Wells Fargo & Company (WFC) 8-K Wells Fargo Reports Record Quarterly and Full Year Net Income

Exhibit 99.1

Media	Investors
Mary Eshet	Jim Rowe
704-383-7777	415-396-8216

Wednesday, January 19, 2011

WELLS FARGO REPORTS RECORD QUARTERLY AND FULL YEAR NET INCOME

Q4 Net Income of $3.4 billion; Q4 Revenue of $21.5 billion

Continued strong financial results in fourth quarter 2010:

• Record net income of $3.4 billion, up 21 percent from prior year

• Diluted earnings per common share of $0.61

• Revenue of $21.5 billion, up 12 percent (annualized) from prior quarter

• Net interest margin of 4.16 percent, return on assets of 1.09 percent (annualized), and return on equity of 10.95 percent (annualized)

Diverse sources of franchise growth in fourth quarter 2010:

• All business segments contributed to earnings; Wholesale Banking up 11 percent from prior quarter

• Double-digit revenue growth across multiple businesses

• Loan growth in major loan categories–commercial and industrial, commercial real estate mortgage and real estate 1-4 mortgages; total loans up $3.6 billion, or 2 percent (annualized), from September 30, 2010; non-strategic/liquidating loans down $6.0 billion, all other loans up $9.6 billion from September 30, 2010

• Average checking and savings deposit growth accelerated to 17 percent (annualized) from prior quarter

• Supplied $210 billion in credit to consumers and businesses during the quarter, up $34.5 billion, or 20 percent, from prior quarter; highest quarterly volume of credit extended since merger

Continued and significant improvement in credit quality:

• Net loan charge-offs declined to $3.8 billion, down $256 million from prior quarter and 29 percent below fourth quarter 2009 peak

• Nonperforming assets declined to $32.4 billion and nonperforming loans declined to $26.2 billion, down $2.1 billion from prior quarter

• Most leading credit quality metrics stable to improving

• Reserve release¹of $850 million (pre tax) reflected improved portfolio performance; expect future reductions in the allowance absent significant deterioration in the economy

¹ Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

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• Allowance for credit losses of $23.5 billion = 6 times quarterly charge-offs

• Remaining purchased credit-impaired (PCI) nonaccretable of $13.4 billion = 29.5% of remaining unpaid principal balance

Completed 2^nd year of Wachovia integration; merger on track and exceeding original expectations:

• Completed conversion of retail banking stores in Georgia and finished the replacement of Wachovia ATM network withEnvelope-Free^SM webATMmachines

• Remaining Eastern banking markets will convert by year end 2011

• Converted brokerage platform the weekend of January 15^th

Capital ratios continued to increase, driven by $13 billion (12 percent) internal capital generation since December 31, 2009:

	Dec. 31,			Sept. 30,		Dec. 31,
(as a percent of total risk-weighted assets)	2010 (1)			2010		2009
Tier 1 capital		11.3	%		10.9		9.3
Total capital		15.1			14.9		13.3
Tier 1 leverage		9.2			9.0		7.9
Tier 1 common equity (2)		8.4			8.0		6.5

(1)	December 31, 2010, ratios are preliminary.
(2)	See table on page 39 for more information on Tier 1 common equity.

• Company’s estimated Tier 1 common ratio under Basel III capital proposals was 6.9 percent at December 31, 2010²

Industry leader in loan modifications for homeowners:

• As of December 31, 2010, more than 620,000 active trial or completed loan modifications had been initiated since beginning of 2009; of this total, 530,000 were through Wells Fargo’s own programs, with the remaining 90,000 under the federal government’sHome Affordable Modification Program(HAMP)

Full Year 2010:

• Record net income of $12.4 billion

• Revenue of $85.2 billion

• Diluted earnings per common share of $2.21

• Net interest margin of 4.26 percent, return on assets of 1.01 percent, and return on equity of 10.33 percent

² Pro formacalculations based on reported Tier 1 common equity, as adjusted to reflect management’s interpretation of current Basel III capital proposals. These pro forma calculations and management’s estimates are subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory authorities. Please see page 44 of the Fourth Quarter 2010 Quarterly Supplement for additional information.

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Selected Financial Information

	Quarter ended
	Dec. 31,			Sept. 30,		Dec. 31,		Year ended Dec. 31,
	2010			2010		2009		2010		2009
Earnings
Diluted earnings per common share	$	0.61			0.60		0.08		2.21		1.75
Wells Fargo net income (in billions)		3.41			3.34		2.82		12.36		12.28
Asset Quality
Net charge-offs as a % of avg. total loans		2.02	%		2.14		2.71		2.30		2.21
Allowance as a % of total loans		3.10			3.23		3.20		3.10		3.20
Allowance as a % of annualized net charge-offs		154			150		117		132		138
Other
Revenue (in billions)	$	21.49			20.87		22.70		85.21		88.69
Loans (in billions)		757.3			753.7		782.8		757.3		782.8
Average core deposits (in billions)		794.8			772.0		770.8		772.0		762.5
Net interest margin		4.16	%		4.25		4.31		4.26		4.28

SAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported record net income of $12.4 billion, or $2.21 per diluted common share, for 2010, up from $12.3 billion, or $1.75 per share, for 2009. Fourth quarter 2010 net income was a record $3.4 billion, or $0.61 per common share, compared with $3.3 billion, or $0.60 per common share, for third quarter 2010 and $2.8 billion, or $0.08 per common share, for fourth quarter 2009. Earnings per share for fourth quarter 2009 were reduced by $0.47 for the combined dividends and deemed dividend upon redemption and full repayment of TARP preferred stock.

“In 2010 Wells Fargo saw solid growth in a variety of businesses, with record net income for the full year as well as the fourth quarter,” said Chairman and CEO John Stumpf. “As the U.S. economy showed continued signs of improvement, our diversified model continued to perform for our stakeholders, as demonstrated by growth in loans and deposits, solid capital levels and improving credit quality.

“Wells Fargo was once again ranked No. 1 in the American Customer Satisfaction Index (ACSI), an independent survey of consumer satisfaction of the largest banks in the U.S., for 2010. Our internal metrics indicate greater customer retention and deepening customer relationships. Of course, our engaged team members are one of the main reasons for these customer satisfaction results.

“As we look to the future, it is within the larger context of the ‘new normal’ for the industry, U.S. economy, our customers and our Company that we focus on long-term growth. We’re beginning our third year of the Wachovia integration, which we expect to complete by the end of 2011. We are very pleased with our progress to date and, since the merger in December 2008, Wells Fargo has earned $24.6 billion – a real testament to the power of this combined franchise. A sincere thank you to our 281,000 team members for their continued work in making Wells Fargo one of America’s great companies.”

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Financial Performance
“Wells Fargo has earned strong and consistent profits in each of the eight quarters since the 2008 merger with Wachovia – $24.6 billion in profit in two years, including a record $3.4 billion in profit in the fourth quarter,” said Chief Financial Officer Howard Atkins. “Our results in the fourth quarter were driven by broad-based revenue growth – up 12 percent (annualized) from the prior quarter in total, including revenue growth in roughly two-thirds of our businesses. In addition, we experienced a significant improvement in credit quality, with a $2.1 billion decline in nonperforming loans, along with the fourth consecutive quarter of lower charge-offs, down 29 percent from the fourth quarter 2009 peak. The Wachovia merger is already proving to be a financial success, with substantially all of the expected expense savings already realized and growing revenue synergies reflective of market share gains in many businesses including deposits, mortgage, auto dealer services and investment banking. Our capital is substantially stronger than it has ever been – with Tier 1 common equity reaching 8.4 percent as of December 31, 2010, under Basel I and an estimated 6.9 percent under Basel III capital proposals. Capital continued to grow, reflecting a 1.1 percent return on assets and 3 percent rate of internal capital generation in the fourth quarter.”

Revenue
Revenue of $21.5 billion increased 12 percent (annualized) from third quarter 2010. Revenue growth was broad-based, with a wide variety of businesses again generating double-digit (annualized) linked-quarter revenue growth, including asset management, auto dealer services, brokerage, capital finance, commercial banking, commercial mortgage originations, commercial real estate, debit card, equipment finance, global remittance, insurance, international, investment banking, mortgage banking, real estate brokerage, shareowner services, SBA lending and wealth management. Over 60 percent of the Company’s total revenue in the quarter was earned in businesses that produced double-digit revenue growth.

Net Interest Income
Net interest income was $11.06 billion, compared with $11.10 billion in third quarter 2010. PCI loan resolution interest income declined to $78 million in fourth quarter from $153 million in third quarter, accounting for 3 basis points of the 9 basis point decline in the net interest margin, with the remainder of the margin decline largely attributable to the first linked-quarter growth in average earning assets since fourth quarter 2009 – up nearly $18 billion from third quarter.

Noninterest Income
Noninterest income was $10.4 billion, up $655 million, or 27 percent (annualized), from third quarter. On a linked-quarter basis, declines in deposit service charges (down $97 million from third quarter largely due to Regulation E impact offset by core deposit growth of 3 percent) and operating leases (down $143 million) were more than offset by growth in mortgage banking noninterest income (up $258 million, primarily driven by higher net gains on origination/sales), trust and investment fees (up $394 million, or

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15 percent, on higher volumes and market gains), insurance (up $167 million on stronger crop underwriting results), and trading gains (up $62 million, or 13 percent).

Mortgage banking noninterest income was $2.8 billion, up 10 percent from third quarter 2010 on $128 billion of originations compared with $101 billion of originations in third quarter. Mortgage banking noninterest income in fourth quarter included a $464 million provision for mortgage loan repurchase losses compared with $370 million in third quarter (included in net gains from mortgage loan origination/sales activities) and a $143 million mortgage servicing rights (MSR) value reduction due to higher estimated future servicing and foreclosure costs (reduction in net servicing income). Net MSR results were $(143) million, inclusive of the $143 million MSR adjustment. The ratio of MSRs as a percent of loans serviced for others was 86 basis points and the average note rate on the servicing portfolio was 5.39 percent, compared with an average 4.86 percent published rate in the Freddie Mac Primary Mortgage Market Survey at quarter-end. The unclosed pipeline at December 31, 2010, was $73 billion compared with $101 billion at September 30, 2010.

The Company had net unrealized securities gains of $8.3 billion at December 31, 2010. Net realized equity gains of $317 million were largely offset by $268 million of realized bond losses, reflecting the Company’s decision to sell its lowest-yielding bonds, which were repositioned at the higher long-term interest rates prevailing late in the quarter.

Noninterest Expense
Noninterest expense was $13.3 billion, up from $12.3 billion in third quarter 2010. Fourth quarter expenses included $534 million of merger integration costs (up $58 million from third quarter) and a $400 million charitable contribution to the Wells Fargo Foundation, covering three years of estimated funding for the foundation. Fourth quarter also included approximately $200 million of seasonally higher year-end expenses, including higher advertising, equipment, software and travel costs. The quarter included approximately $200 million of incremental mortgage volume-related costs, which will likely decline if mortgage production declines. Finally, there were continued elevated loan resolution costs, including an additional $86 million of foreclosed asset expense, largely due to additional workout costs and sales. The Company’s efficiency ratio was 62.1 percent compared with 58.7 percent in third quarter 2010 and 56.5 percent in fourth quarter 2009.

Loans
At December 31, 2010, total loans were $757.3 billion, up from $753.7 billion at September 30, 2010. “We’ve seen signs of increased lending activity for several quarters and, during the fourth quarter, loans grew $3.6 billion. We had linked-quarter loan growth in many portfolios, including asset-backed finance, auto, brokerage lines of credit, capital finance, commercial banking, commercial real estate, equipment finance, government banking, international, mortgage, private student lending and SBA lending,” said Atkins. “We also continued to run-off the non-strategic/liquidating loan portfolios (legacy Wells Fargo

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Financial indirect auto, liquidating home equity, legacy Wells Fargo Financial debt consolidation, Pick-a-Pay mortgage, and other PCI), which declined $6.0 billion in the quarter.”

Deposits
Average core deposits were $794.8 billion, up 12 percent (annualized) from $772.0 billion in third quarter 2010. Consumer checking accounts grew a net 7.5 percent from December 31, 2009. Average checking and savings deposits increased 8 percent from a year ago to $715.7 billion. Average mortgage escrow deposits were $36.0 billion compared with $30.2 billion in third quarter 2010. “We continued to attract high-quality core deposits in the form of checking and savings accounts, which we view as the cornerstone of the banking relationship with our consumer and business customers,” said Atkins. Average checking and savings deposits were 90 percent of average core deposits, up from 86 percent a year ago. The average deposit cost for fourth quarter 2010 was 31 basis points.

Capital
Capital ratios increased in the fourth quarter, driven by internal capital generation of $3.5 billion. As a percentage of total risk-weighted assets, Tier 1 capital increased to 11.3 percent, total capital to 15.1 percent and Tier 1 common equity to 8.4 percent at December 31, 2010, up from 10.9 percent, 14.9 percent and 8.0 percent, respectively, at September 30, 2010. The Tier 1 leverage ratio was 9.2 percent at December 31, 2010, up from 9.0 percent at September 30, 2010. Under Basel III capital proposals, the Company’s estimated Tier 1 common ratio was 6.9 percent at December 31, 2010.

