Wells Fargo & Company (WFC) 8-K Wells Fargo Reports $2.5 Billion In Net Income

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

Wednesday, April 21, 2010

WELLS FARGO REPORTS $2.5 BILLION IN NET INCOME

• Strong, broad-based earnings

— Net income of $2.5 billion after integration expenses of $247 million after-tax

— Earnings per common share of $0.45 after integration expenses of $0.05 per common share

— All business segments contributed to the strong earnings results: Net income from Community Banking of $1.5 billion; Wholesale Banking of $1.2 billion; and Wealth, Brokerage and Retirement of $282 million

— Pre-tax pre-provision profit¹ (PTPP) of $9.3 billion; fifth consecutive quarter PTPP exceeded $9 billion

• Revenue of $21.4 billion, up 2 percent from first quarter 2009

— Fee income up 7 percent year over year, led by 20 percent growth in trust and investment fees, 7 percent growth in insurance revenue and 14 percent growth in processing and other fees

— Net interest margin of 4.27 percent, up 11 basis points from a year ago, highest among large bank peers

— Average checking and savings deposits up 14 percent from a year ago

— Mortgage application pipeline of $59 billion at March 31, 2010, up $2 billion from December 31, 2009

• Credit believed to have “turned the corner”

— Provision expense down $583 million from prior quarter and currently expected to continue to decline over the course of 2010; provision for credit losses equaled net charge-offs in first quarter

— Net charge-offs declined $83 million to $5.3 billion. First quarter charge-offs included $123 million related to newly consolidated loans due to the adoption of FAS 167² and $145 million related to newly issued regulatory charge-off guidance applicable to collateral-dependent residential real estate loan modifications. All other charge-offs were $5.1 billion, down from $5.4 billion in fourth quarter. Commercial and commercial real estate charge-offs declined $356 million from fourth quarter 2009

1	See footnote 2 on page 18 for information on PTPP.
2	FASB guidance effective beginning January 1, 2010, which amended the accounting for the consolidation of variable interest entities (see page 27).

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— Early-stage delinquencies improved across major consumer loan portfolios, including home equity, auto dealer services, credit card and Wells Fargo Financial consumer real estate and auto portfolios

— New inflows to nonaccruals declined in first quarter, including declines in non-FAS 167 consumer real estate inflows, a decline in total commercial and commercial real estate inflows, with a 27 percent decline in commercial real estate inflows. Growth in nonaccrual balances largely reflected the time required to work with homeowners to modify loans before foreclosing and efforts to work with developers rather than foreclose

— Allowance for credit losses increased to $25.7 billion, primarily due to $693 million addition to allowance upon adoption of FAS 167; allowance at 3.3 percent of loans and almost 5 times quarterly net charge-offs

— Remaining purchased credit impaired (PCI) nonaccretable balance was $19.9 billion at March 31, 2010; PCI portfolio in the aggregate continued to perform at or better than original assumptions

— Provided $402 million to mortgage repurchase reserve (charged to mortgage origination income)

• Wachovia merger integration on track

— Converted banking stores in Arizona, Illinois and Nevada in March; credit card business converted April 10-11; California banking store conversions scheduled for April 24-25, 2010

— Estimated total merger expenses of approximately $5 billion, including approximately $2 billion in 2010

— Achieved over 70 percent of targeted consolidated run-rate savings          

• Continued to build capital and strengthen the balance sheet

— Tier 1 capital of $98.3 billion and Tier 1 capital ratio of 10.0 percent, up from 9.3 percent at December 31, 2009

— Tier 1 leverage ratio of 8.3 percent, up from 7.9 percent at December 31, 2009

— Tier 1 common equity of $70.1 billion, Tier 1 common equity ratio of 7.1 percent, up from $65.5 billion and 6.5 percent at December 31, 2009 (see page 37 for more information on Tier 1 common equity)

— Reduced high-risk/non-strategic consumer loans by $4.3 billion in the quarter, $23.2 billion cumulatively since Wachovia acquisition

— Unrealized gains on securities available for sale portfolio of $7.4 billion

• Supplied more than $128 billion in credit during the quarter, including mortgage originations and consumer and commercial loans and lines of credit

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• Loan modification efforts continued to help homeowners remain in their homes

— 523,336 active and completed trial modifications between January 2009 and March 31, 2010:

o 144,932Home Affordability Modification Program (HAMP) active trial and completed modifications, including 30,014 permanent HAMP modifications

o Nearly 380,000 proprietary trial and completed modifications

— Since January 2009, added more than 10,000 staff focused on home preservation for total of 17,400 as of March 31, 2010

— On March 17^th, Wells Fargo announced its participation in the government’sSecond-Lien Modification Program(2MP) under HAMP to help struggling homeowners with a reduction in their home equity loan payments

Selected Financial Information

	Quarter ended
	Mar. 31,			Dec. 31,		Mar. 31,
	2010			2009		2009
Earnings
Diluted earnings per common share	$	0.45			0.08		0.56
Wells Fargo net income (in billions)		2.55			2.82		3.05
Asset Quality
Net charge-offs as % of avg. total loans		2.71	%		2.71		1.54
Nonperforming loans as % of total loans		3.49			3.12		1.25
Allowance as a % of total loans		3.28			3.20		2.71
Other
Revenue (in billions)	$	21.45			22.70		21.02
Average loans (in billions)		797.4			792.4		855.6
Average core deposits (in billions)		759.2			770.8		753.9
Net interest margin		4.27	%		4.31		4.16

SAN FRANCISCO — Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $0.45 and net income of $2.5 billion for first quarter 2010.

“Once again the resiliency and advantages of Wells Fargo’s diversified business model proved themselves in a difficult business environment, even as we continued to make smooth progress with our industry’s largest merger, our integration with Wachovia,” said Chairman and CEO John Stumpf. “Though the economy continues to present challenges, and we’ve yet to see consumers and businesses resume past levels of spending and borrowing, our teams at Wells Fargo still found opportunities to serve the financial needs of customers, setting the stage for a first quarter performance that featured contributions from each of our core business groups.

“We’re encouraged by signs of improvement in the credit cycle, and by the savings and cross sell opportunities we’re realizing as more Wachovia bank stores convert to Wells Fargo. To capitalize on these emerging opportunities, our focus will be on just that, keeping our focus, so we can continue to deliver the

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performance investors expect, the services and products customers demand, and the leadership our communities desire. Whether it is helping customers plan for retirement, or households avoid foreclosure, or financing the goals of entrepreneurs, we’re confident Wells Fargo will continue to be uniquely positioned to contribute to America’s economic recovery.”

Financial Performance

“Our company earned $2.5 billion in the quarter, a great example of how Wells Fargo’s business model produces solid results in different stages of the economic cycle,” said Chief Financial Officer Howard Atkins. “While loan demand remained soft in the quarter and net mortgage hedging results declined to levels of a year ago, businesses as diverse as asset-based lending, debit card, insurance, merchant services, student lending and retirement services all showed solid gains. Credit metrics in many portfolios— including loss rates and early indicators — performed better than our previous expectations for first quarter. Based on results for the last few quarters and current loss projections, we believe that credit at Wells Fargo has turned the corner with provision expenses already having peaked in third quarter 2009 and net charge-offs having peaked in fourth quarter 2009. We continued to build capital in the first quarter, with Tier 1 common reaching 7.10 percent, up 64 basis points in the quarter entirely on internal capital generation, Tier 1 leverage reaching 8.3 percent and Tier 1 capital reaching 10.0 percent.”

Revenue

Revenue in the first quarter was $21.4 billion and pre-tax pre-provision profit was $9.3 billion. The Company has earned at least $9.0 billion in pre-tax pre-provision profit each quarter since the Wachovia acquisition. “Despite a $58 billion decline in average total loans, revenue grew 2 percent from the prior year, reflecting the diversity of our revenue sources,” said Atkins. Year-over-year revenue was driven by 20 percent growth in trust and investment fees, 7 percent growth in insurance fees, 14 percent growth in processing and other fees, and an 11 basis point increase in the net interest margin. Mortgage banking revenues were flat from the prior year. On a linked-quarter basis, total revenue declined $1.2 billion, due primarily to the reduction in mortgage hedging results to levels more typical for this point in the cycle.

Net Interest Income

Net interest income of $11.1 billion declined only 2 percent from a year ago despite a 7 percent, or $58 billion, decline in average loans. The net interest margin was 4.27 percent, up 11 basis points from a year ago largely due to substantial growth in core consumer and business checking and savings accounts.

Noninterest Income

Noninterest income was $10.3 billion, up 7 percent from a year ago. On a linked-quarter basis, noninterest income was down $895 million due primarily to lower net mortgage hedge results, seasonality and two fewer days in the quarter. First quarter noninterest income included:

• Mortgage banking fees of $2.5 billion, down $34 million from a year ago:

— $1.1 billion in revenue from mortgage loan originations/sales activities on $76 billion of residential mortgage originations and $125 billion of applications. Origination revenue declined

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year over year on a 25 percent decline in originations, largely due to a decline in refinance activity. Mortgage origination revenue was also reduced by a $402 million addition to the repurchase reserve in first quarter 2010

—

$1.4 billion of servicing income, up $460 million year over year, largely attributable to other changes in fair value due to a decline in pay-offs. Mortgage hedging results were roughly flat from a year ago and declined $893 million linked quarter largely due to a change in the composition of the hedge toward more interest rate swaps and lower coupon mortgage forwards designed to maintain ongoing hedge effectiveness. The ratio of total MSRs as a percent of loans serviced for others declined 2 basis points to 0.89 percent

• Trust and investment fees of $2.7 billion, up 20 percent year over year, reflecting continued growth in new customers, higher transaction volumes and stronger equity markets

• Service charges on deposit accounts of $1.3 billion, down 4 percent year over year, as consumers have decreased their spending and increased their savings, which offset the impact on service fees from continued strong account growth

• Insurance revenue of $621 million, up 7 percent year over year, reflecting customer growth and higher crop insurance revenues

• Trading revenues of $537 million, representing less than 3 percent of total consolidated revenue

The Company had net unrealized securities gains of $7.4 billion at March 31, 2010, compared with $5.6 billion at December 31, 2009.

Noninterest Expense

Noninterest expense of $12.1 billion, which included $380 million of merger integration costs and $11.7 billion of all other expense, was down from $12.8 billion in fourth quarter 2009. First quarter credit resolution costs, including expenses associated with foreclosed assets, loan modifications and other home preservation activities, were approximately $250 million higher than a year ago. “Of our approximately $5 billion of estimated total integration costs, we expect approximately $2 billion to be expensed in 2010, as we convert banking stores and lines of business, and continue to build infrastructure,” said Atkins. “In addition to merger integration, we continued to invest for long-term growth throughout the Company, adding people in regional banking and commercial banking as we apply Wells Fargo’s model to the eastern markets, and investing in technology to improve service across our franchise.” The efficiency ratio was 56.5 percent in both first quarter 2010 and fourth quarter 2009 and 56.2 percent in first quarter 2009.

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Summary of Noninterest Expense

	Quarter ended
	Mar. 31,		Dec. 31,		Mar. 31,
(in millions)	2010		2009		2009
Merger integration costs:
Wachovia	$	380		450		77
All other		—		1		128
All other noninterest expense		11,737		12,370		11,613
Total noninterest expense	$	12,117		12,821		11,818

Income Taxes

The Company’s income tax expense for the quarter included $53 million ($0.01 per common share) due to the impact of health care legislation on the Company’s postretirement medical benefits deferred tax asset.

Loans

Average total loans were $797.4 billion, up $4.9 billion from fourth quarter 2009. Total loans at March 31, 2010, included $23.4 billion related to the adoption of FAS 167. “While we continued to supply significant amounts of credit to consumers and businesses in the first quarter, as we have done throughout the credit crunch, loan demand remained soft,” said Atkins. “In addition, we continued to reduce high-risk/non-strategic consumer assets, which were down $4.3 billion in first quarter and down $23.2 billion cumulatively since the Wachovia acquisition.”

