Wells Fargo & Company (WFC) 8-K Wells Fargo Reports Record Quarterly Net Income of $3.9 Billion

Exhibit 99.1

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

Tuesday, July 19, 2011

WELLS FARGO REPORTS RECORD QUARTERLY NET INCOME OF $3.9 BILLION

Increased Revenue and Loans, Lower Expenses from First Quarter

• Strong financial results:

– Record Wells Fargo net income of $3.9 billion, up 29 percent from prior year, up 5 percent from prior quarter

– Record diluted earnings per common share of $0.70, up 27 percent from prior year, up 4 percent from prior quarter

– Pre-tax pre-provision profit (PTPP)¹ of $7.9 billion, up 4 percent from prior quarter

– Return on average assets of 1.27 percent, highest in 3 years

– Revenue of $20.4 billion, up from $20.3 billion in prior quarter

– Noninterest expense down $258 million from prior quarter

– Average checking and savings deposits up 9 percent from prior year; consumer checking accounts up a net 7.0 percent from June 30, 2010

– Total loans of $751.9 billion at June 30, 2011, up $766 million from March 31, 2011; core loan portfolios up $5.8 billion from March 31, 2011²

• Improved capital position:

– Capital ratios increased, with Tier 1 common equity ratio of 9.2 percent under Basel I at June 30, 2011; under current Basel III capital proposals, Tier 1 common equity ratio estimated at 7.4 percent³

– Redeemed $3.4 billion of trust preferred securities

– Re-started open market common stock repurchase program; purchased 35 million shares in second quarter 2011

• Improved credit quality:

– Net loan charge-offs declined to $2.8 billion, down $372 million from prior quarter; down $1.7 billion from prior year

– Nonperforming assets declined to $27.9 billion, down $2.6 billion from prior quarter; down $4.9 billion from prior year

¹ See footnote (2) on page 15 for more information on pre-tax, pre-provision profit.

² See table on page 4 for more information on core and non-strategic/liquidating loan portfolios.

³ See tables on page 36 for more information on Tier 1 common equity.

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– Reserve release¹ of $1.0 billion (pre tax) reflected improved portfolio performance

• Converted Wachovia banking stores in Pennsylvania and Florida; remaining Eastern banking markets scheduled to convert by year end; 83 percent of banking customers company-wide on a single system

Selected Financial Information

	Quarter ended
	June 30,			Mar. 31,		June 30,
	2011			2011		2010
Earnings
Diluted earnings per common share	$	0.70			0.67		0.55
Wells Fargo net income (in billions)		3.95			3.76		3.06
Asset Quality
Net charge-offs as a % of avg. total loans (annualized)		1.52	%		1.73		2.33
Allowance as a % of total loans		2.83			2.98		3.27
Allowance as a % of annualized net charge-offs		187			172		139
Other
Revenue (in billions)	$	20.39			20.33		21.39
Average loans (in billions)		751.3			754.1		772.5
Average core deposits (in billions)		807.5			796.8		761.8
Net interest margin		4.01	%		4.05		4.38

SAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported record net income of $3.9 billion, or $0.70 per diluted common share, for second quarter 2011, up from $3.1 billion, or $0.55 per share, for second quarter 2010 and up from $3.8 billion, or $0.67 per share, for first quarter 2011.

“Our business fundamentals were strong with increased revenues, loans and deposits, lower operating costs, improved credit quality and higher capital levels,” said Chairman and CEO John Stumpf. “While the economic recovery continues to be slower than expected, there are signs that businesses are investing for growth, and we’re here to help them. We’re enjoying strong loyalty and market share growth as we continue to focus on helping our customers emerge from the economic downturn. We’re right on track with our integration, having converted 2,215 Wachovia stores to date, including most recently one of our largest East Coast states, Florida. We continue to be focused on building and managing our diversified company for the long-term benefit of our team members, customers, shareholders and communities and feel we are very well positioned to capture future growth opportunities.”

Revenue
Revenue was $20.4 billion, compared with $20.3 billion in first quarter 2011. Businesses generating double-digit linked-quarter annualized revenue growth included corporate banking, commercial real estate, debit card, insurance, international, merchant services, retirement services and SBA lending. “We are pleased with

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

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the increased revenue in the quarter, reflecting the stability in loan balances and overall strength of our diversified sources of fee income,” said Chief Financial Officer Tim Sloan.

Net Interest Income
Net interest income was $10.7 billion, up $27 million from first quarter 2011. Average earning assets increased $10 billion from first quarter 2011, driven by growth in short-term investments and high-quality shorter-duration available for sale securities. Excluding the planned runoff of non-strategic/liquidating portfolios¹, average loan balances increased from the prior quarter. Continued success in generating low-cost deposits enabled the Company to grow assets while reducing long-term debt, including the redemption of higher-yielding trust preferred securities. Lower cost funding was the primary driver of the increase in net interest income on a linked-quarter basis. Higher short-term investment balances contributed to the slight margin decline from 4.05 percent in first quarter 2011 to 4.01 percent in second quarter.

Noninterest Income
Noninterest income was $9.7 billion, up $30 million from first quarter 2011. On a linked-quarter basis, deposit service charges increased 6 percent due to seasonal increases in customer spending and customer account growth. Card fees were up 5 percent from first quarter 2011 on higher debit and credit card spending volumes and new customer account growth. Insurance fees increased 13 percent linked quarter primarily due to seasonally higher crop insurance sales. Gains on trading assets were down due to softer equity and fixed income market conditions but were more than offset by higher gains from equity investments. “Second quarter performance was notable for the diversity of sources of growth and the resilience of non-mortgage banking fee income, up $427 million from first quarter to our highest level since the merger with Wachovia,” said Sloan.

Mortgage banking noninterest income was $1.6 billion, down $397 million from first quarter 2011 on $64 billion of originations compared with $84 billion of originations in first quarter. Mortgage banking noninterest income in second quarter included a $242 million provision for mortgage loan repurchase losses compared with $249 million in first quarter (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were a $374 million gain compared with a $379 million gain in first quarter 2011. The ratio of MSRs to related loans serviced for others was 87 basis points and the average note rate on the servicing portfolio was 5.26 percent, compared with an average 4.51 percent published rate in the Freddie Mac Primary Mortgage Market Survey at quarter end. The unclosed pipeline at June 30, 2011, was $51 billion compared with $45 billion at March 31, 2011.

The Company had net unrealized securities gains of $9.3 billion at June 30, 2011, up $397 million from first quarter 2011. Period-end securities available for sale balances were up $18.4 billion, reflecting increased investment activity in second quarter.

¹ Non-strategic/liquidating portfolios include Pick-a-Pay, liquidating home equity, legacy Wells Fargo Financial indirect auto and debt consolidation, education finance government loans and other PCI loans.

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Noninterest Expense
Noninterest expense was $12.5 billion, down $258 million from first quarter 2011. Second quarter expenses included $484 million of merger integration costs (up from $440 million in first quarter 2011 on increased integration activity in second quarter), and $428 million of operating losses (down from $472 million in first quarter 2011), substantially all for litigation accruals for mortgage foreclosure-related matters. “Merger costs remained within expectations and we are beginning to see positive results from our expense management initiatives,” said Sloan. “While we are still in the early stages of this effort, we expect meaningful cost savings over time, and are targeting $11 billion of noninterest expense for fourth quarter 2012¹.”

Loans
Total loans were $751.9 billion at June 30, 2011, up $766 million from $751.2 billion at March 31, 2011. Increased balances in many commercial loan portfolios more than offset the continued planned reduction in the non-strategic/liquidating portfolios, which declined $5.1 billion in the quarter compared with a $6.5 billion decline in first quarter 2011. Many portfolios had double-digit linked quarter annualized growth in average loan balances, including asset-backed finance, capital finance, commercial banking, commercial real estate, government banking, insurance, international, and real estate capital markets.

	June 30, 2011							March 31, 2011
(in millions)	Core		Liquidating (1)			Total		Core		Liquidating (1)			Total
Commercial	$	323,673		7,016			330,689		315,715		7,507			323,222
Consumer		306,495		114,737			421,232		308,619		119,314			427,933
Total loans	$	630,168		121,753			751,921		624,334		126,821			751,155
Change from prior quarter:	$	5,834		(5,068	)		766		371		(6,483	)		(6,112	)

(1) See table on page 32 for additional information on non-strategic/liquidating loan portfolios. Management believes that the above information provides useful disclosure regarding the Company’s ongoing loan portfolios.

Deposits
Average core deposits were $807.5 billion, up 6 percent from a year ago and up 5 percent (annualized) from first quarter 2011. Consumer checking accounts grew a net 7.0 percent from June 30, 2010. Average core checking and savings deposits were $735.4 billion, up 9 percent from a year ago and up 7 percent (annualized) from first quarter 2011. Average mortgage escrow deposits were $23.9 billion compared with $25.7 billion a year ago and $27.9 billion in first quarter 2011. Average checking and savings deposits were 91 percent of average core deposits, up from 88 percent a year ago. The average deposit cost for second quarter 2011 was 28 basis points compared with 30 basis points in first quarter 2011. Average core deposits were 107 percent of average loans.

¹ See 2Q11 quarterly supplement for additional information regarding noninterest expense and the Company’s targeted noninterest expense for 4Q12.

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Capital
Capital increased in the second quarter, with Tier 1 common equity reaching 9.2 percent. Under current Basel III proposals, the Tier 1 common equity ratio was an estimated 7.4 percent. The Company redeemed $3.4 billion of trust preferred securities, repurchased 35 million shares of its common stock and paid a quarterly common stock dividend of $0.12 per share.

	June 30,			Mar. 31,		June 30,
(as a percent of total risk-weighted assets)	2011			2011		2010
Ratios under Basel I (1):
Tier 1 common equity (2)		9.2	%		8.9		7.6
Tier 1 capital		11.7			11.5		10.5
Tier 1 leverage		9.4			9.3		8.7

(1)	June 30, 2011, ratios are preliminary.
(2)	See table on page 36 for more information on Tier 1 common equity.

Credit Quality
“Credit quality continued to improve in the second quarter, our sixth consecutive quarter of declining loan losses and the third consecutive quarter of lower nonperforming assets,” said Mike Loughlin, Chief Risk Officer. Second quarter net charge-offs were $2.8 billion, or 1.52 percent (annualized) of average loans, down $372 million from first quarter net charge-offs of $3.2 billion (1.73 percent). The decline in net charge-offs was driven by lower losses in virtually every loan category and delinquency trends continued to show improvement. Reflecting the improved overall portfolio performance, the provision for credit losses was $1.0 billion less than net charge-offs. “Absent significant deterioration in the economy, we expect future reserve releases,” said Loughlin.

Net Loan Charge-Offs

	Quarter ended
	June 30, 2011					March 31, 2011					December 31, 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	$	254		0.66	%	$	354		0.96	%	$	500		1.34	%
Real estate mortgage		128		0.50			152		0.62			234		0.94
Real estate construction		72		1.32			83		1.38			171		2.51
Lease financing		1		0.01			6		0.18			21		0.61
Foreign		47		0.52			28		0.34			28		0.36
Total commercial		502		0.62			623		0.79			954		1.19
Consumer:
Real estate 1-4 family first mortgage		909		1.62			904		1.60			1,024		1.77
Real estate 1-4 family junior lien mortgage		909		3.97			994		4.25			1,005		4.08
Credit card		294		5.63			382		7.21			452		8.21
Other revolving credit and installment		224		1.03			307		1.42			404		1.84
Total consumer		2,336		2.21			2,587		2.42			2,885		2.63
Total	$	2,838		1.52	%	$	3,210		1.73	%	$	3,839		2.02	%

(1) Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 28 of the accounting for purchased credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.

