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

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

Tuesday, January 16, 2007
WELLS FARGO REPORTS RECORD ANNUAL REVENUE, EPS

2006 Highlights:

• Record diluted earnings per share of $2.49, up 11 percent

• Record net income of $8.48 billion, up 11 percent

• Return on equity of 19.65 percent

• Record revenue of $35.69 billion, up 8 percent; 12 percent revenue growth in businesses other than Wells Fargo Home Mortgage (Home Mortgage)

Fourth Quarter 2006 Highlights:

•	Diluted earnings per share of $0.64, up 12 percent from prior year
•	Net income of $2.18 billion, up 13 percent from prior year
•	Record revenue of $9.41 billion, up 11 percent from prior year; 14 percent revenue growth in businesses other than Home Mortgage
•	Strong loan growth
	o  Average loans up 11 percent (annualized) from prior quarter
	o  Average commercial and commercial real estate loans up 10 percent (annualized) from prior quarter
•	Average core deposits up 6 percent from prior year; up 11 percent (annualized) from prior quarter
•	Net interest margin of 4.93 percent, up 9 basis points from prior year, up 14 basis points from prior quarter

Selected Financial Information	Full Year									Fourth Quarter
							%									%
Earnings	2006			2005			Change			2006			2005			Change
Diluted earnings per share	$	2.49		$	2.25			11	%	$	0.64		$	0.57			12	%
Net income (in billions)		8.48			7.67			11			2.18			1.93			13
Asset Quality
Net charge-offs as % of avg. total loans		0.73	%		0.77	%		(5	)		0.92	%		0.91	%		1
Nonperforming loans as % of total loans		0.52			0.43			21			0.52			0.43			21
Other
Revenue (in billions)	$	35.69		$	32.95			8		$	9.41		$	8.49			11
Average loans (in billions)		306.9			296.1			4			312.2			305.7			2
Average core deposits (in billions)		260.0			242.8			7			267.8			253.4			6

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SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $2.49 for 2006, up 11 percent from $2.25 in 2005. Net income was a record $8.48 billion, up 11 percent from $7.67 billion in 2005. For fourth quarter 2006, net income was $2.18 billion, or $0.64 per share, compared with $1.93 billion, or $0.57 per share, for fourth quarter 2005, an increase in earnings per share of 12 percent.

“Our outstanding team has done it again – another terrific year of exceptional, broad-based performance across our more than 80 businesses with double-digit growth for the quarter in both revenue and earnings per share,” said Chairman and CEO Dick Kovacevich. “But that’s nothing new. Over the past twenty years, our annual compound growth rate in earnings per share was 14 percent and our annual compound rate in revenue was 12 percent. Our total annual compound stockholder return of 14 percent the past five years was more than double the S&P 500^® – and at 15 percent almost double for the past ten years. We far out-paced the S&P 500 the past 15 and 20 years with total annual compound shareholder returns of 18 percent and 21 percent, respectively – periods with almost every economic cycle and economic condition a financial institution can experience. Our cross-sell set records for the eighth consecutive year – 5.2 products per Community Banking household, almost one in five have more than eight, six for Wholesale Banking customers, and our average middle-market commercial banking customer has more than seven products. We became the first major U.S. bank to enable customers to wire money account-to-account to China and Vietnam. We continue to be #1 in many categories of financial services nationally, including retail mortgage originations, home equity lending, small business lending, agricultural lending, internet banking, and provider of financial services to middle-market companies in the western U.S.”

Financial Performance
“Fourth quarter earnings per share growth of 12 percent capped another year of double-digit earnings growth, driven by strong revenue growth, wider operating margins and continued strengthening of our balance sheet,” said Chief Financial Officer Howard Atkins. “The breadth and depth of our business model, once again in the fourth quarter, resulted in very strong and balanced growth across market segments (community banking earnings up 9 percent; wholesale banking earnings up 14 percent; Wells Fargo Financial earnings up 64 percent), across product sources (net interest income up 4 percent, noninterest income up 19 percent) and across businesses (double-digit revenue and/or profit growth in regional banking, business direct, private client services, credit and debit card, corporate trust, commercial banking, asset-based lending, asset management, Eastdil Realty, insurance, international, commercial real estate, and specialized financial services).”

Revenue
Revenue for the year was a record $35.7 billion, up 8 percent from $32.9 billion in 2005. Revenue growth accelerated to 11 percent in the fourth quarter, up $921 million from a year ago to $9.4 billion in fourth quarter 2006. On a linked-quarter basis, revenue increased $479 million, or 21 percent (annualized). Full-year Home Mortgage revenue declined $704 million to $4.2 billion in 2006 from $4.9 billion in 2005 and declined $116 million to $1.0 billion in fourth quarter 2006 from $1.1 billion in fourth quarter 2005. On a linked-quarter basis, Home Mortgage revenue increased $110 million. Combined revenue in businesses other than Home Mortgage grew 12 percent on a full-year basis from 2005 to 2006, increased 14 percent from fourth quarter 2005 to fourth quarter 2006 and increased 18 percent (annualized) on a linked-quarter basis. Virtually every major business line other than Home Mortgage generated double-digit revenue growth.

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Loans
Average loans of $312.2 billion in fourth quarter 2006 grew $8.2 billion, or 11 percent (annualized), on a linked-quarter basis and growth was not affected by any adjustable rate mortgages (ARMs) sales. Year-over-year, average loans increased $6.5 billion, or 2 percent. Excluding real estate 1-4 family first mortgage – the loan category affected by the sale of ARMs during the year – total average loans grew by $31.9 billion, or 14 percent, from fourth quarter 2005.

Average commercial and commercial real estate loans increased $11.5 billion, or 11 percent, from fourth quarter 2005 and increased $3.0 billion, or 10 percent (annualized), on a linked-quarter basis. Year-over-year, there has been double-digit growth for nine consecutive quarters.

Average consumer loans increased $5.1 billion, or 11 percent (annualized), on a linked-quarter basis and decreased $6.3 billion from fourth quarter 2005 due to the previous sales of ARMs. Excluding real estate 1-4 family first mortgages, average consumer loans increased $19.1 billion, or 16 percent, from a year ago. Average real estate 1-4 family junior lien mortgage, credit card, and other revolving credit and installment loans grew at double-digit rates from a year ago.

Deposits
Average core deposits of $267.8 billion for fourth quarter 2006 increased $7.4 billion, or 11 percent (annualized), on a linked-quarter basis and grew $14.4 billion, or 6 percent, from fourth quarter 2005. Average mortgage escrow deposits were $20.2 billion for fourth quarter 2006, up $2.5 billion from fourth quarter 2005 and up $846 million on a linked-quarter basis. Excluding mortgage escrow balances, total average core deposits grew 5 percent from fourth quarter 2005 and 11 percent (annualized) on a linked-quarter basis. Average retail core deposits grew $5.3 billion, or 3 percent, from fourth quarter 2005 and increased $3.6 billion, or 7 percent (annualized), on a linked-quarter basis. Average net new consumer checking accounts grew 4.7 percent from fourth quarter 2005. “We continued to experience good growth in core deposits and in net new checking accounts,” said Atkins.

Net Interest Income
Net interest income for fourth quarter 2006 increased 4 percent from a year ago and was relatively flat from third quarter 2006. For the fourth quarter, the net interest margin increased 14 basis points to 4.93 percent on a linked-quarter basis, increased 9 basis points from a year ago and increased 10 basis points from mid-2004 when the Federal Reserve began raising interest rates. “The increase in the margin was driven by several factors,” said Atkins. “First, we sold our lowest-yielding long-term securities in the third quarter, in part related to our use of securities to hedge a portion of our mortgage servicing rights (MSRs). Second, high-quality, higher-yielding commercial and consumer loans grew solidly in the fourth quarter relative to lower-yielding securities and mortgages held for sale. Third, we continued to experience good deposit growth while maintaining our deposit pricing discipline.”

Noninterest Income
Noninterest income increased $710 million, or 19 percent, from fourth quarter 2005 and 49 percent (annualized) on a linked-quarter basis. Noninterest income increased across the Company’s businesses with strong double-digit increases from fourth quarter 2005 in trust and investment fees (up 18 percent); debit and credit card fees (up 22 percent); other fees, primarily commercial real estate brokerage (up 15 percent); and insurance fees (up 10 percent). Capital

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markets and equity investment results also were strong during the quarter. At December 31, 2006, the unrealized net gains on securities available for sale were $926 million.

Mortgage banking noninterest income increased $49 million from fourth quarter 2005, and $193 million from third quarter 2006, primarily due to higher servicing fees as the total servicing portfolio continued to grow, and improved margins on sales of loans. In fourth quarter 2006, market-related valuation changes to MSRs, net of hedge results, were largely offset by other related valuation and interest rate driven charges to mortgage banking noninterest income.

