Wells Fargo Reports Record Quarterly Net Income of $3.9 Billion

Increased Revenue and Loans, Lower Expenses from First Quarter

SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE:WFC):

“We are pleased with the increased revenue in the quarter, reflecting the stability in loan balances and overall strength of our diversified sources of fee income”

• Strong financial results:
  • Record Wells Fargo net income of $3.9 billion, up 29 percent from prior year, up 5 percent from prior quarter
  • Record diluted earnings per common share of $0.70, up 27 percent from prior year, up 4 percent from prior quarter
  • Pre-tax pre-provision profit (PTPP)¹ of $7.9 billion, up 4 percent from prior quarter
  • Return on average assets of 1.27 percent, highest in 3 years
  • Revenue of $20.4 billion, up from $20.3 billion in prior quarter
  • Noninterest expense down $258 million from prior quarter
  • Average checking and savings deposits up 9 percent from prior year; consumer checking accounts up a net 7.0 percent from June 30, 2010
  • Total loans of $751.9 billion at June 30, 2011, up $766 million from March 31, 2011; core loan portfolios up $5.8 billion from March 31, 2011²
• Improved capital position:
  • Capital ratios increased, with Tier 1 common equity ratio of 9.2 percent under Basel I at June 30, 2011; under current Basel III capital proposals, Tier 1 common equity ratio estimated at 7.4 percent³
  • Redeemed $3.4 billion of trust preferred securities
  • Re-started open market common stock repurchase program; purchased 35 million shares in second quarter 2011
• Improved credit quality:
  • Net loan charge-offs declined to $2.8 billion, down $372 million from prior quarter; down $1.7 billion from prior year
  • Nonperforming assets declined to $27.9 billion, down $2.6 billion from prior quarter; down $4.9 billion from prior year
  • Reserve release⁴ of $1.0 billion (pre tax) reflected improved portfolio performance
• Converted Wachovia banking stores in Pennsylvania and Florida; remaining Eastern banking markets scheduled to convert by year end; 83 percent of banking customers company-wide on a single system

¹ See footnote (2) in SUMMARY FINANCIAL DATA table for more information on pre-tax, pre-provision profit.

² See table in "Loans" section for more information on core and non-strategic/liquidating loan portfolios.

³ See TIER 1 COMMON EQUITY tables for more information on Tier 1 common equity.

⁴ Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

Selected Financial Information
	Quarter ended
	June 30,			Mar. 31,	June 30,
	2011			2011	2010
Earnings
Diluted earnings per common share	$	0.70		0.67	0.55
Wells Fargo net income (in billions)		3.95		3.76	3.06
Asset Quality
Net charge-offs as a % of avg. total loans (annualized)		1.52	%	1.73	2.33
Allowance as a % of total loans		2.83		2.98	3.27
Allowance as a % of annualized net charge-offs		187		172	139
Other
Revenue (in billions)	$	20.39		20.33	21.39
Average loans (in billions)		751.3		754.1	772.5
Average core deposits (in billions)		807.5		796.8	761.8
Net interest margin		4.01	%	4.05	4.38

Wells Fargo & Company (NYSE:WFC) reported record net income of $3.9 billion, or $0.70 per diluted common share, for second quarter 2011, up from $3.1 billion, or $0.55 per share, for second quarter 2010 and up from $3.8 billion, or $0.67 per share, for first quarter 2011.

“Our business fundamentals were strong with increased revenues, loans and deposits, lower operating costs, improved credit quality and higher capital levels,” said Chairman and CEO John Stumpf. “While the economic recovery continues to be slower than expected, there are signs that businesses are investing for growth, and we’re here to help them. We’re enjoying strong loyalty and market share growth as we continue to focus on helping our customers emerge from the economic downturn. We’re right on track with our integration, having converted 2,215 Wachovia stores to date, including most recently one of our largest East Coast states, Florida. We continue to be focused on building and managing our diversified company for the long-term benefit of our team members, customers, shareholders and communities and feel we are very well positioned to capture future growth opportunities.”

Revenue

Revenue was $20.4 billion, compared with $20.3 billion in first quarter 2011. Businesses generating double-digit linked-quarter annualized revenue growth included corporate banking, commercial real estate, debit card, insurance, international, merchant services, retirement services and SBA lending. “We are pleased with the increased revenue in the quarter, reflecting the stability in loan balances and overall strength of our diversified sources of fee income,” said Chief Financial Officer Tim Sloan.

Net Interest Income

Net interest income was $10.7 billion, up $27 million from first quarter 2011. Average earning assets increased $10 billion from first quarter 2011, driven by growth in short-term investments and high-quality shorter-duration available for sale securities. Excluding the planned runoff of non-strategic/liquidating portfolios⁵, average loan balances increased from the prior quarter. Continued success in generating low-cost deposits enabled the Company to grow assets while reducing long-term debt, including the redemption of higher-yielding trust preferred securities. Lower cost funding was the primary driver of the increase in net interest income on a linked-quarter basis. Higher short-term investment balances contributed to the slight margin decline from 4.05 percent in first quarter 2011 to 4.01 percent in second quarter.

⁵ Non-strategic/liquidating portfolios include Pick-a-Pay, liquidating home equity, legacy Wells Fargo Financial indirect auto and debt consolidation, education finance government loans and other PCI loans.

Noninterest Income

Noninterest income was $9.7 billion, up $30 million from first quarter 2011. On a linked-quarter basis, deposit service charges increased 6 percent due to seasonal increases in customer spending and customer account growth. Card fees were up 5 percent from first quarter 2011 on higher debit and credit card spending volumes and new customer account growth. Insurance fees increased 13 percent linked quarter primarily due to seasonally higher crop insurance sales. Gains on trading assets were down due to softer equity and fixed income market conditions but were more than offset by higher gains from equity investments. “Second quarter performance was notable for the diversity of sources of growth and the resilience of non-mortgage banking fee income, up $427 million from first quarter to our highest level since the merger with Wachovia,” said Sloan.

Mortgage banking noninterest income was $1.6 billion, down $397 million from first quarter 2011 on $64 billion of originations compared with $84 billion of originations in first quarter. Mortgage banking noninterest income in second quarter included a $242 million provision for mortgage loan repurchase losses compared with $249 million in first quarter (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were a $374 million gain compared with a $379 million gain in first quarter 2011. The ratio of MSRs to related loans serviced for others was 87 basis points and the average note rate on the servicing portfolio was 5.26 percent, compared with an average 4.51 percent published rate in the Freddie Mac Primary Mortgage Market Survey at quarter end. The unclosed pipeline at June 30, 2011, was $51 billion compared with $45 billion at March 31, 2011.

The Company had net unrealized securities gains of $9.3 billion at June 30, 2011, up $397 million from first quarter 2011. Period-end securities available for sale balances were up $18.4 billion, reflecting increased investment activity in second quarter.

Noninterest Expense

Noninterest expense was $12.5 billion, down $258 million from first quarter 2011. Second quarter expenses included $484 million of merger integration costs (up from $440 million in first quarter 2011 on increased integration activity in second quarter), and $428 million of operating losses (down from $472 million in first quarter 2011), substantially all for litigation accruals for mortgage foreclosure-related matters. “Merger costs remained within expectations and we are beginning to see positive results from our expense management initiatives,” said Sloan. “While we are still in the early stages of this effort, we expect meaningful cost savings over time, and are targeting $11 billion of noninterest expense for fourth quarter 2012⁶.”

⁶ See 2Q11 quarterly supplement for additional information regarding noninterest expense and the Company’s targeted noninterest expense for 4Q12.

Loans

Total loans were $751.9 billion at June 30, 2011, up $766 million from $751.2 billion at March 31, 2011. Increased balances in many commercial loan portfolios more than offset the continued planned reduction in the non-strategic/liquidating portfolios, which declined $5.1 billion in the quarter compared with a $6.5 billion decline in first quarter 2011. Many portfolios had double-digit linked quarter annualized growth in average loan balances, including asset-backed finance, capital finance, commercial banking, commercial real estate, government banking, insurance, international, and real estate capital markets.

	June 30, 2011					March 31, 2011
(in millions)	Core		Liquidating (1)		Total	Core	Liquidating (1)		Total
Commercial	$	323,673	7,016		330,689	315,715	7,507		323,222
Consumer		306,495	114,737		421,232	308,619	119,314		427,933
Total loans	$	630,168	121,753		751,921	624,334	126,821		751,155
Change from prior quarter:	$	5,834	(5,068	)	766	371	(6,483	)	(6,112	)
(1) See NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS table 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 $807.5 billion, up 6 percent from a year ago and up 5 percent (annualized) from first quarter 2011. Consumer checking accounts grew a net 7.0 percent from June 30, 2010. Average core checking and savings deposits were $735.4 billion, up 9 percent from a year ago and up 7 percent (annualized) from first quarter 2011. Average mortgage escrow deposits were $23.9 billion compared with $25.7 billion a year ago and $27.9 billion in first quarter 2011. Average checking and savings deposits were 91 percent of average core deposits, up from 88 percent a year ago. The average deposit cost for second quarter 2011 was 28 basis points compared with 30 basis points in first quarter 2011. Average core deposits were 107 percent of average loans.

Capital

Capital increased in the second quarter, with Tier 1 common equity reaching 9.2 percent. Under current Basel III proposals, the Tier 1 common equity ratio was an estimated 7.4 percent. The Company redeemed $3.4 billion of trust preferred securities, repurchased 35 million shares of its common stock and paid a quarterly common stock dividend of $0.12 per share.

