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

Exhibit 99

          

Media	Investors
Janis Smith	Bob Strickland
(415)396-7711	(415)396-0523

Tuesday, April 18, 2006
WELLS FARGO REPORTS RECORD QUARTERLY EPS, REVENUE
Quarterly Net Income Exceeds $2 Billion for First Time

• Record diluted earnings per share of $1.19, up 10 percent from prior year’s $1.08, up 18 percent (annualized) from fourth quarter 2005

• Record net income of $2.02 billion, up 9 percent from prior year’s $1.86 billion, up 18 percent (annualized) from fourth quarter 2005; first time quarterly earnings exceeded $2 billion

• Return on equity of 19.9 percent

• Revenue up 6 percent from prior year; 17 percent revenue growth in businesses other than Wells Fargo Home Mortgage (Home Mortgage)

• Average loans up 8 percent from prior year despite sale of $51 billion of adjustable rate mortgages (ARMs) since the beginning of 2005

• Average core deposits up 10 percent from prior year

• Net charge-offs down $270 million from prior quarter and 26 percent from prior year

	First Quarter
							%
	2006			2005			Change
Earnings
Diluted earnings per share	$	1.19		$	1.08			10	%
Net income (in billions)		2.02			1.86			9
Asset Quality
Net charge-offs as % of avg. total loans		.56	%		.83	%		(33	)
Nonperforming assets as % of total loans*		.60			.48			25
Other
Revenue (in billions)	$	8.56		$	8.09			6
Average loans (in billions)		311.1			287.3			8
Average core deposits (in billions)		254.0			231.8			10

*As a result of a change in regulatory reporting requirements effective January 1, 2006, $227 million of foreclosed real estate securing Government National Mortgage Association (GNMA) loans has been classified as nonperforming. These assets are fully collectible because the corresponding GNMA loans are insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veteran Affairs.

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SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $1.19 for first quarter 2006, compared with $1.08 in first quarter 2005, up 10 percent. Net income was a record $2.02 billion, up 9 percent from $1.86 billion in first quarter 2005.

“Driven by our time-tested vision and business model – to satisfy all our customers’ financial needs and help them succeed financially – this was a milestone quarter for our outstanding team, not just because they again delivered double-digit growth in earnings per share, but because we surpassed $2 billion in quarterly earnings for the first time in our Company’s history,” said Chairman and CEO Dick Kovacevich. “It wasn’t that long ago that we made only $2 billion in an entire year. Revenue growth, our industry’s single most important measure of long-term success, was six percent and the combined revenue of our businesses other than Home Mortgage grew at a strong double-digit pace, up 17 percent. Our mortgage business for the first time exceeded $1 trillion in owned servicing and continued to be, as it has been since 1992, the nation’s largest retail mortgage originator. The Office of the Comptroller of the Currency rated Wells Fargo Bank, N.A. ‘Outstanding’ for Community Reinvestment, the highest possible rating, earned by fewer than one of every five national banks – andFortunemagazine ranked Wells Fargo America’s #1 ‘Most Admired’ large bank.”

Financial Performance
Diluted earnings per share were a record $1.19, up 10 percent from $1.08 in first quarter 2005 and up 18 percent (annualized) from $1.14 in fourth quarter 2005. First quarter results for the first time were reduced by $52 million, or $.02 per share, for expensing stock options required under FAS 123R. Due to the $33 million immediate expensing of stock options for retirement-eligible team members, the $.02 per share for stock option expense in first quarter was $.01 per share more than the Company’s expected $.01 per share quarterly option expense for the remainder of 2006.

During first quarter 2006, the Company adopted fair value accounting for mortgage servicing rights (MSRs), which resulted in an addition to equity of $158 million pre-tax ($101 million after-tax). This was offset by $184 million in net MSRs valuation losses recorded in earnings (higher MSRs valuation during the quarter less economic hedging losses in a rising rate environment). The interest rate effect on the fair value of mortgage servicing during the quarter, therefore, was negligible, although part of the MSRs fair value change – the $158 million pre-tax increase – was booked directly to the equity account and part – the $184 million net MSRs valuation loss – was recorded as a charge to earnings. As previously announced, the Company sold Island Finance’s operations in Puerto Rico, which resulted in a pre-tax gain of $127 million.

“We’re very pleased with our first quarter results,” said Chief Financial Officer Howard Atkins. “They reflect a continuation of the same trends we’ve seen for many quarters now – double-digit earnings growth, with net income exceeding $2.0 billion for the first time ever. We had solid, broad-based, and, in many businesses, accelerating revenue growth, with revenue in businesses other than Home Mortgage up a combined 17 percent from a year ago and up 20 percent (annualized) from fourth quarter 2005. Our net interest margin was stable and reflected our success in growing core deposits as well as actions we took in 2005 and in first quarter 2006 to shed lower-yielding assets and boost earning asset yields. Credit quality was exceptionally strong and we continued to invest for future growth by adding more sales people, more stores, new technology and by sales, at a loss, of investment securities and low-

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yielding ARMs. Many of our businesses achieved double-digit, year-over-year profit growth, including businesses that serve our retail and small business customers in Community Banking – our regional banking groups, credit card, business direct, education financial services, and corporate trust; businesses that serve mid-sized and large corporations in Wholesale Banking – commercial banking, asset management, commercial real estate, international trade services, insurance, Eastdil Secured and specialized financial services; and our consumer finance business, Wells Fargo Financial.”

Revenue
Revenue of $8.6 billion for first quarter 2006 grew $466 million, or 6 percent, from a year ago. Home Mortgage revenue declined $665 million from $1.5 billion in first quarter 2005 to $853 million in first quarter 2006. Combined revenue of businesses other than Home Mortgage grew 17 percent from first quarter 2005 to $7.7 billion in first quarter 2006. “Revenue growth was broad based and included double-digit, year-over-year growth in regional banking, Wells Fargo Financial, and many of our wholesale/commercial businesses,” said Atkins. Revenue growth was driven by continued growth in average loans (up 8 percent in total year-over-year and up 17 percent excluding real estate 1-4 family loans) and in average core deposits (up 10 percent year-over-year), a stable net interest margin and growth in assets under management, up 16 percent year-over-year.

On a linked-quarter basis, total revenue was up 3 percent (annualized). Home Mortgage revenue declined $296 million from $1.15 billion in fourth quarter 2005 largely due to the net MSRs valuation loss that went through earnings. Combined revenue of businesses other than Home Mortgage grew 20 percent (annualized) from fourth quarter 2005, with virtually every business achieving accelerated sales and revenue growth on a linked-quarter basis.

Loans
Average loans of $311.1 billion in first quarter 2006 increased 8 percent from first quarter 2005 and 7 percent (annualized) on a linked-quarter basis. Excluding real estate 1-4 family first mortgages – the loan category affected by the sale of $51 billion of ARMs since the beginning of 2005 – total average loans grew by $34.1 billion, or 17 percent, from first quarter 2005 and 13 percent (annualized) on a linked-quarter basis.

Average commercial and commercial real estate loans increased $11.4 billion, or 11 percent, from first quarter 2005 and increased $2.6 billion, or 10 percent (annualized), from fourth quarter 2005 – the sixth consecutive quarter of double-digit, linked-quarter growth. Commercial loan growth was broad based across most of the Company’s businesses, including small business direct, middle market, commercial real estate, asset-based lending, trade finance and specialized financial services.

Average consumer loans increased $10.8 billion, or 6 percent, from first quarter 2005 (up 21 percent excluding real estate 1-4 family first mortgages), and grew $2.1 billion, or 5 percent (annualized), on a linked-quarter basis (up 14 percent excluding 1-4 family first mortgages). Home equity, credit card, and other revolving credit and installment loans grew at double-digit rates (annualized) on a linked-quarter basis. Linked-quarter loan growth was also reduced by the sale of Island Finance’s operations in Puerto Rico, which had $636 million in receivables.

