Wells Fargo Reports Record Quarterly Net Income

Q1 Net Income of $4.2 billion; Q1 Revenue of $21.6 billion

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

• Continued strong financial results:
  • Record diluted earnings per common share of $0.75, up 11 percent (annualized) from prior quarter
  • Wells Fargo net income of $4.2 billion, up 14 percent (annualized) from prior quarter
  • Revenue of $21.6 billion, up 20 percent (annualized) from prior quarter
  • Pre-tax pre-provision profit (PTPP)¹ of $8.6 billion, up 27 percent (annualized) from prior quarter
  • Positive operating leverage
  • Return on average assets of 1.31 percent, up 6 basis points from prior quarter
  • Return on equity of 12.14 percent, up 17 basis points from prior quarter
• Solid deposit growth and higher core loans:
  • Total average core checking and savings deposits up $7.8 billion from prior quarter
  • Core loan portfolios up $984 million from December 31, 2011²
  • Total loans of $766.5 billion at March 31, 2012, compared with $769.6 billion at December 31, 2011
  • Announced the acquisition of BNP Paribas’s North American energy lending business, which is expected to close in April 2012 and includes approximately $3.9 billion of loans outstanding
• Improved capital position:
  • Tier 1 common equity³ under Basel I increased $4.4 billion to $99.5 billion, with Tier 1 common equity ratio of 9.95 percent under Basel I at March 31, 2012. Under current Basel III capital proposals, Tier 1 common equity ratio estimated at 7.81 percent, an increase of 31 basis points from prior quarter
  • Increased quarterly common stock dividend rate to $0.22 per share, starting in first quarter 2012
• Improved credit quality:
  • Net charge-offs were $2.4 billion, a decline of $245 million from prior quarter
  • 1.25 percent (annualized) charge-off rate, the lowest level since 2007
  • Reserve release⁴ of $400 million (pre-tax) reflected improved portfolio performance

¹ See footnote (2) on 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 FIVE QUARTER 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
	Mar. 31,			Dec. 31,	Mar. 31,
	2012			2011	2011
Earnings
Diluted earnings per common share	$	0.75		0.73	0.67
Wells Fargo net income (in billions)		4.25		4.11	3.76
Asset Quality
Net charge-offs as a % of avg. total loans		1.25	%	1.36	1.73
Allowance as a % of total loans		2.50		2.56	2.98
Allowance as a % of annualized net charge-offs		199		188	172
Other
Revenue (in billions)	$	21.64		20.61	20.33
Average loans (in billions)		768.6		768.6	754.1
Average core deposits (in billions)		870.5		864.9	796.8
Net interest margin		3.91	%	3.89	4.05

Wells Fargo & Company (NYSE:WFC) reported record net income of $4.2 billion, or $0.75 per diluted common share, for first quarter 2012, compared with $3.8 billion, or $0.67 per share, for first quarter 2011, and $4.1 billion, or $0.73 per share, for fourth quarter 2011.

“Wells Fargo delivered outstanding first quarter results driven by strong revenue growth. Quarterly revenue was the highest in nine quarters, and we achieved our ninth consecutive quarter of earnings per share growth,” said Chairman and CEO John Stumpf. “Our continued performance for shareholders through a variety of economic environments is a testament to our diversified business model. The performance of our franchise also allowed us to provide our shareholders with an increased common stock dividend for the second consecutive year. As Wells Fargo celebrates its 160^th anniversary and successful completion of the Wachovia merger integration, I want to again thank all our team members for helping our customers succeed financially and satisfying all their financial needs—quarter after quarter, year after year.”

“This was a great quarter for Wells Fargo, as we increased revenue, PTPP, and net income; saw improvement in operating leverage and credit quality; and continued to grow capital,” said Chief Financial Officer Tim Sloan. “Revenue was up 20 percent (annualized) from the fourth quarter, led by continued strong mortgage banking results. Expenses increased in the quarter, but we currently expect a $500-$700 million overall reduction in noninterest expense during the second quarter. Our return on assets of 1.31 percent was the highest since first quarter 2008, while our return on equity of 12.14 percent was the highest since second quarter 2009.

“We increased our quarterly common stock dividend rate 83 percent to $0.22 per share and have the ability to repurchase more common shares as a result of the Federal Reserve’s non-objection to our 2012 Comprehensive Capital Analysis and Review capital plan. Our shareholders have been very patient, and we are pleased to reward them with an additional return on their investment.”

Revenue

Revenue increased $1 billion from fourth quarter 2011, to $21.6 billion. Total revenue increased due to growth in noninterest income, including strong mortgage banking and market sensitive revenues¹, while net interest income remained stable. Businesses generating linked-quarter revenue growth included asset-backed finance, brokerage services, capital finance, capital markets, commercial banking, corporate banking, corporate trust, dealer services, equity funds, global remittance, insurance, international, mortgage banking, personal credit management, real estate capital markets, retail sales finance, private student lending, and wealth management.

¹ Includes net gains (losses) from trading activities, net gains (losses) on debt securities available for sale and net gains from equity investments.

Net Interest Income

Net interest income was $10.9 billion, in line with fourth quarter 2011. Average earning assets were essentially unchanged from the prior quarter. The net interest margin increased to 3.91 percent from 3.89 percent in fourth quarter 2011 as the benefit of disciplined deposit pricing and redeployment of short-term investments into long-term securities offset the runoff of higher yielding loans and investments.

Noninterest Income

Noninterest income was $10.7 billion, up from $9.7 billion in fourth quarter 2011. The $1.0 billion increase was driven by increases of $506 million in mortgage banking, $458 million in market sensitive revenue, and $181 million in trust and investment fees.

Mortgage banking noninterest income was $2.9 billion, up $506 million from fourth quarter 2011, on $129 billion of originations, compared with $120 billion of originations in fourth quarter. The Company provided $430 million for mortgage loan repurchase losses, compared with $404 million in fourth quarter 2011 (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were a $58 million loss compared with a $201 million gain in fourth quarter 2011. The change in net results was primarily due to a reduction in the value of the MSRs from incorporating a higher discount rate. The ratio of MSRs to related loans serviced for others was 77 basis points and the average note rate on the servicing portfolio was 5.05 percent. The unclosed pipeline at March 31, 2012, was $79 billion up from $72 billion at December 31, 2011.

The Company had net unrealized securities gains of $8.7 billion at March 31, 2012, compared with a net unrealized securities gain of $7.0 billion at December 31, 2011. Period-end securities available for sale balances were up $7.7 billion, reflecting continued investment activity.

Noninterest Expense

As expected, expenses remained elevated in the quarter. Noninterest expense increased to $13.0 billion from $12.5 billion in fourth quarter 2011 reflecting higher personnel costs and higher revenue. The increase was primarily due to:

• employee benefits expense reflecting seasonally higher salary taxes and 401(k) matching, as well as higher deferred compensation expense ($596 million higher than fourth quarter),
• higher commissions and incentive compensation reflecting higher revenue-related mortgage banking, retail brokerage, and insurance expenses ($166 million higher),
• higher operating losses, primarily due to additional litigation accruals for various legal matters ($314 million higher),
• partially offset by lower merger and severance costs ($262 million lower).

Total quarterly noninterest expenses are expected to decline $500-$700 million in second quarter 2012 driven primarily by the elimination of merger expenses and the absence of the first quarter seasonally higher personnel costs. Due to higher than expected revenues, primarily mortgage banking and acquisition-related revenues, the Company currently targets fourth quarter 2012 noninterest expense of approximately $11.25 billion. This amount is at the upper end of its previously disclosed range of $10.75-$11.25 billion.

Loans

Total period-end loans were $766.5 billion at March 31, 2012, compared with $769.6 billion at December 31, 2011. Excluding expected runoff in the non-strategic/liquidating portfolio of $4.1 billion, loans in the core portfolio grew $984 million in the quarter. Included in the core loan growth was $858 million of commercial asset-based loans purchased in the quarter. Linked quarter core loan growth was driven by commercial and industrial, consumer auto lending and private student lending. This growth was partially offset by seasonally lower credit card balances, a decline in commercial real estate, and continued runoff in the home equity portfolio. In the first quarter, the Company announced the acquisition of BNP Paribas’s North American energy lending business. The transaction is expected to close in April 2012 and includes approximately $3.9 billion of loans outstanding. Average loan balances were flat linked quarter, but many loan portfolios grew, including asset-backed finance, commercial banking, corporate banking, international, mortgage banking, and real estate capital markets.

