WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.1 - THE PRESS RELEASE

WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.1 - THE PRESS RELEASE - October 17, 2011

Attached files

Attached files

file	filename
8-K - CURRENT REPORT ON FORM 8-K - WELLS FARGO & COMPANY/MN	d243657d8k.htm
EX-99.2 - THE QUARTERLY SUPPLEMENT - WELLS FARGO & COMPANY/MN	d243657dex992.htm

Exhibit 99.1

LOGO

Monday, October 17, 2011

WELLS FARGO REPORTS RECORD QUARTERLY NET INCOME OF $4.1 BILLION

Increased Loans and Deposits, Lower Expenses from Second Quarter

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Solid financial results:

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Record Wells Fargo net income of $4.1 billion, up 21 percent from prior year, up 3 percent from prior quarter

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Record diluted earnings per common share of $0.72, up 20 percent from prior year, up 3 percent from prior quarter

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Pre-tax pre-provision profit (PTPP)¹ of $8.0 billion, up slightly from prior quarter

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Return on average assets of 1.26 percent

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Revenue of $19.6 billion, compared with $20.4 billion in prior quarter

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Noninterest expense down $798 million from prior quarter

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Strong loan and deposit growth:

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Total loans of $760.1 billion at September 30, 2011, up $8.2 billion from June 30, 2011; core loan portfolios up $13.4 billion from June 30, 2011²

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Total average core checking and savings deposits up $33.8 billion from prior quarter

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Improved capital position:

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Tier 1 common equity increased $3.1 billion to $91.9 billion, with Tier 1 common equity ratio of 9.35 percent under Basel I at September 30, 2011. Under current Basel III capital proposals, Tier 1 common equity ratio estimated at 7.41 percent³

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Called $5.8 billion of trust preferred securities with an average coupon of 8.45 percent

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Purchased 22 million shares of common stock in third quarter 2011 and an additional estimated 6 million shares through a forward repurchase transaction that will settle in fourth quarter 2011

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Improved credit quality:

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Net loan charge-offs declined to $2.6 billion, down $227 million from prior quarter; down $1.5 billion from prior year

¹ See footnote (2) on page 16 for more information on pre-tax pre-provision profit.

² See table on page 5 for more information on core and non-strategic/liquidating loan portfolios.

³ See tables on page 37 for more information on Tier 1 common equity.

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Nonperforming assets declined to $26.8 billion, down $1.1 billion from prior quarter; down $7.6 billion from prior year

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Reserve release¹ of $800 million (pre-tax) reflected improved portfolio performance

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Wachovia integration nearing successful completion

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Retail bank store conversions finished with the North Carolina conversion the weekend of October 15-16, 2011

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Over 38 million accounts converted, including mortgage, deposit, trust, brokerage and credit card

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On track for completion in first quarter 2012

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Committed to helping homeowners remain in their homes

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As of August 31, 2011, 716,945 active trial or completed loan modifications had been initiated since the beginning of 2009; of this total, 85 percent were through Wells Fargo’s own modification programs and the remainder were through the federal government’s Home Affordable Modification Program (HAMP)

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Since September 2009, Wells Fargo hosted 40 Home Preservation Workshops where specialists met individually with more than 26,000 customers

Selected Financial Information



				Quarter ended

	Sept. 30, 2011			June 30, 2011		Sept. 30, 2010


Earnings
Diluted earnings per common share	$	0.72			0.70		0.60
Wells Fargo net income (in billions)		4.06			3.95		3.34

Asset Quality
Net charge-offs as a % of avg. total loans (annualized)		1.37	%		1.52		2.14
Allowance as a % of total loans		2.68			2.83		3.23
Allowance as a % of annualized net charge-offs		197			187		150

Other
Revenue (in billions)	$	19.63			20.39		20.87
Average loans (in billions)		754.5			751.3		759.5
Average core deposits (in billions)		836.8			807.5		772.0
Net interest margin		3.84	%		4.01		4.25

SAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported record net income of $4.1 billion, or $0.72 per diluted common share, for third quarter 2011, up from $3.3 billion, or $0.60 per share, for third quarter 2010, and up from $3.9 billion, or $0.70 per share, for second quarter 2011.

“The economic recovery has been more sluggish and uneven than anyone anticipated,” said Chairman and CEO John Stumpf. “We can’t change the economic environment, yet we have worked hard to control the

¹ Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

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variables we can – making our products and services more relevant to individuals and businesses, focusing on the customer, making as many loans as possible and growing new relationships – as well as fostering longtime ones. We see the results of this focus in growing cross-sell, deposits, and loans. Customers need a trusted financial partner, especially in challenging economic times. Wells Fargo has proven to be that partner over and over again.

“We are nearing the completion of our three-year Wachovia integration process. To date, Regional Banking has now completed its store conversions and our retail stores are Wells Fargo coast-to-coast on a single platform. Thank you to every single team member who has been involved in this remarkable effort.”

“This was a strong quarter for Wells Fargo, with solid growth in loans, deposits, investment securities and capital, along with improved credit quality and lower expenses,” said Chief Financial Officer Tim Sloan. “While our industry continued to face challenges due to economic conditions during this quarter, Wells Fargo’s diversified model was again able to produce solid results for our shareholders.”

Revenue

Revenue was $19.6 billion, compared with $20.4 billion in second quarter 2011. “While certain market-sensitive revenues were down from the second quarter, many of our businesses grew revenue,” said Sloan. Businesses generating linked-quarter revenue growth included asset management, asset-backed finance, auto dealer services, capital finance, commercial banking, commercial mortgage servicing, commercial real estate, corporate trust, credit card, equipment finance, equity funds group, global remittance, government and institutional banking, international, mortgage, personal credit management, real estate capital markets, retail sales finance, and student lending.

Net Interest Income

Net interest income was $10.5 billion, down from $10.7 billion in second quarter 2011. The continued negative impact of higher-yielding loan and security runoff was partially offset by growth in commercial loans, investment portfolio purchases, lower deposit and debt costs, and the benefit of one additional business day in the quarter. Net interest income was also lower due to items that vary from quarter to quarter such as loan prepayments and resolutions. Approximately 12 basis points of the 17 basis point decline in the net interest margin – slightly over 70 percent – from 4.01 percent in second quarter to 3.84 percent in third quarter was due to the exceptional deposit growth of $42 billion from June 30, 2011. These deposits were invested in short-term assets which had the effect of diluting the net interest margin.

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Noninterest Income

Noninterest income was $9.1 billion, compared with $9.7 billion in second quarter 2011. The $622 million decline was driven by an $808 million decline in trading, debt and equity gains primarily related to reduced equity gains compared with the prior quarter’s elevated levels, losses on deferred compensation plan investments and market volatility. Commissions and all other fees declined 8 percent linked quarter due to lower bond and equity originations, lower commissions, and lower asset-based fees associated with the 14 percent decline in the S&P 500 Index in the quarter. Insurance fees were down 26 percent linked quarter almost entirely due to seasonality in crop insurance. Deposit service charges increased 3 percent linked quarter primarily due to account and volume growth. Operating lease income was up on early termination gains.

Mortgage banking noninterest income was $1.8 billion, up $214 million from second quarter 2011, on $89 billion of originations compared with $64 billion of originations in second quarter. Mortgage banking noninterest income in third quarter included a $390 million provision for mortgage loan repurchase losses compared with $242 million in second quarter (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were a $607 million gain compared with a $374 million gain in second quarter 2011. The ratio of MSRs to related loans serviced for others was 74 basis points and the average note rate on the servicing portfolio was 5.21 percent. The unclosed pipeline at September 30, 2011, was $84 billion compared with $51 billion at June 30, 2011.

The Company had net unrealized securities gains of $6.8 billion at September 30, 2011, down $2.4 billion from second quarter 2011, primarily due to widening credit spreads. Period-end securities available for sale balances were up $20.9 billion, reflecting increased investment activity.

Noninterest Expense

Noninterest expense was $11.7 billion, down $798 million from second quarter 2011 and down $576 million from a year ago. The linked-quarter decline in noninterest expense was driven by lower total personnel expense ($6.6 billion, down from $6.9 billion in second quarter 2011), lower merger costs ($376 million, down from $484 million prior quarter) and lower operating losses ($198 million, down from $428 million prior quarter). Included in personnel expense was a $384 million linked-quarter decline in employee benefits due primarily to lower deferred compensation expense which was offset entirely in trading gains and losses. “We are pleased with our positive operating leverage and the progress we’ve made on our Compass expense management initiative. Future quarterly expenses are expected to fluctuate as our Compass initiative proceeds toward our stated target of $11 billion of noninterest expense for fourth quarter 2012,” said Sloan. The Company’s efficiency ratio improved to 59.5 percent from 61.2 percent in second quarter.

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Loans

Total loans were $760.1 billion at September 30, 2011, up $8.2 billion from $751.9 billion at June 30, 2011. Increased balances in many loan portfolios more than offset the continued planned reduction in the non-strategic/liquidating portfolios, which declined $5.2 billion in the quarter. Many portfolios had linked-quarter growth in average loan balances, including asset-backed finance, auto (excluding liquidating), capital finance, commercial banking, commercial real estate, corporate banking, credit card, government and institutional banking, international, mortgage, private student lending and retail sales finance.



	September 30, 2011							June 30, 2011

(in millions)	Core		Liquidating (1)			Total		Core		Liquidating (1)			Total

Commercial	$	333,513		6,321			339,834		323,673		7,016			330,689
Consumer		310,084		110,188			420,272		306,495		114,737			421,232

Total loans	$	643,597		116,509			760,106		630,168		121,753			751,921


Change from prior quarter:	$	13,429		(5,244	)		8,185		5,834		(5,068	)		766

(1)	See table on page 33 for additional information on non-strategic/liquidating loan portfolios. Management believes that the above information provides useful disclosure regarding the Company’s ongoing loan portfolios.

Deposits

Average core deposits were $836.8 billion, up 8 percent from a year ago and up 14 percent (annualized) from second quarter 2011. Consumer checking accounts grew a net 5.6 percent from September 30, 2010. Average core checking and savings deposits were $769.2 billion, up 12 percent from a year ago and up 18 percent (annualized) from second quarter 2011. Average mortgage escrow deposits were $28.3 billion compared with $30.2 billion a year ago and $23.9 billion in second quarter 2011. Average core checking and savings deposits were 92 percent of average core deposits, up from 89 percent a year ago. The average deposit cost for third quarter 2011 was 25 basis points compared with 28 basis points in second quarter 2011. Average core deposits were 111 percent of average loans, up from 107 percent in second quarter 2011.

Capital

Capital increased with Tier 1 common equity reaching $91.9 billion under Basel I, or 9.35 percent of risk-weighted assets. Under current Basel III proposals, the Tier 1 common equity ratio was an estimated 7.41 percent. The Company called for redemption $5.8 billion of trust preferred securities in the quarter, repurchased 22 million shares of its common stock and an additional estimated 6 million shares through a forward repurchase transaction that will settle in fourth quarter 2011, and paid a quarterly common stock dividend of $0.12 per share.

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	Sept. 30,			June 30,		Sept. 30,
(as a percent of total risk-weighted assets)	2011			2011		2010

Ratios under Basel I (1):

Tier 1 common equity (2)		9.35	%		9.15		8.01
Tier 1 capital		11.28			11.69		10.90
Tier 1 leverage		8.97			9.43		9.01

(1)	September 30, 2011, ratios are preliminary.

(2)	See table on page 37 for more information on Tier 1 common equity.

Credit Quality

“Credit quality continued to improve in the third quarter, our seventh consecutive quarter of declining loan losses and the fourth consecutive quarter of lower nonperforming assets,” said Chief Risk Officer Mike Loughlin. Third quarter net charge-offs were $2.6 billion, or 1.37 percent (annualized) of average loans, down $227 million from second quarter net charge-offs of $2.8 billion (1.52 percent). The decline in net charge-offs was driven by lower losses in nearly all loan categories and delinquency trends were stable. Reflecting the improved overall portfolio performance, the provision for credit losses was $800 million less than net charge-offs, compared with $1.0 billion in prior quarter. “While we continued to see positive trends in credit performance, the rate of improvement moderated in some portfolios in the quarter, as one would expect at this point in the credit cycle,” said Loughlin. “Absent significant deterioration in the economy, we continue to expect future reserve releases.”

Net Loan Charge-Offs



	Quarter ended

	Sept. 30, 2011					June 30, 2011					Mar. 31, 2011

			As a					As a					As a
	Net loan		% of			Net loan		% of			Net loan		% of
	charge-		average			charge-		average			charge-		average
($ in millions)	offs		loans (1)			offs		loans (1)			offs		loans (1)


Commercial:
Commercial and industrial	$	261		0.65	%	$	254		0.66	%	$	354		0.96	%
Real estate mortgage		96		0.37			128		0.50			152		0.62
Real estate construction		55		1.06			72		1.32			83		1.38
Lease financing		3		0.11			1		0.01			6		0.18
Foreign		8		0.08			47		0.52			28		0.34

Total commercial		423		0.50			502		0.62			623		0.79


Consumer:
Real estate 1-4 family first mortgage		821		1.46			909		1.62			904		1.60
Real estate 1-4 family junior lien mortgage		842		3.75			909		3.97			994		4.25
Credit card		266		4.90			294		5.63			382		7.21
Other revolving credit and installment		259		1.19			224		1.03			307		1.42

Total consumer		2,188		2.06			2,336		2.21			2,587		2.42

Total	$	2,611		1.37	%	$	2,838		1.52	%	$	3,210		1.73	%

(1)	Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 29 of the accounting for purchased credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.

