Media				Investors
Mary Eshet		Julia Tunis Bernard		Bob Strickland		Jim Rowe
704-383-7777		415-222-3858		415-396-0523		415-396-8216

Wednesday, January 20, 2010

Full Year 2009:

•		Record net income of $12.3 billion
•		Record revenue of $88.7 billion
•		Record pre-tax pre-provision profit 1 (PTPP) of $39.7 billion, more than 2.1 times annual net charge-offs
•		Diluted earnings per common share of $1.75 reduced by $0.76 per share for TARP preferred stock dividends, including the deemed dividend upon redemption of TARP preferred stock
•		Total credit extended to consumers and businesses of $711 billion
•		Net interest margin of 4.28 percent, return on assets of 0.97 percent, and return on equity of 9.88 percent

Fourth Quarter 2009:

•

Net income of $2.8 billion, after pre-tax $500 million credit reserve build and $861 million of merger-related and incremental expenses, including:

	-		$450 million in merger costs
	-		$261 million previously disclosed expense provision for auction rate securities (ARS) settlement
	-		$150 million employee benefit-related expenses for 401(k) profit sharing contribution to all eligible team members

•		Diluted earnings per common share of $0.08 reduced by $0.47 for TARP preferred stock dividends, including $0.39 per share upon redemption of TARP preferred stock
•		Record revenue of $22.7 billion, up 4 percent (annualized) from third quarter 2009
•		PTPP of $9.9 billion, driven by continued revenue growth offset by $861 million in merger-related and incremental expenses
•		Average checking and savings deposits of $661 billion, up 20 percent (annualized) from prior quarter
•		Continued signs of a positive turn in credit quality:

-

30 day delinquent balances in a number of the retail and commercial segments were stable or improved, including auto, credit card, liquidating home equity, personal credit management,

¹   See footnote 4 on page 18 for information on PTPP

			small business direct, and student lending, aided by continued improvement in the performance of newer vintages
	-		Growth in nonperforming loans concentrated in secured real estate portfolios; other loan categories stable, including flat or declining commercial and industrial (C&I) and consumer revolving/installment credit nonaccruals
	-		Growth in net charge-offs declined significantly in the quarter. Almost all major loan categories had relatively flat/declining losses, with the exception of commercial real estate. Credit card losses declined for the second consecutive quarter.
	-		“Roll rates” from current to 30 days past due continued to improve in Pick-a-Pay portfolio, both impaired and non-impaired

•

Significant increases in capital:

		Dec. 31,				Dec. 31,
(as a percent of total risk-weighted assets)		2009 (1)				2008
Tier 1 capital			9.3	%			7.8
Tier 1 common equity (2)			6.5				3.1
Total capital			13.3				11.8

(1)		December 31, 2009, ratios are preliminary.
(2)		See table on page 38 for more information on Tier 1 common equity.

	-		Stockholders’ equity and Tier 1 common ratio higher at December 31, 2009, than prior to Wachovia acquisition
	-		Equity offering in December raised $12.2 billion
	-		Full repayment of $25 billion TARP investment; paid $1.44 billion in cash dividends to U.S. Treasury over the life of the investment
	-		Purchased Prudential Financial’s noncontrolling interest in securities brokerage joint venture, giving Wells Fargo 100 percent of the future earnings of the business
	-		Adoption of FAS 166/167 on January 1, 2010, improved Tier 1 common ratio by 1 basis point, reduced Tier 1 capital ratio by 1 basis point

•

Wachovia integration on track and on schedule:

	-		Pick-a-Pay portfolio performed better than originally modeled
	-		Re-confirmed estimate for $5 billion annual cost saves upon completion of integration in 2011, over 50 percent of annual run rate achieved in 2009
	-		Estimated cumulative merger expenses further reduced to less than $5 billion
	-		Asset reduction in non-strategic loan categories proceeding as planned – reduced non-strategic loans by $18.9 billion, or 15 percent in 2009
	-		$109 billion of higher-cost certificates of deposits (CDs) matured in 2009; retained approximately 60 percent in lower-rate CDs and liquid deposits at lower than expected yields
	-		Converted first state banking stores (Colorado) in November 2009, conversion of remaining overlapping markets expected throughout 2010

•

Industry leader in loan modifications for homeowners:

	-		As of December 31, 2009, nearly half a million Wells Fargo mortgage customers were in active trial or completed loan modifications started in prior 12 months; of this total, 119,000 were under the Home Affordable Modification Program (HAMP), including 8,400 completed modifications, and the rest were non-HAMP modifications
	-		Over 30 percent of purchased credit-impaired (PCI) Pick-a-Pay portfolio modified through December 31, 2009

Selected Financial Information

		Quarter ended								Year ended
		Dec. 31,				Sept. 30,				Dec. 31,
		2009				2009				2009
Earnings
Diluted earnings per share		$	0.08				0.56				1.75
Wells Fargo net income (in billions)			2.82				3.24				12.28
Asset Quality
Net charge-offs as % of avg. total loans			2.71	%			2.50				2.21
Nonperforming loans as % of total loans			3.12				2.61				3.12
Allowance as a % of total loans			3.20				3.07				3.20
Other
Revenue (in billions)		$	22.70				22.47				88.69
Average loans (in billions)			792.4				810.2				822.8
Average core deposits (in billions)			770.8				759.3				762.5
Net interest margin			4.31	%			4.36				4.28

SAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported record net income of $12.3 billion, or $1.75 per common share, for 2009. Fourth quarter 2009 diluted earnings per share were $0.08, compared with $0.56 for third quarter 2009 and a loss of $0.84 per share in fourth quarter 2008. Fourth quarter and full year 2009 diluted earnings per share were reduced by $0.47 and $0.76, respectively, for combined cash dividends and the deemed dividend upon redemption and full repayment of TARP preferred stock. Results prior to January 1, 2009, do not include Wachovia.