	March 31, 2012						December 31, 2011
(in millions)	Core		Liquidating (1)		Total		Core	Liquidating (1)		Total
Commercial	$	340,536	5,213		345,749		339,755	5,695		345,450
Consumer		317,753	103,019		420,772		317,550	106,631		424,181
Total loans	$	658,289	108,232		766,521		657,305	112,326		769,631
Change from prior quarter:	$	984	(4,094	)	(3,110	)	13,708	(4,183	)	9,525
(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 $870.5 billion, up 9 percent from a year ago and up 3 percent (annualized) from fourth quarter 2011. Average core checking and savings deposits were $807.8 billion, up 12 percent from a year ago and up 4 percent (annualized) from fourth quarter 2011. Average mortgage escrow deposits were $33.0 billion compared with $27.9 billion a year ago and $34.9 billion in fourth quarter 2011. Average core checking and savings deposits were 93 percent of average core deposits, up from 91 percent a year ago. Deposit costs for first quarter 2012 were 20 basis points compared with 22 basis points in fourth quarter 2011. Average core deposits were 113 percent of average loans, unchanged from fourth quarter 2011.

Capital

Capital increased in the first quarter, with Tier 1 common equity reaching $99.5 billion under Basel I, or 9.95 percent of risk-weighted assets. Under current Basel III proposals, the Tier 1 common equity ratio was an estimated 7.81 percent. In the first quarter, the Company called for the redemption of $875 million of trust preferred securities with a coupon of 6.38 percent, repurchased approximately 8 million shares of its common stock (primarily related to settlement of a forward repurchase contract entered into in fourth quarter 2011), and paid quarterly common stock dividends of $0.22 per share.

	Mar. 31,		Dec. 31,	Mar. 31,
(as a percent of total risk-weighted assets)	2012		2011	2011
Ratios under Basel I (1):
Tier 1 common equity (2)	9.95	%	9.46	8.93
Tier 1 capital	11.74		11.33	11.50
Tier 1 leverage	9.35		9.03	9.27
(1) March 31, 2012, ratios are preliminary.
(2) See FIVE QUARTER TIER 1 COMMON EQUITY tables for more information on Tier 1 common equity.

Credit Quality

“Credit quality continued to improve in the first quarter,” said Chief Risk Officer Mike Loughlin. First quarter 2012 net charge-offs were $2.4 billion, or 1.25 percent (annualized) of average loans, down from fourth quarter 2011 net charge-offs of $2.6 billion (1.36 percent). The loan loss reserve release was $400 million compared with $600 million in the prior quarter. “We have seen significant improvement in credit performance over the past two years, and expect continued but slower improvement this year as losses approach a stable, more normalized level,” said Loughlin. “Absent significant deterioration in the economy, we continue to expect future reserve releases in 2012.”

Net Loan Charge-Offs
	Quarter ended
	Mar. 31, 2012				Dec. 31, 2011						Sept. 30, 2011
($ 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	$	256	0.62	%	$	310		0.74		%	$	261	0.65	%
Real estate mortgage		46	0.17			117		0.44				96	0.37
Real estate construction		67	1.43			(5	)	(0.09	)			55	1.06
Lease financing		2	0.06			4		0.13				3	0.11
Foreign		14	0.14			45		0.45				8	0.08
Total commercial		385	0.45			471		0.54				423	0.50
Consumer:
Real estate 1-4 family first mortgage		791	1.39			844		1.46				821	1.46
Real estate 1-4 family junior lien mortgage		763	3.62			800		3.64				842	3.75
Credit card		242	4.40			256		4.63				266	4.90
Other revolving credit and installment		214	0.99			269		1.24				259	1.19
Total consumer		2,010	1.91			2,169		2.02				2,188	2.06
Total	$	2,395	1.25	%	$	2,640		1.36		%	$	2,611	1.37	%
(1) Quarterly net charge-offs as a percentage of average loans are annualized. See explanation in PURCHASED CREDIT-IMPAIRED (PCI) LOANS section of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets ended the quarter at $26.6 billion, compared with $26.0 billion in fourth quarter 2011. Nonaccrual loans increased to $22.0 billion from $21.3 billion in the fourth quarter, with the increase exclusively tied to industry-wide supervisory guidance pertaining to the junior lien portfolio described below. Excluding the impact of the supervisory guidance, nonaccrual loans declined in all portfolios and were down $948 million linked quarter, continuing a trend of improvement that started in the fourth quarter 2010. Foreclosed assets were down slightly to $4.6 billion from $4.7 billion in fourth quarter 2011.

In accordance with industry guidance¹, related to real estate 1-4 family junior lien mortgages, issued by bank regulators in the first quarter, $1.7 billion of performing junior liens with associated delinquent first liens were reclassified to nonaccrual status in the first quarter. This action had minimal financial impact as the expected loss content of these loans was already considered in the loan loss allowance. “As of March 31, 2012, only 12 percent of these loans was 30 days or more past due,” said Loughlin.

¹ Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loans and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties, January 31, 2012.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
	Mar. 31, 2012				Dec. 31, 2011					Sept. 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	$	1,726	1.02	%	$	2,142		1.28	%	$	2,128		1.29	%
Real estate mortgage		4,081	3.85			4,085		3.85			4,429		4.24
Real estate construction		1,709	9.21			1,890		9.75			1,915		9.71
Lease financing		45	0.34			53		0.40			71		0.55
Foreign		38	0.10			47		0.12			68		0.18
Total commercial		7,599	2.20			8,217		2.38			8,611		2.53
Consumer:
Real estate 1-4 family first mortgage		10,683	4.67			10,913		4.77			11,024		4.93
Real estate 1-4 family junior lien mortgage		3,558	4.28			1,975		2.30			2,035		2.31
Other revolving credit and installment		186	0.21			199		0.23			230		0.27
Total consumer		14,427	3.43			13,087		3.09			13,289		3.16
Total nonaccrual loans		22,026	2.87			21,304		2.77			21,900		2.88
Foreclosed assets:
GNMA		1,352				1,319					1,336
Non GNMA		3,265				3,342					3,608
Total foreclosed assets		4,617				4,661					4,944
Total nonperforming assets	$	26,643	3.48	%	$	25,965		3.37	%	$	26,844		3.53	%
Change from prior quarter:
Total nonaccrual loans	$	722			$	(596	)			$	(1,145	)
Total nonperforming assets		678				(879	)				(1,062	)

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $1.6 billion at March 31, 2012, compared with $2.0 billion at December 31, 2011. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $20.9 billion at March 31, 2012, up from $20.5 billion at December 31, 2011, due 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 $19.1 billion at March 31, 2012, down from $19.7 billion at December 31, 2011. The allowance coverage to total loans was 2.50 percent compared with 2.56 percent in the prior quarter. The allowance covered 1.99 times annualized first quarter net charge-offs compared with 1.88 times in the prior quarter. The allowance coverage to nonaccrual loans was 87 percent at March 31, 2012, compared with 92 percent at December 31, 2011. “We believe the allowance was appropriate for losses inherent in the loan portfolio at March 31, 2012,” 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
	Mar. 31,		Dec. 31,	Mar. 31,
(in millions)	2012		2011	2011
Community Banking	$	2,348	2,509	2,180
Wholesale Banking		1,868	1,636	1,635
Wealth, Brokerage and Retirement		296	311	343

More financial information about the business segments is in FIVE QUARTER OPERATING SEGMENT RESULTS table.

Community Banking offers a complete line of diversified financial products and services for consumers and small businesses. These products include investment, insurance and trust services in 39 states and D.C., and mortgage and home equity loans in all 50 states and D.C. through its Regional Banking and Wells Fargo Home Mortgage business units.

