WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.1 - THE PRESS RELEASE, DEEMED "FILED" UNDER THE SECURITIES EXCHANGE ACT OF 1934

WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.1 - THE PRESS RELEASE, DEEMED "FILED" UNDER THE SECURITIES EXCHANGE ACT OF 1934 - October 12, 2012

Attached files

Attached files

file	filename
8-K - CURRENT REPORT ON FORM 8-K - WELLS FARGO & COMPANY/MN	d423805d8k.htm
EX-99.2 - THE QUARTERLY SUPPLEMENT, DEEMED "FURNISHED" UNDER THE SECURITIES EXCHANGE ACT - WELLS FARGO & COMPANY/MN	d423805dex992.htm

Exhibit 99.1

LOGO

Friday, October 12, 2012

WELLS FARGO REPORTS RECORD QUARTERLY NET INCOME

Q3 Net Income of $4.9 billion; EPS of $0.88, Up 22 Percent from Prior Year

•

Continued strong financial results:

Record Wells Fargo net income of $4.9 billion, up 27 percent (annualized) from prior quarter

Record diluted earnings per common share of $0.88, up 29 percent (annualized) from prior quarter

Pre-tax pre-provision profit (PTPP)¹ of $9.1 billion, up 9 percent (annualized) from prior quarter

Revenue of $21.2 billion, compared with $21.3 billion in prior quarter

Noninterest expense of $12.1 billion, down $285 million from prior quarter; 57.1 percent efficiency ratio

Return on average assets (ROA) of 1.45 percent, up 4 basis points from prior quarter

Return on equity (ROE) of 13.38 percent, up 52 basis points from prior quarter

•

Strong deposit and loan growth:

Total average core checking and savings deposits up $16.9 billion from prior quarter

Total loans of $782.6 billion, up $7.4 billion from prior quarter

Core loan portfolio up $11.9 billion from prior quarter²

•

Maintained strong capital position:

Tier 1 common equity³ under Basel I increased $4.1 billion to $105.8 billion, with Tier 1 common equity ratio of 10.06 percent under Basel I at September 30, 2012. Estimated Tier 1 common equity ratio of 8.02 percent under current Basel III capital proposals⁴

Purchased approximately 17 million shares of common stock in third quarter 2012 and an additional estimated 9 million shares through a forward repurchase transaction expected to settle in fourth quarter 2012

•

Solid underlying credit quality:

Net charge-offs of $2.4 billion, or 1.21 percent (annualized) of average loans, including $567 million of net charge-offs from the implementation of newly issued regulatory guidance⁵

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

² See table on page 4 for more information on core and non-strategic/liquidating loan portfolios.

³ See tables on page 38 for more information on Tier 1 common equity.

⁴ Estimated based on management’s current interpretation of the Basel III capital rules proposed by federal banking agencies in notices of proposed rulemaking announced in June 2012. The proposed rules and interpretations and assumptions used in estimating Basel III calculations are subject to change depending on final promulgation of Basel III capital rules.

⁵ Office of the Comptroller of the Currency update to Bank Accounting Advisory Series issued third quarter 2012 (OCC guidance) which requires write-down of performing consumer loans restructured in bankruptcy to collateral value. See pages 5-7, including footnote 6, for additional information regarding the implementation of the OCC guidance and its effect on our third quarter credit metrics.

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Excluding the impact of the OCC guidance, net charge-offs of $1.8 billion or 0.92 percent (annualized) of average loans

Provision for credit losses was $767 million lower than net loan charge-offs due to two factors:

$567 million increase in net loan charge-offs from the implementation of the OCC guidance (fully covered by loan loss reserves)

$200 million (pre-tax) reserve release due to continued strong underlying credit performance, compared with $400 million in prior quarter

Selected Financial Information



				Quarter ended

	Sept. 30,			June 30,		Sept. 30,
	2012			2012		2011


Earnings
Diluted earnings per common share	$	0.88			0.82		0.72
Wells Fargo net income (in billions)		4.94			4.62		4.06
Return on assets (ROA)		1.45	%		1.41		1.26
Return on equity (ROE)		13.38			12.86		11.86

Asset Quality
Net charge-offs as a % of avg. total loans		1.21			1.15		1.37
Allowance as a % of total loans		2.27			2.41		2.68
Allowance as a % of annualized net charge-offs		190			211		197

Other
Revenue (in billions)	$	21.21			21.29		19.63
Efficiency ratio		57.1			58.2		59.5
Average loans (in billions)		776.7			768.2		754.5
Average core deposits (in billions)		895.4			880.6		836.8
Net interest margin		3.66	%		3.91		3.84

SAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported record net income of $4.9 billion, or $0.88 per diluted common share, for third quarter 2012, up from $4.1 billion, or $0.72 per share, for third quarter 2011, and up from $4.6 billion, or $0.82 per share, for second quarter 2012. For the first nine months of 2012, net income was $13.8 billion, or $2.45 per share, compared with $11.8 billion, or $2.09 per share, a year ago.

“Through the efforts of our more than 265,000 team members, we’ve now achieved six consecutive quarters of record net income and EPS,” said Chairman and CEO John Stumpf. “By focusing on earning all of our customers’ business and providing outstanding service, we continued to generate growth across our diversified set of businesses. In the third quarter, core loans grew by $11.9 billion and we saw continued strength in our mortgage and deposit businesses. We remained diligent in managing costs and continued to have strong underlying credit performance as our loss mitigation efforts and the low interest rate environment helped improve affordability for our customers.”

Chief Financial Officer Tim Sloan added, “Our third quarter results demonstrated that the Company’s business model continues to serve shareholders well. Our performance reflected an ongoing focus on measures that drive value over the long-term, including increased PTPP, positive operating leverage, and

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solid ROA and ROE. In addition, our efficiency ratio of 57.1 percent in the third quarter improved compared with second quarter and remained within our 55 to 59 percent targeted range. While the economic and interest rate environments continue to present challenges for us and our industry, our diversified model and focus on our customers continued to produce strong quarterly results.”

Revenue

Revenue was $21.2 billion in the third quarter, compared with $21.3 billion in second quarter 2012, as approximately $300 million of higher noninterest income was more than offset by lower net interest income. Businesses generating linked-quarter revenue growth included asset backed finance, asset management, brokerage services, commercial mortgage servicing, credit card, dealer services, debit card, equity funds, personal credit management, real estate capital markets, retail sales finance, retirement services, and small business administration loans.

Net Interest Income

Net interest income was $10.7 billion in third quarter, down from $11.0 billion in second quarter 2012. The decline in net interest income was largely driven by lower income from variable sources, such as fee income and purchased credit-impaired (PCI) loan resolutions which were elevated in the second quarter. In addition, income from the available-for-sale (AFS) securities portfolio declined as the pace of mortgage-backed securities (MBS) pay-downs increased in response to lower interest rates, and we replaced a large portion of the run-off with lower yielding, but shorter duration securities. The income impact of lower levels of long-term securities purchases was partially offset by our retention of $9.8 billion of high-quality, conforming first real estate mortgages.

On a linked-quarter basis, our net interest margin declined 25 basis points to 3.66 percent, driven by three primary items. First, the impact of lower income from variable sources described above caused a decline of approximately 10 basis points. Second, given our cautious stance on investment portfolio growth in the current low rate environment, deposit growth of $23 billion (10 percent annualized) caused cash and short term investments to increase, diluting the margin by approximately 7 basis points. Finally, the impact of lower rates, both in terms of run-off and new activity, reduced the margin by 8 basis points, with approximately 6 basis points of the decline from the AFS portfolio and approximately 2 basis points from the loan portfolios.

Noninterest Income

Noninterest income was $10.6 billion, up from $10.3 billion in second quarter 2012. The increase was driven by a $252 million increase in market sensitive revenue, primarily trading gains including deferred compensation plan investments offset in employee benefits expense. The Company also benefitted from increases in deposit service charges, trust and investment fees, and card fees. Insurance declined $108 million due to seasonally lower insurance revenue, with a related decline in insurance commission expense.

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Mortgage banking noninterest income was $2.8 billion, down $86 million from second quarter 2012, on $139 billion of originations, compared with $131 billion of originations in second quarter. During the third quarter, the Company retained on balance sheet 1-4 family conforming first mortgage loans, forgoing approximately $200 million of fee revenue that could have been generated had the loans been originated for sale during the quarter along with other agency conforming loan production. The Company provided $462 million for mortgage loan repurchase losses, compared with $669 million in second quarter (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were $142 million, compared with $377 million in second quarter due to MSR valuation adjustments made in the third quarter for increased servicing and foreclosure costs. The ratio of MSRs to related loans serviced for others was at a historical low of 63 basis points and the average note rate on the servicing portfolio was 4.87 percent. The unclosed pipeline at September 30, 2012 was $97 billion, compared with $102 billion at June 30, 2012.

The Company had net unrealized securities gains of $12.4 billion at September 30, 2012, compared with $9.5 billion at June 30, 2012. Period-end securities available for sale balances increased $2.5 billion.

Noninterest Expense

Noninterest expense declined $285 million in the quarter to $12.1 billion, compared with $12.4 billion in second quarter 2012. The decline in noninterest expense was due primarily to $243 million of lower operating losses, $112 million of seasonally lower insurance commissions, $104 million of lower severance expense, and our third consecutive quarterly reduction in foreclosed asset expense, down $42 million from prior quarter. The expense improvements were partially offset by higher deferred compensation expense of $152 million offset in noninterest income and by increases in occupancy and advertising costs. The Company’s efficiency ratio improved to 57.1 percent from 58.2 percent in second quarter 2012 and 59.5 percent in third quarter 2011, and the Company is well positioned to remain within its targeted range of 55 to 59 percent in the fourth quarter.

Loans

Total loans were $782.6 billion at September 30, 2012, up $7.4 billion from $775.2 billion at June 30, 2012. Included in this growth was $9.8 billion of 1-4 family conforming first mortgage production retained on the balance sheet. In addition, there was growth in auto, credit card, private student lending, and commercial and industrial (C&I) loan balances. The growth in core loan portfolios more than offset the reduction in the non-strategic/liquidating portfolios, which declined $4.5 billion in the quarter.



	September 30, 2012							June 30, 2012

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

Commercial	$	348,696		3,836			352,532		349,774		4,278			354,052
Consumer		335,278		94,820			430,098		322,297		98,850			421,147

Total loans	$	683,974		98,656			782,630		672,071		103,128			775,199


Change from prior quarter:	$	11,903		(4,472	)		7,431		13,782		(5,104	)		8,678

(1)	See table on page 35 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.

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Deposits

Average core deposits were $895.4 billion, up 7 percent from a year ago and up 7 percent (annualized) from second quarter 2012. Average core checking and savings deposits were $837.2 billion, up 9 percent from a year ago and up 8 percent (annualized) from second quarter 2012. Average mortgage escrow deposits were $40.0 billion, compared with $28.3 billion a year ago and $35.4 billion in second quarter 2012. Average core checking and savings deposits were 94 percent of average core deposits, up from 93 percent in the prior quarter and 92 percent a year ago. The average deposit cost for third quarter 2012 was 18 basis points, compared with 19 basis points in second quarter 2012. Average core deposits were 115 percent of average loans, up slightly from second quarter 2012.

Capital

Capital increased in the third quarter, with Tier 1 common equity reaching $105.8 billion under Basel I, or 10.06 percent of risk-weighted assets. The third quarter ratio reflected refinements to the risk weighting of certain unused lending commitments that provide for the ability to issue standby letters of credit, which reduced the ratio by 32 basis points. This refinement did not affect our estimated Tier 1 common equity ratio under Basel III capital proposals, which rose to 8.02 percent at the end of the quarter.

In third quarter, the Company purchased approximately 17 million shares of its common stock and an additional estimated 9 million shares through a forward repurchase transaction expected to settle in fourth quarter 2012, and paid a quarterly common stock dividend of $0.22 per share.



	Sept. 30,			June 30,		Sept. 30,
(as a percent of total risk-weighted assets)	2012			2012		2011

Ratios under Basel I (1):

Tier 1 common equity (2)		10.06	%		10.08		9.34
Tier 1 capital		11.66			11.69		11.26
Tier 1 leverage		9.45			9.25		8.97

(1)	September 30, 2012, ratios are preliminary.

(2)	See table on page 38 for more information on Tier 1 common equity.

Credit Quality

“Underlying credit quality continued to show improvement in the third quarter, as the overall financial condition of businesses and consumers strengthened, the housing market in many areas of the nation improved, and we continued to work to reduce problem assets and make new, high quality loans,” said Chief Risk Officer Mike Loughlin.

Reported credit metrics for the quarter were affected by the implementation in third quarter of the OCC guidance, which affected consumer loans where the borrower’s obligation to us has been discharged in bankruptcy and the borrower has not reaffirmed the debt. As of September 30, 2012, only 8 percent of loans within this category were 30 days or more past due. Implementation of the OCC guidance affected nonperforming loans and net charge-offs as follows:

•

$1.4 billion reclassification of performing consumer loans to nonaccrual status, consisting of $1.0 billion of first mortgages, $262 million of junior liens and $155 million of auto loans

•

$567 million increase in net loan charge-offs, fully covered by loan loss reserves

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“Excluding the impact of the OCC guidance, we saw improvement in charge-offs, recoveries, and nonperforming assets. Early stage delinquencies remained relatively stable from prior quarter. Absent significant deterioration in the economy, we continue to expect future reserve releases,” said Loughlin.

