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, July 18, 2006
WELLS FARGO REPORTS QUARTERLY RECORDS; DOUBLE-DIGIT GROWTH IN REVENUE, EPS

Second Quarter 2006 Highlights:

• Record diluted earnings per share of $1.23, up 10 percent from prior year’s $1.12, up 13 percent (annualized) from first quarter 2006

• Record net income of $2.09 billion, up 9 percent from prior year’s $1.91 billion, up 14 percent (annualized) from first quarter 2006

• Return on equity of 19.8 percent

• Record revenue of $8.79 billion, up 12 percent from prior year, up 11 percent (annualized) on linked-quarter basis

• Record consumer and commercial cross-sell of 5.0 and 5.9 products, respectively

• Average commercial and commercial real estate loans up 12 percent from prior year, up 13 percent (annualized) on linked-quarter basis

• Average consumer loans (excluding real estate 1-4 family first mortgages) up 14 percent from prior year and up 16 percent (annualized) on linked-quarter basis

• Average core deposits up 8 percent from prior year, up 6 percent (annualized) on linked-quarter basis

• Net charge-offs down 5 percent from prior year, flat from prior quarter

Selected Financial Information	Second Quarter									Six months ended June 30
							%									%
	2006			2005			Change			2006			2005			Change
Earnings
Diluted earnings per share	$	1.23		$	1.12			10	%	$	2.42		$	2.20			10	%
Net income (in billions)		2.09			1.91			9			4.11			3.77			9
Other
Revenue (in billions)	$	8.79		$	7.87			12		$	17.34		$	15.95			9
Average loans (in billions)		300.4			295.6			2			305.7			291.5			5
Average core deposits (in billions)		257.7			238.3			8			255.9			235.1			9
Net charge-offs as % of avg. total loans		.58	%		.62	%		(6	)		.57	%		.72	%		(21	)

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SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $1.23 for second quarter 2006, up 10 percent from $1.12 in second quarter 2005. Net income was a record $2.09 billion, up 9 percent from $1.91 billion in second quarter 2005. For the first half of 2006, diluted earnings per share were a record $2.42 and net income was a record $4.11 billion, up 10 percent and 9 percent, respectively, from the first half of 2005.

“The ability of our talented team to earn more of our customers’ business enabled us to achieve another quarter of outstanding financial results – new records in cross-sell in both Community and Wholesale Banking, solid double-digit growth in revenue across many of our businesses, and double-digit growth in earnings per share,” said Chairman and CEO Dick Kovacevich. “It now takes two hands to count our company-wide cross sell ratio. We’re so confident in our team’s ability to continue generating strong results that during the quarter we announced a dividend increase for the 19^th consecutive year and our eighth stock split in 47 years. As good as these results are, it’s important to step back and view them as part of a long track record of consistent success through many different economic and interest rate environments. For the past five, 10, 15 and 20 years our total stockholder return has been about double the S&P 500^®. In fact, over the past 20 years Wells Fargo achieved the second highest total stockholder return – more than 3,900 percent – among all companies that were part of the S&P 500 20 years ago and still are part of the S&P 500 today. We also earned more recognition nationally this quarter for our community involvement, as one of only five companies nationwide honored for volunteerism and community service by the national Points of Light Foundation.”

Financial Performance
Diluted earnings per share were a record $1.23, up 10 percent from $1.12 in second quarter 2005 and up 13 percent (annualized) from $1.19 in first quarter 2006, driven by solid double-digit revenue growth of 12 percent from a year ago and 11 percent (annualized) on a linked-quarter basis. Second quarter 2006 results included $250 million of pre-tax losses ($.10 per share) on adjustable rate mortgages (ARMs) and debt securities sold during the quarter to further improve long-term earning asset yields. The results also included $28 million of stock option expense ($.01 per share) that was not in last year’s results. “Once again, earnings growth was broad based, with many of our 80 plus businesses achieving double-digit profit and revenue growth,” said Senior EVP and Chief Financial Officer Howard Atkins.

Revenue
Revenue of $8.8 billion grew $924 million, or 12 percent, from a year ago and was up $234 million, or 11 percent (annualized), on a linked-quarter basis. “Our strong 12 percent revenue growth was achieved despite taking $250 million of losses on the sale of ARMs and debt securities this quarter compared with negligible gains on the sale of debt securities in second quarter 2005,” said Atkins. “This reduced reported year-over-year revenue growth by 3 percentage points. Our operating businesses continued to generate exceptionally strong double-digit revenue growth on both a linked-quarter and year-over-year basis because of strong growth in both interest and fee income, including double-digit revenue growth in regional banking, credit and debit cards, private client services, internet services, home mortgage, corporate trust, consumer finance, asset-based lending, asset management, commercial real estate, Eastdil Secured, international trade services and commercial banking.”

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Loans
Average loans of $300.4 billion increased $4.8 billion from second quarter 2005 and declined $10.7 billion on a linked-quarter basis due to the sale of the $26 billion of ARMs during the second quarter. Excluding real estate 1-4 family first mortgages – the loan category affected by the sale of ARMs – total average loans grew by $29.3 billion, or 14 percent, from second quarter 2005 and 15 percent (annualized) on a linked-quarter basis.

Average commercial and commercial real estate loans increased $12.1 billion, or 12 percent, from second quarter 2005 and increased $3.6 billion, or 13 percent (annualized), from first quarter 2006 – the seventh consecutive quarter of double-digit, linked-quarter growth. Small business direct, middle market, corporate, commercial real estate and trade finance loans all experienced solid growth due to continued market share gains and some increases in line utilization.

Average consumer loans decreased $9.2 billion from second quarter 2005 and declined $14.6 billion on a linked-quarter basis due to the sale of ARMs. Excluding real estate 1-4 family first mortgages, average consumer loans increased $15.3 billion, or 14 percent, from the prior year and increased $4.7 billion, or 16 percent (annualized), on a linked-quarter basis. Real estate 1-4 family junior liens, credit card, and other revolving credit and installment loans grew at double-digit rates from second quarter 2005.

Deposits
Average core deposits of $257.7 billion grew $19.4 billion, or 8 percent, from second quarter 2005, and increased $3.7 billion, or 6 percent (annualized), on a linked-quarter basis. Average mortgage escrow deposits were $17.6 billion, up $1.5 billion from second quarter 2005 and up $2.1 billion on a linked-quarter basis. Excluding mortgage escrow balances, total average core deposits grew 8 percent from second quarter 2005 and 3 percent (annualized) on a linked-quarter basis. Average retail core deposits grew $14.8 billion, or 7 percent, from second quarter 2005 and increased $667 million, or 1 percent (annualized), on a linked-quarter basis. Average consumer checking account balances grew $5.8 billion, or 11 percent, from second quarter 2005 and $2.3 billion, or 16 percent (annualized), on a linked-quarter basis.

Net Interest Income
Net interest income increased 10 percent from a year ago and 9 percent (annualized) on a linked-quarter basis. Solid growth in net interest income again was driven by continued growth in high-quality earning assets and solid core deposit growth. “With short-term interest rates now above 5 percent, our cumulative sales of ARMs and debt securities over the last two years also continued to add to net interest income,” said Atkins. “With the sale of $26 billion of ARMs this quarter, we completed our program of selling ARMs. In addition, taking advantage of market volatility during the quarter, we sold our lowest-yielding debt securities and, for the first time, significantly added to our portfolio of long-term debt securities at yields of approximately 6.25 percent – nearly 200 basis points higher than the cyclical low in yields. While the ARM sales program and continued solid growth in core deposits — particularly double-digit growth in low-cost checking accounts — positively impacted the net interest margin in the second quarter, our even higher growth in earning assets — including the securities purchased in the quarter — accounted for all of the 9 basis point linked-quarter decline in our net interest margin. Our second quarter net interest margin of 4.76 percent remained one of the highest in banking.”

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Noninterest Income
Noninterest income increased $476 million, or 14 percent, from second quarter 2005 and 13 percent (annualized) on a linked-quarter basis. This double-digit growth reflected strong year-over-year growth in deposit service charges (up 6 percent); trust and investment fees (up 13 percent); debit and credit card fees (up 16 percent); and other fees, largely loan-related (up 7 percent). Mortgage banking noninterest income rose $498 million from second quarter 2005 due to business growth and an increase in the value of mortgage servicing net of hedging costs. Gains on sales of mortgage loans increased $109 million, largely due to higher mortgage originations, despite the $94 million loss on the previously mentioned sale of ARMs compared with a $24 million loss a year ago. Servicing fees grew from $593 million to $820 million largely due to a 34 percent increase in the portfolio of mortgage loans serviced for others. The change in the value of mortgage servicing rights net of economic hedging results in second quarter 2006 – a quarter in which interest rates increased – was $17 million. The comparable interest rate-related effect (impairment provision net of hedging results) in second quarter 2005 — a quarter in which interest rates declined — was a loss of $199 million.

