Wells Fargo & Company (WFC) 8-K Strong momentum across diversified businesses

Exhibit 99.1

Media		Investors
Janis Smith	Julia Tunis Bernard	Bob Strickland	Jim Rowe
415-396-7711	415-222-3858	415-396-0523	415-396-8216

Wednesday, April 22, 2009
WELLS FARGO EARNS RECORD $3.05 BILLION, $0.56 EPS

Strong momentum across diversified businesses

• Record profits reflected business momentum across the newly combined Wells Fargo-Wachovia

• Record Wells Fargo net income of $3.05 billion

• Record net income applicable to common stock of $2.38 billion

• Earnings per common share of $0.56, after merger-related and restructuring expense of $206 million ($0.03 per common share) and $1.3 billion credit reserve build ($0.19 per common share)

• Preferred dividends of $661 million included $372 million paid to U.S. taxpayers on the U.S. Treasury’s Capital Purchase Program investment

• Record pre-tax pre-provision profit of $9.2 billion

• Revenue of $21.0 billion reflected growth in both net interest income and fee income resulting from diversified business model

• Record legacy Wells Fargo revenue of $12.3 billion, up 16 percent from prior year

• Best mortgage origination quarter since 2003

• Net interest margin of 4.16 percent, highest among large bank peers

• Total core deposits of $756.2 billion at March 31, 2009, up 6 percent (annualized) from $745.4 billion at December 31, 2008, despite maturity of $34 billion of higher-rate Wachovia certificates of deposit (CDs)

• Consumer checking and savings deposits up 31 percent (annualized) from December 31, 2008

• Significant credit extended to U.S. taxpayers

• $175 billion in loan commitments, mortgage originations and mortgage securities purchases

• $190 billion in mortgage applications, including record $83 billion in applications in March

• $101 billion in mortgage originations, helping over 450,000 homeowners purchase a home or refinance

• More than $225 billion of credit extended to U.S. taxpayers since last October, nine times the amount received from U.S. taxpayers through the U.S. Treasury’s Capital Purchase Program investment

• Wachovia merger on track and profit contribution exceeded expectations in first quarter

• 41 percent of combined revenue from Wachovia

• Loan, deposit and business activity has resumed and customers have returned

• Reconfirmed $5 billion of expected annual merger-related savings, which will begin emerging in second quarter and are expected to be fully realized when the integration is completed

• Purchase accounting adjustments overall remain in line with December 31, 2008, marks

• Strengthened capital position

• Tangible common equity (TCE) of $41.1 billion at quarter end, an increase of $4.5 billion to TCE during the quarter (see page 24)

• TCE ratio of 3.28 percent, up from 2.86 percent at December 31, 2008 (see page 24)

• TCE of 3.83 percent of estimated risk-weighted assets (see page 24)

• Tier 1 capital of $88.9 billion, Tier 1 capital ratio of 8.28 percent, up from 7.84 percent at December 31, 2008

• The $40 billion of SOP 03-3 nonaccretable difference (credit write-downs) from the Wachovia acquisition is the equivalent of approximately 190 basis points of additional TCE

• Balance sheet well-positioned for economic environment

• Allowance for credit losses of $22.8 billion; at March 31, 2009, allowance adequate to cover expected consumer losses for at least the next 12 months and to provide approximately 24 months of anticipated commercial loss coverage

• Allowance for credit losses covers 2.7 percent of total loans, 2.9 percent of non-SOP 03-3 loans, and 2.2 times nonperforming loans

• Reduced risk in balance sheet and future earnings stream through write-downs already taken at December 31, 2008, on Wachovia’s higher-risk loan and securities portfolios; combined nonperforming loans were 1.25 percent of total loans at March 31, 2009, lowest ratio among large bank peers

• Securities portfolio written down by $516 million of other-than-temporary impairment

• Reduced the ratio of capitalized mortgage servicing rights (MSRs) to owned servicing to 74 basis points; lowest ratio since 2003

• Higher-risk loan portfolios reduced by $4.5 billion (indirect home equity, Pick-a-Pay and indirect auto at legacy Wells Fargo) and Trading Assets reduced by $8.4 billion

-2-

SAN FRANCISCO — Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $0.56 for first quarter 2009. Wells Fargo net income was a record $3.05 billion. “The best way to generate capital is to earn it,” said President and CEO John Stumpf. “This has long been the hallmark of our company and we’re now seeing the initial signs of the earnings and capital-generating power of the combined Wells Fargo-Wachovia in our first quarter together, serving one of every three U.S. households. We’re also seeing the benefits of our actions to reduce the risk in the Wachovia portfolio at the close of the merger through write-downs and credit reserve builds. Our talented team has built solid momentum for 2009. We are open for business and we’re gaining wallet share and market share, as we’ve always done in economically challenging times, because we make fewer mistakes than our competitors in the so-called ‘good times’ and have fewer problems to fix. The last six months we’ve extended more than $225 billion in credit to U.S. taxpayers, nine times the amount U.S. taxpayers invested in our company through the U.S. Treasury. We now service one of every six mortgages in the U.S., up from one in eight last year. This quarter, Wells Fargo helped almost a half million U.S. homeowners buy a home or lower their monthly payments through refinancing — an 84 percent increase in homeowners we helped compared with the previous quarter. We also delivered 158,000 solutions to homeowners to help them remain in their homes. The integration of Wachovia into Wells Fargo is on track and we expect to begin, as scheduled, the first phase of state-by-state banking conversions later this year.”

Financial Performance

“First quarter results, including a record pre-tax pre-provision profit of $9.2 billion, were largely driven by growth in many of our diversified businesses and the new contribution to growth now coming from Wachovia. Results also reflected lower net charge-offs partly because Wachovia’s higher-risk loan portfolios already were written down at December 31, 2008, leaving the remainder of Wachovia’s loan portfolios with naturally lower loss content,” said Chief Financial Officer Howard Atkins. “Our net interest margin of 4.16 percent was the highest among our large bank peers. We again had above-peer growth in deposits. Average consumer checking accounts rose a net 6.8 percent at legacy Wells Fargo year over year. Checking and savings deposits were up 31 percent on an annualized linked-quarter basis. Actions we took over the past two years to shrink or exit certain indirect lending businesses and more recently to write down higher-risk loan and securities portfolios have significantly reduced asset risk and should continue to help moderate credit losses if the economy continues to deteriorate.”

Revenue

Revenue of $21.0 billion included another quarter of record, double-digit revenue growth at legacy Wells Fargo, up 16 percent year over year, as well as a strong contribution from Wachovia, which generated 41 percent of the Company’s combined revenue. “This quarter’s revenue growth reflected the traditional revenue-generating capacity of Wells Fargo’s diversified business model, which has produced revenue growth in all economic environments,” said Atkins. “As we’ve said before, money never declines. It just moves due to economic cycles and our customers’ life cycles. Our diversified portfolio of businesses and

-3-

cross-selling prowess allow us to satisfy our customers’ financial needs throughout these cycles. Wells Fargo has had double-digit revenue growth in eight of the past 12 quarters. As demonstrated this quarter, the Wachovia merger brings even greater scope and diversification to our revenue growth by applying the Wells Fargo revenue engine to almost twice as many customers, extending our Community Banking network across the United States, while expanding our capabilities in businesses such as retail brokerage, wealth management, asset management and customer-centric investment banking for corporate and commercial relationships.”

Revenue

	Quarter ended March 31, 2009
	Legacy
(in millions)	Wells Fargo (1)			Wachovia		Consolidated
Net interest income	$	6,823		$	4,553	$	11,376
Noninterest income
Service charges on deposit accounts		767			627		1,394
Trust and investment fees		612			1,603		2,215
Card fees		585			268		853
Other fees		572			329		901
Mortgage banking		2,442			62		2,504
Insurance		497			84		581
Net gains from trading activities		190			597		787
Net gains (losses) on debt securities available for sale		(170	)		51		(119	)
Net gains (losses) from equity investments		(223	)		66		(157	)
Other		205			477		682
Total noninterest income		5,477			4,164		9,641
Total revenue	$	12,300		$	8,717	$	21,017

(1) Includes Wells Fargo parent company funding and investing activities.

Net Interest Income

Net interest income of $11.4 billion reflected a strong combined net interest margin on average earning assets of $1.1 trillion. “At 4.16 percent, the net interest margin of the combined Company remained the best among our large bank peers, in part due to continued growth in core deposits, deposit pricing discipline and an increase in the mortgage warehouse due to higher originations,” said Atkins. Legacy Wells Fargo net interest income of $6.8 billion rose $1.1 billion, or 18 percent, from a year ago largely reflecting growth in loans and other earning assets.

Loans

Total loans were $843.6 billion at March 31, 2009, compared with $864.8 billion at December 31, 2008. “Total loans included $119.4 billion of consumer loans at quarter end, and $123.8 billion at year end, in portfolios that the Company exited or will continue to run-off, such as indirect auto and indirect home equity at legacy Wells Fargo, and the Wachovia Pick-a-Pay portfolio,” said Atkins. Apart from these liquidating portfolios, total loans were down $16.8 billion, largely the result of seasonality, reduced consumer spending, attrition in the mortgage and home equity portfolios as customers take advantage of

-4-

low first mortgage rates, movement into the commercial paper and bond markets, and efforts by some commercial borrowers to de-leverage their businesses. However, the attrition in mortgages held for investment was more than offset by an increase in our mortgage loans held for sale resulting from our strong originations this quarter.

Deposits

Total core deposits were $756.2 billion at March 31, 2009, up $10.8 billion from December 31, 2008. $33.6 billion of high-rate CDs at legacy Wachovia matured in the quarter, including $13.2 billion from CD-only households. “Higher-rate CDs are rolling off and we are successfully retaining many of these deposits at today’s lower rates,” said Atkins. The combination of noninterest-bearing and interest-bearing transaction and savings deposits increased 31 percent (annualized) to $570.7 billion at March 31, 2009, from $529.9 billion at December 31, 2008. Mortgage escrow deposits were $26.0 billion at March 31, 2009, compared with $16.5 billion at year end. Average consumer checking accounts at legacy Wells Fargo grew a net 6.8 percent from first quarter 2008. “Deposit performance continued to benefit from deeper market penetration, flight to quality and mortgage escrow activity,” said Atkins.