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Nonperforming Assets

Nonperforming assets ended the quarter at $27.9 billion, down 8 percent from $30.5 billion in the first quarter. Nonaccrual loans declined to $23.0 billion from $25.0 billion in the first quarter, with reductions across all major loan portfolios. Foreclosed assets decreased 12 percent to $4.9 billion, the third consecutive quarterly decline despite extended foreclosure timelines in many states. A significant portion of the reduction in commercial nonperforming loans resulted from loans that returned to performing status, loan payoffs and loan sales, reflecting an improved credit landscape and market liquidity. Similarly, the reduction in consumer nonperforming loans was driven in part by an asset sale, increased success in home modifications and increased short sale activity.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)

	June 30, 2011						March 31, 2011						December 31, 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	$	2,393			1.52	%	$	2,653			1.76	%	$	3,213			2.12	%
Real estate mortgage		4,691			4.62			5,239			5.18			5,227			5.26
Real estate construction		2,043			9.56			2,239			9.79			2,676			10.56
Lease financing		79			0.61			95			0.73			108			0.82
Foreign		59			0.16			86			0.24			127			0.39
Total commercial		9,265			2.80			10,312			3.19			11,351			3.52
Consumer:
Real estate 1-4 family first mortgage		11,427			5.13			12,143			5.36			12,289			5.34
Real estate 1-4 family junior lien mortgage		2,098			2.33			2,235			2.40			2,302			2.39
Other revolving credit and installment		255			0.29			275			0.31			300			0.35
Total consumer		13,780			3.27			14,653			3.42			14,891			3.42
Total nonaccrual loans		23,045			3.06			24,965			3.32			26,242			3.47
Foreclosed assets:
GNMA		1,320						1,457						1,479
Non GNMA		3,541						4,055						4,530
Total foreclosed assets		4,861						5,512						6,009
Total nonperforming assets	$	27,906			3.71	%	$	30,477			4.06	%	$	32,251			4.26	%
Change from prior quarter:
Total nonaccrual loans	$	(1,920	)				$	(1,277	)				$	(2,063	)
Total nonperforming assets		(2,571	)					(1,774	)					(2,181	)

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 $17.3 billion at June 30, 2011, compared with $17.9 billion at March 31, 2011. Loans whose repayments are insured by the Federal Housing Administration or predominantly guaranteed by the Department of Veterans Affairs for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $15.5 billion at June 30, 2011, flat from first quarter. All other loans 90 days or more past due and still accruing balances declined 25 percent from the prior quarter.

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Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $21.3 billion at June 30, 2011, down from $22.4 billion at March 31, 2011. The allowance coverage to total loans was 2.83 percent compared with 2.98 percent in the prior quarter. The allowance covered 1.87 times annualized second quarter net charge-offs compared with 1.72 times in the prior quarter. The allowance coverage to nonaccrual loans was 92 percent at June 30, 2011, compared with 90 percent at March 31, 2011. “We believe the allowance was adequate for losses inherent in the loan portfolio at June 30, 2011,” 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
	June 30,		Mar. 31,		June 30,
(in millions)	2011		2011		2010
Community Banking	$	2,087		2,175		1,716
Wholesale Banking		1,931		1,652		1,462
Wealth, Brokerage and Retirement		333		339		270

More financial information about the business segments is on pages 37 and 38.

Community Bankingoffers a complete line of diversified financial products and services for consumers and small businesses including investment, insurance and trust services in 39 states and D.C., and mortgage and home equity loans in all 50 states and D.C. through its Regional Banking and Wells Fargo Home Mortgage business units.

Selected Financial Information

	Quarter ended
	June 30,		Mar. 31,		June 30,
(in millions)	2011		2011		2010
Total revenue	$	12,567		12,637		13,606
Provision for credit losses		1,927		2,065		3,348
Noninterest expense		7,418		7,605		7,678
Segment net income		2,087		2,175		1,716
(in billions)
Average loans		498.2		509.8		534.3
Average assets		752.5		759.9		771.3
Average core deposits		552.0		548.1		532.6

Community Banking reported net income of $2.1 billion, down $88 million, or 4 percent, from prior quarter and up $371 million, or 22 percent, from second quarter 2010. Revenue decreased $70 million from first quarter 2011 driven primarily by a decline in mortgage banking income from lower originations and continued expected reductions in the home equity loan portfolio, offset by gains on equity investments and lower deposit costs. Revenue decreased $1.0 billion, or 8 percent, from second quarter 2010 largely due to

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lower mortgage banking income, lower deposit service charges as a result of Regulation E and the expected reduction in the liquidating loan portfolios, partially offset by the impact of a robust used car market on the indirect auto portfolio, strong debit card growth and equity gains. Noninterest expense decreased $187 million, or 2 percent, from first quarter 2011, reflecting improved credit costs, as well as lower software license and other equipment expense. Noninterest expense decreased $260 million, or 3 percent, from second quarter 2010 due to reduced personnel costs, a decrease in software license expense and lower operating losses. The provision for credit losses decreased $138 million from first quarter 2011 and $1.4 billion from second quarter 2010. The decline was due to a $288 million decrease in net loan charge-offs from first quarter 2011, a $1.1 billion decrease from second quarter 2010, as well as a $700 million reserve release in second quarter 2011, compared with a release of $850 million and $389 million in first quarter 2011 and second quarter 2010, respectively.

Regional Banking Highlights

• Strong growth in checking accounts from June 30, 2010 (combined Regional Banking)

– Consumer checking accounts up a net 7.0 percent

– Business checking accounts up a net 4.5 percent

– Consumer checking accounts up a net 7.9 percent in California, 9.2 percent in New Jersey, 9.5 percent in North Carolina and 11.1 percent in Florida

• Strong solutions in second quarter 2011

– West

o Core product solutions (sales) of 8.33 million, up 16 percent from prior year

o Sales ofWells Fargo Packages^® (a checking account and three other products) up 19 percent from prior year, purchased by 85 percent of new checking account customers

– East

o Eastern core product solutions grew by double-digits from prior year

o For eastern states on Wells Fargo systems the entire quarter, 81 percent of new checking account customers purchasedWells Fargo Packages

o Platform banker full-time equivalents grew by nearly 1,500, or 16 percent, from prior year

• Retail bank household cross-sell ratio for combined company of 5.84 products per household, up from 5.64 in second quarter 2010; cross-sell in the West of 6.25, compared with 5.29 in the East, represents the opportunity to earn more business from customers in the East

• Small Business/Business Banking

– Named U.S. Small Business Administration’s 2011 SBA 7(a) Large Lender of the Year

– Record store-based business solutions up 8 percent from prior year (West)

– Sales ofWells Fargo Business Services Packages(business checking account and at least three other business products) up 23 percent from prior year, purchased by 70 percent of new business checking account customers (West)

– Business Banking household cross-sell of 4.17 products per household (West)

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– Wells Fargo, America’s #1 small business lender, made $7.5 billion in new loan commitments to its small business customers in the first half of 2011, a 13 percent increase in dollars lent from first half of 2010

• Online and Mobile Banking

– 19.3 million combined active online customers (as of May 31, 2011)

– 6.0 million combined active mobile customers (as of May 31, 2011)

Wells Fargo Home Mortgage (Home Mortgage)

• Home Mortgage applications of $109 billion, compared with $102 billion in prior quarter, driven in part by lower average rates in the quarter

• Home Mortgage application pipeline of $51 billion at quarter end, compared with $45 billion at March 31, 2011

• Home Mortgage originations of $64 billion, down from $84 billion in prior quarter

• Residential mortgage servicing portfolio of $1.8 trillion

• As of June 30, 2011, approximately 695,000 active trial or completed loan modifications had been initiated since the beginning of 2009; of this total, 85 percent were through Wells Fargo’s own modification programs and the rest were through the federal government’sHome Affordable Modification Program(HAMP)

Wholesale Bankingprovides financial solutions to businesses across the United States with annual sales generally in excess of $20 million and to financial institutions globally. Products & business units include Middle Market Commercial Banking, Government & Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, 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
	June 30,			Mar. 31,		June 30,
(in millions)	2011			2011		2010
Total revenue	$	5,631			5,460		5,774
Provision (reversal of provision) for credit losses		(97	)		134		635
Noninterest expense		2,766			2,800		2,873
Segment net income		1,931			1,652		1,462
(in billions)
Average loans		243.1			234.7		228.2
Average assets		415.7			399.6		369.5
Average core deposits		190.6			184.8		162.3

Wholesale Banking reported net income of $1.9 billion, up $279 million, or 17 percent, from first quarter 2011 and up $469 million, or 32 percent, from second quarter 2010. Revenue increased $171 million, or 3 percent, from the prior quarter as strong loan and revenue growth across most lending businesses, solid investment banking results, seasonally higher insurance fees and higher PCI-related resolutions more than offset weakness in sales and trading and lower equity fund gains. Revenue decreased $143 million, or

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2 percent, from prior year as strong growth across core businesses, including loan and deposit growth, was more than offset by lower PCI-related resolutions and other gains. Noninterest expense decreased $34 million, or 1 percent, from prior quarter related to lower personnel expense and decreased $107 million, or 4 percent, from prior year related to lower litigation and foreclosed asset expenses. The provision for credit losses declined $732 million from second quarter 2010, and included a $300 million reserve release this quarter compared with a $111 million reserve release a year ago along with a $543 million improvement in net credit losses.

• Linked quarter average loan growth in many portfolios, including asset-backed finance, commercial banking, commercial real estate, corporate banking, government banking, international, real estate capital markets, and capital finance, driven primarily by new customer activity

• Continued improvement in nonperforming assets

• Average core deposits up 17 percent from prior year, reflecting continued strong customer liquidity

• U.S. investment banking market share year to date 2011 of 4.7 percent, up from 4.2 percent for full year 2010 (source: Dealogic fee-based league tables)

• Wells Fargo named Best Trade Bank in the USA byTrade Finance

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
	June 30,		Mar. 31,		June 30,
(in millions)	2011		2011		2010
Total revenue	$	3,086		3,150		2,867
Provision for credit losses		61		41		81
Noninterest expense		2,487		2,559		2,350
Segment net income		333		339		270
(in billions)
Average loans		43.5		42.7		42.6
Average assets		147.7		146.5		141.0
Average core deposits		126.0		125.4		121.5

Wealth, Brokerage and Retirement reported net income of $333 million, down $6 million from first quarter 2011 and up $63 million from second quarter 2010. Revenue was $3.1 billion, down 2 percent from first quarter 2011 due to lower brokerage transaction revenue and up 8 percent from second quarter 2010 driven by higher asset-based revenues and higher securities gains in the brokerage business. The provision for credit losses increased $20 million from first quarter 2011 and decreased $20 million from second quarter 2010. Noninterest expense declined 3 percent from first quarter on reduced personnel costs and increased 6 percent from second quarter 2010 due to growth in personnel costs, primarily broker commissions driven

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by higher production levels. Average core deposits increased $600 million from first quarter 2011 and $4.5 billion from second quarter 2010.

Retail Brokerage

• Client assets of $1.2 trillion, up 12 percent from prior year

• Managed account assets increased $62 billion, or 31 percent, from prior year driven by strong net flows and solid market gains

• Strong deposit growth, with average balances up $5 billion, or 6 percent, from prior year

• Announced sale of H.D. Vest Financial Services

Wealth Management

• Client assets of $204 billion, up 8 percent from prior year

• Investment management and trust asset-based revenue up 8 percent from prior year

Retirement

• Institutional retirement plan assets of $247 billion, up $37 billion, or 18 percent, from prior year

• IRA assets of $286 billion, up $39 billion, or 16 percent, from prior year

Conference Call

The Company will host a live conference call on Tuesday, July 19, at 6:30 a.m. PDT (9:30 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (international). No password is required. The call is also available online atwellsfargo.com/invest_relations/earnings andhttp://us.meeting-stream.com/wellsfargocompany_072011.

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on July 19 through Tuesday, July 26. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291 (international) and enter Conference ID #76224090. The replay will also be available online atwellsfargo.com/invest_relations/earnings.

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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,” “target,” “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, and the adequacy of the allowance for loan losses, including our current expectation of future reductions in the allowance for loan losses; (ii) our targeted noninterest expense for fourth quarter 2012 as part of our expense management initiatives; (iii) our estimates regarding our Tier 1 common equity ratio under proposed Basel III capital regulations; and (iv) the timing of expected integration activities related to the Wachovia merger.

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 servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures; our ability to realize our noninterest expense target as part of our expense management initiatives when and in the amount targeted, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters; our ability to successfully and timely integrate the Wachovia merger and realize the expected cost savings and other benefits, including delays or disruptions in system conversions and higher severance costs; 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, 2010, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, including the discussion under “Risk Factors” in each of these reports, as filed with the SEC and available on the SEC’s website at www.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.