Deposits

Average total core deposits were $759.2 billion, compared with $770.8 billion in fourth quarter 2009 and $753.9 billion in first quarter 2009. Of the core deposits, $664.4 billion represent transaction accounts or low-cost savings accounts from consumer and commercial customers, which increased 2 percent (annualized) from $661.4 billion in fourth quarter 2009. Average mortgage escrow deposits were $24.6 billion, compared with $27.5 billion in fourth quarter 2009. Consumer checking accounts grew a net 7.0 percent from first quarter 2009. “Year over year, we saw strong growth in noninterest-bearing deposits,” said Atkins. “The linked-quarter decline in total deposits was driven partly by the maturity of higher-cost certificates of deposits over the last two quarters.”

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Capital

“We continued to build capital during the first quarter, with all ratios higher at March 31, 2010, than year-end,” said Atkins. The adoption of FAS 167 resulted in the consolidation of $18.6 billion of net incremental GAAP assets and $6 billion of risk-adjusted assets, with less than a 1 basis point impact on the Company’s Tier 1 common equity ratio.

	Mar. 31,			Dec. 31,		Mar. 31,
	2010 (1)			2009		2009
Tier 1 capital		10.0	%		9.3		8.3
Total capital		13.9			13.3		12.3
Tier 1 leverage		8.3			7.9		7.1
Tier 1 common equity (2)		7.1			6.5		3.1

(1)	March 31, 2010, ratios are preliminary.
(2)	See table on page 37 for more information on Tier 1 common equity.

Credit Quality

“We believe quarterly provision expenses and quarterly total credit losses have peaked,” said Chief Credit and Risk Officer Mike Loughlin. “Losses in the first quarter of $5.3 billion were down from $5.4 billion in fourth quarter 2009, even after $123 million of FAS 167 losses taken in the first quarter and $145 million due to newly issued regulatory guidance requiring the Company to charge-off certain collateral-dependent residential real estate loans that have been modified. The costs related to this charge had previously been reserved. Our credit picture has improved earlier than we had anticipated. In the consumer portfolio, lower early stage delinquencies, better delinquency roll rates, and improved values for residential real estate and autos were evident in the first quarter. In the commercial portfolio (including commercial real estate) losses declined $356 million from fourth quarter 2009 and may indicate stabilization and an earlier-than-expected loss peak.

“This improvement in credit quality can be partly attributed to actions we took as early as 2007, including significant investment in collections, loss mitigation and workout teams; a refined consumer credit policy that reduced maximum loan-to-value requirements and virtually eliminated stated income as an acceptable element of loan applications; and the establishment of a number of run-off/liquidating portfolios. These actions have produced high quality subsequent vintages, and allowed us to focus our loss remediation efforts in an efficient fashion.

“Nonperforming assets (NPAs) continued to increase, although at a slower rate than in the past three quarters, with all of the first quarter increase coming from consumer real estate loans and commercial real estate loans. We expect NPAs to continue to increase gradually and peak before year end. The peak in NPAs should naturally lag the credit loss peak, reflecting an environment where retaining these assets is the most viable economic option for the Company and the best way to help borrowers recover financially.

“Our provision in the first quarter equaled net charge-offs. The loan loss reserve increase from year end is fully attributable to assets brought on balance sheet due to the adoption of FAS 167.”

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Credit Losses

First quarter net charge-offs were $5.33 billion, or 2.71 percent of average loans (annualized), compared with fourth quarter net charge-offs of $5.41 billion, or 2.71 percent. Total credit losses included $1.3 billion of commercial and commercial real estate loans (1.79 percent) and $4.0 billion of consumer loans (3.45 percent) as shown in the following table. First quarter charge-offs included $123 million in losses associated with assets brought onto the balance sheet upon adoption of FAS 167 and $145 million in losses associated with newly issued regulatory charge-off guidance applicable to collateral-dependent real estate loan modifications.

Net Loan Charge-Offs (1)

	Quarter ended
	March 31, 2010											December 31, 2009					September 30, 2009
			Collateral-				Total		As a					As a					As a
			dependent				net loan		% of			Net loan		% of			Net loan		% of
	Consolidated		modified		All		charge-		average			charge-		average			charge-		average
(in millions)	VIEs (2)		loans (3)		other		offs		loans			offs		loans			offs		loans
Commercial and commercial real estate:
Commercial	$	—		—		650		650		1.68	%	$	927		2.24	%	$	924		2.09	%
Real estate mortgage		—		—		327		327		1.27			349		1.32			209		0.80
Real estate construction		—		—		338		338		4.74			375		4.82			249		3.01
Lease financing		—		—		29		29		0.85			49		1.37			82		2.26
Total commercial and commercial real estate		—		—		1,344		1,344		1.79			1,700		2.15			1,464		1.78
Consumer:
Real estate 1-4 family first mortgage		97		46		1,168		1,311		2.17			1,018		1.74			966		1.63
Real estate 1-4 family junior lien mortgage		15		99		1,335		1,449		5.56			1,329		5.09			1,291		4.85
Credit card		—		—		643		643		11.17			634		10.61			648		10.96
Other revolving credit and installment		11		—		536		547		2.45			686		3.06			682		3.00
Total consumer		123		145		3,682		3,950		3.45			3,667		3.24			3,587		3.13
Foreign		—		—		36		36		0.52			46		0.62			60		0.79
Total	$	123		145		5,062		5,330		2.71	%	$	5,413		2.71	%	$	5,111		2.50	%

(1)	Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 30 of the accounting for purchased credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.
(2)	The majority of losses associated with consolidated VIE loans on nonaccrual status will ultimately be borne by third party security holders in future periods.
(3)	Comptroller of the Currency CNBE Policy Guidance 2010-11,Policy Interpretation– Supervisory Memorandum 2009-7,Guidance for the Treatment of Residential Real Estate Loan Modifications.

Nonperforming assets

Total nonperforming assets were $31.5 billion (4.0 percent of total loans) at March 31, 2010, up 14 percent from $27.6 billion at December 31, 2009. At the end of the first quarter, nonperforming assets included $27.3 billion of nonperforming loans and $4.2 billion of foreclosed assets and repossessed real estate and vehicles. “The rate of growth in nonperforming assets continued to decline, and the estimated remaining loss content in these assets is significantly mitigated,” said Loughlin.

Growth in nonaccrual loans slowed in first quarter, increasing from fourth quarter 2009 by $2.9 billion, including $909 million related to assets brought on the balance sheet upon adoption of FAS 167. In the first quarter, substantially all of the change in nonaccrual loans related to consumer and commercial real estate loans, and inflows of new nonaccruals declined on a linked quarter basis, including declines in non-FAS 167 consumer real estate inflows and total commercial and commercial real estate inflows, with a

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27 percent decline in commercial real estate inflows. Loss expectations for nonaccrual loans are driven by delinquency rates, default probabilities and severities. While nonaccrual loans are not free of loss content, the loss exposure remaining in these balances is significantly mitigated by four factors. First, 91 percent of nonaccrual loans are secured. Second, losses have already been recognized on 37 percent of the consumer nonaccruals and 29 percent of commercial nonaccruals and, when a residential nonaccrual loan reaches 180 days past due, it is our policy to write these loans down to net realizable value. Third, as of March 31, 2010, 45 percent of commercial nonaccrual loans were current on interest. Fourth, there are certain nonaccruals for which there are loan level reserves in the allowance, while others are covered by general reserves.

Nonaccrual Loans and Other Nonperforming Assets

	March 31, 2010									December 31, 2009 (1)					September 30, 2009
							As a					As a					As a
							% of					% of					% of
	Consolidated		All		Total		total			Total		total			Total		total
($ in millions)	VIEs (2)		other		balances		loans			balances		loans			balances		loans
Commercial and commercial real estate:
Commercial	$	—		4,273		4,273		2.84	%	$	4,397		2.78	%		4,540		2.68	%
Real estate mortgage		7		4,750		4,757		4.55			3,984		3.80			2,856		2.76
Real estate construction		—		2,915		2,915		10.47			3,025		10.18			2,711		8.55
Lease financing		—		185		185		1.33			171		1.20			157		1.11
Total commercial and commercial real estate		7		12,123		12,130		4.09			11,577		3.77			10,264		3.22
Consumer:
Real estate 1-4 family first mortgage		821		11,526		12,347		5.13			10,100		4.40			8,132		3.50
Real estate 1-4 family junior lien mortgage		79		2,276		2,355		2.27			2,263		2.18			1,985		1.90
Other revolving credit and installment		2		332		334		0.37			332		0.37			344		0.38
Total consumer		902		14,134		15,036		3.30			12,695		2.84			10,461		2.32
Foreign		—		135		135		0.48			146		0.50			144		0.48
Total nonaccrual loans		909		26,392		27,301		3.49			24,418		3.12			20,869		2.61
Foreclosed assets:
GNMA loans		—		1,111		1,111					960					840
All other		95		2,875		2,970					2,199					1,687
Total foreclosed assets		95		3,986		4,081					3,159					2,527
Real estate and other nonaccrual investments		—		118		118					62					55
Total nonaccrual loans and other nonperforming assets	$	1,004		30,496		31,500		4.03	%	$	27,639		3.53	%		23,451		2.93	%
Change from prior quarter:
Total nonaccrual loans	$	909		1,974		2,883				$	3,549					5,071
Total nonperforming assets		1,004		2,857		3,861					4,188					5,109

(1)	The Company consolidated certain VIEs prior to the adoption of FAS 167 on January 1, 2010. At December 31, 2009, consolidated VIE loans totaled $561 million, of which there were no loans on nonaccrual status.
(2)	The majority of losses associated with consolidated VIE loans on nonaccrual status will ultimately be borne by third party security holders in future periods.

Residential mortgage nonaccrual loans increased largely due to slower disposition, not increased quarterly inflow. Federal government programs, such as HAMP, and Wells Fargo proprietary programs, such as the Company’s Pick-a-Pay Mortgage Assistance program, require customers to provide updated documentation and complete trial repayment periods before the loan can be removed from nonaccrual status. In addition, for loans in foreclosure, many states, including California and Florida where Wells Fargo has significant exposures, have enacted legislation that significantly increases the time frames to

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complete the foreclosure process, meaning that loans will remain in nonaccrual status for longer periods. “At the conclusion of the foreclosure process, we continue to sell real estate owned in a very timely fashion,” said Loughlin.

“When a consumer real estate loan is 120 days past due, we move it to nonaccrual status and when the loan reaches 180 days past due it is our policy to write these loans down to net realizable value. Thereafter, we revalue each loan in nonaccrual status regularly and recognize additional charges if needed. Our quarterly market classification process, employed since late 2007, indicates that most MSAs have stabilized and we anticipate manageable additional write-downs while properties work through the foreclosure process.

“While foreclosed assets increased 30 percent in the quarter, the majority of the projected loss content in these assets has already been accounted for, and increases to this population of assets should have minimal additional impact to expected loss levels.

“Given our real estate-secured loan concentrations and the economic conditions affecting these industries, we anticipate continuing to hold a high level of NPAs on our balance sheet,” said Loughlin. “We expect the rate of growth in nonperforming asset balances to continue to decline, but expect balances to continue increasing modestly near term. We remain focused on proactively identifying problem credits, moving them to nonperforming status and recording the loss content in a timely manner. We’ve increased and will continue to increase staffing in our workout and collection organizations to ensure these troubled borrowers receive the attention and help they need.”

Loans 90 days or more past due and still accruing totaled $21.8 billion at March 31, 2010, and $22.2 billion at December 31, 2009. For the same periods, the totals included $15.9 billion and $15.3 billion, respectively, in advances pursuant to the Company’s servicing agreement to GNMA mortgage pools and similar loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs. At March 31, 2010, loans 90 days or more past due and still accruing included $107 million associated with consolidated VIE loans. See the “Allowance for Credit Losses” section in this news release for additional information on the impact of losses associated with consolidated VIE loans.