Noninterest Income

Noninterest income reached $9.6 billion, driven by continued success in satisfying customers’ financial needs and the combined Company’s expanded breadth of products and services. Noninterest income included:

• Mortgage banking fees of $2.5 billion:

• $1.6 billion in revenue from mortgage loan originations/sales activities on $101 billion in new originations, including a reduction to revenue of $138 million to increase the mortgage repurchase reserve and net write-down of the mortgage warehouse for spread and other liquidity-related valuation adjustments

• Unclosed application pipeline of $100 billion at quarter end, up 41 percent from prior quarter, indicates solid origination momentum coming into the second quarter

• $875 million MSRs mark to market, net of hedge results, reflecting a $2.8 billion reduction in the fair value of the MSRs offset by a $3.7 billion hedge gain, with the net difference largely due to hedge carry income due to low short-term interest rates, which are likely to continue

• MSRs as a percent of loans serviced for others declined to 0.74 percent, the lowest level since the last big refinance wave in mid-2003

• Trust and investment fees of $2.2 billion reflected solid results in retail brokerage commissions, managed account fees and asset management fees

• Approximately 11 percent of the Company’s total revenue in the quarter was from trust and investment fees, compared with 5 percent for legacy Wells Fargo, an example of how the Wachovia merger has further diversified Wells Fargo’s revenue sources in non-capital intensive businesses

-5-

• Service charges on deposit accounts of $1.4 billion reflected continued growth in checking accounts and the effect of higher average checking account balances

• Card and other fees totaling $1.8 billion included the effects of seasonally lower purchase volume

• Trading revenue of $787 million; approximately two-thirds from customer business, including revenue earned on sales of foreign exchange and interest rate products and services

• Trading results included only $18 million of gain from the application of FSP FAS 157-4

• $516 million write-down through earnings for other-than-temporary impairment on debt and equity securities, with an additional $334 million pre-tax of non-credit-related impairment on debt securities charged directly to equity through other comprehensive income from the application of FSP FAS 115-2 and FAS 124-2

The net unrealized loss on securities available for sale declined to $4.7 billion at March 31, 2009, from $9.9 billion at December 31, 2008. Approximately $850 million of the improvement was due to declining interest rates and narrower credit spreads. The remainder was due to the early adoption of FAS FSP 157-4, which clarified the use of trading prices in determining fair value for distressed securities in illiquid markets, thus moderating the need to use excessively distressed prices in valuing these securities in illiquid markets as we had done in prior periods.

Noninterest Expense

Noninterest expense was $11.8 billion reflecting the expanded geographic platform and capabilities in businesses such as retail brokerage, asset management and investment banking, which, like mortgage banking, typically include higher revenue-based incentive expense than the more traditional banking businesses. FDIC and other deposit assessments totaled $338 million compared with $8 million in first quarter 2008 for legacy Wells Fargo. Noninterest expense included $122 million of additional insurance reserve at the Company’s captive mortgage reinsurance operation and $206 million of merger-related costs. “We still expect to generate $5 billion of annual merger-related expense savings, which will begin to emerge in the second quarter and are expected to be fully realized upon completion of the integration,” said Atkins. “After refining our initial models, we now expect total integration expense to be less than $7.9 billion and to be spread over the integration period rather than all by year-end 2009. We also expect recently announced efficiency initiatives to lower expenses over the remainder of 2009.” The efficiency ratio was 56 percent.

-6-

Credit Quality

SOP 03-3 Purchase Accounting Update¹

Wells Fargo’s reported first quarter 2009 credit quality metrics were affected by the Wachovia merger and particularly by the purchase accounting adjustments recorded when the merger was completed on December 31, 2008. “At that time, we evaluated Wachovia’s higher-risk loan portfolios to identify loans with evidence of credit deterioration and provide an estimate of loss potential,” said Chief Credit Officer Mike Loughlin. “These loss estimates were then used to assess the value of the loan portfolio as part of the purchase accounting process and certain loans were written down for the expected life-of-loan losses inherent in the portfolios. As expected, these estimates were updated during the first quarter to reflect additional available data relating to the Wachovia portfolio as of year end.” A total of $40 billion of credit write-downs have already been taken through purchase accounting adjustments. We have now evaluated Wachovia’s high-risk loan portfolios multiple times since the merger was announced and loss estimates remain within our initial expectations. As a result of having already written down Wachovia’s higher-risk portfolios for their expected losses, the remaining portfolio will have lower

loss rates because of its reduced loss content. As a result, Wachovia’s total net charge-offs in first quarter were only $371 million. While the remaining Wachovia portfolios have significantly lower probability of default than the portfolio that has already been written down, losses in the remaining lower-risk portfolios are likely to grow as the defaults in these lower-risk portfolios actually occur. Since the allowance covers all consumer losses for the next 12 months as well as any commercial losses for at least 24 months, the potential losses in Wachovia’s lower-risk portfolio, as well as any increase for the legacy Wells Fargo loan portfolio, are reflected in the $23 billion allowance for credit losses, including the $1.3 billion credit reserve build this quarter.

“Purchase accounting also significantly reduced Wachovia’s nonaccrual loans at year end since we believe the remaining balance of these loans after write-down is fully collectible. As a result, despite the fact that the remaining Wachovia portfolio has relatively lower risk, even modest increases in new nonaccrual loans will appear as higher percentage increases from this low base until the remaining portfolios season.”

¹ See explanation on page 33 of the accounting for credit-impaired loans acquired from Wachovia accounted for under SOP 03-3, and the impact on selected financial ratios.

-7-

Net Loan Charge-Offs

																Quarter ended
	Quarter ended March 31, 2009															December 31, 2008
	Legacy Wells Fargo					Wachovia					Consolidated					Legacy Wells Fargo
			As a					As a					As a					As a
			% of					% of					% of					% of
	Net loan		average			Net loan		average			Net loan		average			Net loan		average
($ in millions)	charge-offs		loans			charge-offs		loans			charge-offs		loans			charge-offs		loans
Commercial and commercial real estate:
Commercial	$	530		2.01	%	$	26		0.12	%	$	556		1.15	%	$	732		2.71	%
Other real estate mortgage		20		0.17			1		0.01			21		0.08			9		0.09
Real estate construction		101		2.10			2		0.04			103		1.21			84		1.67
Lease financing		16		0.87			1		0.02			17		0.43			17		0.90
Total commercial and commercial real estate		667		1.48			30		0.07			697		0.80			842		1.86
Consumer:
Real estate 1-4 family first mortgage		310		1.56			81		0.20			391		0.65			193		0.98
Real estate 1-4 family junior lien mortgage		801		4.31			46		0.53			847		3.12			702		3.68
Credit card		534		10.36			48		8.13			582		10.13			451		8.69
Other revolving credit and installment		530		4.37			166		1.55			696		3.05			565		4.29
Total consumer		2,175		3.90			341		0.56			2,516		2.16			1,911		3.35
Foreign		45		3.13			—		—			45		0.56			51		3.14
Total	$	2,887		2.82		$	371		0.34		$	3,258		1.54		$	2,804		2.69

First quarter net charge-offs for the combined Company were $3.3 billion, or 1.54 percent of average loans, including $371 million in the Wachovia portfolio. Legacy Wells Fargo charge-offs were $2.9 billion compared with $2.8 billion in fourth quarter 2008. Commercial and commercial real estate losses remained at relatively low levels reflecting the historically disciplined underwriting standards applied by Wells Fargo and the customer-relationship focus in this portfolio. Losses in residential real estate and credit cards rose modestly in the quarter, in line with expectations, while other credit losses, principally indirect auto, declined due to seasonality and our risk reduction actions in indirect auto over the last two years.

“As long as the U.S. economy remains weak, losses on the combined portfolio will increase,” said Loughlin. “Over the last two years, we have taken and will continue to take actions to enable the Company to navigate through this down cycle. In addition to the significant write-downs taken to reduce risk in the Wachovia portfolio at close, we ceased originations in and are liquidating certain higher-risk, lower-return portfolios, such as Pick-a-Pay and legacy Wells Fargo indirect auto and liquidating broker-originated home equity portfolios. In addition, during the first quarter, we successfully incorporated Wells Fargo’s risk policies and procedures into Wachovia, which is essential to our ability to properly manage risk. We believe these risk reduction actions better position us for the expected continued credit deterioration and economic headwinds.”

-8-

Net charge-offs in the 1-4 family first mortgage portfolio totaled $391 million. These results included $310 million from legacy Wells Fargo, which increased $117 million linked quarter. “Our relatively high-quality 1-4 family first mortgage portfolio continued to reflect relatively low loss rates although, until housing prices fully stabilize, these credit results will continue to deteriorate,” said Loughlin. Credit card charge-offs increased $131 million linked quarter to $582 million, including $48 million relating to the $2.4 billion Wachovia portfolio. “We continued to see increases in delinquency and loss levels in the consumer unsecured loan portfolios as a result of higher unemployment.” Losses in the auto portfolio decreased $47 million from fourth quarter 2008 reflecting improvements from seasonality and portfolio balance reduction over the past several quarters.

Net charge-offs in the real estate 1-4 family junior lien portfolio of $847 million included $801 million in the legacy Wells Fargo portfolio, which increased $99 million from fourth quarter 2008 as residential real estate values continued to be depressed. “These results aren’t solely because of declining home values,” said Loughlin. “As more customers seek to modify their first mortgages, there may be an adverse effect on the credit performance of junior lien holders behind these modifications.” More information about the Home Equity portfolio is available on page 34.

Commercial and commercial real estate net charge-offs of $697 million included $667 million from the legacy Wells Fargo portfolio, down $175 million from $842 million in fourth quarter 2008, which included $294 million related to the customers of the Madoff investment firm. The linked-quarter trends also reflected a $100 million increase in losses in our Business Direct portfolio while other commercial losses declined and remained at relatively low levels. “Wholesale credit results continued to deteriorate,” said Loughlin. “Commercial lending requests slowed during the quarter as borrowers reduced their receivable and inventory levels to conserve cash.”

-9-

Nonaccrual Loans and Other Nonperforming Assets

	March 31, 2009															December 31, 2008
			As a %					As a %					As a %					As a %
	Legacy		of total					of total					of total					of total
($ in millions)	Wells Fargo		loans			Wachovia		loans			Consolidated		loans			Consolidated (1)		loans
Commercial and commercial real estate:
Commercial	$	1,611		1.54	%	$	85		0.10	%	$	1,696		0.88	%	$	1,253		0.62	%
Other real estate mortgage		949		1.92			375		0.68			1,324		1.26			594		0.58
Real estate construction		1,200		6.31			171		1.15			1,371		4.04			989		2.85
Lease financing		100		1.32			14		0.19			114		0.77			92		0.58
Total commercial and commercial real estate		3,860		2.13			645		0.39			4,505		1.30			2,928		0.82
Consumer:
Real estate 1-4 family first mortgage		3,420		4.22			798		0.49			4,218		1.74			2,648		1.07
Real estate 1-4 family junior lien mortgage		1,259		1.69			159		0.45			1,418		1.29			894		0.81
Other revolving credit and installment		291		0.61			9		0.02			300		0.33			273		0.29
Total consumer		4,970		2.22			966		0.40			5,936		1.27			3,815		0.80
Foreign		59		1.06			16		0.06			75		0.24			57		0.17
Total nonaccrual loans		8,889		2.17			1,627		0.38			10,516		1.25			6,800		0.79
Foreclosed assets:
GNMA loans		768					—					768					667
All other		653					641					1,294					1,526
Total foreclosed assets		1,421					641					2,062					2,193
Real estate and other nonaccrual investments		34					—					34					16
Total nonaccrual loans and other nonperforming assets	$	10,344		2.52		$	2,268		0.52		$	12,612		1.50		$	9,009		1.04

(1) Includes Wachovia commercial and commercial real estate, and consumer nonaccrual loans and foreclosed assets of $15 million, $82 million and $885 million, respectively.