- 13 -

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 275,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 23 onFortune’s2011 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		15-16
Income
Consolidated Statement of Income		17-18
Average Balances, Yields and Rates Paid		19-20
Noninterest Income and Noninterest Expense		21-22
Balance Sheet
Consolidated Balance Sheet		23-24
Average Balances		25
Loans
Loans		26
Nonaccrual Loans and Foreclosed Assets		26
Loans 90 Days or More Past Due and Still Accruing		27
Purchased Credit-Impaired Loans		28-30
Pick-A-Pay Portfolio		31
Non-Strategic and Liquidating Loan Portfolios		32
Home Equity Portfolios		32
Allowance for Credit Losses		33-34
Equity
Condensed Consolidated Statement of Changes in Total Equity		35
Tier 1 Common Equity		36
Operating Segments
Operating Segment Results		37-38
Other
Mortgage Servicing and other related data		39-41

 - 15 -

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

	Quarter ended June 30,					%			Six months ended June 30,				%
($ in millions, except per share amounts)	2011			2010		Change			2011		2010		Change
For the Period
Wells Fargo net income	$	3,948			3,062		29	%	$	7,707		5,609		37	%
Wells Fargo net income applicable to common stock		3,728			2,878		30			7,298		5,250		39
Diluted earnings per common share		0.70			0.55		27			1.37		1.00		37
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.27	%		1.00		27			1.25		0.92		36
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		11.92			10.40		15			11.95		9.69		23
Efficiency ratio (1)		61.2			59.6		3			61.9		58.0		7
Total revenue	$	20,386			21,394		(5	)	$	40,715		42,842		(5	)
Pre-tax pre-provision profit (PTPP) (2)		7,911			8,648		(9	)		15,507		17,979		(14	)
Dividends declared per common share		0.12			0.05		140			0.24		0.10		140
Average common shares outstanding		5,286.5			5,219.7		1			5,282.7		5,205.1		1
Diluted average common shares outstanding		5,331.7			5,260.8		1			5,329.9		5,243.0		2
Average loans	$	751,253			772,460		(3	)	$	752,657		784,856		(4	)
Average assets		1,250,945			1,224,180		2			1,246,088		1,225,145		2
Average core deposits (3)		807,483			761,767		6			802,184		760,475		5
Average retail core deposits (4)		592,974			574,436		3			588,561		574,059		3
Net interest margin		4.01	%		4.38		(8	)		4.03		4.33		(7	)
At Period End
Securities available for sale	$	186,298			157,927		18		$	186,298		157,927		18
Loans		751,921			766,265		(2	)		751,921		766,265		(2	)
Allowance for loan losses		20,893			24,584		(15	)		20,893		24,584		(15	)
Goodwill		24,776			24,820		-			24,776		24,820		-
Assets		1,259,734			1,225,862		3			1,259,734		1,225,862		3
Core deposits (3)		808,970			758,680		7			808,970		758,680		7
Wells Fargo stockholders’ equity		136,401			119,772		14			136,401		119,772		14
Total equity		137,916			121,398		14			137,916		121,398		14
Capital ratios:
Total equity to assets		10.95	%		9.90		11			10.95		9.90		11
Risk-based capital (5):
Tier 1 capital		11.70			10.51		11			11.70		10.51		11
Total capital		15.42			14.53		6			15.42		14.53		6
Tier 1 leverage (5)		9.43			8.66		9			9.43		8.66		9
Tier 1 common equity (6)		9.16			7.61		20			9.16		7.61		20
Common shares outstanding		5,278.2			5,231.4		1			5,278.2		5,231.4		1
Book value per common share	$	23.84			21.35		12		$	23.84		21.35		12
Common stock price:
High		32.63			34.25		(5	)		34.25		34.25		-
Low		25.26			25.52		(1	)		25.26		25.52		(1	)
Period end		28.06			25.60		10			28.06		25.60		10
Team members (active, full-time equivalent)		266,600			267,600		-			266,600		267,600		-

(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 June 30, 2011, ratios are preliminary.
(6)	See the “Five Quarter Tier 1 Common Equity” table for additional information.

 - 16 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	June 30,			Mar. 31,		Dec. 31,		Sept. 30,		June 30,
($ in millions, except per share amounts)	2011			2011		2010		2010		2010
For the Quarter
Wells Fargo net income	$	3,948			3,759		3,414		3,339		3,062
Wells Fargo net income applicable to common stock		3,728			3,570		3,232		3,150		2,878
Diluted earnings per common share		0.70			0.67		0.61		0.60		0.55
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.27	%		1.23		1.09		1.09		1.00
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		11.92			11.98		10.95		10.90		10.40
Efficiency ratio (1)		61.2			62.6		62.1		58.7		59.6
Total revenue	$	20,386			20,329		21,494		20,874		21,394
Pre-tax pre-provision profit (PTPP) (2)		7,911			7,596		8,154		8,621		8,648
Dividends declared per common share		0.12			0.12		0.05		0.05		0.05
Average common shares outstanding		5,286.5			5,278.8		5,256.2		5,240.1		5,219.7
Diluted average common shares outstanding		5,331.7			5,333.1		5,293.8		5,273.2		5,260.8
Average loans	$	751,253			754,077		753,675		759,483		772,460
Average assets		1,250,945			1,241,176		1,237,037		1,220,368		1,224,180
Average core deposits (3)		807,483			796,826		794,799		771,957		761,767
Average retail core deposits (4)		592,974			584,100		573,843		571,062		574,436
Net interest margin		4.01	%		4.05		4.16		4.25		4.38
At Quarter End
Securities available for sale	$	186,298			167,906		172,654		176,875		157,927
Loans		751,921			751,155		757,267		753,664		766,265
Allowance for loan losses		20,893			21,983		23,022		23,939		24,584
Goodwill		24,776			24,777		24,770		24,831		24,820
Assets		1,259,734			1,244,666		1,258,128		1,220,784		1,225,862
Core deposits (3)		808,970			795,038		798,192		771,792		758,680
Wells Fargo stockholders’ equity		136,401			133,471		126,408		123,658		119,772
Total equity		137,916			134,943		127,889		125,165		121,398
Capital ratios:
Total equity to assets		10.95	%		10.84		10.16		10.25		9.90
Risk-based capital (5):
Tier 1 capital		11.70			11.50		11.16		10.90		10.51
Total capital		15.42			15.30		15.01		14.88		14.53
Tier 1 leverage (5)		9.43			9.27		9.19		9.01		8.66
Tier 1 common equity (6)		9.16			8.93		8.30		8.01		7.61
Common shares outstanding		5,278.2			5,300.9		5,262.3		5,244.4		5,231.4
Book value per common share	$	23.84			23.18		22.49		22.04		21.35
Common stock price:
High		32.63			34.25		31.61		28.77		34.25
Low		25.26			29.82		23.37		23.02		25.52
Period end		28.06			31.71		30.99		25.12		25.60
Team members (active, full-time equivalent)		266,600			270,200		272,200		266,900		267,600

(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 June 30, 2011, ratios are preliminary.
(6)	See the “Five Quarter Tier 1 Common Equity” table for additional information.

 - 17 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

	Quarter ended June 30,					%			Six months ended June 30,					%
(in millions, except per share amounts)	2011			2010		Change			2011			2010		Change
Interest income
Trading assets	$	347			266		30	%	$	697			533		31	%
Securities available for sale		2,166			2,385		(9	)		4,330			4,800		(10	)
Mortgages held for sale		362			405		(11	)		799			792		1
Loans held for sale		17			30		(43	)		29			64		(55	)
Loans		9,361			10,277		(9	)		18,748			20,315		(8	)
Other interest income		131			109		20			253			193		31
Total interest income		12,384			13,472		(8	)		24,856			26,697		(7	)
Interest expense
Deposits		594			714		(17	)		1,209			1,449		(17	)
Short-term borrowings		20			21		(5	)		46			39		18
Long-term debt		1,009			1,233		(18	)		2,113			2,509		(16	)
Other interest expense		83			55		51			159			104		53
Total interest expense		1,706			2,023		(16	)		3,527			4,101		(14	)
Net interest income		10,678			11,449		(7	)		21,329			22,596		(6	)
Provision for credit losses		1,838			3,989		(54	)		4,048			9,319		(57	)
Net interest income after provision for credit losses		8,840			7,460		18			17,281			13,277		30
Noninterest income
Service charges on deposit accounts		1,074			1,417		(24	)		2,086			2,749		(24	)
Trust and investment fees		2,944			2,743		7			5,860			5,412		8
Card fees		1,003			911		10			1,960			1,776		10
Other fees		1,023			982		4			2,012			1,923		5
Mortgage banking		1,619			2,011		(19	)		3,635			4,481		(19	)
Insurance		568			544		4			1,071			1,165		(8	)
Net gains from trading activities		414			109		280			1,026			646		59
Net gains (losses) on debt securities available for sale		(128	)		30		NM			(294	)		58		NM
Net gains from equity investments		724			288		151			1,077			331		225
Operating leases		103			329		(69	)		180			514		(65	)
Other		364			581		(37	)		773			1,191		(35	)
Total noninterest income		9,708			9,945		(2	)		19,386			20,246		(4	)
Noninterest expense
Salaries		3,584			3,564		1			7,038			6,878		2
Commission and incentive compensation		2,171			2,225		(2	)		4,518			4,217		7
Employee benefits		1,164			1,063		10			2,556			2,385		7
Equipment		528			588		(10	)		1,160			1,266		(8	)
Net occupancy		749			742		1			1,501			1,538		(2	)
Core deposit and other intangibles		464			553		(16	)		947			1,102		(14	)
FDIC and other deposit assessments		315			295		7			620			596		4
Other		3,500			3,716		(6	)		6,868			6,881		-
Total noninterest expense		12,475			12,746		(2	)		25,208			24,863		1
Income before income tax expense		6,073			4,659		30			11,459			8,660		32
Income tax expense		2,001			1,514		32			3,573			2,915		23
Net income before noncontrolling interests		4,072			3,145		29			7,886			5,745		37
Less: Net income from noncontrolling interests		124			83		49			179			136		32
Wells Fargo net income	$	3,948			3,062		29		$	7,707			5,609		37
Less: Preferred stock dividends and other		220			184					409			359
Wells Fargo net income applicable to common stock	$	3,728			2,878		30		$	7,298			5,250		39
Per share information
Earnings per common share	$	0.70			0.55		27		$	1.38			1.01		37
Diluted earnings per common share		0.70			0.55		27			1.37			1.00		37
Dividends declared per common share		0.12			0.05		140			0.24			0.10		140
Average common shares outstanding		5,286.5			5,219.7		1			5,282.7			5,205.1		1
Diluted average common shares outstanding		5,331.7			5,260.8		1			5,329.9			5,243.0		2