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

	Mar. 31,						Dec. 31,
	2010						2009 (3)
	Consolidated		All		Total		Total
(in millions)	VIEs (2)		other		balances		balances
Commercial and commercial real estate:
Commercial	$	—		561		561		590
Real estate mortgage		—		1,129		1,129		1,183
Real estate construction		—		605		605		740
Total commercial and commercial real estate		—		2,295		2,295		2,513
Consumer:
Real estate 1-4 family first mortgage		94		1,187		1,281		1,623
Real estate 1-4 family junior lien mortgage		10		404		414		515
Credit card		—		719		719		795
Other revolving credit and installment		3		1,216		1,219		1,333
Total consumer		107		3,526		3,633		4,266
Foreign		—		29		29		73
Total loans	$	107		5,850		5,957		6,852

(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.
(2)	The majority of losses associated with consolidated VIE loans that are 90 days or more past due and still accruing will ultimately be borne by third party security holders in future periods.
(3)	The Company consolidated certain VIEs prior to the adoption of FAS 167 on January 1, 2010. At December 31, 2009, consolidated VIE loans totaled $561 million, of which there were no loans 90 days or more past due and still accruing.

Allowance for Credit Losses

The provision for credit losses in the quarter equaled charge-offs. The allowance for credit losses, including the reserve for unfunded commitments, totaled $25.7 billion at March 31, 2010, up from $25.0 billion at December 31, 2009, with the increase due to the adoption of FAS 167. The allowance also reflects the Company’s estimated impact of government programs related to residential modifications, based on information available about these programs. The allowance coverage to total loans increased to 3.28 percent, compared with 3.20 percent at December 31, 2009. The allowance coverage to NPLs was 94 percent at March 31, 2010, compared with 103 percent at December 31, 2009. “We believe the allowance was adequate for losses inherent in the loan portfolio at March 31, 2010, including both performing and nonperforming loans,” said Loughlin.

Additional detail on credit quality and trends is included in the quarterly supplement, available on the Investor Relations page at wellsfargo.com.

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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 Mar. 31,
(in millions)	2010		2009		% Change
Community Banking	$	1,455	$	1,946		(25	)%
Wholesale Banking		1,197		1,171		2
Wealth, Brokerage and Retirement		282		176		60

More financial information about the business segments is on page 38.

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 Mar. 31,
	2010		2009		% Change
(in millions)
Total revenue	$	14,062	$	14,394		(2	)%
Provision for credit losses		4,530		4,020		13
Noninterest expense		7,230		7,410		(2	)
Segment net income		1,455		1,946		(25	)
(in billions)
Average loans		555.2		567.8		(2	)
Average assets		784.9		810.8		(3	)
Average core deposits		532.2		555.0		(4	)

Community Banking reported net income of $1.5 billion, down $491 million, or 25 percent from prior year. Revenue decreased $332 million, or 2 percent, from prior year driven by the planned reduction in loan portfolios and lower security yields and balances. Average loans of $555.2 billion decreased 2 percent and average core deposits of $532.2 billion decreased 4 percent from prior year. Noninterest income increased $28 million from first quarter 2009. Noninterest expense decreased $180 million, or 2 percent, due to lower FDIC assessments and Wachovia merger-related cost savings. The provision for credit losses increased $510 million from first quarter 2009. There was no credit reserve build in first quarter 2010 compared with a $1 billion credit reserve build a year ago.

Regional Banking Highlights

• Strong checking net gain (combined Regional Banking)

— Consumer checking accounts up a net 7.0 percent from prior year

— Business checking accounts up a net 4.5 percent from prior year

— Consumer checking accounts up a net 9.6 percent in California, 7.6 percent in Texas, 8.1 percent in New Jersey and 6.2 percent in Florida

- 13 -

• Record solutions growth

— Legacy Wells Fargo:

o Record core product solutions (sales) of 7.81 million, up 16 percent from prior year

o Record core sales per platform banker FTE (active, full-time equivalent) of 6.81 per day, up from 6.20 in prior year

o Sales ofWells Fargo Packages^® (a checking account and at least three other products) up 24 percent from prior year; purchased by 79 percent of new checking account customers

— Legacy Wachovia:

o Good progress since aligning the East to the Wells Fargo sales and service model. Platform banker FTEs have grown by more than 300, or 4 percent, since last quarter and platform banker productivity grew by double-digits. More platform bankers will be added throughout 2010.

• Record retail bank cross-sell

— Legacy Wells Fargo: Record retail bank household cross-sell of Wells Fargo products of 6.0 products per household

— Legacy Wachovia: Retail bank household cross-sell of Wachovia products continued to grow, now at 4.85 products per household

• Customer experience (combined Regional Banking)

— Integrated customer experience measurement process was rolled out across Wells Fargo footprint in first quarter 2010. More than 205,000 customers were contacted about their experience in Wells Fargo stores and 50,000 customers spoke about their experience in the contact centers. Nearly 8 out of 10 customers were “extremely satisfied,” the highest rating, with their recent call or visit with Wells Fargo.

• Banking store conversions

— Converted 20 Wachovia banking stores in Arizona, Nevada and Illinois to Wells Fargo in first quarter

• Small Business/Business Banking (legacy Wells Fargo)

— Store-based business solutions up 6 percent from prior year

— Sales ofWells Fargo Business Services Packages(business checking account and at least three other business products) up 14 percent from prior year, purchased by 56 percent of new business checking account customers

— Business banking household cross-sell of 3.79 products per household

• Online banking

— 17.2 million combined active online customers

— 4.2 million combined active Bill Pay customers

- 14 -

Wells Fargo Home Mortgage (Home Mortgage)

• Home Mortgage applications of $125 billion, compared with $144 billion in prior quarter

• Home Mortgage application pipeline of $59 billion at quarter end, compared with $57 billion at December 31, 2009

• Home Mortgage originations of $76 billion, compared with $94 billion in prior quarter

• Owned residential mortgage servicing portfolio of $1.8 trillion

• Less than 2 percent of loans secured by owner-occupied homes and serviced by Wells Fargo proceeded to foreclosure sale in past 12 months; Wells Fargo’s delinquency and foreclosure rates less than three-fourths of the industry average, according toInside Mortgage Finance

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 Mar. 31,
	2010		2009		% Change
(in millions)
Total revenue	$	5,325	$	4,893		9	%
Provision for credit losses		799		543		47
Noninterest expense		2,660		2,533		5
Segment net income		1,197		1,171		2
(in billions)
Average loans		232.2		278.2		(17	)
Average assets		361.4		408.5		(12	)
Average core deposits		160.9		139.6		15

Wholesale Banking reported net income of $1.2 billion, up 19 percent from fourth quarter 2009 and up 2 percent from first quarter 2009. Revenue increased $70 million from fourth quarter. Noninterest expense decreased $43 million from prior quarter due to lower personnel expenses, offset by higher insurance expense associated with higher insurance revenue, and increased costs associated with foreclosed assets. In the first quarter, total provision for credit losses was $799 million and net charge-offs were largely flat from fourth quarter at $821 million. Fourth quarter 2009 provision included a credit reserve build of $115 million.

• Revenue up 9 percent from prior year as power of diversified business model generated fee and deposit growth that offset decline in loan outstandings

• Noninterest-bearing core deposits up $7 billion, or 13 percent, from prior year driven by growth in Commercial Banking, Government and Institutional Banking, and Global Financial Institutions & Trade Services

- 15 -

• Wells Fargo Capital Finance produced year-over-year revenue growth of 35 percent and was ranked #1 on the Reuters Asset-Based Lead Arranger league table with 31.3 percent market share. The Wachovia platform has been fully integrated, providing customers with coast-to-coast coverage

• Asset Management Group overall assets under management were $465 billion, which included $239 billion in mutual fund assets and representing the 11^th largest family of funds. As of March 31, 2010, the combined Wells Fargo Advantage and Evergreen fund families had 177 open-ended mutual funds

• Wachovia international offices successfully converted to the Wells Fargo brand

Wealth, Brokerage and Retirementprovides a full range of financial advisory services to clients using a comprehensive planning approach to meet each client’s needs. The Wealth Management Group 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 Office Services 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. The Retirement Group provides retirement services for individual investors and is a national leader in 401(k) and pension record keeping.

Selected Financial Information

	Quarter ended Mar. 31,
	2010		2009		% Change
(in millions)
Total revenue	$	2,910	$	2,519		16	%
Provision for credit losses		63		23		174
Noninterest expense		2,390		2,235		7
Segment net income		282		176		60
(in billions)
Average loans		43.8		46.6		(6	)
Average assets		137.8		117.1		18
Average core deposits		121.1		102.8		18

Wealth, Brokerage and Retirement reported net income of $282 million, up $298 million from prior quarter, and up $106 million, or 60 percent, from prior year. Prior quarter results were affected by the previously disclosed auction rate securities settlement. Revenue was $2.9 billion, up 10 percent from prior quarter, and up 16 percent from prior year driven by growth in asset-based fees and brokerage transactional activity. Noninterest expense increased 7 percent over prior year due to growth in broker commissions driven by higher production levels. Noninterest expense declined from prior quarter due to the auction rate securities settlement in the fourth quarter. Average core deposits increased $18 billion, or 18 percent, from prior year.

Retail Brokerage

• Client assets increased to $1.1 trillion, up 22 percent from prior year

• Managed account assets increased $67 billion, or 47 percent, from prior year driven by the strong market recovery and solid net flows

• Solid financial advisor recruiting during the quarter, as brokers who joined the firm were two times more productive than those who left the firm

- 16 -

Wealth Management Group

• Strong deposit growth, with average balances up 38 percent from prior year

• Private Banking revenue up 14 percent from prior year due to increased deposit balances

Retirement Services

• Institutional Retirement plan assets of $232 billion increased $60 billion, or 35 percent, from prior year

• IRA assets of $248 billion increased $54 billion, or 28 percent, from prior year

Conference Call

The Company will host a live conference call on Wednesday, April 21, at 6:30 a.m. PDT (9:30 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (international). No password is required. The call is also available online atwellsfargo.com/invest_relations/earnings and
http://event.meetingstream.com/r.htm?e=200433&s=1&k=A900B44B8FCEF77C46B0C61F0F389932

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on April 21 through Wednesday, April 28. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291 (international) and enter Conference ID #62361106. The replay will also be available online.

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,” “appears” or similar expressions. Forward-looking statements in this news release include, among others, statements about: (i) future credit quality and expected or estimated future loan losses in our loan portfolios, including our belief that quarterly provision expense and quarterly total credit losses have peaked and are expected to decline; the level and loss content of nonperforming assets and nonaccrual loans, including our expectation that nonperforming assets will continue to increase gradually and peak before year end; and the adequacy of the allowance for loan losses; (ii) reduction or mitigation of risk in our loan portfolios and the effects of loan modification programs; and (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 billion, including approximately $2 billion estimated for 2010.

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; financial services reform; the extent of success in our loan modification efforts, including the effects of regulatory requirements, or changes in regulatory requirements, relating to loan modifications; 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

- 17 -

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; 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 will be adequate to cover future credit losses, especially if credit markets, housing prices, and unemployment do not 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. 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 Annual Report on Form 10-K for the year ended December 31, 2009, including the discussions under “Risk Factors” in that report, 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 and commercial finance through more than 10,000 stores and 12,000 ATMs and the Internet (wellsfargo.com) across North America and internationally.

