Wells Fargo & Company (WFC) 8-K Wells Fargo Reports Net Income of $1.64 Billion, or $0.49 Per Share Wachovia Merger on Track for Q4 Close

Media	Investors
Janis Smith	Bob Strickland	Jim Rowe
(415) 396-7711	(415) 396-0523	(415) 396-8216

Wednesday, October 15, 2008

WELLS FARGO REPORTS NET INCOME OF $1.64 BILLION, OR $0.49 PER SHARE
WACHOVIA MERGER ON TRACK FOR Q4 CLOSE

• Strong business momentum continues:

o Year-to-date revenue up 11 percent

o Average loans up 15 percent from prior year and 13 percent (annualized) from prior quarter

o Average earning assets up 15 percent from prior year and 13 percent (annualized) from prior quarter

o Core deposits up 10 percent from September 30, 2007, and 30 percent (annualized) from June 30, 2008

o Cross-sell of 6.3 for wholesale customers and a record 5.7 for retail bank households

• Credit reserve build of $500 million ($0.10 per share), bringing allowance for credit losses to $8.0 billion

• Previously announced impairment charges for investments in Fannie Mae, Freddie Mac and Lehman Brothers totaling $646 million ($0.13 per share)

• Revenue up 5 percent from prior year despite impact of investment write-downs

• Tier 1 capital of 8.58 percent, up from 8.24 percent in second quarter 2008

Selected Financial Information

	Quarter ended
	Sept. 30		,	June 30		,	Sept. 30		,
	2008			2008			2007
Earnings
Diluted earnings per share	$	0.49		$	0.53		$	0.64
Net income (in billions)		1.64			1.75			2.17
Asset Quality
Net charge-offs as % of avg. total loans		1.96	%		1.55	%		1.01	%
Nonperforming loans as % of total loans		1.22			1.02			0.58
Allowance as a % of total loans		1.95			1.88			1.11
Other
Revenue (in billions)	$	10.38		$	11.46		$	9.85
Average loans (in billions)		404.2			391.5			350.7
Average core deposits (in billions)		320.1			318.4			306.1
Net interest margin		4.79	%		4.92	%		4.55	%

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SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $0.49 in third quarter 2008 compared with $0.53 in second quarter 2008 and $0.64 in third quarter 2007. Net income was $1.64 billion compared with $1.75 billion in second quarter 2008 and $2.17 billion in third quarter 2007.

“Despite the dramatic changes in our industry and economy, the Wells Fargo team rose to the challenge this quarter and achieved solid growth in loans and deposits, a truly remarkable accomplishment,” said President and CEO John Stumpf. “Revenue year to date was up 11 percent continuing our track record of strong, double-digit growth. Our strength, security and outstanding financial performance continued to compare favorably with our industry peers. Our vision and values and our diversified business model are time-tested over more than two decades. We’re focused, as always, on building lifelong relationships with our customers and communities, and because of that we continue to grow market share and wallet share.Barron’sranks us one of the world’s 20 most admired companies.

“We’re known and admired for our conservative financial position, and a disciplined acquisition strategy that will not change. In that regard, we look forward with great anticipation and confidence to completing our merger with Wachovia Corporation by year end. The union of our two companies will provide compelling value for all our stakeholders, including Wachovia’s team members, combining the industry’s best in service and best in sales, an unbeatable combination that will create the nation’s premier coast-to-coast financial services company.”

Financial Performance
“Wells Fargo earned $1.64 billion, or $0.49 per share, in the third quarter, after incurring $0.13 per share of previously announced write-downs for investments in Fannie Mae, Freddie Mac and Lehman Brothers,” said Chief Financial Officer Howard Atkins. “We also built our credit reserves by an additional $500 million ($0.10 per share), bringing the allowance for credit losses to $8.0 billion, a $4.0 billion increase in the allowance since the credit crunch began a year ago. Business momentum remained strong in the quarter, with double-digit loan and earning asset growth (both up 15 percent year over year), double-digit growth in core deposits (up 10 percent from September 30, 2007 and 30 percent (annualized) from June 30, 2008, double-digit growth in assets under management, primarily mutual funds (up 12 percent year over year) and a record 5.7 cross-sell in our retail banking business. In addition, we continued to fortify our already strong balance sheet.

“Our net interest margin remained among the best of the large bank holding companies at 4.79 percent, reflecting the decline in our funding costs since last year and continued above-market growth in core deposits. Finally, despite the strong growth in earning assets, investment write-downs and higher credit costs in the quarter, our capital ratios increased, with Tier 1 capital rising to 8.58 percent, one of the strongest capital positions in the industry. The strength of our franchise, earnings and balance sheet positions us well for the exciting merger about to take place with Wachovia.”

Revenue
Revenue was $10.38 billion, up 5 percent from $9.85 billion a year ago. The write-downs for investments in Fannie Mae, Freddie Mac and Lehman Brothers reduced revenue by 7 percentage points. “Year-to-date revenue was up 11 percent, a remarkable accomplishment in this environment,” said Atkins. “Many of our businesses continued to generate double-digit, year-over-year revenue growth including asset-based lending, commercial banking, credit cards, mortgage

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banking, insurance, international and wealth management, and the significant growth this quarter in net new checking accounts positions us well with new accounts and new customers to continue our strong, double-digit revenue growth.”

Loans
Average loans of $404.2 billion increased $53.5 billion, or 15 percent, from a year ago. On a linked-quarter basis, average loans grew $12.7 billion, or 13 percent (annualized). Average commercial and commercial real estate loans increased $36.0 billion, or 27 percent, from third quarter 2007 and increased $9.7 billion, or 24 percent (annualized), from second quarter 2008, making this the 16^th consecutive quarter of double-digit, year-over-year growth. Average consumer loans increased $17.8 billion, or 9 percent, from third quarter 2007, and increased $3.1 billion, or 5 percent (annualized), from second quarter 2008. “We continued to provide new, appropriately-priced credit to our customers while at the same time paring down indirect channels and higher risk tiers,” said Atkins.

Deposits
“We saw a tremendous inflow of deposits in the latter part of the quarter, especially at the end of September reflecting what we believe is a significant flight to quality,” said Atkins. Core deposits increased $23.7 billion, or 30 percent (annualized), from June 30, 2008. Average core deposits of $320.1 billion increased $13.9 billion, or 5 percent, from a year ago and $1.7 billion, or 2 percent (annualized), linked quarter. Average mortgage escrow deposits were $21.2 billion, down $1.2 billion from third quarter 2007 and down $1.5 billion linked quarter. Average retail core deposits increased $13.2 billion, or 6 percent, from third quarter 2007 and increased $3.8 billion, or 7 percent (annualized), linked quarter. Average consumer checking accounts grew a net 6.1 percent from second quarter 2007, with 8 percent growth in California, the largest increase in net new checking accounts in California in almost four years. Wealth Management group average core deposits of $22.7 billion increased $7.7 billion, or 52 percent, from third quarter 2007.

Net Interest Income
Net interest income increased $1.1 billion, or 21 percent, from third quarter 2007 driven by double-digit earning asset growth (up 15 percent) and a 24 basis point increase in the net interest margin to 4.79 percent. Net interest income grew $103 million, or 7 percent (annualized), linked quarter due to 13 percent (annualized) linked-quarter growth in earning assets offset in part by a 13 basis point linked-quarter decline in the net interest margin. “At 4.79 percent, we continued to have an industry-leading net interest margin in large part due to wider new business spreads, significantly lower funding costs, and our success in building core deposits,” said Atkins. “The modest decline in our net interest margin on a linked-quarter basis was due to asset growth and slightly lower loan yields. The year-to-date increase in net interest income has basically offset the year-to-date increase in net loan charge-offs. Thus, for Wells Fargo, excluding the credit reserve build, the benefits of the credit crisis in terms of increasing assets at wider spreads have offset the negative aspects of the credit crisis in terms of higher loan losses.”

Noninterest Income
Noninterest income decreased $575 million from third quarter 2007, including a $756 million decline in net investment gains. The $1.2 billion decrease in noninterest income linked quarter was primarily due to a $378 million decline in net investment gains, as well as lower linked-quarter mortgage banking income. Net investment losses of $423 million consisted of previously announced other-than-temporary impairment charges of $646 million for Fannie Mae, Freddie

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Mac and Lehman Brothers, an additional $247 million of other-than-temporary write-downs on debt securities and $470 million of realized bond and equity gains.

Despite the 24 percent decline in the S&P500^® year over year, trust and investment fees declined only 5 percent. Card fees were up 7 percent year over year and 9 percent (annualized) linked quarter due to continued growth in new accounts and greater purchase activity. Insurance fees were up 33 percent year over year due to customer growth, higher crop insurance revenues and the fourth quarter 2007 acquisition of ABD Insurance, but declined 20 percent linked quarter due to seasonally lower crop insurance revenues. Charges and fees on loans were up 8 percent, primarily reflecting strong commercial loan demand. Net unrealized losses on securities available for sale were $4.9 billion at September 30, 2008, compared with net unrealized losses of $2.1 billion at June 30, 2008.

Mortgage banking noninterest income was a solid $892 million, the second best quarter ever. Mortgage banking noninterest income increased $69 million from third quarter 2007 and was down $305 million linked quarter, with higher servicing income offset by lower origination volumes. The owned mortgage servicing portfolio was $1.56 trillion at quarter end, up 6 percent from a year ago. Mortgage applications of $83 billion in the quarter were down 13 percent from a year ago but at wider margins.

Noninterest Expense
Noninterest expense decreased $154 million, or 3 percent, from third quarter 2007 and decreased $343 million linked quarter. “We continued to make investments in distribution and sales and service team members, adding over 1,000 platform bankers since last year end and adding 12 new banking stores in third quarter 2008 alone. We continue to be disciplined about our efforts to restrict expenses to revenue-creating opportunities while at the same time paring down other unit costs,” said Atkins. The efficiency ratio was 53.2 percent even after taking into account the non-cash, other-than-temporary impairment.

Credit Quality
“The current credit cycle continued to be challenging,” said Chief Credit Officer Mike Loughlin. “While our wholesale portfolios continued to perform well given current market conditions, several consumer loan portfolios remained under stress.” Third quarter 2008 net charge-offs were $1,995 million (1.96 percent of average loans, annualized) compared with $1,512 million (1.55 percent) in second quarter 2008 and $892 million (1.01 percent) in third quarter 2007. A significant part of the sequential increase reflected the changes in the National Home Equity Group (Home Equity) charge-off policy in the second quarter, which deferred an estimated $265 million of charge-offs. After taking into account the impact of the new Home Equity policy, charge-offs rose at a more moderate pace in third quarter than in the last few quarters. Third quarter 2008 provision was $2.5 billion, including a $500 million credit reserve build primarily related to higher projected losses in several consumer credit businesses, as well as growth in the wholesale portfolios, bringing the allowance for credit losses to $8.0 billion, double its level from just before the credit crunch began a year ago. “As expected, consumer behavior continued to be influenced by weakness in residential real estate values. Additionally, the effects of higher energy prices and higher unemployment levels impacted the performance of the consumer loan portfolios during the quarter. On the positive side, we saw signs of stabilizing loan losses in our business direct and student loan business. Loan requests in our wholesale businesses have increased dramatically as quality borrowers are providing attractive business opportunities that are both well-structured and appropriately priced for risk.”