NM - Not meaningful

 - 18 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions, except per share amounts)	2011			2011			2010			2010			2010
Interest income
Trading assets	$	347			350			295			270			266
Securities available for sale		2,166			2,164			2,374			2,492			2,385
Mortgages held for sale		362			437			495			449			405
Loans held for sale		17			12			15			22			30
Loans		9,361			9,387			9,666			9,779			10,277
Other interest income		131			122			124			118			109
Total interest income		12,384			12,472			12,969			13,130			13,472
Interest expense
Deposits		594			615			662			721			714
Short-term borrowings		20			26			26			27			21
Long-term debt		1,009			1,104			1,153			1,226			1,233
Other interest expense		83			76			65			58			55
Total interest expense		1,706			1,821			1,906			2,032			2,023
Net interest income		10,678			10,651			11,063			11,098			11,449
Provision for credit losses		1,838			2,210			2,989			3,445			3,989
Net interest income after provision for credit losses		8,840			8,441			8,074			7,653			7,460
Noninterest income
Service charges on deposit accounts		1,074			1,012			1,035			1,132			1,417
Trust and investment fees		2,944			2,916			2,958			2,564			2,743
Card fees		1,003			957			941			935			911
Other fees		1,023			989			1,063			1,004			982
Mortgage banking		1,619			2,016			2,757			2,499			2,011
Insurance		568			503			564			397			544
Net gains from trading activities		414			612			532			470			109
Net gains (losses) on debt securities available for sale		(128	)		(166	)		(268	)		(114	)		30
Net gains from equity investments		724			353			317			131			288
Operating leases		103			77			79			222			329
Other		364			409			453			536			581
Total noninterest income		9,708			9,678			10,431			9,776			9,945
Noninterest expense
Salaries		3,584			3,454			3,513			3,478			3,564
Commission and incentive compensation		2,171			2,347			2,195			2,280			2,225
Employee benefits		1,164			1,392			1,192			1,074			1,063
Equipment		528			632			813			557			588
Net occupancy		749			752			750			742			742
Core deposit and other intangibles		464			483			549			548			553
FDIC and other deposit assessments		315			305			301			300			295
Other		3,500			3,368			4,027			3,274			3,716
Total noninterest expense		12,475			12,733			13,340			12,253			12,746
Income before income tax expense		6,073			5,386			5,165			5,176			4,659
Income tax expense		2,001			1,572			1,672			1,751			1,514
Net income before noncontrolling interests		4,072			3,814			3,493			3,425			3,145
Less: Net income from noncontrolling interests		124			55			79			86			83
Wells Fargo net income	$	3,948			3,759			3,414			3,339			3,062
Less: Preferred stock dividends and other		220			189			182			189			184
Wells Fargo net income applicable to common stock	$	3,728			3,570			3,232			3,150			2,878
Per share information
Earnings per common share	$	0.70			0.68			0.62			0.60			0.55
Diluted earnings per common share		0.70			0.67			0.61			0.60			0.55
Dividends declared per common share		0.12			0.12			0.05			0.05			0.05
Average common shares outstanding		5,286.5			5,278.8			5,256.2			5,240.1			5,219.7
Diluted average common shares outstanding		5,331.7			5,333.1			5,293.8			5,273.2			5,260.8

 - 19 -

Wells Fargo & Company and Subsidiaries

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

	Quarter ended June 30,
	2011								2010
							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	$	98,519			0.32	%	$	80		67,712			0.33	%	$	56
Trading assets		38,015			3.71			352		28,760			3.79			272
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		2,091			2.33			12		2,094			3.50			18
Securities of U.S. states and political subdivisions		22,610			5.35			302		16,192			6.48			255
Mortgage-backed securities:
Federal agencies		74,402			4.76			844		72,876			5.39			930
Residential and commercial		32,536			8.86			664		33,197			9.59			769
Total mortgage-backed securities		106,938			5.98			1,508		106,073			6.72			1,699
Other debt and equity securities		37,037			5.81			502		33,270			7.21			562
Total securities available for sale		168,676			5.81			2,324		157,629			6.75			2,534
Mortgages held for sale (4)		30,674			4.73			362		32,196			5.04			405
Loans held for sale (4)		1,356			5.05			17		4,386			2.73			30
Loans:
Commercial:
Commercial and industrial		153,630			4.60			1,761		147,965			5.44			2,009
Real estate mortgage		101,437			4.16			1,051		97,731			3.89			949
Real estate construction		21,987			4.64			254		33,060			3.44			284
Lease financing		12,899			7.72			249		13,622			9.54			325
Foreign		36,445			2.65			241		29,048			3.62			262
Total commercial		326,398			4.37			3,556		321,426			4.78			3,829
Consumer:
Real estate 1-4 family first mortgage		224,873			4.97			2,792		237,500			5.24			3,108
Real estate 1-4 family junior lien mortgage		91,934			4.25			975		102,678			4.53			1,162
Credit card		20,954			12.97			679		22,239			13.24			736
Other revolving credit and installment		87,094			6.32			1,372		88,617			6.57			1,452
Total consumer		424,855			5.48			5,818		451,034			5.74			6,458
Total loans (4)		751,253			5.00			9,374		772,460			5.34			10,287
Other		4,997			4.10			52		6,082			3.44			53
Total earning assets	$	1,093,490			4.64	%	$	12,561		1,069,225			5.14	%	$	13,637
Funding sources
Deposits:
Interest-bearing checking	$	53,344			0.09	%	$	12		61,212			0.13	%	$	19
Market rate and other savings		455,126			0.20			226		412,062			0.26			267
Savings certificates		72,100			1.42			256		89,773			1.44			323
Other time deposits		12,988			2.03			67		14,936			1.90			72
Deposits in foreign offices		57,899			0.23			33		57,461			0.23			33
Total interest-bearing deposits		651,457			0.37			594		635,444			0.45			714
Short-term borrowings		53,340			0.18			24		45,082			0.22			25
Long-term debt		145,431			2.78			1,009		195,440			2.52			1,233
Other liabilities		10,978			3.03			83		6,737			3.33			55
Total interest-bearing liabilities		861,206			0.80			1,710		882,703			0.92			2,027
Portion of noninterest-bearing funding sources		232,284			-			-		186,522			-			-
Total funding sources	$	1,093,490			0.63			1,710		1,069,225			0.76			2,027
Net interest margin and net interest income on a taxable-equivalent basis (5)					4.01	%	$	10,851					4.38	%	$	11,610
Noninterest-earning assets
Cash and due from banks	$	17,373								17,415
Goodwill		24,773								24,820
Other		115,309								112,720
Total noninterest-earning assets	$	157,455								154,955
Noninterest-bearing funding sources
Deposits	$	199,339								176,908
Other liabilities		53,169								43,713
Total equity		137,231								120,856
Noninterest-bearing funding sources used to fund earning assets		(232,284	)							(186,522	)
Net noninterest-bearing funding sources	$	157,455								154,955
Total assets	$	1,250,945								1,224,180

(1)	Our average prime rate was 3.25% for the quarters ended June 30, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.26% and 0.44% for the same quarters, respectively.
(2)	Yield/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)	Nonaccrual loans and related income are included in their respective loan categories.
(5)	Includes taxable-equivalent adjustments of $173 million and $161 million for June 30, 2011 and 2010, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 35% for the periods presented.

- 20 -

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

	Six months ended June 30,
	2011								2010
							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	$	90,994			0.34	%	$	152		54,347			0.33	%	$	89
Trading assets		37,711			3.76			708		28,338			3.85			544
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,834			2.56			23		2,186			3.56			38
Securities of U.S. states and political subdivisions		21,098			5.39			572		14,951			6.53			476
Mortgage-backed securities:
Federal agencies		73,937			4.74			1,676		76,284			5.39			1,953
Residential and commercial		32,734			9.28			1,396		32,984			9.63			1,559
Total mortgage-backed securities		106,671			6.10			3,072		109,268			6.70			3,512
Other debt and equity securities		36,482			5.68			967		32,810			6.86			1,054
Total securities available for sale		166,085			5.87			4,634		159,215			6.67			5,080
Mortgages held for sale (4)		34,686			4.61			799		31,784			4.99			792
Loans held for sale (4)		1,167			4.98			29		5,390			2.39			64
Loans:
Commercial:
Commercial and industrial		151,849			4.62			3,484		152,192			4.97			3,752
Real estate mortgage		100,621			4.04			2,018		97,848			3.79			1,839
Real estate construction		23,128			4.44			509		34,448			3.25			555
Lease financing		12,959			7.78			504		13,814			9.38			648
Foreign		35,050			2.73			476		28,807			3.62			518
Total commercial		323,607			4.35			6,991		327,109			4.50			7,312
Consumer:
Real estate 1-4 family first mortgage		227,208			4.99			5,659		241,241			5.25			6,318
Real estate 1-4 family junior lien mortgage		93,313			4.30			1,993		104,151			4.50			2,330
Credit card		21,230			13.08			1,388		22,789			13.20			1,503
Other revolving credit and installment		87,299			6.34			2,743		89,566			6.49			2,879
Total consumer		429,050			5.51			11,783		457,747			5.72			13,030
Total loans (4)		752,657			5.01			18,774		784,856			5.21			20,342
Other		5,111			4.00			102		6,075			3.40			103
Total earning assets	$	1,088,411			4.69	%	$	25,198		1,070,005			5.10	%	$	27,014
Funding sources
Deposits:
Interest-bearing checking	$	55,909			0.09	%	$	26		61,614			0.14	%	$	42
Market rate and other savings		449,388			0.21			463		408,026			0.27			553
Savings certificates		73,229			1.41			511		92,254			1.40			640
Other time deposits		13,417			2.14			143		15,405			1.97			152
Deposits in foreign offices		57,687			0.23			66		56,453			0.22			62
Total interest-bearing deposits		649,630			0.38			1,209		633,752			0.46			1,449
Short-term borrowings		54,041			0.20			54		45,082			0.20			44
Long-term debt		147,774			2.86			2,113		202,186			2.48			2,509
Other liabilities		10,230			3.13			159		6,203			3.38			104
Total interest-bearing liabilities		861,675			0.82			3,535		887,223			0.93			4,106
Portion of noninterest-bearing funding sources		226,736			-			-		182,782			-			-
Total funding sources	$	1,088,411			0.66			3,535		1,070,005			0.77			4,106
Net interest margin and net interest income on a taxable-equivalent basis (5)					4.03	%	$	21,663					4.33	%	$	22,908
Noninterest-earning assets
Cash and due from banks	$	17,367								17,730
Goodwill		24,774								24,818
Other		115,536								112,592
Total noninterest-earning assets	$	157,677								155,140
Noninterest-bearing funding sources
Deposits	$	196,237								174,487
Other liabilities		54,237								44,224
Total equity		133,939								119,211
Noninterest-bearing funding sources used to fund earning assets		(226,736	)							(182,782	)
Net noninterest-bearing funding sources	$	157,677								155,140
Total assets	$	1,246,088								1,225,145

(1)	Our average prime rate was 3.25% for the six months ended June 30, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.29% and 0.35% for the same periods, respectively.
(2)	Yields/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)	Nonaccrual loans and related income are included in their respective loan categories.
(5)	Includes taxable-equivalent adjustments of $334 million and $312 million for June 30, 2011 and 2010, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

- 21 -

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME

	Quarter ended June 30,					%			Six months ended June 30,					%
(in millions)	2011			2010		Change			2011			2010		Change
Service charges on deposit accounts	$	1,074			1,417		(24	)  %	$	2,086			2,749		(24	)  %
Trust and investment fees:
Trust, investment and IRA fees		1,020			1,035		(1	)		2,080			2,084		-
Commissions and all other fees		1,924			1,708		13			3,780			3,328		14
Total trust and investment fees		2,944			2,743		7			5,860			5,412		8
Card fees		1,003			911		10			1,960			1,776		10
Other fees:
Cash network fees		94			58		62			175			113		55
Charges and fees on loans		404			401		1			801			820		(2	)
Processing and all other fees		525			523		-			1,036			990		5
Total other fees		1,023			982		4			2,012			1,923		5
Mortgage banking:
Servicing income, net		877			1,218		(28	)		1,743			2,584		(33	)
Net gains on mortgage loan origination/sales activities		742			793		(6	)		1,892			1,897		-
Total mortgage banking		1,619			2,011		(19	)		3,635			4,481		(19	)
Insurance		568			544		4			1,071			1,165		(8	)
Net gains from trading activities		414			109		280			1,026			646		59
Net gains (losses) on debt securities available for sale		(128	)		30	NM				(294	)		58	NM
Net gains from equity investments		724			288		151			1,077			331		225
Operating leases		103			329		(69	)		180			514		(65	)
All other		364			581		(37	)		773			1,191		(35	)
Total	$	9,708			9,945		(2	)	$	19,386			20,246		(4	)
NM - Not meaningful
NONINTEREST EXPENSE
	Quarter ended June 30,					%			Six months ended June 30,					%
(in millions)	2011			2010		Change			2011			2010		Change
Salaries	$	3,584			3,564		1	%	$	7,038			6,878		2	%
Commission and incentive compensation		2,171			2,225		(2	)		4,518			4,217		7
Employee benefits		1,164			1,063		10			2,556			2,385		7
Equipment		528			588		(10	)		1,160			1,266		(8	)
Net occupancy		749			742		1			1,501			1,538		(2	)
Core deposit and other intangibles		464			553		(16	)		947			1,102		(14	)
FDIC and other deposit assessments		315			295		7			620			596		4
Outside professional services		659			572		15			1,239			1,056		17
Contract services		341			384		(11	)		710			731		(3	)
Foreclosed assets		305			333		(8	)		713			719		(1	)
Operating losses		428			627		(32	)		900			835		8
Outside data processing		232			276		(16	)		452			548		(18	)
Postage, stationery and supplies		236			230		3			471			472		-
Travel and entertainment		205			196		5			411			367		12
Advertising and promotion		166			156		6			282			268		5
Telecommunications		132			156		(15	)		266			299		(11	)
Insurance		201			164		23			334			312		7
Operating leases		31			27		15			55			64		(14	)
All other		564			595		(5	)		1,035			1,210		(14	)
Total	$	12,475			12,746		(2	)	$	25,208			24,863		1