# # #

- 18 -

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

								% Change
	Quarter ended							Mar. 31, 2010 from
	Mar. 31,			Dec. 31,		Mar. 31,		Dec. 31,			Mar. 31,
($ in millions, except per share amounts)	2010			2009		2009		2009			2009
For the Quarter
Wells Fargo net income	$	2,547			2,823		3,045		(10	)  %		(16	)
Wells Fargo net income applicable to common stock		2,372			394		2,384		502			(1	)
Diluted earnings per common share		0.45			0.08		0.56		463			(20	)
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		0.84	%		0.90		0.96		(7	)		(13	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		8.96			1.66		14.49		440			(38	)
Efficiency ratio (1)		56.5			56.5		56.2		-			1
Total revenue	$	21,448			22,696		21,017		(5	)		2
Pre-tax pre-provision profit (PTPP) (2)		9,331			9,875		9,199		(6	)		1
Dividends declared per common share		0.05			0.05		0.34		-			(85	)
Average common shares outstanding		5,190.4			4,764.8		4,247.4		9			22
Diluted average common shares outstanding		5,225.2			4,796.1		4,249.3		9			23
Average loans	$	797,389			792,440		855,591		1			(7	)
Average assets		1,226,120			1,239,456		1,289,716		(1	)		(5	)
Average core deposits (3)		759,169			770,750		753,928		(2	)		1
Average retail core deposits (4)		573,653			580,873		590,502		(1	)		(3	)
Net interest margin		4.27	%		4.31		4.16		(1	)		3
At Quarter End
Securities available for sale	$	162,487			172,710		178,468		(6	)		(9	)
Loans		781,430			782,770		843,579		-			(7	)
Allowance for loan losses		25,123			24,516		22,281		2			13
Goodwill		24,819			24,812		23,825		-			4
Assets		1,223,630			1,243,646		1,285,891		(2	)		(5	)
Core deposits (3)		756,050			780,737		756,183		(3	)		-
Wells Fargo stockholders’ equity		116,142			111,786		100,295		4			16
Total equity		118,154			114,359		107,057		3			10
Capital ratios:
Total equity to assets		9.66	%		9.20		8.33		5			16
Risk-based capital (5):
Tier 1 capital		9.95			9.25		8.30		8			20
Total capital		13.92			13.26		12.30		5			13
Tier 1 leverage (5)		8.33			7.87		7.09		6			17
Tier 1 common equity (6)		7.10			6.46		3.12		10			128
Book value per common share	$	20.76			20.03		16.28		4			28
Team members (active, full-time equivalent)		267,400			267,300		272,800		-			(2	)
Common stock price:
High	$	31.99			31.53		30.47		1			5
Low		26.37			25.00		7.80		5			238
Period end		31.12			26.99		14.24		15			119

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	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.
(3)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(4)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(5)	The March 31, 2010, ratios are preliminary.
(6)	See page 37 for additional information.

- 19 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Mar. 31,			Dec. 31,		Sept. 30,		June 30,		Mar. 31,
($ in millions, except per share amounts)	2010			2009		2009		2009		2009
For the Quarter
Wells Fargo net income	$	2,547			2,823		3,235		3,172		3,045
Wells Fargo net income applicable to common stock		2,372			394		2,637		2,575		2,384
Diluted earnings per common share		0.45			0.08		0.56		0.57		0.56
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		0.84	%		0.90		1.03		1.00		0.96
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		8.96			1.66		12.04		13.70		14.49
Efficiency ratio (1)		56.5			56.5		52.0		56.4		56.2
Total revenue	$	21,448			22,696		22,466		22,507		21,017
Pre-tax pre-provision profit (PTPP) (2)		9,331			9,875		10,782		9,810		9,199
Dividends declared per common share		0.05			0.05		0.05		0.05		0.34
Average common shares outstanding		5,190.4			4,764.8		4,678.3		4,483.1		4,247.4
Diluted average common shares outstanding		5,225.2			4,796.1		4,706.4		4,501.6		4,249.3
Average loans	$	797,389			792,440		810,191		833,945		855,591
Average assets		1,226,120			1,239,456		1,246,051		1,274,926		1,289,716
Average core deposits (3)		759,169			770,750		759,319		765,697		753,928
Average retail core deposits (4)		573,653			580,873		584,414		596,648		590,502
Net interest margin		4.27	%		4.31		4.36		4.30		4.16
At Quarter End
Securities available for sale	$	162,487			172,710		183,814		206,795		178,468
Loans		781,430			782,770		799,952		821,614		843,579
Allowance for loan losses		25,123			24,516		24,028		23,035		22,281
Goodwill		24,819			24,812		24,052		24,619		23,825
Assets		1,223,630			1,243,646		1,228,625		1,284,176		1,285,891
Core deposits (3)		756,050			780,737		747,913		761,122		756,183
Wells Fargo stockholders’ equity		116,142			111,786		122,150		114,623		100,295
Total equity		118,154			114,359		128,924		121,382		107,057
Capital ratios:
Total equity to assets		9.66	%		9.20		10.49		9.45		8.33
Risk-based capital (5):
Tier 1 capital		9.95			9.25		10.63		9.80		8.30
Total capital		13.92			13.26		14.66		13.84		12.30
Tier 1 leverage (5)		8.33			7.87		9.03		8.32		7.09
Tier 1 common equity (6)		7.10			6.46		5.18		4.49		3.12
Book value per common share	$	20.76			20.03		19.46		17.91		16.28
Team members (active, full-time equivalent)		267,400			267,300		265,100		269,900		272,800
Common stock price:
High	$	31.99			31.53		29.56		28.45		30.47
Low		26.37			25.00		22.08		13.65		7.80
Period end		31.12			26.99		28.18		24.26		14.24

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	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.
(3)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(4)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(5)	The March 31, 2010, ratios are preliminary.
(6)	See page 37 for additional information.

- 20 -

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended March 31,
(in millions, except per share amounts)	2010		2009			% Change
Interest income
Trading assets	$	267		266			-	%
Securities available for sale		2,415		2,709			(11	)
Mortgages held for sale		387		415			(7	)
Loans held for sale		34		67			(49	)
Loans		10,038		10,765			(7	)
Other interest income		84		91			(8	)
Total interest income		13,225		14,313			(8	)
Interest expense
Deposits		735		999			(26	)
Short-term borrowings		18		123			(85	)
Long-term debt		1,276		1,779			(28	)
Other interest expense		49		36			36
Total interest expense		2,078		2,937			(29	)
Net interest income		11,147		11,376			(2	)
Provision for credit losses		5,330		4,558			17
Net interest income after provision for credit losses		5,817		6,818			(15	)
Noninterest income
Service charges on deposit accounts		1,332		1,394			(4	)
Trust and investment fees		2,669		2,215			20
Card fees		865		853			1
Other fees		941		901			4
Mortgage banking		2,470		2,504			(1	)
Insurance		621		581			7
Net gains from trading activities		537		787			(32	)
Net gains (losses) on debt securities available for sale (1)		28		(119	)	NM
Net gains (losses) from equity investments (2)		43		(157	)	NM
Operating leases		185		130			42
Other		610		552			11
Total noninterest income		10,301		9,641			7
Noninterest expense
Salaries		3,314		3,386			(2	)
Commission and incentive compensation		1,992		1,824			9
Employee benefits		1,322		1,284			3
Equipment		678		687			(1	)
Net occupancy		796		796			-
Core deposit and other intangibles		549		647			(15	)
FDIC and other deposit assessments		301		338			(11	)
Other		3,165		2,856			11
Total noninterest expense		12,117		11,818			3
Income before income tax expense		4,001		4,641			(14	)
Income tax expense		1,401		1,552			(10	)
Net income before noncontrolling interests		2,600		3,089			(16	)
Less: Net income from noncontrolling interests		53		44			20
Wells Fargo net income	$	2,547		3,045			(16	)
Wells Fargo net income applicable to common stock	$	2,372		2,384			(1	)
Per share information
Earnings per common share	$	0.46		0.56			(18	)
Diluted earnings per common share		0.45		0.56			(20	)
Dividends declared per common share		0.05		0.34			(85	)
Average common shares outstanding		5,190.4		4,247.4			22
Diluted average common shares outstanding		5,225.2		4,249.3			23

NM - Not meaningful

(1)	Includes impairment losses on debt securities available for sale of $92 million and $269 million, consisting of $154 million and $603 million of total other-than-temporary impairment losses, net of $62 million and $334 million recognized in other comprehensive income, for the quarters ended March 31, 2010 and 2009, respectively.
(2)	Includes impairment losses from equity investments of $105 million and $247 million for the quarters ended March 31, 2010 and 2009, respectively.

- 21 -

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

	Quarter ended
	Mar. 31,		Dec. 31,		Sept. 30,			June 30,			Mar. 31,
(in millions, except per share amounts)	2010		2009		2009			2009			2009
Interest income
Trading assets	$	267		230		216			206			266
Securities available for sale		2,415		2,776		2,947			2,887			2,709
Mortgages held for sale		387		446		524			545			415
Loans held for sale		34		32		34			50			67
Loans		10,038		10,122		10,170			10,532			10,765
Other interest income		84		86		77			81			91
Total interest income		13,225		13,692		13,968			14,301			14,313
Interest expense
Deposits		735		913		905			957			999
Short-term borrowings		18		12		32			55			123
Long-term debt		1,276		1,217		1,301			1,485			1,779
Other interest expense		49		50		46			40			36
Total interest expense		2,078		2,192		2,284			2,537			2,937
Net interest income		11,147		11,500		11,684			11,764			11,376
Provision for credit losses		5,330		5,913		6,111			5,086			4,558
Net interest income after provision for credit losses		5,817		5,587		5,573			6,678			6,818
Noninterest income
Service charges on deposit accounts		1,332		1,421		1,478			1,448			1,394
Trust and investment fees		2,669		2,605		2,502			2,413			2,215
Card fees		865		961		946			923			853
Other fees		941		990		950			963			901
Mortgage banking		2,470		3,411		3,067			3,046			2,504
Insurance		621		482		468			595			581
Net gains from trading activities		537		516		622			749			787
Net gains (losses) on debt securities available for sale		28		110		(40	)		(78	)		(119	)
Net gains (losses) from equity investments		43		273		29			40			(157	)
Operating leases		185		163		224			168			130
Other		610		264		536			476			552
Total noninterest income		10,301		11,196		10,782			10,743			9,641
Noninterest expense
Salaries		3,314		3,505		3,428			3,438			3,386
Commission and incentive compensation		1,992		2,086		2,051			2,060			1,824
Employee benefits		1,322		1,144		1,034			1,227			1,284
Equipment		678		681		563			575			687
Net occupancy		796		770		778			783			796
Core deposit and other intangibles		549		642		642			646			647
FDIC and other deposit assessments		301		302		228			981			338
Other		3,165		3,691		2,960			2,987			2,856
Total noninterest expense		12,117		12,821		11,684			12,697			11,818
Income before income tax expense		4,001		3,962		4,671			4,724			4,641
Income tax expense		1,401		949		1,355			1,475			1,552
Net income before noncontrolling interests		2,600		3,013		3,316			3,249			3,089
Less: Net income from noncontrolling interests		53		190		81			77			44
Wells Fargo net income	$	2,547		2,823		3,235			3,172			3,045
Wells Fargo net income applicable to common stock	$	2,372		394		2,637			2,575			2,384
Per share information
Earnings per common share	$	0.46		0.08		0.56			0.58			0.56
Diluted earnings per common share		0.45		0.08		0.56			0.57			0.56
Dividends declared per common share		0.05		0.05		0.05			0.05			0.34
Average common shares outstanding		5,190.4		4,764.8		4,678.3			4,483.1			4,247.4
Diluted average common shares outstanding		5,225.2		4,796.1		4,706.4			4,501.6			4,249.3