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Net charge-offs in the real estate 1-4 family first mortgage portfolio increased $43 million linked quarter, including the $19 million increase from Wells Fargo Financial’s residential real estate portfolio. “As stated in prior quarters, residential real estate loss levels will continue to be driven by housing price trends,” said Loughlin. Credit card charge-offs increased $32 million. “Loss levels continued to increase in this credit cycle as the impacts from lower disposable income and unemployment weigh on the consumer.” Losses in the auto portfolio increased $74 million from second quarter 2008 in part due to seasonality and lower used car values. “While we remain optimistic about the positive impacts of process improvements and underwriting changes we made in the auto business in prior quarters, as well as our robust loss mitigation efforts, the economic environment continued to stress the consumer and influence loan performance.”

Net charge-offs in the real estate 1-4 family junior lien portfolio increased $307 million from second quarter 2008 as the effect of the second quarter charge-off policy change dissipated. “The fact that property values continued to drop in many markets directly impacted loss levels in this portfolio,” said Loughlin. “Until residential real estate values stabilize, the Home Equity portfolio will produce higher than normal loss levels.” Of the combined $350 million increase in real estate first and second mortgage losses, approximately $265 million was due to the deferral of charge-offs from second quarter related to the change in the Home Equity charge-off policy. More information about the Home Equity portfolio is available on page 34.

Commercial and commercial real estate net charge-offs decreased $4 million linked quarter, including a modest decline in charge-offs on loans originated through our Business Direct small business lending group. “The wholesale businesses continued to weather the turbulent credit environment relatively well and we are pleased with the progress we’ve made in small business credit,” said Loughlin. “Commercial credits related to residential real estate and the consumer segment have shown some weakness, but remained within our expectations. On the positive side, additional lending opportunities have increased as our customers have seen credit availability shrink in the market place. Our ability to lend to our quality customers is a win-win scenario.”

		Quarter ended						Quarter ended
		Sept. 30, 2008						June 30, 2008*
	Net loan			As a %			Net loan			As a %
	charge-offs			of average			charge-offs			of average
	(in millions)			loans			(in millions)			loans
Commercial and commercial real estate:
Commercial		$	278		1.10	%		$	301		1.27	%
Other real estate mortgage			8		0.06				4		0.04
Real estate construction			36		0.73				27		0.58
Lease financing			16		0.88				10		0.56
Total commercial and commercial real estate			338		0.78				342		0.85
Consumer:
Real estate 1-4 family first mortgage			139		0.73				96		0.53
Real estate 1-4 family junior lien			641		3.38				334		1.79
Credit card			361		7.20				329		6.95
Other revolving credit and installment			469		3.45				367		2.68
Total consumer			1,610		2.84				1,126		2.04
Foreign			47		2.58				44		2.36
Total		$	1,995		1.96			$	1,512		1.55
Estimated impact of Home Equity charge-off policy change								$	265

* As previously announced, the Home Equity charge-off policy changed in the second quarter from 120 days to no more than 180 days, which had the effect of deferring an estimated $265 million of charge-offs from second quarter.

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Nonperforming Assets
Total nonperforming assets were $6.29 billion (1.53 percent of total loans) at September 30, 2008, and included $5.00 billion of nonperforming loans, $596 million of insured Government National Mortgage Association (GNMA) loan repurchases, and $700 million of foreclosed and repossessed real estate and vehicles. This compares with $5.23 billion (1.31 percent) at June 30, 2008, consisting of $4.07 billion of nonperforming loans, $535 million of GNMA loan repurchases and $619 million of foreclosed and repossessed assets. “Until conditions improve in the residential real estate and liquidity markets, we will continue to hold more nonperforming assets on our balance sheet as it is currently the most economic option available,” said Loughlin. “A portion of the increase in nonperforming loans continued to relate to our active loss mitigation strategies at Home Equity, Wells Fargo Home Mortgage (Home Mortgage) and Wells Fargo Financial as we are aggressively working with customers to keep them in their homes. Increases in commercial nonperforming assets were also a direct result of the conditions in the residential real estate markets and general consumer economy. The home builders, mortgage service providers, contractors, suppliers and others in the residential real estate-related segments continued to be stressed as this cycle plays out. Additionally, as the consumer cuts back on discretionary spending we are seeing some of those credits dependent on this spending weaken.”

Loans 90 days or more past due and still accruing totaled $8.44 billion, $7.26 billion, and $5.53 billion at September 30, 2008, June 30, 2008, and September 30, 2007, respectively. For the same periods, the totals included $6.30 billion, $5.48 billion and $4.26 billion, respectively, in advances pursuant to our servicing agreement to GNMA mortgage pools and similar loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs. “We continued to see the balances of 90 days or greater past due and still accruing increasing as the negative credit trends impact loan performance.”

Loans 90 Days or More Past Due and Still Accruing
(Excluding Insured/Guaranteed GNMA and Similar Loans)

	Sept. 30		,	June 30		,	Sept. 30		,
(in millions)	2008			2008			2007
Commercial and commercial real estate:
Commercial	$	46		$	16		$	14
Other real estate mortgage		111			38			22
Real estate construction		146			81			10
Total commercial and commercial real estate		303			135			46
Consumer:
Real estate 1-4 family first mortgage		429			370			225
Real estate 1-4 family junior lien mortgage		257			236			127
Credit card		498			441			303
Other revolving credit and installment		617			563			520
Total consumer		1,801			1,610			1,175
Foreign		40			35			42
Total loans	$	2,144		$	1,780		$	1,263

Allowance for Credit Losses
The allowance for credit losses, including unfunded commitments, totaled $8.03 billion at September 30, 2008, compared with $7.52 billion at June 30, 2008. Third quarter 2008 results included a credit reserve build of $500 million primarily for higher projected loss rates across several consumer credit businesses, as well as growth in the wholesale portfolios. Since the beginning of fourth quarter 2007, the Company has provided $3.9 billion in excess of net charge-

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offs. “Over the last 12 months, we have doubled the size of the allowance to address higher credit losses and support the strength of our balance sheet in these volatile times,” said Loughlin. “We believe the allowance was adequate for losses inherent in the portfolio at September 30, 2008.”

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

	Third Quarter
(in millions)	2008			2007
Community Banking		$1,587			$1,447
Wholesale Banking		83			591
Wells Fargo Financial		(33	)		135

More financial information about the business segments is on pages 29 and 30.

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				%
(in millions)	2008		2007		Change
Total revenue		$7,203		$6,323		14	%
Provision for credit losses		1,431		446		221
Noninterest expense		3,447		3,713		(7	)
Net income		1,587		1,447		10
(in billions)
Average loans		220.5		197.4		12
Average assets		380.4		348.1		9
Average core deposits		254.9		243.0		5

Community Banking reported net income of $1.59 billion, up $140 million, or 10 percent, from a year ago. Pre-tax pre-provision income (i.e., revenue less noninterest expense) increased $1.15 billion, or 44 percent from a year ago. Revenue increased $880 million, or 14 percent, driven by strong balance sheet growth and strong fee income growth in retail banking and mortgage. Average loans of $220.5 billion grew 12 percent and average core deposits of $254.9 billion grew 5 percent with a portion of the growth due to acquisitions. Noninterest income decreased $22 million from third quarter 2007 and included $486 million of other-than-temporary impairment charges. This was partially offset by double-digit growth in mortgage banking and strong growth in deposit service charges and card fees. Noninterest expense decreased $266 million, or 7 percent. The provision for credit losses increased $985 million (including a $160 million credit reserve build) from third quarter 2007, with over half of the increase related to Home Equity.

Regional Banking

• Record core product solutions (sales) of 6.30 million, up 20 percent from prior year

• Record core sales per platform banker FTE (active, full-time equivalent) of 5.72 per day, up from 5.18 in prior year

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• Record retail bank household cross-sell of 5.7 products per household; 24 percent of our retail bank households have 8 or more products, our long-term goal

• Sales ofWells Fargo Packages^® (a checking account and at least three other products) up 47 percent from prior year, purchased by 74 percent of new checking account customers

• Consumer checking accounts up a net 6.1 percent from prior year, up over 8 percent in California

• Customer loyalty scores up 7 percent and welcoming and wait time scores up 8 percent from prior year (based on customers conducting transactions with tellers)

• Added 1,115 platform banker FTEs from prior year through hiring and acquisitions

• Opened 12 banking stores, added 13webATM^® machines and converted 226 toEnvelope-free^SMwebATMmachines

• Business Banking

o Store-based business solutions up 25 percent from prior year

o Loans to small businesses (loans primarily less than $100,000 on our Business Direct platform) up 6 percent from prior year

o Business checking accounts up a net 2.3 percent from prior year

o Business Banking household cross-sell of 3.6 products per household

o Sales ofWells Fargo Business Services Packages(a business checking account and at least three other business products) up 42 percent from prior year, purchased by 50 percent of new business checking account customers

o According to 2007 CRA data, Wells Fargo was America’s #1 small business lender for the sixth consecutive year, extending $23 billion in originations to small business owners nationwide (in loans under $100,000)

“Our amazing regional banking team continued to focus on helping our customers succeed financially by providing a record 6.30 million core product solutions in the third quarter, up 20 percent from the prior year,” said Carrie Tolstedt, senior EVP, Community Banking. “In addition to our record retail bank household cross-sell, we experienced significant gains in net new customer relationships. Consumer checking accounts were up a net 6.1 percent, the highest growth in almost four years, with over 8 percent net gain in California. We continued to have success with cross-selling these new relationships, with sales ofWells Fargo Packages^®remaining strong, purchased by 74 percent of new checking account customers. Many indicators show that new and existing customers are honoring us with more of their business.”

Home Mortgage

• Home Mortgage retail originations of $23 billion, down 21 percent from prior year

• Mortgage applications of $83 billion, down 13 percent from prior year

• Mortgage application pipeline of $41 billion, down 9 percent from prior year

• Record owned mortgage servicing portfolio of $1.56 trillion, up 6 percent from prior year and 4 percent (annualized) from prior quarter

“Our talented and dedicated sales, servicing and capital markets teams continued to manage through all the turmoil in the housing and financial markets and delivered very strong performance this quarter,” said Mark Oman, senior EVP, Home and Consumer Finance Group. “By staying true to the Wells Fargo vision of satisfying all our customers’ financial needs and helping them succeed financially and to our long-term commitment to responsible lending and responsible servicing principles, we have avoided many of the issues which have plagued the industry this year.