- 22 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2011			2011			2010			2010			2010
Service charges on deposit accounts	$	1,074			1,012			1,035			1,132			1,417
Trust and investment fees:
Trust, investment and IRA fees		1,020			1,060			1,030			924			1,035
Commissions and all other fees		1,924			1,856			1,928			1,640			1,708
Total trust and investment fees		2,944			2,916			2,958			2,564			2,743
Card fees		1,003			957			941			935			911
Other fees:
Cash network fees		94			81			74			73			58
Charges and fees on loans		404			397			446			424			401
Processing and all other fees		525			511			543			507			523
Total other fees		1,023			989			1,063			1,004			982
Mortgage banking:
Servicing income, net		877			866			240			516			1,218
Net gains on mortgage loan origination/sales activities		742			1,150			2,517			1,983			793
Total mortgage banking		1,619			2,016			2,757			2,499			2,011
Insurance		568			503			564			397			544
Net gains from trading activities		414			612			532			470			109
Net gains (losses) on debt securities available for sale		(128	)		(166	)		(268	)		(114	)		30
Net gains from equity investments		724			353			317			131			288
Operating leases		103			77			79			222			329
All other		364			409			453			536			581
Total	$	9,708			9,678			10,431			9,776			9,945
FIVE QUARTER NONINTEREST EXPENSE
	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2011			2011			2010			2010			2010
Salaries	$	3,584			3,454			3,513			3,478			3,564
Commission and incentive compensation		2,171			2,347			2,195			2,280			2,225
Employee benefits		1,164			1,392			1,192			1,074			1,063
Equipment		528			632			813			557			588
Net occupancy		749			752			750			742			742
Core deposit and other intangibles		464			483			549			548			553
FDIC and other deposit assessments		315			305			301			300			295
Outside professional services		659			580			781			533			572
Contract services		341			369			481			430			384
Foreclosed assets		305			408			452			366			333
Operating losses		428			472			193			230			627
Outside data processing		232			220			235			263			276
Postage, stationery and supplies		236			235			239			233			230
Travel and entertainment		205			206			221			195			196
Advertising and promotion		166			116			192			170			156
Telecommunications		132			134			151			146			156
Insurance		201			133			90			62			164
Operating leases		31			24			24			21			27
All other		564			471			968			625			595
Total	$	12,475			12,733			13,340			12,253			12,746

- 23 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

	June 30,			Dec. 31,
(in millions, except shares)	2011			2010			% Change
Assets
Cash and due from banks	$	24,059			16,044			50	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		88,406			80,637			10
Trading assets		54,770			51,414			7
Securities available for sale		186,298			172,654			8
Mortgages held for sale (includes $25,175 and $47,531 carried at fair value)		31,254			51,763			(40	)
Loans held for sale (includes $1,102 and $873 carried at fair value)		1,512			1,290			17
Loans (includes $0 and $309 carried at fair value)		751,921			757,267			(1	)
Allowance for loan losses		(20,893	)		(23,022	)		(9	)
Net loans		731,028			734,245			-
Mortgage servicing rights:
Measured at fair value		14,778			14,467			2
Amortized		1,422			1,419			-
Premises and equipment, net		9,613			9,644			-
Goodwill		24,776			24,770			-
Other assets		91,818			99,781			(8	)
Total assets	$	1,259,734			1,258,128			-
Liabilities
Noninterest-bearing deposits	$	202,143			191,256			6
Interest-bearing deposits		651,492			656,686			(1	)
Total deposits		853,635			847,942			1
Short-term borrowings		53,881			55,401			(3	)
Accrued expenses and other liabilities		71,430			69,913			2
Long-term debt (includes $0 and $306 carried at fair value)		142,872			156,983			(9	)
Total liabilities		1,121,818			1,130,239			(1	)
Equity
Wells Fargo stockholders’ equity:
Preferred stock		11,730			8,689			35
Common stock - $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,325,393,921 and 5,272,414,622 shares		8,876			8,787			1
Additional paid-in capital		55,226			53,426			3
Retained earnings		57,942			51,918			12
Cumulative other comprehensive income		5,422			4,738			14
Treasury stock - 47,222,127 shares and 10,131,394 shares		(1,546	)		(487	)		217
Unearned ESOP shares		(1,249	)		(663	)		88
Total Wells Fargo stockholders’ equity		136,401			126,408			8
Noncontrolling interests		1,515			1,481			2
Total equity		137,916			127,889			8
Total liabilities and equity	$	1,259,734			1,258,128			-

- 24 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2011			2011			2010			2010			2010
Assets
Cash and due from banks	$	24,059			16,978			16,044			16,001			17,571
Federal funds sold, securities purchased under resale agreements and other short-term investments		88,406			93,041			80,637			56,549			73,898
Trading assets		54,770			57,890			51,414			49,271			47,132
Securities available for sale		186,298			167,906			172,654			176,875			157,927
Mortgages held for sale		31,254			33,121			51,763			46,001			38,581
Loans held for sale		1,512			1,428			1,290			1,188			3,999
Loans		751,921			751,155			757,267			753,664			766,265
Allowance for loan losses		(20,893	)		(21,983	)		(23,022	)		(23,939	)		(24,584	)
Net loans		731,028			729,172			734,245			729,725			741,681
Mortgage servicing rights:
Measured at fair value		14,778			15,648			14,467			12,486			13,251
Amortized		1,422			1,423			1,419			1,013			1,037
Premises and equipment, net		9,613			9,545			9,644			9,636			10,508
Goodwill		24,776			24,777			24,770			24,831			24,820
Other assets		91,818			93,737			99,781			97,208			95,457
Total assets	$	1,259,734			1,244,666			1,258,128			1,220,784			1,225,862
Liabilities
Noninterest-bearing deposits	$	202,143			190,959			191,256			184,451			175,015
Interest-bearing deposits		651,492			646,703			656,686			630,061			640,608
Total deposits		853,635			837,662			847,942			814,512			815,623
Short-term borrowings		53,881			54,737			55,401			50,715			45,187
Accrued expenses and other liabilities		71,430			68,721			69,913			67,249			58,582
Long-term debt		142,872			148,603			156,983			163,143			185,072
Total liabilities		1,121,818			1,109,723			1,130,239			1,095,619			1,104,464
Equity
Wells Fargo stockholders’ equity:
Preferred stock		11,730			11,897			8,689			8,840			8,980
Common stock		8,876			8,854			8,787			8,756			8,743
Additional paid-in capital		55,226			54,815			53,426			52,899			52,687
Retained earnings		57,942			54,855			51,918			48,953			46,126
Cumulative other comprehensive income		5,422			5,021			4,738			5,502			4,844
Treasury stock		(1,546	)		(541	)		(487	)		(466	)		(631	)
Unearned ESOP shares		(1,249	)		(1,430	)		(663	)		(826	)		(977	)
Total Wells Fargo stockholders’ equity		136,401			133,471			126,408			123,658			119,772
Noncontrolling interests		1,515			1,472			1,481			1,507			1,626
Total equity		137,916			134,943			127,889			125,165			121,398
Total liabilities and equity	$	1,259,734			1,244,666			1,258,128			1,220,784			1,225,862

- 25 -

Wells Fargo & Company and Subsidiaries

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

	Quarter ended
	June 30, 2011						Mar. 31, 2011						Dec. 31, 2010						Sept. 30, 2010						June 30, 2010
	Average			Yields/			Average			Yields/			Average			Yields/			Average			Yields/			Average			Yields/
($ in billions)	balance			rates			balance			rates			balance			rates			balance			rates			balance			rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	98.5			0.32	%	$	83.4			0.35	%	$	72.0			0.40	%	$	70.8			0.38	%	$	67.7			0.33	%
Trading assets		38.0			3.71			37.4			3.81			33.9			3.56			29.0			3.77			28.8			3.79
Securities available for sale:
Securities of U.S. Treasury and federal agencies		2.1			2.33			1.6			2.87			1.7			2.80			1.7			2.79			2.0			3.50
Securities of U.S. states and political subdivisions		22.6			5.35			19.6			5.45			18.4			5.58			17.2			5.89			16.2			6.48
Mortgage-backed securities:
Federal agencies		74.4			4.76			73.5			4.72			80.4			4.48			70.5			5.35			72.9			5.39
Residential and commercial		32.5			8.86			32.9			9.68			33.4			10.95			33.4			12.53			33.2			9.59
Total mortgage-backed securities		106.9			5.98			106.4			6.21			113.8			6.35			103.9			7.67			106.1			6.72
Other debt and equity securities		37.0			5.81			35.9			5.55			37.8			6.15			35.5			6.02			33.3			7.21
Total securities available for sale		168.6			5.81			163.5			5.94			171.7			6.18			158.3			7.05			157.6			6.75
Mortgages held for sale		30.7			4.73			38.7			4.51			45.1			4.39			38.1			4.72			32.2			5.04
Loans held for sale		1.4			5.05			1.0			4.88			1.1			5.15			3.2			2.71			4.4			2.73
Loans:
Commercial:
Commercial and industrial		153.6			4.60			150.0			4.65			147.9			4.71			146.1			4.57			148.0			5.44
Real estate mortgage		101.5			4.16			99.9			3.92			99.2			3.85			99.0			4.15			97.7			3.89
Real estate construction		22.0			4.64			24.3			4.26			26.9			3.68			29.5			3.31			33.1			3.44
Lease financing		12.9			7.72			13.0			7.83			13.0			9.00			13.2			9.07			13.6			9.54
Foreign		36.4			2.65			33.6			2.83			31.0			3.57			30.3			3.15			29.0			3.62
Total commercial		326.4			4.37			320.8			4.33			318.0			4.42			318.1			4.37			321.4			4.78
Consumer:
Real estate 1-4 family first mortgage		224.9			4.97			229.6			5.01			228.8			5.06			231.2			5.16			237.5			5.24
Real estate 1-4 family junior lien mortgage		91.9			4.25			94.7			4.35			97.7			4.37			100.3			4.41			102.7			4.53
Credit card		21.0			12.97			21.5			13.18			21.9			13.44			22.0			13.57			22.2			13.24
Other revolving credit and installment		87.1			6.32			87.5			6.36			87.3			6.48			87.9			6.50			88.6			6.57
Total consumer		424.9			5.48			433.3			5.54			435.7			5.61			441.4			5.68			451.0			5.74
Total loans		751.3			5.00			754.1			5.03			753.7			5.11			759.5			5.13			772.4			5.34
Other		5.0			4.10			5.2			3.90			5.3			3.93			6.0			3.53			6.1			3.44
Total earning assets	$	1,093.5			4.64	%	$	1,083.3			4.73	%	$	1,082.8			4.87	%	$	1,064.9			5.01	%	$	1,069.2			5.14	%
Funding sources
Deposits:
Interest-bearing checking	$	53.3			0.09	%	$	58.5			0.10	%	$	60.9			0.09	%	$	59.7			0.10	%	$	61.2			0.13	%
Market rate and other savings		455.1			0.20			443.6			0.22			431.2			0.25			420.0			0.25			412.1			0.26
Savings certificates		72.1			1.42			74.4			1.39			79.1			1.43			85.0			1.50			89.8			1.44
Other time deposits		13.0			2.03			13.8			2.24			13.4			2.00			14.4			2.33			14.8			1.90
Deposits in foreign offices		57.9			0.23			57.5			0.23			55.5			0.21			52.1			0.24			57.5			0.23
Total interest-bearing deposits		651.4			0.37			647.8			0.38			640.1			0.41			631.2			0.45			635.4			0.45
Short-term borrowings		53.3			0.18			54.8			0.22			50.6			0.24			46.5			0.26			45.1			0.22
Long-term debt		145.5			2.78			150.1			2.95			160.8			2.86			177.1			2.76			195.4			2.52
Other liabilities		11.0			3.03			9.5			3.24			8.3			3.13			6.7			3.39			6.8			3.33
Total interest-bearing liabilities		861.2			0.80			862.2			0.85			859.8			0.89			861.5			0.94			882.7			0.92
Portion of noninterest-bearing funding sources		232.3			-			221.1			-			223.0			-			203.4			-			186.5			-
Total funding sources	$	1,093.5			0.63		$	1,083.3			0.68		$	1,082.8			0.71		$	1,064.9			0.76		$	1,069.2			0.76
Net interest margin on a taxable-equivalent basis					4.01	%					4.05	%					4.16	%					4.25	%					4.38	%
Noninterest-earning assets
Cash and due from banks	$	17.4						17.4						18.0						17.0						17.4
Goodwill		24.8						24.8						24.8						24.8						24.8
Other		115.2						115.7						111.4						113.7						112.8
Total noninterest-earnings assets	$	157.4						157.9						154.2						155.5						155.0
Noninterest-bearing funding sources
Deposits	$	199.3						193.1						197.9						184.8						176.9
Other liabilities		53.2						55.3						52.9						50.1						43.7
Total equity		137.2						130.6						126.4						124.0						120.9
Noninterest-bearing funding sources used to fund earning assets		(232.3	)					(221.1	)					(223.0	)					(203.4	)					(186.5	)
Net noninterest-bearing funding sources	$	157.4						157.9						154.2						155.5						155.0
Total assets	$	1,250.9						1,241.2						1,237.0						1,220.4						1,224.2

(1) Our average prime rate was 3.25% for quarters ended June 30 and March 31, 2011, and December 31, September 30 and June 30, 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.26%, 0.31%, 0.29%, 0.39% and 0.44% for the same quarters, respectively.

