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

Exhibit 99

Media	Investors
Julia Tunis	Bob Strickland
(415)222-3858	(415)396-0523

Tuesday, October 17, 2006
WELLS FARGO REPORTS RECORD QUARTERLY EPS, REVENUE

Third Quarter 2006 Highlights

• Record diluted earnings per share of $0.64, up 10 percent from prior year’s $0.58, up 20 percent (annualized) from second quarter 2006

• Record net income of $2.19 billion, up 11 percent from prior year’s $1.98 billion, up 20 percent (annualized) from second quarter 2006

• Return on equity of 20 percent

• Record revenue of $8.93 billion, up 5 percent from prior year; 13 percent revenue growth in businesses other than Wells Fargo Home Mortgage (Home Mortgage)

• Average commercial and commercial real estate loans up 10 percent from prior year, up 8 percent (annualized) from second quarter 2006

• Average consumer loans (excluding real estate 1-4 family first mortgages) up 16 percent from prior year, up 19 percent (annualized) from second quarter 2006

• Average core deposits up 5 percent from prior year, up 4 percent (annualized) from second quarter 2006

Selected Financial Information	Third Quarter									Nine months ended Sept. 30
							%									%
	2006			2005			Change			2006			2005			Change
Earnings
Diluted earnings per share	$	0.64		$	0.58			10	%	$	1.85		$	1.68			10	%
Net income (in billions)		2.19			1.98			11			6.30			5.74			10
Other
Revenue (in billions)	$	8.93		$	8.50			5		$	26.28		$	24.46			7
Average loans (in billions)		304.0			295.6			3			305.1			292.9			4
Average core deposits (in billions)		260.4			247.2			5			257.4			239.2			8
Net charge-offs as % of avg. total loans		0.86	%		0.73	%		18			0.67	%		0.72	%		(7	)

All common share and per share disclosures reflect the two-for-one stock split in the form of a 100 percent stock dividend distributed August 11, 2006.

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SAN FRANCISCO — Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $0.64 for third quarter 2006, up 10 percent from $0.58 in third quarter 2005. All common share and per share disclosures reflect the two-for-one stock split in the form of a 100 percent stock dividend distributed August 11, 2006. Net income was a record $2.19 billion, up 11 percent from $1.98 billion in third quarter 2005. For the first nine months of 2006, diluted earnings per share were a record $1.85 and net income was a record $6.30 billion, both up 10 percent from the first nine months of 2005.

“The stagecoach was running on the full horsepower of our diversified business model this quarter as our talented team once again achieved double-digit EPS and net income growth,” said Chairman and CEO Dick Kovacevich. “The marketplace continues to recognize the value of our team’s ability to satisfy all our customers’ financial needs and help them succeed financially. Our stock price reached a record high during the quarter. For the twelve months ended September 30, 2006, our stock’s total return was 28 percent, more than double the S&P500’s 11 percent. Our market cap at quarter end was $122 billion, up 24 percent from the same time last year. An annual survey inBarron’s ranked us the world’s 12^th most respected company of any kind, up six places from last year. Wells Fargo Bank, N.A. was upgraded by Standard and Poor’s to ‘AA+,’ their highest rating among all U.S. banks, while maintaining the highest-possible credit rating, ‘Aaa,’ from Moody’s Investors Service. We also recently became the largest corporate purchaser of renewable energy in the U.S., just part of our commitment to be an outstanding leader in environmental responsibility and stewardship.”

Financial Performance
Diluted earnings per share were $0.64, up 10 percent from $0.58 in third quarter 2005 and up 20 percent (annualized) from $0.61 in second quarter 2006, driven by solid revenue growth and positive operating leverage. Third quarter results included $28 million of stock option expense that was not in past year’s results. “The results this quarter once again demonstrated the advantage of our diversified business model,” said Senior EVP and Chief Financial Officer Howard Atkins. “Despite the uncertain economic and interest rate environment, our diverse group of more than 80 businesses once again produced double-digit earnings growth, led by particular strength in regional banking and wholesale/commercial banking. The Company had continued strong performance on numerous financial measures, including a wider net interest margin, improved operating efficiency and, at 20 percent, the highest return on equity since first quarter 2004.”

Revenue
Revenue of $8.9 billion grew $431 million, or 5 percent, from a year ago and was up $145 million, or 7 percent (annualized), on a linked-quarter basis. Wells Fargo Home Mortgage (Home Mortgage) revenue declined $502 million to $923 million from $1.4 billion in third quarter 2005, largely due to the $356 million mortgage servicing rights valuation reserve release (income) recorded in third quarter 2005, a quarter in which long-term mortgage interest rates increased 51 basis points. Combined revenue of businesses other than Home Mortgage grew 13 percent from third quarter 2005. Businesses with double-digit, year-over-year revenue growth included business direct, regional banking, merchant card services, credit cards, debit cards, corporate trust, asset-based lending, Eastdil Secured, commercial banking, insurance, international, commercial real estate, specialized financial services and consumer finance.

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Loans
Average loans of $304.0 billion increased $8.4 billion, or 3 percent, from third quarter 2005 and increased $3.6 billion, or 5 percent (annualized), on a linked-quarter basis. Excluding real estate 1-4 family first mortgages — the loan category affected by the sale of adjustable rate mortgages (ARMs) completed in second quarter 2006 — total average loans grew by $30.7 billion, or 14 percent, from third quarter 2005 and 14 percent (annualized) on a linked-quarter basis. Average commercial and commercial real estate loans increased $11.0 billion, or 10 percent, from third quarter 2005 and $2.2 billion, or 8 percent (annualized), from second quarter 2006.

Average consumer loans decreased $4.2 billion from third quarter 2005 due to the previous sale of ARMs and increased $1.1 billion on a linked-quarter basis. Excluding real estate 1-4 family first mortgages, average consumer loans increased $18.1 billion, or 16 percent, from a year ago and increased $6 billion, or 19 percent (annualized), on a linked-quarter basis. Real estate 1-4 family junior lien mortgage, credit card, and other revolving credit and installment loans grew at double-digit rates from third quarter 2005.

Deposits
Average core deposits of $260.4 billion grew $13.2 billion, or 5 percent, from third quarter 2005, and increased $2.7 billion, or 4 percent (annualized), on a linked-quarter basis. Average mortgage escrow deposits were $19.4 billion, up $367 million from third quarter 2005 and up $1.8 billion on a linked-quarter basis. Excluding mortgage escrow balances, total average core deposits grew 6 percent from third quarter 2005 and 2 percent (annualized) on a linked-quarter basis. Average retail core deposits grew $7.4 billion, or 4 percent, from third quarter 2005 and decreased $1.1 billion on a linked-quarter basis. Average consumer checking account balances grew $4.4 billion, or 5 percent, from third quarter 2005 and declined $660 million, or 3 percent (annualized), on a linked-quarter basis. “However, we continued to achieve strong net growth in consumer checking accounts, up 4.6 percent in third quarter, including 5.4 percent in California,” said Atkins.

Net Interest Income
Net interest income increased 8 percent from a year ago and 5 percent (annualized) on a linked-quarter basis. “Despite the flat to inverted yield curve throughout the quarter, our net interest margin increased 3 basis points to 4.79 percent from second quarter 2006, reflecting our ability to grow core deposits, as well as the benefit of balance sheet repositioning completed in the second quarter,” said Atkins.

Noninterest Income
Noninterest income increased $60 million, or 2 percent, from third quarter 2005 and 9 percent (annualized) on a linked-quarter basis. Excluding mortgage banking, noninterest income increased 10 percent from third quarter 2005, reflecting strong year-over-year growth in deposit service charges (up 8 percent), trust and investment fees (up 8 percent), debit and credit card fees (up 23 percent) and insurance fees (up 26 percent).

Mortgage banking noninterest income declined $259 million from a year ago, largely due to the change in mortgage servicing rights (MSRs) valuation. In third quarter 2005 — a quarter in which long-term mortgage interest rates increased 51 basis points — the difference between MSRs impairment reserve release (income) and hedging losses was a net gain of $296 million.

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In third quarter 2006 — a quarter in which mortgage rates declined 48 basis points — the reduction in the value of MSRs net of hedging gains was a net loss of $86 million. Consolidated noninterest income in third quarter 2006 included several items related to the hedging of interest rate and spread changes in the Company’s mortgage business:

•	($86) million	Net loss on the market-related valuation changes to MSRs
•	$106 million	Gains included in net gains on debt securities related to securities held on the balance sheet as economic hedges of mortgage banking activities
•	($38) million	Loss on certain forward securities sales contracts included in other noninterest income
•	($48) million	Loss included in net gains on mortgage loan origination/sales activities due to the impact of interest rate volatility on ARMs spreads, reflecting changes in the value of ARMs production held for sale not fully offset by Treasury and LIBOR index-based economic hedging activity

At September 30, 2006, the unrealized net gains on securities available for sale were $965 million, up from a $49 million net loss at June 30, 2006.