Noninterest Expense
Noninterest expense was up $528 million, or 11 percent, from fourth quarter 2005 and up $330 million from third quarter 2006. Noninterest expense for fourth quarter 2006 included $26 million in stock option expense and a $31 million expense paid in the quarter to call approximately $800 million of trust preferred securities. Because the Company was able to refinance this debt at a rate approximately 200 basis points lower, its net interest expense will be reduced by approximately $320 million over the next twenty years. Fourth quarter expenses also included approximately $84 million of expenses ($22 million of which was integration-related) from companies or businesses acquired during 2006, including Secured Capital Corp. and the operating platform of the servicing portfolio acquired from Washington Mutual. “We continued to invest in our people and our businesses,” said Atkins. “In 2006, we opened 109 regional banking stores, including 33 stores this quarter. We grew our sales and service force by adding 4,497 team members (full-time equivalents) in 2006, including 1,914 retail platform bankers. Despite these added expenses, our efficiency ratio was 57.5 percent in fourth quarter 2006, flat from a year ago and up slightly from 56.9 percent in third quarter 2006. All of the slight increase in the efficiency ratio from third quarter 2006 was essentially due to the $31 million call premium expense and the $22 million of integration expense.”

Credit Quality
“Fourth quarter 2006 credit results were in line with our expectations,” said Chief Credit Officer Mike Loughlin. Fourth quarter net credit losses were $726 million (0.92 percent of average loans, annualized) compared with $663 million (0.86 percent) in third quarter 2006 and $703 million (0.91 percent) in fourth quarter 2005. Fourth quarter 2005 net losses included $171 million (0.22 percent) of incremental one-time losses attributed to bankruptcy legislation enacted during that quarter.

“All loan portfolios, excluding auto, continued to perform at or better than expectations,” said Loughlin. “We saw a modest increase in residential real estate losses from very low run rates. We continued to be satisfied with the performance of our residential first and second mortgage portfolios. In the wholesale loan portfolios, loss rates continued to be low, but we expect them to modestly increase during 2007.

“As expected, during the fourth quarter, the auto loan portfolio continued to post losses at elevated levels, although compared with the third quarter, losses in that category were essentially flat. During the fourth quarter, we continued to hire and train new collectors and contracted with external collections vendors to increase capacity. We also adjusted account acquisition strategies to reduce new loan volumes, particularly in higher-risk tiers. We anticipate these actions will stabilize losses in early 2007 and lead to improved loss rates. We monitor vintage credit performance to identify potential adverse credit or economic trends. We saw higher delinquency and losses in recent auto vintages, consistent with industry-wide experience.

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We did not see any material deterioration of any vintages, including the most recent vintages, in other consumer portfolios, such as credit cards or home equity.”

Total nonperforming assets were $2.42 billion (0.76 percent of loans) at December 31, 2006, compared with $2.10 billion (0.68 percent) at September 30, 2006. Fully insured GNMA mortgages in foreclosure of $322 million and $266 million were included in the fourth and third quarter balances, respectively. At year-end 2005, nonperforming assets were $1.53 billion (0.49 percent). “Residential real estate loans and repossessed autos comprised about 70 percent of total nonperforming assets and had relatively low loss content,” said Loughlin. “Commercial and commercial real estate nonperforming assets, at $543 million, remained at historically low levels and had minimal land, real estate construction or condo conversion exposure.”

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

	Full Year						Fourth Quarter
					%						%
Net income (in millions)	2006		2005		Change		2006		2005		Change
Community Banking	$	5,531	$	5,473		1	$	1,512	$	1,387		9
Wholesale Banking		2,086		1,789		17		508		445		14
Wells Fargo Financial		865		409		111		161		98		64

“The value of our diversified business model and the efforts of our outstanding team members have once again led to strong financial performance and an improved customer experience,” said President and Chief Operating Officer John Stumpf. “We’ve said that an engaged team creates loyal customers and, in 2006, we continued to set new records in team member engagement and customer cross-sell. Our customers continued to benefit from the investments we’ve made in our broad distribution network of stores, phone bank, ATMs and wellsfargo.com. Placer Sierra Bancshares, which we recently agreed to acquire, pending necessary approvals, will help increase Wells Fargo’s presence in California and provide more service points for our customers. Our team remains focused on satisfying all of the financial needs of our customers and helping them succeed financially.”

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	Full Year							Fourth Quarter
					%							%
(in millions)	2006		2005		Change			2006		2005		Change
Total revenue	$	23,032	$	22,120		4		$	6,130	$	5,713		7
Provision for credit losses		887		895		(1	)		275		285		(4	)
Noninterest expense		13,822		12,972		7			3,558		3,336		7
Net income		5,531		5,473		1			1,512		1,387		9
Average loans (in billions)		178.0		187.0		(5	)		175.7		190.5		(8	)
Average assets (in billions)		320.2		297.7		8			311.9		313.8		(1	)

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Private Client Services highlights

• Private Banking average deposits up 15 percent from prior year; average loans up 8 percent from prior year

• Brokerage assets under administration of $88 billion, up 19 percent from prior year

• 800 private bankers at year-end, up 110, or 16 percent, from year-end 2005

Internet highlights

• 8.5 million active online consumer customers, up 18 percent from prior year, serving 61 percent of consumer checking accounts

• 4.8 million bill payment and presentment customers, up 43 percent from prior year

• 800,000 active online small business customers, up 25 percent from prior year

Community Banking reported net income of $5.53 billion for 2006, up from $5.47 billion for 2005. Total revenue for 2006 increased 4 percent, driven by loan and deposit growth offsetting $704 million lower revenue from the mortgage company. Noninterest expense for 2006 increased 7 percent driven by investments in technology, distribution and sales staff. The provision for credit losses for 2006 decreased $8 million from 2005. Fourth quarter provision for credit losses was $275 million, a decrease of $10 million from 2005, reflecting incremental consumer bankruptcy filings before the mid-October 2005 legislative reform.

Regional Banking highlights

• Record core product sales of 18.7 million, up 17 percent from 2005

• Record retail bank household cross-sell of 5.2 products per consumer household

• Sales ofWells Fargo Packages^® (a checking account and at least 3 other products) up 44 percent from 2005

• Net consumer checking accounts up 4.7 percent from 2005

• Team member engagement ratio (engaged to actively disengaged) of 7.1 to 1 improved from 5.8 to 1 in 2005

• Store-based customer loyalty scores continued to improve with December 2006 up 32 percent over January 2004

• Business Banking

o Store-based business solutions up 26 percent from 2005

o Loans to small businesses (loans primarily less than $100,000 on our Business Direct platform) grew 19 percent from 2005

o Net business checking accounts up 4.3 percent from 2005

o Business Banking household cross-sell at 3.3, up from 3.0 in 2005

“Our great team – focused on our vision of earning all of our customers’ business and helping them succeed financially – achieved outstanding results in 2006 with a record 18.7 million core product solutions (sales) to customers, up 17 percent over 2005,” said Carrie Tolstedt, group EVP, Regional Banking. “Our retail bank household cross-sell continued to rise to a record high of 5.2. In 2006, 62 percent of new checking account customers purchasedWells Fargo Packages. These results would not be possible without the dedication of our talented team members. In 2006, our team member engagement ratio rose to 7.1 to 1, up from 5.8 to 1 in 2005. Additionally, we continue to see positive trends in our customer experience levels. We conduct 50,000 store-based customer surveys per month. For customers transacting at the teller line, welcoming and wait time survey scores were up 44 percent and customer loyalty scores improved 32 percent, since we began surveying in January 2004. In 2006, we added

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1,914 platform banker FTEs, opened 109 banking stores, and added 246 net newwebATM^® machines to better serve our customers and meet all their financial needs.”

Home Mortgage and Home Equity highlights

• Mortgage originations of $398 billion in 2006, up 9 percent from prior year

• Record $1.37 trillion owned mortgage servicing portfolio, up 38 percent from prior year

• Mortgage servicing customers of 7.6 million, up 37 percent from prior year

• Mortgage application pipeline of $48 billion, compared with $50 billion at December 31, 2005

• National Home Equity Group portfolio of $79 billion, up 10 percent from December 31, 2005

“The past year has been a very challenging year for the mortgage industry with the flat to inverted yield curve and a slowdown in the housing sector,” said Mark Oman, senior EVP, Home and Consumer Finance Group. “Despite this environment, we continued our long track record of growing our mortgage servicing businesses at double-digit rates, which provides opportunities to cross-sell and retain these customers. We remain very disciplined in residential real estate lending by ensuring that our product offering is appropriate for both our customers and the investors in our securities. We have not offered some of the higher-risk products, such as the payment option ARM.”

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	Full Year						Fourth Quarter
					%						%
(in millions)	2006		2005		Change		2006		2005		Change
Total revenue	$	7,234	$	6,149		18	$	1,883	$	1,545		22
Provision for credit losses		16		1		—		25		7		257
Noninterest expense		4,114		3,487		18		1,105		876		26
Net income		2,086		1,789		17		508		445		14
Average loans (in billions)		71.4		62.2		15		75.0		64.7		16
Average assets (in billions)		97.1		89.6		8		97.9		92.8		5

• Record net income of $2.1 billion in 2006, up 17 percent from 2005, 8^th consecutive year of record earnings

• Average loan growth of 15 percent from 2005

• Record cross-sell of 6 products per customer

• Opened new commercial banking offices in Pasadena, California, and Pittsburgh, Pennsylvania, in fourth quarter

“Wholesale Banking, for the eighth consecutive year, achieved record net income with strong double-digit growth in revenue and loans across the businesses,” said Dave Hoyt, senior EVP, Wholesale Banking Group. “We continue to focus on satisfying all of our customers’ financial needs, increasing to 6 products per wholesale banking customer. Two-thirds of our commercial banking customers are active users of our industry-leadingCommercial Electronic Office^â (CEO^Ò)online business portal. We processed more than $90 billion of checks through our internet-based industry-leadingDesktop Deposit^SM service.