Noninterest Expense
Noninterest expense was up $622 million from second quarter 2005 and up $102 million from first quarter 2006. Noninterest expense included $28 million, or $.01 a share, in stock option expense as required under FAS 123(R). “Expense growth continued to be focused on building our business – particularly distribution – and improving customer service,” said Atkins. “In the last 12 months, we’ve opened 129 new regional banking stores, including 26 stores this quarter. We’ve grown our sales and service force by adding 5,700 FTEs, including 551 retail bankers in second quarter 2006. Among other investments for growth, we’ve invested heavily in improving ATMs and online banking to enhance our customer experience and we’re developing a common systems platform for all of our consumer credit products which will increase cross-sell opportunities and improve operating efficiencies.”

Credit Quality
“Second quarter credit results reflected continued solid performance across our diverse range of loan portfolios,” said Chief Credit Officer Mike Loughlin. Net charge-offs for second quarter 2006 were $432 million (.58 percent of average loans outstanding, annualized), compared with $433 million (.56 percent) in first quarter 2006 and $454 million (.62 percent) in second quarter 2005. “We continued to have very low commercial losses and consumer losses remain at historically low levels, affected by continued low bankruptcy filings, low unemployment rates, and relatively stable residential real estate values,” said Loughlin. “We believe our allowance for credit losses of $4.04 billion was adequate to cover losses inherent in our loan portfolios at June 30, 2006.”

Total nonperforming assets were $1.92 billion (.64 percent of total loans) at June 30, 2006, compared with $1.85 billion (.60 percent) at March 31, 2006 and $1.39 billion (.46 percent) at June 30, 2005. Foreclosed assets, a component of total nonperforming assets, included an additional $238 million and $227 million of foreclosed real estate securing Government National Mortgage Association (GNMA) loans at June 30, 2006, and March 31, 2006, respectively, 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. These GNMA loans totaling $238 million added 8 basis points to the ratio of nonperforming assets to loans in the second quarter. “Wholesale nonperformers remained very low, reflecting the solid

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financial strength of our borrowers at this point in the business cycle,” said Loughlin. “Consumer nonperforming assets have gradually increased as our loan portfolios grow and season but remained within expected ranges. We monitor these trends and execute strategies to manage the composition and level of consumer nonperforming assets.”

Business Segment Performance
Wells Fargo has three lines of business for management reporting: Community Banking, Wholesale Banking and Wells Fargo Financial.

Net Income	Second Quarter						Six months ended June 30
					%						%
(in millions)	2006		2005		Change		2006		2005		Change
Community Banking	$	1,336	$	1,240		8	$	2,546	$	2,593		(2	)
Wholesale Banking		523		490		7		1,051		941		12
Wells Fargo Financial		230		180		28		510		232		120

“Our outstanding team achieved strong results in the majority of our over 80 businesses,” said President and Chief Operating Officer John Stumpf. “Our businesses continued to partner to satisfy all of our customers’ financial needs, which resulted in record cross-sell ratios for both consumer and wholesale customers. Our lending businesses remained strong, with our seventh consecutive quarter of double-digit, linked-quarter commercial and commercial real estate loan growth. It was a competitive environment for deposits, but the number of transaction accounts, both business and consumer, continued to grow at a solid pace. Growth at our consumer finance company remained strong, with sound credit quality. We continued to make investments that will benefit our customers and our company: opening consumer and commercial banking stores, adding new and better technology to speed customer service for our stores and call centers, and rolling out innovative products and services such as envelope-free deposits at ATMs andDesktop Deposit^® for our commercial customers.”

More financial information about the business segments is on pages 25 and 26.

Community Bankingoffers a complete line of 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	Second Quarter							Six months ended June 30
					%							%
(in millions)	2006		2005		Change			2006		2005		Change
Total revenue	$	5,719	$	5,113		12		$	11,118	$	10,579		5
Provision for credit losses		187		197		(5	)		376		384		(2	)
Noninterest expense		3,485		3,066		14			6,872		6,286		9
Net income		1,336		1,240		8			2,546		2,593		(2	)
Average loans (in billions)		173.9		189.3		(8	)		182.1		186.7		(2	)
Average assets (in billions)		327.2		289.4		13			321.0		289.6		11

• Average core deposits up 8 percent from prior year, up 5 percent (annualized) from prior quarter

• Private Client Services

o Revenue up 11 percent from prior year

o Private Banking core deposits up 14 percent from prior year

o Brokerage assets under administration of $85.8 billion, up 17 percent from prior year

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• Internet highlights

o 7.9 million active online customers, up 17 percent from prior year, serving 59 percent of consumer checking accounts

o 3.9 million bill payment and presentment customers, up 46 percent from prior year

o 800,000 active online small business customers, up 23 percent from prior year

o Change Sciences Group ranked Wells Fargo’s website # 1 in overall online mortgage experience (June, 2006)

Community Banking reported net income of $1.34 billion, up 8 percent from $1.24 billion in second quarter 2005. Revenue grew 12 percent compared with the same period of 2005. Net interest income increased $200 million from second quarter 2005, primarily due to growth in earning assets. Noninterest income was up $406 million compared with the same period last year, predominately due to higher mortgage banking revenue, partially offset by losses on sale of debt securities. Noninterest expense increased $419 million, or 14 percent, compared with second quarter 2005 due primarily to an increase in the number of team members, as well as investments in new banking stores, ATMs and online banking.

Regional Banking Highlights

• Record retail bank household cross-sell of 5.0 products, up from 3 at the time of the Wells Fargo — Norwest merger in 1998

• Record core product sales of 4.58 million, up 15 percent from prior year

• Wells Fargo Packages^SM sales up 48 percent from prior year; purchased by 58 percent of new checking account customers

• Net consumer checking accounts up 4.5 percent from prior year

• Added 2,087 platform banker FTEs from prior year

• Store-based customer loyalty scores continue to improve with May 2006 up 20 percent over May 2004

• Business Banking

o Store-based business solutions up 27 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

o Net business checking accounts up 4.4 percent from prior year

o Business Banking household cross-sell at 3.1, up from 2.8 in prior year

“Thanks to the talent, commitment, and hard work of our great team, Regional Banking achieved record-breaking second quarter solutions (sales) performance, including a 15 percent increase in core product sales over the same period last year,” said Carrie Tolstedt, Group EVP, Regional Banking. “As a result of our long-standing sales and service culture and our belief in people as a competitive advantage, we achieved an important milestone with a record high of 5.0 products per consumer (retail bank household). In second quarter, more than 58 percent of new checking account customers purchasedWells Fargo Packages– a checking account and at least three other products. Our focus on the customer experience includes 50,000 store-based customer surveys per month. For customers transacting at the teller line, customer loyalty scores have improved 20 percent, and welcoming and wait time has improved 28 percent, since January 2004 when we began the surveys. During this same timeframe, high value household attrition has improved 14 percent, and retail bank household profitability has improved 24 percent. In addition, to better serve our customers, we opened 26 banking stores,

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added 50 net new webATMs^®, and announced plans to convert 400 ATMs in Northern California toEnvelope-Free^SM WebATM machines by the end of 2006.”

Home Mortgage and Home Equity Highlights

• Mortgage originations of $116 billion, up $25 billion from prior quarter

• Mortgage applications of $108 billion, up $13 billion from prior quarter

• Mortgage application pipeline of $63 billion, up $4 billion from prior quarter

• Owned mortgage servicing portfolio of $1.11 trillion, up 27 percent from June 30, 2005

• National Home Equity Group portfolio of $76 billion, up 6 percent from June 30, 2005

“Our residential real estate lending businesses continued their strong performance with double-digit growth in the owned servicing portfolio and originations over the same period last year,” said Mark Oman, senior EVP, Home and Consumer Finance. “Originations were $116 billion, up 36 percent from last year, as we took advantage of market opportunities in the correspondent channel.” At quarter end, the mortgage servicing rights asset was valued at $15.8 billion, or 1.55 percent of loans serviced for others, compared with $8.5 billion, or 1.12 percent at June 30, 2005 and $13.9 billion, or 1.50 percent, at March 31, 2006.

The National Home Equity Group portfolio was $76 billion as of June 30, 2006. The credit quality of this portfolio remained very strong, with nonaccrual loans at $312 million, or .41 percent of the portfolio, and annualized net loss rates of 9 basis points, compared with 9 basis points in second quarter 2005 and 13 basis points in first quarter 2006.

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	Second Quarter									Six months ended June 30
							%									%
(in millions)	2006			2005			Change			2006			2005			Change
Total revenue	$	1,791		$	1,596			12		$	3,567		$	3,113			15
Reversal of provision for credit losses		(7	)		(10	)		(30	)		(9	)		(6	)		50
Noninterest expense		1,018			874			16			2,010			1,716			17
Net income		523			490			7			1,051			941			12
Average loans (in billions)		70.4			61.2			15			69.0			60.4			14
Average assets (in billions)		97.2			88.6			10			96.6			87.2			11

• Record cross-sell of 5.9 products per Wholesale Banking customer

• Acquired Virginia-based factoring company, Commerce Funding Corporation

• Acquired employee benefit trust business of LaSalle Bank

• Agreed to acquire multi-family, real estate finance firm Reilly Mortgage Group

• Opened new foreign exchange office in Atlanta and commercial real estate offices in Richmond, Va. and Winston-Salem, N.C.