“For the fourth quarter of 2009 and for the full year, we delivered significant value for our customers, communities, shareholders and country,” said Chairman and CEO John Stumpf. “We thank our team of 281,000 for their dedication and steadfast focus on customers in 2009 as we continued the important integration of Wachovia into Wells Fargo. This merger, which essentially doubled the size of our company, has already generated tremendous synergies as we expand the time-tested Wells Fargo model to more customers and team members over a broader geography, including additional businesses that help customers succeed financially. In particular, we are very pleased with the positive results we’ve seen in attracting deposits from new and existing customers, and we are excited about the opportunity to deepen current relationships, cross-sell to new customers and achieve even higher customer satisfaction, while rewarding them for more of their business. Our mission and fundamental business model remains the same and we believe our strategic and financial position is even stronger today than it was a year ago when we completed our merger with Wachovia.

“Wells Fargo continued to do its part in making credit available to help our nation’s economic recovery. Nearly half a million Wells Fargo loan customers were provided with mortgage payment relief through active trial and completed loan modifications in 2009. We provided $711 billion in loans and lines of credit to help get the economy going again.

“As this past year’s financial performance has shown, the earnings capability of Wells Fargo’s business model has significant power to generate capital internally. Because of the value we created in 2009 for our customers and communities, we were able to achieve record revenue and earnings for the year. As we enter 2010, we believe our franchise has never been better positioned to meet the challenges and opportunities ahead of it. The Wells Fargo model has been built to outperform our peers over time and through cycles. Clearly we have done just that again in 2009 and believe that this very same model and execution discipline will continue to outperform the industry in the years and cycles ahead.”

Financial Performance

“Fourth quarter financial results reflected a continuation of the solid revenue, earnings and capital generation we have produced all year,” said Chief Financial Officer Howard Atkins. “Fourth quarter earnings of $2.8 billion contributed to a record $12.3 billion in net income for the full year. Revenue continued to build during the quarter across the majority of our businesses, reaching a new quarterly record of $22.7 billion, leading to pre-tax pre-provision profit of nearly $10.0 billion despite $861 million of merger-related and incremental expenses in the quarter. Risk in our asset portfolios has been reduced throughout the year, including fourth quarter, by reducing higher-risk loan portfolios, shedding legacy trading positions, and reducing longer duration investment securities at lower interest rates. We continued to strengthen our balance sheet by building credit reserves to $25 billion at quarter end, up $500 million in the quarter, up $3.5 billion during 2009 and more than six times the reserve (pre-merger) we had at the start of the credit crisis in mid-2007.

The Wachovia integration is proceeding as expected. Credit losses are tracking better than originally estimated at the time of the merger. Expense synergies are on track for $5 billion in annual run rate savings upon completion of the integration in 2011 and cumulative integration costs are now expected to be $3 billion less than the originally assumed $8 billion. Revenue synergies have already begun to be realized with great potential for many more. We built capital significantly throughout the year. Stockholders’ equity and Tier 1 common at December 31, 2009, were above the strong levels we had prior to the Wachovia acquisition, even after redeeming TARP and purchasing Prudential’s minority interest.”

Revenue

Revenue of $22.7 billion increased 4 percent (annualized) from third quarter 2009, largely the result of continued growth in fee income in our trust and investment management, credit/debit card and mortgage banking businesses. We also experienced broad-based growth across multiple businesses, including double-digit (annualized) linked-quarter revenue growth in asset management, auto lending through Wachovia Dealer Services, insurance, merchant card, mortgage banking, and wealth management. Legacy

Wells Fargo had record retail bank household cross-sell of Wells Fargo products of 5.95 in the fourth quarter, and core product solutions (sales) of 6.08 million, up 16 percent from prior year. While mortgage originations and servicing revenue remained high, total mortgage banking noninterest income contributed just 15 percent of the Company’s consolidated revenue for the quarter.

Net Interest Income

Net interest income was $11.5 billion, compared with $11.7 billion in third quarter 2009. While earning assets were up slightly, the decline in core loans, the reduction in non-strategic assets and the third quarter sale of longer-duration mortgage-backed securities reduced net interest income growth and net interest margin in the fourth quarter, offset by significant growth in noninterest-bearing checking and savings deposits and wider new lending spreads, which are expected to benefit net interest income over the long term.

Noninterest Income

Noninterest income was $11.2 billion, up 15 percent (annualized) from $10.8 billion in third quarter 2009, and included:

•

Mortgage banking income of $3.4 billion, including:

	-		$1.2 billion in income from mortgage loan originations/sales activities (net of $316 million increase in repurchase reserves) on $94 billion of residential mortgage originations and $144 billion of applications
	-		$1.9 billion market-related valuation changes to mortgage servicing rights (MSRs) net of economic hedge results, largely reflecting the continuation of strong carry income and effective hedge performance; average servicing portfolio note rate was only 5.66 percent, the lowest since September 30, 2005, and the value of MSRs to loans serviced for others was 91 basis points.

•		Trust and investment fees of $2.6 billion, up 16 percent (annualized) linked quarter, primarily reflecting an increase in client assets and higher revenue from the retail securities brokerage business. After purchasing Prudential’s noncontrolling interest in the securities brokerage joint venture on December 31, 2009, Wells Fargo has 100 percent of the future earnings of the business.
•		Service charges on deposit accounts of $1.4 billion, down 15 percent (annualized) linked quarter due to normal seasonality
•		Credit/debit card fees of $961 million, up 6 percent (annualized) linked quarter reflecting seasonally higher volumes and higher debit card penetration
•		Insurance revenue of $482 million, up 12 percent (annualized) linked quarter
•		Net gains on debt and equity securities of $383 million, largely reflecting private equity gains
•		$272 million reduction in other noninterest income linked quarter, partly reflecting lower investment income in employee benefit plan

The Company had net unrealized securities gains of $5.6 billion at December 31, 2009, consisting of $3.3 billion in unrealized gains in the agency mortgage-backed securities portfolio and $2.3 billion on

spread-related fixed-income securities and equity investments. During the quarter, mortgage-backed securities yields increased while capital market credit spreads generally narrowed.