Net Loan Charge-offs

Net loan charge-offs, summarized in the table below, were $2.4 billion in third quarter 2012 or 121 basis points of average loans. Excluding the $567 million in charge-offs resulting from implementation of the OCC guidance, net charge-offs were $1.8 billion or 92 basis points with commercial losses of $217 million, or 24 basis points, and consumer losses of $1.6 billion or 148 basis points⁶.

Net Loan Charge-Offs



	Quarter ended

	September 30, 2012					June 30, 2012					March 31, 2012

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


Commercial:
Commercial and industrial	$	131		0.29	%	$	249		0.58	%	$	256		0.62	%
Real estate mortgage		54		0.21			81		0.31			46		0.17
Real estate construction		1		0.03			17		0.40			67		1.43
Lease financing		1		0.03			-		-			2		0.06
Foreign		30		0.29			11		0.11			14		0.14

Total commercial		217		0.24			358		0.42			385		0.45


Consumer:
Real estate 1-4 family first mortgage		673		1.15			743		1.30			791		1.39
Real estate 1-4 family junior lien mortgage		1,036		5.17			689		3.38			763		3.62
Credit card		212		3.67			240		4.37			242		4.40
Other revolving credit and installment		220		1.00			170		0.79			214		0.99

Total consumer		2,141		2.01			1,842		1.76			2,010		1.91

Total	$	2,358		1.21	%	$	2,200		1.15	%	$	2,395		1.25	%

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

Nonperforming Assets

Nonperforming assets increased by $368 million in the quarter including a $1.4 billion increase in nonperforming loans resulting from implementation of the OCC guidance, ending the quarter at $25.3 billion, compared with $24.9 billion in second quarter 2012. Nonaccrual loans increased to $21.0 billion from $20.6 billion in second quarter; however, apart from implementing the OCC guidance, total commercial and consumer nonaccrual loans declined in the quarter by $975 million. Foreclosed assets were $4.2 billion, down from $4.3 billion in second quarter 2012.

⁶ Management believes that the presentation in this news release of information excluding the impact of the OCC guidance provides useful disclosure regarding the underlying credit quality of the Company’s loan portfolios.

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Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)



	September 30, 2012					June 30, 2012					March 31, 2012

			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	$	1,404		0.79	%	$	1,549		0.87	%	$	1,726		1.02	%
Real estate mortgage		3,599		3.44			3,832		3.63			4,081		3.85
Real estate construction		1,253		7.08			1,421		8.08			1,709		9.21
Lease financing		49		0.40			43		0.34			45		0.34
Foreign		66		0.17			79		0.20			38		0.10

Total commercial		6,371		1.81			6,924		1.96			7,599		2.20


Consumer:
Real estate 1-4 family first mortgage		11,195		4.65			10,368		4.50			10,683		4.67
Real estate 1-4 family junior lien mortgage		3,140		4.02			3,091		3.82			3,558		4.28
Other revolving credit and installment		338		0.39			195		0.22			186		0.21

Total consumer (1)		14,673		3.41			13,654		3.24			14,427		3.43

Total nonaccrual loans		21,044		2.69			20,578		2.65			22,026		2.87


Foreclosed assets:
GNMA		1,479					1,465					1,352
Non GNMA		2,730					2,842					3,265

Total foreclosed assets		4,209					4,307					4,617

Total nonperforming assets	$	25,253		3.23	%	$	24,885		3.21	%	$	26,643		3.48	%


Change from prior quarter:
Total nonaccrual loans	$	466				$	(1,448)				$	722
Total nonperforming assets		368					(1,758)					678

(1)

Includes $1.4 billion at September 30, 2012, resulting from implementation of a third quarter 2012 OCC update to the Bank Accounting Advisory Series. The updated guidance requires us to place on nonaccrual status those performing loans where the borrower’s obligation to us has been restructured in bankruptcy.

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 $1.5 billion at September 30, 2012, compared with $1.4 billion at June 30, 2012. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $21.4 billion at September 30, 2012, down slightly from $21.5 billion at June 30, 2012.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $17.8 billion at September 30, 2012, down from $18.6 billion at June 30, 2012. The reduction in the allowance included $567 million of net charge-offs resulting from implementation of the OCC guidance. While the impact of the OCC guidance accelerated charge-offs of performing consumer loans into the third quarter, the allowance for credit losses had full coverage for these charge-offs. The reduction also included a $200 million reserve release due to strong underlying credit, compared with a $400 million release in the prior quarter. The allowance coverage to total loans was 2.27 percent, compared with 2.41 percent in second quarter 2012. The allowance covered 1.9 times annualized third quarter net charge-offs, compared with 2.1 times in the prior quarter. The allowance coverage to nonaccrual loans was 85 percent at September 30, 2012, compared with 91 percent at June 30, 2012. “We believe the allowance was appropriate for losses inherent in the loan portfolio at September 30, 2012,” said Loughlin.

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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)	2012		2012		2011

Community Banking	$	2,740		2,535		2,324
Wholesale Banking		1,993		1,881		1,803
Wealth, Brokerage and Retirement		338		343		290

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

Community Banking offers a complete line of diversified financial products and services for consumers and small businesses. These products include 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)	2012		2012		2011

Total revenue	$	13,110		13,092		12,510
Provision for credit losses		1,627		1,573		1,974
Noninterest expense		7,402		7,580		6,905
Segment net income		2,740		2,535		2,324

(in billions)
Average loans		485.3		483.9		489.7
Average assets		765.1		746.6		751.8
Average core deposits		594.5		586.1		556.4

Community Banking reported net income of $2.7 billion, up $205 million, or 8 percent, from second quarter 2012. Revenue increased $18 million from second quarter 2012, primarily due to continued growth in deposit service charges and higher gains on deferred compensation plan investments (offset in employee benefits expense), offset by lower investment income and mortgage banking revenue. Noninterest expense decreased $178 million, or 2 percent, from second quarter 2012, largely the result of lower operating losses and lower severance expense associated with our efficiency and cost save initiatives, partially offset by higher deferred compensation expense (offset in revenue).

Net income was up $416 million, or 18 percent, from third quarter 2011. Revenue increased $600 million, or 5 percent, primarily due to higher volume-related mortgage banking income and growth in deposit service charges, partially mitigated by higher equity gains in prior year, planned runoff of non-strategic loan balances and lower debit card revenue due to regulatory changes enacted in October 2011. Noninterest expense increased $497 million, or 7 percent, from third quarter 2011, largely the result of higher mortgage volume-related expenses and operating losses. The provision for credit losses was $347 million lower than a year ago due to improved portfolio performance.

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Regional Banking

•

Retail banking

Retail Bank household cross-sell ratio of 6.04 products per household, up from 5.90 year-over-year; cross-sell in the West reached 6.40, compared with 5.56 in the East⁷

Consumer checking accounts essentially flat to prior year⁷

Consumer credit card, lines of credit and loan product solutions (sales) in the retail banking stores were nearly 1.5 times the prior year

Partner referrals that resulted in a sale, including products such as insurance, mortgage and student lending, up more than 30 percent from the prior year

Continued investments in the East; in third quarter, platform banker FTE (active, full-time equivalent) grew by more than 500 on a linked quarter basis

•

Small Business/Business Banking

Business checking accounts up a net 3.9 percent year-over-year⁷

Business Direct credit card, lines of credit and loan product solutions (primarily under $100,000 sold through our retail banking stores) up more than 45 percent from the prior year

$11.4 billion in net new loan commitments to small business customers (primarily with annual revenues less than $20 million) in the first three quarters of 2012, up approximately 30 percent from prior year

America’s #1 small business lender (in both loans under $100,000 and under $1,000,000) and #1 lender to small businesses in low- and moderate-income areas (2011 CRA data, released August 2012)

For the second year in a row, Wells Fargo has approved more than $1 billion in SBA 7(a) loan dollars for small businesses

•

Online and Mobile Banking

21.4 million active online customers⁷

8.9 million active mobile customers⁷

“Best Consumer Internet Bank” in the U.S. for the 3rd consecutive year (Global Finance Magazine, July 2012)

Consumer Lending Group

•

Home Mortgage

Originations of $139 billion, up from $131 billion in prior quarter

Applications of $188 billion, compared with $208 billion in prior quarter

Application pipeline of $97 billion at quarter end, compared with $102 billion at June 30, 2012

Residential mortgage servicing portfolio of $1.9 trillion

⁷ Data as of August 2012. Comparisons are August 2012 compared with August 2011.

- 10 -

•

Other Consumer Lending

Credit card penetration in retail banking households rose to 32.1 percent⁷, up from 31.0 percent in prior quarter and 28.1 percent in prior year

Auto originations of $6.3 billion, down 3 percent from prior quarter and up 20 percent from prior year

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 and 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, Wells Fargo Securities, Principal Investments, Asset Backed Finance, and Asset Management.

Selected Financial Information



	Quarter ended

(in millions)	Sept. 30, 2012			June 30, 2012		Sept. 30, 2011

Total revenue	$	5,949			6,117		5,135
Provision (reversal of provision) for credit losses		(57	)		188		(178	)
Noninterest expense		2,908			3,113		2,689
Segment net income		1,993			1,881		1,803

(in billions)
Average loans		277.1			270.2		253.4
Average assets		490.7			478.4		437.1
Average core deposits		225.4			220.9		209.3

Wholesale Banking reported record net income of $2.0 billion, up $112 million, or 6 percent, from second quarter 2012. Revenue of $5.9 billion decreased 3 percent from second quarter 2012 as strong growth across many businesses, including asset-backed finance, asset management, real estate capital markets, and sales and trading, was more than offset by seasonally lower crop insurance revenue and lower PCI resolution income. Noninterest expense decreased $205 million, or 7 percent, from second quarter 2012 on seasonally lower insurance commissions and lower foreclosed asset expense. The provision for credit losses reflected a net reversal of $57 million in third quarter, compared with a provision of $188 million in second quarter. This was due both to a lower level of net loan charge-offs and an increase in the reserve release.

Net income was up $190 million, or 11 percent, from third quarter 2011 led by higher pre-tax pre provision income and lower net charge-offs. Revenue increased $814 million, or 16 percent, from third quarter 2011 driven by broad-based business growth, including acquisitions and strong loan and deposit growth. Noninterest expense increased $219 million, or 8 percent, from third quarter 2011 due to higher personnel expenses related to revenue growth and higher non-personnel expenses related to growth initiatives and compliance and regulatory requirements. Despite an improvement of $119 million in net charge-offs, the provision for credit losses was $121 million higher than third quarter 2011 due to $240 million in lower reserve releases. The third quarter 2012 provision included a $110 million reserve release, compared with $350 million a year ago.

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•

9 percent year-over-year average loan and 12 percent average asset growth. The growth came from nearly all portfolios, including asset backed finance, capital finance, commercial banking, commercial real estate, and corporate banking

•

Nine consecutive quarters of average loan growth in Commercial Banking

•

Average core deposits up 8 percent from prior year

•

Investment banking year to date revenue from commercial and corporate customers increased 13 percent for the same period in 2011 due to attractive capital markets conditions and continued momentum in cross selling

•

Completed acquisition of Merlin Securities, LLC, a prime brokerage services and technology provider

•

Best U.S. Bank, 2012 Euromoney Awards for Excellence

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. Abbot Downing meets the unique needs of ultra high net worth clients. 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, 2012		June 30, 2012		Sept. 30, 2011

Total revenue	$	3,033		2,971		2,888
Provision for credit losses		30		37		48
Noninterest expense		2,457		2,376		2,371
Segment net income		338		343		290

(in billions)
Average loans		42.5		42.5		43.1
Average assets		163.8		160.9		158.4
Average core deposits		136.7		134.2		133.3

Wealth, Brokerage and Retirement reported net income of $338 million, down $5 million from second quarter 2012. Revenue was $3.0 billion, up 2 percent from second quarter 2012, and benefited from $45 million in gains on deferred compensation plan investments (offset in expense, compared with $31 million in losses in second quarter 2012). Excluding deferred compensation, revenue was flat due to lower net interest income and reduced securities gains in the brokerage business, partially offset by higher asset-based fees and brokerage transaction revenue. Total provision for credit losses decreased $7 million from second quarter 2012. The provision in both periods included a $10 million credit reserve release. Noninterest expense increased 3 percent from second quarter 2012 related to higher deferred compensation plan expense. Third quarter 2012 results included $45 million in deferred compensation plan expense, compared with a $32 million benefit in second quarter. Apart from the $77 million change in deferred compensation plan expense, noninterest expense was flat.