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“While mortgage originations declined as a result of the combined slowdown in home purchase and refinancing activities thus reducing gains on sales of mortgage loans, this reduction in revenue was partially offset by higher servicing income which benefited from the decline in mortgage pre-payments.

“Despite the economic slowdown, our servicing portfolio continued to perform relatively well. For our largest product category, prime conventional first mortgages representing 5.7 million customers and over $1 trillion of servicing, 97 out of every 100 customers were current with their payments as of September 30, 2008, compared with 98 out of every 100 as of September 30, 2007. We believe in homeownership and do all we can to keep people in their homes. We are committed to working with our customers, government agencies and our mortgage securities investors to find potential solutions when our customers experience financial difficulties and only as a last resort will we foreclose.”

Wealth Management Group

• Revenue up 14 percent from prior year

• Net income up 32 percent from prior year

• Private Bank revenue up 56 percent, net income up 99 percent from prior year

• Private Bank average core deposits up 52 percent, average loans up 29 percent from prior year

• WellsTrade^® revenue up 40 percent from prior year

• Wells Fargo Private Bank opened its first location in Manhattan

Online Banking

• 10.8 million active online consumers, up 14 percent from prior year; 68 percent of all consumer checking accounts are online

• 5.4 million online money movement customers, up 16 percent from prior year

• 1.1 million active online small business customers, up 16 percent from prior year

• Announced national availability ofWells Fargo vSafe^SM service, lets customers protect, organize and access online copies of important documents, first storage solution of its kind from a major financial institution

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, corporate trust, capital markets activities and asset management.

Selected Financial Information

	Third Quarter				%
(in millions)	2008		2007		Change
Total revenue		$1,782		$2,157		(17	)%
Provision for credit losses		294		19	NM
Noninterest expense		1,393		1,230		13
Net income		83		591		(86	)
(in billions)
Average loans		116.2		87.5		33
Average assets		156.6		115.9		35
Average core deposits		65.2		63.1		3

NM - Not meaningful

• Average loans up 33 percent

• Average mutual fund balances up 12 percent over same period last year

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• Institutional Brokerage record revenue up 57 percent over same period last year

• Foreign Exchange revenue up 33 percent over same period last year

• Acquired insurance brokerages in Indiana, New Jersey, North Carolina and Washington

“Wholesale Banking’s third quarter results were substantially impacted by the illiquidity and disruption in the credit markets, particularly write-downs associated with Fannie Mae, Freddie Mac and Lehman Brothers,” said Dave Hoyt, senior EVP, Wholesale Banking Group. “While we’re not pleased about the impacts of these events brought on by current market conditions, these same market conditions have benefited us by creating more opportunities to increase market share by bringing in new customers and increase wallet share by doing more business with existing customers. Our underlying business performance was good, with strong loan and deposit growth across the board. We’re growing relationships, gaining new customers, and getting more chances to compete for their business. Wholesale Banking’s overall cross-sell was 6.3 products per customer relationship, and our middle market business had an average of 7.8 products per customer relationship. Average loans increased 33 percent from a year ago. Our credit performance was in line with our expectations, but we continue to have a cautious outlook. Our credit policies and disciplined approach work for us and our customers in good times and bad.

“In a testament to our diversified business model, revenue was broad-based. Certain business lines – such as Commercial Real Estate brokerage – were more impacted by current conditions while others – including Foreign Exchange, Treasury Management and Institutional Brokerage – did very well. Even given the difficult equity market performance, with the S&P500 Index down 24 percent in the last 12 months, our mutual fund balances grew 12 percent. Growth was fueled mainly by increased money market balances, up over 15 percent in third quarter 2008 on a linked-quarter basis. Since the launch of ourCEO Mobile^® service last year – the only browser-based mobile banking service for corporate banking customers – we have transferred over $1 billion through the phone channel.Foreign Exchange Online (FXOL) – the online foreign exchange customer platform accessed through theCommercial Electronic Office^® (CEO^®) portal – was extended to small businesses to help them manage their foreign currency risk.”

Wholesale Banking reported net income of $83 million in third quarter 2008 compared with $591 million a year ago, mainly due to other-than-temporary impairment charges in our securities portfolio. Revenue decreased $375 million, including impairment charges of $407 million. Net interest income increased $136 million or 15 percent, driven by strong loan and deposit growth. Average loans grew to $116 billion, up 33 percent from a year ago, with double-digit increases across nearly all wholesale lending businesses. Average total deposits were $84 billion, up 10 percent from a year ago, all in interest-bearing balances. Noninterest income decreased $511 million from third quarter 2007, primarily due to impairment charges. Noninterest income from foreign exchange, loan fees, institutional brokerage and insurance all increased. Noninterest expense increased $163 million from a year ago, mainly due to higher personnel-related costs including expenses due to the acquisition of ABD Insurance and higher agent commissions in the crop insurance business stemming from higher commodity prices. The provision for credit losses was $294 million, an increase of $275 million from third quarter 2007, and included $115 million of net charge-offs (0.39 percent of total loans) and a $178 million credit reserve build for the wholesale portfolio.

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

Selected Financial Information

	Third Quarter					%
(in millions)	2008			2007		Change
Total revenue		$1,394			$1,373		2	%
Provision for credit losses		770			427		80
Noninterest expense		677			728		(7	)
Net income (loss)		(33	)		135	NM
(in billions)
Average loans		67.5			65.8		3
Average assets		71.4			71.7		--

NM - Not meaningful

• Average loans/leases of $67.5 billion, up 3 percent from third quarter 2007

• Real estate-secured receivables of $29.2 billion, up 12 percent from third quarter 2007

• Auto finance receivables/operating leases of $26.2 billion, down 14 percent from third quarter 2007

“Although Wells Fargo Financial credit losses were elevated from historic norms in all of our portfolios because of current market stress on consumers, we continued to fare much better than industry averages due to previously implemented tightened underwriting standards in our real estate, auto and credit cards businesses that have enabled us to effectively manage risk,” said Tom Shippee, Wells Fargo Financial CEO. “In our real estate-secured portfolio, those losses have been predominately concentrated in California, Florida, Arizona and Nevada, where 26 percent of our $29.2 billion portfolio is based. In the first nine months of 2008, we have worked to reduce expenses during this difficult credit environment by consolidating our store network – closing 9 percent, or 86, of our U.S. stores – and also by reducing our full-time equivalent team member base by 14 percent, or almost 3,000 FTEs.”

“We work hard to keep our real estate customers in their homes,” said Dave Kvamme, Wells Fargo Financial president and chief operating officer. “Our foreclosure rate was dramatically below the industry average for nonprime lenders. The strength of our portfolio relative to the industry is due to our sound and conservative underwriting standards, which prohibit the selling of higher-risk products such as stated income or teaser rate loans. Losses in our auto portfolio increased this quarter, driven by a decline in used car values. Across all of our businesses, we continue to take actions to reduce credit risk and right-size our expense base.”

Wells Fargo Financial lost $33 million this quarter reflecting higher credit costs, including a $162 million credit reserve build as a result of continued softening in the real estate, auto and credit card markets. Third quarter revenue of $1.39 billion was flat from a year ago. Pre-tax pre-provision income (i.e., revenue less noninterest expense) increased $72 million, or 11 percent from a year ago. Average loans increased 3 percent from third quarter 2007. Noninterest expense declined 7 percent from third quarter 2007.

- 12 -

Recorded Message

A recorded message reviewing Wells Fargo’s results is available at 5:30 a.m. Pacific Time through October 18, 2008. Dial 866-519-1052 (domestic) or 585-295-6792 (international). No password is required. The call is also available on the internet atwww.wellsfargo.com/invest_relations/earnings and
http://www.investorcalendar.com/IC/CEPage.asp?ID=135429.

Wells Fargo & Company is a diversified financial services company with $623billion in assets, providing banking, insurance, investments, mortgage and consumer finance through almost 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only two banks worldwide, to have the highest possible credit rating from both Moody’s Investors Service, “Aaa,” and Standard & Poor’s Ratings Services, “AAA.”

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 our beliefs and expectations for future credit quality and losses and our expectations for the Wachovia merger transaction, the statement that residential real estate loss levels will continue to be driven by housing price trends, the statement that until residential real estate values stabilize, the Home Equity portfolio will produce higher than normal loss levels, and the statement that until conditions improve in the residential real estate and liquidity markets, we will continue to hold more nonperforming assets on our balance sheet. 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 further deterioration in the credit quality of our home equity, real estate, auto or other loan portfolios, or in the value of the collateral securing those loans, due to higher interest rates, increased unemployment, declining home or auto values, economic recession or other economic factors. Factors related to the Wachovia merger include the receipt of necessary regulatory approvals and the approval of Wachovia shareholders. For a discussion of factors that may cause actual results to differ from expectations, refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, and our Annual Report on Form 10-K for the year ended December 31, 2007, including information incorporated into the 10-K from our 2007 Annual Report to Stockholders, filed with the Securities and Exchange Commission (SEC) and available on the SEC’s website at www.sec.gov.

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.

- 13 -

Where to Find More Information About the Wachovia Merger

The proposed merger will be submitted to Wachovia Corporation shareholders for their consideration. Wells Fargo will file with the SEC a registration statement on Form S-4 that will include a proxy statement of Wachovia Corporation that also constitutes a prospectus of Wells Fargo. Wachovia Corporation will mail the proxy statement-prospectus to its shareholders. Wachovia shareholders and other investors are urged to read the final proxy statement-prospectus when it becomes available because it will describe the proposed merger and contain other important information. You may obtain copies of all documents filed with the SEC regarding the proposed merger, free of charge, on the SEC’s website atwww.sec.gov. You may also obtain free copies of these documents by contacting Wells Fargo or Wachovia, as follows:

Wells Fargo & Company, Investor Relations, MAC A0101-25, 420 Montgomery Street, 2^nd Floor, San Francisco, California 94104-1207, (415) 396-3668.

Wachovia Corporation, Investor Relations, One Wachovia Center, 301 South College Street, Charlotte, North Carolina 28288, (704) 374-6782.

Wells Fargo and Wachovia and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Wachovia Corporation shareholders in connection with the proposed merger. Information about Wells Fargo’s directors and executive officers and their ownership of Wells Fargo common stock is contained in the definitive proxy statement for Wells Fargo’s 2008 annual meeting of stockholders, as filed by Wells Fargo with the SEC on Schedule 14A on March 17, 2008. Information about Wachovia’s directors and executive officers and their ownership of Wachovia common stock is contained in the definitive proxy statement for Wachovia’s 2008 annual meeting of shareholders, as filed by Wachovia with the SEC on Schedule 14A on March 10, 2008. You may obtain a free copy of these documents by contacting Wells Fargo or Wachovia at the contact information provided above. The proxy statement-prospectus for the proposed merger will provide more information about participants in the solicitation of proxies from Wachovia Corporation shareholders.