Credit Quality
“We saw meaningful improvement in credit quality in the fourth quarter, with virtually every metric showing positive movement,” said Mike Loughlin, Chief Risk Officer. “Net charge-offs peaked a year ago and continued to decline in the fourth quarter. We’ve now experienced a decline in nonperforming assets as well, driven by a $2.1 billion reduction in nonperforming loans. Thirty days past due loans declined 5 percent in consumer portfolios, and delinquency data across the majority of portfolios improved even with the typical seasonal headwinds. The significant decline in loans 90 days past due and still accruing is another indicator of a positive shift in credit quality. Additionally, the improvement was evident in the PCI portfolio, which consists of loans acquired through the Wachovia merger that were deemed to have probable loss and therefore written down at acquisition. The PCI portfolio continued to perform better than originally expected. Reflecting the improved overall portfolio performance, the provision for credit losses was $850 million less than net charge-offs. Absent significant deterioration in the economy, we expect future reductions in the allowance for credit losses.”

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Credit Losses
Fourth quarter net charge-offs were $3.8 billion, or 2.02 percent (annualized) of average loans, down $256 million from third quarter net charge-offs of $4.1 billion (2.14 percent). Virtually all major loan categories experienced lower charge-offs in the quarter, including commercial and industrial, commercial real estate construction, residential real estate and all other consumer. The small increase in commercial real estate mortgage losses was related to write-downs based on regular appraisal updates. Total net credit losses included $954 million of commercial losses (1.19 percent), down $111 million from third quarter, and $2.9 billion of consumer losses (2.63 percent), down $145 million from third quarter, as shown in the following table.

Net Loan Charge-Offs

	Quarter ended
	December 31, 2010					September 30, 2010					June 30, 2010
			As a					As a					As a
	Net loan		% of			Net loan		% of			Net loan		% of
	charge-		average			charge-		average			charge-		average
($ in millions)	offs		loans (1)			offs		loans (1)			offs		loans (1)
Commercial:
Commercial and industrial	$	500		1.34	%	$	509		1.38	%	$	689		1.87	%
Real estate mortgage		234		0.94			218		0.87			360		1.47
Real estate construction		171		2.51			276		3.72			238		2.90
Lease financing		21		0.61			23		0.71			27		0.78
Foreign		28		0.36			39		0.52			42		0.57
Total commercial		954		1.19			1,065		1.33			1,356		1.69
Consumer:
Real estate 1-4 family first mortgage		1,024		1.77			1,034		1.78			1,009		1.70
Real estate 1-4 family junior lien mortgage		1,005		4.08			1,085		4.30			1,184		4.62
Credit card		452		8.21			504		9.06			579		10.45
Other revolving credit and installment		404		1.84			407		1.83			361		1.64
Total consumer		2,885		2.63			3,030		2.72			3,133		2.79
Total	$	3,839		2.02	%	$	4,095		2.14	%	$	4,489		2.33	%

(1) Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 31 of the accounting for purchased credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets declined for the first time since the merger with Wachovia, ending the quarter at $32.4 billion, down 6 percent from $34.6 billion in the third quarter. Nonaccrual loans declined to $26.2 billion from $28.3 billion for the third quarter, with reductions in commercial and industrial, commercial real estate construction and each of the consumer categories: 1-4 family first mortgage, 1-4 family junior lien mortgage, and other revolving credit and installment.

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Nonaccrual Loans and Other Nonperforming Assets

	December 31, 2010						September 30, 2010					June 30, 2010
				As a					As a					As a
				% of					% of					% of
	Total			total			Total		total			Total		total
($ in millions)	balances			loans			balances		loans			balances		loans
Commercial:
Commercial and industrial	$	3,213			2.12	%	$	4,103		2.79	%	$	3,843		2.63	%
Real estate mortgage		5,227			5.26			5,079		5.14			4,689		4.71
Real estate construction		2,676			10.56			3,198		11.46			3,429		11.10
Lease financing		108			0.82			138		1.06			163		1.21
Foreign		127			0.39			126		0.42			115		0.38
Total commercial		11,351			3.52			12,644		3.99			12,239		3.82
Consumer:
Real estate 1-4 family first mortgage		12,289			5.34			12,969		5.69			12,865		5.50
Real estate 1-4 family junior lien mortgage		2,302			2.39			2,380		2.40			2,391		2.36
Other revolving credit and installment		300			0.35			312		0.35			316		0.36
Total consumer		14,891			3.42			15,661		3.58			15,572		3.49
Total nonaccrual loans		26,242			3.47			28,305		3.76			27,811		3.63
Foreclosed assets:
GNMA		1,479						1,492					1,344
All other		4,530						4,635					3,650
Total foreclosed assets		6,009						6,127					4,994
Real estate and other nonaccrual investments		120						141					131
Total nonaccrual loans and other nonperforming assets	$	32,371			4.27	%	$	34,573		4.59	%	$	32,936		4.30	%
Change from prior quarter:
Total nonaccrual loans	$	(2,063	)				$	494				$	510
Total nonperforming assets		(2,202	)					1,637					1,436

While nonaccrual loans are not free of loss content, the loss exposure remaining in these balances is expected to be significantly mitigated by four factors. First, 99 percent of consumer nonaccrual loans and 95 percent of commercial nonaccruals are secured. Second, losses have already been recognized on 41 percent of the consumer nonaccruals and commercial nonaccruals have been written down by $2.6 billion. Residential nonaccrual loans are generally written down to net realizable value at 180 days past due. Third, as of December 31, 2010, 57 percent of commercial nonaccrual loans were current on interest. Fourth, the inherent risk of loss in all nonaccruals is adequately covered by the allowance for loan losses.

Foreclosed assets were $6.0 billion at December 31, 2010, down $118 million from third quarter. The $6.0 billion of foreclosed assets includes $2.0 billion from the PCI portfolios and $1.5 billion from fully insured GNMA loans. The quarterly reduction reflects a balance between inflows and outflows during the period. Given the current levels of nonaccruing loans, we would expect a higher than normal inflow into foreclosed assets over the near term as we resolve these loans,” said Loughlin. “However, as the majority of the loss content in these assets has already been accounted for, or the assets are government insured, there should be limited additional impact to expected loss levels.”

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Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing also improved in the quarter, totaling $18.5 billion at December 31, 2010, compared with $18.8 billion at September 30, 2010. For the same dates, the totals included $14.7 billion and $14.5 billion, respectively, in loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. “Excluding these insured loan balances, 90 days past due and accruing balances were down 12 percent from the prior quarter,” said Loughlin. “Leading the decrease, commercial loans 90 days or more past due and still accruing improved significantly, down $417 million, or 40 percent, from last quarter – additional evidence of improving credit performance trends.”

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $23.5 billion at December 31, 2010, down from $24.4 billion at September 30, 2010. The allowance coverage to total loans was 3.10 percent compared with 3.23 percent at September 30, 2010. The allowance covered 1.54 times annualized fourth quarter net charge-offs compared with 1.50 times in the prior quarter. The allowance coverage to nonaccrual loans was 89 percent at December 31, 2010, compared with 86 percent at September 30, 2010. “We believe the allowance was adequate for losses inherent in the loan portfolio at December 31, 2010, and continues to reflect prudent acknowledgement of uncertainty in the economic environment,” said Loughlin.

Additional detail on credit quality is included in the quarterly supplement, available on the Investor Relations page atwww.wellsfargo.com/invest_relations/investor_relations/

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
	Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2010		2010		2009
Community Banking	$	1,970		1,971		2,176
Wholesale Banking		1,644		1,476		1,029
Wealth, Brokerage and Retirement		197		256		(16	)

In fourth quarter 2010, we realigned certain lending businesses into Wholesale Banking from Community Banking to reflect our previously announced restructuring of Wells Fargo Financial. Prior periods have been revised to reflect this change. More financial information about the business segments is on pages 40 and 41.

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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. through its Regional Banking and Wells Fargo Home Mortgage business units.

Selected Financial Information

	Quarter ended
	Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2010		2010		2009
Total revenue	$	13,548		13,505		15,511
Provision for credit losses		2,785		3,155		4,943
Noninterest expense		7,857		7,333		7,650
Segment net income		1,970		1,971		2,176
(in billions)
Average loans		514.1		522.2		538.9
Average assets		772.4		770.8		796.5
Average core deposits		544.4		537.1		542.2

Community Banking reported net income of $2.0 billion, flat compared with third quarter 2010 and down $206 million, or 9 percent, from fourth quarter 2009. Revenue increased $43 million from third quarter 2010, driven primarily by an increase in mortgage banking income, as higher origination/sales activities more than made up for lower servicing income, offset by lower deposit service charges due to changes to Regulation E and the planned reduction in certain liquidating loan portfolios. Revenue decreased $2 billion, or 13 percent, from fourth quarter 2009 largely due to lower mortgage banking income, lower deposit service charges due to Regulation E and the planned reduction in certain liquidating loan portfolios. Noninterest expense increased $524 million, or 7 percent, from third quarter 2010, driven by a $400 million charitable contribution to the Wells Fargo Foundation, increases in foreclosed assets expense and seasonal software license and equipment maintenance expense, partially offset by lower litigation expense. Noninterest expense increased $207 million, or 3 percent, from a year ago primarily due to the $400 million charitable contribution offset by lower litigation expense and Wachovia merger-related cost savings. The provision for credit losses decreased $370 million from third quarter 2010 due to a $120 million decrease in net loan charge-offs and a $650 million reserve release compared with a $400 million reserve release in third quarter 2010. Provision decreased $2.2 billion from fourth quarter 2009 on lower net charge-offs across consumer, small business and credit card portfolios, and a $650 million fourth quarter 2010 reserve release compared with a reserve build of $385 million a year ago.

Regional Banking Highlights

• Strong growth in checking accounts from December 31, 2009 (combined Regional Banking)

- Consumer checking accounts up a net 7.5 percent

- Business checking accounts up a net 4.8 percent

- Consumer checking accounts up a net 8.2 percent in California and 10.0 percent in Florida

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• Record solutions in 2010

- Western footprint including converted Wachovia

o Core product solutions (sales) of 30.1 million, up 16 percent from 2009

o Core sales per platform banker FTE (active, full-time equivalent) of 6.05 per day, up from 5.75 in 2009

o Sales ofWells Fargo Packages^® (a checking account and three other products) up 21 percent from 2009, purchased by 81 percent of new checking account customers

- Eastern footprint including converted Wachovia

o Eastern core product solutions and platform banker productivity grew by double digits in 2010

o Platform banker FTEs in the East grew by more than 1,950, or 22 percent, in 2010

o As of the end of fourth quarter, and after only a few months on the Wells Fargo systems, over 75 percent of new checking account customers purchasedWells Fargo Packages^® in the converted southeastern states

• Retail bank household cross-sell showing growth for combined company

- For first time since the merger, Regional Banking now reporting a Retail Bank household cross-sell ratio for total combined company of 5.70 products per household, up from 5.47 in December 2009

- This ratio, lower than legacy Wells Fargo’s stand-alone cross-sell, reflects the opportunity to earn more of the business from our legacy Wachovia customers; the cross-sell in the West is 6.14, compared with the cross-sell ratio in the East of 5.11

• Customer experience (combined Regional Banking)

- Surveyed over 250,000 customers about their experience with Wells Fargo stores and contact centers in fourth quarter; nearly 8 out of 10 customers were “extremely satisfied,” the highest rating, with their recent call or visit with Wells Fargo

• Continued focus on distribution

- Converted 279 Wachovia banking stores in Georgia to Wells Fargo in October 2010; total of 749 nationwide converted in 2010

- Opened 47 banking stores in 2010 for retail network total of 6,314 stores

- Converted 4,190 ATMs toEnvelope-Free^SM webATMmachines in 2010

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• Small Business/Business Banking

- Store-based business solutions up 22 percent from 2009 (Western footprint including converted Wachovia)

- Sales ofWells Fargo Business Services Packages(business checking account and at least three other business products) up 42 percent from 2009, purchased by 65 percent of new business checking account customers (Western footprint including converted Wachovia)

- Business Banking household cross-sell of 4.04 products per household (Western footprint including Wells Fargo and Wachovia customers)

- Wells Fargo, America’s #1 small business lender and the largest SBA lender (in dollars), extended $14.9 billion of new lending (new lending to existing or new borrowers, and increases to existing lines of credit) to small business owners in 2010. This includes $4.6 billion of new loans during the fourth quarter, representing an 18 percent increase from fourth quarter 2009 lending.

• Online and Mobile Banking

- 18.3 million combined active online customers

- 4.7 million combined active Bill Pay customers

- Global Financeranked Wells Fargo Best Consumer Internet Bank in North America (November, 2010)

Wells Fargo Home Mortgage (Home Mortgage)

• Home Mortgage applications of $158 billion, compared with $194 billion in prior quarter

• Home Mortgage application pipeline of $73 billion at quarter end, compared with $101 billion at September 30, 2010

• Home Mortgage originations of $128 billion, up 27 percent from $101 billion in prior quarter

• Owned residential mortgage servicing portfolio of $1.8 trillion

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Wholesale Bankingprovides financial solutions to businesses across the United States and globally with annual sales generally in excess of $20 million. Products & business units include Middle Market Commercial Banking, Government & Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Investment Banking & Capital Markets, Securities Investment Portfolio, Asset Backed Finance, and Asset Management.