Selected Financial Information
	Quarter ended
	Mar. 31,		Dec. 31,	Mar. 31,
(in millions)	2012		2011	2011
Total revenue	$	13,421	13,009	12,657
Provision for credit losses		1,878	2,025	2,061
Noninterest expense		7,825	7,313	7,622
Segment net income		2,348	2,509	2,180
(in billions)
Average loans		486.1	490.6	508.4
Average assets		738.3	753.3	756.7
Average core deposits		575.2	568.4	548.1

Community Banking reported net income of $2.3 billion, down $161 million, or 6 percent, from fourth quarter 2011 and up $168 million, or 8 percent, from first quarter 2011. Revenue increased $412 million, or 3 percent, from fourth quarter 2011, driven by higher volume-related mortgage banking income and deposit growth, mitigated by the planned runoff of non-strategic loan portfolios. Revenue increased $764 million, or 6 percent, from first quarter 2011 as a result of higher volume-related mortgage banking income, deposit growth, and higher equity sale gains, partially offset by runoff of non-strategic loan balances and lower debit card revenue due to regulatory changes enacted in October. Noninterest expense increased $512 million, or 7 percent, from fourth quarter 2011, reflecting seasonally higher personnel costs. Noninterest expense increased $203 million, or 3 percent, from first quarter 2011, largely the result of higher mortgage volume-related expenses. The provision for credit losses decreased $147 million from fourth quarter 2011 and decreased $183 million from first quarter 2011. Charge-offs decreased $285 million from fourth quarter 2011 and decreased $733 million from first quarter 2011. The reserve release was $300 million in first quarter 2012, compared with releases of $438 million and $850 million in fourth quarter 2011 and first quarter 2011, respectively.

Regional Banking

• Retail banking
  • Consumer checking accounts up a net 2.5 percent¹
  • Core product solutions (sales) of 13.3 million, up 9 percent from prior year
  • Retail Bank household cross-sell ratio of 5.98 products per household in February 2012, up from 5.76 in February 2011; cross-sell in the West of 6.35, compared with 5.49 in the East
• Customer experience
  • Customers rated their experience in our retail banking stores at an all-time high, a major accomplishment given the many integration activities of the past year
• Small Business/Business Banking
  • Business checking accounts up a net 3.8 percent¹
  • Store-based business solutions up 17 percent from prior year
• Online and Mobile Banking
  • 21.0 million active online customers¹
  • 7.7 million active mobile customers¹

Consumer Lending Group

• Home Mortgage
  • Home Mortgage originations of $129 billion, up from $120 billion in prior quarter
  • Home Mortgage applications of $188 billion, compared with $157 billion in prior quarter
  • Home Mortgage application pipeline of $79 billion at quarter end, compared with $72 billion at December 31, 2011
  • Residential mortgage servicing portfolio of $1.8 trillion
• Other Consumer Lending
  • Credit card penetration in retail banking households rose to 29.9 percent¹, up from 27.2 percent in the prior year
  • Record auto originations of $6.2 billion, up 25 percent from prior quarter and up 10 percent from prior year

¹ Data as of February 2012. Comparisons are February 2012 compared with February 2011.

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

Selected Financial Information
	Quarter ended
	Mar. 31,		Dec. 31,	Mar. 31,
(in millions)	2012		2011	2011
Total revenue	$	6,033	5,416	5,422
Provision for credit losses		95	31	134
Noninterest expense		3,054	2,938	2,789
Segment net income		1,868	1,636	1,635
(in billions)
Average loans		268.6	265.1	234.7
Average assets		467.8	458.3	398.8
Average core deposits		220.9	223.2	184.8

Wholesale Banking reported net income of $1.9 billion, up $232 million, or 14 percent, from fourth quarter 2011, and $233 million, or 14 percent, from first quarter 2011. Driven by broad-based growth across many businesses, as well as seasonally higher insurance fees, Wholesale Banking generated record quarterly revenue of $6.0 billion, an increase of $617 million, or 11 percent, from fourth quarter 2011. Revenue increased $611 million, or 11 percent, from first quarter 2011 driven by broad-based business growth as well as strong loan and deposit growth. Noninterest expense increased $116 million, or 4 percent, from fourth quarter 2011 due to seasonally higher insurance expense and personnel costs. The efficiency ratio improved to 50.6 percent in first quarter 2012 compared with 54.2 percent in fourth quarter 2011. The provision for credit losses was $95 million and increased $64 million from fourth quarter 2011 primarily due to lower reserve release. The provision decreased $39 million from first quarter 2011 due to an $89 million improvement in credit losses partially offset by $50 million of lower reserve release.

• Record quarterly revenue of $6.0 billion achieved while completing the Wachovia merger integration
• 14 percent year-over-year average loan and 17 percent average asset growth. The growth came from nearly all portfolios, including asset-backed finance, capital finance, commercial banking, commercial real estate, corporate banking, government and institutional banking, international and Wells Fargo Securities
• Seven straight quarters of loan growth in Commercial Banking
• Strong support to government, education, healthcare, and nonprofit organizations leading to nine straight quarters of asset growth in Government and Institutional Banking
• Average core deposits up 20 percent from prior year
• Investment Banking revenue from commercial customers increased 20 percent from first quarter 2011 due to attractive capital markets conditions and continued momentum in cross selling to wholesale customer base
• Agreement to acquire North American energy lending business of BNP Paribas with nearly $9.5 billion of loan commitments and approximately $3.9 billion in loans outstanding; acquisition expected to close in April 2012
• Completed acquisition of Burdale Capital Finance Inc. from the Bank of Ireland on February 1 with $858 million in loan balances
• The number of companies using CEO (Commercial Electronic Office) Mobile® banking grew 144 percent year over year to more than 7,000

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

Selected Financial Information
	Quarter ended
	Mar. 31,		Dec. 31,	Mar. 31,
(in millions)	2012		2011	2011
Total revenue	$	3,062	3,042	3,154
Provision for credit losses		43	20	40
Noninterest expense		2,547	2,520	2,557
Segment net income		296	311	343
(in billions)
Average loans		42.5	42.8	42.7
Average assets		161.9	160.6	150.7
Average core deposits		135.6	135.2	125.4

Wealth, Brokerage and Retirement reported net income of $296 million, down $15 million from fourth quarter 2011 and down $47 million from first quarter 2011. Revenue was $3.1 billion, up 1 percent from fourth quarter 2011 driven by increased asset-based fees, higher brokerage transaction revenue and gains on deferred compensation plan investments (offset in expense), partially offset by the impact of the fourth quarter 2011 gain on the sale of the H.D. Vest business. Excluding the H.D. Vest gain, revenue was up 6 percent. Total provision for credit losses increased $23 million for the quarter. Noninterest expense increased 1 percent from fourth quarter 2011 primarily due to the seasonal impact on personnel costs, increased broker commissions on higher production levels and higher deferred compensation expense, partially offset by reduced non-personnel costs. Revenue was down 3 percent from first quarter 2011 due to lower brokerage transaction revenue and reduced securities gains in the brokerage business, partially offset by higher gains on deferred compensation investments and growth in managed account fee revenue. Total provision for credit losses increased $3 million from first quarter 2011. Noninterest expense was flat with first quarter 2011 driven by a decline in personnel costs largely due to decreased broker commissions, driven by lower production levels, offset by higher deferred compensation expense. Average core deposits increased $0.4 billion from fourth quarter 2011 and $10.2 billion from first quarter 2011.

Retail Brokerage

• Strong deposit growth, with average balances up $13 billion, or 16 percent, from prior year
• Client assets of $1.2 trillion, flat with prior year
• Managed account assets increased $27 billion, or 11 percent, from prior year driven by strong net flows and market performance

Wealth Management

• Client assets of $202 billion, down $2 billion, or 1 percent, from prior year

Retirement

• Institutional Retirement plan assets of $257 billion, up $13 billion, or 5 percent, from prior year
• IRA assets of $287 billion, up $3 billion, or 1 percent, from prior year

Conference Call

The Company will host a live conference call on Friday, April 13, at 7 a.m. PDT (10 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and http://us.meeting-stream.com/wellsfargocompany_041312.

