8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 20, 2010

WELLS FARGO & COMPANY
(Exact name of registrant as specified in its charter)

Delaware	001-02979	No. 41-0449260
(State or other jurisdiction	(Commission File	(IRS Employer
of incorporation)	Number)	Identification No.)

420 Montgomery Street, San Francisco, California 94163
(Address of principal executive offices)  (Zip Code)

Registrant’s telephone number, including area code: 1-866-249-3302

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EX-99.1

EX-99.2

Item 2.02 Results of Operations and Financial Condition.

On October 20, 2010, Wells Fargo & Company (the “Company”) issued a press release regarding its results of operations and financial condition for the quarter and nine months ended September 30, 2010 (the “Press Release”), and posted on its website its 3Q10 Quarterly Supplement (the “Quarterly Supplement”), which contains certain additional historical and forward-looking information relating to the Company. The Press Release is included as Exhibit 99.1 to this report and is incorporated by reference into this Item 2.02. The information included in Exhibit 99.1 is considered to be “filed” for purposes of Section 18 under the Securities Exchange Act of 1934. The Quarterly Supplement is included as Exhibit 99.2 to this report and is incorporated by reference into this Item 2.02. Exhibit 99.2 shall not be considered “filed” for purposes of Section 18 under the Securities Exchange Act of 1934 and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933. The Company will report complete financial statements and additional analyses for the quarter and nine months ended September 30, 2010, as part of its Quarterly Report on Form 10-Q covering that period.

On October 20, 2010, the Company intends to host a live conference call that will also be available by webcast to discuss the Press Release, the Quarterly Supplement, and other matters relating to the Company.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	The Press Release, deemed “filed” under the Securities Exchange Act of 1934
99.2	The Quarterly Supplement, deemed “furnished” under the Securities Exchange Act of 1934

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: October 20, 2010	WELLS FARGO & COMPANY
	By:	/s/ RICHARD D. LEVY
		Richard D. Levy
		Executive Vice President and Controller
		(Principal Accounting Officer)

EX-99.1

Exhibit 99.1

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

Wednesday, October 20, 2010

WELLS FARGO REPORTS RECORD NET INCOME

EPS of $0.60; up 7 Percent from Prior Year

• Record quarterly earnings

–  Record net income of $3.34 billion; $21.2 billion of cumulative net income since Wachovia merger closed December 31, 2008

–  Net income applicable to common stock a record $3.15 billion, up 19 percent from prior year and up 9 percent from prior quarter

–  Diluted earnings per common share of $0.60, up 7 percent from prior year and up 9 percent from prior quarter

–  Revenue of $20.9 billion; pre-tax pre-provision profit¹ of $8.6 billion, included approximately $380 million (pre tax) negative impact from changes to Regulation E and related overdraft policy changes

–  Noninterest expense of $12.3 billion, down 15 percent (annualized) from prior quarter; third quarter included $476 million of merger integration costs

• Diverse sources of growth

–  All business segments contributed to earnings, with Community Banking up 13 percent and Wholesale Banking up 2 percent from prior quarter

–  Continued strong deposit growth; average checking and savings deposits up 9 percent from prior year, up 9 percent (annualized) from prior quarter; consumer checking accounts grew a net 7.3 percent from prior year

–  Supplied $176 billion in credit to consumers and businesses during the quarter, up 17 percent linked quarter with growth in mortgage originations, commercial loans and lines of credit, home equity lines and credit card lines

–  Second highest quarter for mortgage applications ever – $194 billion; mortgage originations of $101 billion, up from $81 billion in prior quarter; application pipeline of $101 billion at September 30, 2010, up from $68 billion at June 30, 2010

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

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• Credit quality improved for third consecutive quarter

–  Net loan charge-offs of $4.1 billion, down $394 million, or 9 percent from prior quarter, down $1.3 billion, or 24 percent, from fourth quarter 2009 peak

–  Stable 30+ days past due delinquency trends, improving 90+ days past due trends

–  Reserve release² of $650 million (pre tax) reflecting improved portfolio performance; anticipate reserve levels will continue to decline absent significant economic deterioration

–  Allowance for credit losses equal to 150 percent of annualized net charge-offs

• Strong capital position on rapid internal capital generation

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

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

• Wachovia integration exceeding expectations

–  Conversion of first Eastern banking stores completed (Mississippi, Alabama and Tennessee), remaining Eastern store conversions will take place throughout 2010 and 2011

–  Mutual fund business converted to Wells Fargo Advantage Funds during the quarter

–  Credit losses lower than original expectations, integration expenses and cost saves on track, revenue synergies growing

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

–  532,600 mortgage loan modifications

– 1.8 million mortgage loans refinanced

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

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Selected Financial Information

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Net Loan Charge-Offs

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

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

Nonperforming Assets

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

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

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

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

Nonaccrual Loans and Other Nonperforming Assets

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

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing also improved in the quarter, totaling $18.8 billion at September 30, 2010, compared with $19.4 billion at June 30, 2010. For the same periods, the totals included $14.5 billion and $14.4 billion, respectively, in advances pursuant to the Company’s servicing agreement to GNMA mortgage pools and similar loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Commercial and

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

Allowance for Credit Losses

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

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

Business Segment Performance

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

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

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

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

Selected Financial Information

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

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

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

Regional Banking Highlights

• Strong growth in checking accounts (combined Regional Banking)

- Consumer checking accounts up a net 7.3 percent from prior year

- Business checking accounts up a net 5.0 percent from prior year

- Consumer checking accounts up a net 8.3 percent in California, 11.2 percent in New Jersey and 9.0 percent in Florida

• Solutions growth in third quarter

- Legacy Wells Fargo footprint including converted Wachovia:

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

- 12 -

o Core sales per platform banker FTE (active, full-time equivalent) of 5.99 per day, up from 5.88 in prior year

o Sales of Wells Fargo Packages^® (a checking account and at least three other products) up 16 percent from prior year, purchased by 81 percent of new checking account customers

- Eastern footprint including converted Wachovia:

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

• Continued retail bank household cross-sell growth

- Legacy Wells Fargo: record retail bank household cross-sell of Wells Fargo products of 6.08 products per household

- Wachovia: retail bank household cross-sell of Wachovia products continued to grow to 4.91 products per household

• Customer experience (combined Regional Banking)

- More than 195,000 customers were contacted about their experience in Wells Fargo stores and over 51,000 customers spoke about their experience in the contact centers

- Nearly 8 out of 10 customers were “extremely satisfied,” the highest rating, with their recent call or visit with Wells Fargo

• Continued focus on distribution

- Converted 193 Wachovia banking stores in Texas and Kansas in July 2010 and 170 in Alabama, Mississippi and Tennessee in late September 2010

- Opened 13 banking stores in third quarter for retail network total of 6,335 stores

- Converted 941 ATMs to Envelope-Free^SM webATM machines in third quarter

• Small Business/Business Banking

- Store-based business solutions up 25 percent from prior year (legacy Wells Fargo footprint including converted Wachovia)

- Sales of Wells Fargo Business Services Packages (business checking account and at least three other business products) up 41 percent from prior year, purchased by 64 percent of new business checking account customers (legacy Wells Fargo footprint including converted Wachovia)

- Business Banking household cross-sell of 3.97 products per household (legacy Wells Fargo footprint, including Wells Fargo and Wachovia customers)

- Extended $10.5 billion in new small business loans through September 2010, including $3.9 billion in third quarter. Though demand for small business loans continued to be soft, saw improvement with new loan volume increasing 17 percent from third quarter of 2009.

- America’s #1 small business lender (in both loans under $100,000 and under $1,000,000) and #1 lender to small businesses in low-and moderate-income areas, according to 2009 Community Reinvestment Act (CRA) data

- 13 -

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

• Online and mobile banking

- 17.9 million combined active online customers

- 4.1 million combined active mobile customers

- Ranked Best Consumer Internet Bank and Best Corporate/Institutional Internet Bank in the U.S. (Global Finance, August 2010)

- Mobile banking services earned a Gold ranking in the Javelin Strategy & Research “2010 Mobile Banking Scorecard” (August 2010)

Wells Fargo Home Mortgage (Home Mortgage)

• Home Mortgage applications of $194 billion, up from $143 billion in prior quarter

• Home Mortgage application pipeline of $101 billion at September 30, 2010, up from $68 billion at June 30, 2010

• Home Mortgage originations of $101 billion, up from $81 billion in prior quarter

• Owned residential mortgage servicing portfolio of $1.8 trillion at September 30, 2010

• 2.3 million homeowners benefitted from home payment relief through modifications and refinances (January 2009 through August 31, 2010)

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

Selected Financial Information

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

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

- 14 -

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

• Average core deposits up 17 percent from prior year and up 7 percent from prior quarter

• Strong linked quarter average loan balance growth in asset-backed finance and global financial institutions portfolios

• New loan commitments in commercial real estate up 265 percent from prior year and up 44 percent from prior quarter as economy begins to recover

• Wells Fargo Shareowner Services^SM ranked #1 in overall customer satisfaction and client loyalty in Group 5’s survey of public companies

• CEO Mobile^® named one of the five best mobile banking applications by Bank Technology News

Wealth, Brokerage and Retirement provides a full range of financial advisory services to clients using a comprehensive planning approach to meet each client’s needs. Wealth Management provides affluent and high net worth clients with a complete range of wealth management solutions including financial planning, private banking, credit, investment management and trust. Family Wealth meets the unique needs of the ultra high net worth customers. Retail brokerage’s financial advisors serve customers’ advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the U.S. Retirement provides retirement services for individual investors and is a national leader in 401(k) and pension record keeping.

Selected Financial Information

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

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

- 15 -

Retail Brokerage

• Client assets of $1.1 trillion, up 4 percent from prior year

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

Wealth Management

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

Retirement

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

• IRA assets of $254 billion, up $20 billion, or 8 percent, from prior year

Conference Call

The Company will host a live conference call on Wednesday, October 20, at 6:30 a.m. PDT (9:30 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1692 (international). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and
http://event.meetingstream.com/r.htm?e=240281&s=1&k=9E85E58A6C441E015358F44355F5C3CD.

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

Cautionary Statement About Forward-Looking Information

In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that this news release contains forward-looking statements about our future financial performance and business. We make forward-looking statements when we use words such as “believe,” “expect,” “anticipate,” “estimate,” “should,” “may,” “can,” “will,” “outlook,” “project,” “appears” or similar expressions. Forward-looking statements in this news release include, among others, statements about: (i) future credit quality and expected or estimated future loan losses in our loan portfolios; the level and loss content of nonperforming assets and nonaccrual loans, as well as the level of inflows and outflows into nonperforming assets; and the adequacy of the allowance for loan losses, including our current expectation of future reductions in the allowance for loan losses; (ii) reduction or mitigation of risk in our loan portfolios; (iii) our expectation that we will be at a 7 percent Tier 1 common ratio under proposed Basel III capital regulations within the next few quarters; (iv) our foreclosure practices and related matters; and (v) the amount and timing of expected integration activities, expenses and cost savings relating to the Wachovia merger, as well as the expected synergies and benefits of the merger.

Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. Several factors could cause actual results to differ materially from expectations including: current and future economic and market conditions, including the effects of further declines in housing prices and high unemployment rates; our capital requirements and our ability to generate capital internally or raise capital on favorable terms (including, without limitation, regulatory capital standards as determined by applicable regulatory authorities); financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses (including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act); the extent of success in our loan modification efforts, including the effects of regulatory requirements, or changes in regulatory requirements, relating to loan

- 16 -

modifications; the amount of mortgage loan repurchase demands from third parties; our ability to successfully and timely integrate the Wachovia merger and realize the expected cost savings and other benefits, including delays or disruptions in system conversions and higher severance costs; our ability to realize efficiency initiatives to lower expenses when and in the amount expected; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect of changes in interest rates on our net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; hedging gains or losses; disruptions in the capital markets and reduced investor demand for mortgage loans; our ability to sell more products to our customers; the effect of the economic recession on the demand for our products and services; the effect of fluctuations in stock market prices on fee income from our brokerage, asset and wealth management businesses; our election to provide support to our mutual funds for structured credit products they may hold; changes in the value of our venture capital investments; changes in our accounting policies or in accounting standards or in how accounting standards are to be applied; changes in our credit ratings and changes in the credit ratings of our customers or counterparties; mergers and acquisitions; federal and state regulations; reputational damage from negative publicity, fines, penalties and other negative consequences from regulatory violations; the loss of checking and saving account deposits to other investments such as the stock market; and fiscal and monetary policies of the Federal Reserve Board. There is no assurance that our allowance for credit losses will be adequate to cover future credit losses, especially if credit markets, housing prices, and unemployment do not improve. Increases in loan charge-offs or in the allowance for credit losses and related provision expense could materially adversely affect our financial results and condition. For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, and June 30, 2010, including the discussions under “Risk Factors” in each of those reports, as filed with the SEC and available on the SEC’s website at www.sec.gov. Any factor described above or in our SEC reports could, by itself or together with one or more other factors, adversely affect our financial results and condition.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.2 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With more than 278,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked #19 on Fortune’s 2009 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

# # #

 - 17 -

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

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

 - 18 -

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

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

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(3)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(4)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(5)	The September 30, 2010, ratios are preliminary.
(6)	See page 39 for additional information.

 - 19 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

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

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(3)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(4)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(5)	The September 30, 2010, ratios are preliminary.
(6)	See page 39 for additional information.