Total nonperforming assets were $12.6 billion (1.50 percent of total loans) at March 31, 2009, and included $10.5 billion of nonperforming loans and $2.1 billion of foreclosed assets and repossessed real estate and vehicles. Nonperforming loans increased $3.7 billion, or 44 basis points as a percentage of loan balances, from December 31, 2008, with increases in both the commercial and retail segments. The increase included $1.5 billion relating to Wachovia, which grew from a relatively low $97 million at year end as virtually all of the associated nonaccrual loans were no longer considered nonaccrual after applying required purchase accounting. The vast majority of nonperforming loans are secured. The increases in nonperforming loans were concentrated in portfolios secured by residential real estate or with borrowers dependent on the housing industry.

“We expect nonperforming asset balances to continue to grow, reflecting an environment where retaining these assets is the most viable economic option, as well as our efforts to modify more mortgage loans to reduce foreclosures and keep customers in their homes,” said Loughlin. “We remain focused on proactively identifying problem credits, moving them to nonperforming status and recording the loss content in a timely manner. We’ve increased and will continue to increase staffing in our workout and collection organizations to ensure these troubled borrowers receive the attention and help they need.”

-10-

Loans 90 days or more past due and still accruing totaled $15.1 billion, $12.7 billion, and $6.9 billion at March 31, 2009, December 31, 2008, and March 31, 2008, respectively. For the same periods, the totals included $9.5 billion, $8.2 billion and $5.3 billion, respectively, in advances pursuant to the Company’s 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.

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

	March 31,		December 31,
(in millions)	2009		2008
Commercial and commercial real estate:
Commercial	$	417	$	218
Other real estate mortgage		355		88
Real estate construction		624		232
Total commercial and commercial real estate		1,396		538
Consumer:
Real estate 1-4 family first mortgage		1,688		1,565
Real estate 1-4 family junior lien mortgage		660		590
Credit card		738		687
Other revolving credit and installment		1,105		1,047
Total consumer		4,191		3,889
Foreign		29		34
Total loans	$	5,616	$	4,461

* The table above does not include loans acquired from Wachovia accounted for under SOP 03-3 that were contractually 90 days past due and still accruing. These loans have a related nonaccretable difference that will absorb future losses, therefore charge-offs on these loans are not expected to reduce income in future periods to the extent the original estimates maintain their accuracy.

Allowance for Credit Losses¹

(Includes Wells Fargo and, beginning December 31, 2008, Wachovia)

The allowance for credit losses, including the reserve for unfunded commitments, totaled $22.8 billion at March 31, 2009, compared with $21.7 billion at December 31, 2008. First quarter 2009 results included a credit reserve build of $1.3 billion, primarily for higher projected losses in several consumer credit portfolios, increased levels of residential real estate modifications classified as troubled debt restructurings and expected deterioration in the wholesale portfolios and commercial non-SOP 03-3 impaired loans. The allowance coverage to total loans increased to 2.71 percent, or 2.91 percent of loans excluding SOP 03-3 impaired loans, compared with 2.51 percent at December 31, 2008, and covered expected consumer losses for at least the next 12 months and provided approximately 24 months of anticipated commercial loss coverage. “We believe the allowance was adequate for expected losses inherent in the loan portfolio at March 31, 2009, including both performing and nonperforming loans,” said Loughlin.

¹ See explanation on page 33 of the accounting for credit-impaired loans acquired from Wachovia accounted for under SOP 03-3, and the impact on selected financial ratios.

-11-

Capital

Capital ratios increased during the quarter. Tier 1 capital was 8.28 percent. The TCE ratio increased to 3.28 percent of tangible assets, up from 2.86 percent at December 31, 2008. See page 24 for the TCE calculation. TCE to estimated risk-weighted assets rose to 3.83 percent at March 31, 2009.

“We have built reserves for six consecutive quarters, dating back to fourth quarter 2007 when credit deterioration became evident,” said Atkins. “These reserve builds have strengthened the balance sheet and position us for the future. We view a considerable portion of the $23 billion allowance to be essentially like capital since we won’t draw on this reserve until the credit crisis ends and loan losses decline. Current accounting policies will then require us to reduce the allowance, increasing profit and increasing capital ratios at that time.”

Business Segment Performance

Wells Fargo defines its operating segments by product type and customer segment. As a result of the combination of Wells Fargo and Wachovia, management realigned its business segments into the following three lines of business: Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement Services. The Company revised prior period segment information to reflect this realignment; however, segment information for periods prior to first quarter 2009 does not include Wachovia. Segment net income for each of the three business segments was:

	First Quarter
(in millions)	2009		2008
Community Banking	$	1,839	$	1,522
Wholesale Banking		1,180		483
Wealth, Brokerage and Retirement Services		259		93

More financial information about the business segments is on page 29.

Community Bankingoffers a complete line of diversified financial products and services for consumers and small businesses including investment, insurance and trust services in 39 states and D.C., and mortgage and home equity loans in all 50 states and D.C.

Selected Financial Information

	First Quarter
(in millions)	2009		2008
Total revenue	$	13,953	$	8,200
Provision for credit losses		4,004		1,865
Noninterest expense		7,158		3,905
Segment net income		1,839		1,522
(in billions)
Average loans		552.8		282.7
Average assets		801.3		431.8
Average core deposits		538.0		246.6

Community Banking reported net income of $1.8 billion and pre-tax pre-provision income of $6.8 billion. First quarter results reflected the benefit of the expanded geographic presence and were driven by

-12-

strength in mortgage banking and record sales in regional banking, partially offset by higher FDIC and other deposit assessments, credit reserve build and net loan charge-offs.

Regional Banking Highlights for Legacy Wells Fargo

• Record core product solutions (sales) of 6.71 million, up 17 percent from prior year on a comparable basis

• Record core sales per platform banker FTE (active, full-time equivalent) of 6.20 per day, up from 5.58 in prior year on a comparable basis

• Record retail bank household cross-sell of 5.81 products per household; 24 percent of retail bank households had 8 or more products, our long-term goal

• Sales ofWells Fargo Packages^® (a checking account and at least three other products) up 31 percent from prior year, purchased by 76 percent of new checking account customers

• Consumer checking accounts up a net 6.8 percent from prior year

• Customer loyalty scores up 6 percent and welcoming and wait time scores up 8 percent from prior year (based on customers conducting transactions with tellers)

• Added 972 platform banker FTEs from prior year through hiring and acquisitions (excluding Wachovia and Century Bancshares)

• Business Banking

• Store-based business solutions up 22 percent from prior year

• Business checking accounts up a net 2.2 percent from prior year

• Business Banking household cross-sell of 3.66 products per household

• Sales ofWells Fargo Business Services Packages(business checking account and at least three other business products) up 37 percent from prior year, purchased by a record 56 percent of new business checking account customers

Regional Banking Highlights for Wachovia

• Consumer checking accounts up a net 5.5 percent from prior year

• Record customer experience scores, maintained already very high levels

Combined Regional Banking Distribution Metrics

• Opened 14 banking stores for retail network total of 6,638

• 12,361 ATMs across our network, including 2,208Envelope-Free^SMwebATMmachines

Online Banking

• 15.5 million active online customers, including Wachovia

• 3.7 million active Bill Pay customers, including Wachovia

-13-

Home Mortgage

• Mortgage applications of $190 billion, up 64 percent from prior quarter, included record $83 billion applications in March

• Mortgage application pipeline of $100 billion, up 41 percent from prior quarter

• Home Mortgage originations of $101 billion, up 102 percent from prior quarter

• Owned residential mortgage servicing portfolio of $1.6 trillion, up 18 percent from prior year

• 93 of 100 servicing customers were current at quarter end, stable from year end

• Merger integration proceeding, with Wachovia Retail Home Mortgage consultants (HMCs) already transitioned to Wells Fargo systems and HMCs assigned to partner with each Wachovia store

Wells Fargo Financial

• Average loans of $65 billion, down 5 percent from prior year

• Debt consolidation loans of $25 billion, flat from prior year

Wholesale Bankingprovides financial solutions to businesses across the United States with annual sales generally in excess of $10 million and financial institutions globally. Products include middle market banking, corporate banking, commercial real estate, treasury management, asset-based lending, insurance brokerage, foreign exchange, correspondent banking, trade services, specialized lending, equipment finance, corporate trust, investment banking, capital markets, and asset management.

Selected Financial Information

	First Quarter
(in millions)	2009		2008
Total revenue	$	4,907	$	2,177
Provision for credit losses		545		161
Noninterest expense		2,531		1,344
Segment net income		1,180		483
(in billions)
Average loans		271.9		100.8
Average assets		400.4		140.0
Average core deposits		138.5		68.2

• Combination of Wells Fargo and Wachovia creates substantial scale and market penetration in key markets, including #1 in middle-market lending, asset based lending, agriculture lending and multifamily lending, and #2 bank-owned equipment finance company

• Combined Treasury Management services rank #2 in customer relationships with “Best in Class” products, services and customer experience

• Expanded capabilities for customers include comprehensive investment banking and capital markets capabilities and a more extensive international services and global correspondent banking network

• Merger with Wachovia on course — organization is complete, continue to move ahead with business model

Wholesale Banking reported net income of $1.2 billion and pre-tax pre-provision profit of $2.4 billion. First quarter results were driven by the performance of our diverse businesses, such as commercial

-14-

banking, corporate banking, asset-based lending, international financial services and capital markets and benefitted from an increased level of trading revenue in the quarter.

Wealth, Brokerage and Retirement Services Groupprovides a full range of financial advisory services to clients using a comprehensive planning approach to meet each client’s needs. The Wealth Management Group provides affluent and high net worth clients with a complete range of wealth management solutions including financial planning, private banking, credit, investment management and trust. Family Office Services meets the unique needs of the ultra high net worth customers. Retail brokerage’s financial advisors serve customers’ advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the U.S. The Retirement Group provides retirement services for individual investors and is a national leader in401(k) and pension record keeping.

Selected Financial Information

	First Quarter
	2009		2008
(in millions)
Total revenue	$	2,639		637
Provision for credit losses		25		2
Noninterest expense		2,219		485
Segment net income		259		93
(in billions)
Average loans		46.7		13.7
Average assets		104.0		16.7
Average core deposits		102.6		21.0

Retail Brokerage

• While equity markets declined 12 percent in the quarter, client assets declined only 5 percent, to $910 billion

• Strong recruiting of Financial Advisors (FAs) during the quarter, added 183 bringing the total to 15,879; production levels of FAs hired was 70 percent higher than FAs that left the firm

• Brokerage sweep deposits up 11 percent from year end

• WellsTrade^® net income up 7 percent over last year despite challenging market conditions

• AG Edwards merger conversion successfully completed

Wealth Management Group

• Deposits up 22 percent from year end, led by strong growth in theUnlimited NOWaccount product

• Private Banking revenue increased $257 million over last year, including 57 percent revenue growth at legacy Wells Fargo driven by strong growth in loans and deposits

Retirement Services

• $9 billion in IRA inflows

• Leading retirement record keeper with more than 3.7 million plan participants

Wealth, Brokerage and Retirement Services reported net income of $259 million and pre-tax pre-provision profit of $420 million. First quarter earnings were driven by strong deposit growth in both the brokerage and wealth businesses. Asset-based revenues and brokerage commission income were reduced due to the weak market environment.

-15-

Recorded Message

A recorded message reviewing Wells Fargo’s results is available at 5:30 a.m. Pacific Time through April 25, 2009. Dial 866-416-0522 (domestic) or 706-902-3479 (international). No password is required. The call is also available online atwellsfargo.com/invest_relations/earnings.

