. 06-10,Accounting for Collateral Assignment Split-Dollar Life Insurance Arrangements).
(4)	We adjusted the 2008 beginning balance of retained earnings to reflect the change in the measurement date for our pension and postretirement plan assets and benefit obligations as required by ASC 715,Compensation - Retirement Benefits(FAS 158,Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106, and 132(R)).
(5)	On March 31, 2009, we early adopted new fair value measurement provisions contained in ASC 820-10,Fair Value Measurements and Disclosures(FSP FAS 157-4,Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly). This guidance addresses determining fair values for securities in circumstances where the market for such securities is illiquid and transactions involve distressed sales. In such circumstances, ASC 820-10 permits use of other inputs in estimating fair value that may include pricing models.

 -38- 

Wells Fargo & Company and Subsidiaries

TIER 1 COMMON EQUITY(1)

	Quarter ended
		Sept. 30,			June 30,			Dec. 31,
(in billions)		2009			2009			2008
Total equity		$	128.9			121.4			102.3
Less:    Noncontrolling interests			(6.8	)		(6.8	)		(3.2	)
Total Wells Fargo stockholders’ equity			122.1			114.6			99.1
Less:   Preferred equity			(31.1	)		(31.0	)		(30.8	)
Goodwill and intangible assets (other than MSRs)			(37.5	)		(38.7	)		(38.1	)
Applicable deferred assets			5.3			5.5			5.6
Deferred tax asset limitation			-			(2.0	)		(6.0	)
MSRs over specified limitations			(1.5	)		(1.6	)		(1.5	)
Cumulative other comprehensive income			(4.0	)		0.6			6.9
Other			(0.3	)		(0.3	)		(0.8	)
Tier 1 common equity	(A)	$	53.0			47.1			34.4
Total risk-weighted assets (2)	(B)	$	1,022.9			1,047.7			1,101.3
Tier 1 common equity to total risk-weighted assets	(A)/(B)		5.18	%		4.49			3.13

(1)

Tier 1 common equity is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies, including the Federal Reserve in the Supervisory Capital Assessment Program, to assess the capital position of financial services companies. Tier 1 common equity includes total Wells Fargo stockholders’ equity, less preferred equity, goodwill and intangible assets (excluding MSRs), net of related deferred taxes, adjusted for specified Tier 1 regulatory capital limitations covering deferred taxes, MSRs, and cumulative other comprehensive income. Management reviews Tier 1 common equity along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.

(2)

Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets. The Company’s September 30, 2009, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $848.5 billion and derivative and off-balance sheet risk-weighted assets of $174.4 billion.

-39-

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS(1)

