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): January 17, 2012

WELLS FARGO & COMPANY

(Exact name of registrant as specified in its charter)

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

Item 2.02  Results of Operations and Financial Condition.

On January 17, 2012, Wells Fargo & Company (the “Company”) issued a press release regarding its results of operations and financial condition for the quarter and year ended December 31, 2011 (the “Press Release”), and posted on its website its 4Q11 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.

On January 17, 2012, 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: January 17, 2012	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

Tuesday, January 17, 2012

WELLS FARGO REPORTS RECORD QUARTERLY AND FULL YEAR NET INCOME

Q4 Net Income of $4.1 billion; Q4 Revenue of $20.6 billion

• Continued strong financial results:

o Record Wells Fargo net income of $4.1 billion

o Record diluted earnings per common share of $0.73

o Revenue of $20.6 billion, up 20 percent (annualized) from prior quarter

o Pre-tax pre-provision profit (PTPP)¹ of $8.1 billion, up 7 percent (annualized) from prior quarter

o Return on equity of 11.97 percent, up 11 basis points from prior quarter

o Return on average assets of 1.25 percent

o Net interest margin of 3.89 percent, up 5 basis points from prior quarter

• Continued solid loan and deposit growth:

o Total loans of $769.6 billion at December 31, 2011, up $9.5 billion from September 30, 2011; core loan portfolios up $13.7 billion from September 30, 2011²

o Total average core checking and savings deposits up $30.8 billion from prior quarter

• Improved capital position:

o Tier 1 common equity increased $3.2 billion to $95.1 billion, with Tier 1 common equity ratio of 9.46 percent under Basel I at December 31, 2011. Under current Basel III capital proposals, Tier 1 common equity ratio estimated at 7.49 percent³

o Purchased 27 million shares of common stock in fourth quarter 2011 and an additional estimated 6 million shares through a forward repurchase transaction that will settle in first quarter 2012

o Redeemed $5.8 billion of trust preferred securities with an average coupon of 8.42 percent

• Strong credit quality, stable net loan charge-offs:

o Nonperforming assets declined to $26.0 billion, down $879 million from prior quarter; down $6.3 billion from prior year

o Net charge-offs were $2.6 billion, or 1.36 percent (annualized) of average loans, in line with third quarter net charge-offs

¹ See footnote (2) on page 17 for more information on pre-tax pre-provision profit.

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

³ See tables on page 39 for more information on Tier 1 common equity.

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o Reserve release¹ of $600 million (pre-tax) reflected continued strong portfolio performance

• Wachovia banking conversions successfully completed:

o Retail bank store conversions complete with North Carolina integration in mid-October 2011

o 50 million accounts involved, 4,600 locations converted

o On track for merger integration completion in first quarter 2012

• Full Year 2011:

o Record Wells Fargo net income of $15.9 billion, up 28 percent from 2010

o Diluted earnings per common share of $2.82, up 28 percent from 2010

o Revenue of $80.9 billion, down 5 percent from 2010

o Net interest margin of 3.94 percent, return on assets of 1.25 percent, and return on equity of 11.93 percent

o Returned more capital to shareholders through a higher common stock dividend, and resumed common stock repurchases; in addition, redeemed $9.2 billion of high cost trust preferred securities

• Committed to helping homeowners remain in their homes:

o As of November 30, 2011, 724,710 active trial or completed loan modifications had been initiated since the beginning of 2009; of this total, 84 percent were through Wells Fargo’s own modification programs and the remainder were through the federal government’s Home Affordable Modification Program (HAMP)

o Since September 2009, Wells Fargo participated in more than 640 home preservation workshops and met individually with more than 29,000 customers

Selected Financial Information

				Quarter ended
	Dec. 31,			Sept. 30,		Dec. 31,		Year ended Dec. 31,
	2011			2011		2010		2011		2010
Earnings
Diluted earnings per common share	$	0.73			0.72		0.61		2.82		2.21
Wells Fargo net income (in billions)		4.11			4.06		3.41		15.87		12.36
Asset Quality
Net charge-offs as a % of avg. total loans		1.36	%		1.37		2.02		1.49		2.30
Allowance as a % of total loans		2.56			2.68		3.10		2.56		3.10
Allowance as a % of annualized net charge-offs		188			197		154		174		132
Other
Revenue (in billions)	$	20.61			19.63		21.49		80.95		85.21
Average loans (in billions)		768.6			754.5		753.7		757.1		770.6
Average core deposits (in billions)		864.9			836.8		794.8		826.7		772.0
Net interest margin		3.89	%		3.84		4.16		3.94		4.26

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

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SAN FRANCISCO – Wells Fargo & Company (NYSE: WFC) reported record net income of $4.1 billion, or $0.73 per diluted common share, for fourth quarter 2011, compared with $3.4 billion, or $0.61 per share, for fourth quarter 2010, and $4.1 billion, or $0.72 per share, for third quarter 2011. Full year 2011 Wells Fargo net income was $15.9 billion, or $2.82 per share, up 28 percent from 2010.

“I’m extremely pleased with Wells Fargo’s performance in 2011 – including strong deposit and loan growth, record cross-sell and record earnings,” said Chairman and CEO John Stumpf. “We achieved these results while completing the conversion of Wachovia’s retail banking stores – the largest such conversion in banking history – and now all of our 6,239 retail banking stores are on a single platform serving customers coast to coast. At the time of the merger, we said the integration of Wachovia would take three years and we are right on track. I couldn’t be prouder of how our two companies have come together as one, thanks to the important and tireless work of our more than 260,000 team members.

“In 2012, we are focused on Wells Fargo’s many opportunities, including continuing to provide our customers with award winning service, welcoming new customers as we grow market share throughout our many businesses and geographies, achieving efficiency improvements across the company and returning even more capital to our shareholders.”

“The fourth quarter of 2011 was a very strong quarter for Wells Fargo, with record earnings, solid linked quarter growth in loans, deposits and capital, and continued strong credit quality,” said Chief Financial Officer Tim Sloan. “Revenue was up 5 percent from the third quarter despite a full quarter’s impact of the new debit interchange rules. As expected, expenses were higher in the quarter and we are maintaining our target of $11 billion in noninterest expense in the fourth quarter of 2012.”

Revenue

Revenue was $20.6 billion, up from $19.6 billion in third quarter 2011. “We are pleased with revenue performance in the quarter. Both net interest income, which benefited from the growth in earning assets and an increase in the net interest margin, and noninterest income, which was bolstered by strong mortgage banking and capital markets results, were up this quarter,” said Sloan. Businesses generating linked-quarter revenue growth included asset-backed finance, capital markets, commercial banking, commercial real estate, corporate banking, corporate trust, credit card, equipment finance, government and institutional banking, insurance, international, merchant services, mortgage, real estate capital markets and retail sales finance.

Net Interest Income

Net interest income was $10.9 billion, up from $10.5 billion in third quarter 2011. Average earning assets increased $24.3 billion from third quarter 2011, driven by growth in loans, securities and mortgages held for sale. Continued success in generating low-cost deposits enabled the Company to fund the asset growth while at the same time reducing long-term debt, including the redemption of $5.8 billion of higher-cost trust preferred securities. The net interest margin increased to 3.89 percent from 3.84 percent in third quarter

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2011. Lower deposit costs, less long-term debt, and the redeployment of short-term investments into higher-yielding assets such as securities and loans contributed to the increase in the margin.

Noninterest Income

Noninterest income was $9.7 billion, compared with $9.1 billion in third quarter 2011. The $627 million increase was driven by increases of $531 million in mortgage banking and $337 million in trading, debt and equity gains. Card fees declined $333 million from third quarter due to a $365 million decline in debit interchange fees partially offset by improved credit card fee revenue. Other income included a $153 million gain on sale from H.D. Vest.

Mortgage banking noninterest income was $2.4 billion, up $531 million from third quarter 2011, on $120 billion of originations compared with $89 billion of originations in third quarter. Mortgage banking noninterest income in fourth quarter included a $404 million provision for mortgage loan repurchase losses compared with $390 million in third quarter (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were a $201 million gain compared with a $607 million gain in third quarter 2011. The ratio of MSRs to related loans serviced for others was 76 basis points and the average note rate on the servicing portfolio was 5.14 percent. The unclosed pipeline at December 31, 2011, was $72 billion compared with $84 billion at September 30, 2011.

The Company had net unrealized securities gains of $7.0 billion at December 31, 2011, compared with a net unrealized gain of $6.8 billion at September 30, 2010. Period-end securities available for sale balances were up $15.4 billion, reflecting continued investment activity.

Noninterest Expense

Noninterest expense increased in the quarter, to $12.5 billion, compared with $11.7 billion in third quarter. Third quarter expense included a $210 million benefit due to lower deferred compensation expenses associated with an offsetting trading loss. In addition to this factor, the increase in fourth quarter expenses was primarily driven by the following:

• higher personnel expense associated with stronger mortgage and capital markets revenue in the quarter (approximately $300 million);

• seasonally higher costs for equipment and foreclosed assets expense (approximately $200 million); and

• higher costs associated with the mortgage servicing regulatory consent orders (approximately $100 million).

The Company expects first quarter 2012 noninterest expense to remain elevated due to seasonally high personnel expenses offset by lower integration expenses and continued gains from efficiency and cost save initiatives. Starting in second quarter 2012, total expenses are expected to decline over the remainder of the

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year, driven by the benefit from ongoing efficiency initiatives and the conclusion of integration activities. The Company continues to target fourth quarter 2012 noninterest expense of $11 billion.

Loans

Total loans were $769.6 billion at December 31, 2011, up $9.5 billion from $760.1 billion at September 30, 2011. Increased balances in many loan portfolios more than offset the continued planned reduction in the non-strategic/liquidating portfolios, which declined $4.2 billion in the quarter. Period-end core loans grew $13.7 billion and included $2.1 billion of U.S.-based commercial real estate (CRE) loans purchased in the quarter, as well as an additional $5.6 billion of consumer real estate 1-4 family loans related to the consolidation of previously sold reverse mortgage loans. Organic loan growth of $6.0 billion linked quarter was driven by commercial and industrial growth from expanding relationships with existing customers and new customer loans. Additional growth came from a 4 percent increase in foreign loans and a 5 percent increase in credit card balances, reflecting higher purchase dollar volumes and transactions, as well as new account growth.

Many loan portfolios had linked-quarter growth in average balances, including asset-backed finance, capital finance, commercial banking, commercial real estate, corporate banking, credit card, government and institutional banking, international, mortgage, real estate capital markets, and retail sales finance.

	December 31, 2011							September 30, 2011
(in millions)	Core		Liquidating (1)			Total		Core		Liquidating (1)			Total
Commercial	$	339,755		5,695			345,450		333,513		6,321			339,834
Consumer		317,550		106,631			424,181		310,084		110,188			420,272
Total loans	$	657,305		112,326			769,631		643,597		116,509			760,106
Change from prior quarter:	$	13,708		(4,183	)		9,525		13,429		(5,244	)		8,185

(1) See table on page 35 for additional information on non-strategic/liquidating loan portfolios. Management believes that the above information provides useful disclosure regarding the Company’s ongoing loan portfolios.

Deposits

Average core deposits were $864.9 billion, up 9 percent from a year ago and up 13 percent (annualized) from third quarter 2011. Consumer checking accounts grew a net 3.2 percent from December 31, 2010. Average core checking and savings deposits were $800 billion, up 12 percent from a year ago and up 16 percent (annualized) from third quarter 2011. Average mortgage escrow deposits were $34.9 billion compared with $36.0 billion a year ago and $28.3 billion in third quarter 2011. Average core checking and savings deposits were 93 percent of average core deposits, up from 90 percent a year ago. Deposit costs for fourth quarter 2011 were 22 basis points compared with 25 basis points in third quarter 2011. Average core deposits were 113 percent of average loans, up from 111 percent in third quarter 2011.

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Capital

Capital increased in the fourth quarter, with Tier 1 common equity reaching $95.1 billion under Basel I, or 9.46 percent of risk-weighted assets. Under current Basel III proposals, the Tier 1 common equity ratio was an estimated 7.49 percent. The Company redeemed $5.8 billion of trust preferred securities in the quarter, repurchased 27 million shares of its common stock, plus an additional estimated 6 million shares through a forward repurchase transaction that will settle in first quarter 2012, and paid a quarterly common stock dividend of $0.12 per share.

	Dec. 31,			Sept. 30,		Dec. 31,
(as a percent of total risk-weighted assets)	2011			2011		2010
Ratios under Basel I (1):
Tier 1 common equity (2)		9.46	%		9.34		8.30
Tier 1 capital		11.33			11.26		11.16
Tier 1 leverage		9.03			8.97		9.19

(1) December 31, 2011, ratios are preliminary.

(2) See table on page 39 for more information on Tier 1 common equity.

Credit Quality

“Credit remained strong and within expectations in the fourth quarter. Consumer losses were essentially flat from third quarter while commercial losses increased slightly as we experienced normal period-to-period fluctuation. Based on our current forecasts, we expect continued improvement in credit in 2012,” said Chief Risk Officer Mike Loughlin.

Fourth quarter net charge-offs were $2.6 billion, or 1.36 percent (annualized) of average loans, essentially flat from third quarter net charge-offs of $2.6 billion (1.37 percent). The provision for credit losses was $600 million less than net charge-offs, compared with $800 million less than net charge-offs in the prior quarter, reflecting our expected continued improvement. “We have seen significant improvement in credit performance over the past eight quarters, and expect continued but slower improvement in 2012 as portfolio quality approaches a stable, more normal level,” said Loughlin. “Absent significant deterioration in the economy, we continue to expect future reserve releases in 2012.”

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Net Loan Charge-Offs

	Quarter ended
	Dec. 31, 2011					Sept. 30, 2011					June 30, 2011
			As a					As a					As a
	Net loan		% of			Net loan		% of			Net loan		% of
	charge-		average			charge-		average			charge-		average
($ in millions)	offs		loans (1)			offs		loans (1)			offs		loans (1)
Commercial:
Commercial and industrial	$	310		0.74	%	$	261		0.65	%	$	254		0.66	%
Real estate mortgage		117		0.44			96		0.37			128		0.50
Real estate construction		(5)		(0.09	)		55		1.06			72		1.32
Lease financing		4		0.13			3		0.11			1		0.01
Foreign		45		0.45			8		0.08			47		0.52
Total commercial		471		0.54			423		0.50			502		0.62
Consumer:
Real estate 1-4 family first mortgage		844		1.46			821		1.46			909		1.62
Real estate 1-4 family junior lien mortgage		800		3.64			842		3.75			909		3.97
Credit card		256		4.63			266		4.90			294		5.63
Other revolving credit and installment		269		1.24			259		1.19			224		1.03
Total consumer		2,169		2.02			2,188		2.06			2,336		2.21
Total	$	2,640		1.36	%	$	2,611		1.37	%	$	2,838		1.52	%

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

Nonperforming Assets

Nonperforming assets ended the quarter at $26.0 billion, down 3 percent from $26.8 billion in the third quarter. Nonaccrual loans declined to $21.3 billion from $21.9 billion in the third quarter, with reductions across the majority of our larger loan portfolios, resulting from stable inflows. Foreclosed assets decreased to $4.7 billion from $4.9 billion in third quarter.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)

	Dec. 31, 2011					Sept. 30, 2011					June 30, 2011
			As a					As a					As a
			% of					% of					% of
	Total		total			Total		total			Total		total
($ in millions)	balances		loans			balances		loans			balances		loans
Commercial:
Commercial and industrial	$	2,142		1.28	%	$	2,128		1.29	%	$	2,393		1.52	%
Real estate mortgage		4,085		3.85			4,429		4.24			4,691		4.62
Real estate construction		1,890		9.75			1,915		9.71			2,043		9.56
Lease financing		53		0.40			71		0.55			79		0.61
Foreign		47		0.12			68		0.18			59		0.16
Total commercial		8,217		2.38			8,611		2.53			9,265		2.80
Consumer:
Real estate 1-4 family first mortgage		10,913		4.77			11,024		4.93			11,427		5.13
Real estate 1-4 family junior lien mortgage		1,975		2.30			2,035		2.31			2,098		2.33
Other revolving credit and installment		199		0.23			230		0.27			255		0.29
Total consumer		13,087		3.09			13,289		3.16			13,780		3.27
Total nonaccrual loans		21,304		2.77			21,900		2.88			23,045		3.06
Foreclosed assets:
GNMA		1,319					1,336					1,320
Non GNMA		3,342					3,608					3,541
Total foreclosed assets		4,661					4,944					4,861
Total nonperforming assets	$	25,965		3.37	%	$	26,844		3.53	%	$	27,906		3.71	%
Change from prior quarter:
Total nonaccrual loans	$	(596)				$	(1,145)				$	(1,920)
Total nonperforming assets		(879)					(1,062)					(2,571)

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Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $2.0 billion at December 31, 2011, compared with $1.9 billion at September 30, 2011. Loans 90 days or more past due and still accruing whose repayments are insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $20.5 billion at December 31, 2011, up from $17.7 billion at September 30, 2011, due primarily to growth in the FHA/VA portfolio over the past two years and the subsequent seasoning of those loans.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $19.7 billion at December 31, 2011, down from $20.4 billion at September 30, 2011. The allowance coverage to total loans was 2.56 percent compared with 2.68 percent in the prior quarter. The allowance covered 1.88 times annualized fourth quarter net charge-offs compared with 1.97 times in the prior quarter. The allowance coverage to nonaccrual loans was 92 percent at December 31, 2011, compared with 93 percent at September 30, 2011. “We believe the allowance was appropriate for losses inherent in the loan portfolio at December 31, 2011,” said Loughlin.

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

Business Segment Performance

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

					Quarter ended
	Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2011		2011		2010
Community Banking	$	2,503		2,315		1,924
Wholesale Banking		1,641		1,813		1,690
Wealth, Brokerage and Retirement		325		291		197

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

Selected Financial Information

					Quarter ended
	Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2011		2011		2010
Total revenue	$	13,004		12,496		13,472
Provision for credit losses		2,031		1,978		2,785
Noninterest expense		7,310		6,901		7,855
Segment net income		2,503		2,315		1,924
(in billions)
Average loans		493.9		491.0		514.1
Average assets		756.0		754.4		771.6
Average core deposits		568.3		556.3		544.4

Community Banking reported net income of $2.5 billion, up $188 million, or 8 percent, from third quarter 2011 and up $579 million, or 30 percent, from fourth quarter 2010. Revenue increased $508 million, or 4 percent, from third quarter 2011 driven by higher volume-related mortgage banking income, noninterest bearing deposit growth and gains on deferred compensation plan investments (offset in employee benefits expense and therefore neutral to the income statement), mitigated by the impact of lower debit card revenues and smaller bond and equity sale gains. Noninterest expense increased $409 million, or 6 percent, from third quarter 2011, reflecting higher personnel costs (revenue-related incentive compensation in Home Mortgage and increased deferred compensation benefits expense), seasonal increase in foreclosed assets expense, an increase in Home Mortgage related to the mortgage servicing regulatory consent orders, and seasonally higher equipment purchases. Noninterest expense decreased $545 million, or 7 percent, from fourth quarter 2010, as last year’s fourth quarter included a two-year charitable donation commitment of $400 million. Contributing to lower expenses this year were reduced foreclosed asset expense and efficiency and cost save initiatives. The provision for credit losses increased $53 million from third quarter 2011 and decreased $754 million from fourth quarter 2010. Charge-offs increased $41 million from third quarter 2011 and decreased $966 million from fourth quarter 2010. The reserve release was $438 million in fourth quarter 2011, compared with releases of $450 million and $650 million in third quarter 2011 and fourth quarter 2010, respectively.