Cautionary Statement About Forward-Looking Information

In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that this news release contains forward-looking statements about our future financial performance and business. We make forward-looking statements when we use words such as “believe,” “expect,” “anticipate,” “estimate,” “should,” “may,” “can,” “will” or similar expressions. Forward-looking statements in this news release include: we expect $5 billion of annual merger-related savings, which will begin emerging in second quarter 2009 and will be fully realized when the integration is completed; we expect recently announced efficiency initiatives to lower expenses over the remainder of 2009; we expect total integration expense to be less than $7.9 billion and to be spread over the integration period rather than all by year-end 2009; we expect the first phase of state-by-state banking conversions to begin later this year; we expect actions taken in the past two years to shrink or exit certain indirect lending businesses and more recently to write down higher-risk loan and securities portfolios should continue to help moderate credit losses; as a result of having written down Wachovia’s higher-risk portfolios for their expected losses, we expect the remaining portfolio will have lower loss rates because of its reduced loss content; we expect losses in the remaining lower risk Wachovia portfolios are likely to grow as the defaults inherent in the portfolios actually occur; we believe the remaining balance of the Wachovia nonaccrual loans after year-end purchase accounting adjustments is fully collectible; as long as the U.S. economy remains weak, losses on the combined portfolio will increase; until housing prices fully stabilize, credit results in 1-4 family first mortgage portfolio will continue to deteriorate; we expect nonperforming balances to continue to grow; charge-offs on Wachovia loans accounted for under SOP 03-3 are not expected to reduce income in future periods to the extent the original estimates maintain their accuracy; we believe certain risk reduction actions better position us for the expected continued credit deterioration and economic headwinds; we expect deterioration in the wholesale credit portfolios; and we believe the allowance for credit losses was adequate for expected losses inherent in the loan portfolio at March 31, 2009.

Do not unduly rely on forward-looking statements as actual results could differ significantly from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. Several factors could cause actual results to differ significantly from expectations including: current economic and market conditions; our capital requirements and ability to raise capital on favorable terms; the terms of capital investments or other financial assistance provided by the U.S. government; legislative proposals to allow mortgage cram-downs in bankruptcy or force other loan modifications; our ability to successfully integrate the Wachovia merger and realize the expected cost savings and other benefits; our ability to realize the recently announced efficiency initiatives to lower expenses when and in the amount expected; the adequacy of our allowance for credit losses; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect of changes in interest rates on our net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; hedging gains or losses; disruptions in the capital markets and reduced investor demand for mortgages loans; our ability to sell more products to our customers; the effect of the economic recession on the demand for our products and services; the effect of the fall in stock market prices on fee income from our brokerage, asset and wealth management businesses; our election to provide support to our mutual funds for structured credit products they may hold; changes in the value of our venture capital investments; changes in our accounting policies or in accounting standards or in how accounting standards are to be applied; mergers and acquisitions; federal and state regulations; reputational damage from negative publicity, fines, penalties and other negative consequences from regulatory violations, the loss of checking and saving account deposits to other investments such as the stock market, and fiscal and monetary policies of the Federal Reserve Board. There is no assurance that our allowance for credit losses will be adequate to cover future credit losses, especially if credit markets and unemployment do not stabilize. Increases in loan charge-offs or in the allowance for credit losses and related provision expense could materially adversely affect our financial results and condition. For more information about factors that could cause actual

-16-

results to differ from our expectations, refer to our Annual Report on Form 10-K for the year ended December 31, 2008, including the discussion under “Risk Factors,” as filed with the Securities and Exchange Commission and available on the SEC’s website at www.sec.gov. Any factor described above or in the 2008 Form 10-K could, by itself or together with one or more other factors, adversely affect our financial results and condition.

About Wells Fargo

Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,400 stores, over 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.

# # #

-17-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA (1) (2)

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
($ in millions, except per share amounts)	2009			2008			2008			2008			2008
For the Quarter
Wells Fargo net income (loss)	$	3,045		$	(2,734	)	$	1,637		$	1,753		$	1,999
Wells Fargo net income (loss) applicable to common stock		2,384			(3,020	)		1,637			1,753			1,999
Diluted earnings (loss) per common share		0.56			(0.84	)		0.49			0.53			0.60
Profitability ratios (annualized):
Wells Fargo net income (loss) to average assets (ROA)		0.96	%		(1.72	)%		1.06	%		1.19	%		1.40	%
Net income (loss) to average assets		0.97			(1.72	)		1.07			1.20			1.41
Wells Fargo net income (loss) applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		14.49			(22.32	)		13.63			14.58			16.86
Net income (loss) to average total equity		11.97			(15.53	)		13.66			14.62			16.93
Efficiency ratio (3)		56.2			61.3			53.0			51.0			51.5
Total revenue	$	21,017		$	9,477		$	10,377		$	11,460		$	10,563
Pre-tax pre-provision profit (4)		9,199			3,667			4,876			5,615			5,121
Dividends declared per common share		0.34			0.34			0.34			0.31			0.31
Average common shares outstanding		4,247.4			3,582.4			3,316.4			3,309.8			3,302.4
Diluted average common shares outstanding		4,249.3			3,593.6			3,331.0			3,321.4			3,317.9
Average loans	$	855,591		$	413,940		$	404,203		$	391,545		$	383,919
Average assets		1,289,716			633,223			614,194			594,749			574,994
Average core deposits (5)		753,928			344,957			320,074			318,377			317,278
Average retail core deposits (6)		590,502			243,464			234,140			230,365			228,448
Net interest margin		4.16	%		4.90	%		4.79	%		4.92	%		4.69	%
At Quarter End
Securities available for sale	$	178,468		$	151,569		$	86,882		$	91,331		$	81,787
Loans		843,579			864,830			411,049			399,237			386,333
Allowance for loan losses		22,281			21,013			7,865			7,375			5,803
Goodwill		23,825			22,627			13,520			13,191			13,148
Assets		1,285,891			1,309,639			622,361			609,074			595,221
Core deposits (5)		756,183			745,432			334,076			310,410			327,360
Wells Fargo stockholders’ equity		100,295			99,084			46,957			47,964			48,159
Total equity		107,057			102,316			47,259			48,265			48,439
Capital ratios:
Wells Fargo common stockholders’ equity to assets		5.40	%		5.21	%		7.54	%		7.87	%		8.09	%
Total equity to assets		8.33			7.81			7.59			7.92			8.14
Average Wells Fargo common stockholders’ equity to average assets		5.17			8.50			7.78			8.13			8.29
Average total equity to average assets		8.11			11.09			7.83			8.18			8.34
Risk-based capital (7)
Tier 1 capital		8.28			7.84			8.59			8.24			7.92
Total capital		12.27			11.83			11.51			11.23			11.01
Tier 1 leverage (7)		7.09			14.52			7.54			7.35			7.04
Book value per common share	$	16.28		$	16.15		$	14.14		$	14.48		$	14.58
Team members (active, full-time equivalent)		272,800			270,800			159,000			160,500			160,900
Common Stock Price
High	$	30.47		$	38.95		$	44.68		$	32.40		$	34.56
Low		7.80			19.89			20.46			23.46			24.38
Period end		14.24			29.48			37.53			23.75			29.10

(1)	Wells Fargo & Company (Wells Fargo) acquired Wachovia Corporation (Wachovia) on December 31, 2008. Because the acquisition was completed on December 31, 2008, Wachovia’s results are included in the income statement, average balances and related metrics beginning in 2009. Wachovia’s assets and liabilities are included in the consolidated balance sheet beginning on December 31, 2008.
(2)	On January 1, 2009, the Company adopted Statement of Financial Accounting Standards (FAS) 160,Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51, on a retrospective basis for disclosure and, accordingly, prior period information reflects the adoption. FAS 160 requires that noncontrolling interests be reported as a component of stockholders’ equity.
(3)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(4)	Total revenue less noninterest expense.
(5)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(6)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(7)	The March 31, 2009, ratios are preliminary. Because the Wachovia acquisition was completed on December 31, 2008, the Tier 1 leverage ratio at December 31, 2008, which considers period-end Tier 1 capital and quarterly average assets in the computation of the ratio, does not reflect average assets of Wachovia for the full period.

-18-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended
	Mar. 31,			Mar. 31,
(in millions, except per share amounts)	2009			2008
INTEREST INCOME
Trading assets	$	266		$	47
Securities available for sale		2,709			1,132
Mortgages held for sale		415			394
Loans held for sale		67			12
Loans		10,765			7,212
Other interest income		91			52
Total interest income		14,313			8,849
INTEREST EXPENSE
Deposits		999			1,594
Short-term borrowings		123			425
Long-term debt		1,779			1,070
Other interest expense		36			—
Total interest expense		2,937			3,089
NET INTEREST INCOME		11,376			5,760
Provision for credit losses		4,558			2,028
Net interest income after provision for credit losses		6,818			3,732
NONINTEREST INCOME
Service charges on deposit accounts		1,394			748
Trust and investment fees		2,215			763
Card fees		853			558
Other fees		901			499
Mortgage banking		2,504			631
Insurance		581			504
Net gains (losses) on debt securities available for sale (includes impairment losses of $269, consisting of $603 of total other-than-temporary impairment losses, net of $334 recognized in other comprehensive income, for the quarter ended March 31, 2009)		(119	)		323
Net gains (losses) from equity investments		(157	)		313
Other		1,469			464
Total noninterest income		9,641			4,803
NONINTEREST EXPENSE
Salaries		3,386			1,984
Commission and incentive compensation		1,824			644
Employee benefits		1,284			587
Equipment		687			348
Net occupancy		796			399
Core deposit and other intangibles		647			46
FDIC and other deposit assessments		338			8
Other		2,856			1,426
Total noninterest expense		11,818			5,442
INCOME BEFORE INCOME TAX EXPENSE		4,641			3,093
Income tax expense		1,552			1,074
NET INCOME BEFORE NONCONTROLLING INTERESTS		3,089			2,019
Less: Net income from noncontrolling interests		44			20
WELLS FARGO NET INCOME	$	3,045		$	1,999
WELLS FARGO NET INCOME APPLICABLE TO COMMON STOCK	$	2,384		$	1,999
EARNINGS PER COMMON SHARE	$	0.56		$	0.61
DILUTED EARNINGS PER COMMON SHARE	$	0.56		$	0.60
DIVIDENDS DECLARED PER COMMON SHARE	$	0.34		$	0.31
Average common shares outstanding		4,247.4			3,302.4
Diluted average common shares outstanding		4,249.3			3,317.9