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on April 13 through Friday, April 20. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #60549965. 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 performance, and the adequacy of the allowance for loan losses, including our current expectation of future reserve releases in 2012; (ii) our expectations regarding 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; and (iii) our estimates regarding our Tier 1 common equity ratio under proposed Basel III capital regulations as of March 31, 2012.

Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. Several factors could cause actual results to differ materially from expectations including: current and future economic and market conditions, including the effects of further declines in housing prices, high unemployment rates, U.S. fiscal debt and budget matters and the sovereign debt crisis and economic difficulties in Europe; our capital requirements (including under regulatory capital standards as determined and interpreted by applicable regulatory authorities such as the proposed Basel III capital 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, as well as effects associated with our settlement with the Department of Justice and other federal and state government entities related to our mortgage servicing and foreclosure practices, including changes in our procedures or practices and/or industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures; our ability to realize our 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; 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 money market funds; changes in the value of our venture capital investments; changes in our accounting policies or in accounting standards or in how accounting standards are to be applied; changes in our credit ratings and changes in the credit ratings of our customers or counterparties; mergers and acquisitions; federal and state regulations; reputational damage from negative publicity, fines, penalties and other negative consequences from regulatory violations; the loss of checking and saving account deposits to other investments such as the stock market; and fiscal and monetary policies of the Federal Reserve Board. There is no assurance that our allowance for credit losses will be adequate to cover future credit losses, especially if housing prices decline and unemployment worsens. Increases in loan charge-offs or in the allowance for credit losses and related provision expense could materially adversely affect our financial results and condition. For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the SEC and available on the SEC’s website at www.sec.gov. Any factor described above or in our SEC reports could, by itself or together with one or more other factors, adversely affect our financial results and condition.

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 270,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 23 on Fortune’s 2011 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
	Pages
Summary Information
Summary Financial Data	16-17
Income
Consolidated Statement of Income	18
Consolidated Statement of Comprehensive Income	19
Condensed Consolidated Statement of Changes in Total Equity	19
Five Quarter Consolidated Statement of Income	20
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)	21
Noninterest Income and Noninterest Expense	22-23
Balance Sheet
Consolidated Balance Sheet	24-25
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)	26
Loans
Securities Available for Sale	27
Loans	27
Nonperforming Assets	28
Loans 90 Days or More Past Due and Still Accruing	29
Purchased Credit-Impaired Loans	30-32
Pick-A-Pay Portfolio	33
Non-Strategic and Liquidating Loan Portfolios	34
Home Equity Portfolios	34
Changes in Allowance for Credit Losses	35
Equity
Tier 1 Common Equity	36
Operating Segments
Operating Segment Results	37
Other
Mortgage Servicing and other related data	38-40

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
									% Change
		Quarter ended				Mar. 31, 2012 from
($ in millions, except per share amounts)		Mar. 31, 2012		Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2011			Mar. 31, 2011
For the Period
Wells Fargo net income	$	4,248		4,107	3,759	3		%	13
Wells Fargo net income applicable to common stock		4,022		3,888	3,570	3			13
Diluted earnings per common share		0.75		0.73	0.67	3			12
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.31	%	1.25	1.23	5			7
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders' equity (ROE)		12.14		11.97	11.98	1			1
Efficiency ratio (1)		60.1		60.7	62.6	(1	)		(4	)
Total revenue	$	21,636		20,605	20,329	5			6
Pre-tax pre-provision profit (PTPP) (2)		8,643		8,097	7,596	7			14
Dividends declared per common share		0.22		0.12	0.12	83			83
Average common shares outstanding		5,282.6		5,271.9	5,278.8	-			-
Diluted average common shares outstanding		5,337.8		5,317.6	5,333.1	-			-
Average loans	$	768,582		768,563	754,077	-			2
Average assets		1,302,921		1,306,728	1,241,176	-			5
Average core deposits (3)		870,516		864,928	796,826	1			9
Average retail core deposits (4)		616,569		606,810	584,100	2			6
Net interest margin		3.91	%	3.89	4.05	1			(3	)
At Period End
Securities available for sale	$	230,266		222,613	167,906	3			37
Loans		766,521		769,631	751,155	-			2
Allowance for loan losses		18,852		19,372	21,983	(3	)		(14	)
Goodwill		25,140		25,115	24,777	-			1
Assets		1,333,799		1,313,867	1,244,666	2			7
Core deposits (3)		888,711		872,629	795,038	2			12
Wells Fargo stockholders' equity		145,516		140,241	133,471	4			9
Total equity		146,849		141,687	134,943	4			9
Capital ratios:
Total equity to assets		11.01	%	10.78	10.84	2			2
Risk-based capital (5):
Tier 1 capital		11.74		11.33	11.50	4			2
Total capital		15.08		14.76	15.30	2			(1	)
Tier 1 leverage (5)		9.35		9.03	9.27	4			1
Tier 1 common equity (5)(6)		9.95		9.46	8.93	5			11
Common shares outstanding		5,301.5		5,262.6	5,300.9	1			-
Book value per common share	$	25.45		24.64	23.18	3			10
Common stock price:
High		34.59		27.97	34.25	24			1
Low		27.94		22.61	29.82	24			(6	)
Period end		34.14		27.56	31.71	24			8
Team members (active, full-time equivalent)		264,900		264,200	270,200	-			(2	)
(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 March 31, 2012, ratios are preliminary.
(6) See the "Five Quarter Tier 1 Common Equity Under Basel I" table for additional information.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA
		Quarter ended
($ in millions, except per share amounts)		Mar. 31, 2012		Dec. 31, 2011	Sept. 30, 2011	June 30, 2011	Mar. 31, 2011
For the Quarter
Wells Fargo net income	$	4,248		4,107	4,055	3,948	3,759
Wells Fargo net income applicable to common stock		4,022		3,888	3,839	3,728	3,570
Diluted earnings per common share		0.75		0.73	0.72	0.70	0.67
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.31	%	1.25	1.26	1.27	1.23
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders' equity (ROE)		12.14		11.97	11.86	11.92	11.98
Efficiency ratio (1)		60.1		60.7	59.5	61.2	62.6
Total revenue	$	21,636		20,605	19,628	20,386	20,329
Pre-tax pre-provision profit (PTPP) (2)		8,643		8,097	7,951	7,911	7,596
Dividends declared per common share		0.22		0.12	0.12	0.12	0.12
Average common shares outstanding		5,282.6		5,271.9	5,275.5	5,286.5	5,278.8
Diluted average common shares outstanding		5,337.8		5,317.6	5,319.2	5,331.7	5,333.1
Average loans	$	768,582		768,563	754,544	751,253	754,077
Average assets		1,302,921		1,306,728	1,281,369	1,250,945	1,241,176
Average core deposits (3)		870,516		864,928	836,845	807,483	796,826
Average retail core deposits (4)		616,569		606,810	599,227	592,974	584,100
Net interest margin		3.91	%	3.89	3.84	4.01	4.05
At Quarter End
Securities available for sale	$	230,266		222,613	207,176	186,298	167,906
Loans		766,521		769,631	760,106	751,921	751,155
Allowance for loan losses		18,852		19,372	20,039	20,893	21,983
Goodwill		25,140		25,115	25,038	24,776	24,777
Assets		1,333,799		1,313,867	1,304,945	1,259,734	1,244,666
Core deposits (3)		888,711		872,629	849,632	808,970	795,038
Wells Fargo stockholders' equity		145,516		140,241	137,768	136,401	133,471
Total equity		146,849		141,687	139,244	137,916	134,943
Capital ratios:
Total equity to assets		11.01	%	10.78	10.67	10.95	10.84
Risk-based capital (5):
Tier 1 capital		11.74		11.33	11.26	11.69	11.50
Total capital		15.08		14.76	14.86	15.41	15.30
Tier 1 leverage (5)		9.35		9.03	8.97	9.43	9.27
Tier 1 common equity (5)(6)		9.95		9.46	9.34	9.15	8.93
Common shares outstanding		5,301.5		5,262.6	5,272.2	5,278.2	5,300.9
Book value per common share	$	25.45		24.64	24.13	23.84	23.18
Common stock price:
High		34.59		27.97	29.63	32.63	34.25
Low		27.94		22.61	22.58	25.26	29.82
Period end		34.14		27.56	24.12	28.06	31.71
Team members (active, full-time equivalent)		264,900		264,200	263,800	266,600	270,200
(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 March 31, 2012, ratios are preliminary.
(6) See the "Five Quarter Tier 1 Common Equity under Basel I" table for additional information.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
	Quarter ended March 31,					%
(in millions, except per share amounts)		2012		2011		Change
Interest income
Trading assets	$	377		350		8		%
Securities available for sale		2,088		2,164		(4	)
Mortgages held for sale		459		437		5
Loans held for sale		9		12		(25	)
Loans		9,197		9,387		(2	)
Other interest income		125		122		2
Total interest income		12,255		12,472		(2	)
Interest expense
Deposits		457		615		(26	)
Short-term borrowings		16		26		(38	)
Long-term debt		830		1,104		(25	)
Other interest expense		64		76		(16	)
Total interest expense		1,367		1,821		(25	)
Net interest income		10,888		10,651		2
Provision for credit losses		1,995		2,210		(10	)
Net interest income after provision for credit losses		8,893		8,441		5
Noninterest income
Service charges on deposit accounts		1,084		1,012		7
Trust and investment fees		2,839		2,916		(3	)
Card fees		654		957		(32	)
Other fees		1,095		989		11
Mortgage banking		2,870		2,016		42
Insurance		519		503		3
Net gains from trading activities		640		612		5
Net losses on debt securities available for sale		(7	)	(166	)	(96	)
Net gains from equity investments		364		353		3
Operating leases		59		77		(23	)
Other		631		409		54
Total noninterest income		10,748		9,678		11
Noninterest expense
Salaries		3,601		3,454		4
Commission and incentive compensation		2,417		2,347		3
Employee benefits		1,608		1,392		16
Equipment		557		632		(12	)
Net occupancy		704		752		(6	)
Core deposit and other intangibles		419		483		(13	)
FDIC and other deposit assessments		357		305		17
Other		3,330		3,368		(1	)
Total noninterest expense		12,993		12,733		2
Income before income tax expense		6,648		5,386		23
Income tax expense		2,328		1,572		48
Net income before noncontrolling interests		4,320		3,814		13
Less: Net income from noncontrolling interests		72		55		31
Wells Fargo net income	$	4,248		3,759		13
Less: Preferred stock dividends and other		226		189		20
Wells Fargo net income applicable to common stock	$	4,022		3,570		13
Per share information
Earnings per common share	$	0.76		0.68		12
Diluted earnings per common share		0.75		0.67		12
Dividends declared per common share		0.22		0.12		83
Average common shares outstanding		5,282.6		5,278.8		-
Diluted average common shares outstanding		5,337.8		5,333.1		-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	Quarter ended March 31,					%
(in millions)		2012		2011		Change
Wells Fargo net income	$	4,248		3,759		13	%
Other comprehensive income, before tax:
Foreign currency translation adjustments (1)
Net unrealized gains (losses) arising during the period		10		24		(58	)
Securities available for sale:
Net unrealized gains (losses) arising during the period		1,874		498		276
Reclassification of (gains) losses included in net income		(226	)	51		NM
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period		42		(4	)	NM
Reclassification of net (gains) losses on cash flow hedges included in net income		(107	)	(156	)	(31	)
Defined benefit plans adjustment
Net actuarial gains (losses) arising during the period		(5	)	(1	)	400
Amortization of net actuarial (gain) loss and prior service cost included in net income		36		24		50
Other comprehensive income, before tax		1,624		436		272
Income tax expense related to OCI		(611	)	(157	)	289
Other comprehensive income, net of tax		1,013		279		263
Less: Other comprehensive income from noncontrolling interests		4		(4	)	NM
Wells Fargo other comprehensive income, net of tax		1,009		283		257
Wells Fargo comprehensive income		5,257		4,042		30
Comprehensive income from noncontrolling interests		76		51		49
Total comprehensive income	$	5,333		4,093		30
NM - Not meaningful
(1) There was no sale or liquidation of an investment in a foreign entity, and therefore no reclassification adjustment for the quarters ended March 31, 2012 and 2011, respectively.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
		Quarter ended March 31,
(in millions)		2012		2011
Balance, beginning of period	$	141,687		127,889
Cumulative effect of fair value election for certain residential mortgage servicing rights		2		-
Balance, beginning of period - adjusted		141,689		127,889
Wells Fargo net income		4,248		3,759
Wells Fargo other comprehensive income, net of tax		1,009		283
Common stock issued		879		634
Common stock repurchased		(64	)	(55	)
Preferred stock released by ESOP		270		493
Preferred stock issued		-		2,501
Common stock dividends		(1,165	)	(634	)
Preferred stock dividends and other		(226	)	(189	)
Noncontrolling interests and other, net		209		262
Balance, end of period	$	146,849		134,943