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Nonperforming Assets

Nonperforming assets ended the quarter at $26.8 billion, down 4 percent from $27.9 billion in the second quarter. Nonaccrual loans declined to $21.9 billion from $23.0 billion in the second quarter, with reductions across all major loan portfolios, resulting from reduced inflow of new nonaccrual loans and stable outflows to foreclosed assets. Foreclosed assets increased slightly to $4.9 billion.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)



	Sept. 30, 2011					June 30, 2011					Mar. 31, 2011

			As a					As a					As a
			% of					% of					% of
	Total		total			Total		total			Total		total
($ in millions)	balances		loans			balances		loans			balances		loans


Commercial:
Commercial and industrial	$	2,128		1.29	%	$	2,393		1.52	%	$	2,653		1.76	%
Real estate mortgage		4,429		4.24			4,691		4.62			5,239		5.18
Real estate construction		1,915		9.71			2,043		9.56			2,239		9.79
Lease financing		71		0.55			79		0.61			95		0.73
Foreign		68		0.18			59		0.16			86		0.24

Total commercial		8,611		2.53			9,265		2.80			10,312		3.19


Consumer:
Real estate 1-4 family first mortgage		11,024		4.93			11,427		5.13			12,143		5.36
Real estate 1-4 family junior lien mortgage		2,035		2.31			2,098		2.33			2,235		2.40
Other revolving credit and installment		230		0.27			255		0.29			275		0.31

Total consumer		13,289		3.16			13,780		3.27			14,653		3.42

Total nonaccrual loans		21,900		2.88			23,045		3.06			24,965		3.32


Foreclosed assets:
GNMA		1,336					1,320					1,457
Non GNMA		3,608					3,541					4,055

Total foreclosed assets		4,944					4,861					5,512

Total nonperforming assets	$	26,844		3.53	%	$	27,906		3.71	%	$	30,477		4.06	%


Change from prior quarter:
Total nonaccrual loans	$	(1,145)				$	(1,920)				$	(1,277)
Total nonperforming assets		(1,062)					(2,571)					(1,774)

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/ guaranteed) totaled $1.9 billion at September 30, 2011, compared with $1.8 billion at June 30, 2011. Loans 90 days or more past due and still accruing whose repayments are insured by the Federal Housing Administration or predominantly guaranteed by the Department of Veterans Affairs for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $17.7 billion at September 30, 2011, compared with $15.5 billion at June 30, 2011.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $20.4 billion at September 30, 2011, down from $21.3 billion at June 30, 2011. The allowance coverage to total loans was 2.68 percent compared with 2.83 percent in the prior quarter. The allowance covered 1.97 times annualized third quarter net charge-offs compared with 1.87 times in the prior quarter. The allowance coverage to nonaccrual loans was 93 percent at September 30, 2011, compared with 92 percent at June 30, 2011. “We

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believe the allowance was adequate for losses inherent in the loan portfolio at September 30, 2011,” said Loughlin.

Additional detail on credit quality 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,		June 30,		Sept. 30,
(in millions)	2011		2011		2010

Community Banking	$	2,315		2,087		1,935
Wholesale Banking		1,813		1,931		1,512
Wealth, Brokerage and Retirement		291		333		256

More financial information about the business segments is on pages 38 and 39.

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. through its Regional Banking and Wells Fargo Home Mortgage business units.

Selected Financial Information



					Quarter ended

	Sept. 30,		June 30,		Sept. 30,
(in millions)	2011		2011		2010

Total revenue	$	12,496		12,567		13,447
Provision for credit losses		1,978		1,927		3,155
Noninterest expense		6,901		7,418		7,333
Segment net income		2,315		2,087		1,935

(in billions)
Average loans		491.0		498.2		522.2
Average assets		754.4		752.5		770.0
Average core deposits		556.3		552.0		537.1

Community Banking reported net income of $2.3 billion, up $228 million, or 11 percent, from prior quarter and up $380 million, or 20 percent, from third quarter 2010. Revenue decreased $71 million from second quarter 2011 driven primarily by a decline in equity gains primarily related to market conditions in the quarter, losses on deferred compensation plan investments (offset in employee benefits expense and therefore neutral to the income statement), continued expected reductions in the home equity and Pick-A-Pay loan portfolios, and lower yielding investment security purchases, partially offset by an increase in mortgage banking income and lower deposit costs. Revenue decreased $951 million, or 7 percent, from third quarter 2010 largely due to lower mortgage banking income, as well as expected reductions in the liquidating loan portfolios and lower yielding investment security purchases, partially offset by long-term debt runoff, lower deposit costs, equity gains and debit card customer growth. Noninterest expense decreased

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$517 million, or 7 percent, from second quarter 2011, reflecting lower personnel costs (including active, full-time equivalent reductions and lower deferred compensation benefits expense), litigation accruals, and credit related costs. Noninterest expense decreased $432 million, or 6 percent, from third quarter 2010 due to reduced expenses across most categories, led by personnel costs. The provision for credit losses increased $51 million from second quarter 2011 and decreased $1.2 billion from third quarter 2010. Charge-offs decreased $199 million from second quarter 2011 and $1.1 billion from third quarter 2010. The reserve release was $450 million in third quarter 2011, compared with releases of $700 million and $400 million in second quarter 2011 and third quarter 2010, respectively.

Regional Banking Highlights

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Strong growth in checking accounts from September 30, 2010 (combined Regional Banking)

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Consumer checking accounts up a net 5.6 percent

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Business checking accounts up a net 3.8 percent

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Consumer checking accounts up a net 7.1 percent in California, 8.3 percent in New Jersey, 9.8 percent in North Carolina and 7.7 percent in Florida

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Strong solutions in third quarter 2011

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West

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Core product solutions (sales) of 8.80 million, up 15 percent from prior year

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Core sales per platform banker FTE (active, full-time equivalent) of 6.90 per day, up from 5.89 in prior year

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Sales of Wells Fargo Packages^® (a checking account and three other products) up 18 percent from prior year, purchased by 86 percent of new checking account customers

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East

—

Eastern core product solutions grew by double-digits from prior year

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For eastern states on Wells Fargo systems the entire quarter, 83 percent of new checking account customers purchased Wells Fargo Packages

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Platform banker FTE grew by over 1,000, or 10 percent, from prior year

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Retail bank household cross-sell ratio for combined company of 5.91 products per household, up from 5.68 in third quarter 2010; cross-sell in the West of 6.28, compared with 5.39 in the East, represents the opportunity to earn more business from customers in the East

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Small Business/Business Banking

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In August, Wells Fargo, America’s leading SBA lender in dollars, became the nation’s first lender to extend $1 billion in SBA 7(a) loan dollars to small businesses in a year

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Store-based business solutions up 8 percent from prior year (West)

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Sales of Wells Fargo Business Services Packages (business checking account and at least three other business products) up 32 percent from prior year, purchased by 73 percent of new business checking account customers (West)

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Business Banking household cross-sell of 4.21 products per household (West)

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Wells Fargo, America’s #1 small business lender, made $10.3 billion in new loan commitments to its small business customers in the first three quarters of 2011, an 8 percent increase in new dollars lent from same period last year

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Online and Mobile Banking

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19.7 million combined active online customers

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6.7 million combined active mobile customers

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Global Finance magazine ranked Wells Fargo Best Consumer Internet Bank in the U.S. (July 2011)

Wells Fargo Home Mortgage (Home Mortgage)

•

Home Mortgage applications of $169 billion, compared with $109 billion in prior quarter

•

Home Mortgage application pipeline of $84 billion at quarter end, compared with $51 billion at June 30, 2011

•

Home Mortgage originations of $89 billion, up from $64 billion in prior quarter

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Residential mortgage servicing portfolio of $1.8 trillion

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $20 million. Products & business segments include Middle Market Commercial Banking, Government & Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Investment Banking & Capital Markets, Securities Investment Portfolio, Asset Backed Finance, and Asset Management.

Selected Financial Information



	Quarter ended

(in millions)	Sept. 30, 2011			June 30, 2011			Sept. 30, 2010

Total revenue	$	5,150			5,631			5,388
Provision (reversal of provision) for credit losses		(178	)		(97	)		280
Noninterest expense		2,689			2,766			2,719
Segment net income		1,813			1,931			1,512

(in billions)
Average loans		253.4			243.1			227.3
Average assets		438.0			415.7			371.8
Average core deposits		209.3			190.6			170.8

Wholesale Banking reported net income of $1.8 billion, up $301 million, or 20 percent, from third quarter 2010 and decreased $118 million, or 6 percent, from the prior quarter. Revenue decreased $238 million, or 4 percent, from prior year as broad-based growth among many businesses, including strong loan and deposit growth, was offset by lower PCI resolutions and weakness in fixed income sales and trading and investment banking. Many businesses had revenue growth from the prior quarter, including asset-backed finance, capital finance, commercial banking, government banking, and international. However, overall revenue decreased $481 million, or 9 percent, from the prior quarter due to lower PCI resolutions, weakness in fixed income sales and trading and investment banking and seasonally lower insurance fees. Noninterest expense decreased $30 million, or 1 percent, from prior year related to lower personnel expenses and decreased $77 million, or 3 percent, from prior quarter related to seasonally lower insurance expense and lower

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operating losses. The provision for credit losses was a net recovery of $178 million and declined $458 million from third quarter 2010. The decrease included a $350 million reserve release in the current quarter versus a $250 million reserve release a year ago along with a $358 million improvement in credit losses.

•

Weaker sales and trading results as consistent negative economic data, sovereign debt concerns and the U.S. debt downgrade pressured credit spreads and reduced prices on all financial assets, significantly curtailing new issue origination and trading opportunities

•

Year-over-year and linked-quarter average loan growth in almost all portfolios, including asset-backed finance, capital finance, commercial banking, commercial real estate, corporate banking, government banking, and international, from both new and existing customer activity

•

Continued improvement in net charge-offs and nonperforming assets

•

Average core deposits up 23 percent from prior year

•

U.S. investment banking market share year to date of 4.8 percent, up from 4.2 percent for full year 2010 (source: Dealogic fee-based league tables)

•

Wells Fargo selected Best Trade Outsourcing Bank in Asia Pacific by Global Trade Review

Wealth, Brokerage and Retirement provides a full range of financial advisory services to clients using a 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 ultra high net worth customers. Brokerage serves customers’ advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the United States. Retirement is a national leader in providing institutional retirement and trust services (including 401(k) and pension plan record keeping) for businesses, retail retirement solutions for individuals, and reinsurance services for the life insurance industry.

Selected Financial Information



	Quarter ended

(in millions)	Sept. 30, 2011		June 30, 2011		Sept. 30, 2010

Total revenue	$	2,887		3,086		2,912
Provision for credit losses		48		61		77
Noninterest expense		2,368		2,487		2,420
Segment net income		291		333		256

(in billions)
Average loans		43.1		43.5		42.6
Average assets		155.1		147.7		138.2
Average core deposits		133.4		126.0		120.7

Wealth, Brokerage and Retirement reported net income of $291 million, down $42 million from second quarter 2011 and up $35 million from third quarter 2010. Revenue was $2.9 billion, down 6 percent from second quarter 2011 primarily due to losses on deferred compensation plan investments (offset in expense), as well as lower securities gains in the brokerage business and reduced brokerage transaction revenue. Revenue was down 1 percent from third quarter 2010 due to losses on deferred compensation plan investments (offset in expense) and lower brokerage transaction revenue, partially offset by higher asset-based revenues. Total provision for credit losses decreased $13 million from second quarter 2011 and

- 12 -

$29 million from third quarter 2010. Noninterest expense declined 5 percent from second quarter on reduced personnel costs (primarily due to lower deferred compensation) and reduced broker commissions. Noninterest expense was down 2 percent from third quarter 2010 due to lower deferred compensation, partially offset by growth in personnel costs largely due to increased broker commissions, driven by higher production levels, and increased non-personnel costs. Average core deposits increased $7.4 billion from second quarter 2011 and $12.7 billion from third quarter 2010.

Retail Brokerage

•

Strong deposit growth, with average balances up $11 billion, or 14 percent, from prior year

•

Client assets of $1.1 trillion, down 3 percent from prior year

•

Managed account assets increased $20 billion, or 9 percent, from prior year driven by strong net flows

•

Completed sale of H.D. Vest Financial Services business on October 3, 2011

Wealth Management

•

Average deposit balances up 3 percent from prior year

•

Investment and Fiduciary Services asset-based revenue up 9 percent from prior year

Retirement

•

Institutional Retirement plan assets of $228 billion, up $7 billion, or 3 percent, from prior year

•

IRA assets of $261 billion, down $5 billion, or 2 percent, from prior year

Conference Call

The Company will host a live conference call on Monday, October 17, 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 706-643-1962 (international). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and http://us.meeting-stream.com/wellsfargocompany_101711.

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on October 17 through Monday, October 24. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291 (international) and enter Conference ID #95565644. The replay will also be available online at wellsfargo.com/invest_relations/earnings.