-19-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions, except per share amounts)	2009			2008			2008			2008			2008
INTEREST INCOME
Trading assets	$	266		$	51		$	41		$	38		$	47
Securities available for sale		2,709			1,534			1,397			1,224			1,132
Mortgages held for sale		415			362			394			423			394
Loans held for sale		67			14			12			10			12
Loans		10,765			6,726			6,888			6,806			7,212
Other interest income		91			41			42			46			52
Total interest income		14,313			8,728			8,774			8,547			8,849
INTEREST EXPENSE
Deposits		999			845			1,019			1,063			1,594
Short-term borrowings		123			204			492			357			425
Long-term debt		1,779			955			882			849			1,070
Other interest expense		36			—			—			—			—
Total interest expense		2,937			2,004			2,393			2,269			3,089
NET INTEREST INCOME		11,376			6,724			6,381			6,278			5,760
Provision for credit losses		4,558			8,444			2,495			3,012			2,028
Net interest income after provision for credit losses		6,818			(1,720	)		3,886			3,266			3,732
NONINTEREST INCOME
Service charges on deposit accounts		1,394			803			839			800			748
Trust and investment fees		2,215			661			738			762			763
Card fees		853			589			601			588			558
Other fees		901			535			552			511			499
Mortgage banking		2,504			(195	)		892			1,197			631
Insurance		581			337			439			550			504
Net gains (losses) on debt securities available for sale		(119	)		721			84			(91	)		323
Net gains (losses) from equity investments		(157	)		(608	)		(509	)		47			313
Other		1,469			(90	)		360			818			464
Total noninterest income		9,641			2,753			3,996			5,182			4,803
NONINTEREST EXPENSE
Salaries		3,386			2,168			2,078			2,030			1,984
Commission and incentive compensation		1,824			671			555			806			644
Employee benefits		1,284			338			486			593			587
Equipment		687			402			302			305			348
Net occupancy		796			418			402			400			399
Core deposit and other intangibles		647			47			47			46			46
FDIC and other deposit assessments		338			57			37			18			8
Other		2,856			1,709			1,594			1,647			1,426
Total noninterest expense		11,818			5,810			5,501			5,845			5,442
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)		4,641			(4,777	)		2,381			2,603			3,093
Income tax expense (benefit)		1,552			(2,036	)		730			834			1,074
NET INCOME (LOSS) BEFORE NONCONTROLLING INTERESTS		3,089			(2,741	)		1,651			1,769			2,019
Less: Net income (loss) from noncontrolling interests		44			(7	)		14			16			20
WELLS FARGO NET INCOME (LOSS)	$	3,045		$	(2,734	)	$	1,637		$	1,753		$	1,999
WELLS FARGO NET INCOME (LOSS) APPLICABLE TO COMMON STOCK	$	2,384		$	(3,020	)	$	1,637		$	1,753		$	1,999
EARNINGS (LOSS) PER COMMON SHARE	$	0.56		$	(0.84	)	$	0.49		$	0.53		$	0.61
DILUTED EARNINGS (LOSS) PER COMMON SHARE	$	0.56		$	(0.84	)	$	0.49		$	0.53		$	0.60
DIVIDENDS DECLARED PER COMMON SHARE	$	0.34		$	0.34		$	0.34		$	0.31		$	0.31
Average common shares outstanding		4,247.4			3,582.4			3,316.4			3,309.8			3,302.4
Diluted average common shares outstanding		4,249.3			3,593.6			3,331.0			3,321.4			3,317.9

-20-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

	Mar. 31,			Dec. 31,			Mar. 31,
(in millions, except shares)	2009			2008			2008
ASSETS
Cash and due from banks	$	22,186		$	23,763		$	13,146
Federal funds sold, securities purchased under resale agreements and other short-term investments		18,625			49,433			4,171
Trading assets		46,497			54,884			8,893
Securities available for sale		178,468			151,569			81,787
Mortgages held for sale (includes $35,205, $18,754 and $27,927 carried at fair value)		36,807			20,088			29,708
Loans held for sale (includes $114 carried at fair value at March 31, 2009, and $398 at December 31, 2008)		8,306			6,228			813
Loans		843,579			864,830			386,333
Allowance for loan losses		(22,281	)		(21,013	)		(5,803	)
Net loans		821,298			843,817			380,530
Mortgage servicing rights:
Measured at fair value (residential MSRs)		12,391			14,714			14,956
Amortized		1,257			1,446			455
Premises and equipment, net		11,215			11,269			5,056
Goodwill		23,825			22,627			13,148
Other assets		105,016			109,801			42,558
Total assets	$	1,285,891		$	1,309,639		$	595,221
LIABILITIES
Noninterest-bearing deposits	$	166,497		$	150,837		$	90,793
Interest-bearing deposits		630,772			630,565			267,351
Total deposits		797,269			781,402			358,144
Short-term borrowings		72,084			108,074			53,983
Accrued expenses and other liabilities		58,831			50,689			31,480
Long-term debt		250,650			267,158			103,175
Total liabilities		1,178,834			1,207,323			546,782
EQUITY
Wells Fargo stockholders’ equity:
Preferred stock		31,411			31,332			837
Common stock — $1-2/3 par value, authorized 6,000,000,000 shares; issued 4,363,921,429 shares, 4,363,921,429 shares and 3,472,762,050 shares		7,273			7,273			5,788
Additional paid-in capital		32,414			36,026			8,259
Retained earnings		36,949			36,543			39,896
Cumulative other comprehensive income (loss)		(3,624	)		(6,869	)		120
Treasury stock — 102,524,177 shares, 135,290,540 shares and 170,411,704 shares		(3,593	)		(4,666	)		(5,850	)
Unearned ESOP shares		(535	)		(555	)		(891	)
Total Wells Fargo stockholders’ equity		100,295			99,084			48,159
Noncontrolling interests		6,762			3,232			280
Total equity		107,057			102,316			48,439
Total liabilities and equity	$	1,285,891		$	1,309,639		$	595,221

-21-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2009			2008			2008			2008			2008
ASSETS
Cash and due from banks	$	22,186		$	23,763		$	12,861		$	13,610		$	13,146
Federal funds sold, securities purchased under resale agreements and other short-term investments		18,625			49,433			8,093			4,088			4,171
Trading assets		46,497			54,884			9,097			9,681			8,893
Securities available for sale		178,468			151,569			86,882			91,331			81,787
Mortgages held for sale		36,807			20,088			18,739			25,234			29,708
Loans held for sale		8,306			6,228			635			680			813
Loans		843,579			864,830			411,049			399,237			386,333
Allowance for loan losses		(22,281	)		(21,013	)		(7,865	)		(7,375	)		(5,803	)
Net loans		821,298			843,817			403,184			391,862			380,530
Mortgage servicing rights:
Measured at fair value (residential MSRs)		12,391			14,714			19,184			19,333			14,956
Amortized		1,257			1,446			433			442			455
Premises and equipment, net		11,215			11,269			5,054			5,033			5,056
Goodwill		23,825			22,627			13,520			13,191			13,148
Other assets		105,016			109,801			44,679			34,589			42,558
Total assets	$	1,285,891		$	1,309,639		$	622,361		$	609,074		$	595,221
LIABILITIES
Noninterest-bearing deposits	$	166,497		$	150,837		$	89,446		$	85,062		$	90,793
Interest-bearing deposits		630,772			630,565			264,128			254,062			267,351
Total deposits		797,269			781,402			353,574			339,124			358,144
Short-term borrowings		72,084			108,074			85,187			86,139			53,983
Accrued expenses and other liabilities		58,831			50,689			28,991			31,618			31,480
Long-term debt		250,650			267,158			107,350			103,928			103,175
Total liabilities		1,178,834			1,207,323			575,102			560,809			546,782
EQUITY
Wells Fargo stockholders’ equity:
Preferred stock		31,411			31,332			625			723			837
Common stock		7,273			7,273			5,788			5,788			5,788
Additional paid-in capital		32,414			36,026			8,348			8,266			8,259
Retained earnings		36,949			36,543			40,853			40,534			39,896
Cumulative other comprehensive income (loss)		(3,624	)		(6,869	)		(2,783)			(1,060	)		120
Treasury stock		(3,593	)		(4,666	)		(5,207)			(5,516	)		(5,850	)
Unearned ESOP shares		(535	)		(555	)		(667)			(771	)		(891	)
Total Wells Fargo stockholders’ equity		100,295			99,084			46,957			47,964			48,159
Noncontrolling interests		6,762			3,232			302			301			280
Total equity		107,057			102,316			47,259			48,265			48,439
Total liabilities and equity	$	1,285,891		$	1,309,639		$	622,361		$	609,074		$	595,221

-22-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2009			2008			2008			2008			2008
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	24,074		$	9,938		$	3,463		$	3,853		$	3,888
Trading assets		22,203			5,004			4,838			4,915			5,129
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		2,899			1,165			1,141			1,050			975
Securities of U.S. states and political subdivisions		12,213			7,124			7,211			7,038			6,290
Mortgage-backed securities:
Federal agencies		76,545			51,714			50,528			40,630			36,097
Residential and commercial		38,690			18,245			21,358			22,419			20,994
Total mortgage-backed securities		115,235			69,959			71,886			63,049			57,091
Other debt securities (1)		30,080			14,217			12,622			13,600			10,825
Total debt securities available for sale (1)		160,427			92,465			92,860			84,737			75,181
Mortgages held for sale (2)		31,058			23,390			24,990			28,004			26,273
Loans held for sale (2)		7,949			1,287			677			734			647
Loans:
Commercial and commercial real estate:
Commercial		196,923			107,325			100,688			95,263			91,085
Other real estate mortgage		104,271			45,555			43,616			39,977			37,426
Real estate construction		34,493			19,943			19,715			19,213			18,932
Lease financing		15,810			7,397			7,250			7,087			6,825
Total commercial and commercial real estate		351,497			180,220			171,269			161,540			154,268
Consumer:
Real estate 1-4 family first mortgage		245,494			78,251			76,197			73,663			72,308
Real estate 1-4 family junior lien mortgage		110,128			75,838			75,379			75,018			75,263
Credit card		23,295			20,626			19,948			19,037			18,776
Other revolving credit and installment		92,820			52,638			54,104			54,842			55,910
Total consumer		471,737			227,353			225,628			222,560			222,257
Foreign		32,357			6,367			7,306			7,445			7,394
Total loans (2)		855,591			413,940			404,203			391,545			383,919
Other		6,140			1,690			2,126			2,033			1,825
Total earning assets	$	1,107,442		$	547,714		$	533,157		$	515,821		$	496,862
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	80,393		$	6,396		$	5,483		$	5,487		$	5,226
Market rate and other savings		313,445			178,301			166,710			161,760			159,865
Savings certificates		170,122			41,189			37,192			37,634			41,915
Other time deposits		25,555			8,128			7,930			5,773			4,763
Deposits in foreign offices		45,896			42,771			49,054			51,884			46,641
Total interest-bearing deposits		635,411			276,785			266,369			262,538			258,410
Short-term borrowings		76,068			60,210			83,458			66,537			52,970
Long-term debt		258,957			104,112			103,745			100,552			100,686
Other liabilities		3,778			—			—			—			—
Total interest-bearing liabilities		974,214			441,107			453,572			429,627			412,066
Portion of noninterest-bearing funding sources		133,228			106,607			79,585			86,194			84,796
Total funding sources	$	1,107,442		$	547,714		$	533,157		$	515,821		$	496,862
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	20,255		$	11,155		$	11,024		$	10,875		$	11,648
Goodwill		23,183			13,544			13,531			13,171			13,161
Other		138,836			60,810			56,482			54,882			53,323
Total noninterest-earning assets	$	182,274		$	85,509		$	81,037		$	78,928		$	78,132
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	160,308		$	91,229		$	87,095		$	88,041		$	84,886
Other liabilities		50,566			30,651			25,452			28,434			30,062
Total equity		104,628			70,236			48,075			48,647			47,980
Noninterest-bearing funding sources used to fund earning assets		(133,228	)		(106,607	)		(79,585	)		(86,194	)		(84,796	)
Net noninterest-bearing funding sources	$	182,274		$	85,509		$	81,037		$	78,928		$	78,132
TOTAL ASSETS	$	1,289,716		$	633,223		$	614,194		$	594,749		$	574,994