- 22 -

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

	Quarter ended March 31,
	2010								2009
							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	$	40,833			0.33	%	$	33		24,074			0.84	%	$	50
Trading assets		27,911			3.91			272		22,203			4.97			275
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		2,278			3.62			20		2,899			0.93			7
Securities of U.S. states and political subdivisions		13,696			6.60			221		12,213			6.43			213
Mortgage-backed securities:
Federal agencies		79,730			5.39			1,023		76,545			5.71			1,068
Residential and commercial		32,768			9.67			790		38,690			8.57			1,017
Total mortgage-backed securities		112,498			6.67			1,813		115,235			6.82			2,085
Other debt securities (4)		32,346			6.51			492		30,080			6.81			551
Total debt securities available for sale (4)		160,818			6.59			2,546		160,427			6.69			2,856
Mortgages held for sale (5)		31,368			4.93			387		31,058			5.34			415
Loans held for sale (5)		6,406			2.15			34		7,949			3.40			67
Loans:
Commercial and commercial real estate:
Commercial		156,466			4.51			1,743		196,923			3.87			1,884
Real estate mortgage		104,971			3.61			936		104,271			3.47			894
Real estate construction		28,848			3.16			225		34,493			3.03			258
Lease financing		14,008			9.22			323		15,810			8.77			347
Total commercial and commercial real estate		304,293			4.29			3,227		351,497			3.89			3,383
Consumer:
Real estate 1-4 family first mortgage		245,024			5.26			3,210		245,494			5.64			3,444
Real estate 1-4 family junior lien mortgage		105,640			4.47			1,168		110,128			5.05			1,375
Credit card		23,345			13.15			767		23,295			12.10			704
Other revolving credit and installment		90,526			6.40			1,427		92,820			6.68			1,527
Total consumer		464,535			5.70			6,572		471,737			6.03			7,050
Foreign		28,561			3.62			256		32,357			4.36			349
Total loans (5)		797,389			5.09			10,055		855,591			5.09			10,782
Other		6,069			3.36			50		6,140			2.87			43
Total earning assets	$	1,070,794			5.06	%	$	13,377		1,107,442			5.22	%	$	14,488
Funding sources
Deposits:
Interest-bearing checking	$	62,021			0.15	%	$	23		80,393			0.15	%	$	30
Market rate and other savings		403,945			0.29			286		313,445			0.54			419
Savings certificates		94,763			1.36			317		170,122			0.92			387
Other time deposits		15,878			2.03			80		25,555			1.97			124
Deposits in foreign offices		55,434			0.21			29		45,896			0.35			39
Total interest-bearing deposits		632,041			0.47			735		635,411			0.64			999
Short-term borrowings		45,081			0.18			19		76,068			0.66			123
Long-term debt		209,008			2.45			1,276		258,957			2.77			1,783
Other liabilities		5,664			3.43			49		3,778			3.88			36
Total interest-bearing liabilities		891,794			0.94			2,079		974,214			1.22			2,941
Portion of noninterest-bearing funding sources		179,000			-			-		133,228			-			-
Total funding sources	$	1,070,794			0.79			2,079		1,107,442			1.06			2,941
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.27	%	$	11,298					4.16	%	$	11,547
Noninterest-earning assets
Cash and due from banks	$	18,049								20,255
Goodwill		24,816								23,183
Other		112,461								138,836
Total noninterest-earning assets	$	155,326								182,274
Noninterest-bearing funding sources
Deposits	$	172,039								160,308
Other liabilities		44,739								50,566
Total equity		117,548								104,628
Noninterest-bearing funding sources used to fund earning assets		(179,000	)							(133,228	)
Net noninterest-bearing funding sources	$	155,326								182,274
Total assets	$	1,226,120								1,289,716

(1)	Our average prime rate was 3.25% for the quarters ended March 31, 2010 and 2009. The average three-month London Interbank Offered Rate (LIBOR) was 0.26% and 1.24% 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.

- 23 -

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended March 31,
(in millions)	2010		2009			% Change
Service charges on deposit accounts	$	1,332		1,394			(4	)  %
Trust and investment fees:
Trust, investment and IRA fees		1,049		722			45
Commissions and all other fees		1,620		1,493			9
Total trust and investment fees		2,669		2,215			20
Card fees		865		853			1
Other fees:
Cash network fees		55		58			(5	)
Charges and fees on loans		419		433			(3	)
Processing and all other fees		467		410			14
Total other fees		941		901			4
Mortgage banking (1):
Servicing income, net		1,366		906			51
Net gains on mortgage loan origination/sales activities		1,104		1,598			(31	)
Total mortgage banking		2,470		2,504			(1	)
Insurance		621		581			7
Net gains from trading activities		537		787			(32	)
Net gains (losses) on debt securities available for sale		28		(119	)	NM
Net gains (losses) from equity investments		43		(157	)	NM
Operating leases		185		130			42
All other		610		552			11
Total	$	10,301		9,641			7

NM - Not meaningful

(1) 2009 categories have been revised to conform to current presentation.

NONINTEREST EXPENSE

	Quarter ended March 31,
(in millions)	2010		2009		% Change
Salaries	$	3,314		3,386		(2	)  %
Commission and incentive compensation		1,992		1,824		9
Employee benefits		1,322		1,284		3
Equipment		678		687		(1	)
Net occupancy		796		796		-
Core deposit and other intangibles		549		647		(15	)
FDIC and other deposit assessments		301		338		(11	)
Outside professional services		484		410		18
Contract services		347		216		61
Foreclosed assets		386		248		56
Outside data processing		272		212		28
Postage, stationery and supplies		242		250		(3	)
Operating losses		208		172		21
Insurance		148		267		(45	)
Telecommunications		143		158		(9	)
Travel and entertainment		171		105		63
Advertising and promotion		112		125		(10	)
Operating leases		37		70		(47	)
All other		615		623		(1	)
Total	$	12,117		11,818		3

- 24 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Mar. 31,		Dec. 31,		Sept. 30,			June 30,			Mar. 31,
(in millions)	2010		2009		2009			2009			2009
Service charges on deposit accounts	$	1,332		1,421		1,478			1,448			1,394
Trust and investment fees:
Trust, investment and IRA fees		1,049		1,038		989			839			722
Commissions and all other fees		1,620		1,567		1,513			1,574			1,493
Total trust and investment fees		2,669		2,605		2,502			2,413			2,215
Card fees		865		961		946			923			853
Other fees:
Cash network fees		55		55		60			58			58
Charges and fees on loans		419		475		453			440			433
Processing and all other fees		467		460		437			465			410
Total other fees		941		990		950			963			901
Mortgage banking (1):
Servicing income, net		1,366		2,150		1,919			816			906
Net gains on mortgage loan origination/sales activities		1,104		1,261		1,148			2,230			1,598
Total mortgage banking		2,470		3,411		3,067			3,046			2,504
Insurance		621		482		468			595			581
Net gains from trading activities		537		516		622			749			787
Net gains (losses) on debt securities available for sale		28		110		(40	)		(78	)		(119	)
Net gains (losses) from equity investments		43		273		29			40			(157	)
Operating leases		185		163		224			168			130
All other		610		264		536			476			552
Total	$	10,301		11,196		10,782			10,743			9,641

  (1) 2009 categories have been revised to conform to current presentation.

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)	2010		2009		2009		2009		2009
Salaries	$	3,314		3,505		3,428		3,438		3,386
Commission and incentive compensation		1,992		2,086		2,051		2,060		1,824
Employee benefits		1,322		1,144		1,034		1,227		1,284
Equipment		678		681		563		575		687
Net occupancy		796		770		778		783		796
Core deposit and other intangibles		549		642		642		646		647
FDIC and other deposit assessments		301		302		228		981		338
Outside professional services		484		632		489		451		410
Contract services		347		362		254		256		216
Foreclosed assets		386		393		243		187		248
Outside data processing		272		282		251		282		212
Postage, stationery and supplies		242		232		211		240		250
Operating losses		208		427		117		159		172
Insurance		148		111		208		259		267
Telecommunications		143		146		142		164		158
Travel and entertainment		171		188		151		131		105
Advertising and promotion		112		176		160		111		125
Operating leases		37		44		52		61		70
All other		615		698		682		686		623
Total	$	12,117		12,821		11,684		12,697		11,818

- 25 -

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

	Mar. 31,			Dec. 31,
(in millions, except shares)	2010			2009			% Change
Assets
Cash and due from banks	$	16,301			27,080			(40	)%
Federal funds sold, securities purchased under resale agreements and other short-term investments		54,192			40,885			33
Trading assets		47,028			43,039			9
Securities available for sale		162,487			172,710			(6	)
Mortgages held for sale (includes $31,931 and $36,962 carried at fair value)		34,737			39,094			(11	)
Loans held for sale (includes $297 and $149 carried at fair value)		5,140			5,733			(10	)
Loans (includes $371 carried at fair value at March 31, 2010)		781,430			782,770			—
Allowance for loan losses		(25,123	)		(24,516	)		2
Net loans		756,307			758,254			—
Mortgage servicing rights:
Measured at fair value (residential MSRs)		15,544			16,004			(3	)
Amortized		1,069			1,119			(4	)
Premises and equipment, net		10,405			10,736			(3	)
Goodwill		24,819			24,812			—
Other assets		95,601			104,180			(8	)
Total assets (1)	$	1,223,630			1,243,646			(2	)
Liabilities
Noninterest-bearing deposits	$	170,518			181,356			(6	)
Interest-bearing deposits		634,375			642,662			(1	)
Total deposits		804,893			824,018			(2	)
Short-term borrowings		46,333			38,966			19
Accrued expenses and other liabilities		54,371			62,442			(13	)
Long-term debt (includes $367 carried at fair value at March 31, 2010)		199,879			203,861			(2	)
Total liabilities (2)		1,105,476			1,129,287			(2	)
Equity
Wells Fargo stockholders’ equity:
Preferred stock		9,276			8,485			9
Common stock — $1-2/3 par value, authorized 6,000,000,000 shares; issued 5,245,971,422 shares and 5,245,971,422 shares		8,743			8,743			—
Additional paid-in capital		53,156			52,878			1
Retained earnings		43,636			41,563			5
Cumulative other comprehensive income		4,087			3,009			36
Treasury stock - 40,260,165 shares and 67,346,829 shares		(1,460	)		(2,450	)		(40	)
Unearned ESOP shares		(1,296	)		(442	)		193
Total Wells Fargo stockholders’ equity		116,142			111,786			4
Noncontrolling interests		2,012			2,573			(22	)
Total equity		118,154			114,359			3
Total liabilities and equity	$	1,223,630			1,243,646			(2	)

(1)

Our consolidated assets at March 31, 2010, include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash and due from banks, $359 million; Trading assets, $80 million; Securities available for sale, $1.8 billion; Net loans, $23.4 billion; Other assets, $2.3 billion, and Total assets, $27.9 billion. See the “Changes in VIE Assets and Liabilities” on page 27 for additional information.

(2)

Our consolidated liabilities at March 31, 2010, include the following VIE liabilities for which the VIE creditors do not have recourse to Wells Fargo: Short-term borrowings, $316 million; Accrued expenses and other liabilities, $591 million; Long-term debt, $11.1 billion; and Total liabilities, $12.0 billion. See the “Changes in VIE Assets and Liabilities” on page 27 for additional information.