- 13 -

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,” “target,” “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, and the adequacy of the allowance for loan losses, including our current expectation of future reductions in the allowance for loan losses; (ii) our targeted noninterest expense for fourth quarter 2012 as part of our expense management initiatives; (iii) our estimates regarding our Tier 1 common equity ratio under proposed Basel III capital regulations; and (iv) the timing of expected integration activities related to the Wachovia 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, high unemployment rates, U.S. fiscal debt and budget matters and the sovereign debt crisis in Europe; our capital requirements (including under regulatory capital standards as determined and interpreted by applicable regulatory authorities such as the proposed Basel III capital regulations) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses (including 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 that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties; negative effects relating to mortgage foreclosures, including changes in our procedures or practices and/or industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures; our ability to realize our noninterest expense target as part of our expense management initiatives when and in the amount targeted, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters; 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; 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 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 the discussion under “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended June 30,2011, 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.

- 14 -

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 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 270,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 23 on Fortune’s 2011 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

# # #

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS


	Pages

Summary Information
Summary Financial Data		16-17

Income
Consolidated Statement of Income		18-19
Average Balances, Yields and Rates Paid		20-21
Noninterest Income and Noninterest Expense		22-23

Balance Sheet
Consolidated Balance Sheet		24-25
Average Balances		26

Loans
Loans		27
Nonaccrual Loans and Foreclosed Assets		27
Loans 90 Days or More Past Due and Still Accruing		28
Purchased Credit-Impaired Loans		29-31
Pick-A-Pay Portfolio		32
Non-Strategic and Liquidating Loan Portfolios		33
Home Equity Portfolios		33
Allowance for Credit Losses		34-35

Equity
Condensed Consolidated Statement of Changes in Total Equity		36
Tier 1 Common Equity		37

Operating Segments
Operating Segment Results		38-39

Other
Mortgage Servicing and other related data		40-42

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA



	Quarter ended Sept. 30,					%			Nine months ended Sept. 30,				%

($ in millions, except per share amounts)	2011			2010		Change			2011		2010		Change


For the Period
Wells Fargo net income	$	4,055			3,339		21	%	$	11,762		8,948		31	%
Wells Fargo net income applicable to common stock		3,839			3,150		22			11,137		8,400		33
Diluted earnings per common share		0.72			0.60		20			2.09		1.60		31
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.26	%		1.09		15			1.25		0.98		28
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		11.86			10.90		9			11.92		10.11		18
Efficiency ratio (1)		59.5			58.7		1			61.1		58.3		5
Total revenue	$	19,628			20,874		(6)		$	60,343		63,716		(5)
Pre-tax pre-provision profit (PTPP) (2)		7,951			8,621		(8)			23,458		26,600		(12)
Dividends declared per common share		0.12			0.05		140			0.36		0.15		140
Average common shares outstanding		5,275.5			5,240.1		1			5,280.2		5,216.9		1
Diluted average common shares outstanding		5,319.2			5,273.2		1			5,325.6		5,252.9		1
Average loans	$	754,544			759,483		(1)		$	753,293		776,305		(3)
Average assets		1,281,369			1,220,368		5			1,257,977		1,223,535		3
Average core deposits (3)		836,845			771,957		8			813,865		764,345		6
Average retail core deposits (4)		599,227			571,062		5			592,156		572,567		3
Net interest margin		3.84	%		4.25		(10)			3.96		4.30		(8)

At Period End
Securities available for sale	$	207,176			176,875		17		$	207,176		176,875		17
Loans		760,106			753,664		1			760,106		753,664		1
Allowance for loan losses		20,039			23,939		(16)			20,039		23,939		(16)
Goodwill		25,038			24,831		1			25,038		24,831		1
Assets		1,304,945			1,220,784		7			1,304,945		1,220,784		7
Core deposits (3)		849,632			771,792		10			849,632		771,792		10
Wells Fargo stockholders’ equity		137,768			123,658		11			137,768		123,658		11
Total equity		139,244			125,165		11			139,244		125,165		11
Capital ratios:
Total equity to assets		10.67	%		10.25		4			10.67		10.25		4
Risk-based capital (5):
Tier 1 capital		11.28			10.90		3			11.28		10.90		3
Total capital		14.88			14.88		-			14.88		14.88		-
Tier 1 leverage (5)		8.97			9.01		-			8.97		9.01		-
Tier 1 common equity (6)		9.35			8.01		17			9.35		8.01		17
Common shares outstanding		5,272.2			5,244.4		1			5,272.2		5,244.4		1
Book value per common share	$	24.13			22.04		9		$	24.13		22.04		9
Common stock price:
High		29.63			28.77		3			34.25		34.25		-
Low		22.58			23.02		(2)			22.58		23.02		(2)
Period end		24.12			25.12		(4)			24.12		25.12		(4)
Team members (active, full-time equivalent)		263,800			266,900		(1)			263,800		266,900		(1)

(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, 2011, ratios are preliminary.

(6)	See the “Five Quarter Tier 1 Common Equity Under Basel I” table for additional information.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA



	Quarter ended

($ in millions, except per share amounts)	Sept. 30, 2011			June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


For the Quarter
Wells Fargo net income	$	4,055			3,948		3,759		3,414		3,339
Wells Fargo net income applicable to common stock		3,839			3,728		3,570		3,232		3,150
Diluted earnings per common share		0.72			0.70		0.67		0.61		0.60
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.26	%		1.27		1.23		1.09		1.09
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		11.86			11.92		11.98		10.95		10.90
Efficiency ratio (1)		59.5			61.2		62.6		62.1		58.7
Total revenue	$	19,628			20,386		20,329		21,494		20,874
Pre-tax pre-provision profit (PTPP) (2)		7,951			7,911		7,596		8,154		8,621
Dividends declared per common share		0.12			0.12		0.12		0.05		0.05
Average common shares outstanding		5,275.5			5,286.5		5,278.8		5,256.2		5,240.1
Diluted average common shares outstanding		5,319.2			5,331.7		5,333.1		5,293.8		5,273.2
Average loans	$	754,544			751,253		754,077		753,675		759,483
Average assets		1,281,369			1,250,945		1,241,176		1,237,037		1,220,368
Average core deposits (3)		836,845			807,483		796,826		794,799		771,957
Average retail core deposits (4)		599,227			592,974		584,100		573,843		571,062
Net interest margin		3.84	%		4.01		4.05		4.16		4.25

At Quarter End
Securities available for sale	$	207,176			186,298		167,906		172,654		176,875
Loans		760,106			751,921		751,155		757,267		753,664
Allowance for loan losses		20,039			20,893		21,983		23,022		23,939
Goodwill		25,038			24,776		24,777		24,770		24,831
Assets		1,304,945			1,259,734		1,244,666		1,258,128		1,220,784
Core deposits (3)		849,632			808,970		795,038		798,192		771,792
Wells Fargo stockholders’ equity		137,768			136,401		133,471		126,408		123,658
Total equity		139,244			137,916		134,943		127,889		125,165
Capital ratios:
Total equity to assets		10.67	%		10.95		10.84		10.16		10.25
Risk-based capital (5):
Tier 1 capital		11.28			11.69		11.50		11.16		10.90
Total capital		14.88			15.41		15.30		15.01		14.88
Tier 1 leverage (5)		8.97			9.43		9.27		9.19		9.01
Tier 1 common equity (6)		9.35			9.15		8.93		8.30		8.01
Common shares outstanding		5,272.2			5,278.2		5,300.9		5,262.3		5,244.4
Book value per common share	$	24.13			23.84		23.18		22.49		22.04
Common stock price:
High		29.63			32.63		34.25		31.61		28.77
Low		22.58			25.26		29.82		23.37		23.02
Period end		24.12			28.06		31.71		30.99		25.12
Team members (active, full-time equivalent)		263,800			266,600		270,200		272,200		266,900

(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, 2011, ratios are preliminary.

(6)	See the “Five Quarter Tier 1 Common Equity Under Basel I” table for additional information.

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME



	Quarter ended Sept. 30,				%			Nine months ended Sept. 30,				%

(in millions, except per share amounts)	2011		2010		Change			2011		2010		Change


Interest income
Trading assets	$	343		270		27	%	$	1,040		803		30	%
Securities available for sale		2,053		2,492		(18)			6,383		7,292		(12)
Mortgages held for sale		389		449		(13)			1,188		1,241		(4)
Loans held for sale		13		22		(41)			42		86		(51)
Loans		9,224		9,779		(6)			27,972		30,094		(7)
Other interest income		156		118		32			409		311		32


Total interest income		12,178		13,130		(7)			37,034		39,827		(7)


Interest expense
Deposits		559		721		(22)			1,768		2,170		(19)
Short-term borrowings		20		27		(26)			66		66		-
Long-term debt		980		1,226		(20)			3,093		3,735		(17)
Other interest expense		77		58		33			236		162		46


Total interest expense		1,636		2,032		(19)			5,163		6,133		(16)


Net interest income		10,542		11,098		(5)			31,871		33,694		(5)
Provision for credit losses		1,811		3,445		(47)			5,859		12,764		(54)


Net interest income after provision for credit losses		8,731		7,653		14			26,012		20,930		24


Noninterest income
Service charges on deposit accounts		1,103		1,132		(3)			3,189		3,881		(18)
Trust and investment fees		2,786		2,564		9			8,646		7,976		8
Card fees		1,013		935		8			2,973		2,711		10
Other fees		1,085		1,004		8			3,097		2,927		6
Mortgage banking		1,833		2,499		(27)			5,468		6,980		(22)
Insurance		423		397		7			1,494		1,562		(4)
Net gains (losses) from trading activities		(442)		470		NM			584		1,116		(48)
Net gains (losses) on debt securities available for sale		300		(114)		NM			6		(56)		NM
Net gains from equity investments		344		131		163			1,421		462		208
Operating leases		284		222		28			464		736		(37)
Other		357		536		(33)			1,130		1,727		(35)


Total noninterest income		9,086		9,776		(7)			28,472		30,022		(5)


Noninterest expense
Salaries		3,718		3,478		7			10,756		10,356		4
Commission and incentive compensation		2,088		2,280		(8)			6,606		6,497		2
Employee benefits		780		1,074		(27)			3,336		3,459		(4)
Equipment		516		557		(7)			1,676		1,823		(8)
Net occupancy		751		742		1			2,252		2,280		(1)
Core deposit and other intangibles		466		548		(15)			1,413		1,650		(14)
FDIC and other deposit assessments		332		300		11			952		896		6
Other		3,026		3,274		(8)			9,894		10,155		(3)


Total noninterest expense		11,677		12,253		(5)			36,885		37,116		(1)


Income before income tax expense		6,140		5,176		19			17,599		13,836		27
Income tax expense		1,998		1,751		14			5,571		4,666		19


Net income before noncontrolling interests		4,142		3,425		21			12,028		9,170		31
Less: Net income from noncontrolling interests		87		86		1			266		222		20


Wells Fargo net income	$	4,055		3,339		21		$	11,762		8,948		31


Less: Preferred stock dividends and other		216		189		14			625		548		14


Wells Fargo net income applicable to common stock	$	3,839		3,150		22		$	11,137		8,400		33


Per share information
Earnings per common share	$	0.73		0.60		22		$	2.11		1.61		31
Diluted earnings per common share		0.72		0.60		20			2.09		1.60		31
Dividends declared per common share		0.12		0.05		140			0.36		0.15		140
Average common shares outstanding		5,275.5		5,240.1		1			5,280.2		5,216.9		1
Diluted average common shares outstanding		5,319.2		5,273.2		1			5,325.6		5,252.9		1

NM - Not meaningful

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME



		Quarter ended
	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions, except per share amounts)	2011		2011		2011		2010		2010


Interest income
Trading assets	$	343		347		350		295		270
Securities available for sale		2,053		2,166		2,164		2,374		2,492
Mortgages held for sale		389		362		437		495		449
Loans held for sale		13		17		12		15		22
Loans		9,224		9,361		9,387		9,666		9,779
Other interest income		156		131		122		124		118


Total interest income		12,178		12,384		12,472		12,969		13,130


Interest expense
Deposits		559		594		615		662		721
Short-term borrowings		20		20		26		26		27
Long-term debt		980		1,009		1,104		1,153		1,226
Other interest expense		77		83		76		65		58


Total interest expense		1,636		1,706		1,821		1,906		2,032


Net interest income		10,542		10,678		10,651		11,063		11,098
Provision for credit losses		1,811		1,838		2,210		2,989		3,445


Net interest income after provision for credit losses		8,731		8,840		8,441		8,074		7,653


Noninterest income
Service charges on deposit accounts		1,103		1,074		1,012		1,035		1,132
Trust and investment fees		2,786		2,944		2,916		2,958		2,564
Card fees		1,013		1,003		957		941		935
Other fees		1,085		1,023		989		1,063		1,004
Mortgage banking		1,833		1,619		2,016		2,757		2,499
Insurance		423		568		503		564		397
Net gains (losses) from trading activities		(442)		414		612		532		470
Net gains (losses) on debt securities available for sale		300		(128)		(166)		(268)		(114)
Net gains from equity investments		344		724		353		317		131
Operating leases		284		103		77		79		222
Other		357		364		409		453		536


Total noninterest income		9,086		9,708		9,678		10,431		9,776


Noninterest expense
Salaries		3,718		3,584		3,454		3,513		3,478
Commission and incentive compensation		2,088		2,171		2,347		2,195		2,280
Employee benefits		780		1,164		1,392		1,192		1,074
Equipment		516		528		632		813		557
Net occupancy		751		749		752		750		742
Core deposit and other intangibles		466		464		483		549		548
FDIC and other deposit assessments		332		315		305		301		300
Other		3,026		3,500		3,368		4,027		3,274