Noninterest Expense
Noninterest expense was up $192 million, or 4 percent, from third quarter 2005 and down $95 million, or 7 percent (annualized), from second quarter 2006, resulting in positive operating leverage on both a year-over-year and linked-quarter basis. Noninterest expense included $28 million in stock option expense. “We continued to invest in our businesses during the quarter,” said Atkins. “In the last 12 months, we’ve opened 119 new regional banking stores, including 27 stores this quarter. We’ve grown our sales and service force by adding 5,100 team members (full-time equivalents), including 667 retail bankers in third quarter 2006. As a result of continued positive operating leverage, our efficiency ratio improved to 56.9 percent, the lowest since first quarter 2004.”

Credit Quality
“Our overall credit quality remained acceptable in third quarter,” said Chief Credit Officer Mike Loughlin. “Our wholesale businesses continued to show little or no loss and historically low levels of nonperforming assets. However, as shown in the following table, we saw an increase in loss rates in consumer loans from 0.91 percent (annualized) in third quarter 2005 to 1.17 percent (annualized) in third quarter 2006 due primarily to higher losses in other revolving credit and installment loans. Losses in this category increased $176 million on a linked-quarter basis primarily due to losses in the consumer auto loan portfolio. Third quarter loan losses in other consumer loan categories were comparable to, or better than, loss rates in third quarter 2005, and were well within a range of acceptable expected losses.” Third quarter net credit losses were $663 million (0.86 percent of average loans outstanding, annualized) compared with $541 million (0.73 percent) during third quarter 2005 and $432 million (0.58 percent) in second quarter 2006. Year-to-date 2006 net credit losses totaled $1.53 billion (0.67 percent) compared with year-to-date 2005 net losses of $1.58 billion (0.72 percent).

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	Third Quarter
Net loan charge-offs (annualized)
as percentage of average loans	2006			2005
Total commercial and commercial real estate		0.25	%		0.23	%
Consumer:
Real estate 1-4 family (1)		0.17			0.15
Credit card		3.38			3.89
Other revolving credit and installment		2.86			2.37
Total consumer		1.17			0.91
Foreign		3.27			4.35
Total loans		0.86	%		0.73	%

⁽¹⁾ First and junior lien mortgages

“Consumer auto loan losses increased $150 million from second quarter 2006, accounting for 65 percent of the total increase in consolidated net charge-offs in the quarter of $231 million,” said Loughlin. “The increase in consumer auto loan losses in part was due to growth and expected seasoning in the portfolio. In addition, loss rates in this portfolio increased in third quarter in large part due to collection capacity constraints experienced by Wells Fargo Financial and restrictive payment extension practices in the spring of 2006 while Wells Fargo Financial began integrating the prime and non-prime auto loan businesses. During third quarter, Wells Fargo Financial adopted collection practices and standards appropriate for the combined portfolio, began reducing higher risk new auto loans and hired additional collectors and managers, which have now been increased by almost 1,000, or 60 percent, since the beginning of the year. We believe we will see improvement in collections by early 2007, but losses will remain above normal through at least the fourth quarter given the limits to how fast the increased collection capability produces effective results. Loans 90 days or more past due and still accruing for other revolving credit and installment consumer loans increased $85 million, or 20 percent, from $431 million in second quarter 2006 to $516 million in third quarter 2006, with about half of the increase due to the auto portfolio.”

“In third quarter 2005, we provided $100 million for estimated credit losses related to Hurricane Katrina. Since that time, we have identified and recorded approximately $50 million of Katrina-related losses. Because we do not anticipate any further credit losses attributable to Katrina, we released the remaining $50 million balance in third quarter 2006. We consider the allowance for credit losses of $3.98 billion adequate to cover losses inherent in the loan portfolio at September 30, 2006,” said Loughlin.

Total nonperforming assets were $2.10 billion (0.68 percent of loans) at September 30, 2006, compared with $1.92 billion (0.64 percent) at June 30, 2006, and $1.49 billion (0.50 percent) at September 30, 2005. Foreclosed assets, a component of total nonperforming assets, included an additional $266 million and $238 million at September 30 and June 30, 2006, respectively, for fully insured repurchased Government National Mortgage Association mortgage loans.

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

Net Income	Third Quarter							Nine months ended Sept. 30
					%							%
(in millions)	2006		2005		Change			2006		2005		Change
Community Banking	$	1,473	$	1,493		(1	)	$	4,019	$	4,086		(2	)
Wholesale Banking		527		403		31			1,578		1,344		17
Wells Fargo Financial		194		79		146			704		311		126

“We’re very pleased with our performance this quarter, particularly with the continued improvement in the customer experience,” said President and Chief Operating Officer John Stumpf. “Our team’s relentless focus on satisfying all our customers’ financial needs has resulted in improved customer satisfaction and loyalty scores. According to a recent nationally syndicated customer satisfaction study, Wells Fargo was the only mortgage lender to rank in the top five of both sales volume and service satisfaction. Home Mortgage also earned Freddie Mac’s prestigious designation as a Tier One Platinum servicer for its outstanding performance in 2005. In Wholesale Banking, according to a leading research firm, Wells Fargo stands apart from the competition with excellent satisfaction scores in the commercial middle market because of our above-average relationship management model.”

More financial information about the business segments is on pages 26 and 27.

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	Third Quarter							Nine months ended Sept. 30
					%							%
(in millions)	2006		2005		Change			2006		2005		Change
Total revenue	$	5,784	$	5,828		(1	)	$	16,902	$	16,407		3
Provision for credit losses		236		226		4			612		610		—
Noninterest expense		3,392		3,350		1			10,264		9,636		7
Net income		1,473		1,493		(1	)		4,019		4,086		(2	)
Average loans (in billions)		172.5		184.4		(6	)		178.8		186.0		(4	)
Average assets (in billions)		326.7		298.8		9			322.9		292.7		10

• Average core deposits up 3 percent from prior year

• Private Client Services

o Private Banking average loans up 11 percent from prior year

o Brokerage assets under administration of $91 billion, up 16 percent from prior year

o WellsTrade^® assets of $11 billion, up 21 percent from prior year

o 3,800 PCS professionals, up 8 percent from prior year

o SmartMoney.com namedWellsTradeone of “Top Premium Brokers” (July 2006)

• Internet highlights

o 8.3 million active online customers, up 17 percent from prior year, serving 60 percent of consumer checking accounts

o 4.4 million bill payment and presentment customers, up 46 percent from prior year

o 800,000 active online small business customers, up 24 percent from prior year

o Best consumer website design (Global Financemagazine)

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Community Banking reported net income of $1.47 billion, down 1 percent from third quarter 2005. Net interest income increased $83 million, or 3 percent, compared with third quarter 2005, primarily due to growth in earning assets and deposits. Growth in earning assets continued despite the sales of low-yielding ARMs and debt securities. Noninterest income decreased $127 million, or 5 percent, compared with third quarter 2005, predominately due to lower mortgage banking noninterest income, offset by related gains on the sale of debt securities in third quarter 2006. Noninterest expense was $3.39 billion, up $42 million from third quarter 2005, primarily due to an increase in the number of platform bankers.

Regional Banking Highlights

• Record core product sales of 5.02 million, up 17 percent from prior year

• Core sales per platform sales banker FTE (active, full-time equivalent) of 5.25 per day, up from 5.11 in prior year

• Record retail bank household cross-sell of 5.1 products per consumer household

• Wells Fargo Package^SM sales up 37 percent from prior year, and were purchased by 63 percent of new checking account customers

• Net consumer checking accounts up 4.6 percent from prior year

• Added 2,066 platform banker FTEs from prior year

• Increased the number of licensed bankers by 23 percent over the prior year

• Store-based customer loyalty scores continued to improve with September 2006 up 23 percent over January 2004

• Business Banking

o Store-based business solutions up 21 percent from prior year

o Loans to small businesses (loans primarily less than $100,000 on our Business Direct platform) grew 18 percent from prior year

o Net business checking accounts up 4.2 percent from prior year

o Business Banking household cross-sell at 3.2, up from 2.9 in prior year

“Our regional banking team continued their strong performance, providing a record 5 million core product solutions (sales) to customers during third quarter, a 17 percent increase over the same period last year,” said Carrie Tolstedt, group EVP, Regional Banking. “Day in, day out, our engaged and talented team members work hard to achieve our vision of earning all of our customers’ business and helping them succeed financially. Our retail bank household cross-sell continued to rise to a record high of 5.1. Nearly 63 percent of new checking account customers purchasedWells Fargo Packages^SM — a checking account and at least three other products. Our focus on the customer experience includes 50,000 store-based customer surveys per month. We began surveying customers following transactions at the teller line in January 2004. Since that time, welcoming and wait time survey scores have improved 36 percent, and customer loyalty scores have improved 23 percent. During this same time frame, retail bank household profitability has improved 23 percent. We began surveying customers following interactions with our platform bankers in July 2005. We’ve seen a 13 percent improvement in the overall banker customer experience scores during that period. In third quarter 2006, to better serve our customers and meet all their financial needs, we added 667 platform banker FTEs, opened 27 banking stores, and added 82 net newwebATM^® machines.”