Selected Financial Information

	Quarter ended
	Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2010		2010		2009
Total revenue	$	5,764		5,330		5,324
Provision for credit losses		195		280		964
Noninterest expense		2,990		2,719		2,729
Segment net income		1,644		1,476		1,029
(in billions)
Average loans		229.6		227.3		243.4
Average assets		383.6		371.0		366.8
Average core deposits		185.1		170.8		163.0

Wholesale Banking reported net income of $1.6 billion, up $615 million, or 60 percent, from fourth quarter 2009 and up $168 million, or 11 percent, from third quarter 2010. Revenue increased $440 million, or 8 percent, from fourth quarter 2009 driven by strong growth in net interest income, as margins improved due to solid deposit gains and substantial gains in loan portfolio yields from fourth quarter 2009, as well as solid growth in noninterest income, driven by investment banking and capital markets, commercial mortgage origination and servicing, corporate banking fees, and strong Eastdil Secured results from private market real estate deal activity. Revenue increased $434 million, or 8 percent, from third quarter 2010 as strong investment banking and capital markets, commercial mortgage origination and rural crop insurance results and the impact of higher loan portfolio balances more than offset lower recoveries in the PCI portfolio. Noninterest expense increased $261 million, or 10 percent, from fourth quarter 2009 related to higher personnel expenses tied to revenue growth and litigation expense. Total provision for credit losses of $195 million declined $769 million, or 80 percent, from fourth quarter 2009. The decrease included a $454 million improvement in credit losses from fourth quarter 2009 and a $200 million reserve release compared with a $115 million credit reserve build in fourth quarter 2009. Nonperforming assets declined roughly $1.1 billion from third quarter 2010.

• Revenue up 8 percent from fourth quarter 2009

• Loan growth in many portfolios, including asset-backed finance, capital finance, commercial banking, commercial real estate, equipment finance, government banking and international, from third quarter 2010

• Continued strong deposit growth, with average core deposits up 14 percent from fourth quarter 2009

• Named Best Corporate/Institutional Internet bank in North America byGlobal Finance (November, 2010)

- 14 -

• Processed $1 trillion in deposits by commercial banking customers usingDesktop Deposit^® service

• Wells Fargo Shareowner Services^SM is industry’s highest rated transfer agency for client satisfaction based on study by GROUP FIVE

• CEO Mobile^® named one of the five best applications byBank Technology News (October, 2010)

Wealth, Brokerage and Retirementprovides a full range of financial advisory services to clients using a comprehensive planning approach to meet each client’s needs. Wealth Management provides affluent and high net worth clients with a complete range of wealth management solutions including financial planning, private banking, credit, investment management and trust. Family Wealth meets the unique needs of the ultra high net worth customers. Retail Brokerage’s financial advisors serve customers’ advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the U.S. Retirement provides retirement services for individual investors and is a national leader in 401(k) and pension record keeping.

Selected Financial Information

	Quarter ended
	Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2010		2010		2009
Total revenue	$	3,041		2,912		2,654
Provision for credit losses		113		77		93
Noninterest expense		2,608		2,420		2,558
Segment net income		197		256		(16	)
(in billions)
Average loans		43.0		42.6		44.8
Average assets		140.2		138.2		137.7
Average core deposits		121.5		120.7		124.1

Wealth, Brokerage and Retirement reported net income of $197 million, down $59 million from third quarter 2010 and up $213 million from fourth quarter 2009, which included the previously disclosed auction rate securities settlement. Revenue was $3.0 billion, up 15 percent from fourth quarter 2009, as higher asset-based revenues, brokerage transactional revenue and net interest income were partially offset by lower securities gains and other fees in the brokerage business. Total provision for credit losses increased $20 million from fourth quarter 2009. Noninterest expense was up 2 percent from fourth quarter 2009 due to growth in broker commissions primarily driven by higher production levels. Average core deposits decreased $3 billion, or 2 percent, from fourth quarter 2009.

Retail Brokerage

• Client assets of $1.2 trillion, up 6 percent from fourth quarter 2009

• Managed account assets increased $38 billion, or 20 percent, from fourth quarter 2009 driven by strong market gains and solid net flows

Wealth Management

• Investment management and trust asset-based revenue up 6 percent from fourth quarter 2009

- 15 -

Retirement

• Institutional retirement plan assets of $231 billion, up $14 billion, or 6 percent, from fourth quarter 2009

• IRA assets of $266 billion up $24 billion, or 10 percent, from fourth quarter 2009

Conference Call

The Company will host a live conference call on Wednesday, January 19, at 6:30 a.m. PST (9:30 a.m. EST). 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=263478&s=1&k=F1D152CEE9CE3D0916C517D8308EEABD

A replay of the conference call will be available beginning at approximately noon PST (3 p.m. EST) on January 19 through Wednesday, January 26. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291 (international) and enter Conference ID #48998396. The replay will also be available online atwellsfargo.com/invest_relations/earnings andhttp://event.meetingstream.com/r.htm?e=263478&s=1&k=F1D152CEE9CE3D0916C517D8308EEABD

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; the level and loss content of nonperforming assets and nonaccrual loans, as well as the level of inflows and outflows into nonperforming assets; and the adequacy of the allowance for loan losses, including our current expectation of future reductions in the allowance for loan losses; (ii) reduction or mitigation of risk in our loan portfolios; (iii) our estimates regarding our Tier 1 common ratio as of December 31, 2010 under proposed Basel III capital regulations; and (iv) the amount and timing of expected integration activities, expenses and cost savings relating to the Wachovia merger and expected synergies and benefits of the merger, as well as other expectations regarding future expenses, including mortgage volume-related costs.

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 (including under regulatory capital standards as determined and interpreted by applicable regulatory authorities such as the proposed Basel III capital regulations) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses (including the Dodd-Frank Wall Street Reform and Consumer Protection Act); the extent of success in our loan modification efforts, including the effects of regulatory requirements, or changes in regulatory requirements, relating to loan modifications; the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties; negative effects relating to mortgage foreclosures, including changes in our procedures or practices and/or industry standards or practices, regulatory or judicial requirements, penalties or fines, increased costs, or delays or moratoriums on foreclosures; our ability to successfully and timely integrate the Wachovia merger and realize the expected cost savings and

- 16 -

other benefits, including delays or disruptions in system conversions and higher severance costs; our ability to realize efficiency initiatives to lower expenses when and in the amount expected; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect of changes in interest rates on our net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; hedging gains or losses; disruptions in the capital markets and reduced investor demand for mortgage loans; our ability to sell more products to our customers; the effect of the economic recession on the demand for our products and services; the effect of fluctuations in stock market prices on fee income from our brokerage, asset and wealth management businesses; our election to provide support to our mutual funds for structured credit products they may hold; changes in the value of our venture capital investments; changes in our accounting policies or in accounting standards or in how accounting standards are to be applied; changes in our credit ratings and changes in the credit ratings of our customers or counterparties; 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 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010, and September 30, 2010, including the discussions under “Risk Factors” in each of those reports, as filed with the SEC and available on the SEC’s website atwww.sec.gov. Any factor described above or in our SEC reports could, by itself or together with one or more other factors, adversely affect our financial results and condition.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With approximately 281,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 19 onFortune’s2009 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

# # #

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS

	Pages
Summary Information
Summary Financial Data		18-19
Income
Consolidated Statement of Income		20-21
Average Balances, Yields and Rates Paid		22-23
Noninterest Income and Noninterest Expense		24-25
Balance Sheet
Consolidated Balance Sheet		26-27
Average Balances		28
Loans
Loans		29
Nonaccrual Loans and Other Nonperforming Assets		29
Loans 90 Days or More Past Due and Still Accruing		30
Purchased Credit-Impaired Loans		31-33
Pick-A-Pay Portfolio		34
Home Equity Portfolios		35
Allowance for Credit Losses		36-37
Equity
Condensed Consolidated Statement of Changes in Total Equity		38
Tier 1 Common Equity		39
Operating Segments
Operating Segment Results		40-41
Other
Mortgage Servicing and other related data		42-44

 - 18 -

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

	Quarter ended Dec. 31,					%			Year ended Dec. 31,				%
($ in millions, except per share amounts)	2010			2009		Change			2010		2009		Change
For the Period
Wells Fargo net income	$	3,414			2,823		21	%	$	12,362		12,275		1	%
Wells Fargo net income applicable to common stock		3,232			394		720			11,632		7,990		46
Diluted earnings per common share		0.61			0.08		663			2.21		1.75		26
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.09	%		0.90		21			1.01		0.97		4
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		10.95			1.66		560			10.33		9.88		5
Efficiency ratio (1)		62.1			56.5		10			59.2		55.3		7
Total revenue	$	21,494			22,696		(5	)	$	85,210		88,686		(4	)
Pre-tax pre-provision profit (PTPP) (2)		8,154			9,875		(17	)		34,754		39,666		(12	)
Dividends declared per common share		0.05			0.05		-			0.20		0.49		(59	)
Average common shares outstanding		5,256.2			4,764.8		10			5,226.8		4,545.2		15
Diluted average common shares outstanding		5,293.8			4,796.1		10			5,263.1		4,562.7		15
Average loans	$	753,675			792,440		(5	)	$	770,601		822,833		(6	)
Average assets		1,237,037			1,239,456		-			1,226,938		1,262,354		(3	)
Average core deposits (3)		794,799			770,750		3			772,021		762,461		1
Average retail core deposits (4)		609,807			580,873		5			602,033		588,072		2
Net interest margin		4.16	%		4.31		(3	)		4.26		4.28		-
At Period End
Securities available for sale	$	172,654			172,710		-		$	172,654		172,710		-
Loans		757,267			782,770		(3	)		757,267		782,770		(3	)
Allowance for loan losses		23,022			24,516		(6	)		23,022		24,516		(6	)
Goodwill		24,770			24,812		-			24,770		24,812		-
Assets		1,258,128			1,243,646		1			1,258,128		1,243,646		1
Core deposits (3)		798,192			780,737		2			798,192		780,737		2
Wells Fargo stockholders’ equity		126,408			111,786		13			126,408		111,786		13
Total equity		127,889			114,359		12			127,889		114,359		12
Capital ratios:
Total equity to assets		10.16	%		9.20		10			10.16		9.20		10
Risk-based capital (5):
Tier 1 capital		11.25			9.25		22			11.25		9.25		22
Total capital		15.13			13.26		14			15.13		13.26		14
Tier 1 leverage (5)		9.19			7.87		17			9.19		7.87		17
Tier 1 common equity (6)		8.37			6.46		30			8.37		6.46		30
Book value per common share	$	22.49			20.03		12		$	22.49		20.03		12
Team members (active, full-time equivalent)		272,200			267,300		2			272,200		267,300		2
Common stock price:
High	$	31.61			31.53		-		$	34.25		31.53		9
Low		23.37			25.00		(7	)		23.02		7.80		195
Period end		30.99			26.99		15			30.99		26.99		15

(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 December 31, 2010, ratios are preliminary.
(6)	See page 39 for additional information.

 - 19 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Dec. 31,			Sept. 30,		June 30,		Mar. 31,		Dec. 31,
($ in millions, except per share amounts)	2010			2010		2010		2010		2009
For the Quarter
Wells Fargo net income	$	3,414			3,339		3,062		2,547		2,823
Wells Fargo net income applicable to common stock		3,232			3,150		2,878		2,372		394
Diluted earnings per common share		0.61			0.60		0.55		0.45		0.08
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.09	%		1.09		1.00		0.84		0.90
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		10.95			10.90		10.40		8.96		1.66
Efficiency ratio (1)		62.1			58.7		59.6		56.5		56.5
Total revenue	$	21,494			20,874		21,394		21,448		22,696
Pre-tax pre-provision profit (PTPP) (2)		8,154			8,621		8,648		9,331		9,875
Dividends declared per common share		0.05			0.05		0.05		0.05		0.05
Average common shares outstanding		5,256.2			5,240.1		5,219.7		5,190.4		4,764.8
Diluted average common shares outstanding		5,293.8			5,273.2		5,260.8		5,225.2		4,796.1
Average loans	$	753,675			759,483		772,460		797,389		792,440
Average assets		1,237,037			1,220,368		1,224,180		1,226,120		1,239,456
Average core deposits (3)		794,799			771,957		761,767		759,169		770,750
Average retail core deposits (4)		609,807			571,062		574,436		573,653		580,873
Net interest margin		4.16	%		4.25		4.38		4.27		4.31
At Quarter End
Securities available for sale	$	172,654			176,875		157,927		162,487		172,710
Loans		757,267			753,664		766,265		781,430		782,770
Allowance for loan losses		23,022			23,939		24,584		25,123		24,516
Goodwill		24,770			24,831		24,820		24,819		24,812
Assets		1,258,128			1,220,784		1,225,862		1,223,630		1,243,646
Core deposits (3)		798,192			771,792		758,680		756,050		780,737
Wells Fargo stockholders’ equity		126,408			123,658		119,772		116,142		111,786
Total equity		127,889			125,165		121,398		118,154		114,359
Capital ratios:
Total equity to assets		10.16	%		10.25		9.90		9.66		9.20
Risk-based capital (5):
Tier 1 capital		11.25			10.90		10.51		9.93		9.25
Total capital		15.13			14.88		14.53		13.90		13.26
Tier 1 leverage (5)		9.19			9.01		8.66		8.34		7.87
Tier 1 common equity (6)		8.37			8.01		7.61		7.09		6.46
Book value per common share	$	22.49			22.04		21.35		20.76		20.03
Team members (active, full-time equivalent)		272,200			266,900		267,600		267,400		267,300
Common stock price:
High	$	31.61			28.77		34.25		31.99		31.53
Low		23.37			23.02		25.52		26.37		25.00
Period end		30.99			25.12		25.60		31.12		26.99

(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 December 31, 2010, ratios are preliminary.
(6)	See page 39 for additional information.