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

-23-

Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY (1)

	Quarter ended March 31,
(in millions)	2009			2008
Balance, beginning of period (2)	$	102,316		$	47,914
Cumulative effect from adoption of:
EITF 06-4 and 06-10 (3)		—			(20	)
FAS 158 change of measurement date (4)		—			(8	)
Net income before noncontrolling interests		3,089			2,019
Wells Fargo other comprehensive income (loss), net of tax, related to:
Translation adjustments		(18	)		(7	)
Investment securities (5):
Unrealized losses related to factors other than credit (2)		(210	)		—
All other		3,473			(783	)
Derivative instruments and hedging activities		(16	)		184
Defined benefit pension plans		69			1
Common stock issued		524			317
Common stock repurchased		(54	)		(351	)
Preferred stock discount accretion		98			—
Preferred stock released to ESOP		19			134
Common stock dividends		(1,443	)		(1,024	)
Preferred stock dividends and accretion		(661	)		—
Other, net		(129	)		63
Balance, end of period	$	107,057		$	48,439

(1)	On January 1, 2009, the Company adopted FAS 160,Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51, on a retrospective basis for disclosure and, accordingly, prior period information reflects the adoption. FAS 160 requires that noncontrolling interests be reported as a component of stockholders’ equity.
(2)	The impact on prior periods of adopting FASB Staff Position (FSP) FAS 115-2 and FAS 124-2,Recognition and Presentation of Other-Than-Temporary Impairments,was to increase the beginning balance of retained earnings and reduce the beginning balance of other comprehensive income by $85 million ($53 million after tax). The unrealized losses in Wells Fargo other comprehensive income in the first quarter of 2009 that related to factors other than credit, where the credit portion was recorded as other-than-temporary impairment in earnings, amounted to $334 million ($210 million after tax).
(3)	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 Deferred Compensation and Postretirement Benefit Aspects of Collateral Assignment Split-Dollar Life Insurance Arrangements.
(4)	FAS 158,Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans — an amendment of FASB Statements No. 87, 88, 106, and 132(R).
(5)	On March 31, 2009, we early adopted FSP FAS 157-4,Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.This FSP addresses determining fair values for securities in circumstances where the market for such securities is illiquid and transactions involve distressed sales. In such circumstances, the FSP permits use of other inputs in estimating fair value that may include pricing models. As a result of adopting FSP FAS 157-4, we recorded in this quarter a $4.4 billion reduction ($2.8 billion after tax) to our unrealized securities losses in other comprehensive income.

TANGIBLE COMMON EQUITY (1)

					Quarter ended
					Mar. 31,						Dec. 31,
(in billions)					2009						2008
Total equity (see Note (5) on the table above)					$	107.1					$	102.3
Less: Preferred equity						(30.9	)					(30.8	)
	Goodwill and intangible assets (other than MSRs)	$	(38.5	)				$	(38.1	)
	Applicable deferred taxes		5.7						5.6
Goodwill and intangible assets, net of deferred taxes						(32.8	)					(32.5	)
Noncontrolling interests						(2.3	)					(2.4	)
	Tangible common equity (A)				$	41.1					$	36.6
Total assets					$	1,285.9					$	1,309.6
Less: Goodwill and intangible assets, net of deferred taxes						(32.8	)					(32.5	)
	Tangible assets (B)				$	1,253.1					$	1,277.1
Tangible common equity ratio (A)/(B)						3.28	%					2.86	%
Total risk-weighted assets (2)(C)					$	1,074.2					$	1,101.3
Tangible common equity to total risk-weighted assets (A)/(C)						3.83	%					3.32	%

(1)

Tangible common equity, a non-GAAP financial measure, includes total equity, less preferred equity, goodwill and intangible assets (excluding MSRs), net of related deferred taxes, and the portion of noncontrolling interests accounted for under FAS 160 that does not have risk sharing attributes similar to common equity. Management reviews tangible common equity along with other measures of capital as part of its financial analyses and has included this information because of current interest on the part of market participants in tangible common equity as a measure of capital. The methodology of determining tangible common equity may differ among companies.

(2)

Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets. The Company’s March 31, 2009, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $890.8 billion and derivative and off-balance sheet risk-weighted assets of $183.4 billion.

-24-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)	2009		2008		2008		2008		2008
Commercial and commercial real estate:
Commercial	$	191,711	$	202,469	$	104,281	$	99,188	$	92,589
Other real estate mortgage		104,934		103,108		44,741		41,753		38,415
Real estate construction		33,912		34,676		19,681		19,528		18,885
Lease financing		14,792		15,829		7,271		7,160		6,885
Total commercial and commercial real estate		345,349		356,082		175,974		167,629		156,774
Consumer:
Real estate 1-4 family first mortgage		242,947		247,894		77,870		74,829		73,321
Real estate 1-4 family junior lien mortgage		109,748		110,164		75,617		75,261		74,840
Credit card		22,815		23,555		20,358		19,429		18,677
Other revolving credit and installment		91,252		93,253		54,327		54,575		55,505
Total consumer		466,762		474,866		228,172		224,094		222,343
Foreign		31,468		33,882		6,903		7,514		7,216
Total loans (net of unearned income) (1)	$	843,579	$	864,830	$	411,049	$	399,237	$	386,333

(1) Includes $58.2 billion and $58.8 billion of SOP 03-3 loans at March 31, 2009, and December 31, 2008, respectively. See table on page 33 for detail of SOP 03-3 loans.

FIVE QUARTER NONACCRUAL LOANS AND OTHER NONPERFORMING ASSETS

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2009			2008			2008			2008			2008
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	1,696		$	1,253		$	846		$	685		$	588
Other real estate mortgage		1,324			594			296			198			152
Real estate construction		1,371			989			736			563			438
Lease financing		114			92			69			59			57
Total commercial and commercial real estate		4,505			2,928			1,947			1,505			1,235
Consumer:
Real estate 1-4 family first mortgage (1)		4,218			2,648			1,975			1,638			1,398
Real estate 1-4 family junior lien mortgage		1,418			894			780			668			381
Other revolving credit and installment		300			273			232			207			196
Total consumer		5,936			3,815			2,987			2,513			1,975
Foreign		75			57			61			55			49
Total nonaccrual loans		10,516			6,800			4,995			4,073			3,259
As a percentage of total loans		1.25	%		0.79	%		1.22	%		1.02	%		0.84	%
Foreclosed assets:
GNMA loans (2)		768			667			596			535			578
All other		1,294			1,526			644			595			637
Real estate and other nonaccrual investments (3)		34			16			56			24			21
Total nonaccrual loans and other nonperforming assets	$	12,612		$	9,009		$	6,291		$	5,227		$	4,495
As a percentage of total loans		1.50	%		1.04	%		1.53	%		1.31	%		1.16	%

(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.

-25-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2009			2008			2008			2008			2008
Balance, beginning of quarter	$	21,711		$	8,027		$	7,517		$	6,013		$	5,518
Provision for credit losses (1)		4,558			8,444			2,495			3,012			2,028
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(596	)		(756	)		(305	)		(333	)		(259	)
Other real estate mortgage		(31	)		(10	)		(9	)		(6	)		(4	)
Real estate construction		(105	)		(85	)		(36	)		(28	)		(29	)
Lease financing		(20	)		(21	)		(19	)		(13	)		(12	)
Total commercial and commercial real estate		(752	)		(872	)		(369	)		(380	)		(304	)
Consumer:
Real estate 1-4 family first mortgage		(424	)		(210	)		(146	)		(103	)		(81	)
Real estate 1-4 family junior lien mortgage		(873	)		(728	)		(669	)		(352	)		(455	)
Credit card		(622	)		(485	)		(396	)		(369	)		(313	)
Other revolving credit and installment		(900	)		(683	)		(586	)		(488	)		(543	)
Total consumer		(2,819	)		(2,106	)		(1,797	)		(1,312	)		(1,392	)
Foreign		(54	)		(60	)		(59	)		(58	)		(68	)
Total loan charge-offs		(3,625	)		(3,038	)		(2,225	)		(1,750	)		(1,764	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		40			24			27			32			31
Other real estate mortgage		10			1			1			2			1
Real estate construction		2			1			—			1			1
Lease financing		3			4			3			3			3
Total commercial and commercial real estate		55			30			31			38			36
Consumer:
Real estate 1-4 family first mortgage		33			17			7			7			6
Real estate 1-4 family junior lien mortgage		26			26			28			18			17
Credit card		40			34			35			40			38
Other revolving credit and installment		204			118			117			121			125
Total consumer		303			195			187			186			186
Foreign		9			9			12			14			14
Total loan recoveries		367			234			230			238			236
Net loan charge-offs (2)		(3,258	)		(2,804	)		(1,995	)		(1,512	)		(1,528	)
Allowance related to business combinations/other		(165	)		8,044			10			4			(5	)
Balance, end of quarter	$	22,846		$	21,711		$	8,027		$	7,517		$	6,013
Components:
Allowance for loan losses	$	22,281		$	21,013		$	7,865		$	7,375		$	5,803
Reserve for unfunded credit commitments		565			698			162			142			210
Allowance for credit losses	$	22,846		$	21,711		$	8,027		$	7,517		$	6,013
Net loan charge-offs (annualized) as a percentage of average total loans (2)		1.54	%		2.69	%		1.96	%		1.55	%		1.60	%
Allowance for loan losses as a percentage of (3):
Total loans		2.64	%		2.43	%		1.91	%		1.85	%		1.50	%
Nonaccrual loans		212			309			157			181			178
Nonaccrual loans and other nonperforming assets		177			233			125			141			129
Allowance for credit losses as a percentage of (3):
Total loans		2.71	%		2.51	%		1.95	%		1.88	%		1.56	%
Nonaccrual loans		217			319			161			185			185
Nonaccrual loans and other nonperforming assets		181			241			128			144			134

(1)	Provision for credit losses for the quarter ended December 31, 2008, included $3.9 billion to conform reserve practices of Wells Fargo and Wachovia.
(2)	Because the Wachovia acquisition was completed on December 31, 2008, charge-offs and recoveries for 2008 include only those of Wells Fargo, and exclude those of Wachovia for that period. For Wachovia loans accounted for under SOP 03-3, loan losses on SOP 03-3 loans in first quarter 2009, are reported as a reduction of the nonaccretable difference rather than as charge-offs. This affects the comparability of certain ratios as described on page 33.
(3)	The allowance for loan losses and the allowance for credit losses do not include any amounts related to loans acquired from Wachovia that are accounted for under SOP 03-3. Loans acquired from Wachovia are included in total loans net of related purchase accounting write-downs. These factors affect the comparability of these ratios for the quarters ended March 31, 2009, and December 31, 2008, to other periods presented as described on page 33.