Regional Banking Highlights

• Continued franchise growth in 2011 from December 31, 2010 (combined Regional Banking)

o Consumer checking accounts up a net 3.2 percent

o Business checking accounts up a net 3.7 percent

o Consumer credit card, lines of credit and loan product solutions (sales) in the retail banking stores were up by double digits from 2010

o Insurance referrals in the retail banking stores were more than two-and-a-half times those done in 2010

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• Record solutions in 2011

o West

— Record core product solutions (sales) of 33.7 million, up 14 percent from 2010

— Core sales per platform banker FTE (active, full-time equivalent) of 6.69 per day, up from 5.95 in 2010

— Sales of Wells Fargo Packages^® (a checking account and three other products) up 16 percent from 2010, purchased by 86 percent of new checking account customers

o East

— Eastern core product solutions grew by double digits from 2010

— For eastern stores converted to the Wells Fargo systems, 82 percent of new checking account customers purchased Wells Fargo Packages^® in 2011

— Platform banker FTE grew by over 670, or 6 percent, from 2010

• Retail Bank household cross-sell ratio for combined company of 5.92 products per household, up from 5.70 in fourth quarter 2010; cross-sell in the West of 6.29, compared with 5.43 in the East, represents the opportunity to earn more business from customers in the East

• Wells Fargo’s retail bank ranked No. 1 again in customer satisfaction according to the American Customer Satisfaction Index (ACSI) for customers of large banks (tied with Citigroup, third quarter 2011 results released in December)

• Small Business/Business Banking

o Store-based business solutions up 15 percent from 2010 (West)

o Sales of Wells Fargo Business Services Packages (a business checking account and at least three other business products) up 37 percent from 2010, purchased by 75 percent of new business checking account customers (West)

o Wells Fargo, America’s #1 small business lender, made $13.9 billion in new loan commitments to its small business customers in 2011, an 8 percent increase in new dollars lent from 2010

• Online and Mobile Banking

o 19.8 million combined active online customers

o 7.3 million combined active mobile customers

o Wells Fargo Assist^SM, an online financial assistance center, launched and provides information for customers who are facing payment challenges

Wells Fargo Home Mortgage (Home Mortgage)

• Home Mortgage applications of $157 billion, compared with $169 billion in prior quarter

• Home Mortgage application pipeline of $72 billion at quarter end, compared with $84 billion at September 30, 2011

• Home Mortgage originations of $120 billion, up from $89 billion in prior quarter

• Residential mortgage servicing portfolio of $1.8 trillion

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

Selected Financial Information

	Quarter ended
(in millions)	Dec. 31, 2011		Sept. 30, 2011			Dec. 31,   2010
Total revenue	$	5,425		5,150			5,840
Provision (reversal of provision) for credit losses		32		(178	)		195
Noninterest expense		2,939		2,689			2,992
Segment net income		1,641		1,813			1,690
(in billions)
Average loans		264.8		253.4			229.6
Average assets		458.3		438.0			384.4
Average core deposits		223.2		209.3			185.1

Wholesale Banking reported net income of $1.6 billion, down $172 million or 9 percent from the third quarter and $49 million or 3 percent from fourth quarter 2010. Revenue increased $275 million or 5 percent from the third quarter primarily due to strong loan and deposit growth across most businesses, including commercial banking, commercial real estate, corporate banking, government banking and international. Revenue also benefited from capital markets and investment banking results which rebounded from prior quarter depressed levels. Revenue decreased $415 million, or 7 percent from fourth quarter 2010 as broad based growth among many businesses, including strong loan and deposit growth, was offset by lower PCI resolutions and other gains. Noninterest expense increased $250 million, or 9 percent, from the third quarter due to higher variable compensation related to higher revenue and increased operating losses and foreclosed asset expenses. Expenses decreased $53 million, or 2 percent, from fourth quarter 2010 related to lower operating losses. The provision for credit losses was $32 million and increased $210 million from the third quarter primarily due to lower reserve release. Provision declined $163 million from fourth quarter 2010. The decrease included a $150 million reserve release in fourth quarter 2011 compared with a $200 million reserve release in the fourth quarter a year ago along with a $213 million improvement in net charge-offs.

• 15 percent year-over-year and 4 percent linked quarter average loan growth in almost all portfolios including asset backed finance, capital finance, commercial banking, commercial real estate, corporate banking, government banking and international from both new and existing customer activity

• Stable level of net charge-offs and lower nonperforming assets

• Average core deposits up 21 percent from prior year

• U.S. investment banking 2011 market share of 5.1 percent, up from 4.2 percent for full year 2010 (source: Dealogic fee-based league tables)

• Ending loans include $2.1 billion of U.S.-based CRE loans purchased in the quarter

- 12 -

Wealth, Brokerage and Retirement provides a full range of financial advisory services to clients using a planning approach to meet each client’s needs. Wealth Management provides affluent and high net worth clients with a complete range of wealth management solutions, including financial planning, private banking, credit, investment management and trust. Family Wealth (to be rebranded as Abbot Downing, A Wells Fargo Business, in April 2012) meets the unique needs of the ultra high net worth customers. Brokerage serves customers’ advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the United States. Retirement is a national leader in providing institutional retirement and trust services (including 401(k) and pension plan record keeping) for businesses, retail retirement solutions for individuals, and reinsurance services for the life insurance industry.

Selected Financial Information

	Quarter ended
(in millions)	Dec. 31, 2011		Sept. 30, 2011		Dec. 31,   2010
Total revenue	$	3,065		2,887		3,041
Provision for credit losses		20		48		113
Noninterest expense		2,521		2,368		2,608
Segment net income		325		291		197
(in billions)
Average loans		42.7		43.1		43.0
Average assets		159.3		155.1		140.2
Average core deposits		136.6		133.4		121.5

Wealth, Brokerage and Retirement reported net income of $325 million, up $34 million from third quarter 2011 and up $128 million from fourth quarter 2010. Revenue was $3.1 billion, up 6 percent from third quarter 2011 driven by $59 million in gains on deferred compensation plan investments (offset in expense compared with $128 million in losses in third quarter 2011) and a $153 million gain on the sale of the H.D. Vest business. Excluding deferred compensation and H.D. Vest gains, revenue was down 5 percent due to lower asset-based fees, reduced brokerage transaction revenue and lower securities gains in the brokerage business. Total provision for credit losses decreased $28 million for the quarter, including a reserve release of $12 million in fourth quarter 2011. Noninterest expense increased 6 percent from third quarter 2011 primarily due to higher deferred compensation expense, $52 million in fourth quarter 2011 compared to a $125 million benefit in third quarter 2011. Excluding the $177 million increase in deferred compensation expense, noninterest expense decreased 1 percent primarily due to reduced broker commissions on lower production levels. Revenue was up 1 percent from fourth quarter 2010; excluding the impact of the H.D. Vest gain, revenue was down 4 percent due to lower brokerage transaction revenue. Total provision for credit losses decreased $93 million from fourth quarter 2010. Noninterest expense was down 3 percent from fourth quarter 2010 driven by a decline in personnel costs largely due to decreased broker commissions, driven by lower production levels, and decreased non-personnel costs. Average core deposits increased $3.2 billion from third quarter 2011 and $15.1 billion from fourth quarter 2010.

Retail Brokerage

•   Strong deposit growth, with average balances up $14 billion, or 17 percent, from prior year

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

•   Managed account assets increased $19 billion, or 8 percent, from prior year driven by strong net flows

- 13 -

Wealth Management

•   Average deposit balances up 3 percent from prior year

•   Client assets of $198 billion, down 2 percent from prior year

Retirement

•   Institutional Retirement plan assets of $236 billion, up $5 billion, or 2 percent, from prior year

•   IRA assets of $268 billion, down $10 billion, or 4 percent, from prior year

Conference Call

The Company will host a live conference call on Tuesday, January 17, at 6:30 a.m. PST (9:30 a.m. EST). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (international). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and http://us.reg.meeting-stream.com/wellsfargocompany_011712/.

A replay of the conference call will be available beginning at approximately noon PST (3 p.m. EST) on January 17 through Tuesday, January 24. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291 (international) and enter Conference ID #29256540. The replay will also be available online at wellsfargo.com/invest_relations/earnings.

- 14 -

Cautionary Statement about Forward-Looking Information

In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that this news release contains forward-looking statements about our future financial performance and business. We make forward-looking statements when we use words such as “believe,” “expect,” “anticipate,” “estimate,” “target,” “should,” “may,” “can,” “will,” “outlook,” “project,” “appears” or similar expressions. Forward-looking statements in this news release include, among others, statements about: (i) future credit quality and performance, and the adequacy of the allowance for loan losses, including our current expectation of future reductions in the allowance for loan losses; (ii) our expectations regarding elevated first quarter 2012 noninterest expense and declines in noninterest expense beginning in second quarter 2012, as well as our targeted noninterest expense for fourth quarter 2012 as part of our expense management initiatives; (iii) our estimates regarding our Tier 1 common equity ratio under proposed Basel III capital regulations and our expectations regarding returning more capital to our shareholders; and (iv) the timing of remaining integration activities related to the Wachovia merger.

Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. Several factors could cause actual results to differ materially from expectations including: current and future economic and market conditions, including the effects of further declines in housing prices, high unemployment rates, U.S. fiscal debt and budget matters and the sovereign debt crisis in Europe; our capital requirements (including under regulatory capital standards as determined and interpreted by applicable regulatory authorities such as the proposed Basel III capital regulations) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses (including the Dodd-Frank Wall Street Reform and Consumer Protection Act); the extent of success in our loan modification efforts, including the effects of regulatory requirements, or changes in regulatory requirements, relating to loan modifications; the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties; negative effects relating to mortgage foreclosures, including changes in our procedures or practices and/or industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures; our ability to realize our noninterest expense target as part of our expense management initiatives when and in the amount targeted, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters; our ability to successfully complete the remaining Wachovia integration activities, as well as realize the expected benefits of the Wachovia merger; a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors and other service providers; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect of changes in interest rates on our net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; hedging gains or losses; disruptions in the capital markets and reduced investor demand for mortgage loans; our ability to sell more products to our customers; the effect of the economic recession on the demand for our products and services; the effect of fluctuations in stock market prices on fee income from our brokerage, asset and wealth management businesses; our election to provide support to our mutual funds for structured credit products they may hold; changes in the value of our venture capital investments; changes in our accounting policies or in accounting standards or in how accounting standards are to be applied; changes in our credit ratings and changes in the credit ratings of our customers or counterparties; mergers and acquisitions; federal and state regulations; reputational damage from negative publicity, fines, penalties and other negative consequences from regulatory violations; the loss of checking and saving account deposits to other investments such as the stock market; and fiscal and monetary policies of the Federal Reserve Board. There is no assurance that our allowance for credit losses will be adequate to cover future credit losses, especially if housing prices and unemployment do not improve. Increases in loan charge-offs or in the allowance for credit losses and related provision expense could materially adversely affect our financial results and condition. For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2011, and September 30, 2011, as filed with the SEC and available on the SEC’s website at www.sec.gov. Any factor described above or in our SEC reports could, by itself or together with one or more other factors, adversely affect our financial results and condition.

- 15 -

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and other distribution channels across North America and internationally. With more than 272,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 23 on Fortune’s 2011 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

# # #

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS

	Pages
Summary Information
Summary Financial Data		17-18
Income
Consolidated Statement of Income		19-20
Average Balances, Yields and Rates Paid		21-22
Noninterest Income and Noninterest Expense		23-24
Balance Sheet
Consolidated Balance Sheet		25-26
Average Balances		27
Loans
Securities Available for Sale		28
Loans		28
Nonaccrual Loans and Foreclosed Assets		29
Loans 90 Days or More Past Due and Still Accruing		30
Purchased Credit-Impaired Loans		31-33
Pick-A-Pay Portfolio		34
Non-Strategic and Liquidating Loan Portfolios		35
Home Equity Portfolios		35
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

17

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

	Quarter ended Dec. 31,					%			Year ended Dec. 31,				%
($ in millions, except per share amounts)	2011			2010		Change			2011		2010		Change
For the Period
Wells Fargo net income	$	4,107			3,414		20	%	$	15,869		12,362		28	%
Wells Fargo net income applicable to common stock		3,888			3,232		20			15,025		11,632		29
Diluted earnings per common share		0.73			0.61		20			2.82		2.21		28
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.25	%		1.09		15			1.25		1.01		24
Wells Fargo net income applicable to common stock to average Wells Fargo common stockolders’ equity (ROE)		11.97			10.95		9			11.93		10.33		15
Efficiency ratio (1)		60.7			62.1		(2)			61.0		59.2		3
Total revenue	$	20,605			21,494		(4)		$	80,948		85,210		(5)
Pre-tax pre-provision profit (PTPP) (2)		8,097			8,154		(1)			31,555		34,754		(9)
Dividends declared per common share		0.12			0.05		140			0.48		0.20		140
Average common shares outstanding		5,271.9			5,256.2		-			5,278.1		5,226.8		1
Diluted average common shares outstanding		5,317.6			5,293.8		-			5,323.4		5,263.1		1
Average loans	$	768,563			753,675		2		$	757,144		770,601		(2)
Average assets		1,306,728			1,237,037		6			1,270,265		1,226,938		4
Average core deposits (3)		864,928			794,799		9			826,735		772,021		7
Average retail core deposits (4)		606,810			573,843		6			595,851		572,881		4
Net interest margin		3.89	%		4.16		(6)			3.94		4.26		(8)
At Period End
Securities available for sale	$	222,613			172,654		29		$	222,613		172,654		29
Loans		769,631			757,267		2			769,631		757,267		2
Allowance for loan losses		19,372			23,022		(16)			19,372		23,022		(16)
Goodwill		25,115			24,770		1			25,115		24,770		1
Assets		1,313,867			1,258,128		4			1,313,867		1,258,128		4
Core deposits (3)		872,629			798,192		9			872,629		798,192		9
Wells Fargo stockholders’ equity		140,241			126,408		11			140,241		126,408		11
Total equity		141,687			127,889		11			141,687		127,889		11
Capital ratios:
Total equity to assets		10.78	%		10.16		6			10.78		10.16		6
Risk-based capital (5):
Tier 1 capital		11.33			11.16		2			11.33		11.16		2
Total capital		14.77			15.01		(2)			14.77		15.01		(2)
Tier 1 leverage (5)		9.03			9.19		(2)			9.03		9.19		(2)
Tier 1 common equity (6)		9.46			8.30		14			9.46		8.30		14
Common shares outstanding		5,262.6			5,262.3		-			5,262.6		5,262.3		-
Book value per common share	$	24.64			22.49		10		$	24.64		22.49		10
Common stock price:
High		27.97			31.61		(12)			34.25		34.25		-
Low		22.61			23.37		(3)			22.58		23.02		(2)
Period end		27.56			30.99		(11)			27.56		30.99		(11)
Team members (active, full-time equivalent)		264,200			272,200		(3)			264,200		272,200		(3)

(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 December 31, 2011, ratios are preliminary.

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

18

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
($ in millions, except per share amounts)	Dec. 31, 2011			Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
For the Quarter
Wells Fargo net income	$	4,107			4,055		3,948		3,759		3,414
Wells Fargo net income applicable to common stock		3,888			3,839		3,728		3,570		3,232
Diluted earnings per common share		0.73			0.72		0.70		0.67		0.61
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.25	%		1.26		1.27		1.23		1.09
Wells Fargo net income applicable to common stock to average
Wells Fargo common stockholders’ equity (ROE)		11.97			11.86		11.92		11.98		10.95
Efficiency ratio (1)		60.7			59.5		61.2		62.6		62.1
Total revenue	$	20,605			19,628		20,386		20,329		21,494
Pre-tax pre-provision profit (PTPP) (2)		8,097			7,951		7,911		7,596		8,154
Dividends declared per common share		0.12			0.12		0.12		0.12		0.05
Average common shares outstanding		5,271.9			5,275.5		5,286.5		5,278.8		5,256.2
Diluted average common shares outstanding		5,317.6			5,319.2		5,331.7		5,333.1		5,293.8
Average loans	$	768,563			754,544		751,253		754,077		753,675
Average assets		1,306,728			1,281,369		1,250,945		1,241,176		1,237,037
Average core deposits (3)		864,928			836,845		807,483		796,826		794,799
Average retail core deposits (4)		606,810			599,227		592,974		584,100		573,843
Net interest margin		3.89	%		3.84		4.01		4.05		4.16
At Quarter End
Securities available for sale	$	222,613			207,176		186,298		167,906		172,654
Loans		769,631			760,106		751,921		751,155		757,267
Allowance for loan losses		19,372			20,039		20,893		21,983		23,022
Goodwill		25,115			25,038		24,776		24,777		24,770
Assets		1,313,867			1,304,945		1,259,734		1,244,666		1,258,128
Core deposits (3)		872,629			849,632		808,970		795,038		798,192
Wells Fargo stockholders’ equity		140,241			137,768		136,401		133,471		126,408
Total equity		141,687			139,244		137,916		134,943		127,889
Capital ratios:
Total equity to assets		10.78	%		10.67		10.95		10.84		10.16
Risk-based capital (5):
Tier 1 capital		11.33			11.26		11.69		11.50		11.16
Total capital		14.77			14.86		15.41		15.30		15.01
Tier 1 leverage (5)		9.03			8.97		9.43		9.27		9.19
Tier 1 common equity (6)		9.46			9.34		9.15		8.93		8.30
Common shares outstanding		5,262.6			5,272.2		5,278.2		5,300.9		5,262.3
Book value per common share	$	24.64			24.13		23.84		23.18		22.49
Common stock price:
High		27.97			29.63		32.63		34.25		31.61
Low		22.61			22.58		25.26		29.82		23.37
Period end		27.56			24.12		28.06		31.71		30.99
Team members (active, full-time equivalent)		264,200			263,800		266,600		270,200		272,200

(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 December 31, 2011, ratios are preliminary.

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

19

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Dec. 31,				%			Year ended Dec. 31,				%
(in millions, except per share amounts)	2011		2010		Change			2011		2010		Change
Interest income
Trading assets	$	400		295		36	%	$	1,440		1,098		31	%
Securities available for sale		2,092		2,374		(12)			8,475		9,666		(12)
Mortgages held for sale		456		495		(8)			1,644		1,736		(5)
Loans held for sale		16		15		7			58		101		(43)
Loans		9,275		9,666		(4)			37,247		39,760		(6)
Other interest income		139		124		12			548		435		26
Total interest income		12,378		12,969		(5)			49,412		52,796		(6)
Interest expense
Deposits		507		662		(23)			2,275		2,832		(20)
Short-term borrowings		14		26		(46)			80		92		(13)
Long-term debt		885		1,153		(23)			3,978		4,888		(19)
Other interest expense		80		65		23			316		227		39
Total interest expense		1,486		1,906		(22)			6,649		8,039		(17)
Net interest income		10,892		11,063		(2)			42,763		44,757		(4)
Provision for credit losses		2,040		2,989		(32)			7,899		15,753		(50)
Net interest income after provision for credit losses		8,852		8,074		10			34,864		29,004		20
Noninterest income
Service charges on deposit accounts		1,091		1,035		5			4,280		4,916		(13)
Trust and investment fees		2,658		2,958		(10)			11,304		10,934		3
Card fees		680		941		(28)			3,653		3,652		-
Other fees		1,096		1,063		3			4,193		3,990		5
Mortgage banking		2,364		2,757		(14)			7,832		9,737		(20)
Insurance		466		564		(17)			1,960		2,126		(8)
Net gains from trading activities		430		532		(19)			1,014		1,648		(38)
Net gains (losses) on debt securities available for sale		48		(268)		NM			54		(324)		NM
Net gains from equity investments		61		317		(81)			1,482		779		90
Operating leases		60		79		(24)			524		815		(36)
Other		759		453		68			1,889		2,180		(13)
Total noninterest income		9,713		10,431		(7)			38,185		40,453		(6)
Noninterest expense
Salaries		3,706		3,513		5			14,462		13,869		4
Commission and incentive compensation		2,251		2,195		3			8,857		8,692		2
Employee benefits		1,012		1,192		(15)			4,348		4,651		(7)
Equipment		607		813		(25)			2,283		2,636		(13)
Net occupancy		759		750		1			3,011		3,030		(1)
Core deposit and other intangibles		467		549		(15)			1,880		2,199		(15)
FDIC and other deposit assessments		314		301		4			1,266		1,197		6
Other		3,392		4,027		(16)			13,286		14,182		(6)
Total noninterest expense		12,508		13,340		(6)			49,393		50,456		(2)
Income before income tax expense		6,057		5,165		17			23,656		19,001		24
Income tax expense		1,874		1,672		12			7,445		6,338		17
Net income before noncontrolling interests		4,183		3,493		20			16,211		12,663		28
Less: Net income from noncontrolling interests		76		79		(4)			342		301		14
Wells Fargo net income	$	4,107		3,414		20		$	15,869		12,362		28
Less: Preferred stock dividends and other		219		182		20			844		730		16
Wells Fargo net income applicable to common stock	$	3,888		3,232		20		$	15,025		11,632		29
Per share information
Earnings per common share	$	0.74		0.62		19		$	2.85		2.23		28
Diluted earnings per common share		0.73		0.61		20			2.82		2.21		28
Dividends declared per common share		0.12		0.05		140			0.48		0.20		140
Average common shares outstanding		5,271.9		5,256.2		-			5,278.1		5,226.8		1
Diluted average common shares outstanding		5,317.6		5,293.8		-			5,323.4		5,263.1		1