Home Mortgage and Home Equity Highlights

• Mortgage originations of $104 billion, compared with $116 billion in prior quarter and $103 billion in third quarter 2005

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• Mortgage applications of $95 billion, compared with $108 billion in prior quarter and $116 billion in third quarter 2005

• Mortgage application pipeline of $55 billion, compared with $63 billion at June 30, 2006 and $66 billion at September 30, 2005

• Owned mortgage servicing portfolio of $1.33 trillion, up 42 percent from September 30, 2005

• National Home Equity Group portfolio of $78 billion, up 9 percent from September 30, 2005

“Our owned real estate servicing portfolio grew to $1.33 trillion, up $215 billion for the quarter,” said Mark Oman, senior EVP, Home and Consumer Finance Group. “This growth included $172 billion of servicing acquired during the quarter. Our economies of skill and scale in servicing and our ability to cross sell and retain our servicing customers has made us a leader in a consolidating industry. Our servicing business benefits from a slower housing market as lower prepayments result in a lower rate of MSRs amortization. Reflecting the industry-wide slow down, residential loan originations of $104 billion for the quarter were down $12 billion from the prior quarter.”

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	Third Quarter						Nine months ended Sept. 30
					%								%
(in millions)	2006		2005		Change		2006			2005			Change
Total revenue	$	1,784	$	1,491		20	$	5,351		$	4,604			16
Reversal of provision for credit losses		—		—		—		(9	)		(6	)		50
Noninterest expense		999		895		12		3,009			2,611			15
Net income		527		403		31		1,578			1,344			17
Average loans (in billions)		72.3		63.3		14		70.1			61.3			14
Average assets (in billions)		97.5		90.1		8		96.9			88.1			10

• Net income up 31 percent year-over-year

• Acquired multi-family real estate finance firm Reilly Mortgage

• Agreed to acquire Los Angeles-based investment banking firm Barrington Associates

• Acquired Indiana-based Bodenhafer Insurance & Investment Group

• Global Financemagazine cited Wells Fargo’sCommercial Electronic Office^â (CEO^â) portal as “Best Corporate Website Design”

“We achieved another quarter of strong growth by maintaining our focus on our customers,” said Dave Hoyt, senior EVP, Wholesale Banking Group. “Our customer feedback programs, both internal and in partnership with customer research firms, confirm continuing industry leadership in satisfaction with our relationship model.

“We continue to develop our business to meet our customers’ financial needs. We expanded on our existing investment banking capabilities by agreeing to acquire Barrington Associates to provide merger and acquisition advisory services for our middle-market and private equity clients. We also expanded our business insurance brokerage company with Acordia Inc.’s acquisition of Bodenhafer Insurance & Investment Group. As we grow, we’ll continue to add skilled and experienced team members to help us serve our customers better.”

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Wholesale Banking reported net income of $527 million, up 31 percent from a year ago. Revenue was $1.78 billion, up 20 percent from third quarter 2005, driven by 9 percent earning asset growth coupled with a wider net interest margin and strong insurance, asset management, and capital markets revenue, along with the acquisition of Secured Capital in January 2006 and Reilly Mortgage in July 2006. Noninterest expense was up 12 percent from the prior year, primarily due to higher personnel-related expenses driven by higher staffing levels, along with expenses related to the Secured Capital and Reilly Mortgage acquisitions. Average loans increased 14 percent to $72.3 billion from third quarter 2005, with strength in our real estate and asset-based lending businesses. Core deposits increased 23 percent to $29.1 billion with a significant portion of the growth from new customers.

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, Canada, Latin America, the Caribbean and the Pacific Rim.

Selected Financial Information	Third Quarter							Nine months ended Sept. 30
					%							%
(in millions)	2006		2005		Change			2006		2005		Change
Total revenue	$	1,366	$	1,184		15		$	4,025	$	3,446		17
Provision for credit losses		377		415		(9	)		875		1,076		(19	)
Noninterest expense		690		644		7			2,058		1,888		9
Net income		194		79		146			704		311		126
Average loans (in billions)		59.2		47.9		24			56.2		45.6		23
Average assets (in billions)		64.7		53.5		21			61.6		51.5		20

• Average loans up 24 percent from third quarter 2005

o Real estate-secured receivables up 21 percent to $21.0 billion

o Auto finance receivables up 34 percent to $26.4 billion

“Earnings were driven by continued measured growth in receivables and positive operating leverage,” said Tom Shippee, Wells Fargo Financial president and CEO. “Excluding the $100 million provision for Hurricane Katrina in third quarter 2005, credit losses increased from a year ago. The majority of the increase related to our auto segment, reflecting some normal seasoning of the portfolio and higher delinquencies as a whole, which the entire auto industry is experiencing. Additionally, the integration of collection platforms and policies for the prime and non-prime auto portfolios contributed to higher losses. In the short term, this integration has impacted delinquency levels, but in the long term we believe it should provide cost savings through more effective and consistent processes.”

Wells Fargo Financial reported net income of $194 million, compared with $79 million in third quarter 2005. In third quarter 2006, $50 million of the Katrina-related provision was reversed. Revenue was $1.37 billion, up 15 percent from $1.18 billion in third quarter 2005. Average loans increased 24 percent to $59.2 billion from $47.9 billion a year ago.

Recorded Message
A recorded message reviewing Wells Fargo’s results is available at 5:30 a.m. Pacific Time through October 20, 2006. Dial 877-660-6853 (domestic) or 201-612-7415 (international). Enter account number 286 and conference ID 215651. The call is also available on the internet atwww.wellsfargo.com/ir andhttp://www.vcall.com/IC/CEPage.asp?ID=106337.

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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 generally and more specifically about our belief that we will see an improvement in early 2007 in collections relating to our consumer auto loans and that the integration of the collection practices for the prime and non-prime auto loan portfolios will provide cost savings in the long term and our expectation that we will not incur additional Hurricane Katrina-related losses. 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 how fast the increased collection capability for our consumer auto loans produces effective results. 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 June 30, 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 $483 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,100 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. has the highest possible credit rating, “Aaa,” from Moody’s Investors Service and the highest credit rating given to a U.S. bank, “AA+,” from Standard & Poor’s Ratings Services.

# # #

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Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

	Quarter ended Sept. 30,						%			Nine months ended Sept. 30,						%
($ in millions, except per share amounts)	2006			2005			Change			2006			2005			Change
For the Period
Net income	$	2,194		$	1,975			11	%	$	6,301		$	5,741			10	%
Diluted earnings per common share		0.64			0.58			10			1.85			1.68			10
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.76	%		1.75	%		1			1.73	%		1.75	%		(1	)
Net income to average stockholders’ equity (ROE)		20.00			19.72			1			19.89			19.70			1
Efficiency ratio (1)		56.9			57.5			(1	)		58.3			57.8			1
Total revenue	$	8,934		$	8,503			5		$	26,278		$	24,457			7
Dividends declared per common share		—			0.26			(100	)		0.80			0.74			8
Average common shares outstanding		3,371.9			3,373.5			—			3,364.6			3,379.8			—
Diluted average common shares outstanding		3,416.0			3,410.6			—			3,405.5			3,418.7			—
Average loans	$	303,980		$	295,611			3		$	305,141		$	292,874			4
Average assets		494,679			448,159			10			487,182			438,143			11
Average core deposits (2)		260,430			247,187			5			257,402			239,171			8
Average retail core deposits (3)		212,440			205,078			4			212,980			198,881			7
Net interest margin		4.79	%		4.86	%		(1	)		4.80	%		4.87	%		(1	)
At Period End
Securities available for sale	$	52,635		$	34,480			53		$	52,635		$	34,480			53
Loans		307,491			296,189			4			307,491			296,189			4
Allowance for loan losses		3,799			3,886			(2	)		3,799			3,886			(2	)
Goodwill		11,192			10,776			4			11,192			10,776			4
Assets		483,441			453,494			7			483,441			453,494			7
Core deposits (2)		260,793			248,384			5			260,793			248,384			5
Stockholders’ equity		44,862			39,835			13			44,862			39,835			13
Capital ratios
Stockholders’ equity to assets		9.28	%		8.78	%		6			9.28	%		8.78	%		6
Risk-based capital (4)
Tier 1 capital		8.76			8.35			5			8.76			8.35			5
Total capital		12.37			11.84			4			12.37			11.84			4
Tier 1 leverage (4)		7.41			7.16			3			7.41			7.16			3
Book value per common share	$	13.30		$	11.86			12		$	13.30		$	11.86			12
Team members (active, full-time equivalent)		156,400			151,300			3			156,400			151,300			3
Common Stock Price
High	$	36.89		$	31.44			17		$	36.89		$	31.44			17
Low		33.36			29.00			15			30.31			28.89			5
Period end		36.18			29.29			24			36.18			29.29			24

(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 September 30, 2006, ratios are preliminary.