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“To continue providing outstanding service and advice to our customers, we acquired this year commercial real estate investment advisor Secured Capital Corp., investment banker Barrington Associates, multifamily real estate finance firm Reilly Mortgage, accounts receivable purchasers Commerce Funding and Evergreen Funding, and three commercial insurance agencies. We opened six commercial banking offices, nine commercial real estate offices nationwide and a foreign exchange office in Atlanta. With 14 offices, we have one of the largest foreign exchange sales teams in North America.”

Wholesale Banking reported record net income of $2.1 billion in 2006, up 17 percent over 2005, driven largely by an 11 percent increase in earning assets and an expanding net interest margin, as well as continuing low loan losses. Average loans rose 15 percent to $71.4 billion in 2006 from $62.2 billion in 2005, with double-digit increases across the majority of the wholesale lending businesses. Average deposits grew 45 percent entirely due to increases in interest-bearing deposits, driven by a mix of organic customer growth, conversions of customer sweep accounts from off-balance sheet money market funds into Wells Fargo deposits, and continued growth in foreign central bank deposits. The provision for credit losses was $16 million in 2006, compared with $1 million a year earlier. Noninterest income increased 15 percent to $4.31 billion in 2006 from $3.76 billion in 2005, due to acquisitions, along with stronger asset management, capital markets, insurance and foreign exchange revenue. Noninterest expense increased 18 percent to $4.11 billion in 2006 from $3.49 billion in 2005, driven by higher personnel-related expenses including staff additions, merit increases, higher incentive payments, and stock option expense along with higher expenses from our acquisitions, expenses related to higher sales volumes, and investments in new offices, businesses and systems.

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, Puerto Rico and the Pacific Rim.

Selected Financial Information	Full Year							Fourth Quarter
					%							%
(in millions)	2006		2005		Change			2006		2005		Change
Total revenue	$	5,425	$	4,680		16		$	1,400	$	1,234		13
Provision for credit losses		1,301		1,487		(13	)		426		411		4
Noninterest expense		2,806		2,559		10			748		671		11
Net income		865		409		111			161		98		64
Average loans (in billions)		57.5		46.9		23			61.5		50.5		22
Average assets (in billions)		62.9		52.7		19			67.0		56.1		19

• Average loans up 23 percent from 2005

• Average loans up 15 percent (annualized) from prior quarter

o Real estate-secured receivables up 12 percent (annualized) to $21.9 billion

o Auto finance receivables up 15 percent (annualized) to $27.4 billion

“Wells Fargo Financial completed another strong year, with record net earnings to go along with continued refinement of our business model,” said Tom Shippee, Wells Fargo Financial president and CEO. “We successfully completed a number of strategic initiatives that make us better positioned to serve the financial needs of our customers. For example, in the past year we combined our auto lending and consumer lending stores in the U.S. into a single-store network,

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and we integrated all of Wells Fargo’s indirect auto lending operations in the U.S. and Canada into one full-spectrum automobile lending business.

“During the fourth quarter, we continued to focus on reducing losses and delinquencies in our auto lending business by improving processes and staffing levels in collections. As a result, our auto growth slowed as expected in the fourth quarter. Auto loans grew less than 2 percent from the end of the third quarter. Our real estate-secured lending portfolio continued to grow, although at a slower pace than in previous quarters, which was consistent with industry trends.”

Wells Fargo Financial reported net income of $865 million in 2006, up from $409 million in 2005. Net income for 2005 included incremental losses due to the change in the bankruptcy law, a first quarter 2005 $163 million charge (pre tax) to conform Wells Fargo Financial’s charge off practices with Federal Financial Institution Examination Council guidelines, and $100 million (pre tax) for estimated losses from Hurricane Katrina. Net income for 2006 included a $50 million (pre tax) release of provision for credit losses reversing the remaining portion of the provision for Hurricane Katrina. Revenue rose 16 percent in 2006 to $5.43 billion, compared with $4.68 billion in 2005. The provision for credit losses was $1.30 billion in 2006, down from $1.49 billion in 2005. Noninterest expense was $2.81 billion in 2006, up from $2.56 billion in 2005.

Recorded Message
A recorded message reviewing Wells Fargo’s results is available at 5:30 a.m. Pacific Time through January 19, 2007. Dial 877-660-6853 (domestic) or 201-612-7415 (international). Enter account number 286 and conference ID 224548. The call is also available on the internet atwww.wellsfargo.com/ir and http://www.vcall.com/IC/CEPage.asp?ID=112336. The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements about the Company, including statements about the expectation that certain actions taken in fourth quarter 2006 will stabilize losses in the auto loan portfolio in early 2007 and will lead to improved loss rates in that portfolio, the expectation that losses in the wholesale loan portfolios will modestly increase in 2007, the statement that future net interest expense will be reduced as a result of the call of trust preferred securities, and the statement that our presence in the California market will increase as a result of the pending Placer Sierra Bancshares transaction. 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 September 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.

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Wells Fargo & Company is a diversified financial services company with $482 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 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 December 31,						%				Year ended December 31,						%
($ in millions, except per share amounts)	2006			2005			Change				2006			2005			Change
For the Period
Net income	$	2,181		$	1,930			13		%	$	8,482		$	7,671			11		%
Diluted earnings per common share		0.64			0.57			12				2.49			2.25			11
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.79	%		1.63	%		10				1.75	%		1.72	%		2
Net income to average stockholders’ equity (ROE)		18.99			19.22			(1	)			19.65			19.59			—
Efficiency ratio (1)		57.5			57.5			—				58.1			57.7			1
Total revenue	$	9,413		$	8,492			11			$	35,691		$	32,949			8
Dividends declared per common share		0.28			0.26			8				1.08			1.00			8
Average common shares outstanding		3,379.4			3,350.8			1				3,368.3			3,372.5			—
Diluted average common shares outstanding		3,424.0			3,387.8			1				3,410.1			3,410.9			—
Average loans	$	312,166		$	305,696			2			$	306,911		$	296,106			4
Average assets		482,585			468,481			3				486,023			445,790			9
Average core deposits (2)		267,791			253,386			6				260,022			242,754			7
Average retail core deposits (3)		216,031			210,729			3				213,818			201,867			6
Net interest margin		4.93	%		4.84	%		2				4.83	%		4.86	%		(1	)
At Period End
Securities available for sale	$	42,629		$	41,834			2			$	42,629		$	41,834			2
Loans		319,116			310,837			3				319,116			310,837			3
Allowance for loan losses		3,764			3,871			(3	)			3,764			3,871			(3	)
Goodwill		11,275			10,787			5				11,275			10,787			5
Assets		481,996			481,741			—				481,996			481,741			—
Core deposits (2)		270,224			253,341			7				270,224			253,341			7
Stockholders’ equity		45,876			40,660			13				45,876			40,660			13
Capital ratios
Stockholders’ equity to assets		9.52	%		8.44	%		13				9.52	%		8.44	%		13
Risk-based capital (4)
Tier 1 capital		8.95			8.26			8				8.95			8.26			8
Total capital		12.50			11.64			7				12.50			11.64			7
Tier 1 leverage (4)		7.89			6.99			13				7.89			6.99			13
Book value per common share	$	13.58		$	12.12			12			$	13.58		$	12.12			12
Team members (active, full-time equivalent)		158,000			153,500			3				158,000			153,500			3
Common Stock Price
High	$	36.99		$	32.35			14			$	36.99		$	32.35			14
Low		34.90			28.81			21				30.31			28.81			5
Period end		35.56			31.42			13				35.56			31.42			13

(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 December 31, 2006, ratios are preliminary.