 - 20 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Dec. 31,					%				Year ended Dec. 31,						%
(in millions, except per share amounts)	2010			2009		Change				2010			2009			Change
Interest income
Trading assets	$	295			230		28		%	$	1,098			918			20		%
Securities available for sale		2,374			2,776		(14	)			9,666			11,319			(15	)
Mortgages held for sale		495			446		11				1,736			1,930			(10	)
Loans held for sale		15			32		(53	)			101			183			(45	)
Loans		9,666			10,122		(5	)			39,760			41,589			(4	)
Other interest income		124			86		44				435			335			30
Total interest income		12,969			13,692		(5	)			52,796			56,274			(6	)
Interest expense
Deposits		662			913		(27	)			2,832			3,774			(25	)
Short-term borrowings		26			12		117				92			222			(59	)
Long-term debt		1,153			1,217		(5	)			4,888			5,782			(15	)
Other interest expense		65			50		30				227			172			32
Total interest expense		1,906			2,192		(13	)			8,039			9,950			(19	)
Net interest income		11,063			11,500		(4	)			44,757			46,324			(3	)
Provision for credit losses		2,989			5,913		(49	)			15,753			21,668			(27	)
Net interest income after provision for credit losses		8,074			5,587		45				29,004			24,656			18
Noninterest income
Service charges on deposit accounts		1,035			1,421		(27	)			4,916			5,741			(14	)
Trust and investment fees		2,958			2,605		14				10,934			9,735			12
Card fees		941			961		(2	)			3,652			3,683			(1	)
Other fees		1,063			990		7				3,990			3,804			5
Mortgage banking		2,757			3,411		(19	)			9,737			12,028			(19	)
Insurance		564			482		17				2,126			2,126			-
Net gains from trading activities		532			516		3				1,648			2,674			(38	)
Net gains (losses) on debt securities available for sale		(268	)		110	NM					(324	)		(127	)		155
Net gains from equity investments		317			273		16				779			185			321
Operating leases		79			163		(52	)			815			685			19
Other		453			264		72				2,180			1,828			19
Total noninterest income		10,431			11,196		(7	)			40,453			42,362			(5	)
Noninterest expense
Salaries		3,513			3,505		-				13,869			13,757			1
Commission and incentive compensation		2,195			2,086		5				8,692			8,021			8
Employee benefits		1,192			1,144		4				4,651			4,689			(1	)
Equipment		813			681		19				2,636			2,506			5
Net occupancy		750			770		(3	)			3,030			3,127			(3	)
Core deposit and other intangibles		549			642		(14	)			2,199			2,577			(15	)
FDIC and other deposit assessments		301			302		-				1,197			1,849			(35	)
Other		4,027			3,691		9				14,182			12,494			14
Total noninterest expense		13,340			12,821		4				50,456			49,020			3
Income before income tax expense		5,165			3,962		30				19,001			17,998			6
Income tax expense		1,672			949		76				6,338			5,331			19
Net income before noncontrolling interests		3,493			3,013		16				12,663			12,667			-
Less: Net income from noncontrolling interests		79			190		(58	)			301			392			(23	)
Wells Fargo net income	$	3,414			2,823		21			$	12,362			12,275			1
Wells Fargo net income applicable to common stock	$	3,232			394		720			$	11,632			7,990			46
Per share information
Earnings per common share	$	0.62			0.08		675			$	2.23			1.76			27
Diluted earnings per common share		0.61			0.08		663				2.21			1.75			26
Dividends declared per common share		0.05			0.05		-				0.20			0.49			(59	)
Average common shares outstanding		5,256.2			4,764.8		10				5,226.8			4,545.2			15
Diluted average common shares outstanding		5,293.8			4,796.1		10				5,263.1			4,562.7			15

NM - Not meaningful

 - 21 -

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

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,		Mar. 31,		Dec. 31,
(in millions, except per share amounts)	2010			2010			2010		2010		2009
Interest income
Trading assets	$	295			270			266		267		230
Securities available for sale		2,374			2,492			2,385		2,415		2,776
Mortgages held for sale		495			449			405		387		446
Loans held for sale		15			22			30		34		32
Loans		9,666			9,779			10,277		10,038		10,122
Other interest income		124			118			109		84		86
Total interest income		12,969			13,130			13,472		13,225		13,692
Interest expense
Deposits		662			721			714		735		913
Short-term borrowings		26			27			21		18		12
Long-term debt		1,153			1,226			1,233		1,276		1,217
Other interest expense		65			58			55		49		50
Total interest expense		1,906			2,032			2,023		2,078		2,192
Net interest income		11,063			11,098			11,449		11,147		11,500
Provision for credit losses		2,989			3,445			3,989		5,330		5,913
Net interest income after provision for credit losses		8,074			7,653			7,460		5,817		5,587
Noninterest income
Service charges on deposit accounts		1,035			1,132			1,417		1,332		1,421
Trust and investment fees		2,958			2,564			2,743		2,669		2,605
Card fees		941			935			911		865		961
Other fees		1,063			1,004			982		941		990
Mortgage banking		2,757			2,499			2,011		2,470		3,411
Insurance		564			397			544		621		482
Net gains from trading activities		532			470			109		537		516
Net gains (losses) on debt securities available for sale		(268	)		(114	)		30		28		110
Net gains from equity investments		317			131			288		43		273
Operating leases		79			222			329		185		163
Other		453			536			581		610		264
Total noninterest income		10,431			9,776			9,945		10,301		11,196
Noninterest expense
Salaries		3,513			3,478			3,564		3,314		3,505
Commission and incentive compensation		2,195			2,280			2,225		1,992		2,086
Employee benefits		1,192			1,074			1,063		1,322		1,144
Equipment		813			557			588		678		681
Net occupancy		750			742			742		796		770
Core deposit and other intangibles		549			548			553		549		642
FDIC and other deposit assessments		301			300			295		301		302
Other		4,027			3,274			3,716		3,165		3,691
Total noninterest expense		13,340			12,253			12,746		12,117		12,821
Income before income tax expense		5,165			5,176			4,659		4,001		3,962
Income tax expense		1,672			1,751			1,514		1,401		949
Net income before noncontrolling interests		3,493			3,425			3,145		2,600		3,013
Less: Net income from noncontrolling interests		79			86			83		53		190
Wells Fargo net income	$	3,414			3,339			3,062		2,547		2,823
Wells Fargo net income applicable to common stock	$	3,232			3,150			2,878		2,372		394
Per share information
Earnings per common share	$	0.62			0.60			0.55		0.46		0.08
Diluted earnings per common share		0.61			0.60			0.55		0.45		0.08
Dividends declared per common share		0.05			0.05			0.05		0.05		0.05
Average common shares outstanding		5,256.2			5,240.1			5,219.7		5,190.4		4,764.8
Diluted average common shares outstanding		5,293.8			5,273.2			5,260.8		5,225.2		4,796.1

 - 22 -

Wells Fargo & Company and Subsidiaries

AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Quarter ended December 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	$	72,029			0.40	%	$	74		46,031			0.33	%	$	39
Trading assets		33,871			3.56			302		23,179			4.05			235
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,670			2.80			12		2,381			3.54			21
Securities of U.S. states and political subdivisions		18,398			5.58			255		13,574			6.48			217
Mortgage-backed securities:
Federal agencies		80,459			4.48			859		85,063			5.43			1,099
Residential and commercial		33,365			10.95			850		43,243			9.20			1,000
Total mortgage-backed securities		113,824			6.35			1,709		128,306			6.74			2,099
Other debt securities (4)		37,793			6.15			545		33,710			7.60			600
Total debt securities available for sale (4)		171,685			6.18			2,521		177,971			6.84			2,937
Mortgages held for sale (5)		45,063			4.39			495		34,750			5.13			446
Loans held for sale (5)		1,140			5.15			15		5,104			2.48			32
Loans:
Commercial:
Commercial and industrial		147,866			4.71			1,755		164,050			4.65			1,918
Real estate mortgage		99,188			3.85			961		97,296			3.49			855
Real estate construction		26,882			3.68			250		38,364			2.98			289
Lease financing		13,033			9.00			293		14,107			10.20			360
Foreign		30,986			3.57			279		30,086			3.74			283
Total commercial		317,955			4.42			3,538		343,903			4.28			3,705
Consumer:
Real estate 1-4 family first mortgage		228,802			5.06			2,901		232,273			5.26			3,066
Real estate 1-4 family junior lien mortgage		97,673			4.37			1,075		103,584			4.58			1,195
Credit card		21,888			13.44			736		23,717			12.18			723
Other revolving credit and installment		87,357			6.48			1,427		88,963			6.46			1,450
Total consumer		435,720			5.61			6,139		448,537			5.71			6,434
Total loans (5)		753,675			5.11			9,677		792,440			5.09			10,139
Other		5,338			3.93			51		6,147			3.13			49
Total earning assets	$	1,082,801			4.87	%	$	13,135		1,085,622			5.12	%	$	13,877
Funding sources
Deposits:
Interest-bearing checking	$	60,879			0.09	%	$	15		61,229			0.15	%	$	23
Market rate and other savings		431,171			0.25			266		389,905			0.31			303
Savings certificates		79,146			1.43			285		109,306			1.66			458
Other time deposits		13,438			2.00			67		16,501			2.28			94
Deposits in foreign offices		55,463			0.21			29		59,870			0.23			35
Total interest-bearing deposits		640,097			0.41			662		636,811			0.57			913
Short-term borrowings		50,609			0.24			31		32,757			0.18			14
Long-term debt		160,801			2.86			1,153		210,707			2.31			1,218
Other liabilities		8,258			3.13			65		5,587			3.49			50
Total interest-bearing liabilities		859,765			0.89			1,911		885,862			0.99			2,195
Portion of noninterest-bearing funding sources		223,036			-			-		199,760			-			-
Total funding sources	$	1,082,801			0.71			1,911		1,085,622			0.81			2,195
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.16	%	$	11,224					4.31	%	$	11,682
Noninterest-earning assets
Cash and due from banks	$	18,016								19,216
Goodwill		24,832								24,093
Other		111,388								110,525
Total noninterest-earning assets	$	154,236								153,834
Noninterest-bearing funding sources
Deposits	$	197,943								179,204
Other liabilities		52,930								45,058
Total equity		126,399								129,332
Noninterest-bearing funding sources used to fund earning assets		(223,036	)							(199,760	)
Net noninterest-bearing funding sources	$	154,236								153,834
Total assets	$	1,237,037								1,239,456