-12-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
($ in millions, except per share amounts)	2006			2006			2006			2005			2005
For the Quarter
Net income	$	2,194		$	2,089		$	2,018		$	1,930		$	1,975
Diluted earnings per common share		0.64			0.61			0.60			0.57			0.58
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.76	%		1.71	%		1.72	%		1.63	%		1.75	%
Net income to average stockholders’ equity (ROE)		20.00			19.76			19.89			19.22			19.72
Efficiency ratio (1)		56.9			58.9			59.3			57.5			57.5
Total revenue	$	8,934		$	8,789		$	8,555		$	8,492		$	8,503
Dividends declared per common share		—			0.54			0.26			0.26			0.26
Average common shares outstanding		3,371.9			3,363.8			3,358.3			3,350.8			3,373.5
Diluted average common shares outstanding		3,416.0			3,404.4			3,395.7			3,387.8			3,410.6
Average loans	$	303,980		$	300,388		$	311,132		$	305,696		$	295,611
Average assets		494,679			491,456			475,195			468,481			448,159
Average core deposits (2)		260,430			257,695			254,012			253,386			247,187
Average retail core deposits (3)		212,440			213,588			212,921			210,729			205,078
Net interest margin		4.79	%		4.76	%		4.85	%		4.84	%		4.86	%
At Quarter End
Securities available for sale	$	52,635		$	71,420		$	51,195		$	41,834		$	34,480
Loans		307,491			300,622			306,676			310,837			296,189
Allowance for loan losses		3,799			3,851			3,845			3,871			3,886
Goodwill		11,192			11,091			11,050			10,787			10,776
Assets		483,441			499,516			492,428			481,741			453,494
Core deposits (2)		260,793			260,427			258,142			253,341			248,384
Stockholders’ equity		44,862			41,894			41,961			40,660			39,835
Capital ratios
Stockholders’ equity to assets		9.28	%		8.39	%		8.52	%		8.44	%		8.78	%
Risk-based capital (4)
Tier 1 capital		8.76			8.35			8.30			8.26			8.35
Total capital		12.37			11.82			11.49			11.64			11.84
Tier 1 leverage (4)		7.41			6.99			7.13			6.99			7.16
Book value per common share	$	13.30		$	12.46		$	12.50		$	12.12		$	11.86
Team members (active, full-time equivalent)		156,400			154,300			152,000			153,500			151,300
Common Stock Price
High	$	36.89		$	34.86		$	32.76		$	32.35		$	31.44
Low		33.36			31.90			30.31			28.81			29.00
Period end		36.18			33.54			31.94			31.42			29.29

(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 September 30, 2006, ratios are preliminary.

-13-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Sept. 30,					%			Nine months ended Sept. 30,					%
(in millions, except per share amounts)	2006		2005			Change			2006			2005		Change
INTEREST INCOME
Trading assets	$	45	$	44			2	%	$	179		$	142		26	%
Securities available for sale		1,014		442			129			2,552			1,327		92
Mortgages held for sale		702		674			4			2,119			1,585		34
Loans held for sale		12		9			33			34			136		(75	)
Loans		6,555		5,416			21			18,910			15,359		23
Other interest income		71		60			18			214			169		27
Total interest income		8,399		6,645			26			24,008			18,718		28
INTEREST EXPENSE
Deposits		1,997		1,000			100			5,273			2,517		109
Short-term borrowings		271		189			43			830			502		65
Long-term debt		1,084		780			39			3,004			2,034		48
Total interest expense		3,352		1,969			70			9,107			5,053		80
NET INTEREST INCOME		5,047		4,676			8			14,901			13,665		9
Provision for credit losses		613		641			(4	)		1,478			1,680		(12	)
Net interest income after provision for credit losses		4,434		4,035			10			13,423			11,985		12
NONINTEREST INCOME
Service charges on deposit accounts		707		654			8			1,995			1,857		7
Trust and investment fees		664		614			8			2,002			1,813		10
Card fees		464		377			23			1,266			1,064		19
Other fees		509		520			(2	)		1,507			1,451		4
Mortgage banking		484		743			(35	)		1,634			1,794		(9	)
Operating leases		192		202			(5	)		593			612		(3	)
Insurance		313		248			26			1,041			943		10
Net gains (losses) on debt securities available for sale		121		(31	)		—			(70	)		4		—
Net gains from equity investments		159		146			9			482			418		15
Other		274		354			(23	)		927			836		11
Total noninterest income		3,887		3,827			2			11,377			10,792		5
NONINTEREST EXPENSE
Salaries		1,769		1,571			13			5,195			4,602		13
Incentive compensation		710		676			5			2,092			1,703		23
Employee benefits		458		467			(2	)		1,534			1,446		6
Equipment		294		306			(4	)		913			939		(3	)
Net occupancy		357		354			1			1,038			1,068		(3	)
Operating leases		155		159			(3	)		473			474		—
Other		1,338		1,356			(1	)		4,086			3,903		5
Total noninterest expense		5,081		4,889			4			15,331			14,135		8
INCOME BEFORE INCOME TAX EXPENSE		3,240		2,973			9			9,469			8,642		10
Income tax expense		1,046		998			5			3,168			2,901		9
NET INCOME	$	2,194	$	1,975			11		$	6,301		$	5,741		10
EARNINGS PER COMMON SHARE	$	0.65	$	0.59			10		$	1.87		$	1.70		10
DILUTED EARNINGS PER COMMON SHARE	$	0.64	$	0.58			10		$	1.85		$	1.68		10
DIVIDENDS DECLARED PER COMMON SHARE	$	—	$	0.26			(100	)	$	0.80		$	0.74		8
Average common shares outstanding		3,371.9		3,373.5			—			3,364.6			3,379.8		—
Diluted average common shares outstanding		3,416.0		3,410.6			—			3,405.5			3,418.7		—

-14-

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

	Quarter ended
	Sept. 30,		June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions, except per share amounts)	2006		2006			2006			2005			2005
INTEREST INCOME
Trading assets	$	45	$	65		$	69		$	48		$	44
Securities available for sale		1,014		875			663			594			442
Mortgages held for sale		702		808			609			628			674
Loans held for sale		12		11			11			10			9
Loans		6,555		6,245			6,110			5,901			5,416
Other interest income		71		73			70			63			60
Total interest income		8,399		8,077			7,532			7,244			6,645
INTEREST EXPENSE
Deposits		1,997		1,794			1,482			1,331			1,000
Short-term borrowings		271		289			270			242			189
Long-term debt		1,084		1,010			910			832			780
Total interest expense		3,352		3,093			2,662			2,405			1,969
NET INTEREST INCOME		5,047		4,984			4,870			4,839			4,676
Provision for credit losses		613		432			433			703			641
Net interest income after provision for credit losses		4,434		4,552			4,437			4,136			4,035
NONINTEREST INCOME
Service charges on deposit accounts		707		665			623			655			654
Trust and investment fees		664		675			663			623			614
Card fees		464		418			384			394			377
Other fees		509		510			488			478			520
Mortgage banking		484		735			415			628			743
Operating leases		192		200			201			200			202
Insurance		313		364			364			272			248
Net gains (losses) on debt securities available for sale		121		(156	)		(35	)		(124	)		(31	)
Net gains from equity investments		159		133			190			93			146
Other		274		261			392			434			354
Total noninterest income		3,887		3,805			3,685			3,653			3,827
NONINTEREST EXPENSE
Salaries		1,769		1,754			1,672			1,613			1,571
Incentive compensation		710		714			668			663			676
Employee benefits		458		487			589			428			467
Equipment		294		284			335			328			306
Net occupancy		357		345			336			344			354
Operating leases		155		157			161			161			159
Other		1,338		1,435			1,313			1,346			1,356
Total noninterest expense		5,081		5,176			5,074			4,883			4,889
INCOME BEFORE INCOME TAX EXPENSE		3,240		3,181			3,048			2,906			2,973
Income tax expense		1,046		1,092			1,030			976			998
NET INCOME	$	2,194	$	2,089		$	2,018		$	1,930		$	1,975
EARNINGS PER COMMON SHARE	$	0.65	$	0.62		$	0.60		$	0.57		$	0.59
DILUTED EARNINGS PER COMMON SHARE	$	0.64	$	0.61		$	0.60		$	0.57		$	0.58
DIVIDENDS DECLARED PER COMMON SHARE	$	—	$	0.54		$	0.26		$	0.26		$	0.26
Average common shares outstanding		3,371.9		3,363.8			3,358.3			3,350.8			3,373.5
Diluted average common shares outstanding		3,416.0		3,404.4			3,395.7			3,387.8			3,410.6

-15-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

										% Change
										Sept. 30, 2006 from
	Sept. 30,			Dec. 31,			Sept. 30,			Dec. 31,			Sept. 30,
(in millions, except shares)	2006			2005			2005			2005			2005
ASSETS
Cash and due from banks	$	12,591		$	15,397		$	13,931			(18	)%		(10	)%
Federal funds sold, securities purchased under resale agreements and other short-term investments		4,079			5,306			5,861			(23	)		(30	)
Trading assets		5,300			10,905			8,477			(51	)		(37	)
Securities available for sale		52,635			41,834			34,480			26			53
Mortgages held for sale		39,913			40,534			46,119			(2	)		(13	)
Loans held for sale		617			612			629			1			(2	)
Loans		307,491			310,837			296,189			(1	)		4
Allowance for loan losses		(3,799	)		(3,871	)		(3,886	)		(2	)		(2	)
Net loans		303,692			306,966			292,303			(1	)		4
Mortgage servicing rights:
Measured at fair value (residential MSRs beginning 2006)		17,712			—			—			—			—
Amortized		328			12,511			10,711			(97	)		(97	)
Premises and equipment, net		4,645			4,417			4,223			5			10
Goodwill		11,192			10,787			10,776			4			4
Other assets		30,737			32,472			25,984			(5	)		18
Total assets	$	483,441		$	481,741		$	453,494			—			7
LIABILITIES
Noninterest-bearing deposits	$	86,849		$	87,712		$	89,304			(1	)		(3	)
Interest-bearing deposits		227,470			226,738			199,725			—			14
Total deposits		314,319			314,450			289,029			—			9
Short-term borrowings		13,800			23,892			23,243			(42	)		(41	)
Accrued expenses and other liabilities		26,369			23,071			22,795			14			16
Long-term debt		84,091			79,668			78,592			6			7
Total liabilities		438,579			441,081			413,659			(1	)		6
STOCKHOLDERS’ EQUITY
Preferred stock		465			325			389			43			20
Common stock — $1-2/3 par value, authorized 6,000,000,000 shares; issued 3,472,762,050 shares		5,788			5,788			5,788			—			—
Additional paid-in capital		7,667			7,040			6,984			9			10
Retained earnings		34,080			30,580			29,636			11			15
Cumulative other comprehensive income		633			665			721			(5	)		(12	)
Treasury stock — 100,057,636 shares, 117,595,986 shares and 114,421,240 shares		(3,273	)		(3,390	)		(3,267	)		(3	)		—
Unearned ESOP shares		(498	)		(348	)		(416	)		43			20
Total stockholders’ equity		44,862			40,660			39,835			10			13
Total liabilities and stockholders’ equity	$	483,441		$	481,741		$	453,494			—			7