Noninterest Expense

“While our core cost discipline remained very much in place in the quarter, noninterest expense increased to $12.8 billion from $11.7 billion in third quarter 2009, driven in large part by $450 million of Wachovia merger integration and severance expense (up $251 million from third quarter), $261 million for the previously announced ARS settlement and $150 million for employee benefit-related expense for 401(k) profit sharing contribution to all eligible team members,” said Atkins. “We also continued to invest for both the short- and long-term benefit of our customers. We added sales and service team members in regional banking as we align Wachovia’s banking stores with the Wells Fargo model. As we’ve rolled out our regional commercial banking office model into the Eastern states, we’ve increased sales and service headcount by 8 percent from the third quarter. We also added resources to handle the higher volumes of mortgage loan modifications, with home retention staff up 17 percent in the quarter to more than 15,000 team members dedicated to helping customers stay in their homes. The Company’s efficiency ratio was 56.5 percent, up from the third quarter’s record level but roughly flat with the first and second quarter.

Income Taxes

The Company’s effective income tax rate was 25.2 percent in the fourth quarter, down from 29.5 percent in the third quarter (adjusted for noncontrolling interest). The reduction in tax expense primarily related to the resolution of certain federal and state income tax matters in the quarter and to a greater proportion of tax-exempt income.

Loans

Average total loans were $792.4 billion in the fourth quarter compared with $810.2 billion in the third quarter. In part, the decline was driven by the Company’s objective to reduce identified higher-risk, non-strategic and liquidating consumer loan portfolios, down $4.7 billion in the fourth quarter. “While we believe we’ve been an industry-leader in supplying credit to consumers and businesses – $711 billion in commitments and originations in 2009 – loan demand remained relatively soft in the fourth quarter, although the pace of decline in core loans moderated slightly in the quarter,” said Atkins. “Wells Fargo continued to gain market share in many lending segments including residential mortgage, auto, education finance, SBA and middle market commercial. With commercial line utilization at cyclical lows and total wholesale banking commitments of $258 billion, we are encouraged by the potential for increased loan volume should a growing economy lead to increased commercial loan demand.”

Deposits

“Deposit growth remained very strong as we continued to build consumer and business checking account relationships,” said Atkins. Average checking and savings deposits increased 20 percent (annualized) to $661.4 billion from $629.6 billion in third quarter 2009. Average mortgage escrow deposits were

$27.5 billion compared with $28.7 billion in third quarter 2009. Average consumer checking accounts grew a net 5.8 percent from 2008 for Wells Fargo and Wachovia combined, and average business checking accounts grew a net 3.9 percent for the same period. Average total core deposits were $770.8 billion, up 6 percent (annualized) from $759.3 billion in third quarter 2009. During the quarter, $14 billion of Wachovia’s higher-rate certificates of deposit matured, with $6 billion of those balances retained. For the full year 2009, $109 billion of Wachovia’s
high-rate certificates of deposit matured, with $62 billion retained, largely in low-cost CDs, checking and savings accounts. Only $8 billion of Wachovia high-rate CDs are expected to mature in 2010.

Capital

“We have built capital significantly in the last 15 months through industry-leading internal capital generation and three successful common stock offerings totaling over $33 billion, including the $12.2 billion offering in the fourth quarter that allowed us to repay TARP in full,” said Atkins. “Despite doubling the size of the Company and despite cyclically elevated credit costs this past year, our capital ratios ended 2009 higher than they were upon completion of the Wachovia acquisition, even after redeeming TARP in full and purchasing Prudential’s noncontrolling interest in the retail securities brokerage joint venture.”

		Dec. 31,				Dec. 31,
(as a percent of total risk-weighted assets)		2009 (1)				2008
Tier 1 capital			9.3	%			7.8
Tier 1 common equity (2)			6.5				3.1
Total capital			13.3				11.8

(1)		December 31, 2009, ratios are preliminary.
(2)		See table on page 38 for more information on Tier 1 common equity.

On January 1, 2010, the Company adopted new accounting guidance contained in FASB ASC 810, Consolidations, and FASB ASC 860, Transfers and Servicing (FAS 166/167), which resulted in the consolidation of certain off-balance sheet assets not currently included in its financial statements. The adoption of the new guidance added approximately $10 billion in risk-weighted assets and had a small positive impact on common equity upon adoption. The total impact was to increase Tier 1 common equity as a percentage of risk-weighted assets by 1 basis point, to reduce the Tier 1 capital ratio by 1 basis point and to reduce the total capital ratio by 4 basis points.

Credit Quality

“Fourth quarter credit results were in line with our expectations,” said Chief Credit and Risk Officer Mike Loughlin. “While losses remained elevated during the quarter as expected, a more favorable economic outlook and improved credit statistics in several portfolios further increase our confidence that our credit cycle is turning, provided economic conditions do not deteriorate. Credit actions taken early in 2008 have so far produced high quality subsequent vintages in the consumer portfolios, and 30-day delinquency levels in a number of retail and commercial segments improved or stabilized in the fourth quarter.

Stabilization, or in some cases improvements, in residential real estate values in multiple markets have resulted in lower expected loss severity in our consumer real estate secured portfolios, including better than expected performance in the Pick-a-Pay portfolio. As expected, commercial real estate losses increased during the quarter, but remained at manageable levels. Last quarter, we indicated that we expected consumer losses to peak in the first half of 2010 and commercial losses to peak in the second half absent further economic deterioration. Based on the portfolio performance data we saw in the fourth quarter, and assuming the same economic outlook, we are tracking somewhat better than these expectations. Nonperforming asset growth decelerated in the fourth quarter, and once again we increased reserve levels commensurate with the estimated losses inherent in the portfolio. For the first time in four quarters, the total provision in the fourth quarter declined on a linked-quarter basis. We are working actively to find solutions for consumer and commercial customers who are not able to repay loans according to original terms. We are also encouraging Wells Fargo bankers to stay close to their customers and prospects to understand their future borrowing needs, so that when their credit needs arise, we will be prepared to lend.”