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
		Quarter ended
(in millions, except per share amounts)		Mar. 31, 2012		Dec. 31, 2011	Sept. 30, 2011		June 30, 2011		Mar. 31, 2011
Interest income
Trading assets	$	377		400	343		347		350
Securities available for sale		2,088		2,092	2,053		2,166		2,164
Mortgages held for sale		459		456	389		362		437
Loans held for sale		9		16	13		17		12
Loans		9,197		9,275	9,224		9,361		9,387
Other interest income		125		139	156		131		122
Total interest income		12,255		12,378	12,178		12,384		12,472
Interest expense
Deposits		457		507	559		594		615
Short-term borrowings		16		14	20		20		26
Long-term debt		830		885	980		1,009		1,104
Other interest expense		64		80	77		83		76
Total interest expense		1,367		1,486	1,636		1,706		1,821
Net interest income		10,888		10,892	10,542		10,678		10,651
Provision for credit losses		1,995		2,040	1,811		1,838		2,210
Net interest income after provision for credit losses		8,893		8,852	8,731		8,840		8,441
Noninterest income
Service charges on deposit accounts		1,084		1,091	1,103		1,074		1,012
Trust and investment fees		2,839		2,658	2,786		2,944		2,916
Card fees		654		680	1,013		1,003		957
Other fees		1,095		1,096	1,085		1,023		989
Mortgage banking		2,870		2,364	1,833		1,619		2,016
Insurance		519		466	423		568		503
Net gains (losses) from trading activities		640		430	(442	)	414		612
Net gains (losses) on debt securities available for sale		(7	)	48	300		(128	)	(166	)
Net gains from equity investments		364		61	344		724		353
Operating leases		59		60	284		103		77
Other		631		759	357		364		409
Total noninterest income		10,748		9,713	9,086		9,708		9,678
Noninterest expense
Salaries		3,601		3,706	3,718		3,584		3,454
Commission and incentive compensation		2,417		2,251	2,088		2,171		2,347
Employee benefits		1,608		1,012	780		1,164		1,392
Equipment		557		607	516		528		632
Net occupancy		704		759	751		749		752
Core deposit and other intangibles		419		467	466		464		483
FDIC and other deposit assessments		357		314	332		315		305
Other		3,330		3,392	3,026		3,500		3,368
Total noninterest expense		12,993		12,508	11,677		12,475		12,733
Income before income tax expense		6,648		6,057	6,140		6,073		5,386
Income tax expense		2,328		1,874	1,998		2,001		1,572
Net income before noncontrolling interests		4,320		4,183	4,142		4,072		3,814
Less: Net income from noncontrolling interests		72		76	87		124		55
Wells Fargo net income	$	4,248		4,107	4,055		3,948		3,759
Less: Preferred stock dividends and other		226		219	216		220		189
Wells Fargo net income applicable to common stock	$	4,022		3,888	3,839		3,728		3,570
Per share information
Earnings per common share	$	0.76		0.74	0.73		0.70		0.68
Diluted earnings per common share		0.75		0.73	0.72		0.70		0.67
Dividends declared per common share		0.22		0.12	0.12		0.12		0.12
Average common shares outstanding		5,282.6		5,271.9	5,275.5		5,286.5		5,278.8
Diluted average common shares outstanding		5,337.8		5,317.6	5,319.2		5,331.7		5,333.1

