Media		Investors
		Mary Eshet		Jim Rowe
		704-383-7777		415-396-8216

Wednesday, October 20, 2010

•

Record quarterly earnings

	–		Record net income of $3.34 billion; $21.2 billion of cumulative net income since Wachovia merger closed December 31, 2008
	–		Net income applicable to common stock a record $3.15 billion, up 19 percent from prior year and up 9 percent from prior quarter
	–		Diluted earnings per common share of $0.60, up 7 percent from prior year and up 9 percent from prior quarter
	–		Revenue of $20.9 billion; pre-tax pre-provision profit1 of $8.6 billion, included approximately $380 million (pre tax) negative impact from changes to Regulation E and related overdraft policy changes
	–		Noninterest expense of $12.3 billion, down 15 percent (annualized) from prior quarter; third quarter included $476 million of merger integration costs

•

Diverse sources of growth

	–		All business segments contributed to earnings, with Community Banking up 13 percent and Wholesale Banking up 2 percent from prior quarter
	–		Continued strong deposit growth; average checking and savings deposits up 9 percent from prior year, up 9 percent (annualized) from prior quarter; consumer checking accounts grew a net 7.3 percent from prior year
	–		Supplied $176 billion in credit to consumers and businesses during the quarter, up 17 percent linked quarter with growth in mortgage originations, commercial loans and lines of credit, home equity lines and credit card lines
	–		Second highest quarter for mortgage applications ever – $194 billion; mortgage originations of $101 billion, up from $81 billion in prior quarter; application pipeline of $101 billion at September 30, 2010, up from $68 billion at June 30, 2010

¹ See footnote 2 on page 18 for information on pre-tax pre-provision profit.

•

Credit quality improved for third consecutive quarter

	–		Net loan charge-offs of $4.1 billion, down $394 million, or 9 percent from prior quarter, down $1.3 billion, or 24 percent, from fourth quarter 2009 peak
	–		Stable 30+ days past due delinquency trends, improving 90+ days past due trends
	–		Reserve release2 of $650 million (pre tax) reflecting improved portfolio performance; anticipate reserve levels will continue to decline absent significant economic deterioration
	–		Allowance for credit losses equal to 150 percent of annualized net charge-offs

•

Strong capital position on rapid internal capital generation

		Sept. 30,				June 30,				Sept. 30,
		2010 (1)				2010				2009
Tier 1 capital			10.9	%			10.5				10.6
Total capital			14.9				14.5				14.7
Tier 1 leverage			9.0				8.7				9.0
Tier 1 common equity (2)			8.0				7.6				5.2

(1)		September 30, 2010, ratios are preliminary.
(2)		See table on page 39 for more information on Tier 1 common equity.

•

Wachovia integration exceeding expectations

	–		Conversion of first Eastern banking stores completed (Mississippi, Alabama and Tennessee), remaining Eastern store conversions will take place throughout 2010 and 2011
	–		Mutual fund business converted to Wells Fargo Advantage Funds during the quarter
	–		Credit losses lower than original expectations, integration expenses and cost saves on track, revenue synergies growing

•

More than 2.3 million homeowners benefitted from home payment relief through Wells Fargo modifications and refinances from January 2009 through August 31, 2010

	–		532,600 mortgage loan modifications
	–		1.8 million mortgage loans refinanced

² Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

Selected Financial Information

		Quarter ended
		Sept. 30,				June 30,				Sept. 30,
		2010				2010				2009
Earnings
Diluted earnings per common share		$	0.60				0.55				0.56
Wells Fargo net income (in billions)			3.34				3.06				3.24
Asset Quality
Net charge-offs as % of avg. total loans			2.14	%			2.33				2.50
Allowance as a % of total loans			3.23				3.27				3.07
Allowance as a % of annualized net charge-offs			150				139				121
Other
Revenue (in billions)		$	20.87				21.39				22.47
Average loans (in billions)			759.5				772.5				810.2
Average core deposits (in billions)			772.0				761.8				759.3
Net interest margin			4.25	%			4.38				4.36

SAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported diluted earnings per common share of $0.60 for third quarter 2010 compared with $0.55 for second quarter 2010 and $0.56 for third quarter 2009. Net income was $3.34 billion in third quarter 2010 compared with $3.06 billion in second quarter 2010 and $3.24 billion in third quarter 2009. For the nine months ended September 30, 2010, net income was $8.95 billion, or $1.60 per common share, compared with $9.45 billion, or $1.69 per common share, a year ago.

“Record earnings in the third quarter reflect the success of the Wachovia merger and the benefits of Wells Fargo’s steady commitment to our core business of helping customers succeed financially,” said Chairman and CEO John Stumpf. “We have already completed integration of many systems and lines of business, and converted banking stores in the first Eastern markets – Alabama, Tennessee and Mississippi – to Wells Fargo in September, with virtually no customer or systems issues. The foundation is solidly in place to continue conversions in the East this year and throughout 2011. While we are focused on the remaining work ahead, our results have shown that this landmark merger is a big success in terms of cost savings, revenue synergies and the quality of the integration. Throughout the conversion process, the team has kept systems and service top notch for customers.

“With respect to recent industry-wide foreclosure issues, there are several important facts to know about Wells Fargo. Foreclosure is always a last resort, and we work hard to find other solutions through multiple discussions with customers over many months before proceeding to foreclosure. We are confident that our practices, procedures and documentation for both foreclosures and mortgage securitizations are sound and accurate. For these reasons, we did not, and have no plans to, initiate a moratorium on foreclosures.