Credit Losses

Fourth quarter net charge-offs were $5.4 billion, or 2.71 percent of average loans (annualized), compared with third quarter net charge-offs of $5.1 billion, or 2.50 percent of average loans. Total credit losses included $1.7 billion of commercial and commercial real estate loans (2.15 percent of average loans) and $3.7 billion of consumer loans (3.24 percent of average loans), as shown in the following table. Almost all of the increase in charge-offs was in commercial and consumer real estate, with the other portfolios showing flat to declining losses.

Net Loan Charge-Offs (1)		Quarter ended
		December 31, 2009								September 30, 2009								June 30, 2009
						As a								As a								As a
						% of								% of								% of
		Net loan				average				Net loan				average				Net loan				average
		charge-				loans				charge-				loans				charge-				loans
($ in millions)		offs				(annualized)				offs				(annualized)				offs				(annualized)
Commercial and commercial real estate:
Commercial		$	927				2.24	%		$	924				2.09	%		$	704				1.51	%
Real estate mortgage			349				1.32				209				0.80				146				0.56
Real estate construction			375				4.82				249				3.01				232				2.76
Lease financing			49				1.37				82				2.26				61				1.68
Total commercial and commercial real estate			1,700				2.15				1,464				1.78				1,143				1.35
Consumer:
Real estate 1-4 family first mortgage			1,018				1.74				966				1.63				758				1.26
Real estate 1-4 family junior lien mortgage			1,329				5.09				1,291				4.85				1,171				4.33
Credit card			634				10.61				648				10.96				664				11.59
Other revolving credit and installment			686				3.06				682				3.00				604				2.66
Total consumer			3,667				3.24				3,587				3.13				3,197				2.77
Foreign			46				0.62				60				0.79				46				0.61
Total		$	5,413				2.71	%		$	5,111				2.50	%		$	4,386				2.11	%

(1)		See explanation on page 30 of the accounting for purchased credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.

“While we expect commercial and commercial real estate losses will remain elevated for the near term, we continue to believe our portfolio will perform relatively well,” said Loughlin. “Our commercial real estate portfolio is well diversified with respect to product type and geography. The Wells Fargo portion of the portfolio reflected strong, consistent underwriting and a relationship approach, while the loss content in the Wachovia portion was significantly reduced when we took $7 billion in purchase accounting adjustments at the time of the merger on $18 billion of the highest risk commercial real estate loans. As a result of improved residential real estate activity, stable employment and high quality recent vintages, consumer losses were essentially flat in the fourth quarter.

“Overall the PCI portfolio has performed as expected, and we believe the remaining nonaccretable balance is adequate to absorb estimated future life-of-loan losses on the portfolio. In fact, we expect the Pick-a-Pay portfolio, where we have recognized $10.2 billion of the original $26.5 billion of PCI impairment taken on the Pick-a-Pay portfolio, to perform better than our original estimates. As required, any further deterioration we experience on the PCI loans will be reflected in credit costs while improvements in that portfolio will be reflected in revenue as increased yield or gains on asset sales. To date, these have largely offset one another.”

Nonperforming assets

Total nonperforming assets (NPAs) were $27.6 billion (3.53 percent of total loans) at December 31, 2009, and included $24.4 billion of nonaccrual loans and $3.2 billion of foreclosed assets (repossessed real estate and vehicles).

Nonaccrual Loans and Other Nonperforming Assets

		December 31, 2009								September 30, 2009								June 30, 2009
						As a								As a								As a
						% of								% of								% of
						total								total								total
($ in millions)		Balances				loans				Balances				loans				Balances				loans
Commercial and commercial real estate:
Commercial		$	4,397				2.78	%		$	4,540				2.68	%		$	2,910				1.60	%
Real estate mortgage			3,984				3.80				2,856				2.76				2,343				2.26
Real estate construction			3,025				10.18				2,711				8.55				2,210				6.65
Lease financing			171				1.20				157				1.11				130				0.89
Total commercial and commercial real estate			11,577				3.77				10,264				3.22				7,593				2.28
Consumer:
Real estate 1-4 family first mortgage			10,100				4.40				8,132				3.50				6,000				2.53
Real estate 1-4 family junior lien mortgage			2,263				2.18				1,985				1.90				1,652				1.54
Other revolving credit and installment			332				0.37				344				0.38				327				0.36
Total consumer			12,695				2.84				10,461				2.32				7,979				1.74
Foreign			146				0.50				144				0.48				226				0.75
Total nonaccrual loans			24,418				3.12				20,869				2.61				15,798				1.92
Foreclosed assets:
GNMA loans			960								840								932
All other			2,199								1,687								1,592
Total foreclosed assets			3,159								2,527								2,524
Real estate and other nonaccrual investments			62								55								20
Total nonaccrual loans and other nonperforming assets		$	27,639				3.53	%		$	23,451				2.93	%		$	18,342				2.23	%
Change from prior quarter		$	4,188								5,109								5,730

“While commercial and commercial real estate nonaccrual loans were up in the quarter, we continued to see the rate of growth slowing considerably quarter to quarter,” said Loughlin. “The $1.4 billion increase in commercial real estate NPAs included impaired loans in the PCI portfolio placed in foreclosure and therefore moved to NPAs (written down at the time of the Wachovia merger).

“We believe the loss exposure expected in the NPAs is significantly mitigated by three factors. First, 96 percent of our nonperforming loans (NPLs) are secured. Second, losses have already been recognized on 36 percent of the total. Specifically, 31 percent of commercial loan NPLs have been written down by 52 percent or more, and all residential real estate NPLs greater than 180 days old have been written down to net realizable value. Third, there are certain NPLs for which there are loan level reserves in the allowance, while other NPLs are covered by general reserves.”