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Deposits
“The continued strong growth in core deposits and checking accounts was a result of strong new account growth and improved customer retention rates,” said Atkins. Average core deposits of $254.0 billion for first quarter 2006 grew $22.2 billion, or 10 percent, from first quarter 2005, and increased $626 million on a linked-quarter basis. Average mortgage escrow deposits were $15.5 billion for first quarter 2006, up $1.6 billion from first quarter 2005 and down $2.2 billion from fourth quarter 2005. Excluding mortgage escrow balances, total average core deposits grew 9 percent from first quarter 2005 and 5 percent (annualized) from fourth quarter 2005. Average retail core deposits grew $20.3 billion, or 11 percent, from first quarter 2005 and increased $2.1 billion, or 4 percent (annualized), from fourth quarter 2005. Average consumer checking account balances grew 11 percent from first quarter 2005 and 15 percent (annualized) on a linked-quarter basis.

“A modest linked-quarter decline in business checking account balances occurred since business customers can maintain lower compensating balances at higher interest rates,” said Atkins. “The decline may also be the first sign of companies using their cash balances to grow their business, which is consistent with the small business loan growth we continued to experience.”

Net Interest Income
Net interest income for first quarter 2006 increased 9 percent from a year ago, due to 9 percent growth in average earning assets and a relatively stable net interest margin. Net interest income increased 3 percent (annualized) on a linked-quarter basis due to 7 percent growth (annualized) in average earning assets and a 1 basis point increase in net interest margin to 4.85 percent, partially offset by fewer days. “Despite the flat to inverted yield curve during the quarter, our stable margin reflected our ability to continue to grow checking and savings deposits and the benefit of our continued focus on balance sheet repositioning actions including the sale of our lowest yielding ARMs and debt securities,” said Atkins.

Noninterest Income
Noninterest income increased $49 million, or 1 percent, from first quarter 2005. Excluding mortgage banking, noninterest income increased 16 percent from first quarter 2005, reflecting strong year-over-year growth in deposit service charges, up 8 percent; trust and investment fees, up 10 percent; other fees, largely loan-related, up 8 percent; insurance, up 8 percent; equity investments, up $119 million; and the $127 million gain related to the sale of Island Finance’s operations in Puerto Rico. First quarter noninterest income also included $9 million in losses related to the sale of ARMs and $35 million in net bond losses related to repositioning for higher bond yields in our corporate and Home Mortgage portfolios. Mortgage banking noninterest income declined $399 million due to the $184 million net MSRs valuation loss that was recorded to earnings ($522 million fair value gain less $706 million hedging loss), compared with a $271 million valuation allowance release (income) and $85 million hedge gain in first quarter 2005.

Noninterest Expense
Noninterest expense was up $382 million from first quarter 2005 and up $191 million from fourth quarter 2005. “Expense growth both year-over-year and linked-quarter was primarily driven by continued investment in our businesses, both additional sales personnel and new stores,” said Atkins. During the quarter, the Company opened 23 regional banking stores, 2 commercial banking offices, renovated 72 banking stores and added 425 retail bankers. Noninterest expense included $52 million, or $.02 a share, in stock option expense as required

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under FAS 123R, and $23 million of incremental technology investments and integration expense. Home Mortgage expenses were down 8 percent (annualized) on a linked-quarter basis reflecting the Company’s ability to reduce expenses as first mortgage originations declined in the quarter.

Credit Quality
“First quarter credit results were strong and continued to show excellent performance across all our loan portfolios,” said Chief Credit Officer Dave Munio. Residential real estate credit performance remained strong and wholesale portfolios continued to experience historically low loss rates. Net charge-offs for first quarter 2006 were $433 million (.56 percent of average loans outstanding, annualized), compared with $703 million (.91 percent) during fourth quarter 2005, which included $171 million (.22 percent) for incremental bankruptcies above normalized levels, and $585 million (.83 percent) during first quarter 2005, which included $163 million (.23 percent) related to changes in loss recognition rules at Wells Fargo Financial to conform to Federal Financial Institutions Examination Council bank standards for recognizing credit losses. After the October 2005 legislation change, personal bankruptcy levels fell significantly below historic run rates and have remained at this low level during first quarter 2006. “We continue to work with our customers affected by Hurricane Katrina. We believe our allowance for loan losses at March 31, 2006, was adequate,” said Munio.

Total nonperforming assets were $1.85 billion (.60 percent of total loans) at March 31, 2006, compared with $1.53 billion (.49 percent) at year-end 2005 and $1.41 billion (.48 percent) at March 31, 2005. Foreclosed assets, a component of total nonperforming assets, included an additional $227 million of foreclosed real estate securing GNMA loans in first quarter 2006, due to a change in regulatory reporting requirements effective January 1, 2006. These assets are fully collectible because the corresponding GNMA loans are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. The remaining quarterly increase in nonperforming assets was a natural consequence of continued growth in several of the Company’s residential real estate and automobile portfolios. Commercial and commercial real estate nonperforming assets decreased $187 million from a year ago.

Business Segment Performance
Wells Fargo has three lines of business for management reporting: Community Banking, Wholesale Banking and Wells Fargo Financial. Net income for each of the three business segments was:

	First Quarter
					%
(in millions)	2006		2005		Change
Community Banking	$	1,210	$	1,353		(11	)%
Wholesale Banking		528		451		17
Wells Fargo Financial		280		52		438

More financial information about the business segments is on page 24.

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Community Bankingoffers a complete line of banking and diversified financial products and services for consumers and small businesses including investment, insurance and trust services primarily in 23 midwestern and western states, and mortgage and home equity loans in all 50 states.

Selected Financial Information	First Quarter
					%
(in millions)	2006		2005		Change
Total revenue	$	5,399	$	5,466		(1	)%
Provision for credit losses		189		187		1
Noninterest expense		3,387		3,220		5
Net income		1,210		1,353		(11	)
Average loans (in billions)		190.4		183.9		4
Average assets (in billions)		314.8		289.8		9

• Average core deposits up 11 percent from prior year

• Average loans up 4 percent from prior year; up 18 percent excluding real estate 1-4 family first mortgages

• Private Client Services (PCS)

o Revenue up 8 percent from prior year

o Core deposits up 27 percent from prior year

• Internet highlights

o Active online consumers of 7.6 million, up 17 percent from prior year, reaching 58 percent of consumer checking accounts

o Bill payment and presentment customers of 3.6 million, up 46 percent from prior year

o 700,000 active online small business customers, up 22 percent from prior year

“Demonstrating the benefit of our diversified business model, most of our consumer business showed strong growth this quarter and helped to offset the decline at Home Mortgage,” said President and COO John Stumpf. “Our outstanding team continues to make very solid progress in many of our measures of the quality of the experience we provide our customers. We survey 30,000 of our customers each month and have seen meaningful improvement in customer loyalty scores, which leads directly to improved cross-sell ratios and improved customer retention.”

Community Banking reported net income of $1.21 billion, down 11 percent from first quarter 2005 due to a decline in Home Mortgage net income. Net interest income increased $165 million, or 5 percent, compared with first quarter 2005, due primarily to growth in earning assets and deposits. Despite a flat yield curve, the net interest margin remained stable due to continued balance sheet repositioning. Earning assets grew despite sales of low-yielding ARMs and debt securities. Noninterest income decreased $232 million, or 10 percent, compared with first quarter 2005, due primarily to lower mortgage banking revenue, partially offset by higher equity investment gains and higher deposit service charges and card fees.

Regional Banking Highlights

• Record core product sales of 4.56 million, up 18 percent from prior year

• Core sales per platform sales banker FTE (active, full-time equivalent) of 5.18 per day, up from 5.02 in prior year

• Record retail bank household cross-sell of 4.9 products per consumer household

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• Wells Fargo Package^SM sales up 46 percent from prior year, and were purchased by 56 percent of new checking account customers

• Added 1,788 platform banker FTEs from prior year

• Store-based customer loyalty scores continue to improve year-over-year, with double-digit improvement since first quarter 2004

• Small Business

o Store-based business solutions (sales) up 37 percent from prior year

o Loans to small businesses (loans primarily less than $100,000 on our Business Direct platform) grew 19 percent from prior year

“Our talented and dedicated team achieved another record breaking solutions (sales) performance in first quarter, including an 18 percent increase in core product sales over the same period last year,” said Carrie Tolstedt, Group EVP, Regional Banking. “We achieved core sales per platform banker FTE of 5.18 per day, up from 5.02 in the prior year. More than 56 percent of new checking account customers purchased Wells Fargo Packages^SM– a checking account and at least three other products. As a result of these strong sales, customer cross-sell reached a record high of 4.9 products per consumer (retail bank household). To better serve our customers and help them succeed financially, we opened 23 banking stores and added 358 platform banker FTEs during the quarter, and increased the number of licensed bankers by 39 percent over the prior year.”