“As the regulatory environment becomes more certain and as we continue to assess the impact of regulatory reform and new capital requirements, we remain convinced that Wells Fargo will continue to be a leader in financial strength and performance in the years ahead. We continue to deepen relationships and add new customers, as evidenced by increases in loan commitments in several loan portfolios and growth in checking accounts. Our team is focused on doing the right thing for our customers and doing everything in our power to further the economic recovery.”

Financial Performance
“In the third quarter, we earned $3.34 billion in net income, our highest quarterly profit ever,” said Chief Financial Officer Howard Atkins. “Earnings and growth were broad based, with all business segments contributing to our record net income. Deposit growth continued to be strong, especially in average checking and savings deposits, which increased 9 percent from a year ago and 9 percent (annualized) linked quarter. The Company supplied $176 billion in credit to consumers and businesses, up from both the prior quarter and a year ago, reflecting strong mortgage origination activity and increased commercial lending activity. A substantial amount of the decline in loans outstanding was in previously disclosed non-strategic, liquidating portfolios. We saw signs of increased lending activity in several portfolios, with higher loan balances linked quarter in asset-backed finance, auto dealer services, capital finance, private student lending, SBA lending, specialized lending, wealth management consumer, and wholesale commercial banking and commercial real estate. Credit losses continued to trend down, with net charge-offs declining 9 percent linked quarter, and down $1.3 billion, or 24 percent, from the peak in fourth quarter 2009.

“The merger with Wachovia is already proving to be a big success. Wells Fargo has earned cumulative profits of $21.2 billion since January 2009. The merger of these two companies has met or exceeded our expectations in terms of lower credit losses, more abundant revenue synergies and integration savings. Through strong internal capital generation, our capital ratios have increased rapidly and are well above pre-Wachovia levels, with Tier 1 common reaching 8.0 percent and Tier 1 capital increasing to 10.9 percent. While Basel III regulations are still not final, we expect to be above a 7 percent Tier 1 common ratio under the proposed rules, as we currently understand them, within the next few quarters.”

Revenue
Revenue was $20.9 billion compared with $21.4 billion in second quarter 2010 and $22.5 billion in third quarter 2009. The $520 million decline in total revenue linked quarter was due to three factors totaling $985 million: net debt and equity security gains (down $301 million from second quarter), PCI loan resolution income (down $304 million from second quarter) and the impact from changes to Regulation E and related overdraft policy changes (approximately $380 million pre tax). All other business operations generated combined revenue growth of approximately $465 million. Businesses with double-digit annualized revenue growth linked quarter included asset-backed finance, asset management, auto dealer

services, brokerage, commercial banking, commercial mortgage servicing, commercial real estate, debit card, mortgage banking, private student lending, real estate investment banking (Eastdil Secured) and retirement services.

Net Interest Income
Net interest income was $11.1 billion compared with $11.4 billion in second quarter 2010 and $11.7 billion in third quarter 2009. The net interest margin was 4.25 percent compared with 4.38 percent in second quarter 2010 and 4.36 percent in third quarter 2009. “The 13 basis point decline in the margin was largely driven by lower PCI resolution income and the continued run-off of non-strategic assets, which tend to have higher yields but also higher charge-offs than loans in our ongoing strategic portfolios,” said Atkins.

Noninterest Income
Noninterest income was $9.8 billion compared with $9.9 billion in second quarter and $10.8 billion a year ago. On a linked-quarter basis, growth in mortgage banking noninterest income (up $488 million on a 25 percent increase in mortgage originations) and trading revenue (up $361 million, driven by a less volatile trading environment than second quarter) was offset by reductions in deposit service charges (down $285 million, with an approximate $380 million impact from changes to Regulation E and related overdraft policy changes, offset by checking account growth), a $301 million reduction in net debt and equity security gains from second quarter, and a $147 million reduction in insurance fee revenue (due to seasonality and largely offset by reduction in related insurance sales expense).

Mortgage banking saw the second highest quarter ever in mortgage applications – $194 billion, up from $143 billion in second quarter. At quarter end, the mortgage application pipeline was $101 billion, up $33 billion from June 30, 2010, suggesting strong originations in fourth quarter. Third quarter originations were $101 billion, up 25 percent from second quarter. Mortgage servicing income declined $702 million from second quarter, given greater reliance on the Company’s “natural business hedge” in the strong origination, low-rate environment relative to the level of MSR economic hedges, and lower hedge carry income. Net hedge results reflected a $1.1 billion decline in the fair value of MSRs due to the decline in mortgage rates offset by a $1.2 billion increase in the value of the hedge including carry income. The ratio of MSRs as a percent of loans serviced for others was 72 basis points – one of the lowest in the Company’s history – and the average note rate on the servicing portfolio was 5.46 percent, compared with an average 4.32 percent published rate in the Freddie Mac Primary Mortgage Market Survey at quarter-end.

During the quarter, the Company provided $370 million for mortgage loan repurchase losses compared with $382 million in second quarter (included in revenue from mortgage loan origination/sales activities). The lower provision this quarter reflected a decline in demands from agencies on the 2006-2008 vintages and lower total outstanding demands as the Company continues to work with investors to resolve the outstanding demand pipeline.