- 12 -

Net income rose $48 million from third quarter 2011. Revenue increased 5 percent from third quarter 2011 due to $45 million in gains on deferred compensation plan investments (offset in expense, compared with $128 million in losses in third quarter 2011). Excluding deferred compensation, revenue was down 1 percent primarily due to lower net interest income and reduced securities gains in the brokerage business, partially offset by growth in managed account fee revenue. Total provision for credit losses decreased $18 million from third quarter 2011. Noninterest expense increased 4 percent from third quarter 2011 driven by higher deferred compensation plan expense. Third quarter 2012 results included $45 million in deferred compensation plan expense, compared with a $125 million benefit a year ago. Apart from the $170 million change in deferred compensation plan expense, noninterest expense decreased 3 percent.

Retail Brokerage

•

Client assets of $1.2 trillion, up 11 percent from prior year

•

Managed account assets increased $59 billion, or 25 percent, from prior year driven by strong net flows and market performance

•

Strong deposit growth, with average balances up 9 percent from prior year

Wealth Management

•

Client assets of $199 billion, up 4 percent from prior year

•

Recently named the 4th largest U.S. Wealth Manager according to Barron’s Annual Wealth Managers Survey

Retirement

•

Institutional Retirement plan assets of $260 billion, up 14 percent from prior year

•

IRA assets of $295 billion, up 13 percent from prior year

Conference Call

The Company will host a live conference call on Friday, October 12, at 7 a.m. PDT (10 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_101212.

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on October 12 through Friday, October 19. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #18860134. 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 performance, and the appropriateness of the allowance for loan losses, including our current expectation of future reserve releases; (ii) our expectations regarding noninterest expense and our targeted efficiency ratio for the remainder of 2012 as part of our expense management initiatives; and (iii) our estimate regarding our Tier 1 common equity ratio under proposed Basel III capital rules as of September 30, 2012.

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, budget and tax matters, and the sovereign debt crisis and economic difficulties 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 rules) 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), as well as our ability to mitigate the loss of revenue and income from financial services reform and other regulation and legislation; 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 servicing and foreclosures, as well as effects associated with our settlement with the Department of Justice and other federal and state government entities related to our mortgage servicing and foreclosure practices, 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 efficiency ratio target as part of our expense management initiatives when and in the range 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; a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors and other service providers; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect of the current low interest rate environment or 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 fluctuations in stock market prices on fee income from our brokerage, asset and wealth management businesses; our election to provide support to our money market funds; 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 and legal actions; 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 decline and unemployment worsens. 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 Annual Report on Form 10-K for the year ended December 31, 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 $1.4 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 has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With approximately 265,000 full-time equivalent team members, Wells Fargo serves one in three households in United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 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
Consolidated Statement of Comprehensive Income		19
Condensed Consolidated Statement of Changes in Total Equity		19
Five Quarter Consolidated Statement of Income		20
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		21-22
Noninterest Income and Noninterest Expense		23-24

Balance Sheet
Consolidated Balance Sheet		25-26
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		27
Securities Available for Sale		28

Loans
Loans		28
Nonperforming Assets		29
Loans 90 Days or More Past Due and Still Accruing		30
Purchased Credit-Impaired Loans		31-33
Pick-A-Pay Portfolio		34
Non-Strategic and Liquidating Loan Portfolios		35
Home Equity Portfolios		35
Changes in Allowance for Credit Losses		36-37

Equity
Tier 1 Common Equity		38

Operating Segments
Operating Segment Results		39-40

Other
Mortgage Servicing and other related data		41-43

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA



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

($ in millions, except per share amounts)	2012			2011		Change			2012		2011		Change


For the Period
Wells Fargo net income	$	4,937			4,055		22	%	$	13,807		11,762		17	%
Wells Fargo net income applicable to common stock		4,717			3,839		23			13,142		11,137		18
Diluted earnings per common share		0.88			0.72		22			2.45		2.09		17
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.45	%		1.26		15			1.39		1.25		11
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		13.38			11.86		13			12.81		11.92		7
Efficiency ratio (1)		57.1			59.5		(4)			58.5		61.1		(4)
Total revenue	$	21,213			19,628		8		$	64,138		60,343		6
Pre-tax pre-provision profit (PTPP) (2)		9,101			7,951		14			26,636		23,458		14
Dividends declared per common share		0.22			0.12		83			0.66		0.36		83
Average common shares outstanding		5,288.1			5,275.5		-			5,292.7		5,280.2		-
Diluted average common shares outstanding		5,355.6			5,319.2		1			5,355.7		5,325.6		1
Average loans	$	776,734			754,544		3		$	771,200		753,293		2
Average assets		1,354,340			1,281,369		6			1,326,384		1,257,977		5
Average core deposits (3)		895,374			836,845		7			882,224		813,865		8
Average retail core deposits (4)		630,053			599,227		5			623,671		592,156		5
Net interest margin		3.66	%		3.84		(5)			3.82		3.96		(4)

At Period End
Securities available for sale	$	229,350			207,176		11		$	229,350		207,176		11
Loans		782,630			760,106		3			782,630		760,106		3
Allowance for loan losses		17,385			20,039		(13)			17,385		20,039		(13)
Goodwill		25,637			25,038		2			25,637		25,038		2
Assets		1,374,715			1,304,945		5			1,374,715		1,304,945		5
Core deposits (3)		901,075			849,632		6			901,075		849,632		6
Wells Fargo stockholders’ equity		154,679			137,768		12			154,679		137,768		12
Total equity		156,059			139,244		12			156,059		139,244		12
Capital ratios:
Total equity to assets		11.35	%		10.67		6			11.35		10.67		6
Risk-based capital (5):
Tier 1 capital		11.66			11.26		4			11.66		11.26		4
Total capital		14.70			14.86		(1)			14.70		14.86		(1)
Tier 1 leverage (5)		9.45			8.97		5			9.45		8.97		5
Tier 1 common equity (5)(6)		10.06			9.34		8			10.06		9.34		8
Common shares outstanding		5,289.6			5,272.2		-			5,289.6		5,272.2		-
Book value per common share	$	27.10			24.13		12		$	27.10		24.13		12
Common stock price:
High		36.60			29.63		24			36.60		34.25		7
Low		32.62			22.58		44			27.94		22.58		24
Period end		34.53			24.12		43			34.53		24.12		43
Team members (active, full-time equivalent)		267,000			263,800		1			267,000		263,800		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, 2012, 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, 2012			June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011

For the Quarter
Wells Fargo net income	$	4,937			4,622		4,248		4,107		4,055
Wells Fargo net income applicable to common stock		4,717			4,403		4,022		3,888		3,839
Diluted earnings per common share		0.88			0.82		0.75		0.73		0.72
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.45	%		1.41		1.31		1.25		1.26
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		13.38			12.86		12.14		11.97		11.86
Efficiency ratio (1)		57.1			58.2		60.1		60.7		59.5
Total revenue	$	21,213			21,289		21,636		20,605		19,628
Pre-tax pre-provision profit (PTPP) (2)		9,101			8,892		8,643		8,097		7,951
Dividends declared per common share		0.22			0.22		0.22		0.12		0.12
Average common shares outstanding		5,288.1			5,306.9		5,282.6		5,271.9		5,275.5
Diluted average common shares outstanding		5,355.6			5,369.9		5,337.8		5,317.6		5,319.2
Average loans	$	776,734			768,223		768,582		768,563		754,544
Average assets		1,354,340			1,321,584		1,302,921		1,306,728		1,281,369
Average core deposits (3)		895,374			880,636		870,516		864,928		836,845
Average retail core deposits (4)		630,053			624,329		616,569		606,810		599,227
Net interest margin		3.66	%		3.91		3.91		3.89		3.84

At Quarter End
Securities available for sale	$	229,350			226,846		230,266		222,613		207,176
Loans		782,630			775,199		766,521		769,631		760,106
Allowance for loan losses		17,385			18,320		18,852		19,372		20,039
Goodwill		25,637			25,406		25,140		25,115		25,038
Assets		1,374,715			1,336,204		1,333,799		1,313,867		1,304,945
Core deposits (3)		901,075			882,137		888,711		872,629		849,632
Wells Fargo stockholders’ equity		154,679			148,070		145,516		140,241		137,768
Total equity		156,059			149,437		146,849		141,687		139,244
Capital ratios:
Total equity to assets		11.35	%		11.18		11.01		10.78		10.67
Risk-based capital (5):
Tier 1 capital		11.66			11.69		11.78		11.33		11.26
Total capital		14.70			14.85		15.13		14.76		14.86
Tier 1 leverage (5)		9.45			9.25		9.35		9.03		8.97
Tier 1 common equity (5)(6)		10.06			10.08		9.98		9.46		9.34
Common shares outstanding		5,289.6			5,275.7		5,301.5		5,262.6		5,272.2
Book value per common share	$	27.10			26.06		25.45		24.64		24.13
Common stock price:
High		36.60			34.59		34.59		27.97		29.63
Low		32.62			29.80		27.94		22.61		22.58
Period end		34.53			33.44		34.14		27.56		24.12
Team members (active, full-time equivalent)		267,000			264,400		264,900		264,200		263,800

(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, 2012, 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)	2012		2011		Change			2012		2011		Change


Interest income
Trading assets	$	299		343		(13)	%	$	1,019		1,040		(2)	%
Securities available for sale		1,966		2,053		(4)			6,201		6,383		(3)
Mortgages held for sale		476		389		22			1,412		1,188		19
Loans held for sale		17		13		31			38		42		(10)
Loans		9,016		9,224		(2)			27,455		27,972		(2)
Other interest income		151		156		(3)			409		409		-


Total interest income		11,925		12,178		(2)			36,534		37,034		(1)


Interest expense
Deposits		428		559		(23)			1,328		1,768		(25)
Short-term borrowings		19		20		(5)			55		66		(17)
Long-term debt		756		980		(23)			2,375		3,093		(23)
Other interest expense		60		77		(22)			189		236		(20)


Total interest expense		1,263		1,636		(23)			3,947		5,163		(24)


Net interest income		10,662		10,542		1			32,587		31,871		2
Provision for credit losses		1,591		1,811		(12)			5,386		5,859		(8)


Net interest income after provision for credit losses		9,071		8,731		4			27,201		26,012		5


Noninterest income
Service charges on deposit accounts		1,210		1,103		10			3,433		3,189		8
Trust and investment fees		2,954		2,786		6			8,691		8,646		1
Card fees		744		1,013		(27)			2,102		2,973		(29)
Other fees		1,097		1,085		1			3,326		3,097		7
Mortgage banking		2,807		1,833		53			8,570		5,468		57
Insurance		414		423		(2)			1,455		1,494		(3)
Net gains (losses) from trading activities		529		(442)		NM			1,432		584		145
Net gains (losses) on debt securities available for sale		3		300		(99)			(65)		6		NM
Net gains from equity investments		164		344		(52)			770		1,421		(46)
Operating leases		218		284		(23)			397		464		(14)
Other		411		357		15			1,440		1,130		27


Total noninterest income		10,551		9,086		16			31,551		28,472		11


Noninterest expense
Salaries		3,648		3,718		(2)			10,954		10,756		2
Commission and incentive compensation		2,368		2,088		13			7,139		6,606		8
Employee benefits		1,063		780		36			3,720		3,336		12
Equipment		510		516		(1)			1,526		1,676		(9)
Net occupancy		727		751		(3)			2,129		2,252		(5)
Core deposit and other intangibles		419		466		(10)			1,256		1,413		(11)
FDIC and other deposit assessments		359		332		8			1,049		952		10
Other		3,018		3,026		-			9,729		9,894		(2)


Total noninterest expense		12,112		11,677		4			37,502		36,885		2


Income before income tax expense		7,510		6,140		22			21,250		17,599		21
Income tax expense		2,480		1,998		24			7,179		5,571		29


Net income before noncontrolling interests		5,030		4,142		21			14,071		12,028		17

Less: Net income from noncontrolling interests		93		87		7			264		266		(1)


Wells Fargo net income	$	4,937		4,055		22		$	13,807		11,762		17

Less: Preferred stock dividends and other		220		216		2			665		625		6


Wells Fargo net income applicable to common stock	$	4,717		3,839		23		$	13,142		11,137		18


Per share information
Earnings per common share	$	0.89		0.73		22		$	2.48		2.11		18
Diluted earnings per common share		0.88		0.72		22			2.45		2.09		17
Dividends declared per common share		0.22		0.12		83			0.66		0.36		83
Average common shares outstanding		5,288.1		5,275.5		-			5,292.7		5,280.2		-
Diluted average common shares outstanding		5,355.6		5,319.2		1			5,355.7		5,325.6		1

NM - Not meaningful

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME



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

(in millions)	2012		2011		Change			2012		2011		Change

Wells Fargo net income	$	4,937		4,055		22	%	$	13,807		11,762		17	%

Other comprehensive income, before tax:
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period		45		(58)		NM			(1)		(29)		(97	)
Reclassification of net gains included in net income		-		-		-			(10)		-		-
Securities available for sale:
Net unrealized gains (losses) arising during the period		2,892		(2,007)		NM			5,597		(878)		NM
Reclassification of net gains included in net income		(41)		(431)		(90)			(290)		(614)		(53	)
Derivatives and hedging activities:
Net unrealized gains arising during the period		24		68		(65)			63		205		(69	)
Reclassification of net gains on cash flow hedges included in net income		(89)		(141)		(37)			(295)		(454)		(35	)
Defined benefit plans adjustment:
Net actuarial gains (losses) arising during the period		(1)		1		NM			(18)		(2)		800
Amortization of net actuarial loss and prior service cost included in net income		35		23		52			111		71		56


Other comprehensive income (loss), before tax		2,865		(2,545)		NM			5,157		(1,701)		NM
Income tax (expense) benefit related to OCI		(1,057)		945		NM			(1,923)		781		NM


Other comprehensive income (loss), net of tax		1,808		(1,600)		NM			3,234		(920)		NM
Less: Other comprehensive income (loss) from noncontrolling interests		2		(6)		NM			6		(10)		NM


Wells Fargo other comprehensive income (loss), net of tax		1,806		(1,594)		NM			3,228		(910)		NM


Wells Fargo comprehensive income		6,743		2,461		174			17,035		10,852		57
Comprehensive income from noncontrolling interests		95		81		17			270		256		5


Total comprehensive income	$	6,838		2,542		169		$	17,305		11,108		56

NM - Not meaningful

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY



	Nine months ended Sept. 30,

(in millions)	2012		2011


Balance, beginning of period	$	141,687		127,889
Cumulative effect of fair value election for certain residential mortgage servicing rights		2		-


Balance, beginning of period - adjusted		141,689		127,889
Wells Fargo net income		13,807		11,762
Wells Fargo other comprehensive income (loss), net of tax		3,228		(910)
Common stock issued		2,000		1,014
Common stock repurchased (1)		(2,597)		(1,762)
Preferred stock released by ESOP		838		824
Preferred stock issued		742		2,501
Common stock warrants repurchased		-		(1)
Common stock dividends		(3,500)		(1,905)
Preferred stock dividends and other		(665)		(625)
Noncontrolling interests and other, net		517		457


Balance, end of period	$	156,059		139,244

(1)	For the nine months ended September 30, 2012, includes $300 million related to a private forward repurchase transaction entered into in third quarter 2012 that is expected to settle in fourth quarter 2012 for an estimated 9 million shares of common stock.