# # #

- 14 -

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

	Quarter ended Sept. 30,						%			Nine months ended Sept. 30,						%
($ in millions, except per share amounts)	2008			2007			Change			2008			2007			Change
For the Period
Net income	$	1,637		$	2,173			(25	) %	$	5,389		$	6,696			(20	) %
Diluted earnings per common share		0.49			0.64			(23	)		1.62			1.97			(18	)
Profitability ratios (annualized):
Net income to average total assets (ROA)		1.06	%		1.59	%		(33	)		1.21	%		1.76	%		(31	)
Net income to average stockholders’ equity (ROE)		13.63			18.22			(25	)		15.02			19.15			(22	)
Efficiency ratio (1)		53.2			57.5			(7	)		52.0			58.0			(10	)
Total revenue	$	10,379		$	9,853			5		$	32,401		$	29,185			11
Dividends declared per common share		0.34			0.31			10			0.96			0.87			10
Average common shares outstanding		3,316.4			3,339.6			(1	)		3,309.6			3,355.5			(1	)
Diluted average common shares outstanding		3,331.0			3,374.0			(1	)		3,323.4			3,392.9			(2	)
Average loans	$	404,203		$	350,683			15		$	393,262		$	334,801			17
Average assets		614,194			541,533			13			594,717			508,992			17
Average core deposits (2)		320,074			306,135			5			318,582			299,142			6
Average retail core deposits (3)		234,140			220,984			6			230,935			219,356			5
Net interest margin		4.79	%		4.55	%		5			4.80	%		4.79	%		--
At Period End
Securities available for sale	$	86,882		$	57,440			51		$	86,882		$	57,440			51
Loans		411,049			362,922			13			411,049			362,922			13
Allowance for loan losses		7,865			3,829			105			7,865			3,829			105
Goodwill		13,520			12,018			12			13,520			12,018			12
Assets		622,361			548,727			13			622,361			548,727			13
Core deposits (2)		334,076			303,853			10			334,076			303,853			10
Stockholders’ equity		46,957			47,566			(1	)		46,957			47,566			(1	)
Capital ratios:
Stockholders’ equity to assets		7.54	%		8.67	%		(13	)		7.54	%		8.67	%		(13	)
Risk-based capital (4)
Tier 1 capital		8.58			8.17			5			8.58			8.17			5
Total capital		11.50			11.07			4			11.50			11.07			4
Tier 1 leverage (4)		7.54			7.26			4			7.54			7.26			4
Book value per common share	$	14.14		$	14.30			(1	)	$	14.14		$	14.30			(1	)
Team members (active, full-time equivalent)		159,000			158,800			--			159,000			158,800			--
Common Stock Price
High	$	44.68		$	37.99			18		$	44.68		$	37.99			18
Low		20.46			32.66			(37	)		20.46			32.66			(37	)
Period end		37.53			35.62			5			37.53			35.62			5

(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, market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(3)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits. To reflect the realignment of our corporate trust business from Community Banking into Wholesale Banking in first quarter 2008, balances for prior periods have been revised.
(4)	The September 30, 2008, ratios are preliminary.

- 15 -

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)	2008			2008			2008			2007			2007
For the Quarter
Net income	$	1,637		$	1,753		$	1,999		$	1,361		$	2,173
Diluted earnings per common share		0.49			0.53			0.60			0.41			0.64
Profitability ratios (annualized):
Net income to average total assets (ROA)		1.06	%		1.19	%		1.40	%		0.97	%		1.59	%
Net income to average stockholders’ equity (ROE)		13.63			14.58			16.86			11.25			18.22
Efficiency ratio (1)		53.2			51.1			51.7			57.8			57.5
Total revenue	$	10,379		$	11,459		$	10,563		$	10,205		$	9,853
Dividends declared per common share		0.34			0.31			0.31			0.31			0.31
Average common shares outstanding		3,316.4			3,309.8			3,302.4			3,327.6			3,339.6
Diluted average common shares outstanding		3,331.0			3,321.4			3,317.9			3,352.2			3,374.0
Average loans	$	404,203		$	391,545		$	383,919		$	374,372		$	350,683
Average assets		614,194			594,749			574,994			555,647			541,533
Average core deposits (2)		320,074			318,377			317,278			314,808			306,135
Average retail core deposits (3)		234,140			230,365			228,448			226,180			220,984
Net interest margin		4.79	%		4.92	%		4.69	%		4.62	%		4.55	%
At Quarter End
Securities available for sale	$	86,882		$	91,331		$	81,787		$	72,951		$	57,440
Loans		411,049			399,237			386,333			382,195			362,922
Allowance for loan losses		7,865			7,375			5,803			5,307			3,829
Goodwill		13,520			13,191			13,148			13,106			12,018
Assets		622,361			609,074			595,221			575,442			548,727
Core deposits (2)		334,076			310,410			327,360			311,731			303,853
Stockholders’ equity		46,957			47,964			48,159			47,628			47,566
Capital ratios:
Stockholders’ equity to assets		7.54	%		7.87	%		8.09	%		8.28	%		8.67	%
Risk-based capital (4)
Tier 1 capital		8.58			8.24			7.92			7.59			8.17
Total capital		11.50			11.23			11.01			10.68			11.07
Tier 1 leverage (4)		7.54			7.35			7.04			6.83			7.26
Book value per common share	$	14.14		$	14.48		$	14.58		$	14.45		$	14.30
Team members (active, full-time equivalent)		159,000			160,500			160,900			159,800			158,800
Common Stock Price
High	$	44.68		$	32.40		$	34.56		$	37.78		$	37.99
Low		20.46			23.46			24.38			29.29			32.66
Period end		37.53			23.75			29.10			30.19			35.62

(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, market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(3)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits. To reflect the realignment of our corporate trust business from Community Banking into Wholesale Banking in first quarter 2008, balances for prior periods have been revised.
(4)	The September 30, 2008, ratios are preliminary.

- 16 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Sept. 30,					%			Nine months ended Sept. 30,					%
(in millions, except per share amounts)	2008			2007		Change			2008			2007		Change
INTEREST INCOME
Trading assets	$	41		$	37		11	%	$	126		$	137		(8	) %
Securities available for sale		1,397			1,032		35			3,753			2,470		52
Mortgages held for sale		394			586		(33	)		1,211			1,694		(29	)
Loans held for sale		12			19		(37	)		34			51		(33	)
Loans		6,888			7,477		(8	)		20,906			21,341		(2	)
Other interest income		42			72		(42	)		140			242		(42	)
Total interest income		8,774			9,223		(5	)		26,170			25,935		1
INTEREST EXPENSE
Deposits		1,019			2,218		(54	)		3,676			6,016		(39	)
Short-term borrowings		492			464		6			1,274			865		47
Long-term debt		882			1,261		(30	)		2,801			3,568		(21	)
Total interest expense		2,393			3,943		(39	)		7,751			10,449		(26	)
NET INTEREST INCOME		6,381			5,280		21			18,419			15,486		19
Provision for credit losses		2,495			892		180			7,535			2,327		224
Net interest income after provision for credit losses		3,886			4,388		(11	)		10,884			13,159		(17	)
NONINTEREST INCOME
Service charges on deposit accounts		839			837		--			2,387			2,262		6
Trust and investment fees		738			777		(5	)		2,263			2,347		(4	)
Card fees		601			561		7			1,747			1,548		13
Other fees		552			566		(2	)		1,562			1,715		(9	)
Mortgage banking		892			823		8			2,720			2,302		18
Operating leases		102			171		(40	)		365			550		(34	)
Insurance		439			329		33			1,493			1,160		29
Net gains on debt securities available for sale		84			160		(48	)		316			149		112
Net gains (losses) from equity investments		(507	)		173	NM				(148	)		512	NM
Other		258			176		47			1,277			1,154		11
Total noninterest income		3,998			4,573		(13	)		13,982			13,699		2
NONINTEREST EXPENSE
Salaries		2,078			1,933		8			6,092			5,707		7
Incentive compensation		555			802		(31	)		2,005			2,444		(18	)
Employee benefits		486			518		(6	)		1,666			1,764		(6	)
Equipment		302			295		2			955			924		3
Net occupancy		402			398		1			1,201			1,132		6
Operating leases		90			136		(34	)		308			437		(30	)
Other		1,604			1,589		1			4,612			4,516		2
Total noninterest expense		5,517			5,671		(3	)		16,839			16,924		(1	)
INCOME BEFORE INCOME TAX EXPENSE		2,367			3,290		(28	)		8,027			9,934		(19	)
Income tax expense		730			1,117		(35	)		2,638			3,238		(19	)
NET INCOME	$	1,637		$	2,173		(25	)	$	5,389		$	6,696		(20	)
EARNINGS PER COMMON SHARE	$	0.49		$	0.65		(25	)	$	1.63		$	1.99		(18	)
DILUTED EARNINGS PER COMMON SHARE	$	0.49		$	0.64		(23	)	$	1.62		$	1.97		(18	)
DIVIDENDS DECLARED PER COMMON SHARE	$	0.34		$	0.31		10		$	0.96		$	0.87		10
Average common shares outstanding		3,316.4			3,339.6		(1	)		3,309.6			3,355.5		(1	)
Diluted average common shares outstanding		3,331.0			3,374.0		(1	)		3,323.4			3,392.9		(2	)