(1)	Our average prime rate was 3.25% for the quarters ended December 31, 2010 and 2009. The average three-month London Interbank Offered Rate (LIBOR) was 0.29% and 0.27% 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 and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affected earning assets. Thus 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
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Year ended December 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	$	62,961			0.36	%	$	230		26,869			0.56	%	$	150
Trading assets		29,920			3.75			1,121		21,092			4.48			944
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,926			3.24			61		2,480			2.83			69
Securities of U.S. states and political subdivisions		16,392			6.09			980		12,702			6.42			840
Mortgage-backed securities:
Federal agencies		75,875			5.14			3,697		87,197			5.45			4,591
Residential and commercial		33,191			10.67			3,396		41,618			9.09			4,150
Total mortgage-backed securities		109,066			6.84			7,093		128,815			6.73			8,741
Other debt securities (4)		34,752			6.45			2,102		32,011			7.16			2,291
Total debt securities available for sale (4)		162,136			6.63			10,236		176,008			6.73			11,941
Mortgages held for sale (5)		36,716			4.73			1,736		37,416			5.16			1,930
Loans held for sale (5)		3,773			2.67			101		6,293			2.90			183
Loans:
Commercial:
Commercial and industrial		149,576			4.80			7,186		180,924			4.22			7,643
Real estate mortgage		98,497			3.89			3,836		96,273			3.50			3,365
Real estate construction		31,286			3.36			1,051		40,885			2.91			1,190
Lease financing		13,451			9.21			1,239		14,751			9.32			1,375
Foreign		29,726			3.49			1,037		30,661			3.95			1,212
Total commercial		322,536			4.45			14,349		363,494			4.07			14,785
Consumer:
Real estate 1-4 family first mortgage		235,568			5.18			12,206		238,359			5.45			12,992
Real estate 1-4 family junior lien mortgage		101,537			4.45			4,519		106,957			4.76			5,089
Credit card		22,375			13.35			2,987		23,357			12.16			2,841
Other revolving credit and installment		88,585			6.49			5,747		90,666			6.56			5,952
Total consumer		448,065			5.68			25,459		459,339			5.85			26,874
Total loans (5)		770,601			5.17			39,808		822,833			5.06			41,659
Other		5,849			3.56			207		6,113			3.05			186
Total earning assets	$	1,071,956			5.02	%	$	53,439		1,096,624			5.19	%	$	56,993
Funding sources
Deposits:
Interest-bearing checking	$	60,941			0.12	%	$	72		70,179			0.14	%	$	100
Market rate and other savings		416,877			0.26			1,088		351,892			0.39			1,375
Savings certificates		87,133			1.43			1,247		140,197			1.24			1,738
Other time deposits		14,654			2.07			302		20,459			2.03			415
Deposits in foreign offices		55,097			0.22			123		53,166			0.27			146
Total interest-bearing deposits		634,702			0.45			2,832		635,893			0.59			3,774
Short-term borrowings		46,824			0.22			106		51,972			0.44			231
Long-term debt		185,426			2.64			4,888		231,801			2.50			5,786
Other liabilities		6,863			3.31			227		4,904			3.50			172
Total interest-bearing liabilities		873,815			0.92			8,053		924,570			1.08			9,963
Portion of noninterest-bearing funding sources		198,141			-			-		172,054			-			-
Total funding sources	$	1,071,956			0.76			8,053		1,096,624			0.91			9,963
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.26	%	$	45,386					4.28	%	$	47,030
Noninterest-earning assets
Cash and due from banks	$	17,618								19,218
Goodwill		24,824								23,997
Other		112,540								122,515
Total noninterest-earning assets	$	154,982								165,730
Noninterest-bearing funding sources
Deposits	$	183,008								171,712
Other liabilities		47,877								48,193
Total equity		122,238								117,879
Noninterest-bearing funding sources used to fund earning assets		(198,141	)							(172,054	)
Net noninterest-bearing funding sources	$	154,982								165,730
Total assets	$	1,226,938								1,262,354

(1)	Our average prime rate was 3.25% for the years ended December 31, 2010 and 2009. The average three-month London Interbank Offered Rate (LIBOR) was 0.34% and 0.69% for the same periods, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affected earning assets. Thus 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.

 - 24 -

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME

	Quarter ended Dec. 31,					%			Year ended Dec. 31,						%
(in millions)	2010			2009		Change			2010			2009			Change
Service charges on deposit accounts	$	1,035			1,421		(27	) %	$	4,916			5,741			(14	)	%
Trust and investment fees:
Trust, investment and IRA fees		1,030			1,038		(1	)		4,038			3,588			13
Commissions and all other fees		1,928			1,567		23			6,896			6,147			12
Total trust and investment fees		2,958			2,605		14			10,934			9,735			12
Card fees		941			961		(2	)		3,652			3,683			(1	)
Other fees:
Cash network fees		74			55		35			260			231			13
Charges and fees on loans		446			475		(6	)		1,690			1,801			(6	)
Processing and all other fees		543			460		18			2,040			1,772			15
Total other fees		1,063			990		7			3,990			3,804			5
Mortgage banking (1):
Servicing income, net		240			2,150		(89	)		3,340			5,791			(42	)
Net gains on mortgage loan origination/sales activities		2,517			1,261		100			6,397			6,237			3
Total mortgage banking		2,757			3,411		(19	)		9,737			12,028			(19	)
Insurance		564			482		17			2,126			2,126			-
Net gains from trading activities		532			516		3			1,648			2,674			(38	)
Net gains (losses) on debt securities available for sale		(268	)		110	NM				(324	)		(127	)		155
Net gains from equity investments		317			273		16			779			185			321
Operating leases		79			163		(52	)		815			685			19
All other		453			264		72			2,180			1,828			19
Total	$	10,431			11,196		(7	)	$	40,453			42,362			(5	)
NM - Not meaningful
(1)  2009 categories have been revised to conform to current presentation.
NONINTEREST EXPENSE
	Quarter ended Dec. 31,					%			Year ended Dec. 31,						%
(in millions)	2010			2009		Change			2010			2009			Change
Salaries	$	3,513			3,505		-	%	$	13,869			13,757			1		%
Commission and incentive compensation		2,195			2,086		5			8,692			8,021			8
Employee benefits		1,192			1,144		4			4,651			4,689			(1	)
Equipment		813			681		19			2,636			2,506			5
Net occupancy		750			770		(3	)		3,030			3,127			(3	)
Core deposit and other intangibles		549			642		(14	)		2,199			2,577			(15	)
FDIC and other deposit assessments		301			302		-			1,197			1,849			(35	)
Outside professional services		781			632		24			2,370			1,982			20
Contract services		481			362		33			1,642			1,088			51
Foreclosed assets		452			393		15			1,537			1,071			44
Operating losses		193			427		(55	)		1,258			875			44
Outside data processing		235			282		(17	)		1,046			1,027			2
Postage, stationery and supplies		239			232		3			944			933			1
Travel and entertainment		221			188		18			783			575			36
Advertising and promotion		192			176		9			630			572			10
Telecommunications		151			146		3			596			610			(2	)
Insurance		90			111		(19	)		464			845			(45	)
Operating leases		24			44		(45	)		109			227			(52	)
All other		968			698		39			2,803			2,689			4
Total	$	13,340			12,821		4		$	50,456			49,020			3

- 25 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,		Mar. 31,		Dec. 31,
(in millions)	2010			2010			2010		2010		2009
Service charges on deposit accounts	$	1,035			1,132			1,417		1,332		1,421
Trust and investment fees:
Trust, investment and IRA fees		1,030			924			1,035		1,049		1,038
Commissions and all other fees		1,928			1,640			1,708		1,620		1,567
Total trust and investment fees		2,958			2,564			2,743		2,669		2,605
Card fees		941			935			911		865		961
Other fees:
Cash network fees		74			73			58		55		55
Charges and fees on loans		446			424			401		419		475
Processing and all other fees		543			507			523		467		460
Total other fees		1,063			1,004			982		941		990
Mortgage banking (1):
Servicing income, net		240			516			1,218		1,366		2,150
Net gains on mortgage loan origination/sales activities		2,517			1,983			793		1,104		1,261
Total mortgage banking		2,757			2,499			2,011		2,470		3,411
Insurance		564			397			544		621		482
Net gains from trading activities		532			470			109		537		516
Net gains (losses) on debt securities available for sale		(268	)		(114	)		30		28		110
Net gains from equity investments		317			131			288		43		273
Operating leases		79			222			329		185		163
All other		453			536			581		610		264
Total	$	10,431			9,776			9,945		10,301		11,196
(1)  2009 categories have been revised to conform to current presentation.
FIVE QUARTER NONINTEREST EXPENSE
	Quarter ended
	Dec. 31,			Sept. 30,			June 30,		Mar. 31,		Dec. 31,
(in millions)	2010			2010			2010		2010		2009
Salaries	$	3,513			3,478			3,564		3,314		3,505
Commission and incentive compensation		2,195			2,280			2,225		1,992		2,086
Employee benefits		1,192			1,074			1,063		1,322		1,144
Equipment		813			557			588		678		681
Net occupancy		750			742			742		796		770
Core deposit and other intangibles		549			548			553		549		642
FDIC and other deposit assessments		301			300			295		301		302
Outside professional services		781			533			572		484		632
Contract services		481			430			384		347		362
Foreclosed assets		452			366			333		386		393
Operating losses		193			230			627		208		427
Outside data processing		235			263			276		272		282
Postage, stationery and supplies		239			233			230		242		232
Travel and entertainment		221			195			196		171		188
Advertising and promotion		192			170			156		112		176
Telecommunications		151			146			156		143		146
Insurance		90			62			164		148		111
Operating leases		24			21			27		37		44
All other		968			625			595		615		698
Total	$	13,340			12,253			12,746		12,117		12,821

- 26 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

	December 31,
(in millions, except shares)	2010			2009			% Change
Assets
Cash and due from banks	$	16,044			27,080			(41	)	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		80,637			40,885			97
Trading assets		51,414			43,039			19
Securities available for sale		172,654			172,710			-
Mortgages held for sale (includes $47,531 and $36,962 carried at fair value)		51,763			39,094			32
Loans held for sale (includes $873 and $149 carried at fair value)		1,290			5,733			(77	)
Loans (includes $309 carried at fair value at December 31, 2010)		757,267			782,770			(3	)
Allowance for loan losses		(23,022	)		(24,516	)		(6	)
Net loans		734,245			758,254			(3	)
Mortgage servicing rights:
Measured at fair value		14,467			16,004			(10	)
Amortized		1,419			1,119			27
Premises and equipment, net		9,644			10,736			(10	)
Goodwill		24,770			24,812			-
Other assets		99,781			104,180			(4	)
Total assets	$	1,258,128			1,243,646			1
Liabilities
Noninterest-bearing deposits	$	191,256			181,356			5
Interest-bearing deposits		656,686			642,662			2
Total deposits		847,942			824,018			3
Short-term borrowings		55,401			38,966			42
Accrued expenses and other liabilities		69,913			62,442			12
Long-term debt (includes $306 carried at fair value at December 31, 2010)		156,983			203,861			(23	)
Total liabilities		1,130,239			1,129,287			-
Equity
Wells Fargo stockholders’ equity:
Preferred stock		8,689			8,485			2
Common stock - - $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,272,414,622 and 5,245,971,422 shares		8,787			8,743			1
Additional paid-in capital		53,426			52,878			1
Retained earnings		51,918			41,563			25
Cumulative other comprehensive income		4,738			3,009			57
Treasury stock - 10,131,394 shares and 67,346,829 shares		(487	)		(2,450	)		(80	)
Unearned ESOP shares		(663	)		(442	)		50
Total Wells Fargo stockholders’ equity		126,408			111,786			13
Noncontrolling interests		1,481			2,573			(42	)
Total equity		127,889			114,359			12
Total liabilities and equity	$	1,258,128			1,243,646			1

- 27 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2010			2010			2010			2010			2009
Assets
Cash and due from banks	$	16,044			16,001			17,571			16,301			27,080
Federal funds sold, securities purchased under resale agreements and other short-term investments		80,637			56,549			73,898			54,192			40,885
Trading assets		51,414			49,271			47,132			47,028			43,039
Securities available for sale		172,654			176,875			157,927			162,487			172,710
Mortgages held for sale		51,763			46,001			38,581			34,737			39,094
Loans held for sale		1,290			1,188			3,999			5,140			5,733
Loans		757,267			753,664			766,265			781,430			782,770
Allowance for loan losses		(23,022	)		(23,939	)		(24,584	)		(25,123	)		(24,516	)
Net loans		734,245			729,725			741,681			756,307			758,254
Mortgage servicing rights:
Measured at fair value		14,467			12,486			13,251			15,544			16,004
Amortized		1,419			1,013			1,037			1,069			1,119
Premises and equipment, net		9,644			9,636			10,508			10,405			10,736
Goodwill		24,770			24,831			24,820			24,819			24,812
Other assets		99,781			97,208			95,457			95,601			104,180
Total assets	$	1,258,128			1,220,784			1,225,862			1,223,630			1,243,646
Liabilities
Noninterest-bearing deposits	$	191,256			184,451			175,015			170,518			181,356
Interest-bearing deposits		656,686			630,061			640,608			634,375			642,662
Total deposits		847,942			814,512			815,623			804,893			824,018
Short-term borrowings		55,401			50,715			45,187			46,333			38,966
Accrued expenses and other liabilities		69,913			67,249			58,582			54,371			62,442
Long-term debt		156,983			163,143			185,072			199,879			203,861
Total liabilities		1,130,239			1,095,619			1,104,464			1,105,476			1,129,287
Equity
Wells Fargo stockholders’ equity:
Preferred stock		8,689			8,840			8,980			9,276			8,485
Common stock		8,787			8,756			8,743			8,743			8,743
Additional paid-in capital		53,426			52,899			52,687			53,156			52,878
Retained earnings		51,918			48,953			46,126			43,636			41,563
Cumulative other comprehensive income		4,738			5,502			4,844			4,087			3,009
Treasury stock		(487	)		(466	)		(631	)		(1,460	)		(2,450	)
Unearned ESOP shares		(663	)		(826	)		(977	)		(1,296	)		(442	)
Total Wells Fargo stockholders’ equity		126,408			123,658			119,772			116,142			111,786
Noncontrolling interests		1,481			1,507			1,626			2,012			2,573
Total equity		127,889			125,165			121,398			118,154			114,359
Total liabilities and equity	$	1,258,128			1,220,784			1,225,862			1,223,630			1,243,646