 - 20 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

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

NM - Not meaningful

 - 21 -

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)	2010			2010		2010		2009		2009
Interest income
Trading assets	$	270			266		267		230		216
Securities available for sale		2,492			2,385		2,415		2,776		2,947
Mortgages held for sale		449			405		387		446		524
Loans held for sale		22			30		34		32		34
Loans		9,779			10,277		10,038		10,122		10,170
Other interest income		118			109		84		86		77
Total interest income		13,130			13,472		13,225		13,692		13,968
Interest expense
Deposits		721			714		735		913		905
Short-term borrowings		27			21		18		12		32
Long-term debt		1,226			1,233		1,276		1,217		1,301
Other interest expense		58			55		49		50		46
Total interest expense		2,032			2,023		2,078		2,192		2,284
Net interest income		11,098			11,449		11,147		11,500		11,684
Provision for credit losses		3,445			3,989		5,330		5,913		6,111
Net interest income after provision for credit losses		7,653			7,460		5,817		5,587		5,573
Noninterest income
Service charges on deposit accounts		1,132			1,417		1,332		1,421		1,478
Trust and investment fees		2,564			2,743		2,669		2,605		2,502
Card fees		935			911		865		961		946
Other fees		1,004			982		941		990		950
Mortgage banking		2,499			2,011		2,470		3,411		3,067
Insurance		397			544		621		482		468
Net gains from trading activities		470			109		537		516		622
Net gains (losses) on debt securities available for sale		(114	)		30		28		110		(40	)
Net gains from equity investments		131			288		43		273		29
Operating leases		222			329		185		163		224
Other		536			581		610		264		536
Total noninterest income		9,776			9,945		10,301		11,196		10,782
Noninterest expense
Salaries		3,478			3,564		3,314		3,505		3,428
Commission and incentive compensation		2,280			2,225		1,992		2,086		2,051
Employee benefits		1,074			1,063		1,322		1,144		1,034
Equipment		557			588		678		681		563
Net occupancy		742			742		796		770		778
Core deposit and other intangibles		548			553		549		642		642
FDIC and other deposit assessments		300			295		301		302		228
Other		3,274			3,716		3,165		3,691		2,960
Total noninterest expense		12,253			12,746		12,117		12,821		11,684
Income before income tax expense		5,176			4,659		4,001		3,962		4,671
Income tax expense		1,751			1,514		1,401		949		1,355
Net income before noncontrolling interests		3,425			3,145		2,600		3,013		3,316
Less: Net income from noncontrolling interests		86			83		53		190		81
Wells Fargo net income	$	3,339			3,062		2,547		2,823		3,235
Wells Fargo net income applicable to common stock	$	3,150			2,878		2,372		394		2,637
Per share information
Earnings per common share	$	0.60			0.55		0.46		0.08		0.56
Diluted earnings per common share		0.60			0.55		0.45		0.08		0.56
Dividends declared per common share		0.05			0.05		0.05		0.05		0.05
Average common shares outstanding		5,240.1			5,219.7		5,190.4		4,764.8		4,678.3
Diluted average common shares outstanding		5,273.2			5,260.8		5,225.2		4,796.1		4,706.4

 - 22-

Wells Fargo & Company and Subsidiaries

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

	Quarter ended Sept. 30,
	2010								2009
							Interest								Interest
	Average			Yields/			income/		Average			Yields/			income/
(in millions)	balance			rates			expense		balance			rates			expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	70,839			0.38	%	$	67		16,356			0.66	%	$	27
Trading assets		29,080			3.77			275		20,518			4.29			221
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,673			2.79			11		2,545			3.79			24
Securities of U.S. states and political subdivisions		17,220			5.89			249		12,818			6.28			204
Mortgage-backed securities:
Federal agencies		70,486			5.35			885		94,457			5.34			1,221
Residential and commercial		33,425			12.53			987		43,214			9.56			1,089
Total mortgage-backed securities		103,911			7.67			1,872		137,671			6.75			2,310
Other debt securities (4)		35,533			6.02			503		33,294			7.00			568
Total debt securities available for sale (4)		158,337			7.05			2,635		186,328			6.72			3,106
Mortgages held for sale (5)		38,073			4.72			449		40,604			5.16			524
Loans held for sale (5)		3,223			2.71			22		4,975			2.67			34
Loans:
Commercial and commercial real estate:
Commercial		146,139			4.57			1,679		175,642			4.34			1,919
Real estate mortgage		99,082			4.15			1,036		95,612			3.45			832
Real estate construction		29,469			3.31			246		40,487			2.94			300
Lease financing		13,156			9.07			298		14,360			9.14			328
Total commercial and commercial real estate		287,846			4.50			3,259		326,101			4.12			3,379
Consumer:
Real estate 1-4 family first mortgage		231,172			5.16			2,987		235,051			5.35			3,154
Real estate 1-4 family junior lien mortgage		100,257			4.41			1,114		105,779			4.62			1,229
Credit card		22,048			13.57			748		23,448			11.65			683
Other revolving credit and installment		87,884			6.50			1,441		90,199			6.48			1,473
Total consumer		441,361			5.68			6,290		454,477			5.73			6,539
Foreign		30,276			3.15			240		29,613			3.61			270
Total loans (5)		759,483			5.13			9,789		810,191			5.00			10,188
Other		5,912			3.53			53		6,088			3.29			49
Total earning assets	$	1,064,947			5.01	%	$	13,290		1,085,060			5.20	%	$	14,149
Funding sources
Deposits:
Interest-bearing checking	$	59,677			0.10	%	$	15		59,467			0.15	%	$	21
Market rate and other savings		419,996			0.25			269		369,120			0.34			317
Savings certificates		85,044			1.50			322		129,698			1.35			442
Other time deposits		14,400			2.33			83		18,248			1.93			89
Deposits in foreign offices		52,061			0.24			32		56,820			0.25			36
Total interest-bearing deposits		631,178			0.45			721		633,353			0.57			905
Short-term borrowings		46,468			0.26			31		39,828			0.35			36
Long-term debt		177,077			2.76			1,226		222,580			2.33			1,301
Other liabilities		6,764			3.39			58		5,620			3.30			46
Total interest-bearing liabilities		861,487			0.94			2,036		901,381			1.01			2,288
Portion of noninterest-bearing funding sources		203,460			-			-		183,679			-			-
Total funding sources	$	1,064,947			0.76			2,036		1,085,060			0.84			2,288
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.25	%	$	11,254					4.36	%	$	11,861
Noninterest-earning assets
Cash and due from banks	$	17,000								18,084
Goodwill		24,829								24,435
Other		113,592								118,472
Total noninterest-earning assets	$	155,421								160,991
Noninterest-bearing funding sources
Deposits	$	184,837								172,588
Other liabilities		50,013								47,646
Total equity		124,031								124,436
Noninterest-bearing funding sources used to fund earning assets		(203,460	)							(183,679	)
Net noninterest-bearing funding sources	$	155,421								160,991
Total assets	$	1,220,368								1,246,051

(1)	Our average prime rate was 3.25% for the quarters ended September 30, 2010 and 2009. The average three-month London Interbank Offered Rate (LIBOR) was 0.39% and 0.41% for the same quarters, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affected earning assets. Thus yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

 - 23 -

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

	Nine months ended Sept. 30,
	2010								2009
							Interest								Interest
	Average			Yields/			income/		Average			Yields/			income/
(in millions)	balance			rates			expense		balance			rates			expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	59,905			0.35	%	$	156		20,411			0.73	%	$	111
Trading assets		28,588			3.82			819		20,389			4.64			709
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		2,013			3.36			49		2,514			2.61			48
Securities of U.S. states and political subdivisions		15,716			6.29			725		12,409			6.39			623
Mortgage-backed securities:
Federal agencies		74,330			5.38			2,838		87,916			5.45			3,492
Residential and commercial		33,133			10.58			2,546		41,070			9.05			3,150
Total mortgage-backed securities		107,463			7.01			5,384		128,986			6.72			6,642
Other debt securities (4)		33,727			6.56			1,557		31,437			7.01			1,691
Total debt securities available for sale (4)		158,919			6.80			7,715		175,346			6.69			9,004
Mortgages held for sale (5)		33,903			4.88			1,241		38,315			5.16			1,484
Loans held for sale (5)		4,660			2.46			86		6,693			3.01			151
Loans:
Commercial and commercial real estate:
Commercial		150,153			4.83			5,431		186,610			4.10			5,725
Real estate mortgage		98,264			3.91			2,875		95,928			3.50			2,510
Real estate construction		32,770			3.27			801		41,735			2.89			901
Lease financing		13,592			9.28			946		14,968			9.04			1,015
Total commercial and commercial real estate		294,779			4.56			10,053		339,241			4.00			10,151
Consumer:
Real estate 1-4 family first mortgage		237,848			5.22			9,305		240,409			5.51			9,926
Real estate 1-4 family junior lien mortgage		102,839			4.47			3,444		108,094			4.81			3,894
Credit card		22,539			13.32			2,251		23,236			12.16			2,118
Other revolving credit and installment		88,998			6.49			4,320		91,240			6.60			4,502
Total consumer		452,224			5.70			19,320		462,979			5.90			20,440
Foreign		29,302			3.46			758		30,856			4.02			929
Total loans (5)		776,305			5.18			30,131		833,076			5.05			31,520
Other		6,021			3.45			156		6,102			3.02			137
Total earning assets	$	1,068,301			5.07	%	$	40,304		1,100,332			5.21	%	$	43,116
Funding sources
Deposits:
Interest-bearing checking	$	60,961			0.13	%	$	57		73,195			0.14	%	$	77
Market rate and other savings		412,060			0.27			822		339,081			0.42			1,072
Savings certificates		89,824			1.43			962		150,607			1.14			1,280
Other time deposits		15,066			2.08			235		21,794			1.97			321
Deposits in foreign offices		54,973			0.23			94		50,907			0.29			111
Total interest-bearing deposits		632,884			0.46			2,170		635,584			0.60			2,861
Short-term borrowings		45,549			0.22			75		58,447			0.50			217
Long-term debt		193,724			2.57			3,735		238,909			2.55			4,568
Other liabilities		6,393			3.38			162		4,675			3.50			122
Total interest-bearing liabilities		878,550			0.93			6,142		937,615			1.11			7,768
Portion of noninterest-bearing funding sources		189,751			-			-		162,717			-			-
Total funding sources	$	1,068,301			0.77			6,142		1,100,332			0.94			7,768
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.30	%	$	34,162					4.27	%	$	35,348
Noninterest-earning assets
Cash and due from banks	$	17,484								19,218
Goodwill		24,822								23,964
Other		112,928								126,557
Total noninterest-earning assets	$	155,234								169,739
Noninterest-bearing funding sources
Deposits	$	177,975								169,187
Other liabilities		46,174								49,249
Total equity		120,836								114,020
Noninterest-bearing funding sources used to fund earning assets		(189,751	)							(162,717	)
Net noninterest-bearing funding sources	$	155,234								169,739
Total assets	$	1,223,535								1,270,071

(1)	Our average prime rate was 3.25% for the nine months ended September 30, 2010 and 2009. The average three-month London Interbank Offered Rate (LIBOR) was 0.36% and 0.83% for the same nine months, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affected earning assets. Thus yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

 - 24 -

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended Sept. 30,						%			Nine months ended Sept. 30,						%
(in millions)	2010			2009			Change			2010			2009			Change
Service charges on deposit accounts	$	1,132			1,478			(23	) %	$	3,881			4,320			(10	)	%
Trust and investment fees:
Trust, investment and IRA fees		924			989			(7	)		3,008			2,550			18
Commissions and all other fees		1,640			1,513			8			4,968			4,580			8
Total trust and investment fees		2,564			2,502			2			7,976			7,130			12
Card fees		935			946			(1	)		2,711			2,722			-
Other fees:
Cash network fees		73			60			22			186			176			6
Charges and fees on loans		424			453			(6	)		1,244			1,326			(6	)
Processing and all other fees		507			437			16			1,497			1,312			14
Total other fees		1,004			950			6			2,927			2,814			4
Mortgage banking (1):
Servicing income, net		516			1,919			(73	)		3,100			3,641			(15	)
Net gains on mortgage loan origination/sales activities		1,983			1,148			73			3,880			4,976			(22	)
Total mortgage banking		2,499			3,067			(19	)		6,980			8,617			(19	)
Insurance		397			468			(15	)		1,562			1,644			(5	)
Net gains from trading activities		470			622			(24	)		1,116			2,158			(48	)
Net losses on debt securities available for sale		(114	)		(40	)		185			(56	)		(237	)		(76	)
Net gains (losses) from equity investments		131			29			352			462			(88	)	NM
Operating leases		222			224			(1	)		736			522			41
All other		536			536			-			1,727			1,564			10
Total	$	9,776			10,782			(9	)	$	30,022			31,166			(4	)
NM - Not meaningful
(1) 2009 categories have been revised to conform to current presentation.
NONINTEREST EXPENSE
	Quarter ended Sept. 30,						%			Nine months ended Sept. 30,						%
(in millions)	2010			2009			Change			2010			2009			Change
Salaries	$	3,478			3,428			1	%	$	10,356			10,252			1		%
Commission and incentive compensation		2,280			2,051			11			6,497			5,935			9
Employee benefits		1,074			1,034			4			3,459			3,545			(2	)
Equipment		557			563			(1	)		1,823			1,825			-
Net occupancy		742			778			(5	)		2,280			2,357			(3	)
Core deposit and other intangibles		548			642			(15	)		1,650			1,935			(15	)
FDIC and other deposit assessments		300			228			32			896			1,547			(42	)
Outside professional services		533			489			9			1,589			1,350			18
Contract services		430			254			69			1,161			726			60
Foreclosed assets		366			243			51			1,085			678			60
Outside data processing		263			251			5			811			745			9
Postage, stationery and supplies		233			211			10			705			701			1
Operating losses		230			117			97			1,065			448			138
Insurance		62			208			(70	)		374			734			(49	)
Telecommunications		146			142			3			445			464			(4	)
Travel and entertainment		195			151			29			562			387			45
Advertising and promotion		170			160			6			438			396			11
Operating leases		21			52			(60	)		85			183			(54	)
All other		625			682			(8	)		1,835			1,991			(8	)
Total	$	12,253			11,684			5		$	37,116			36,199			3

- 25 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2010			2010		2010		2009		2009
Service charges on deposit accounts	$	1,132			1,417		1,332		1,421		1,478
Trust and investment fees:
Trust, investment and IRA fees		924			1,035		1,049		1,038		989
Commissions and all other fees		1,640			1,708		1,620		1,567		1,513
Total trust and investment fees		2,564			2,743		2,669		2,605		2,502
Card fees		935			911		865		961		946
Other fees:
Cash network fees		73			58		55		55		60
Charges and fees on loans		424			401		419		475		453
Processing and all other fees		507			523		467		460		437
Total other fees		1,004			982		941		990		950
Mortgage banking (1):
Servicing income, net		516			1,218		1,366		2,150		1,919
Net gains on mortgage loan origination/sales activities		1,983			793		1,104		1,261		1,148
Total mortgage banking		2,499			2,011		2,470		3,411		3,067
Insurance		397			544		621		482		468
Net gains from trading activities		470			109		537		516		622
Net gains (losses) on debt securities available for sale		(114	)		30		28		110		(40	)
Net gains from equity investments		131			288		43		273		29
Operating leases		222			329		185		163		224
All other		536			581		610		264		536
Total	$	9,776			9,945		10,301		11,196		10,782
(1) 2009 categories have been revised to conform to current presentation.
FIVE QUARTER NONINTEREST EXPENSE
	Quarter ended
	Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2010			2010		2010		2009		2009
Salaries	$	3,478			3,564		3,314		3,505		3,428
Commission and incentive compensation		2,280			2,225		1,992		2,086		2,051
Employee benefits		1,074			1,063		1,322		1,144		1,034
Equipment		557			588		678		681		563
Net occupancy		742			742		796		770		778
Core deposit and other intangibles		548			553		549		642		642
FDIC and other deposit assessments		300			295		301		302		228
Outside professional services		533			572		484		632		489
Contract services		430			384		347		362		254
Foreclosed assets		366			333		386		393		243
Outside data processing		263			276		272		282		251
Postage, stationery and supplies		233			230		242		232		211
Operating losses		230			627		208		427		117
Insurance		62			164		148		111		208
Telecommunications		146			156		143		146		142
Travel and entertainment		195			196		171		188		151
Advertising and promotion		170			156		112		176		160
Operating leases		21			27		37		44		52
All other		625			595		615		698		682
Total	$	12,253			12,746		12,117		12,821		11,684