Total noninterest expense		11,677		12,475		12,733		13,340		12,253


Income before income tax expense		6,140		6,073		5,386		5,165		5,176
Income tax expense		1,998		2,001		1,572		1,672		1,751


Net income before noncontrolling interests		4,142		4,072		3,814		3,493		3,425
Less: Net income from noncontrolling interests		87		124		55		79		86


Wells Fargo net income	$	4,055		3,948		3,759		3,414		3,339


Less: Preferred stock dividends and other		216		220		189		182		189


Wells Fargo net income applicable to common stock	$	3,839		3,728		3,570		3,232		3,150


Per share information
Earnings per common share	$	0.73		0.70		0.68		0.62		0.60
Diluted earnings per common share		0.72		0.70		0.67		0.61		0.60
Dividends declared per common share		0.12		0.12		0.12		0.05		0.05
Average common shares outstanding		5,275.5		5,286.5		5,278.8		5,256.2		5,240.1
Diluted average common shares outstanding		5,319.2		5,331.7		5,333.1		5,293.8		5,273.2

Wells Fargo & Company and Subsidiaries

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


	Quarter ended September 30,
	2011								2010
(in millions)	Average balance			Yields/ rates			Interest income/ expense		Average balance			Yields/ rates			Interest income/ expense

Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	98,909			0.42	%	$	105		70,839			0.38	%	$	67
Trading assets		37,939			3.67			348		29,080			3.77			275
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		9,635			1.02			24		1,673			2.79			11
Securities of U.S. states and political subdivisions		25,827			4.93			315		17,220			5.89			249
Mortgage-backed securities:
Federal agencies		77,309			4.41			804		70,486			5.35			885
Residential and commercial		34,242			7.46			609		33,425			12.53			987

Total mortgage-backed securities		111,551			5.36			1,413		103,911			7.67			1,872
Other debt and equity securities		40,720			4.69			457		35,533			6.02			503

Total securities available for sale		187,733			4.92			2,209		158,337			7.05			2,635
Mortgages held for sale (4)		34,634			4.49			389		38,073			4.72			449
Loans held for sale (4)		968			5.21			13		3,223			2.71			22
Loans:
Commercial:
Commercial and industrial		159,625			4.22			1,697		146,139			4.57			1,679
Real estate mortgage		102,428			3.93			1,015		99,082			4.15			1,036
Real estate construction		20,537			6.12			317		29,469			3.31			246
Lease financing		12,964			7.21			234		13,156			9.07			298
Foreign		38,175			2.42			233		30,276			3.15			240

Total commercial		333,729			4.16			3,496		318,122			4.37			3,499

Consumer:
Real estate 1-4 family first mortgage		223,765			4.83			2,704		231,172			5.16			2,987
Real estate 1-4 family junior lien mortgage		89,065			4.37			980		100,257			4.41			1,114
Credit card		21,452			12.96			695		22,048			13.57			748
Other revolving credit and installment		86,533			6.25			1,364		87,884			6.50			1,441

Total consumer		420,815			5.44			5,743		441,361			5.68			6,290

Total loans (4)		754,544			4.87			9,239		759,483			5.13			9,789
Other		4,831			4.18			50		5,912			3.53			53

Total earning assets	$	1,119,558			4.43	%	$	12,353		1,064,947			5.01	%	$	13,290

Funding sources
Deposits:
Interest-bearing checking	$	43,986			0.07	%	$	8		59,677			0.10	%	$	15
Market rate and other savings		473,409			0.17			198		419,996			0.25			269
Savings certificates		67,633			1.47			251		85,044			1.50			322
Other time deposits		12,809			2.02			65		14,400			2.33			83
Deposits in foreign offices		63,548			0.23			37		52,061			0.24			32

Total interest-bearing deposits		661,385			0.34			559		631,178			0.45			721
Short-term borrowings		50,373			0.18			23		46,468			0.26			31
Long-term debt		139,542			2.81			980		177,077			2.76			1,226
Other liabilities		11,170			2.75			77		6,764			3.39			58

Total interest-bearing liabilities		862,470			0.76			1,639		861,487			0.94			2,036
Portion of noninterest-bearing funding sources		257,088			-			-		203,460			-			-

Total funding sources	$	1,119,558			0.59			1,639		1,064,947			0.76			2,036

Net interest margin and net interest income on a taxable-equivalent basis (5)					3.84	%	$	10,714					4.25	%	$	11,254
Noninterest-earning assets
Cash and due from banks	$	17,101								17,000
Goodwill		25,008								24,829
Other		119,702								113,592

Total noninterest-earning assets	$	161,811								155,421

Noninterest-bearing funding sources
Deposits	$	221,182								184,837
Other liabilities		57,464								50,013
Total equity		140,253								124,031
Noninterest-bearing funding sources used to fund earning assets		(257,088	)							(203,460	)

Net noninterest-bearing funding sources	$	161,811								155,421

Total assets	$	1,281,369								1,220,368

(1)	Our average prime rate was 3.25% for the quarters ended September 30, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.30% and 0.39% for the same quarters, respectively.

(2)	Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3)

Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affected earning assets. Thus yields are based on amortized cost balances computed on a settlement date basis.

(4)	Nonaccrual loans and related income are included in their respective loan categories.

(5)	Includes taxable-equivalent adjustments of $172 million and $156 million for September 30, 2011 and 2010, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries

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


	Nine months ended September 30,
	2011								2010
(in millions)	Average balance			Yields/ rates			Interest income/ expense		Average balance			Yields/ rates			Interest income/ expense

Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	93,661			0.37	%	$	257		59,905			0.35	%	$	156
Trading assets		37,788			3.73			1,056		28,588			3.82			819
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		4,463			1.43			47		2,013			3.36			49
Securities of U.S. states and political subdivisions		22,692			5.21			887		15,716			6.29			725
Mortgage-backed securities:
Federal agencies		75,073			4.63			2,480		74,330			5.38			2,838
Residential and commercial		33,242			8.64			2,005		33,133			10.58			2,546

Total mortgage-backed securities		108,315			5.84			4,485		107,463			7.01			5,384
Other debt and equity securities		37,910			5.32			1,423		33,727			6.56			1,557

Total securities available for sale		173,380			5.52			6,842		158,919			6.80			7,715
Mortgages held for sale (4)		34,668			4.57			1,188		33,903			4.88			1,241
Loans held for sale (4)		1,100			5.05			42		4,660			2.46			86
Loans:
Commercial:
Commercial and industrial		154,469			4.48			5,181		150,153			4.83			5,431
Real estate mortgage		101,230			4.00			3,033		98,264			3.91			2,875
Real estate construction		22,255			4.96			826		32,770			3.27			801
Lease financing		12,961			7.59			737		13,592			9.28			946
Foreign		36,103			2.62			708		29,302			3.46			758

Total commercial		327,018			4.28			10,485		324,081			4.46			10,811

Consumer:
Real estate 1-4 family first mortgage		226,048			4.93			8,363		237,848			5.22			9,305
Real estate 1-4 family junior lien mortgage		91,881			4.32			2,973		102,839			4.47			3,444
Credit card		21,305			13.04			2,084		22,539			13.32			2,251
Other revolving credit and installment		87,041			6.31			4,107		88,998			6.49			4,320

Total consumer		426,275			5.49			17,527		452,224			5.70			19,320

Total loans (4)		753,293			4.97			28,012		776,305			5.18			30,131
Other		5,017			4.06			153		6,021			3.45			156

Total earning assets	$	1,098,907			4.59	%	$	37,550		1,068,301			5.07	%	$	40,304

Funding sources
Deposits:
Interest-bearing checking	$	51,891			0.09	%	$	34		60,961			0.13	%	$	57
Market rate and other savings		457,483			0.19			661		412,060			0.27			822
Savings certificates		71,343			1.43			762		89,824			1.43			962
Other time deposits		13,212			2.10			208		15,066			2.08			235
Deposits in foreign offices		59,662			0.23			103		54,973			0.23			94

Total interest-bearing deposits		653,591			0.36			1,768		632,884			0.46			2,170
Short-term borrowings		52,805			0.19			77		45,549			0.22			75
Long-term debt		145,000			2.85			3,093		193,724			2.57			3,735
Other liabilities		10,547			2.99			236		6,393			3.38			162

Total interest-bearing liabilities		861,943			0.80			5,174		878,550			0.93			6,142
Portion of noninterest-bearing funding sources		236,964			-			-		189,751			-			-

Total funding sources	$	1,098,907			0.63			5,174		1,068,301			0.77			6,142

Net interest margin and net interest income on a taxable-equivalent basis (5)					3.96	%	$	32,376					4.30	%	$	34,162
Noninterest-earning assets
Cash and due from banks	$	17,277								17,484
Goodwill		24,853								24,822
Other		116,940								112,928

Total noninterest-earning assets	$	159,070								155,234

Noninterest-bearing funding sources
Deposits	$	204,643								177,975
Other liabilities		55,324								46,174
Total equity		136,067								120,836
Noninterest-bearing funding sources used to fund earning assets		(236,964	)							(189,751	)

Net noninterest-bearing funding sources	$	159,070								155,234

Total assets	$	1,257,977								1,223,535

(1)	Our average prime rate was 3.25% for the nine months ended September 30, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.29% and 0.36% for the same periods, respectively.

(2)	Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3)

(4)	Nonaccrual loans and related income are included in their respective loan categories.

(5)	Includes taxable-equivalent adjustments of $505 million and $468 million for September 30, 2011 and 2010, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME




	Quarter ended Sept. 30,				%			Nine months ended Sept. 30,				%


(in millions)	2011		2010		Change			2011		2010		Change


Service charges on deposit accounts	$	1,103		1,132		(3)	%	$	3,189		3,881		(18)	%
Trust and investment fees:
Trust, investment and IRA fees		1,019		924		10			3,099		3,008		3
Commissions and all other fees		1,767		1,640		8			5,547		4,968		12

Total trust and investment fees		2,786		2,564		9			8,646		7,976		8


Card fees		1,013		935		8			2,973		2,711		10
Other fees:
Cash network fees		105		73		44			280		186		51
Charges and fees on loans		438		424		3			1,239		1,244		-
Processing and all other fees		542		507		7			1,578		1,497		5


Total other fees		1,085		1,004		8			3,097		2,927		6


Mortgage banking:
Servicing income, net		1,030		516		100			2,773		3,100		(11)
Net gains on mortgage loan origination/sales activities		803		1,983		(60)			2,695		3,880		(31)


Total mortgage banking		1,833		2,499		(27)			5,468		6,980		(22)


Insurance		423		397		7			1,494		1,562		(4)
Net gains (losses) from trading activities		(442)		470		NM			584		1,116		(48)
Net gains (losses) on debt securities available for sale		300		(114)		NM			6		(56)		NM
Net gains from equity investments		344		131		163			1,421		462		208
Operating leases		284		222		28			464		736		(37)
All other		357		536		(33)			1,130		1,727		(35)


Total	$	9,086		9,776		(7)		$	28,472		30,022		(5)

NM - Not meaningful NONINTEREST EXPENSE


	Quarter ended Sept. 30,				%			Nine months ended Sept. 30,				%


(in millions)	2011		2010		Change			2011		2010		Change


Salaries	$	3,718		3,478		7	%	$	10,756		10,356		4	%
Commission and incentive compensation		2,088		2,280		(8)			6,606		6,497		2
Employee benefits		780		1,074		(27)			3,336		3,459		(4)
Equipment		516		557		(7)			1,676		1,823		(8)
Net occupancy		751		742		1			2,252		2,280		(1)
Core deposit and other intangibles		466		548		(15)			1,413		1,650		(14)
FDIC and other deposit assessments		332		300		11			952		896		6
Outside professional services		640		533		20			1,879		1,589		18
Contract services		341		430		(21)			1,051		1,161		(9)
Foreclosed assets		271		366		(26)			984		1,085		(9)
Operating losses		198		230		(14)			1,098		1,065		3
Outside data processing		226		263		(14)			678		811		(16)
Postage, stationery and supplies		240		233		3			711		705		1
Travel and entertainment		198		195		2			609		562		8
Advertising and promotion		159		170		(6)			441		438		1
Telecommunications		128		146		(12)			394		445		(11)
Insurance		94		62		52			428		374		14
Operating leases		29		21		38			84		85		(1)
All other		502		625		(20)			1,537		1,835		(16)


Total	$	11,677		12,253		(5)		$	36,885		37,116		(1)

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME




	Quarter ended


(in millions)	Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Service charges on deposit accounts	$	1,103		1,074		1,012		1,035		1,132
Trust and investment fees:
Trust, investment and IRA fees		1,019		1,020		1,060		1,030		924
Commissions and all other fees		1,767		1,924		1,856		1,928		1,640


Total trust and investment fees		2,786		2,944		2,916		2,958		2,564


Card fees		1,013		1,003		957		941		935
Other fees:
Cash network fees		105		94		81		74		73
Charges and fees on loans		438		404		397		446		424
Processing and all other fees		542		525		511		543		507


Total other fees		1,085		1,023		989		1,063		1,004


Mortgage banking:
Servicing income, net		1,030		877		866		240		516
Net gains on mortgage loan origination/sales activities		803		742		1,150		2,517		1,983