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)	2012		2012		2012		2011		2011


Interest income
Trading assets	$	299		343		377		400		343
Securities available for sale		1,966		2,147		2,088		2,092		2,053
Mortgages held for sale		476		477		459		456		389
Loans held for sale		17		12		9		16		13
Loans		9,016		9,242		9,197		9,275		9,224
Other interest income		151		133		125		139		156


Total interest income		11,925		12,354		12,255		12,378		12,178


Interest expense
Deposits		428		443		457		507		559
Short-term borrowings		19		20		16		14		20
Long-term debt		756		789		830		885		980
Other interest expense		60		65		64		80		77


Total interest expense		1,263		1,317		1,367		1,486		1,636


Net interest income		10,662		11,037		10,888		10,892		10,542
Provision for credit losses		1,591		1,800		1,995		2,040		1,811


Net interest income after provision for credit losses		9,071		9,237		8,893		8,852		8,731


Noninterest income
Service charges on deposit accounts		1,210		1,139		1,084		1,091		1,103
Trust and investment fees		2,954		2,898		2,839		2,658		2,786
Card fees		744		704		654		680		1,013
Other fees		1,097		1,134		1,095		1,096		1,085
Mortgage banking		2,807		2,893		2,870		2,364		1,833
Insurance		414		522		519		466		423
Net gains (losses) from trading activities		529		263		640		430		(442)
Net gains (losses) on debt securities available for sale		3		(61)		(7)		48		300
Net gains from equity investments		164		242		364		61		344
Operating leases		218		120		59		60		284
Other		411		398		631		759		357


Total noninterest income		10,551		10,252		10,748		9,713		9,086


Noninterest expense
Salaries		3,648		3,705		3,601		3,706		3,718
Commission and incentive compensation		2,368		2,354		2,417		2,251		2,088
Employee benefits		1,063		1,049		1,608		1,012		780
Equipment		510		459		557		607		516
Net occupancy		727		698		704		759		751
Core deposit and other intangibles		419		418		419		467		466
FDIC and other deposit assessments		359		333		357		314		332
Other		3,018		3,381		3,330		3,392		3,026


Total noninterest expense		12,112		12,397		12,993		12,508		11,677


Income before income tax expense		7,510		7,092		6,648		6,057		6,140
Income tax expense		2,480		2,371		2,328		1,874		1,998


Net income before noncontrolling interests		5,030		4,721		4,320		4,183		4,142
Less: Net income from noncontrolling interests		93		99		72		76		87


Wells Fargo net income	$	4,937		4,622		4,248		4,107		4,055


Less: Preferred stock dividends and other		220		219		226		219		216


Wells Fargo net income applicable to common stock	$	4,717		4,403		4,022		3,888		3,839


Per share information
Earnings per common share	$	0.89		0.83		0.76		0.74		0.73
Diluted earnings per common share		0.88		0.82		0.75		0.73		0.72
Dividends declared per common share		0.22		0.22		0.22		0.12		0.12
Average common shares outstanding		5,288.1		5,306.9		5,282.6		5,271.9		5,275.5
Diluted average common shares outstanding		5,355.6		5,369.9		5,337.8		5,317.6		5,319.2

Wells Fargo & Company and Subsidiaries

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


	Quarter ended September 30,

	2012								2011
(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	$	91,561			0.44	%	$	101		98,909			0.42	%	$	105
Trading assets		39,441			3.08			304		37,939			3.67			348
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,390			1.05			4		9,578			1.02			24
Securities of U.S. states and political subdivisions		35,925			4.36			392		25,593			4.93			315
Mortgage-backed securities:
Federal agencies		94,324			2.88			679		72,887			4.41			804
Residential and commercial		33,124			6.67			553		32,625			7.46			609
Total mortgage-backed securities		127,448			3.87			1,232		105,512			5.36			1,413
Other debt and equity securities		47,647			4.07			486		38,888			4.69			457

Total securities available for sale		212,410			3.98			2,114		179,571			4.92			2,209
Mortgages held for sale (4)		52,128			3.65			476		34,634			4.49			389
Loans held for sale (4)		932			7.38			17		968			5.21			13
Loans:
Commercial:
Commercial and industrial		177,500			3.84			1,711		159,625			4.22			1,697
Real estate mortgage		105,148			4.05			1,070		102,428			3.93			1,015
Real estate construction		17,687			5.21			232		20,537			6.12			317
Lease financing		12,608			6.60			208		12,964			7.21			234
Foreign		39,663			2.46			245		38,175			2.42			233

Total commercial		352,606			3.91			3,466		333,729			4.16			3,496
Consumer:
Real estate 1-4 family first mortgage		234,020			4.51			2,638		223,765			4.83			2,704
Real estate 1-4 family junior lien mortgage		79,718			4.26			854		89,065			4.37			980
Credit card		23,040			12.64			732		21,452			12.96			695
Other revolving credit and installment		87,350			6.08			1,334		86,533			6.25			1,364

Total consumer		424,128			5.23			5,558		420,815			5.44			5,743

Total loans (4)		776,734			4.63			9,024		754,544			4.87			9,239
Other		4,386			4.62			50		4,831			4.18			50

Total earning assets	$	1,177,592			4.09	%	$	12,086		1,111,396			4.43	%	$	12,353

Funding sources
Deposits:
Interest-bearing checking	$	28,815			0.06	%	$	4		43,986			0.07	%	$	8
Market rate and other savings		506,138			0.12			152		473,409			0.17			198
Savings certificates		58,206			1.29			188		67,633			1.47			251
Other time deposits		14,373			1.49			54		12,809			2.02			65
Deposits in foreign offices		71,791			0.16			30		63,548			0.23			37

Total interest-bearing deposits		679,323			0.25			428		661,385			0.34			559
Short-term borrowings		51,857			0.17			22		50,373			0.18			23
Long-term debt		127,486			2.37			756		139,542			2.81			980
Other liabilities		9,945			2.40			60		11,170			2.75			77

Total interest-bearing liabilities		868,611			0.58			1,266		862,470			0.76			1,639
Portion of noninterest-bearing funding sources		308,981			-			-		248,926			-			-

Total funding sources	$	1,177,592			0.43			1,266		1,111,396			0.59			1,639

Net interest margin and net interest income on a taxable-equivalent basis (5)					3.66	%	$	10,820					3.84	%	$	10,714
Noninterest-earning assets
Cash and due from banks	$	15,682								17,101
Goodwill		25,566								25,008
Other		135,500								127,864

Total noninterest-earning assets	$	176,748								169,973

Noninterest-bearing funding sources
Deposits	$	267,184								221,182
Other liabilities		66,116								57,464
Total equity		152,429								140,253
Noninterest-bearing funding sources used to fund earning assets		(308,981	)							(248,926	)
Net noninterest-bearing funding sources	$	176,748								169,973

Total assets	$	1,354,340								1,281,369

(1)	Our average prime rate was 3.25% for the quarters ended September 30, 2012 and 2011. The average three-month London Interbank Offered Rate (LIBOR) was 0.43% and 0.30% 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 represent amortized cost for the periods presented.

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

(5)	Includes taxable-equivalent adjustments of $158 million and $172 million for the quarters ended September 30, 2012 and 2011, 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

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




									Nine months ended September 30,

	2012								2011
(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	$	73,011			0.47	%	$	257		93,661			0.37	%	$	257
Trading assets		41,931			3.29			1,035		37,788			3.73			1,056
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		3,041			1.12			25		4,423			1.43			47
Securities of U.S. states and political subdivisions		34,366			4.42			1,139		22,694			5.21			887
Mortgage-backed securities:
Federal agencies		93,555			3.24			2,277		71,408			4.63			2,480
Residential and commercial		33,839			6.82			1,731		30,954			8.64			2,005

Total mortgage-backed securities		127,394			4.19			4,008		102,362			5.84			4,485
Other debt and equity securities		48,983			4.09			1,501		35,709			5.32			1,423

Total securities available for sale		213,784			4.16			6,673		165,188			5.52			6,842
Mortgages held for sale (4)		49,531			3.80			1,412		34,668			4.57			1,188
Loans held for sale (4)		838			6.07			38		1,100			5.05			42
Loans:
Commercial:
Commercial and industrial		172,039			4.07			5,245		154,469			4.48			5,181
Real estate mortgage		105,548			4.24			3,350		101,230			4.00			3,033
Real estate construction		18,118			4.98			676		22,255			4.96			826
Lease financing		12,875			7.47			721		12,961			7.59			737
Foreign		39,915			2.52			753		36,103			2.62			708

Total commercial		348,495			4.12			10,745		327,018			4.28			10,485
Consumer:
Real estate 1-4 family first mortgage		231,256			4.60			7,984		226,048			4.93			8,363
Real estate 1-4 family junior lien mortgage		82,161			4.28			2,631		91,881			4.32			2,973
Credit card		22,414			12.75			2,140		21,305			13.04			2,084
Other revolving credit and installment		86,874			6.12			3,980		87,041			6.31			4,107

Total consumer		422,705			5.28			16,735		426,275			5.49			17,527

Total loans (4)		771,200			4.76			27,480		753,293			4.97			28,012
Other		4,492			4.53			153		5,017			4.06			153
Total earning assets	$	1,154,787			4.28	%	$	37,048		1,090,715			4.59	%	$	37,550

Funding sources
Deposits:
Interest-bearing checking	$	30,465			0.06	%	$	14		51,891			0.09	%	$	34
Market rate and other savings		500,850			0.12			457		457,483			0.19			661
Savings certificates		60,404			1.33			601		71,343			1.43			762
Other time deposits		13,280			1.74			173		13,212			2.10			208
Deposits in foreign offices		67,424			0.16			83		59,662			0.23			103

Total interest-bearing deposits		672,423			0.26			1,328		653,591			0.36			1,768
Short-term borrowings		50,650			0.17			65		52,805			0.19			77
Long-term debt		127,561			2.48			2,375		145,000			2.85			3,093
Other liabilities		10,052			2.50			189		10,547			2.99			236

Total interest-bearing liabilities		860,686			0.61			3,957		861,943			0.80			5,174
Portion of noninterest-bearing funding sources		294,101			-			-		228,772			-			-

Total funding sources	$	1,154,787			0.46			3,957		1,090,715			0.63			5,174

Net interest margin and net interest income on a taxable-equivalent basis (5)					3.82	%	$	33,091					3.96	%	$	32,376
Noninterest-earning assets
Cash and due from banks	$	16,283								17,277
Goodwill		25,343								24,853
Other		129,971								125,132

Total noninterest-earning assets	$	171,597								167,262

Noninterest-bearing funding sources
Deposits	$	256,120								204,643
Other liabilities		60,606								55,324
Total equity		148,972								136,067
Noninterest-bearing funding sources used to fund earning assets		(294,101	)							(228,772	)

Net noninterest-bearing funding sources	$	171,597								167,262

Total assets	$	1,326,384								1,257,977

(1)	Our average prime rate was 3.25% for the nine months ended September 30, 2012 and 2011. The average three-month London Interbank Offered Rate (LIBOR) was 0.47% and 0.29% for the same periods, 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 represent amortized cost for the periods presented.