Home Mortgage and Home Equity Highlights

• Mortgage originations of $91 billion, up 40 percent from prior year

• Mortgage applications of $95 billion, up 7 percent from prior quarter

• Mortgage application pipeline of $59 billion, up 18 percent from prior quarter

• Record owned mortgage servicing portfolio of $1.04 trillion, up 24 percent from March 31, 2005 and up 21 percent (annualized) from prior quarter

• National Home Equity Group portfolio of $73 billion

• Wells Fargo Home Mortgage named leading home purchase lender in 2005 byInside Mortgage Finance

“Interest rates rose significantly over the prior year, but, thanks to our outstanding team, our origination volumes were up 40 percent from the first quarter of 2005,” said Mark Oman, senior EVP, Home and Consumer Finance Group. “While we have seen a slow down in refinancing activity, the purchase market where we are the leading lender remained historically strong. We also saw double-digit growth in our trillion dollar owned servicing portfolio. This portfolio, which has an average note rate of 5.75 percent, provides cross sell and retention opportunities to over 5.6 million customers.”

The National Home Equity Group portfolio was $73 billion as of March 31, 2006. The credit quality of this portfolio remained very strong.

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Wholesale Bankingserves customers coast to coast,including middle market banking, corporate banking, commercial real estate, treasury management, asset-based lending, insurance brokerage, foreign exchange, trade services, specialized lending, equipment finance, capital markets activities and institutional investments.

Selected Financial Information	First Quarter
						%
(in millions)	2006			2005		Change
Total revenue	$	1,776		$	1,517		17	%
Provision (reversal of provision) for credit losses		(2	)		4		—
Noninterest expense		992			842		18
Net income		528			451		17
Average loans (in billions)		67.6			59.5		14
Average assets (in billions)		95.9			85.7		12

• Average loans up 14 percent

• Strong credit quality

• Acquired real estate investment banking firm Secured Capital Corp to form Eastdil Secured

• Agreed to acquire factoring company Commerce Funding Corporation

• Opened Wholesale offices in Buffalo, New York and Nashville, Tennessee

“We achieved another quarter of strong, broad-based loan growth across our business lines, with average loans up 14 percent from a year ago,” said Dave Hoyt, senior EVP, Wholesale Banking. “In January we acquired Secured Capital Corp to create Eastdil Secured, L.L.C. one of the country’s most active firms in investment property sales, debt placement and commercial mortgage loan sales. Eastdil Secured will also engage in investment banking nationwide and raise private equity through its broker dealer affiliate. We also agreed to acquire the Virginia-based factoring company Commerce Funding Corporation, a leading provider of financing to government contractors. To further expand our national presence, we added a middle-market banking office in Buffalo, New York and a commercial real estate office in Nashville, Tennessee, giving us 222 wholesale offices east of the Mississippi River.

“We processed as many checks during the quarter usingDesktop Deposit^SM – our Check 21 internetsolution – as we did in the last half of 2005, a very rapid adoption by our customers of our industry-leading service. In the eight months we’ve offered this service, customers have used our image technology to electronically deposit almost 4 million checks directly from their own offices.”

Wholesale Banking reported net income of $528 million and revenue of $1.78 billion, both up 17 percent from a year ago. Revenue growth was due to increased earning assets, a wider net interest margin, strong growth in the capital markets-related businesses, underwriting gains in the crop insurance business and additional revenue from the Secured Capital acquisition. Average loans grew 14 percent to $67.6 billion and average core deposits were up 1 percent to $25.9 billion. Noninterest expense was $992 million, up 18 percent from first quarter 2005, driven by staffing, merit and incentive increases and additional expenses from the Secured Capital acquisition.

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Wells Fargo Financialoffers consumer loans primarily through real estate-secured debt consolidation products, automobile financing, consumer and private-label credit cards and commercial services to consumers and businesses throughout the United States and in Canada, Latin America, the Caribbean, and the Pacific Rim.

Selected Financial Information	First Quarter
					%
(in millions)	2006		2005		Change
Total revenue	$	1,380	$	1,106		25	%
Provision for credit losses		246		394		(38	)
Noninterest expense		695		630		10
Net income		280		52		438
Average loans (in billions)		53.1		43.9		21
Average assets (in billions)		58.7		49.7		18

• Average loans up 21 percent from first quarter 2005

o Real estate-secured receivables up 35 percent to $19.7 billion

o Auto finance receivables up 21 percent to $22.4 billion

• Began integrating consumer lending stores and auto lending stores into a single-store network in the U.S.

• Sold Island Finance operations in Puerto Rico for pre-tax gain of $127 million

“Our record net income of $280 million for the quarter was driven by the consistent customer focus and commitment of our 20,000 team members, outstanding performance in auto lending and real estate-secured lending, and the sale of our Island Finance operations in Puerto Rico,” said Tom Shippee, Wells Fargo Financial president and CEO. “Our dramatic increase over first quarter 2005 earnings was partly due to the $163 million charge in the first quarter last year to conform Wells Fargo Financial’s charge-off practices with Federal Financial Institutions Examination Council guidelines. We had lower bankruptcy charge-offs and higher recoveries in the first quarter, reflecting the changes in federal bankruptcy legislation in October 2005.”

Recorded Message
A recorded message reviewing Wells Fargo’s results will be available at 5:30 a.m. Pacific Time through April 21, 2006. Dial 877-660-6853 (domestic) or 201-612-7415 (international). Enter the account number 286 and conference ID 198255. The call is also available on the internet atwww.wellsfargo.com/ir andwww.vcall.com.

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements about the Company, including statements about the expected impact of expensing stock options on our 2006 quarterly earnings per share and various statements about future credit losses and credit quality, including the impact of Hurricane Katrina. Do not unduly rely on forward-looking statements. They give our expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them to reflect changes that occur after that date.

There are a number of factors that could cause results to differ significantly from our expectations, including the possibility that assumptions used to estimate the expected quarterly

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option expense for the remainder of 2006 are wrong or may change. For other factors that may cause actual results to differ from expectations, refer to our Annual Report on Form 10-K for the year ended December 31, 2005, including information incorporated into the Form 10-K from our 2005 Annual Report to Stockholders, filed as Exhibit 13 to the Form 10-K.

Hurricane Katrina has affected the Company’s loan portfolios by damaging properties pledged as collateral and by impairing the ability of certain borrowers to repay their loans. The ultimate impact of the hurricane on the Company is difficult to predict and will be affected by a number of factors, including the extent of damage to the collateral, the extent to which damaged collateral is not covered by insurance, the extent to which unemployment and other economic conditions caused by the hurricane adversely affect the ability of borrowers to repay their loans, and the cost to us of collection and foreclosure moratoriums, loan forbearances and other accommodations granted to borrowers and other customers. The impact of the hurricane on the Company may be greater than anticipated.

Any factor described in this news release or in any document referred to in this news release could, by itself or together with one or more other factors, adversely affect the Company’s business, earnings and/or financial condition.

Wells Fargo & Company is a diversified financial services company with $492 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, “Aaa,” from Moody’s Investors Service.