Total mortgage banking		1,833		1,619		2,016		2,757		2,499


Insurance		423		568		503		564		397
Net gains (losses) from trading activities		(442)		414		612		532		470
Net gains (losses) on debt securities available for sale		300		(128)		(166)		(268)		(114)
Net gains from equity investments		344		724		353		317		131
Operating leases		284		103		77		79		222
All other		357		364		409		453		536


Total	$	9,086		9,708		9,678		10,431		9,776


FIVE QUARTER NONINTEREST EXPENSE


	Quarter ended


(in millions)	Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Salaries	$	3,718		3,584		3,454		3,513		3,478
Commission and incentive compensation		2,088		2,171		2,347		2,195		2,280
Employee benefits		780		1,164		1,392		1,192		1,074
Equipment		516		528		632		813		557
Net occupancy		751		749		752		750		742
Core deposit and other intangibles		466		464		483		549		548
FDIC and other deposit assessments		332		315		305		301		300
Outside professional services		640		659		580		781		533
Contract services		341		341		369		481		430
Foreclosed assets		271		305		408		452		366
Operating losses		198		428		472		193		230
Outside data processing		226		232		220		235		263
Postage, stationery and supplies		240		236		235		239		233
Travel and entertainment		198		205		206		221		195
Advertising and promotion		159		166		116		192		170
Telecommunications		128		132		134		151		146
Insurance		94		201		133		90		62
Operating leases		29		31		24		24		21
All other		502		564		471		968		625


Total	$	11,677		12,475		12,733		13,340		12,253

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET




(in millions, except shares)	Sept. 30, 2011		Dec. 31, 2010		% Change


Assets
Cash and due from banks	$	18,314		16,044		14	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		89,804		80,637		11
Trading assets		57,786		51,414		12
Securities available for sale		207,176		172,654		20
Mortgages held for sale (includes $38,845 and $47,531 carried at fair value)		42,704		51,763		(18)
Loans held for sale (includes $495 and $873 carried at fair value)		743		1,290		(42)

Loans (includes $0 and $309 carried at fair value)		760,106		757,267		-
Allowance for loan losses		(20,039)		(23,022)		(13)


Net loans		740,067		734,245		1


Mortgage servicing rights:
Measured at fair value		12,372		14,467		(14)
Amortized		1,397		1,419		(2)
Premises and equipment, net		9,607		9,644		-
Goodwill		25,038		24,770		1
Other assets		99,937		99,781		-


Total assets	$	1,304,945		1,258,128		4


Liabilities
Noninterest-bearing deposits	$	229,863		191,256		20
Interest-bearing deposits		665,565		656,686		1


Total deposits		895,428		847,942		6
Short-term borrowings		50,775		55,401		(8)
Accrued expenses and other liabilities		86,284		69,913		23
Long-term debt (includes $0 and $306 carried at fair value)		133,214		156,983		(15)


Total liabilities		1,165,701		1,130,239		3


Equity
Wells Fargo stockholders’ equity:
Preferred stock		11,566		8,689		33
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,341,553,681 and 5,272,414,622 shares		8,902		8,787		1
Additional paid-in capital		55,495		53,426		4
Retained earnings		61,135		51,918		18
Cumulative other comprehensive income		3,828		4,738		(19)
Treasury stock – 69,333,156 shares and 10,131,394 shares		(2,087)		(487)		329
Unearned ESOP shares		(1,071)		(663)		62


Total Wells Fargo stockholders’ equity		137,768		126,408		9
Noncontrolling interests		1,476		1,481		-


Total equity		139,244		127,889		9


Total liabilities and equity	$	1,304,945		1,258,128		4

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET




(in millions)	Sept. 30, 2011		June 30, 2011		Mar. 31, 2010		Dec. 31, 2010		Sept. 30, 2010


Assets
Cash and due from banks	$	18,314		24,059		16,978		16,044		16,001
Federal funds sold, securities purchased under resale agreements and other short-term investments		89,804		88,406		93,041		80,637		56,549
Trading assets		57,786		54,770		57,890		51,414		49,271
Securities available for sale		207,176		186,298		167,906		172,654		176,875
Mortgages held for sale		42,704		31,254		33,121		51,763		46,001
Loans held for sale		743		1,512		1,428		1,290		1,188

Loans		760,106		751,921		751,155		757,267		753,664
Allowance for loan losses		(20,039)		(20,893)		(21,983)		(23,022)		(23,939)


Net loans		740,067		731,028		729,172		734,245		729,725


Mortgage servicing rights:
Measured at fair value		12,372		14,778		15,648		14,467		12,486
Amortized		1,397		1,422		1,423		1,419		1,013
Premises and equipment, net		9,607		9,613		9,545		9,644		9,636
Goodwill		25,038		24,776		24,777		24,770		24,831
Other assets		99,937		91,818		93,737		99,781		97,208


Total assets	$	1,304,945		1,259,734		1,244,666		1,258,128		1,220,784


Liabilities
Noninterest-bearing deposits	$	229,863		202,143		190,959		191,256		184,451
Interest-bearing deposits		665,565		651,492		646,703		656,686		630,061


Total deposits		895,428		853,635		837,662		847,942		814,512
Short-term borrowings		50,775		53,881		54,737		55,401		50,715
Accrued expenses and other liabilities		86,284		71,430		68,721		69,913		67,249
Long-term debt		133,214		142,872		148,603		156,983		163,143


Total liabilities		1,165,701		1,121,818		1,109,723		1,130,239		1,095,619


Equity
Wells Fargo stockholders’ equity:
Preferred stock		11,566		11,730		11,897		8,689		8,840
Common stock		8,902		8,876		8,854		8,787		8,756
Additional paid-in capital		55,495		55,226		54,815		53,426		52,899
Retained earnings		61,135		57,942		54,855		51,918		48,953
Cumulative other comprehensive income		3,828		5,422		5,021		4,738		5,502
Treasury stock		(2,087)		(1,546)		(541)		(487)		(466)
Unearned ESOP shares		(1,071)		(1,249)		(1,430)		(663)		(826)


Total Wells Fargo stockholders’ equity		137,768		136,401		133,471		126,408		123,658
Noncontrolling interests		1,476		1,515		1,472		1,481		1,507


Total equity		139,244		137,916		134,943		127,889		125,165


Total liabilities and equity	$	1,304,945		1,259,734		1,244,666		1,258,128		1,220,784

Wells Fargo & Company and Subsidiaries

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


	Quarter ended
	Sept. 30, 2011						June 30, 2011						Mar. 31, 2011						Dec. 31, 2010						Sept. 30, 2010
($ in billions)	Average balance			Yields/ rates			Average balance			Yields/ rates			Average balance			Yields/ rates			Average balance			Yields/ rates			Average balance			Yields/ rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	98.9			0.42	%	$	98.5			0.32	%	$	83.4			0.35	%	$	72.0			0.40	%	$	70.8			0.38	%
Trading assets		37.9			3.67			38.0			3.71			37.4			3.81			33.9			3.56			29.0			3.77
Securities available for sale:
Securities of U.S. Treasury and federal agencies		9.6			1.02			2.1			2.33			1.6			2.87			1.7			2.80			1.7			2.79
Securities of U.S. states and political subdivisions		25.8			4.93			22.6			5.35			19.6			5.45			18.4			5.58			17.2			5.89
Mortgage-backed securities:
Federal agencies		77.3			4.41			74.4			4.76			73.5			4.72			80.4			4.48			70.5			5.35
Residential and commercial		34.3			7.46			32.5			8.86			32.9			9.68			33.4			10.95			33.4			12.53
Total mortgage-backed securities		111.6			5.36			106.9			5.98			106.4			6.21			113.8			6.35			103.9			7.67
Other debt and equity securities		40.7			4.69			37.0			5.81			35.9			5.55			37.8			6.15			35.5			6.02
Total securities available for sale		187.7			4.92			168.6			5.81			163.5			5.94			171.7			6.18			158.3			7.05
Mortgages held for sale		34.6			4.49			30.7			4.73			38.7			4.51			45.1			4.39			38.1			4.72
Loans held for sale		1.0			5.21			1.4			5.05			1.0			4.88			1.1			5.15			3.2			2.71
Loans:
Commercial:
Commercial and industrial		159.6			4.22			153.6			4.60			150.0			4.65			147.9			4.71			146.1			4.57
Real estate mortgage		102.4			3.93			101.5			4.16			99.9			3.92			99.2			3.85			99.0			4.15
Real estate construction		20.5			6.12			22.0			4.64			24.3			4.26			26.9			3.68			29.5			3.31
Lease financing		13.0			7.21			12.9			7.72			13.0			7.83			13.0			9.00			13.2			9.07
Foreign		38.2			2.42			36.4			2.65			33.6			2.83			31.0			3.57			30.3			3.15
Total commercial		333.7			4.16			326.4			4.37			320.8			4.33			318.0			4.42			318.1			4.37
Consumer:
Real estate 1-4 family first mortgage		223.8			4.83			224.9			4.97			229.6			5.01			228.8			5.06			231.2			5.16
Real estate 1-4 family junior lien mortgage		89.1			4.37			91.9			4.25			94.7			4.35			97.7			4.37			100.3			4.41
Credit card		21.5			12.96			21.0			12.97			21.5			13.18			21.9			13.44			22.0			13.57
Other revolving credit and installment		86.5			6.25			87.1			6.32			87.5			6.36			87.3			6.48			87.9			6.50
Total consumer		420.9			5.44			424.9			5.48			433.3			5.54			435.7			5.61			441.4			5.68
Total loans		754.6			4.87			751.3			5.00			754.1			5.03			753.7			5.11			759.5			5.13
Other		4.8			4.18			5.0			4.10			5.2			3.90			5.3			3.93			6.0			3.53
Total earning assets	$	1,119.5			4.43	%	$	1,093.5			4.64	%	$	1,083.3			4.73	%	$	1,082.8			4.87	%	$	1,064.9			5.01	%
Funding sources
Deposits:
Interest-bearing checking	$	44.0			0.07	%	$	53.3			0.09	%	$	58.5			0.10	%	$	60.9			0.09	%	$	59.7			0.10	%
Market rate and other savings		473.4			0.17			455.1			0.20			443.6			0.22			431.2			0.25			420.0			0.25
Savings certificates		67.6			1.47			72.1			1.42			74.4			1.39			79.1			1.43			85.0			1.50
Other time deposits		12.8			2.02			13.0			2.03			13.8			2.24			13.4			2.00			14.4			2.33
Deposits in foreign offices		63.5			0.23			57.9			0.23			57.5			0.23			55.5			0.21			52.1			0.24
Total interest-bearing deposits		661.3			0.34			651.4			0.37			647.8			0.38			640.1			0.41			631.2			0.45
Short-term borrowings		50.4			0.18			53.3			0.18			54.8			0.22			50.6			0.24			46.5			0.26
Long-term debt		139.5			2.81			145.5			2.78			150.1			2.95			160.8			2.86			177.1			2.76
Other liabilities		11.2			2.75			11.0			3.03			9.5			3.24			8.3			3.13			6.7			3.39
Total interest-bearing liabilities		862.4			0.76			861.2			0.80			862.2			0.85			859.8			0.89			861.5			0.94
Portion of noninterest-bearing funding sources		257.1			-			232.3			-			221.1			-			223.0			-			203.4			-
Total funding sources	$	1,119.5			0.59		$	1,093.5			0.63		$	1,083.3			0.68		$	1,082.8			0.71		$	1,064.9			0.76
Net interest margin on a taxable-equivalent basis					3.84	%					4.01	%					4.05	%					4.16	%					4.25	%
Noninterest-earning assets
Cash and due from banks	$	17.1						17.4						17.4						18.0						17.0
Goodwill		25.0						24.8						24.8						24.8						24.8
Other		119.7						115.2						115.7						111.4						113.7
Total noninterest-earnings assets	$	161.8						157.4						157.9						154.2						155.5
Noninterest-bearing funding sources
Deposits	$	221.2						199.3						193.1						197.9						184.8
Other liabilities		57.5						53.2						55.3						52.9						50.1
Total equity		140.2						137.2						130.6						126.4						124.0
Noninterest-bearing funding sources used to fund earning assets		(257.1	)					(232.3	)					(221.1	)					(223.0	)					(203.4	)
Net noninterest-bearing funding sources	$	161.8						157.4						157.9						154.2						155.5
Total assets	$	1,281.3						1,250.9						1,241.2						1,237.0						1,220.4

(1)	Our average prime rate was 3.25% for quarters ended September 30, June 30 and March 31, 2011, and December 31 and September 30, 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.30%, 0.26%, 0.31%, 0.29% and 0.39% for the same quarters, respectively.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER LOANS




(in millions)	Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Commercial:
Commercial and industrial	$	164,510		157,095		150,857		151,284		147,321
Real estate mortgage		104,363		101,458		101,084		99,435		98,755
Real estate construction		19,719		21,374		22,868		25,333		27,911
Lease financing		12,852		12,907		12,937		13,094		12,993
Foreign (1)		38,390		37,855		35,476		32,912		29,691


Total commercial		339,834		330,689		323,222		322,058		316,671


Consumer:
Real estate 1-4 family first mortgage		223,758		222,874		226,509		230,235		228,081
Real estate 1-4 family junior lien mortgage		88,264		89,947		93,041		96,149		99,060
Credit card		21,650		21,191		20,996		22,260		21,890
Other revolving credit and installment		86,600		87,220		87,387		86,565		87,962


Total consumer		420,272		421,232		427,933		435,209		436,993


Total loans (net of unearned income) (2)	$	760,106		751,921		751,155		757,267		753,664

(1)	Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign if the borrower’s primary address is outside of the United States.