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2010			2010			2010			2010			2009
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	72,029			70,839			67,712			40,833			46,031
Trading assets		33,871			29,080			28,760			27,911			23,179
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,670			1,673			2,094			2,278			2,381
Securities of U.S. states and political subdivisions		18,398			17,220			16,192			13,696			13,574
Mortgage-backed securities:
Federal agencies		80,459			70,486			72,876			79,730			85,063
Residential and commercial		33,365			33,425			33,197			32,768			43,243
Total mortgage-backed securities		113,824			103,911			106,073			112,498			128,306
Other debt securities (1)		37,793			35,533			33,270			32,346			33,710
Total debt securities available for sale (1)		171,685			158,337			157,629			160,818			177,971
Mortgages held for sale (2)		45,063			38,073			32,196			31,368			34,750
Loans held for sale (2)		1,140			3,223			4,386			6,406			5,104
Loans:
Commercial:
Commercial and industrial		147,866			146,139			147,965			156,466			164,050
Real estate mortgage		99,188			99,082			97,731			97,967			97,296
Real estate construction		26,882			29,469			33,060			35,852			38,364
Lease financing		13,033			13,156			13,622			14,008			14,107
Foreign		30,986			30,276			29,048			28,561			30,086
Total commercial		317,955			318,122			321,426			332,854			343,903
Consumer:
Real estate 1-4 family first mortgage		228,802			231,172			237,500			245,024			232,273
Real estate 1-4 family junior lien mortgage		97,673			100,257			102,678			105,640			103,584
Credit card		21,888			22,048			22,239			23,345			23,717
Other revolving credit and installment		87,357			87,884			88,617			90,526			88,963
Total consumer		435,720			441,361			451,034			464,535			448,537
Total loans (2)		753,675			759,483			772,460			797,389			792,440
Other		5,338			5,912			6,082			6,069			6,147
Total earning assets	$	1,082,801			1,064,947			1,069,225			1,070,794			1,085,622
Funding sources
Deposits:
Interest-bearing checking	$	60,879			59,677			61,212			62,021			61,229
Market rate and other savings		431,171			419,996			412,062			403,945			389,905
Savings certificates		79,146			85,044			89,773			94,763			109,306
Other time deposits		13,438			14,400			14,936			15,878			16,501
Deposits in foreign offices		55,463			52,061			57,461			55,434			59,870
Total interest-bearing deposits		640,097			631,178			635,444			632,041			636,811
Short-term borrowings		50,609			46,468			45,082			45,081			32,757
Long-term debt		160,801			177,077			195,440			209,008			210,707
Other liabilities		8,258			6,764			6,737			5,664			5,587
Total interest-bearing liabilities		859,765			861,487			882,703			891,794			885,862
Portion of noninterest-bearing funding sources		223,036			203,460			186,522			179,000			199,760
Total funding sources	$	1,082,801			1,064,947			1,069,225			1,070,794			1,085,622
Noninterest-earning assets
Cash and due from banks	$	18,016			17,000			17,415			18,049			19,216
Goodwill		24,832			24,829			24,820			24,816			24,093
Other		111,388			113,592			112,720			112,461			110,525
Total noninterest-earning assets	$	154,236			155,421			154,955			155,326			153,834
Noninterest-bearing funding sources
Deposits	$	197,943			184,837			176,908			172,039			179,204
Other liabilities		52,930			50,013			43,713			44,739			45,058
Total equity		126,399			124,031			120,856			117,548			129,332
Noninterest-bearing funding sources used to fund earning assets		(223,036	)		(203,460	)		(186,522	)		(179,000	)		(199,760	)
Net noninterest-bearing funding sources	$	154,236			155,421			154,955			155,326			153,834
Total assets	$	1,237,037			1,220,368			1,224,180			1,226,120			1,239,456

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

- 29 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER LOANS

	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)	2010		2010		2010		2010		2009
Commercial:
Commercial and industrial	$	151,284		147,321		146,084		150,587		158,352
Real estate mortgage (1)		99,435		98,755		99,626		97,846		97,527
Real estate construction (1)		25,333		27,911		30,879		34,505		36,978
Lease financing		13,094		12,993		13,492		13,887		14,210
Foreign		32,912		29,691		30,474		28,289		29,398
Total commercial		322,058		316,671		320,555		325,114		336,465
Consumer:
Real estate 1-4 family first mortgage		230,235		228,081		233,812		240,528		229,536
Real estate 1-4 family junior lien mortgage		96,149		99,060		101,327		103,800		103,708
Credit card		22,260		21,890		22,086		22,525		24,003
Other revolving credit and installment		86,565		87,962		88,485		89,463		89,058
Total consumer		435,209		436,993		445,710		456,316		446,305
Total loans (net of unearned income) (2)	$	757,267		753,664		766,265		781,430		782,770

(1)	Effective June 30, 2010, real estate construction outstanding balances and all other related data include certain commercial real estate secured loans acquired from Wachovia previously classified as real estate mortgage. Prior periods have been revised to conform with the current presentation.
(2)	Includes $41.4 billion, $43.8 billion, $46.5 billion, $49.5 billion and $51.7 billion of purchased credit-impaired (PCI) loans at December 31, September 30, June 30, and March 31, 2010, and December 31, 2009, respectively. See table on page 31 for detail of PCI loans.

FIVE QUARTER NONACCRUAL LOANS AND OTHER NONPERFORMING ASSETS

	Dec. 31,			Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)	2010			2010		2010		2010		2009
Nonaccrual loans:
Commercial:
Commercial and industrial	$	3,213			4,103		3,843		4,273		4,397
Real estate mortgage		5,227			5,079		4,689		4,345		3,696
Real estate construction		2,676			3,198		3,429		3,327		3,313
Lease financing		108			138		163		185		171
Foreign		127			126		115		135		146
Total commercial		11,351			12,644		12,239		12,265		11,723
Consumer:
Real estate 1-4 family first mortgage		12,289			12,969		12,865		12,347		10,100
Real estate 1-4 family junior lien mortgage		2,302			2,380		2,391		2,355		2,263
Other revolving credit and installment		300			312		316		334		332
Total consumer		14,891			15,661		15,572		15,036		12,695
Total nonaccrual loans (1)(2)		26,242			28,305		27,811		27,301		24,418
As a percentage of total loans		3.47	%		3.76		3.63		3.49		3.12
Foreclosed assets:
GNMA (3)	$	1,479			1,492		1,344		1,111		960
Other		4,530			4,635		3,650		2,970		2,199
Real estate and other nonaccrual investments (4)		120			141		131		118		62
Total nonaccrual loans and other nonperforming assets	$	32,371			34,573		32,936		31,500		27,639
As a percentage of total loans		4.27	%		4.59		4.30		4.03		3.53

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

- 30 -

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING (EXCLUDING INSURED/GUARANTEED
GNMA AND SIMILAR LOANS) (1)

	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)	2010		2010		2010		2010		2009
Commercial:
Commercial and industrial	$	308		222		540		561		590
Real estate mortgage		104		463		654		947		1,014
Real estate construction		193		332		471		787		909
Foreign		22		27		21		29		73
Total commercial		627		1,044		1,686		2,324		2,586
Consumer:
Real estate 1-4 family first mortgage (2)		941		1,016		1,049		1,281		1,623
Real estate 1-4 family junior lien mortgage (2)		366		361		352		414		515
Credit card		516		560		610		719		795
Other revolving credit and installment		1,305		1,305		1,300		1,219		1,333
Total consumer		3,128		3,242		3,311		3,633		4,266
Total	$	3,755		4,286		4,997		5,957		6,852

(1)

The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $11.6 billion, $13.0 billion, $15.1 billion, $16.8 billion, and $16.1 billion at December 31, September 30, June 30 and March 31, 2010, and December 31, 2009, respectively. These amounts are excluded from the above table as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status. See table on page 31 for detail of PCI loans.

(2)

Includes mortgage loans held for sale 90 days or more past due and still accruing.

 - 31 -

Wells Fargo & Company and Subsidiaries

PURCHASED CREDIT-IMPAIRED (PCI) LOANS

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.

Under the accounting guidance for PCI loans, the excess of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan, or pool of loans, in situations where there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference.

Subsequent to acquisition, we regularly evaluate our estimates of cash flows expected to be collected. These evaluations, performed quarterly, require the continued usage of key assumptions and estimates, similar to the initial estimate of fair value. If we have probable decreases in the expected cash flows (other than due to a decrease in rate indices), we charge the provision for credit losses, resulting in an increase to the allowance for loan losses. If we have probable and significant increases in the expected cash flows subsequent to establishing an additional allowance, we first reverse any previously established allowance and then increase interest income over the remaining life of the loan, or pool of loans.

As a result of PCI loan accounting, certain credit-related ratios 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.

	December 31,
(in millions)	2010		2009		2008
Commercial:
Commercial and industrial	$	718		1,911		4,580
Real estate mortgage		2,855		4,137		5,803
Real estate construction		2,949		5,207		6,462
Foreign		1,413		1,733		1,859
Total commercial		7,935		12,988		18,704
Consumer:
Real estate 1-4 family first mortgage		33,245		38,386		39,214
Real estate 1-4 family junior lien mortgage		250		331		728
Other revolving credit and installment		-		-		151
Total consumer		33,495		38,717		40,093
Total loans	$	41,430		51,705		58,797

- 32 -

Wells Fargo & Company and Subsidiaries
CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS

A 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. Substantially all our commercial, CRE and foreign PCI loans are accounted for as individual loans. Conversely, Pick-a-Pay and other consumer PCI loans have been aggregated into several pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Resolutions of loans may include sales of loans to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Our policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference established for the entire pool. This removal method assumes that the amount received from resolution approximates pool performance expectations. The remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by this removal method is addressed by our quarterly cash flow evaluation process for each pool. For loans in pools that are resolved by payment in full, there is no release of the nonaccretable difference since there is no difference between the amount received at resolution and the contractual amount of the loan. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed troubled debt restructurings (TDRs). Modified PCI loans that are accounted for individually are considered TDRs if there has been a concession granted in excess of the original nonaccretable difference. 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 settlement with borrower (1)		(330	)		-			-			(330	)
Loans resolved by sales to third parties (2)		(86	)		-			(85	)		(171	)
Reclassification to accretable yield for loans with improving cash flows (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 settlement with borrower (1)		(817	)		-			-			(817	)
Loans resolved by sales to third parties (2)		(172	)		-			-			(172	)
Reclassification to accretable yield for loans with improving cash flows (3)		(726	)		(2,356	)		(317	)		(3,399	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(1,698	)		(2,959	)		(391	)		(5,048	)
Balance at December 31, 2010	$	1,590			10,925			914			13,429
Balance at September 30, 2010	$	2,074			11,475			980			14,529
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(78	)		-			-			(78	)
Loans resolved by sales to third parties (2)		(21	)		-			-			(21	)
Reclassification to accretable yield for loans with improving cash flows (3)		(165	)		-			-			(165	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(220	)		(550	)		(66	)		(836	)
Balance at December 31, 2010	$	1,590			10,925			914			13,429

(1)	Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations.
(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 over the estimated remaining life of the loan or pool of loans and thus the rate of return realized.
(4)	Write-downs to net realizable value of PCI loans are absorbed by 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.

- 33 -

Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS

The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated lives of the PCI loans using the effective yield method. The accretable yield is affected by:

· Changes in interest rate indices for variable rate PCI loans – Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows;

· Changes in prepayment assumptions – Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and

· Changes in the expected principal and interest payments over the estimated life – Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the quarterly assessment.

The change in the accretable yield related to PCI loans is presented in the following table.