NM - Not meaningful

- 17 -

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)	2008			2008			2008			2007			2007
INTEREST INCOME
Trading assets	$	41		$	38		$	47		$	36		$	37
Securities available for sale		1,397			1,224			1,132			981			1,032
Mortgages held for sale		394			423			394			456			586
Loans held for sale		12			10			12			19			19
Loans		6,888			6,806			7,212			7,699			7,477
Other interest income		42			46			52			51			72
Total interest income		8,774			8,547			8,849			9,242			9,223
INTEREST EXPENSE
Deposits		1,019			1,063			1,594			2,136			2,218
Short-term borrowings		492			357			425			380			464
Long-term debt		882			849			1,070			1,238			1,261
Total interest expense		2,393			2,269			3,089			3,754			3,943
NET INTEREST INCOME		6,381			6,278			5,760			5,488			5,280
Provision for credit losses		2,495			3,012			2,028			2,612			892
Net interest income after provision for credit losses		3,886			3,266			3,732			2,876			4,388
NONINTEREST INCOME
Service charges on deposit accounts		839			800			748			788			837
Trust and investment fees		738			762			763			802			777
Card fees		601			588			558			588			561
Other fees		552			511			499			577			566
Mortgage banking		892			1,197			631			831			823
Operating leases		102			120			143			153			171
Insurance		439			550			504			370			329
Net gains (losses) on debt securities available for sale		84			(91	)		323			60			160
Net gains (losses) from equity investments		(507	)		46			313			222			173
Other		258			698			321			326			176
Total noninterest income		3,998			5,181			4,803			4,717			4,573
NONINTEREST EXPENSE
Salaries		2,078			2,030			1,984			2,055			1,933
Incentive compensation		555			806			644			840			802
Employee benefits		486			593			587			558			518
Equipment		302			305			348			370			295
Net occupancy		402			400			399			413			398
Operating leases		90			102			116			124			136
Other		1,604			1,624			1,384			1,540			1,589
Total noninterest expense		5,517			5,860			5,462			5,900			5,671
INCOME BEFORE INCOME TAX EXPENSE		2,367			2,587			3,073			1,693			3,290
Income tax expense		730			834			1,074			332			1,117
NET INCOME	$	1,637		$	1,753		$	1,999		$	1,361		$	2,173
EARNINGS PER COMMON SHARE	$	0.49		$	0.53		$	0.61		$	0.41		$	0.65
DILUTED EARNINGS PER COMMON SHARE	$	0.49		$	0.53		$	0.60		$	0.41		$	0.64
DIVIDENDS DECLARED PER COMMON SHARE	$	0.34		$	0.31		$	0.31		$	0.31		$	0.31
Average common shares outstanding		3,316.4			3,309.8			3,302.4		��	3,327.6			3,339.6
Diluted average common shares outstanding		3,331.0			3,321.4			3,317.9			3,352.2			3,374.0

- 18 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

										% Change
										Sept. 30, 2008 from
	Sept. 30		,	Dec. 31		,	Sept. 30		,	Dec. 31		,		Sept. 30		,
(in millions, except shares)	2008			2007			2007			2007				2007
ASSETS
Cash and due from banks	$	12,861		$	14,757		$	12,200			(13)		%		5		%
Federal funds sold, securities purchased under resale agreements and other short-term investments		8,093			2,754			4,546			194				78
Trading assets		9,097			7,727			7,298			18				25
Securities available for sale		86,882			72,951			57,440			19				51
Mortgages held for sale (includes $17,290, $24,998 and $26,714 carried at fair value)		18,739			26,815			29,699			(30	)			(37	)
Loans held for sale		635			948			1,011			(33	)			(37	)
Loans		411,049			382,195			362,922			8				13
Allowance for loan losses		(7,865	)		(5,307	)		(3,829	)		48				105
Net loans		403,184			376,888			359,093			7				12
Mortgage servicing rights:
Measured at fair value (residential MSRs)		19,184			16,763			18,223			14				5
Amortized		433			466			460			(7	)			(6	)
Premises and equipment, net		5,054			5,122			5,002			(1	)			1
Goodwill		13,520			13,106			12,018			3				12
Other assets		44,679			37,145			41,737			20				7
Total assets	$	622,361		$	575,442		$	548,727			8				13
LIABILITIES
Noninterest-bearing deposits	$	89,446		$	84,348		$	82,365			6				9
Interest-bearing deposits		264,128			260,112			252,591			2				5
Total deposits		353,574			344,460			334,956			3				6
Short-term borrowings		85,187			53,255			41,729			60				104
Accrued expenses and other liabilities		29,293			30,706			28,884			(5	)			1
Long-term debt		107,350			99,393			95,592			8				12
Total liabilities		575,404			527,814			501,161			9				15
STOCKHOLDERS’ EQUITY
Preferred stock		625			450			545			39				15
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		8,348			8,212			8,089			2				3
Retained earnings		40,853			38,970			38,645			5				6
Cumulative other comprehensive income (loss)		(2,783	)		725			291		NM				NM
Treasury stock - 151,543,421 shares, 175,659,842 shares and 147,535,970 shares		(5,207	)		(6,035	)		(5,209	)		(14	)			--
Unearned ESOP shares		(667	)		(482	)		(583	)		38				14
Total stockholders’ equity		46,957			47,628			47,566			(1	)			(1	)
Total liabilities and stockholders’ equity	$	622,361		$	575,442		$	548,727			8				13

NM - Not meaningful

- 19 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2008			2008			2008			2007			2007
ASSETS
Cash and due from banks	$	12,861		$	13,610		$	13,146		$	14,757		$	12,200
Federal funds sold, securities purchased under resale agreements and other short-term investments		8,093			4,088			4,171			2,754			4,546
Trading assets		9,097			9,681			8,893			7,727			7,298
Securities available for sale		86,882			91,331			81,787			72,951			57,440
Mortgages held for sale		18,739			25,234			29,708			26,815			29,699
Loans held for sale		635			680			813			948			1,011
Loans		411,049			399,237			386,333			382,195			362,922
Allowance for loan losses		(7,865	)		(7,375	)		(5,803	)		(5,307	)		(3,829	)
Net loans		403,184			391,862			380,530			376,888			359,093
Mortgage servicing rights:
Measured at fair value (residential MSRs)		19,184			19,333			14,956			16,763			18,223
Amortized		433			442			455			466			460
Premises and equipment, net		5,054			5,033			5,056			5,122			5,002
Goodwill		13,520			13,191			13,148			13,106			12,018
Other assets		44,679			34,589			42,558			37,145			41,737
Total assets	$	622,361		$	609,074		$	595,221		$	575,442		$	548,727
LIABILITIES
Noninterest-bearing deposits	$	89,446		$	85,062		$	90,793		$	84,348		$	82,365
Interest-bearing deposits		264,128			254,062			267,351			260,112			252,591
Total deposits		353,574			339,124			358,144			344,460			334,956
Short-term borrowings		85,187			86,139			53,983			53,255			41,729
Accrued expenses and other liabilities		29,293			31,919			31,760			30,706			28,884
Long-term debt		107,350			103,928			103,175			99,393			95,592
Total liabilities		575,404			561,110			547,062			527,814			501,161
STOCKHOLDERS’ EQUITY
Preferred stock		625			723			837			450			545
Common stock		5,788			5,788			5,788			5,788			5,788
Additional paid-in capital		8,348			8,266			8,259			8,212			8,089
Retained earnings		40,853			40,534			39,896			38,970			38,645
Cumulative other comprehensive income (loss)		(2,783	)		(1,060	)		120			725			291
Treasury stock		(5,207	)		(5,516	)		(5,850	)		(6,035	)		(5,209	)
Unearned ESOP shares		(667	)		(771	)		(891	)		(482	)		(583	)
Total stockholders’ equity		46,957			47,964			48,159			47,628			47,566
Total liabilities and stockholders’ equity	$	622,361		$	609,074		$	595,221		$	575,442		$	548,727

- 20 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2008			2008			2008			2007			2007
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	3,463		$	3,853		$	3,888		$	2,972		$	4,219
Trading assets		4,838			4,915			5,129			4,248			4,043
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,141			1,050			975			926			871
Securities of U.S. states and political subdivisions		7,211			7,038			6,290			5,995			5,021
Mortgage-backed securities:
Federal agencies		50,528			40,630			36,097			35,434			52,681
Private collateralized mortgage obligations		21,358			22,419			20,994			14,270			4,026
Total mortgage-backed securities		71,886			63,049			57,091			49,704			56,707
Other debt securities (1)		12,622			13,600			10,825			8,465			5,822
Total debt securities available for sale (1)		92,860			84,737			75,181			65,090			68,421
Mortgages held for sale (2)		24,990			28,004			26,273			28,327			35,552
Loans held for sale (2)		677			734			647			965			960
Loans:
Commercial and commercial real estate:
Commercial		100,688			95,263			91,085			86,958			79,713
Other real estate mortgage		43,616			39,977			37,426			35,863			32,641
Real estate construction		19,715			19,213			18,932			18,510			16,914
Lease financing		7,250			7,087			6,825			6,583			6,026
Total commercial and commercial real estate		171,269			161,540			154,268			147,914			135,294
Consumer:
Real estate 1-4 family first mortgage		76,197			73,663			72,308			69,262			63,929
Real estate 1-4 family junior lien mortgage		75,379			75,018			75,263			75,272			73,476
Credit card		19,948			19,037			18,776			17,689			16,261
Other revolving credit and installment		54,104			54,842			55,910			56,546			54,165
Total consumer		225,628			222,560			222,257			218,769			207,831
Foreign		7,306			7,445			7,394			7,689			7,558
Total loans (2)		404,203			391,545			383,919			374,372			350,683
Other		2,126			2,033			1,825			1,552			1,396
Total earning assets	$	533,157		$	515,821		$	496,862		$	477,526		$	465,274
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	5,483		$	5,487		$	5,226		$	5,254		$	5,160
Market rate and other savings		166,710			161,760			159,865			156,260			149,194
Savings certificates		37,192			37,634			41,915			42,560			41,080
Other time deposits		7,930			5,773			4,763			10,874			10,948
Deposits in foreign offices		49,054			51,884			46,641			44,991			41,326
Total interest-bearing deposits		266,369			262,538			258,410			259,939			247,708
Short-term borrowings		83,458			66,537			52,970			34,074			36,415
Long-term debt		103,745			100,552			100,686			98,012			94,686
Total interest-bearing liabilities		453,572			429,627			412,066			392,025			378,809
Portion of noninterest-bearing funding sources		79,585			86,194			84,796			85,501			86,465
Total funding sources	$	533,157		$	515,821		$	496,862		$	477,526		$	465,274
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	11,024		$	10,875		$	11,648		$	12,127		$	11,579
Goodwill		13,531			13,171			13,161			13,091			12,008
Other		56,482			54,882			53,323			52,903			52,672
Total noninterest-earning assets	$	81,037		$	78,928		$	78,132		$	78,121		$	76,259
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	87,095		$	88,041		$	84,886		$	86,632		$	88,991
Other liabilities		25,762			28,723			30,348			29,019			26,413
Stockholders’ equity		47,765			48,358			47,694			47,971			47,320
Noninterest-bearing funding sources used to fund earning assets		(79,585	)		(86,194	)		(84,796	)		(85,501	)		(86,465	)
Net noninterest-bearing funding sources	$	81,037		$	78,928		$	78,132		$	78,121		$	76,259
TOTAL ASSETS	$	614,194		$	594,749		$	574,994		$	555,647		$	541,533

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

- 21 -

Wells Fargo & Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

	Nine months ended Sept. 30,
(in millions)	2008			2007
Balance, beginning of period	$	47,628		$	45,814
Cumulative effect from adoption of:
FSP 13-2 (1)		--			(71	)
EITF 06-4 and 06-10 (2)		(20	)		--
FAS 158 change of measurement date (3)		(8	)		--
Net income		5,389			6,696
Other comprehensive income (loss), net of tax, related to:
Translation adjustments		(20	)		24
Investment securities and other interests held		(3,485	)		(226	)
Derivative instruments and hedging activities		(6	)		174
Defined benefit pension plans		3			17
Common stock issued		1,269			1,531
Common stock issued for acquisitions		--			649
Common stock repurchased		(1,162	)		(4,765	)
Preferred stock released to ESOP		346			323
Common stock dividends		(3,178	)		(2,919	)
Other, net		201			319
Balance, end of period	$	46,957		$	47,566

(1)	Financial Accounting Standards Board Staff Position 13-2,Accounting for a Change or Projected Change in the Timing of Cash Flows Related to Income Taxes Generated by a Leveraged Lease Transaction.
(2)	Emerging Issues Task Force (EITF) Issue No. 06-4,Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements,and Issue No. 06-10,Accounting for Collateral Assignment Split-Dollar Life Insurance Arrangements.
(3)	Statement of Financial Accounting Standards No. 158,Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106, and 132(R).