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Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

									% Change
	Quarter ended									Mar. 31, 2006 from
	Mar. 31,			Dec. 31,			Mar. 31,			Dec. 31,			Mar. 31,
(in millions, except per share amounts)	2006			2005			2005			2005			2005
For the Quarter
Net income	$	2,018		$	1,930		$	1,856			5	%		9	%
Diluted earnings per common share		1.19			1.14			1.08			4			10
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.72	%		1.63	%		1.75	%		6			(2	)
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.89			19.22			19.60			3			1
Efficiency ratio (1)		59.3			57.5			58.0			3			2
Total revenue	$	8,555		$	8,492		$	8,089			1			6
Dividends declared per common share		.52			.52			.48			—			8
Average common shares outstanding		1,679.2			1,675.4			1,695.4			—			(1	)
Diluted average common shares outstanding		1,697.9			1,693.9			1,715.7			—			(1	)
Average loans	$	311,132		$	305,696		$	287,282			2			8
Average assets		475,195			468,481			430,990			1			10
Average core deposits (2)		254,012			253,386			231,847			—			10
Average retail core deposits (3)		212,921			210,729			192,621			1			11
Net interest margin		4.85	%		4.84	%		4.87	%		—			—
At Quarter End
Securities available for sale	$	51,195		$	41,834		$	31,685			22			62
Loans		306,676			310,837			290,588			(1	)		6
Allowance for loan losses		3,845			3,871			3,783			(1	)		2
Goodwill		11,050			10,787			10,645			2			4
Assets		492,428			481,741			435,643			2			13
Core deposits (2)		258,142			253,341			234,984			2			10
Stockholders’ equity		41,961			40,660			38,477			3			9
Capital ratios
Stockholders’ equity to assets		8.52	%		8.44	%		8.83	%		1			(4	)
Risk-based capital (4)
Tier 1 capital		8.31			8.26			8.40			1			(1	)
Total capital		11.49			11.64			12.37			(1	)		(7	)
Tier 1 leverage (4)		7.13			6.99			7.17			2			(1	)
Book value per common share	$	25.02		$	24.25		$	22.76			3			10
Team members (active, full-time equivalent)		152,000			153,500			147,000			(1	)		3
Common Stock Price
High	$	65.51		$	64.70		$	62.75			1			4
Low		60.62			57.62			58.15			5			4
Period end		63.87			62.83			59.80			2			7

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates and market rate and other savings.
(3)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(4)	The March 31, 2006, ratios are preliminary.

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Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions, except per share amounts)	2006			2005			2005			2005			2005
For the Quarter
Net income	$	2,018		$	1,930		$	1,975		$	1,910		$	1,856
Diluted earnings per common share		1.19			1.14			1.16			1.12			1.08
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.72	%		1.63	%		1.75	%		1.76	%		1.75	%
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.89			19.22			19.72			19.76			19.60
Efficiency ratio (1)		59.3			57.5			57.5			57.9			58.0
Total revenue	$	8,555		$	8,492		$	8,503		$	7,865		$	8,089
Dividends declared per common share		.52			.52			.52			.48			.48
Average common shares outstanding		1,679.2			1,675.4			1,686.8			1,687.7			1,695.4
Diluted average common shares outstanding		1,697.9			1,693.9			1,705.3			1,707.2			1,715.7
Average loans	$	311,132		$	305,696		$	295,611		$	295,636		$	287,282
Average assets		475,195			468,481			448,159			435,091			430,990
Average core deposits (2)		254,012			253,386			247,187			238,308			231,847
Average retail core deposits (3)		212,921			210,729			205,078			198,805			192,621
Net interest margin		4.85	%		4.84	%		4.86	%		4.89	%		4.87	%
At Quarter End
Securities available for sale	$	51,195		$	41,834		$	34,480		$	29,216		$	31,685
Loans		306,676			310,837			296,189			301,739			290,588
Allowance for loan losses		3,845			3,871			3,886			3,775			3,783
Goodwill		11,050			10,787			10,776			10,647			10,645
Assets		492,428			481,741			453,494			434,981			435,643
Core deposits (2)		258,142			253,341			248,384			239,615			234,984
Stockholders’ equity		41,961			40,660			39,835			39,278			38,477
Capital ratios
Stockholders’ equity to assets		8.52	%		8.44	%		8.78	%		9.03	%		8.83	%
Risk-based capital (4)
Tier 1 capital		8.31			8.26			8.35			8.57			8.40
Total capital		11.49			11.64			11.84			12.17			12.37
Tier 1 leverage (4)		7.13			6.99			7.16			7.28			7.17
Book value per common share	$	25.02		$	24.25		$	23.74		$	23.30		$	22.76
Team members (active, full-time equivalent)		152,000			153,500			151,300			148,600			147,000
Common Stock Price
High	$	65.51		$	64.70		$	62.87		$	62.22		$	62.75
Low		60.62			57.62			58.00			57.77			58.15
Period end		63.87			62.83			58.57			61.58			59.80

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates and market rate and other savings.
(3)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(4)	The March 31, 2006, ratios are preliminary.

-13-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Mar. 31,						%
(in millions, except per share amounts)	2006			2005			Change
INTEREST INCOME
Trading assets	$	69		$	44			57	%
Securities available for sale		663			456			45
Mortgages held for sale		609			430			42
Loans held for sale		11			112			(90	)
Loans		6,110			4,780			28
Other interest income		70			51			37
Total interest income		7,532			5,873			28
INTEREST EXPENSE
Deposits		1,482			692			114
Short-term borrowings		270			149			81
Long-term debt		910			579			57
Total interest expense		2,662			1,420			87
NET INTEREST INCOME		4,870			4,453			9
Provision for credit losses		433			585			(26	)
Net interest income after provision for credit losses		4,437			3,868			15
NONINTEREST INCOME
Service charges on deposit accounts		623			578			8
Trust and investment fees		663			602			10
Card fees		384			326			18
Other fees		488			453			8
Mortgage banking		415			814			(49	)
Operating leases		201			208			(3	)
Insurance		364			337			8
Net losses on debt securities available for sale		(35	)		(4	)		775
Net gains from equity investments		190			71			168
Other		392			251			56
Total noninterest income		3,685			3,636			1
NONINTEREST EXPENSE
Salaries		1,672			1,480			13
Incentive compensation		668			465			44
Employee benefits		589			547			8
Equipment		335			370			(9	)
Net occupancy		336			404			(17	)
Operating leases		161			158			2
Other		1,313			1,268			4
Total noninterest expense		5,074			4,692			8
INCOME BEFORE INCOME TAX EXPENSE		3,048			2,812			8
Income tax expense		1,030			956			8
NET INCOME	$	2,018		$	1,856			9
EARNINGS PER COMMON SHARE	$	1.20		$	1.09			10
DILUTED EARNINGS PER COMMON SHARE	$	1.19		$	1.08			10
DIVIDENDS DECLARED PER COMMON SHARE	$	.52		$	.48			8
Average common shares outstanding		1,679.2			1,695.4			(1	)
Diluted average common shares outstanding		1,697.9			1,715.7			(1	)

-14-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,		Mar. 31,
(in millions, except per share amounts)	2006			2005			2005			2005		2005
INTEREST INCOME
Trading assets	$	69		$	48		$	44		$	54	$	44
Securities available for sale		663			594			442			429		456
Mortgages held for sale		609			628			674			481		430
Loans held for sale		11			10			9			15		112
Loans		6,110			5,901			5,416			5,163		4,780
Other interest income		70			63			60			58		51
Total interest income		7,532			7,244			6,645			6,200		5,873
INTEREST EXPENSE
Deposits		1,482			1,331			1,000			825		692
Short-term borrowings		270			242			189			164		149
Long-term debt		910			832			780			675		579
Total interest expense		2,662			2,405			1,969			1,664		1,420
NET INTEREST INCOME		4,870			4,839			4,676			4,536		4,453
Provision for credit losses		433			703			641			454		585
Net interest income after provision for credit losses		4,437			4,136			4,035			4,082		3,868
NONINTEREST INCOME
Service charges on deposit accounts		623			655			654			625		578
Trust and investment fees		663			623			614			597		602
Card fees		384			394			377			361		326
Other fees		488			478			520			478		453
Mortgage banking		415			628			743			237		814
Operating leases		201			200			202			202		208
Insurance		364			272			248			358		337
Net gains (losses) on debt securities available for sale		(35	)		(124	)		(31	)		39		(4	)
Net gains from equity investments		190			93			146			201		71
Other		392			434			354			231		251
Total noninterest income		3,685			3,653			3,827			3,329		3,636
NONINTEREST EXPENSE
Salaries		1,672			1,613			1,571			1,551		1,480
Incentive compensation		668			663			676			562		465
Employee benefits		589			428			467			432		547
Equipment		335			328			306			263		370
Net occupancy		336			344			354			310		404
Operating leases		161			161			159			157		158
Other		1,313			1,346			1,356			1,279		1,268
Total noninterest expense		5,074			4,883			4,889			4,554		4,692
INCOME BEFORE INCOME TAX EXPENSE		3,048			2,906			2,973			2,857		2,812
Income tax expense		1,030			976			998			947		956
NET INCOME	$	2,018		$	1,930		$	1,975		$	1,910	$	1,856
EARNINGS PER COMMON SHARE	$	1.20		$	1.15		$	1.17		$	1.14	$	1.09
DILUTED EARNINGS PER COMMON SHARE	$	1.19		$	1.14		$	1.16		$	1.12	$	1.08
DIVIDENDS DECLARED PER COMMON SHARE	$	.52		$	.52		$	.52		$	.48	$	.48
Average common shares outstanding		1,679.2			1,675.4			1,686.8			1,687.7		1,695.4
Diluted average common shares outstanding		1,697.9			1,693.9			1,705.3			1,707.2		1,715.7