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
	Quarter ended March 31,
							2012						2011
						Interest						Interest
		Average		Yields/		income/		Average		Yields/		income/
(in millions)		balance		rates		expense		balance		rates		expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	56,020		0.52	%	$	73	83,386		0.35	%	$	72
Trading assets		43,766		3.50			383	37,403		3.81			356
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		5,797		0.97			14	1,545		2.87			11
Securities of U.S. states and political subdivisions		32,595		4.52			368	19,890		5.45			270
Mortgage-backed securities:
Federal agencies		91,300		3.49			797	70,418		4.72			832
Residential and commercial		34,531		6.80			587	30,229		9.68			732
Total mortgage-backed securities		125,831		4.40			1,384	100,647		6.21			1,564
Other debt and equity securities		50,402		3.82			480	33,601		5.55			465
Total securities available for sale		214,625		4.19			2,246	155,683		5.94			2,310
Mortgages held for sale (4)		46,908		3.91			459	38,742		4.51			437
Loans held for sale (4)		748		5.09			9	975		4.88			12
Loans:
Commercial:
Commercial and industrial		166,782		4.18			1,733	150,047		4.65			1,723
Real estate mortgage		105,990		4.07			1,072	99,797		3.92			967
Real estate construction		18,730		4.79			223	24,281		4.26			255
Lease financing		13,129		8.89			292	13,020		7.83			255
Foreign		41,167		2.52			258	33,638		2.83			235
Total commercial		345,798		4.16			3,578	320,783		4.33			3,435
Consumer:
Real estate 1-4 family first mortgage		229,653		4.69			2,688	229,570		5.01			2,867
Real estate 1-4 family junior lien mortgage		84,718		4.27			900	94,708		4.35			1,018
Credit card		22,129		12.93			711	21,509		13.18			709
Other revolving credit and installment		86,284		6.19			1,329	87,507		6.36			1,371
Total consumer		422,784		5.34			5,628	433,294		5.54			5,965
Total loans (4)		768,582		4.81			9,206	754,077		5.03			9,400
Other		4,604		4.42			51	5,228		3.90			50
Total earning assets	$	1,135,253		4.39	%	$	12,427	1,075,494		4.73	%	$	12,637
Funding sources
Deposits:
Interest-bearing checking	$	32,158		0.05	%	$	4	58,503		0.10	%	$	14
Market rate and other savings		496,027		0.12			153	443,586		0.22			237
Savings certificates		62,689		1.36			213	74,371		1.39			255
Other time deposits		12,651		1.93			61	13,850		2.24			76
Deposits in foreign offices		64,847		0.16			26	57,473		0.23			33
Total interest-bearing deposits		668,372		0.27			457	647,783		0.38			615
Short-term borrowings		48,382		0.15			18	54,751		0.22			30
Long-term debt		127,537		2.60			830	150,144		2.95			1,104
Other liabilities		9,803		2.63			64	9,472		3.24			76
Total interest-bearing liabilities		854,094		0.64			1,369	862,150		0.85			1,825
Portion of noninterest-bearing funding sources		281,159		-			-	213,344		-			-
Total funding sources	$	1,135,253		0.48			1,369	1,075,494		0.68			1,825
Net interest margin and net interest income on a taxable-equivalent basis (5)				3.91	%	$	11,058			4.05	%	$	10,812
Noninterest-earning assets
Cash and due from banks	$	16,974						17,360
Goodwill		25,128						24,775
Other		125,566						123,547
Total noninterest-earning assets	$	167,668						165,682
Noninterest-bearing funding sources
Deposits	$	246,614						193,100
Other liabilities		57,201						55,316
Total equity		145,012						130,610
Noninterest-bearing funding sources used to fund earning assets		(281,159	)					(213,344	)
Net noninterest-bearing funding sources	$	167,668						165,682
Total assets	$	1,302,921						1,241,176
(1) Our average prime rate was 3.25% for the quarters ended March 31, 2012 and 2011. The average three-month London Interbank Offered Rate (LIBOR) was 0.51% and 0.31% for the same quarters, respectively.
(2) Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.
(4) Nonaccrual loans and related income are included in their respective loan categories.
(5) Includes taxable-equivalent adjustments of $170 million and $161 million for the quarters ended March 31, 2012 and 2011, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
	Quarter ended March 31,					%
(in millions)		2012		2011		Change
Service charges on deposit accounts	$	1,084		1,012		7		%
Trust and investment fees:
Trust, investment and IRA fees		1,024		1,060		(3	)
Commissions and all other fees		1,815		1,856		(2	)
Total trust and investment fees		2,839		2,916		(3	)
Card fees		654		957		(32	)
Other fees:
Cash network fees		118		81		46
Charges and fees on loans		445		397		12
Processing and all other fees		532		511		4
Total other fees		1,095		989		11
Mortgage banking:
Servicing income, net		252		866		(71	)
Net gains on mortgage loan origination/sales activities		2,618		1,150		128
Total mortgage banking		2,870		2,016		42
Insurance		519		503		3
Net gains from trading activities		640		612		5
Net losses on debt securities available for sale		(7	)	(166	)	(96	)
Net gains from equity investments		364		353		3
Operating leases		59		77		(23	)
All other		631		409		54
Total	$	10,748		9,678		11

NONINTEREST EXPENSE
		Quarter ended March 31,		%
(in millions)		2012	2011	Change
Salaries	$	3,601	3,454	4		%
Commission and incentive compensation		2,417	2,347	3
Employee benefits		1,608	1,392	16
Equipment		557	632	(12	)
Net occupancy		704	752	(6	)
Core deposit and other intangibles		419	483	(13	)
FDIC and other deposit assessments		357	305	17
Outside professional services		594	580	2
Contract services		303	369	(18	)
Foreclosed assets		304	408	(25	)
Operating losses		477	472	1
Postage, stationery and supplies		216	235	(8	)
Outside data processing		216	220	(2	)
Travel and entertainment		202	206	(2	)
Advertising and promotion		122	116	5
Telecommunications		124	134	(7	)
Insurance		157	133	18
Operating leases		28	24	17
All other		587	471	25
Total	$	12,993	12,733	2

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
		Quarter ended
		Mar. 31,		Dec. 31,	Sept. 30,		June 30,		Mar. 31,
(in millions)		2012		2011	2011		2011		2011
Service charges on deposit accounts	$	1,084		1,091	1,103		1,074		1,012
Trust and investment fees:
Trust, investment and IRA fees		1,024		1,000	1,019		1,020		1,060
Commissions and all other fees		1,815		1,658	1,767		1,924		1,856
Total trust and investment fees		2,839		2,658	2,786		2,944		2,916
Card fees		654		680	1,013		1,003		957
Other fees:
Cash network fees		118		109	105		94		81
Charges and fees on loans		445		402	438		404		397
Processing and all other fees		532		585	542		525		511
Total other fees		1,095		1,096	1,085		1,023		989
Mortgage banking:
Servicing income, net		252		493	1,030		877		866
Net gains on mortgage loan origination/sales activities		2,618		1,871	803		742		1,150
Total mortgage banking		2,870		2,364	1,833		1,619		2,016
Insurance		519		466	423		568		503
Net gains (losses) from trading activities		640		430	(442	)	414		612
Net gains (losses) on debt securities available for sale		(7	)	48	300		(128	)	(166	)
Net gains from equity investments		364		61	344		724		353
Operating leases		59		60	284		103		77
All other		631		759	357		364		409
Total	$	10,748		9,713	9,086		9,708		9,678