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

(5)	Includes taxable-equivalent adjustments of $504 million and $505 million for the nine months ended September 30, 2012 and 2011, 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)	2012		2011		Change			2012		2011		Change


Service charges on deposit accounts	$	1,210		1,103		10	%	$	3,433		3,189		8	%
Trust and investment fees:
Trust, investment and IRA fees		1,062		1,019		4			3,127		3,099		1
Commissions and all other fees		1,892		1,767		7			5,564		5,547		-


Total trust and investment fees		2,954		2,786		6			8,691		8,646		1


Card fees		744		1,013		(27)			2,102		2,973		(29)
Other fees:
Cash network fees		121		105		15			359		280		28
Charges and fees on loans		426		438		(3)			1,298		1,239		5
Processing and all other fees		550		542		1			1,669		1,578		6


Total other fees		1,097		1,085		1			3,326		3,097		7


Mortgage banking:
Servicing income, net		197		1,030		(81)			1,128		2,773		(59)
Net gains on mortgage loan origination/sales activities		2,610		803		225			7,442		2,695		176


Total mortgage banking		2,807		1,833		53			8,570		5,468		57


Insurance		414		423		(2)			1,455		1,494		(3)
Net gains (losses) from trading activities		529		(442)		NM			1,432		584		145
Net gains (losses) on debt securities available for sale		3		300		(99)			(65)		6		NM
Net gains from equity investments		164		344		(52)			770		1,421		(46)
Operating leases		218		284		(23)			397		464		(14)
All other		411		357		15			1,440		1,130		27


Total	$	10,551		9,086		16		$	31,551		28,472		11

NM - Not meaningful

NONINTEREST EXPENSE



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


(in millions)	2012		2011		Change			2012		2011		Change


Salaries	$	3,648		3,718		(2)	%	$	10,954		10,756		2	%
Commission and incentive compensation		2,368		2,088		13			7,139		6,606		8
Employee benefits		1,063		780		36			3,720		3,336		12
Equipment		510		516		(1)			1,526		1,676		(9)
Net occupancy		727		751		(3)			2,129		2,252		(5)
Core deposit and other intangibles		419		466		(10)			1,256		1,413		(11)
FDIC and other deposit assessments		359		332		8			1,049		952		10
Outside professional services		733		640		15			1,985		1,879		6
Contract services		237		341		(30)			776		1,051		(26)
Foreclosed assets		247		271		(9)			840		984		(15)
Operating losses		281		198		42			1,282		1,098		17
Postage, stationery and supplies		196		240		(18)			607		711		(15)
Outside data processing		234		226		4			683		678		1
Travel and entertainment		208		198		5			628		609		3
Advertising and promotion		170		159		7			436		441		(1)
Telecommunications		127		128		(1)			378		394		(4)
Insurance		51		94		(46)			391		428		(9)
Operating leases		27		29		(7)			82		84		(2)
All other		507		502		1			1,641		1,537		7


Total	$	12,112		11,677		4		$	37,502		36,885		2

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME




	Quarter ended


(in millions)	Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Service charges on deposit accounts	$	1,210		1,139		1,084		1,091		1,103
Trust and investment fees:
Trust, investment and IRA fees		1,062		1,041		1,024		1,000		1,019
Commissions and all other fees		1,892		1,857		1,815		1,658		1,767


Total trust and investment fees		2,954		2,898		2,839		2,658		2,786


Card fees		744		704		654		680		1,013
Other fees:
Cash network fees		121		120		118		109		105
Charges and fees on loans		426		427		445		402		438
Processing and all other fees		550		587		532		585		542


Total other fees		1,097		1,134		1,095		1,096		1,085


Mortgage banking:
Servicing income, net		197		679		252		493		1,030
Net gains on mortgage loan origination/sales activities		2,610		2,214		2,618		1,871		803


Total mortgage banking		2,807		2,893		2,870		2,364		1,833


Insurance		414		522		519		466		423
Net gains (losses) from trading activities		529		263		640		430		(442)
Net gains (losses) on debt securities available for sale		3		(61)		(7)		48		300
Net gains from equity investments		164		242		364		61		344
Operating leases		218		120		59		60		284
All other		411		398		631		759		357


Total	$	10,551		10,252		10,748		9,713		9,086


FIVE QUARTER NONINTEREST EXPENSE


	Quarter ended


(in millions)	Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Salaries	$	3,648		3,705		3,601		3,706		3,718
Commission and incentive compensation		2,368		2,354		2,417		2,251		2,088
Employee benefits		1,063		1,049		1,608		1,012		780
Equipment		510		459		557		607		516
Net occupancy		727		698		704		759		751
Core deposit and other intangibles		419		418		419		467		466
FDIC and other deposit assessments		359		333		357		314		332
Outside professional services		733		658		594		813		640
Contract services		237		236		303		356		341
Foreclosed assets		247		289		304		370		271
Operating losses		281		524		477		163		198
Postage, stationery and supplies		196		195		216		231		240
Outside data processing		234		233		216		257		226
Travel and entertainment		208		218		202		212		198
Advertising and promotion		170		144		122		166		159
Telecommunications		127		127		124		129		128
Insurance		51		183		157		87		94
Operating leases		27		27		28		28		29
All other		507		547		587		580		502


Total	$	12,112		12,397		12,993		12,508		11,677

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET




(in millions, except shares)	Sept. 30, 2012		Dec. 31, 2011		% Change


Assets
Cash and due from banks	$	16,986		19,440		(13)	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		100,442		44,367		126
Trading assets		60,592		77,814		(22)
Securities available for sale		229,350		222,613		3
Mortgages held for sale (includes $46,575 and $44,791 carried at fair value)		50,337		48,357		4
Loans held for sale (includes $172 and $1,176 carried at fair value)		298		1,338		(78)

Loans (includes $6,188 and $5,916 carried at fair value)		782,630		769,631		2
Allowance for loan losses		(17,385)		(19,372)		(10)


Net loans		765,245		750,259		2


Mortgage servicing rights:
Measured at fair value		10,956		12,603		(13)
Amortized		1,144		1,408		(19)
Premises and equipment, net		9,165		9,531		(4)
Goodwill		25,637		25,115		2
Other assets		104,563		101,022		4


Total assets	$	1,374,715		1,313,867		5


Liabilities
Noninterest-bearing deposits	$	268,991		244,003		10
Interest-bearing deposits		683,248		676,067		1


Total deposits		952,239		920,070		3
Short-term borrowings		51,957		49,091		6
Accrued expenses and other liabilities		83,659		77,665		8
Long-term debt (includes $218 and $0 carried at fair value)		130,801		125,354		4


Total liabilities		1,218,656		1,172,180		4


Equity

Wells Fargo stockholders’ equity:
Preferred stock		12,283		11,431		7
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,463,056,853 and 5,358,522,061 shares		9,105		8,931		2
Additional paid-in capital		59,089		55,957		6
Retained earnings		73,994		64,385		15
Cumulative other comprehensive income		6,435		3,207		101
Treasury stock – 173,431,978 shares and 95,910,425 shares		(5,186)		(2,744)		89
Unearned ESOP shares		(1,041)		(926)		12


Total Wells Fargo stockholders’ equity		154,679		140,241		10
Noncontrolling interests		1,380		1,446		(5)


Total equity		156,059		141,687		10


Total liabilities and equity	$	1,374,715		1,313,867		5

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET




(in millions)	Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Assets
Cash and due from banks	$	16,986		16,811		17,000		19,440		18,314
Federal funds sold, securities purchased under resale agreements and other short-term investments		100,442		74,635		74,143		44,367		89,804
Trading assets		60,592		64,419		75,696		77,814		57,786
Securities available for sale		229,350		226,846		230,266		222,613		207,176
Mortgages held for sale		50,337		50,462		43,449		48,357		42,704
Loans held for sale		298		853		958		1,338		743

Loans		782,630		775,199		766,521		769,631		760,106
Allowance for loan losses		(17,385)		(18,320)		(18,852)		(19,372)		(20,039)


Net loans		765,245		756,879		747,669		750,259		740,067

Mortgage servicing rights:
Measured at fair value		10,956		12,081		13,578		12,603		12,372
Amortized		1,144		1,130		1,074		1,408		1,397
Premises and equipment, net		9,165		9,317		9,291		9,531		9,607
Goodwill		25,637		25,406		25,140		25,115		25,038
Other assets		104,563		97,365		95,535		101,022		99,937


Total assets	$	1,374,715		1,336,204		1,333,799		1,313,867		1,304,945


Liabilities
Noninterest-bearing deposits	$	268,991		253,999		255,013		244,003		229,863
Interest-bearing deposits		683,248		674,934		675,254		676,067		665,565


Total deposits		952,239		928,933		930,267		920,070		895,428
Short-term borrowings		51,957		56,023		50,964		49,091		50,775
Accrued expenses and other liabilities		83,659		76,827		75,967		77,665		86,284
Long-term debt		130,801		124,984		129,752		125,354		133,214


Total liabilities		1,218,656		1,186,767		1,186,950		1,172,180		1,165,701


Equity
Wells Fargo stockholders’ equity:
Preferred stock		12,283		11,694		12,101		11,431		11,566
Common stock		9,105		9,054		9,008		8,931		8,902
Additional paid-in capital		59,089		58,091		57,569		55,957		55,495
Retained earnings		73,994		70,456		67,239		64,385		61,135
Cumulative other comprehensive income		6,435		4,629		4,216		3,207		3,828
Treasury stock		(5,186)		(4,638)		(2,958)		(2,744)		(2,087)
Unearned ESOP shares		(1,041)		(1,216)		(1,659)		(926)		(1,071)


Total Wells Fargo stockholders’ equity		154,679		148,070		145,516		140,241		137,768
Noncontrolling interests		1,380		1,367		1,333		1,446		1,476


Total equity		156,059		149,437		146,849		141,687		139,244


Total liabilities and equity	$	1,374,715		1,336,204		1,333,799		1,313,867		1,304,945

Wells Fargo & Company and Subsidiaries

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


	Quarter ended
	Sept. 30, 2012						June 30, 2012						Mar. 31, 2012						Dec. 31, 2011						Sept. 30, 2011
($ 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	$	91.6			0.44	%	$	71.3			0.47	%	$	56.0			0.52	%	$	68.0			0.52	%	$	98.9			0.42	%
Trading assets		39.5			3.08			42.6			3.27			43.8			3.50			45.5			3.57			37.9			3.67
Securities available for sale (2):
Securities of U.S. Treasury and federal agencies		1.4			1.05			2.0			1.60			5.8			0.97			8.7			0.99			9.6			1.02
Securities of U.S. states and political subdivisions		35.9			4.36			34.5			4.39			32.6			4.52			28.0			4.80			25.6			4.93
Mortgage-backed securities:
Federal agencies		94.3			2.88			95.0			3.37			91.3			3.49			84.3			3.68			72.8			4.41
Residential and commercial		33.1			6.67			33.9			6.97			34.5			6.80			34.7			7.05			32.6			7.46
Total mortgage-backed securities		127.4			3.87			128.9			4.32			125.8			4.40			119.0			4.66			105.4			5.36
Other debt and equity securities		47.7			4.07			48.9			4.39			50.4			3.82			47.3			4.38			38.9			4.69
Total securities available for sale		212.4			3.98			214.3			4.32			214.6			4.19			203.0			4.46			179.5			4.92
Mortgages held for sale		52.1			3.65			49.5			3.86			46.9			3.91			44.8			4.07			34.6			4.49
Loans held for sale		0.9			7.38			0.9			5.48			0.8			5.09			1.1			5.84			1.0			5.21
Loans:
Commercial:
Commercial and industrial		177.5			3.84			171.8			4.21			166.8			4.18			166.9			4.08			159.6			4.22
Real estate mortgage		105.1			4.05			105.5			4.60			106.0			4.07			105.2			4.26			102.4			3.93
Real estate construction		17.7			5.21			17.9			4.96			18.7			4.79			19.6			4.61			20.5			6.12
Lease financing		12.6			6.60			12.9			6.86			13.1			8.89			12.9			7.41			13.0			7.21
Foreign		39.7			2.46			38.9			2.57			41.2			2.52			38.8			2.39			38.2			2.42
Total commercial		352.6			3.91			347.0			4.28			345.8			4.16			343.4			4.10			333.7			4.16
Consumer:
Real estate 1-4 family first mortgage		234.0			4.51			230.0			4.62			229.7			4.69			229.8			4.74			223.8			4.83
Real estate 1-4 family junior lien mortgage		79.7			4.26			82.1			4.30			84.7			4.27			87.2			4.34			89.1			4.37
Credit card		23.0			12.64			22.1			12.70			22.1			12.93			21.9			12.96			21.5			12.96
Other revolving credit and installment		87.4			6.08			87.0			6.09			86.3			6.19			86.3			6.23			86.5			6.25
Total consumer		424.1			5.23			421.2			5.29			422.8			5.34			425.2			5.39			420.9			5.44
Total loans		776.7			4.63			768.2			4.83			768.6			4.81			768.6			4.81			754.6			4.87
Other		4.4			4.62			4.5			4.56			4.6			4.42			4.7			4.32			4.9			4.18
Total earning assets	$	1,177.6			4.09	%	$	1,151.3			4.37	%	$	1,135.3			4.39	%	$	1,135.7			4.41	%	$	1,111.4			4.43	%