	Community				Wholesale					Wealth, Brokerage											Consolidated
(income/expense in millions,	Banking				Banking					and Retirement					Other (2)						Company
average balances in billions)	2009		2008		2009		2008			2009			2008		2009			2008			2009		2008
Quarter ended Sept. 30,
Net interest income (3)	$	8,700		5,293		2,535		1,065			743			223		(294	)		(200	)		11,684		6,381
Provision for credit losses		4,572		2,202		1,361		294			234			3		(56	)		(4	)		6,111		2,495
Noninterest income		6,443		3,209		2,381		631			2,223			458		(265	)		(302	)		10,782		3,996
Noninterest expense		6,802		3,982		2,630		1,329			2,314			498		(62	)		(308	)		11,684		5,501
Income (loss) before income tax expense (benefit)		3,769		2,318		925		73			418			180		(441	)		(190	)		4,671		2,381
Income tax expense (benefit)		1,046		764		325		(30	)		151			68		(167	)		(72	)		1,355		730
Net income (loss) before noncontrolling interests		2,723		1,554		600		103			267			112		(274	)		(118	)		3,316		1,651
Less: Net income from noncontrolling interests		56		14		2		-			23			-		-			-			81		14
Net income (loss) (4)	$	2,667		1,540		598		103			244			112		(274	)		(118	)		3,235		1,637
Average loans	$	534.7		287.1		247.0		116.3			45.4			15.9		(16.9	)		(15.1	)		810.2		404.2
Average assets		785.2		452.3		369.3		158.1			108.6			19.1		(17.0	)		(15.3	)		1,246.1		614.2
Average core deposits		530.3		252.8		146.9		64.4			116.4			23.5		(34.3	)		(20.6	)		759.3		320.1
Nine months ended Sept. 30,
Net interest income (3)	$	25,981		15,246		7,381		3,116			2,244			576		(782	)		(519	)		34,824		18,419
Provision for credit losses		12,840		6,833		2,644		701			374			9		(103	)		(8	)		15,755		7,535
Noninterest income		17,922		10,328		7,680		3,170			6,347			1,422		(783	)		(939	)		31,166		13,981
Noninterest expense		21,625		12,187		7,968		4,031			6,822			1,480		(216	)		(910	)		36,199		16,788
Income (loss) before income tax expense (benefit)		9,438		6,554		4,449		1,554			1,395			509		(1,246	)		(540	)		14,036		8,077
Income tax expense (benefit)		2,734		2,265		1,590		385			531			193		(473	)		(205	)		4,382		2,638
Net income (loss) before noncontrolling interests		6,704		4,289		2,859		1,169			864			316		(773	)		(335	)		9,654		5,439
Less: Net income (loss) from noncontrolling interests		190		43		14		7			(2	)		-		-			-			202		50
Net income (loss) (4)	$	6,514		4,246		2,845		1,162			866			316		(773	)		(335	)		9,452		5,389
Average loans	$	542.7		284.4		260.7		108.3			46.0			14.8		(16.3	)		(14.2	)		833.1		393.3
Average assets		794.1		441.3		384.8		149.9			107.6			17.9		(16.4	)		(14.4	)		1,270.1		594.7
Average core deposits		537.4		250.2		141.2		65.8			110.9			22.3		(29.8	)		(19.7	)		759.7		318.6

(1)	The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. As a result of the combination of Wells Fargo and Wachovia, management realigned its segments into the following three lines of business: Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement. We revised prior period information to reflect this realignment; however, segment information for periods prior to first quarter 2009 does not include Wachovia information.
(2)	“Other” includes integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement, largely representing wealth management customers serviced and products sold in the stores.
(3)	Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.
(4)	Represents segment net income (loss) for Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement segments and Wells Fargo net income for the Consolidated Company.

-40-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS(1)