NM - Not meaningful

20

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

		Quarter ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions, except per share amounts)	2011		2011		2011		2011		2010
Interest income
Trading assets	$	400		343		347		350		295
Securities available for sale		2,092		2,053		2,166		2,164		2,374
Mortgages held for sale		456		389		362		437		495
Loans held for sale		16		13		17		12		15
Loans		9,275		9,224		9,361		9,387		9,666
Other interest income		139		156		131		122		124
Total interest income		12,378		12,178		12,384		12,472		12,969
Interest expense
Deposits		507		559		594		615		662
Short-term borrowings		14		20		20		26		26
Long-term debt		885		980		1,009		1,104		1,153
Other interest expense		80		77		83		76		65
Total interest expense		1,486		1,636		1,706		1,821		1,906
Net interest income		10,892		10,542		10,678		10,651		11,063
Provision for credit losses		2,040		1,811		1,838		2,210		2,989
Net interest income after provision for credit losses		8,852		8,731		8,840		8,441		8,074
Noninterest income
Service charges on deposit accounts		1,091		1,103		1,074		1,012		1,035
Trust and investment fees		2,658		2,786		2,944		2,916		2,958
Card fees		680		1,013		1,003		957		941
Other fees		1,096		1,085		1,023		989		1,063
Mortgage banking		2,364		1,833		1,619		2,016		2,757
Insurance		466		423		568		503		564
Net gains (losses) from trading activities		430		(442)		414		612		532
Net gains (losses) on debt securities available for sale		48		300		(128)		(166)		(268)
Net gains from equity investments		61		344		724		353		317
Operating leases		60		284		103		77		79
Other		759		357		364		409		453
Total noninterest income		9,713		9,086		9,708		9,678		10,431
Noninterest expense
Salaries		3,706		3,718		3,584		3,454		3,513
Commission and incentive compensation		2,251		2,088		2,171		2,347		2,195
Employee benefits		1,012		780		1,164		1,392		1,192
Equipment		607		516		528		632		813
Net occupancy		759		751		749		752		750
Core deposit and other intangibles		467		466		464		483		549
FDIC and other deposit assessments		314		332		315		305		301
Other		3,392		3,026		3,500		3,368		4,027
Total noninterest expense		12,508		11,677		12,475		12,733		13,340
Income before income tax expense		6,057		6,140		6,073		5,386		5,165
Income tax expense		1,874		1,998		2,001		1,572		1,672
Net income before noncontrolling interests		4,183		4,142		4,072		3,814		3,493
Less: Net income from noncontrolling interests		76		87		124		55		79
Wells Fargo net income	$	4,107		4,055		3,948		3,759		3,414
Less: Preferred stock dividends and other		219		216		220		189		182
Wells Fargo net income applicable to common stock	$	3,888		3,839		3,728		3,570		3,232
Per share information
Earnings per common share	$	0.74		0.73		0.70		0.68		0.62
Diluted earnings per common share		0.73		0.72		0.70		0.67		0.61
Dividends declared per common share		0.12		0.12		0.12		0.12		0.05
Average common shares outstanding		5,271.9		5,275.5		5,286.5		5,278.8		5,256.2
Diluted average common shares outstanding		5,317.6		5,319.2		5,331.7		5,333.1		5,293.8

21

Wells Fargo & Company and Subsidiaries

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

	Quarter ended December 31,
	2011								2010
(in millions)	Average balance			Yields/ rates			Interest income/ expense		Average balance			Yields/ rates			Interest income/ expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	67,968			0.52	%	$	89		72,029			0.40	%	$	74
Trading assets		45,521			3.57			407		33,871			3.56			302
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		8,708			0.99			22		1,597			2.80			12
Securities of U.S. states and political subdivisions		28,015			4.80			336		18,245			5.58			255
Mortgage-backed securities:
Federal agencies		84,332			3.68			776		76,674			4.48			859
Residential and commercial		34,717			7.05			612		31,060			10.95			850
Total mortgage-backed securities		119,049			4.66			1,388		107,734			6.35			1,709
Other debt and equity securities		47,278			4.38			518		35,492			6.15			545
Total securities available for sale		203,050			4.46			2,264		163,068			6.18			2,521
Mortgages held for sale (4)		44,842			4.07			456		45,063			4.39			495
Loans held for sale (4)		1,118			5.84			16		1,140			5.15			15
Loans:
Commercial:
Commercial and industrial		166,920			4.08			1,713		147,866			4.71			1,755
Real estate mortgage		105,219			4.26			1,130		99,188			3.85			961
Real estate construction		19,624			4.61			228		26,882			3.68			250
Lease financing		12,893			7.41			239		13,033			9.00			293
Foreign		38,740			2.39			233		30,986			3.57			279
Total commercial		343,396			4.10			3,543		317,955			4.42			3,538
Consumer:
Real estate 1-4 family first mortgage		229,746			4.74			2,727		228,802			5.06			2,901
Real estate 1-4 family junior lien mortgage		87,212			4.34			953		97,673			4.37			1,075
Credit card		21,933			12.96			711		21,888			13.44			736
Other revolving credit and installment		86,276			6.23			1,356		87,357			6.48			1,427
Total consumer		425,167			5.39			5,747		435,720			5.61			6,139
Total loans (4)		768,563			4.81			9,290		753,675			5.11			9,677
Other		4,671			4.32			50		5,338			3.93			51
Total earning assets	$	1,135,733			4.41	%	$	12,572		1,074,184			4.87	%	$	13,135
Funding sources
Deposits:
Interest-bearing checking	$	35,285			0.06	%	$	6		60,879			0.09	%	$	15
Market rate and other savings		485,127			0.14			175		431,171			0.25			266
Savings certificates		64,868			1.43			233		79,146			1.43			285
Other time deposits		12,868			1.85			60		13,438			2.00			67
Deposits in foreign offices		67,213			0.20			33		55,463			0.21			29
Total interest-bearing deposits		665,361			0.30			507		640,097			0.41			662
Short-term borrowings		48,742			0.14			17		50,609			0.24			31
Long-term debt		129,445			2.73			885		160,801			2.86			1,153
Other liabilities		12,166			2.60			80		8,258			3.13			65
Total interest-bearing liabilities		855,714			0.69			1,489		859,765			0.89			1,911
Portion of noninterest-bearing funding sources		280,019			-			-		214,419			-			-
Total funding sources	$	1,135,733			0.52			1,489		1,074,184			0.71			1,911
Net interest margin and net interest income on a taxable-equivalent basis (5)					3.89	%	$	11,083					4.16	%	$	11,224
Noninterest-earning assets
Cash and due from banks	$	17,718								18,016
Goodwill		25,057								24,832
Other		128,220								120,005
Total noninterest-earning assets	$	170,995								162,853
Noninterest-bearing funding sources
Deposits	$	246,692								197,943
Other liabilities		63,556								52,930
Total equity		140,766								126,399
Noninterest-bearing funding sources used to fund earning assets		(280,019	)							(214,419	)
Net noninterest-bearing funding sources	$	170,995								162,853
Total assets	$	1,306,728								1,237,037

(1) Our average prime rate was 3.25% for the quarters ended December 31, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.48% and 0.29% for the same quarters, respectively.

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

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost and the previously reported amounts for all periods prior to 2011 have been changed to amortized cost, the basis used to determine yield for those periods.

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

(5) Includes taxable-equivalent adjustments of $191 million and $161 million for December 31, 2011 and 2010, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 35% for the periods presented.

22

Wells Fargo & Company and Subsidiaries

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

	Year ended December 31,
	2011								2010
(in millions)	Average balance			Yields/ rates			Interest income/ expense		Average balance			Yields/ rates			Interest income/ expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	87,186			0.40	%	$	345		62,961			0.36	%	$	230
Trading assets		39,737			3.68			1,463		29,920			3.75			1,121
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		5,503			1.25			69		1,870			3.24			61
Securities of U.S. states and political subdivisions		24,035			5.09			1,223		16,089			6.09			980
Mortgage-backed securities:
Federal agencies		74,665			4.36			3,257		71,953			5.14			3,697
Residential and commercial		31,902			8.20			2,617		31,815			10.67			3,396
Total mortgage-backed securities		106,567			5.51			5,874		103,768			6.84			7,093
Other debt and equity securities		38,625			5.03			1,941		32,611			6.45			2,102
Total securities available for sale		174,730			5.21			9,107		154,338			6.63			10,236
Mortgages held for sale (4)		37,232			4.42			1,644		36,716			4.73			1,736
Loans held for sale (4)		1,104			5.25			58		3,773			2.67			101
Loans:
Commercial:
Commercial and industrial		157,608			4.37			6,894		149,576			4.80			7,186
Real estate mortgage		102,236			4.07			4,163		98,497			3.89			3,836
Real estate construction		21,592			4.88			1,055		31,286			3.36			1,051
Lease financing		12,944			7.54			976		13,451			9.21			1,239
Foreign		36,768			2.56			941		29,726			3.49			1,037
Total commercial		331,148			4.24			14,029		322,536			4.45			14,349
Consumer:
Real estate 1-4 family first mortgage		226,980			4.89			11,090		235,568			5.18			12,206
Real estate 1-4 family junior lien mortgage		90,705			4.33			3,926		101,537			4.45			4,519
Credit card		21,463			13.02			2,794		22,375			13.35			2,987
Other revolving credit and installment		86,848			6.29			5,463		88,585			6.49			5,747
Total consumer		425,996			5.46			23,273		448,065			5.68			25,459
Total loans (4)		757,144			4.93			37,302		770,601			5.17			39,808
Other		4,929			4.12			203		5,849			3.56			207
Total earning assets	$	1,102,062			4.55	%	$	50,122		1,064,158			5.02	%	$	53,439
Funding sources
Deposits:
Interest-bearing checking	$	47,705			0.08	%	$	40		60,941			0.12	%	$	72
Market rate and other savings		464,450			0.18			836		416,877			0.26			1,088
Savings certificates		69,711			1.43			995		87,133			1.43			1,247
Other time deposits		13,126			2.04			268		14,654			2.07			302
Deposits in foreign offices		61,566			0.22			136		55,097			0.22			123
Total interest-bearing deposits		656,558			0.35			2,275		634,702			0.45			2,832
Short-term borrowings		51,781			0.18			94		46,824			0.22			106
Long-term debt		141,079			2.82			3,978		185,426			2.64			4,888
Other liabilities		10,955			2.88			316		6,863			3.31			227
Total interest-bearing liabilities		860,373			0.77			6,663		873,815			0.92			8,053
Portion of noninterest-bearing funding sources		241,689			-			-		190,343			-			-
Total funding sources	$	1,102,062			0.61			6,663		1,064,158			0.76			8,053
Net interest margin and net interest income on a taxable-equivalent basis (5)					3.94	%	$	43,459					4.26	%	$	45,386
Noninterest-earning assets
Cash and due from banks	$	17,388								17,618
Goodwill		24,904								24,824
Other		125,911								120,338
Total noninterest-earning assets	$	168,203								162,780
Noninterest-bearing funding sources
Deposits	$	215,242								183,008
Other liabilities		57,399								47,877
Total equity		137,251								122,238
Noninterest-bearing funding sources used to fund earning assets		(241,689	)							(190,343	)
Net noninterest-bearing funding sources	$	168,203								162,780
Total assets	$	1,270,265								1,226,938

(1) Our average prime rate was 3.25% for the years ended December 31, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.34% for the same periods.

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

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost and the previously reported amounts for all periods prior to 2011 have been changed to amortized cost, the basis used to determine yield for those periods.

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

(5) Includes taxable-equivalent adjustments of $696 million and $629 million for December 31, 2011 and 2010, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

23

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME

	Quarter ended Dec. 31,				%			Year ended Dec. 31,				%
(in millions)	2011		2010		Change			2011		2010		Change
Service charges on deposit accounts	$	1,091		1,035		5	%	$	4,280		4,916		(13)	%
Trust and investment fees:
Trust, investment and IRA fees		1,000		1,030		(3)			4,099		4,038		2
Commissions and all other fees		1,658		1,928		(14)			7,205		6,896		4
Total trust and investment fees		2,658		2,958		(10	)		11,304		10,934		3
Card fees		680		941		(28)			3,653		3,652		-
Other fees:
Cash network fees		109		74		47			389		260		50
Charges and fees on loans		402		446		(10)			1,641		1,690		(3)
Processing and all other fees		585		543		8			2,163		2,040		6
Total other fees		1,096		1,063		3			4,193		3,990		5
Mortgage banking:
Servicing income, net		493		240		105			3,266		3,340		(2)
Net gains on mortgage loan origination/sales activities		1,871		2,517		(26)			4,566		6,397		(29)
Total mortgage banking		2,364		2,757		(14)			7,832		9,737		(20)
Insurance		466		564		(17)			1,960		2,126		(8)
Net gains (losses) from trading activities		430		532		(19)			1,014		1,648		(38)
Net gains (losses) on debt securities available for sale		48		(268)		NM			54		(324)		NM
Net gains from equity investments		61		317		(81)			1,482		779		90
Operating leases		60		79		(24)			524		815		(36)
All other		759		453		68			1,889		2,180		(13)
Total	$	9,713		10,431		(7)		$	38,185		40,453		(6)
NM - Not meaningful NONINTEREST EXPENSE
	Quarter ended Dec. 31,				%			Year ended Dec. 31,				%
(in millions)	2011		2010		Change			2011		2010		Change
Salaries	$	3,706		3,513		5	%	$	14,462		13,869		4	%
Commission and incentive compensation		2,251		2,195		3			8,857		8,692		2
Employee benefits		1,012		1,192		(15)			4,348		4,651		(7)
Equipment		607		813		(25)			2,283		2,636		(13)
Net occupancy		759		750		1			3,011		3,030		(1)
Core deposit and other intangibles		467		549		(15)			1,880		2,199		(15)
FDIC and other deposit assessments		314		301		4			1,266		1,197		6
Outside professional services		813		781		4			2,692		2,370		14
Contract services		356		481		(26)			1,407		1,642		(14)
Foreclosed assets		370		452		(18)			1,354		1,537		(12)
Operating losses		163		193		(16)			1,261		1,258		-
Postage, stationery and supplies		231		239		(3)			942		944		-
Outside data processing		257		235		9			935		1,046		(11)
Travel and entertainment		212		221		(4)			821		783		5
Advertising and promotion		166		192		(14)			607		630		(4)
Telecommunications		129		151		(15)			523		596		(12)
Insurance		87		90		(3)			515		464		11
Operating leases		28		24		17			112		109		3
All other		580		968		(40)			2,117		2,803		(24)
Total	$	12,508		13,340		(6)		$	49,393		50,456		(2)

24

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME

	Quarter ended
(in millions)	Dec. 31, 2011		Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
Service charges on deposit accounts	$	1,091		1,103		1,074		1,012		1,035
Trust and investment fees:
Trust, investment and IRA fees		1,000		1,019		1,020		1,060		1,030
Commissions and all other fees		1,658		1,767		1,924		1,856		1,928
Total trust and investment fees		2,658		2,786		2,944		2,916		2,958
Card fees		680		1,013		1,003		957		941
Other fees:
Cash network fees		109		105		94		81		74
Charges and fees on loans		402		438		404		397		446
Processing and all other fees		585		542		525		511		543
Total other fees		1,096		1,085		1,023		989		1,063
Mortgage banking:
Servicing income, net		493		1,030		877		866		240
Net gains on mortgage loan origination/sales activities		1,871		803		742		1,150		2,517
Total mortgage banking		2,364		1,833		1,619		2,016		2,757
Insurance		466		423		568		503		564
Net gains (losses) from trading activities		430		(442)		414		612		532
Net gains (losses) on debt securities available for sale		48		300		(128)		(166)		(268)
Net gains from equity investments		61		344		724		353		317
Operating leases		60		284		103		77		79
All other		759		357		364		409		453
Total	$	9,713		9,086		9,708		9,678		10,431
FIVE QUARTER NONINTEREST EXPENSE
	Quarter ended
(in millions)	Dec. 31, 2011		Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
Salaries	$	3,706		3,718		3,584		3,454		3,513
Commission and incentive compensation		2,251		2,088		2,171		2,347		2,195
Employee benefits		1,012		780		1,164		1,392		1,192
Equipment		607		516		528		632		813
Net occupancy		759		751		749		752		750
Core deposit and other intangibles		467		466		464		483		549
FDIC and other deposit assessments		314		332		315		305		301
Outside professional services		813		640		659		580		781
Contract services		356		341		341		369		481
Foreclosed assets		370		271		305		408		452
Operating losses		163		198		428		472		193
Postage, stationery and supplies		231		240		236		235		239
Outside data processing		257		226		232		220		235
Travel and entertainment		212		198		205		206		221
Advertising and promotion		166		159		166		116		192
Telecommunications		129		128		132		134		151
Insurance		87		94		201		133		90
Operating leases		28		29		31		24		24
All other		580		502		564		471		968
Total	$	12,508		11,677		12,475		12,733		13,340

25

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

	December 31,				%
(in millions, except shares)	2011		2010		Change
Assets
Cash and due from banks	$	19,440		16,044		21	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		44,367		80,637		(45)
Trading assets		77,814		51,414		51
Securities available for sale		222,613		172,654		29
Mortgages held for sale (includes $44,791 and $47,531 carried at fair value)		48,357		51,763		(7)
Loans held for sale (includes $1,176 and $873 carried at fair value)		1,338		1,290		4
Loans (includes $5,916 and $309 carried at fair value)		769,631		757,267		2
Allowance for loan losses		(19,372)		(23,022)		(16)
Net loans		750,259		734,245		2
Mortgage servicing rights:
Measured at fair value		12,603		14,467		(13)
Amortized		1,408		1,419		(1)
Premises and equipment, net		9,531		9,644		(1)
Goodwill		25,115		24,770		1
Other assets		101,022		99,781		1
Total assets	$	1,313,867		1,258,128		4
Liabilities
Noninterest-bearing deposits	$	244,003		191,256		28
Interest-bearing deposits		676,067		656,686		3
Total deposits		920,070		847,942		9
Short-term borrowings		49,091		55,401		(11)
Accrued expenses and other liabilities		77,665		69,913		11
Long-term debt (includes $0 and $306 carried at fair value)		125,354		156,983		(20)
Total liabilities		1,172,180		1,130,239		4
Equity
Wells Fargo stockholders’ equity:
Preferred stock		11,431		8,689		32
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,358,522,061 and 5,272,414,622 shares		8,931		8,787		2
Additional paid-in capital		55,957		53,426		5
Retained earnings		64,385		51,918		24
Cumulative other comprehensive income		3,207		4,738		(32)
Treasury stock – 95,910,425 shares and 10,131,394 shares		(2,744)		(487)		463
Unearned ESOP shares		(926)		(663)		40
Total Wells Fargo stockholders’ equity		140,241		126,408		11
Noncontrolling interests		1,446		1,481		(2)
Total equity		141,687		127,889		11
Total liabilities and equity	$	1,313,867		1,258,128		4

26

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET

(in millions)	Dec. 31, 2011		Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
Assets
Cash and due from banks	$	19,440		18,314		24,059		16,978		16,044
Federal funds sold, securities purchased under resale agreements and other short-term investments		44,367		89,804		88,406		93,041		80,637
Trading assets		77,814		57,786		54,770		57,890		51,414
Securities available for sale		222,613		207,176		186,298		167,906		172,654
Mortgages held for sale		48,357		42,704		31,254		33,121		51,763
Loans held for sale		1,338		743		1,512		1,428		1,290
Loans		769,631		760,106		751,921		751,155		757,267
Allowance for loan losses		(19,372)		(20,039)		(20,893)		(21,983)		(23,022)
Net loans		750,259		740,067		731,028		729,172		734,245
Mortgage servicing rights:
Measured at fair value		12,603		12,372		14,778		15,648		14,467
Amortized		1,408		1,397		1,422		1,423		1,419
Premises and equipment, net		9,531		9,607		9,613		9,545		9,644
Goodwill		25,115		25,038		24,776		24,777		24,770
Other assets		101,022		99,937		91,818		93,737		99,781
Total assets	$	1,313,867		1,304,945		1,259,734		1,244,666		1,258,128
Liabilities
Noninterest-bearing deposits	$	244,003		229,863		202,143		190,959		191,256
Interest-bearing deposits		676,067		665,565		651,492		646,703		656,686
Total deposits		920,070		895,428		853,635		837,662		847,942
Short-term borrowings		49,091		50,775		53,881		54,737		55,401
Accrued expenses and other liabilities		77,665		86,284		71,430		68,721		69,913
Long-term debt		125,354		133,214		142,872		148,603		156,983
Total liabilities		1,172,180		1,165,701		1,121,818		1,109,723		1,130,239
Equity
Wells Fargo stockholders’ equity:
Preferred stock		11,431		11,566		11,730		11,897		8,689
Common stock		8,931		8,902		8,876		8,854		8,787
Additional paid-in capital		55,957		55,495		55,226		54,815		53,426
Retained earnings		64,385		61,135		57,942		54,855		51,918
Cumulative other comprehensive income		3,207		3,828		5,422		5,021		4,738
Treasury stock		(2,744)		(2,087)		(1,546)		(541)		(487)
Unearned ESOP shares		(926)		(1,071)		(1,249)		(1,430)		(663)
Total Wells Fargo stockholders’ equity		140,241		137,768		136,401		133,471		126,408
Noncontrolling interests		1,446		1,476		1,515		1,472		1,481
Total equity		141,687		139,244		137,916		134,943		127,889
Total liabilities and equity	$	1,313,867		1,304,945		1,259,734		1,244,666		1,258,128