-15-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

										% Change
										Mar. 31, 2006 from
	Mar. 31,			Dec. 31,			Mar. 31,			Dec. 31,			Mar. 31,
(in millions, except shares)	2006			2005			2005			2005			2005
ASSETS
Cash and due from banks	$	13,224		$	15,397		$	13,467			(14	)%		(2	)%
Federal funds sold, securities purchased under resale agreements and other short-term investments		4,954			5,306			4,784			(7	)		4
Trading assets		9,930			10,905			8,487			(9	)		17
Securities available for sale		51,195			41,834			31,685			22			62
Mortgages held for sale		43,521			40,534			38,724			7			12
Loans held for sale		629			612			1,769			3			(64	)
Loans		306,676			310,837			290,588			(1	)		6
Allowance for loan losses		(3,845	)		(3,871	)		(3,783	)		(1	)		2
Net loans		302,831			306,966			286,805			(1	)		6
Mortgage servicing rights:
Measured at fair value (residential MSRs beginning 2006)		13,800			—			—			—			—
Amortized		142			12,511			8,972			(99	)		(98	)
Premises and equipment, net		4,493			4,417			3,898			2			15
Goodwill		11,050			10,787			10,645			2			4
Other assets		36,659			32,472			26,407			13			39
Total assets	$	492,428		$	481,741		$	435,643			2			13
LIABILITIES
Noninterest-bearing deposits	$	88,701		$	87,712		$	82,872			1			7
Interest-bearing deposits		219,604			226,738			190,291			(3	)		15
Total deposits		308,305			314,450			273,163			(2	)		13
Short-term borrowings		21,350			23,892			24,451			(11	)		(13	)
Accrued expenses and other liabilities		36,312			23,071			22,649			57			60
Long-term debt		84,500			79,668			76,903			6			10
Total liabilities		450,467			441,081			397,166			2			13
STOCKHOLDERS’ EQUITY
Preferred stock		634			325			535			95			19
Common stock — $1-2/3 par value, authorized 6,000,000,000 shares; issued 1,736,381,025 shares		2,894			2,894			2,894			—			—
Additional paid-in capital		10,373			9,934			9,843			4			5
Retained earnings		31,750			30,580			27,512			4			15
Cumulative other comprehensive income		576			665			693			(13	)		(17	)
Treasury stock — 57,562,467 shares, 58,797,993 shares and 44,059,109 shares		(3,587	)		(3,390	)		(2,428	)		6			48
Unearned ESOP shares		(679	)		(348	)		(572	)		95			19
Total stockholders’ equity		41,961			40,660			38,477			3			9
Total liabilities and stockholders’ equity	$	492,428		$	481,741		$	435,643			2			13

-16-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2006			2005			2005			2005			2005
ASSETS
Cash and due from banks	$	13,224		$	15,397		$	13,931		$	13,962		$	13,467
Federal funds sold, securities purchased under resale agreements and other short-term investments		4,954			5,306			5,861			5,661			4,784
Trading assets		9,930			10,905			8,477			8,019			8,487
Securities available for sale		51,195			41,834			34,480			29,216			31,685
Mortgages held for sale		43,521			40,534			46,119			31,733			38,724
Loans held for sale		629			612			629			651			1,769
Loans		306,676			310,837			296,189			301,739			290,588
Allowance for loan losses		(3,845	)		(3,871	)		(3,886	)		(3,775	)		(3,783	)
Net loans		302,831			306,966			292,303			297,964			286,805
Mortgage servicing rights:
Measured at fair value (residential MSRs beginning 2006)		13,800			—			—			—			—
Amortized		142			12,511			10,711			8,498			8,972
Premises and equipment, net		4,493			4,417			4,223			4,156			3,898
Goodwill		11,050			10,787			10,776			10,647			10,645
Other assets		36,659			32,472			25,984			24,474			26,407
Total assets	$	492,428		$	481,741		$	453,494		$	434,981		$	435,643
LIABILITIES
Noninterest-bearing deposits	$	88,701		$	87,712		$	89,304		$	86,791		$	82,872
Interest-bearing deposits		219,604			226,738			199,725			188,222			190,291
Total deposits		308,305			314,450			289,029			275,013			273,163
Short-term borrowings		21,350			23,892			23,243			17,905			24,451
Accrued expenses and other liabilities		36,312			23,071			22,795			19,930			22,649
Long-term debt		84,500			79,668			78,592			82,855			76,903
Total liabilities		450,467			441,081			413,659			395,703			397,166
STOCKHOLDERS’ EQUITY
Preferred stock		634			325			389			462			535
Common stock		2,894			2,894			2,894			2,894			2,894
Additional paid-in capital		10,373			9,934			9,878			9,862			9,843
Retained earnings		31,750			30,580			29,636			28,567			27,512
Cumulative other comprehensive income		576			665			721			771			693
Treasury stock		(3,587	)		(3,390	)		(3,267	)		(2,784	)		(2,428	)
Unearned ESOP shares		(679	)		(348	)		(416	)		(494	)		(572	)
Total stockholders’ equity		41,961			40,660			39,835			39,278			38,477
Total liabilities and stockholders’ equity	$	492,428		$	481,741		$	453,494		$	434,981		$	435,643