Funding sources
Deposits:
Interest-bearing checking	$	28.8			0.06	%	$	30.4			0.07	%	$	32.2			0.05	%	$	35.3			0.06	%	$	44.0			0.07	%
Market rate and other savings		506.1			0.12			500.3			0.12			496.0			0.12			485.1			0.14			473.4			0.17
Savings certificates		58.2			1.29			60.4			1.34			62.7			1.36			64.9			1.43			67.6			1.47
Other time deposits		14.4			1.49			12.8			1.83			12.7			1.93			12.9			1.85			12.8			2.02
Deposits in foreign offices		71.8			0.16			65.6			0.17			64.8			0.16			67.2			0.20			63.5			0.23
Total interest-bearing deposits		679.3			0.25			669.5			0.27			668.4			0.27			665.4			0.30			661.3			0.34
Short-term borrowings		51.9			0.17			51.7			0.19			48.4			0.15			48.7			0.14			50.4			0.18
Long-term debt		127.5			2.37			127.7			2.48			127.5			2.60			129.4			2.73			139.5			2.81
Other liabilities		9.9			2.40			10.4			2.48			9.8			2.63			12.2			2.60			11.2			2.75
Total interest-bearing liabilities		868.6			0.58			859.3			0.62			854.1			0.64			855.7			0.69			862.4			0.76
Portion of noninterest-bearing funding sources		309.0			-			292.0			-			281.2			-			280.0			-			249.0			-
Total funding sources	$	1,177.6			0.43		$	1,151.3			0.46		$	1,135.3			0.48		$	1,135.7			0.52		$	1,111.4			0.59
Net interest margin on a taxable-equivalent basis					3.66	%					3.91	%					3.91	%					3.89	%					3.84	%
Noninterest-earning assets
Cash and due from banks	$	15.7						16.2						17.0						17.7						17.1
Goodwill		25.5						25.3						25.1						25.1						25.0
Other		135.5						128.8						125.5						128.2						127.9
Total noninterest-earnings assets	$	176.7						170.3						167.6						171.0						170.0
Noninterest-bearing funding sources
Deposits	$	267.2						254.5						246.6						246.7						221.2
Other liabilities		66.1						58.4						57.2						63.5						57.5
Total equity		152.4						149.4						145.0						140.8						140.3
Noninterest-bearing funding sources used to fund earning assets		(309.0	)					(292.0	)					(281.2	)					(280.0	)					(249.0	)
Net noninterest-bearing funding sources	$	176.7						170.3						167.6						171.0						170.0
Total assets	$	1,354.3						1,321.6						1,302.9						1,306.7						1,281.4

(1)	Our average prime rate was 3.25% for quarters ended September 30, June 30 and March 31, 2012, and December 31 and September 30, 2011. The average three-month London Interbank Offered Rate (LIBOR) was 0.43%, 0.47%, 0.51%, 0.48% and 0.30% for the same quarters, respectively.

(2)	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 represent amortized cost for the periods presented.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SECURITIES AVAILABLE FOR SALE




(in millions)	Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011

Securities of U.S. Treasury and federal agencies	$	1,869		1,493		4,678		6,968		13,813
Securities of U.S. states and political subdivisions		37,925		37,251		34,237		32,593		26,970
Mortgage-backed securities:
Federal agencies		102,713		101,863		102,665		96,754		84,716
Residential and commercial		36,098		35,646		36,486		35,986		35,159

Total mortgage-backed securities		138,811		137,509		139,151		132,740		119,875
Other debt securities		47,993		47,746		49,047		46,895		42,925

Total debt securities available for sale		226,598		223,999		227,113		219,196		203,583
Marketable equity securities		2,752		2,847		3,153		3,417		3,593

Total securities available for sale	$	229,350		226,846		230,266		222,613		207,176


FIVE QUARTER LOANS


(in millions)	Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011

Commercial:
Commercial and industrial	$	178,191		177,646		168,546		167,216		164,510
Real estate mortgage		104,611		105,666		105,874		105,975		104,363
Real estate construction		17,710		17,594		18,549		19,382		19,719
Lease financing		12,279		12,729		13,143		13,117		12,852
Foreign (1)		39,741		40,417		39,637		39,760		38,390

Total commercial		352,532		354,052		345,749		345,450		339,834

Consumer:
Real estate 1-4 family first mortgage		240,554		230,263		228,885		228,894		223,758
Real estate 1-4 family junior lien mortgage		78,091		80,881		83,173		85,991		88,264
Credit card		23,692		22,706		21,998		22,836		21,650
Other revolving credit and installment		87,761		87,297		86,716		86,460		86,600

Total consumer		430,098		421,147		420,772		424,181		420,272

Total loans (2)	$	782,630		775,199		766,521		769,631		760,106

(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 $32.5 billion, $33.8 billion, $35.5 billion, $36.7 billion and $37.2 billion of purchased credit-impaired (PCI) loans at September 30, June 30 and March 31, 2012, and December 31 and September 30, 2011, respectively. See the PCI loans table for detail of PCI loans.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)




(in millions)	Sept. 30, 2012			June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Nonaccrual loans:
Commercial:
Commercial and industrial	$	1,404			1,549		1,726		2,142		2,128
Real estate mortgage		3,599			3,832		4,081		4,085		4,429
Real estate construction		1,253			1,421		1,709		1,890		1,915
Lease financing		49			43		45		53		71
Foreign		66			79		38		47		68


Total commercial		6,371			6,924		7,599		8,217		8,611


Consumer:
Real estate 1-4 family first mortgage		11,195			10,368		10,683		10,913		11,024
Real estate 1-4 family junior lien mortgage (1)		3,140			3,091		3,558		1,975		2,035
Other revolving credit and installment		338			195		186		199		230


Total consumer (2)		14,673			13,654		14,427		13,087		13,289


Total nonaccrual loans (3)(4)(5)		21,044			20,578		22,026		21,304		21,900


As a percentage of total loans		2.69	%		2.65		2.87		2.77		2.88
Foreclosed assets:
Government insured/guaranteed (6)	$	1,479			1,465		1,352		1,319		1,336
Non-government insured/guaranteed		2,730			2,842		3,265		3,342		3,608


Total foreclosed assets		4,209			4,307		4,617		4,661		4,944


Total nonperforming assets	$	25,253			24,885		26,643		25,965		26,844


As a percentage of total loans		3.23	%		3.21		3.48		3.37		3.53

(1)

Includes $1.7 billion at March 31, 2012, resulting from implementation of the Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loans and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties issued on January 31, 2012. This guidance accelerated the timing of placing these loans on nonaccrual to coincide with the timing of placing the related real estate 1-4 family first mortgage loans on nonaccrual.

(2)

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

(4)	Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.

(5)

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 predominantly 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 because they are insured or guaranteed.

(6)

Consistent with regulatory reporting requirements, foreclosed real estate securing government insured/guaranteed loans is classified as nonperforming. Both principal and interest for government insured/guaranteed loans secured by the foreclosed real estate are collectible because the 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, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Loans 90 days or more past due and still accruing:
Total (excluding PCI)(1):	$	22,894		22,872		22,555		22,569		19,639
Less: FHA insured/VA guaranteed (2)		20,320		20,368		19,681		19,240		16,498
Less: Student loans guaranteed under the FFELP (3)		1,082		1,144		1,238		1,281		1,212


Total, not government insured/guaranteed	$	1,492		1,360		1,636		2,048		1,929


By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	49		44		104		153		108
Real estate mortgage		206		184		289		256		207
Real estate construction		41		25		25		89		57
Foreign		2		3		7		6		11


Total commercial		298		256		425		504		383


Consumer:
Real estate 1-4 family first mortgage (4)		627		561		616		781		819
Real estate 1-4 family junior lien mortgage (4)(5)		151		159		156		279		255
Credit card		288		274		319		346		328
Other revolving credit and installment		128		110		120		138		144


Total consumer		1,194		1,104		1,211		1,544		1,546


Total, not government insured/guaranteed	$	1,492		1,360		1,636		2,048		1,929

(1)

The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $6.2 billion, $6.6 billion, $7.1 billion, $8.7 billion and $8.9 billion, at September 30, June 30 and March 31, 2012 and December 31 and September 30, 2011, 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.

(5)	During first quarter 2012, $43 million of 1-4 family junior lien mortgages were transferred to nonaccrual upon implementation of the Interagency Guidance issued on January 31, 2012.

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 predominately 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, 2012		December 31,

(in millions)			2011		2010		2009		2008


Commercial:
Commercial and industrial	$	246		399		718		1,911		4,580
Real estate mortgage		2,350		3,270		2,855		4,137		5,803
Real estate construction		1,164		1,745		2,949		5,207		6,462
Foreign		1,037		1,353		1,413		1,733		1,859


Total commercial		4,797		6,767		7,935		12,988		18,704


Consumer:
Real estate 1-4 family first mortgage		27,535		29,746		33,245		38,386		39,214
Real estate 1-4 family junior lien mortgage		181		206		250		331		728
Other revolving credit and installment		-		-		-		-		151


Total consumer		27,716		29,952		33,495		38,717		40,093


Total PCI loans (carrying value)	$	32,513		36,719		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 is 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, December 31, 2008

10,410

26,485

4,069

40,964

Addition of nonaccretable difference due to acquisitions

188

Release of nonaccretable difference due to:

Loans resolved by settlement with borrower (1)

(1,345)

Loans resolved by sales to third parties (2)

(299)

(85)

(384)

Reclassification to accretable yield for loans with improving credit-related cash flows (3)

(1,216)

(2,383)

(614)

(4,213)

Use of nonaccretable difference due to:

Losses from loan resolutions and write-downs (4)

(6,809)

(14,976)

(2,718)

(24,503)

Balance, December 31, 2011

929

9,126

652

10,707

Addition of nonaccretable difference due to acquisitions

Release of nonaccretable difference due to:

Loans resolved by settlement with borrower (1)

(76)

Loans resolved by sales to third parties (2)

(4)

Reclassification to accretable yield for loans with improving credit-related cash flows (3)

(188)

(648)

(170)

(1,006)

Use of nonaccretable difference due to:

Losses from loan resolutions and write-downs (4)

(104)

(1,799)

(112)

(2,015)

Balance, September 30, 2012

557

6,679

370

7,606

Balance, June 30, 2012

658

8,128

440

9,226

Addition of nonaccretable difference due to acquisitions

Release of nonaccretable difference due to:

Loans resolved by settlement with borrower (1)

(24)

Loans resolved by sales to third parties (2)

(4)

Reclassification to accretable yield for loans with improving credit-related cash flows (3)

(41)

(603)

(43)

(687)

Use of nonaccretable difference due to:

Losses from loan resolutions and write-downs (4)

(32)

(846)

(27)

(905)

Balance, September 30, 2012

557

6,679

370

7,606

(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 for settlements with borrowers 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 accreted into interest income over the estimated lives of the PCI loans using the effective yield method. 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 quarterly assessment of expected cash flows;

•

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 changes in 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.




(in millions)


Balance, December 31, 2008	$	10,447
Addition of accretable yield due to acquisitions		128
Accretion into interest income (1)		(7,199)
Accretion into noninterest income due to sales (2)		(237)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		4,213
Changes in expected cash flows that do not affect nonaccretable difference (3)		8,609


Balance, December 31, 2011	$	15,961
Addition of accretable yield due to acquisitions		-
Accretion into interest income (1)		(1,639)
Accretion into noninterest income due to sales (2)		(5)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		1,006
Changes in expected cash flows that do not affect nonaccretable difference (3)		3,589


Balance, September 30, 2012	$	18,912




Balance, June 30, 2012	$	15,153
Addition of accretable yield due to acquisitions		-
Accretion into interest income (1)		(495)
Accretion into noninterest income due to sales (2)		-
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		687
Changes in expected cash flows that do not affect nonaccretable difference (3)		3,567


Balance, September 30, 2012	$	18,912

(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 expected cash flows 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, December 31, 2008	$	-		-		-		-
Provision for losses due to credit deterioration		1,668		-		116		1,784
Charge-offs		(1,503)		-		(50)		(1,553)


Balance, December 31, 2011		165		-		66		231
Provision for losses due to credit deterioration		11		-		9		20
Charge-offs		(78)		-		(13)		(91)


Balance, September 30, 2012	$	98		-		62		160




Balance, June 30, 2012	$	145		-		67		212
Reversal of provision for losses		(7)		-		-		(7)
Charge-offs		(40)		-		(5)		(45)


Balance, September 30, 2012	$	98		-		62		160

Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)



	September 30, 2012

	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	$	22,401		116	%	$	17,833		92	%	$	16,162		84	%
Florida		2,941		114			2,322		86			3,376		95
New Jersey		1,243		91			1,205		86			2,118		79
New York		710		91			679		84			941		80
Texas		310		79			288		73			1,336		64
Other states		5,502		105			4,657		87			9,163		85

Total Pick-a-Pay loans	$	33,107				$	26,984				$	33,096

(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 2012.