- 26 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2010			2009			2009			2009			2009
Assets
Cash and due from banks	$	16,301			27,080			17,233			20,632			22,186
Federal funds sold, securities purchased under resale agreements and other short-term investments		54,192			40,885			17,491			15,976			18,625
Trading assets		47,028			43,039			43,198			40,110			46,497
Securities available for sale		162,487			172,710			183,814			206,795			178,468
Mortgages held for sale		34,737			39,094			35,538			41,991			36,807
Loans held for sale		5,140			5,733			5,846			5,413			8,306
Loans		781,430			782,770			799,952			821,614			843,579
Allowance for loan losses		(25,123	)		(24,516	)		(24,028	)		(23,035	)		(22,281	)
Net loans		756,307			758,254			775,924			798,579			821,298
Mortgage servicing rights:
Measured at fair value (residential MSRs)		15,544			16,004			14,500			15,690			12,391
Amortized		1,069			1,119			1,162			1,205			1,257
Premises and equipment, net		10,405			10,736			11,040			11,151			11,215
Goodwill		24,819			24,812			24,052			24,619			23,825
Other assets		95,601			104,180			98,827			102,015			105,016
Total assets	$	1,223,630			1,243,646			1,228,625			1,284,176			1,285,891
Liabilities
Noninterest-bearing deposits	$	170,518			181,356			165,260			173,149			166,497
Interest-bearing deposits		634,375			642,662			631,488			640,586			630,772
Total deposits		804,893			824,018			796,748			813,735			797,269
Short-term borrowings		46,333			38,966			30,800			55,483			72,084
Accrued expenses and other liabilities		54,371			62,442			57,861			64,160			58,831
Long-term debt		199,879			203,861			214,292			229,416			250,650
Total liabilities		1,105,476			1,129,287			1,099,701			1,162,794			1,178,834
Equity
Wells Fargo stockholders’ equity:
Preferred stock		9,276			8,485			31,589			31,497			31,411
Common stock		8,743			8,743			7,927			7,927			7,273
Additional paid-in capital		53,156			52,878			40,343			40,270			32,414
Retained earnings		43,636			41,563			41,485			39,165			36,949
Cumulative other comprehensive income (loss)		4,087			3,009			4,088			(590	)		(3,624	)
Treasury stock		(1,460	)		(2,450	)		(2,771	)		(3,126	)		(3,593	)
Unearned ESOP shares		(1,296	)		(442	)		(511	)		(520	)		(535	)
Total Wells Fargo stockholders’ equity		116,142			111,786			122,150			114,623			100,295
Noncontrolling interests		2,012			2,573			6,774			6,759			6,762
Total equity		118,154			114,359			128,924			121,382			107,057
Total liabilities and equity	$	1,223,630			1,243,646			1,228,625			1,284,176			1,285,891

- 27 -

Wells Fargo & Company and Subsidiaries

NEWLY CONSOLIDATED VIE ASSETS AND LIABILITIES

Effective January 1, 2010, we adopted changes in consolidation accounting pursuant to amendments by ASU 2009-17 to ASC 810 (FAS 167) and, accordingly, consolidated certain VIEs that were not included in our consolidated financial statements at December 31, 2009. On January 1, 2010, we recorded the assets and liabilities of the newly consolidated VIEs and derecognized our existing interests in those VIEs. We also recorded a $183 million increase to beginning retained earnings as a cumulative effect adjustment and recorded a $173 million increase to other comprehensive income. The following table presents the net incremental assets and liabilities recorded upon adoption of the ASU 2009-17 amendments to ASC 810 (FAS 167).

	January 1, 2010
	Total VIE		Derecognition			Net
	assets and		of existing VIE			increase
(in millions)	liabilities (1)		interests (2)			(decrease)
Assets
Cash and due from banks	$	154		—			154
Trading assets		18		137			155
Securities available for sale		1,178		(8,768	)		(7,590	)
Loans, net of $693 allowance		25,657		—			25,657
Other assets		164		29			193
Total assets	$	27,171		(8,602	)		18,569
Liabilities
Short-term borrowings (3)	$	5,161		(34	)		5,127
Accrued expenses and other liabilities		38		(70	)		(32	)
Long-term debt		13,134		—			13,134
Total liabilities	$	18,333		(104	)		18,229

(1)	Excludes VIE assets and liabilities that are eliminated in the consolidated financial statements of Wells Fargo.
(2)	Includes derecognition of existing interests in newly consolidated VIEs and net impacts of deconsolidating certain VIEs.
(3)	Includes commercial paper liabilities of our multi-seller asset-based commercial paper conduit with recourse to the general credit of Wells Fargo.

CHANGES IN VIE ASSETS AND LIABILITIES

Consolidated VIEs include VIEs consolidated prior to the adoption of amended ASC 810 (FAS 167) as well as VIEs newly consolidated upon adoption. ASC 810 requires companies to continually reassess whether they are the primary beneficiary of a VIE. As a result of events that occurred during the quarter, we deconsolidated certain VIEs. The following table presents the detail of changes in the assets and liabilities of all consolidated VIEs from January 1, 2010, through March 31, 2010.

	January 1, 2010												March 31, 2010
	Newly		Previously
	consolidated		consolidated							VIE
(in millions)	VIEs (1)		VIEs (1)(2)		Total		Reconsiderations (3)			activity (1)			Total
Assets
Cash and due from banks	$	154		267		421		(11	)		(51	)		359
Trading assets		18		77		95		(15	)		—			80
Securities available for sale		1,178		980		2,158		—			(325	)		1,833
Loans, net		25,657		561		26,218		(1,551	)		(1,278	)		23,389
Other assets		164		2,432		2,596		(431	)		104			2,269
Total assets	$	27,171		4,317		31,488		(2,008	)		(1,550	)		27,930
Liabilities
Short-term borrowings (4)	$	5,161		317		5,478		—			(331	)		5,147
Accrued expenses and other liabilities (4)		38		689		727		(137	)		105			695
Long-term debt (4)		13,134		1,396		14,530		(1,942	)		(1,293	)		11,295
Total liabilities	$	18,333		2,402		20,735		(2,079	)		(1,519	)		17,137

(1)	Excludes VIE assets and liabilities that are eliminated in the consolidated financial statements of Wells Fargo.
(2)	Includes deconsolidation of certain VIEs upon adoption of FAS 167.
(3)	Due to events that occurred during first quarter 2010, we deconsolidated certain residential mortgage-backed securitizations and other VIEs.
(4)	Includes the following VIE liabilities at March 31, 2010, with recourse to the general credit of Wells Fargo: Short-term borrowings, $4.8 billion; Accrued expenses and other liabilities, $104 million; and Long-term debt, $175 million.

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Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2010			2009			2009			2009			2009
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	40,833			46,031			16,356			20,889			24,074
Trading assets		27,911			23,179			20,518			18,464			22,203
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		2,278			2,381			2,545			2,102			2,899
Securities of U.S. states and political subdivisions		13,696			13,574			12,818			12,189			12,213
Mortgage-backed securities:
Federal agencies		79,730			85,063			94,457			92,550			76,545
Residential and commercial		32,768			43,243			43,214			41,257			38,690
Total mortgage-backed securities		112,498			128,306			137,671			133,807			115,235
Other debt securities (1)		32,346			33,710			33,294			30,901			30,080
Total debt securities available for sale (1)		160,818			177,971			186,328			178,999			160,427
Mortgages held for sale (2)		31,368			34,750			40,604			43,177			31,058
Loans held for sale (2)		6,406			5,104			4,975			7,188			7,949
Loans:
Commercial and commercial real estate:
Commercial		156,466			164,050			175,642			187,501			196,923
Real estate mortgage		104,971			104,773			103,450			104,297			104,271
Real estate construction		28,848			30,887			32,649			33,857			34,493
Lease financing		14,008			14,107			14,360			14,750			15,810
Total commercial and commercial real estate		304,293			313,817			326,101			340,405			351,497
Consumer:
Real estate 1-4 family first mortgage		245,024			232,273			235,051			240,798			245,494
Real estate 1-4 family junior lien mortgage		105,640			103,584			105,779			108,422			110,128
Credit card		23,345			23,717			23,448			22,963			23,295
Other revolving credit and installment		90,526			88,963			90,199			90,729			92,820
Total consumer		464,535			448,537			454,477			462,912			471,737
Foreign		28,561			30,086			29,613			30,628			32,357
Total loans (2)		797,389			792,440			810,191			833,945			855,591
Other		6,069			6,147			6,088			6,079			6,140
Total earning assets	$	1,070,794			1,085,622			1,085,060			1,108,741			1,107,442
Funding sources
Deposits:
Interest-bearing checking	$	62,021			61,229			59,467			79,955			80,393
Market rate and other savings		403,945			389,905			369,120			334,067			313,445
Savings certificates		94,763			109,306			129,698			152,444			170,122
Other time deposits		15,878			16,501			18,248			21,660			25,555
Deposits in foreign offices		55,434			59,870			56,820			49,885			45,896
Total interest-bearing deposits		632,041			636,811			633,353			638,011			635,411
Short-term borrowings		45,081			32,757			39,828			59,844			76,068
Long-term debt		209,008			210,707			222,580			235,590			258,957
Other liabilities		5,664			5,587			5,620			4,604			3,778
Total interest-bearing liabilities		891,794			885,862			901,381			938,049			974,214
Portion of noninterest-bearing funding sources		179,000			199,760			183,679			170,692			133,228
Total funding sources	$	1,070,794			1,085,622			1,085,060			1,108,741			1,107,442
Noninterest-earning assets
Cash and due from banks	$	18,049			19,216			18,084			19,340			20,255
Goodwill		24,816			24,093			24,435			24,261			23,183
Other		112,461			110,525			118,472			122,584			138,836
Total noninterest-earning assets	$	155,326			153,834			160,991			166,185			182,274
Noninterest-bearing funding sources
Deposits	$	172,039			179,204			172,588			174,529			160,308
Other liabilities		44,739			45,058			47,646			49,570			50,566
Total equity		117,548			129,332			124,436			112,778			104,628
Noninterest-bearing funding sources used to fund earning assets		(179,000	)		(199,760	)		(183,679	)		(170,692	)		(133,228	)
Net noninterest-bearing funding sources	$	155,326			153,834			160,991			166,185			182,274
Total assets	$	1,226,120			1,239,456			1,246,051			1,274,926			1,289,716

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

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Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)	2010		2009		2009		2009		2009
Commercial and commercial real estate:
Commercial (1)	$	150,587		158,352		169,610		182,037		191,711
Real estate mortgage (1)		104,514		104,798		103,442		103,654		104,934
Real estate construction		27,837		29,707		31,719		33,238		33,912
Lease financing		13,887		14,210		14,115		14,555		14,792
Total commercial and commercial real estate		296,825		307,067		318,886		333,484		345,349
Consumer:
Real estate 1-4 family first mortgage (1)		240,528		229,536		232,622		237,289		242,947
Real estate 1-4 family junior lien mortgage (1)		103,800		103,708		104,538		107,024		109,748
Credit card		22,525		24,003		23,597		23,069		22,815
Other revolving credit and installment (1)		89,463		89,058		90,027		90,654		91,252
Total consumer		456,316		446,305		450,784		458,036		466,762
Foreign		28,289		29,398		30,282		30,094		31,468
Total loans (net of unearned income) (2)	$	781,430		782,770		799,952		821,614		843,579

(1)	Loans at March 31, 2010, include the following assets of certain variable interest entities (VIEs) that were consolidated due to the adoption of FAS 167: Commercial, $3.8 billion; Real estate mortgage, $77 million; Real estate 1-4 family first mortgage, $14.5 billion; Real estate 1-4 family junior lien mortgage, $3.0 billion; and Other revolving credit and installment, $1.9 billion.
(2)	Includes $49.5 billion, $51.7 billion, $54.3 billion, $55.2 billion and $58.2 billion of purchased credit-impaired (PCI) loans at March 31, 2010, and December 31, September 30, June 30 and March 31, 2009, respectively. See table on page 30 for detail of PCI loans.

FIVE QUARTER NONACCRUAL LOANS AND OTHER NONPERFORMING ASSETS

	Mar. 31,			Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)	2010			2009		2009		2009		2009
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	4,273			4,397		4,540		2,910		1,696
Real estate mortgage (1)		4,757			3,984		2,856		2,343		1,324
Real estate construction		2,915			3,025		2,711		2,210		1,371
Lease financing		185			171		157		130		114
Total commercial and commercial real estate		12,130			11,577		10,264		7,593		4,505
Consumer:
Real estate 1-4 family first mortgage (1)		12,347			10,100		8,132		6,000		4,218
Real estate 1-4 family junior lien mortgage (1)		2,355			2,263		1,985		1,652		1,418
Other revolving credit and installment (1)		334			332		344		327		300
Total consumer		15,036			12,695		10,461		7,979		5,936
Foreign		135			146		144		226		75
Total nonaccrual loans (2) (3)		27,301			24,418		20,869		15,798		10,516
As a percentage of total loans		3.49	%		3.12		2.61		1.92		1.25
Foreclosed assets:
GNMA loans (4)	$	1,111			960		840		932		768
Other (1)		2,970			2,199		1,687		1,592		1,294
Real estate and other nonaccrual investments (5)		118			62		55		20		34
Total nonaccrual loans and other nonperforming assets	$	31,500			27,639		23,451		18,342		12,612
As a percentage of total loans		4.03	%		3.53		2.93		2.23		1.50

(1)	Nonperforming assets at March 31, 2010, include the following assets of certain VIEs that were consolidated due to the adoption of FAS 167: Commercial real estate mortgage, $7 million; Real estate 1-4 family first mortgage, $821 million; Real estate 1-4 family junior lien mortgage, $79 million; Other revolving credit and installment, $2 million; and Other foreclosed assets, $95 million. See the “Changes in VIE Assets and Liabilities” on page 27 for additional information.
(2)	Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(3)	Excludes loans acquired from Wachovia that are accounted for as PCI loans.
(4)	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.
(5)	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.