At September 30, 2010, the Company had a net unrealized gain of $9.4 billion in the securities available-for-sale portfolio, compared with $8.6 billion at the end of second quarter.

Noninterest Expense
Noninterest expense was $12.3 billion, down $493 million, or 15 percent (annualized), from second quarter 2010 largely due to a reduction in Wells Fargo Financial restructuring expenses and lower litigation accruals. Foreclosed asset expense was up $33 million linked quarter and $123 million year over year. “We continue to invest for long-term growth, including adding sales personnel and distribution, while at the same time reducing all other costs,” said Atkins. “Our current expense base is elevated by integration and workout costs, which should decline over time. In addition, we are looking at other ways to reduce cost by simplifying and streamlining our activities and processes throughout the Company.” The efficiency ratio was 58.7 percent compared with 59.6 percent in second quarter 2010 and 52.0 percent in third quarter 2009.

Loans
Total loans were $753.7 billion at September 30, 2010 compared with $766.3 billion at June 30, 2010 and $800.0 billion at September 30, 2009, reflecting a continuation of more subdued loan demand. The decline in loans from the prior quarter was partially due to the $6.2 billion reduction in non-strategic/liquidating loan portfolios. “We saw linked-quarter loan growth in asset-backed finance, auto dealer services, capital finance, private student lending, specialized lending, SBA lending, wealth management consumer and wholesale commercial banking and commercial real estate,” said Atkins. “While other consumer portfolios declined, the reduction was at a slower pace, including in the credit card, personal credit management and Wells Fargo Home Mortgage portfolios. Origination activity increased in wholesale and commercial real estate portfolios.”

Deposits
Average total core deposits were $772.0 billion, up 5 percent (annualized) from $761.8 billion in second quarter 2010 and up 2 percent from $759.3 billion in third quarter 2009. Consumer checking accounts grew a net 7.3 percent from third quarter 2009. Average mortgage escrow deposits were $30.2 billion, compared with $25.7 billion in second quarter 2010. Average consumer checking and savings deposits increased 9 percent from a year ago to $686.9 billion. Total core deposits were up $23.9 billion from a year ago despite the $37.6 billion year over year decline in CDs, including approximately $21 billion of higher-cost Wachovia CDs that matured. Checking and savings deposits represented 89 percent of total core deposits. The average deposit cost was 35 basis points.

Capital
Strong internal capital generation drove capital ratios higher in the third quarter. As a percentage of total risk-weighted assets, Tier 1 capital increased to 10.9 percent, total capital to 14.9 percent and Tier 1 common equity to 8.0 percent at September 30, 2010, up from 10.6 percent, 14.7 percent and 5.2 percent, respectively, at September 30, 2009. The Tier 1 leverage ratio was 9.0 percent at September 30, 2010, flat compared with September 30, 2009.

Credit Quality
“Loan losses declined for the third consecutive quarter,” said Mike Loughlin, Chief Risk Officer. “Quarterly net charge-offs of $4.1 billion were down $394 million, or 9 percent, from second quarter and down $1.3 billion from the peak in fourth quarter 2009. Losses were down or relatively flat in the vast majority of loan portfolios, with losses in commercial loans (down 26 percent), commercial real estate mortgage loans (down 39 percent), credit cards (down 13 percent), and real estate 1-4 family junior lien mortgages (down 8 percent) showing encouraging declines. The improvement in credit quality was also evident in the purchased credit-impaired (PCI) portfolio, which consists of loans acquired through the Wachovia merger that were deemed to have probable loss and therefore written down at acquisition. Overall, the PCI portfolio continued to perform in line with or better than originally expected.

“Nonperforming loans increased moderately, with a majority of the increase in the commercial loan portfolio. Nonperforming consumer loans were stable to improved. We expect nonperforming assets to remain elevated as we manage through the economic cycle. The provision for loan losses was $650 million less than net charge-offs, reflecting improved portfolio performance. Absent significant deterioration in the economy, we currently expect future reductions in the allowance for loan losses.”

Credit Losses
Third quarter net charge-offs were $4.1 billion, or 2.14 percent (annualized) of average loans, down from second quarter net charge-offs of $4.5 billion (2.33 percent). Third quarter losses were down $1 billion, or 20 percent, from third quarter 2009 (as shown on page 37 of the financial tables). Total net credit losses included $1 billion of commercial and commercial real estate losses (1.42 percent), down $288 million from second quarter, and $3.0 billion of consumer losses (2.72 percent), down $103 million from second quarter, as shown in the following table.

- 8 -

Net Loan Charge-Offs

		Quarter ended
		September 30, 2010								June 30, 2010								March 31, 2010
		Net loan				As a % of				Net loan				As a % of				Net loan				As a % of
		charge-				average				charge-				average				charge-				average
($ in millions)		offs				loans (1)				offs				loans (1)				offs				loans (1)
Commercial and commercial real estate:
Commercial		$	509				1.38	%		$	689				1.87	%		$	650				1.68	%
Real estate mortgage			218				0.87				360				1.47				271				1.12
Real estate construction			276				3.72				238				2.90				394				4.45
Lease financing			23				0.71				27				0.78				29				0.85
Total commercial and commercial real estate			1,026				1.42				1,314				1.80				1,344				1.79
Consumer:
Real estate 1-4 family first mortgage			1,034				1.78				1,009				1.70				1,311				2.17
Real estate 1-4 family junior lien mortgage			1,085				4.30				1,184				4.62				1,449				5.56
Credit card			504				9.06				579				10.45				643				11.17
Other revolving credit and installment			407				1.83				361				1.64				547				2.45
Total consumer			3,030				2.72				3,133				2.79				3,950				3.45
Foreign			39				0.52				42				0.57				36				0.52
Total		$	4,095				2.14	%		$	4,489				2.33	%		$	5,330				2.71	%

     

(1)		Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 31 of the accounting for purchased credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.