	Quarter
	ended
	Dec. 31,			Year ended Dec. 31,
(in millions)	2010			2010			2009
Total, beginning of period	$	16,679			14,559			10,447
Accretion		(578	)		(2,435	)		(2,606	)
Reclassification from nonaccretable difference for loans with improving cash flows		165			3,399			441
Changes in expected cash flows that do not affect nonaccretable difference (1)		448			1,191			6,277
Total, end of period	$	16,714			16,714			14,559

(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		712			-		59			771
Charge-offs		(776	)		-		(30	)		(806	)
Total, December 31, 2010	$	266			-		32			298
Balance at September 30, 2010	$	362			-		17			379
Provision for losses due to credit deterioration		(3	)		-		24			21
Charge-offs		(93	)		-		(9	)		(102	)
Total, December 31, 2010	$	266			-		32			298

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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 (2)		ratio (3)			value (4)		value			balance		ratio (3)			value (4)
December 31, 2010
California	$	31,075		127	%	$	21,623		88	%	$	21,243		83	%	$	20,866
Florida		4,924		146			2,960		88			4,575		106			4,335
New Jersey		1,544		97			1,242		78			2,608		78			2,578
Texas		377		80			337		72			1,729		64			1,732
Washington		559		102			488		89			1,316		82			1,293
Other states		7,809		113			5,727		83			11,849		86			11,635
Total Pick-a-Pay loans	$	46,288				$	32,377		��		$	43,320				$	42,439
December 31, 2009
California	$	37,341		140	%	$	25,022		94	%	$	23,795		91	%	$	23,626
Florida		5,751		137			3,199		76			5,046		102			4,942
New Jersey		1,646		99			1,269		76			2,914		80			2,912
Texas		442		82			399		74			1,967		66			1,973
Washington		633		101			543		87			1,439		82			1,435
Other states		9,283		114			6,597		81			13,401		85			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)	Unpaid principal balance for PCI loans does not include write-downs taken on loans where 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.
(3)	The current loan-to-value (LTV) ratio is calculated as the unpaid principal balance for the Pick-a-Pay loans 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. Various vendors provide collateral value estimates for the AVM tool and we select the vendors based on the accuracy of their estimates compared to actual realized sales prices for the properties. We continually test the accuracy of these vendor models and based on the results of this analysis, we may switch vendors to improve the accuracy in the estimates. Switching vendors can contribute to changes in the LTV ratios presented on a quarterly basis that are not market driven. The December 31, 2009 table has been revised to remove the unpaid principal balance of any equity lines of credit that share common collateral from the calculation of the LTV ratio to conform to the 2010 presentation.
(4)	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
	December 31,				December 31,					December 31,
(in millions)	2010		2009		2010			2009		2010		2009
Core portfolio (2)
California	$	27,850		30,264		3.30	%		4.12		3.95		6.12
Florida		12,036		12,038		5.46			5.48		5.84		6.98
New Jersey		8,629		8,379		3.44			2.50		1.83		1.51
Virginia		5,667		5,855		2.33			1.91		1.70		1.13
Pennsylvania		5,432		5,051		2.48			2.03		1.11		1.81
Other		50,976		53,811		2.83			2.85		2.86		3.04
Total		110,590		115,398		3.24			3.35		3.24		3.90
Liquidating portfolio
California		2,555		3,205		6.66			8.78		13.48		17.94
Florida		330		408		8.85			9.45		10.59		19.53
Arizona		149		193		6.91			10.46		18.45		19.29
Texas		125		154		2.02			1.94		2.95		2.40
Minnesota		91		108		5.39			4.15		8.73		7.53
Other		3,654		4,361		4.53			5.06		6.46		7.33
Total		6,904		8,429		5.54			6.74		9.49		12.16
Total core and liquidating portfolios	$	117,494		123,827		3.37			3.58		3.61		4.48

(1)	Consists of real estate 1-4 family junior lien mortgages and lines of credit secured by real estate, excluding PCI loans.
(2)	Includes equity lines of credit and closed-end second liens associated with the Pick-a-Pay portfolio totaling $1.7 billion and $1.8 billion at December 31, 2010 and 2009, respectively.

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Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES

	Quarter ended Dec. 31,						Year ended Dec. 31,
(in millions)	2010			2009			2010			2009
Balance, beginning of period	$	24,372			24,528			25,031			21,711
Provision for credit losses		2,989			5,913			15,753			21,668
Adjustment for passage of time on certain impaired loans (1)		(63	)		-			(266	)		-
Loan charge-offs:
Commercial:
Commercial and industrial		(610	)		(1,028	)		(2,775	)		(3,365	)
Real estate mortgage		(270	)		(326	)		(1,151	)		(670	)
Real estate construction		(199	)		(414	)		(1,189	)		(1,063	)
Lease financing		(26	)		(56	)		(120	)		(229	)
Foreign		(50	)		(56	)		(198	)		(237	)
Total commercial		(1,155	)		(1,880	)		(5,433	)		(5,564	)
Consumer:
Real estate 1-4 family first mortgage		(1,199	)		(1,089	)		(4,900	)		(3,318	)
Real estate 1-4 family junior lien mortgage		(1,059	)		(1,384	)		(4,934	)		(4,812	)
Credit card		(505	)		(683	)		(2,396	)		(2,708	)
Other revolving credit and installment		(573	)		(861	)		(2,437	)		(3,423	)
Total consumer		(3,336	)		(4,017	)		(14,667	)		(14,261	)
Total loan charge-offs		(4,491	)		(5,897	)		(20,100	)		(19,825	)
Loan recoveries:
Commercial:
Commercial and industrial		110			101			427			254
Real estate mortgage		36			11			68			33
Real estate construction		28			5			110			16
Lease financing		5			7			20			20
Foreign		22			10			53			40
Total commercial		201			134			678			363
Consumer:
Real estate 1-4 family first mortgage		175			71			522			185
Real estate 1-4 family junior lien mortgage		54			55			211			174
Credit card		53			49			218			180
Other revolving credit and installment		169			175			718			755
Total consumer		451			350			1,669			1,294
Total loan recoveries		652			484			2,347			1,657
Net loan charge-offs (2)		(3,839	)		(5,413	)		(17,753	)		(18,168	)
Allowances related to business combinations/other (3)		4			3			698			(180	)
Balance, end of period	$	23,463			25,031			23,463			25,031
Components:
Allowance for loan losses	$	23,022			24,516			23,022			24,516
Allowance for unfunded credit commitments		441			515			441			515
Allowance for credit losses (4)	$	23,463			25,031			23,463			25,031
Net loan charge-offs (annualized) as a percentage of average total loans (2)		2.02	%		2.71			2.30			2.21
Allowance for loan losses as a percentage of total loans (4)		3.04			3.13			3.04			3.13
Allowance for credit losses as a percentage of total loans (4)		3.10			3.20			3.10			3.20

(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.
(2)	For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.
(3)	Includes $693 million related to the adoption of consolidation accounting guidance on January 1, 2010.
(4)	The allowance for credit losses includes $298 million and $333 million at December 31, 2010 and 2009, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.

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

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2010			2010			2010			2010			2009
Balance, beginning of quarter	$	24,372			25,085			25,656			25,031			24,528
Provision for credit losses		2,989			3,445			3,989			5,330			5,913
Adjustment for passage of time on certain impaired loans (1)		(63	)		(67	)		(62	)		(74	)		-
Loan charge-offs:
Commercial:
Commercial and industrial		(610	)		(588	)		(810	)		(767	)		(1,028	)
Real estate mortgage		(270	)		(236	)		(364	)		(281	)		(326	)
Real estate construction		(199	)		(296	)		(289	)		(405	)		(414	)
Lease financing		(26	)		(29	)		(31	)		(34	)		(56	)
Foreign		(50	)		(49	)		(52	)		(47	)		(56	)
Total commercial		(1,155	)		(1,198	)		(1,546	)		(1,534	)		(1,880	)
Consumer:
Real estate 1-4 family first mortgage		(1,199	)		(1,164	)		(1,140	)		(1,397	)		(1,089	)
Real estate 1-4 family junior lien mortgage		(1,059	)		(1,140	)		(1,239	)		(1,496	)		(1,384	)
Credit card		(505	)		(556	)		(639	)		(696	)		(683	)
Other revolving credit and installment		(573	)		(572	)		(542	)		(750	)		(861	)
Total consumer		(3,336	)		(3,432	)		(3,560	)		(4,339	)		(4,017	)
Total loan charge-offs		(4,491	)		(4,630	)		(5,106	)		(5,873	)		(5,897	)
Loan recoveries:
Commercial:
Commercial and industrial		110			79			121			117			101
Real estate mortgage		36			18			4			10			11
Real estate construction		28			20			51			11			5
Lease financing		5			6			4			5			7
Foreign		22			10			10			11			10
Total commercial		201			133			190			154			134
Consumer:
Real estate 1-4 family first mortgage		175			130			131			86			71
Real estate 1-4 family junior lien mortgage		54			55			55			47			55
Credit card		53			52			60			53			49
Other revolving credit and installment		169			165			181			203			175
Total consumer		451			402			427			389			350
Total loan recoveries		652			535			617			543			484
Net loan charge-offs		(3,839	)		(4,095	)		(4,489	)		(5,330	)		(5,413	)
Allowances related to business combinations/other		4			4			(9	)		699			3
Balance, end of quarter	$	23,463			24,372			25,085			25,656			25,031
Components:
Allowance for loan losses	$	23,022			23,939			24,584			25,123			24,516
Allowance for unfunded credit commitments		441			433			501			533			515
Allowance for credit losses	$	23,463			24,372			25,085			25,656			25,031
Net loan charge-offs (annualized) as a percentage of average total loans		2.02	%		2.14			2.33			2.71			2.71
Allowance for loan losses as a percentage of:
Total loans		3.04			3.18			3.21			3.22			3.13
Nonaccrual loans		88			85			88			92			100
Nonaccrual loans and other nonperforming assets		71			69			75			80			89
Allowance for credit losses as a percentage of:
Total loans		3.10			3.23			3.27			3.28			3.20
Nonaccrual loans		89			86			90			94			103
Nonaccrual loans and other nonperforming assets		72			70			76			81			91

(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.

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Wells Fargo & Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

	Year ended December 31,
(in millions)	2010			2009
Balance, beginning of period (1)	$	114,359			102,316
Cumulative effect from change in accounting for VIEs (2)		183			-
Cumulative effect from change in accounting for embedded credit derivatives (3)		(28	)		-
Wells Fargo net income		12,362			12,275
Wells Fargo other comprehensive income (loss), net of tax, related to:
Translation adjustments		45			73
Investment securities (4)		1,525			9,806
Derivative instruments and hedging activities		89			(221	)
Defined benefit pension plans		70			273
Common stock issued		1,375			21,976
Common stock repurchased		(91	)		(220	)
Preferred stock redeemed		-			(25,000	)
Preferred stock discount accretion		-			2,259
Preferred stock released to ESOP		796			106
Common stock warrants repurchased		(545	)		-
Common stock dividends		(1,045	)		(2,125	)
Preferred stock dividends, accretion and other		(730	)		(4,285	)
Noncontrolling interests and other, net		(476	)		(2,874	)
Balance, end of period	$	127,889			114,359

(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)	Effective July 1, 2010, we adopted changes in accounting for embedded credit derivatives pursuant to ASU 2010-11, which provides guidance clarifying the accounting for embedded credit derivative features in certain financial instruments. We recorded a $28 million decrease to beginning retained earnings as a cumulative effect adjustment.
(4)	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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER TIER 1 COMMON EQUITY(1)

		Quarter ended
		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in billions)		2010			2010			2010			2010			2009
Total equity		$	127.9			125.2			121.4			118.1			114.4
Noncontrolling interests			(1.5	)		(1.5	)		(1.6	)		(2.0	)		(2.6	)
Total Wells Fargo stockholders’ equity			126.4			123.7			119.8			116.1			111.8
Adjustments:
Preferred equity			(8.1	)		(8.1	)		(8.1	)		(8.1	)		(8.1	)
Goodwill and intangible assets (other than MSRs)			(35.5	)		(36.1	)		(36.7	)		(37.2	)		(37.7	)
Applicable deferred taxes			4.3			4.7			5.0			5.2			5.3
Deferred tax asset limitation			-			-			-			-			(1.0	)
MSRs over specified limitations			(0.9	)		(0.9	)		(1.0	)		(1.5	)		(1.6	)
Cumulative other comprehensive income			(4.6	)		(5.4	)		(4.8	)		(4.0	)		(3.0	)
Other			(0.3	)		(0.3	)		(0.3	)		(0.3	)		(0.2	)
Tier 1 common equity	(A)	$	81.3			77.6			73.9			70.2			65.5
Total risk-weighted assets (2)	(B)	$	971.7			968.4			970.8			990.1			1,013.6
Tier 1 common equity to total risk-weighted assets	(A)/(B)		8.37	%		8.01			7.61			7.09			6.46

(1)

Tier 1 common equity is a non-generally accepted accounting principle (GAAP) financial measure that is used by investors, analysts and bank regulatory agencies 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 December 31, 2010, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $814.4 billion and derivative and off-balance sheet risk-weighted assets of $157.3 billion.