- 22 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER LOANS

	Sept. 30		,		June 30		,		Mar. 31		,		Dec. 31		,		Sept. 30		,
(in millions)	2008				2008				2008				2007				2007
Commercial and commercial real estate:
Commercial	$	104,281			$	99,188			$	92,589			$	90,468			$	82,598
Other real estate mortgage		44,741				41,753				38,415				36,747				33,227
Real estate construction		19,681				19,528				18,885				18,854				17,301
Lease financing		7,271				7,160				6,885				6,772				6,089
Total commercial and commercial real estate		175,974				167,629				156,774				152,841				139,215
Consumer:
Real estate 1-4 family first mortgage		77,870				74,829				73,321				71,415				66,877
Real estate 1-4 family junior lien mortgage		75,617				75,261				74,840				75,565				74,632
Credit card		20,358				19,429				18,677				18,762				17,129
Other revolving credit and installment		54,327				54,575				55,505				56,171				57,180
Total consumer		228,172				224,094				222,343				221,913				215,818
Foreign		6,903				7,514				7,216				7,441				7,889
Total loans (net of unearned income)	$	411,049			$	399,237			$	386,333			$	382,195			$	362,922
FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS
	Sept. 30		,		June 30		,		Mar. 31		,		Dec. 31		,		Sept. 30		,
(in millions)	2008				2008				2008				2007				2007
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	846			$	685			$	588			$	432			$	399
Other real estate mortgage		296				198				152				128				133
Real estate construction		736				563				438				293				188
Lease financing		69				59				57				45				38
Total commercial and commercial real estate		1,947				1,505				1,235				898				758
Consumer:
Real estate 1-4 family first mortgage (1)		1,975				1,638				1,398				1,272				886
Real estate 1-4 family junior lien mortgage		780				668				381				280				238
Other revolving credit and installment		232				207				196				184				160
Total consumer		2,987				2,513				1,975				1,736				1,284
Foreign		61				55				49				45				46
Total nonaccrual loans		4,995				4,073				3,259				2,679				2,088
As a percentage of total loans		1.22		%		1.02		%		0.84		%		0.70		%		0.58		%
Foreclosed assets:
GNMA loans (2)		596				535				578				535				487
Other		644				595				637				649				603
Real estate and other nonaccrual investments (3)		56				24				21				5				5
Total nonaccrual loans and other assets	$	6,291			$	5,227			$	4,495			$	3,868			$	3,183
As a percentage of total loans		1.53		%		1.31		%		1.16		%		1.01		%		0.88		%

(1)	Includes nonaccrual mortgages held for sale.
(2)	Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
(3)	Includes real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if these assets were recorded as loans.

- 23 -

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)	2008				2008				2007				2008				2007
Balance, beginning of period	$	7,517			$	6,013			$	4,007			$	5,518			$	3,964
Provision for credit losses		2,495				3,012				892				7,535				2,327
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(305	)			(333	)			(155	)			(897	)			(408	)
Other real estate mortgage		(9	)			(6	)			--				(19	)			(2	)
Real estate construction		(36	)			(28	)			(3	)			(93	)			(5	)
Lease financing		(19	)			(13	)			(8	)			(44	)			(24	)
Total commercial and commercial real estate		(369	)			(380	)			(166	)			(1,053	)			(439	)
Consumer:
Real estate 1-4 family first mortgage		(146	)			(103	)			(22	)			(330	)			(71	)
Real estate 1-4 family junior lien mortgage		(669	)			(352	)			(167	)			(1,476	)			(357	)
Credit card		(396	)			(369	)			(205	)			(1,078	)			(579	)
Other revolving credit and installment		(586	)			(488	)			(473	)			(1,617	)			(1,381	)
Total consumer		(1,797	)			(1,312	)			(867	)			(4,501	)			(2,388	)
Foreign		(59	)			(58	)			(69	)			(185	)			(195	)
Total loan charge-offs		(2,225	)			(1,750	)			(1,102	)			(5,739	)			(3,022	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		27				32				35				90				84
Other real estate mortgage		1				2				2				4				7
Real estate construction		—				1				1				2				2
Lease financing		3				3				3				9				12
Total commercial and commercial real estate		31				38				41				105				105
Consumer:
Real estate 1-4 family first mortgage		7				7				6				20				18
Real estate 1-4 family junior lien mortgage		28				18				14				63				39
Credit card		35				40				29				113				90
Other revolving credit and installment		117				121				105				363				393
Total consumer		187				186				154				559				540
Foreign		12				14				15				40				50
Total loan recoveries		230				238				210				704				695
Net loan charge-offs		(1,995	)			(1,512	)			(892	)			(5,035	)			(2,327	)
Allowances related to business combinations/other		10				4				11				9				54
Balance, end of period	$	8,027			$	7,517			$	4,018			$	8,027			$	4,018
Components:
Allowance for loan losses	$	7,865			$	7,375			$	3,829			$	7,865			$	3,829
Reserve for unfunded credit commitments		162				142				189				162				189
Allowance for credit losses	$	8,027			$	7,517			$	4,018			$	8,027			$	4,018
Net loan charge-offs (annualized) as a percentage of average total loans		1.96		%		1.55		%		1.01		%		1.71		%		0.93		%

- 24 -

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)	2008				2008				2008				2007				2007
Balance, beginning of quarter	$	7,517			$	6,013			$	5,518			$	4,018			$	4,007
Provision for credit losses		2,495				3,012				2,028				2,612				892
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(305	)			(333	)			(259	)			(221	)			(155	)
Other real estate mortgage		(9	)			(6	)			(4	)			(4	)			--
Real estate construction		(36	)			(28	)			(29	)			(9	)			(3	)
Lease financing		(19	)			(13	)			(12	)			(9	)			(8	)
Total commercial and commercial real estate		(369	)			(380	)			(304	)			(243	)			(166	)
Consumer:
Real estate 1-4 family first mortgage		(146	)			(103	)			(81	)			(38	)			(22	)
Real estate 1-4 family junior lien mortgage		(669	)			(352	)			(455	)			(291	)			(167	)
Credit card		(396	)			(369	)			(313	)			(253	)			(205	)
Other revolving credit and installment		(586	)			(488	)			(543	)			(532	)			(473	)
Total consumer		(1,797	)			(1,312	)			(1,392	)			(1,114	)			(867	)
Foreign		(59	)			(58	)			(68	)			(70	)			(69	)
Total loan charge-offs		(2,225	)			(1,750	)			(1,764	)			(1,427	)			(1,102	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		27				32				31				35				35
Other real estate mortgage		1				2				1				1				2
Real estate construction		—				1				1				--				1
Lease financing		3				3				3				5				3
Total commercial and commercial real estate		31				38				36				41				41
Consumer:
Real estate 1-4 family first mortgage		7				7				6				4				6
Real estate 1-4 family junior lien mortgage		28				18				17				14				14
Credit card		35				40				38				30				29
Other revolving credit and installment		117				121				125				111				105
Total consumer		187				186				186				159				154
Foreign		12				14				14				15				15
Total loan recoveries		230				238				236				215				210
Net loan charge-offs		(1,995	)			(1,512	)			(1,528	)			(1,212	)			(892	)
Allowances related to business combinations/other		10				4				(5	)			100				11
Balance, end of quarter	$	8,027			$	7,517			$	6,013			$	5,518			$	4,018
Components:
Allowance for loan losses	$	7,865			$	7,375			$	5,803			$	5,307			$	3,829
Reserve for unfunded credit commitments		162				142				210				211				189
Allowance for credit losses	$	8,027			$	7,517			$	6,013			$	5,518			$	4,018
Net loan charge-offs (annualized) as a percentage of average total loans		1.96		%		1.55		%		1.60		%		1.28		%		1.01		%
Allowance for loan losses as a percentage of:
Total loans		1.91		%		1.85		%		1.50		%		1.39		%		1.06		%
Nonaccrual loans		157				181				178				198				183
Nonaccrual loans and other assets		125				141				129				137				120
Allowance for credit losses as a percentage of:
Total loans		1.95		%		1.88		%		1.56		%		1.44		%		1.11		%
Nonaccrual loans		161				185				185				206				192
Nonaccrual loans and other assets		128				144				134				143				126

- 25 -

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME

	Quarter ended Sept. 30,						%				Nine months ended Sept. 30,					%
(in millions)	2008			2007			Change				2008			2007		Change
Service charges on deposit accounts	$	839		$	837			--		%	$	2,387		$	2,262		6		%
Trust and investment fees:
Trust, investment and IRA fees		549			573			(4	)			1,674			1,720		(3	)
Commissions and all other fees		189			204			(7	)			589			627		(6	)
Total trust and investment fees		738			777			(5	)			2,263			2,347		(4	)
Card fees		601			561			7				1,747			1,548		13
Other fees:
Cash network fees		48			51			(6	)			143			146		(2	)
Charges and fees on loans		266			246			8				765			737		4
All other fees		238			269			(12	)			654			832		(21	)
Total other fees		552			566			(2	)			1,562			1,715		(9	)
Mortgage banking:
Servicing income, net		525			797			(34	)			1,019			968		5
Net gains (losses) on mortgage loan origination/sales activities		276			(61	)	NM					1,419			1,069		33
All other		91			87			5				282			265		6
Total mortgage banking		892			823			8				2,720			2,302		18
Operating leases		102			171			(40	)			365			550		(34	)
Insurance		439			329			33				1,493			1,160		29
Net gains (losses) from trading activities		65			(43	)	NM					684			482		42
Net gains on debt securities available for sale		84			160			(48	)			316			149		112
Net gains (losses) from equity investments		(507	)		173		NM					(148	)		512	NM
All other		193			219			(12	)			593			672		(12	)
Total	$	3,998		$	4,573			(13	)		$	13,982		$	13,699		2