Nonperforming assets increased as expected, ending the quarter at $34.6 billion. Growth in nonaccrual loans continued to be slight, up 2 percent from second quarter, to $28.3 billion. The growth in third quarter nonaccruals occurred primarily in commercial loans, while nonaccruals in consumer and consumer real estate loan portfolios were essentially flat or down.

Commercial and commercial real estate nonperforming loans were up approximately $400 million from the second quarter. “We continue to manage the portfolio aggressively and assist our borrowers as they navigate through this challenging credit environment,” said Loughlin. “We place loans on nonaccrual when appropriate, continue to monitor these credits closely and take appropriate action as necessary. Measurable loss on nonaccrual loans has already been taken and we believe adequate collateral and reserves are in place to mitigate further loss events.”

While nonaccrual loans are not free of loss content, the loss exposure remaining in these balances is expected to be significantly mitigated by four factors. First, 99 percent of consumer nonaccrual loans and 96 percent of commercial nonaccruals are secured. Second, losses have already been recognized on 40 percent of the consumer nonaccruals and commercial nonaccruals have been written down by $2.9 billion. Residential nonaccrual loans are generally written down to net realizable value at 180 days past due. Third, as of September 30, 2010, 58 percent of commercial nonaccrual loans were current on interest. Fourth, the inherent risk of loss in all nonaccruals is adequately covered by the allowance for loan losses.

Foreclosed assets were $6.1 billion at September 30, 2010, up $1.1 billion from second quarter of which $509 million was due to transfers from PCI portfolios, and $148 million from an increase in fully insured GNMA loans. Non-GNMA foreclosed assets increased as more distressed loans reached the final stage of the resolution process. Over 44 percent of the increase came from the commercial PCI and Pick-a-Pay portfolios as the impaired loans in these segments reach final dispositions. “Given the current levels of nonaccruing loans, we would expect a higher than normal inflow into foreclosed assets over the near term as we resolve these loans,” said Loughlin. “The outflow should continue to increase as we liquidate the assets over time. While total foreclosed assets increased, the majority of the projected loss content in these assets has already been accounted for, or are government insured, and should have limited additional impact to expected loss levels.”

     

		September 30, 2010								June 30, 2010								March 31, 2010
						As a								As a								As a
						% of								% of								% of
		Total				total				Total				total				Total				total
($ in millions)		balances				loans				balances				loans				balances				loans
Commercial and commercial real estate:
Commercial		$	4,103				2.79	%		$	3,843				2.63	%		$	4,273				2.84	%
Real estate mortgage			5,079				5.14				4,689				4.71				4,345				4.44
Real estate construction			3,198				11.46				3,429				11.10				3,327				9.64
Lease financing			138				1.06				163				1.21				185				1.33
Total commercial and
commercial real estate			12,518				4.36				12,124				4.18				12,130				4.09
Consumer:
Real estate 1-4 family first mortgage			12,969				5.69				12,865				5.50				12,347				5.13
Real estate 1-4 family junior lien mortgage			2,380				2.40				2,391				2.36				2,355				2.27
Other revolving credit and installment			312				0.35				316				0.36				334				0.37
Total consumer			15,661				3.58				15,572				3.49				15,036				3.30
Foreign			126				0.42				115				0.38				135				0.48
Total nonaccrual loans			28,305				3.76				27,811				3.63				27,301				3.49
Foreclosed assets:
GNMA loans			1,492								1,344								1,111
All other			4,635								3,650								2,970
Total foreclosed assets			6,127								4,994								4,081
Real estate and other nonaccrual investments			141								131								118
Total nonaccrual loans and other nonperforming assets		$	34,573				4.59	%		$	32,936				4.30	%		$	31,500				4.03	%
Change from prior quarter:
Total nonaccrual loans		$	494							$	510							$	2,883
Total nonperforming assets			1,637								1,436								3,861

Loans 90 days or more past due and still accruing also improved in the quarter, totaling $18.8 billion at September 30, 2010, compared with $19.4 billion at June 30, 2010. For the same periods, the totals included $14.5 billion and $14.4 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 Veterans Affairs. Commercial and

commercial real estate loans 90 days or more past due and still accruing improved significantly, down $648 million, or 39 percent, from the prior quarter.

The allowance for credit losses, including the reserve for unfunded commitments, totaled $24.4 billion at September 30, 2010, down from $25.1 billion at June 30, 2010. The allowance coverage to total loans was 3.23 percent, essentially flat compared with 3.27 percent at June 30, 2010. The allowance covered 1.5 times annualized third quarter net charge-offs compared with 1.4 times in the prior quarter. The allowance coverage to nonaccrual loans was 86 percent at September 30, 2010, compared with 90 percent at June 30, 2010. “We believe the allowance was adequate for losses inherent in the loan portfolio at September 30, 2010, and continues to reflect prudent acknowledgement of uncertainty in the economic environment,” said Loughlin.