(2)	Includes $37.2 billion, $38.7 billion, $40.0 billion, $41.4 billion and $43.8 billion of purchased credit-impaired (PCI) loans at September 30, June 30 and March 31, 2011, and December 31 and September 30, 2010, respectively. See table on page 29 for detail of PCI loans.

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)




(in millions)	Sept. 30, 2011			June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Nonaccrual loans:
Commercial:
Commercial and industrial	$	2,128			2,393		2,653		3,213		4,103
Real estate mortgage		4,429			4,691		5,239		5,227		5,079
Real estate construction		1,915			2,043		2,239		2,676		3,198
Lease financing		71			79		95		108		138
Foreign		68			59		86		127		126


Total commercial		8,611			9,265		10,312		11,351		12,644


Consumer:
Real estate 1-4 family first mortgage		11,024			11,427		12,143		12,289		12,969
Real estate 1-4 family junior lien mortgage		2,035			2,098		2,235		2,302		2,380
Other revolving credit and installment		230			255		275		300		312


Total consumer		13,289			13,780		14,653		14,891		15,661


Total nonaccrual loans (1)(2)(3)		21,900			23,045		24,965		26,242		28,305


As a percentage of total loans		2.88	%		3.06		3.32		3.47		3.76
Foreclosed assets:
GNMA (4)	$	1,336			1,320		1,457		1,479		1,492
Non-GNMA		3,608			3,541		4,055		4,530		4,635


Total foreclosed assets		4,944			4,861		5,512		6,009		6,127


Total nonperforming assets	$	26,844			27,906		30,477		32,251		34,432


As a percentage of total loans		3.53	%		3.71		4.06		4.26		4.57

(1)	Also includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.

(2)	Excludes loans acquired from Wachovia that are accounted for as PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.

(3)

Real estate 1-4 family mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans primarily guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status since they are insured or guaranteed.

(4)

Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the FHA or guaranteed by the VA.

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING




(in millions)	Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Total (excluding PCI)(1):	$	19,639		17,318		17,901		18,488		18,815
Less: FHA insured/guaranteed by the VA (2)		16,498		14,474		14,353		14,733		14,529
Less: Student loans guaranteed under the FFELP (3)		1,212		1,014		1,120		1,106		1,113


Total, not government insured/guaranteed	$	1,929		1,830		2,428		2,649		3,173


By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	108		110		338		308		222
Real estate mortgage		207		137		177		104		463
Real estate construction		57		86		156		193		332
Foreign		11		12		16		22		27


Total commercial		383		345		687		627		1,044


Consumer:
Real estate 1-4 family first mortgage (4)		819		728		858		941		1,016
Real estate 1-4 family junior lien mortgage (4)		255		286		325		366		361
Credit card		328		334		413		516		560
Other revolving credit and installment		144		137		145		199		192


Total consumer		1,546		1,485		1,741		2,022		2,129


Total, not government insured/guaranteed	$	1,929		1,830		2,428		2,649		3,173

(1)

The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $8.9 billion, $9.8 billion, $10.8 billion, $11.6 billion and $13.0 billion at September 30, June 30 and March 31, 2011, and December 31 and September 30, 2010, respectively. These amounts are excluded from the above table as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

(2)	Represents loans whose repayments are insured by the FHA or guaranteed by the VA.

(3)	Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program (FFELP).

(4)	Includes mortgages held for sale 90 days or more past due and still accruing.

Wells Fargo & Company and Subsidiaries

PURCHASED CREDIT-IMPAIRED (PCI) LOANS

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.

Under the accounting guidance for PCI loans, the excess of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan, or pool of loans, in situations where there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference.

Subsequent to acquisition, we regularly evaluate our estimates of cash flows expected to be collected. These evaluations, performed quarterly, require the continued usage of key assumptions and estimates, similar to the initial estimate of fair value. If we have probable decreases in the expected cash flows (other than due to a decrease in rate indices), we charge the provision for credit losses, resulting in an increase to the allowance for loan losses. If we have probable and significant increases in the expected cash flows subsequent to establishing an additional allowance, we first reverse any previously established allowance and then increase interest income over the remaining life of the loan, or pool of loans.

As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.




	Sept. 30,		December 31,


(in millions)	2011		2010		2009		2008


Commercial:
Commercial and industrial	$	483		718		1,911		4,580
Real estate mortgage		2,808		2,855		4,137		5,803
Real estate construction		1,842		2,949		5,207		6,462
Foreign		1,418		1,413		1,733		1,859


Total commercial		6,551		7,935		12,988		18,704


Consumer:
Real estate 1-4 family first mortgage		30,446		33,245		38,386		39,214
Real estate 1-4 family junior lien mortgage		216		250		331		728
Other revolving credit and installment		-		-		-		151


Total consumer		30,662		33,495		38,717		40,093


Total PCI loans (carrying value)	$	37,213		41,430		51,705		58,797

Wells Fargo & Company and Subsidiaries

CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS

The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. A nonaccretable difference was established in purchase accounting for PCI loans to absorb losses expected at that time on those loans. Amounts absorbed by the nonaccretable difference do not affect the income statement or the allowance for credit losses. Substantially all our commercial and industrial, CRE and foreign PCI loans are accounted for as individual loans. Conversely, Pick-a-Pay and other consumer PCI loans have been aggregated into several pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Resolutions of loans may include sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Our policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference. This removal method assumes that the amount received from resolution approximates pool performance expectations. The accretable yield percentage is unaffected by the resolution and any changes in the effective yield for the remaining loans in the pool are addressed by our quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no release of the nonaccretable difference for the pool because there is no difference between the amount received at resolution and the contractual amount of the loan. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed troubled debt restructurings (TDRs). Modified PCI loans that are accounted for individually are considered TDRs, and removed from PCI accounting, if there has been a concession granted in excess of the original nonaccretable difference. The following table provides an analysis of changes in the nonaccretable difference.




(in millions)	Commercial		Pick-a-Pay		Other consumer		Total


Balance at December 31, 2008	$	10,410		26,485		4,069		40,964

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(330)		-		-		(330)
Loans resolved by sales to third parties (2)		(86)		-		(85)		(171)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(138)		(27)		(276)		(441)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(4,853)		(10,218)		(2,086)		(17,157)


Balance at December 31, 2009		5,003		16,240		1,622		22,865

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(817)		-		-		(817)
Loans resolved by sales to third parties (2)		(172)		-		-		(172)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(726)		(2,356)		(317)		(3,399)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(1,698)		(2,959)		(391)		(5,048)


Balance at December 31, 2010		1,590		10,925		914		13,429

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(154)		-		-		(154)
Loans resolved by sales to third parties (2)		(30)		-		-		(30)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(297)		-		(21)		(318)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(151)		(1,282)		(207)		(1,640)


Balance at September 30, 2011	$	958		9,643		686		11,287




Balance at June 30, 2011	$	1,192		10,136		733		12,061

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(65)		-		-		(65)
Loans resolved by sales to third parties (2)		(5)		-		-		(5)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(108)		-		-		(108)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(56)		(493)		(47)		(596)


Balance at September 30, 2011	$	958		9,643		686		11,287

(1)

Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations.

(2)	Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale.

(3)	Reclassification of nonaccretable difference to accretable yield for loans with increased cash flow estimates will result in increased interest income as a prospective yield adjustment over the remaining life of the loan or pool of loans.

(4)	Write-downs to net realizable value of PCI loans are absorbed by the nonaccretable difference when severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

Wells Fargo & Company and Subsidiaries

CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS

The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is recognized in interest income using an effective yield method over the remaining life of the loan, or pool of loans. The accretable yield is affected by:

•

Changes in interest rate indices for variable rate PCI loans – Expected future cash flows are based on the variable rates in effect at the time of the regular evaluations of cash flows expected to be collected;

•

Changes in prepayment assumptions – Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and

•

Changes in the expected principal and interest payments over the estimated life – Updates to expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.

The change in the accretable yield related to PCI loans is presented in the following table.




		Quarter ended Sept. 30,		Nine months ended Sept. 30,		Year ended Dec. 31,


(in millions)		2011		2011		2010		2009


Total, beginning of period	$		14,871		16,714		14,559		10,447
Accretion into interest income (1)			(553)		(1,655)		(2,392)		(2,601)
Accretion into noninterest income due to sales (2)			(3)		(189)		(43)		(5)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows			108		318		3,399		441
Changes in expected cash flows that do not affect nonaccretable difference (3)			2,473		1,708		1,191		6,277


Total, end of period	$		16,896		16,896		16,714		14,559

(1)	Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.

(2)	Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.

(3)	Represents changes in cash flows expected to be collected due to changes in interest rates on variable rate PCI loans, changes in prepayment assumptions and the impact of modifications.

CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES

When it is estimated that the cash flows expected to be collected have decreased subsequent to acquisition for a PCI loan or pool of loans, an allowance is established and a provision for additional loss is recorded as a charge to income. The following table summarizes the changes in allowance for PCI loan losses.




(in millions)	Commercial		Pick-a-Pay		Other consumer		Total


Balance at December 31, 2008	$	-		-		-		-
Provision for losses due to credit deterioration		850		-		3		853
Charge-offs		(520)		-		-		(520)


Balance at December 31, 2009		330		-		3		333
Provision for losses due to credit deterioration		712		-		59		771
Charge-offs		(776)		-		(30)		(806)


Balance at December 31, 2010		266		-		32		298
Provision for losses due to credit deterioration		132		-		44		176
Charge-offs		(156)		-		(16)		(172)


Balance at September 30, 2011	$	242		-		60		302




Balance at June 30, 2011	$	215		-		58		273
Provision for losses due to credit deterioration		77		-		6		83
Charge-offs		(50)		-		(4)		(54)


Balance at September 30, 2011	$	242		-		60		302

Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)



	September 30, 2011

	PCI loans										All other loans

(in millions)	Adjusted unpaid principal balance (2)		Current LTV ratio (3)			Carrying value (4)		Ratio of carrying value to current value (5)			Carrying value (4)		Ratio of carrying value to current value (5)


California	$	25,833		119	%	$	19,721		90	%	$	18,372		84	%
Florida		3,461		122			2,651		89			3,871		101
New Jersey		1,359		92			1,229		82			2,380		78
Texas		348		79			319		72			1,536		64
New York		765		93			684		82			1,035		81
Other states		6,294		110			5,111		88			10,452		86


Total Pick-a-Pay loans	$	38,060				$	29,715				$	37,646

(1)	The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2011.

(2)	Adjusted unpaid principal balance includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

(3)

The current LTV ratio is calculated as the adjusted unpaid principal balance divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.

(4)

Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include the nonaccretable difference and the accretable yield and, for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.

(5)	The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.

Wells Fargo & Company and Subsidiaries

NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS




(in millions)	Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010


Commercial:
Legacy Wachovia commercial and industrial, commercial real estate and foreign PCI loans (1)	$	6,321		7,016		7,507		7,935


Total commercial		6,321		7,016		7,507		7,935


Consumer:
Pick-a-Pay mortgage (1)		67,361		69,587		71,506		74,815
Liquidating home equity		5,982		6,266		6,568		6,904
Legacy Wells Fargo Financial indirect auto		3,101		3,881		4,941		6,002
Legacy Wells Fargo Financial debt consolidation		17,186		17,730		18,344		19,020
Education Finance - government guaranteed (2)		15,611		16,295		16,907		17,510
Legacy Wachovia other PCI loans (1)		947		978		1,048		1,118


Total consumer		110,188		114,737		119,314		125,369


Total non-strategic and liquidating loan portfolios	$	116,509		121,753		126,821		133,304

(1)	Net of purchase accounting adjustments related to PCI loans.

(2)

Effective first quarter 2011, we included our education finance government guaranteed loan portfolio as there is no longer a U.S. Government guaranteed student loan program available to private financial institutions, pursuant to legislation in 2010. Prior periods have been adjusted to reflect this change.

HOME EQUITY PORTFOLIOS (1)




	Outstanding balances				% of loans two payments or more past due					Loss rate (annualized) Quarter ended


(in millions)	Sept. 30, 2011		Dec. 31, 2010		Sept. 30, 2011			Dec. 31, 2010		Sept. 30, 2011		Dec. 31, 2010


Core portfolio (2)
California	$	26,061		27,850		2.95	%		3.30		3.41		3.95
Florida		11,099		12,036		4.99			5.46		4.42		5.84
New Jersey		8,113		8,629		3.61			3.44		2.17		1.83
Virginia		5,349		5,667		2.14			2.33		1.67		1.70
Pennsylvania		5,174		5,432		2.57			2.48		1.38		1.11
Other		47,304		50,976		2.75			2.83		2.64		2.86


Total		103,100		110,590		3.07			3.24		2.88		3.24


Liquidating portfolio
California		2,119		2,555		5.47			6.66		12.62		13.48
Florida		275		330		7.20			8.85		11.06		10.59
Arizona		119		149		6.66			6.91		18.30		18.45
Texas		101		125		1.01			2.02		3.07		2.95
Minnesota		78		91		3.92			5.39		6.11		8.73
Other		3,290		3,654		4.04			4.53		6.20		6.46


Total		5,982		6,904		4.69			5.54		8.97		9.49


Total core and liquidating portfolios	$	109,082		117,494		3.16			3.37		3.22		3.61

(1)	Consists predominantly of real estate 1-4 family junior lien mortgages and first and junior lines of credit secured by real estate, excluding PCI loans.