NONINTEREST EXPENSE

	Quarter ended Sept. 30,				%				Nine months ended Sept. 30,				%
(in millions)	2008		2007		Change				2008		2007		Change
Salaries	$	2,078	$	1,933		8		%	$	6,092	$	5,707		7		%
Incentive compensation		555		802		(31	)			2,005		2,444		(18	)
Employee benefits		486		518		(6	)			1,666		1,764		(6	)
Equipment		302		295		2				955		924		3
Net occupancy		402		398		1				1,201		1,132		6
Operating leases		90		136		(34	)			308		437		(30	)
Outside professional services		206		222		(7	)			589		649		(9	)
Outside data processing		122		123		(1	)			353		355		(1	)
Travel and entertainment		113		113		--				330		340		(3	)
Contract services		88		103		(15	)			300		334		(10	)
Operating losses		63		225		(72	)			46		369		(88	)
Insurance		144		81		78				511		357		43
Advertising and promotion		96		108		(11	)			285		312		(9	)
Postage		83		88		(6	)			256		260		(2	)
Telecommunications		78		79		(1	)			238		241		(1	)
Stationery and supplies		53		54		(2	)			159		159		--
Security		45		42		7				134		129		4
Core deposit intangibles		32		28		14				94		81		16
All other		481		323		49				1,317		930		42
Total	$	5,517	$	5,671		(3	)		$	16,839	$	16,924		(1	)

NM - Not meaningful

- 26 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2008			2008			2008			2007			2007
Service charges on deposit accounts	$	839		$	800		$	748		$	788		$	837
Trust and investment fees:
Trust, investment and IRA fees		549			566			559			585			573
Commissions and all other fees		189			196			204			217			204
Total trust and investment fees		738			762			763			802			777
Card fees		601			588			558			588			561
Other fees:
Cash network fees		48			47			48			47			51
Charges and fees on loans		266			251			248			274			246
All other fees		238			213			203			256			269
Total other fees		552			511			499			577			566
Mortgage banking:
Servicing income, net		525			221			273			543			797
Net gains (losses) on mortgage loan origination/sales activities		276			876			267			220			(61	)
All other		91			100			91			68			87
Total mortgage banking		892			1,197			631			831			823
Operating leases		102			120			143			153			171
Insurance		439			550			504			370			329
Net gains (losses) from trading activities		65			516			103			62			(43	)
Net gains (losses) on debt securities available for sale		84			(91	)		323			60			160
Net gains (losses) from equity investments		(507	)		46			313			222			173
All other		193			182			218			264			219
Total	$	3,998		$	5,181		$	4,803		$	4,717		$	4,573

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2008			2008			2008			2007			2007
Salaries	$	2,078		$	2,030		$	1,984		$	2,055		$	1,933
Incentive compensation		555			806			644			840			802
Employee benefits		486			593			587			558			518
Equipment		302			305			348			370			295
Net occupancy		402			400			399			413			398
Operating leases		90			102			116			124			136
Outside professional services		206			212			171			250			222
Outside data processing		122			122			109			127			123
Travel and entertainment		113			112			105			134			113
Contract services		88			104			108			114			103
Operating losses (reduction in losses)		63			56			(73	)		68			225
Insurance		144			206			161			59			81
Advertising and promotion		96			104			85			100			108
Postage		83			84			89			85			88
Telecommunications		78			82			78			80			79
Stationery and supplies		53			54			52			61			54
Security		45			45			44			47			42
Core deposit intangibles		32			31			31			32			28
All other		481			412			424			383			323
Total	$	5,517		$	5,860		$	5,462		$	5,900		$	5,671

- 27 -

Wells Fargo & Company and Subsidiaries

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

	Quarter ended Sept. 30,
	2008								2007
							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	$	3,463			2.09	%	$	18	$	4,219			5.01	%	$	53
Trading assets		4,838			3.72			46		4,043			3.69			37
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,141			3.99			11		871			4.27			10
Securities of U.S. states and political subdivisions		7,211			6.65			124		5,021			7.31			90
Mortgage-backed securities:
Federal agencies		50,528			5.83			731		52,681			6.03			794
Private collateralized mortgage obligations		21,358			5.82			346		4,026			6.22			62
Total mortgage-backed securities		71,886			5.83			1,077		56,707			6.05			856
Other debt securities (4)		12,622			7.17			248		5,822			7.67			114
Total debt securities available for sale (4)		92,860			6.06			1,460		68,421			6.26			1,070
Mortgages held for sale (5)		24,990			6.31			394		35,552			6.59			586
Loans held for sale (5)		677			6.95			12		960			7.79			19
Loans:
Commercial and commercial real estate:
Commercial		100,688			5.92			1,496		79,713			8.24			1,655
Other real estate mortgage		43,616			5.60			615		32,641			7.42			610
Real estate construction		19,715			4.82			238		16,914			7.94			338
Lease financing		7,250			5.48			100		6,026			5.78			87
Total commercial and commercial real estate		171,269			5.69			2,449		135,294			7.90			2,690
Consumer:
Real estate 1-4 family first mortgage		76,197			6.64			1,265		63,929			7.26			1,162
Real estate 1-4 family junior lien mortgage		75,379			6.36			1,206		73,476			8.19			1,515
Credit card		19,948			12.19			609		16,261			13.68			557
Other revolving credit and installment		54,104			8.64			1,175		54,165			9.79			1,336
Total consumer		225,628			7.52			4,255		207,831			8.75			4,570
Foreign		7,306			10.28			188		7,558			11.62			221
Total loans (5)		404,203			6.79			6,892		350,683			8.48			7,481
Other		2,126			4.64			24		1,396			5.01			20
Total earning assets	$	533,157			6.57			8,846	$	465,274			7.92			9,266
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	5,483			0.87			12	$	5,160			3.20			42
Market rate and other savings		166,710			1.18			495		149,194			2.89			1,085
Savings certificates		37,192			2.57			240		41,080			4.38			454
Other time deposits		7,930			2.59			53		10,948			5.10			140
Deposits in foreign offices		49,054			1.78			219		41,326			4.77			497
Total interest-bearing deposits		266,369			1.52			1,019		247,708			3.55			2,218
Short-term borrowings		83,458			2.35			492		36,415			5.06			464
Long-term debt		103,745			3.43			892		94,686			5.33			1,267
Total interest-bearing liabilities		453,572			2.11			2,403		378,809			4.14			3,949
Portion of noninterest-bearing funding sources		79,585			--			--		86,465			--			--
Total funding sources	$	533,157			1.78			2,403	$	465,274			3.37			3,949
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.79	%	$	6,443					4.55	%	$	5,317
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	11,024							$	11,579
Goodwill		13,531								12,008
Other		56,482								52,672
Total noninterest-earning assets	$	81,037							$	76,259
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	87,095							$	88,991
Other liabilities		25,762								26,413
Stockholders’ equity		47,765								47,320
Noninterest-bearing funding sources used to fund earning assets		(79,585	)							(86,465	)
Net noninterest-bearing funding sources	$	81,037							$	76,259
TOTAL ASSETS	$	614,194							$	541,533

(1)	Our average prime rate was 5.00% and 8.18% for the quarters ended September 30, 2008 and 2007, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.91% and 5.44% 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.

- 28 -

Wells Fargo & Company and Subsidiaries

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

	Nine months ended Sept. 30,
	2008								2007
							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	$	3,734			2.59	%	$	72	$	4,972			5.09	%	$	189
Trading assets		4,960			3.57			133		4,306			4.70			151
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,055			3.88			30		821			4.29			27
Securities of U.S. states and political subdivisions		6,848			6.88			362		4,318			7.36			232
Mortgage-backed securities:
Federal agencies		42,448			5.93			1,854		39,656			6.08			1,794
Private collateralized mortgage obligations		21,589			5.92			1,010		3,945			6.32			185
Total mortgage-backed securities		64,037			5.92			2,864		43,601			6.10			1,979
Other debt securities (4)		12,351			6.78			670		5,564			7.57			316
Total debt securities available for sale (4)		84,291			6.11			3,926		54,304			6.32			2,554
Mortgages held for sale (5)		26,417			6.11			1,211		34,664			6.52			1,694
Loans held for sale (5)		686			6.66			34		873			7.78			51
Loans:
Commercial and commercial real estate:
Commercial		95,697			6.29			4,509		74,934			8.28			4,641
Other real estate mortgage		40,351			5.91			1,788		31,663			7.44			1,762
Real estate construction		19,288			5.29			763		16,404			7.97			978
Lease financing		7,055			5.63			298		5,698			5.82			249
Total commercial and commercial real estate		162,391			6.05			7,358		128,699			7.92			7,630
Consumer:
Real estate 1-4 family first mortgage		74,064			6.77			3,761		58,920			7.31			3,228
Real estate 1-4 family junior lien mortgage		75,220			6.78			3,820		70,998			8.19			4,348
Credit card		19,256			12.11			1,749		15,262			13.89			1,590
Other revolving credit and installment		54,949			8.84			3,637		53,725			9.77			3,926
Total consumer		223,489			7.74			12,967		198,905			8.79			13,092
Foreign		7,382			10.72			592		7,197			11.72			631
Total loans (5)		393,262			7.10			20,917		334,801			8.52			21,353
Other		1,995			4.55			68		1,351			5.11			54
Total earning assets	$	515,345			6.81			26,361	$	435,271			8.00			26,046
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	5,399			1.31			53	$	4,991			3.23			121
Market rate and other savings		162,792			1.45			1,765		145,135			2.83			3,070
Savings certificates		38,907			3.23			940		39,784			4.40			1,308
Other time deposits		6,163			2.87			133		8,284			5.06			313
Deposits in foreign offices		49,192			2.13			785		33,988			4.73			1,204
Total interest-bearing deposits		262,453			1.87			3,676		232,182			3.46			6,016
Short-term borrowings		67,714			2.51			1,274		23,084			5.01			865
Long-term debt		101,668			3.71			2,825		91,569			5.22			3,579
Total interest-bearing liabilities		431,835			2.40			7,775		346,835			4.03			10,460
Portion of noninterest-bearing funding sources		83,510			--			--		88,436			--			--
Total funding sources	$	515,345			2.01			7,775	$	435,271			3.21			10,460
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.80	%	$	18,586					4.79	%	$	15,586
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	11,182							$	11,698
Goodwill		13,289								11,575
Other		54,901								50,448
Total noninterest-earning assets	$	79,372							$	73,721
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	86,676							$	89,673
Other liabilities		28,268								25,726
Stockholders’ equity		47,938								46,758
Noninterest-bearing funding sources used to fund earning assets		(83,510	)							(88,436	)
Net noninterest-bearing funding sources	$	79,372							$	73,721
TOTAL ASSETS	$	594,717							$	508,992

(1)	Our average prime rate was 5.43% and 8.23% for the nine months ended September 30, 2008 and 2007, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.98% and 5.39% 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.