	Quarter ended
		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(income/expense in millions, average balances in billions)		2009			2009			2009			2008			2008
COMMUNITY BANKING
Net interest income (2)		$	8,700			8,784			8,497			5,296			5,293
Provision for credit losses			4,572			4,264			4,004			6,789			2,202
Noninterest income			6,443			6,023			5,456			2,096			3,209
Noninterest expense			6,802			7,665			7,158			4,320			3,982
Income (loss) before income tax expense (benefit)			3,769			2,878			2,791			(3,717	)		2,318
Income tax expense (benefit)			1,046			798			890			(1,606	)		764
Net income (loss) before noncontrolling interests			2,723			2,080			1,901			(2,111	)		1,554
Less: Net income (loss) from noncontrolling interests			56			72			62			(11	)		14
Segment net income (loss)		$	2,667			2,008			1,839			(2,100	)		1,540
Average loans			534.7			540.7			552.8			288.9			287.1
Average assets			785.2			799.2			797.9			466.0			452.3
Average core deposits			530.3			543.9			538.0			260.6			252.8
WHOLESALE BANKING
Net interest income (2)		$	2,535			2,479			2,367			1,400			1,065
Provision for credit losses			1,361			738			545			414			294
Noninterest income			2,381			2,759			2,540			515			631
Noninterest expense			2,630			2,807			2,531			1,251			1,329
Income before income tax expense (benefit)			925			1,693			1,831			250			73
Income tax expense (benefit)			325			618			647			31			(30	)
Net income before noncontrolling interests			600			1,075			1,184			219			103
Less: Net income from noncontrolling interests			2			8			4			4			-
Segment net income		$	598			1,067			1,180			215			103
Average loans			247.0			263.5			271.9			124.2			116.3
Average assets			369.3			381.7			403.8			163.2			158.1
Average core deposits			146.9			138.1			138.5			81.0			64.4
WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)		$	743			764			737			251			223
Provision for credit losses			234			115			25			293			3
Noninterest income			2,223			2,222			1,902			417			458
Noninterest expense			2,314			2,289			2,219			512			498
Income (loss) before income tax expense (benefit)			418			582			395			(137	)		180
Income tax expense (benefit)			151			222			158			(52	)		68
Net income (loss) before noncontrolling interests			267			360			237			(85	)		112
Less: Net income (loss) from noncontrolling interests			23			(3	)		(22	)		-			-
Segment net income (loss)		$	244			363			259			(85	)		112
Average loans			45.4			45.9			46.7			16.5			15.9
Average assets			108.6			110.2			104.0			20.0			19.1
Average core deposits			116.4			113.5			102.6			25.6			23.5
OTHER(3)
Net interest income (2)		$	(294	)		(263	)		(225	)		(223	)		(200	)
Provision for credit losses			(56	)		(31	)		(16	)		948			(4	)
Noninterest income			(265	)		(261	)		(257	)		(275	)		(302	)
Noninterest expense			(62	)		(64	)		(90	)		(273	)		(308	)
Loss before income tax benefit			(441	)		(429	)		(376	)		(1,173	)		(190	)
Income tax benefit			(167	)		(163	)		(143	)		(409	)		(72	)
Net loss before noncontrolling interests			(274	)		(266	)		(233	)		(764	)		(118	)
Less: Net income from noncontrolling interests			-			-			-			-			-
Other net loss		$	(274	)		(266	)		(233	)		(764	)		(118	)
Average loans			(16.9	)		(16.2	)		(15.8	)		(15.7	)		(15.1	)
Average assets			(17.0	)		(16.2	)		(16.0	)		(16.0	)		(15.3	)
Average core deposits			(34.3	)		(29.8	)		(25.2	)		(22.2	)		(20.6	)
CONSOLIDATED COMPANY
Net interest income (2)		$	11,684			11,764			11,376			6,724			6,381
Provision for credit losses			6,111			5,086			4,558			8,444			2,495
Noninterest income			10,782			10,743			9,641			2,753			3,996
Noninterest expense			11,684			12,697			11,818			5,810			5,501
Income (loss) before income tax expense (benefit)			4,671			4,724			4,641			(4,777	)		2,381
Income tax expense (benefit)			1,355			1,475			1,552			(2,036	)		730
Net income (loss) before noncontrolling interests			3,316			3,249			3,089			(2,741	)		1,651
Less: Net income (loss) from noncontrolling interests			81			77			44			(7	)		14
Wells Fargo net income (loss)		$	3,235			3,172			3,045			(2,734	)		1,637
Average loans			810.2			833.9			855.6			413.9			404.2
Average assets			1,246.1			1,274.9			1,289.7			633.2			614.2
Average core deposits			759.3			765.7			753.9			345.0			320.1

(1)	The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. As a result of the combination of Wells Fargo and Wachovia, management realigned its segments into the following three lines of business: Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement. We revised prior period information to reflect this realignment; however, segment information for periods prior to first quarter 2009 does not include Wachovia information.
(2)	Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.
(3)	“Other” includes integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement, largely representing wealth management customers serviced and products sold in the stores. “Other” also includes the $1.2 billion provision for credit losses recorded at the enterprise level in fourth quarter 2008 to conform Wachovia estimated loss emergence coverage periods to Wells Fargo policies.