27

Wells Fargo & Company and Subsidiaries

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

	Quarter ended
	Dec. 31, 2011						Sept. 30, 2011						June 30, 2011						Mar. 31, 2011						Dec. 31, 2010
($ in billions)	Average balance			Yields/ rates			Average balance			Yields/ rates			Average balance			Yields/ rates			Average balance			Yields/ rates			Average balance			Yields/ rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	68.0			0.52	%	$	98.9			0.42	%	$	98.5			0.32	%	$	83.4			0.35	%	$	72.0			0.40	%
Trading assets		45.5			3.57			37.9			3.67			38.0			3.71			37.4			3.81			33.9			3.56
Securities available for sale (2):
Securities of U.S. Treasury and federal agencies		8.7			0.99			9.6			1.02			2.0			2.33			1.6			2.87			1.6			2.80
Securities of U.S. states and political subdivisions		28.0			4.80			25.6			4.93			22.5			5.35			19.9			5.45			18.3			5.58
Mortgage-backed securities:
Federal agencies		84.3			3.68			72.8			4.41			70.9			4.76			70.4			4.72			76.7			4.48
Residential and commercial		34.7			7.05			32.6			7.46			30.0			8.86			30.2			9.68			31.0			10.95
Total mortgage-backed securities		119.0			4.66			105.4			5.36			100.9			5.98			100.6			6.21			107.7			6.35
Other debt and equity securities		47.3			4.38			38.9			4.69			34.5			5.81			33.6			5.55			35.5			6.15
Total securities available for sale		203.0			4.46			179.5			4.92			159.9			5.81			155.7			5.94			163.1			6.18
Mortgages held for sale		44.8			4.07			34.6			4.49			30.7			4.73			38.7			4.51			45.1			4.39
Loans held for sale		1.1			5.84			1.0			5.21			1.4			5.05			1.0			4.88			1.1			5.15
Loans:
Commercial:
Commercial and industrial		166.9			4.08			159.6			4.22			153.6			4.60			150.0			4.65			147.9			4.71
Real estate mortgage		105.2			4.26			102.4			3.93			101.5			4.16			99.9			3.92			99.2			3.85
Real estate construction		19.6			4.61			20.5			6.12			22.0			4.64			24.3			4.26			26.9			3.68
Lease financing		12.9			7.41			13.0			7.21			12.9			7.72			13.0			7.83			13.0			9.00
Foreign		38.8			2.39			38.2			2.42			36.4			2.65			33.6			2.83			31.0			3.57
Total commercial		343.4			4.10			333.7			4.16			326.4			4.37			320.8			4.33			318.0			4.42
Consumer:
Real estate 1-4 family first mortgage		229.8			4.74			223.8			4.83			224.9			4.97			229.6			5.01			228.8			5.06
Real estate 1-4 family junior lien mortgage		87.2			4.34			89.1			4.37			91.9			4.25			94.7			4.35			97.7			4.37
Credit card		21.9			12.96			21.5			12.96			21.0			12.97			21.5			13.18			21.9			13.44
Other revolving credit and installment		86.3			6.23			86.5			6.25			87.1			6.32			87.5			6.36			87.3			6.48
Total consumer		425.2			5.39			420.9			5.44			424.9			5.48			433.3			5.54			435.7			5.61
Total loans		768.6			4.81			754.6			4.87			751.3			5.00			754.1			5.03			753.7			5.11
Other		4.7			4.32			4.9			4.18			5.0			4.10			5.2			3.90			5.3			3.93
Total earning assets	$	1,135.7			4.41	%	$	1,111.4			4.43	%	$	1,084.8			4.64	%	$	1,075.5			4.73	%	$	1,074.2			4.87	%
Funding sources
Deposits:
Interest-bearing checking	$	35.3			0.06	%	$	44.0			0.07	%	$	53.3			0.09	%	$	58.5			0.10	%	$	60.9			0.09	%
Market rate and other savings		485.1			0.14			473.4			0.17			455.1			0.20			443.6			0.22			431.2			0.25
Savings certificates		64.9			1.43			67.6			1.47			72.1			1.42			74.4			1.39			79.1			1.43
Other time deposits		12.9			1.85			12.8			2.02			13.0			2.03			13.8			2.24			13.4			2.00
Deposits in foreign offices		67.2			0.20			63.5			0.23			57.9			0.23			57.5			0.23			55.5			0.21
Total interest-bearing deposits		665.4			0.30			661.3			0.34			651.4			0.37			647.8			0.38			640.1			0.41
Short-term borrowings		48.7			0.14			50.4			0.18			53.3			0.18			54.8			0.22			50.6			0.24
Long-term debt		129.4			2.73			139.5			2.81			145.5			2.78			150.1			2.95			160.8			2.86
Other liabilities		12.2			2.60			11.2			2.75			11.0			3.03			9.5			3.24			8.3			3.13
Total interest-bearing liabilities		855.7			0.69			862.4			0.76			861.2			0.80			862.2			0.85			859.8			0.89
Portion of noninterest-bearing funding sources		280.0			-			249.0			-			223.6			-			213.3			-			214.4			-
Total funding sources	$	1,135.7			0.52		$	1,111.4			0.59		$	1,084.8			0.63		$	1,075.5			0.68		$	1,074.2			0.71
Net interest margin on a taxable-equivalent basis					3.89	%					3.84	%					4.01	%					4.05	%					4.16	%
Noninterest-earning assets
Cash and due from banks	$	17.7						17.1						17.4						17.4						18.0
Goodwill		25.1						25.0						24.8						24.8						24.8
Other		128.2						127.9						123.9						123.5						120.0
Total noninterest-earnings assets	$	171.0						170.0						166.1						165.7						162.8
Noninterest-bearing funding sources
Deposits	$	246.7						221.2						199.3						193.1						197.9
Other liabilities		63.5						57.5						53.2						55.3						52.9
Total equity		140.8						140.3						137.2						130.6						126.4
Noninterest-bearing funding sources used to fund earning assets		(280.0	)					(249.0	)					(223.6	)					(213.3	)					(214.4	)
Net noninterest-bearing funding sources	$	171.0						170.0						166.1						165.7						162.8
Total assets	$	1,306.7						1,281.4						1,250.9						1,241.2						1,237.0

(1) Our average prime rate was 3.25% for quarters ended December 31, September 30, June 30 and March 31, 2011, and December 31 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.48%, 0.30%, 0.26%, 0.31% and 0.29% for the same quarters, respectively.

(2) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost and the previously reported amounts for all periods prior to December 31, 2011, have been changed to amortized cost, the basis used to determine yield for those periods.

28

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SECURITIES AVAILABLE FOR SALE

(in millions)	Dec. 31, 2011		Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
Securities of U.S. Treasury and federal agencies	$	6,968		13,813		10,523		1,507		1,604
Securities of U.S. states and political subdivisions		32,593		26,970		24,412		21,159		18,654
Mortgage-backed securities:
Federal agencies		96,754		84,716		78,338		75,552		82,037
Residential and commercial		35,986		35,159		33,088		32,728		33,757
Total mortgage-backed securities		132,740		119,875		111,426		108,280		115,794
Other debt securities		46,895		42,925		35,582		31,952		31,413
Total debt securities available for sale		219,196		203,583		181,943		162,898		167,465
Marketable equity securities		3,417		3,593		4,355		5,008		5,189
Total securities available for sale	$	222,613		207,176		186,298		167,906		172,654

FIVE QUARTER LOANS

(in millions)	Dec. 31, 2011		Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
Commercial:
Commercial and industrial	$	167,216		164,510		157,095		150,857		151,284
Real estate mortgage		105,975		104,363		101,458		101,084		99,435
Real estate construction		19,382		19,719		21,374		22,868		25,333
Lease financing		13,117		12,852		12,907		12,937		13,094
Foreign (1)		39,760		38,390		37,855		35,476		32,912
Total commercial		345,450		339,834		330,689		323,222		322,058
Consumer:
Real estate 1-4 family first mortgage		228,894		223,758		222,874		226,509		230,235
Real estate 1-4 family junior lien mortgage		85,991		88,264		89,947		93,041		96,149
Credit card		22,836		21,650		21,191		20,996		22,260
Other revolving credit and installment		86,460		86,600		87,220		87,387		86,565
Total consumer		424,181		420,272		421,232		427,933		435,209
Total loans (net of unearned income) (2)	$	769,631		760,106		751,921		751,155		757,267

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

(2) Includes $36.7 billion, $37.2 billion, $38.7 billion, $40.0 billion and $41.4 billion of purchased credit-impaired (PCI) loans at December 31, September 30, June 30 and March 31, 2011, and December 31, 2010, respectively. See table on page 31 for detail of PCI loans.

29

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)

(in millions)	Dec. 31, 2011			Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
Nonaccrual loans:
Commercial:
Commercial and industrial	$	2,142			2,128		2,393		2,653		3,213
Real estate mortgage		4,085			4,429		4,691		5,239		5,227
Real estate construction		1,890			1,915		2,043		2,239		2,676
Lease financing		53			71		79		95		108
Foreign		47			68		59		86		127
Total commercial		8,217			8,611		9,265		10,312		11,351
Consumer:
Real estate 1-4 family first mortgage		10,913			11,024		11,427		12,143		12,289
Real estate 1-4 family junior lien mortgage		1,975			2,035		2,098		2,235		2,302
Other revolving credit and installment		199			230		255		275		300
Total consumer		13,087			13,289		13,780		14,653		14,891
Total nonaccrual loans (1)(2)(3)		21,304			21,900		23,045		24,965		26,242
As a percentage of total loans		2.77	%		2.88		3.06		3.32		3.47
Foreclosed assets:
GNMA (4)	$	1,319			1,336		1,320		1,457		1,479
Non-GNMA		3,342			3,608		3,541		4,055		4,530
Total foreclosed assets		4,661			4,944		4,861		5,512		6,009
Total nonperforming assets	$	25,965			26,844		27,906		30,477		32,251
As a percentage of total loans		3.37	%		3.53		3.71		4.06		4.26

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

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

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

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

30

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING

(in millions)	Dec. 31, 2011		Sept. 30,  2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
Total (excluding PCI)(1):	$	22,569		19,639		17,318		17,901		18,488
Less: FHA insured / VA guaranteed (2)		19,240		16,498		14,474		14,353		14,733
Less: Student loans guaranteed under the FFELP (3)		1,281		1,212		1,014		1,120		1,106
Total, not government insured/guaranteed	$	2,048		1,929		1,830		2,428		2,649
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	153		108		110		338		308
Real estate mortgage		256		207		137		177		104
Real estate construction		89		57		86		156		193
Foreign		6		11		12		16		22
Total commercial		504		383		345		687		627
Consumer:
Real estate 1-4 family first mortgage (4)		781		819		728		858		941
Real estate 1-4 family junior lien mortgage (4)		279		255		286		325		366
Credit card		346		328		334		413		516
Other revolving credit and installment		138		144		137		145		199
Total consumer		1,544		1,546		1,485		1,741		2,022
Total, not government insured/guaranteed	$	2,048		1,929		1,830		2,428		2,649

(1) The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $8.7 billion, $8.9 billion, $9.8 billion, $10.8 billion and $11.6 billion at December 31, September 30, June 30 and March 31, 2011, and December 31, 2010, respectively. These amounts are excluded from the above table as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

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

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

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

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 predominately represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.

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

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

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

			December 31,
(in millions)	2011		2010		2009		2008
Commercial:
Commercial and industrial	$	399		718		1,911		4,580
Real estate mortgage		3,270		2,855		4,137		5,803
Real estate construction		1,745		2,949		5,207		6,462
Foreign		1,353		1,413		1,733		1,859
Total commercial		6,767		7,935		12,988		18,704
Consumer:
Real estate 1-4 family first mortgage		29,746		33,245		38,386		39,214
Real estate 1-4 family junior lien mortgage		206		250		331		728
Other revolving credit and installment		-		-		-		151
Total consumer		29,952		33,495		38,717		40,093
Total PCI loans (carrying value)	$	36,719		41,430		51,705		58,797

32

Wells Fargo & Company and Subsidiaries

CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS

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

(in millions)	Commercial		Pick-a-Pay		Other consumer		Total
Balance, December 31, 2008	$	10,410		26,485		4,069		40,964
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(330)		-		-		(330)
Loans resolved by sales to third parties (2)		(86)		-		(85)		(171)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(138)		(27)		(276)		(441)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(4,853)		(10,218)		(2,086)		(17,157)
Balance, December 31, 2009		5,003		16,240		1,622		22,865
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(817)		-		-		(817)
Loans resolved by sales to third parties (2)		(172)		-		-		(172)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(726)		(2,356)		(317)		(3,399)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(1,698)		(2,959)		(391)		(5,048)
Balance, December 31, 2010		1,590		10,925		914		13,429
Addition of nonaccretable difference due to acquisitions		188		-		-		188
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(198)		-		-		(198)
Loans resolved by sales to third parties (2)		(41)		-		-		(41)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(352)		-		(21)		(373)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(258)		(1,799)		(241)		(2,298)
Balance, December 31, 2011	$	929		9,126		652		10,707
Balance, September 30, 2011	$	958		9,643		686		11,287
Addition of nonaccretable difference due to acquisitions		171		-		-		171
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(44)		-		-		(44)
Loans resolved by sales to third parties (2)		(11)		-		-		(11)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(55)		-		-		(55)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(90)		(517)		(34)		(641)
Balance, December 31, 2011	$	929		9,126		652		10,707

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

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

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

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

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

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

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

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

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

		Quarter ended     Dec. 31,		Year ended Dec. 31,
(in millions)		2011		2011		2010		2009
Total, beginning of period	$		16,896		16,714		14,559		10,447
Addition of accretable yield due to acquisitions			124		128		-		-
Accretion into interest income (1)			(551)		(2,206)		(2,392)		(2,601)
Accretion into noninterest income due to sales (2)			(1)		(189)		(43)		(5)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows			55		373		3,399		441
Changes in expected cash flows that do not affect nonaccretable difference (3)			(562)		1,141		1,191		6,277
Total, end of period	$		15,961		15,961		16,714		14,559

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

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

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

CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES

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

(in millions)	Commercial		Pick-a-Pay		Other consumer		Total
Balance, December 31, 2008	$	-		-		-		-
Provision for losses due to credit deterioration		850		-		3		853
Charge-offs		(520)		-		-		(520)
Balance, December 31, 2009		330		-		3		333
Provision for losses due to credit deterioration		712		-		59		771
Charge-offs		(776)		-		(30)		(806)
Balance, December 31, 2010		266		-		32		298
Provision for losses due to credit deterioration		106		-		54		160
Charge-offs		(207)		-		(20)		(227)
Balance, December 31, 2011	$	165		-		66		231
Balance, September 30, 2011	$	242		-		60		302
Provision for losses due to credit deterioration		(26)		-		10		(16)
Charge-offs		(51)		-		(4)		(55)
Balance, December 31, 2011	$	165		-		66		231

34

Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)

	December 31, 2011
	PCI loans										All other loans
(in millions)	Adjusted unpaid principal balance (2)		Current LTV ratio (3)			Carrying value (4)		Ratio of carrying value to current value (5)			Carrying value (4)		Ratio of carrying value to current value (5)
California	$	25,036		121	%	$	19,269		93	%	$	17,870		86	%
Florida		3,325		122			2,562		89			3,760		100
New Jersey		1,336		92			1,224		84			2,321		79
New York		757		95			685		84			1,013		82
Texas		340		78			312		72			1,487		64
Other states		6,111		110			5,004		89			10,145		87
Total Pick-a-Pay loans	$	36,905				$	29,056				$	36,596

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

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

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

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

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

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Wells Fargo & Company and Subsidiaries

NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS

(in millions)	Dec.31, 2011		Sept.30, 2011		June 30, 2011		Mar.31, 2011		Dec.31, 2010
Commercial:
Legacy Wachovia commercial and industrial, commercial real estate and foreign PCI loans (1)	$	5,695		6,321		7,016		7,507		7,935
Total commercial		5,695		6,321		7,016		7,507		7,935
Consumer:
Pick-a-Pay mortgage (1)		65,652		67,361		69,587		71,506		74,815
Liquidating home equity		5,710		5,982		6,266		6,568		6,904
Legacy Wells Fargo Financial indirect auto		2,455		3,101		3,881		4,941		6,002
Legacy Wells Fargo Financial debt consolidation		16,542		17,186		17,730		18,344		19,020
Education Finance - government guaranteed (2)		15,376		15,611		16,295		16,907		17,510
Legacy Wachovia other PCI loans (1)		896		947		978		1,048		1,118
Total consumer		106,631		110,188		114,737		119,314		125,369
Total non-strategic and liquidating loan portfolios	$	112,326		116,509		121,753		126,821		133,304

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

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

HOME EQUITY PORTFOLIOS (1)

	Outstanding balance				% of loans two payments or more past due					Loss rate (annualized) Quarter ended
		December 31,				December 31,					December 31,
(in millions)	2011		2010		2011			2010		2011		2010
Core portfolio (2)
California	$	25,555		27,850		3.03	%		3.30		3.42		3.95
Florida		10,870		12,036		4.99			5.46		4.30		5.84
New Jersey		7,973		8,629		3.73			3.44		2.22		1.83
Virginia		5,248		5,667		2.15			2.33		1.31		1.70
Pennsylvania		5,071		5,432		2.82			2.48		1.41		1.11
Other		46,165		50,976		2.79			2.83		2.50		2.86
Total		100,882		110,590		3.13			3.24		2.79		3.24
Liquidating portfolio
California		2,024		2,555		5.50			6.66		11.93		13.48
Florida		265		330		7.02			8.85		9.71		10.59
Arizona		116		149		6.64			6.91		17.54		18.45
Texas		97		125		0.93			2.02		1.57		2.95
Minnesota		75		91		2.83			5.39		8.13		8.73
Other		3,133		3,654		4.13			4.53		7.12		6.46
Total		5,710		6,904		4.73			5.54		9.09		9.49
Total core and liquidating portfolios	$	106,592		117,494		3.22			3.37		3.13		3.61

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

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

36

Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES

	Quarter ended Dec. 31,					Year ended Dec. 31,
(in millions)	2011			2010		2011		2010
Balance, beginning of period	$	20,372			24,372		23,463		25,031
Provision for credit losses		2,040			2,989		7,899		15,753
Interest income on certain impaired loans (1)		(86)			(63)		(332)		(266)
Loan charge-offs:
Commercial:
Commercial and industrial		(416)			(610)		(1,598)		(2,775)
Real estate mortgage		(153)			(270)		(636)		(1,151)
Real estate construction		(35)			(199)		(351)		(1,189)
Lease financing		(8)			(26)		(38)		(120)
Foreign		(52)			(50)		(173)		(198)
Total commercial		(664)			(1,155)		(2,796)		(5,433)
Consumer:
Real estate 1-4 family first mortgage		(904)			(1,199)		(3,883)		(4,900)
Real estate 1-4 family junior lien mortgage		(856)			(1,059)		(3,763)		(4,934)
Credit card		(303)			(505)		(1,449)		(2,396)
Other revolving credit and installment		(412)			(573)		(1,724)		(2,437)
Total consumer		(2,475)			(3,336)		(10,819)		(14,667)
Total loan charge-offs		(3,139)			(4,491)		(13,615)		(20,100)
Loan recoveries:
Commercial:
Commercial and industrial		106			110		419		427
Real estate mortgage		36			36		143		68
Real estate construction		40			28		146		110
Lease financing		4			5		24		20
Foreign		7			22		45		53
Total commercial		193			201		777		678
Consumer:
Real estate 1-4 family first mortgage		60			175		405		522
Real estate 1-4 family junior lien mortgage		56			54		218		211
Credit card		47			53		251		218
Other revolving credit and installment		143			169		665		718
Total consumer		306			451		1,539		1,669
Total loan recoveries		499			652		2,316		2,347
Net loan charge-offs (2)		(2,640)			(3,839)		(11,299)		(17,753)
Allowances related to business combinations/other (3)		(18)			4		(63)		698
Balance, end of period	$	19,668			23,463		19,668		23,463
Components:
Allowance for loan losses	$	19,372			23,022		19,372		23,022
Allowance for unfunded credit commitments		296			441		296		441
Allowance for credit losses (4)	$	19,668			23,463		19,668		23,463
Net loan charge-offs (annualized) as a percentage of average total loans (2)		1.36	%		2.02		1.49		2.30
Allowance for loan losses as a percentage of total loans (4)		2.52			3.04		2.52		3.04
Allowance for credit losses as a percentage of total loans (4)		2.56			3.10		2.56		3.10

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

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

(3) Includes $693 million for the year ended December 31, 2010, related to the adoption of consolidation accounting guidance on January 1, 2010.