- 26 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

	Sept. 30,			Dec. 31,
(in millions, except shares)	2010			2009			% Change
Assets
Cash and due from banks	$	16,001			27,080			(41	)	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		56,549			40,885			38
Trading assets		49,271			43,039			14
Securities available for sale		176,875			172,710			2
Mortgages held for sale (includes $42,791 and $36,962 carried at fair value)		46,001			39,094			18
Loans held for sale (includes $436 and $149 carried at fair value)		1,188			5,733			(79	)
Loans (includes $353 carried at fair value at September 30, 2010)		753,664			782,770			(4	)
Allowance for loan losses		(23,939	)		(24,516	)		(2	)
Net loans		729,725			758,254			(4	)
Mortgage servicing rights:
Measured at fair value (residential MSRs)		12,486			16,004			(22	)
Amortized		1,013			1,119			(9	)
Premises and equipment, net		9,636			10,736			(10	)
Goodwill		24,831			24,812			-
Other assets		97,208			104,180			(7	)
Total assets	$	1,220,784			1,243,646			(2	)
Liabilities
Noninterest-bearing deposits	$	184,451			181,356			2
Interest-bearing deposits		630,061			642,662			(2	)
Total deposits		814,512			824,018			(1	)
Short-term borrowings		50,715			38,966			30
Accrued expenses and other liabilities		67,249			62,442			8
Long-term debt (includes $351 carried at fair value at September 30, 2010)		163,143			203,861			(20	)
Total liabilities		1,095,619			1,129,287			(3	)
Equity
Wells Fargo stockholders’ equity:
Preferred stock		8,840			8,485			4
Common stock - $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,253,819,623 shares and 5,245,971,422 shares		8,756			8,743			-
Additional paid-in capital		52,899			52,878			-
Retained earnings		48,953			41,563			18
Cumulative other comprehensive income		5,502			3,009			83
Treasury stock - 9,442,860 shares and 67,346,829 shares		(466	)		(2,450	)		(81	)
Unearned ESOP shares		(826	)		(442	)		87
Total Wells Fargo stockholders’ equity		123,658			111,786			11
Noncontrolling interests		1,507			2,573			(41	)
Total equity		125,165			114,359			9
Total liabilities and equity	$	1,220,784			1,243,646			(2	)

- 27 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2010			2010			2010			2009			2009
Assets
Cash and due from banks	$	16,001			17,571			16,301			27,080			17,233
Federal funds sold, securities purchased under resale agreements and other short-term investments		56,549			73,898			54,192			40,885			17,491
Trading assets		49,271			47,132			47,028			43,039			43,198
Securities available for sale		176,875			157,927			162,487			172,710			183,814
Mortgages held for sale		46,001			38,581			34,737			39,094			35,538
Loans held for sale		1,188			3,999			5,140			5,733			5,846
Loans		753,664			766,265			781,430			782,770			799,952
Allowance for loan losses		(23,939	)		(24,584	)		(25,123	)		(24,516	)		(24,028	)
Net loans		729,725			741,681			756,307			758,254			775,924
Mortgage servicing rights:
Measured at fair value (residential MSRs)		12,486			13,251			15,544			16,004			14,500
Amortized		1,013			1,037			1,069			1,119			1,162
Premises and equipment, net		9,636			10,508			10,405			10,736			11,040
Goodwill		24,831			24,820			24,819			24,812			24,052
Other assets		97,208			95,457			95,601			104,180			98,827
Total assets	$	1,220,784			1,225,862			1,223,630			1,243,646			1,228,625
Liabilities
Noninterest-bearing deposits	$	184,451			175,015			170,518			181,356			165,260
Interest-bearing deposits		630,061			640,608			634,375			642,662			631,488
Total deposits		814,512			815,623			804,893			824,018			796,748
Short-term borrowings		50,715			45,187			46,333			38,966			30,800
Accrued expenses and other liabilities		67,249			58,582			54,371			62,442			57,861
Long-term debt		163,143			185,072			199,879			203,861			214,292
Total liabilities		1,095,619			1,104,464			1,105,476			1,129,287			1,099,701
Equity
Wells Fargo stockholders’ equity:
Preferred stock		8,840			8,980			9,276			8,485			31,589
Common stock		8,756			8,743			8,743			8,743			7,927
Additional paid-in capital		52,899			52,687			53,156			52,878			40,343
Retained earnings		48,953			46,126			43,636			41,563			41,485
Cumulative other comprehensive income		5,502			4,844			4,087			3,009			4,088
Treasury stock		(466	)		(631	)		(1,460	)		(2,450	)		(2,771	)
Unearned ESOP shares		(826	)		(977	)		(1,296	)		(442	)		(511	)
Total Wells Fargo stockholders’ equity		123,658			119,772			116,142			111,786			122,150
Noncontrolling interests		1,507			1,626			2,012			2,573			6,774
Total equity		125,165			121,398			118,154			114,359			128,924
Total liabilities and equity	$	1,220,784			1,225,862			1,223,630			1,243,646			1,228,625

- 28 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2010			2010			2010			2009			2009
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	70,839			67,712			40,833			46,031			16,356
Trading assets		29,080			28,760			27,911			23,179			20,518
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,673			2,094			2,278			2,381			2,545
Securities of U.S. states and political subdivisions		17,220			16,192			13,696			13,574			12,818
Mortgage-backed securities:
Federal agencies		70,486			72,876			79,730			85,063			94,457
Residential and commercial		33,425			33,197			32,768			43,243			43,214
Total mortgage-backed securities		103,911			106,073			112,498			128,306			137,671
Other debt securities (1)		35,533			33,270			32,346			33,710			33,294
Total debt securities available for sale (1)		158,337			157,629			160,818			177,971			186,328
Mortgages held for sale (2)		38,073			32,196			31,368			34,750			40,604
Loans held for sale (2)		3,223			4,386			6,406			5,104			4,975
Loans:
Commercial and commercial real estate:
Commercial		146,139			147,965			156,466			164,050			175,642
Real estate mortgage		99,082			97,731			97,967			97,296			95,612
Real estate construction		29,469			33,060			35,852			38,364			40,487
Lease financing		13,156			13,622			14,008			14,107			14,360
Total commercial and commercial real estate		287,846			292,378			304,293			313,817			326,101
Consumer:
Real estate 1-4 family first mortgage		231,172			237,500			245,024			232,273			235,051
Real estate 1-4 family junior lien mortgage		100,257			102,678			105,640			103,584			105,779
Credit card		22,048			22,239			23,345			23,717			23,448
Other revolving credit and installment		87,884			88,617			90,526			88,963			90,199
Total consumer		441,361			451,034			464,535			448,537			454,477
Foreign		30,276			29,048			28,561			30,086			29,613
Total loans (2)		759,483			772,460			797,389			792,440			810,191
Other		5,912			6,082			6,069			6,147			6,088
Total earning assets	$	1,064,947			1,069,225			1,070,794			1,085,622			1,085,060
Funding sources
Deposits:
Interest-bearing checking	$	59,677			61,212			62,021			61,229			59,467
Market rate and other savings		419,996			412,062			403,945			389,905			369,120
Savings certificates		85,044			89,773			94,763			109,306			129,698
Other time deposits		14,400			14,936			15,878			16,501			18,248
Deposits in foreign offices		52,061			57,461			55,434			59,870			56,820
Total interest-bearing deposits		631,178			635,444			632,041			636,811			633,353
Short-term borrowings		46,468			45,082			45,081			32,757			39,828
Long-term debt		177,077			195,440			209,008			210,707			222,580
Other liabilities		6,764			6,737			5,664			5,587			5,620
Total interest-bearing liabilities		861,487			882,703			891,794			885,862			901,381
Portion of noninterest-bearing funding sources		203,460			186,522			179,000			199,760			183,679
Total funding sources	$	1,064,947			1,069,225			1,070,794			1,085,622			1,085,060
Noninterest-earning assets
Cash and due from banks	$	17,000			17,415			18,049			19,216			18,084
Goodwill		24,829			24,820			24,816			24,093			24,435
Other		113,592			112,720			112,461			110,525			118,472
Total noninterest-earning assets	$	155,421			154,955			155,326			153,834			160,991
Noninterest-bearing funding sources
Deposits	$	184,837			176,908			172,039			179,204			172,588
Other liabilities		50,013			43,713			44,739			45,058			47,646
Total equity		124,031			120,856			117,548			129,332			124,436
Noninterest-bearing funding sources used to fund earning assets		(203,460	)		(186,522	)		(179,000	)		(199,760	)		(183,679	)
Net noninterest-bearing funding sources	$	155,421			154,955			155,326			153,834			160,991
Total assets	$	1,220,368			1,224,180			1,226,120			1,239,456			1,246,051

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

- 29 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER LOANS

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2010		2010		2010		2009		2009
Commercial and commercial real estate:
Commercial	$	147,321		146,084		150,587		158,352		169,610
Real estate mortgage (1)		98,755		99,626		97,846		97,527		95,787
Real estate construction (1)		27,911		30,879		34,505		36,978		39,374
Lease financing		12,993		13,492		13,887		14,210		14,115
Total commercial and commercial real estate		286,980		290,081		296,825		307,067		318,886
Consumer:
Real estate 1-4 family first mortgage		228,081		233,812		240,528		229,536		232,622
Real estate 1-4 family junior lien mortgage		99,060		101,327		103,800		103,708		104,538
Credit card		21,890		22,086		22,525		24,003		23,597
Other revolving credit and installment		87,962		88,485		89,463		89,058		90,027
Total consumer		436,993		445,710		456,316		446,305		450,784
Foreign		29,691		30,474		28,289		29,398		30,282
Total loans (net of unearned income) (2)	$	753,664		766,265		781,430		782,770		799,952

(1)	Effective June 30, 2010, real estate construction outstanding balances and all other related data include certain commercial real estate secured loans acquired from Wachovia previously classified as real estate mortgage. Prior periods have been revised to conform with the current presentation.
(2)	Includes $43.8 billion, $46.5 billion, $49.5 billion, $51.7 billion and $54.3 billion of purchased credit-impaired (PCI) loans at September 30, June 30, and March 31, 2010, and December 31 and September 30, 2009, respectively. See table on page 31 for detail of PCI loans.

FIVE QUARTER NONACCRUAL LOANS AND OTHER NONPERFORMING ASSETS

	Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2010			2010		2010		2009		2009
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	4,103			3,843		4,273		4,397		4,540
Real estate mortgage		5,079			4,689		4,345		3,696		2,614
Real estate construction		3,198			3,429		3,327		3,313		2,953
Lease financing		138			163		185		171		157
Total commercial and commercial real estate		12,518			12,124		12,130		11,577		10,264
Consumer:
Real estate 1-4 family first mortgage		12,969			12,865		12,347		10,100		8,132
Real estate 1-4 family junior lien mortgage		2,380			2,391		2,355		2,263		1,985
Other revolving credit and installment		312			316		334		332		344
Total consumer		15,661			15,572		15,036		12,695		10,461
Foreign		126			115		135		146		144
Total nonaccrual loans (1)(2)		28,305			27,811		27,301		24,418		20,869
As a percentage of total loans		3.76	%		3.63		3.49		3.12		2.61
Foreclosed assets:
GNMA loans (3)	$	1,492			1,344		1,111		960		840
Other		4,635			3,650		2,970		2,199		1,687
Real estate and other nonaccrual investments (4)		141			131		118		62		55
Total nonaccrual loans and other nonperforming assets	$	34,573			32,936		31,500		27,639		23,451
As a percentage of total loans		4.59	%		4.30		4.03		3.53		2.93

(1)	Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(2)	Excludes loans acquired from Wachovia that are accounted for as PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(3)	Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
(4)	Includes real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if these assets were recorded as loans, and nonaccrual debt securities.

- 30 -

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING (EXCLUDING INSURED/GUARANTEED
GNMA AND SIMILAR LOANS) (1)

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2010		2010		2010		2009		2009
Commercial and commercial real estate:
Commercial	$	222		540		561		590		458
Real estate mortgage		463		654		947		1,014		646
Real estate construction		332		471		787		909		977
Total commercial and commercial real estate		1,017		1,665		2,295		2,513		2,081
Consumer:
Real estate 1-4 family first mortgage (2)		1,016		1,049		1,281		1,623		1,552
Real estate 1-4 family junior lien mortgage (2)		361		352		414		515		484
Credit card		560		610		719		795		683
Other revolving credit and installment		1,305		1,300		1,219		1,333		1,138
Total consumer		3,242		3,311		3,633		4,266		3,857
Foreign		27		21		29		73		76
Total	$	4,286		4,997		5,957		6,852		6,014

(1)

The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $13.0 billion, $15.1 billion, $16.8 billion, $16.1 billion, and $15.3 billion at September 30, June 30 and March 31, 2010, and December 31 and September 30, 2009, 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. See table on page 31 for detail of PCI loans.

(2)

Includes mortgage loans held for sale 90 days or more past due and still accruing.

- 31 -

Wells Fargo & Company and Subsidiaries

PURCHASED CREDIT-IMPAIRED (PCI) LOANS

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

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

In addition, subsequent to acquisition, we are required to periodically evaluate our estimate 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. Decreases in the expected cash flows will generally result in a charge to the provision for credit losses resulting in an increase to the allowance for loan losses. Increases in the expected cash flows will generally result in an increase in 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.