• Wholesale Internet & Treasury Solutions awarded “2006 CIO 100” award presented byCIO Magazine

“Our customers continued to appreciate our relationship banking model and broad product line,” said Dave Hoyt, senior EVP, Wholesale Banking. “Wholesale customers have

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5.9 products per customer, up from 5.7 at the end of 2005. Our commercial banking customers have an average of more than 7 products.“We continue to broaden our ability to satisfy all the financial needs of our commercial real estate customers and gain new customers with the pending acquisition of Reilly Mortgage Group. The combined organization will provide financing to owners and operators of multi-family properties through the lending programs of Freddie Mac, Fannie Mae and FHA. Consistent with the Company’s strategic initiative to grow its trust and investment-related business, we acquired LaSalle Bank’s employee benefit trust business. We gained approximately 350 employee benefit plans with $12.4 billion of assets under management.”

Wholesale Banking reported net income of $523 million, up 7 percent from a year ago. Revenue was $1.79 billion, up 12 percent from second quarter 2005 driven by strong asset management, insurance and foreign exchange revenue, along with the acquisition of Secured Capital, partially offset by lower capital markets revenue. Noninterest expense was up 16 percent from the prior year, primarily due to higher personnel related expenses, along with higher expenses from the Secured Capital acquisition. Average loans increased 15 percent to $70.4 billion from second quarter 2005, with particular strength in our real estate and asset-based lending businesses.

Wells Fargo Financialoffers consumer installment and home equity lending, 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, Guam and Saipan.

Selected Financial Information	Second Quarter							Six months ended June 30
					%							%
(in millions)	2006		2005		Change			2006		2005		Change
Total revenue	$	1,279	$	1,156		11		$	2,659	$	2,262		18
Provision for credit losses		252		267		(6	)		498		661		(25	)
Noninterest expense		673		614		10			1,368		1,244		10
Net income		230		180		28			510		232		120
Average loans (in billions)		56.1		45.1		24			54.6		44.4		23
Average assets (in billions)		61.3		51.3		19			60.0		50.5		19

• Average loans up 24 percent from second quarter 2005

o Real estate-secured receivables up 25 percent to $20.1 billion

o Auto finance receivables up 30 percent to $24.5 billion

• Integrated consumer lending stores and auto lending stores into single-store network in U.S.

• LaunchedSpectrum Pricing^®program nationally, an indirect auto finance product serving full range of customer automobile financing needs

“Our net income of $230 million, up 28 percent from a year ago, was largely due to strong, double-digit growth in our lending businesses,” said Tom Shippee, Wells Fargo Financial president and CEO. “The business has achieved solid growth across the board, although residential real estate lending has slowed compared with 2005 levels because of the rising interest rate environment. While we experienced an increase in delinquencies, our loans continued to perform within our pricing expectations.

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“The launch of theSpectrum Pricingprogram for our auto dealer customers provides them with retail financing and leasing options to meet all of the dealers’ automotive financing needs across the credit spectrum from prime to nonprime — a major milestone in integrating the former Wells Fargo Financial Acceptance and Wells Fargo Bank’s Auto Finance Group. During the quarter, we also completed the integration of our consumer and auto stores, which gives us a single-store network of 1,031 locations in the U.S. where we can offer consumers real-state secured lending and direct auto lending.”

Wells Fargo Financial reported net income of $230 million, compared with $180 million in second quarter 2005. For the first six months of 2006, net income was $510 million, which included a first quarter $127 million pre-tax gain from the sale of Island Finance’s operations in Puerto Rico, compared with $232 million for the same period a year ago, which included a first quarter $163 million pre-tax charge to conform Wells Fargo Financial’s charge-off practices with Federal Financial Institutions Examination Council guidelines. Revenue was $1.28 billion, up 11 percent from $1.16 billion in second quarter 2005. Average loans increased 24 percent to $56.1 billion from $45.1 billion a year ago. Noninterest expense increased 10 percent to $673 million primarily due to additional investments in the collections, underwriting and service teams as a result of the growth of the business.

Recorded Message
A recorded message reviewing Wells Fargo’s results will be available at 5:30 a.m. Pacific Time through July 21, 2006. Dial 877-660-6853 (domestic) or 201-612-7415 (international). Enter the account number 286 and conference ID 206866. The call is also available on the internet atwww.wellsfargo.com/ir andhttp://www.vcall.com/IC/CEPage.asp?ID=106337.

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 future credit losses and credit quality. 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. For 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, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, including “Risk Factors” in each report.

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 $500 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

	Quarter ended June 30,						%			Six months ended June 30,						%
($ in millions, except per share amounts)	2006			2005			Change			2006			2005			Change
For the Period
Net income	$	2,089		$	1,910			9	%	$	4,107		$	3,766			9	%
Diluted earnings per common share		1.23			1.12			10			2.42			2.20			10
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.71	%		1.76	%		(3	)		1.71	%		1.75	%		(2	)
Net income to average stockholders’ equity (ROE)		19.76			19.76			—			19.83			19.68			1
Efficiency ratio (1)		58.9			57.9			2			59.1			58.0			2
Total revenue	$	8,789		$	7,865			12		$	17,344		$	15,954			9
Dividends declared per common share		1.08			.48			125			1.60			.96			67
Average common shares outstanding		1,681.9			1,687.7			—			1,680.5			1,691.5			(1	)
Diluted average common shares outstanding		1,702.2			1,707.2			—			1,700.0			1,711.4			(1	)
Average loans	$	300,388		$	295,636			2		$	305,731		$	291,483			5
Average assets		491,456			435,091			13			483,371			433,052			12
Average core deposits (2)		257,695			238,308			8			255,864			235,096			9
Average retail core deposits (3)		213,588			198,805			7			213,255			195,730			9
Net interest margin		4.76	%		4.89	%		(3	)		4.80	%		4.88	%		(2	)
At Period End
Securities available for sale	$	71,420		$	29,216			144		$	71,420		$	29,216			144
Loans		300,622			301,739			—			300,622			301,739			—
Allowance for loan losses		3,851			3,775			2			3,851			3,775			2
Goodwill		11,091			10,647			4			11,091			10,647			4
Assets		499,516			434,981			15			499,516			434,981			15
Core deposits (2)		260,427			239,615			9			260,427			239,615			9
Stockholders’ equity		41,894			39,278			7			41,894			39,278			7
Capital ratios
Stockholders’ equity to assets		8.39	%		9.03	%		(7	)		8.39	%		9.03	%		(7	)
Risk-based capital (4)
Tier 1 capital		8.26			8.57			(4	)		8.26			8.57			(4	)
Total capital		11.73			12.17			(4	)		11.73			12.17			(4	)
Tier 1 leverage (4)		6.91			7.28			(5	)		6.91			7.28			(5	)
Book value per common share	$	24.92		$	23.30			7		$	24.92		$	23.30			7
Team members (active, full-time equivalent)		154,300			148,600			4			154,300			148,600			4
Common Stock Price
High	$	69.71		$	62.22			12		$	69.71		$	62.75			11
Low		63.80			57.77			10			60.62			57.77			5
Period end		67.08			61.58			9			67.08			61.58			9

(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 June 30, 2006, ratios are preliminary.

-11-

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)	2006			2006			2005			2005			2005
For the Quarter
Net income	$	2,089		$	2,018		$	1,930		$	1,975		$	1,910
Diluted earnings per common share		1.23			1.19			1.14			1.16			1.12
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.71	%		1.72	%		1.63	%		1.75	%		1.76	%
Net income to average stockholders’ equity (ROE)		19.76			19.89			19.22			19.72			19.76
Efficiency ratio (1)		58.9			59.3			57.5			57.5			57.9
Total revenue	$	8,789		$	8,555		$	8,492		$	8,503		$	7,865
Dividends declared per common share		1.08			.52			.52			.52			.48
Average common shares outstanding		1,681.9			1,679.2			1,675.4			1,686.8			1,687.7
Diluted average common shares outstanding		1,702.2			1,697.9			1,693.9			1,705.3			1,707.2
Average loans	$	300,388		$	311,132		$	305,696		$	295,611		$	295,636
Average assets		491,456			475,195			468,481			448,159			435,091
Average core deposits (2)		257,695			254,012			253,386			247,187			238,308
Average retail core deposits (3)		213,588			212,921			210,729			205,078			198,805
Net interest margin		4.76	%		4.85	%		4.84	%		4.86	%		4.89	%
At Quarter End
Securities available for sale	$	71,420		$	51,195		$	41,834		$	34,480		$	29,216
Loans		300,622			306,676			310,837			296,189			301,739
Allowance for loan losses		3,851			3,845			3,871			3,886			3,775
Goodwill		11,091			11,050			10,787			10,776			10,647
Assets		499,516			492,428			481,741			453,494			434,981
Core deposits (2)		260,427			258,142			253,341			248,384			239,615
Stockholders’ equity		41,894			41,961			40,660			39,835			39,278
Capital ratios
Stockholders’ equity to assets		8.39	%		8.52	%		8.44	%		8.78	%		9.03	%
Risk-based capital (4)
Tier 1 capital		8.26			8.30			8.26			8.35			8.57
Total capital		11.73			11.49			11.64			11.84			12.17
Tier 1 leverage (4)		6.91			7.13			6.99			7.16			7.28
Book value per common share	$	24.92		$	25.02		$	24.25		$	23.74		$	23.30
Team members (active, full-time equivalent)		154,300			152,000			153,500			151,300			148,600
Common Stock Price
High	$	69.71		$	65.51		$	64.70		$	62.87		$	62.22
Low		63.80			60.62			57.62			58.00			57.77
Period end		67.08			63.87			62.83			58.57			61.58

(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 June 30, 2006, ratios are preliminary.