-26-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2009			2008			2008			2008			2008
Service charges on deposit accounts	$	1,394		$	803		$	839		$	800		$	748
Trust and investment fees:
Trust, investment and IRA fees		722			487			549			566			559
Commissions and all other fees		1,493			174			189			196			204
Total trust and investment fees		2,215			661			738			762			763
Card fees		853			589			601			588			558
Other fees:
Cash network fees		58			45			48			47			48
Charges and fees on loans		433			272			266			251			248
All other fees		410			218			238			213			203
Total other fees		901			535			552			511			499
Mortgage banking:
Servicing income, net		843			(40	)		525			221			273
Net gains (losses) on mortgage loan origination/sales activities		1,582			(236	)		276			876			267
All other		79			81			91			100			91
Total mortgage banking		2,504			(195	)		892			1,197			631
Insurance		581			337			439			550			504
Net gains (losses) from trading activities		787			(409	)		65			516			103
Net gains (losses) on debt securities available for sale		(119	)		721			84			(91	)		323
Net gains (losses) from equity investments		(157	)		(608	)		(509	)		47			313
Operating leases		130			62			102			120			143
All other		552			257			193			182			218
Total	$	9,641		$	2,753		$	3,996		$	5,182		$	4,803

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)	2009		2008		2008		2008		2008
Salaries	$	3,386	$	2,168	$	2,078	$	2,030	$	1,984
Commission and incentive compensation		1,824		671		555		806		644
Employee benefits		1,284		338		486		593		587
Equipment		687		402		302		305		348
Net occupancy		796		418		402		400		399
Core deposit and other intangibles		647		47		47		46		46
FDIC and other deposit assessments		338		57		37		18		8
Outside professional services		410		258		206		212		171
Insurance		267		214		144		206		161
Postage, stationery and supplies		250		141		136		138		141
Outside data processing		212		127		122		122		109
Travel and entertainment		105		117		113		112		105
Foreclosed assets		248		116		99		92		107
Contract services		216		107		88		104		108
Operating leases		70		81		90		102		116
Advertising and promotion		125		93		96		104		85
Telecommunications		158		83		78		82		78
Operating losses (reduction in losses)		172		96		63		56		(73	)
All other		623		276		359		317		318
Total	$	11,818	$	5,810	$	5,501	$	5,845	$	5,442

-27-

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

	Quarter ended March 31,
	2009								2008
							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	$	24,074			0.84	%	$	50	$	3,888			3.30	%	$	32
Trading assets		22,203			4.97			275		5,129			3.73			48
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		2,899			0.93			7		975			3.86			9
Securities of U.S. states and political subdivisions		12,213			6.43			213		6,290			7.43			120
Mortgage-backed securities:
Federal agencies		76,545			5.71			1,068		36,097			6.10			535
Residential and commercial		38,690			8.57			1,017		20,994			6.08			324
Total mortgage-backed securities		115,235			6.82			2,085		57,091			6.09			859
Other debt securities (4)		30,080			6.81			551		10,825			6.93			196
Total debt securities available for sale (4)		160,427			6.69			2,856		75,181			6.30			1,184
Mortgages held for sale (5)		31,058			5.34			415		26,273			6.00			394
Loans held for sale (5)		7,949			3.40			67		647			7.54			12
Loans:
Commercial and commercial real estate:
Commercial		196,923			3.87			1,884		91,085			6.92			1,569
Other real estate mortgage		104,271			3.47			894		37,426			6.44			600
Real estate construction		34,493			3.03			258		18,932			6.06			285
Lease financing		15,810			8.77			347		6,825			5.77			98
Total commercial and commercial real estate		351,497			3.89			3,383		154,268			6.65			2,552
Consumer:
Real estate 1-4 family first mortgage		245,494			5.64			3,444		72,308			6.90			1,246
Real estate 1-4 family junior lien mortgage		110,128			5.05			1,375		75,263			7.31			1,368
Credit card		23,295			12.10			704		18,776			12.33			579
Other revolving credit and installment		92,820			6.68			1,527		55,910			9.09			1,264
Total consumer		471,737			6.03			7,050		222,257			8.05			4,457
Foreign		32,357			4.36			349		7,394			11.27			207
Total loans (5)		855,591			5.09			10,782		383,919			7.55			7,216
Other		6,140			2.87			43		1,825			4.54			20
Total earning assets	$	1,107,442			5.22			14,488	$	496,862			7.19			8,906
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	80,393			0.15			30	$	5,226			1.92			25
Market rate and other savings		313,445			0.54			419		159,865			1.97			784
Savings certificates		170,122			0.92			387		41,915			3.96			413
Other time deposits		25,555			1.97			124		4,763			3.53			42
Deposits in foreign offices		45,896			0.35			39		46,641			2.84			330
Total interest-bearing deposits		635,411			0.64			999		258,410			2.48			1,594
Short-term borrowings		76,068			0.66			123		52,970			3.23			425
Long-term debt		258,957			2.77			1,783		100,686			4.29			1,077
Other liabilities		3,778			3.88			36		—			—			—
Total interest-bearing liabilities		974,214			1.22			2,941		412,066			3.02			3,096
Portion of noninterest-bearing funding sources		133,228			—			—		84,796			—			—
Total funding sources	$	1,107,442			1.06			2,941	$	496,862			2.50			3,096
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.16	%	$	11,547					4.69	%	$	5,810
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	20,255							$	11,648
Goodwill		23,183								13,161
Other		138,836								53,323
Total noninterest-earning assets	$	182,274							$	78,132
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	160,308							$	84,886
Other liabilities		50,566								30,062
Total equity		104,628								47,980
Noninterest-bearing funding sources used to fund earning assets		(133,228	)							(84,796	)
Net noninterest-bearing funding sources	$	182,274							$	78,132
TOTAL ASSETS	$	1,289,716							$	574,994

(1)	Our average prime rate was 3.25% and 6.22% for the quarters ended March 31, 2009 and 2008, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.24% and 3.29% for the same quarters, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

-28-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(income/expense in millions, average balances in billions)	2009			2008			2008			2008			2008
COMMUNITY BANKING
Net interest income	$	8,497		$	5,296		$	5,293		$	5,235		$	4,718
Provision for credit losses		4,004			6,789			2,202			2,766			1,865
Noninterest income		5,456			2,096			3,209			3,637			3,482
Noninterest expense		7,158			4,320			3,982			4,300			3,905
Income (loss) before income tax expense (benefit)		2,791			(3,717	)		2,318			1,806			2,430
Income tax expense (benefit)		890			(1,606	)		764			604			897
Net income (loss) before noncontrolling interests		1,901			(2,111	)		1,554			1,202			1,533
Less: Net income (loss) from noncontrolling interests		62			(11	)		14			18			11
Segment net income (loss)	$	1,839		$	(2,100	)	$	1,540		$	1,184		$	1,522
Average loans	$	552.8		$	288.9		$	287.1		$	283.2		$	282.7
Average assets		801.3			466.0			452.3			439.9			431.8
Average core deposits		538.0			260.6			252.8			251.1			246.6
WHOLESALE BANKING
Net interest income	$	2,367		$	1,400		$	1,065		$	1,025		$	1,026
Provision for credit losses		545			414			294			246			161
Noninterest income		2,540			515			631			1,388			1,151
Noninterest expense		2,531			1,251			1,329			1,358			1,344
Income before income tax expense (benefit)		1,831			250			73			809			672
Income tax expense (benefit)		647			31			(30	)		235			180
Net income before noncontrolling interests		1,184			219			103			574			492
Less: Net income (loss) from noncontrolling interests		4			4			—			(2	)		9
Segment net income	$	1,180		$	215		$	103		$	576		$	483
Average loans	$	271.9		$	124.2		$	116.3		$	107.7		$	100.8
Average assets		400.4			163.2			158.1			151.4			140.0
Average core deposits		138.5			81.0			64.4			64.8			68.2
WEALTH, BROKERAGE AND RETIREMENT SERVICES
Net interest income	$	737		$	251		$	223		$	199		$	154
Provision for credit losses		25			293			3			4			2
Noninterest income		1,902			417			458			481			483
Noninterest expense		2,219			512			498			497			485
Income (loss) before income tax expense (benefit)		395			(137	)		180			179			150
Income tax expense (benefit)		158			(52	)		68			68			57
Net income (loss) before noncontrolling interests		237			(85	)		112			111			93
Less: Net income (loss) from noncontrolling interests		(22	)		—			—			—			—
Segment net income (loss)	$	259		$	(85	)	$	112		$	111		$	93
Average loans	$	46.7		$	16.5		$	15.9		$	14.8		$	13.7
Average assets		104.0			20.0			19.1			17.8			16.7
Average core deposits		102.6			25.6			23.5			22.5			21.0
OTHER (2)
Net interest income	$	(225	)	$	(223	)	$	(200	)	$	(181	)	$	(138	)
Provision for credit losses		(16	)		948			(4	)		(4	)		—
Noninterest income		(257	)		(275	)		(302	)		(324	)		(313	)
Noninterest expense		(90	)		(273	)		(308	)		(310	)		(292	)
Loss before income tax benefit		(376	)		(1,173	)		(190	)		(191	)		(159	)
Income tax benefit		(143	)		(409	)		(72	)		(73	)		(60	)
Net loss before noncontrolling interests		(233	)		(764	)		(118	)		(118	)		(99	)
Less: Net income from noncontrolling interests		—			—			—			—			—
Other net loss	$	(233	)	$	(764	)	$	(118	)	$	(118	)	$	(99	)
Average loans	$	(15.8	)	$	(15.7	)	$	(15.1	)	$	(14.2	)	$	(13.3	)
Average assets		(16.0	)		(16.0	)		(15.3	)		(14.4	)		(13.5	)
Average core deposits		(25.2	)		(22.2	)		(20.6	)		(20.0	)		(18.5	)
CONSOLIDATED COMPANY
Net interest income	$	11,376		$	6,724		$	6,381		$	6,278		$	5,760
Provision for credit losses		4,558			8,444			2,495			3,012			2,028
Noninterest income		9,641			2,753			3,996			5,182			4,803
Noninterest expense		11,818			5,810			5,501			5,845			5,442
Income (loss) before income tax expense (benefit)		4,641			(4,777	)		2,381			2,603			3,093
Income tax expense (benefit)		1,552			(2,036	)		730			834			1,074
Net income (loss) before noncontrolling interests		3,089			(2,741	)		1,651			1,769			2,019
Less: Net income (loss) from noncontrolling interests		44			(7	)		14			16			20
Wells Fargo net income (loss)	$	3,045		$	(2,734	)	$	1,637		$	1,753		$	1,999
Average loans	$	855.6		$	413.9		$	404.2		$	391.5		$	383.9
Average assets		1,289.7			633.2			614.2			594.7			575.0
Average core deposits		753.9			345.0			320.1			318.4			317.3

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. As a result of the combination of Wells Fargo and Wachovia, management realigned its segments into the following three lines of business: Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement Services. We revised prior period information to reflect this realignment; however, segment information for periods prior to the first quarter of 2009 does not include Wachovia information.

(2)

“Other” includes integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement Services, largely representing wealth management customers serviced and products sold in the stores. “Other” also includes the $1.2 billion provision for credit losses recorded at the enterprise level in fourth quarter 2008 to conform Wachovia estimated loss emergence coverage periods to Wells Fargo policies.