- 29 -

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,	2008			2007		2008			2007		2008				2007		2008		2007
Net interest income	$	4,205		$	3,303	$	1,054		$	918	$	1,122			$	1,059	$	6,381	$	5,280
Provision for credit losses		1,431			446		294			19		770				427		2,495		892
Noninterest income		2,998			3,020		728			1,239		272				314		3,998		4,573
Noninterest expense		3,447			3,713		1,393			1,230		677				728		5,517		5,671
Income (loss) before income tax expense (benefit)		2,325			2,164		95			908		(53	)			218		2,367		3,290
Income tax expense (benefit)		738			717		12			317		(20	)			83		730		1,117
Net income (loss)	$	1,587		$	1,447	$	83		$	591	$	(33	)		$	135	$	1,637	$	2,173
Average loans	$	220.5		$	197.4	$	116.2		$	87.5	$	67.5			$	65.8	$	404.2	$	350.7
Average assets (2)		380.4			348.1		156.6			115.9		71.4				71.7		614.2		541.5
Average core deposits		254.9			243.0		65.2			63.1		--				--		320.1		306.1
Nine months ended September 30,
Net interest income	$	11,977		$	9,678	$	3,106		$	2,661	$	3,336			$	3,147	$	18,419	$	15,486
Provision for credit losses		4,739			1,105		700			33		2,096				1,189		7,535		2,327
Noninterest income		9,632			8,731		3,458			4,007		892				961		13,982		13,699
Noninterest expense		10,520			10,873		4,228			3,783		2,091				2,268		16,839		16,924
Income before income tax expense		6,350			6,431		1,636			2,852		41				651		8,027		9,934
Income tax expense		2,102			1,983		521			1,007		15				248		2,638		3,238
Net income	$	4,248		$	4,448	$	1,115		$	1,845	$	26			$	403	$	5,389	$	6,696
					��
Average loans	$	217.1		$	188.2	$	108.2		$	82.4	$	68.0			$	64.2	$	393.3	$	334.8
Average assets (2)		367.7			324.9		148.4			108.3		72.8				70.0		594.7		509.0
Average core deposits		251.9			241.1		66.7			58.0		--				--		318.6		299.1

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. If the management structure and/or the allocation process changes, allocations, transfers and assignments may change. To reflect the realignment of our corporate trust business into Wholesale Banking in first quarter 2008, 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.

- 30 -

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)	2008			2008			2008			2007			2007
COMMUNITY BANKING
Net interest income	$	4,205		$	4,136		$	3,636		$	3,421		$	3,303
Provision for credit losses		1,431			1,996			1,313			2,082			446
Noninterest income		2,998			3,411			3,223			3,101			3,020
Noninterest expense		3,447			3,737			3,336			3,822			3,713
Income before income tax expense (benefit)		2,325			1,814			2,210			618			2,164
Income tax expense (benefit)		738			580			783			(40	)		717
Net income	$	1,587		$	1,234		$	1,427		$	658		$	1,447
Average loans	$	220.5		$	215.9		$	214.9		$	210.9		$	197.4
Average assets		380.4			365.9			356.7			346.8			348.1
Average core deposits		254.9			252.6			248.4			245.3			243.0
WHOLESALE BANKING
Net interest income	$	1,054		$	1,020		$	1,032		$	987		$	918
Provision for credit losses		294			245			161			36			19
Noninterest income		728			1,480			1,250			1,293			1,239
Noninterest expense		1,393			1,420			1,415			1,294			1,230
Income before income tax expense		95			835			706			950			908
Income tax expense		12			278			231			325			317
Net income	$	83		$	557		$	475		$	625		$	591
Average loans	$	116.2		$	107.6		$	100.6		$	95.1		$	87.5
Average assets		156.6			149.9			138.5			128.3			115.9
Average core deposits		65.2			65.8			68.9			69.5			63.1
WELLS FARGO FINANCIAL
Net interest income	$	1,122		$	1,122		$	1,092		$	1,080		$	1,059
Provision for credit losses		770			771			554			494			427
Noninterest income		272			290			330			323			314
Noninterest expense		677			703			711			784			728
Income (loss) before income tax expense (benefit)		(53	)		(62	)		157			125			218
Income tax expense (benefit)		(20	)		(24	)		60			47			83
Net income (loss)	$	(33	)	$	(38	)	$	97		$	78		$	135
Average loans	$	67.5		$	68.0		$	68.4		$	68.4		$	65.8
Average assets		71.4			73.1			74.0			74.7			71.7
CONSOLIDATED COMPANY
Net interest income	$	6,381		$	6,278		$	5,760		$	5,488		$	5,280
Provision for credit losses		2,495			3,012			2,028			2,612			892
Noninterest income		3,998			5,181			4,803			4,717			4,573
Noninterest expense		5,517			5,860			5,462			5,900			5,671
Income before income tax expense		2,367			2,587			3,073			1,693			3,290
Income tax expense		730			834			1,074			332			1,117
Net income	$	1,637		$	1,753		$	1,999		$	1,361		$	2,173
Average loans	$	404.2		$	391.5		$	383.9		$	374.4		$	350.7
Average assets (2)		614.2			594.7			575.0			555.6			541.5
Average core deposits		320.1			318.4			317.3			314.8			306.1

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. If the management structure and/or the allocation process changes, allocations, transfers and assignments may change. To reflect the realignment of our corporate trust business into Wholesale Banking in first quarter 2008, 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.

- 31 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2008			2008			2008			2007			2007
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	19,333		$	14,956		$	16,763		$	18,223		$	18,733
Purchases		57			82			52			314			188
Servicing from securitizations or asset transfers		851			994			797			872			951
Sales		--			(177	)		(92	)		--			(292	)
Net additions		908			899			757			1,186			847
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		(546	)		4,132			(1,798	)		(1,935	)		(638	)
Other changes in fair value (2)		(511	)		(654	)		(766	)		(711	)		(719	)
Total changes in fair value		(1,057	)		3,478			(2,564	)		(2,646	)		(1,357	)
Fair value, end of quarter	$	19,184		$	19,333		$	14,956		$	16,763		$	18,223

(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)	2008			2008			2008			2007			2007
Amortized MSRs:
Balance, beginning of quarter	$	442		$	455		$	466		$	460		$	418
Purchases		2			2			3			19			46
Servicing from securitizations or asset transfers		8			4			5			7			12
Amortization		(19	)		(19	)		(19	)		(20	)		(16	)
Balance, end of quarter (1)	$	433		$	442		$	455		$	466		$	460
Fair value of amortized MSRs:
Beginning of quarter	$	595		$	601		$	573		$	602		$	561
End of quarter		622			595			601			573			602

(1) There was no valuation allowance recorded for the periods presented.

- 32 -

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)	2008			2008			2008			2007			2007
Servicing income, net:
Servicing fees (1)	$	980		$	959		$	964		$	994		$	970
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)		(546	)		4,132			(1,798	)		(1,935	)		(638	)
Other changes in fair value (3)		(511	)		(654	)		(766	)		(711	)		(719	)
Total changes in fair value of residential MSRs		(1,057	)		3,478			(2,564	)		(2,646	)		(1,357	)
Amortization		(19	)		(19	)		(19	)		(20	)		(16	)
Net derivative gains (losses) from economic hedges (4)		621			(4,197	)		1,892			2,215			1,200
Total servicing income, net	$	525		$	221		$	273		$	543		$	797
Market-related valuation changes to MSRs, net of hedge results (2) + (4)	$	75		$	(65	)	$	94		$	280		$	562

(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)	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)	2008				2008				2008				2007				2007
Managed servicing portfolio:
Loans serviced for others (1)	$	1,464			$	1,446			$	1,431			$	1,430			$	1,380
Owned loans serviced (2)		97				100				103				98				97
Total owned servicing		1,561				1,546				1,534				1,528				1,477
Sub-servicing		19				20				21				23				22
Total managed servicing portfolio	$	1,580			$	1,566			$	1,555			$	1,551			$	1,499
Ratio of MSRs to related loans serviced for others		1.34		%		1.37		%		1.08		%		1.20		%		1.35		%
Weighted-average note rate (owned servicing only)		5.98		%		6.00		%		6.00		%		6.01		%		5.98		%

(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.

- 33 -

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)	2008				2008				2008				2007				2007
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	83			$	100			$	132			$	91			$	95
Refinances as a percentage of applications		39		%		44		%		62		%		52		%		40	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	41			$	47			$	61			$	43			$	45

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in billions)	2008			2008			2008			2007			2007
Residential Real Estate Originations:(1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	23		$	31		$	34		$	28		$	29
Correspondent/Wholesale		25			27			27			22			29
Home equity loans and lines		2			3			3			4			7
Wells Fargo Financial		1			2			2			2			3
Total	$	51		$	63		$	66		$	56		$	68
Year-to-date	$	180		$	129		$	66		$	272		$	216

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

- 34 -

Wells Fargo & Company and Subsidiaries
SELECTED NATIONAL HOME EQUITY GROUP PORTFOLIO DATA (1)

							% of loans
							two payments								Annualized loss rate
	Outstanding balances						or more past due								Quarter ended
	Sept. 30		,	June 30		,	Sept. 30		,		June 30		,		Sept. 30		,		June 30		,
(in millions)	2008			2008			2008				2008				2008				2008
Liquidating portfolio
California	$	4,146		$	4,310			5.18		%		4.85		%		11.88		%		4.64		%
Florida		534			561			6.74				6.80				14.57				6.39
Arizona		255			266			5.02				4.08				10.45				5.38
Texas		199			208			0.96				1.11				1.64				1.02
Minnesota		130			135			3.29				3.15				6.25				3.24
Other		5,390			5,589			2.68				2.40				3.72				2.27
Total		10,654			11,069			3.89				3.60				7.59				3.46
Core portfolio
California		27,640			27,114			2.50				2.32				3.61				1.92
Florida		2,536			2,572			5.20				4.42				6.28				3.84
Arizona		3,814			3,789			2.52				2.29				3.21				1.62
Texas		2,735			2,767			1.19				1.05				0.41				0.34
Minnesota		4,465			4,499			1.21				1.17				1.24				0.81
Other		32,105			32,016			1.55				1.43				1.35				0.83
Total		73,295			72,757			2.05				1.88				2.43				1.36
Combined totals	$	83,949		$	83,826			2.29				2.11				3.09				1.65

(1) Reflects the impact of the previously disclosed change in the Home Equity charge-off policy from 120 days to no more than 180 days, effective April 1, 2008.