-12-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended June 30,					%			Six months ended June 30,					%
(in millions, except per share amounts)	2006			2005		Change			2006			2005		Change
INTEREST INCOME
Trading assets	$	65		$	54		20	%	$	134		$	98		37	%
Securities available for sale		875			429		104			1,538			885		74
Mortgages held for sale		808			481		68			1,417			911		56
Loans held for sale		11			15		(27	)		22			127		(83	)
Loans		6,245			5,163		21			12,355			9,943		24
Other interest income		73			58		26			143			109		31
Total interest income		8,077			6,200		30			15,609			12,073		29
INTEREST EXPENSE
Deposits		1,794			825		117			3,276			1,517		116
Short-term borrowings		289			164		76			559			313		79
Long-term debt		1,010			675		50			1,920			1,254		53
Total interest expense		3,093			1,664		86			5,755			3,084		87
NET INTEREST INCOME		4,984			4,536		10			9,854			8,989		10
Provision for credit losses		432			454		(5	)		865			1,039		(17	)
Net interest income after provision for credit losses		4,552			4,082		12			8,989			7,950		13
NONINTEREST INCOME
Service charges on deposit accounts		665			625		6			1,288			1,203		7
Trust and investment fees		675			597		13			1,338			1,199		12
Card fees		418			361		16			802			687		17
Other fees		510			478		7			998			931		7
Mortgage banking		735			237		210			1,150			1,051		9
Operating leases		200			202		(1	)		401			410		(2	)
Insurance		364			358		2			728			695		5
Net gains (losses) on debt securities available for sale		(156	)		39		—			(191	)		35		—
Net gains from equity investments		133			201		(34	)		323			272		19
Other		261			231		13			653			482		35
Total noninterest income		3,805			3,329		14			7,490			6,965		8
NONINTEREST EXPENSE
Salaries		1,754			1,551		13			3,426			3,031		13
Incentive compensation		714			562		27			1,382			1,027		35
Employee benefits		487			432		13			1,076			979		10
Equipment		284			263		8			619			633		(2	)
Net occupancy		345			310		11			681			714		(5	)
Operating leases		157			157		—			318			315		1
Other		1,435			1,279		12			2,748			2,547		8
Total noninterest expense		5,176			4,554		14			10,250			9,246		11
INCOME BEFORE INCOME TAX EXPENSE		3,181			2,857		11			6,229			5,669		10
Income tax expense		1,092			947		15			2,122			1,903		12
NET INCOME	$	2,089		$	1,910		9		$	4,107		$	3,766		9
EARNINGS PER COMMON SHARE	$	1.24		$	1.14		9		$	2.44		$	2.23		9
DILUTED EARNINGS PER COMMON SHARE	$	1.23		$	1.12		10		$	2.42		$	2.20		10
DIVIDENDS DECLARED PER COMMON SHARE	$	1.08		$	.48		125		$	1.60		$	.96		67
Average common shares outstanding		1,681.9			1,687.7		—			1,680.5			1,691.5		(1	)
Diluted average common shares outstanding		1,702.2			1,707.2		—			1,700.0			1,711.4		(1	)

-13-

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)	2006			2006			2005			2005			2005
INTEREST INCOME
Trading assets	$	65		$	69		$	48		$	44		$	54
Securities available for sale		875			663			594			442			429
Mortgages held for sale		808			609			628			674			481
Loans held for sale		11			11			10			9			15
Loans		6,245			6,110			5,901			5,416			5,163
Other interest income		73			70			63			60			58
Total interest income		8,077			7,532			7,244			6,645			6,200
INTEREST EXPENSE
Deposits		1,794			1,482			1,331			1,000			825
Short-term borrowings		289			270			242			189			164
Long-term debt		1,010			910			832			780			675
Total interest expense		3,093			2,662			2,405			1,969			1,664
NET INTEREST INCOME		4,984			4,870			4,839			4,676			4,536
Provision for credit losses		432			433			703			641			454
Net interest income after provision for credit losses		4,552			4,437			4,136			4,035			4,082
NONINTEREST INCOME
Service charges on deposit accounts		665			623			655			654			625
Trust and investment fees		675			663			623			614			597
Card fees		418			384			394			377			361
Other fees		510			488			478			520			478
Mortgage banking		735			415			628			743			237
Operating leases		200			201			200			202			202
Insurance		364			364			272			248			358
Net gains (losses) on debt securities available for sale		(156	)		(35	)		(124	)		(31	)		39
Net gains from equity investments		133			190			93			146			201
Other		261			392			434			354			231
Total noninterest income		3,805			3,685			3,653			3,827			3,329
NONINTEREST EXPENSE
Salaries		1,754			1,672			1,613			1,571			1,551
Incentive compensation		714			668			663			676			562
Employee benefits		487			589			428			467			432
Equipment		284			335			328			306			263
Net occupancy		345			336			344			354			310
Operating leases		157			161			161			159			157
Other		1,435			1,313			1,346			1,356			1,279
Total noninterest expense		5,176			5,074			4,883			4,889			4,554
INCOME BEFORE INCOME TAX EXPENSE		3,181			3,048			2,906			2,973			2,857
Income tax expense		1,092			1,030			976			998			947
NET INCOME	$	2,089		$	2,018		$	1,930		$	1,975		$	1,910
EARNINGS PER COMMON SHARE	$	1.24		$	1.20		$	1.15		$	1.17		$	1.14
DILUTED EARNINGS PER COMMON SHARE	$	1.23		$	1.19		$	1.14		$	1.16		$	1.12
DIVIDENDS DECLARED PER COMMON SHARE	$	1.08		$	.52		$	.52		$	.52		$	.48
Average common shares outstanding		1,681.9			1,679.2			1,675.4			1,686.8			1,687.7
Diluted average common shares outstanding		1,702.2			1,697.9			1,693.9			1,705.3			1,707.2

-14-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

	% Change
											June 30, 2006 from
	June 30,			Dec. 31,			June 30,			Dec. 31,			June 30,
(in millions, except shares)	2006			2005			2005			2005			2005
ASSETS
Cash and due from banks	$	14,069		$	15,397		$	13,962			(9	)%		1	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		5,367			5,306			5,661			1			(5	)
Trading assets		7,344			10,905			8,019			(33	)		(8	)
Securities available for sale		71,420			41,834			29,216			71			144
Mortgages held for sale		39,714			40,534			31,733			(2	)		25
Loans held for sale		594			612			651			(3	)		(9	)
Loans		300,622			310,837			301,739			(3	)		—
Allowance for loan losses		(3,851	)		(3,871	)		(3,775	)		(1	)		2
Net loans		296,771			306,966			297,964			(3	)		—
Mortgage servicing rights:
Measured at fair value (residential MSRs beginning 2006)		15,650		��	—			—			—			—
Amortized		175			12,511			8,498			(99	)		(98	)
Premises and equipment, net		4,529			4,417			4,156			3			9
Goodwill		11,091			10,787			10,647			3			4
Other assets		32,792			32,472			24,474			1			34
Total assets	$	499,516		$	481,741		$	434,981			4			15
LIABILITIES
Noninterest-bearing deposits	$	89,448		$	87,712		$	86,791			2			3
Interest-bearing deposits		237,004			226,738			188,222			5			26
Total deposits		326,452			314,450			275,013			4			19
Short-term borrowings		13,619			23,892			17,905			(43	)		(24	)
Accrued expenses and other liabilities		33,794			23,071			19,930			46			70
Long-term debt		83,757			79,668			82,855			5			1
Total liabilities		457,622			441,081			395,703			4			16
STOCKHOLDERS’ EQUITY
Preferred stock		548			325			462			69			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		10,456			9,934			9,862			5			6
Retained earnings		31,964			30,580			28,567			5			12
Cumulative other comprehensive income		155			665			771			(77	)		(80	)
Treasury stock - 55,489,921 shares, 58,797,993 shares and 49,519,417 shares		(3,537	)		(3,390	)		(2,784	)		4			27
Unearned ESOP shares		(586	)		(348	)		(494	)		68			19
Total stockholders’ equity		41,894			40,660			39,278			3			7
Total liabilities and stockholders’ equity	$	499,516		$	481,741		$	434,981			4			15