-12-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
($ in millions, except per share amounts)	2006			2006			2006			2006			2005
For the Quarter
Net income	$	2,181		$	2,194		$	2,089		$	2,018		$	1,930
Diluted earnings per common share		0.64			0.64			0.61			0.60			0.57
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.79	%		1.76	%		1.71	%		1.72	%		1.63	%
Net income to average stockholders’ equity (ROE)		18.99			20.00			19.76			19.89			19.22
Efficiency ratio (1)		57.5			56.9			58.9			59.3			57.5
Total revenue	$	9,413		$	8,934		$	8,789		$	8,555		$	8,492
Dividends declared per common share		0.28			—			0.54			0.26			0.26
Average common shares outstanding		3,379.4			3,371.9			3,363.8			3,358.3			3,350.8
Diluted average common shares outstanding		3,424.0			3,416.0			3,404.4			3,395.7			3,387.8
Average loans	$	312,166		$	303,980		$	300,388		$	311,132		$	305,696
Average assets		482,585			494,679			491,456			475,195			468,481
Average core deposits (2)		267,791			260,430			257,695			254,012			253,386
Average retail core deposits (3)		216,031			212,440			213,588			212,921			210,729
Net interest margin		4.93	%		4.79	%		4.76	%		4.85	%		4.84	%
At Quarter End
Securities available for sale	$	42,629		$	52,635		$	71,420		$	51,195		$	41,834
Loans		319,116			307,491			300,622			306,676			310,837
Allowance for loan losses		3,764			3,799			3,851			3,845			3,871
Goodwill		11,275			11,192			11,091			11,050			10,787
Assets		481,996			483,441			499,516			492,428			481,741
Core deposits (2)		270,224			260,793			260,427			258,142			253,341
Stockholders’ equity		45,876			44,862			41,894			41,961			40,660
Capital ratios
Stockholders’ equity to assets		9.52	%		9.28	%		8.39	%		8.52	%		8.44	%
Risk-based capital (4)
Tier 1 capital		8.95			8.74			8.35			8.30			8.26
Total capital		12.50			12.34			11.82			11.49			11.64
Tier 1 leverage (4)		7.89			7.41			6.99			7.13			6.99
Book value per common share	$	13.58		$	13.30		$	12.46		$	12.50		$	12.12
Team members (active, full-time equivalent)		158,000			156,400			154,300			152,000			153,500
Common Stock Price
High	$	36.99		$	36.89		$	34.86		$	32.76		$	32.35
Low		34.90			33.36			31.90			30.31			28.81
Period end		35.56			36.18			33.54			31.94			31.42

(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 December 31, 2006, ratios are preliminary.

-13-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended December 31,					%				Year ended December 31,						%
(in millions, except per share amounts)	2006		2005			Change				2006			2005			Change
INTEREST INCOME
Trading assets	$	46	$	48			(4	)	%	$	225		$	190			18		%
Securities available for sale		726		594			22				3,278			1,921			71
Mortgages held for sale		627		628			—				2,746			2,213			24
Loans held for sale		13		10			30				47			146			(68	)
Loans		6,701		5,901			14				25,611			21,260			20
Other interest income		118		63			87				332			232			43
Total interest income		8,231		7,244			14				32,239			25,962			24
INTEREST EXPENSE
Deposits		1,901		1,331			43				7,174			3,848			86
Short-term borrowings		162		242			(33	)			992			744			33
Long-term debt		1,118		832			34				4,122			2,866			44
Total interest expense		3,181		2,405			32				12,288			7,458			65
NET INTEREST INCOME		5,050		4,839			4				19,951			18,504			8
Provision for credit losses		726		703			3				2,204			2,383			(8	)
Net interest income after provision for credit losses		4,324		4,136			5				17,747			16,121			10
NONINTEREST INCOME
Service charges on deposit accounts		695		655			6				2,690			2,512			7
Trust and investment fees		735		623			18				2,737			2,436			12
Card fees		481		394			22				1,747			1,458			20
Other fees		550		478			15				2,057			1,929			7
Mortgage banking		677		628			8				2,311			2,422			(5	)
Operating leases		190		200			(5	)			783			812			(4	)
Insurance		299		272			10				1,340			1,215			10
Net gains (losses) on debt securities available for sale		51		(124	)		—				(19	)		(120	)		(84	)
Net gains from equity investments		256		93			175				738			511			44
Other		429		434			(1	)			1,356			1,270			7
Total noninterest income		4,363		3,653			19				15,740			14,445			9
NONINTEREST EXPENSE
Salaries		1,812		1,613			12				7,007			6,215			13
Incentive compensation		793		663			20				2,885			2,366			22
Employee benefits		501		428			17				2,035			1,874			9
Equipment		339		328			3				1,252			1,267			(1	)
Net occupancy		367		344			7				1,405			1,412			—
Operating leases		157		161			(2	)			630			635			(1	)
Other		1,442		1,346			7				5,528			5,249			5
Total noninterest expense		5,411		4,883			11				20,742			19,018			9
INCOME BEFORE INCOME TAX EXPENSE		3,276		2,906			13				12,745			11,548			10
Income tax expense		1,095		976			12				4,263			3,877			10
NET INCOME	$	2,181	$	1,930			13			$	8,482		$	7,671			11
EARNINGS PER COMMON SHARE	$	0.65	$	0.57			14			$	2.52		$	2.27			11
DILUTED EARNINGS PER COMMON SHARE	$	0.64	$	0.57			12			$	2.49		$	2.25			11
DIVIDENDS DECLARED PER COMMON SHARE	$	0.28	$	0.26			8			$	1.08		$	1.00			8
Average common shares outstanding		3,379.4		3,350.8			1				3,368.3			3,372.5			—
Diluted average common shares outstanding		3,424.0		3,387.8			1				3,410.1			3,410.9			—

-14-

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

	Quarter ended
	Dec. 31,		Sept. 30,		June 30,			Mar. 31,			Dec. 31,
(in millions, except per share amounts)	2006		2006		2006			2006			2005
INTEREST INCOME
Trading assets	$	46	$	45	$	65		$	69		$	48
Securities available for sale		726		1,014		875			663			594
Mortgages held for sale		627		702		808			609			628
Loans held for sale		13		12		11			11			10
Loans		6,701		6,555		6,245			6,110			5,901
Other interest income		118		71		73			70			63
Total interest income		8,231		8,399		8,077			7,532			7,244
INTEREST EXPENSE
Deposits		1,901		1,997		1,794			1,482			1,331
Short-term borrowings		162		271		289			270			242
Long-term debt		1,118		1,084		1,010			910			832
Total interest expense		3,181		3,352		3,093			2,662			2,405
NET INTEREST INCOME		5,050		5,047		4,984			4,870			4,839
Provision for credit losses		726		613		432			433			703
Net interest income after provision for credit losses		4,324		4,434		4,552			4,437			4,136
NONINTEREST INCOME
Service charges on deposit accounts		695		707		665			623			655
Trust and investment fees		735		664		675			663			623
Card fees		481		464		418			384			394
Other fees		550		509		510			488			478
Mortgage banking		677		484		735			415			628
Operating leases		190		192		200			201			200
Insurance		299		313		364			364			272
Net gains (losses) on debt securities available for sale		51		121		(156	)		(35	)		(124	)
Net gains from equity investments		256		159		133			190			93
Other		429		274		261			392			434
Total noninterest income		4,363		3,887		3,805			3,685			3,653
NONINTEREST EXPENSE
Salaries		1,812		1,769		1,754			1,672			1,613
Incentive compensation		793		710		714			668			663
Employee benefits		501		458		487			589			428
Equipment		339		294		284			335			328
Net occupancy		367		357		345			336			344
Operating leases		157		155		157			161			161
Other		1,442		1,338		1,435			1,313			1,346
Total noninterest expense		5,411		5,081		5,176			5,074			4,883
INCOME BEFORE INCOME TAX EXPENSE		3,276		3,240		3,181			3,048			2,906
Income tax expense		1,095		1,046		1,092			1,030			976
NET INCOME	$	2,181	$	2,194	$	2,089		$	2,018		$	1,930
EARNINGS PER COMMON SHARE	$	0.65	$	0.65	$	0.62		$	0.60		$	0.57
DILUTED EARNINGS PER COMMON SHARE	$	0.64	$	0.64	$	0.61		$	0.60		$	0.57
DIVIDENDS DECLARED PER COMMON SHARE	$	0.28	$	—	$	0.54		$	0.26		$	0.26
Average common shares outstanding		3,379.4		3,371.9		3,363.8			3,358.3			3,350.8
Diluted average common shares outstanding		3,424.0		3,416.0		3,404.4			3,395.7			3,387.8

-15-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

	December 31,						%
(in millions, except shares)	2006			2005			Change
ASSETS
Cash and due from banks	$	15,028		$	15,397			(2	)	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		6,078			5,306			15
Trading assets		5,607			10,905			(49	)
Securities available for sale		42,629			41,834			2
Mortgages held for sale		33,097			40,534			(18	)
Loans held for sale		721			612			18
Loans		319,116			310,837			3
Allowance for loan losses		(3,764	)		(3,871	)		(3	)
Net loans		315,352			306,966			3
Mortgage servicing rights:
Measured at fair value (residential MSRs beginning 2006)		17,591			—			—
Amortized		377			12,511			(97	)
Premises and equipment, net		4,698			4,417			6
Goodwill		11,275			10,787			5
Other assets		29,543			32,472			(9	)
Total assets	$	481,996		$	481,741			—
LIABILITIES
Noninterest-bearing deposits	$	89,119		$	87,712			2
Interest-bearing deposits		221,124			226,738			(2	)
Total deposits		310,243			314,450			(1	)
Short-term borrowings		12,829			23,892			(46	)
Accrued expenses and other liabilities		25,903			23,071			12
Long-term debt		87,145			79,668			9
Total liabilities		436,120			441,081			(1	)
STOCKHOLDERS’ EQUITY
Preferred stock		384			325			18
Common stock — $1-2/3 par value, authorized 6,000,000,000 shares; issued 3,472,762,050 shares		5,788			5,788			—
Additional paid-in capital		7,739			7,040			10
Retained earnings		35,277			30,580			15
Cumulative other comprehensive income		302			665			(55	)
Treasury stock — 95,612,189 shares and 117,595,986 shares		(3,203	)		(3,390	)		(6	)
Unearned ESOP shares		(411	)		(348	)		18
Total stockholders’ equity		45,876			40,660			13
Total liabilities and stockholders’ equity	$	481,996		$	481,741			—