-29-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2009			2008			2008			2008			2008
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	14,714		$	19,184		$	19,333		$	14,956		$	16,763
Purchases		—			—			57			82			52
Acquired from Wachovia (1)		34			479			—			—			—
Servicing from securitizations or asset transfers		1,447			808			851			994			797
Sales		—			—			—			(177	)		(92	)
Net additions		1,481			1,287			908			899			757
Changes in fair value:
Due to changes in valuation model inputs or assumptions (2)		(2,824	)		(5,129	)		(546	)		4,132			(1,798	)
Other changes in fair value (3)		(980	)		(628	)		(511	)		(654	)		(766	)
Total changes in fair value		(3,804	)		(5,757	)		(1,057	)		3,478			(2,564	)
Fair value, end of quarter	$	12,391		$	14,714		$	19,184		$	19,333		$	14,956

(1)	First quarter 2009 reflects refinements to initial purchase accounting adjustments.
(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.

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2009			2008			2008			2008			2008
Amortized MSRs:
Balance, beginning of quarter	$	1,446		$	433		$	442		$	455		$	466
Purchases		4			3			2			2			3
Acquired from Wachovia (1)		(127	)		1,021			—			—			—
Servicing from securitizations or asset transfers		4			7			8			4			5
Amortization		(70	)		(18	)		(19	)		(19	)		(19	)
Balance, end of quarter (2)	$	1,257		$	1,446		$	433		$	442		$	455
Fair value of amortized MSRs:
Beginning of quarter	$	1,555		$	622		$	595		$	601		$	573
End of quarter		1,392			1,555			622			595			601

(1)	First quarter 2009 reflects refinements to initial purchase accounting adjustments.
(2)	There was no valuation allowance recorded for the periods presented.

-30-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)	2009			2008			2008			2008			2008
Servicing income, net:
Servicing fees (1)	$	1,018		$	952		$	980		$	959		$	964
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)		(2,824	)		(5,129	)		(546	)		4,132			(1,798	)
Other changes in fair value (3)		(980	)		(628	)		(511	)		(654	)		(766	)
Total changes in fair value of residential MSRs		(3,804	)		(5,757	)		(1,057	)		3,478			(2,564	)
Amortization		(70	)		(18	)		(19	)		(19	)		(19	)
Net derivative gains (losses) from economic hedges (4)		3,699			4,783			621			(4,197	)		1,892
Total servicing income, net	$	843		$	(40	)	$	525		$	221		$	273
Market-related valuation changes to MSRs, net of hedge results (2) + (4)	$	875		$	(346	)	$	75		$	(65	)	$	94

(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.

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in billions)	2009			2008			2008			2008			2008
Managed servicing portfolio:
Residential mortgage loans serviced for others (1)	$	1,379		$	1,388		$	1,323		$	1,305		$	1,288
Owned loans serviced (2)		267			268			96			99			102
Total owned residential mortgage servicing portfolio		1,646			1,656			1,419			1,404			1,390
Commercial mortgage loans serviced for others		474			472			142			142			144
Total owned mortgage servicing portfolio		2,120			2,128			1,561			1,546			1,534
Sub-servicing		23			26			19			20			21
Total managed servicing portfolio	$	2,143		$	2,154		$	1,580		$	1,566		$	1,555
Ratio of MSRs to related loans serviced for others		0.74	%		0.87	%		1.34	%		1.37	%		1.08	%
Weighted-average note rate (owned servicing only)		5.83	%		5.92	%		5.98	%		6.00	%		6.00	%

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

-31-

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

	Quarter ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in billions)	2009			2008			2008			2008			2008
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	190		$	116		$	83		$	100		$	132
Refinances as a percentage of applications		82	%		68	%		39	%		44	%		62	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	100		$	71		$	41		$	47		$	61

	Quarter ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in billions)	2009		2008		2008		2008		2008
Residential Real Estate Originations: (1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	51	$	20	$	23	$	31	$	34
Correspondent/Wholesale		49		28		25		27		27
Home equity loans and lines		1		1		2		3		3
Wells Fargo Financial		—		1		1		2		2
Total	$	101	$	50	$	51	$	63	$	66
Year-to-date	$	101	$	230	$	180	$	129	$	66

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

-32-

Wells Fargo & Company and Subsidiaries
LOANS SUBJECT TO SOP 03-3

Certain loans acquired from Wachovia have evidence of credit deterioration since origination and it is probable that we will not collect all contractually required principal and interest payments (referred to as “credit impaired” loans). Such loans are accounted for under American Institute of Certified Public Accountants Statement of Position 03-3,Accounting for Certain Loans or Debt Securities Acquired in a Transfer (SOP 03-3). SOP 03-3 requires that acquired loans be recorded at fair value at the acquisition date and prohibits carryover of the related allowance for loan losses. The difference between contractually required payments and cash flows expected to be collected is referred to as the nonaccretable difference. The difference between the cash flows expected to be collected and the fair value is referred to as the accretable yield.

Because SOP 03-3 loans have been written down in purchase accounting to an amount estimated to be collectible, such loans are not classified as nonaccrual even though they may be contractually past due. Also, losses on such loans are charged against the discount established in purchase accounting and, as such, are not reported as charge-offs.

As a result of the application of SOP 03-3 to credit-impaired Wachovia loans, certain ratios of the combined company cannot be used to compare a portfolio that includes acquired credit-impaired loans accounted for under SOP 03-3 against one that does not, or to compare ratios across quarters or years. The ratios particularly affected by the accounting under SOP 03-3 include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.

	March 31, 2009 (1)						December 31, 2008
	SOP 03-3		All other				SOP 03-3		All other
(in millions)	loans		loans		Total		loans		loans		Total
Commercial and commercial real estate:
Commercial	$	3,088	$	188,623	$	191,711	$	4,580	$	197,889	$	202,469
Other real estate mortgage		6,597		98,337		104,934		7,762		95,346		103,108
Real estate construction		4,507		29,405		33,912		4,503		30,173		34,676
Lease financing		—		14,792		14,792		—		15,829		15,829
Total commercial and commercial real estate		14,192		331,157		345,349		16,845		339,237		356,082
Consumer:
Real estate 1-4 family first mortgage		41,520		201,427		242,947		39,214		208,680		247,894
Real estate 1-4 family junior lien mortgage		615		109,133		109,748		728		109,436		110,164
Credit card		—		22,815		22,815		—		23,555		23,555
Other revolving credit and installment		32		91,220		91,252		151		93,102		93,253
Total consumer		42,167		424,595		466,762		40,093		434,773		474,866
Foreign		1,849		29,619		31,468		1,859		32,023		33,882
Total loans	$	58,208	$	785,371	$	843,579	$	58,797	$	806,033	$	864,830

(1) In the first quarter of 2009, we refined certain of our preliminary purchase accounting adjustments based on additional information as of December 31, 2008. These refinements include a net increase to the nonaccretable difference of $2.8 billion ($2.2 billion of which related to Pick-a-Pay loans), and a net increase to the accretable yield of $1.9 billion ($2.0 billion of which related to Pick-a-Pay loans and reflects changes in the amount and timing of cash flows). The effect on goodwill of these adjustments amounted to a net increase to goodwill of $0.9 billion.

-33-

Wells Fargo & Company and Subsidiaries
HOME EQUITY PORTFOLIOS (1)

					% of loans
					two payments
	Outstanding balances				or more past due						Annualized loss rate
	Mar. 31,		Dec. 31,		Mar. 31,			Dec. 31,			Mar. 31,			Dec. 31,
(in millions)	2009		2008		2009			2008			2009			2008
Core portfolio (2)(3)
California	$	31,784	$	31,544		3.56	%		2.95	%		3.97	%		3.94	%
Florida		12,067		11,781		3.73			3.36			2.03			4.39
New Jersey		8,086		7,888		1.58			1.41			0.45			0.78
Virginia		5,653		5,688		1.45			1.50			0.76			1.56
Pennsylvania		5,129		5,043		1.04			1.10			0.29			0.52
Other		56,342		56,415		2.06			1.97			1.59			1.59
Total		119,061		118,359		2.53			2.27			2.09			2.39
Liquidating portfolio
California		3,835		4,008		8.49			6.69			13.98			12.32
Florida		492		513		10.35			8.41			13.33			13.60
Arizona		233		244		8.37			7.40			15.04			13.19
Texas		179		191		1.40			1.27			2.66			1.67
Minnesota		122		127		3.88			3.79			6.92			5.25
Other		5,001		5,226		3.96			3.28			5.29			4.73
Total		9,862		10,309		6.10			4.93			9.27			8.27
Total core and liquidating portfolios	$	128,923	$	128,668		2.80			2.48			2.65			2.87

(1)	Consists of real estate 1-4 family junior lien mortgages and lines of credit secured by real estate from all groups, including the National Home Equity Group, Wachovia, Wells Fargo Financial and Wealth Management.
(2)	Loss rates for 2008 for the core portfolio in the table above reflect results for Wachovia (not included in the Wells Fargo reported results) and Wells Fargo. For the Wells Fargo core portfolio on a stand-alone basis, outstanding balances and related annualized loss rates were $29,399 million (3.81%) for California, $2,677 million (6.87%) for Florida, $1,925 million (1.29%) for New Jersey, $1,827 million (1.26%) for Virginia, $1,073 million (1.17%) for Pennsylvania, $38,934 million (1.77%) for all other states, and $75,835 million (2.71%) in total.
(3)	Excludes SOP 03-3 loans.

-34-

Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO(1)

	SOP 03-3 loans										All other loans
								Ratio
								of carrying
	Outstanding		Current			Carrying		amount to			Outstanding		Current
(in millions)	balance			LTV ratio	(2)	amount		current value			balance			LTV ratio	(2)
March 31, 2009
California	$	42,216		152	%	$	27,178		99	%	$	25,979		90	%
Florida		6,260		129			4,027		84			5,433		92
New Jersey		1,750		101			1,126		66			3,372		76
Texas		475		76			305		49			2,213		60
Washington		683		93			439		61			1,580		74
Other		10,265		119			6,602		78			14,988		82
Total Pick-a-Pay loans	$	61,649				$	39,677				$	53,565
December 31, 2008
California	$	42,650		133	%	$	25,472		85	%	$	28,107		86	%
Florida		5,992		119			3,439		76			6,099		89
New Jersey		1,809		94			1,246		60			3,545		74
Texas		562		72			385		49			2,231		61
Washington		678		86			493		59			1,662		71
Other		10,255		97			6,580		64			16,056		77
Total Pick-a-Pay loans	$	61,946				$	37,615				$	57,700

(1)

In the first quarter of 2009, we refined certain of our preliminary purchase accounting adjustments based on additional information as of December 31, 2008. For the Pick-a-Pay loans subject to SOP 03-3, these refinements include a net increase to the nonaccretable difference of $2.2 billion, and a net increase to the accretable yield of $2.0 billion, which reflects changes in the amount and timing of cash flows. Approximately $2.7 billion of Pick-a-Pay loans were added to the SOP 03-3 portfolio based on the characteristics of those loans as of December 31, 2008.

(2)

Current loan-to-value (LTV) ratio is based on collateral values and is updated quarterly by an independent vendor. LTV ratio includes outstanding balance on equity lines of credit (included in Home Equity Portfolios table on page 34) that share common collateral and are junior to the above Pick-a-Pay loans.

-35-