(4) The allowance for credit losses includes $231 million and $298 million at December 31, 2011 and 2010, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.

37

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES

	Quarter ended
(in millions)	Dec.31, 2011			Sept.30, 2011		June30, 2011		Mar.31, 2011		Dec.31, 2010
Balance, beginning of quarter	$	20,372			21,262		22,383		23,463		24,372
Provision for credit losses		2,040			1,811		1,838		2,210		2,989
Interest income on certain impaired loans (1)		(86)			(84)		(79)		(83)		(63)
Loan charge-offs:
Commercial:
Commercial and industrial		(416)			(349)		(365)		(468)		(610)
Real estate mortgage		(153)			(119)		(185)		(179)		(270)
Real estate construction		(35)			(98)		(99)		(119)		(199)
Lease financing		(8)			(10)		(7)		(13)		(26)
Foreign		(52)			(25)		(57)		(39)		(50)
Total commercial		(664)			(601)		(713)		(818)		(1,155)
Consumer:
Real estate 1-4 family first mortgage		(904)			(900)		(1,064)		(1,015)		(1,199)
Real estate 1-4 family junior lien mortgage		(856)			(893)		(968)		(1,046)		(1,059)
Credit card		(303)			(320)		(378)		(448)		(505)
Other revolving credit and installment		(412)			(421)		(391)		(500)		(573)
Total consumer		(2,475)			(2,534)		(2,801)		(3,009)		(3,336)
Total loan charge-offs		(3,139)			(3,135)		(3,514)		(3,827)		(4,491)
Loan recoveries:
Commercial:
Commercial and industrial		106			88		111		114		110
Real estate mortgage		36			23		57		27		36
Real estate construction		40			43		27		36		28
Lease financing		4			7		6		7		5
Foreign		7			17		10		11		22
Total commercial		193			178		211		195		201
Consumer:
Real estate 1-4 family first mortgage		60			79		155		111		175
Real estate 1-4 family junior lien mortgage		56			51		59		52		54
Credit card		47			54		84		66		53
Other revolving credit and installment		143			162		167		193		169
Total consumer		306			346		465		422		451
Total loan recoveries		499			524		676		617		652
Net loan charge-offs		(2,640)			(2,611)		(2,838)		(3,210)		(3,839)
Allowances related to business combinations/other		(18)			(6)		(42)		3		4
Balance, end of quarter	$	19,668			20,372		21,262		22,383		23,463
Components:
Allowance for loan losses	$	19,372			20,039		20,893		21,983		23,022
Allowance for unfunded credit commitments		296			333		369		400		441
Allowance for credit losses	$	19,668			20,372		21,262		22,383		23,463
Net loan charge-offs (annualized) as a percentage of average total loans		1.36	%		1.37		1.52		1.73		2.02
Allowance for loan losses as a percentage of:
Total loans		2.52			2.64		2.78		2.93		3.04
Nonaccrual loans		91			92		91		88		88
Nonaccrual loans and other nonperforming assets		75			75		75		72		71
Allowance for credit losses as a percentage of:
Total loans		2.56			2.68		2.83		2.98		3.10
Nonaccrual loans		92			93		92		90		89
Nonaccrual loans and other nonperforming assets		76			76		76		73		72

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

38

Wells Fargo & Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

	Year ended December 31,
(in millions)	2011		2010
Balance, beginning of period		$  127,889		114,359
Cumulative effect from change in accounting for VIEs (1)		-		183
Cumulative effect from change in accounting for embedded credit derivatives (2)		-		(28)
Wells Fargo net income		15,869		12,362
Wells Fargo other comprehensive income (loss), net of tax, related to:
Translation adjustments		(22)		45
Investment securities		(653)		1,525
Derivative instruments and hedging activities		(249)		89
Defined benefit pension plans		(607)		70
Common stock issued		1,296		1,375
Common stock repurchased (3)		(2,416)		(91)
Preferred stock released by ESOP		959		796
Preferred stock issued		2,501		-
Common stock warrants repurchased		(2)		(545)
Common stock dividends		(2,537)		(1,045)
Preferred stock dividends and other		(844)		(730)
Noncontrolling interests and other, net		503		(476)
Balance, end of period		$  141,687		127,889

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

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

(3) For the year ended December 31, 2011, includes $150 million related to a private forward repurchase transaction entered into in fourth quarter 2011 that will settle in first quarter 2012 for an estimated 6 million shares of common stock.

39

Wells Fargo & Company and Subsidiaries

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

(in billions)		Dec. 31, 2011			Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
Total equity		$	141.7			139.2		137.9		134.9		127.9
Noncontrolling interests			(1.5)			(1.5)		(1.5)		(1.5)		(1.5)
Total Wells Fargo stockholders’ equity			140.2			137.7		136.4		133.4		126.4
Adjustments:
Preferred equity			(10.6)			(10.6)		(10.6)		(10.6)		(8.1)
Goodwill and intangible assets (other than MSRs)			(34.0)			(34.4)		(34.6)		(35.1)		(35.5)
Applicable deferred taxes			3.8			4.0		4.1		4.2		4.3
MSRs over specified limitations			(0.8)			(0.7)		(0.9)		(0.9)		(0.9)
Cumulative other comprehensive income			(3.1)			(3.7)		(5.3)		(4.9)		(4.6)
Other			(0.4)			(0.4)		(0.3)		(0.1)		(0.3)
Tier 1 common equity	(A)	$	95.1			91.9		88.8		86.0		81.3
Total risk-weighted assets (2)	(B)	$	1,005.3			983.2		970.2		962.9		980.0
Tier 1 common equity to total risk-weighted assets	(A)/(B)		9.46	%		9.34		9.15		8.93		8.30

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

(2) Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets. The Company’s December 31, 2011, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $838.7 billion and derivative and off-balance sheet risk-weighted assets of $166.6 billion.

Wells Fargo & Company and Subsidiaries

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

(in billions)		Dec. 31, 2011
Tier 1 common equity under Basel I		$	95.1
Adjustments from Basel I to Basel III:
Cumulative other comprehensive income (2)			3.1
Other			0.3
Tier 1 common equity anticipated under Basel III	(C)		98.5
Total risk-weighted assets anticipated under Basel III (3)	(D)	$	1,314.6
Tier 1 common equity to total risk-weighted assets anticipated under Basel III	(C)/(D)		7.49	%

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

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

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

40

Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS (1)

	Community				Wholesale				Wealth, Brokerage								Consolidated
	Banking				Banking				and Retirement				Other (2)				Company
(income/expense in millions, average balances in billions)	2011		2010		2011		2010		2011		2010		2011		2010		2011		2010
Quarter ended Dec. 31,
Net interest income (3)	$	7,414		7,751		3,081		2,965		754		676		(357)		(329)		10,892		11,063
Provision for credit losses		2,031		2,785		32		195		20		113		(43)		(104)		2,040		2,989
Noninterest income		5,590		5,721		2,344		2,875		2,311		2,365		(532)		(530)		9,713		10,431
Noninterest expense		7,310		7,855		2,939		2,992		2,521		2,608		(262)		(115)		12,508		13,340
Income (loss) before income tax expense (benefit)		3,663		2,832		2,454		2,653		524		320		(584)		(640)		6,057		5,165
Income tax expense (benefit)		1,082		836		815		958		199		121		(222)		(243)		1,874		1,672
Net income (loss) before noncontrolling interests		2,581		1,996		1,639		1,695		325		199		(362)		(397)		4,183		3,493
Less: Net income (loss) from noncontrolling interests		78		72		(2)		5		-		2		-		-		76		79
Net income (loss) (4)	$	2,503		1,924		1,641		1,690		325		197		(362)		(397)		4,107		3,414
Average loans	$	493.9		514.1		264.8		229.6		42.7		43.0		(32.8)		(33.0)		768.6		753.7
Average assets		756.0		771.6		458.3		384.4		159.3		140.2		(66.9)		(59.2)		1,306.7		1,237.0
Average core deposits		568.3		544.4		223.2		185.1		136.6		121.5		(63.2)		(56.2)		864.9		794.8
Year ended Dec. 31,
Net interest income (3)	$	29,580		31,885		11,714		11,474		2,855		2,707		(1,386)		(1,309)		42,763		44,757
Provision (reversal of provision) for credit losses		8,001		13,807		(109)		1,920		170		334		(163)		(308)		7,899		15,753
Noninterest income		21,124		22,604		9,952		10,951		9,333		9,023		(2,224)		(2,125)		38,185		40,453
Noninterest expense		29,234		30,071		11,194		11,269		9,935		9,768		(970)		(652)		49,393		50,456
Income (loss) before income tax expense (benefit)		13,469		10,611		10,581		9,236		2,083		1,628		(2,477)		(2,474)		23,656		19,001
Income tax expense (benefit)		4,072		3,347		3,525		3,315		789		616		(941)		(940)		7,445		6,338
Net income (loss) before noncontrolling interests		9,397		7,264		7,056		5,921		1,294		1,012		(1,536)		(1,534)		16,211		12,663
Less: Net income from noncontrolling interests		317		274		19		20		6		7		-		-		342		301
Net income (loss) (4)	$	9,080		6,990		7,037		5,901		1,288		1,005		(1,536)		(1,534)		15,869		12,362
Average loans	$	498.1		530.1		249.1		230.5		43.0		43.0		(33.1)		(33.0)		757.1		770.6
Average assets		755.7		772.4		428.1		373.8		152.2		139.3		(65.7)		(58.6)		1,270.3		1,226.9
Average core deposits		556.2		536.4		202.1		170.0		130.4		121.2		(62.0)		(55.6)		826.7		772.0

(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. In first quarter 2010, we conformed certain funding and allocation methodologies of legacy Wachovia to those of Wells Fargo; in addition, amounts remaining in “Other” related to integration expense were revised to reflect only integration expense related to the Wachovia merger. In fourth quarter 2010, we realigned certain lending businesses into Wholesale Banking from Community Banking to reflect our previously announced restructuring of Wells Fargo Financial. In first quarter 2011, we realigned a private equity business into Wholesale Banking from Community Banking. Prior periods have been revised to reflect these changes.

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

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

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

41

Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)

	Quarter ended
(income/expense in millions, average balances in billions)	Dec. 31, 2011		Sept. 30, 2011		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010
COMMUNITY BANKING
Net interest income (2)	$	7,414		7,264		7,359		7,543		7,751
Provision for credit losses		2,031		1,978		1,927		2,065		2,785
Noninterest income		5,590		5,232		5,208		5,094		5,721
Noninterest expense		7,310		6,901		7,418		7,605		7,855
Income before income tax expense		3,663		3,617		3,222		2,967		2,832
Income tax expense		1,082		1,217		1,031		742		836
Net income before noncontrolling interests		2,581		2,400		2,191		2,225		1,996
Less: Net income from noncontrolling interests		78		85		104		50		72
Segment net income	$	2,503		2,315		2,087		2,175		1,924
Average loans	$	493.9		491.0		498.2		509.8		514.1
Average assets		756.0		754.4		752.5		759.9		771.6
Average core deposits		568.3		556.3		552.0		548.1		544.4
WHOLESALE BANKING
Net interest income (2)	$	3,081		2,910		2,968		2,755		2,965
Provision (reversal of provision) for credit losses		32		(178)		(97)		134		195
Noninterest income		2,344		2,240		2,663		2,705		2,875
Noninterest expense		2,939		2,689		2,766		2,800		2,992
Income before income tax expense		2,454		2,639		2,962		2,526		2,653
Income tax expense		815		826		1,012		872		958
Net income before noncontrolling interests		1,639		1,813		1,950		1,654		1,695
Less: Net income (loss) from noncontrolling interests		(2)		-		19		2		5
Segment net income	$	1,641		1,813		1,931		1,652		1,690
Average loans	$	264.8		253.4		243.1		234.7		229.6
Average assets		458.3		438.0		415.7		399.6		384.4
Average core deposits		223.2		209.3		190.6		184.8		185.1
WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	754		714		691		696		676
Provision for credit losses		20		48		61		41		113
Noninterest income		2,311		2,173		2,395		2,454		2,365
Noninterest expense		2,521		2,368		2,487		2,559		2,608
Income before income tax expense		524		471		538		550		320
Income tax expense		199		178		204		208		121
Net income before noncontrolling interests		325		293		334		342		199
Less: Net income from noncontrolling interests		-		2		1		3		2
Segment net income	$	325		291		333		339		197
Average loans	$	42.7		43.1		43.5		42.7		43.0
Average assets		159.3		155.1		147.7		146.5		140.2
Average core deposits		136.6		133.4		126.0		125.4		121.5
OTHER (3)
Net interest income (2)	$	(357)		(346)		(340)		(343)		(329)
Provision for credit losses		(43)		(37)		(53)		(30)		(104)
Noninterest income		(532)		(559)		(558)		(575)		(530)
Noninterest expense		(262)		(281)		(196)		(231)		(115)
Loss before income tax benefit		(584)		(587)		(649)		(657)		(640)
Income tax benefit		(222)		(223)		(246)		(250)		(243)
Net loss before noncontrolling interests		(362)		(364)		(403)		(407)		(397)
Less: Net income from noncontrolling interests		-		-		-		-		-
Other net loss	$	(362)		(364)		(403)		(407)		(397)
Average loans	$	(32.8)		(33.0)		(33.5)		(33.1)		(33.0)
Average assets		(66.9)		(66.1)		(65.0)		(64.8)		(59.2)
Average core deposits		(63.2)		(62.2)		(61.1)		(61.5)		(56.2)
CONSOLIDATED COMPANY
Net interest income (2)	$	10,892		10,542		10,678		10,651		11,063
Provision for credit losses		2,040		1,811		1,838		2,210		2,989
Noninterest income		9,713		9,086		9,708		9,678		10,431
Noninterest expense		12,508		11,677		12,475		12,733		13,340
Income before income tax expense		6,057		6,140		6,073		5,386		5,165
Income tax expense		1,874		1,998		2,001		1,572		1,672
Net income before noncontrolling interests		4,183		4,142		4,072		3,814		3,493
Less: Net income from noncontrolling interests		76		87		124		55		79
Wells Fargo net income	$	4,107		4,055		3,948		3,759		3,414
Average loans	$	768.6		754.5		751.3		754.1		753.7
Average assets		1,306.7		1,281.4		1,250.9		1,241.2		1,237.0
Average core deposits		864.9		836.8		807.5		796.8		794.8

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

(2) 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.

42

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)	2011		2011		2011		2011		2010
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	12,372		14,778		15,648		14,467		12,486
Servicing from securitizations or asset transfers		1,211		744		740		1,262		1,052
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		(464)		(2,640)		(1,075)		499		1,613
Other changes in fair value (2)		(516)		(510)		(535)		(580)		(684)
Total changes in fair value		(980)		(3,150)		(1,610)		(81)		929
Fair value, end of quarter	$	12,603		12,372		14,778		15,648		14,467

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

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

	Quarter ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)	2011		2011		2011		2011		2010
Amortized MSRs:
Balance, beginning of quarter	$	1,437		1,432		1,432		1,422		1,013
Purchases		53		21		36		45		36
Servicing from securitizations or asset transfers		26		50		27		29		432
Amortization		(71)		(66)		(63)		(64)		(59)
Balance, end of quarter		1,445		1,437		1,432		1,432		1,422
Valuation Allowance:
Balance, beginning of quarter		(40)		(10)		(9)		(3)		-
Reversal of provision (provision) for MSRs in excess of fair value		3		(30)		(1)		(6)		(3)
Balance, end of quarter		(37)		(40)		(10)		(9)		(3)
Amortized MSRs, net	$	1,408		1,397		1,422		1,423		1,419
Fair value of amortized MSRs:
Beginning of quarter	$	1,759		1,805		1,898		1,812		1,349
End of quarter		1,756		1,759		1,805		1,898		1,812

43

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

	Quarter ended
(in millions)	Dec. 31, 2011			Sept. 30, 2011			June 30, 2011			Mar. 31, 2011			Dec. 31, 2010
Servicing income, net:
Servicing fees (1)	$	876			1,029			1,102			1,137			1,129
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(464	)		(2,640	)		(1,075	)		499			1,613
Other changes in fair value (3)		(516	)		(510	)		(535	)		(580	)		(684	)
Total changes in fair value of MSRs carried at fair value		(980	)		(3,150	)		(1,610	)		(81	)		929
Amortization		(71	)		(66	)		(63	)		(64	)		(59	)
Reversal of provision (provision) for MSRs in excess of fair value		3			(30	)		(1	)		(6	)		(3	)
Net derivative gains (losses) from economic hedges (4)		665			3,247			1,449			(120	)		(1,756	)
Total servicing income, net	$	493			1,030			877			866			240
Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	201			607			374			379			(143	)
(1) Includes contractually specified servicing fees, late charges and other ancillary revenues. (2) Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates and costs to service,       including delinquency and foreclosure costs. (3) Represents changes due to collection/realization of expected cash flows over time. (4) Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs.
(in billions)	Dec. 31, 2011			Sept. 30, 2011			June 30, 2011			Mar. 31, 2011			Dec. 31, 2010
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,456			1,457			1,464			1,453			1,429
Owned loans serviced		358			349			338			346			371
Subservicing		8			8			8			9			9
Total residential servicing		1,822			1,814			1,810			1,808			1,809
Commercial mortgage servicing:
Serviced for others		398			401			402			406			408
Owned loans serviced		106			104			101			101			99
Subservicing		14			14			14			14			13
Total commercial servicing		518			519			517			521			520
Total managed servicing portfolio	$	2,340			2,333			2,327			2,329			2,329
Total serviced for others	$	1,854			1,858			1,866			1,859			1,837
Ratio of MSRs to related loans serviced for others		0.76	%		0.74			0.87			0.92			0.86
Weighted-average note rate (mortgage loans serviced for others)		5.14			5.21			5.26			5.31			5.39
(1) The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book       value for owned loans serviced.
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
	Quarter ended
(in billions)	Dec. 31, 2011			Sept. 30, 2011			June 30, 2011			Mar. 31, 2011			Dec. 31, 2010
Application data:
Wells Fargo first mortgage quarterly applications	$	157			169			109			102			158
Refinances as a percentage of applications		78	%		74			55			61			73
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	72			84			51			45			73
Residential Real Estate Originations:
Wells Fargo first mortgage loans:
Retail	$	58			43			34			49			70
Correspondent/Wholesale		61			45			29			34			57
Other (1)		1			1			1			1			1
Total quarter-to-date	$	120			89			64			84			128
Total year-to-date	$	357			237			148			84			386

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

44

Wells Fargo & Company and Subsidiaries

CHANGES IN LIABILITY FOR MORTGAGE LOAN REPURCHASE LOSSES

	Quarter ended						Year ended
(in millions)	Dec.31, 2011		Sept.30, 2011		Dec.31, 2010		Dec.31, 2011		Dec.31, 2010
Balance, beginning of period	$	1,194		1,188		1,331		1,289		1,033
Provision for repurchase losses:
Loan sales		27		19		35		101		144
Change in estimate – primarily due to credit deterioration		377		371		429		1,184		1,474
Total additions		404		390		464		1,285		1,618
Losses		(272)		(384)		(506)		(1,248)		(1,362)
Balance, end of period	$	1,326		1,194		1,289		1,326		1,289
UNRESOLVED REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS
($ in millions)			Government sponsored entities (1)		Private		Mortgage insurance rescissions (2)		Total
December 31, 2011
Number of loans				7,066		470		1,178		8,714
Original loan balance (3)			$	1,575		167		268		2,010
September 30, 2011
Number of loans				6,577		582		1,508		8,667
Original loan balance (3)			$	1,500		208		314		2,022
June 30, 2011
Number of loans				6,876		695		2,019		9,590
Original loan balance (3)			$	1,565		230		444		2,239
March 31, 2011
Number of loans				6,210		1,973		2,885		11,068
Original loan balance (3)			$	1,395		424		674		2,493
December 31, 2010
Number of loans				6,501		2,899		3,248		12,648
Original loan balance (3)			$	1,467		680		801		2,948

(1) Includes repurchase demands of 861 and $161 million, 878 and $173 million, 892 and $179 million, 685 and $132 million, and 1,495 and $291 million, for December 31, September 30, June 30 and March 31, 2011, and December 31, 2010, respectively, received from investors on mortgage servicing rights acquired from other originators. We generally have the right of recourse against the seller and may be able to recover losses related to such repurchase demands subject to counterparty risk associated with the seller.