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

At the time of acquisition, certain loans acquired from Wachovia had evidence of credit deterioration since origination and it was considered probable that we would 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). These accounting provisions require that 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 were 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 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.

	March 31, 2010						December 31, 2009
			All						All
	PCI		other				PCI		other
(in millions)	loans		loans		Total		loans		loans		Total
Commercial and commercial real estate:
Commercial	$	1,431		149,156		150,587	$	1,911		156,441		158,352
Real estate mortgage		5,252		99,262		104,514		5,631		99,167		104,798
Real estate construction		3,538		24,299		27,837		3,713		25,994		29,707
Lease financing		—		13,887		13,887		—		14,210		14,210
Total commercial and commercial real estate		10,221		286,604		296,825		11,255		295,812		307,067
Consumer:
Real estate 1-4 family first mortgage		37,378		203,150		240,528		38,386		191,150		229,536
Real estate 1-4 family junior lien mortgage		315		103,485		103,800		331		103,377		103,708
Credit card		—		22,525		22,525		—		24,003		24,003
Other revolving credit and installment		—		89,463		89,463		—		89,058		89,058
Total consumer		37,693		418,623		456,316		38,717		407,588		446,305
Foreign		1,593		26,696		28,289		1,733		27,665		29,398
Total loans	$	49,507		731,923		781,430	$	51,705		731,065		782,770

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Wells Fargo & Company and Subsidiaries
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. The following table provides an analysis of changes in the nonaccretable difference related to principal that is not expected to be collected.

	Commercial,
	CRE and						Other
(in millions)	foreign			Pick-a-Pay			consumer			Total
Balance at December 31, 2008	$	(10,410	)		(26,485	)		(4,069	)		(40,964	)
Release of nonaccretable difference due to:
Loans resolved by payment in full (1)		330			-			-			330
Loans resolved by sales to third parties (2)		86			-			85			171
Reclassification to accretable yield for loans with improving cash flow (3)		138			27			276			441
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		4,853			10,218			2,086			17,157
Balance at December 31, 2009	$	(5,003	)		(16,240	)		(1,622	)		(22,865	)
Release of nonaccretable difference due to:
Loans resolved by payment in full (1)		146			-			-			146
Loans resolved by sales to third parties (2)		36			-			-			36
Reclassification to accretable yield for loans with improving cash flow (3)		92			549			27			668
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		728			1,177			183			2,088
Balance at March 31, 2010	$	(4,001	)		(14,514	)		(1,412	)		(19,927	)

(1)	Release of the nonaccretable difference for payments in full increases interest income in the period of payment. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans.
(2)	Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale.
(3)	Reclassification of nonaccretable difference for increased cash flow estimates to the accretable yield will result in increasing income and thus the rate of return realized. Amounts reclassified to accretable yield are expected to be probable of realization.
(4)	Write-downs to net realizable value of PCI loans are charged to the nonaccretable difference when severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

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Wells Fargo & Company and Subsidiaries

CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS

The excess of cash flows expected to be collected over the initial fair value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated life of the PCI loans using the effective yield method. The accretable yield will change due to:

1)	estimate of the remaining life of PCI loans which may change the amount of future interest income, and possibly principal, expected to be collected;
2)	estimate of the amount of contractually required principal and interest payments over the estimated life that will not be collected (the nonaccretable difference); and
3)	indices for PCI loans with variable rates of interest.

For PCI loans, the impact of loan modifications is included in the evaluation of expected cash flows for subsequent decreases or increases of cash flows. For variable rate PCI loans, expected future cash flows will be recalculated as the rates adjust over the lives of the loans. At acquisition, the expected future cash flows were based on the variable rates that were in effect at that time. The change in the accretable yield related to PCI loans is presented in the following table.

(in millions)
Total, December 31, 2008 (refined)	$	(10,447	)
Accretion		2,606
Reclassification from nonaccretable difference for loans with improving cash flows		(441	)
Changes in expected cash flows that do not affect nonaccretable difference (1)		(6,277	)
Total, December 31, 2009		(14,559	)
Accretion		686
Reclassification from nonaccretable difference for loans with improving cash flows		(668	)
Changes in expected cash flows that do not affect nonaccretable difference (1)		(1,262	)
Total, March 31, 2010	$	(15,803	)

(1) Represents changes in interest cash flows due to the impact of modifications incorporated into the quarterly assessment of expected future cash flows and/or changes in interest rates on variable rate PCI loans.

CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES

When it is estimated that the expected cash flows have decreased subsequent to acquisition for a PCI loan or pool of loans, an allowance is established and a provision for additional loss is recorded as a charge to income. The following table summarizes the changes in allowance for PCI loan losses.

	Commercial,
	CRE and					Other
(in millions)	foreign			Pick-a-Pay		consumer		Total
Balance at December 31, 2008	$	—			—		—		—
Provision for losses due to credit deterioration		850			—		3		853
Charge-offs		(520	)		—		—		(520	)
Balance at December 31, 2009		330			—		3		333
Provision for losses due to credit deterioration		152			—		13		165
Charge-offs		(251	)		—		—		(251	)
Balance at March 31, 2010	$	231			—		16		247

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Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO (1)

	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 (2)			value (3)		value			balance		ratio (2)			value (3)
March 31, 2010
California	$	36,113		135	%	$	24,447		91	%	$	23,285		88	%	$	22,953
Florida		5,594		142			3,169		80			4,942		106			4,776
New Jersey		1,621		99			1,249		76			2,829		81			2,818
Texas		428		82			379		72			1,908		66			1,913
Washington		618		102			531		87			1,409		84			1,398
Other states		8,967		115			6,398		81			13,064		87			12,907
Total Pick-a-Pay loans	$	53,341				$	36,173				$	47,437				$	46,765
December 31, 2009
California	$	37,341		141	%	$	25,022		94	%	$	23,795		93	%	$	23,626
Florida		5,751		139			3,199		77			5,046		104			4,942
New Jersey		1,646		101			1,269		77			2,914		82			2,912
Texas		442		82			399		74			1,967		66			1,973
Washington		633		103			543		88			1,439		84			1,435
Other states		9,283		116			6,597		82			13,401		87			13,321
Total Pick-a-Pay loans	$	55,096				$	37,029				$	48,562				$	48,209

(1)	The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2010. The December 31, 2009 table has been revised to conform to the 2010 presentation of top five states.
(2)	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 (AVM) 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.
(3)	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.

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

					% of loans
					two payments					Loss rate (annualized)
	Outstanding balances				or more past due					Quarter ended
	Mar. 31,		Dec. 31,		Mar. 31,			Dec. 31,		Mar. 31,		Dec. 31,
(in millions)	2010		2009		2010			2009		2010		2009
Core portfolio(2)
California	$	29,335		30,264		3.88	%		4.12		6.56		6.12
Florida		12,923		12,038		5.11			5.48		7.14		6.98
New Jersey		9,033		8,379		2.53			2.50		2.31		1.51
Virginia		6,023		5,855		2.10			1.91		2.34		1.13
Pennsylvania		5,629		5,051		1.90			2.03		1.34		1.81
Other		54,491		53,811		2.76			2.85		3.34		3.04
Total		117,434		115,398		3.21			3.35		4.34		3.90
Liquidating portfolio
California		3,022		3,205		8.12			8.78		17.18		17.94
Florida		386		408		9.22			9.45		17.10		19.53
Arizona		180		193		9.70			10.46		21.33		19.29
Texas		148		154		1.96			1.94		2.98		2.40
Minnesota		104		108		4.44			4.15		9.36		7.53
Other		4,179		4,361		4.65			5.06		8.55		7.33
Total		8,019		8,429		6.24			6.74		12.43		12.16
Total core and liquidating portfolios	$	125,453		123,827		3.40			3.58		4.86		4.48

(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 $1.8 billion at March 31, 2010, and December 31, 2009.

- 35 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES

	Quarter ended
	Mar. 31,				Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2010				2009			2009			2009			2009
Balance, beginning of quarter	$	25,031				24,528			23,530			22,846			21,711
Provision for credit losses		5,330				5,913			6,111			5,086			4,558
Adjustment for passage of time on certain impaired loans (1)		(74	)			-			-			-			-
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(767	)			(1,028	)		(986	)		(755	)		(596	)
Real estate mortgage		(337	)			(360	)		(215	)		(152	)		(31	)
Real estate construction		(349	)			(380	)		(254	)		(236	)		(105	)
Lease financing		(34	)			(56	)		(88	)		(65	)		(20	)
Total commercial and commercial real estate		(1,487	)			(1,824	)		(1,543	)		(1,208	)		(752	)
Consumer:
Real estate 1-4 family first mortgage		(1,397	)			(1,089	)		(1,015	)		(790	)		(424	)
Real estate 1-4 family junior lien mortgage		(1,496	)			(1,384	)		(1,340	)		(1,215	)		(873	)
Credit card		(696	)			(683	)		(691	)		(712	)		(622	)
Other revolving credit and installment		(750	)			(861	)		(860	)		(802	)		(900	)
Total consumer		(4,339	)			(4,017	)		(3,906	)		(3,519	)		(2,819	)
Foreign		(47	)			(56	)		(71	)		(56	)		(54	)
Total loan charge-offs		(5,873	)			(5,897	)		(5,520	)		(4,783	)		(3,625	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		117				101			62			51			40
Real estate mortgage		10				11			6			6			10
Real estate construction		11				5			5			4			2
Lease financing		5				7			6			4			3
Total commercial and commercial real estate		143				124			79			65			55
Consumer:
Real estate 1-4 family first mortgage		86				71			49			32			33
Real estate 1-4 family junior lien mortgage		47				55			49			44			26
Credit card		53				49			43			48			40
Other revolving credit and installment		203				175			178			198			204
Total consumer		389				350			319			322			303
Foreign		11				10			11			10			9
Total loan recoveries		543				484			409			397			367
Net loan charge-offs		(5,330	)			(5,413	)		(5,111	)		(4,386	)		(3,258	)
Allowances related to business combinations/other		699				3			(2	)		(16	)		(165	)
Balance, end of quarter	$	25,656				25,031			24,528			23,530			22,846
Components:
Allowance for loan losses	$	25,123				24,516			24,028			23,035			22,281
Reserve for unfunded credit commitments		533				515			500			495			565
Allowance for credit losses	$	25,656				25,031			24,528			23,530			22,846
Net loan charge-offs (annualized) as a percentage of average total loans		2.71		%		2.71			2.50			2.11			1.54
Allowance for loan losses as a percentage of:
Total loans		3.22				3.13			3.00			2.80			2.64
Nonaccrual loans		92				100			115			146			212
Nonaccrual loans and other nonperforming assets		80				89			102			126			177
Allowance for credit losses as a percentage of:
Total loans		3.28				3.20			3.07			2.86			2.71
Nonaccrual loans		94				103			118			149			217
Nonaccrual loans and other nonperforming assets		81				91			105			128			181

(1) Certain impaired loans have a valuation allowance determined by discounting expected cash flows at the respective loan’s effective interest rate. Accordingly, the valuation allowance for these impaired loans reduces with the passage of time and that reduction is recognized as interest income.