	June 30,		Mar. 31,	June 30,
(as a percent of total risk-weighted assets)	2011		2011	2010
Ratios under Basel I (1):
Tier 1 common equity (2)	9.2	%	8.9	7.6
Tier 1 capital	11.7		11.5	10.5
Tier 1 leverage	9.4		9.3	8.7
(1) June 30, 2011, ratios are preliminary.
(2) See TIER 1 COMMON EQUITY tables for more information on Tier 1 common equity.

Credit Quality

“Credit quality continued to improve in the second quarter, our sixth consecutive quarter of declining loan losses and the third consecutive quarter of lower nonperforming assets,” said Mike Loughlin, Chief Risk Officer. Second quarter net charge-offs were $2.8 billion, or 1.52 percent (annualized) of average loans, down $372 million from first quarter net charge-offs of $3.2 billion (1.73 percent). The decline in net charge-offs was driven by lower losses in virtually every loan category and delinquency trends continued to show improvement. Reflecting the improved overall portfolio performance, the provision for credit losses was $1.0 billion less than net charge-offs. “Absent significant deterioration in the economy, we expect future reserve releases,” said Loughlin.

Net Loan Charge-Offs
	Quarter ended
	June 30, 2011				March 31, 2011				December 31, 2010
($ in millions)	Net loan charge- offs		As a % of average loans (1)		Net loan charge- offs		As a % of average loans (1)		Net loan charge- offs		As a % of average loans (1)
Commercial:
Commercial and industrial	$	254	0.66	%	$	354	0.96	%	$	500	1.34	%
Real estate mortgage		128	0.50			152	0.62			234	0.94
Real estate construction		72	1.32			83	1.38			171	2.51
Lease financing		1	0.01			6	0.18			21	0.61
Foreign		47	0.52			28	0.34			28	0.36
Total commercial		502	0.62			623	0.79			954	1.19
Consumer:
Real estate 1-4 family first mortgage		909	1.62			904	1.60			1,024	1.77
Real estate 1-4 family junior lien mortgage		909	3.97			994	4.25			1,005	4.08
Credit card		294	5.63			382	7.21			452	8.21
Other revolving credit and installment		224	1.03			307	1.42			404	1.84
Total consumer		2,336	2.21			2,587	2.42			2,885	2.63
Total	$	2,838	1.52	%	$	3,210	1.73	%	$	3,839	2.02	%
(1) Quarterly net charge-offs as a percentage of average loans are annualized. See explanation in PURCHASED CREDIT-IMPAIRED (PCI) LOANS table of the accounting for purchased credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets ended the quarter at $27.9 billion, down 8 percent from $30.5 billion in the first quarter. Nonaccrual loans declined to $23.0 billion from $25.0 billion in the first quarter, with reductions across all major loan portfolios. Foreclosed assets decreased 12 percent to $4.9 billion, the third consecutive quarterly decline despite extended foreclosure timelines in many states. A significant portion of the reduction in commercial nonperforming loans resulted from loans that returned to performing status, loan payoffs and loan sales, reflecting an improved credit landscape and market liquidity. Similarly, the reduction in consumer nonperforming loans was driven in part by an asset sale, increased success in home modifications and increased short sale activity.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
	June 30, 2011					March 31, 2011					December 31, 2010
($ in millions)	Total balances			As a % of total loans		Total balances			As a % of total loans		Total balances			As a % of total loans
Commercial:
Commercial and industrial	$	2,393		1.52	%	$	2,653		1.76	%	$	3,213		2.12	%
Real estate mortgage		4,691		4.62			5,239		5.18			5,227		5.26
Real estate construction		2,043		9.56			2,239		9.79			2,676		10.56
Lease financing		79		0.61			95		0.73			108		0.82
Foreign		59		0.16			86		0.24			127		0.39
Total commercial		9,265		2.80			10,312		3.19			11,351		3.52
Consumer:
Real estate 1-4 family first mortgage		11,427		5.13			12,143		5.36			12,289		5.34
Real estate 1-4 family junior lien mortgage		2,098		2.33			2,235		2.40			2,302		2.39
Other revolving credit and installment		255		0.29			275		0.31			300		0.35
Total consumer		13,780		3.27			14,653		3.42			14,891		3.42
Total nonaccrual loans		23,045		3.06			24,965		3.32			26,242		3.47
Foreclosed assets:
GNMA		1,320					1,457					1,479
Non GNMA		3,541					4,055					4,530
Total foreclosed assets		4,861					5,512					6,009
Total nonperforming assets	$	27,906		3.71	%	$	30,477		4.06	%	$	32,251		4.26	%
Change from prior quarter:
Total nonaccrual loans	$	(1,920	)			$	(1,277	)			$	(2,063	)
Total nonperforming assets		(2,571	)				(1,774	)				(2,181	)

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing also improved in the quarter, totaling $17.3 billion at June 30, 2011, compared with $17.9 billion at March 31, 2011. Loans whose repayments are insured by the Federal Housing Administration or predominantly guaranteed by the Department of Veterans Affairs for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $15.5 billion at June 30, 2011, flat from first quarter. All other loans 90 days or more past due and still accruing balances declined 25 percent from the prior quarter.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $21.3 billion at June 30, 2011, down from $22.4 billion at March 31, 2011. The allowance coverage to total loans was 2.83 percent compared with 2.98 percent in the prior quarter. The allowance covered 1.87 times annualized second quarter net charge-offs compared with 1.72 times in the prior quarter. The allowance coverage to nonaccrual loans was 92 percent at June 30, 2011, compared with 90 percent at March 31, 2011. “We believe the allowance was adequate for losses inherent in the loan portfolio at June 30, 2011,” said Loughlin.

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

Business Segment Performance

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

	Quarter ended
	June 30,		Mar. 31,	June 30,
(in millions)	2011		2011	2010
Community Banking	$	2,087	2,175	1,716
Wholesale Banking		1,931	1,652	1,462
Wealth, Brokerage and Retirement		333	339	270

More financial information about the business segments is in the OPERATING SEGMENT RESULTS tables.

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
	June 30,		Mar. 31,	June 30,
(in millions)	2011		2011	2010
Total revenue	$	12,567	12,637	13,606
Provision for credit losses		1,927	2,065	3,348
Noninterest expense		7,418	7,605	7,678
Segment net income		2,087	2,175	1,716
(in billions)
Average loans		498.2	509.8	534.3
Average assets		752.5	759.9	771.3
Average core deposits		552.0	548.1	532.6

Community Banking reported net income of $2.1 billion, down $88 million, or 4 percent, from prior quarter and up $371 million, or 22 percent, from second quarter 2010. Revenue decreased $70 million from first quarter 2011 driven primarily by a decline in mortgage banking income from lower originations and continued expected reductions in the home equity loan portfolio, offset by gains on equity investments and lower deposit costs. Revenue decreased $1.0 billion, or 8 percent, from second quarter 2010 largely due to lower mortgage banking income, lower deposit service charges as a result of Regulation E and the expected reduction in the liquidating loan portfolios, partially offset by the impact of a robust used car market on the indirect auto portfolio, strong debit card growth and equity gains. Noninterest expense decreased $187 million, or 2 percent, from first quarter 2011, reflecting improved credit costs, as well as lower software license and other equipment expense. Noninterest expense decreased $260 million, or 3 percent, from second quarter 2010 due to reduced personnel costs, a decrease in software license expense and lower operating losses. The provision for credit losses decreased $138 million from first quarter 2011 and $1.4 billion from second quarter 2010. The decline was due to a $288 million decrease in net loan charge-offs from first quarter 2011, a $1.1 billion decrease from second quarter 2010, as well as a $700 million reserve release in second quarter 2011, compared with a release of $850 million and $389 million in first quarter 2011 and second quarter 2010, respectively.

Regional Banking Highlights

• Strong growth in checking accounts from June 30, 2010 (combined Regional Banking)
  • Consumer checking accounts up a net 7.0 percent
  • Business checking accounts up a net 4.5 percent
  • Consumer checking accounts up a net 7.9 percent in California, 9.2 percent in New Jersey, 9.5 percent in North Carolina and 11.1 percent in Florida
• Strong solutions in second quarter 2011
  • West
    • Core product solutions (sales) of 8.33 million, up 16 percent from prior year
    • Sales of Wells Fargo Packages^® (a checking account and three other products) up 19 percent from prior year, purchased by 85 percent of new checking account customers
  • East
    • Eastern core product solutions grew by double-digits from prior year
    • For eastern states on Wells Fargo systems the entire quarter, 81 percent of new checking account customers purchased Wells Fargo Packages
    • Platform banker full-time equivalents grew by nearly 1,500, or 16 percent, from prior year
• Retail bank household cross-sell ratio for combined company of 5.84 products per household, up from 5.64 in second quarter 2010; cross-sell in the West of 6.25, compared with 5.29 in the East, represents the opportunity to earn more business from customers in the East

• Small Business/Business Banking
  • Named U.S. Small Business Administration’s 2011 SBA 7(a) Large Lender of the Year
  • Record store-based business solutions up 8 percent from prior year (West)
  • Sales of Wells Fargo Business Services Packages (business checking account and at least three other business products) up 23 percent from prior year, purchased by 70 percent of new business checking account customers (West)
  • Business Banking household cross-sell of 4.17 products per household (West)
  • Wells Fargo, America’s #1 small business lender, made $7.5 billion in new loan commitments to its small business customers in the first half of 2011, a 13 percent increase in dollars lent from first half of 2010
• Online and Mobile Banking
  • 19.3 million combined active online customers (as of May 31, 2011)
  • 6.0 million combined active mobile customers (as of May 31, 2011)

Wells Fargo Home Mortgage (Home Mortgage)