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

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

EX-99.2

4Q11 Quarterly Supplement

January 17, 2012

Exhibit 99.2

Wells Fargo 4Q11 Supplement

1

Appendix

Pages 22-44

-

Recent loan portfolio acquisitions

23

-

Non-strategic/liquidating loan portfolio risk reduction

24

-

Purchased credit-impaired (PCI) portfolios

25

-

PCI nonaccretable difference

26

-

PCI accretable yield

27

-

Commercial PCI accretable yield

28

-

Pick-a-Pay PCI accretable yield

29

-

4Q11 Credit quality highlights

30

-

Commercial nonaccrual loans

31

-

Consumer real estate nonaccrual loans

32

-

Commercial real estate (CRE) loan portfolio

33

-

Pick-a-Pay mortgage portfolio

34

-

Pick-a-Pay credit highlights

35

-

Pick-a-Pay nonaccrual loan composition

36

-

Real estate 1-4 family first mortgage portfolio

37

-

Home equity portfolio

38-39

-

Credit card portfolio

40

-

Auto portfolio

41

Forward-looking statements and

additional information

42

Tier 1 common equity under Basel I

43

Tier 1 common equity under Basel III

(Estimated)

44

Table of contents

4Q11 Results

-

4Q11 Results

Page 2

-

Continued strong diversification

3

-

Balance Sheet overview

4

-

Income Statement overview

5

-

Loans

6

-

Deposits

7

-

Net interest income

8

-

Noninterest income

9

-

Noninterest expense

10

-

Noninterest expense

11

-

Noninterest expense target

12

-

Community Banking

13

-

Wholesale Banking

14

-

Wealth, Brokerage and Retirement

15

-

Credit quality

16-17

-

Mortgage servicing

18-19

-

Capital

20

-

Summary

21

Wells Fargo 4Q11 Supplement

2

Record earnings of $4.1 billion, up 1% linked

quarter (LQ) and 20% year-over-year (YoY)

$0.73 diluted earnings per share, up 1% LQ and

20% YoY

Total revenue of $20.6 billion, up $977 million LQ

on both higher net interest income and

noninterest income

Pre-tax pre-provision profit

(1)

of $8.1 billion, up

$146 million LQ

Strong credit quality

ROA = 1.25%, up 16 bps YoY

ROE = 11.97%, up 102 bps YoY

Capital levels continued to grow

-

9.46% Tier 1 common equity ratio under Basel

I and estimated Tier 1 common equity ratio

under Basel III of 7.49%

(2)

4Q11 Results

Wells Fargo Net Income

($ in millions)

(1)   Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes 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.

(2)   Pro

forma

Basel

III

calculation

based

on

Tier

1

common

equity,

as

adjusted

to

reflect

management’s

interpretation

of

current

Basel

III

capital

proposals.

This

pro forma

calculation

is

subject

to

change

depending

on

final

promulgation

of

Basel

III

capital

rulemaking

and

interpretations

by

regulatory

authorities.

See

pages

43-44

for

additional information

regarding Tier 1 common equity ratios.

3,414

3,759

3,948

4,055

4,107

4Q10

1Q11

2Q11

3Q11

4Q11

Wells Fargo 4Q11 Supplement

3

47%

53%

Balanced Spread and

Fee Income

Diversified Fee

Generation

11%

11%

17%

7%

11%

5%

19%

5%

14%

Service Charges

11%

Card Fees

7%

Other Banking Fees

11%

Mortgage Servicing, net

5%

Insurance

5%

Other Noninterest

Income

(1)

14%

Noninterest Income

47%

Net Interest Income

53%

Diversified Loan

Portfolio

Commercial Loans

40%

Consumer Loans

55%

Continued strong diversification

55%

40%

5%

Foreign Loans

5%

Mortgage Orig./Sales, net

19%

Trust, Investment & IRA fees 11%

Commissions & all other fees  17%

All data is for 4Q11.

(1)

Other noninterest income includes net gains (losses) on debt securities available for sale, net gains

from equity investments, net gains (losses) from trading activities, operating leases and all other

noninterest income.

Wells Fargo 4Q11 Supplement

4

Balance Sheet overview

Loans

Total period-end loans up $9.5 billion; core loans grew $13.7 billion; the

non-strategic/liquidating portfolio decreased $4.2 billion

(1)

Acquired

$2.1

billion

of

commercial

real

estate

loans

and

consolidated

$5.6

billion

of

reverse

mortgage

loans

(2)

previously sold

Organic loan growth of $6.0 billion

Securities available for

sale (AFS)

Balances

up

$15.4

billion,

as

we

continued

to

deploy

cash,

and

investments

were partially offset by runoff in 4Q11

Trading Assets

Balances up $20.0 billion reflecting conforming agency mortgages

pooled

into securities and held on balance sheet through year-end

VaR

(3)

relatively stable with an average daily VaR of $32 million in the

quarter

Deposits

Balances up $24.6 billion on increased balances from existing customers

and new account growth

Long-term debt

Balances down $7.9 billion on trust preferred securities (TRUPs)

redemptions and continued maturities

$9.0

billion

of

LTD

maturities

with

$2.5

billion

of

issuances

in

4Q11

Common stock

repurchases

Purchased 26.6 million common shares and entered into a 4Q11 forward

repurchase transaction that will settle in 1Q12 for an additional estimated

5.6 million shares

Wells Fargo 4Q11 Supplement

5

Income Statement overview

Net interest income

Up $350 million as growth in loans, securities and the mortgage

warehouse was partially offset by balance sheet repricing

Net interest margin (NIM) up 5 bps to 3.89%

Noninterest income

Mortgage banking up $531 million on higher origination volumes

Card fees down $333 million on lower debit card fees as a $365 million

decline

in

debit

interchange

fees

was

partially

offset

by

higher

credit

card fees

Market sensitive revenues

(1)

up $337 million

-

Trading includes $275 million higher deferred compensation plan

investments (offset in expense)

Other income included $153 million gain on sale of H.D. Vest

Noninterest expense

Deferred compensation up $266 million (offset in trading)

Mortgage and capital markets personnel expense up approximately

$300 million on higher revenues

Seasonally higher equipment and foreclosed asset expenses of

approximately $200 million

Approximately $100 million in higher costs related to the mortgage

servicing regulatory consent orders

All result comparisons are 4Q11 compared to 3Q11.

(1)

Includes

net

gains

(losses)

from

trading

activities,

net

gains

(losses)

on

debt

securities

available

for

sale

and

net

gains

from

equity

investments.

Wells Fargo 4Q11 Supplement

6

624.1

624.4

630.1

643.6

657.3

133.2

126.8

121.8

116.5

112.3

757.3

751.2

751.9

760.1

769.6

4Q10

1Q11

2Q11

3Q11

4Q11

Core loans

Non-strategic/liquidating loans

5.11%

5.03%

5.00%

4.87%

4.81%

Loans

Growth despite continued reduction in non-strategic/liquidating portfolio

Period-end loans up $9.5 billion from 3Q11

-

Commercial loans up $5.6 billion, or 2%, on

growth in C&I, CRE and foreign, driven by

portfolio acquisitions, new loans and new

customer activity

•

Included $2.1 billion of U.S.-based CRE loans

purchased

-

Consumer loans up $3.9 billion on the

consolidation of $5.6 billion of reverse mortgage

loans

(2)

and growth in credit card and core auto

more than offset non-strategic/liquidating

consumer loan runoff of $3.6 billion

Non-strategic/liquidating loans

(1)

down $4.2

billion from 3Q11

Core loans grew $13.7 billion, or 2%, from 3Q11

including organic loan growth of $6.0 billion

Total average loan yield of 4.81% down 6 bps LQ

and 30 bps YoY due to runoff of higher-yielding

loans including the non-strategic/liquidating

portfolio and addition of lower-yielding reverse

mortgages

-

Weighted average yield of the non-strategic

portfolio was 5.29%

in 4Q11

Period-end balances.

(1)   See page 24 for additional information regarding the non-strategic/liquidating portfolio, which comprises the Pick-a-Pay, liquidating home equity, legacy WFF indirect auto,

legacy

WFF

debt

consolidation,

Education

Finance-government

guaranteed

and

legacy

Wachovia

Commercial, Commercial

Real

Estate

and

other

PCI

loan

portfolios.

(2)   Based on clarifying guidance from the SEC in 4Q11, sales of $5.6 billion of reverse mortgages to a GNMA securitization program were reversed. The economics of these assets remain

with the third party investors in the securitizations and Wells Fargo earns a servicing fee.

Period–end Loans Outstanding

($ in billions)

(1)

Total average loan yield

Wells Fargo 4Q11 Supplement

7

640.1

661.4

665.4

197.9

221.2

246.7

838.0

882.6

912.1

4Q10

3Q11

4Q11

Interest-bearing deposits

Noninterest-bearing deposits

0.31%

0.25%

0.22%

Deposits

Strong growth and reduced average cost

Average deposits up $29.5 billion LQ to $912.1

billion

Average core deposits of $864.9 billion up $28.1

billion from 3Q11 and up $70.1 billion, or 9%, YoY

-

113% of average loans

-

Average retail core deposits up 5%

annualized LQ

Average core checking and savings up $30.9

billion, or 4% from 3Q11, and up $84.4 billion, or

12%, YoY

-

93% of average core deposits

Consumer checking accounts up a net 3.2% YoY

Average deposit cost of 22 bps down 3 bps from

3Q11 and 9 bps YoY

Average Deposits and Rates

($ in billions)

Average deposit cost

Average Core Checking and Savings

($ in billions)

715.7

769.2

800.1

4Q10

3Q11

4Q11

Wells Fargo 4Q11 Supplement

8

Net interest income

Net Interest Income (TE)

(1)

($ in millions)

Tax-equivalent

net

interest

income

(1)

increased

$369 million from 3Q11; NIM up 5 bps

Average earning assets up $24.3 billion,

driven by:

-

$14.0 billion increase in loans

-

$23.5 billion increase in AFS securities

-

$16.7 billion supported increased mortgage

refinance activity ($10.2 billion in mortgages

held for sale and $6.5 billion in trading)

-

Growth in assets partially funded by draw

down of fed funds and short-term investments

of $30.9 billion

Increased balance sheet efficiency and pricing

discipline offset the impact of balance sheet

repricing and resulted in a margin increase

of 5 bps

-

Interest bearing deposit costs down 4 bps in

the quarter

-

Noninterest bearing deposits grew $25.5

billion

-

Long-term debt expense declined on the

maturity of debt and the redemption of $5.8

billion of TRUPs

-

Income from variable sources, including loan

prepayments and resolutions, up modestly

from 3Q11

11,224

10,812

10,851

10,714

11,083

4Q10

1Q11

2Q11

3Q11

4Q11

4.16%

4.05%

4.01%

3.84%

3.89%

Net Interest Margin (NIM)

(1)

Tax

equivalent

net

interest

income

is

based

on

the

federal

statutory

rate

of

35%

for

the

periods

presented.

Net

interest

income

was

$11,063

million,

$10,651

million,

$10,678

million,

$10,542 million and $10,892 million for 4Q10, 1Q11, 2Q11, 3Q11 and 4Q11, respectively.

Wells Fargo 4Q11 Supplement

9

Noninterest income

Service charges on deposit account fees down 1% LQ

Trust and investment fees down 5% LQ as lower 

retail brokerage asset-based fees and transaction

activity offset stronger investment banking

originations

Card fees down $333 million LQ as lower debit card

interchange income was partially offset by growth in

credit card fees

Mortgage banking up $531 million, or 29%, LQ on a

35% increase in originations

Insurance up 10% LQ on seasonally higher

underwriting gains 

Trading gains up $872 million from a 3Q11 that

included the loss on resolving one legacy Wachovia

position, and included $275 million higher deferred

compensation plan investment results (P&L neutral),

and stronger core customer accommodation trading

Equity gains down $283 million LQ and included $85

million higher other-than-temporary impairment

Operating lease income down $224 million LQ on

lower lease settlement income

Other income up $402 million LQ on a $153 million

gain on the sale of H.D. Vest and a $102 million LQ

increase in reinsurance income (revenue neutral -

offset in trading)

10,431

9,678

9,708

9,086

9,713

4Q10

1Q11

2Q11

3Q11

4Q11

vs

vs

($ in millions)

4Q11

3Q11

4Q10

Noninterest income

Service charges on deposit accounts

$

1,091

(1)

%

5

Trust and investment fees

2,658

(5)

(10)

Card fees

680

(33)

(28)

Other fees

1,096

1

3

Mortgage banking

2,364

29

(14)

Insurance

466

10

(17)

Net gains (losses) from trading activities

430

nm

(19)

48

(84)

nm

Net gains from equity investments

61

(82)

(81)

Operating leases

60

(79)

(24)

Other

759

nm

68

Total nonterest income

$

9,713

7

%

(7)

Net gains (losses) on debt securities

available for sale

Wells Fargo 4Q11 Supplement

10

Noninterest expense

Noninterest expense up $831 million from 3Q11

driven by higher employee benefits expense,

incentive compensation, and seasonally higher

costs; down $832 million from 4Q10

-

Commission and incentive compensation

increased $163 million, or 8%, on higher

revenue-based compensation in mortgage

and capital markets

-

Employee benefits expense up $232 million

reflecting the $266 million increase in deferred

compensation expense

-

Equipment expense up $91 million on seasonally

higher software and system maintenance

-

Other expenses up $366 million and included:

•

$173 million increase in outside professional

services including ~$100 million in costs

related to the mortgage servicing regulatory

consent orders

•

$99 million increase in foreclosed assets

expense driven by seasonality

Additional 4Q11 expenses

-

Salaries expense included $133 million in

expense initiative severance expense vs. $111

million in 3Q11

-

$374 million of Wachovia integration costs in

4Q11 vs. $376 million in 3Q11

•

63% of merger integration costs in the quarter

were from outside professional services, contract

services and advertising

13,340

12,733

12,475

11,677

12,508

4Q10

1Q11

2Q11

3Q11

4Q11

vs

vs

($ in millions)

4Q11

3Q11

4Q10

Noninterest expense

Salaries

$

3,706

-

%

5

Commission and incentive compensation

2,251

8

3

Employee benefits

1,012

30

(15)

Equipment

607

18

(25)

Net occupancy

759

1

1

Core deposit and other intangibles

467

-

(15)

FDIC and other deposit assessments

314

(5)

4

Other

3,392

12

(16)

Total noninterest expense

12,508

7

(6)

Wells Fargo 4Q11 Supplement

11

$11,677

$12,508

$266

$300

$200

$100

Deferred

Compensation

Mortgage

servicing

regulatory

consent

orders

expense

Seasonally

higher

equipment

and foreclosed

asset expense

Mortgage and

capital markets

personnel

costs, largely

incentive

compensation

3Q11

Noninterest

Expense

4Q11

Noninterest

Expense

Noninterest expense

4Q11 Increases from 3Q11

~

~

~

($ in millions)

Wells Fargo 4Q11 Supplement

12

Noninterest expense target

(1)

Reflects

management’s

current

targeted

noninterest

expense

in

4Q12,

which

is

subject

to

change

and

may

be

affected

by

a

variety

of

factors,

including

business and economic

cyclicality, seasonality, changes in our business composition and operating environment, growth in our business and/or acquisitions, and unexpected expenses relating to, among other

things, litigation and regulatory matters.

Currently expect 1Q12 expenses to remain elevated driven by seasonally higher personnel expenses and final

quarter of integration expenses partially offset by continued gains from efficiency and cost save initiatives

Noninterest expense targeted to decline to $11 billion in 4Q12

-

2Q12 expense currently expected to decline by $500-700 million from reductions in 1Q12 personnel and

merger costs

-

Full year 2012 expenses to benefit from ongoing expense efficiency and cost save initiatives

-

Savings drivers expected to include:

•

Consolidation of consumer lending businesses

•

Streamlined staff functions and combined technology efforts

•

Moderation in cyclically-high mortgage costs, including loss remediation

•

Streamlined customer experiences in key businesses

Quarterly expense trends may vary

($ in millions)

Actual

4Q11

Merger integration expense

$

374

-

Staff/technology functions

2,343

2,050-2,150

Loss mitigation and foreclosed asset expense

718

600-650

Business optimization

8,910

8,100-8,450

Operating losses

163

not targeted

Total NIE

$

12,508

10,750-11,250

Targeted 4Q12

(1)

Wells Fargo 4Q11 Supplement

13

Community Banking

Higher segment earnings reflects stronger

mortgage banking revenues

Average loans increased 1% reflecting the move of

reserve mortgage loans on to the balance sheet as

well as growth in core auto, credit card and SBA

lending

Regional Banking

Solid combined net checking gains

-

Consumer checking up a net 3.2% from 4Q10

-

Business checking up a net 3.7% from 4Q10

Combined retail bank cross-sell of 5.92 products

per household up from 5.70

in 4Q10

-

West cross-sell = 6.29

-

East cross-sell = 5.43

Wells Fargo Home Mortgage

Mortgage originations up $31 billion from 3Q11

while application volumes were down 7%

Managed residential mortgage servicing of $1.8

trillion up 1% YoY

(1)  Checking account growth is period-ending, 12-month rolling.

vs

vs

($ in millions)

4Q11

3Q11

4Q10

Net interest income

$

7,414

2

%

(4)

Noninterest income

5,590

7

(2)

Provision for credit losses

2,031

3

(27)

Noninterest expense

7,310

6

(7)

Income tax expense

1,082

(11)

29

Segment earnings

$

2,503

8

%

30

($ in billions)

Avg loans, net

493.9

1

(4)

Avg core deposits

$

568.3

2

4

4Q11

3Q11

4Q10

Regional Banking

Consumer checking account growth

(1)

3.2

%

5.6

7.5

Business checking account growth

(1)

3.7

3.8

4.8

Retail Bank cross-sell

5.92

5.91

5.70

vs

vs

($ in billions)

4Q11

3Q11

4Q10

Wells Fargo Home Mortgage

Applications

$

157

(7)

%

(1)

Application pipeline

72

(14)

(1)

Originations

120

35

(6)

Managed residential

mortgage servicing

($ in trillions)

$

1.8

-

1

Wells Fargo 4Q11 Supplement

14

Wholesale Banking

Net interest income up 6% LQ on strong earning

assets and deposit growth

-

Average loans up $11.4 billion, or 4%, driven by

new loans from existing customers, new

customer growth and portfolio acquisitions

Noninterest income up 5% LQ primarily from

capital markets and investment banking results

Provision expense up $210 million LQ on $200

million lower reserve release 

Expenses up 9% LQ driven by higher revenue-

based incentive compensation, as well as higher

operating losses, professional services, foreclosed

asset and travel expenses

Treasury Management

Commercial card spend volume of $3.44 billion

up 4% LQ and 25% YoY

Investment Banking

2011 U.S. investment banking market share

(2)

of

5.1% up from 4.2% in 2010

Asset Management

Total AUM down 7% and mutual funds AUM down

9% YoY

(1)  Approved and initiated.

(2) Source: Dealogic U.S. investment banking fee market share.

vs

vs

($ in millions)

4Q11

3Q11

4Q10

Net interest income

$

3,081

6

%

4

Noninterest income

2,344

5

(18)

Provision for credit losses

32

nm

(84)

Noninterest expense

2,939

9

(2)

Income tax expense

815

(1)

(15)

Segment earnings

$

1,641

(9)

%

(3)

($ in billions)

Avg loans, net

$

264.8

4

15

Avg core deposits

223.2

7

21

vs

vs

($ in billions)

4Q11

3Q11

4Q10

Key Metrics:

Commercial card spend

volume

$

3.44

4

%

25

CEO Mobile Wire volume

(1)

2.2

(11)

nm

2011 U.S. investment

banking market share %

(2)

5.1

Total AUM

$

453

1

(7)

Advantage Funds AUM

214

1

(9)

Wells Fargo 4Q11 Supplement

15

Wealth, Brokerage and Retirement

Net interest income up 6% LQ

-

Average loans relatively stable LQ and YoY

-

Average core deposits up 2% LQ and up 12% YoY

Noninterest income up 6% LQ on gains on deferred

compensation plan investments and the sale of

H.D. Vest

Total revenue increased 6%; excluding the $153

million H.D. Vest gain and $59 million of deferred

compensation plan investment gains vs. $128

million in losses in 3Q11, revenue was down 5% on

lower asset-based fees, retail brokerage

transaction revenue and securities gains

-

Brokerage managed account asset fees priced at

beginning of quarter, reflecting 9/30/2011 market

valuations

Expenses up 6% LQ primarily due to higher 

deferred compensation expense; excluding $52

million deferred compensation expense vs. $125

million in 3Q11, expenses declined 1% on lower

revenue-based compensation expense

Retail Brokerage

Managed account assets up 7% LQ and 8% YoY

driven by strong net flows

Wealth Management

Wealth Management client assets

down 2% YoY

Retirement

IRA assets down 4% YoY

Institutional Retirement plan assets up 2% YoY

(1) Includes deposits.