-17-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2006			2005			2005			2005			2005
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	5,192		$	5,158		$	5,647		$	5,653		$	5,334
Trading assets		6,099			5,061			4,782			6,289			5,525
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		866			1,051			1,042			964			930
Securities of U.S. states and political subdivisions		3,106			3,256			3,321			3,434			3,572
Mortgage-backed securities:
Federal agencies		27,718			23,545			17,815			17,616			20,079
Private collateralized mortgage obligations		6,562			8,060			4,245			4,181			3,993
Total mortgage-backed securities		34,280			31,605			22,060			21,797			24,072
Other debt securities (1)		5,280			4,843			3,888			3,249			3,388
Total debt securities available for sale (1)		43,532			40,755			30,311			29,444			31,962
Mortgages held for sale		39,523			42,036			47,510			34,554			31,636
Loans held for sale		651			603			626			1,255			9,062
Loans:
Commercial and commercial real estate:
Commercial		62,769			61,297			59,434			57,749			55,178
Other real estate mortgage		28,686			28,425			28,614			29,504			29,869
Real estate construction		13,850			13,040			12,259			9,814			9,178
Lease financing		5,436			5,347			5,252			5,176			5,126
Total commercial and commercial real estate		110,741			108,109			105,559			102,243			99,351
Consumer:
Real estate 1-4 family first mortgage		74,383			76,233			72,479			79,533			84,589
Real estate 1-4 family junior lien mortgage		59,972			58,157			56,412			54,771			53,059
Credit card		11,765			11,326			10,867			10,285			10,157
Other revolving credit and installment		48,329			46,593			45,380			44,406			35,887
Total consumer		194,449			192,309			185,138			188,995			183,692
Foreign		5,942			5,278			4,914			4,398			4,239
Total loans (2)		311,132			305,696			295,611			295,636			287,282
Other		1,389			1,415			1,511			1,677			1,726
Total earning assets	$	407,518		$	400,724		$	385,998		$	374,508		$	372,527
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,069		$	3,797		$	3,698		$	3,561		$	3,365
Market rate and other savings		134,228			132,042			129,390			128,333			127,346
Savings certificates		28,718			26,610			23,434			20,932			19,487
Other time deposits		33,726			33,321			22,204			26,378			28,814
Deposits in foreign offices		15,152			14,347			12,359			8,871			10,095
Total interest-bearing deposits		215,893			210,117			191,085			188,075			189,107
Short-term borrowings		26,180			25,395			22,797			22,687			25,434
Long-term debt		81,686			79,169			82,840			78,781			75,680
Total interest-bearing liabilities		323,759			314,681			296,722			289,543			290,221
Portion of noninterest-bearing funding sources		83,759			86,043			89,276			84,965			82,306
Total funding sources	$	407,518		$	400,724		$	385,998		$	374,508		$	372,527
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,897		$	13,508		$	13,100		$	12,991		$	13,090
Goodwill		10,963			10,780			10,736			10,646			10,657
Other		43,817			43,469			38,325			36,946			34,716
Total noninterest-earning assets	$	67,677		$	67,757		$	62,161		$	60,583		$	58,463
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	86,997		$	90,937		$	90,665		$	85,482		$	81,649
Other liabilities		23,320			23,049			21,074			21,348			20,739
Stockholders’ equity		41,119			39,814			39,698			38,718			38,381
Noninterest-bearing funding sources used to fund earning assets		(83,759	)		(86,043	)		(89,276	)		(84,965	)		(82,306	)
Net noninterest-bearing funding sources	$	67,677		$	67,757		$	62,161		$	60,583		$	58,463
TOTAL ASSETS	$	475,195		$	468,481		$	448,159		$	435,091		$	430,990

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

-18-

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

	Quarter ended March 31,
(in millions)	2006			2005
Balance, beginning of period	$	40,660		$	37,866
Cumulative effect from adoption of FAS 156		101			—
Net income		2,018			1,856
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		—			(1	)
Minimum pension liability adjustment		(3	)		—
Change in valuation allowance related to:
Investment securities and other interests held		(205	)		(292	)
Derivative instruments and hedging activities		119			36
Common stock issued		485			329
Common stock repurchased		(646	)		(623	)
Preferred stock released to ESOP		105			97
Common stock dividends		(874	)		(815	)
Other, net		201			24
Balance, end of period	$	41,961		$	38,477

 -19- 

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)	2006		2005		2005		2005		2005
Commercial and commercial real estate:
Commercial	$	63,836	$	61,552	$	60,588	$	58,877	$	56,245
Other real estate mortgage		28,754		28,545		28,571		28,282		29,941
Real estate construction		14,308		13,406		12,587		11,589		9,392
Lease financing		5,402		5,400		5,244		5,195		5,121
Total commercial and commercial real estate		112,300		108,903		106,990		103,943		100,699
Consumer:
Real estate 1-4 family first mortgage		66,106		77,768		69,259		81,615		77,281
Real estate 1-4 family junior lien mortgage		61,115		59,143		57,491		55,989		53,867
Credit card		11,618		12,009		11,060		10,608		10,128
Other revolving credit and installment		49,295		47,462		46,201		44,974		44,250
Total consumer		188,134		196,382		184,011		193,186		185,526
Foreign		6,242		5,552		5,188		4,610		4,363
Total loans (net of unearned income)	$	306,676	$	310,837	$	296,189	$	301,739	$	290,588

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2006			2005			2005			2005			2005
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	256		$	286		$	293		$	338		$	357
Other real estate mortgage		163			165			197			193			191
Real estate construction		21			31			43			44			51
Lease financing		31			45			68			51			59
Total commercial and commercial real estate		471			527			601			626			658
Consumer:
Real estate 1-4 family first mortgage		508			471			409			357			327
Real estate 1-4 family junior lien mortgage		190			144			119			98			101
Other revolving credit and installment		188			171			149			101			87
Total consumer		886			786			677			556			515
Foreign		37			25			23			20			23
Total nonaccrual loans		1,394			1,338			1,301			1,202			1,196
As a percentage of total loans		.45	%		.43	%		.44	%		.40	%		.41	%
Foreclosed assets:
GNMA loans (1)		227			—			—			—			—
Other		228			191			187			187			207
Real estate investments		—			2			2			2			2
Total nonaccrual loans and other assets	$	1,849		$	1,531		$	1,490		$	1,391		$	1,405
As a percentage of total loans		.60	%		.49	%		.50	%		.46	%		.48	%

(1) As a result of a change in regulatory reporting requirements effective January 1, 2006, foreclosed real estate securing Government National Mortgage Association (GNMA) loans has been classified as nonperforming. These assets are fully collectible because the corresponding GNMA loans are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

-20-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2006			2005			2005			2005			2005
Balance, beginning of quarter	$	4,057		$	4,057		$	3,944		$	3,950		$	3,950
Provision for credit losses		433			703			641			454			585
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(79	)		(135	)		(95	)		(92	)		(84	)
Other real estate mortgage		(1	)		(1	)		(1	)		(2	)		(3	)
Real estate construction		—			—			(1	)		—			(5	)
Lease financing		(9	)		(8	)		(7	)		(10	)		(10	)
Total commercial and commercial real estate		(89	)		(144	)		(104	)		(104	)		(102	)
Consumer:
Real estate 1-4 family first mortgage		(29	)		(28	)		(24	)		(23	)		(36	)
Real estate 1-4 family junior lien mortgage		(34	)		(36	)		(37	)		(30	)		(33	)
Credit card		(105	)		(164	)		(128	)		(134	)		(127	)
Other revolving credit and installment		(322	)		(465	)		(369	)		(296	)		(350	)
Total consumer		(490	)		(693	)		(558	)		(483	)		(546	)
Foreign		(74	)		(82	)		(72	)		(63	)		(81	)
Total loan charge-offs		(653	)		(919	)		(734	)		(650	)		(729	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		27			31			35			37			30
Other real estate mortgage		1			3			4			1			8
Real estate construction		1			6			—			7			—
Lease financing		6			5			5			6			5
Total commercial and commercial real estate		35			45			44			51			43
Consumer:
Real estate 1-4 family first mortgage		3			6			6			6			3
Real estate 1-4 family junior lien mortgage		8			9			8			8			6
Credit card		24			22			20			23			21
Other revolving credit and installment		129			115			97			90			63
Total consumer		164			152			131			127			93
Foreign		21			19			18			18			8
Total loan recoveries		220			216			193			196			144
Net loan charge-offs		(433	)		(703	)		(541	)		(454	)		(585	)
Other		(32	)		—			13			(6	)		—
Balance, end of quarter	$	4,025		$	4,057		$	4,057		$	3,944		$	3,950
Components:
Allowance for loan losses	$	3,845		$	3,871		$	3,886		$	3,775		$	3,783
Reserve for unfunded credit commitments		180			186			171			169			167
Allowance for credit losses	$	4,025		$	4,057		$	4,057		$	3,944		$	3,950
Net loan charge-offs (annualized) as a percentage of average total loans		.56	%		.91	%		.73	%		.62	%		.83	%
Allowance for loan losses:
As a percentage of total loans		1.25	%		1.25	%		1.31	%		1.25	%		1.30	%
As a percentage of nonaccrual loans		276			289			299			314			316
As a percentage of nonaccrual loans and other assets		208			253			261			271			269
Allowance for credit losses:
As a percentage of total loans		1.31	%		1.31	%		1.37	%		1.31	%		1.36	%
As a percentage of nonaccrual loans		289			303			312			328			330
As a percentage of nonaccrual loans and other assets		218			265			272			284			281