(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, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Commercial:
Legacy Wachovia commercial and industrial, commercial real estate and foreign PCI loans (1)	$	3,836		4,278		5,213		5,695		6,321


Total commercial		3,836		4,278		5,213		5,695		6,321


Consumer:
Pick-a-Pay mortgage (1)		60,080		62,045		63,983		65,652		67,361
Liquidating home equity		4,951		5,199		5,456		5,710		5,982
Legacy Wells Fargo Financial indirect auto		1,104		1,454		1,907		2,455		3,101
Legacy Wells Fargo Financial debt consolidation		15,002		15,511		16,013		16,542		17,186
Education Finance - government guaranteed		12,951		13,823		14,800		15,376		15,611
Legacy Wachovia other PCI loans (1)		732		818		860		896		947


Total consumer		94,820		98,850		103,019		106,631		110,188


Total non-strategic and liquidating loan portfolios	$	98,656		103,128		108,232		112,326		116,509

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

HOME EQUITY PORTFOLIOS (1)




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


(in millions)	Sept. 30, 2012		Dec. 31, 2011		Sept. 30, 2012			Dec. 31, 2011		Sept. 30, 2012 (2)		Dec. 31, 2011


Core portfolio (3)
California	$	23,665		25,555		2.62	%		3.03		4.77		3.42
Florida		9,946		10,870		4.49			4.99		4.75		4.30
New Jersey		7,474		7,973		3.58			3.73		3.22		2.22
Virginia		4,839		5,248		2.06			2.15		2.54		1.31
Pennsylvania		4,738		5,071		2.73			2.82		2.15		1.41
Other		42,317		46,165		2.67			2.79		3.75		2.50


Total		92,979		100,882		2.90			3.13		3.93		2.79


Liquidating portfolio
California		1,747		2,024		4.56			5.50		14.57		11.93
Florida		234		265		5.66			7.02		8.25		9.71
Arizona		101		116		4.12			6.64		13.07		17.54
Texas		83		97		1.31			0.93		4.95		1.57
Minnesota		68		75		2.96			2.83		12.24		8.13
Other		2,718		3,133		3.66			4.13		10.10		7.12


Total		4,951		5,710		4.03			4.73		11.60		9.09


Total core and liquidating portfolios	$	97,930		106,592		2.95			3.22		4.32		3.13

(1)

Consists predominantly of real estate 1-4 family junior lien mortgages and first and junior lines of credit secured by real estate, but excludes PCI loans because their losses are generally covered by PCI accounting adjustment at the date of acquisition, and excludes real estate 1-4 family first lien open-ended line reverse mortgages because they do not have scheduled payments. These reverse mortgage loans are insured by the FHA.

(2)	Reflects the implementation of a third quarter 2012 OCC update to the Bank Accounting Advisory Series, which requires write-down of performing consumer loans restructured in bankruptcy to collateral value.

(3)	Includes $1.4 billion at September 30, 2012, and $1.5 billion at December 31, 2011, 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)	2012			2011		2012		2011


Balance, beginning of period	$	18,646			21,262		19,668		23,463
Provision for credit losses		1,591			1,811		5,386		5,859
Interest income on certain impaired loans (1)		(76)			(84)		(245)		(246)
Loan charge-offs:
Commercial:
Commercial and industrial		(285)			(349)		(1,004)		(1,182)
Real estate mortgage		(100)			(119)		(296)		(483)
Real estate construction		(41)			(98)		(181)		(316)
Lease financing		(5)			(10)		(18)		(30)
Foreign		(35)			(25)		(81)		(121)


Total commercial		(466)			(601)		(1,580)		(2,132)


Consumer:
Real estate 1-4 family first mortgage		(719)			(900)		(2,319)		(2,979)
Real estate 1-4 family junior lien mortgage		(1,095)			(893)		(2,672)		(2,907)
Credit card		(255)			(320)		(842)		(1,146)
Other revolving credit and installment		(336)			(421)		(1,027)		(1,312)


Total consumer (2)		(2,405)			(2,534)		(6,860)		(8,344)


Total loan charge-offs		(2,871)			(3,135)		(8,440)		(10,476)


Loan recoveries:
Commercial:
Commercial and industrial		154			88		368		313
Real estate mortgage		46			23		115		107
Real estate construction		40			43		96		106
Lease financing		4			7		15		20
Foreign		5			17		26		38


Total commercial		249			178		620		584


Consumer:
Real estate 1-4 family first mortgage		46			79		112		345
Real estate 1-4 family junior lien mortgage		59			51		184		162
Credit card		43			54		148		204
Other revolving credit and installment		116			162		423		522


Total consumer		264			346		867		1,233


Total loan recoveries		513			524		1,487		1,817


Net loan charge-offs (3)		(2,358)			(2,611)		(6,953)		(8,659)


Allowances related to business combinations/other		-			(6)		(53)		(45)


Balance, end of period	$	17,803			20,372		17,803		20,372


Components:
Allowance for loan losses	$	17,385			20,039		17,385		20,039
Allowance for unfunded credit commitments		418			333		418		333


Allowance for credit losses (4)	$	17,803			20,372		17,803		20,372


Net loan charge-offs (annualized) as a percentage of average total loans (3)		1.21	%		1.37		1.20		1.54
Allowance for loan losses as a percentage of total loans (4)		2.22			2.64		2.22		2.64
Allowance for credit losses as a percentage of total loans (4)		2.27			2.68		2.27		2.68

(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)	Includes $567 million at September 30, 2012, resulting from implementation of a third quarter 2012 OCC update to the Bank Accounting Advisory Series, which requires write-down of performing consumer loans restructured in bankruptcy to collateral value.

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

(4)	The allowance for credit losses includes $160 million and $302 million at September 30, 2012 and 2011, 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, 2012			June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Balance, beginning of quarter	$	18,646			19,129		19,668		20,372		21,262
Provision for credit losses		1,591			1,800		1,995		2,040		1,811
Interest income on certain impaired loans (1)		(76)			(82)		(87)		(86)		(84)
Loan charge-offs:
Commercial:
Commercial and industrial		(285)			(360)		(359)		(416)		(349)
Real estate mortgage		(100)			(114)		(82)		(153)		(119)
Real estate construction		(41)			(60)		(80)		(35)		(98)
Lease financing		(5)			(5)		(8)		(8)		(10)
Foreign		(35)			(17)		(29)		(52)		(25)


Total commercial		(466)			(556)		(558)		(664)		(601)


Consumer:
Real estate 1-4 family first mortgage		(719)			(772)		(828)		(904)		(900)
Real estate 1-4 family junior lien mortgage		(1,095)			(757)		(820)		(856)		(893)
Credit card		(255)			(286)		(301)		(303)		(320)
Other revolving credit and installment		(336)			(318)		(373)		(412)		(421)


Total consumer (2)		(2,405)			(2,133)		(2,322)		(2,475)		(2,534)


Total loan charge-offs		(2,871)			(2,689)		(2,880)		(3,139)		(3,135)


Loan recoveries:
Commercial:
Commercial and industrial		154			111		103		106		88
Real estate mortgage		46			33		36		36		23
Real estate construction		40			43		13		40		43
Lease financing		4			5		6		4		7
Foreign		5			6		15		7		17


Total commercial		249			198		173		193		178


Consumer:
Real estate 1-4 family first mortgage		46			29		37		60		79
Real estate 1-4 family junior lien mortgage		59			68		57		56		51
Credit card		43			46		59		47		54
Other revolving credit and installment		116			148		159		143		162


Total consumer		264			291		312		306		346


Total loan recoveries		513			489		485		499		524


Net loan charge-offs		(2,358)			(2,200)		(2,395)		(2,640)		(2,611)


Allowances related to business combinations/other		-			(1)		(52)		(18)		(6)


Balance, end of quarter	$	17,803			18,646		19,129		19,668		20,372


Components:
Allowance for loan losses	$	17,385			18,320		18,852		19,372		20,039
Allowance for unfunded credit commitments		418			326		277		296		333


Allowance for credit losses	$	17,803			18,646		19,129		19,668		20,372


Net loan charge-offs (annualized) as a percentage of average total loans		1.21	%		1.15		1.25		1.36		1.37
Allowance for loan losses as a percentage of:
Total loans		2.22			2.36		2.46		2.52		2.64
Nonaccrual loans		83			89		86		91		92
Nonaccrual loans and other nonperforming assets		69			74		71		75		75
Allowance for credit losses as a percentage of:
Total loans		2.27			2.41		2.50		2.56		2.68
Nonaccrual loans		85			91		87		92		93
Nonaccrual loans and other nonperforming assets		70			75		72		76		76

(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)	Includes $567 million at September 30, 2012, resulting from implementation of a third quarter 2012 OCC update to the Bank Accounting Advisory Series, which requires write-down of performing consumer loans restructured in bankruptcy to collateral value.

Wells Fargo & Company and Subsidiaries

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



(in billions)		Sept. 30, 2012			June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Total equity		$	156.1			149.4		146.8		141.7		139.2
Noncontrolling interests			(1.4)			(1.3)		(1.3)		(1.5)		(1.5)


Total Wells Fargo stockholders’ equity		$	154.7			148.1		145.5		140.2		137.7


Adjustments:
Preferred equity			(11.3)			(10.6)		(10.6)		(10.6)		(10.6)
Goodwill and intangible assets (other than MSRs)			(33.4)			(33.5)		(33.7)		(34.0)		(34.4)
Applicable deferred taxes			3.3			3.5		3.7		3.8		4.0
MSRs over specified limitations			(0.7)			(0.7)		(0.9)		(0.8)		(0.7)
Cumulative other comprehensive income			(6.4)			(4.6)		(4.1)		(3.1)		(3.7)
Other			(0.4)			(0.5)		(0.4)		(0.4)		(0.4)


Tier 1 common equity	(A)	$	105.8			101.7		99.5		95.1		91.9


Total risk-weighted assets (2)	(B)	$	1,052.4			1,008.6		996.8		1,005.6		983.2


Tier 1 common equity to total risk-weighted assets	(A)/(B)		10.06	%		10.08		9.98		9.46		9.34

(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, 2012, risk-weighted assets are preliminary and reflect the Company’s refinement to its determination of risk weighting of certain unused lending commitments that provide for the ability to issue standby letters of credit. Total estimated on-balance sheet, and total estimated derivative and off-balance sheet risk-weighted assets were $846.5 billion and $205.9 billion at September 30, 2012, respectively.

TIER 1 COMMON EQUITY UNDER BASEL III (ESTIMATED) (1) (2)



(in billions)		Sept. 30, 2012


Tier 1 common equity under Basel I		$	105.8


Adjustments from Basel I to Basel III (3) (5):

Cumulative other comprehensive income related to AFS securities and defined benefit pension plans			6.0

Other			0.3

Total adjustments from Basel I to Basel III			6.3
Threshold deductions, as defined under Basel III (4) (5)			(0.7)


Tier 1 common equity anticipated under Basel III	(C)	$	111.4


Total risk-weighted assets anticipated under Basel III (6)	(D)	$	1,390.1


Tier 1 common equity to total risk-weighted assets anticipated under Basel III	(C)/(D)		8.02	%

(1)

(2)

The Basel III Tier 1 common equity and risk-weighted assets are calculated based on management’s current interpretation of the Basel III capital rules proposed by federal banking agencies in notices of proposed rulemaking announced in June 2012. The proposed rules and interpretations and assumptions used in estimating Basel III calculations are subject to change depending on final promulgations of Basel III capital rules.

(3)	Adjustments from Basel I to Basel III represent reconciling adjustments, primarily certain components of cumulative other comprehensive income deducted for Basel I purposes, to derive Tier 1 common equity under Basel III.

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

(5)	Volatility in interest rates can have a significant impact on the valuation of cumulative other comprehensive income and MSRs and therefore, may impact adjustments from Basel I to Basel III, and MSRs subject to threshold deductions, as defined under Basel III, in future reporting periods.