- 26 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER LOANS

	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in millions)	2011		2011		2010		2010		2010
Commercial:
Commercial and industrial	$	157,095		150,857		151,284		147,321		146,084
Real estate mortgage		101,458		101,084		99,435		98,755		99,626
Real estate construction		21,374		22,868		25,333		27,911		30,879
Lease financing		12,907		12,937		13,094		12,993		13,492
Foreign (1)		37,855		35,476		32,912		29,691		30,474
Total commercial		330,689		323,222		322,058		316,671		320,555
Consumer:
Real estate 1-4 family first mortgage		222,874		226,509		230,235		228,081		233,812
Real estate 1-4 family junior lien mortgage		89,947		93,041		96,149		99,060		101,327
Credit card		21,191		20,996		22,260		21,890		22,086
Other revolving credit and installment		87,220		87,387		86,565		87,962		88,485
Total consumer		421,232		427,933		435,209		436,993		445,710
Total loans (net of unearned income) (2)	$	751,921		751,155		757,267		753,664		766,265

(1)	Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign if the borrower’s primary address is outside of the United States.
(2)	Includes $38.7 billion, $40.0 billion, $41.4 billion, $43.8 billion and $46.5 billion of purchased credit-impaired (PCI) loans at June 30 and March 31, 2011, and December 31, September 30 and June 30, 2010, respectively. See table on page 28 for detail of PCI loans.

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)

	June 30,			Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in millions)	2011			2011		2010		2010		2010
Nonaccrual loans:
Commercial:
Commercial and industrial	$	2,393			2,653		3,213		4,103		3,843
Real estate mortgage		4,691			5,239		5,227		5,079		4,689
Real estate construction		2,043			2,239		2,676		3,198		3,429
Lease financing		79			95		108		138		163
Foreign		59			86		127		126		115
Total commercial		9,265			10,312		11,351		12,644		12,239
Consumer:
Real estate 1-4 family first mortgage		11,427			12,143		12,289		12,969		12,865
Real estate 1-4 family junior lien mortgage		2,098			2,235		2,302		2,380		2,391
Other revolving credit and installment		255			275		300		312		316
Total consumer		13,780			14,653		14,891		15,661		15,572
Total nonaccrual loans (1)(2)(3)		23,045			24,965		26,242		28,305		27,811
As a percentage of total loans		3.06	%		3.32		3.47		3.76		3.63
Foreclosed assets:
GNMA (4)	$	1,320			1,457		1,479		1,492		1,344
Non-GNMA		3,541			4,055		4,530		4,635		3,650
Total foreclosed assets		4,861			5,512		6,009		6,127		4,994
Total nonperforming assets	$	27,906			30,477		32,251		34,432		32,805
As a percentage of total loans		3.71	%		4.06		4.26		4.57		4.28

(1)	Also 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)	Real estate 1-4 family mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status since they are insured or guaranteed.
(4)	Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the FHA or guaranteed by the VA.

- 27 -

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING

	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in millions)	2011		2011		2010		2010		2010
Total (excluding PCI)(1):	$	17,318		17,901		18,488		18,815		19,384
Less: FHA insured/guaranteed by the VA (2)		14,474		14,353		14,733		14,529		14,387
Less: Student loans guaranteed under the FFELP (3)		1,014		1,120		1,106		1,113		1,122
Total, not government insured/guaranteed	$	1,830		2,428		2,649		3,173		3,875
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	110		338		308		222		540
Real estate mortgage		137		177		104		463		654
Real estate construction		86		156		193		332		471
Foreign		12		16		22		27		21
Total commercial		345		687		627		1,044		1,686
Consumer:
Real estate 1-4 family first mortgage (4)		728		858		941		1,016		1,049
Real estate 1-4 family junior lien mortgage (4)		286		325		366		361		352
Credit card		334		413		516		560		610
Other revolving credit and installment		137		145		199		192		178
Total consumer		1,485		1,741		2,022		2,129		2,189
Total, not government insured/guaranteed	$	1,830		2,428		2,649		3,173		3,875

(1)	The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $9.8 billion, $10.8 billion, $11.6 billion, $13.0 billion, and $15.1 billion, at June 30 and March 31, 2011, and December 31, September 30 and June 30, 2010, 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.
(2)	Represents loans whose repayments are insured by the FHA or guaranteed by the VA.
(3)	Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program (FFELP).
(4)	Includes mortgages held for sale 90 days or more past due and still accruing.

- 28 -

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.

	June 30,						December 31,
(in millions)	2011		2010		2009		2008
Commercial:
Commercial and industrial	$	527		718		1,911		4,580
Real estate mortgage		2,800		2,855		4,137		5,803
Real estate construction		2,188		2,949		5,207		6,462
Foreign		1,501		1,413		1,733		1,859
Total commercial		7,016		7,935		12,988		18,704
Consumer:
Real estate 1-4 family first mortgage		31,448		33,245		38,386		39,214
Real estate 1-4 family junior lien mortgage		229		250		331		728
Other revolving credit and installment		-		-		-		151
Total consumer		31,677		33,495		38,717		40,093
Total PCI loans (carrying value)	$	38,693		41,430		51,705		58,797

- 29 -

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

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. 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 and industrial, 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 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. This removal method assumes that the amount received from resolution approximates pool performance expectations. The accretable yield percentage is unaffected by the resolution and any changes in the effective yield for the remaining loans in the pool are addressed by our quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no release of the nonaccretable difference for the pool because 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, and removed from PCI accounting, 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.

							Other
(in millions)	Commercial			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 credit-related 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 credit-related 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
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(89	)		-			-			(89	)
Loans resolved by sales to third parties (2)		(25	)		-			-			(25	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(189	)		-			(21	)		(210	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(95	)		(789	)		(160	)		(1,044	)
Balance at June 30, 2011	$	1,192			10,136			733			12,061
Balance at March 31,2011	$	1,395			10,626			829			12,850
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(36	)		-			-			(36	)
Loans resolved by sales to third parties (2)		(7	)		-			-			(7	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(95	)		-			-			(95	)
Use of nonaccretable difference due to:									��
Losses from loan resolutions and write-downs (4)		(65	)		(490	)		(96	)		(651	)
Balance at June 30, 2011	$	1,192			10,136			733			12,061

(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 to accretable yield for loans with increased cash flow estimates will result in increased interest income as a prospective yield adjustment over the remaining life of the loan or pool of loans.
(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.

- 30 -

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 recognized in interest income using an effective yield method over the remaining life of the loan, or pool of loans. 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 regular evaluations cash flows expected to be collected;

• 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 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 regular evaluations of cash flows expected to be collected.

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

				Six
	Quarter			months
	ended			ended
	June 30,			June 30,			Year ended Dec. 31,
(in millions)	2011			2011			2010			2009
Total, beginning of period	$	15,881			16,714			14,559			10,447
Accretion into interest income (1)		(556	)		(1,102	)		(2,392	)		(2,601	)
Accretion into noninterest income due to sales (2)		(31	)		(186	)		(43	)		(5	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		95			210			3,399			441
Changes in expected cash flows that do not affect nonaccretable difference (3)		(518	)		(765	)		1,191			6,277
Total, end of period	$	14,871			14,871			16,714			14,559

(1)	Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2)	Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3)	Represents changes in cash flows expected to be collected due to changes in interest rates on variable rate PCI loans, changes in prepayment assumptions and the impact of modifications.

CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES

When it is estimated that the cash flows expected to be collected 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.

						Other
(in millions)	Commercial			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	)
Balance at December 31, 2010		266			-		32			298
Provision for losses due to credit deterioration		55			-		38			93
Charge-offs		(106	)		-		(12	)		(118	)
Balance at June 30, 2011	$	215			-		58			273
Balance at March 31, 2011	$	234			-		23			257
Provision for losses due to credit deterioration		44			-		39			83
Charge-offs		(63	)		-		(4	)		(67	)
Balance at June 30, 2011	$	215			-		58			273

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Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)

	June 30, 2011
	PCI loans										All other loans
								Ratio of					Ratio of
	Adjusted							carrying					carrying
	unpaid		Current					value to					value to
	principal		LTV			Carrying		current			Carrying		current
(in millions)	balance (2)		ratio (3)			value (4)		value (5)			value (4)		value (5)
California	$	26,851		119	%	$	20,464		90	%	$	19,011		84	%
Florida		3,621		124			2,759		89			4,002		103
New Jersey		1,384		93			1,231		82			2,450		79
Texas		356		79			325		72			1,589		65
New York		772		92			681		80			1,062		81
Other states		6,499		110			5,239		88			10,774		87
Total Pick-a-Pay loans	$	39,483				$	30,699				$	38,888

(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 2011.
(2)	Adjusted unpaid principal balance includes 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 LTV ratio is calculated as the adjusted unpaid principal balance 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.
(4)	Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include 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.
(5)	The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.

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Wells Fargo & Company and Subsidiaries

NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS

	June 30,		Mar. 31,		Dec. 31,
(in millions)	2011		2011		2010
Commercial:
Commercial and industrial, commercial real estate and foreign PCI loans (1)	$	7,016		7,507		7,935
Total commercial		7,016		7,507		7,935
Consumer:
Pick-a-Pay mortgage (1)		69,587		71,506		74,815
Liquidating home equity		6,266		6,568		6,904
Legacy Wells Fargo Financial indirect auto		3,881		4,941		6,002
Legacy Wells Fargo Financial debt consolidation		17,730		18,344		19,020
Education Finance – government guaranteed (2)		16,295		16,907		17,510
Other PCI loans (1)		978		1,048		1,118
Total consumer		114,737		119,314		125,369
Total non-strategic and liquidating loan portfolios	$	121,753		126,821		133,304

(1)	Net of purchase accounting adjustments related to PCI loans.
(2)	Effective first quarter 2011, we included our education finance government guaranteed loan portfolio as there is no longer a U.S. Government guaranteed student loan program available to private financial institutions, pursuant to legislation in 2010. Prior periods have been adjusted to reflect this change.