-16-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2006			2006			2006			2006			2005
ASSETS
Cash and due from banks	$	15,028		$	12,591		$	14,069		$	13,224		$	15,397
Federal funds sold, securities purchased under resale agreements and other short-term investments		6,078			4,079			5,367			4,954			5,306
Trading assets		5,607			5,300			7,344			9,930			10,905
Securities available for sale		42,629			52,635			71,420			51,195			41,834
Mortgages held for sale		33,097			39,913			39,714			43,521			40,534
Loans held for sale		721			617			594			629			612
Loans		319,116			307,491			300,622			306,676			310,837
Allowance for loan losses		(3,764	)		(3,799	)		(3,851	)		(3,845	)		(3,871	)
Net loans		315,352			303,692			296,771			302,831			306,966
Mortgage servicing rights:
Measured at fair value (residential MSRs beginning 2006)		17,591			17,712			15,650			13,800			—
Amortized		377			328			175			142			12,511
Premises and equipment, net		4,698			4,645			4,529			4,493			4,417
Goodwill		11,275			11,192			11,091			11,050			10,787
Other assets		29,543			30,737			32,792			36,659			32,472
Total assets	$	481,996		$	483,441		$	499,516		$	492,428		$	481,741
LIABILITIES
Noninterest-bearing deposits	$	89,119		$	86,849		$	89,448		$	88,701		$	87,712
Interest-bearing deposits		221,124			227,470			237,004			219,604			226,738
Total deposits		310,243			314,319			326,452			308,305			314,450
Short-term borrowings		12,829			13,800			13,619			21,350			23,892
Accrued expenses and other liabilities		25,903			26,369			33,794			36,312			23,071
Long-term debt		87,145			84,091			83,757			84,500			79,668
Total liabilities		436,120			438,579			457,622			450,467			441,081
STOCKHOLDERS’ EQUITY
Preferred stock		384			465			548			634			325
Common stock		5,788			5,788			5,788			5,788			5,788
Additional paid-in capital		7,739			7,667			7,562			7,479			7,040
Retained earnings		35,277			34,080			31,964			31,750			30,580
Cumulative other comprehensive income		302			633			155			576			665
Treasury stock		(3,203	)		(3,273	)		(3,537	)		(3,587	)		(3,390	)
Unearned ESOP shares		(411	)		(498	)		(586	)		(679	)		(348	)
Total stockholders’ equity		45,876			44,862			41,894			41,961			40,660
Total liabilities and stockholders’ equity	$	481,996		$	483,441		$	499,516		$	492,428		$	481,741

-17-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2006			2006			2006			2006			2005
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	7,751		$	4,247		$	4,855		$	5,192		$	5,158
Trading assets		3,950			3,880			5,938			6,099			5,061
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		786			912			935			866			1,051
Securities of U.S. states and political subdivisions		3,406			3,240			3,013			3,106			3,256
Mortgage-backed securities:
Federal agencies		31,718			47,009			40,160			27,718			23,545
Private collateralized mortgage obligations		5,130			7,696			7,176			6,562			8,060
Total mortgage-backed securities		36,848			54,705			47,336			34,280			31,605
Other debt securities (1)		6,406			6,865			6,246			5,280			4,843
Total debt securities available for sale (1)		47,446			65,722			57,530			43,532			40,755
Mortgages held for sale		37,878			42,369			51,675			39,523			42,036
Loans held for sale		659			622			585			651			603
Loans:
Commercial and commercial real estate:
Commercial		68,402			66,216			65,424			62,769			61,297
Other real estate mortgage		29,882			29,851			28,938			28,686			28,425
Real estate construction		15,775			15,073			14,517			13,850			13,040
Lease financing		5,500			5,385			5,429			5,436			5,347
Total commercial and commercial real estate		119,559			116,525			114,308			110,741			108,109
Consumer:
Real estate 1-4 family first mortgage		50,836			50,138			55,019			74,383			76,233
Real estate 1-4 family junior lien mortgage		68,208			65,991			62,740			59,972			58,157
Credit card		13,737			12,810			11,947			11,765			11,326
Other revolving credit and installment		53,206			51,988			50,098			48,329			46,593
Total consumer		185,987			180,927			179,804			194,449			192,309
Foreign		6,620			6,528			6,276			5,942			5,278
Total loans (2)		312,166			303,980			300,388			311,132			305,696
Other		1,333			1,348			1,363			1,389			1,415
Total earning assets	$	411,183		$	422,168		$	422,334		$	407,518		$	400,724
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,477		$	4,370		$	4,288		$	4,069		$	3,797
Market rate and other savings		135,673			132,906			134,182			134,228			132,042
Savings certificates		36,382			33,909			30,308			28,718			26,610
Other time deposits		19,838			36,920			38,288			33,726			33,321
Deposits in foreign offices		24,425			22,303			20,898			15,152			14,347
Total interest-bearing deposits		220,795			230,408			227,964			215,893			210,117
Short-term borrowings		13,470			21,539			24,836			26,180			25,395
Long-term debt		85,809			84,112			84,486			81,686			79,169
Total interest-bearing liabilities		320,074			336,059			337,286			323,759			314,681
Portion of noninterest-bearing funding sources		91,109			86,109			85,048			83,759			86,043
Total funding sources	$	411,183		$	422,168		$	422,334		$	407,518		$	400,724
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,379		$	12,159		$	12,437		$	12,897		$	13,508
Goodwill		11,259			11,156			11,075			10,963			10,780
Other		47,764			49,196			45,610			43,817			43,469
Total noninterest-earning assets	$	71,402		$	72,511		$	69,122		$	67,677		$	67,757
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	91,259		$	89,245		$	88,917		$	86,997		$	90,937
Other liabilities		25,687			25,839			22,835			23,320			23,049
Stockholders’ equity		45,565			43,536			42,418			41,119			39,814
Noninterest-bearing funding sources used to fund earning assets		(91,109	)		(86,109	)		(85,048	)		(83,759	)		(86,043	)
Net noninterest-bearing funding sources	$	71,402		$	72,511		$	69,122		$	67,677		$	67,757
TOTAL ASSETS	$	482,585		$	494,679		$	491,456		$	475,195		$	468,481

(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

	Year ended December 31,
(in millions)	2006			2005
Balance, beginning of period	$	40,660		$	37,866
Cumulative effect from adoption of FAS 156		101			—
Net income		8,482			7,671
Other comprehensive income (loss), net of tax, related to:
Foreign currency translation adjustments		—			5
Investment securities and other interests held		(31	)		(298	)
Derivative instruments and hedging activities		70			8
Common stock issued		1,764			1,367
Common stock issued for acquisitions		—			122
Common stock repurchased		(1,965	)		(3,159	)
Preferred stock released to ESOP		355			307
Common stock dividends		(3,641	)		(3,375	)
Adoption of FAS 158		(402	)		—
Other, net		483			146
Balance, end of period	$	45,876		$	40,660

-19-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)	2006		2006		2006		2006		2005
Commercial and commercial real estate:
Commercial	$	70,404	$	66,797	$	66,014	$	63,836	$	61,552
Other real estate mortgage		30,112		29,914		29,281		28,754		28,545
Real estate construction		15,935		15,397		14,764		14,308		13,406
Lease financing		5,614		5,443		5,301		5,402		5,400
Total commercial and commercial real estate		122,065		117,551		115,360		112,300		108,903
Consumer:
Real estate 1-4 family first mortgage		53,228		49,765		50,491		66,106		77,768
Real estate 1-4 family junior lien mortgage		68,926		67,185		64,727		61,115		59,143
Credit card		14,697		13,343		12,387		11,618		12,009
Other revolving credit and installment		53,534		53,080		51,236		49,295		47,462
Total consumer		190,385		183,373		178,841		188,134		196,382
Foreign		6,666		6,567		6,421		6,242		5,552
Total loans (net of unearned income)	$	319,116	$	307,491	$	300,622	$	306,676	$	310,837

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2006			2006			2006			2006			2005
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	331		$	256		$	253		$	256		$	286
Other real estate mortgage		105			116			137			163			165
Real estate construction		78			90			31			21			31
Lease financing		29			27			26			31			45
Total commercial and commercial real estate		543			489			447			471			527
Consumer:
Real estate 1-4 family first mortgage		688			595			585			508			471
Real estate 1-4 family junior lien mortgage		212			200			179			190			144
Other revolving credit and installment		180			167			139			188			171
Total consumer		1,080			962			903			886			786
Foreign		43			38			45			37			25
Total nonaccrual loans		1,666			1,489			1,395			1,394			1,338
As a percentage of total loans		0.52	%		0.48	%		0.46	%		0.45	%		0.43	%
Foreclosed assets:
GNMA loans (1)		322			266			238			227			—
Other		423			342			275			228			191
Real estate and other nonaccrual investments (2)		5			3			9			—			2
Total nonaccrual loans and other assets	$	2,416		$	2,100		$	1,917		$	1,849		$	1,531
As a percentage of total loans		0.76	%		0.68	%		0.64	%		0.60	%		0.49	%

(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.
(2)	Includes real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if these assets were recorded as loans.