(6)

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)



(income/expense in millions, average balances in billions)	Community Banking				Wholesale Banking					Wealth, Brokerage and Retirement				Other (2)						Consolidated Company
(income/expense in millions, average balances in billions)	2012		2011		2012			2011		2012		2011		2012			2011			2012		2011

Quarter ended Sept. 30,
Net interest income (3)	$	7,247		7,272		3,028			2,897		680		716		(293	)		(343	)		10,662		10,542
Provision (reversal of provision) for credit losses		1,627		1,974		(57	)		(178)		30		48		(9	)		(33	)		1,591		1,811
Noninterest income		5,863		5,238		2,921			2,238		2,353		2,172		(586	)		(562	)		10,551		9,086
Noninterest expense		7,402		6,905		2,908			2,689		2,457		2,371		(655	)		(288	)		12,112		11,677

Income (loss) before income tax expense (benefit)		4,081		3,631		3,098			2,624		546		469		(215	)		(584	)		7,510		6,140
Income tax expense (benefit)		1,250		1,220		1,103			822		208		178		(81	)		(222	)		2,480		1,998

Net income (loss) before noncontrolling interests		2,831		2,411		1,995			1,802		338		291		(134	)		(362	)		5,030		4,142
Less: Net income (loss) from noncontrolling interests		91		87		2			(1)		-		1		-			-			93		87

Net income (loss) (4)	$	2,740		2,324		1,993			1,803		338		290		(134	)		(362	)		4,937		4,055


Average loans	$	485.3		489.7		277.1			253.4		42.5		43.1		(28.2	)		(31.7	)		776.7		754.5
Average assets		765.1		751.8		490.7			437.1		163.8		158.4		(65.3	)		(65.9	)		1,354.3		1,281.4
Average core deposits		594.5		556.4		225.4			209.3		136.7		133.3		(61.2	)		(62.2	)		895.4		836.8



Nine months ended Sept. 30,
Net interest income (3)	$	21,879		22,237		9,556			8,545		2,079		2,113		(927	)		(1,024	)		32,587		31,871
Provision (reversal of provision) for credit losses		5,078		5,951		226			(141)		110		150		(28	)		(101	)		5,386		5,859
Noninterest income		17,744		15,535		8,543			7,607		6,987		7,022		(1,723	)		(1,692	)		31,551		28,472
Noninterest expense		22,807		21,939		9,075			8,239		7,380		7,414		(1,760	)		(707	)		37,502		36,885

Income (loss) before income tax expense (benefit)		11,738		9,882		8,798			8,054		1,576		1,571		(862	)		(1,908	)		21,250		17,599
Income tax expense (benefit)		3,856		3,020		3,051			2,682		599		594		(327	)		(725	)		7,179		5,571

Net income (loss) before noncontrolling interests		7,882		6,862		5,747			5,372		977		977		(535	)		(1,183	)		14,071		12,028
Less: Net income from noncontrolling interests		259		238		5			21		-		7		-			-			264		266

Net income (loss) (4)	$	7,623		6,624		5,742			5,351		977		970		(535	)		(1,183	)		13,807		11,762


Average loans	$	485.1		498.3		272.0			243.7		42.5		43.1		(28.4	)		(31.8	)		771.2		753.3
Average assets		750.1		752.0		479.0			417.9		162.2		153.3		(64.9	)		(65.2	)		1,326.4		1,258.0
Average core deposits		585.3		552.3		222.4			195.0		135.5		128.2		(61.0	)		(61.6	)		882.2		813.9

(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 2012, we modified internal funds transfer rates and the allocation of funding. The 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, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


COMMUNITY BANKING
Net interest income (2)	$	7,247		7,306		7,326		7,420		7,272
Provision for credit losses		1,627		1,573		1,878		2,025		1,974
Noninterest income		5,863		5,786		6,095		5,589		5,238
Noninterest expense		7,402		7,580		7,825		7,313		6,905


Income before income tax expense		4,081		3,939		3,718		3,671		3,631
Income tax expense		1,250		1,313		1,293		1,084		1,220


Net income before noncontrolling interests		2,831		2,626		2,425		2,587		2,411
Less: Net income from noncontrolling interests		91		91		77		78		87


Segment net income	$	2,740		2,535		2,348		2,509		2,324


Average loans	$	485.3		483.9		486.1		490.6		489.7
Average assets		765.1		746.6		738.3		753.3		751.8
Average core deposits		594.5		586.1		575.2		568.4		556.4



WHOLESALE BANKING
Net interest income (2)	$	3,028		3,347		3,181		3,071		2,897
Provision (reversal of provision) for credit losses		(57)		188		95		31		(178)
Noninterest income		2,921		2,770		2,852		2,345		2,238
Noninterest expense		2,908		3,113		3,054		2,938		2,689


Income before income tax expense		3,098		2,816		2,884		2,447		2,624
Income tax expense		1,103		932		1,016		813		822


Net income before noncontrolling interests		1,995		1,884		1,868		1,634		1,802
Less: Net income (loss) from noncontrolling interests		2		3		-		(2)		(1)


Segment net income	$	1,993		1,881		1,868		1,636		1,803


Average loans	$	277.1		270.2		268.6		265.1		253.4
Average assets		490.7		478.4		467.8		458.3		437.1
Average core deposits		225.4		220.9		220.9		223.2		209.3



WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	680		698		701		731		716
Provision for credit losses		30		37		43		20		48
Noninterest income		2,353		2,273		2,361		2,311		2,172
Noninterest expense		2,457		2,376		2,547		2,520		2,371


Income before income tax expense		546		558		472		502		469
Income tax expense		208		210		181		191		178


Net income before noncontrolling interests		338		348		291		311		291
Less: Net income (loss) from noncontrolling interests		-		5		(5)		-		1


Segment net income	$	338		343		296		311		290


Average loans	$	42.5		42.5		42.5		42.8		43.1
Average assets		163.8		160.9		161.9		160.6		158.4
Average core deposits		136.7		134.2		135.6		135.2		133.3



OTHER (3)
Net interest income (2)	$	(293)		(314)		(320)		(330)		(343)
Provision (reversal of provision) for credit losses		(9)		2		(21)		(36)		(33)
Noninterest income		(586)		(577)		(560)		(532)		(562)
Noninterest expense		(655)		(672)		(433)		(263)		(288)


Loss before income tax benefit		(215)		(221)		(426)		(563)		(584)
Income tax benefit		(81)		(84)		(162)		(214)		(222)


Net loss before noncontrolling interests		(134)		(137)		(264)		(349)		(362)
Less: Net income from noncontrolling interests		-		-		-		-		-


Other net loss	$	(134)		(137)		(264)		(349)		(362)


Average loans	$	(28.2)		(28.4)		(28.6)		(29.9)		(31.7)
Average assets		(65.3)		(64.3)		(65.1)		(65.5)		(65.9)
Average core deposits		(61.2)		(60.6)		(61.2)		(61.9)		(62.2)



CONSOLIDATED COMPANY
Net interest income (2)	$	10,662		11,037		10,888		10,892		10,542
Provision for credit losses		1,591		1,800		1,995		2,040		1,811
Noninterest income		10,551		10,252		10,748		9,713		9,086
Noninterest expense		12,112		12,397		12,993		12,508		11,677


Income before income tax expense		7,510		7,092		6,648		6,057		6,140
Income tax expense		2,480		2,371		2,328		1,874		1,998


Net income before noncontrolling interests		5,030		4,721		4,320		4,183		4,142
Less: Net income from noncontrolling interests		93		99		72		76		87

Wells Fargo net income	$	4,937		4,622		4,248		4,107		4,055


Average loans	$	776.7		768.2		768.6		768.6		754.5
Average assets		1,354.3		1,321.6		1,302.9		1,306.7		1,281.4
Average core deposits		895.4		880.6		870.5		864.9		836.8

(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 2012, we modified internal funds transfer rates and the allocation of funding. 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

(in millions)	Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


MSRs measured using the fair value method:

Fair value, beginning of quarter	$	12,081		13,578		12,603		12,372		14,778
Servicing from securitizations or asset transfers (1)		1,173		1,139		1,776		1,211		744
Sales		-		(293)		-		-		-


Net additions		1,173		846		1,776		1,211		744


Changes in fair value:

Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (2)		(1,131)		(1,496)		147		(483)		(2,867)
Servicing and foreclosure costs (3)		(350)		(146)		(54)		(2)		(33)
Discount rates (4)		-		-		(344)		-		-
Prepayment estimates and other (5)		54		11		93		21		260


Net changes in valuation model inputs or assumptions		(1,427)		(1,631)		(158)		(464)		(2,640)

Other changes in fair value (6)		(871)		(712)		(643)		(516)		(510)


Total changes in fair value		(2,298)		(2,343)		(801)		(980)		(3,150)


Fair value, end of quarter	$	10,956		12,081		13,578		12,603		12,372

(1)	Quarter ended March 31, 2012, includes $315 million residential MSRs transferred from amortized MSRs that we elected to carry at fair value effective January 1, 2012.

(2)	Primarily represents prepayment speed changes due to changes in mortgage interest rates, but also includes other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances).

(3)	Includes costs to service and unreimbursed foreclosure costs.

(4)	Reflects discount rate assumption change, excluding portion attributable to changes in mortgage interest rates; the first quarter 2012 change reflects increased capital return requirements from market participants.

(5)	Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior.

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



	Quarter ended

(in millions)	Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Amortized MSRs:

Balance, beginning of quarter	$	1,130		1,074		1,445		1,437		1,432
Purchases		42		78		14		53		21
Servicing from securitizations or asset transfers (1)		30		34		(327)		26		50
Amortization		(58)		(56)		(58)		(71)		(66)


Balance, end of quarter		1,144		1,130		1,074		1,445		1,437


Valuation Allowance:

Balance, beginning of quarter		-		-		(37)		(40)		(10)
Reversal of provision (provision) for MSRs in excess of fair value (1)		-		-		37		3		(30)


Balance, end of quarter		-		-		-		(37)		(40)


Amortized MSRs, net	$	1,144		1,130		1,074		1,408		1,397


Fair value of amortized MSRs:

Beginning of quarter	$	1,450		1,263		1,756		1,759		1,805
End of quarter		1,399		1,450		1,263		1,756		1,759

(1)	Quarter ended March 31, 2012, is net of $350 million ($313 million after valuation allowance) of residential MSRs that we elected to carry at fair value effective January 1, 2012. A cumulative adjustment of $2 million to fair value was recorded in retained earnings at January 1, 2012.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)



	Quarter ended

(in millions)	Sept. 30, 2012		June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Servicing income, net:
Servicing fees (1)	$	984		1,070		1,011		876		1,029
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(1,427)		(1,631)		(158)		(464)		(2,640)
Other changes in fair value (3)		(871)		(712)		(643)		(516)		(510)


Total changes in fair value of MSRs carried at fair value		(2,298)		(2,343)		(801)		(980)		(3,150)
Amortization		(58)		(56)		(58)		(71)		(66)
Reversal of provision (provision) for MSRs in excess of fair value		-		-		-		3		(30)
Net derivative gains from economic hedges (4)		1,569		2,008		100		665		3,247


Total servicing income, net	$	197		679		252		493		1,030


Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	142		377		(58)		201		607

(1)	Includes contractually specified servicing fees, late charges and other ancillary revenues.

(2)	Refer to the changes in fair value MSRs table on page 41 for more detail.

(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, 2012			June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,508			1,499		1,483		1,456		1,457
Owned loans serviced		364			357		350		358		349
Subservicing		7			7		7		8		8


Total residential servicing		1,879			1,863		1,840		1,822		1,814


Commercial mortgage servicing:
Serviced for others		405			406		407		398		401
Owned loans serviced		105			106		106		106		104
Subservicing		13			13		13		14		14


Total commercial servicing		523			525		526		518		519


Total managed servicing portfolio	$	2,402			2,388		2,366		2,340		2,333


Total serviced for others	$	1,913			1,905		1,890		1,854		1,858
Ratio of MSRs to related loans serviced for others		0.63	%		0.69		0.77		0.76		0.74
Weighted-average note rate (mortgage loans serviced for others)		4.87			4.97		5.05		5.14		5.21

(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, 2012			June 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sept. 30, 2011


Application data:
Wells Fargo first mortgage quarterly applications	$	188			208		188		157		169
Refinances as a percentage of applications		72	%		69		76		78		74
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	97			102		79		72		84





Residential Real Estate Originations:
Wells Fargo first mortgage loans:
Retail	$	61			62		61		58		43
Correspondent/Wholesale		77			68		68		61		45
Other (1)		1			1		-		1		1


Total quarter-to-date	$	139			131		129		120		89


Total year-to-date	$	399			260		129		357		237

(1)	Consists of home equity loans and lines.

Wells Fargo & Company and Subsidiaries

CHANGES IN MORTGAGE REPURCHASE LIABILITY



	Quarter ended						Nine months ended

(in millions)	Sept. 30, 2012		June 30, 2012		Sept. 30, 2011		Sept. 30, 2012		Sept. 30, 2011


Balance, beginning of period	$	1,764		1,444		1,188		1,326		1,289
Provision for repurchase losses:
Loan sales		75		72		19		209		74
Change in estimate (1)		387		597		371		1,352		807


Total additions		462		669		390		1,561		881

Losses		(193)		(349)		(384)		(854)		(976)


Balance, end of period	$	2,033		1,764		1,194		2,033		1,194

(1) Results from such factors as changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.

UNRESOLVED REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS



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


September 30, 2012
Number of loans		6,525		1,513		817		8,855
Original loan balance (3)	$	1,489		331		183		2,003

June 30, 2012
Number of loans		5,687		913		840		7,440
Original loan balance (3)	$	1,265		213		188		1,666

March 31, 2012
Number of loans		6,333		857		970		8,160
Original loan balance (3)	$	1,398		241		217		1,856

December 31, 2011
Number of loans		7,066		470		1,178		8,714
Original loan balance (3)	$	1,575		167		268		2,010

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

(1)

Includes repurchase demands of 534 and $111 million, 526 and $103 million, 694 and $131 million, 861 and $161 million, and 878 and $173 million, for September 30, June 30 and March 31, 2012, and December 31 and September 30, 2011, 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. The number of repurchase demands from GSEs that are from mortgage loans originated in 2006 through 2008 totaled 80% at September 30, 2012.

(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% that require mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer due to a claim of breach of a contractual representation or warranty, 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 2011, approximately 80% have resulted in repurchase demands through September 2012. Not all mortgage insurance rescissions received in 2011 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 the original loan balances related to these demands are 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