HOME EQUITY PORTFOLIOS (1)

					% of loans
					two payments					Loss rate (annualized)
	Outstanding balances				or more past due					Quarter ended
	June 30,		Dec. 31,		June 30,			Dec. 31,		June 30,		Dec. 31,
(in millions)	2011		2010		2011			2010		2011		2010
Core portfolio (2)
California	$	26,651		27,850		2.98	%		3.30		3.69		3.95
Florida		11,200		12,036		4.91			5.46		5.23		5.84
New Jersey		8,010		8,629		3.57			3.44		2.05		1.83
Virginia		5,358		5,667		2.19			2.33		1.85		1.70
Pennsylvania		5,161		5,432		2.39			2.48		1.49		1.11
Other		48,037		50,976		2.60			2.83		2.70		2.86
Total		104,417		110,590		2.99			3.24		3.08		3.24
Liquidating portfolio
California		2,233		2,555		5.69			6.66		12.73		13.48
Florida		288		330		6.97			8.85		10.52		10.59
Arizona		127		149		7.01			6.91		14.01		18.45
Texas		106		125		1.12			2.02		3.40		2.95
Minnesota		80		91		3.87			5.39		7.83		8.73
Other		3,432		3,654		4.04			4.53		6.73		6.46
Total		6,266		6,904		4.77			5.54		9.22		9.49
Total core and liquidating portfolios	$	110,683		117,494		3.09			3.37		3.43		3.61

(1)	Consists predominantly of real estate 1-4 family junior lien mortgages and first and junior lines of credit secured by real estate, excluding PCI loans.
(2)	Includes $1.6 billion and $1.7 billion at June 30, 2011, and December 31, 2010, respectively, associated with the Pick-a-Pay portfolio.

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Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES

							Six months
	Quarter ended June 30,						ended June 30,
(in millions)	2011			2010			2011			2010
Balance, beginning of period	$	22,383			25,656			23,463			25,031
Provision for credit losses		1,838			3,989			4,048			9,319
Interest income on certain impaired loans (1)		(79	)		(62	)		(162	)		(136	)
Loan charge-offs:
Commercial:
Commercial and industrial		(365	)		(810	)		(833	)		(1,577	)
Real estate mortgage		(185	)		(364	)		(364	)		(645	)
Real estate construction		(99	)		(289	)		(218	)		(694	)
Lease financing		(7	)		(31	)		(20	)		(65	)
Foreign		(57	)		(52	)		(96	)		(99	)
Total commercial		(713	)		(1,546	)		(1,531	)		(3,080	)
Consumer:
Real estate 1-4 family first mortgage		(1,064	)		(1,140	)		(2,079	)		(2,537	)
Real estate 1-4 family junior lien mortgage		(968	)		(1,239	)		(2,014	)		(2,735	)
Credit card		(378	)		(639	)		(826	)		(1,335	)
Other revolving credit and installment		(391	)		(542	)		(891	)		(1,292	)
Total consumer		(2,801	)		(3,560	)		(5,810	)		(7,899	)
Total loan charge-offs		(3,514	)		(5,106	)		(7,341	)		(10,979	)
Loan recoveries:
Commercial:
Commercial and industrial		111			121			225			238
Real estate mortgage		57			4			84			14
Real estate construction		27			51			63			62
Lease financing		6			4			13			9
Foreign		10			10			21			21
Total commercial		211			190			406			344
Consumer:
Real estate 1-4 family first mortgage		155			131			266			217
Real estate 1-4 family junior lien mortgage		59			55			111			102
Credit card		84			60			150			113
Other revolving credit and installment		167			181			360			384
Total consumer		465			427			887			816
Total loan recoveries		676			617			1,293			1,160
Net loan charge-offs (2)		(2,838	)		(4,489	)		(6,048	)		(9,819	)
Allowances related to business combinations/other (3)		(42	)		(9	)		(39	)		690
Balance, end of period	$	21,262			25,085			21,262			25,085
Components:
Allowance for loan losses	$	20,893			24,584			20,893			24,584
Allowance for unfunded credit commitments		369			501			369			501
Allowance for credit losses (4)	$	21,262			25,085			21,262			25,085
Net loan charge-offs (annualized) as a percentage of average total loans (2)		1.52	%		2.33			1.62			2.52
Allowance for loan losses as a percentage of total loans (4)		2.78			3.21			2.78			3.21
Allowance for credit losses as a percentage of total loans (4)		2.83			3.27			2.83			3.27

(1)	Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize reductions in allowance 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 for the period ended June 30, 2010, related to the adoption of consolidation accounting guidance on January 1, 2010.
(4)	The allowance for credit losses includes $273 million and $225 million at June 30, 2011 and 2010, 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
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2011			2011			2010			2010			2010
Balance, beginning of quarter	$	22,383			23,463			24,372			25,085			25,656
Provision for credit losses		1,838			2,210			2,989			3,445			3,989
Interest income on certain impaired loans (1)		(79	)		(83	)		(63	)		(67	)		(62	)
Loan charge-offs:
Commercial:
Commercial and industrial		(365	)		(468	)		(610	)		(588	)		(810	)
Real estate mortgage		(185	)		(179	)		(270	)		(236	)		(364	)
Real estate construction		(99	)		(119	)		(199	)		(296	)		(289	)
Lease financing		(7	)		(13	)		(26	)		(29	)		(31	)
Foreign		(57	)		(39	)		(50	)		(49	)		(52	)
Total commercial		(713	)		(818	)		(1,155	)		(1,198	)		(1,546	)
Consumer:
Real estate 1-4 family first mortgage		(1,064	)		(1,015	)		(1,199	)		(1,164	)		(1,140	)
Real estate 1-4 family junior lien mortgage		(968	)		(1,046	)		(1,059	)		(1,140	)		(1,239	)
Credit card		(378	)		(448	)		(505	)		(556	)		(639	)
Other revolving credit and installment		(391	)		(500	)		(573	)		(572	)		(542	)
Total consumer		(2,801	)		(3,009	)		(3,336	)		(3,432	)		(3,560	)
Total loan charge-offs		(3,514	)		(3,827	)		(4,491	)		(4,630	)		(5,106	)
Loan recoveries:
Commercial:
Commercial and industrial		111			114			110			79			121
Real estate mortgage		57			27			36			18			4
Real estate construction		27			36			28			20			51
Lease financing		6			7			5			6			4
Foreign		10			11			22			10			10
Total commercial		211			195			201			133			190
Consumer:
Real estate 1-4 family first mortgage		155			111			175			130			131
Real estate 1-4 family junior lien mortgage		59			52			54			55			55
Credit card		84			66			53			52			60
Other revolving credit and installment		167			193			169			165			181
Total consumer		465			422			451			402			427
Total loan recoveries		676			617			652			535			617
Net loan charge-offs		(2,838	)		(3,210	)		(3,839	)		(4,095	)		(4,489	)
Allowances related to business combinations/other		(42	)		3			4			4			(9	)
Balance, end of quarter	$	21,262			22,383			23,463			24,372			25,085
Components:
Allowance for loan losses	$	20,893			21,983			23,022			23,939			24,584
Allowance for unfunded credit commitments		369			400			441			433			501
Allowance for credit losses	$	21,262			22,383			23,463			24,372			25,085
Net loan charge-offs (annualized) as a percentage of average total loans		1.52	%		1.73			2.02			2.14			2.33
Allowance for loan losses as a percentage of:
Total loans		2.78			2.93			3.04			3.18			3.21
Nonaccrual loans		91			88			88			85			88
Nonaccrual loans and other nonperforming assets		75			72			71			69			75
Allowance for credit losses as a percentage of:
Total loans		2.83			2.98			3.10			3.23			3.27
Nonaccrual loans		92			90			89			86			90
Nonaccrual loans and other nonperforming assets		76			73			72			70			76

(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.

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Wells Fargo & Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

	Six months ended June 30,
(in millions)	2011			2010
Balance, beginning of period	$	127,889			114,359
Cumulative effect from change in accounting for VIEs (1)		-			183
Wells Fargo net income		7,707			5,609
Wells Fargo other comprehensive income (loss), net of tax, related to:
Translation adjustments		18			(13	)
Investment securities		748			1,672
Derivative instruments and hedging activities		(110	)		144
Defined benefit pension plans		28			32
Common stock issued		801			865
Common stock repurchased		(1,072	)		(68	)
Preferred stock released by ESOP		660			505
Preferred stock issued		2,501			-
Common stock warrants repurchased		-			(540	)
Common stock dividends		(1,269	)		(520	)
Preferred stock dividends and other		(409	)		(359	)
Noncontrolling interests and other, net		424			(471	)
Balance, end of period	$	137,916			121,398

(1) 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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER TIER 1 COMMON EQUITY UNDER BASEL I (1)

		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in billions)		2011			2011			2010			2010			2010
Total equity		$	137.9			134.9			127.9			125.2			121.4
Noncontrolling interests			(1.5	)		(1.5	)		(1.5	)		(1.5	)		(1.6	)
Total Wells Fargo stockholders’ equity			136.4			133.4			126.4			123.7			119.8
Adjustments:
Preferred equity			(10.6	)		(10.6	)		(8.1	)		(8.1	)		(8.1	)
Goodwill and intangible assets (other than MSRs)			(34.6	)		(35.1	)		(35.5	)		(36.1	)		(36.7	)
Applicable deferred taxes			4.1			4.2			4.3			4.7			5.0
MSRs over specified limitations			(0.9	)		(0.9	)		(0.9	)		(0.9	)		(1.0	)
Cumulative other comprehensive income			(5.3	)		(4.9	)		(4.6	)		(5.4	)		(4.8	)
Other			(0.3	)		(0.1	)		(0.3	)		(0.3	)		(0.3	)
Tier 1 common equity	(A)	$	88.8			86.0			81.3			77.6			73.9
Total risk-weighted assets (2)	(B)	$	969.5			962.9			980.0			968.4			970.8
Tier 1 common equity to total risk-weighted assets	(A)/(B)		9.16	%		8.93			8.30			8.01			7.61

(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 June 30, 2011, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $802.4 billion and derivative and off-balance sheet risk-weighted assets of $167.1 billion.

Wells Fargo & Company and Subsidiaries
TIER 1 COMMON EQUITY UNDER BASEL III (ESTIMATED) (1)

		June 30,
(in billions)		2011
Tier 1 common equity under Basel I		$	88.8
Adjustments from Basel I to Basel III:
Cumulative other comprehensive income (1)			5.3
Threshold deductions defined under Basel III (1)(2)			(4.6	)
Other			(0.3	)
Tier 1 common equity anticipated under Basel III	(C)		89.2
Total risk-weighted assets anticipated under Basel III (3)	(D)	$	1,212.9
Tier 1 common equity to total risk-weighted assets anticipated under Basel III	(C)/(D)		7.35	%

(1)	Volatility in interest rates can have a significant impact on the valuation of cumulative other comprehensive income and MSRs and therefore, impact adjustments under Basel III in future reporting periods.
(2)	Threshold deductions under Basel III include individual and aggregate limitations, as a percentage of Tier 1 common equity (as defined under Basel III), with respect to MSRs, deferred tax assets and investments in unconsolidated financial companies.
(3)	Under current Basel proposals, risk-weighted assets incorporate different classifications of assets, with certain risk weights based on a borrower’s credit rating or Wells Fargo’s own risk models, along with adjustments to address a combination of credit/counterparty, operational and market risks, and other Basel III elements. The amount of risk-weighted assets anticipated under Basel III is preliminary and subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory authorities.