-20-

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

	Quarter ended												Year ended
	Dec. 31,				Sept. 30,				Dec. 31,				Dec. 31,				Dec. 31,
(in millions)	2006				2006				2005				2006				2005
Balance, beginning of period	$	3,978			$	4,035			$	4,057			$	4,057			$	3,950
Provision for credit losses		726				613				703				2,204				2,383
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(139	)			(103	)			(135	)			(414	)			(406	)
Other real estate mortgage		(2	)			(1	)			(1	)			(5	)			(7	)
Real estate construction		(1	)			(1	)			—				(2	)			(6	)
Lease financing		(8	)			(6	)			(8	)			(30	)			(35	)
Total commercial and commercial real estate		(150	)			(111	)			(144	)			(451	)			(454	)
Consumer:
Real estate 1-4 family first mortgage		(22	)			(30	)			(28	)			(103	)			(111	)
Real estate 1-4 family junior lien mortgage		(56	)			(36	)			(36	)			(154	)			(136	)
Credit card		(154	)			(133	)			(164	)			(505	)			(553	)
Other revolving credit and installment		(513	)			(501	)			(465	)			(1,685	)			(1,480	)
Total consumer		(745	)			(700	)			(693	)			(2,447	)			(2,280	)
Foreign		(59	)			(74	)			(82	)			(281	)			(298	)
Total loan charge-offs		(954	)			(885	)			(919	)			(3,179	)			(3,032	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		27				26				31				111				133
Other real estate mortgage		5				8				3				19				16
Real estate construction		1				—				6				3				13
Lease financing		5				4				5				21				21
Total commercial and commercial real estate		38				38				45				154				183
Consumer:
Real estate 1-4 family first mortgage		6				8				6				26				21
Real estate 1-4 family junior lien mortgage		9				9				9				36				31
Credit card		24				23				22				96				86
Other revolving credit and installment		136				124				115				537				365
Total consumer		175				164				152				695				503
Foreign		15				20				19				76				63
Total loan recoveries		228				222				216				925				749
Net loan charge-offs		(726	)			(663	)			(703	)			(2,254	)			(2,283	)
Other		(14	)			(7	)			—				(43	)			7
Balance, end of period	$	3,964			$	3,978			$	4,057			$	3,964			$	4,057
Components:
Allowance for loan losses	$	3,764			$	3,799			$	3,871			$	3,764			$	3,871
Reserve for unfunded credit commitments		200				179				186				200				186
Allowance for credit losses	$	3,964			$	3,978			$	4,057			$	3,964			$	4,057
Net loan charge-offs (annualized) as a percentage of average total loans		0.92		%		0.86		%		0.91		%		0.73		%		0.77		%

-21-

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

	Quarter ended
	Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
(in millions)	2006				2006				2006				2006				2005
Balance, beginning of quarter	$	3,978			$	4,035			$	4,025			$	4,057			$	4,057
Provision for credit losses		726				613				432				433				703
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(139	)			(103	)			(93	)			(79	)			(135	)
Other real estate mortgage		(2	)			(1	)			(1	)			(1	)			(1	)
Real estate construction		(1	)			(1	)			—				—				—
Lease financing		(8	)			(6	)			(7	)			(9	)			(8	)
Total commercial and commercial real estate		(150	)			(111	)			(101	)			(89	)			(144	)
Consumer:
Real estate 1-4 family first mortgage		(22	)			(30	)			(22	)			(29	)			(28	)
Real estate 1-4 family junior lien mortgage		(56	)			(36	)			(28	)			(34	)			(36	)
Credit card		(154	)			(133	)			(113	)			(105	)			(164	)
Other revolving credit and installment		(513	)			(501	)			(349	)			(322	)			(465	)
Total consumer		(745	)			(700	)			(512	)			(490	)			(693	)
Foreign		(59	)			(74	)			(74	)			(74	)			(82	)
Total loan charge-offs		(954	)			(885	)			(687	)			(653	)			(919	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		27				26				31				27				31
Other real estate mortgage		5				8				5				1				3
Real estate construction		1				—				1				1				6
Lease financing		5				4				6				6				5
Total commercial and commercial real estate		38				38				43				35				45
Consumer:
Real estate 1-4 family first mortgage		6				8				9				3				6
Real estate 1-4 family junior lien mortgage		9				9				10				8				9
Credit card		24				23				25				24				22
Other revolving credit and installment		136				124				148				129				115
Total consumer		175				164				192				164				152
Foreign		15				20				20				21				19
Total loan recoveries		228				222				255				220				216
Net loan charge-offs		(726	)			(663	)			(432	)			(433	)			(703	)
Other		(14	)			(7	)			10				(32	)			—
Balance, end of quarter	$	3,964			$	3,978			$	4,035			$	4,025			$	4,057
Components:
Allowance for loan losses	$	3,764			$	3,799			$	3,851			$	3,845			$	3,871
Reserve for unfunded credit commitments		200				179				184				180				186
Allowance for credit losses	$	3,964			$	3,978			$	4,035			$	4,025			$	4,057
Net loan charge-offs (annualized) as a percentage of average total loans		0.92		%		0.86		%		0.58		%		0.56		%		0.91		%
Allowance for loan losses as a percentage of:
Total loans		1.18		%		1.24		%		1.28		%		1.25		%		1.25		%
Nonaccrual loans		226				255				276				276				289
Nonaccrual loans and other assets		156				181				201				208				253
Allowance for credit losses as a percentage of:
Total loans		1.24		%		1.29		%		1.34		%		1.31		%		1.31		%
Nonaccrual loans		238				267				289				289				303
Nonaccrual loans and other assets		164				189				210				218				265

-22-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended December 31				,	%				Year ended December 31					,	%
(in millions)	2006		2005			Change				2006			2005			Change
Service charges on deposit accounts	$	695	$	655			6		%	$	2,690		$	2,512			7		%
Trust and investment fees:
Trust, investment and IRA fees		525		481			9				2,033			1,855			10
Commissions and all other fees		210		142			48				704			581			21
Total trust and investment fees		735		623			18				2,737			2,436			12
Card fees		481		394			22				1,747			1,458			20
Other fees:
Cash network fees		44		45			(2	)			184			180			2
Charges and fees on loans		241		237			2				976			1,022			(5	)
All other		265		196			35				897			727			23
Total other fees		550		478			15				2,057			1,929			7
Mortgage banking:
Servicing income, net		314		257			22				893			987			(10	)
Net gains on mortgage loan origination/sales activities		305		269			13				1,116			1,085			3
All other		58		102			(43	)			302			350			(14	)
Total mortgage banking		677		628			8				2,311			2,422			(5	)
Operating leases		190		200			(5	)			783			812			(4	)
Insurance		299		272			10				1,340			1,215			10
Trading assets		213		180			18				544			571			(5	)
Net gains (losses) on debt securities available for sale		51		(124	)		—				(19	)		(120	)		(84	)
Net gains from equity investments		256		93			175				738			511			44
All other		216		254			(15	)			812			699			16
Total	$	4,363	$	3,653			19			$	15,740		$	14,445			9

NONINTEREST EXPENSE

	Quarter ended December 31,				%				Year ended December 31,				%
(in millions)	2006		2005		Change				2006		2005		Change
Salaries	$	1,812	$	1,613		12		%	$	7,007	$	6,215		13		%
Incentive compensation		793		663		20				2,885		2,366		22
Employee benefits		501		428		17				2,035		1,874		9
Equipment		339		328		3				1,252		1,267		(1	)
Net occupancy		367		344		7				1,405		1,412		—
Operating leases		157		161		(2	)			630		635		(1	)
Outside professional services		273		253		8				942		835		13
Contract services		165		153		8				579		596		(3	)
Travel and entertainment		141		134		5				542		481		13
Advertising and promotion		102		109		(6	)			456		443		3
Outside data processing		113		108		5				437		449		(3	)
Postage		77		69		12				312		281		11
Telecommunications		66		65		2				279		278		—
Insurance		39		28		39				257		224		15
Stationery and supplies		60		57		5				223		205		9
Operating losses		40		38		5				180		194		(7	)
Security		49		42		17				179		167		7
Core deposit intangibles		27		30		(10	)			112		123		(9	)
Charitable donations		8		13		(38	)			59		61		(3	)
Net losses from debt extinguishment		30		12		150				24		11		118
All other		252		235		7				947		901		5
Total	$	5,411	$	4,883		11			$	20,742	$	19,018		9