-16-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2006			2006			2006			2005			2005
ASSETS
Cash and due from banks	$	12,591		$	14,069		$	13,224		$	15,397		$	13,931
Federal funds sold, securities purchased under resale agreements and other short-term investments		4,079			5,367			4,954			5,306			5,861
Trading assets		5,300			7,344			9,930			10,905			8,477
Securities available for sale		52,635			71,420			51,195			41,834			34,480
Mortgages held for sale		39,913			39,714			43,521			40,534			46,119
Loans held for sale		617			594			629			612			629
Loans		307,491			300,622			306,676			310,837			296,189
Allowance for loan losses		(3,799	)		(3,851	)		(3,845	)		(3,871	)		(3,886	)
Net loans		303,692			296,771			302,831			306,966			292,303
Mortgage servicing rights:
Measured at fair value (residential MSRs beginning 2006)		17,712			15,650			13,800			—			—
Amortized		328			175			142			12,511			10,711
Premises and equipment, net		4,645			4,529			4,493			4,417			4,223
Goodwill		11,192			11,091			11,050			10,787			10,776
Other assets		30,737			32,792			36,659			32,472			25,984
Total assets	$	483,441		$	499,516		$	492,428		$	481,741		$	453,494
LIABILITIES
Noninterest-bearing deposits	$	86,849		$	89,448		$	88,701		$	87,712		$	89,304
Interest-bearing deposits		227,470			237,004			219,604			226,738			199,725
Total deposits		314,319			326,452			308,305			314,450			289,029
Short-term borrowings		13,800			13,619			21,350			23,892			23,243
Accrued expenses and other liabilities		26,369			33,794			36,312			23,071			22,795
Long-term debt		84,091			83,757			84,500			79,668			78,592
Total liabilities		438,579			457,622			450,467			441,081			413,659
STOCKHOLDERS’ EQUITY
Preferred stock		465			548			634			325			389
Common stock		5,788			5,788			5,788			5,788			5,788
Additional paid-in capital		7,667			7,562			7,479			7,040			6,984
Retained earnings		34,080			31,964			31,750			30,580			29,636
Cumulative other comprehensive income		633			155			576			665			721
Treasury stock		(3,273	)		(3,537	)		(3,587	)		(3,390	)		(3,267	)
Unearned ESOP shares		(498	)		(586	)		(679	)		(348	)		(416	)
Total stockholders’ equity		44,862			41,894			41,961			40,660			39,835
Total liabilities and stockholders’ equity	$	483,441		$	499,516		$	492,428		$	481,741		$	453,494

-17-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2006			2006			2006			2005			2005
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	4,247		$	4,855		$	5,192		$	5,158		$	5,647
Trading assets		3,880			5,938			6,099			5,061			4,782
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		912			935			866			1,051			1,042
Securities of U.S. states and political subdivisions		3,240			3,013			3,106			3,256			3,321
Mortgage-backed securities:
Federal agencies		47,009			40,160			27,718			23,545			17,815
Private collateralized mortgage obligations		7,696			7,176			6,562			8,060			4,245
Total mortgage-backed securities		54,705			47,336			34,280			31,605			22,060
Other debt securities (1)		6,865			6,246			5,280			4,843			3,888
Total debt securities available for sale (1)		65,722			57,530			43,532			40,755			30,311
Mortgages held for sale		42,369			51,675			39,523			42,036			47,510
Loans held for sale		622			585			651			603			626
Loans:
Commercial and commercial real estate:
Commercial		66,216			65,424			62,769			61,297			59,434
Other real estate mortgage		29,851			28,938			28,686			28,425			28,614
Real estate construction		15,073			14,517			13,850			13,040			12,259
Lease financing		5,385			5,429			5,436			5,347			5,252
Total commercial and commercial real estate		116,525			114,308			110,741			108,109			105,559
Consumer:
Real estate 1-4 family first mortgage		50,138			55,019			74,383			76,233			72,479
Real estate 1-4 family junior lien mortgage		65,991			62,740			59,972			58,157			56,412
Credit card		12,810			11,947			11,765			11,326			10,867
Other revolving credit and installment		51,988			50,098			48,329			46,593			45,380
Total consumer		180,927			179,804			194,449			192,309			185,138
Foreign		6,528			6,276			5,942			5,278			4,914
Total loans (2)		303,980			300,388			311,132			305,696			295,611
Other		1,348			1,363			1,389			1,415			1,511
Total earning assets	$	422,168		$	422,334		$	407,518		$	400,724		$	385,998
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,370		$	4,288		$	4,069		$	3,797		$	3,698
Market rate and other savings		132,906			134,182			134,228			132,042			129,390
Savings certificates		33,909			30,308			28,718			26,610			23,434
Other time deposits		36,920			38,288			33,726			33,321			22,204
Deposits in foreign offices		22,303			20,898			15,152			14,347			12,359
Total interest-bearing deposits		230,408			227,964			215,893			210,117			191,085
Short-term borrowings		21,539			24,836			26,180			25,395			22,797
Long-term debt		84,112			84,486			81,686			79,169			82,840
Total interest-bearing liabilities		336,059			337,286			323,759			314,681			296,722
Portion of noninterest-bearing funding sources		86,109			85,048			83,759			86,043			89,276
Total funding sources	$	422,168		$	422,334		$	407,518		$	400,724		$	385,998
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,159		$	12,437		$	12,897		$	13,508		$	13,100
Goodwill		11,156			11,075			10,963			10,780			10,736
Other		49,196			45,610			43,817			43,469			38,325
Total noninterest-earning assets	$	72,511		$	69,122		$	67,677		$	67,757		$	62,161
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	89,245		$	88,917		$	86,997		$	90,937		$	90,665
Other liabilities		25,839			22,835			23,320			23,049			21,074
Stockholders’ equity		43,536			42,418			41,119			39,814			39,698
Noninterest-bearing funding sources used to fund earning assets		(86,109	)		(85,048	)		(83,759	)		(86,043	)		(89,276	)
Net noninterest-bearing funding sources	$	72,511		$	69,122		$	67,677		$	67,757		$	62,161
TOTAL ASSETS	$	494,679		$	491,456		$	475,195		$	468,481		$	448,159

(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

	Nine months ended Sept. 30,
(in millions)	2006			2005
Balance, beginning of period	$	40,660		$	37,866
Cumulative effect from adoption of FAS 156		101			—
Net income		6,301			5,741
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		4			6
Minimum pension liability adjustment		(3	)		—
Change in valuation allowance related to:
Investment securities and other interests held		(6	)		(316	)
Derivative instruments and hedging activities		(27	)		81
Common stock issued		1,419			938
Common stock issued for acquisitions		—			122
Common stock repurchased		(1,566	)		(2,343	)
Preferred stock released to ESOP		274			244
Common stock dividends		(2,695	)		(2,505	)
Other, net		400			1
Balance, end of period	$	44,862		$	39,835

 -19- 

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2006		2006		2006		2005		2005
Commercial and commercial real estate:
Commercial	$	66,797	$	66,014	$	63,836	$	61,552	$	60,588
Other real estate mortgage		29,914		29,281		28,754		28,545		28,571
Real estate construction		15,397		14,764		14,308		13,406		12,587
Lease financing		5,443		5,301		5,402		5,400		5,244
Total commercial and commercial real estate		117,551		115,360		112,300		108,903		106,990
Consumer:
Real estate 1-4 family first mortgage		49,765		50,491		66,106		77,768		69,259
Real estate 1-4 family junior lien mortgage		67,185		64,727		61,115		59,143		57,491
Credit card		13,343		12,387		11,618		12,009		11,060
Other revolving credit and installment		53,080		51,236		49,295		47,462		46,201
Total consumer		183,373		178,841		188,134		196,382		184,011
Foreign		6,567		6,421		6,242		5,552		5,188
Total loans (net of unearned income)	$	307,491	$	300,622	$	306,676	$	310,837	$	296,189