FIVE QUARTER NONINTEREST EXPENSE
		Quarter ended
		Mar. 31,	Dec. 31,	Sept. 30,	June 30,	Mar. 31,
(in millions)		2012	2011	2011	2011	2011
Salaries	$	3,601	3,706	3,718	3,584	3,454
Commission and incentive compensation		2,417	2,251	2,088	2,171	2,347
Employee benefits		1,608	1,012	780	1,164	1,392
Equipment		557	607	516	528	632
Net occupancy		704	759	751	749	752
Core deposit and other intangibles		419	467	466	464	483
FDIC and other deposit assessments		357	314	332	315	305
Outside professional services		594	813	640	659	580
Contract services		303	356	341	341	369
Foreclosed assets		304	370	271	305	408
Operating losses		477	163	198	428	472
Postage, stationery and supplies		216	231	240	236	235
Outside data processing		216	257	226	232	220
Travel and entertainment		202	212	198	205	206
Advertising and promotion		122	166	159	166	116
Telecommunications		124	129	128	132	134
Insurance		157	87	94	201	133
Operating leases		28	28	29	31	24
All other		587	580	502	564	471
Total	$	12,993	12,508	11,677	12,475	12,733

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
		Mar. 31,		Dec. 31,		%
(in millions, except shares)		2012		2011		Change
Assets
Cash and due from banks	$	17,000		19,440		(13	)	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		74,143		44,367		67
Trading assets		75,696		77,814		(3	)
Securities available for sale		230,266		222,613		3
Mortgages held for sale (includes $39,183 and $44,791 carried at fair value)		43,449		48,357		(10	)
Loans held for sale (includes $796 and $1,176 carried at fair value)		958		1,338		(28	)
Loans (includes $6,037 and $5,916 carried at fair value)		766,521		769,631		-
Allowance for loan losses		(18,852	)	(19,372	)	(3	)
Net loans		747,669		750,259		-
Mortgage servicing rights:
Measured at fair value		13,578		12,603		8
Amortized		1,074		1,408		(24	)
Premises and equipment, net		9,291		9,531		(3	)
Goodwill		25,140		25,115		-
Other assets		95,535		101,022		(5	)
Total assets	$	1,333,799		1,313,867		2
Liabilities
Noninterest-bearing deposits	$	255,013		244,003		5
Interest-bearing deposits		675,254		676,067		-
Total deposits		930,267		920,070		1
Short-term borrowings		50,964		49,091		4
Accrued expenses and other liabilities		75,967		77,665		(2	)
Long-term debt		129,752		125,354		4
Total liabilities		1,186,950		1,172,180		1
Equity
Wells Fargo stockholders' equity:
Preferred stock		12,101		11,431		6
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,405,043,212 and 5,358,522,061 shares		9,008		8,931		1
Additional paid-in capital		57,569		55,957		3
Retained earnings		67,239		64,385		4
Cumulative other comprehensive income		4,216		3,207		31
Treasury stock – 103,542,034 shares and 95,910,425 shares		(2,958	)	(2,744	)	8
Unearned ESOP shares		(1,659	)	(926	)	79
Total Wells Fargo stockholders' equity		145,516		140,241		4
Noncontrolling interests		1,333		1,446		(8	)
Total equity		146,849		141,687		4
Total liabilities and equity	$	1,333,799		1,313,867		2

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)		2012		2011		2011		2011		2011
Assets
Cash and due from banks	$	17,000		19,440		18,314		24,059		16,978
Federal funds sold, securities purchased under resale agreements and other short-term investments		74,143		44,367		89,804		88,406		93,041
Trading assets		75,696		77,814		57,786		54,770		57,890
Securities available for sale		230,266		222,613		207,176		186,298		167,906
Mortgages held for sale		43,449		48,357		42,704		31,254		33,121
Loans held for sale		958		1,338		743		1,512		1,428
Loans		766,521		769,631		760,106		751,921		751,155
Allowance for loan losses		(18,852	)	(19,372	)	(20,039	)	(20,893	)	(21,983	)
Net loans		747,669		750,259		740,067		731,028		729,172
Mortgage servicing rights:
Measured at fair value		13,578		12,603		12,372		14,778		15,648
Amortized		1,074		1,408		1,397		1,422		1,423
Premises and equipment, net		9,291		9,531		9,607		9,613		9,545
Goodwill		25,140		25,115		25,038		24,776		24,777
Other assets		95,535		101,022		99,937		91,818		93,737
Total assets	$	1,333,799		1,313,867		1,304,945		1,259,734		1,244,666
Liabilities
Noninterest-bearing deposits	$	255,013		244,003		229,863		202,143		190,959
Interest-bearing deposits		675,254		676,067		665,565		651,492		646,703
Total deposits		930,267		920,070		895,428		853,635		837,662
Short-term borrowings		50,964		49,091		50,775		53,881		54,737
Accrued expenses and other liabilities		75,967		77,665		86,284		71,430		68,721
Long-term debt		129,752		125,354		133,214		142,872		148,603
Total liabilities		1,186,950		1,172,180		1,165,701		1,121,818		1,109,723
Equity
Wells Fargo stockholders' equity:
Preferred stock		12,101		11,431		11,566		11,730		11,897
Common stock		9,008		8,931		8,902		8,876		8,854
Additional paid-in capital		57,569		55,957		55,495		55,226		54,815
Retained earnings		67,239		64,385		61,135		57,942		54,855
Cumulative other comprehensive income		4,216		3,207		3,828		5,422		5,021
Treasury stock		(2,958	)	(2,744	)	(2,087	)	(1,546	)	(541	)
Unearned ESOP shares		(1,659	)	(926	)	(1,071	)	(1,249	)	(1,430	)
Total Wells Fargo stockholders' equity		145,516		140,241		137,768		136,401		133,471
Noncontrolling interests		1,333		1,446		1,476		1,515		1,472
Total equity		146,849		141,687		139,244		137,916		134,943
Total liabilities and equity	$	1,333,799		1,313,867		1,304,945		1,259,734		1,244,666