-23-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Dec. 31,		Sept. 30,		June 30,			Mar. 31,			Dec. 31,
(in millions)	2006		2006		2006			2006			2005
Service charges on deposit accounts	$	695	$	707	$	665		$	623		$	655
Trust and investment fees:
Trust, investment and IRA fees		525		508		509			491			481
Commissions and all other fees		210		156		166			172			142
Total trust and investment fees		735		664		675			663			623
Card fees		481		464		418			384			394
Other fees:
Cash network fees		44		48		48			44			45
Charges and fees on loans		241		244		249			242			237
All other		265		217		213			202			196
Total other fees		550		509		510			488			478
Mortgage banking:
Servicing income, net		314		188		310			81			257
Net gains on mortgage loan origination/sales activities		305		179		359			273			269
All other		58		117		66			61			102
Total mortgage banking		677		484		735			415			628
Operating leases		190		192		200			201			200
Insurance		299		313		364			364			272
Trading assets		213		106		91			134			180
Net gains (losses) on debt securities available for sale		51		121		(156	)		(35	)		(124	)
Net gains from equity investments		256		159		133			190			93
All other		216		168		170			258			254
Total	$	4,363	$	3,887	$	3,805		$	3,685		$	3,653

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Dec. 31,		Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2006		2006			2006			2006			2005
Salaries	$	1,812	$	1,769		$	1,754		$	1,672		$	1,613
Incentive compensation		793		710			714			668			663
Employee benefits		501		458			487			589			428
Equipment		339		294			284			335			328
Net occupancy		367		357			345			336			344
Operating leases		157		155			157			161			161
Outside professional services		273		240			236			193			253
Contract services		165		143			139			132			153
Travel and entertainment		141		132			139			130			134
Advertising and promotion		102		123			125			106			109
Outside data processing		113		111			109			104			108
Postage		77		75			79			81			69
Telecommunications		66		70			73			70			65
Insurance		39		43			99			76			28
Stationery and supplies		60		57			55			51			57
Operating losses		40		33			45			62			38
Security		49		43			44			43			42
Core deposit intangibles		27		28			28			29			30
Charitable donations		8		15			19			17			13
Net losses (gains) from debt extinguishment		30		(2	)		(2	)		(2	)		12
All other		252		227			247			221			235
Total	$	5,411	$	5,081		$	5,176		$	5,074		$	4,883

-24-

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

	Quarter ended December 31,
	2006								2005
							Interest								Interest
	Average			Yields/			income/		Average			Yields/			income/
(in millions)	balance			rates			expense		balance			rates			expense
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	7,751			5.19	%	$	102	$	5,158			3.64	%	$	47
Trading assets		3,950			5.12			50		5,061			3.82			48
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		786			4.28			9		1,051			3.90			10
Securities of U.S. states and political subdivisions		3,406			7.62			62		3,256			8.22			64
Mortgage-backed securities:
Federal agencies		31,718			6.20			483		23,545			5.94			347
Private collateralized mortgage obligations		5,130			6.19			78		8,060			5.71			114
Total mortgage-backed securities		36,848			6.20			561		31,605			5.88			461
Other debt securities (4)		6,406			7.20			115		4,843			6.79			82
Total debt securities available for sale (4)		47,446			6.40			747		40,755			6.12			617
Mortgages held for sale (3)		37,878			6.62			627		42,036			5.97			628
Loans held for sale (3)		659			7.60			13		603			6.41			10
Loans:
Commercial and commercial real estate:
Commercial		68,402			8.27			1,426		61,297			7.35			1,135
Other real estate mortgage		29,882			7.49			563		28,425			6.84			489
Real estate construction		15,775			8.07			321		13,040			7.26			239
Lease financing		5,500			5.66			78		5,347			5.77			77
Total commercial and commercial real estate		119,559			7.93			2,388		108,109			7.13			1,940
Consumer:
Real estate 1-4 family first mortgage		50,836			7.53			961		76,233			6.75			1,291
Real estate 1-4 family junior lien mortgage		68,208			8.16			1,403		58,157			7.28			1,067
Credit card		13,737			13.30			457		11,326			12.81			363
Other revolving credit and installment		53,206			9.67			1,297		46,593			9.13			1,071
Total consumer		185,987			8.80			4,118		192,309			7.84			3,792
Foreign		6,620			11.97			199		5,278			13.08			174
Total loans (5)		312,166			8.54			6,705		305,696			7.68			5,906
Other		1,333			5.17			18		1,415			4.49			16
Total earning assets	$	411,183			8.01			8,262	$	400,724			7.23			7,272
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,477			3.11			35	$	3,797			1.79			17
Market rate and other savings		135,673			2.69			918		132,042			1.86			619
Savings certificates		36,382			4.33			398		26,610			3.26			219
Other time deposits		19,838			5.27			264		33,321			4.07			341
Deposits in foreign offices		24,425			4.65			286		14,347			3.71			135
Total interest-bearing deposits		220,795			3.42			1,901		210,117			2.51			1,331
Short-term borrowings		13,470			4.77			162		25,395			3.79			242
Long-term debt		85,809			5.20			1,120		79,169			4.19			832
Total interest-bearing liabilities		320,074			3.95			3,183		314,681			3.04			2,405
Portion of noninterest-bearing funding sources		91,109			—			—		86,043			—			—
Total funding sources	$	411,183			3.08			3,183	$	400,724			2.39			2,405
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.93	%	$	5,079					4.84	%	$	4,867
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,379							$	13,508
Goodwill		11,259								10,780
Other		47,764								43,469
Total noninterest-earning assets	$	71,402							$	67,757
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	91,259							$	90,937
Other liabilities		25,687								23,049
Stockholders’ equity		45,565								39,814
Noninterest-bearing funding sources used to fund earning assets		(91,109	)							(86,043	)
Net noninterest-bearing funding sources	$	71,402							$	67,757
TOTAL ASSETS	$	482,585							$	468,481

(1)	Our average prime rate was 8.25% and 6.97% for the quarters ended December 31, 2006 and 2005, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.37% and 4.34% 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)

	Year ended December 31,
	2006								2005
							Interest								Interest
	Average			Yields/			income/		Average			Yields/			income/
(in millions)	balance			rates			expense		balance			rates			expense
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	5,515			4.80	%	$	265	$	5,448			3.01	%	$	164
Trading assets		4,958			4.95			245		5,411			3.52			190
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		875			4.36			39		997			3.81			38
Securities of U.S. states and political subdivisions		3,192			7.98			245		3,395			8.27			266
Mortgage-backed securities:
Federal agencies		36,691			6.04			2,206		19,768			6.02			1,162
Private collateralized mortgage obligations		6,640			6.57			430		5,128			5.60			283
Total mortgage-backed securities		43,331			6.12			2,636		24,896			5.94			1,445
Other debt securities (4)		6,204			7.10			439		3,846			7.10			266
Total debt securities available for sale (4)		53,602			6.31			3,359		33,134			6.24			2,015
Mortgages held for sale (3)		42,855			6.41			2,746		38,986			5.67			2,213
Loans held for sale (3)		630			7.40			47		2,857			5.10			146
Loans:
Commercial and commercial real estate:
Commercial		65,720			8.13			5,340		58,434			6.76			3,951
Other real estate mortgage		29,344			7.32			2,148		29,098			6.31			1,836
Real estate construction		14,810			7.94			1,175		11,086			6.67			740
Lease financing		5,437			5.72			311		5,226			5.91			309
Total commercial and commercial real estate		115,311			7.78			8,974		103,844			6.58			6,836
Consumer:
Real estate 1-4 family first mortgage		57,509			7.27			4,182		78,170			6.42			5,016
Real estate 1-4 family junior lien mortgage		64,255			7.98			5,126		55,616			6.61			3,679
Credit card		12,571			13.29			1,670		10,663			12.33			1,315
Other revolving credit and installment		50,922			9.60			4,889		43,102			8.80			3,794
Total consumer		185,257			8.57			15,867		187,551			7.36			13,804
Foreign		6,343			12.39			786		4,711			13.49			636
Total loans (5)		306,911			8.35			25,627		296,106			7.19			21,276
Other		1,357			4.97			68		1,581			4.34			68
Total earning assets	$	415,828			7.79			32,357	$	383,523			6.81			26,072
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	4,302			2.86			123	$	3,607			1.43			51
Market rate and other savings		134,248			2.40			3,225		129,291			1.45			1,874
Savings certificates		32,355			3.91			1,266		22,638			2.90			656
Other time deposits		32,168			4.99			1,607		27,676			3.29			910
Deposits in foreign offices		20,724			4.60			953		11,432			3.12			357
Total interest-bearing deposits		223,797			3.21			7,174		194,644			1.98			3,848
Short-term borrowings		21,471			4.62			992		24,074			3.09			744
Long-term debt		84,035			4.91			4,124		79,137			3.62			2,866
Total interest-bearing liabilities		329,303			3.73			12,290		297,855			2.50			7,458
Portion of noninterest-bearing funding sources		86,525			—			—		85,668			—			—
Total funding sources	$	415,828			2.96			12,290	$	383,523			1.95			7,458
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.83	%	$	20,067					4.86	%	$	18,614
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,466							$	13,173
Goodwill		11,114								10,705
Other		46,615								38,389
Total noninterest-earning assets	$	70,195							$	62,267
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	89,117							$	87,218
Other liabilities		24,430								21,559
Stockholders’ equity		43,173								39,158
Noninterest-bearing funding sources used to fund earning assets		(86,525	)							(85,668	)
Net noninterest-bearing funding sources	$	70,195							$	62,267
TOTAL ASSETS	$	486,023							$	445,790