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2006			2006			2006			2005			2005
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	256		$	253		$	256		$	286		$	293
Other real estate mortgage		116			137			163			165			197
Real estate construction		90			31			21			31			43
Lease financing		27			26			31			45			68
Total commercial and commercial real estate		489			447			471			527			601
Consumer:
Real estate 1-4 family first mortgage		595			585			508			471			409
Real estate 1-4 family junior lien mortgage		200			179			190			144			119
Other revolving credit and installment		167			139			188			171			149
Total consumer		962			903			886			786			677
Foreign		38			45			37			25			23
Total nonaccrual loans		1,489			1,395			1,394			1,338			1,301
As a percentage of total loans		0.48	%		0.46	%		0.45	%		0.43	%		0.44	%
Foreclosed assets:
GNMA loans (1)		266			238			227			—			—
Other		342			275			228			191			187
Real estate and other nonaccrual investments		3			9			—			2			2
Total nonaccrual loans and other assets	$	2,100		$	1,917		$	1,849		$	1,531		$	1,490
As a percentage of total loans		0.68	%		0.64	%		0.60	%		0.49	%		0.50	%

(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
CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES

	Quarter ended									Nine months ended
	Sept. 30,			June 30,			Sept. 30,			Sept. 30,			Sept. 30,
(in millions)	2006			2006			2005			2006			2005
Balance, beginning of period	$	4,035		$	4,025		$	3,944		$	4,057		$	3,950
Provision for credit losses		613			432			641			1,478			1,680
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(103	)		(93	)		(95	)		(275	)		(271	)
Other real estate mortgage		(1	)		(1	)		(1	)		(3	)		(6	)
Real estate construction		(1	)		—			(1	)		(1	)		(6	)
Lease financing		(6	)		(7	)		(7	)		(22	)		(27	)
Total commercial and commercial real estate		(111	)		(101	)		(104	)		(301	)		(310	)
Consumer:
Real estate 1-4 family first mortgage		(30	)		(22	)		(24	)		(81	)		(83	)
Real estate 1-4 family junior lien mortgage		(36	)		(28	)		(37	)		(98	)		(100	)
Credit card		(133	)		(113	)		(128	)		(351	)		(389	)
Other revolving credit and installment		(501	)		(349	)		(369	)		(1,172	)		(1,015	)
Total consumer		(700	)		(512	)		(558	)		(1,702	)		(1,587	)
Foreign		(74	)		(74	)		(72	)		(222	)		(216	)
Total loan charge-offs		(885	)		(687	)		(734	)		(2,225	)		(2,113	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		26			31			35			84			102
Other real estate mortgage		8			5			4			14			13
Real estate construction		—			1			—			2			7
Lease financing		4			6			5			16			16
Total commercial and commercial real estate		38			43			44			116			138
Consumer:
Real estate 1-4 family first mortgage		8			9			6			20			15
Real estate 1-4 family junior lien mortgage		9			10			8			27			22
Credit card		23			25			20			72			64
Other revolving credit and installment		124			148			97			401			250
Total consumer		164			192			131			520			351
Foreign		20			20			18			61			44
Total loan recoveries		222			255			193			697			533
Net loan charge-offs		(663	)		(432	)		(541	)		(1,528	)		(1,580	)
Other		(7	)		10			13			(29	)		7
Balance, end of period	$	3,978		$	4,035		$	4,057		$	3,978		$	4,057
Components:
Allowance for loan losses	$	3,799		$	3,851		$	3,886		$	3,799		$	3,886
Reserve for unfunded credit commitments		179			184			171			179			171
Allowance for credit losses	$	3,978		$	4,035		$	4,057		$	3,978		$	4,057
Net loan charge-offs (annualized) as a percentage of average total loans		0.86	%		0.58	%		0.73	%		0.67	%		0.72	%

-21-

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

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2006			2006			2006			2005			2005
Balance, beginning of quarter	$	4,035		$	4,025		$	4,057		$	4,057		$	3,944
Provision for credit losses		613			432			433			703			641
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(103	)		(93	)		(79	)		(135	)		(95	)
Other real estate mortgage		(1	)		(1	)		(1	)		(1	)		(1	)
Real estate construction		(1	)		—			—			—			(1	)
Lease financing		(6	)		(7	)		(9	)		(8	)		(7	)
Total commercial and commercial real estate		(111	)		(101	)		(89	)		(144	)		(104	)
Consumer:
Real estate 1-4 family first mortgage		(30	)		(22	)		(29	)		(28	)		(24	)
Real estate 1-4 family junior lien mortgage		(36	)		(28	)		(34	)		(36	)		(37	)
Credit card		(133	)		(113	)		(105	)		(164	)		(128	)
Other revolving credit and installment		(501	)		(349	)		(322	)		(465	)		(369	)
Total consumer		(700	)		(512	)		(490	)		(693	)		(558	)
Foreign		(74	)		(74	)		(74	)		(82	)		(72	)
Total loan charge-offs		(885	)		(687	)		(653	)		(919	)		(734	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		26			31			27			31			35
Other real estate mortgage		8			5			1			3			4
Real estate construction		—			1			1			6			—
Lease financing		4			6			6			5			5
Total commercial and commercial real estate		38			43			35			45			44
Consumer:
Real estate 1-4 family first mortgage		8			9			3			6			6
Real estate 1-4 family junior lien mortgage		9			10			8			9			8
Credit card		23			25			24			22			20
Other revolving credit and installment		124			148			129			115			97
Total consumer		164			192			164			152			131
Foreign		20			20			21			19			18
Total loan recoveries		222			255			220			216			193
Net loan charge-offs		(663	)		(432	)		(433	)		(703	)		(541	)
Other		(7	)		10			(32	)		—			13
Balance, end of quarter	$	3,978		$	4,035		$	4,025		$	4,057		$	4,057
Components:
Allowance for loan losses	$	3,799		$	3,851		$	3,845		$	3,871		$	3,886
Reserve for unfunded credit commitments		179			184			180			186			171
Allowance for credit losses	$	3,978		$	4,035		$	4,025		$	4,057		$	4,057
Net loan charge-offs (annualized) as a percentage of average total loans		0.86	%		0.58	%		0.56	%		0.91	%		0.73	%
Allowance for loan losses as a percentage of:
Total loans		1.24	%		1.28	%		1.25	%		1.25	%		1.31	%
Nonaccrual loans		255			276			276			289			299
Nonaccrual loans and other assets		181			201			208			253			261
Allowance for credit losses as a percentage of:
Total loans		1.29	%		1.34	%		1.31	%		1.31	%		1.37	%
Nonaccrual loans		267			289			289			303			312
Nonaccrual loans and other assets		189			210			218			265			272

-22-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended Sept. 30,					%			Nine months ended Sept. 30,					%
(in millions)	2006		2005			Change			2006			2005		Change
Service charges on deposit accounts	$	707	$	654			8	%	$	1,995		$	1,857		7	%
Trust and investment fees:
Trust, investment and IRA fees		508		473			7			1,508			1,374		10
Commissions and all other fees		156		141			11			494			439		13
Total trust and investment fees		664		614			8			2,002			1,813		10
Card fees		464		377			23			1,266			1,064		19
Other fees:
Cash network fees		48		45			7			140			135		4
Charges and fees on loans		244		280			(13	)		735			785		(6	)
All other		217		195			11			632			531		19
Total other fees		509		520			(2	)		1,507			1,451		4
Mortgage banking:
Servicing income, net		188		373			(50	)		579			730		(21	)
Net gains on mortgage loan origination/sales activities		179		273			(34	)		811			816		(1	)
All other		117		97			21			244			248		(2	)
Total mortgage banking		484		743			(35	)		1,634			1,794		(9	)
Operating leases		192		202			(5	)		593			612		(3	)
Insurance		313		248			26			1,041			943		10
Trading assets		106		184			(42	)		331			391		(15	)
Net gains (losses) on debt securities available for sale		121		(31	)		—			(70	)		4		—
Net gains from equity investments		159		146			9			482			418		15
Net gains on sales of loans		2		3			(33	)		7			3		133
All other		166		167			(1	)		589			442		33
Total	$	3,887	$	3,827			2		$	11,377		$	10,792		5

NONINTEREST EXPENSE

	Quarter ended Sept. 30,						%			Nine months ended Sept. 30,						%
(in millions)	2006			2005			Change			2006			2005			Change
Salaries	$	1,769		$	1,571			13	%	$	5,195		$	4,602			13	%
Incentive compensation		710			676			5			2,092			1,703			23
Employee benefits		458			467			(2	)		1,534			1,446			6
Equipment		294			306			(4	)		913			939			(3	)
Net occupancy		357			354			1			1,038			1,068			(3	)
Operating leases		155			159			(3	)		473			474			—
Outside professional services		240			230			4			669			582			15
Contract services		143			163			(12	)		414			443			(7	)
Travel and entertainment		132			120			10			401			347			16
Outside data processing		111			114			(3	)		324			341			(5	)
Advertising and promotion		123			128			(4	)		354			334			6
Postage		75			72			4			235			212			11
Telecommunications		70			74			(5	)		213			213			—
Insurance		43			17			153			218			196			11
Stationery and supplies		57			48			19			163			148			10
Operating losses		33			52			(37	)		140			156			(10	)
Security		43			42			2			130			125			4
Core deposit intangibles		28			30			(7	)		85			93			(9	)
Charitable donations		15			8			88			51			48			6
Net gains from debt extinguishment		(2	)		(1	)		100			(6	)		(1	)		500
All other		227			259			(12	)		695			666			4
Total	$	5,081		$	4,889			4		$	15,331		$	14,135			8