	September 30, 2010						December 31, 2009
			All						All
	PCI		other				PCI		other
(in millions)	loans		loans		Total		loans		loans		Total
Commercial and commercial real estate:
Commercial	$	987		146,334		147,321		1,911		156,441		158,352
Real estate mortgage		3,118		95,637		98,755		4,137		93,390		97,527
Real estate construction		3,549		24,362		27,911		5,207		31,771		36,978
Lease financing		-		12,993		12,993		-		14,210		14,210
Total commercial and commercial real estate		7,654		279,326		286,980		11,255		295,812		307,067
Consumer:
Real estate 1-4 family first mortgage		34,432		193,649		228,081		38,386		191,150		229,536
Real estate 1-4 family junior lien mortgage		262		98,798		99,060		331		103,377		103,708
Credit card		-		21,890		21,890		-		24,003		24,003
Other revolving credit and installment		-		87,962		87,962		-		89,058		89,058
Total consumer		34,694		402,299		436,993		38,717		407,588		446,305
Foreign		1,498		28,193		29,691		1,733		27,665		29,398
Total loans	$	43,846		709,818		753,664		51,705		731,065		782,770

- 32 -

Wells Fargo & Company and Subsidiaries
CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS

A nonaccretable difference was established in purchase accounting for PCI loans to absorb losses expected at that time on those loans. Amounts absorbed by the nonaccretable difference do not affect the income statement or the allowance for credit losses. Substantially all our commercial, 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 of loans 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 remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by this removal method is addressed by our quarterly cash flow evaluation process for each pool. For loans in pools that are resolved by payment in full, there is no release of the nonaccretable difference since there is no difference between the amount received at resolution and the contractual amount of the loan. The following table provides an analysis of changes in the nonaccretable difference related to principal that is not expected to be collected.

	Commercial,
	CRE and						Other
(in millions)	foreign			Pick-a-Pay			consumer			Total
Balance at December 31, 2008	$	10,410			26,485			4,069			40,964
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(330	)		-			-			(330	)
Loans resolved by sales to third parties (2)		(86	)		-			(85	)		(171	)
Reclassification to accretable yield for loans with improving cash flows (3)		(138	)		(27	)		(276	)		(441	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(4,853	)		(10,218	)		(2,086	)		(17,157	)
Balance at December 31, 2009		5,003			16,240			1,622			22,865
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(739	)		-			-			(739	)
Loans resolved by sales to third parties (2)		(151	)		-			-			(151	)
Reclassification to accretable yield for loans with improving cash flows (3)		(561	)		(2,356	)		(317	)		(3,234	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(1,478	)		(2,409	)		(325	)		(4,212	)
Balance at September 30, 2010	$	2,074			11,475			980			14,529
Balance at June 30, 2010	$	2,923			11,992			1,289			16,204
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(153	)		-			-			(153	)
Loans resolved by sales to third parties (2)		(49	)		-			-			(49	)
Reclassification to accretable yield for loans with improving cash flows (3)		(392	)		-			(247	)		(639	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(255	)		(517	)		(62	)		(834	)
Balance at September 30, 2010	$	2,074			11,475			980			14,529

(1)	Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations.
(2)	Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale.
(3)	Reclassification of nonaccretable difference for increased cash flow estimates to the accretable yield will result in increasing income and thus the rate of return realized. Amounts reclassified to accretable yield are expected to be probable of realization over the estimated remaining life of the loan.
(4)	Write-downs to net realizable value of PCI loans are charged to 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.

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Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS

The excess of cash flows expected to be collected over the initial fair value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated life 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 – These changes in expected cash flows are driven by updates to the credit outlook and actions taken with our borrowers. Expected benefits from loan modifications are included in the quarterly assessment of expected future cash flows.

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

(in millions)
Total, December 31, 2008 (refined)	$	10,447
Accretion		(2,606	)
Reclassification from nonaccretable difference for loans with improving cash flows		441
Changes in expected cash flows that do not affect nonaccretable difference (1)		6,277
Total, December 31, 2009		14,559
Accretion		(1,857	)
Reclassification from nonaccretable difference for loans with improving cash flows		3,234
Changes in expected cash flows that do not affect nonaccretable difference (1)		743
Total, September 30, 2010	$	16,679
Total, June 30, 2010	$	15,085
Accretion		(528	)
Reclassification from nonaccretable difference for loans with improving cash flows		639
Changes in expected cash flows that do not affect nonaccretable difference (1)		1,483
Total, September 30, 2010	$	16,679

(1) Represents changes in interest cash flows due to the impact of modifications incorporated into the quarterly assessment of expected future cash flows and/or changes in interest rates on variable rate PCI loans.

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.

	Commercial,
	CRE and					Other
(in millions)	foreign			Pick-a-Pay		consumer			Total
Balance at December 31, 2008	$	-			-		-			-
Provision for losses due to credit deterioration		850			-		3			853
Charge-offs		(520	)		-		-			(520	)
Balance at December 31, 2009		330			-		3			333
Provision for losses due to credit deterioration		715			-		35			750
Charge-offs		(683	)		-		(21	)		(704	)
Balance at September 30, 2010	$	362			-		17			379
Balance at June 30, 2010	$	206			-		19			225
Provision for losses due to credit deterioration		339			-		9			348
Charge-offs		(183	)		-		(11	)		(194	)
Balance at September 30, 2010	$	362			-		17			379

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Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)

	PCI loans										All other loans
								Ratio of
								carrying
	Unpaid		Current					value to			Unpaid		Current
	principal		LTV			Carrying		current			principal		LTV			Carrying
(in millions)	balance		ratio (2)			value (3)		value			balance		ratio (2)			value (3)
September 30, 2010
California	$	32,475		134	%	$	22,382		92	%	$	21,914		88	%	$	21,542
Florida		5,154		143			3,057		84			4,698		106			4,480
New Jersey		1,565		99			1,243		78			2,671		81			2,647
Texas		393		80			350		71			1,785		65			1,789
Washington		577		100			501		86			1,353		82			1,334
Other states		8,155		116			5,933		84			12,248		87			12,046
Total Pick-a-Pay loans	$	48,319				$	33,466				$	44,669				$	43,838
December 31, 2009
California	$	37,341		141	%	$	25,022		94	%	$	23,795		93	%	$	23,626
Florida		5,751		139			3,199		77			5,046		104			4,942
New Jersey		1,646		101			1,269		77			2,914		82			2,912
Texas		442		82			399		74			1,967		66			1,973
Washington		633		103			543		88			1,439		84			1,435
Other states		9,283		116			6,597		82			13,401		87			13,321
Total Pick-a-Pay loans	$	55,096				$	37,029				$	48,562				$	48,209

(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 2010. The December 31, 2009, table has been revised to conform to the 2010 presentation of top five states.
(2)	The current loan-to-value (LTV) ratio is calculated as the unpaid principal balance plus the unpaid principal balance of any equity lines of credit that share common collateral 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.
(3)	Carrying value, which does not reflect the allowance for loan losses, includes purchase accounting adjustments, which, for PCI loans, are 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.

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Wells Fargo & Company and Subsidiaries

HOME EQUITY PORTFOLIOS (1)

					% of loans
					two payments					Loss rate (annualized)
	Outstanding balances				or more past due					Quarter ended
	Sept. 30,		Dec. 31,		Sept. 30,			Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2010		2009		2010			2009		2010		2009
Core portfolio (2)
California	$	28,448		30,264		3.43	%		4.12		4.27		6.12
Florida		12,353		12,038		5.38			5.48		5.80		6.98
New Jersey		8,821		8,379		3.19			2.50		1.95		1.51
Virginia		5,804		5,855		2.23			1.91		1.66		1.13
Pennsylvania		5,558		5,051		2.30			2.03		1.24		1.81
Other		52,404		53,811		2.80			2.85		2.76		3.04
Total		113,388		115,398		3.22			3.35		3.28		3.90
Liquidating portfolio
California		2,705		3,205		6.96			8.78		14.77		17.94
Florida		347		408		7.95			9.45		13.29		19.53
Arizona		158		193		8.73			10.46		21.14		19.29
Texas		132		154		2.36			1.94		2.17		2.40
Minnesota		96		108		5.44			4.15		10.18		7.53
Other		3,824		4,361		4.29			5.06		7.23		7.33
Total		7,262		8,429		5.53			6.74		10.59		12.16
Total core and liquidating portfolios	$	120,650		123,827		3.36			3.58		3.73		4.48

(1)	Consists of real estate 1-4 family junior lien mortgages and lines of credit secured by real estate from all groups, excluding PCI loans.
(2)	Includes equity lines of credit and closed-end second liens associated with the Pick-a-Pay portfolio totaling $1.7 billion at September 30, 2010, and $1.8 billion at December 31, 2009.

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Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES

	Quarter ended Sept. 30,						Nine months ended Sept. 30,
(in millions)	2010			2009			2010			2009
Balance, beginning of period	$	25,085			23,530			25,031			21,711
Provision for credit losses		3,445			6,111			12,764			15,755
Adjustment for passage of time on certain impaired loans (1)		(67	)		-			(203	)		-
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(588	)		(986	)		(2,165	)		(2,337	)
Real estate mortgage		(236	)		(190	)		(881	)		(344	)
Real estate construction		(296	)		(279	)		(990	)		(649	)
Lease financing		(29	)		(88	)		(94	)		(173	)
Total commercial and commercial real estate		(1,149	)		(1,543	)		(4,130	)		(3,503	)
Consumer:
Real estate 1-4 family first mortgage		(1,164	)		(1,015	)		(3,701	)		(2,229	)
Real estate 1-4 family junior lien mortgage		(1,140	)		(1,340	)		(3,875	)		(3,428	)
Credit card		(556	)		(691	)		(1,891	)		(2,025	)
Other revolving credit and installment		(572	)		(860	)		(1,864	)		(2,562	)
Total consumer		(3,432	)		(3,906	)		(11,331	)		(10,244	)
Foreign		(49	)		(71	)		(148	)		(181	)
Total loan charge-offs		(4,630	)		(5,520	)		(15,609	)		(13,928	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		79			62			317			153
Real estate mortgage		18			6			32			22
Real estate construction		20			5			82			11
Lease financing		6			6			15			13
Total commercial and commercial real estate		123			79			446			199
Consumer:
Real estate 1-4 family first mortgage		130			49			347			114
Real estate 1-4 family junior lien mortgage		55			49			157			119
Credit card		52			43			165			131
Other revolving credit and installment		165			178			549			580
Total consumer		402			319			1,218			944
Foreign		10			11			31			30
Total loan recoveries		535			409			1,695			1,173
Net loan charge-offs (2)		(4,095	)		(5,111	)		(13,914	)		(12,755	)
Allowances related to business combinations/other (3)		4			(2	)		694			(183	)
Balance, end of period	$	24,372			24,528			24,372			24,528
Components:
Allowance for loan losses	$	23,939			24,028			23,939			24,028
Reserve for unfunded credit commitments		433			500			433			500
Allowance for credit losses	$	24,372			24,528			24,372			24,528
Net loan charge-offs (annualized) as a percentage of average total loans (2)		2.14	%		2.50			2.40			2.05
Allowance for loan losses as a percentage of total loans (4)		3.18			3.00			3.18			3.00
Allowance for credit losses as a percentage of total loans (4)		3.23			3.07			3.23			3.07

(1)	Certain impaired loans have a valuation allowance determined by discounting expected cash flows at the respective loan’s effective interest rate. Accordingly, the valuation allowance for these impaired loans reduces with the passage of time and that reduction is recognized as interest income.
(2)	For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.
(3)	Includes $693 million related to the adoption of consolidation accounting guidance on January 1, 2010.
(4)	The allowance for credit losses includes $379 million and $233 million at September 30, 2010 and 2009, 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.

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

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2010			2010			2010			2009			2009
Balance, beginning of quarter	$	25,085			25,656			25,031			24,528			23,530
Provision for credit losses		3,445			3,989			5,330			5,913			6,111
Adjustment for passage of time on certain impaired loans (1)		(67	)		(62	)		(74	)		-			-
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(588	)		(810	)		(767	)		(1,028	)		(986	)
Real estate mortgage		(236	)		(364	)		(281	)		(326	)		(190	)
Real estate construction		(296	)		(289	)		(405	)		(414	)		(279	)
Lease financing		(29	)		(31	)		(34	)		(56	)		(88	)
Total commercial and commercial real estate		(1,149	)		(1,494	)		(1,487	)		(1,824	)		(1,543	)
Consumer:
Real estate 1-4 family first mortgage		(1,164	)		(1,140	)		(1,397	)		(1,089	)		(1,015	)
Real estate 1-4 family junior lien mortgage		(1,140	)		(1,239	)		(1,496	)		(1,384	)		(1,340	)
Credit card		(556	)		(639	)		(696	)		(683	)		(691	)
Other revolving credit and installment		(572	)		(542	)		(750	)		(861	)		(860	)
Total consumer		(3,432	)		(3,560	)		(4,339	)		(4,017	)		(3,906	)
Foreign		(49	)		(52	)		(47	)		(56	)		(71	)
Total loan charge-offs		(4,630	)		(5,106	)		(5,873	)		(5,897	)		(5,520	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		79			121			117			101			62
Real estate mortgage		18			4			10			11			6
Real estate construction		20			51			11			5			5
Lease financing		6			4			5			7			6
Total commercial and commercial real estate		123			180			143			124			79
Consumer:
Real estate 1-4 family first mortgage		130			131			86			71			49
Real estate 1-4 family junior lien mortgage		55			55			47			55			49
Credit card		52			60			53			49			43
Other revolving credit and installment		165			181			203			175			178
Total consumer		402			427			389			350			319
Foreign		10			10			11			10			11
Total loan recoveries		535			617			543			484			409
Net loan charge-offs		(4,095	)		(4,489	)		(5,330	)		(5,413	)		(5,111	)
Allowances related to business combinations/other		4			(9	)		699			3			(2	)
Balance, end of quarter	$	24,372			25,085			25,656			25,031			24,528
Components:
Allowance for loan losses	$	23,939			24,584			25,123			24,516			24,028
Reserve for unfunded credit commitments		433			501			533			515			500
Allowance for credit losses	$	24,372			25,085			25,656			25,031			24,528
Net loan charge-offs (annualized) as a percentage of average total loans		2.14	%		2.33			2.71			2.71			2.50
Allowance for loan losses as a percentage of:
Total loans		3.18			3.21			3.22			3.13			3.00
Nonaccrual loans		85			88			92			100			115
Nonaccrual loans and other nonperforming assets		69			75			80			89			102
Allowance for credit losses as a percentage of:
Total loans		3.23			3.27			3.28			3.20			3.07
Nonaccrual loans		86			90			94			103			118
Nonaccrual loans and other nonperforming assets		70			76			81			91			105

(1) Certain impaired loans have a valuation allowance determined by discounting expected cash flows at the respective loan’s effective interest rate. Accordingly, the valuation allowance for these impaired loans reduces with the passage of time and that reduction is recognized as interest income.