• Home Mortgage applications of $109 billion, compared with $102 billion in prior quarter, driven in part by lower average rates in the quarter
• Home Mortgage application pipeline of $51 billion at quarter end, compared with $45 billion at March 31, 2011
• Home Mortgage originations of $64 billion, down from $84 billion in prior quarter
• Residential mortgage servicing portfolio of $1.8 trillion
• As of June 30, 2011, approximately 695,000 active trial or completed loan modifications had been initiated since the beginning of 2009; of this total, 85 percent were through Wells Fargo’s own modification programs and the rest were through the federal government’s Home Affordable Modification Program (HAMP)

Wholesale Banking provides financial solutions to businesses across the United States with annual sales generally in excess of $20 million and to financial institutions globally. Products & business units include Middle Market Commercial Banking, Government & Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, 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
	June 30,			Mar. 31,	June 30,
(in millions)	2011			2011	2010
Total revenue	$	5,631		5,460	5,774
Provision (reversal of provision) for credit losses		(97	)	134	635
Noninterest expense		2,766		2,800	2,873
Segment net income		1,931		1,652	1,462
(in billions)
Average loans		243.1		234.7	228.2
Average assets		415.7		399.6	369.5
Average core deposits		190.6		184.8	162.3

Wholesale Banking reported net income of $1.9 billion, up $279 million, or 17 percent, from first quarter 2011 and up $469 million, or 32 percent, from second quarter 2010. Revenue increased $171 million, or 3 percent, from the prior quarter as strong loan and revenue growth across most lending businesses, solid investment banking results, seasonally higher insurance fees and higher PCI-related resolutions more than offset weakness in sales and trading and lower equity fund gains. Revenue decreased $143 million, or 2 percent, from prior year as strong growth across core businesses, including loan and deposit growth, was more than offset by lower PCI-related resolutions and other gains. Noninterest expense decreased $34 million, or 1 percent, from prior quarter related to lower personnel expense and decreased $107 million, or 4 percent, from prior year related to lower litigation and foreclosed asset expenses. The provision for credit losses declined $732 million from second quarter 2010, and included a $300 million reserve release this quarter compared with a $111 million reserve release a year ago along with a $543 million improvement in net credit losses.

• Linked quarter average loan growth in many portfolios, including asset-backed finance, commercial banking, commercial real estate, corporate banking, government banking, international, real estate capital markets, and capital finance, driven primarily by new customer activity
• Continued improvement in nonperforming assets
• Average core deposits up 17 percent from prior year, reflecting continued strong customer liquidity
• U.S. investment banking market share year to date 2011 of 4.7 percent, up from 4.2 percent for full year 2010 (source: Dealogic fee-based league tables)
• Wells Fargo named Best Trade Bank in the USA by Trade Finance

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

Selected Financial Information
	Quarter ended
	June 30,		Mar. 31,	June 30,
(in millions)	2011		2011	2010
Total revenue	$	3,086	3,150	2,867
Provision for credit losses		61	41	81
Noninterest expense		2,487	2,559	2,350
Segment net income		333	339	270
(in billions)
Average loans		43.5	42.7	42.6
Average assets		147.7	146.5	141.0
Average core deposits		126.0	125.4	121.5

Wealth, Brokerage and Retirement reported net income of $333 million, down $6 million from first quarter 2011 and up $63 million from second quarter 2010. Revenue was $3.1 billion, down 2 percent from first quarter 2011 due to lower brokerage transaction revenue and up 8 percent from second quarter 2010 driven by higher asset-based revenues and higher securities gains in the brokerage business. The provision for credit losses increased $20 million from first quarter 2011 and decreased $20 million from second quarter 2010. Noninterest expense declined 3 percent from first quarter on reduced personnel costs and increased 6 percent from second quarter 2010 due to growth in personnel costs, primarily broker commissions driven by higher production levels. Average core deposits increased $600 million from first quarter 2011 and $4.5 billion from second quarter 2010.

Retail Brokerage

• Client assets of $1.2 trillion, up 12 percent from prior year
• Managed account assets increased $62 billion, or 31 percent, from prior year driven by strong net flows and solid market gains
• Strong deposit growth, with average balances up $5 billion, or 6 percent, from prior year
• Announced sale of H.D. Vest Financial Services

Wealth Management

• Client assets of $204 billion, up 8 percent from prior year
• Investment management and trust asset-based revenue up 8 percent from prior year

Retirement

• Institutional retirement plan assets of $247 billion, up $37 billion, or 18 percent, from prior year
• IRA assets of $286 billion, up $39 billion, or 16 percent, from prior year

Conference Call

The Company will host a live conference call on Tuesday, July 19, at 6:30 a.m. PDT (9:30 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (international). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and http://us.meeting-stream.com/wellsfargocompany_072011.

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on July 19 through Tuesday, July 26. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291 (international) and enter Conference ID #76224090. The replay will also be available online at wellsfargo.com/invest_relations/earnings.

Cautionary Statement about Forward-Looking Information

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

Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. Several factors could cause actual results to differ materially from expectations including: current and future economic and market conditions, including the effects of further declines in housing prices and high unemployment rates; our capital requirements (including under regulatory capital standards as determined and interpreted by applicable regulatory authorities such as the proposed Basel III capital regulations) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses (including the Dodd-Frank Wall Street Reform and Consumer Protection Act); the extent of success in our loan modification efforts, including the effects of regulatory requirements, or changes in regulatory requirements, relating to loan modifications; the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties; negative effects relating to mortgage foreclosures, including changes in our procedures or practices and/or industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures; our ability to realize our noninterest expense target as part of our expense management initiatives when and in the amount targeted, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters; our ability to successfully and timely integrate the Wachovia merger and realize the expected cost savings and other benefits, including delays or disruptions in system conversions and higher severance costs; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect of changes in interest rates on our net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; hedging gains or losses; disruptions in the capital markets and reduced investor demand for mortgage loans; our ability to sell more products to our customers; the effect of the economic recession on the demand for our products and services; the effect of fluctuations in stock market prices on fee income from our brokerage, asset and wealth management businesses; our election to provide support to our mutual funds for structured credit products they may hold; changes in the value of our venture capital investments; changes in our accounting policies or in accounting standards or in how accounting standards are to be applied; changes in our credit ratings and changes in the credit ratings of our customers or counterparties; mergers and acquisitions; federal and state regulations; reputational damage from negative publicity, fines, penalties and other negative consequences from regulatory violations; the loss of checking and saving account deposits to other investments such as the stock market; and fiscal and monetary policies of the Federal Reserve Board. There is no assurance that our allowance for credit losses will be adequate to cover future credit losses, especially if credit markets, housing prices, and unemployment do not improve. Increases in loan charge-offs or in the allowance for credit losses and related provision expense could materially adversely affect our financial results and condition. For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2010, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, including the discussion under “Risk Factors” in each of these reports, as filed with the SEC and available on the SEC’s website at www.sec.gov. Any factor described above or in our SEC reports could, by itself or together with one or more other factors, adversely affect our financial results and condition.

About Wells Fargo

Wells Fargo & Company (NYSE:WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With approximately 275,000 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	15-16
Income
Consolidated Statement of Income	17-18
Average Balances, Yields and Rates Paid	19-20
Noninterest Income and Noninterest Expense	21-22
Balance Sheet
Consolidated Balance Sheet	23-24
Average Balances	25
Loans
Loans	26
Nonaccrual Loans and Foreclosed Assets	26
Loans 90 Days or More Past Due and Still Accruing	27
Purchased Credit-Impaired Loans	28-30
Pick-A-Pay Portfolio	31
Non-Strategic and Liquidating Loan Portfolios	32
Home Equity Portfolios	32
Allowance for Credit Losses	33-34
Equity
Condensed Consolidated Statement of Changes in Total Equity	35
Tier 1 Common Equity	36
Operating Segments
Operating Segment Results	37-38
Other
Mortgage Servicing and other related data	39-41