- 36 -

Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

	Quarter ended March 31,
(in millions)	2010			2009
Balance, beginning of quarter (1)	$	114,359			102,316
Cumulative effect from change in accounting for VIEs (2)		183			-
Wells Fargo net income		2,547			3,045
Wells Fargo other comprehensive income (loss), net of tax, related to:
Translation adjustments		5			(18	)
Investment securities (3):
Unrealized losses related to factors other than credit		(39	)		(210	)
All other		1,023			3,473
Derivative instruments and hedging activities		73			(16	)
Defined benefit pension plans		16			69
Common stock issued		464			524
Common stock repurchased		(38	)		(54	)
Preferred stock discount accretion		-			98
Preferred stock released to ESOP		209			19
Common stock dividends		(260	)		(1,443	)
Preferred stock dividends, accretion and other		(175	)		(661	)
Noncontrolling interests and other, net		(213	)		(85	)
Balance, end of quarter	$	118,154			107,057

(1)	The impact 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 2009 beginning balance of retained earnings and reduce the 2009 beginning balance of other comprehensive income by $85 million ($53 million after tax).
(2)	Effective January 1, 2010, we adopted changes in consolidation accounting pursuant to amendments by ASU 2009 – 17 to ASC 810 (FAS 167) and, accordingly, consolidated certain VIEs that were not included in our consolidated financial statements at December 31, 2009. We recorded a $183 million increase to beginning retained earnings as a cumulative effect adjustment.
(3)	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.

- 37 -

Wells Fargo & Company and Subsidiaries
TIER 1 COMMON EQUITY(1)

		Quarter ended
			Mar. 31,			Dec. 31,
(in billions)			2010			2009
Total equity			$	118.1			114.4
Less: Noncontrolling interests				(2.0	)		(2.6	)
Total Wells Fargo stockholders’ equity				116.1			111.8
Less:  Preferred equity				(8.1	)		(8.1	)
Goodwill and intangible assets (other than MSRs)				(37.2	)		(37.7	)
Applicable deferred tax assets				5.2			5.3
Deferred tax asset limitation				-			(1.0	)
MSRs over specified limitations				(1.5	)		(1.6	)
Cumulative other comprehensive income				(4.1	)		(3.0	)
Other				(0.3	)		(0.2	)
Tier 1 common equity	(A)		$	70.1			65.5
Total risk-weighted assets (2)	(B)		$	987.7			1,013.6
Tier 1 common equity to total risk-weighted assets	(A)/(B)			7.10	%		6.46

(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 March 31, 2010, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $817.0 billion and derivative and off-balance sheet risk-weighted assets of $170.7 billion.

- 38 -

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(income/expense in millions, average balances in billions)	2010			2009			2009			2009			2009
COMMUNITY BANKING
Net interest income (2)	$	8,307			8,537			8,841			8,953			8,667
Provision for credit losses		4,530			4,952			4,635			4,303			4,020
Noninterest income		5,755			7,043			6,709			6,285			5,727
Noninterest expense		7,230			7,676			7,034			7,922			7,410
Income before income tax expense		2,302			2,952			3,881			3,013			2,964
Income tax expense		799			605			1,089			849			957
Net income before noncontrolling interests		1,503			2,347			2,792			2,164			2,007
Less: Net income from noncontrolling interests		48			150			56			73			61
Segment net income	$	1,455			2,197			2,736			2,091			1,946
Average loans	$	555.2			543.8			553.2			565.8			567.8
Average assets		784.9			800.8			804.9			824.0			810.8
Average core deposits		532.2			542.8			550.2			565.6			555.0
WHOLESALE BANKING
Net interest income (2)	$	2,500			2,681			2,535			2,460			2,343
Provision for credit losses		799			955			1,368			738			543
Noninterest income		2,825			2,574			2,399			2,775			2,550
Noninterest expense		2,660			2,703			2,647			2,802			2,533
Income before income tax expense		1,866			1,597			919			1,695			1,817
Income tax expense		666			578			322			619			641
Net income before noncontrolling interests		1,200			1,019			597			1,076			1,176
Less: Net income from noncontrolling interests		3			11			3			7			5
Segment net income	$	1,197			1,008			594			1,069			1,171
Average loans	$	232.2			238.5			247.0			258.4			278.2
Average assets		361.4			362.5			368.4			377.7			408.5
Average core deposits		160.9			162.4			146.8			137.4			139.6
WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	664			549			580			637			641
Provision for credit losses		63			93			233			111			23
Noninterest income		2,246			2,105			2,188			2,187			1,878
Noninterest expense		2,390			2,558			2,333			2,300			2,235
Income before income tax expense (benefit)		457			3			202			413			261
Income tax expense (benefit)		173			(10	)		69			158			107
Net income before noncontrolling interests		284			13			133			255			154
Less: Net income (loss) from noncontrolling interests		2			29			22			(3	)		(22	)
Segment net income (loss)	$	282			(16	)		111			258			176
Average loans	$	43.8			44.8			45.4			46.0			46.6
Average assets		137.8			137.7			129.8			127.0			117.1
Average core deposits		121.1			124.1			116.3			113.5			102.8
OTHER (3)
Net interest income (2)	$	(324	)		(267	)		(272	)		(286	)		(275	)
Provision for credit losses		(62	)		(87	)		(125	)		(66	)		(28	)
Noninterest income		(525	)		(526	)		(514	)		(504	)		(514	)
Noninterest expense		(163	)		(116	)		(330	)		(327	)		(360	)
Loss before income tax benefit		(624	)		(590	)		(331	)		(397	)		(401	)
Income tax benefit		(237	)		(224	)		(125	)		(151	)		(153	)
Net loss before noncontrolling interests		(387	)		(366	)		(206	)		(246	)		(248	)
Less: Net income from noncontrolling interests		-			-			-			-			-
Other net loss	$	(387	)		(366	)		(206	)		(246	)		(248	)
Average loans	$	(33.8	)		(34.7	)		(35.4	)		(36.3	)		(37.0	)
Average assets		(58.0	)		(61.5	)		(57.0	)		(53.8	)		(46.7	)
Average core deposits		(55.0	)		(58.5	)		(54.0	)		(50.8	)		(43.5	)
CONSOLIDATED COMPANY
Net interest income (2)	$	11,147			11,500			11,684			11,764			11,376
Provision for credit losses		5,330			5,913			6,111			5,086			4,558
Noninterest income		10,301			11,196			10,782			10,743			9,641
Noninterest expense		12,117			12,821			11,684			12,697			11,818
Income before income tax expense		4,001			3,962			4,671			4,724			4,641
Income tax expense		1,401			949			1,355			1,475			1,552
Net income before noncontrolling interests		2,600			3,013			3,316			3,249			3,089
Less: Net income from noncontrolling interests		53			190			81			77			44
Wells Fargo net income	$	2,547			2,823			3,235			3,172			3,045
Average loans	$	797.4			792.4			810.2			833.9			855.6
Average assets		1,226.1			1,239.5			1,246.1			1,274.9			1,289.7
Average core deposits		759.2			770.8			759.3			765.7			753.9

(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. In first quarter 2010, we conformed certain funding and allocation methodologies of legacy Wachovia to those of Wells Fargo; in addition, amounts remaining in “Other” related to integration expense were revised to reflect only integration expense related to the Wachovia merger. Prior periods have been revised to reflect both changes.
(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)	Includes Wachovia 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.

- 39 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2010			2009			2009			2009			2009
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	16,004			14,500			15,690			12,391			14,714
Adjustments from adoption of ASU 2009-17 (FAS 167)		(118	)		-			-			-			-
Acquired from Wachovia (1)		-			-			-			-			34
Servicing from securitizations or asset transfers		1,054			1,181			1,517			2,081			1,447
Net additions		936			1,181			1,517			2,081			1,481
Changes in fair value:
Due to changes in valuation model inputs or assumptions (2)		(777	)		1,052			(2,078	)		2,316			(2,824	)
Other changes in fair value (3)		(619	)		(729	)		(629	)		(1,098	)		(980	)
Total changes in fair value		(1,396	)		323			(2,707	)		1,218			(3,804	)
Fair value, end of quarter	$	15,544			16,004			14,500			15,690			12,391

(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
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2010			2009			2009			2009			2009
Amortized MSRs:
Balance, beginning of quarter	$	1,119			1,162			1,205			1,257			1,446
Adjustments from adoption of ASU 2009-17 (FAS 167)		(5	)		-			-			-			-
Purchases		1			1			-			6			4
Acquired from Wachovia (1)		-			-			-			(8	)		(127	)
Servicing from securitizations or asset transfers		11			18			21			18			4
Amortization		(57	)		(62	)		(64	)		(68	)		(70	)
Balance, end of quarter (2)	$	1,069			1,119			1,162			1,205			1,257
Fair value of amortized MSRs:
Beginning of quarter	$	1,261			1,277			1,311			1,392			1,555
End of quarter		1,283			1,261			1,277			1,311			1,392

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

- 40 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2010			2009			2009			2009			2009
Servicing income, net:
Servicing fees (1)	$	1,053			1,059			1,085			951			1,081
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)		(777	)		1,052			(2,078	)		2,316			(2,824	)
Other changes in fair value (3)		(619	)		(729	)		(629	)		(1,098	)		(980	)
Total changes in fair value of residential MSRs		(1,396	)		323			(2,707	)		1,218			(3,804	)
Amortization		(57	)		(62	)		(64	)		(68	)		(70	)
Net derivative gains (losses) from economic hedges (4)		1,766			830			3,605			(1,285	)		3,699
Total servicing income, net	$	1,366			2,150			1,919			816			906
Market-related valuation changes to MSRs and economic hedges (2)+(4)	$	989			1,882			1,527			1,031			875

(1)	Includes contractually specified servicing fees, late charges and other ancillary revenues. 2009 amounts have been revised to conform to current presentation.
(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.

	Mar. 31,			Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in billions)	2010			2009		2009		2009		2009
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,417			1,422		1,419		1,394		1,379
Owned loans serviced		371			364		365		377		377
Subservicing		10			10		11		12		13
Total residential servicing		1,798			1,796		1,795		1,783		1,769
Commercial mortgage servicing:
Serviced for others		449			454		458		470		474
Owned loans serviced		105			105		103		104		105
Subservicing		10			10		10		10		10
Total commercial servicing		564			569		571		584		589
Total managed servicing portfolio	$	2,362			2,365		2,366		2,367		2,358
Total serviced for others	$	1,866			1,876		1,877		1,864		1,853
Ratio of MSRs to related loans serviced for others		0.89	%		0.91		0.83		0.91		0.74
Weighted-average note rate (mortgage loans serviced for others)		5.59			5.66		5.72		5.74		5.83

(1) The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book value for owned loans serviced.

- 41 -

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA

	Quarter ended
	Mar. 31,			Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in billions)	2010			2009		2009		2009		2009
Application data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	125			144		123		194		190
Refinances as a percentage of applications		61	%		72		62		73		82
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	59			57		62		90		100

	Quarter ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in billions)	2010		2009		2009		2009		2009
Residential Real Estate Originations:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	43		51		50		71		51
Correspondent/Wholesale		32		42		45		57		49
Other (1)		1		1		1		1		1
Total quarter-to-date	$	76		94		96		129		101
Total year-to-date	$	76		420		326		230		101

(1) Consists of home equity loans and lines and Wells Fargo Financial.

CHANGES IN RESERVE FOR MORTGAGE LOAN REPURCHASE LOSSES

	Quarter ended			Year ended
	Mar. 31,			Dec. 31,
(in millions)	2010			2009
Balance, beginning of period	$	1,033			620	(1)
Additions:
Loan sales		44			302
Change in estimate - primarily due to credit deterioration		358			625
Total additions		402			927
Losses		(172	)		(514	)
Balance, end of period	$	1,263			1,033

(1) Reflects purchase accounting refinements.