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Wells Fargo & Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

	Nine months ended Sept. 30,
(in millions)	2010			2009
Balance, beginning of period (1)	$	114,359			102,316
Cumulative effect from change in accounting for VIEs (2)		183			-
Cumulative effect from change in accounting for embedded credit derivatives (3)		(28	)		-
Wells Fargo net income		8,948			9,452
Wells Fargo other comprehensive income (loss), net of tax, related to:
Translation adjustments		16			63
Investment securities (4)		2,202			10,566
Derivative instruments and hedging activities		227			(189	)
Defined benefit pension plans		48			570
Common stock issued		1,050			9,590
Common stock repurchased		(71	)		(80	)
Preferred stock released to ESOP		645			41
Common stock warrants repurchased		(544	)		-
Common stock dividends		(783	)		(1,891	)
Preferred stock dividends, accretion and other		(548	)		(1,558	)
Noncontrolling interests and other, net		(539	)		44
Balance, end of period	$	125,165			128,924

(1)	The impact of adopting new accounting provisions for recording other-than-temporary impairment on debt securities as prescribed in ASC 320-10, Investments – Debt and Equity Securities (FASB Staff Position (FSP) FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments), was to increase the 2009 beginning balance of retained earnings and reduce the 2009 beginning balance of other comprehensive income by $85 million ($53 million after tax).
(2)	Effective January 1, 2010, we adopted changes in consolidation accounting pursuant to amendments by ASU 2009-17 to ASC 810 (FAS 167) and, accordingly, consolidated certain VIEs that were not included in our consolidated financial statements at December 31, 2009. We recorded a $183 million increase to beginning retained earnings as a cumulative effect adjustment.
(3)	Effective July 1, 2010, we adopted changes in accounting for embedded credit derivatives pursuant to ASU 2010-11, which provides guidance clarifying the accounting for embedded credit derivative features in certain financial instruments. We recorded a $28 million decrease to beginning retained earnings as a cumulative effect adjustment.
(4)	On March 31, 2009, we early adopted new fair value measurement provisions contained in ASC 820-10, Fair Value Measurements and Disclosures (FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly). This guidance addresses determining fair values for securities in circumstances where the market for such securities is illiquid and transactions involve distressed sales. In such circumstances, ASC 820-10 permits use of other inputs in estimating fair value that may include pricing models.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER TIER 1 COMMON EQUITY (1)

		Quarter ended
		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in billions)		2010			2010			2010			2009			2009
Total equity		$	125.2			121.4			118.1			114.4			128.9
Less:   Noncontrolling interests			(1.5	)		(1.6	)		(2.0	)		(2.6	)		(6.8	)
Total Wells Fargo stockholders’ equity			123.7			119.8			116.1			111.8			122.1
Less:   Preferred equity			(8.1	)		(8.1	)		(8.1	)		(8.1	)		(31.1	)
Goodwill and intangible assets (other than MSRs)			(36.1	)		(36.7	)		(37.2	)		(37.7	)		(37.5	)
Applicable deferred taxes			4.7			5.0			5.2			5.3			5.3
Deferred tax asset limitation			-			-			-			(1.0	)		-
MSRs over specified limitations			(0.9	)		(1.0	)		(1.5	)		(1.6	)		(1.5	)
Cumulative other comprehensive income			(5.4	)		(4.8	)		(4.0	)		(3.0	)		(4.0	)
Other			(0.3	)		(0.3	)		(0.3	)		(0.2	)		(0.3	)
Tier 1 common equity	(A)	$	77.6			73.9			70.2			65.5			53.0
Total risk-weighted assets (2)	(B)	$	968.6			970.8			990.1			1,013.6			1,023.8
Tier 1 common equity to total risk-weighted assets	(A)/(B)		8.01	%		7.61			7.09			6.46			5.18

(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. Tier 1 common equity includes total Wells Fargo stockholders’ equity, less preferred equity, goodwill and intangible assets (excluding MSRs), net of related deferred taxes, adjusted for specified Tier 1 regulatory capital limitations covering deferred taxes, MSRs, and cumulative other comprehensive income. 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, 2010, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $806.2 billion and derivative and off-balance sheet risk-weighted assets of $162.4 billion.

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Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS (1)

	Community				Wholesale				Wealth, Brokerage											Consolidated
(income/expense in millions,	Banking				Banking				and Retirement					Other (2)						Company
average balances in billions)	2010		2009		2010		2009		2010		2009			2010			2009			2010		2009
Quarter ended September 30,
Net interest income (3)	$	7,864		8,841		2,881		2,535		683		580			(330	)		(272	)		11,098		11,684
Provision for credit losses		3,165		4,635		270		1,368		77		233			(67	)		(125	)		3,445		6,111
Noninterest income		5,723		6,709		2,367		2,399		2,229		2,188			(543	)		(514	)		9,776		10,782
Noninterest expense		7,356		7,034		2,696		2,647		2,420		2,333			(219	)		(330	)		12,253		11,684
Income (loss) before income tax expense (benefit)		3,066		3,881		2,282		919		415		202			(587	)		(331	)		5,176		4,671
Income tax expense (benefit)		991		1,089		826		322		157		69			(223	)		(125	)		1,751		1,355
Net income (loss) before noncontrolling interests		2,075		2,792		1,456		597		258		133			(364	)		(206	)		3,425		3,316
Less: Net income (loss) from noncontrolling interests		73		56		11		3		2		22			-			-			86		81
Net income (loss)	$	2,002		2,736		1,445		594		256		111			(364	)		(206	)		3,339		3,235
Average loans	$	527.0		553.2		222.5		247.0		42.6		45.4			(32.6	)		(35.4	)		759.5		810.2
Average assets		778.1		804.9		363.7		368.4		138.2		129.8			(59.6	)		(57.0	)		1,220.4		1,246.1
Average core deposits		535.7		550.2		172.2		146.8		120.7		116.3			(56.6	)		(54.0	)		772.0		759.3
Nine months ended September 30,
Net interest income (3)	$	24,284		26,461		8,359		7,338		2,031		1,858			(980	)		(833	)		33,694		34,824
Provision for credit losses		11,052		12,958		1,695		2,649		221		367			(204	)		(219	)		12,764		15,755
Noninterest income		17,092		18,721		7,867		7,724		6,658		6,253			(1,595	)		(1,532	)		30,022		31,166
Noninterest expense		22,297		22,366		8,196		7,982		7,160		6,868			(537	)		(1,017	)		37,116		36,199
Income (loss) before income tax expense (benefit)		8,027		9,858		6,335		4,431		1,308		876			(1,834	)		(1,129	)		13,836		14,036
Income tax expense (benefit)		2,601		2,895		2,267		1,582		495		334			(697	)		(429	)		4,666		4,382
Net income (loss) before noncontrolling interests		5,426		6,963		4,068		2,849		813		542			(1,137	)		(700	)		9,170		9,654
Less: Net income (loss) from noncontrolling interests		203		190		14		15		5		(3	)		-			-			222		202
Net income (loss)	$	5,223		6,773		4,054		2,834		808		545			(1,137	)		(700	)		8,948		9,452
Average loans	$	540.3		562.2		226.0		261.1		43.0		46.0			(33.0	)		(36.2	)		776.3		833.1
Average assets		780.4		813.2		362.5		384.7		139.0		124.7			(58.4	)		(52.5	)		1,223.5		1,270.1
Average core deposits		533.7		556.9		164.9		141.3		121.1		110.9			(55.4	)		(49.4	)		764.3		759.7

(1)	The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. In first quarter 2010, we conformed certain funding and allocation methodologies of legacy Wachovia to those of Wells Fargo; in addition, amounts remaining in “Other” related to integration expense were revised to reflect only integration expense related to the Wachovia merger. Prior periods have been revised to reflect both 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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(income/expense in millions, average balances in billions)	2010			2010			2010			2009			2009
COMMUNITY BANKING
Net interest income (2)	$	7,864			8,113			8,307			8,537			8,841
Provision for credit losses		3,165			3,357			4,530			4,952			4,635
Noninterest income		5,723			5,614			5,755			7,043			6,709
Noninterest expense		7,356			7,711			7,230			7,676			7,034
Income before income tax expense		3,066			2,659			2,302			2,952			3,881
Income tax expense		991			811			799			605			1,089
Net income before noncontrolling interests		2,075			1,848			1,503			2,347			2,792
Less: Net income from noncontrolling interests		73			82			48			150			56
Segment net income	$	2,002			1,766			1,455			2,197			2,736
Average loans	$	527.0			539.1			555.2			543.8			553.2
Average assets		778.1			778.4			784.9			800.8			804.9
Average core deposits		535.7			533.4			532.2			542.8			550.2
WHOLESALE BANKING
Net interest income (2)	$	2,881			2,978			2,500			2,681			2,535
Provision for credit losses		270			626			799			955			1,368
Noninterest income		2,367			2,675			2,825			2,574			2,399
Noninterest expense		2,696			2,840			2,660			2,703			2,647
Income before income tax expense		2,282			2,187			1,866			1,597			919
Income tax expense		826			775			666			578			322
Net income before noncontrolling interests		1,456			1,412			1,200			1,019			597
Less: Net income from noncontrolling interests		11			-			3			11			3
Segment net income	$	1,445			1,412			1,197			1,008			594
Average loans	$	222.5			223.4			232.2			238.5			247.0
Average assets		363.7			362.4			361.4			362.5			368.4
Average core deposits		172.2			161.5			160.9			162.4			146.8
WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	683			684			664			549			580
Provision for credit losses		77			81			63			93			233
Noninterest income		2,229			2,183			2,246			2,105			2,188
Noninterest expense		2,420			2,350			2,390			2,558			2,333
Income before income tax expense (benefit)		415			436			457			3			202
Income tax expense (benefit)		157			165			173			(10	)		69
Net income before noncontrolling interests		258			271			284			13			133
Less: Net income from noncontrolling interests		2			1			2			29			22
Segment net income (loss)	$	256			270			282			(16	)		111
Average loans	$	42.6			42.6			43.8			44.8			45.4
Average assets		138.2			141.0			137.8			137.7			129.8
Average core deposits		120.7			121.5			121.1			124.1			116.3
OTHER (3)
Net interest income (2)	$	(330	)		(326	)		(324	)		(267	)		(272	)
Provision for credit losses		(67	)		(75	)		(62	)		(87	)		(125	)
Noninterest income		(543	)		(527	)		(525	)		(526	)		(514	)
Noninterest expense		(219	)		(155	)		(163	)		(116	)		(330	)
Loss before income tax benefit		(587	)		(623	)		(624	)		(590	)		(331	)
Income tax benefit		(223	)		(237	)		(237	)		(224	)		(125	)
Net loss before noncontrolling interests		(364	)		(386	)		(387	)		(366	)		(206	)
Less: Net income from noncontrolling interests		-			-			-			-			-
Other net loss	$	(364	)		(386	)		(387	)		(366	)		(206	)
Average loans	$	(32.6	)		(32.6	)		(33.8	)		(34.7	)		(35.4	)
Average assets		(59.6	)		(57.6	)		(58.0	)		(61.5	)		(57.0	)
Average core deposits		(56.6	)		(54.6	)		(55.0	)		(58.5	)		(54.0	)
CONSOLIDATED COMPANY
Net interest income (2)	$	11,098			11,449			11,147			11,500			11,684
Provision for credit losses		3,445			3,989			5,330			5,913			6,111
Noninterest income		9,776			9,945			10,301			11,196			10,782
Noninterest expense		12,253			12,746			12,117			12,821			11,684
Income before income tax expense		5,176			4,659			4,001			3,962			4,671
Income tax expense		1,751			1,514			1,401			949			1,355
Net income before noncontrolling interests		3,425			3,145			2,600			3,013			3,316
Less: Net income from noncontrolling interests		86			83			53			190			81
Wells Fargo net income	$	3,339			3,062			2,547			2,823			3,235
Average loans	$	759.5			772.5			797.4			792.4			810.2
Average assets		1,220.4			1,224.2			1,226.1			1,239.5			1,246.1
Average core deposits		772.0			761.8			759.2			770.8			759.3

(1)	The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. In first quarter 2010, we conformed certain funding and allocation methodologies of legacy Wachovia to those of Wells Fargo; in addition, amounts remaining in “Other” related to integration expense were revised to reflect only integration expense related to the Wachovia merger. Prior periods have been revised to reflect both changes.
(2)	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.
(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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2010			2010			2010			2009			2009
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	13,251			15,544			16,004			14,500			15,690
Adjustments from adoption of consolidation accounting guidance		-			-			(118	)		-			-
Servicing from securitizations or asset transfers		1,043			943			1,054			1,181			1,517
Net additions		1,043			943			936			1,181			1,517
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		(1,132	)		(2,661	)		(777	)		1,052			(2,078	)
Other changes in fair value (2)		(676	)		(575	)		(619	)		(729	)		(629	)
Total changes in fair value		(1,808	)		(3,236	)		(1,396	)		323			(2,707	)
Fair value, end of quarter	$	12,486			13,251			15,544			16,004			14,500

(1)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.
(2)	Represents changes due to collection/realization of expected cash flows over time.

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2010			2010			2010			2009			2009
Amortized MSRs:
Balance, beginning of quarter	$	1,037			1,069			1,119			1,162			1,205
Adjustments from adoption of consolidation accounting guidance		-			-			(5	)		-			-
Purchases		14			7			1			1			-
Servicing from securitizations or asset transfers		18			17			11			18			21
Amortization		(56	)		(56	)		(57	)		(62	)		(64	)
Balance, end of quarter (1)	$	1,013			1,037			1,069			1,119			1,162
Fair value of amortized MSRs:
Beginning of quarter	$	1,307			1,283			1,261			1,277			1,311
End of quarter		1,349			1,307			1,283			1,261			1,277

(1) There was no valuation allowance recorded for the periods presented.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

	Quarter ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(in millions)	2010			2010			2010			2009			2009
Servicing income, net:
Servicing fees (1)	$	1,192			1,223			1,053			1,059			1,085
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)		(1,132	)		(2,661	)		(777	)		1,052			(2,078	)
Other changes in fair value (3)		(676	)		(575	)		(619	)		(729	)		(629	)
Total changes in fair value of residential MSRs		(1,808	)		(3,236	)		(1,396	)		323			(2,707	)
Amortization		(56	)		(56	)		(57	)		(62	)		(64	)
Net derivative gains from economic hedges (4)		1,188			3,287			1,766			830			3,605
Total servicing income, net	$	516			1,218			1,366			2,150			1,919
Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	56			626			989			1,882			1,527

(1)	Includes contractually specified servicing fees, late charges and other ancillary revenues. 2009 amounts have been revised to conform to current presentation.
(2)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.
(3)	Represents changes due to collection/realization of expected cash flows over time.
(4)	Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs.

	Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in billions)	2010			2010		2010		2009		2009
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,433			1,437		1,417		1,422		1,419
Owned loans serviced		365			365		371		364		365
Subservicing		10			10		10		10		11
Total residential servicing		1,808			1,812		1,798		1,796		1,795
Commercial mortgage servicing:
Serviced for others		439			441		449		454		458
Owned loans serviced		99			100		105		105		103
Subservicing		10			10		10		10		10
Total commercial servicing		548			551		564		569		571
Total managed servicing portfolio	$	2,356			2,363		2,362		2,365		2,366
Total serviced for others	$	1,872			1,878		1,866		1,876		1,877
Ratio of MSRs to related loans serviced for others		0.72	%		0.76		0.89		0.91		0.83
Weighted-average note rate (mortgage loans serviced for others)		5.46			5.53		5.59		5.66		5.72

(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
	Sept. 30,			June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in billions)	2010			2010		2010		2009		2009
Application data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	194			143		125		144		123
Refinances as a percentage of applications		80	%		58		61		72		62
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	101			68		59		57		62
Residential Real Estate Originations:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	53			44		43		51		50
Correspondent/Wholesale		47			36		32		42		45
Other (1)		1			1		1		1		1
Total quarter-to-date	$	101			81		76		94		96
Total year-to-date	$	258			157		76		420		326

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

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Wells Fargo & Company and Subsidiaries

CHANGES IN LIABILITY FOR MORTGAGE LOAN REPURCHASE LOSSES

										Nine months
	Quarter ended									ended			Year ended
	Sept. 30,			June 30,			Mar. 31,			Sept. 30,			Dec. 31,
(in millions)	2010			2010			2010			2010			2009
Balance, beginning of period	$	1,375			1,263			1,033			1,033			620		(1)
Provision for repurchase losses:
Loan sales		29			36			44			109			302
Change in estimate - primarily due to credit deterioration		341			346			358			1,045			625
Total additions		370			382			402			1,154			927
Losses		(414	)		(270	)		(172	)		(856	)		(514	)
Balance, end of period	$	1,331			1,375			1,263			1,331			1,033

(1) Reflects purchase accounting refinements.

OUTSTANDING REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS

While original loan balance related to these demands is presented below, the establishment of the repurchase reserve 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.

	Government				Mortgage
	sponsored				insurance
($ in millions)	entities (1)		Private		rescissions (2)		Total
September 30, 2010
Number of loans		9,887		3,605		3,035		16,527
Original loan balance	$	2,212		882		748		3,842
June 30, 2010
Number of loans		12,536		3,160		2,979		18,675
Original loan balance	$	2,840		707		760		4,307
March 31, 2010
Number of loans		10,804		2,320		2,843		15,967
Original loan balance	$	2,499		519		737		3,755
December 31, 2009
Number of loans		8,354		2,929		2,965		14,248
Original loan balance	$	1,911		886		859		3,656

(1)

Includes repurchase demands of 2,263 and $437 million, 2,141 and $417 million, 1,824 and $372 million, and 1,536 and $322 million for September 30, June 30, and March 31, 2010, and December 31, 2009, respectively, received from investors on mortgage servicing rights acquired from other originators. We have the right of recourse against the seller for these repurchase demands and would only incur a loss on these demands for counterparty risk associated with the seller.

(2)

As part of our representations and warranties in our loan sales contracts, we represent that certain loans have mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer, the lack of insurance may result in a repurchase demand from an investor.

EX-99.2

Exhibit 99.2

3Q10 Quarterly Supplement October 20, 2010 (c) 2010 Wells Fargo & Company. All rights reserved.

Forward-looking statements and additional information Forward-looking statements: This Quarterly Supplement contains forward-looking statements about our future financial performance. These forward- looking statements include statements using words such as "believe," "expect," "anticipate," "estimate," "should," "may," "can," "will," "outlook," "appears" or similar expressions. Forward-looking statements in this Quarterly Supplement include, among others, statements about: expected or estimated future losses in our loan portfolios, including our belief that quarterly provision expense and quarterly total credit losses have peaked and the allowance for loan losses is expected to decline; expected or estimated loan loss reserve releases; mortgage repurchase exposure; exposure related to foreclosure practices; the future economic environment; reduction or mitigation of risk in our loan portfolios; potential sales of loan portfolios; future effects of loan modification programs; life-of-loan loss estimates; future recast risk in the Pick-a-Pay portfolio; the amount and timing of expected cost savings and integration expenses, as well as other benefits, relating to the Wachovia merger; and future Tier 1 common levels and the estimated impact on Wells Fargo's capital from Basel capital rules. Investors are urged to 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. For more information about factors that could cause actual results to differ materially from expectations, refer to pages 15-16 of Wells Fargo's press release announcing our third quarter results, as well as Wells Fargo's reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010, including the discussion under "Risk Factors" in each of those reports. Purchased credit-impaired loan portfolio: Loans that were acquired from Wachovia that were considered credit impaired were written down at acquisition date in purchase accounting to an amount estimated to be collectible and the related allowance for loan losses was not carried over to Wells Fargo's allowance. In addition, such purchased credit-impaired loans are not classified as nonaccrual or nonperforming, and are not included in loans that were contractually 90+ days past due and still accruing. Any losses on such loans are charged against the nonaccretable difference established in purchase accounting and are not reported as charge-offs (until such difference is fully utilized). As a result of accounting for purchased loans with evidence of credit deterioration, certain ratios of the combined company are not comparable to a portfolio that does not include purchased credit-impaired loans. In certain cases, the purchased credit-impaired loans may affect portfolio credit ratios and trends. Management believes that the presentation of information adjusted to exclude the purchased credit-impaired loans provides useful disclosure regarding the credit quality of the non-impaired loan portfolio. Accordingly, certain of the loan balances and credit ratios in this Quarterly Supplement have been adjusted to exclude the purchased credit-impaired loans. References in this Quarterly Supplement to impaired loans mean the purchased credit-impaired loans. Please see pages 31-33 of the press release for additional information regarding the purchased credit-impaired loans.

Table of contents 3Q10 Results 3Q10 Overview Page 3 Record earnings 4 Strong operating margins 5 Broad based earnings 6 Building the franchise - Wholesale Banking 7 Building the franchise - Community Banking 8 Regional bank sales and cross-sell metrics 9 Mortgage banking 10 Building the franchise - WBR 11 Continuing to supply credit to U.S. economy 12 Loans outstanding 13 Average core deposits 14 Noninterest expense 15 Wells Fargo & Wachovia merger already a big success 16 Credit quality continued to improve in 3Q10 17 Continued improvement in credit quality 18 Consumer delinquency trends 19 Nonaccrual loan inflows stabilizing 20 Foreclosed assets/REO outstandings 21 Allowance for credit losses 22 Pick-a-Pay continued to perform better than originally expected 23 Capital is strong and continued to grow internally 24 Basel I Basel III: Estimated effect of proposed guidelines 25 Overview of foreclosures and mortgage securitization 26 Wells Fargo has a high quality servicing portfolio 27 Lower delinquency and foreclosure rates than peers 28 Repurchase exposure is manageable 29 Repurchase exposure is manageable and reserve is adequate 30 Appendix Pages 31-56 Non-strategic loan portfolio risk reduction 32 Capital strength 33 PCI portfolios continued to perform better than originally expected 34 PCI loan portfolio update: Nonaccretable difference 35 PCI accretable yield 36 Commercial, CRE and Foreign PCI portfolio accretable yield 37 Pick-a-Pay PCI portfolio accretable yield 38 3Q10 Credit quality highlights 39 Nonperforming assets 40 Commercial nonaccrual loans 41 Consumer real estate nonaccrual loans 42 Commercial real estate (CRE) loan portfolio 43 CRE loan portfolio by business group 44 Wholesale Banking CRE loan portfolio 45 Pick-a-Pay mortgage portfolio 46 Pick-a-Pay portfolio available nonaccretable diff. 47 Pick-a-Pay credit highlights 48 Pick-a-Pay: Current to 30+ DPD roll rates 49 Pick-a-Pay nonaccrual loan composition 50 Real estate 1-4 family first mortgage portfolio 51 Home equity portfolio 52 Credit card portfolio 53 Auto portfolio 54 Tier 1 common equity reconciliation 55 Return on average tangible common equity 56

3Q10 Overview Record earnings - $3.34 billion net income, up 9% Building and streamlining the franchise - revenue growth in most businesses, expenses down Wachovia merger already proving to be financial success - better credit experience, abundant revenue synergies, expense savings on track Continued improvement in credit quality - net charge-offs down 9% in quarter, 24% decline from peak Wells Fargo's balance sheet stronger than ever - Tier 1 Common = 8% (1), expect to be above 7% on proposed Basel III basis within next few quarters We remain confident in our foreclosure and mortgage securitization policies, practices and controls and adequacy of repurchase reserve (1) Preliminary. See table on page 55 for more information on Tier 1 common equity. Percent changes from 2Q10.

Record earnings (1) Included $1.9 billion upon redemption of TARP preferred stock in 4Q09. (2) Approximate quarterly impact of changes to Regulation E and related overdraft policy changes. (3) Represents nonaccretable release. (4) Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

Strong operating margins (1) See table on page 56 for more information on tangible common equity.

Broad-based earnings (1): Each business segment contributed to earnings ($ in millions) 3Q10 2Q10 NIAT ROA Community Banking +13% 1.02% Wholesale Banking +2% 1.58% Wealth, Brokerage & Retirement -5% 0.73% Community Banking WBR Wholesale Banking Community Banking WBR Wholesale Banking + 7% (1) Segment net income after-tax excludes other net losses of $364 million in 3Q10 and $386 million in 2Q10, which includes Wachovia integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage & Retirement relating primarily to wealth management customers serviced, and products sold, in the stores. Total $3,448 Total $3,703

Building the franchise - Wholesale Banking Double digit linked quarter annualized (LQA) revenue growth in customer flow trading, commercial real estate, commercial mortgage servicing and asset-backed finance PCI loan resolution income down $307 million from 2Q10; seasonal decline in insurance revenue (offset in expenses) Lending activity picking up New CRE loan commitments up 44% LQ Period-end loans increased in Commercial Banking, CRE, Asset-backed finance and Capital Finance Average core deposits up 17% YoY, up 26% LQA Improving credit quality Charge-offs down 29% from 2Q10 Transfers to workout down Revenue ($ in millions) Net Income ($ in millions)

Building the franchise - Community Banking Core product solutions (1) up 14% YoY Store-based small business solutions (1) up 25% YoY Continued strong growth in checking accounts, consumer up a net 7.3% YoY, small business up a net 5.0% YoY Continued loan growth in core auto loans (up 9% LQA); private student lending (up 29% from 3Q09) and SBA lending (up 3% LQA) Extended $10.5 billion in new small business loans through September 30, 2010, including $3.9 billion in 3Q10; new loan volume increased 17% from 3Q09 Continued improvement in credit quality; charge-offs down 5%, stable early indicators Continued to reinvest in the business Revenue ($ in millions) Net Income ($ in millions) (1) Legacy Wells Fargo, includes converted Wachovia stores in legacy Wells Fargo footprint.

Regional bank sales and cross-sell metrics Legacy Wells Fargo core product solutions (2) Legacy Wells Fargo Retail Bank cross-sell per household (in millions) Strong 3Q10 YoY consumer checking account growth Combined WFC up 7.3% California up 8.3% New Jersey up 11.2% Florida up 9.0% Wachovia Retail Bank cross-sell per household (1) (1) Cross-sell for Wachovia for 4Q09 and 1Q10 has been changed from previously reported results, for consistency purposes, to align converted markets into the original legacy company. (2) Includes converted Wachovia stores in legacy Wells Fargo footprint.

Mortgage banking 3Q10 originations of $101 billion, up 25% from 2Q10 and 5% YoY 2nd highest application quarter ever, $194 billion new applications (80% refi) Application pipeline up 49% to $101 billion at quarter-end suggesting higher 4Q10 originations Servicing valuation = 72 bps, one of the lowest in Wells Fargo's history Hedging income down from prior quarters, greater use of natural business hedge 6.48% 4.35% 5.76% (1) Mortgage loans serviced for others. Freddie Mac monthly average commitment rates, January 2008 to September 2010. Rate as of September 30, 2010 was 4.32%.