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
		Quarter ended June 30,			%				Six months ended June 30,		%
($ in millions, except per share amounts)		2011		2010	Change				2011	2010	Change
For the Period
Wells Fargo net income	$	3,948		3,062	29		%	$	7,707	5,609	37		%
Wells Fargo net income applicable to common stock		3,728		2,878	30				7,298	5,250	39
Diluted earnings per common share		0.70		0.55	27				1.37	1.00	37
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.27	%	1.00	27				1.25	0.92	36
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders' equity (ROE)		11.92		10.40	15				11.95	9.69	23
Efficiency ratio (1)		61.2		59.6	3				61.9	58.0	7
Total revenue	$	20,386		21,394	(5	)		$	40,715	42,842	(5	)
Pre-tax pre-provision profit (PTPP) (2)		7,911		8,648	(9	)			15,507	17,979	(14	)
Dividends declared per common share		0.12		0.05	140				0.24	0.10	140
Average common shares outstanding		5,286.5		5,219.7	1				5,282.7	5,205.1	1
Diluted average common shares outstanding		5,331.7		5,260.8	1				5,329.9	5,243.0	2
Average loans	$	751,253		772,460	(3	)		$	752,657	784,856	(4	)
Average assets		1,250,945		1,224,180	2				1,246,088	1,225,145	2
Average core deposits (3)		807,483		761,767	6				802,184	760,475	5
Average retail core deposits (4)		592,974		574,436	3				588,561	574,059	3
Net interest margin		4.01	%	4.38	(8	)			4.03	4.33	(7	)
At Period End
Securities available for sale	$	186,298		157,927	18			$	186,298	157,927	18
Loans		751,921		766,265	(2	)			751,921	766,265	(2	)
Allowance for loan losses		20,893		24,584	(15	)			20,893	24,584	(15	)
Goodwill		24,776		24,820	-				24,776	24,820	-
Assets		1,259,734		1,225,862	3				1,259,734	1,225,862	3
Core deposits (3)		808,970		758,680	7				808,970	758,680	7
Wells Fargo stockholders' equity		136,401		119,772	14				136,401	119,772	14
Total equity		137,916		121,398	14				137,916	121,398	14
Capital ratios:
Total equity to assets		10.95	%	9.90	11				10.95	9.90	11
Risk-based capital (5):
Tier 1 capital		11.70		10.51	11				11.70	10.51	11
Total capital		15.42		14.53	6				15.42	14.53	6
Tier 1 leverage (5)		9.43		8.66	9				9.43	8.66	9
Tier 1 common equity (6)		9.16		7.61	20				9.16	7.61	20
Common shares outstanding		5,278.2		5,231.4	1				5,278.2	5,231.4	1
Book value per common share	$	23.84		21.35	12			$	23.84	21.35	12
Common stock price:
High		32.63		34.25	(5	)			34.25	34.25	-
Low		25.26		25.52	(1	)			25.26	25.52	(1	)
Period end		28.06		25.60	10				28.06	25.60	10
Team members (active, full-time equivalent)		266,600		267,600	-				266,600	267,600	-
(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 June 30, 2011, ratios are preliminary.
(6) See the "Five Quarter Tier 1 Common Equity" table for additional information.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA
	Quarter ended
	June 30,			Mar. 31,	Dec. 31,	Sept. 30,	June 30,
($ in millions, except per share amounts)	2011			2011	2010	2010	2010
For the Quarter
Wells Fargo net income	$	3,948		3,759	3,414	3,339	3,062
Wells Fargo net income applicable to common stock		3,728		3,570	3,232	3,150	2,878
Diluted earnings per common share		0.70		0.67	0.61	0.60	0.55
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.27	%	1.23	1.09	1.09	1.00
Wells Fargo net income applicable to common stock to average
Wells Fargo common stockholders' equity (ROE)		11.92		11.98	10.95	10.90	10.40
Efficiency ratio (1)		61.2		62.6	62.1	58.7	59.6
Total revenue	$	20,386		20,329	21,494	20,874	21,394
Pre-tax pre-provision profit (PTPP) (2)		7,911		7,596	8,154	8,621	8,648
Dividends declared per common share		0.12		0.12	0.05	0.05	0.05
Average common shares outstanding		5,286.5		5,278.8	5,256.2	5,240.1	5,219.7
Diluted average common shares outstanding		5,331.7		5,333.1	5,293.8	5,273.2	5,260.8
Average loans	$	751,253		754,077	753,675	759,483	772,460
Average assets		1,250,945		1,241,176	1,237,037	1,220,368	1,224,180
Average core deposits (3)		807,483		796,826	794,799	771,957	761,767
Average retail core deposits (4)		592,974		584,100	573,843	571,062	574,436
Net interest margin		4.01	%	4.05	4.16	4.25	4.38
At Quarter End
Securities available for sale	$	186,298		167,906	172,654	176,875	157,927
Loans		751,921		751,155	757,267	753,664	766,265
Allowance for loan losses		20,893		21,983	23,022	23,939	24,584
Goodwill		24,776		24,777	24,770	24,831	24,820
Assets		1,259,734		1,244,666	1,258,128	1,220,784	1,225,862
Core deposits (3)		808,970		795,038	798,192	771,792	758,680
Wells Fargo stockholders' equity		136,401		133,471	126,408	123,658	119,772
Total equity		137,916		134,943	127,889	125,165	121,398
Capital ratios:
Total equity to assets		10.95	%	10.84	10.16	10.25	9.90
Risk-based capital (5):
Tier 1 capital		11.70		11.50	11.16	10.90	10.51
Total capital		15.42		15.30	15.01	14.88	14.53
Tier 1 leverage (5)		9.43		9.27	9.19	9.01	8.66
Tier 1 common equity (6)		9.16		8.93	8.30	8.01	7.61
Common shares outstanding		5,278.2		5,300.9	5,262.3	5,244.4	5,231.4
Book value per common share	$	23.84		23.18	22.49	22.04	21.35
Common stock price:
High		32.63		34.25	31.61	28.77	34.25
Low		25.26		29.82	23.37	23.02	25.52
Period end		28.06		31.71	30.99	25.12	25.60
Team members (active, full-time equivalent)		266,600		270,200	272,200	266,900	267,600
(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 June 30, 2011, ratios are preliminary.
(6) See the "Five Quarter Tier 1 Common Equity" table for additional information.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
								Six months
	Quarter ended June 30,				%			ended June 30,				%
(in millions, except per share amounts)	2011			2010	Change			2011			2010	Change
Interest income
Trading assets	$	347		266	30		%	$	697		533	31		%
Securities available for sale		2,166		2,385	(9	)			4,330		4,800	(10	)
Mortgages held for sale		362		405	(11	)			799		792	1
Loans held for sale		17		30	(43	)			29		64	(55	)
Loans		9,361		10,277	(9	)			18,748		20,315	(8	)
Other interest income		131		109	20				253		193	31
Total interest income		12,384		13,472	(8	)			24,856		26,697	(7	)
Interest expense
Deposits		594		714	(17	)			1,209		1,449	(17	)
Short-term borrowings		20		21	(5	)			46		39	18
Long-term debt		1,009		1,233	(18	)			2,113		2,509	(16	)
Other interest expense		83		55	51				159		104	53
Total interest expense		1,706		2,023	(16	)			3,527		4,101	(14	)
Net interest income		10,678		11,449	(7	)			21,329		22,596	(6	)
Provision for credit losses		1,838		3,989	(54	)			4,048		9,319	(57	)
Net interest income after provision for credit losses		8,840		7,460	18				17,281		13,277	30
Noninterest income
Service charges on deposit accounts		1,074		1,417	(24	)			2,086		2,749	(24	)
Trust and investment fees		2,944		2,743	7				5,860		5,412	8
Card fees		1,003		911	10				1,960		1,776	10
Other fees		1,023		982	4				2,012		1,923	5
Mortgage banking		1,619		2,011	(19	)			3,635		4,481	(19	)
Insurance		568		544	4				1,071		1,165	(8	)
Net gains from trading activities		414		109	280				1,026		646	59
Net gains (losses) on debt securities available for sale		(128	)	30	NM				(294	)	58	NM
Net gains from equity investments		724		288	151				1,077		331	225
Operating leases		103		329	(69	)			180		514	(65	)
Other		364		581	(37	)			773		1,191	(35	)
Total noninterest income		9,708		9,945	(2	)			19,386		20,246	(4	)
Noninterest expense
Salaries		3,584		3,564	1				7,038		6,878	2
Commission and incentive compensation		2,171		2,225	(2	)			4,518		4,217	7
Employee benefits		1,164		1,063	10				2,556		2,385	7
Equipment		528		588	(10	)			1,160		1,266	(8	)
Net occupancy		749		742	1				1,501		1,538	(2	)
Core deposit and other intangibles		464		553	(16	)			947		1,102	(14	)
FDIC and other deposit assessments		315		295	7				620		596	4
Other		3,500		3,716	(6	)			6,868		6,881	-
Total noninterest expense		12,475		12,746	(2	)			25,208		24,863	1
Income before income tax expense		6,073		4,659	30				11,459		8,660	32
Income tax expense		2,001		1,514	32				3,573		2,915	23
Net income before noncontrolling interests		4,072		3,145	29				7,886		5,745	37
Less: Net income from noncontrolling interests		124		83	49				179		136	32
Wells Fargo net income	$	3,948		3,062	29			$	7,707		5,609	37
Less: Preferred stock dividends and other		220		184					409		359
Wells Fargo net income applicable to common stock	$	3,728		2,878	30			$	7,298		5,250	39
Per share information
Earnings per common share	$	0.70		0.55	27			$	1.38		1.01	37
Diluted earnings per common share		0.70		0.55	27				1.37		1.00	37
Dividends declared per common share		0.12		0.05	140				0.24		0.10	140
Average common shares outstanding		5,286.5		5,219.7	1				5,282.7		5,205.1	1
Diluted average common shares outstanding		5,331.7		5,260.8	1				5,329.9		5,243.0	2
NM - Not meaningful