-21-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended Mar. 31,						%
(in millions)	2006			2005			Change
Service charges on deposit accounts	$	623		$	578			8	%
Trust and investment fees:
Trust, investment and IRA fees		491			445			10
Commissions and all other fees		172			157			10
Total trust and investment fees		663			602			10
Card fees		384			326			18
Other fees:
Cash network fees		44			43			2
Charges and fees on loans		242			245			(1	)
All other		202			165			22
Total other fees		488			453			8
Mortgage banking:
Servicing income, net		81			456			(82	)
Net gains on mortgage loan origination/sales activities		273			293			(7	)
All other		61			65			(6	)
Total mortgage banking		415			814			(49	)
Operating leases		201			208			(3	)
Insurance		364			337			8
Trading assets		134			143			(6	)
Net losses on debt securities available for sale		(35	)		(4	)		775
Net gains from equity investments		190			71			168
Net gains (losses) on sales of loans		3			(39	)		—
Net gains on dispositions of operations		137			1			—
All other		118			146			(19	)
Total	$	3,685		$	3,636			1

NONINTEREST EXPENSE

	Quarter ended Mar. 31,						%
(in millions)	2006			2005			Change
Salaries	$	1,672		$	1,480			13	%
Incentive compensation		668			465			44
Employee benefits		589			547			8
Equipment		335			370			(9	)
Net occupancy		336			404			(17	)
Operating leases		161			158			2
Outside professional services		193			163			18
Contract services		132			139			(5	)
Travel and entertainment		130			110			18
Outside data processing		104			106			(2	)
Advertising and promotion		106			89			19
Postage		81			72			13
Telecommunications		70			72			(3	)
Insurance		76			79			(4	)
Stationary and supplies		51			45			13
Operating losses		62			78			(21	)
Security		43			41			5
Core deposit intangibles		29			32			(9	)
Charitable donations		17			22			(23	)
Net gains from debt extinguishment		(2	)		(1	)		100
All other		221			221			—
Total	$	5,074		$	4,692			8

-22-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2006			2005			2005			2005			2005
Service charges on deposit accounts	$	623		$	655		$	654		$	625		$	578
Trust and investment fees:
Trust, investment and IRA fees		491			481			473			456			445
Commissions and all other fees		172			142			141			141			157
Total trust and investment fees		663			623			614			597			602
Card fees		384			394			377			361			326
Other fees:
Cash network fees		44			45			45			47			43
Charges and fees on loans		242			237			280			260			245
All other		202			196			195			171			165
Total other fees		488			478			520			478			453
Mortgage banking:
Servicing income, net		81			257			373			(99	)		456
Net gains on mortgage loan origination/sales activities		273			269			273			250			293
All other		61			102			97			86			65
Total mortgage banking		415			628			743			237			814
Operating leases		201			200			202			202			208
Insurance		364			272			248			358			337
Trading assets		134			180			184			64			143
Net gains (losses) on debt securities available for sale		(35	)		(124	)		(31	)		39			(4	)
Net gains from equity investments		190			93			146			201			71
Net gains (losses) on sales of loans		3			2			3			39			(39	)
Net gains on dispositions of operations		137			12			1			—			1
All other		118			240			166			128			146
Total	$	3,685		$	3,653		$	3,827		$	3,329		$	3,636

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Mar. 31,			Dec. 31,		Sept. 30,			June 30,		Mar. 31,
(in millions)	2006			2005		2005			2005		2005
Salaries	$	1,672		$	1,613	$	1,571		$	1,551	$	1,480
Incentive compensation		668			663		676			562		465
Employee benefits		589			428		467			432		547
Equipment		335			328		306			263		370
Net occupancy		336			344		354			310		404
Operating leases		161			161		159			157		158
Outside professional services		193			253		230			189		163
Contract services		132			153		163			141		139
Travel and entertainment		130			134		120			117		110
Outside data processing		104			108		114			121		106
Advertising and promotion		106			109		128			117		89
Postage		81			69		72			68		72
Telecommunications		70			65		74			67		72
Insurance		76			28		17			100		79
Stationary and supplies		51			57		48			55		45
Operating losses		62			38		52			26		78
Security		43			42		42			42		41
Core deposit intangibles		29			30		30			31		32
Charitable donations		17			13		8			18		22
Net losses (gains) from debt extinguishment		(2	)		12		(1	)		1		(1	)
All other		221			235		259			186		221
Total	$	5,074		$	4,883	$	4,889		$	4,554	$	4,692

-23-

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

	Quarter ended March 31,
	2006								2005
							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	$	5,192			4.21	%	$	54	$	5,334			2.40	%	$	32
Trading assets		6,099			4.61			69		5,525			3.22			44
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		866			4.30			9		930			3.93			9
Securities of U.S. states and political subdivisions		3,106			8.13			60		3,572			8.41			71
Mortgage-backed securities:
Federal agencies		27,718			5.92			406		20,079			6.01			291
Private collateralized mortgage obligations		6,562			6.46			104		3,993			5.44			53
Total mortgage-backed securities		34,280			6.02			510		24,072			5.91			344
Other debt securities (4)		5,280			7.86			104		3,388			7.20			57
Total debt securities available for sale (4)		43,532			6.36			683		31,962			6.26			481
Mortgages held for sale (3)		39,523			6.16			609		31,636			5.44			430
Loans held for sale (3)		651			6.93			11		9,062			5.02			112
Loans:
Commercial and commercial real estate:
Commercial		62,769			7.71			1,195		55,178			6.20			844
Other real estate mortgage		28,686			7.01			497		29,869			5.88			433
Real estate construction		13,850			7.59			259		9,178			6.08			138
Lease financing		5,436			5.80			79		5,126			6.14			79
Total commercial and commercial real estate		110,741			7.42			2,030		99,351			6.09			1,494
Consumer:
Real estate 1-4 family first mortgage		74,383			6.82			1,259		84,589			6.00			1,261
Real estate 1-4 family junior lien mortgage		59,972			7.65			1,131		53,059			6.01			787
Credit card		11,765			13.23			389		10,157			11.92			303
Other revolving credit and installment		48,329			9.39			1,120		35,887			8.95			793
Total consumer		194,449			8.10			3,899		183,692			6.91			3,144
Foreign		5,942			12.57			185		4,239			13.82			146
Total loans (5)		311,132			7.95			6,114		287,282			6.73			4,784
Other		1,389			4.62			16		1,726			4.32			19
Total earning assets	$	407,518			7.50			7,556	$	372,527			6.42			5,902
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,069			2.23			22	$	3,365			1.05			9
Market rate and other savings		134,228			2.08			687		127,346			1.04			325
Savings certificates		28,718			3.45			245		19,487			2.48			119
Other time deposits		33,726			4.48			373		28,814			2.53			180
Deposits in foreign offices		15,152			4.16			155		10,095			2.38			59
Total interest-bearing deposits		215,893			2.78			1,482		189,107			1.48			692
Short-term borrowings		26,180			4.17			270		25,434			2.38			149
Long-term debt		81,686			4.49			910		75,680			3.08			579
Total interest-bearing liabilities		323,759			3.33			2,662		290,221			1.98			1,420
Portion of noninterest-bearing funding sources		83,759			—			—		82,306			—			—
Total funding sources	$	407,518			2.65			2,662	$	372,527			1.55			1,420
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.85	%	$	4,894					4.87	%	$	4,482
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,897							$	13,090
Goodwill		10,963								10,657
Other		43,817								34,716
Total noninterest-earning assets	$	67,677							$	58,463
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	86,997							$	81,649
Other liabilities		23,320								20,739
Stockholders’ equity		41,119								38,381
Noninterest-bearing funding sources used to fund earning assets		(83,759	)							(82,306	)
Net noninterest-bearing funding sources	$	67,677							$	58,463
TOTAL ASSETS	$	475,195							$	430,990

(1)	Our average prime rate was 7.43% and 5.44% for the quarters ended March 31, 2006 and 2005, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 4.76% and 2.84% for the same quarters, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