Loans 90 Days or More Past Due and Still Accruing (1)
(Excluding Insured/Guaranteed GNMA and Similar Loans)

		Dec. 31,				Sept. 30,
(in millions)		2009				2009
Commercial and commercial real estate:
Commercial		$	590				458
Real estate mortgage			1,183				693
Real estate construction			740				930
Total commercial and commercial real estate			2,513				2,081
Consumer:
Real estate 1-4 family first mortgage			1,623				1,552
Real estate 1-4 family junior lien mortgage			515				484
Credit card			795				683
Other revolving credit and installment			1,333				1,138
Total consumer			4,266				3,857
Foreign			73				76
Total loans		$	6,852				6,014

(1)		The table above does not include PCI loans 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 that actual future loan performance is consistent with original estimates.

Loans 90 days or more past due and still accruing totaled $22.2 billion at December 31, 2009, and $18.9 billion at September 30, 2009. For the same period ends, the totals included $15.3 billion and $12.9 billion, respectively, in advances pursuant to the Company’s servicing agreement to Government National Mortgage Association (GNMA) mortgage pools and similar loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

Allowance for Credit Losses

The allowance for credit losses, including the reserve for unfunded commitments, totaled $25.0 billion at December 31, 2009, compared with $24.5 billion at September 30, 2009. The credit reserve reflects management’s estimate of inherent losses in the loan portfolio at December 31, 2009. Primary drivers of the increased allowance this quarter included $100 million associated with additional life-of-loan losses for several commercial PCI credits (as mentioned above, while this deterioration is reflected as credit costs, related improvements in any PCI loans are reflected as increased revenues) and the remainder associated with residential real estate loan modification programs.

The allowance coverage to total loans increased to 3.20 percent compared with 3.07 percent at September 30, 2009. The allowance coverage to NPLs was 103 percent at December 31, 2009, compared with 118 percent at September 30, 2009. “In 2009, we provided $3.5 billion of reserves in excess of charge-offs, bringing total loan loss reserves to more than $25 billion,” said Loughlin. “In addition to the loan loss reserve, we also began 2010 with $22.9 billion available specifically to absorb losses in the PCI portfolio; i.e. to cover losses on the most severely distressed portion of the Wachovia loan portfolio. We believe the

- 12 -

allowance was adequate for losses inherent in the loan portfolio at December 31, 2009, including both performing and nonperforming loans.”

For additional detail on credit quality and trends, please refer to the quarterly supplement.

Business Segment Performance

Wells Fargo defines its operating segments by product type and customer segment. Segment net income for each of the three business segments was:

		Quarter ended
		Dec. 31,				Sept. 30,
(in millions)		2009				2009
Community Banking		$	2,102			$	2,667
Wholesale Banking			1,011				598
Wealth, Brokerage and Retirement			131				244

More financial information about the business segments is on pages 39 and 40.

Community Banking offers 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

		Quarter ended
		Dec. 31,				Sept. 30,
(in millions)		2009				2009
Total revenue		$	15,119			$	15,143
Provision for credit losses			4,903				4,572
Noninterest expense			7,420				6,802
Segment net income			2,102				2,667
(in billions)
Average loans			524.3				534.7
Average assets			772.7				785.2
Average core deposits			519.9				530.3

Community Banking reported net income of $2.1 billion in fourth quarter 2009, down $565 million from third quarter. Revenue was flat compared with third quarter, driven by strong mortgage fee income offset by a decrease in net interest margin. Noninterest income increased $285 million from prior quarter driven by continued strength in mortgage banking. Noninterest expense increased $618 million, including employee benefit-related expenses, volume-related mortgage expenses, project expenses and seasonal software license and maintenance expenses, partially offset by Wachovia merger-related cost saves. The provision for credit losses increased $331 million, and included a $385 million credit reserve build compared with a $265 million credit reserve build in prior quarter.

Regional Banking Highlights for Legacy Wells Fargo

•		Record core product solutions (sales) of 26.0 million in 2009, up 14 percent from 2008 on a comparable basis
•		Core sales per platform banker FTE (active, full-time equivalent) of 5.75 per day, up from 5.29 in 2008 on a comparable basis
•		Record retail bank household cross-sell of Wells Fargo products of 5.95 products per household; 26 percent of retail bank households had 8 or more products, the Company’s long-term goal
•		Sales of Wells Fargo Packages® (a checking account and at least three other products) up 21 percent from 2008; purchased by 79 percent of new checking account customers
•		Business Banking

	-		Store-based business solutions up 14 percent from 2008
	-		Business Banking household cross-sell of 3.77 products per household
	-		Sales of Wells Fargo Business Services Packages (business checking account and at least three other business products) up 25 percent from 2008; purchased by 57 percent of new business checking account customers

Regional Banking Highlights for Wachovia

•

Retail bank household cross-sell of Wachovia products of 4.65 products per household

•

Wachovia maintained its very high customer experience levels; scores continued to surpass prior year

Combined Regional Banking

•

Consumer checking accounts up a net 5.8 percent from prior year

•

Business checking accounts up a net 3.9 percent from prior year

•

Opened 70 banking stores in 2009 for retail network total of 6,629; converted 19 Wachovia banking stores in Colorado to Wells Fargo

•

12,363 ATMs across our network, including 3,839 Envelope-FreeSM webATM machines

Online Banking

•

16.7 million combined active online customers

•

4.0 million combined active Bill Pay customers

•

Best Consumer Internet Bank in North America (Global Finance, November 2009)

•		#1 Bank Technology Innovator of the Year, for leadership in person-to-person mobile payments, advances in online and mobile banking, and research in next-generation customer experience (Bank Technology News, December 2009)
•		Wells Fargo Mobile Banking earned “Gold” grade (Javelin Strategy & Research, October 2009)