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
	Quarter ended
		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in millions, except per share amounts)		2011		2011		2010		2010		2010
Interest income
Trading assets	$	347		350		295		270		266
Securities available for sale		2,166		2,164		2,374		2,492		2,385
Mortgages held for sale		362		437		495		449		405
Loans held for sale		17		12		15		22		30
Loans		9,361		9,387		9,666		9,779		10,277
Other interest income		131		122		124		118		109
Total interest income		12,384		12,472		12,969		13,130		13,472
Interest expense
Deposits		594		615		662		721		714
Short-term borrowings		20		26		26		27		21
Long-term debt		1,009		1,104		1,153		1,226		1,233
Other interest expense		83		76		65		58		55
Total interest expense		1,706		1,821		1,906		2,032		2,023
Net interest income		10,678		10,651		11,063		11,098		11,449
Provision for credit losses		1,838		2,210		2,989		3,445		3,989
Net interest income after provision for credit losses		8,840		8,441		8,074		7,653		7,460
Noninterest income
Service charges on deposit accounts		1,074		1,012		1,035		1,132		1,417
Trust and investment fees		2,944		2,916		2,958		2,564		2,743
Card fees		1,003		957		941		935		911
Other fees		1,023		989		1,063		1,004		982
Mortgage banking		1,619		2,016		2,757		2,499		2,011
Insurance		568		503		564		397		544
Net gains from trading activities		414		612		532		470		109
Net gains (losses) on debt securities available for sale		(128	)	(166	)	(268	)	(114	)	30
Net gains from equity investments		724		353		317		131		288
Operating leases		103		77		79		222		329
Other		364		409		453		536		581
Total noninterest income		9,708		9,678		10,431		9,776		9,945
Noninterest expense
Salaries		3,584		3,454		3,513		3,478		3,564
Commission and incentive compensation		2,171		2,347		2,195		2,280		2,225
Employee benefits		1,164		1,392		1,192		1,074		1,063
Equipment		528		632		813		557		588
Net occupancy		749		752		750		742		742
Core deposit and other intangibles		464		483		549		548		553
FDIC and other deposit assessments		315		305		301		300		295
Other		3,500		3,368		4,027		3,274		3,716
Total noninterest expense		12,475		12,733		13,340		12,253		12,746
Income before income tax expense		6,073		5,386		5,165		5,176		4,659
Income tax expense		2,001		1,572		1,672		1,751		1,514
Net income before noncontrolling interests		4,072		3,814		3,493		3,425		3,145
Less: Net income from noncontrolling interests		124		55		79		86		83
Wells Fargo net income	$	3,948		3,759		3,414		3,339		3,062
Less: Preferred stock dividends and other		220		189		182		189		184
Wells Fargo net income applicable to common stock	$	3,728		3,570		3,232		3,150		2,878
Per share information
Earnings per common share	$	0.70		0.68		0.62		0.60		0.55
Diluted earnings per common share		0.70		0.67		0.61		0.60		0.55
Dividends declared per common share		0.12		0.12		0.05		0.05		0.05
Average common shares outstanding		5,286.5		5,278.8		5,256.2		5,240.1		5,219.7
Diluted average common shares outstanding		5,331.7		5,333.1		5,293.8		5,273.2		5,260.8

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
	Quarter ended June 30,
	2011							2010
(in millions)		Average balance		Yields/ rates			Interest income/ expense	Average balance		Yields/ rates			Interest income/ expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	98,519		0.32	%	$	80	67,712		0.33	%	$	56
Trading assets		38,015		3.71			352	28,760		3.79			272
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		2,091		2.33			12	2,094		3.50			18
Securities of U.S. states and political subdivisions		22,610		5.35			302	16,192		6.48			255
Mortgage-backed securities:
Federal agencies		74,402		4.76			844	72,876		5.39			930
Residential and commercial		32,536		8.86			664	33,197		9.59			769
Total mortgage-backed securities		106,938		5.98			1,508	106,073		6.72			1,699
Other debt and equity securities		37,037		5.81			502	33,270		7.21			562
Total securities available for sale		168,676		5.81			2,324	157,629		6.75			2,534
Mortgages held for sale (4)		30,674		4.73			362	32,196		5.04			405
Loans held for sale (4)		1,356		5.05			17	4,386		2.73			30
Loans:
Commercial:
Commercial and industrial		153,630		4.60			1,761	147,965		5.44			2,009
Real estate mortgage		101,437		4.16			1,051	97,731		3.89			949
Real estate construction		21,987		4.64			254	33,060		3.44			284
Lease financing		12,899		7.72			249	13,622		9.54			325
Foreign		36,445		2.65			241	29,048		3.62			262
Total commercial		326,398		4.37			3,556	321,426		4.78			3,829
Consumer:
Real estate 1-4 family first mortgage		224,873		4.97			2,792	237,500		5.24			3,108
Real estate 1-4 family junior lien mortgage		91,934		4.25			975	102,678		4.53			1,162
Credit card		20,954		12.97			679	22,239		13.24			736
Other revolving credit and installment		87,094		6.32			1,372	88,617		6.57			1,452
Total consumer		424,855		5.48			5,818	451,034		5.74			6,458
Total loans (4)		751,253		5.00			9,374	772,460		5.34			10,287
Other		4,997		4.10			52	6,082		3.44			53
Total earning assets	$	1,093,490		4.64	%	$	12,561	1,069,225		5.14	%	$	13,637
Funding sources
Deposits:
Interest-bearing checking	$	53,344		0.09	%	$	12	61,212		0.13	%	$	19
Market rate and other savings		455,126		0.20			226	412,062		0.26			267
Savings certificates		72,100		1.42			256	89,773		1.44			323
Other time deposits		12,988		2.03			67	14,936		1.90			72
Deposits in foreign offices		57,899		0.23			33	57,461		0.23			33
Total interest-bearing deposits		651,457		0.37			594	635,444		0.45			714
Short-term borrowings		53,340		0.18			24	45,082		0.22			25
Long-term debt		145,431		2.78			1,009	195,440		2.52			1,233
Other liabilities		10,978		3.03			83	6,737		3.33			55
Total interest-bearing liabilities		861,206		0.80			1,710	882,703		0.92			2,027
Portion of noninterest-bearing funding sources		232,284		-			-	186,522		-			-
Total funding sources	$	1,093,490		0.63			1,710	1,069,225		0.76			2,027
Net interest margin and net interest income on a taxable-equivalent basis (5)				4.01	%	$	10,851			4.38	%	$	11,610
Noninterest-earning assets
Cash and due from banks	$	17,373						17,415
Goodwill		24,773						24,820
Other		115,309						112,720
Total noninterest-earning assets	$	157,455						154,955
Noninterest-bearing funding sources
Deposits	$	199,339						176,908
Other liabilities		53,169						43,713
Total equity		137,231						120,856
Noninterest-bearing funding sources used to fund earning assets		(232,284	)					(186,522	)
Net noninterest-bearing funding sources	$	157,455						154,955
Total assets	$	1,250,945						1,224,180
(1) Our average prime rate was 3.25% for the quarters ended June 30, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.26% and 0.44% for the same quarters, respectively.
(2) Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affected earning assets. Thus yields are based on amortized cost balances computed on a settlement date basis.
(4) Nonaccrual loans and related income are included in their respective loan categories.
(5) Includes taxable-equivalent adjustments of $173 million and $161 million for June 30, 2011 and 2010, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
	Six months ended June 30,
	2011							2010
(in millions)		Average balance		Yields/ rates			Interest income/ expense	Average balance		Yields/ rates			Interest income/ expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	90,994		0.34	%	$	152	54,347		0.33	%	$	89
Trading assets		37,711		3.76			708	28,338		3.85			544
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,834		2.56			23	2,186		3.56			38
Securities of U.S. states and political subdivisions		21,098		5.39			572	14,951		6.53			476
Mortgage-backed securities:
Federal agencies		73,937		4.74			1,676	76,284		5.39			1,953
Residential and commercial		32,734		9.28			1,396	32,984		9.63			1,559
Total mortgage-backed securities		106,671		6.10			3,072	109,268		6.70			3,512
Other debt and equity securities		36,482		5.68			967	32,810		6.86			1,054
Total securities available for sale		166,085		5.87			4,634	159,215		6.67			5,080
Mortgages held for sale (4)		34,686		4.61			799	31,784		4.99			792
Loans held for sale (4)		1,167		4.98			29	5,390		2.39			64
Loans:
Commercial:
Commercial and industrial		151,849		4.62			3,484	152,192		4.97			3,752
Real estate mortgage		100,621		4.04			2,018	97,848		3.79			1,839
Real estate construction		23,128		4.44			509	34,448		3.25			555
Lease financing		12,959		7.78			504	13,814		9.38			648
Foreign		35,050		2.73			476	28,807		3.62			518
Total commercial		323,607		4.35			6,991	327,109		4.50			7,312
Consumer:
Real estate 1-4 family first mortgage		227,208		4.99			5,659	241,241		5.25			6,318
Real estate 1-4 family junior lien mortgage		93,313		4.30			1,993	104,151		4.50			2,330
Credit card		21,230		13.08			1,388	22,789		13.20			1,503
Other revolving credit and installment		87,299		6.34			2,743	89,566		6.49			2,879
Total consumer		429,050		5.51			11,783	457,747		5.72			13,030
Total loans (4)		752,657		5.01			18,774	784,856		5.21			20,342
Other		5,111		4.00			102	6,075		3.40			103
Total earning assets	$	1,088,411		4.69	%	$	25,198	1,070,005		5.10	%	$	27,014
Funding sources
Deposits:
Interest-bearing checking	$	55,909		0.09	%	$	26	61,614		0.14	%	$	42
Market rate and other savings		449,388		0.21			463	408,026		0.27			553
Savings certificates		73,229		1.41			511	92,254		1.40			640
Other time deposits		13,417		2.14			143	15,405		1.97			152
Deposits in foreign offices		57,687		0.23			66	56,453		0.22			62
Total interest-bearing deposits		649,630		0.38			1,209	633,752		0.46			1,449
Short-term borrowings		54,041		0.20			54	45,082		0.20			44
Long-term debt		147,774		2.86			2,113	202,186		2.48			2,509
Other liabilities		10,230		3.13			159	6,203		3.38			104
Total interest-bearing liabilities		861,675		0.82			3,535	887,223		0.93			4,106
Portion of noninterest-bearing funding sources		226,736		-			-	182,782		-			-
Total funding sources	$	1,088,411		0.66			3,535	1,070,005		0.77			4,106
Net interest margin and net interest income on a taxable-equivalent basis (5)				4.03	%	$	21,663			4.33	%	$	22,908
Noninterest-earning assets
Cash and due from banks	$	17,367						17,730
Goodwill		24,774						24,818
Other		115,536						112,592
Total noninterest-earning assets	$	157,677						155,140
Noninterest-bearing funding sources
Deposits	$	196,237						174,487
Other liabilities		54,237						44,224
Total equity		133,939						119,211
Noninterest-bearing funding sources used to fund earning assets		(226,736	)					(182,782	)
Net noninterest-bearing funding sources	$	157,677						155,140
Total assets	$	1,246,088						1,225,145
(1) Our average prime rate was 3.25% for the six months ended June 30, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.29% and 0.35% for the same periods, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affected earning assets. Thus yields are based on amortized cost balances computed on a settlement date basis.
(4) Nonaccrual loans and related income are included in their respective loan categories.
(5) Includes taxable-equivalent adjustments of $334 million and $312 million for June 30, 2011 and 2010, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
								Six months
	Quarter ended June 30,				%			ended June 30,				%
(in millions)	2011			2010	Change			2011			2010	Change
Service charges on deposit accounts	$	1,074		1,417	(24	)	%	$	2,086		2,749	(24	)	%
Trust and investment fees:
Trust, investment and IRA fees		1,020		1,035	(1	)			2,080		2,084	-
Commissions and all other fees		1,924		1,708	13				3,780		3,328	14
Total trust and investment fees		2,944		2,743	7				5,860		5,412	8
Card fees		1,003		911	10				1,960		1,776	10
Other fees:
Cash network fees		94		58	62				175		113	55
Charges and fees on loans		404		401	1				801		820	(2	)
Processing and all other fees		525		523	-				1,036		990	5
Total other fees		1,023		982	4				2,012		1,923	5
Mortgage banking:
Servicing income, net		877		1,218	(28	)			1,743		2,584	(33	)
Net gains on mortgage loan origination/sales activities		742		793	(6	)			1,892		1,897	-
Total mortgage banking		1,619		2,011	(19	)			3,635		4,481	(19	)
Insurance		568		544	4				1,071		1,165	(8	)
Net gains from trading activities		414		109	280				1,026		646	59
Net gains (losses) on debt securities available for sale		(128	)	30	NM				(294	)	58	NM
Net gains from equity investments		724		288	151				1,077		331	225
Operating leases		103		329	(69	)			180		514	(65	)
All other		364		581	(37	)			773		1,191	(35	)
Total	$	9,708		9,945	(2	)		$	19,386		20,246	(4	)
NM - Not meaningful
NONINTEREST EXPENSE
								Six months
	Quarter ended June 30,				%			ended June 30,				%
(in millions)	2011			2010	Change			2011			2010	Change
Salaries	$	3,584		3,564	1		%	$	7,038		6,878	2		%
Commission and incentive compensation		2,171		2,225	(2	)			4,518		4,217	7
Employee benefits		1,164		1,063	10				2,556		2,385	7
Equipment		528		588	(10	)			1,160		1,266	(8	)
Net occupancy		749		742	1				1,501		1,538	(2	)
Core deposit and other intangibles		464		553	(16	)			947		1,102	(14	)
FDIC and other deposit assessments		315		295	7				620		596	4
Outside professional services		659		572	15				1,239		1,056	17
Contract services		341		384	(11	)			710		731	(3	)
Foreclosed assets		305		333	(8	)			713		719	(1	)
Operating losses		428		627	(32	)			900		835	8
Outside data processing		232		276	(16	)			452		548	(18	)
Postage, stationery and supplies		236		230	3				471		472	-
Travel and entertainment		205		196	5				411		367	12
Advertising and promotion		166		156	6				282		268	5
Telecommunications		132		156	(15	)			266		299	(11	)
Insurance		201		164	23				334		312	7
Operating leases		31		27	15				55		64	(14	)
All other		564		595	(5	)			1,035		1,210	(14	)
Total	$	12,475		12,746	(2	)		$	25,208		24,863	1