Revenue up 2% from 2Q10 driven by improved equity market performance Client assets up 5% from 2Q10 Managed account assets up 10% from 2Q10 Loan balances flat from 2Q10 for first time since merger and up slightly in September Cross-sell of 9.76 in 3Q10 up from 9.72 in 2Q10 and 9.45 in 3Q09 Building the franchise - Wealth, Brokerage & Retirement Revenue ($ in millions) Net Income ($ in millions) (1) WBR's 4Q09 net loss included ARS loss reserves. (1) Client Assets ($ in billions)

Continuing to supply credit to U.S. economy Domestic Lending Commitments & Origination Activity

Loans outstanding Continued to successfully work down non- strategic portfolios (liquidating home equity, indirect auto, debt consolidation, Pick-a-Pay and Commercial /CRE PCI loans) 3Q10 loan growth in: Auto Dealer Services WBR consumer loans Wholesale Commercial Real Estate Capital Finance (Asset-based lending) Asset-backed finance Wholesale Commercial Banking Private student lending SBA lending Period-end balances. (1) Please see page 32 for additional information regarding the non-strategic portfolio, which is composed of the Pick-a-Pay, liquidating home equity, legacy WFF indirect auto, legacy WFF debt consolidation and Commercial and Commercial Real Estate PCI loan portfolios. (2) FAS 167 addresses accounting for variable interest entities and is now incorporated into Accounting Standards Codification topic 810, Consolidation. 800.0 782.8 781.4 766.3 (1) 753.7 821.6 (2) ($ in billions)

Average core deposits (1) Strong broad-based deposit performance from 3Q09 Regional banking consumer checking accounts up 7.3% Regional banking business checking accounts up 5.0% Wholesale core deposit balances up 17.3% WBR core deposit balances up 3.8% Core checking/savings deposit growth remained strong and accelerated in 3Q10, up 9% LQA; period-end balances up 23% since Wachovia merger Lower-rate checking and savings deposits account for 89% of core deposits for 3Q10, up from 83% for 3Q09; core deposits = 102% of loans $21 billion of Wachovia's higher rate CDs matured since 3Q09 with better-than- expected retention (1) Core deposits are noninterest-bearing deposits, interest-bearing checking, certain savings certificates, market rate and other savings, and certain foreign deposits (Eurodollar sweep balances). ($ in billions) 761.8 759.2 770.8 759.3 772.0 765.7 753.9

Noninterest expense 2Q10 included higher operating losses of $397 million and restructuring costs for Wells Fargo Financial of $137 million We continued to invest in our businesses for long-term growth in 3Q10 Opened 13 banking stores Regional Banking platform banker FTEs in the East up more than 1,250, or 14% since 4Q09 Integration/merger costs expected to be approximately $6 billion; 85% of targeted consolidated savings realized in expense run-rate $476 million integration expense in 3Q10 Converted 363 Wachovia stores in Texas, Kansas, Alabama, Mississippi and Tennessee Integration/merger efficiencies include: Staff group consolidation largely complete Closed 229 banking stores in overlapping markets in states converted to date System conversions already completed include: Mortgage - Business direct Credit card - Home equity loans Trust - Personal credit management Mutual funds ($ in millions) 12,253 11,684 12,746

Wells Fargo and Wachovia merger already a big success Abundant revenue synergies Abundant revenue synergies Abundant revenue synergies Community Bank Wholesale Bank WBR Wachovia retail cross-sell 4.65 in 3Q09 to 4.91 in 3Q10 Used car loan market share 4.75% in 1Q09 to 6.84% in 3Q10 Private student lending originations up 50% YTD in Wachovia footprint Investment banking revenue from commercial customers up 21% YTD Cross-sell of Foreign exchange product up over 25% from prior year in East Coast markets Government and Institutional cross-sell revenue up 58% YTD Cross-sell 9.37 in 1Q09 to 9.76 in 3Q10 Managed account assets up 55% from 1Q09 Core deposits up 17% from 1Q09 Loan originations by FAs up 33% YTD Credit quality better than expected $22.9 billion utilization of nonaccretable difference (1) vs. $40.9 billion initial purchase accounting write-down Remaining PCI loans carried at 64% of UPB Life-to-date net performance = $3.5 billion (See page 34) Reduction of non-strategic loans (2) = $32.3 billion since 2Q09 Expense savings on track On track for $5.0 billion annual savings; 85% realized Integration cost expected to be approximately $6 billion vs. $7.9 billion original estimate Year to date though September 30, 2010. Use of nonaccretable difference for losses from loan resolutions and write-downs as well as additional provision. Please see page 32 for additional information regarding the non-strategic portfolio, which is composed of the Pick-a-Pay, liquidating home equity, legacy WFF indirect auto, legacy WFF debt consolidation and Commercial and Commercial Real Estate PCI loan portfolios.

UPB used for nonaccretable coverage determination excludes $21 billion for PCI loans that have had their nonaccretable difference charge for expected loss. Credit quality continued to improve in 3Q10 Net charge-offs continued to decline Down 9% linked quarter Down $1.3 billion, or 24%, from 4Q09 peak Early indicators continued to improve / stabilize Company-wide reductions in transfers to workout Wholesale Banking commercial loans transferred to workout status down 40% from 2009 monthly transfer average Early stage delinquencies relatively stable 30+ DPD improvement in Pick-a-Pay, credit card, home equity and personal credit management PCI portfolio performed better than originally expected Released $202 million of commercial nonaccretable difference into income in 3Q10 and reclassified $639 million nonaccretable difference Reserve coverage $24.4 billion allowance for credit losses (3.23% of total loans and 1.5x annualized 3Q10 charge-offs) plus $14.5 billion in nonaccretable difference (30.3% UPB (1) for PCI loans that have not had a UPB charge-off) Currently expect additional releases in coming quarters absent significant deterioration in the economy

Continued improvement in credit quality Commercial and commercial real estate losses declined $288 million from 2Q10, down 22% Commercial losses down $180 million, or 26%, reflected lower problem loan inflows and lower portfolio loss content CRE losses down $104 million, or 17%, on lower severities Loss rates remain relatively low in Commercial (138 bps) and Commercial Real Estate (152 bps) Consumer losses declined $103 million from 2Q10, down 3% Junior lien down $99 million, or 8%, reflected previous quarter's delinquency improvements Credit cards down $75 million, or 13%, reflected previous risk mitigation efforts Other revolving credit and installment up $46 million, or 13%, reflecting seasonality in the auto portfolio First lien mortgage up $25 million, or 2% Net Charge-offs ($ in millions)

Delinquency trends stabilizing in major consumer loan categories PCI adjustment on the Wachovia portfolio

Nonaccrual loans stabilizing Numbers may not add due to rounding. Please see pages 41-42 for additional information on nonaccrual inflows.

Foreclosed assets/REO outstandings Total foreclosed assets increased $1.1 billion in the quarter reflecting: $509 million shift from PCI loans to REO ($103 million commercial and commercial real estate and $406 million consumer, largely Pick-a-Pay) $239 million increase in non-impaired commercial on transfers from workout $237 million from non-impaired consumer REO $148 million from government insured loans

Allowance for credit losses Reserve release (2) = $650 million in 3Q10 Currently expect additional releases in coming quarters absent significant deterioration in the economy Allowance for credit losses of $24.4 billion 1.50x annualized 3Q10 net charge-offs 3.23% of total loans Remaining $14.5 billion nonaccretable difference for PCI loan portfolios separate from allowance 30.3% of PCI UPB (3) Net performance of PCI portfolio continued to exceed expectations (by about $3.5 billion) (4) $202 million nonaccretable difference released in 3Q10; reclassified $639 million (expected to accrete into future income) (1) Total loans includes Wachovia PCI loans of $55.2 billion in 2Q09, $54.3 billion in 3Q09, $51.7 billion in 4Q09, $49.5 billion in 1Q10, $46.5 billion in 2Q10 and $43.8 billion in 3Q10. The allowance includes $379 million in allowance associated with PCI loans in 3Q10. (2) Reserve release represents the amount by which net charge-offs exceed the provision for credit losses. (3) UPB used for nonaccretable coverage determination excludes $21 billion for PCI loans that have had their nonaccretable difference charged for expected loss. (4) Please see page 34 for additional information. Allowance for credit losses as a percentage of total loans (1) 3.28% 3.27% 3.20% 3.07% ($ in millions) 3.23%

Pick-a-Pay unpaid principal balance has declined $24.3 billion since acquisition to $93.0 billion Carrying value has declined to $77.3 billion, down $18.0 billion since 12/31/08 Non-PCI credit trends have stabilized PCI portfolio % current improved over 200 bps in the quarter to 60% current Pick-a-Pay continued to perform better than originally expected

Capital is strong and continued to grow internally 40 bps increase in 3Q10 34 bps due to retained earnings 4 bps due to other internal sources of capital 2 bps due to change in risk-weighted assets Purchased $544 million in warrants YTD 5 bps impact YTD on Tier 1 Common Warrant repurchase improves EPS when warrants are in the money Expect to continue to purchase opportunistically Other capital ratios growing Tier 1 Capital = 10.90% Tier 1 Leverage = 9.01% Please see appendix page 55 for more information on Tier 1 common equity. 3Q10 capital ratios are preliminary estimates. Year to date through September 30, 2010. .. Tier 1 Common Equity Ratio

Basel I Basel III: Estimated effect of proposed guidelines September 30, 2010 capital ratios are preliminary. Pro forma calculations based on reported Tier 1 common equity, as adjusted to reflect management's interpretation of current Basel III capital proposals. These pro forma calculations and management's estimates are subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory authorities. Tier 1 Common Equity Ratio Impact of deduction from Tier 1 Common equity for MSRs, DTAs, equity in financial affiliates, net bond G/L and other Basel II requirements Impact of addition to Risk-Weighted Assets for market risk, counterparty risk, operating risk and other Basel II/ Basel III elements Believe estimated effect on Wells Fargo will be substantially less than other large peers MSR asset comparable to other large mortgage banks Less DTA, equity in financial subsidiaries, trading assets, counterparty risk and disqualified TRUPS Reported Pro forma

Overview of foreclosure and mortgage securitization I. Foreclosure is a last resort We attempt to contact customers on average over 75 times by phone and nearly 50 times by letter during the period of first delinquency to foreclosure sale Approximately 80% of customers who are 60 days or more delinquent have worked with us, and when they have, we have been successful in helping seven out of every ten avoid foreclosure Since January 2009, we have helped over 556,000 borrowers avoid foreclosure through active and trial loan modifications and have forgiven $3.5 billion of principal. During that same time period, we completed fewer than 230,000 owner-occupied foreclosure sales For foreclosures completed in September 2010, the borrower was on average 16 months delinquent II. Our foreclosure and securitization documentation processes are sound Our process specifies that affidavit signers and reviewers are required to be the same team members, and affidavits are properly notarized. If we find errors we fix them We ensure appropriate documents for loans in foreclosure are assigned in compliance with local laws and investor requirements Legal documents related to securitizations appropriately transferred ownership We have implemented additional reviews on pending foreclosures, prioritized to ensure the review is complete before the loans go to foreclosure sale III. Repurchase exposure is manageable 3Q10 repurchase demands outstanding were down from 2Q10 in both number and balance Our $1.3 billion repurchase reserve liability is adequate

Wells Fargo has a high quality servicing portfolio Residential Mortgage Servicing Portfolio $1.8 Trillion (as of September 30, 2010) 92% of portfolio is current Less than 2% was sub-prime at origination 66% sold to agencies (FNMA, FHLMC, and GNMA) 20% are loans that we retained or acquired and service Loss exposure on these loans is handled through loan loss reserves and PCI non- accretable difference 8% are private securitizations where Wells Fargo originated the loan and therefore has some repurchase risk 55% are from vintages 2005 and prior 83% are prime Only $69 million of repurchases in 3Q10 6% non-agency acquired servicing and private whole loan sales The majority is acquired servicing where Wells Fargo did not underwrite and securitize and we have repurchase recourse back to the originator

Lower delinquency and foreclosure rates than peers Source: Inside Mortgage Finance. (1) Industry is all large servicers ($6.9 trillion) including WFC, C, JPM and BAC. (Data as of June 30, 2010) Wells Fargo total delinquency and foreclosure ratio for 3Q10 is 8.14% (1) 2Q10 Delinquency Performance

Repurchase exposure is manageable Demands are primarily concentrated in specific vintages with the GSEs Demands and losses have been concentrated in 2006- early 2008 vintages Demands in these vintages are down two consecutive quarters We don't expect large losses on pre-2006 and post-2008 vintages The balance of loans outstanding in the 2006-2008 vintages continued to decline The percentage of 120 day delinquent continued to decline Delinquency is an important measure as demands are generally correlated to defaults It should be noted, however, that loans that become delinquent and are properly underwritten to applicable contract terms do not result in repurchase New Repurchase Demands from Freddie Mac and Fannie Mae for 2006-2008 Vintages (1) (number of loans) New quarterly repurchase demands received on 2006-2008 vintages. of xx , 201x.

3Q10 outstanding repurchase demands down in both number and balance from 2Q10 Repurchase demand pipeline represents initial requests for information and loans being assessed for repurchase Approximate percent of requests that end up being repurchased: 50% Percent of borrowers where we repurchase the loan but are able to make current through modification: 20%-25% Percent loss severity (on average) for loans we repurchase and are unable to modify: 50% Repurchase reserve liability as of September 30, 2010: $1.3 billion Repurchase exposure is manageable and reserve is adequate

Appendix

Non-strategic loan portfolio risk reduction (1) Net of purchase accounting adjustments. - -$13.3 - -$6.9 - -$6.2

Capital strength 40 bps increase in Tier 1 common equity ratio in 3Q10, all internally generated Purchase of $4 million in warrants, no impact to Tier 1 common equity ratio Expect to continue to purchase outstanding warrants in open market from time to time at opportunistic prices (1) September 30, 2010, capital ratios are preliminary. (2) See table on page 55 for more information on Tier 1 Common Equity.

Purchased credit-impaired (PCI) portfolios continued to perform better than originally expected (1) Does not reflect charge-offs and certain other charges against the nonaccretable difference. Reclassified $639 million nonaccretable difference in 3Q10 from the commercial, CRE and foreign and other consumer loan portfolios expected to accrete to future income over remaining life of underlying loans $202 million nonaccretable difference released in 3Q10 due to loan resolutions $153 million in net interest income $49 million in noninterest income $14.5 billion in nonaccretable difference remains to absorb losses on PCI loans, 30.3% of UPB for PCI loans except $21 billion that have had their nonaccretable difference charged for expected loss

(1) Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations. (2) Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale. (3) Reclassification of nonaccretable difference for increased cash flow estimates to the accretable yield will result in increasing income and thus the rate of return realized. Amounts reclassified to accretable yield are expected to be probable of realization over the estimated remaining life of the loan. (4) Write-downs to net realizable value of PCI loans are charged to 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. $202 million nonaccretable difference released in 3Q10 into income due to loan resolutions $153 million in net interest income $49 million in noninterest income $639 million reclassified to accretable yield in 3Q10 for loans with improving cash flows reflecting better than expected performance, expected to accrete to income over estimated remaining expected life of underlying loans $247 million in other consumer $392 million in commercial, CRE and foreign $14.5 billion in nonaccretable difference remains to absorb losses on PCI loans Nonaccretable difference established in purchase accounting for PCI loans absorbs losses otherwise recorded as charge-offs Purchased credit-impaired (PCI) loan portfolio update Nonaccretable difference in 3Q10

PCI accretable yield 3Q10 results include interest income of $528 million compared to $643 million in 2Q10 Balance of $16.7 billion expected to accrete to income over the remaining life of the underlying loans Volume and early performance of Pick-a-Pay loan modifications combined with slower default timing are primary drivers of the $7.0 billion increase in expected PCI cash flows (accretable yield) since acquisition Loan modifications include some or all of the following: reduced interest rates, extended loan terms up to 40 years and reduced (forgiven) principal balance Expected cash flows on all PCI portfolios are recalculated quarterly including the adequacy of life-of-loan loss marks (nonaccretable difference) Estimates of redefaults on our Pick-a-Pay loan modifications While there is some underlying volatility in assumptions on a quarterly basis, total PCI cash flows have increased since acquisition (1) Represents changes in interest cash flows due to changes in interest rates on variable rate loans and updated expectations about the timing and extent of loan prepayments and defaults, in part influenced by the impact of modifications incorporated into the quarterly assessment of expected future cash flows.