-41-

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2009			2009			2009			2008			2008
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	15,690			12,391			14,714			19,184			19,333
Purchases		-			-			-			-			57
Acquired from Wachovia (1)		-			-			34			479			-
Servicing from securitizations or asset transfers		1,517			2,081			1,447			808			851
Net additions		1,517			2,081			1,481			1,287			908
Changes in fair value:
Due to changes in valuation model inputs or assumptions (2)		(2,078	)		2,316			(2,824	)		(5,129	)		(546	)
Other changes in fair value (3)		(629	)		(1,098	)		(980	)		(628	)		(511	)
Total changes in fair value		(2,707	)		1,218			(3,804	)		(5,757	)		(1,057	)
Fair value, end of quarter	$	14,500			15,690			12,391			14,714			19,184

(1)	First quarter 2009 results reflect refinements to initial purchase accounting adjustments.
(2)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.
(3)	Represents changes due to collection/realization of expected cash flows over time.

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2009			2009			2009			2008			2008
Amortized MSRs:
Balance, beginning of quarter	$	1,205			1,257			1,446			433			442
Purchases		-			6			4			3			2
Acquired from Wachovia (1)		-			(8	)		(127	)		1,021			-
Servicing from securitizations or asset transfers		21			18			4			7			8
Amortization		(64	)		(68	)		(70	)		(18	)		(19	)
Balance, end of quarter (2)	$	1,162			1,205			1,257			1,446			433
Fair value of amortized MSRs:
Beginning of quarter	$	1,311			1,392			1,555			622			595
End of quarter		1,277			1,311			1,392			1,555			622

(1)	2009 periods reflect refinements to initial purchase accounting adjustments.
(2)	There was no valuation allowance recorded for the periods presented.

-42-

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2009			2009			2009			2008			2008
Servicing income, net:
Servicing fees (1)	$	1,039			888			1,018			952			980
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)		(2,078	)		2,316			(2,824	)		(5,129	)		(546	)
Other changes in fair value (3)		(629	)		(1,098	)		(980	)		(628	)		(511	)
Total changes in fair value of residential MSRs		(2,707	)		1,218			(3,804	)		(5,757	)		(1,057	)
Amortization		(64	)		(68	)		(70	)		(18	)		(19	)
Net derivative gains (losses) from economic hedges (4)		3,605			(1,285	)		3,699			4,783			621
Total servicing income, net	$	1,873			753			843			(40	)		525
Market-related valuation changes to MSRs and economic   hedges (2)+(4)	$	1,527			1,031			875			(346	)		75

(1)	Includes contractually specified servicing fees, late charges and other ancillary revenues.
(2)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.
(3)	Represents changes due to collection/realization of expected cash flows over time.
(4)	Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs.

		Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in billions)		2009			2009		2009		2008		2008
Managed servicing portfolio:
Residential mortgage loans serviced for others (1)		$	1,419			1,394		1,379		1,388		1,323
Owned loans serviced (2)			260			270		267		268		96
Total owned servicing of residential mortgage loans			1,679			1,664		1,646		1,656		1,419
Commercial mortgage loans serviced for others			458			470		474		472		142
Total owned servicing of loans	��		2,137			2,134		2,120		2,128		1,561
Sub-servicing			21			22		23		26		19
Total managed servicing portfolio		$	2,158			2,156		2,143		2,154		1,580
Ratio of MSRs to related loans serviced for others			0.83	%		0.91		0.74		0.87		1.34
Weighted-average note rate (mortgage loans serviced for others)			5.72			5.74		5.83		5.92		5.98

(1)	Consists of 1-4 family first mortgage loans.
(2)	Consists of residential mortgages held for sale and 1-4 family first mortgage loans.

-43-

Wells Fargo & Company and Subsidiaries

SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA

	Quarter ended
	Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in billions)	2009			2009		2009		2008		2008
Application data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	123			194		190		116		83
Refinances as a percentage of applications		62	%		73		82		68		39
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	62			90		100		71		41

	Quarter ended
	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in billions)	2009		2009		2009		2008		2008
Residential Real Estate Originations:(1)
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	50		71		51		20		23
Correspondent/Wholesale		45		57		49		28		25
Home equity loans and lines		1		1		1		1		2
Wells Fargo Financial		-		-		-		1		1
Total quarter-to-date	$	96		129		101		50		51
Total year-to-date	$	326		230		101		230		180

(1) Consists of residential real estate originations from all Wells Fargo channels.