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
	Quarter ended
	June 30,			Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in millions)	2011			2011		2010		2010		2010
Service charges on deposit accounts	$	1,074		1,012		1,035		1,132		1,417
Trust and investment fees:
Trust, investment and IRA fees		1,020		1,060		1,030		924		1,035
Commissions and all other fees		1,924		1,856		1,928		1,640		1,708
Total trust and investment fees		2,944		2,916		2,958		2,564		2,743
Card fees		1,003		957		941		935		911
Other fees:
Cash network fees		94		81		74		73		58
Charges and fees on loans		404		397		446		424		401
Processing and all other fees		525		511		543		507		523
Total other fees		1,023		989		1,063		1,004		982
Mortgage banking:
Servicing income, net		877		866		240		516		1,218
Net gains on mortgage loan origination/sales activities		742		1,150		2,517		1,983		793
Total mortgage banking		1,619		2,016		2,757		2,499		2,011
Insurance		568		503		564		397		544
Net gains from trading activities		414		612		532		470		109
Net gains (losses) on debt securities available for sale		(128	)	(166	)	(268	)	(114	)	30
Net gains from equity investments		724		353		317		131		288
Operating leases		103		77		79		222		329
All other		364		409		453		536		581
Total	$	9,708		9,678		10,431		9,776		9,945
FIVE QUARTER NONINTEREST EXPENSE
	Quarter ended
	June 30,			Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in millions)	2011			2011		2010		2010		2010
Salaries	$	3,584		3,454		3,513		3,478		3,564
Commission and incentive compensation		2,171		2,347		2,195		2,280		2,225
Employee benefits		1,164		1,392		1,192		1,074		1,063
Equipment		528		632		813		557		588
Net occupancy		749		752		750		742		742
Core deposit and other intangibles		464		483		549		548		553
FDIC and other deposit assessments		315		305		301		300		295
Outside professional services		659		580		781		533		572
Contract services		341		369		481		430		384
Foreclosed assets		305		408		452		366		333
Operating losses		428		472		193		230		627
Outside data processing		232		220		235		263		276
Postage, stationery and supplies		236		235		239		233		230
Travel and entertainment		205		206		221		195		196
Advertising and promotion		166		116		192		170		156
Telecommunications		132		134		151		146		156
Insurance		201		133		90		62		164
Operating leases		31		24		24		21		27
All other		564		471		968		625		595
Total	$	12,475		12,733		13,340		12,253		12,746

Wells Fargo & Company and Subsidiaries CONSOLIDATED BALANCE SHEET
(in millions, except shares)		June 30, 2011		Dec. 31, 2010		% Change
Assets
Cash and due from banks	$	24,059		16,044		50		%
Federal funds sold, securities purchased under resale agreements and other short-term investments		88,406		80,637		10
Trading assets		54,770		51,414		7
Securities available for sale		186,298		172,654		8
Mortgages held for sale (includes $25,175 and $47,531 carried at fair value)		31,254		51,763		(40	)
Loans held for sale (includes $1,102 and $873 carried at fair value)		1,512		1,290		17
Loans (includes $0 and $309 carried at fair value)		751,921		757,267		(1	)
Allowance for loan losses		(20,893	)	(23,022	)	(9	)
Net loans		731,028		734,245		-
Mortgage servicing rights:
Measured at fair value		14,778		14,467		2
Amortized		1,422		1,419		-
Premises and equipment, net		9,613		9,644		-
Goodwill		24,776		24,770		-
Other assets		91,818		99,781		(8	)
Total assets	$	1,259,734		1,258,128		-
Liabilities
Noninterest-bearing deposits	$	202,143		191,256		6
Interest-bearing deposits		651,492		656,686		(1	)
Total deposits		853,635		847,942		1
Short-term borrowings		53,881		55,401		(3	)
Accrued expenses and other liabilities		71,430		69,913		2
Long-term debt (includes $0 and $306 carried at fair value)		142,872		156,983		(9	)
Total liabilities		1,121,818		1,130,239		(1	)
Equity
Wells Fargo stockholders' equity:
Preferred stock		11,730		8,689		35
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,325,393,921 and 5,272,414,622 shares		8,876		8,787		1
Additional paid-in capital		55,226		53,426		3
Retained earnings		57,942		51,918		12
Cumulative other comprehensive income		5,422		4,738		14
Treasury stock – 47,222,127 shares and 10,131,394 shares		(1,546	)	(487	)	217
Unearned ESOP shares		(1,249	)	(663	)	88
Total Wells Fargo stockholders' equity		136,401		126,408		8
Noncontrolling interests		1,515		1,481		2
Total equity		137,916		127,889		8
Total liabilities and equity	$	1,259,734		1,258,128		-

Wells Fargo & Company and Subsidiaries FIVE QUARTER CONSOLIDATED BALANCE SHEET
(in millions)		June 30, 2011		Mar. 31, 2011		Dec. 31, 2010		Sept. 30, 2010		June 30, 2010
Assets
Cash and due from banks	$	24,059		16,978		16,044		16,001		17,571
Federal funds sold, securities purchased under resale agreements and other short-term investments		88,406		93,041		80,637		56,549		73,898
Trading assets		54,770		57,890		51,414		49,271		47,132
Securities available for sale		186,298		167,906		172,654		176,875		157,927
Mortgages held for sale		31,254		33,121		51,763		46,001		38,581
Loans held for sale		1,512		1,428		1,290		1,188		3,999
Loans		751,921		751,155		757,267		753,664		766,265
Allowance for loan losses		(20,893	)	(21,983	)	(23,022	)	(23,939	)	(24,584	)
Net loans		731,028		729,172		734,245		729,725		741,681
Mortgage servicing rights:
Measured at fair value		14,778		15,648		14,467		12,486		13,251
Amortized		1,422		1,423		1,419		1,013		1,037
Premises and equipment, net		9,613		9,545		9,644		9,636		10,508
Goodwill		24,776		24,777		24,770		24,831		24,820
Other assets		91,818		93,737		99,781		97,208		95,457
Total assets	$	1,259,734		1,244,666		1,258,128		1,220,784		1,225,862
Liabilities
Noninterest-bearing deposits	$	202,143		190,959		191,256		184,451		175,015
Interest-bearing deposits		651,492		646,703		656,686		630,061		640,608
Total deposits		853,635		837,662		847,942		814,512		815,623
Short-term borrowings		53,881		54,737		55,401		50,715		45,187
Accrued expenses and other liabilities		71,430		68,721		69,913		67,249		58,582
Long-term debt		142,872		148,603		156,983		163,143		185,072
Total liabilities		1,121,818		1,109,723		1,130,239		1,095,619		1,104,464
Equity
Wells Fargo stockholders' equity:
Preferred stock		11,730		11,897		8,689		8,840		8,980
Common stock		8,876		8,854		8,787		8,756		8,743
Additional paid-in capital		55,226		54,815		53,426		52,899		52,687
Retained earnings		57,942		54,855		51,918		48,953		46,126
Cumulative other comprehensive income		5,422		5,021		4,738		5,502		4,844
Treasury stock		(1,546	)	(541	)	(487	)	(466	)	(631	)
Unearned ESOP shares		(1,249	)	(1,430	)	(663	)	(826	)	(977	)
Total Wells Fargo stockholders' equity		136,401		133,471		126,408		123,658		119,772
Noncontrolling interests		1,515		1,472		1,481		1,507		1,626
Total equity		137,916		134,943		127,889		125,165		121,398
Total liabilities and equity	$	1,259,734		1,244,666		1,258,128		1,220,784		1,225,862