(1)	Our average prime rate was 7.96% and 6.19% for the years ended December 31, 2006 and 2005, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.20% and 3.56% 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 December 31,	2006		2005		2006		2005		2006		2005		2006		2005
Net interest income	$	3,248	$	3,281	$	787	$	638	$	1,015	$	920	$	5,050	$	4,839
Provision for credit losses		275		285		25		7		426		411		726		703
Noninterest income		2,882		2,432		1,096		907		385		314		4,363		3,653
Noninterest expense		3,558		3,336		1,105		876		748		671		5,411		4,883
Income before income tax expense		2,297		2,092		753		662		226		152		3,276		2,906
Income tax expense		785		705		245		217		65		54		1,095		976
Net income	$	1,512	$	1,387	$	508	$	445	$	161	$	98	$	2,181	$	1,930
Average loans	$	175.7	$	190.5	$	75.0	$	64.7	$	61.5	$	50.5	$	312.2	$	305.7
Average assets (2)		311.9		313.8		97.9		92.8		67.0		56.1		482.6		468.5
Average core deposits		235.8		228.1		32.0		25.3		—		—		267.8		253.4
Year ended December 31,
Net interest income	$	13,117	$	12,702	$	2,924	$	2,393	$	3,910	$	3,409	$	19,951	$	18,504
Provision for credit losses		887		895		16		1		1,301		1,487		2,204		2,383
Noninterest income		9,915		9,418		4,310		3,756		1,515		1,271		15,740		14,445
Noninterest expense		13,822		12,972		4,114		3,487		2,806		2,559		20,742		19,018
Income before income tax expense		8,323		8,253		3,104		2,661		1,318		634		12,745		11,548
Income tax expense		2,792		2,780		1,018		872		453		225		4,263		3,877
Net income	$	5,531	$	5,473	$	2,086	$	1,789	$	865	$	409	$	8,482	$	7,671
Average loans	$	178.0	$	187.0	$	71.4	$	62.2	$	57.5	$	46.9	$	306.9	$	296.1
Average assets (2)		320.2		297.7		97.1		89.6		62.9		52.7		486.0		445.8
Average core deposits		231.4		218.2		28.5		24.6		0.1		—		260.0		242.8

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. If the management structure and/or the allocation process changes, allocations, transfers and assignments may change. To reflect the realignment of the 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
	Dec. 31,		Sept. 30,		June 30,			Mar. 31,			Dec. 31,
(income/expense in millions, average balances in billions)	2006		2006		2006			2006			2005
COMMUNITY BANKING
Net interest income	$	3,248	$	3,292	$	3,321		$	3,256		$	3,281
Provision for credit losses		275		236		187			189			285
Noninterest income		2,882		2,492		2,398			2,143			2,432
Noninterest expense		3,558		3,392		3,485			3,387			3,336
Income before income tax expense		2,297		2,156		2,047			1,823			2,092
Income tax expense		785		683		711			613			705
Net income	$	1,512	$	1,473	$	1,336		$	1,210		$	1,387
Average loans	$	175.7	$	172.5	$	173.9		$	190.4		$	190.5
Average assets		311.9		326.7		327.2			314.8			313.8
Average core deposits		235.8		231.2		230.7			228.0			228.1
WHOLESALE BANKING
Net interest income	$	787	$	751	$	706		$	680		$	638
Provision (reversal of provision) for credit losses		25		—		(7	)		(2	)		7
Noninterest income		1,096		1,033		1,085			1,096			907
Noninterest expense		1,105		999		1,018			992			876
Income before income tax expense		753		785		780			786			662
Income tax expense		245		258		257			258			217
Net income	$	508	$	527	$	523		$	528		$	445
Average loans	$	75.0	$	72.3	$	70.4		$	67.6		$	64.7
Average assets		97.9		97.5		97.2			95.9			92.8
Average core deposits		32.0		29.1		26.9			25.9			25.3
WELLS FARGO FINANCIAL
Net interest income	$	1,015	$	1,004	$	957		$	934		$	920
Provision for credit losses		426		377		252			246			411
Noninterest income		385		362		322			446			314
Noninterest expense		748		690		673			695			671
Income before income tax expense		226		299		354			439			152
Income tax expense		65		105		124			159			54
Net income	$	161	$	194	$	230		$	280		$	98
Average loans	$	61.5	$	59.2	$	56.1		$	53.1		$	50.5
Average assets		67.0		64.7		61.3			58.7			56.1
Average core deposits		—		0.1		0.1			0.1			—
CONSOLIDATED COMPANY
Net interest income	$	5,050	$	5,047	$	4,984		$	4,870		$	4,839
Provision for credit losses		726		613		432			433			703
Noninterest income		4,363		3,887		3,805			3,685			3,653
Noninterest expense		5,411		5,081		5,176			5,074			4,883
Income before income tax expense		3,276		3,240		3,181			3,048			2,906
Income tax expense		1,095		1,046		1,092			1,030			976
Net income	$	2,181	$	2,194	$	2,089		$	2,018		$	1,930
Average loans	$	312.2	$	304.0	$	300.4		$	311.1		$	305.7
Average assets (2)		482.6		494.7		491.5			475.2			468.5
Average core deposits		267.8		260.4		257.7			254.0			253.4

(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
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)		2006			2006			2006			2006
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	17,712		$	15,650		$	13,800		$	12,547
Purchases		222			2,907			511			219
Servicing from securitizations or asset transfers		843			965			1,310			989
Sales		(469	)		—			—			—
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		66			(1,147	)		550			522
Other changes in fair value (2)		(783	)		(663	)		(521	)		(477	)
Fair value, end of quarter	$	17,591		$	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
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)		2006			2006			2006			2006			2005
Amortized MSRs:
Balance, beginning of quarter	$	328		$	175		$	142		$	122		$	11,953
Purchases		53			161			39			25			912
Servicing from securitizations or asset transfers		9			2			—			—			888
Amortization		(13	)		(10	)		(6	)		(5	)		(486	)
Other (includes changes due to hedging)		—			—			—			—			431
Balance, end of quarter	$	377		$	328		$	175		$	142		$	13,698
Valuation allowance:
Balance, beginning of quarter	$	—		$	—		$	—		$	—		$	1,242
Reversal of provision for MSRs in excess of fair value		—			—			—			—			(55	)
Balance, end of quarter	$	—		$	—		$	—		$	—		$	1,187
Amortized MSRs, net	$	377		$	328		$	175		$	142		$	12,511
Fair value of amortized MSRs:
Beginning of quarter	$	440		$	252		$	205		$	146		$	10,845
End of quarter		457			440			252			205			12,693

-29-

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

	Quarter ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in millions)	2006			2006			2006			2006			2005
Servicing income, net:
Servicing fees (1)	$	1,011		$	947		$	820		$	747		$	675
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)		66			(1,147	)		550			522			—
Other changes in fair value (3)		(783	)		(663	)		(521	)		(477	)		—
Amortization		(13	)		(10	)		(6	)		(5	)		(486	)
Reversal of provision for MSRs in excess of fair value		—			—			—			—			55
Net derivative gains (losses):
Fair value accounting hedges (4)		—			—			—			—			(176	)
Economic hedges (5)		33			1,061			(533	)		(706	)		189
Total servicing income, net	$	314		$	188		$	310		$	81		$	257
Market-related valuation changes to MSRs, net of hedge results (2) + (5)	$	99		$	(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.

	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in billions)	2006			2006			2006			2006			2005
Managed servicing portfolio:
Loans serviced for others (1)	$	1,280		$	1,235		$	1,020		$	931		$	871
Owned loans serviced (2)		86			90			90			110			118
Total owned servicing		1,366			1,325			1,110			1,041			989
Sub-servicing		19			20			23			25			27
Total managed servicing portfolio	$	1,385		$	1,345		$	1,133		$	1,066		$	1,016
Ratio of MSRs to related loans serviced for others		1.41	%		1.46	%		1.55	%		1.50	%		1.44	%
Weighted-average note rate (owned servicing only)		5.92	%		5.86	%		5.80	%		5.75	%		5.72	%

(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
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(in billions)	2006			2006			2006			2006			2005
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	90		$	95		$	108		$	95		$	89
Refinances as a percentage of applications		40	%		41	%		34	%		39	%		43	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	48		$	55		$	63		$	59		$	50

	Quarter ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in billions)	2006		2006		2006		2006		2005
Residential Real Estate Originations: (1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	29	$	29	$	33	$	26	$	34
Correspondent/Wholesale (2)		46		63		70		53		64
Home equity loans and lines		9		10		11		9		12
Wells Fargo Financial		3		2		2		3		3
Total	$	87	$	104	$	116	$	91	$	113
Year-to-date	$	398	$	311	$	207	$	91	$	366

(1)	Consists of residential real estate originations from all Wells Fargo channels.
(2)	Includes $17 billion, $27 billion, $35 billion, $25 billion, $25 billion of co-issue volume, respectively. Under co-issue arrangements, Wells Fargo becomes the servicer when the correspondent securitizes the related loans.