Additional detail on credit quality and trends is included in the quarterly supplement, available on the Investor Relations page at www.wellsfargo.com/invest_relations/investor_relations/

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 Sept. 30,
(in millions)		2010				2009				% Change
Community Banking		$	2,002				2,736				(27)	%
Wholesale Banking			1,445				594				143
Wealth, Brokerage and Retirement			256				111				131

More financial information about the business segments is on pages 40 and 41.

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 Sept. 30,
(in millions)		2010				2009				% Change
Total revenue		$	13,587				15,550				(13	)	%
Provision for credit losses			3,165				4,635				(32	)
Noninterest expense			7,356				7,034				5
Segment net income			2,002				2,736				(27	)
(in billions)
Average loans			527.0				553.2				(5	)
Average assets			778.1				804.9				(3	)
Average core deposits			535.7				550.2				(3	)

Community Banking reported net income of $2 billion, up $236 million, or 13 percent, from second quarter 2010. Revenue decreased $140 million, or 1 percent, driven primarily by lower deposit service charges due to changes to Regulation E and the planned reduction in certain liquidating loan portfolios, mitigated by an increase in mortgage banking income, as higher originations/sales activities more than offset lower servicing income (decline in mortgage rates). Noninterest expense decreased $355 million, or 5 percent, driven primarily by lower litigation expense as well as severance costs associated with the restructuring of Wells Fargo Financial in the prior quarter. Average loans of $527 billion decreased 2 percent and average core deposits of $536 billion grew 0.4 percent. The provision for credit losses decreased $192 million primarily due to lower net charge-offs.

Community Banking reported net income of $2 billion, down $734 million, or 27 percent from prior year. Revenue decreased 13 percent year over year largely due to lower mortgage banking income, lower deposit service charges due to changes to Regulation E, and the planned reduction in certain liquidating loan portfolios. Noninterest expense increased $322 million, or 5 percent, from prior year due primarily to higher litigation expense. The provision for credit losses decreased $1.5 billion from third quarter 2009 on lower net charge-offs across consumer portfolios and improved credit quality metrics.

Regional Banking Highlights

•

Strong growth in checking accounts (combined Regional Banking)

	-		Consumer checking accounts up a net 7.3 percent from prior year
	-		Business checking accounts up a net 5.0 percent from prior year
	-		Consumer checking accounts up a net 8.3 percent in California, 11.2 percent in New Jersey and 9.0 percent in Florida

•

Solutions growth in third quarter

-

Legacy Wells Fargo footprint including converted Wachovia:

o

Core product solutions (sales) of 7.81 million, up 14 percent from prior year

	o		Core sales per platform banker FTE (active, full-time equivalent) of 5.99 per day, up from 5.88 in prior year
	o		Sales of Wells Fargo Packages® (a checking account and at least three other products) up 16 percent from prior year, purchased by 81 percent of new checking account customers

-

Eastern footprint including converted Wachovia:

o

Platform banker FTEs grew by more than 1,250, or 14 percent, in the first nine months of 2010, with planned additions throughout the remainder of 2010

•

Continued retail bank household cross-sell growth

	-		Legacy Wells Fargo: record retail bank household cross-sell of Wells Fargo products of 6.08 products per household
	-		Wachovia: retail bank household cross-sell of Wachovia products continued to grow to 4.91 products per household

•

Customer experience (combined Regional Banking)

	-		More than 195,000 customers were contacted about their experience in Wells Fargo stores and over 51,000 customers spoke about their experience in the contact centers
	-		Nearly 8 out of 10 customers were “extremely satisfied,” the highest rating, with their recent call or visit with Wells Fargo

•

Continued focus on distribution

	-		Converted 193 Wachovia banking stores in Texas and Kansas in July 2010 and 170 in Alabama, Mississippi and Tennessee in late September 2010
	-		Opened 13 banking stores in third quarter for retail network total of 6,335 stores
	-		Converted 941 ATMs to Envelope-FreeSM webATM machines in third quarter

•

Small Business/Business Banking

	-		Store-based business solutions up 25 percent from prior year (legacy Wells Fargo footprint including converted Wachovia)
	-		Sales of Wells Fargo Business Services Packages (business checking account and at least three other business products) up 41 percent from prior year, purchased by 64 percent of new business checking account customers (legacy Wells Fargo footprint including converted Wachovia)
	-		Business Banking household cross-sell of 3.97 products per household (legacy Wells Fargo footprint, including Wells Fargo and Wachovia customers)
	-		Extended $10.5 billion in new small business loans through September 2010, including $3.9 billion in third quarter. Though demand for small business loans continued to be soft, saw improvement with new loan volume increasing 17 percent from third quarter of 2009.
	-		America’s #1 small business lender (in both loans under $100,000 and under $1,000,000) and #1 lender to small businesses in low-and moderate-income areas, according to 2009 Community Reinvestment Act (CRA) data

-

#1 national SBA 7a lender in dollar volume for 2010 fiscal year

•

Online and mobile banking

	-		17.9 million combined active online customers
	-		4.1 million combined active mobile customers
	-		Ranked Best Consumer Internet Bank and Best Corporate/Institutional Internet Bank in the U.S. (Global Finance, August 2010)
	-		Mobile banking services earned a Gold ranking in the Javelin Strategy & Research “2010 Mobile Banking Scorecard” (August 2010)

Wells Fargo Home Mortgage (Home Mortgage)