(2)	Includes $1.5 billion at September 30, 2011, and $1.7 billion at December 31, 2010, associated with the Pick-a-Pay portfolio.

Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES



	Quarter ended Sept. 30,					Nine months ended Sept. 30,

(in millions)	2011			2010		2011		2010


Balance, beginning of period	$	21,262			25,085		23,463		25,031
Provision for credit losses		1,811			3,445		5,859		12,764
Interest income on certain impaired loans (1)		(84)			(67)		(246)		(203)
Loan charge-offs:
Commercial:
Commercial and industrial		(349)			(588)		(1,182)		(2,165)
Real estate mortgage		(119)			(236)		(483)		(881)
Real estate construction		(98)			(296)		(316)		(990)
Lease financing		(10)			(29)		(30)		(94)
Foreign		(25)			(49)		(121)		(148)


Total commercial		(601)			(1,198)		(2,132)		(4,278)


Consumer:
Real estate 1-4 family first mortgage		(900)			(1,164)		(2,979)		(3,701)
Real estate 1-4 family junior lien mortgage		(893)			(1,140)		(2,907)		(3,875)
Credit card		(320)			(556)		(1,146)		(1,891)
Other revolving credit and installment		(421)			(572)		(1,312)		(1,864)


Total consumer		(2,534)			(3,432)		(8,344)		(11,331)


Total loan charge-offs		(3,135)			(4,630)		(10,476)		(15,609)


Loan recoveries:
Commercial:
Commercial and industrial		88			79		313		317
Real estate mortgage		23			18		107		32
Real estate construction		43			20		106		82
Lease financing		7			6		20		15
Foreign		17			10		38		31


Total commercial		178			133		584		477


Consumer:
Real estate 1-4 family first mortgage		79			130		345		347
Real estate 1-4 family junior lien mortgage		51			55		162		157
Credit card		54			52		204		165
Other revolving credit and installment		162			165		522		549


Total consumer		346			402		1,233		1,218


Total loan recoveries		524			535		1,817		1,695


Net loan charge-offs (2)		(2,611)			(4,095)		(8,659)		(13,914)


Allowances related to business combinations/other (3)		(6)			4		(45)		694


Balance, end of period	$	20,372			24,372		20,372		24,372


Components:
Allowance for loan losses	$	20,039			23,939		20,039		23,939
Allowance for unfunded credit commitments		333			433		333		433


Allowance for credit losses (4)	$	20,372			24,372		20,372		24,372


Net loan charge-offs (annualized) as a percentage of average total loans (2)		1.37	%		2.14		1.54		2.40
Allowance for loan losses as a percentage of total loans (4)		2.64			3.18		2.64		3.18
Allowance for credit losses as a percentage of total loans (4)		2.68			3.23		2.68		3.23

(1)	Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.

(2)	For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.

(3)	Includes $693 million for the nine months ended September 30, 2010, related to the adoption of consolidation accounting guidance on January 1, 2010.

(4)	The allowance for credit losses includes $302 million and $379 million at September 30, 2011 and 2010, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES



	Quarter ended


(in millions)	Sept. 30, 2011			June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Balance, beginning of quarter	$	21,262			22,383		23,463		24,372		25,085
Provision for credit losses		1,811			1,838		2,210		2,989		3,445
Interest income on certain impaired loans (1)		(84)			(79)		(83)		(63)		(67)
Loan charge-offs:
Commercial:
Commercial and industrial		(349)			(365)		(468)		(610)		(588)
Real estate mortgage		(119)			(185)		(179)		(270)		(236)
Real estate construction		(98)			(99)		(119)		(199)		(296)
Lease financing		(10)			(7)		(13)		(26)		(29)
Foreign		(25)			(57)		(39)		(50)		(49)


Total commercial		(601)			(713)		(818)		(1,155)		(1,198)


Consumer:
Real estate 1-4 family first mortgage		(900)			(1,064)		(1,015)		(1,199)		(1,164)
Real estate 1-4 family junior lien mortgage		(893)			(968)		(1,046)		(1,059)		(1,140)
Credit card		(320)			(378)		(448)		(505)		(556)
Other revolving credit and installment		(421)			(391)		(500)		(573)		(572)


Total consumer		(2,534)			(2,801)		(3,009)		(3,336)		(3,432)


Total loan charge-offs		(3,135)			(3,514)		(3,827)		(4,491)		(4,630)


Loan recoveries:
Commercial:
Commercial and industrial		88			111		114		110		79
Real estate mortgage		23			57		27		36		18
Real estate construction		43			27		36		28		20
Lease financing		7			6		7		5		6
Foreign		17			10		11		22		10


Total commercial		178			211		195		201		133


Consumer:
Real estate 1-4 family first mortgage		79			155		111		175		130
Real estate 1-4 family junior lien mortgage		51			59		52		54		55
Credit card		54			84		66		53		52
Other revolving credit and installment		162			167		193		169		165


Total consumer		346			465		422		451		402


Total loan recoveries		524			676		617		652		535


Net loan charge-offs		(2,611)			(2,838)		(3,210)		(3,839)		(4,095)


Allowances related to business combinations/other		(6)			(42)		3		4		4


Balance, end of quarter	$	20,372			21,262		22,383		23,463		24,372


Components:
Allowance for loan losses	$	20,039			20,893		21,983		23,022		23,939
Allowance for unfunded credit commitments		333			369		400		441		433


Allowance for credit losses	$	20,372			21,262		22,383		23,463		24,372


Net loan charge-offs (annualized) as a percentage of average total loans		1.37	%		1.52		1.73		2.02		2.14
Allowance for loan losses as a percentage of:
Total loans		2.64			2.78		2.93		3.04		3.18
Nonaccrual loans		92			91		88		88		85
Nonaccrual loans and other nonperforming assets		75			75		72		71		69
Allowance for credit losses as a percentage of:
Total loans		2.68			2.83		2.98		3.10		3.23
Nonaccrual loans		93			92		90		89		86
Nonaccrual loans and other nonperforming assets		76			76		73		72		70

(1)	Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.

Wells Fargo & Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY



	Nine months ended Sept. 30,


(in millions)	2011		2010


Balance, beginning of period	$	127,889		114,359
Cumulative effect from change in accounting for VIEs (1)		-		183
Cumulative effect from change in accounting for embedded credit derivatives (2)		-		(28)
Wells Fargo net income		11,762		8,948
Wells Fargo other comprehensive income (loss), net of tax, related to:
Translation adjustments		(18)		16
Investment securities		(779)		2,202
Derivative instruments and hedging activities		(156)		227
Defined benefit pension plans		43		48
Common stock issued		1,014		1,050
Common stock repurchased (3)		(1,762)		(71)
Preferred stock released by ESOP		824		645
Preferred stock issued		2,501		-
Common stock warrants repurchased		(1)		(544)
Common stock dividends		(1,905)		(783)
Preferred stock dividends and other		(625)		(548)
Noncontrolling interests and other, net		457		(539)


Balance, end of period	$	139,244		125,165

(1)

Effective January 1, 2010, we adopted changes in consolidation accounting pursuant to amendments by ASU 2009-17 to ASC 810 (FAS 167) and, accordingly, consolidated certain VIEs that were not included in our consolidated financial statements at December 31, 2009. We recorded a $183 million increase to beginning retained earnings as a cumulative effect adjustment.

(2)

Effective July 1, 2010, we adopted changes in accounting for embedded credit derivatives pursuant to ASU 2010-11, which provides guidance clarifying the accounting for embedded credit derivative features in certain financial instruments. We recorded a $28 million decrease to beginning retained earnings as a cumulative effect adjustment.

(3)	For the nine months ended September 30, 2011, includes $150 million related to a private forward repurchase transaction entered into in third quarter 2011 that will settle in fourth quarter 2011 for an estimated 6 million shares of common stock.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER TIER 1 COMMON EQUITY UNDER BASEL I (1)



(in billions)		Sept. 30, 2011			June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Total equity		$	139.2			137.9		134.9		127.9		125.2
Noncontrolling interests			(1.5)			(1.5)		(1.5)		(1.5)		(1.5)


Total Wells Fargo stockholders’ equity			137.7			136.4		133.4		126.4		123.7


Adjustments:
Preferred equity			(10.6)			(10.6)		(10.6)		(8.1)		(8.1)
Goodwill and intangible assets (other than MSRs)			(34.4)			(34.6)		(35.1)		(35.5)		(36.1)
Applicable deferred taxes			4.0			4.1		4.2		4.3		4.7
MSRs over specified limitations			(0.7)			(0.9)		(0.9)		(0.9)		(0.9)
Cumulative other comprehensive income			(3.7)			(5.3)		(4.9)		(4.6)		(5.4)
Other			(0.4)			(0.3)		(0.1)		(0.3)		(0.3)


Tier 1 common equity	(A)	$	91.9			88.8		86.0		81.3		77.6


Total risk-weighted assets (2)	(B)	$	982.0			970.2		962.9		980.0		968.4


Tier 1 common equity to total risk-weighted assets	(A)/(B)		9.35	%		9.15		8.93		8.30		8.01

(1)

Tier 1 common equity is a non-generally accepted accounting principle (GAAP) financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews Tier 1 common equity along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.

(2)

Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets. The Company’s September 30, 2011, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $818.4 billion and derivative and off-balance sheet risk-weighted assets of $163.6 billion.

Wells Fargo & Company and Subsidiaries

TIER 1 COMMON EQUITY UNDER BASEL III (ESTIMATED) (1)



(in billions)		Sept. 30, 2011


Tier 1 common equity under Basel I		$	91.9


Adjustments from Basel I to Basel III:

Cumulative other comprehensive income (2)			3.7

Threshold deductions defined under Basel III (2)(3)			(1.5)

Other			0.2


Tier 1 common equity anticipated under Basel III	(C)		94.3


Total risk-weighted assets anticipated under Basel III (4)	(D)	$	1,272.2


Tier 1 common equity to total risk-weighted assets anticipated under Basel III	(C)/(D)		7.41	%

(1)

(2)	Volatility in interest rates can have a significant impact on the valuation of cumulative other comprehensive income and MSRs and therefore, impact adjustments under Basel III in future reporting periods.

(3)	Threshold deductions under Basel III include individual and aggregate limitations, as a percentage of Tier 1 common equity (as defined under Basel III), with respect to MSRs, deferred tax assets and investments in unconsolidated financial companies.

(4)

Under current Basel proposals, risk-weighted assets incorporate different classifications of assets, with certain risk weights based on a borrower’s credit rating or Wells Fargo’s own risk models, along with adjustments to address a combination of credit/counterparty, operational and market risks, and other Basel III elements. The amount of risk-weighted assets anticipated under Basel III is preliminary and subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory authorities.

Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS (1)



	Community				Wholesale				Wealth, Brokerage								Consolidated
	Banking				Banking				and Retirement				Other (2)				Company

(income/expense in millions, average balances in billions)	2011		2010		2011		2010		2011		2010		2011		2010		2011		2010


Quarter ended Sept. 30,
Net interest income (3)	$	7,264		7,818		2,910		2,927		714		683		(346)		(330)		10,542		11,098
Provision (reversal of provision) for credit losses		1,978		3,155		(178)		280		48		77		(37)		(67)		1,811		3,445
Noninterest income		5,232		5,629		2,240		2,461		2,173		2,229		(559)		(543)		9,086		9,776
Noninterest expense		6,901		7,333		2,689		2,719		2,368		2,420		(281)		(219)		11,677		12,253


Income (loss) before income tax expense (benefit)		3,617		2,959		2,639		2,389		471		415		(587)		(587)		6,140		5,176
Income tax expense (benefit)		1,217		951		826		866		178		157		(223)		(223)		1,998		1,751


Net income (loss) before noncontrolling interests		2,400		2,008		1,813		1,523		293		258		(364)		(364)		4,142		3,425
Less: Net income from noncontrolling interests		85		73		-		11		2		2		-		-		87		86


Net income (loss) (4)	$	2,315		1,935		1,813		1,512		291		256		(364)		(364)		4,055		3,339


Average loans	$	491.0		522.2		253.4		227.3		43.1		42.6		(33.0)		(32.6)		754.5		759.5
Average assets		754.4		770.0		438.0		371.8		155.1		138.2		(66.1)		(59.6)		1,281.4		1,220.4
Average core deposits		556.3		537.1		209.3		170.8		133.4		120.7		(62.2)		(56.6)		836.8		772.0



Nine months ended Sept. 30,
Net interest income (3)	$	22,166		24,134		8,633		8,509		2,101		2,031		(1,029)		(980)		31,871		33,694
Provision (reversal of provision) for credit losses		5,970		11,022		(141)		1,725		150		221		(120)		(204)		5,859		12,764
Noninterest income		15,534		16,883		7,608		8,076		7,022		6,658		(1,692)		(1,595)		28,472		30,022
Noninterest expense		21,924		22,216		8,255		8,277		7,414		7,160		(708)		(537)		36,885		37,116


Income (loss) before income tax expense (benefit)		9,806		7,779		8,127		6,583		1,559		1,308		(1,893)		(1,834)		17,599		13,836
Income tax expense (benefit)		2,990		2,511		2,710		2,357		590		495		(719)		(697)		5,571		4,666


Net income (loss) before noncontrolling interests		6,816		5,268		5,417		4,226		969		813		(1,174)		(1,137)		12,028		9,170
Less: Net income from noncontrolling interests		239		202		21		15		6		5		-		-		266		222


Net income (loss) (4)	$	6,577		5,066		5,396		4,211		963		808		(1,174)		(1,137)		11,762		8,948


Average loans	$	499.6		535.5		243.8		230.8		43.1		43.0		(33.2)		(33.0)		753.3		776.3
Average assets		755.6		772.6		417.9		370.3		149.8		139.0		(65.3)		(58.4)		1,258.0		1,223.5
Average core deposits		552.2		533.7		195.0		164.9		128.3		121.1		(61.6)		(55.4)		813.9		764.3

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. In first quarter 2010, we conformed certain funding and allocation methodologies of legacy Wachovia to those of Wells Fargo; in addition, amounts remaining in “Other” related to integration expense were revised to reflect only integration expense related to the Wachovia merger. In fourth quarter 2010, we realigned certain lending businesses into Wholesale Banking from Community Banking to reflect our previously announced restructuring of Wells Fargo Financial. Prior periods have been revised to reflect these changes.