-15-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2006			2006			2005			2005			2005
ASSETS
Cash and due from banks	$	14,069		$	13,224		$	15,397		$	13,931		$	13,962
Federal funds sold, securities purchased under resale agreements and other short-term investments		5,367			4,954			5,306			5,861			5,661
Trading assets		7,344			9,930			10,905			8,477			8,019
Securities available for sale		71,420			51,195			41,834			34,480			29,216
Mortgages held for sale		39,714			43,521			40,534			46,119			31,733
Loans held for sale		594			629			612			629			651
Loans		300,622			306,676			310,837			296,189			301,739
Allowance for loan losses		(3,851	)		(3,845	)		(3,871	)		(3,886	)		(3,775	)
Net loans		296,771			302,831			306,966			292,303			297,964
Mortgage servicing rights:
Measured at fair value (residential MSRs beginning 2006)		15,650			13,800			—			—			—
Amortized		175			142			12,511			10,711			8,498
Premises and equipment, net		4,529			4,493			4,417			4,223			4,156
Goodwill		11,091			11,050			10,787			10,776			10,647
Other assets		32,792			36,659			32,472			25,984			24,474
Total assets	$	499,516		$	492,428		$	481,741		$	453,494		$	434,981
LIABILITIES
Noninterest-bearing deposits	$	89,448		$	88,701		$	87,712		$	89,304		$	86,791
Interest-bearing deposits		237,004			219,604			226,738			199,725			188,222
Total deposits		326,452			308,305			314,450			289,029			275,013
Short-term borrowings		13,619			21,350			23,892			23,243			17,905
Accrued expenses and other liabilities		33,794			36,312			23,071			22,795			19,930
Long-term debt		83,757			84,500			79,668			78,592			82,855
Total liabilities		457,622			450,467			441,081			413,659			395,703
STOCKHOLDERS’ EQUITY
Preferred stock		548			634			325			389			462
Common stock		2,894			2,894			2,894			2,894			2,894
Additional paid-in capital		10,456			10,373			9,934			9,878			9,862
Retained earnings		31,964			31,750			30,580			29,636			28,567
Cumulative other comprehensive income		155			576			665			721			771
Treasury stock		(3,537	)		(3,587	)		(3,390	)		(3,267	)		(2,784	)
Unearned ESOP shares		(586	)		(679	)		(348	)		(416	)		(494	)
Total stockholders’ equity		41,894			41,961			40,660			39,835			39,278
Total liabilities and stockholders’ equity	$	499,516		$	492,428		$	481,741		$	453,494		$	434,981

-16-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2006			2006			2005			2005			2005
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	4,855		$	5,192		$	5,158		$	5,647		$	5,653
Trading assets		5,938			6,099			5,061			4,782			6,289
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		935			866			1,051			1,042			964
Securities of U.S. states and political subdivisions		3,013			3,106			3,256			3,321			3,434
Mortgage-backed securities:
Federal agencies		40,160			27,718			23,545			17,815			17,616
Private collateralized mortgage obligations		7,176			6,562			8,060			4,245			4,181
Total mortgage-backed securities		47,336			34,280			31,605			22,060			21,797
Other debt securities (1)		6,246			5,280			4,843			3,888			3,249
Total debt securities available for sale (1)		57,530			43,532			40,755			30,311			29,444
Mortgages held for sale		51,675			39,523			42,036			47,510			34,554
Loans held for sale		585			651			603			626			1,255
Loans:
Commercial and commercial real estate:
Commercial		65,424			62,769			61,297			59,434			57,749
Other real estate mortgage		28,938			28,686			28,425			28,614			29,504
Real estate construction		14,517			13,850			13,040			12,259			9,814
Lease financing		5,429			5,436			5,347			5,252			5,176
Total commercial and commercial real estate		114,308			110,741			108,109			105,559			102,243
Consumer:
Real estate 1-4 family first mortgage		55,019			74,383			76,233			72,479			79,533
Real estate 1-4 family junior lien mortgage		62,740			59,972			58,157			56,412			54,771
Credit card		11,947			11,765			11,326			10,867			10,285
Other revolving credit and installment		50,098			48,329			46,593			45,380			44,406
Total consumer		179,804			194,449			192,309			185,138			188,995
Foreign		6,276			5,942			5,278			4,914			4,398
Total loans (2)		300,388			311,132			305,696			295,611			295,636
Other		1,363			1,389			1,415			1,511			1,677
Total earning assets	$	422,334		$	407,518		$	400,724		$	385,998		$	374,508
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,288		$	4,069		$	3,797		$	3,698		$	3,561
Market rate and other savings		134,182			134,228			132,042			129,390			128,333
Savings certificates		30,308			28,718			26,610			23,434			20,932
Other time deposits		38,288			33,726			33,321			22,204			26,378
Deposits in foreign offices		20,898			15,152			14,347			12,359			8,871
Total interest-bearing deposits		227,964			215,893			210,117			191,085			188,075
Short-term borrowings		24,836			26,180			25,395			22,797			22,687
Long-term debt		84,486			81,686			79,169			82,840			78,781
Total interest-bearing liabilities		337,286			323,759			314,681			296,722			289,543
Portion of noninterest-bearing funding sources		85,048			83,759			86,043			89,276			84,965
Total funding sources	$	422,334		$	407,518		$	400,724		$	385,998		$	374,508
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,437		$	12,897		$	13,508		$	13,100		$	12,991
Goodwill		11,075			10,963			10,780			10,736			10,646
Other		45,610			43,817			43,469			38,325			36,946
Total noninterest-earning assets	$	69,122		$	67,677		$	67,757		$	62,161		$	60,583
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	88,917		$	86,997		$	90,937		$	90,665		$	85,482
Other liabilities		22,835			23,320			23,049			21,074			21,348
Stockholders’ equity		42,418			41,119			39,814			39,698			38,718
Noninterest-bearing funding sources used to fund earning assets		(85,048	)		(83,759	)		(86,043	)		(89,276	)		(84,965	)
Net noninterest-bearing funding sources	$	69,122		$	67,677		$	67,757		$	62,161		$	60,583
TOTAL ASSETS	$	491,456		$	475,195		$	468,481		$	448,159		$	435,091

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

-17-

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

	Six months ended June 30,
(in millions)	2006			2005
Balance, beginning of period	$	40,660		$	37,866
Cumulative effect from adoption of FAS 156		101			—
Net income		4,107			3,766
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		4			(3	)
Minimum pension liability adjustment		(3	)		—
Change in valuation allowance related to:
Investment securities and other interests held		(592	)		(128	)
Derivative instruments and hedging activities		81			(48	)
Common stock issued		931			599
Common stock repurchased		(1,185	)		(1,373	)
Preferred stock released to ESOP		191			170
Common stock dividends		(2,692	)		(1,626	)
Other, net		291			55
Balance, end of period	$	41,894		$	39,278

-18-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in millions)	2006		2006		2005		2005		2005
Commercial and commercial real estate:
Commercial	$	66,014	$	63,836	$	61,552	$	60,588	$	58,877
Other real estate mortgage		29,281		28,754		28,545		28,571		28,282
Real estate construction		14,764		14,308		13,406		12,587		11,589
Lease financing		5,301		5,402		5,400		5,244		5,195
Total commercial and commercial real estate		115,360		112,300		108,903		106,990		103,943
Consumer:
Real estate 1-4 family first mortgage		50,491		66,106		77,768		69,259		81,615
Real estate 1-4 family junior lien mortgage		64,727		61,115		59,143		57,491		55,989
Credit card		12,387		11,618		12,009		11,060		10,608
Other revolving credit and installment		51,236		49,295		47,462		46,201		44,974
Total consumer		178,841		188,134		196,382		184,011		193,186
Foreign		6,421		6,242		5,552		5,188		4,610
Total loans (net of unearned income)	$	300,622	$	306,676	$	310,837	$	296,189	$	301,739

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	June 30,			Mar. 31,				Dec. 31,			Sept. 30,			June 30,
(in millions)	2006			2006				2005			2005			2005
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	253		$	256			$	286		$	293		$	338
Other real estate mortgage		137			163				165			197			193
Real estate construction		31			21				31			43			44
Lease financing		26			31				45			68			51
Total commercial and commercial real estate		447			471				527			601			626
Consumer:
Real estate 1-4 family first mortgage		585			508				471			409			357
Real estate 1-4 family junior lien mortgage		179			190				144			119			98
Other revolving credit and installment		139			188				171			149			101
							��
Total consumer		903			886				786			677			556
Foreign		45			37				25			23			20
Total nonaccrual loans		1,395			1,394				1,338			1,301			1,202
As a percentage of total loans		.46	%		.45	%			.43	%		.44	%		.40	%
Foreclosed assets:
GNMA loans (1)		238			227				—			—			—
Other		275			228				191			187			187
Real estate and other nonaccrual investments		9			—				2			2			2
Total nonaccrual loans and other assets	$	1,917		$	1,849			$	1,531		$	1,490		$	1,391
As a percentage of total loans		.64	%		.60	%			.49	%		.50	%		.46	%

(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.