Wells Fargo & Company and Subsidiaries FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
	Quarter ended
		June 30, 2011				Mar. 31, 2011				Dec. 31, 2010				Sept. 30, 2010				June 30, 2010
($ in billions)		Average balance	Yields/ rates			Average balance	Yields/ rates			Average balance	Yields/ rates			Average balance	Yields/ rates			Average balance	Yields/ rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	98.5	0.32	%	$	83.4	0.35	%	$	72.0	0.40	%	$	70.8	0.38	%	$	67.7	0.33	%
Trading assets		38.0	3.71			37.4	3.81			33.9	3.56			29.0	3.77			28.8	3.79
Securities available for sale:
Securities of U.S. Treasury and federal agencies		2.1	2.33			1.6	2.87			1.7	2.80			1.7	2.79			2.0	3.50
Securities of U.S. states and political subdivisions		22.6	5.35			19.6	5.45			18.4	5.58			17.2	5.89			16.2	6.48
Mortgage-backed securities:
Federal agencies		74.4	4.76			73.5	4.72			80.4	4.48			70.5	5.35			72.9	5.39
Residential and commercial		32.5	8.86			32.9	9.68			33.4	10.95			33.4	12.53			33.2	9.59
Total mortgage-backed securities		106.9	5.98			106.4	6.21			113.8	6.35			103.9	7.67			106.1	6.72
Other debt and equity securities		37.0	5.81			35.9	5.55			37.8	6.15			35.5	6.02			33.3	7.21
Total securities available for sale		168.6	5.81			163.5	5.94			171.7	6.18			158.3	7.05			157.6	6.75
Mortgages held for sale		30.7	4.73			38.7	4.51			45.1	4.39			38.1	4.72			32.2	5.04
Loans held for sale		1.4	5.05			1.0	4.88			1.1	5.15			3.2	2.71			4.4	2.73
Loans:
Commercial:
Commercial and industrial		153.6	4.60			150.0	4.65			147.9	4.71			146.1	4.57			148.0	5.44
Real estate mortgage		101.5	4.16			99.9	3.92			99.2	3.85			99.0	4.15			97.7	3.89
Real estate construction		22.0	4.64			24.3	4.26			26.9	3.68			29.5	3.31			33.1	3.44
Lease financing		12.9	7.72			13.0	7.83			13.0	9.00			13.2	9.07			13.6	9.54
Foreign		36.4	2.65			33.6	2.83			31.0	3.57			30.3	3.15			29.0	3.62
Total commercial		326.4	4.37			320.8	4.33			318.0	4.42			318.1	4.37			321.4	4.78
Consumer:
Real estate 1-4 family first mortgage		224.9	4.97			229.6	5.01			228.8	5.06			231.2	5.16			237.5	5.24
Real estate 1-4 family junior lien mortgage		91.9	4.25			94.7	4.35			97.7	4.37			100.3	4.41			102.7	4.53
Credit card		21.0	12.97			21.5	13.18			21.9	13.44			22.0	13.57			22.2	13.24
Other revolving credit and installment		87.1	6.32			87.5	6.36			87.3	6.48			87.9	6.50			88.6	6.57
Total consumer		424.9	5.48			433.3	5.54			435.7	5.61			441.4	5.68			451.0	5.74
Total loans		751.3	5.00			754.1	5.03			753.7	5.11			759.5	5.13			772.4	5.34
Other		5.0	4.10			5.2	3.90			5.3	3.93			6.0	3.53			6.1	3.44
Total earning assets	$	1,093.5	4.64	%	$	1,083.3	4.73	%	$	1,082.8	4.87	%	$	1,064.9	5.01	%	$	1,069.2	5.14	%
Funding sources
Deposits:
Interest-bearing checking	$	53.3	0.09	%	$	58.5	0.10	%	$	60.9	0.09	%	$	59.7	0.10	%	$	61.2	0.13	%
Market rate and other savings		455.1	0.20			443.6	0.22			431.2	0.25			420.0	0.25			412.1	0.26
Savings certificates		72.1	1.42			74.4	1.39			79.1	1.43			85.0	1.50			89.8	1.44
Other time deposits		13.0	2.03			13.8	2.24			13.4	2.00			14.4	2.33			14.8	1.90
Deposits in foreign offices		57.9	0.23			57.5	0.23			55.5	0.21			52.1	0.24			57.5	0.23
Total interest-bearing deposits		651.4	0.37			647.8	0.38			640.1	0.41			631.2	0.45			635.4	0.45
Short-term borrowings		53.3	0.18			54.8	0.22			50.6	0.24			46.5	0.26			45.1	0.22
Long-term debt		145.5	2.78			150.1	2.95			160.8	2.86			177.1	2.76			195.4	2.52
Other liabilities		11.0	3.03			9.5	3.24			8.3	3.13			6.7	3.39			6.8	3.33
Total interest-bearing liabilities		861.2	0.80			862.2	0.85			859.8	0.89			861.5	0.94			882.7	0.92
Portion of noninterest-bearing funding sources		232.3	-			221.1	-			223.0	-			203.4	-			186.5	-
Total funding sources	$	1,093.5	0.63		$	1,083.3	0.68		$	1,082.8	0.71		$	1,064.9	0.76		$	1,069.2	0.76
Net interest margin on a taxable-equivalent basis			4.01	%			4.05	%			4.16	%			4.25	%			4.38	%
Noninterest-earning assets
Cash and due from banks	$	17.4				17.4				18.0				17.0				17.4
Goodwill		24.8				24.8				24.8				24.8				24.8
Other		115.2				115.7				111.4				113.7				112.8
Total noninterest-earnings assets	$	157.4				157.9				154.2				155.5				155.0
Noninterest-bearing funding sources
Deposits	$	199.3				193.1				197.9				184.8				176.9
Other liabilities		53.2				55.3				52.9				50.1				43.7
Total equity		137.2				130.6				126.4				124.0				120.9
Noninterest-bearing funding sources used to fund earning assets		(232.3)				(221.1)				(223.0)				(203.4)				(186.5)
Net noninterest-bearing funding sources	$	157.4				157.9				154.2				155.5				155.0
Total assets	$	1,250.9				1,241.2				1,237.0				1,220.4				1,224.2
(1) Our average prime rate was 3.25% for quarters ended June 30 and March 31, 2011, and December 31, September 30 and June 30, 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.26%, 0.31%, 0.29%, 0.39% and 0.44% for the same quarters, respectively.

Wells Fargo & Company and Subsidiaries FIVE QUARTER LOANS
(in millions)		June 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sept. 30, 2010	June 30, 2010
Commercial:
Commercial and industrial	$	157,095	150,857	151,284	147,321	146,084
Real estate mortgage		101,458	101,084	99,435	98,755	99,626
Real estate construction		21,374	22,868	25,333	27,911	30,879
Lease financing		12,907	12,937	13,094	12,993	13,492
Foreign (1)		37,855	35,476	32,912	29,691	30,474
Total commercial		330,689	323,222	322,058	316,671	320,555
Consumer:
Real estate 1-4 family first mortgage		222,874	226,509	230,235	228,081	233,812
Real estate 1-4 family junior lien mortgage		89,947	93,041	96,149	99,060	101,327
Credit card		21,191	20,996	22,260	21,890	22,086
Other revolving credit and installment		87,220	87,387	86,565	87,962	88,485
Total consumer		421,232	427,933	435,209	436,993	445,710
Total loans (net of unearned income) (2)	$	751,921	751,155	757,267	753,664	766,265
(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 $38.7 billion, $40.0 billion, $41.4 billion, $43.8 billion and $46.5 billion of purchased credit-impaired (PCI) loans at June 30 and March 31, 2011, and December 31, September 30 and June 30, 2010, respectively. See PURCHASED CREDIT-IMPAIRED (PCI) LOANS table for detail of PCI loans.