Wells Fargo Home Mortgage (Home Mortgage)

•

Home Mortgage applications of $144 billion, compared with $123 billion in prior quarter

•

Home Mortgage application pipeline of $57 billion at quarter end, compared with $62 billion at September 30, 2009

•

Home Mortgage originations of $94 billion, essentially flat from $96 billion in prior quarter

•

Owned residential mortgage servicing portfolio of $1.8 trillion

Wholesale Banking provides 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

		Quarter ended
		Dec. 31,				Sept. 30,
(in millions)		2009				2009
Total revenue		$	5,276			$	4,916
Provision for credit losses			950				1,361
Noninterest expense			2,720				2,630
Segment net income			1,011				598
(in billions)
Average loans			239.6				247.0
Average assets			368.9				369.3
Average core deposits			162.6				146.9

Wholesale Banking reported net income of $1.0 billion compared with $598 million in third quarter 2009. Average core deposits were $163 billion, up 42 percent (annualized) from prior quarter, driven by strong growth in government and institutional banking as well as deposits from international customers. Loan loss provision in excess of net charge-offs decreased substantially to $115 million in fourth quarter 2009, from $627 million in third quarter, while net charge-offs increased to $835 million from $733 million last quarter. Of those losses, $167 million related to PCI loans, down from $204 million last quarter. Recoveries from the PCI portfolio that were recorded as revenue totaled $214 million, up from $124 million last quarter.

Middle market banking ranks #1 in market share defined as overall lead relationship penetration. With 112 offices stretched across the country and expanded product and distribution capabilities, we saw tremendous gains in 2009. According to Greenwich Associates, more middle market businesses borrowed from Wells Fargo in 2009 than any other institution, and Wells Fargo established the most new relationships. Commercial banking relationships in the West have achieved an average of 7.8 products per relationship. The conversion of Wachovia regional commercial banking offices to the Wells Fargo operating model is expected to be completed by the end of the first quarter 2010, providing significant opportunities for cross-selling products within the middle market business.

•

Average deposits up 42 percent (annualized) from the prior quarter

•

Government and institutional banking noninterest income up 11 percent driven by better pricing and increased volume in letters of credit, bond issuances and re-marketing

•

Debut of CEO MobileSM iPhone app, which provides alerts to corporate and business customers regarding pending transactions and connects them to online commercial banking services

•

Commercial Banking launched new cleantech banking group dedicated to supporting companies that manufacture, market or develop clean technologies such as solar and wind power, energy and water efficiency, electric and low-emission vehicles, and smart grid applications

•

Integration of Wachovia wholesale businesses on track to meet or exceed expected cost saves and is producing significant new growth opportunities from acquired businesses such as Government and Institutional Banking, Global Finance and Institutional Trade, and Investment Banking and Capital Markets

Wealth, Brokerage and Retirement provides a full range of financial advisory services to clients using a comprehensive planning approach to meet each client’s needs. Wealth Management 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 Wealth 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. Retirement provides retirement services for individual investors and is a national leader in 401(k) and pension record keeping.

Selected Financial Information

		Quarter ended
		Dec. 31,				Sept. 30,
(in millions)		2009				2009
Total revenue		$	2,875			$	2,966
Provision for credit losses			93				234
Noninterest expense			2,542				2,314
Segment net income			131				244
(in billions)
Average loans			44.8				45.4
Average assets			114.7				108.6
Average core deposits			124.4				116.4

Wealth, Brokerage and Retirement reported net income of $131 million, compared with $244 million in prior quarter. The earnings decline was driven by the reserve incurred in connection with the ARS settlement as previously disclosed. Revenue was $2.9 billion, down slightly from prior quarter, as higher asset-based revenues were offset by lower securities gains in the brokerage business. Total provision for credit losses decreased $141 million from prior quarter, largely reflecting a credit reserve build in the third quarter. Noninterest expense was up 10 percent from prior quarter largely due to the ARS reserve. Average core deposits increased $8.0 billion, or 27 percent (annualized), from third quarter, reflecting continued success in attracting client assets, including deposits.

Retail Brokerage

•

Managed account assets up $11 billion, or 6 percent, from prior quarter, including net inflows of $8 billion

•

Solid financial advisor recruiting during the quarter, as brokers who have joined the firm are over two times more productive than those who have left the firm

•

Average sweep deposits up 3 percent from prior quarter

Wealth Management

•

Continued strong deposit growth, with average balances up 11 percent from prior quarter

•

Private banking revenue up 7 percent from prior quarter on continued strong deposit growth

Retirement

•

Retirement plan assets of $285 billion increased $16 billion, or 6 percent, from prior quarter

•

IRA assets of $240 billion up $5 billion, or 2 percent, from prior quarter

Conference Call

The Company will host a live conference call on Wednesday, January 20, at 7:30 a.m. PST (10:30 a.m. EST). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (international). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and
http://event.meetingstream.com/r.htm?e=186436&s=1&k=1D289141D2BE92DD111DC7C959592BB8.

A replay of the conference call will be available beginning at approximately noon PST (3 p.m. EST) on January 20 through Wednesday, January 27. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291 (international) and enter Conference ID #48998396. The replay will also be available online at wellsfargo.com/invest_relations/earnings and
http://event.meetingstream.com/r.htm?e=186436&s=1&k=1D289141D2BE92DD111DC7C959592BB8.

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,” “outlook,” “project” or similar expressions. Forward-looking statements in this news release include, among others, statements about: (i) future credit quality, the adequacy of the allowance for loan losses, the level of nonperforming assets and nonaccrual loans, expected or estimated future losses in our loan portfolios and life-of-loan loss estimates, including our expectations regarding consumer and commercial loan losses in 2010 and that the Pick-a-Pay portfolio will perform better than management’s expectations at the time of the Wachovia merger; (ii) reduction or mitigation of risk in our loan portfolios and the effects of loan modification programs; (iii) the amount and timing of expected integration activities, expenses and cost savings relating to the Wachovia merger, as well as the expected synergies and benefits of the merger, including that we currently estimate merger expenses of less than $5.0 billion and that we currently are on track to achieve $5.0 billion annual run rate cost savings by the expected completion of the integration in 2011; and (iv) the impact on our balance sheet and capital of the consolidation of certain off-balance sheet assets under FAS 166 and FAS 167.