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Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS(1)

	Community				Wholesale				Wealth, Brokerage											Consolidated
(income/expense in millions,	Banking				Banking				and Retirement					Other (2)						Company
average balances in billions)	2010		2009		2010		2009		2010		2009			2010			2009			2010		2009
Quarter ended December 31,
Net interest income (3)	$	7,744		8,486		2,972		2,732		676		549			(329	)		(267	)		11,063		11,500
Provision for credit losses		2,785		4,943		195		964		113		93			(104	)		(87	)		2,989		5,913
Noninterest income		5,804		7,025		2,792		2,592		2,365		2,105			(530	)		(526	)		10,431		11,196
Noninterest expense		7,857		7,650		2,990		2,729		2,608		2,558			(115	)		(116	)		13,340		12,821
Income (loss) before income tax expense (benefit)		2,906		2,918		2,579		1,631		320		3			(640	)		(590	)		5,165		3,962
Income tax expense (benefit)		864		593		930		590		121		(10	)		(243	)		(224	)		1,672		949
Net income (loss) before noncontrolling interests		2,042		2,325		1,649		1,041		199		13			(397	)		(366	)		3,493		3,013
Less: Net income from noncontrolling interests		72		149		5		12		2		29			-			-			79		190
Net income (loss) (4)	$	1,970		2,176		1,644		1,029		197		(16	)		(397	)		(366	)		3,414		2,823
Average loans	$	514.1		538.9		229.6		243.4		43.0		44.8			(33.0	)		(34.7	)		753.7		792.4
Average assets		772.4		796.5		383.6		366.8		140.2		137.7			(59.2	)		(61.5	)		1,237.0		1,239.5
Average core deposits		544.4		542.2		185.1		163.0		121.5		124.1			(56.2	)		(58.5	)		794.8		770.8
Year ended December 31,
Net interest income (3)	$	31,864		34,799		11,495		10,218		2,707		2,407			(1,309	)		(1,100	)		44,757		46,324
Provision for credit losses		13,807		17,866		1,920		3,648		334		460			(308	)		(306	)		15,753		21,668
Noninterest income		22,834		25,699		10,721		10,363		9,023		8,358			(2,125	)		(2,058	)		40,453		42,362
Noninterest expense		30,073		29,956		11,267		10,771		9,768		9,426			(652	)		(1,133	)		50,456		49,020
Income (loss) before income tax expense (benefit)		10,818		12,676		9,029		6,162		1,628		879			(2,474	)		(1,719	)		19,001		17,998
Income tax expense (benefit)		3,425		3,449		3,237		2,211		616		324			(940	)		(653	)		6,338		5,331
Net income (loss) before noncontrolling interests		7,393		9,227		5,792		3,951		1,012		555			(1,534	)		(1,066	)		12,663		12,667
Less: Net income from noncontrolling interests		275		339		19		27		7		26			-			-			301		392
Net income (loss) (4)	$	7,118		8,888		5,773		3,924		1,005		529			(1,534	)		(1,066	)		12,362		12,275
Average loans	$	530.1		552.7		230.5		260.2		43.0		45.7			(33.0	)		(35.8	)		770.6		822.8
Average assets		773.0		806.1		373.2		383.2		139.3		127.9			(58.6	)		(54.8	)		1,226.9		1,262.4
Average core deposits		536.4		552.8		170.0		147.3		121.2		114.2			(55.6	)		(51.8	)		772.0		762.5

(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. In fourth quarter 2010, we realigned certain lending businesses into Wholesale Banking from Community Banking to reflect our previously announced restructuring of Wells Fargo Financial. Prior periods have been revised to reflect these changes.
(2)	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.
(3)	Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.
(4)	Represents segment net income (loss) for Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement segments and Wells Fargo net income for the consolidated company.

- 41 -

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

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(income/expense in millions, average balances in billions)	2010			2010			2010			2010			2009
COMMUNITY BANKING
Net interest income (2)	$	7,744			7,811			8,056			8,253			8,486
Provision for credit losses		2,785			3,155			3,348			4,519			4,943
Noninterest income		5,804			5,694			5,598			5,738			7,025
Noninterest expense		7,857			7,333			7,678			7,205			7,650
Income before income tax expense		2,906			3,017			2,628			2,267			2,918
Income tax expense		864			973			801			787			593
Net income before noncontrolling interests		2,042			2,044			1,827			1,480			2,325
Less: Net income from noncontrolling interests		72			73			82			48			149
Segment net income	$	1,970			1,971			1,745			1,432			2,176
Average loans	$	514.1			522.2			534.3			550.4			538.9
Average assets		772.4			770.8			772.1			776.9			796.5
Average core deposits		544.4			537.1			532.6			531.5			542.2
WHOLESALE BANKING
Net interest income (2)	$	2,972			2,934			3,035			2,554			2,732
Provision for credit losses		195			280			635			810			964
Noninterest income		2,792			2,396			2,691			2,842			2,592
Noninterest expense		2,990			2,719			2,873			2,685			2,729
Income before income tax expense		2,579			2,331			2,218			1,901			1,631
Income tax expense		930			844			785			678			590
Net income before noncontrolling interests		1,649			1,487			1,433			1,223			1,041
Less: Net income from noncontrolling interests		5			11			-			3			12
Segment net income	$	1,644			1,476			1,433			1,220			1,029
Average loans	$	229.6			227.3			228.2			237.0			243.4
Average assets		383.6			371.0			368.7			369.4			366.8
Average core deposits		185.1			170.8			162.3			161.6			163.0
WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	676			683			684			664			549
Provision for credit losses		113			77			81			63			93
Noninterest income		2,365			2,229			2,183			2,246			2,105
Noninterest expense		2,608			2,420			2,350			2,390			2,558
Income before income tax expense (benefit)		320			415			436			457			3
Income tax expense (benefit)		121			157			165			173			(10	)
Net income before noncontrolling interests		199			258			271			284			13
Less: Net income from noncontrolling interests		2			2			1			2			29
Segment net income (loss)	$	197			256			270			282			(16	)
Average loans	$	43.0			42.6			42.6			43.8			44.8
Average assets		140.2			138.2			141.0			137.8			137.7
Average core deposits		121.5			120.7			121.5			121.1			124.1
OTHER (3)
Net interest income (2)	$	(329	)		(330	)		(326	)		(324	)		(267	)
Provision for credit losses		(104	)		(67	)		(75	)		(62	)		(87	)
Noninterest income		(530	)		(543	)		(527	)		(525	)		(526	)
Noninterest expense		(115	)		(219	)		(155	)		(163	)		(116	)
Loss before income tax benefit		(640	)		(587	)		(623	)		(624	)		(590	)
Income tax benefit		(243	)		(223	)		(237	)		(237	)		(224	)
Net loss before noncontrolling interests		(397	)		(364	)		(386	)		(387	)		(366	)
Less: Net income from noncontrolling interests		-			-			-			-			-
Other net loss	$	(397	)		(364	)		(386	)		(387	)		(366	)
Average loans	$	(33.0	)		(32.6	)		(32.6	)		(33.8	)		(34.7	)
Average assets		(59.2	)		(59.6	)		(57.6	)		(58.0	)		(61.5	)
Average core deposits		(56.2	)		(56.6	)		(54.6	)		(55.0	)		(58.5	)
CONSOLIDATED COMPANY
Net interest income (2)	$	11,063			11,098			11,449			11,147			11,500
Provision for credit losses		2,989			3,445			3,989			5,330			5,913
Noninterest income		10,431			9,776			9,945			10,301			11,196
Noninterest expense		13,340			12,253			12,746			12,117			12,821
Income before income tax expense		5,165			5,176			4,659			4,001			3,962
Income tax expense		1,672			1,751			1,514			1,401			949
Net income before noncontrolling interests		3,493			3,425			3,145			2,600			3,013
Less: Net income from noncontrolling interests		79			86			83			53			190
Wells Fargo net income	$	3,414			3,339			3,062			2,547			2,823
Average loans	$	753.7			759.5			772.5			797.4			792.4
Average assets		1,237.0			1,220.4			1,224.2			1,226.1			1,239.5
Average core deposits		794.8			772.0			761.8			759.2			770.8

(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. In fourth quarter 2010, we realigned certain lending businesses into Wholesale Banking from Community Banking to reflect our previously announced restructuring of Wells Fargo Financial. Prior periods have been revised to reflect these 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.

- 42 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2010			2010			2010			2010			2009
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	12,486			13,251			15,544			16,004			14,500
Adjustments from adoption of consolidation accounting guidance		-			-			-			(118	)		-
Servicing from securitizations or asset transfers		1,052			1,043			943			1,054			1,181
Net additions		1,052			1,043			943			936			1,181
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		1,613			(1,132	)		(2,661	)		(777	)		1,052
Other changes in fair value (2)		(684	)		(676	)		(575	)		(619	)		(729	)
Total changes in fair value		929			(1,808	)		(3,236	)		(1,396	)		323
Fair value, end of quarter	$	14,467			12,486			13,251			15,544			16,004

(1)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.
(2)	Represents changes due to collection/realization of expected cash flows over time.

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2010			2010			2010			2010			2009
Amortized MSRs:
Balance, beginning of quarter	$	1,013			1,037			1,069			1,119			1,162
Adjustments from adoption of consolidation accounting guidance		-			-			-			(5	)		-
Purchases		36			14			7			1			1
Servicing from securitizations or asset transfers		432			18			17			11			18
Amortization		(59	)		(56	)		(56	)		(57	)		(62	)
Balance, end of quarter		1,422			1,013			1,037			1,069			1,119
Valuation Allowance:
Balance, beginning of quarter		-			-			-			-			-
Provision for MSRs in excess of fair value		3			-			-			-			-
Balance, end of quarter		3			-			-			-			-
Amortized MSRs, net	$	1,419			1,013			1,037			1,069			1,119
Fair value of amortized MSRs:
Beginning of quarter	$	1,349			1,307			1,283			1,261			1,277
End of quarter		1,812			1,349			1,307			1,283			1,261

- 43 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2010			2010			2010			2010			2009
Servicing income, net:
Servicing fees (1)	$	1,129			1,192			1,223			1,053			1,059
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		1,613			(1,132	)		(2,661	)		(777	)		1,052
Other changes in fair value (3)		(684	)		(676	)		(575	)		(619	)		(729	)
Total changes in fair value of MSRs carried at fair value		929			(1,808	)		(3,236	)		(1,396	)		323
Amortization		(59	)		(56	)		(56	)		(57	)		(62	)
Provision for MSRs in excess of fair value		(3	)		-			-			-			-
Net derivative gains (losses) from economic hedges (4)		(1,756	)		1,188			3,287			1,766			830
Total servicing income, net	$	240			516			1,218			1,366			2,150
Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	(143	)		56			626			989			1,882

(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.

	Dec. 31,			Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in billions)	2010			2010		2010		2010		2009
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,429			1,433		1,437		1,417		1,422
Owned loans serviced		371			365		365		371		364
Subservicing		9			10		10		10		10
Total residential servicing		1,809			1,808		1,812		1,798		1,796
Commercial mortgage servicing:
Serviced for others		408			439		441		449		454
Owned loans serviced		99			99		100		105		105
Subservicing		13			10		10		10		10
Total commercial servicing		520			548		551		564		569
Total managed servicing portfolio	$	2,329			2,356		2,363		2,362		2,365
Total serviced for others	$	1,837			1,872		1,878		1,866		1,876
Ratio of MSRs to related loans serviced for others		0.86	%		0.72		0.76		0.89		0.91
Weighted-average note rate (mortgage loans serviced for others)		5.39			5.46		5.53		5.59		5.66

(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.

SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA

	Quarter ended
	Dec. 31,			Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in billions)	2010			2010		2010		2010		2009
Application data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	158			194		143		125		144
Refinances as a percentage of applications		73	%		80		58		61		72
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	73			101		68		59		57
Residential Real Estate Originations:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	70			53		44		43		51
Correspondent/Wholesale		57			47		36		32		42
Other (1)		1			1		1		1		1
Total quarter-to-date	$	128			101		81		76		94
Total year-to-date	$	386			258		157		76		420

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

- 44 -

Wells Fargo & Company and Subsidiaries
CHANGES IN LIABILITY FOR MORTGAGE LOAN REPURCHASE LOSSES

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Year ended December 31,
(in millions)	2010			2010			2010			2010			2010			2009
Balance, beginning of period	$	1,331			1,375			1,263			1,033			1,033			620		(1)
Provision for repurchase losses:
Loan sales		35			29			36			44			144			302
Change in estimate - primarily due to credit deterioration		429			341			346			358			1,474			625
Total additions		464			370			382			402			1,618			927
Losses		(506	)		(414	)		(270	)		(172	)		(1,362	)		(514	)
Balance, end of period	$	1,289			1,331			1,375			1,263			1,289			1,033

(1) Reflects purchase accounting refinements.

OUTSTANDING REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS

While original loan balance related to these demands is presented below, the establishment of the repurchase reserve is based on a combination of factors, such as our appeals success rates, reimbursement by correspondent and other third party originators, and projected loss severity, which is driven by the difference between the current loan balance and the estimated collateral value less costs to sell the property.

	Government				Total		Mortgage
	sponsored				outstanding		insurance
($ in millions)	entities (1)		Private		demands		rescissions (2)		Total
December 31, 2010
Number of loans		6,501		2,899		9,400		3,248		12,648
Original loan balance	$	1,467		680		2,147		801		2,948
September 30, 2010
Number of loans		9,887		3,605		13,492		3,035		16,527
Original loan balance	$	2,212		882		3,094		748		3,842
June 30, 2010
Number of loans		12,536		3,160		15,696		2,979		18,675
Original loan balance	$	2,840		707		3,547		760		4,307
March 31, 2010
Number of loans		10,804		2,320		13,124		2,843		15,967
Original loan balance	$	2,499		519		3,018		737		3,755
December 31, 2009
Number of loans		8,354		2,929		11,283		2,965		14,248
Original loan balance	$	1,911		886		2,797		859		3,656

(1)

Includes repurchase demands of 1,495 and $291 million, 2,263 and $437 million, 2,141 and $417 million, 1,824 and $372 million, and 1,536 and $322 million for December 31, September 30, June 30, and March 31, 2010, and December 31, 2009, respectively, received from investors on mortgage servicing rights acquired from other originators. We have the right of recourse against the seller for these repurchase demands and would only incur a loss on these demands for counterparty risk associated with the seller.

(2)

As part of our representations and warranties in our loan sales contracts, we represent that certain loans have mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer, the lack of insurance may result in a repurchase demand from an investor.