(2) Data as of November 2011.

vs

vs

($ in millions)

4Q11

3Q11

4Q10

Net interest income

$

754

6

%

12

Noninterest income

2,311

6

(2)

Provision for credit losses

20

(58)

(82)

Noninterest expense

2,521

6

(3)

Income tax expense

199

12

64

Segment earnings

$

325

12

%

65

($ in billions)

Avg loans, net

42.7

(1)

(1)

Avg core deposits

$

136.6

2

12

vs

vs

($ in billions, except where noted)

4Q11

3Q11

4Q10

Key Metrics:

WBR Clients Assets

(1)

($ in trillions)$

1.3

3

%

(3)

Cross-sell

(2)

10.05

1

bps

25

Retail Brokerage

Financial Advisors

15,263

-

%

-

Managed account assets

$

254

7

8

Client assets

(1)

($ in trillions)

1.1

3

(3)

Wealth Management

Client assets 

(1)

198

4

(2)

Retirement

IRA Assets

268

3

(4)

Institutional Retirement

Plan Assets

236

3

2

Wells Fargo 4Q11 Supplement

16

Credit quality

Strong performance with stable net charge-offs

$2.6 billion net charge-offs, up $29 million LQ

though down 51% from 4Q09 peak

Provision expense of $2.0 billion, up $229

million from 3Q11, includes a $600 million

reserve release

(1)

in 4Q11 vs. $800 million in

3Q11

Allowance for credit losses = $19.7 billion

Remaining PCI nonaccretable = 27.5% of

remaining UPB

(2)

Credit metrics showed continued improvement

-

$879 million LQ decline in NPAs reflects $596

million decline in nonaccrual loans driven by

lower commercial real estate nonaccruals and

a $283 million decrease in foreclosed assets

-

Retail 30+ delinquency balances stable while

rates up modestly on lower loan balances

5.41

5.33

4.49

4.10

3.84

3.21

2.84

2.61

2.64

0.50

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

Net Charge-offs

Credit Reserve Build

(0.50)

(0.65)

(0.85)

Reserve Release

3.99

3.45

2.99

5.33

5.91

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

(2)  Unpaid principal balance for PCI loans that have not had a UPB charge-off.

Provision Expense

($ in billions)

2.21

(1.0)

1.84

(1.0)

1.81

(0.8)

2.04

(0.6)

Wells Fargo 4Q11 Supplement

17

2.0

1.7

1.5

1.5

1.5

0.6

0.7

0.3

0.4

0.5

2.6

2.4

1.8

1.9

2.0

4Q10

1Q11

2Q11

3Q11

4Q11

Consumer

Commercial

Credit quality

Nonperforming Assets

($ in billions)

$10

$15

$20

$25

4Q10

1Q11

2Q11

3Q11

4Q11

Loans 30+ DPD -

Retail Businesses

(1)

(Balances and rates)

Nonaccrual Loan Flows

Loans 90+ DPD and Still Accruing

(1) (2)

($ in billions)

6.85%

5.94%

5.77%

5.74%

5.81%

($ in billions)

4Q10

1Q11

2Q11

3Q11

4Q11

Commercial

Inflows

2.3

1.9

1.6

1.2

1.3

Outflows

(3.6)

(2.9)

(2.7)

(1.8)

(1.7)

Ending balance

11.3

10.3

9.2

8.6

8.2

Consumer

Inflows

4.3

4.0

3.4

3.5

3.5

Outflows

(5.1)

(4.2)

(4.3)

(4.0)

(3.7)

Ending balance

14.9

14.7

13.8

13.3

13.1

Total

$

26.2

25.0

23.0

21.9

21.3

26.2

25.0

23.0

21.9

21.3

6.1

5.5

4.9

4.9

4.7

32.3

30.5

27.9

26.8

26.0

4Q10

1Q11

2Q11

3Q11

4Q11

Nonaccrual loans

Foreclosed assets

(1)

Excludes mortgage loans insured/guaranteed  by the FHA or VA and student loans whose repayments are predominantly guaranteed by guarantee agencies on behalf of

the U.S. Department of Education under the Federal Family Education Loan Program. Also excludes the carrying value of PCI loans contractually delinquent. PCI loans 90

days or more past due were $8.7 billion in 4Q11, $8.9 billion in 3Q11, $9.8 billion in 2Q11, $10.8 billion in 1Q11 and $11.6 billion in 4Q10.

(2)

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

Wells Fargo 4Q11 Supplement

18

69%

20%

5%

6%

Mortgage servicing

Wells Fargo has a high quality servicing portfolio

Residential Mortgage Servicing Portfolio

$1.8 Trillion

(as of December 31, 2011)

Agency

Retained and acquired portfolio

Non-agency securitizations of

WFC originated loans

Non-agency acquired servicing

and private whole loan sales

69% of the portfolio is with the Agencies (FNMA,

FHLMC and GNMA)

20% are loans that we retained or acquired

-

Loss exposure handled through loan loss

reserves and PCI nonaccretable

5% are private securitizations where Wells Fargo

originated the loan and therefore has some

repurchase risk

-

79% prime at origination

-

58% from pre-2006 vintages

-

Insignificant amount of home equity and no

option ARMs

-

~50% do not have traditional reps and

warranties

6% are non-agency acquired servicing and

private whole loan sales

-

4% is acquired servicing where Wells Fargo 

did not underwrite and securitize and has

repurchase recourse with the originator

-

2% are private whole loan sales

•

Less than 2% subprime at origination

•

Loans sold to others and subsequently

securitized are included in private

securitizations above

Wells Fargo 4Q11 Supplement

19

5.36%

5.85%

6.45%

9.53%

7.03%

7.61%

2.27%

2.52%

5.08%

4.01%

3.66%

4.14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Wells Fargo

Citi

JPM Chase

Bank of

America

Industry

Industry ex

WFC

Foreclosure Rate

Delinquency Rate

7.63%

8.37%

11.52%

13.54%

10.70%

11.75%

Mortgage servicing

Delinquency

ratios

lower

than

peers

and

total

repurchase

demands

stable

As of 3Q11, the delinquency and foreclosure ratio

of Wells Fargo’s servicing portfolio continued to

be lower than peers, per industry data

Wells Fargo’s total delinquency and foreclosure

ratio for 4Q11 was 7.96%, down from a peak of

8.96% in 4Q09

Total repurchase demands stable compared to

prior quarter and down approximately 31% from

a year ago

Agency

-

Agency repurchase demands outstanding up

modestly from 3Q11

•

Agency new demands for 2006-2008 vintages

are basically unchanged due to continued

elevated demands from FNMA; these elevated

demand levels are the primary driver of the 4Q

reserve build

•

FHLMC demands as well as newer vintage

demands continue to emerge consistent with

our estimates

-

Demands and losses continued to be concentrated

in the 2006 -

early 2008 vintages

Non-Agency

-

Non-agency repurchase demands outstanding,

which includes non-agency securities, whole loans

sold and acquired servicing, down for the fifth

consecutive quarter

(1)  Inside Mortgage Finance, data as of September 30, 2011. Industry excluding WFC

performance calculated based on IMF data.

(2)  Industry is all large servicers ($7.0 trillion) including WFC, C, JPM and BAC.

(3)  Includes mortgage insurance rescissions.

(2)

Total

Outstanding

Repurchase

Demands

(3)

and

Agency New Demands for 2006-2008 Vintages

3Q11 Servicing Portfolio Delinquency

Performance

(1)

Wells Fargo 4Q11 Supplement

20

Capital 

Capital remained strong and continued to grow internally

8.30%

8.93%

9.15%

9.34%

9.46%

4Q10

1Q11

2Q11

3Q11

4Q11

Tier 1 common equity ratio increased 12 bps

in 4Q11

Tier 1 common equity ratio under Basel III is

estimated to be 7.49% at 12/31/11

(1)

$5.8 billion of high-cost trust preferred securities

redeemed in 4Q11 

-

Weighted average coupon of 8.42%

Purchased

26.6

million

common

shares

and

entered

into

a

4Q11

forward

repurchase

transaction

that

will

settle

in

1Q12

for

an

additional estimated 5.6 million shares

See

Appendix

page

43

for

additional

information

on

Tier

1

common

equity.

4Q11 capital ratios are preliminary estimates.

(1)

Pro

forma

Basel

III

calculation

based

on

Tier

1

common

equity,

as

adjusted

to

reflect

management’s

interpretation

of

current

Basel

III

capital

proposals.

This

pro forma calculation is

subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory authorities. See page 44 for additional information.

Tier 1 Common Equity Ratio

Wells Fargo 4Q11 Supplement

21

Summary

Record earnings of $4.1 billion

Strong revenue growth

Robust earning asset growth on core loan growth and investment securities purchases

Expenses expected to remain elevated in 1Q12, continue to target

4Q12 expenses of $11 billion

Higher pre-tax pre-provision profit

(1)

of $8.1 billion

Strong credit quality

Solid returns

-

ROA = 1.25%

-

ROE = 11.97%  

Capital levels continued to grow

(1)  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.

Wells Fargo 4Q11 Supplement

22

Appendix

***************************************************

***************************************************

***************************************************

***************************************************

***************************************************

***************************************************

***************************************************

***************************************************

***************************************************

***************************************************

Wells Fargo 4Q11 Supplement

23

Recent loan portfolio acquisitions 

($ in billions)

Acquired from

2Q

3Q

4Q

Completed

Allied Irish/Bank of Ireland/Irish Bank Resolution Corp.

June - Dec

0.4

1.5

3.6

Pending

Burdale Financial Holdings Limited

Est. 1Q12

2011 Period-end balance

Date of

acquisition

Wells Fargo 4Q11 Supplement

24

(1)  Net of purchase accounting adjustments.

-$27.6

-$8.2

-$8.2

Non-strategic/liquidating loan portfolio risk reduction

-$7.1

-$6.5

-$6.4

-$5.0

-$78.5

-$5.3

($ in billions)

4Q11

3Q11

2Q11

1Q11

4Q10

3Q10

2Q10

4Q08

Pick-a-Pay mortgage

(1)

$

65.7

67.4

69.6

71.5

74.8

77.3

80.2

82.9

85.2

95.3

Liquidating home equity

5.7

6.0

6.3

6.6

6.9

7.3

7.6

8.0

8.4

10.3

Legacy WFF indirect auto

2.5

3.1

3.9

4.9

6.0

7.1

8.3

9.7

11.3

18.2

Legacy WFF debt consolidation

16.5

17.2

17.7

18.4

19.0

19.7

20.4

21.4

22.4

25.3

Education Finance - gov't guaranteed

15.4

15.6

16.3

16.9

17.5

18.0

18.7

19.7

21.2

20.5

Legacy WB C&I, CRE and foreign PCI loans

(1)

5.7

6.3

7.0

7.5

7.9

9.2

10.3

11.8

13.0

18.7

Legacy WB other PCI loans

(1)

0.8

0.9

1.0

1.0

1.1

1.1

1.3

1.5

1.7

2.5

Total

$

112.3

116.5

121.8

126.8

133.2

139.7

146.8

155.0

163.2

190.8

4Q09

1Q10

-$4.2

Wells Fargo 4Q11 Supplement

25

Purchased credit-impaired (PCI) portfolios

Legacy Wachovia continued to perform better than originally expected

(1)  Includes

write-downs

taken

on

loans

where

severe

delinquency

(normally

180

days)

or

other

indications

of

severe

borrower

financial

stress

exist

that

indicate there will be a loss of

contractually due amounts upon final resolution of the loan.

(2)  Reflects releases of $1.7 billion for loan resolutions and $4.2 billion from the reclassification of nonaccretable difference to the accretable yield, which will result in increasing income

over the remaining life of the loan or pool of loans.

($ in billions)

Adjusted unpaid principal balance

(1)

December 31, 2008

$

29.2

62.5

6.5

98.2

September 30, 2011

8.3

38.1

1.9

48.3

December 31, 2011

8.5

36.9

1.8

47.2

Nonaccretable difference rollforward

12/31/08 Nonaccretable difference

$

10.4

26.5

4.0

40.9

Addition of nonaccretable difference due to acquisitions

0.2

-

-

0.2

Losses from loan resolutions and write-downs

(6.8)

(15.0)

(2.7)

(24.5)

Release of nonaccretable difference since merger

(2.9)

(2.4)

(0.6)

(5.9)

(2)

12/31/11 Remaining nonaccretable difference

0.9

9.1

0.7

10.7

Life-to-date net performance

Additional provision since 2008 merger

$

(1.7)

-

(0.1)

(1.8)

Release of nonaccretable difference since 2008 merger

2.9

2.4

0.6

5.9

(2)

Net performance

1.2

2.4

0.5

4.1

Commercial

Pick-a-Pay

Other

consumer

Total

Wells Fargo 4Q11 Supplement

26

(1)  Release

of

the

nonaccretable

difference

for

settlement

with

borrower,

on

individually

accounted

PCI

loans,

increases

interest

income

in

the

period

of

settlement.

Pick-a-Pay and Other

consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans, which assumes that the amount received approximates the pool performance

expectations.

(2)  Release

of

the

nonaccretable

difference

as

a

result

of

sales

to

third

parties

increases

noninterest

income

in

the

period

of

the

sale.

(3)

Reclassification

of

nonaccretable

difference

to

accretable

yield

for

loans

with

increased

cash

flow

estimates

will

result

in

increased

interest

income

as

a

prospective

yield adjustment over

the remaining life of the loan or pool of loans.

(4)

Write-downs to net realizable value of PCI loans are absorbed by the nonaccretable difference when severe delinquency (normally 180 days) or other indications of severe borrower

financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

(5)  Unpaid principal balance of loans without write-downs.

$55 million nonaccretable difference released in 4Q11 into income due to loan resolutions

-

$44 million in net interest income; $11 million in noninterest income

$55 million reclassified to accretable yield in 4Q11

$10.7 billion in nonaccretable difference remains to absorb losses on PCI loans

-

Remaining

nonaccretable

=

27.5%

of

unpaid

principal

balance

(UPB)

(5)

•

Remaining

Pick-a-Pay

nonaccretable

=

28.9%

of

Pick-a-Pay

UPB

(5)

Nonaccretable difference established in purchase accounting for PCI loans absorbs losses otherwise recorded

as charge-offs

PCI nonaccretable difference

Analysis of nonaccretable difference for PCI loans

($ in millions)

Pick-a-Pay

Total

Balance at September 30, 2011

$

958

9,643

Addition of nonaccretable difference due to acquisitions

171

-

-

Release of nonaccretable difference due to:

Loans resolved by settlement with borrower

(1)

(44)

-

-

Loans resolved by sales to third parties

(2)

(11)

-

-

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

(3)

(55)

-

Use of nonaccretable difference due to:

Losses from loan resolutions and write-downs

(4)

(90)

(517)

Balance at December 31, 2011

$

929

9,126

171

-

(34)

(44)

(11)

(55)

(641)

Commercial

686

11,287

Other

consumer

652

10,707

Wells Fargo 4Q11 Supplement

27

PCI accretable yield

4Q11 results included accretion of $552 million, in line with 3Q11

Balance of $16.0 billion expected to accrete to income over the remaining life of the underlying loans

Expected cash flows on all PCI portfolios are recalculated quarterly including the adequacy of life-of-loan

loss marks (nonaccretable difference)

-

4Q11

decrease

in

expected

cash

flows

of

$562

million

primarily

due

to

the

Pick-a-Pay

portfolio

•

Lifetime expected cash flows are updated quarterly and will fluctuate based on estimates and assumptions

•

Cash flow estimates are affected by changes in interest rates, liquidation timing, the pace of the economic

and housing recovery and projected lifetime performance of loan modification activity

•

The

PCI

cash

flows

remained

significantly

better

than

estimated

at

acquisition

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

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

(3)  Represents changes in cash flows expected to be collected due to changes in interest rates on variable rate PCI loans, changes in prepayment assumptions

and the impact of modifications.

Cumulative

Accretable yield rollforward

since

($ in millions)

4Q11

3Q11

merger

Total, beginning of period

$

16,896

14,871

10,447

Addition of accretable yield due to acquisitions

124

4

128

Accretion into interest income

(1)

(551)

(553)

(7,199)

Accretion into noninterest income due to sales

(2)

(1)

(3)

(237)

Reclassification from nonaccretable difference for loans with improving cash flows

55

108

4,213

Changes in expected cash flows that do not affect nonaccretable difference

(3)

(562)

2,469

8,609

Total, end of period

$

15,961

16,896

15,961

Wells Fargo 4Q11 Supplement

28

$1.4 billion remains to be accreted into income over the remaining life of the portfolio

Most of portfolio tied to LIBOR

Weighted average life of the portfolio of 3.2 years has extended

over the past couple of quarters as shorter

duration portfolios have rolled off and period of future cash flow assumptions have been extended

Commercial PCI accretable yield

Includes both legacy Wachovia PCI loans as well as recently purchased PCI loans.

(1)  Increase in accretion and accretable yield percentage is primarily due to improvements in the expected cash flows.

($ in millions)

4Q11

3Q11

2Q11

PCI interest income

Accretion

(1)

$

198

220

186

Resolution income

44

65

36

Average carrying value

6,812

6,672

7,171

Accretable yield percentage

Accretion

(1)

11.62

%

13.20

10.36

Accretable yield balance

$

1,363

1,303

1,357

Weighted average life (years)

3.2

2.7

2.4

Wells Fargo 4Q11 Supplement

29

$14.0 billion remains to be accreted into income over the remaining life of the portfolio

-

Based on updated cash flow valuations, there was no reclassification of nonaccretable to accretable in 4Q11

-

Lifetime expected cash flows are updated quarterly and will fluctuate based on estimates and assumptions

•

Cash flow estimates are affected by changes in interest rates, liquidation timing, the pace of the economic and

housing recovery and projected lifetime performance of loan modification activity

Pick-a-Pay PCI accretable yield

($ in millions)

4Q11

3Q11

2Q11

PCI interest income

Accretion

$

326

310

352

Average carrying value

29,331

30,168

31,008

Accretable yield percentage

4.45

%

4.11

4.54

Accretable yield balance

$

14,018

14,989

12,884

Weighted average life (years)

11.0

11.0

10.0

Wells Fargo 4Q11 Supplement

30

4Q11 Credit quality highlights

Net charge-offs of $2.6 billion up $29 million LQ

-

Commercial losses up $48 million as higher C&I

and foreign losses offset lower commercial real

estate

-

Consumer losses down $19 million as lower

consumer real estate 1-4 family junior lien and

credit card losses more than offset higher

consumer real estate 1-4 family first mortgage and

other revolving credit and installment

Total NPAs of $26.0 billion down $879 million

-

Nonaccrual loans down $596 million

-

Foreclosed assets down $283 million  

•

56% of the balance are government guaranteed

loans and loans written down through purchase

accounting

$1.3 billion, or 28%, are government

guaranteed

$1.3 billion, or 28%, reflects shift from

PCI loans to REO ($465 million consumer

and $840 million C&I and CRE)

Currently expect future reserve releases absent

significant deterioration in the economy

Total

($ in millions)

Wells Fargo

Commercial loans

      6,767

  338,683

     345,450

Consumer loans

     29,952

  394,229

     424,181

Total period-end loans

36,719

732,912

769,631

Total nonaccrual loans

$

       21,304

Total foreclosed assets

         4,661

Total NPAs 

$

       25,965

  as % of loans

3.37

%

Provision for credit losses

$

2,040

Net charge-offs

2,640

as % of avg loans

1.36

%

Commercial

0.54

Consumer

2.02

%

Allowance for credit losses

19,335 $

19,668

  as % of loans

2.64

2.56

%

as % of nonaccrual loans

92

%

4Q11

PCI loans

Non PCI

loans

Wells Fargo 4Q11 Supplement

31

Commercial nonaccrual loans

4Q11 Total Commercial nonaccrual loans = $8,217 million

($ change in millions)

$1,890

$4,085

$47

$2,195

Commercial and Industrial & Lease

Financing:

CRE Construction:

CRE Mortgage:

Foreign

Inflows increased $0.2B

Outflows decreased<$0.1B

88% secured

40% guaranteed

78% current on interest

26% have already been written down

Inflows increased<$0.1B

Outflows decreased <$0.1B

54% guaranteed 

40% current on interest

37% of NPLs have been written down

Inflows decreased <$0.1B; fifth

consecutive quarterly decline

Outflows remained relatively flat

65% guaranteed

56% current on interest

35% of NPLs have been written down

All comparisons are to 3Q11.