Do not unduly rely on forward-looking statements as actual results could differ materially 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 materially from expectations including: current and future economic and market conditions, including the effects of further declines in housing prices and high unemployment rates; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; the terms of capital investments or other financial assistance provided by the U.S. government; financial services reform; the extent of success in our loan modification efforts; our ability to successfully and timely integrate the Wachovia merger and realize the expected cost savings and other benefits, including delays or disruptions in system conversions and higher severance costs; our ability to realize efficiency initiatives to lower expenses when and in the amount expected; 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 mortgage 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 fluctuations 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, including the implementation of FAS 166 and FAS 167 and its effects on the consolidation of additional assets on our balance sheet and capital; 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, housing prices, and unemployment do not improve. 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 results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including our Quarterly Reports on Form 10-Q for the periods ended March 31, 2009, June 30, 2009, and September 30, 2009, and our Annual Report on Form 10-K for the year ended December 31, 2008, as amended by our Current Report on Form 8-K filed May 11, 2009, including the discussions under “Risk Factors” in each of those reports, as filed with the SEC and available on the SEC’s website at www.sec.gov. Any factor described above or in our SEC reports 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 $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.

# # #

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

		Quarter ended Dec. 31,								Year ended Dec. 31,
($ in millions, except per share amounts)		2009				2008				2009				2008
For the Period
Wells Fargo net income (loss)		$	2,823				(2,734	)			12,275				2,655
Wells Fargo net income (loss) applicable to common stock			394				(3,020	)			7,990				2,369
Diluted earnings (loss) per common share			0.08				(0.84	)			1.75				0.70
Profitability ratios (annualized):
Wells Fargo net income (loss) to average assets (ROA)			0.90	%			(1.72	)			0.97				0.44
Net income (loss) to average assets			0.96				(1.72	)			1.00				0.45
Wells Fargo net income (loss) applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			1.66				(22.32	)			9.88				4.79
Net income (loss) to average total equity			9.24				(15.53	)			10.75				5.02
Efficiency ratio (3)			56.5				61.3				55.3				54.0
Total revenue		$	22,696				9,477				88,686				41,877
Pre-tax pre-provision profit (PTPP) (4)			9,875				3,667				39,666				19,279
Dividends declared per common share			0.05				0.34				0.49				1.30
Average common shares outstanding			4,764.8				3,582.4				4,545.2				3,378.1
Diluted average common shares outstanding			4,796.1				3,593.6				4,562.7				3,391.3
Average loans		$	792,440				413,940				822,833				398,460
Average assets			1,239,456				633,223				1,262,354				604,396
Average core deposits (5)			770,750				344,957				762,461				325,212
Average retail core deposits (6)			580,873				243,464				588,072				234,130
Net interest margin			4.31	%			4.90				4.28				4.83
At Period End
Securities available for sale		$	172,710				151,569				172,710				151,569
Loans			782,770				864,830				782,770				864,830
Allowance for loan losses			24,516				21,013				24,516				21,013
Goodwill			24,812				22,627				24,812				22,627
Assets			1,243,646				1,309,639				1,243,646				1,309,639
Core deposits (5)			780,737				745,432				780,737				745,432
Wells Fargo stockholders’ equity			111,786				99,084				111,786				99,084
Total equity			114,359				102,316				114,359				102,316
Capital ratios:
Wells Fargo common stockholders’ equity to assets			8.34	%			5.21				8.34				5.21
Total equity to assets			9.20				7.81				9.20				7.81
Average Wells Fargo common stockholders’ equity to average assets			7.58				8.50				6.41				8.18
Average total equity to average assets			10.43				11.09				9.34				8.89
Risk-based capital (7):
Tier 1 capital			9.26				7.84				9.26				7.84
Total capital			13.27				11.83				13.27				11.83
Tier 1 leverage (7)			7.87				14.52				7.87				14.52
Book value per common share		$	20.03				16.15				20.03				16.15
Team members (active, full-time equivalent)			267,300				270,800				267,300				270,800
Common stock price:
High		$	31.53				38.95				31.53				44.68
Low			25.00				19.89				7.80				19.89
Period end			26.99				29.48				26.99				29.48

(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, we adopted new accounting guidance on noncontrolling interests on a retrospective basis for disclosure and, accordingly, prior period information reflects the adoption. The guidance requires that noncontrolling interests be reported as a component of total equity.
(3)		The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(4)		Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(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 December 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 2008.