-24-

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

	Quarter ended
	Mar. 31,			Dec. 31,		Sept. 30,		June 30,			Mar. 31,
(income/expense in millions, average balances in billions)	2006			2005		2005		2005			2005
COMMUNITY BANKING
Net interest income	$	3,256		$	3,281	$	3,209	$	3,121		$	3,091
Provision for credit losses		189			285		226		197			187
Noninterest income		2,143			2,432		2,619		1,992			2,375
Noninterest expense		3,387			3,336		3,350		3,066			3,220
Income before income tax expense		1,823			2,092		2,252		1,850			2,059
Income tax expense		613			705		759		610			706
Net income	$	1,210		$	1,387	$	1,493	$	1,240		$	1,353
Average loans	$	190.4		$	190.5	$	184.4	$	189.3		$	183.9
Average assets		314.8			313.8		298.8		289.4			289.8
Average core deposits		228.0			228.1		223.5		214.5			206.2
WHOLESALE BANKING
Net interest income	$	680		$	638	$	598	$	591		$	566
Provision (reversal of provision) for credit losses		(2	)		7		—		(10	)		4
Noninterest income		1,096			907		893		1,005			951
Noninterest expense		992			876		895		874			842
Income before income tax expense		786			662		596		732			671
Income tax expense		258			217		193		242			220
Net income	$	528		$	445	$	403	$	490		$	451
Average loans	$	67.6		$	64.7	$	63.3	$	61.2		$	59.5
Average assets		95.9			92.8		90.1		88.6			85.7
Average core deposits		25.9			25.3		23.6		23.8			25.6
WELLS FARGO FINANCIAL
Net interest income	$	934		$	920	$	869	$	824		$	796
Provision for credit losses		246			411		415		267			394
Noninterest income		446			314		315		332			310
Noninterest expense		695			671		644		614			630
Income before income tax expense		439			152		125		275			82
Income tax expense		159			54		46		95			30
Net income	$	280		$	98	$	79	$	180		$	52
Average loans	$	53.1		$	50.5	$	47.9	$	45.1		$	43.9
Average assets		58.7			56.1		53.5		51.3			49.7
Average core deposits		.1			—		.1		—			—
OTHER (2)
Average assets	$	5.8		$	5.8	$	5.8	$	5.8		$	5.8
CONSOLIDATED COMPANY
Net interest income	$	4,870		$	4,839	$	4,676	$	4,536		$	4,453
Provision for credit losses		433			703		641		454			585
Noninterest income		3,685			3,653		3,827		3,329			3,636
Noninterest expense		5,074			4,883		4,889		4,554			4,692
Income before income tax expense		3,048			2,906		2,973		2,857			2,812
Income tax expense		1,030			976		998		947			956
Net income	$	2,018		$	1,930	$	1,975	$	1,910		$	1,856
Average loans	$	311.1		$	305.7	$	295.6	$	295.6		$	287.3
Average assets		475.2			468.5		448.2		435.1			431.0
Average core deposits		254.0			253.4		247.2		238.3			231.8

(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. If the management structure and/or the allocation process changes, allocations, transfers and assignments may change. To reflect the realignment of the automobile financing business into Wells Fargo Financial in third quarter 2005 and the realignment of the insurance business into Wholesale Banking in first quarter 2006, results for prior periods have been revised.

(2)

There are no reconciling items for net income, average loans or average core deposits for the periods presented. Average assets consist of unallocated goodwill held at the enterprise level.

-25-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

Effective January 1, 2006, upon adoption of FAS 156, we re-measured our residential mortgage servicing rights (MSRs) at fair value and recognized a pre-tax adjustment of $158 million to residential MSRs and recorded a corresponding cumulative effect adjustment of $101 million (after-tax) to the 2006 beginning balance of retained earnings in our Statement of Changes in Stockholders’ Equity. The table below reconciles the December 31, 2005, and the January 1, 2006, balance of MSRs.

	Residential		Commercial		Total
(in millions)	MSRs		MSRs		MSRs
Balance at December 31, 2005	$	12,389	$	122	$	12,511
Remeasurement upon adoption of FAS 156		158		—		158
Balance at January 1, 2006	$	12,547	$	122	$	12,669

	Quarter ended
(in millions)	Mar. 31, 2006
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	12,547
Purchases		219
Servicing from securitizations or asset transfers		989
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		522
Other changes in fair value (2)		(477	)
Fair value, end of quarter	$	13,800

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

		Quarter ended
		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)		2006			2005			2005			2005			2005
Amortized MSRs:
Balance, beginning of quarter		$	122		$	11,953		$	10,096		$	10,266		$	9,466
Purchases			25			912			783			453			535
Servicing from securitizations or asset transfers			—			888			850			529			385
Amortization			(5	)		(486	)		(542	)		(493	)		(470	)
Other (includes changes due to hedging)			—			431			766			(659	)		350
Balance, end of quarter		$	142		$	13,698		$	11,953		$	10,096		$	10,266
Valuation allowance:
Balance, beginning of quarter		$	—		$	1,242		$	1,598		$	1,294		$	1,565
Provision (reversal of provision) for MSRs in excess of fair value			—			(55	)		(356	)		304			(271	)
	��
Balance, end of quarter		$	—		$	1,187		$	1,242		$	1,598		$	1,294
Amortized MSRs, net		$	142		$	12,511		$	10,711		$	8,498		$	8,972
Fair value of amortized MSRs:
Beginning of quarter		$	146		$	10,845		$	8,517		$	8,989		$	7,913
End of quarter			205			12,693			10,845			8,517			8,989

-26-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2006			2005			2005			2005			2005
Servicing income, net:
Servicing fees (1)	$	747		$	675		$	619		$	593		$	570
Changes in fair value of MSRs:
Due to changes in valuation model inputs or assumptions (2)		522			—			—			—			—
Other changes in fair value (3)		(477	)		—			—			—			—
Amortization		(5	)		(486	)		(542	)		(493	)		(470	)
Reversal of provision (provision) for MSRs in excess of fair value		—			55			356			(304	)		271
Net derivative gains (losses):
Fair value accounting hedges (4)		—			(176	)		(60	)		105			85
Economic hedges (5)		(706	)		189			—			—			—
Total servicing income, net	$	81		$	257		$	373		$	(99	)	$	456
Market-related valuation changes to MSRs, net of hedge results (2)+(5)	$	(184	)

(1)	Includes contractually specified servicing fees, late charges and other ancillary revenues.
(2)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.
(3)	Represents changes due to collection/realization of expected cash flows over time.
(4)	Results related to MSRs fair value hedging activities under FAS 133,Accounting for Derivative Instruments and Hedging Activities (as amended), consist of gains (losses) excluded from the evaluation of hedge effectiveness and the ineffective portion of the change in the value of these derivatives. Gains and losses excluded from the evaluation of hedge effectiveness are those caused by market conditions (volatility) and the spread between spot and forward rates priced into the derivative contracts (the passage of time).
(5)	Represents results from free-standing derivatives used to economically hedge the risk of changes in fair value of MSRs.

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in billions)	2006			2005			2005			2005			2005
Managed servicing portfolio:
Loans serviced for others (1)	$	931		$	871		$	815		$	761		$	724
Owned loans serviced (2)		110			118			115			113			116
Total owned servicing		1,041			989			930			874			840
Sub-servicing		25			27			29			32			33
Total managed servicing portfolio	$	1,066		$	1,016		$	959		$	906		$	873
Ratio of MSRs to related loans serviced for others		1.50	%		1.44	%		1.31	%		1.12	%		1.24	%
Weighted-average note rate (owned servicing only)		5.75	%		5.72	%		5.71	%		5.75	%		5.75	%

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

-27-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in billions)	2006			2005			2005			2005			2005
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	95		$	89		$	116		$	117		$	91
Refinances as a percentage of applications		39	%		43	%		43	%		42	%		41	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	59		$	50		$	66		$	73		$	59

	Quarter ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in billions)	2006		2005		2005		2005		2005
Residential Real Estate Originations: (1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	26	$	34	$	42	$	36	$	27
Correspondent/Wholesale		53		64		48		37		27
Home equity loans and lines		9		12		10		9		8
Wells Fargo Financial		3		3		3		3		3
Total	$	91	$	113	$	103	$	85	$	65
Year-to-date	$	91	$	366	$	253	$	150	$	65

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