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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)	2011		2010		2011			2010		2011		2010		2011			2010			2011		2010
Quarter ended June 30,
Net interest income (3)	$	7,359		8,063		2,968			3,028		691		684		(340	)		(326	)		10,678		11,449
Provision (reversal of provision) for credit losses		1,927		3,348		(97	)		635		61		81		(53	)		(75	)		1,838		3,989
Noninterest income		5,208		5,543		2,663			2,746		2,395		2,183		(558	)		(527	)		9,708		9,945
Noninterest expense		7,418		7,678		2,766			2,873		2,487		2,350		(196	)		(155	)		12,475		12,746
Income (loss) before income tax expense (benefit)		3,222		2,580		2,962			2,266		538		436		(649	)		(623	)		6,073		4,659
Income tax expense (benefit)		1,031		783		1,012			803		204		165		(246	)		(237	)		2,001		1,514
Net income (loss) before noncontrolling interests		2,191		1,797		1,950			1,463		334		271		(403	)		(386	)		4,072		3,145
Less: Net income from noncontrolling interests		104		81		19			1		1		1		-			-			124		83
Net income (loss) (4)	$	2,087		1,716		1,931			1,462		333		270		(403	)		(386	)		3,948		3,062
Average loans	$	498.2		534.3		243.1			228.2		43.5	��	42.6		(33.5	)		(32.6	)		751.3		772.5
Average assets		752.5		771.3		415.7			369.5		147.7		141.0		(65.0	)		(57.6	)		1,250.9		1,224.2
Average core deposits		552.0		532.6		190.6			162.3		126.0		121.5		(61.1	)		(54.6	)		807.5		761.8
Six months ended June 30,
Net interest income (3)	$	14,902		16,316		5,723			5,582		1,387		1,348		(683	)		(650	)		21,329		22,596
Provision for credit losses		3,992		7,867		37			1,445		102		144		(83	)		(137	)		4,048		9,319
Noninterest income		10,302		11,254		5,368			5,615		4,849		4,429		(1,133	)		(1,052	)		19,386		20,246
Noninterest expense		15,023		14,883		5,566			5,558		5,046		4,740		(427	)		(318	)		25,208		24,863
Income (loss) before income tax expense (benefit)		6,189		4,820		5,488			4,194		1,088		893		(1,306	)		(1,247	)		11,459		8,660
Income tax expense (benefit)		1,773		1,560		1,884			1,491		412		338		(496	)		(474	)		3,573		2,915
Net income (loss) before noncontrolling interests		4,416		3,260		3,604			2,703		676		555		(810	)		(773	)		7,886		5,745
Less: Net income from noncontrolling interests		154		129		21			4		4		3		-			-			179		136
Net income (loss) (4)	$	4,262		3,131		3,583			2,699		672		552		(810	)		(773	)		7,707		5,609
Average loans	$	504.0		542.3		238.9			232.6		43.1		43.2		(33.3	)		(33.2	)		752.7		784.9
Average assets		756.2		774.0		407.7			369.5		147.1		139.4		(64.9	)		(57.8	)		1,246.1		1,225.1
Average core deposits		550.1		532.0		187.7			162.0		125.7		121.3		(61.3	)		(54.8	)		802.2		760.5

(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.

- 38 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(income/expense in millions, average balances in billions)	2011			2011			2010			2010			2010
COMMUNITY BANKING
Net interest income (2)	$	7,359			7,543			7,751			7,818			8,063
Provision for credit losses		1,927			2,065			2,785			3,155			3,348
Noninterest income		5,208			5,094			5,721			5,629			5,543
Noninterest expense		7,418			7,605			7,855			7,333			7,678
Income before income tax expense		3,222			2,967			2,832			2,959			2,580
Income tax expense		1,031			742			836			951			783
Net income before noncontrolling interests		2,191			2,225			1,996			2,008			1,797
Less: Net income from noncontrolling interests		104			50			72			73			81
Segment net income	$	2,087			2,175			1,924			1,935			1,716
Average loans	$	498.2			509.8			514.1			522.2			534.3
Average assets		752.5			759.9			771.6			770.0			771.3
Average core deposits		552.0			548.1			544.4			537.1			532.6
WHOLESALE BANKING
Net interest income (2)	$	2,968			2,755			2,965			2,927			3,028
Provision (reversal of provision) for credit losses		(97	)		134			195			280			635
Noninterest income		2,663			2,705			2,875			2,461			2,746
Noninterest expense		2,766			2,800			2,992			2,719			2,873
Income before income tax expense		2,962			2,526			2,653			2,389			2,266
Income tax expense		1,012			872			958			866			803
Net income before noncontrolling interests		1,950			1,654			1,695			1,523			1,463
Less: Net income from noncontrolling interests		19			2			5			11			1
Segment net income	$	1,931			1,652			1,690			1,512			1,462
Average loans	$	243.1			234.7			229.6			227.3			228.2
Average assets		415.7			399.6			384.4			371.8			369.5
Average core deposits		190.6			184.8			185.1			170.8			162.3
WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	691			696			676			683			684
Provision for credit losses		61			41			113			77			81
Noninterest income		2,395			2,454			2,365			2,229			2,183
Noninterest expense		2,487			2,559			2,608			2,420			2,350
Income before income tax expense		538			550			320			415			436
Income tax expense		204			208			121			157			165
Net income before noncontrolling interests		334			342			199			258			271
Less: Net income from noncontrolling interests		1			3			2			2			1
Segment net income	$	333			339			197			256			270
Average loans	$	43.5			42.7			43.0			42.6			42.6
Average assets		147.7			146.5			140.2			138.2			141.0
Average core deposits		126.0			125.4			121.5			120.7			121.5
OTHER (3)
Net interest income (2)	$	(340	)		(343	)		(329	)		(330	)		(326	)
Provision for credit losses		(53	)		(30	)		(104	)		(67	)		(75	)
Noninterest income		(558	)		(575	)		(530	)		(543	)		(527	)
Noninterest expense		(196	)		(231	)		(115	)		(219	)		(155	)
Loss before income tax benefit		(649	)		(657	)		(640	)		(587	)		(623	)
Income tax benefit		(246	)		(250	)		(243	)		(223	)		(237	)
Net loss before noncontrolling interests		(403	)		(407	)		(397	)		(364	)		(386	)
Less: Net income from noncontrolling interests		-			-			-			-			-
Other net loss	$	(403	)		(407	)		(397	)		(364	)		(386	)
Average loans	$	(33.5	)		(33.1	)		(33.0	)		(32.6	)		(32.6	)
Average assets		(65.0	)		(64.8	)		(59.2	)		(59.6	)		(57.6	)
Average core deposits		(61.1	)		(61.5	)		(56.2	)		(56.6	)		(54.6	)
CONSOLIDATED COMPANY
Net interest income (2)	$	10,678			10,651			11,063			11,098			11,449
Provision for credit losses		1,838			2,210			2,989			3,445			3,989
Noninterest income		9,708			9,678			10,431			9,776			9,945
Noninterest expense		12,475			12,733			13,340			12,253			12,746
Income before income tax expense		6,073			5,386			5,165			5,176			4,659
Income tax expense		2,001			1,572			1,672			1,751			1,514
Net income before noncontrolling interests		4,072			3,814			3,493			3,425			3,145
Less: Net income from noncontrolling interests		124			55			79			86			83
Wells Fargo net income	$	3,948			3,759			3,414			3,339			3,062
Average loans	$	751.3			754.1			753.7			759.5			772.5
Average assets		1,250.9			1,241.2			1,237.0			1,220.4			1,224.2
Average core deposits		807.5			796.8			794.8			772.0			761.8

(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 fourth quarter 2010, we realigned certain lending businesses into Wholesale Banking from Community Banking to reflect our previously announced restructuring of Wells Fargo Financial. In first quarter 2011, we realigned a private equity business into Wholesale Banking from Community Banking. 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.

- 39 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2011			2011			2010			2010			2010
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	15,648			14,467			12,486			13,251			15,544
Servicing from securitizations or asset transfers		740			1,262			1,052			1,043			943
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		(1,075	)		499			1,613			(1,132	)		(2,661	)
Other changes in fair value (2)		(535	)		(580	)		(684	)		(676	)		(575	)
Total changes in fair value		(1,610	)		(81	)		929			(1,808	)		(3,236	)
Fair value, end of quarter	$	14,778			15,648			14,467			12,486			13,251

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

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2011			2011			2010			2010			2010
Amortized MSRs:
Balance, beginning of quarter	$	1,432			1,422			1,013			1,037			1,069
Purchases		36			45			36			14			7
Servicing from securitizations or asset transfers		27			29			432			18			17
Amortization		(63	)		(64	)		(59	)		(56	)		(56	)
Balance, end of quarter		1,432			1,432			1,422			1,013			1,037
Valuation Allowance:
Balance, beginning of quarter		(9	)		(3	)		-			-			-
Provision for MSRs in excess of fair value		(1	)		(6	)		(3	)		-			-
Balance, end of quarter		(10	)		(9	)		(3	)		-			-
Amortized MSRs, net	$	1,422			1,423			1,419			1,013			1,037
Fair value of amortized MSRs:
Beginning of quarter	$	1,898			1,812			1,349			1,307			1,283
End of quarter		1,805			1,898			1,812			1,349			1,307

- 40 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2011			2011			2010			2010			2010
Servicing income, net:
Servicing fees (1)	$	1,102			1,137			1,129			1,192			1,223
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(1,075	)		499			1,613			(1,132	)		(2,661	)
Other changes in fair value (3)		(535	)		(580	)		(684	)		(676	)		(575	)
Total changes in fair value of MSRs carried at fair value		(1,610	)		(81	)		929			(1,808	)		(3,236	)
Amortization		(63	)		(64	)		(59	)		(56	)		(56	)
Provision for MSRs in excess of fair value		(1	)		(6	)		(3	)		-			-
Net derivative gains (losses) from economic hedges (4)		1,449			(120	)		(1,756	)		1,188			3,287
Total servicing income, net	$	877			866			240			516			1,218
Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	374			379			(143	)		56			626

(1)	Includes contractually specified servicing fees, late charges and other ancillary revenues.
(2)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates and costs to service, including delinquency and foreclosure costs.
(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.

	June 30,			Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in billions)	2011			2011		2010		2010		2010
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,464			1,453		1,429		1,433		1,437
Owned loans serviced		338			346		371		365		365
Subservicing		8			9		9		10		10
Total residential servicing		1,810			1,808		1,809		1,808		1,812
Commercial mortgage servicing:
Serviced for others		402			406		408		439		441
Owned loans serviced		101			101		99		99		100
Subservicing		14			14		13		10		10
Total commercial servicing		517			521		520		548		551
Total managed servicing portfolio	$	2,327			2,329		2,329		2,356		2,363
Total serviced for others	$	1,866			1,859		1,837		1,872		1,878
Ratio of MSRs to related loans serviced for others		0.87	%		0.92		0.86		0.72		0.76
Weighted-average note rate (mortgage loans serviced for others)		5.26			5.31		5.39		5.46		5.53

(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
	June 30,			Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in billions)	2011			2011		2010		2010		2010
Application data:
Wells Fargo first mortgage quarterly applications	$	109			102		158		194		143
Refinances as a percentage of applications		55	%		61		73		80		58
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	51			45		73		101		68
Residential Real Estate Originations:
Wells Fargo first mortgage loans:
Retail	$	34			49		70		53		44
Correspondent/Wholesale		29			34		57		47		36
Other (1)		1			1		1		1		1
Total quarter-to-date	$	64			84		128		101		81
Total year-to-date	$	148			84		386		258		157

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

- 41 -

Wells Fargo & Company and Subsidiaries

CHANGES IN LIABILITY FOR MORTGAGE LOAN REPURCHASE LOSSES

	Quarter ended									Six months ended
	June 30,			Mar. 31,			June 30,			June 30,			June 30,
(in millions)	2011			2011			2010			2011			2010
Balance, beginning of period	$	1,207			1,289			1,263			1,289			1,033
Provision for repurchase losses:
Loan sales		20			35			36			55			80
Change in estimate - primarily due to credit deterioration		222			214			346			436			704
Total additions		242			249			382			491			784
Losses		(261	)		(331	)		(270	)		(592	)		(442	)
Balance, end of period	$	1,188			1,207			1,375			1,188			1,375

OUTSTANDING REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS

	Government				Mortgage
	sponsored				insurance
($ in millions)	entities (1)		Private		rescissions (2)		Total
June 30, 2011
Number of loans		6,876		695		2,019		9,590
Original loan balance (3)	$	1,565		230		444		2,239
March 31, 2011
Number of loans		6,210		1,973		2,885		11,068
Original loan balance (3)	$	1,395		424		674		2,493
December 31, 2010
Number of loans		6,501		2,899		3,248		12,648
Original loan balance (3)	$	1,467		680		801		2,948
September 30, 2010
Number of loans		9,887		3,605		3,035		16,527
Original loan balance (3)	$	2,212		882		748		3,842
June 30, 2010
Number of loans		12,536		3,160		2,979		18,675
Original loan balance (3)	$	2,840		707		760		4,307

(1)	Includes repurchase demands of 892 and $179 million, 685 and $132 million, 1,495 and $291 million, 2,263 and $437 million, and 2,141 and $417 million, for June 30 and March 31, 2011, September 30, and June 30, 2010, respectively, received from investors on mortgage servicing rights acquired from other originators. We generally have the right of recourse against the seller and may be able to recover losses related to such repurchase demands subject to 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. Similar to repurchase demands, we evaluate mortgage insurance rescission notices for validity and appeal for reinstatement if the rescission was not based on a contractual breach.
(3)	While original loan balance related to these demands is presented above, the establishment of the repurchase liability 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.