Commercial, Commercial Real Estate and Foreign PCI portfolio accretable yield $1.0 billion remains to be accreted into income over 1.6 years (the estimated remaining weighted average life of the portfolio) Increase from 2Q10 reflects the reclassification to accretable yield from nonaccretable of $392 million during the quarter Most of portfolio tied to LIBOR Resolution income includes loans settled with the borrower but does not include gain or loss from sales to 3rd parties Weighted average life of the portfolio of 1.6 years has held relatively consistent over the past 2 quarters as shorter duration portfolios have rolled off and period of future cash flow assumptions have been extended

Pick-a-Pay PCI portfolio accretable yield $14.6 billion remains to be accreted over 9 years (the estimated remaining weighted average life of the portfolio) There was no reclassification of nonaccretable to accretable in 3Q10 Increase in weighted average life of the portfolio in 3Q10 reflects slower default timing and the continued success of our loan modification program Quarterly fluctuations in accretable yield can be driven by changes in: Interest rate indices for variable rate PCI loans Prepayment assumptions Expected principal and interest payments over the estimated life While the accretable yield balance is expected to be earned over the estimated remaining life of the loans, the accretable yield percentage is also affected by the quarterly updates to projected timing of cash flow events including REO liquidations, short sales, modifications and prepayments Successful modification programs have increased the expected cash flows and the resulting increase in yield has more than offset the impact on expected cash flows for decreases in note indices for variable rate PCI loans

3Q10 Credit quality highlights Allowance for credit losses $24.4 billion 1.50x annualized quarterly charge-offs 3.23% of total loans $14.5 billion in nonaccretable difference for PCI portfolio in addition to allowance Provision expense declined $544 million and was $650 million less than net charge-offs in the quarter Net charge-offs of $4.1 billion down $394 million from 2Q10 Commercial and commercial real estate losses declined $288 million on lower commercial and CRE mortgage losses Consumer losses declined $103 million as declines in junior lien mortgage, credit card and Pick-a-Pay were partially offset by higher first lien mortgage and consumer revolving including seasonally higher auto loan losses Based on current economic conditions and forecasts, we believe provision expense peaked in 3Q09 and charge-offs peaked in 4Q09; currently expect additional reserve releases in coming quarters absent significant deterioration in the economy

Nonperforming assets Commercial & CRE nonaccruals of $12.5 billion 96% secured and approximately 63% guaranteed Over 58% are currently paying interest that is applied to principal $2.9 billion in losses taken to date Consumer nonaccruals of $15.7 billion > 99% secured Approximately 40% of nonaccrual loans have been written down 22% CLTV (1) below 80% $3.8 billion in losses taken to date $13.2 billion of troubled debt restructurings (TDRs), including $4.0 billion of nonaccrual TDRs, have $3.4 billion of loan impairment for expected life-of-loan loss reserves Foreclosed assets up $1.1 billion 58% of the increase are government guaranteed loans or written down through purchase accounting $148 million of the increase are government insured $509 million of the increase reflects shift from PCI loans to REO ($406 million consumer and $103 million commercial and CRE) Remainder represents real estate loans (residential and CRE) and have already been written down The current loan-to-value (CLTV) ratio is calculated as the outstanding loan balance divided by the collateral value. The table above does not include PCI loans that were contractually 90 days past due and still accruing. Also excludes GNMA and similar loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

Commercial nonaccrual loans CRE Construction: Inflows decreased 30% while outflows increased 14% from 2Q10 36% current on interest 70% guaranteed 37% of NPLs have been written down CRE Mortgage: Inflows increased 3% while outflows decreased 2% from 2Q10 76% guaranteed 52% current on interest 35% of NPLs have been written down Commercial Loans & Lease Financing: Inflows increased 50% and outflows declined 26% from 2Q10 91% secured 41% guaranteed 82% current on interest 30% have already been written down 3Q10 Total commercial nonaccrual loans = $12,518 million ($ change in millions)

Consumer real estate nonaccrual loans National Home Equity (1): Inflows increased 11% while outflows increased 4% 42% are 1-4 family first mortgage 23% are TDRs for which impairment has been recognized Other Businesses: 81% is WFF debt consolidation Inflows declined 2% while outflows increased 3% 40% have been written down 9% is WBR Inflows decreased 9% while outflows increased 76% Home Mortgage: Inflows increased 10% while outflows increased 14% 58% have already been written down 55% are > 180 DPD Pick-a-Pay: Inflows declined 15% while outflows increased 27% 81% of NPLs held at current estimated recoverable value 21% are TDRs for which impairment has been recognized See page 50 for additional information 3Q10 Total residential real estate nonaccrual loans = $15,349 million ($ change in millions) All comparisons are to 2Q10. (1) Includes National Home Equity first and junior lines and loans. (2) FAS 167 addresses accounting for variable interest entities and is now incorporated into Accounting Standards Codification topic 810, Consolidation. (2) (2) (2) (2)

Commercial real estate (CRE) loan portfolio Office Industrial, Warehouse Other RE Apartment Retail (Ex Shopping Ctr) Land (Ex 1-4 Family) Shopping Ctr 1-4 Family Structure Hotel/Motel 1-4 Family Land Institutional 2% Agriculture Retail CA FL TX NC GA NY VA AZ NJ CO Other 33% of the portfolio is owner-occupied

CRE loan portfolio by business group Wholesale Banking 15% owner-occupied Community Banking 61% owner-occupied Wealth, Brokerage & Retirement (WBR) 38% owner-occupied

Wholesale Banking CRE loan portfolio (1) Wholesale CRE outstandings of $82.7 billion (1) down $1.2 billion, or 1%, from 2Q10 CRE Division portfolio = $61.6 billion, stable with 2Q10 outstandings NPAs increased $143 million from 2Q10 while losses declined $86 million, or 55 bps, from 2Q10 Wachovia PCI CRE portfolio = $7.7 billion carrying value down $1.1 billion, or 12%, from 2Q10 Losses declined $30 million from 2Q10 3Q10 revenue included release of nonaccretable difference for commercial PCI resolutions (payoffs/sales) of $188 million in the quarter vs. $495 million in 2Q10 on improved borrower liquidity and higher collateral asset values in the quarter Foreclosed assets/REO/Other increased $88 million from 2Q10 CRE loans originated through other Wholesale Banking channels (both legacy Wells Fargo and Wachovia) = $13.3 billion, down $161 million from 2Q10 Nonaccruals and losses relatively stable from 2Q10 Includes $8.3 billion in C&I loans managed by commercial real estate business including unsecured loans to real estate developers not secured by real estate and loans to REITs, as well as foreign and consumer loans.

Pick-a-Pay mortgage portfolio Carrying value of $77.3 billion in first lien loans outstanding, down $2.9 billion from 2Q10 and down $18.0 billion from 4Q08 on paid-in-full loans and loss mitigation efforts Unpaid principal balance of $93.0 billion, down $4.1 billion from 2Q10 and down $24.3 billion since acquisition $3.5 billion in principal forgiveness since acquisition reflects over 73,000 completed full-term modifications Pick-a-Pay loans with negative amortization potential decreased $5.6 billion from 2Q10 to 63% of loans Total portfolio deferred interest of $2.9 billion down $308 million from 2Q10 and down $1.4 billion from 4Q08 Deferred interest down for the sixth consecutive quarter due to: Loan modification efforts Customers' minimum payments continue to increase modestly each year (7.5%), while interest rates are falling, so for many customers the minimum payment not only covers interest due, but also pays down some principal In September 2010, approximately 70% of customers choosing the minimum payment did not defer interest Expect minimal recast risk over next 3 years due to product structure and features In the rest of 2010, $16 million, or 52 loans, expected to hit contractual recast due to term or balance cap and have a payment change greater than 7.5% annual reset. Approximately $43 million, or 203 loans, expected in 2011 and approximately $76 million, or 297 loans, expected in 2012 Modification redefault rate has been consistently better than the industry average as we have strived to give customers an affordable, sustainable payment

Pick-a-Pay portfolio Available nonaccretable difference Represents contractual unpaid principal balance (UPB) of loans 180+ DPD, for which a write-down of $4.8 billion to current net realizable value has been reflected as a loss against the nonaccretable difference.

Pick-a-Pay credit highlights Pick-a-Pay non-PCI portfolio Loans down 3% driven by loans paid-in-full 85% of portfolio current Nonaccrual loans down $98 million QoQ, first quarterly decline since acquisition 81% of loans have been written down to current net realizable value (See page 50) New inflows of $1.0 billion vs. $1.2 billion in 2Q10 declined for a third consecutive quarter Although net nonaccrual TDRs increased $56 million in 3Q10 as we continue to work with customers, $327 million of nonaccrual TDRs have been reclassified to accruing TDR status based on borrower payment performance $4.4 billion in nonaccruals included $919 million of nonaccruing TDRs of which 64% were paying as agreed Net charge-offs down $12 million, or 3 bps, to 2.36% reflecting stabilization in the delinquency trends Delinquency results (less than 180 DPD) in line with expectations with a slight increase at quarter-end driven by seasonality 39% of portfolio with LTV (1) < 80% Pick-a-Pay PCI portfolio Carrying value down 4% 60% of portfolio current, over 200 bps improvement from 2Q10 Life-of-loan losses continued to be lower than originally projected at time of merger The current loan-to-value (LTV) ratio is calculated as the unpaid principal balance plus the unpaid principal balance of any equity lines of credit that share common collateral divided by the collateral value. (2) The current loan-to-value (LTV) ratio is calculated as the net carrying value loan balance plus the net carrying value of any equity lines of credit that share common collateral divided by the collateral value.

Pick-a-Pay Non-impaired (Non-PCI) Current to 30 Days Pick-a-Pay Impaired (PCI) Current to 30 Days Pick-a-Pay: Current to 30+ days past due roll rates Roll rates from current to 30+ days past due (DPD) up modestly from 2Q10 due to seasonality First time delinquencies, defined as the percentage of 30+ days delinquent loans that are delinquent for the first time in the life of the loan, an important indicator in tracking the emergence of new problem loans, continued to improve in 3Q10 In the non-PCI portfolio, the percentage of first time delinquencies has dropped six consecutive quarters In the PCI portfolio, the ratio of first time delinquencies is at levels not seen since early 2008

Pick-a-Pay nonaccrual loan composition (1) 81% of Pick-a-Pay NPLs held at current estimated recoverable value vs. 79% in 2Q10, reflecting write-downs and/or LTV ^100% Allowance for loan losses covered the remaining 19% that have not yet been written down 14% of the NPLs are performing modifications Performing modifications move to current status after six consecutive payments are made 3Q10 Total $4,372 million 180 DPD written down to current estimated recoverable value Charge-offs to date of $691 million (28% of orig. balance) 180 DPD updated LTV ^ 100% No charge-offs to date 56% of loans have LTV<80% 44% of loans have LTV>80% but <100% 0 -179 DPD Initial charge-offs usually not taken until 180 DPD ($49 million taken to date) Expected losses included in allowance Loan modifications (TDRs) Charge-offs/principal forgiveness to date of $193 million (17% of orig. balance) Additionally, we hold expected life-of-loan loss reserves in allowance LTV is considered to be over 100% if the loan balance exceeds current estimated appraised value based on automated valuation methodology or updated appraisal where available. (1) Does not include PCI Pick-a-Pay since they are considered to be accruing under PCI loan accounting for accretable yield and accrual status is not based on contractual interest payments.

Real estate 1-4 family first mortgage portfolio First lien mortgage loans down 2% Pick-a-Pay non-PCI portfolio down 3% PCI portfolio down 4% Debt consolidation down 4% Non run-off first lien mortgage down 1% Non run-off first lien mortgage nonaccruals up $248 million, or 25 bps, and includes a $106 million increase from FAS 167 (1) loans Non run-off net charge-offs up $43 million, or 14 bps, driven by a $29 million increase from FAS 167 (1) loans (1) FAS 167 addresses accounting for variable interest entities and is now incorporated into Accounting Standards Codification topic 810, Consolidation. (2) Ratios on non run-off first lien mortgage loan portfolio only.

Home equity portfolio (1) Core Portfolio (2) Outstandings down 2% High quality new originations with weighted average CLTV of 61%, 774 FICO, and 31% total debt service ratio 3Q10 losses down $82 million resulting from prior quarters delinquency improvements Delinquency rate increased 11 bps, reflecting lower loan balances, increased trial modifications and elevated late stage delinquency levels related to extended foreclosure timelines Delinquency rate for loans with a CLTV >100% of 4.97% indicated vast majority of customers with negative equity continued making their payments Liquidating Portfolio 3Q10 losses down $14 million resulting from reduced delinquency observed over the past 3 quarters Delinquency rate for loans with a CLTV >100% of 6.43% indicated that most customers, even those sourced through third party channels, continued making their payments (1) Excludes purchased credit-impaired Wachovia loans. (2) Includes equity lines of credit and closed-end junior liens associated with the Pick-a-Pay portfolio totaling $1.7 billion at September 30, 2010 and $1.7 billion at June 30, 2010. (3) CLTV quarter-end based predominantly on estimated home values from automated valuation models updated through September 2010. Total loans include all open-to-buy and unused lines of credit.

Credit card portfolio $21.9 billion credit card outstandings represent less than 3% of total loans Outstandings down 1% as consumers reduced their debt Net charge-offs down $75 million, or 139 bps, reflecting previous risk mitigation efforts that included tightened underwriting and line management changes (i.e. fewer balance transfers and approved balance increases)

Auto portfolio Core Portfolio Total outstandings up 2% QoQ and up 22% YoY reflecting record market share positioning Strong originations in the quarter with LTV and loan structures consistent over the last six quarters Net charge-offs up $16 million QoQ reflecting seasonality and modestly lower used car values despite previous quarters' improvement in 30+ delinquencies September Manheim index of 118.9 down 1% from June and relatively stable from September 2009 30+ days past due increased $66 million, or 13 bps, due to seasonality Liquidating Portfolio (1) Wells Fargo Financial indirect auto outstandings down 15%, or $1.2 billion, QoQ driven by paydowns Legacy Wells Fargo Indirect portfolio.

Tier 1 common equity reconciliation

Return on average tangible common equity