(2)	Includes Wachovia integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement, largely representing wealth management customers serviced and products sold in the stores.

(3)

Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.

(4)	Represents segment net income (loss) for Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement segments and Wells Fargo net income for the consolidated company.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)



	Quarter ended

(income/expense in millions, average balances in billions)	Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


COMMUNITY BANKING
Net interest income (2)	$	7,264		7,359		7,543		7,751		7,818
Provision for credit losses		1,978		1,927		2,065		2,785		3,155
Noninterest income		5,232		5,208		5,094		5,721		5,629
Noninterest expense		6,901		7,418		7,605		7,855		7,333


Income before income tax expense		3,617		3,222		2,967		2,832		2,959
Income tax expense		1,217		1,031		742		836		951


Net income before noncontrolling interests		2,400		2,191		2,225		1,996		2,008
Less: Net income from noncontrolling interests		85		104		50		72		73


Segment net income	$	2,315		2,087		2,175		1,924		1,935


Average loans	$	491.0		498.2		509.8		514.1		522.2
Average assets		754.4		752.5		759.9		771.6		770.0
Average core deposits		556.3		552.0		548.1		544.4		537.1



WHOLESALE BANKING
Net interest income (2)	$	2,910		2,968		2,755		2,965		2,927
Provision (reversal of provision) for credit losses		(178)		(97)		134		195		280
Noninterest income		2,240		2,663		2,705		2,875		2,461
Noninterest expense		2,689		2,766		2,800		2,992		2,719


Income before income tax expense		2,639		2,962		2,526		2,653		2,389
Income tax expense		826		1,012		872		958		866


Net income before noncontrolling interests		1,813		1,950		1,654		1,695		1,523
Less: Net income from noncontrolling interests		-		19		2		5		11


Segment net income	$	1,813		1,931		1,652		1,690		1,512


Average loans	$	253.4		243.1		234.7		229.6		227.3
Average assets		438.0		415.7		399.6		384.4		371.8
Average core deposits		209.3		190.6		184.8		185.1		170.8



WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	714		691		696		676		683
Provision for credit losses		48		61		41		113		77
Noninterest income		2,173		2,395		2,454		2,365		2,229
Noninterest expense		2,368		2,487		2,559		2,608		2,420


Income before income tax expense		471		538		550		320		415
Income tax expense		178		204		208		121		157


Net income before noncontrolling interests		293		334		342		199		258
Less: Net income from noncontrolling interests		2		1		3		2		2


Segment net income	$	291		333		339		197		256


Average loans	$	43.1		43.5		42.7		43.0		42.6
Average assets		155.1		147.7		146.5		140.2		138.2
Average core deposits		133.4		126.0		125.4		121.5		120.7



OTHER (3)
Net interest income (2)	$	(346)		(340)		(343)		(329)		(330)
Provision for credit losses		(37)		(53)		(30)		(104)		(67)
Noninterest income		(559)		(558)		(575)		(530)		(543)
Noninterest expense		(281)		(196)		(231)		(115)		(219)


Loss before income tax benefit		(587)		(649)		(657)		(640)		(587)
Income tax benefit		(223)		(246)		(250)		(243)		(223)


Net loss before noncontrolling interests		(364)		(403)		(407)		(397)		(364)
Less: Net income from noncontrolling interests		-		-		-		-		-


Other net loss	$	(364)		(403)		(407)		(397)		(364)


Average loans	$	(33.0)		(33.5)		(33.1)		(33.0)		(32.6)
Average assets		(66.1)		(65.0)		(64.8)		(59.2)		(59.6)
Average core deposits		(62.2)		(61.1)		(61.5)		(56.2)		(56.6)



CONSOLIDATED COMPANY
Net interest income (2)	$	10,542		10,678		10,651		11,063		11,098
Provision for credit losses		1,811		1,838		2,210		2,989		3,445
Noninterest income		9,086		9,708		9,678		10,431		9,776
Noninterest expense		11,677		12,475		12,733		13,340		12,253


Income before income tax expense		6,140		6,073		5,386		5,165		5,176
Income tax expense		1,998		2,001		1,572		1,672		1,751


Net income before noncontrolling interests		4,142		4,072		3,814		3,493		3,425
Less: Net income from noncontrolling interests		87		124		55		79		86

Wells Fargo net income	$	4,055		3,948		3,759		3,414		3,339


Average loans	$	754.5		751.3		754.1		753.7		759.5
Average assets		1,281.4		1,250.9		1,241.2		1,237.0		1,220.4
Average core deposits		836.8		807.5		796.8		794.8		772.0

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. In fourth quarter 2010, we realigned certain lending businesses into Wholesale Banking from Community Banking to reflect our previously announced restructuring of Wells Fargo Financial. In first quarter 2011, we realigned a private equity business into Wholesale Banking from Community Banking. Prior periods have been revised to reflect these changes.

(2)

(3)	Includes Wachovia integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement, largely representing wealth management customers serviced and products sold in the stores.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING



	Quarter ended

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2011		2011		2011		2010		2010


MSRs measured using the fair value method:

Fair value, beginning of quarter	$	14,778		15,648		14,467		12,486		13,251
Servicing from securitizations or asset transfers		744		740		1,262		1,052		1,043
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		(2,640)		(1,075)		499		1,613		(1,132)
Other changes in fair value (2)		(510)		(535)		(580)		(684)		(676)


Total changes in fair value		(3,150)		(1,610)		(81)		929		(1,808)


Fair value, end of quarter	$	12,372		14,778		15,648		14,467		12,486

(1)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates and costs to service, including delinquency and foreclosure costs.

(2)	Represents changes due to collection/realization of expected cash flows over time.



	Quarter ended

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2011		2011		2011		2010		2010


Amortized MSRs:

Balance, beginning of quarter	$	1,432		1,432		1,422		1,013		1,037
Purchases		21		36		45		36		14
Servicing from securitizations or asset transfers		50		27		29		432		18
Amortization		(66)		(63)		(64)		(59)		(56)


Balance, end of quarter		1,437		1,432		1,432		1,422		1,013


Valuation Allowance:

Balance, beginning of quarter		(10)		(9)		(3)		-		-
Provision for MSRs in excess of fair value		(30)		(1)		(6)		(3)		-


Balance, end of quarter		(40)		(10)		(9)		(3)		-


Amortized MSRs, net	$	1,397		1,422		1,423		1,419		1,013


Fair value of amortized MSRs:

Beginning of quarter	$	1,805		1,898		1,812		1,349		1,307
End of quarter		1,759		1,805		1,898		1,812		1,349

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)



	Quarter ended

(in millions)	Sept. 30, 2011			June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Servicing income, net:
Servicing fees (1)	$	1,029			1,102		1,137		1,129		1,192
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(2,640)			(1,075)		499		1,613		(1,132)
Other changes in fair value (3)		(510)			(535)		(580)		(684)		(676)


Total changes in fair value of MSRs carried at fair value		(3,150)			(1,610)		(81)		929		(1,808)
Amortization		(66)			(63)		(64)		(59)		(56)
Provision for MSRs in excess of fair value		(30)			(1)		(6)		(3)		-
Net derivative gains (losses) from economic hedges (4)		3,247			1,449		(120)		(1,756)		1,188


Total servicing income, net	$	1,030			877		866		240		516


Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	607			374		379		(143)		56


(1) Includes contractually specified servicing fees, late charges and other ancillary revenues. (2) Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates and costs to service, including delinquency and foreclosure costs. (3) Represents changes due to collection/realization of expected cash flows over time. (4) Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs.

(in billions)	Sept. 30, 2011			June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,457			1,464		1,453		1,429		1,433
Owned loans serviced		349			338		346		371		365
Subservicing		8			8		9		9		10


Total residential servicing		1,814			1,810		1,808		1,809		1,808


Commercial mortgage servicing:
Serviced for others		401			402		406		408		439
Owned loans serviced		104			101		101		99		99
Subservicing		14			14		14		13		10


Total commercial servicing		519			517		521		520		548


Total managed servicing portfolio	$	2,333			2,327		2,329		2,329		2,356


Total serviced for others	$	1,858			1,866		1,859		1,837		1,872
Ratio of MSRs to related loans serviced for others		0.74	%		0.87		0.92		0.86		0.72
Weighted-average note rate (mortgage loans serviced for others)		5.21			5.26		5.31		5.39		5.46


(1) The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book value for owned loans serviced.
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA

	Quarter ended

(in billions)	Sept. 30, 2011			June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010


Application data:
Wells Fargo first mortgage quarterly applications	$	169			109		102		158		194
Refinances as a percentage of applications		74	%		55		61		73		80
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	84			51		45		73		101





Residential Real Estate Originations:
Wells Fargo first mortgage loans:
Retail	$	43			34		49		70		53
Correspondent/Wholesale		45			29		34		57		47
Other (1)		1			1		1		1		1


Total quarter-to-date	$	89			64		84		128		101


Total year-to-date	$	237			148		84		386		258

(1)	Consists of home equity loans and lines and legacy Wells Fargo Financial.

Wells Fargo & Company and Subsidiaries

CHANGES IN LIABILITY FOR MORTGAGE LOAN REPURCHASE LOSSES



	Quarter ended						Nine months ended

(in millions)	Sept. 30, 2011		June 30, 2011		Sept. 30, 2010		Sept. 30, 2011		Sept. 30, 2010


Balance, beginning of period	$	1,188		1,207		1,375		1,289		1,033
Provision for repurchase losses:
Loan sales		19		20		29		74		109
Change in estimate – primarily due to credit deterioration		371		222		341		807		1,045


Total additions		390		242		370		881		1,154

Losses		(384)		(261)		(414)		(976)		(856)


Balance, end of period	$	1,194		1,188		1,331		1,194		1,331

OUTSTANDING REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS

($ in millions)			Government sponsored entities (1)		Private		Mortgage insurance rescissions (2)		Total


September 30, 2011
Number of loans				6,577		582		1,508		8,667
Original loan balance (3)			$	1,500		208		314		2,022

June 30, 2011
Number of loans				6,876		695		2,019		9,590
Original loan balance (3)			$	1,565		230		444		2,239

March 31, 2011
Number of loans				6,210		1,973		2,885		11,068
Original loan balance (3)			$	1,395		424		674		2,493

December 31, 2010
Number of loans				6,501		2,899		3,248		12,648
Original loan balance (3)			$	1,467		680		801		2,948

September 30, 2010
Number of loans				9,887		3,605		3,035		16,527
Original loan balance (3)			$	2,212		882		748		3,842

(1)

Includes repurchase demands of 878 and $173 million, 892 and $179 million, 685 and $132 million, 1,495 and $291 million, and 2,263 and $437 million, for September 30, June 30 and March 31, 2011, and December 31 and September 30, 2010, respectively, received from investors on mortgage servicing rights acquired from other originators. We generally have the right of recourse against the seller and may be able to recover losses related to such repurchase demands subject to counterparty risk associated with the seller.

(2)

As part of our representations and warranties in our loan sales contracts, we typically represent to GSEs and private investors that certain loans have mortgage insurance to the extent there are loans that have loan to value ratios in excess of 80% which require mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer, the lack of insurance may result in a repurchase demand from an investor. Similar to repurchase demands, we evaluate mortgage insurance rescission notices for validity and appeal for reinstatement if the rescission was not based on a contractual breach. When investor demands are received due to lack of mortgage insurance, they are reported as unresolved repurchase demands based on the applicable investor category for the loan (GSE or private). Over the last year, approximately 20% of our repurchase demands from GSEs had mortgage insurance rescission as one of the reasons for the repurchase demand. Of all the mortgage insurance rescissions notices received in 2010, approximately 70% have resulted in repurchase demands through September 2011. Not all mortgage insurance rescissions received in 2010 have been completed through the appeals process with the mortgage insurer and upon successful appeal, we work with the investor to rescind the repurchase demand.

(3)

While original loan balance related to these demands is presented above, the establishment of the repurchase liability is based on a combination of factors, such as our appeals success rates, reimbursement by correspondent and other third party originators, and projected loss severity, which is driven by the difference between the current loan balance and the estimated collateral value less costs to sell the property.

Investors

Mary Eshet