•		Home Mortgage applications of $194 billion, up from $143 billion in prior quarter
•		Home Mortgage application pipeline of $101 billion at September 30, 2010, up from $68 billion at June 30, 2010
•		Home Mortgage originations of $101 billion, up from $81 billion in prior quarter
•		Owned residential mortgage servicing portfolio of $1.8 trillion at September 30, 2010
•		2.3 million homeowners benefitted from home payment relief through modifications and refinances (January 2009 through August 31, 2010)

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 Sept. 30,
(in millions)		2010				2009				% Change
Total revenue		$	5,248				4,934				6		%
Provision for credit losses			270				1,368				(80	)
Noninterest expense			2,696				2,647				2
Segment net income			1,445				594				143
(in billions)
Average loans			222.5				247.0				(10	)
Average assets			363.7				368.4				(1	)
Average core deposits			172.2				146.8				17

Wholesale Banking reported net income of $1.4 billion, up $851 million, or 143 percent, from third quarter 2009 and up $33 million, or 2 percent, from the prior quarter. Revenue increased $314 million, or 6 percent, from prior year as growth in commercial mortgage origination and servicing, commercial real estate, Wells Fargo Capital Finance and recoveries in the PCI portfolio more than offset declines in capital markets-related trading revenues. Revenue decreased 7 percent linked quarter related to seasonality in

rural crop insurance as well as lower recoveries in the PCI portfolio. Noninterest expense increased $49 million, or 2 percent, from prior year related to higher foreclosed asset and personnel expenses. Total provision for credit losses of $270 million declined $1.1 billion, or 80 percent, from third quarter 2009. The decrease included a $250 million reserve release in the current quarter compared with a $627 million credit reserve build a year ago.

•		Average core deposits up 17 percent from prior year and up 7 percent from prior quarter
•		Strong linked quarter average loan balance growth in asset-backed finance and global financial institutions portfolios
•		New loan commitments in commercial real estate up 265 percent from prior year and up 44 percent from prior quarter as economy begins to recover
•		Wells Fargo Shareowner ServicesSM ranked #1 in overall customer satisfaction and client loyalty in Group 5’s survey of public companies
•		CEO Mobile® named one of the five best mobile banking applications by Bank Technology News

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 Sept. 30,
(in millions)		2010				2009				% Change
Total revenue		$	2,912				2,768				5		%
Provision for credit losses			77				233				(67	)
Noninterest expense			2,420				2,333				4
Segment net income			256				111				131
(in billions)
Average loans			42.6				45.4				(6	)
Average assets			138.2				129.8				6
Average core deposits			120.7				116.3				4

Wealth, Brokerage and Retirement reported net income of $256 million, down $14 million, or 5 percent, from prior quarter, and up $145 million, or 131 percent, from prior year. Revenue was $2.9 billion, up 5 percent from the prior year, as higher asset-based revenue partially offset lower transactional revenue and securities gains in the brokerage business. Total provision for credit losses decreased $156 million from the prior year, largely reflecting a credit reserve build in the third quarter of last year. Noninterest expense was up 4 percent from the prior year due to growth in broker commissions driven by higher production levels. Average core deposits increased $4 billion, or 4 percent, from the prior year.

Retail Brokerage

•		Client assets of $1.1 trillion, up 4 percent from prior year
•		Managed account assets increased $33 billion, or 18 percent, from prior year driven by the market recovery and solid net flows

Wealth Management

•

Strong deposit growth, with average balances up 8 percent from prior year

Retirement

•		Institutional Retirement plan assets of $221 billion, up $17 billion, or 8 percent, from prior year
•		IRA assets of $254 billion, up $20 billion, or 8 percent, from prior year

Conference Call

The Company will host a live conference call on Wednesday, October 20, at 6:30 a.m. PDT (9:30 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1692 (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=240281&s=1&k=9E85E58A6C441E015358F44355F5C3CD.

A replay of the conference call will also be available beginning at approximately noon PDT (3 p.m. EDT) on October 20 through Wednesday, October 27. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291 (international) and enter Conference ID 99255853. The replay will also be available online.

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,” “appears” or similar expressions. Forward-looking statements in this news release include, among others, statements about: (i) future credit quality and expected or estimated future loan losses in our loan portfolios; the level and loss content of nonperforming assets and nonaccrual loans, as well as the level of inflows and outflows into nonperforming assets; and the adequacy of the allowance for loan losses, including our current expectation of future reductions in the allowance for loan losses; (ii) reduction or mitigation of risk in our loan portfolios; (iii) our expectation that we will be at a 7 percent Tier 1 common ratio under proposed Basel III capital regulations within the next few quarters; (iv) our foreclosure practices and related matters; and (v) 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.