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
(in millions)		June 30, 2011		Mar. 31, 2011	Dec. 31, 2010	Sept. 30, 2010	June 30, 2010
Nonaccrual loans:
Commercial:
Commercial and industrial	$	2,393		2,653	3,213	4,103	3,843
Real estate mortgage		4,691		5,239	5,227	5,079	4,689
Real estate construction		2,043		2,239	2,676	3,198	3,429
Lease financing		79		95	108	138	163
Foreign		59		86	127	126	115
Total commercial		9,265		10,312	11,351	12,644	12,239
Consumer:
Real estate 1-4 family first mortgage		11,427		12,143	12,289	12,969	12,865
Real estate 1-4 family junior lien mortgage		2,098		2,235	2,302	2,380	2,391
Other revolving credit and installment		255		275	300	312	316
Total consumer		13,780		14,653	14,891	15,661	15,572
Total nonaccrual loans (1)(2)(3)		23,045		24,965	26,242	28,305	27,811
As a percentage of total loans		3.06	%	3.32	3.47	3.76	3.63
Foreclosed assets:
GNMA (4)	$	1,320		1,457	1,479	1,492	1,344
Non-GNMA		3,541		4,055	4,530	4,635	3,650
Total foreclosed assets		4,861		5,512	6,009	6,127	4,994
Total nonperforming assets	$	27,906		30,477	32,251	34,432	32,805
As a percentage of total loans		3.71	%	4.06	4.26	4.57	4.28
(1) Also includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(2) Excludes loans acquired from Wachovia that are accounted for as PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(3) Real estate 1-4 family mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans 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 National Mortgage Association (GNMA) loans is classified as nonperforming. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the FHA or guaranteed by the VA.

Wells Fargo & Company and Subsidiaries LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
(in millions)		June 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sept. 30, 2010	June 30, 2010
Total (excluding PCI)(1):	$	17,318	17,901	18,488	18,815	19,384
Less: FHA insured/guaranteed by the VA (2)		14,474	14,353	14,733	14,529	14,387
Less: Student loans guaranteed under the FFELP (3)		1,014	1,120	1,106	1,113	1,122
Total, not government insured/guaranteed	$	1,830	2,428	2,649	3,173	3,875
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	110	338	308	222	540
Real estate mortgage		137	177	104	463	654
Real estate construction		86	156	193	332	471
Foreign		12	16	22	27	21
Total commercial		345	687	627	1,044	1,686
Consumer:
Real estate 1-4 family first mortgage (4)		728	858	941	1,016	1,049
Real estate 1-4 family junior lien mortgage (4)		286	325	366	361	352
Credit card		334	413	516	560	610
Other revolving credit and installment		137	145	199	192	178
Total consumer		1,485	1,741	2,022	2,129	2,189
Total, not government insured/guaranteed	$	1,830	2,428	2,649	3,173	3,875
(1) The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $9.8 billion, $10.8 billion, $11.6 billion, $13.0 billion, and $15.1 billion, at June 30 and March 31, 2011, and December 31, September 30 and June 30, 2010, respectively. These amounts are excluded from the above table as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.
(2) Represents loans whose repayments are insured by the FHA or guaranteed by the VA.
(3) Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program (FFELP).
(4) Includes mortgages held for sale 90 days or more past due and still accruing.

Wells Fargo & Company and Subsidiaries PURCHASED CREDIT-IMPAIRED (PCI) LOANS
Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.   Under the accounting guidance for PCI loans, the excess of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan, or pool of loans, in situations where there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference.   Subsequent to acquisition, we regularly evaluate our estimates of cash flows expected to be collected. These evaluations, performed quarterly, require the continued usage of key assumptions and estimates, similar to the initial estimate of fair value. If we have probable decreases in the expected cash flows (other than due to a decrease in rate indices), we charge the provision for credit losses, resulting in an increase to the allowance for loan losses. If we have probable and significant increases in the expected cash flows subsequent to establishing an additional allowance, we first reverse any previously established allowance and then increase interest income over the remaining life of the loan, or pool of loans.   As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.
		June 30,	December 31,
(in millions)		2011	2010	2009	2008
Commercial:
Commercial and industrial	$	527	718	1,911	4,580
Real estate mortgage		2,800	2,855	4,137	5,803
Real estate construction		2,188	2,949	5,207	6,462
Foreign		1,501	1,413	1,733	1,859
Total commercial		7,016	7,935	12,988	18,704
Consumer:
Real estate 1-4 family first mortgage		31,448	33,245	38,386	39,214
Real estate 1-4 family junior lien mortgage		229	250	331	728
Other revolving credit and installment		-	-	-	151
Total consumer		31,677	33,495	38,717	40,093
Total PCI loans (carrying value)	$	38,693	41,430	51,705	58,797

Wells Fargo & Company and Subsidiaries CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS
The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. A nonaccretable difference was established in purchase accounting for PCI loans to absorb losses expected at that time on those loans. Amounts absorbed by the nonaccretable difference do not affect the income statement or the allowance for credit losses. Substantially all our commercial and industrial, CRE and foreign PCI loans are accounted for as individual loans. Conversely, Pick-a-Pay and other consumer PCI loans have been aggregated into several pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Resolutions of loans may include sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Our policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference. This removal method assumes that the amount received from resolution approximates pool performance expectations. The accretable yield percentage is unaffected by the resolution and any changes in the effective yield for the remaining loans in the pool are addressed by our quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no release of the nonaccretable difference for the pool because there is no difference between the amount received at resolution and the contractual amount of the loan. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed troubled debt restructurings (TDRs). Modified PCI loans that are accounted for individually are considered TDRs, and removed from PCI accounting, if there has been a concession granted in excess of the original nonaccretable difference. The following table provides an analysis of changes in the nonaccretable difference.
(in millions)		Commercial		Pick-a-Pay		Other consumer		Total
Balance at December 31, 2008	$	10,410		26,485		4,069		40,964
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(330	)	-		-		(330	)
Loans resolved by sales to third parties (2)		(86	)	-		(85	)	(171	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(138	)	(27	)	(276	)	(441	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(4,853	)	(10,218	)	(2,086	)	(17,157	)
Balance at December 31, 2009		5,003		16,240		1,622		22,865
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(817	)	-		-		(817	)
Loans resolved by sales to third parties (2)		(172	)	-		-		(172	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(726	)	(2,356	)	(317	)	(3,399	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(1,698	)	(2,959	)	(391	)	(5,048	)
Balance at December 31, 2010		1,590		10,925		914		13,429
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(89	)	-		-		(89	)
Loans resolved by sales to third parties (2)		(25	)	-		-		(25	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(189	)	-		(21	)	(210	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(95	)	(789	)	(160	)	(1,044	)
Balance at June 30, 2011	$	1,192		10,136		733		12,061
Balance at March 31,2011	$	1,395		10,626		829		12,850
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(36	)	-		-		(36	)
Loans resolved by sales to third parties (2)		(7	)	-		-		(7	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(95	)	-		-		(95	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(65	)	(490	)	(96	)	(651	)
Balance at June 30, 2011	$	1,192		10,136		733		12,061
(1) Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations.
(2) Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale.
(3) Reclassification of nonaccretable difference to accretable yield for loans with increased cash flow estimates will result in increased interest income as a prospective yield adjustment over the remaining life of the loan or pool of loans.
(4) Write-downs to net realizable value of PCI loans are absorbed by the nonaccretable difference when severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

Wells Fargo & Company and Subsidiaries CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS
The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is recognized in interest income using an effective yield method over the remaining life of the loan, or pool of loans. The accretable yield is affected by:
●	Changes in interest rate indices for variable rate PCI loans – Expected future cash flows are based on the variable rates in effect at the time of the regular evaluations 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 June 30,		Six months ended June 30,		Year ended Dec. 31,
(in millions)			2011		2011		2010		2009
Total, beginning of period		$	15,881		16,714		14,559		10,447
Accretion into interest income (1)			(556	)	(1,102	)	(2,392	)	(2,601	)
Accretion into noninterest income due to sales (2)			(31	)	(186	)	(43	)	(5	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows			95		210		3,399		441
Changes in expected cash flows that do not affect nonaccretable difference (3)			(518	)	(765	)	1,191		6,277
Total, end of period		$	14,871		14,871		16,714		14,559
(1) Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2) Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3) Represents changes in cash flows expected to be collected due to changes in interest rates on variable rate PCI loans, changes in prepayment assumptions and the impact of modifications.

CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES
When it is estimated that the cash flows expected to be collected have decreased subsequent to acquisition for a PCI loan or pool of loans, an allowance is established and a provision for additional loss is recorded as a charge to income. The following table summarizes the changes in allowance for PCI loan losses.
(in millions)		Commercial		Pick-a-Pay	Other consumer		Total
Balance at December 31, 2008	$	-		-	-		-
Provision for losses due to credit deterioration		850		-	3		853
Charge-offs		(520	)	-	-		(520	)
Balance at December 31, 2009		330		-	3		333
Provision for losses due to credit deterioration		712		-	59		771
Charge-offs		(776	)	-	(30	)	(806	)
Balance at December 31, 2010		266		-	32		298
Provision for losses due to credit deterioration		55		-	38		93
Charge-offs		(106	)	-	(12	)	(118	)
Balance at June 30, 2011	$	215		-	58		273
Balance at March 31, 2011	$	234		-	23		257
Provision for losses due to credit deterioration		44		-	39		83
Charge-offs		(63	)	-	(4	)	(67	)
Balance at June 30, 2011	$	215		-	58		273

Wells Fargo & Company and Subsidiaries PICK-A-PAY PORTFOLIO (1)
	June 30, 2011
		PCI loans							All other loans
(in millions)		Adjusted unpaid principal balance (2)	Current LTV ratio (3)		Carrying value (4)		Ratio of carrying value to current value (5)		Carrying value (4)		Ratio of carrying value to current value (5)
California	$	26,851	119	%	$	20,464	90	%	$	19,011	84	%
Florida		3,621	124			2,759	89			4,002	103
New Jersey		1,384	93			1,231	82			2,450	79
Texas		356	79			325	72			1,589	65
New York		772	92			681	80			1,062	81
Other states		6,499	110			5,239	88			10,774	87
Total Pick-a-Pay loans	$	39,483