-19-

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

	Quarter ended									Six months ended
	June 30,			Mar. 31,			June 30,			June 30,			June 30,
(in millions)	2006			2006			2005			2006			2005
Balance, beginning of period	$	4,025		$	4,057		$	3,950		$	4,057		$	3,950
Provision for credit losses		432			433			454			865			1,039
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(93	)		(79	)		(92	)		(172	)		(176	)
Other real estate mortgage		(1	)		(1	)		(2	)		(2	)		(5	)
Real estate construction		—			—			—			—			(5	)
Lease financing		(7	)		(9	)		(10	)		(16	)		(20	)
Total commercial and commercial real estate		(101	)		(89	)		(104	)		(190	)		(206	)
Consumer:
Real estate 1-4 family first mortgage		(22	)		(29	)		(23	)		(51	)		(59	)
Real estate 1-4 family junior lien mortgage		(28	)		(34	)		(30	)		(62	)		(63	)
Credit card		(113	)		(105	)		(134	)		(218	)		(261	)
Other revolving credit and installment		(349	)		(322	)		(296	)		(671	)		(646	)
Total consumer		(512	)		(490	)		(483	)		(1,002	)		(1,029	)
Foreign		(74	)		(74	)		(63	)		(148	)		(144	)
Total loan charge-offs		(687	)		(653	)		(650	)		(1,340	)		(1,379	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		31			27			37			58			67
Other real estate mortgage		5			1			1			6			9
Real estate construction		1			1			7			2			7
Lease financing		6			6			6			12			11
Total commercial and commercial real estate		43			35			51			78			94
Consumer:
Real estate 1-4 family first mortgage		9			3			6			12			9
Real estate 1-4 family junior lien mortgage		10			8			8			18			14
Credit card		25			24			23			49			44
Other revolving credit and installment		148			129			90			277			153
Total consumer		192			164			127			356			220
Foreign		20			21			18			41			26
Total loan recoveries		255			220			196			475			340
Net loan charge-offs		(432	)		(433	)		(454	)		(865	)		(1,039	)
Other		10			(32	)		(6	)		(22	)		(6	)
Balance, end of period	$	4,035		$	4,025		$	3,944		$	4,035		$	3,944
Components:
Allowance for loan losses	$	3,851		$	3,845		$	3,775		$	3,851		$	3,775
Reserve for unfunded credit commitments		184			180			169			184			169
Allowance for credit losses	$	4,035		$	4,025		$	3,944		$	4,035		$	3,944
Net loan charge-offs (annualized) as a percentage of average total loans		.58	%		.56	%		.62	%		.57	%		.72	%

-20-

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

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2006			2006			2005			2005			2005
Balance, beginning of quarter	$	4,025		$	4,057		$	4,057		$	3,944		$	3,950
Provision for credit losses		432			433			703			641			454
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(93	)		(79	)		(135	)		(95	)		(92	)
Other real estate mortgage		(1	)		(1	)		(1	)		(1	)		(2	)
Real estate construction		—			—			—			(1	)		—
Lease financing		(7	)		(9	)		(8	)		(7	)		(10	)
Total commercial and commercial real estate		(101	)		(89	)		(144	)		(104	)		(104	)
Consumer:
Real estate 1-4 family first mortgage		(22	)		(29	)		(28	)		(24	)		(23	)
Real estate 1-4 family junior lien mortgage		(28	)		(34	)		(36	)		(37	)		(30	)
Credit card		(113	)		(105	)		(164	)		(128	)		(134	)
Other revolving credit and installment		(349	)		(322	)		(465	)		(369	)		(296	)
Total consumer		(512	)		(490	)		(693	)		(558	)		(483	)
Foreign		(74	)		(74	)		(82	)		(72	)		(63	)
Total loan charge-offs		(687	)		(653	)		(919	)		(734	)		(650	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		31			27			31			35			37
Other real estate mortgage		5			1			3			4			1
Real estate construction		1			1			6			—			7
Lease financing		6			6			5			5			6
Total commercial and commercial real estate		43			35			45			44			51
Consumer:
Real estate 1-4 family first mortgage		9			3			6			6			6
Real estate 1-4 family junior lien mortgage		10			8			9			8			8
Credit card		25			24			22			20			23
Other revolving credit and installment		148			129			115			97			90
Total consumer		192			164			152			131			127
Foreign		20			21			19			18			18
Total loan recoveries		255			220			216			193			196
Net loan charge-offs		(432	)		(433	)		(703	)		(541	)		(454	)
Other		10			(32	)		—			13			(6	)
Balance, end of quarter	$	4,035		$	4,025		$	4,057		$	4,057		$	3,944
Components:
Allowance for loan losses	$	3,851		$	3,845		$	3,871		$	3,886		$	3,775
Reserve for unfunded credit commitments		184			180			186			171			169
Allowance for credit losses	$	4,035		$	4,025		$	4,057		$	4,057		$	3,944
Net loan charge-offs (annualized) as a percentage of average total loans		.58	%		.56	%		.91	%		.73	%		.62	%
Allowance for loan losses:
As a percentage of total loans		1.28	%		1.25	%		1.25	%		1.31	%		1.25	%
As a percentage of nonaccrual loans		276			276			289			299			314
As a percentage of nonaccrual loans and other assets		201			208			253			261			271
Allowance for credit losses:
As a percentage of total loans		1.34	%		1.31	%		1.31	%		1.37	%		1.31	%
As a percentage of nonaccrual loans		289			289			303			312			328
As a percentage of nonaccrual loans and other assets		210			218			265			272			284

-21-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended June 30,						%			Six months ended June 30,					%
(in millions)	2006			2005			Change			2006			2005		Change
Service charges on deposit accounts	$	665		$	625			6	%	$	1,288		$	1,203		7	%
Trust and investment fees:
Trust, investment and IRA fees		509			456			12			1,000			901		11
Commissions and all other fees		166			141			18			338			298		13
Total trust and investment fees		675			597			13			1,338			1,199		12
Card fees		418			361			16			802			687		17
Other fees:
Cash network fees		48			47			2			92			90		2
Charges and fees on loans		249			260			(4	)		491			505		(3	)
All other		213			171			25			415			336		24
Total other fees		510			478			7			998			931		7
Mortgage banking:
Servicing income, net		310			(99	)		—			391			357		10
Net gains on mortgage loan origination/sales activities		359			250			44			632			543		16
All other		66			86			(23	)		127			151		(16	)
Total mortgage banking		735			237			210			1,150			1,051		9
Operating leases		200			202			(1	)		401			410		(2	)
Insurance		364			358			2			728			695		5
Trading assets		91			64			42			225			207		9
Net gains (losses) on debt securities available for sale		(156	)		39			—			(191	)		35		—
Net gains from equity investments		133			201			(34	)		323			272		19
Net gains on sales of loans		2			39			(95	)		5			—		—
Net gains on dispositions of operations		—			—			—			137			1		—
All other		168			128			31			286			274		4
Total	$	3,805		$	3,329			14		$	7,490		$	6,965		8

NONINTEREST EXPENSE

	Quarter ended June 30,					%			Six months ended June 30,					%
(in millions)	2006			2005		Change			2006			2005		Change
Salaries	$	1,754		$	1,551		13	%	$	3,426		$	3,031		13	%
Incentive compensation		714			562		27			1,382			1,027		35
Employee benefits		487			432		13			1,076			979		10
Equipment		284			263		8			619			633		(2	)
Net occupancy		345			310		11			681			714		(5	)
Operating leases		157			157		—			318			315		1
Outside professional services		236			189		25			429			352		22
Contract services		139			141		(1	)		271			280		(3	)
Travel and entertainment		139			117		19			269			227		19
Outside data processing		109			121		(10	)		213			227		(6	)
Advertising and promotion		125			117		7			231			206		12
Postage		79			68		16			160			140		14
Telecommunications		73			67		9			143			139		3
Insurance		99			100		(1	)		175			179		(2	)
Stationery and supplies		55			55		—			106			100		6
Operating losses		45			26		73			107			104		3
Security		44			42		5			87			83		5
Core deposit intangibles		28			31		(10	)		57			63		(10	)
Charitable donations		19			18		6			36			40		(10	)
Net losses (gains) from debt extinguishment		(2	)		1		—			(4	)		—		—
All other		247			186		33			468			407		15
Total	$	5,176		$	4,554		14		$	10,250		$	9,246		11