-23-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Sept. 30,		June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2006		2006			2006			2005			2005
Service charges on deposit accounts	$	707	$	665		$	623		$	655		$	654
Trust and investment fees:
Trust, investment and IRA fees		508		509			491			481			473
Commissions and all other fees		156		166			172			142			141
Total trust and investment fees		664		675			663			623			614
Card fees		464		418			384			394			377
Other fees:
Cash network fees		48		48			44			45			45
Charges and fees on loans		244		249			242			237			280
All other		217		213			202			196			195
Total other fees		509		510			488			478			520
Mortgage banking:
Servicing income, net		188		310			81			257			373
Net gains on mortgage loan origination/sales activities		179		359			273			269			273
All other		117		66			61			102			97
Total mortgage banking		484		735			415			628			743
Operating leases		192		200			201			200			202
Insurance		313		364			364			272			248
Trading assets		106		91			134			180			184
Net gains (losses) on debt securities available for sale		121		(156	)		(35	)		(124	)		(31	)
Net gains from equity investments		159		133			190			93			146
Net gains on sales of loans		2		2			3			2			3
All other		166		168			255			252			167
Total	$	3,887	$	3,805		$	3,685		$	3,653		$	3,827

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,		Sept. 30,
(in millions)	2006			2006			2006			2005		2005
Salaries	$	1,769		$	1,754		$	1,672		$	1,613	$	1,571
Incentive compensation		710			714			668			663		676
Employee benefits		458			487			589			428		467
Equipment		294			284			335			328		306
Net occupancy		357			345			336			344		354
Operating leases		155			157			161			161		159
Outside professional services		240			236			193			253		230
Contract services		143			139			132			153		163
Travel and entertainment		132			139			130			134		120
Outside data processing		111			109			104			108		114
Advertising and promotion		123			125			106			109		128
Postage		75			79			81			69		72
Telecommunications		70			73			70			65		74
Insurance		43			99			76			28		17
Stationery and supplies		57			55			51			57		48
Operating losses		33			45			62			38		52
Security		43			44			43			42		42
Core deposit intangibles		28			28			29			30		30
Charitable donations		15			19			17			13		8
Net losses (gains) from debt extinguishment		(2	)		(2	)		(2	)		12		(1	)
All other		227			247			221			235		259
Total	$	5,081		$	5,176		$	5,074		$	4,883	$	4,889

-24-

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

	Quarter ended September 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	$	4,247			5.00	%	$	53	$	5,647			3.17	%	$	45
Trading assets		3,880			5.19			51		4,782			3.68			44
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		912			4.42			10		1,042			3.70			10
Securities of U.S. states and political subdivisions		3,240			7.99			63		3,321			8.12			63
Mortgage-backed securities:
Federal agencies		47,009			6.09			716		17,815			6.08			264
Private collateralized mortgage obligations		7,696			6.78			129		4,245			5.63			59
Total mortgage-backed securities		54,705			6.19			845		22,060			5.99			323
Other debt securities (4)		6,865			6.80			116		3,888			7.21			68
Total debt securities available for sale (4)		65,722			6.31			1,034		30,311			6.29			464
Mortgages held for sale (3)		42,369			6.63			702		47,510			5.68			674
Loans held for sale (3)		622			7.73			12		626			5.86			9
Loans:
Commercial and commercial real estate:
Commercial		66,216			8.36			1,395		59,434			6.83			1,023
Other real estate mortgage		29,851			7.47			562		28,614			6.42			464
Real estate construction		15,073			8.13			309		12,259			6.64			204
Lease financing		5,385			5.65			76		5,252			5.74			75
Total commercial and commercial real estate		116,525			7.98			2,342		105,559			6.64			1,766
Consumer:
Real estate 1-4 family first mortgage		50,138			7.54			951		72,479			6.60			1,201
Real estate 1-4 family junior lien mortgage		65,991			8.14			1,353		56,412			6.71			954
Credit card		12,810			13.45			431		10,867			12.38			336
Other revolving credit and installment		51,988			9.75			1,278		45,380			8.72			998
Total consumer		180,927			8.81			4,013		185,138			7.49			3,489
Foreign		6,528			12.42			204		4,914			13.35			164
Total loans (5)		303,980			8.57			6,559		295,611			7.29			5,419
Other		1,348			5.12			18		1,511			3.83			16
Total earning assets	$	422,168			7.95			8,429	$	385,998			6.89			6,671
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,370			3.24			36	$	3,698			1.50			13
Market rate and other savings		132,906			2.55			854		129,390			1.57			513
Savings certificates		33,909			4.03			344		23,434			2.98			176
Other time deposits		36,920			5.27			491		22,204			3.48			196
Deposits in foreign offices		22,303			4.84			272		12,359			3.28			102
Total interest-bearing deposits		230,408			3.44			1,997		191,085			2.08			1,000
Short-term borrowings		21,539			4.99			271		22,797			3.28			189
Long-term debt		84,112			5.13			1,084		82,840			3.75			780
Total interest-bearing liabilities		336,059			3.96			3,352		296,722			2.64			1,969
Portion of noninterest-bearing funding sources		86,109			—			—		89,276			—			—
Total funding sources	$	422,168			3.16			3,352	$	385,998			2.03			1,969
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.79	%	$	5,077					4.86	%	$	4,702
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,159							$	13,100
Goodwill		11,156								10,736
Other		49,196								38,325
Total noninterest-earning assets	$	72,511							$	62,161
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	89,245							$	90,665
Other liabilities		25,839								21,074
Stockholders’ equity		43,536								39,698
Noninterest-bearing funding sources used to fund earning assets		(86,109	)							(89,276	)
Net noninterest-bearing funding sources	$	72,511							$	62,161
TOTAL ASSETS	$	494,679							$	448,159

(1)	Our average prime rate was 8.25% and 6.42% for the quarters ended September 30, 2006 and 2005, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.43% and 3.77% 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
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Nine months ended September 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	$	4,761			4.58	%	$	163	$	5,546			2.81	%	$	117
Trading assets		5,298			4.91			195		5,529			3.43			142
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		905			4.38			30		979			3.78			28
Securities of U.S. states and political subdivisions		3,120			8.11			183		3,441			8.28			202
Mortgage-backed securities:
Federal agencies		38,366			5.99			1,723		18,495			6.06			815
Private collateralized mortgage obligations		7,149			6.65			352		4,140			5.55			169
Total mortgage-backed securities		45,515			6.10			2,075		22,635			5.97			984
Other debt securities (4)		6,136			7.06			324		3,511			7.25			184
Total debt securities available for sale (4)		55,676			6.28			2,612		30,566			6.30			1,398
Mortgages held for sale (3)		44,533			6.34			2,119		37,958			5.57			1,585
Loans held for sale (3)		619			7.33			34		3,617			5.02			136
Loans:
Commercial and commercial real estate:
Commercial		64,816			8.07			3,914		57,469			6.55			2,816
Other real estate mortgage		29,162			7.26			1,585		29,325			6.14			1,347
Real estate construction		14,485			7.89			854		10,428			6.43			501
Lease financing		5,416			5.74			233		5,185			5.97			232
Total commercial and commercial real estate		113,879			7.73			6,586		102,407			6.39			4,896
Consumer:
Real estate 1-4 family first mortgage		59,758			7.20			3,221		78,822			6.31			3,725
Real estate 1-4 family junior lien mortgage		62,923			7.91			3,723		54,760			6.38			2,612
Credit card		12,178			13.29			1,213		10,439			12.16			952
Other revolving credit and installment		50,152			9.57			3,592		41,926			8.68			2,723
Total consumer		185,011			8.49			11,749		185,947			7.19			10,012
Foreign		6,251			12.53			587		4,520			13.66			462
Total loans (5)		305,141			8.29			18,922		292,874			7.01			15,370
Other		1,366			4.90			50		1,637			4.30			52
Total earning assets	$	417,394			7.72			24,095	$	377,727			6.66			18,800
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,243			2.77			88	$	3,543			1.29			34
Market rate and other savings		133,767			2.31			2,307		128,364			1.31			1,255
Savings certificates		30,997			3.75			868		21,299			2.74			437
Other time deposits		36,324			4.94			1,343		25,775			2.95			569
Deposits in foreign offices		19,477			4.58			667		10,450			2.85			222
Total interest-bearing deposits		224,808			3.14			5,273		189,431			1.78			2,517
Short-term borrowings		24,168			4.59			830		23,629			2.84			502
Long-term debt		83,437			4.81			3,004		79,126			3.43			2,034
Total interest-bearing liabilities		332,413			3.66			9,107		292,186			2.31			5,053
Portion of noninterest-bearing funding sources		84,981			—			—		85,541			—			—
Total funding sources	$	417,394			2.92			9,107	$	377,727			1.79			5,053
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.80	%	$	14,988					4.87	%	$	13,747
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,495							$	13,060
Goodwill		11,066								10,680
Other		46,227								36,676
Total noninterest-earning assets	$	69,788							$	60,416
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	88,395							$	85,965
Other liabilities		24,007								21,055
Stockholders’ equity		42,367								38,937
Noninterest-bearing funding sources used to fund earning assets		(84,981	)							(85,541	)
Net noninterest-bearing funding sources	$	69,788							$	60,416
TOTAL ASSETS	$	487,182							$	438,143

(1)	Our average prime rate was 7.86% and 5.93% for the nine months ended September 30, 2006 and 2005, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.14% and 3.30% for the same periods, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields 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.