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

		Quarter ended
		Dec. 31,				Sept. 30,				June 30,				Mar. 31,				Dec. 31,
($ in millions, except per share amounts)		2009				2009				2009				2009				2008
For the Quarter
Wells Fargo net income (loss)		$	2,823				3,235				3,172				3,045				(2,734	)
Wells Fargo net income (loss) applicable to common stock			394				2,637				2,575				2,384				(3,020	)
Diluted earnings (loss) per common share			0.08				0.56				0.57				0.56				(0.84	)
Profitability ratios (annualized):
Wells Fargo net income (loss) to average assets (ROA)			0.90	%			1.03				1.00				0.96				(1.72	)
Net income (loss) to average assets			0.96				1.06				1.02				0.97				(1.72	)
Wells Fargo net income (loss) applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			1.66				12.04				13.70				14.49				(22.32	)
Net income (loss) to average total equity			9.24				10.57				11.56				11.97				(15.53	)
Efficiency ratio (3)			56.5				52.0				56.4				56.2				61.3
Total revenue		$	22,696				22,466				22,507				21,017				9,477
Pre-tax pre-provision profit (PTPP) (4)			9,875				10,782				9,810				9,199				3,667
Dividends declared per common share			0.05				0.05				0.05				0.34				0.34
Average common shares outstanding			4,764.8				4,678.3				4,483.1				4,247.4				3,582.4
Diluted average common shares outstanding			4,796.1				4,706.4				4,501.6				4,249.3				3,593.6
Average loans		$	792,440				810,191				833,945				855,591				413,940
Average assets			1,239,456				1,246,051				1,274,926				1,289,716				633,223
Average core deposits (5)			770,750				759,319				765,697				753,928				344,957
Average retail core deposits (6)			580,873				584,414				596,648				590,502				243,464
Net interest margin			4.31	%			4.36				4.30				4.16				4.90
At Quarter End
Securities available for sale		$	172,710				183,814				206,795				178,468				151,569
Loans			782,770				799,952				821,614				843,579				864,830
Allowance for loan losses			24,516				24,028				23,035				22,281				21,013
Goodwill			24,812				24,052				24,619				23,825				22,627
Assets			1,243,646				1,228,625				1,284,176				1,285,891				1,309,639
Core deposits (5)			780,737				747,913				761,122				756,183				745,432
Wells Fargo stockholders’ equity			111,786				122,150				114,623				100,295				99,084
Total equity			114,359				128,924				121,382				107,057				102,316
Capital ratios:
Wells Fargo common stockholders’ equity to assets			8.34	%			7.41				6.51				5.40				5.21
Total equity to assets			9.20				10.49				9.45				8.33				7.81
Average Wells Fargo common stockholders’ equity to average assets			7.58				6.98				5.92				5.17				8.50
Average total equity to average assets			10.43				9.99				8.85				8.11				11.09
Risk-based capital (7):
Tier 1 capital			9.26				10.63				9.80				8.30				7.84
Total capital			13.27				14.66				13.84				12.30				11.83
Tier 1 leverage (7)			7.87				9.03				8.32				7.09				14.52
Book value per common share		$	20.03				19.46				17.91				16.28				16.15
Team members (active, full-time equivalent)			267,300				265,100				269,900				272,800				270,800
Common stock price:
High		$	31.53				29.56				28.45				30.47				38.95
Low			25.00				22.08				13.65				7.80				19.89
Period end			26.99				28.18				24.26				14.24				29.48

(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, we adopted new accounting guidance on noncontrolling interests on a retrospective basis for disclosure and, accordingly, prior period information reflects the adoption. The guidance requires that noncontrolling interests be reported as a component of total equity.
(3)		The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(4)		Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(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 December 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 2008.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

 

		Quarter ended Dec. 31,								Year ended Dec. 31,
(in millions, except per share amounts)		2009				2008				2009				2008
Interest income
Trading assets		$	230				51				918				177
Securities available for sale			2,776				1,534				11,319				5,287
Mortgages held for sale			446				362				1,930				1,573
Loans held for sale			32				14				183				48
Loans			10,122				6,726				41,589				27,632
Other interest income			86				41				335				181
Total interest income			13,692				8,728				56,274				34,898
Interest expense
Deposits			913				845				3,774				4,521
Short-term borrowings			12				204				222				1,478
Long-term debt			1,217				955				5,782				3,756
Other interest expense			50				-				172				-
Total interest expense			2,192				2,004				9,950				9,755
Net interest income			11,500				6,724				46,324				25,143
Provision for credit losses			5,913				8,444				21,668				15,979
Net interest income after provision for credit losses			5,587				(1,720	)			24,656				9,164
Noninterest income
Service charges on deposit accounts			1,421				803				5,741				3,190
Trust and investment fees			2,605				661				9,735				2,924
Card fees			961				589				3,683				2,336
Other fees			990				535				3,804				2,097
Mortgage banking			3,411				(195	)			12,028				2,525
Insurance			482				337				2,126				1,830
Net gains (losses) from trading activities			516				(409	)			2,674				275
Net gains (losses) on debt securities available for sale (includes impairment losses of $162 and $1,012, consisting of $463 and $2,352 of total other-than-temporary impairment losses, net of $301 and $1,340 recognized in other comprehensive income, for the quarter and year ended December 31, 2009, respectively)			110				721				(127	)			1,037
Net gains (losses) from equity investments			273				(608	)			185				(757	)
Operating leases			163				62				685				427
Other			264				257				1,828				850
Total noninterest income			11,196				2,753				42,362				16,734
Noninterest expense
Salaries			3,505				2,168				13,757				8,260
Commission and incentive compensation			2,086				671				8,021				2,676
Employee benefits			1,144				338				4,689				2,004
Equipment			681				402				2,506				1,357
Net occupancy			770				418				3,127				1,619
Core deposit and other intangibles			642				47				2,577				186
FDIC and other deposit assessments			302				57				1,849				120
Other			3,691				1,709				12,494				6,376
Total noninterest expense			12,821				5,810				49,020				22,598
Income (loss) before income tax expense (benefit)			3,962				(4,777	)			17,998				3,300
Income tax expense (benefit)			949				(2,036	)			5,331				602
Net income (loss) before noncontrolling interests			3,013				(2,741	)			12,667				2,698
Less: Net income (loss) from noncontrolling interests			190				(7	)			392				43
Wells Fargo net income (loss)		$	2,823				(2,734	)			12,275				2,655
Wells Fargo net income (loss) applicable to common stock		$	394				(3,020	)			7,990				2,369
Per share information
Earnings (loss) per common share		$	0.08				(0.84	)			1.76				0.70
Diluted earnings (loss) per common share			0.08				(0.84	)			1.75				0.70
Dividends declared per common share			0.05				0.34				0.49				1.30
Average common shares outstanding			4,764.8				3,582.4				4,545.2				3,378.1
Diluted average common shares outstanding			4,796.1				3,593.6				4,562.7				3,391.3