-22-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2006			2006			2005			2005			2005
Service charges on deposit accounts	$	665		$	623		$	655		$	654		$	625
Trust and investment fees:
Trust, investment and IRA fees		509			491			481			473			456
Commissions and all other fees		166			172			142			141			141
Total trust and investment fees		675			663			623			614			597
Card fees		418			384			394			377			361
Other fees:
Cash network fees		48			44			45			45			47
Charges and fees on loans		249			242			237			280			260
All other		213			202			196			195			171
Total other fees		510			488			478			520			478
Mortgage banking:
Servicing income, net		310			81			257			373			(99	)
Net gains on mortgage loan origination/sales activities		359			273			269			273			250
All other		66			61			102			97			86
Total mortgage banking		735			415			628			743			237
Operating leases		200			201			200			202			202
Insurance		364			364			272			248			358
Trading assets		91			134			180			184			64
Net gains (losses) on debt securities available for sale		(156	)		(35	)		(124	)		(31	)		39
Net gains from equity investments		133			190			93			146			201
Net gains on sales of loans		2			3			2			3			39
Net gains on dispositions of operations		—			137			12			1			—
All other		168			118			240			166			128
Total	$	3,805		$	3,685		$	3,653		$	3,827		$	3,329

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,		Sept. 30,			June 30,
(in millions)	2006			2006			2005		2005			2005
Salaries	$	1,754		$	1,672		$	1,613	$	1,571		$	1,551
Incentive compensation		714			668			663		676			562
Employee benefits		487			589			428		467			432
Equipment		284			335			328		306			263
Net occupancy		345			336			344		354			310
Operating leases		157			161			161		159			157
Outside professional services		236			193			253		230			189
Contract services		139			132			153		163			141
Travel and entertainment		139			130			134		120			117
Outside data processing		109			104			108		114			121
Advertising and promotion		125			106			109		128			117
Postage		79			81			69		72			68
Telecommunications		73			70			65		74			67
Insurance		99			76			28		17			100
Stationery and supplies		55			51			57		48			55
Operating losses		45			62			38		52			26
Security		44			43			42		42			42
Core deposit intangibles		28			29			30		30			31
Charitable donations		19			17			13		8			18
Net losses (gains) from debt extinguishment		(2	)		(2	)		12		(1	)		1
All other		247			221			235		259			186
Total	$	5,176		$	5,074		$	4,883	$	4,889		$	4,554

-23-

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

	Quarter ended June 30,
	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	$	4,855			4.60	%	$	56	$	5,653			2.83	%	$	40
Trading assets		5,938			5.03			75		6,289			3.42			54
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		935			4.43			11		964			3.73			9
Securities of U.S. states and political subdivisions		3,013			8.24			60		3,434			8.29			68
Mortgage-backed securities:
Federal agencies		40,160			5.97			601		17,616			6.11			260
Private collateralized mortgage obligations		7,176			6.70			119		4,181			5.58			57
Total mortgage-backed securities		47,336			6.07			720		21,797			6.00			317
Other debt securities (4)		6,246			6.70			104		3,249			7.38			59
Total debt securities available for sale (4)		57,530			6.22			895		29,444			6.34			453
Mortgages held for sale (3)		51,675			6.25			808		34,554			5.56			481
Loans held for sale (3)		585			7.35			11		1,255			4.54			15
Loans:
Commercial and commercial real estate:
Commercial		65,424			8.12			1,324		57,749			6.59			949
Other real estate mortgage		28,938			7.29			526		29,504			6.12			450
Real estate construction		14,517			7.91			286		9,814			6.48			159
Lease financing		5,429			5.75			78		5,176			6.02			78
Total commercial and commercial real estate		114,308			7.77			2,214		102,243			6.41			1,636
Consumer:
Real estate 1-4 family first mortgage		55,019			7.36			1,011		79,533			6.36			1,263
Real estate 1-4 family junior lien mortgage		62,740			7.92			1,239		54,771			6.38			871
Credit card		11,947			13.18			393		10,285			12.17			313
Other revolving credit and installment		50,098			9.56			1,194		44,406			8.42			932
Total consumer		179,804			8.55			3,837		188,995			7.17			3,379
Foreign		6,276			12.61			198		4,398			13.86			152
Total loans (5)		300,388			8.34			6,249		295,636			7.01			5,167
Other		1,363			4.97			16		1,677			4.70			17
Total earning assets	$	422,334			7.70			8,110	$	374,508			6.68			6,227
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,288			2.80			30	$	3,561			1.31			12
Market rate and other savings		134,182			2.29			766		128,333			1.30			417
Savings certificates		30,308			3.69			279		20,932			2.71			142
Other time deposits		38,288			5.03			479		26,378			2.95			193
Deposits in foreign offices		20,898			4.59			240		8,871			2.77			61
Total interest-bearing deposits		227,964			3.16			1,794		188,075			1.76			825
Short-term borrowings		24,836			4.68			289		22,687			2.90			164
Long-term debt		84,486			4.79			1,010		78,781			3.43			675
Total interest-bearing liabilities		337,286			3.68			3,093		289,543			2.31			1,664
Portion of noninterest-bearing funding sources		85,048			—			—		84,965			—			—
Total funding sources	$	422,334			2.94			3,093	$	374,508			1.79			1,664
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.76	%	$	5,017					4.89	%	$	4,563
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,437							$	12,991
Goodwill		11,075								10,646
Other		45,610								36,946
Total noninterest-earning assets	$	69,122							$	60,583
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	88,917							$	85,482
Other liabilities		22,835								21,348
Stockholders’ equity		42,418								38,718
Noninterest-bearing funding sources used to fund earning assets		(85,048	)							(84,965	)
Net noninterest-bearing funding sources	$	69,122							$	60,583
TOTAL ASSETS	$	491,456							$	435,091

(1)	Our average prime rate was 7.90% and 5.92% for the quarters ended June 30, 2006 and 2005, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.21% and 3.29% 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
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Six months ended June 30,
	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	$	5,023			4.40	%	$	110	$	5,495			2.62	%	$	72
Trading assets		6,018			4.82			144		5,909			3.33			98
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		901			4.36			20		947			3.83			18
Securities of U.S. states and political subdivisions		3,059			8.18			120		3,503			8.35			139
Mortgage-backed securities:
Federal agencies		33,973			5.94			1,007		18,840			6.05			551
Private collateralized mortgage obligations		6,870			6.58			223		4,087			5.51			110
Total mortgage-backed securities		40,843			6.05			1,230		22,927			5.96			661
Other debt securities (4)		5,766			7.23			208		3,319			7.29			116
Total debt securities available for sale (4)		50,569			6.28			1,578		30,696			6.30			934
Mortgages held for sale (3)		45,632			6.21			1,417		33,103			5.50			911
Loans held for sale (3)		618			7.13			22		5,137			4.97			127
Loans:
Commercial and commercial real estate:
Commercial		64,104			7.92			2,519		56,470			6.40			1,793
Other real estate mortgage		28,813			7.15			1,023		29,686			6.00			883
Real estate construction		14,186			7.75			545		9,498			6.29			297
Lease financing		5,432			5.78			157		5,151			6.08			157
Total commercial and commercial real estate		112,535			7.60			4,244		100,805			6.25			3,130
Consumer:
Real estate 1-4 family first mortgage		64,648			7.06			2,270		82,047			6.18			2,524
Real estate 1-4 family junior lien mortgage		61,364			7.79			2,370		53,920			6.20			1,658
Credit card		11,856			13.20			782		10,222			12.05			616
Other revolving credit and installment		49,218			9.48			2,314		40,170			8.65			1,725
Total consumer		187,086			8.32			7,736		186,359			7.04			6,523
Foreign		6,110			12.59			383		4,319			13.84			298
Total loans (5)		305,731			8.14			12,363		291,483			6.87			9,951
Other		1,376			4.80			32		1,700			4.51			36
Total earning assets	$	414,967			7.59			15,666	$	373,523			6.55			12,129
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,179			2.52			52	$	3,464			1.18			21
Market rate and other savings		134,205			2.18			1,453		127,842			1.17			742
Savings certificates		29,517			3.58			524		20,214			2.60			261
Other time deposits		36,020			4.77			852		27,590			2.73			373
Deposits in foreign offices		18,041			4.41			395		9,480			2.56			120
Total interest-bearing deposits		221,962			2.98			3,276		188,590			1.62			1,517
Short-term borrowings		25,504			4.42			559		24,051			2.63			313
Long-term debt		83,094			4.64			1,920		77,239			3.26			1,254
Total interest-bearing liabilities		330,560			3.51			5,755		289,880			2.14			3,084
Portion of noninterest-bearing funding sources		84,407			—			—		83,643			—			—
Total funding sources	$	414,967			2.79			5,755	$	373,523			1.67			3,084
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.80	%	$	9,911					4.88	%	$	9,045
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,666							$	13,040
Goodwill		11,019								10,651
Other		44,719								35,838
Total noninterest-earning assets	$	68,404							$	59,529
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	87,963							$	83,576
Other liabilities		23,076								21,046
Stockholders’ equity		41,772								38,550
Noninterest-bearing funding sources used to fund earning assets		(84,407	)							(83,643	)
Net noninterest-bearing funding sources	$	68,404							$	59,529
TOTAL ASSETS	$	483,371							$	433,052