-26-

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 September 30,	2006		2005		2006			2005			2006		2005		2006		2005
Net interest income	$	3,292	$	3,209	$	751		$	598		$	1,004	$	869	$	5,047	$	4,676
Provision for credit losses		236		226		—			—			377		415		613		641
Noninterest income		2,492		2,619		1,033			893			362		315		3,887		3,827
Noninterest expense		3,392		3,350		999			895			690		644		5,081		4,889
Income before income tax expense		2,156		2,252		785			596			299		125		3,240		2,973
Income tax expense		683		759		258			193			105		46		1,046		998
Net income	$	1,473	$	1,493	$	527		$	403		$	194	$	79	$	2,194	$	1,975
Average loans	$	172.5	$	184.4	$	72.3		$	63.3		$	59.2	$	47.9	$	304.0	$	295.6
Average assets (2)		326.7		298.8		97.5			90.1			64.7		53.5		494.7		448.2
Average core deposits		231.2		223.5		29.1			23.6			0.1		0.1		260.4		247.2
Nine months ended September 30,
Net interest income	$	9,869	$	9,421	$	2,137		$	1,755		$	2,895	$	2,489	$	14,901	$	13,665
Provision (reversal of provision) for credit losses		612		610		(9	)		(6	)		875		1,076		1,478		1,680
Noninterest income		7,033		6,986		3,214			2,849			1,130		957		11,377		10,792
Noninterest expense		10,264		9,636		3,009			2,611			2,058		1,888		15,331		14,135
Income before income tax expense		6,026		6,161		2,351			1,999			1,092		482		9,469		8,642
Income tax expense		2,007		2,075		773			655			388		171		3,168		2,901
Net income	$	4,019	$	4,086	$	1,578		$	1,344		$	704	$	311	$	6,301	$	5,741
Average loans	$	178.8	$	186.0	$	70.1		$	61.3		$	56.2	$	45.6	$	305.1	$	292.9
Average assets (2)		322.9		292.7		96.9			88.1			61.6		51.5		487.2		438.1
Average core deposits		230.0		214.9		27.3			24.3			0.1		—		257.4		239.2

(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 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.

-27-

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

	Quarter ended
	Sept. 30,		June 30,			Mar. 31,			Dec. 31,		Sept. 30,
(income/expense in millions, average balances in billions)	2006		2006			2006			2005		2005
COMMUNITY BANKING
Net interest income	$	3,292	$	3,321		$	3,256		$	3,281	$	3,209
Provision for credit losses		236		187			189			285		226
Noninterest income		2,492		2,398			2,143			2,432		2,619
Noninterest expense		3,392		3,485			3,387			3,336		3,350
Income before income tax expense		2,156		2,047			1,823			2,092		2,252
Income tax expense		683		711			613			705		759
Net income	$	1,473	$	1,336		$	1,210		$	1,387	$	1,493
Average loans	$	172.5	$	173.9		$	190.4		$	190.5	$	184.4
Average assets		326.7		327.2			314.8			313.8		298.8
Average core deposits		231.2		230.7			228.0			228.1		223.5
WHOLESALE BANKING
Net interest income	$	751	$	706		$	680		$	638	$	598
Provision (reversal of provision) for credit losses		—		(7	)		(2	)		7		—
Noninterest income		1,033		1,085			1,096			907		893
Noninterest expense		999		1,018			992			876		895
Income before income tax expense		785		780			786			662		596
Income tax expense		258		257			258			217		193
Net income	$	527	$	523		$	528		$	445	$	403
Average loans	$	72.3	$	70.4		$	67.6		$	64.7	$	63.3
Average assets		97.5		97.2			95.9			92.8		90.1
Average core deposits		29.1		26.9			25.9			25.3		23.6
WELLS FARGO FINANCIAL
Net interest income	$	1,004	$	957		$	934		$	920	$	869
Provision for credit losses		377		252			246			411		415
Noninterest income		362		322			446			314		315
Noninterest expense		690		673			695			671		644
Income before income tax expense		299		354			439			152		125
Income tax expense		105		124			159			54		46
Net income	$	194	$	230		$	280		$	98	$	79
Average loans	$	59.2	$	56.1		$	53.1		$	50.5	$	47.9
Average assets		64.7		61.3			58.7			56.1		53.5
Average core deposits		0.1		0.1			0.1			—		0.1
CONSOLIDATED COMPANY
Net interest income	$	5,047	$	4,984		$	4,870		$	4,839	$	4,676
Provision for credit losses		613		432			433			703		641
Noninterest income		3,887		3,805			3,685			3,653		3,827
Noninterest expense		5,081		5,176			5,074			4,883		4,889
Income before income tax expense		3,240		3,181			3,048			2,906		2,973
Income tax expense		1,046		1,092			1,030			976		998
Net income	$	2,194	$	2,089		$	2,018		$	1,930	$	1,975
Average loans	$	304.0	$	300.4		$	311.1		$	305.7	$	295.6
Average assets (2)		494.7		491.5			475.2			468.5		448.2
Average core deposits		260.4		257.7			254.0			253.4		247.2

(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 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.

-28-

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
	Sept. 30,			June 30,			Mar. 31,
(in millions)	2006			2006			2006
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	15,650		$	13,800		$	12,547
Purchases		2,907			511			219
Servicing from securitizations or asset transfers		965			1,310			989
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		(1,147	)		550			522
Other changes in fair value (2)		(663	)		(521	)		(477	)
Fair value, end of quarter	$	17,712		$	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
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2006			2006			2006			2005			2005
Amortized MSRs:
Balance, beginning of quarter	$	175		$	142		$	122		$	11,953		$	10,096
Purchases		161			39			25			912			783
Servicing from securitizations or asset transfers		2			—			—			888			850
Amortization		(10	)		(6	)		(5	)		(486	)		(542	)
Other (includes changes due to hedging)		—			—			—			431			766
Balance, end of quarter	$	328		$	175		$	142		$	13,698		$	11,953
Valuation allowance:
Balance, beginning of quarter	$	—		$	—		$	—		$	1,242		$	1,598
Reversal of provision for MSRs in excess of fair value		—			—			—			(55	)		(356	)
Balance, end of quarter	$	—		$	—		$	—		$	1,187		$	1,242
Amortized MSRs, net	$	328		$	175		$	142		$	12,511		$	10,711
Fair value of amortized MSRs:
Beginning of quarter	$	252		$	205		$	146		$	10,845		$	8,517
End of quarter		440			252			205			12,693			10,845

-29-

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

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2006			2006			2006			2005			2005
Servicing income, net:
Servicing fees (1)	$	947		$	820		$	747		$	675		$	619
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)		(1,147	)		550			522			—			—
Other changes in fair value (3)		(663	)		(521	)		(477	)		—			—
Amortization		(10	)		(6	)		(5	)		(486	)		(542	)
Reversal of provision for MSRs in excess of fair value		—			—			—			55			356
Net derivative gains (losses):
Fair value accounting hedges (4)		—			—			—			(176	)		(60	)
Economic hedges (5)		1,061			(533	)		(706	)		189			—
Total servicing income, net	$	188		$	310		$	81		$	257		$	373
Market-related valuation changes to MSRs, net of hedge results (2) + (5)	$	(86	)	$	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 (economic hedges) used to hedge the risk of changes in fair value of MSRs.

	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in billions)	2006			2006			2006			2005			2005
Managed servicing portfolio:
Loans serviced for others (1)	$	1,235		$	1,020		$	931		$	871		$	815
Owned loans serviced (2)		90			90			110			118			115
Total owned servicing		1,325			1,110			1,041			989			930
Sub-servicing		20			23			25			27			29
Total managed servicing portfolio	$	1,345		$	1,133		$	1,066		$	1,016		$	959
Ratio of MSRs to related loans serviced for others		1.46	%		1.55	%		1.50	%		1.44	%		1.31	%
Weighted-average note rate (owned servicing only)		5.86	%		5.80	%		5.75	%		5.72	%		5.71	%

(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.

-30-

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

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in billions)	2006			2006			2006			2005			2005
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	95		$	108		$	95		$	89		$	116
Refinances as a percentage of applications		41	%		34	%		39	%		43	%		43	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	55		$	63		$	59		$	50		$	66

	Quarter ended
	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in billions)	2006		2006		2006		2005		2005
Residential Real Estate Originations: (1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	29	$	33	$	26	$	34	$	42
Correspondent/Wholesale (2)		63		70		53		64		48
Home equity loans and lines		10		11		9		12		10
Wells Fargo Financial		2		2		3		3		3
Total	$	104	$	116	$	91	$	113	$	103
Year-to-date	$	311	$	207	$	91	$	366	$	253

(1)	Consists of residential real estate originations from all Wells Fargo channels.
(2)	Includes $27 billion, $35 billion, $25 billion, $25 billion and $11 billion of co-issue volume, respectively. Under co-issue arrangements, Wells Fargo becomes the servicer when the correspondent securitizes the related loans.