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 (including, without limitation, regulatory capital standards as determined by applicable regulatory authorities); financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses (including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act); the extent of success in our loan modification efforts, including the effects of regulatory requirements, or changes in regulatory requirements, relating to loan

modifications; the amount of mortgage loan repurchase demands from third parties; 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; changes in our credit ratings and changes in the credit ratings of our customers or counterparties; 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 Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, and June 30, 2010, 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 (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.2 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With more than 278,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked #19 on Fortune’s 2009 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

# # #

 - 17 -

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS

		Pages
Summary Information
Summary Financial Data			18-19
Income
Consolidated Statement of Income			20-21
Average Balances, Yields and Rates Paid			22-23
Noninterest Income and Noninterest Expense			24-25
Balance Sheet
Consolidated Balance Sheet			26-27
Average Balances			28
Loans
Loans			29
Nonaccrual Loans and Other Nonperforming Assets			29
Loans 90 Days or More Past Due and Still Accruing			30
Purchased Credit-Impaired Loans			31-33
Pick-A-Pay Portfolio			34
Home Equity Portfolios			35
Allowance for Credit Losses			36-37
Equity
Condensed Consolidated Statement of Changes in Total Equity			38
Tier 1 Common Equity			39
Operating Segments
Operating Segment Results			40-41
Other
Mortgage Servicing and other related data			42-44

 - 18 -

Wells Fargo & Company and Subsidiaries

		Quarter ended Sept. 30,								%				Nine months ended Sept. 30,								%
($ in millions, except per share amounts)		2010				2009				Change				2010				2009				Change
For the Period
Wells Fargo net income		$	3,339				3,235				3	%		$	8,948				9,452				(5	)	%
Wells Fargo net income applicable to common stock			3,150				2,637				19				8,400				7,596				11
Diluted earnings per common share			0.60				0.56				7				1.60				1.69				(5	)
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)			1.09	%			1.03				6				0.98				1.00				(2	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			10.90				12.04				(9	)			10.11				13.29				(24	)
Efficiency ratio (1)			58.7				52.0				13				58.3				54.9				6
Total revenue		$	20,874				22,466				(7	)		$	63,716				65,990				(3	)
Pre-tax pre-provision profit (PTPP) (2)			8,621				10,782				(20	)			26,600				29,791				(11	)
Dividends declared per common share			0.05				0.05				-				0.15				0.44				(66	)
Average common shares outstanding			5,240.1				4,678.3				12				5,216.9				4,471.2				17
Diluted average common shares outstanding			5,273.2				4,706.4				12				5,252.9				4,485.3				17
Average loans		$	759,483				810,191				(6	)		$	776,305				833,076				(7	)
Average assets			1,220,368				1,246,051				(2	)			1,223,535				1,270,071				(4	)
Average core deposits (3)			771,957				759,319				2				764,345				759,668				1
Average retail core deposits (4)			571,062				584,414				(2	)			572,567				590,499				(3	)
Net interest margin			4.25	%			4.36				(3	)			4.30				4.27				1
At Period End
Securities available for sale		$	176,875				183,814				(4	)		$	176,875				183,814				(4	)
Loans			753,664				799,952				(6	)			753,664				799,952				(6	)
Allowance for loan losses			23,939				24,028				-				23,939				24,028				-
Goodwill			24,831				24,052				3				24,831				24,052				3
Assets			1,220,784				1,228,625				(1	)			1,220,784				1,228,625				(1	)
Core deposits (3)			771,792				747,913				3				771,792				747,913				3
Wells Fargo stockholders’ equity			123,658				122,150				1				123,658				122,150				1
Total equity			125,165				128,924				(3	)			125,165				128,924				(3	)
Capital ratios:
Total equity to assets			10.25	%			10.49				(2	)			10.25				10.49				(2	)
Risk-based capital (5):
Tier 1 capital			10.90				10.63				3				10.90				10.63				3
Total capital			14.88				14.66				2				14.88				14.66				2
Tier 1 leverage (5)			9.01				9.03				-				9.01				9.03				-
Tier 1 common equity (6)			8.01				5.18				55				8.01				5.18				55
Book value per common share		$	22.04				19.46				13			$	22.04				19.46				13
Team members (active, full-time equivalent)			266,900				265,100				1				266,900				265,100				1
Common stock price:
High		$	28.77				29.56				(3	)		$	34.25				30.47				12
Low			23.02				22.08				4				23.02				7.80				195
Period end			25.12				28.18				(11	)			25.12				28.18				(11	)

(1)		The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)		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.
(3)		Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(4)		Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(5)		The September 30, 2010, ratios are preliminary.
(6)		See page 39 for additional information.

 - 19 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

		Quarter ended
		Sept. 30,				June 30,				Mar. 31,				Dec. 31,				Sept. 30,
($ in millions, except per share amounts)		2010				2010				2010				2009				2009
For the Quarter
Wells Fargo net income		$	3,339				3,062				2,547				2,823				3,235
Wells Fargo net income applicable to common stock			3,150				2,878				2,372				394				2,637
Diluted earnings per common share			0.60				0.55				0.45				0.08				0.56
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)			1.09	%			1.00				0.84				0.90				1.03
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			10.90				10.40				8.96				1.66				12.04
Efficiency ratio (1)			58.7				59.6				56.5				56.5				52.0
Total revenue		$	20,874				21,394				21,448				22,696				22,466
Pre-tax pre-provision profit (PTPP) (2)			8,621				8,648				9,331				9,875				10,782
Dividends declared per common share			0.05				0.05				0.05				0.05				0.05
Average common shares outstanding			5,240.1				5,219.7				5,190.4				4,764.8				4,678.3
Diluted average common shares outstanding			5,273.2				5,260.8				5,225.2				4,796.1				4,706.4
Average loans		$	759,483				772,460				797,389				792,440				810,191
Average assets			1,220,368				1,224,180				1,226,120				1,239,456				1,246,051
Average core deposits (3)			771,957				761,767				759,169				770,750				759,319
Average retail core deposits (4)			571,062				574,436				573,653				580,873				584,414
Net interest margin			4.25	%			4.38				4.27				4.31				4.36
At Quarter End
Securities available for sale		$	176,875				157,927				162,487				172,710				183,814
Loans			753,664				766,265				781,430				782,770				799,952
Allowance for loan losses			23,939				24,584				25,123				24,516				24,028
Goodwill			24,831				24,820				24,819				24,812				24,052
Assets			1,220,784				1,225,862				1,223,630				1,243,646				1,228,625
Core deposits (3)			771,792				758,680				756,050				780,737				747,913
Wells Fargo stockholders’ equity			123,658				119,772				116,142				111,786				122,150
Total equity			125,165				121,398				118,154				114,359				128,924
Capital ratios:
Total equity to assets			10.25	%			9.90				9.66				9.20				10.49
Risk-based capital (5):
Tier 1 capital			10.90				10.51				9.93				9.25				10.63
Total capital			14.88				14.53				13.90				13.26				14.66
Tier 1 leverage (5)			9.01				8.66				8.34				7.87				9.03
Tier 1 common equity (6)			8.01				7.61				7.09				6.46				5.18
Book value per common share		$	22.04				21.35				20.76				20.03				19.46
Team members (active, full-time equivalent)			266,900				267,600				267,400				267,300				265,100
Common stock price:
High		$	28.77				34.25				31.99				31.53				29.56
Low			23.02				25.52				26.37				25.00				22.08
Period end			25.12				25.60				31.12				26.99				28.18