(1)	Our average prime rate was 7.66% and 5.68% for the six months ended June 30, 2006 and 2005, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 4.99% and 3.07% for the same quarters, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

-25-

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

(income/expense in millions,	Community				Wholesale						Wells Fargo				Consolidated
average balances in billions)	Banking				Banking						Financial				Company
Quarter ended June 30,	2006		2005		2006			2005			2006		2005		2006		2005
Net interest income	$	3,321	$	3,121	$	706		$	591		$	957	$	824	$	4,984	$	4,536
Provision (reversal of provision) for credit losses		187		197		(7	)		(10	)		252		267		432		454
Noninterest income		2,398		1,992		1,085			1,005			322		332		3,805		3,329
Noninterest expense		3,485		3,066		1,018			874			673		614		5,176		4,554
Income before income tax expense		2,047		1,850		780			732			354		275		3,181		2,857
Income tax expense		711		610		257			242			124		95		1,092		947
Net income	$	1,336	$	1,240	$	523		$	490		$	230	$	180	$	2,089	$	1,910
Average loans	$	173.9	$	189.3	$	70.4		$	61.2		$	56.1	$	45.1	$	300.4	$	295.6
Average assets (2)		327.2		289.4		97.2			88.6			61.3		51.3		491.5		435.1
Average core deposits		230.7		214.5		26.9			23.8			.1		—		257.7		238.3
Six months ended June 30,
Net interest income	$	6,577	$	6,212	$	1,386		$	1,157		$	1,891	$	1,620	$	9,854	$	8,989
Provision (reversal of provision) for credit losses		376		384		(9	)		(6	)		498		661		865		1,039
Noninterest income		4,541		4,367		2,181			1,956			768		642		7,490		6,965
Noninterest expense		6,872		6,286		2,010			1,716			1,368		1,244		10,250		9,246
Income before income tax expense		3,870		3,909		1,566			1,403			793		357		6,229		5,669
Income tax expense		1,324		1,316		515			462			283		125		2,122		1,903
Net income	$	2,546	$	2,593	$	1,051		$	941		$	510	$	232	$	4,107	$	3,766
Average loans	$	182.1	$	186.7	$	69.0		$	60.4		$	54.6	$	44.4	$	305.7	$	291.5
Average assets (2)		321.0		289.6		96.6			87.2			60.0		50.5		483.4		433.1
Average core deposits		229.4		210.4		26.4			24.7			.1		—		255.9		235.1

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. 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)

The Consolidated Company balance includes unallocated goodwill held at the enterprise level of $5.8 billion for all periods presented.

-26-

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)	2006			2006			2005		2005		2005
COMMUNITY BANKING
Net interest income	$	3,321		$	3,256		$	3,281	$	3,209	$	3,121
Provision for credit losses		187			189			285		226		197
Noninterest income		2,398			2,143			2,432		2,619		1,992
Noninterest expense		3,485			3,387			3,336		3,350		3,066
Income before income tax expense		2,047			1,823			2,092		2,252		1,850
Income tax expense		711			613			705		759		610
Net income	$	1,336		$	1,210		$	1,387	$	1,493	$	1,240
Average loans	$	173.9		$	190.4		$	190.5	$	184.4	$	189.3
Average assets		327.2			314.8			313.8		298.8		289.4
Average core deposits		230.7			228.0			228.1		223.5		214.5
WHOLESALE BANKING
Net interest income	$	706		$	680		$	638	$	598	$	591
Provision (reversal of provision) for credit losses		(7	)		(2	)		7		—		(10	)
Noninterest income		1,085			1,096			907		893		1,005
Noninterest expense		1,018			992			876		895		874
Income before income tax expense		780			786			662		596		732
Income tax expense		257			258			217		193		242
Net income	$	523		$	528		$	445	$	403	$	490
Average loans	$	70.4		$	67.6		$	64.7	$	63.3	$	61.2
Average assets		97.2			95.9			92.8		90.1		88.6
Average core deposits		26.9			25.9			25.3		23.6		23.8
WELLS FARGO FINANCIAL
Net interest income	$	957		$	934		$	920	$	869	$	824
Provision for credit losses		252			246			411		415		267
Noninterest income		322			446			314		315		332
Noninterest expense		673			695			671		644		614
Income before income tax expense		354			439			152		125		275
Income tax expense		124			159			54		46		95
Net income	$	230		$	280		$	98	$	79	$	180
Average loans	$	56.1		$	53.1		$	50.5	$	47.9	$	45.1
Average assets		61.3			58.7			56.1		53.5		51.3
Average core deposits		.1			.1			—		.1		—
CONSOLIDATED COMPANY
Net interest income	$	4,984		$	4,870		$	4,839	$	4,676	$	4,536
Provision for credit losses		432			433			703		641		454
Noninterest income		3,805			3,685			3,653		3,827		3,329
Noninterest expense		5,176			5,074			4,883		4,889		4,554
Income before income tax expense		3,181			3,048			2,906		2,973		2,857
Income tax expense		1,092			1,030			976		998		947
Net income	$	2,089		$	2,018		$	1,930	$	1,975	$	1,910
Average loans	$	300.4		$	311.1		$	305.7	$	295.6	$	295.6
Average assets (2)		491.5			475.2			468.5		448.2		435.1
Average core deposits		257.7			254.0			253.4		247.2		238.3

(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)

The Consolidated Company includes unallocated goodwill held at the enterprise level of $5.8 billion for all periods presented.

-27-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

Effective January 1, 2006, upon adoption of FAS 156, we remeasured 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
	June 30,			Mar. 31,
(in millions)	2006			2006
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	13,800		$	12,547
Purchases		511			219
Servicing from securitizations or asset transfers		1,310			989
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		550			522
Other changes in fair value (2)		(521	)		(477	)
Fair value, end of quarter	$	15,650		$	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
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2006			2006			2005			2005			2005
Amortized MSRs:
Balance, beginning of quarter	$	142		$	122		$	11,953		$	10,096		$	10,266
Purchases		39			25			912			783			453
Servicing from securitizations or asset transfers		—			—			888			850			529
Amortization		(6	)		(5	)		(486	)		(542	)		(493	)
Other (includes changes due to hedging)		—			—			431			766			(659	)
Balance, end of quarter	$	175		$	142		$	13,698		$	11,953		$	10,096
Valuation allowance:
Balance, beginning of quarter	$	—		$	—		$	1,242		$	1,598		$	1,294
Provision (reversal of provision) for MSRs in excess of fair value		—			—			(55	)		(356	)		304
Balance, end of quarter	$	—		$	—		$	1,187		$	1,242		$	1,598
Amortized MSRs, net	$	175		$	142		$	12,511		$	10,711		$	8,498
Fair value of amortized MSRs:
Beginning of quarter	$	205		$	146		$	10,845		$	8,517		$	8,989
End of quarter		252			205			12,693			10,845			8,517

-28-

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)	2006			2006			2005			2005			2005
Servicing income, net:
Servicing fees (1)	$	820		$	747		$	675		$	619		$	593
Changes in fair value of MSRs:
Due to changes in valuation model inputs or assumptions (2)		550			522			—			—			—
Other changes in fair value (3)		(521	)		(477	)		—			—			—
Amortization		(6	)		(5	)		(486	)		(542	)		(493	)
Reversal of provision (provision) for MSRs in excess of fair value		—			—			55			356			(304	)
Net derivative gains (losses):
Fair value accounting hedges (4)		—			—			(176	)		(60	)		105
Economic hedges (5)		(533	)		(706	)		189			—			—
Total servicing income, net	$	310		$	81		$	257		$	373		$	(99	)
Market-related valuation changes to MSRs, net of hedge results (2) + (5)	$	17		$	(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 and 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.

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in billions)	2006			2006			2005			2005			2005
Managed servicing portfolio:
Loans serviced for others (1)	$	1,020		$	931		$	871		$	815		$	761
Owned loans serviced (2)		90			110			118			115			113
Total owned servicing		1,110			1,041			989			930			874
Sub-servicing		23			25			27			29			32
Total managed servicing portfolio	$	1,133		$	1,066		$	1,016		$	959		$	906
Ratio of MSRs to related loans serviced for others		1.55	%		1.50	%		1.44	%		1.31	%		1.12	%
Weighted-average note rate (owned servicing only)		5.80	%		5.75	%		5.72	%		5.71	%		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.

-29-

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

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in billions)	2006			2006			2005			2005			2005
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	108		$	95		$	89		$	116		$	117
Refinances as a percentage of applications		34	%		39	%		43	%		43	%		42	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	63		$	59		$	50		$	66		$	73

	Quarter ended
	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in billions)	2006		2006		2005		2005		2005
Residential Real Estate Originations: (1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	33	$	26	$	34	$	42	$	36
Correspondent/Wholesale		70		53		64		48		37
Home equity loans and lines		11		9		12		10		9
Wells Fargo Financial		2		3		3		3		3
Total	$	116	$	91	$	113	$	103	$	85
Year-to-date	$	207	$	91	$	366	$	253	$	150

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