-

1,000

2,000

3,000

4,000

4Q10

1Q11

2Q11

3Q11

4Q11

Commercial Loans & Leases

Total Inflow

Total Outflow

NPL Balances

-

1,000

2,000

3,000

4,000

4Q10

1Q11

2Q11

3Q11

4Q11

CRE Construction

Total Inflow

Total Outflow

NPL Balances

-

1,000

2,000

3,000

4,000

5,000

6,000

4Q10

1Q11

2Q11

3Q11

4Q11

CRE Mortgage

Total Inflow

Total Outflow

NPL Balances

Wells Fargo 4Q11 Supplement

32

3,000

3,250

3,500

3,750

4,000

1,000

1,500

2,000

2,500

3,000

4Q10

1Q11

2Q11

3Q11

4Q11

Home Equity

Total Inflow

(Left)

Total Outflow

(Left)

RE NPL Balances

(Right)

$3,015

$2,476

$3,909

$3,488

Consumer real estate nonaccrual loans

Nonaccrual balances decreased $41mm

Inflows decreased <$0.1B

Outflows decreased <$0.2B

50% are 1-4 family first mortgage

78% is legacy WFF debt consolidation

-

Inflows were flat

-

Outflows increased 12%

-

41% written down; losses taken stable

from prior quarter

13% is WBR

Nonaccrual balances decreased slightly

41% written down; losses taken stable

from prior quarter

56% are > 180 DPD

Inflows increased <$0.1B

Outflows decreased <$0.2B

85% of NPLs held at current estimated

recoverable value

23% are TDRs for which impairment

has been recognized

See page 36 for additional information

4Q11 Total residential real estate nonaccrual loans = $12,888 million

Inflows stabilized while outflows slowed reflecting environment and seasonality

All comparisons are to 3Q11.

(1)  Includes National Home Equity first and junior lines and loans.

(2)  Total

inflows

and

outflows

tracked

on

left

scale

and

RE

NPL

balances

tracked

on

right

scale.

National

Home

Equity

(1)

:

Home Mortgage:

Pick-a-Pay:

Other Businesses:

($

change

in

millions)

(2)

-

1,000

2,000

3,000

4,000

5,000

-

1,000

2,000

3,000

4,000

4Q10

1Q11

2Q11

3Q11

4Q11

Home

Mortgage

Total Inflow

(Left)

Total Outflow

(Left)

RE NPL Balances

(Right)

2,000

3,000

4,000

5,000

500

1,000

1,500

2,000

2,500

4Q10

1Q11

2Q11

3Q11

4Q11

Pick-a-Pay

Total Inflow

(Left)

Total Outflow

(Left)

RE NPL Balances

(Right)

Wells Fargo 4Q11 Supplement

33

Commercial real estate (CRE) loan portfolio

Growth in outstandings includes the $2.1 billion

period-end balance of loans purchased in 4Q11

partially offset by paydowns

Nonaccruals down $369 million, or 34 bps

Net charge-offs down $39 million, or 13 bps, as

lower construction losses more than offset the $21

million increase in mortgage losses

29% of the portfolio is owner-occupied

($ in millions)

4Q11

3Q11

CRE outstandings

Real estate mortgage

$

105,975

104,363

Real estate construction

19,382

19,719

Total CRE outstandings

125,357

124,082

Nonaccrual loans

Real estate mortgage

4,085

4,429

Real estate construction

1,890

1,915

Total nonaccrual loans

5,975

6,344

  as % of loans

4.77

%

5.11

Net charge-offs (recoveries)

Real estate mortgage

$

117

96

Real estate construction

(5)

55

Total net charge-offs

112

151

  as % of avg loans

0.36

%

0.49

Wells Fargo 4Q11 Supplement

34

Pick-a-Pay mortgage portfolio

Carrying value of $65.7 billion in first lien loans outstanding,

down $1.7 billion from 3Q11 and down $29.7

billion from 4Q08 on paid-in-full loans and loss mitigation efforts

-

Adjusted unpaid principal balance of $73.4 billion, down $2.2 billion from 3Q11 and down $42.3 billion

from 4Q08

-

$4.0 billion in modification principal forgiveness since acquisition reflects over 99,000 completed full-term

modifications; additional $516 million of conditional forgiveness that can be earned by borrowers through

performance over the next 3 years

-

Modification redefault rate has been consistently better than the industry average (as measured by 60+ DPD

after six months) as we have strived to give customers an affordable, sustainable payment

-

Pick-a-Pay loans with negative amortization potential decreased $2.2 billion from 3Q11 to 53% of loans

Total portfolio deferred interest of $2.0 billion down $127 million from 3Q11 and down $2.3 billion from

4Q08; down for eleventh consecutive quarter

($ in millions)

Product type

Adjusted

unpaid

principal

% of total

Adjusted

unpaid

principal

% of total

Adjusted

unpaid

principal

% of total

Option payment loans

(1)

$

39,164

53

%

$

49,958

59

%

$

99,937

86

%

Non-option payment adjustable-rate and

fixed-rate loans

(1)

9,986

14

11,070

13

15,763

14

Full-term loan modifications

(1)

24,207

33

23,132

28

-

-

Total adjusted unpaid principal balance

(1)

$

73,357

100

%

$

84,160

100

%

$

115,700

100

%

Total carrying value

65,652

74,815

95,315

At 12/31/2011

At 12/31/2010

At 12/31/2008

(1)

Adjusted unpaid principal includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial

stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

Wells Fargo 4Q11 Supplement

35

Pick-a-Pay credit highlights

Non-PCI portfolio

Loans down 3% driven by loans paid-in-full

84% of portfolio current

Nonaccrual loans relatively stable

-

85% of loans written down to current net

recoverable value (See page 36)

-

New inflows of $0.7 billion, flat from 3Q11

-

$211 million of nonaccrual TDRs reclassified to

accruing TDR status based on borrower payment

performance

$3.9 billion in nonaccruals includes $886 million of

nonaccruing TDRs

Net charge-offs of $196 million in 4Q11,

consistent with expectations and an annualized

loss rate of 2.11%

41% of portfolio with LTV

(2)

80%

PCI portfolio

Carrying value down 2%

67% of portfolio current, consistent with 3Q11

Life-of-loan losses continued to be lower than

originally projected at time of merger

(1)

The 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.

(2)  The

current

loan-to-value

(LTV)

ratio

is

calculated

as

the

net

carrying

value

(defined

in

(1)

above)

divided

by

the

collateral

value.

(3)  The

adjusted

unpaid

principal

balance

includes

write-downs

taken

on

loans

where

severe

delinquency

(normally

180

days)

or

other

indications

of

severe

borrower

financial

stress

exist

that

indicate there will be a loss of contractually due amounts upon final resolution of the loan.

($ in millions)

4Q11

3Q11

Non-PCI loans

Carrying value

(1)

$

36,596

37,646

Nonaccrual loans

3,909

3,900

as a % of loans

10.68

%

10.36

Net charge-offs

$

196

220

  as % of avg loans

       2.11

%

       2.30

90+ days past due

  as % of loans

10.07

9.53

Current average LTV

(2)

86

%

85

Current average FICO

681

682

Contractual average loan size

$

210,000

211,000

Contractual average age of loans

7.79

years

7.54

% of loans in California

49

%

49

($ in millions)

3Q11

PCI loans

Adjusted unpaid principal balance

(3)

$

36,905

38,060

Carrying value

(1)

29,056

29,715

Current average LTV

(2)

91

%

89

Current average FICO

610

608

Contractual average loan size

$

311,000

311,000

Contractual average age of loans

5.75

years

5.50

% of loans in California

68

%

67

Wells Fargo 4Q11 Supplement

36

Pick-a-Pay nonaccrual loan composition

85% of Pick-a-Pay nonaccruals held at estimated recoverable value vs. 84% at 3Q11, reflecting

write-downs and/or LTV

100%

Allowance

available

for

the

remaining

15%

that

have

not

yet

been

written

down

5% of the nonaccruals are performing modifications

-

Performing modifications move to accruing status after six consecutive payments are made

12/31/11 Total $3,909 million

20%

15%

23%

42%

Charge-offs to date of $681 million 

(29% of original balance)

65% of loans have LTV<80%

34% of loans have LTV

80% but

<100%

1% of loans have LTV

100%

(1)

Initial charge-offs usually not taken

until 180 DPD ($44 million taken to

date)

Expected losses included in allowance

Charge-offs/principal forgiveness to

date of $226 million (20% of

original 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. Calculation excludes unpaid principal balance of related equity lines of credit that share common collateral. 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.

(1)  Loans with LTV>100% are currently in modification trial periods.

180 DPD written down to estimated

recoverable value

0-179 DPD

Loan modifications (TDRs)

180 DPD updated LTV

100%

Wells Fargo 4Q11 Supplement

37

Real estate 1-4 family first mortgage portfolio

First lien mortgage loans up $7.5 billion on the

consolidation of $5.6 billion of reverse mortgages;

runoff portfolios declined $2.4 billion

-

Pick-a-Pay non-PCI portfolio down 3%

-

PCI portfolio down 2%

-

Debt consolidation down 4%

-

Core first lien up 5%

Debt consolidation charge-offs increased $53

million

Core first lien mortgage nonaccruals down $90

million, or 24 bps

Core net charge-offs down $6 million

(1)  Ratios on WFF debt consolidation loan portfolio only.

(2)  Ratios on non runoff first lien mortgage loan portfolio only.

($ in millions)

4Q11

3Q11

Total real estate 1-4 family first mortgage

$

228,894

223,758

Less consumer non-strategic/liquidating portfolios:

Pick-a-Pay non-PCI first lien mortgage

36,596

37,646

PCI first lien mortgage

29,746

30,446

WFF debt consolidation portfolio

16,542

17,186

Core first lien mortgage

146,010

138,480

Nonaccrual loans

$

2,304

2,334

as % of loans

13.93 %

13.58

Net charge-offs

$

244

191

as % of average loans

5.78 %

4.37

Nonaccrual loans

$

4,700

4,790

as % of loans

3.22 %

3.46

Net charge-offs

$

404

410

as % of loans

1.10 %

1.17

WFF debt consolidation mortgage loan performance

(1)

Core first lien mortgage loan performance

(2)

Wells Fargo 4Q11 Supplement

38

Home equity portfolio

Core Portfolio

(1)

Outstandings

down 2%

-

High quality new originations with weighted

average CLTV of 61%, 778 FICO, and 32% total

debt service ratio

4Q11 losses down $35 million, or 9 bps

2+ delinquencies decreased $7 million

Delinquency rate for loans with a CLTV >100%

relatively stable

Unsecured balances

(3)

stable at 17%

Liquidating Portfolio

Outstandings down 5%

4Q11 losses down $5 million

2+ delinquencies declined $11 million

Continued decline in delinquency rate for loans

with a CLTV >100%, 4 bps improvement

Excludes purchased credit-impaired loans.

(1)   Includes equity lines of credit and closed-end junior liens associated with the Pick-a-Pay portfolio totaling $1.5 billion at December 31, 2011, and $1.5 billion at September 30, 2011. 

(2)   CLTV

is

calculated

based

on

outstanding

balance

plus

unused

lines

of

credit

divided

by

estimated

home

value.

Estimated

home

values

are

determined

predominantly

based on

automated valuation models updated through December 2011.

(3)  Unsecured balances, representing the percentage of outstanding balances above the most recent home value.

($ in millions)

4Q11

3Q11

Core Portfolio

(1)

Outstandings

100,882

103,100

Net charge-offs

718

753

  as % of avg loans

2.79

%

2.88

2+ payments past due

3,146

3,153

  as % loans

3.13

%

3.07

% CLTV > 100%

(2)

36

35

2+ payments past due

4.42

%

4.40

% Unsecured balances

(3)

17

17

% 1st lien position

20

20

Liquidating Portfolio

Outstandings

5,710

5,982

Net charge-offs

134

139

  as % of avg loans

9.09

%

8.97

2+ payments past due

270

281

  as % loans

4.73

%

4.69

% CLTV > 100%

(2)

74

73

2+ payments past due

5.02

%

5.06

% 1st lien position

4

4

Wells Fargo 4Q11 Supplement

39

$106.6 billion home equity portfolio

-

20% in 1

st

lien position

-

40%

in

junior

lien

position

behind

WFC

owned

or

serviced

1

st

lien

-

40%

in

junior

lien

position

behind

third

party

1

lien

Excludes purchased credit-impaired loans.

(1)  Delinquency represents two or more payments past due as of November 2011.

Home equity portfolio

Delinquency Status

(1)

of Junior Liens Behind a Wells Fargo 1

st

Lien

Delinquency Status

Current 1

st

lien, Current junior lien

95.6

%

Current 1

st

lien, Delinquent junior lien

1.1

Delinquent 1

st

lien, Current junior lien

1.5

Delinquent 1

st

lien, Delinquent junior lien

1.8

Outstanding Balance %

st

Wells Fargo 4Q11 Supplement

40

Credit card portfolio

$22.8 billion credit card outstandings up 5% from

3Q11 on new customer growth and higher

consumer spending from existing customers

-

New accounts increased 6% in the quarter with

household penetration increasing to 27.0%

(1)

•

East penetration of 16.6%

(1)

-

Purchase dollar volumes increased 6% and 

transactions grew 7% from 3Q11

-

Purchase dollar volume increased 13% and

transactions grew 16% from 4Q10

Net charge-offs down $10 million LQ, or 27 bps,

reflecting continued steady improvement

(1)  Household penetration as of November, 2011 and defined as the percentage of retail banking deposit households that have a credit card with Wells Fargo.

($ in millions)

4Q11

3Q11

Credit card outstandings

$

22,836

21,650

Net charge-offs

256

266

  as % of avg loans

4.63

%

4.90

Wells Fargo 4Q11 Supplement

41

Auto portfolio

Core Portfolio

Total outstandings up 1% LQ and up 8% YoY

-

Originations were down 6% LQ reflecting

increased competition in the marketplace; 2011

originations increased 11% from 2010

Net charge-offs relatively stable on strong used

car values

-

December Manheim index of 125.1, up 2% LQ

and up 1% from December 2010 

30+ days past due increased $59 million LQ, or

11 bps, reflecting expected seasonality and

portfolio growth

Liquidating Portfolio

(1)

Legacy Wells Fargo Financial indirect auto

outstandings down 21% LQ driven by paydowns

(1)  Legacy Wells Fargo Indirect portfolio.

($ in millions)

4Q11

3Q11

Core Portfolios

Direct

Auto outstandings

$

2,529

2,636

Nonaccrual loans

67

75

  as % of loans

2.66

%

2.84

Net charge-offs

$

16

11

  as % of avg loans

2.43

%

1.57

30+ days past due

$

75

66

  as % of loans

        2.98

%

        2.49

Indirect

Auto outstandings

$

39,647

39,139

Nonaccrual loans

9

12

  as % of loans

0.02

%

0.03

Net charge-offs

$

68

69

  as % of avg loans

0.69

%

0.71

30+ days past due

$

571

521

  as % of loans

1.44

%

1.33

Auto outstandings

$

2,455

3,101

Nonaccrual loans

83

97

  as % of loans

3.39

%

3.14

Net charge-offs

$

31

25

  as % of avg loans

4.47

%

2.85

30+ days past due

$

230

208

  as % of loans

9.35

%

6.72

Liquidating portfolio

(1)

Wells Fargo 4Q11 Supplement

42

Forward-looking statements and additional information

Forward-looking statements:

This Quarterly Supplement and management’s related presentation contain forward-looking statements about our future financial

performance.

These

forward-looking

statements

include

statements

using

words

such

as

“believe,”

“expect,”

“anticipate,”

“estimate,”

“target”, “should,”

“may,”

“can,”

“will,”

“outlook,”

“appears”

or similar expressions. These forward-looking statements may include,

among others, statements about: expected or estimated future losses in our loan portfolios, including our belief that the allowance

for loan losses is expected to decline; expected or estimated loan loss reserve releases; mortgage repurchase exposure; exposure

related to mortgage practices, including foreclosures and servicing; our noninterest expense, including our targeted noninterest

expense for first quarter 2012 and fourth quarter 2012 as part of our expense management initiatives; the future economic

environment;

loan

growth;

reduction

or

mitigation

of

risk

in

our

loan

portfolios;

future

effects

of

loan

modification

programs;

life-of-

loan loss estimates; the estimated impact of regulatory reform on our financial results and business and expectations regarding our

efforts

to

mitigate

such

impact;

and

our

estimated

Tier

1

common

equity

ratio

as

of

December

31,

2011,

under

proposed

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 page 14 of Wells Fargo’s press release announcing our fourth quarter 2011 results, as well as Wells

Fargo’s

reports

filed

with

the

Securities

and

Exchange

Commission,

including

the

discussion

under

“Risk

Factors”

in

our

Quarterly

Reports on Form 10-Q for the periods ended June 30, 2011 and September 30, 2011.

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.

Wells Fargo 4Q11 Supplement

43

Tier 1 common equity under Basel I

(1)

Quarter ended

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

2011

2011

2011

2011

2010

$

141.7

139.2

137.9

134.9

127.9

(1.5)

(1.5)

(1.5)

(1.5)

(1.5)

140.2

137.7

136.4

133.4

126.4

(10.6)

(10.6)

(10.6)

(10.6)

(8.1)

(34.0)

(34.4)

(34.6)

(35.1)

(35.5)

3.8

4.0

4.1

4.2

4.3

(0.8)

(0.7)

(0.9)

(0.9)

(0.9)

(3.1)

(3.7)

(5.3)

(4.9)

(4.6)

(0.4)

(0.4)

(0.3)

(0.1)

(0.3)

(A)

$

95.1

91.9

88.8

86.0

81.3

(B)

$

1,005.3

983.2

970.2

962.9

980.0

(A)/(B)

9.46

%

9.34

9.15

8.93

8.30

(1)

(2)

Total risk-weighted assets

(2)

Tier 1 common equity to total risk-weighted assets

Cumulative other comprehensive income

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 December 31, 2011, preliminary risk-weighted

assets reflect estimated on-balance sheet risk-weighted assets of $838.7 billion and derivative and off-balance sheet risk-weighted assets of $166.6 billion.

Tier 1 common equity is a non-generally accepted accounting principle (GAAP) financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial

services companies. Management reviews Tier 1 common equity along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the

corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.

Other

Tier 1 common equity

MSRs over specified limitations

Wells Fargo & Company and Subsidiaries

($ in billions)

Total equity

Noncontrolling interests

Total Wells Fargo stockholders' equity

Adjustments:

FIVE QUARTER TIER 1 COMMON EQUITY UNDER BASEL I

(1)

Preferred equity

Goodwill and intangible assets (other than MSRs)

Applicable deferred taxes

Wells Fargo 4Q11 Supplement

44

Tier 1 common equity under Basel III (Estimated)

(1)

Quarter ended

Dec. 31,

2011

$

95.1

3.1

Other

0.3

(C)

98.5

(D)

$

1,314.6

(C)/(D)

7.49

%

(1)

(2)

Tier

1

common

equity

is

a

non-generally

accepted

accounting

principle

(GAAP)

financial

measure

that

is

used

by

investors,

analysts

and

bank regulatory agencies to assess the capital position of financial services companies. Management reviews Tier 1 common equity

along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the

corresponding

reconciliation

to

total

equity,

because

of

current

interest

in

such

information

on

the

part

of

market

participants.

Wells Fargo & Company and Subsidiaries

TIER 1 COMMON EQUITY UNDER BASEL III (ESTIMATED)

(1)

($ in billions)

Tier 1 common equity under Basel I

Adjustments from Basel I to Basel III:

Cumulative other comprehensive income

(2)

Tier 1 common equity anticipated under Basel III

Total risk-weighted assets anticipated under Basel III

(3)

Tier 1 common equity to total risk-weighted assets

anticipated under Basel III

Volatility in interest rates can have a significant impact on the valuation of cumulative other comprehensive income and MSRs and

therefore, impact adjustments under Basel III in future reporting periods.

(3)

Under

current

Basel

proposals,

risk-weighted

assets

incorporate

different

classifications

of

assets,

with

certain

risk

weights

based

on

a

borrower's

credit

rating

or

Wells

Fargo's

own

risk

models,

along

with

adjustments

to

address

a

combination

of

credit/counterparty,

operational

and

market

risks,

and

other

Basel

III

elements.

The

amount

of

risk-weighted

assets

anticipated

under

Basel

III

is

preliminary

and subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory

authorities.