(1)		The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)		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.
(3)		Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(4)		Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(5)		The September 30, 2010, ratios are preliminary.
(6)		See page 39 for additional information.

 - 20 -

Wells Fargo & Company and Subsidiaries

		Quarter ended Sept. 30,								%				Nine months ended Sept. 30,								%
(in millions, except per share amounts)		2010				2009				Change				2010				2009				Change
Interest income
Trading assets		$	270				216				25	%		$	803				688				17		%
Securities available for sale			2,492				2,947				(15	)			7,292				8,543				(15	)
Mortgages held for sale			449				524				(14	)			1,241				1,484				(16	)
Loans held for sale			22				34				(35	)			86				151				(43	)
Loans			9,779				10,170				(4	)			30,094				31,467				(4	)
Other interest income			118				77				53				311				249				25
Total interest income			13,130				13,968				(6	)			39,827				42,582				(6	)
Interest expense
Deposits			721				905				(20	)			2,170				2,861				(24	)
Short-term borrowings			27				32				(16	)			66				210				(69	)
Long-term debt			1,226				1,301				(6	)			3,735				4,565				(18	)
Other interest expense			58				46				26				162				122				33
Total interest expense			2,032				2,284				(11	)			6,133				7,758				(21	)
Net interest income			11,098				11,684				(5	)			33,694				34,824				(3	)
Provision for credit losses			3,445				6,111				(44	)			12,764				15,755				(19	)
Net interest income after provision for credit losses			7,653				5,573				37				20,930				19,069				10
Noninterest income
Service charges on deposit accounts			1,132				1,478				(23	)			3,881				4,320				(10	)
Trust and investment fees			2,564				2,502				2				7,976				7,130				12
Card fees			935				946				(1	)			2,711				2,722				-
Other fees			1,004				950				6				2,927				2,814				4
Mortgage banking			2,499				3,067				(19	)			6,980				8,617				(19	)
Insurance			397				468				(15	)			1,562				1,644				(5	)
Net gains from trading activities			470				622				(24	)			1,116				2,158				(48	)
Net losses on debt securities available for sale			(114	)			(40	)			185				(56	)			(237	)			(76	)
Net gains (losses) from equity investments			131				29				352				462				(88	)		NM
Operating leases			222				224				(1	)			736				522				41
Other			536				536				-				1,727				1,564				10
Total noninterest income			9,776				10,782				(9	)			30,022				31,166				(4	)
Noninterest expense
Salaries			3,478				3,428				1				10,356				10,252				1
Commission and incentive compensation			2,280				2,051				11				6,497				5,935				9
Employee benefits			1,074				1,034				4				3,459				3,545				(2	)
Equipment			557				563				(1	)			1,823				1,825				-
Net occupancy			742				778				(5	)			2,280				2,357				(3	)
Core deposit and other intangibles			548				642				(15	)			1,650				1,935				(15	)
FDIC and other deposit assessments			300				228				32				896				1,547				(42	)
Other			3,274				2,960				11				10,155				8,803				15
Total noninterest expense			12,253				11,684				5				37,116				36,199				3
Income before income tax expense			5,176				4,671				11				13,836				14,036				(1	)
Income tax expense			1,751				1,355				29				4,666				4,382				6
Net income before noncontrolling interests			3,425				3,316				3				9,170				9,654				(5	)
Less: Net income from noncontrolling interests			86				81				6				222				202				10
Wells Fargo net income		$	3,339				3,235				3			$	8,948				9,452				(5	)
Wells Fargo net income applicable to common stock		$	3,150				2,637				19			$	8,400				7,596				11
Per share information
Earnings per common share		$	0.60				0.56				7			$	1.61				1.70				(5	)
Diluted earnings per common share			0.60				0.56				7				1.60				1.69				(5	)
Dividends declared per common share			0.05				0.05				-				0.15				0.44				(66	)
Average common shares outstanding			5,240.1				4,678.3				12				5,216.9				4,471.2				17
Diluted average common shares outstanding			5,273.2				4,706.4				12				5,252.9				4,485.3				17