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
		Quarter ended
		Mar. 31, 2012					Dec. 31, 2011					Sept. 30, 2011					June 30, 2011					Mar. 31, 2011
	Average			Yields/		Average			Yields/		Average			Yields/		Average			Yields/		Average			Yields/
($ in billions)	balance			rates		balance			rates		balance			rates		balance			rates		balance			rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	56.0		0.52	%	$	68.0		0.52	%	$	98.9		0.42	%	$	98.5		0.32	%	$	83.4		0.35	%
Trading assets		43.8		3.50			45.5		3.57			37.9		3.67			38.0		3.71			37.4		3.81
Securities available for sale (2):
Securities of U.S. Treasury and federal agencies		5.8		0.97			8.7		0.99			9.6		1.02			2.0		2.33			1.6		2.87
Securities of U.S. states and political subdivisions		32.6		4.52			28.0		4.80			25.6		4.93			22.5		5.35			19.9		5.45
Mortgage-backed securities:
Federal agencies		91.3		3.49			84.3		3.68			72.8		4.41			70.9		4.76			70.4		4.72
Residential and commercial		34.5		6.80			34.7		7.05			32.6		7.46			30.0		8.86			30.2		9.68
Total mortgage-backed securities		125.8		4.40			119.0		4.66			105.4		5.36			100.9		5.98			100.6		6.21
Other debt and equity securities		50.4		3.82			47.3		4.38			38.9		4.69			34.5		5.81			33.6		5.55
Total securities available for sale		214.6		4.19			203.0		4.46			179.5		4.92			159.9		5.81			155.7		5.94
Mortgages held for sale		46.9		3.91			44.8		4.07			34.6		4.49			30.7		4.73			38.7		4.51
Loans held for sale		0.8		5.09			1.1		5.84			1.0		5.21			1.4		5.05			1.0		4.88
Loans:
Commercial:
Commercial and industrial		166.8		4.18			166.9		4.08			159.6		4.22			153.6		4.60			150.0		4.65
Real estate mortgage		106.0		4.07			105.2		4.26			102.4		3.93			101.5		4.16			99.9		3.92
Real estate construction		18.7		4.79			19.6		4.61			20.5		6.12			22.0		4.64			24.3		4.26
Lease financing		13.1		8.89			12.9		7.41			13.0		7.21			12.9		7.72			13.0		7.83
Foreign		41.2		2.52			38.8		2.39			38.2		2.42			36.4		2.65			33.6		2.83
Total commercial		345.8		4.16			343.4		4.10			333.7		4.16			326.4		4.37			320.8		4.33
Consumer:
Real estate 1-4 family first mortgage		229.7		4.69			229.8		4.74			223.8		4.83			224.9		4.97			229.6		5.01
Real estate 1-4 family junior lien mortgage		84.7		4.27			87.2		4.34			89.1		4.37			91.9		4.25			94.7		4.35
Credit card		22.1		12.93			21.9		12.96			21.5		12.96			21.0		12.97			21.5		13.18
Other revolving credit and installment		86.3		6.19			86.3		6.23			86.5		6.25			87.1		6.32			87.5		6.36
Total consumer		422.8		5.34			425.2		5.39			420.9		5.44			424.9		5.48			433.3		5.54
Total loans		768.6		4.81			768.6		4.81			754.6		4.87			751.3		5.00			754.1		5.03
Other		4.6		4.42			4.7		4.32			4.9		4.18			5.0		4.10			5.2		3.90
Total earning assets	$	1,135.3		4.39	%	$	1,135.7		4.41	%	$	1,111.4		4.43	%	$	1,084.8		4.64	%	$	1,075.5		4.73	%
Funding sources
Deposits:
Interest-bearing checking	$	32.2		0.05	%	$	35.3		0.06	%	$	44.0		0.07	%	$	53.3		0.09	%	$	58.5		0.10	%
Market rate and other savings		496.0		0.12			485.1		0.14			473.4		0.17			455.1		0.20			443.6		0.22
Savings certificates		62.7		1.36			64.9		1.43			67.6		1.47			72.1		1.42			74.4		1.39
Other time deposits		12.7		1.93			12.9		1.85			12.8		2.02			13.0		2.03			13.8		2.24
Deposits in foreign offices		64.8		0.16			67.2		0.20			63.5		0.23			57.9		0.23			57.5		0.23
Total interest-bearing deposits		668.4		0.27			665.4		0.30			661.3		0.34			651.4		0.37			647.8		0.38
Short-term borrowings		48.4		0.15			48.7		0.14			50.4		0.18			53.3		0.18			54.8		0.22
Long-term debt		127.5		2.60			129.4		2.73			139.5		2.81			145.5		2.78			150.1		2.95
Other liabilities		9.8		2.63			12.2		2.60			11.2		2.75			11.0		3.03			9.5		3.24
Total interest-bearing liabilities		854.1		0.64			855.7		0.69			862.4		0.76			861.2		0.80			862.2		0.85
Portion of noninterest-bearing funding sources		281.2		-			280.0		-			249.0		-			223.6		-			213.3		-
Total funding sources	$	1,135.3		0.48		$	1,135.7		0.52		$	1,111.4		0.59		$	1,084.8		0.63		$	1,075.5		0.68
Net interest margin on a taxable-equivalent basis				3.91	%				3.89	%				3.84	%				4.01	%				4.05	%
Noninterest-earning assets
Cash and due from banks	$	17.0					17.7					17.1					17.4					17.4
Goodwill		25.1					25.1					25.0					24.8					24.8
Other		125.5					128.2					127.9					123.9					123.5
Total noninterest-earnings assets	$	167.6					171.0					170.0					166.1					165.7
Noninterest-bearing funding sources
Deposits	$	246.6					246.7					221.2					199.3					193.1
Other liabilities		57.2					63.5					57.5					53.2					55.3
Total equity		145.0					140.8					140.3					137.2					130.6
Noninterest-bearing funding sources used to fund earning assets		(281.2	)				(280.0	)				(249.0	)				(223.6	)				(213.3	)
Net noninterest-bearing funding sources	$	167.6					171.0					170.0					166.1					165.7
Total assets	$	1,302.9					1,306.7					1,281.4					1,250.9					1,241.2
(1) Our average prime rate was 3.25% for quarters ended March 31, 2012, and December 31, September 30, June 30 and March 31, 2011. The average three-month London Interbank Offered Rate (LIBOR) was 0.51%, 0.48%, 0.30%, 0.26% and 0.31% for the same quarters, respectively.
(2) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SECURITIES AVAILABLE FOR SALE
		Mar. 31,	Dec. 31,	Sept. 30,	June 30,	Mar. 31,
(in millions)		2012	2011	2011	2011	2011
Securities of U.S. Treasury and federal agencies	$	4,678	6,968	13,813	10,523	1,507
Securities of U.S. states and political subdivisions		34,237	32,593	26,970	24,412	21,159
Mortgage-backed securities:
Federal agencies		102,665	96,754	84,716	78,338	75,552
Residential and commercial		36,486	35,986	35,159	33,088	32,728
Total mortgage-backed securities		139,151	132,740	119,875	111,426	108,280
Other debt securities		49,047	46,895	42,925	35,582	31,952
Total debt securities available for sale		227,113	219,196	203,583	181,943	162,898
Marketable equity securities		3,153	3,417	3,593	4,355	5,008
Total securities available for sale	$	230,266	222,613	207,176	186,298	167,906

FIVE QUARTER LOANS
		Mar. 31,	Dec. 31,	Sept. 30,	June 30,	Mar. 31,
(in millions)		2012	2011	2011	2011	2011
Commercial:
Commercial and industrial	$	168,546	167,216	164,510	157,095	150,857
Real estate mortgage		105,874	105,975	104,363	101,458	101,084
Real estate construction		18,549	19,382	19,719	21,374	22,868
Lease financing		13,143	13,117	12,852	12,907	12,937
Foreign (1)		39,637	39,760	38,390	37,855	35,476
Total commercial		345,749	345,450	339,834	330,689	323,222
Consumer:
Real estate 1-4 family first mortgage		228,885	228,894	223,758	222,874	226,509
Real estate 1-4 family junior lien mortgage		83,173	85,991	88,264	89,947	93,041
Credit card		21,998	22,836	21,650	21,191	20,996
Other revolving credit and installment		86,716	86,460	86,600	87,220	87,387
Total consumer		420,772	424,181	420,272	421,232	427,933
Total loans (2)	$	766,521	769,631	760,106	751,921	751,155
(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 $35.5 billion, $36.7 billion, $37.2 billion, $38.7 billion, and $40.0 billion of purchased credit-impaired (PCI) loans at March 31, 2012, and December 31, September 30, June 30, and March 31, 2011, respectively. See the PCI loans table for detail of PCI loans.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
		Mar. 31,		Dec. 31,	Sept. 30,	June 30,	Mar. 31,
(in millions)		2012		2011	2011	2011	2011
Nonaccrual loans:
Commercial:
Commercial and industrial	$	1,726		2,142	2,128	2,393	2,653
Real estate mortgage		4,081		4,085	4,429	4,691	5,239
Real estate construction		1,709		1,890	1,915	2,043	2,239
Lease financing		45		53	71	79	95
Foreign		38		47	68	59	86
Total commercial		7,599		8,217	8,611	9,265	10,312
Consumer:
Real estate 1-4 family first mortgage		10,683		10,913	11,024	11,427	12,143
Real estate 1-4 family junior lien mortgage (1)		3,558		1,975	2,035	2,098	2,235
Other revolving credit and installment		186		199	230	255	275
Total consumer		14,427		13,087	13,289	13,780	14,653
Total nonaccrual loans (2)(3)(4)		22,026		21,304	21,900	23,045	24,965
As a percentage of total loans		2.87	%	2.77	2.88	3.06	3.32
Foreclosed assets:
Government insured/guaranteed (5)	$	1,352		1,319	1,336	1,320	1,457
Non-government insured/guaranteed		3,265		3,342	3,608	3,541	4,055
Total foreclosed assets		4,617		4,661	4,944	4,861	5,512
Total nonperforming assets	$	26,643		25,965	26,844	27,906	30,477
As a percentage of total loans		3.48	%	3.37	3.53	3.71	4.06
(1) Includes $1.7 billion at March 31, 2012, resulting from implementation of the Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loans and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties issued on January 31, 2012. This guidance accelerated the timing of placing these loans on nonaccrual to coincide with the timing of placing the related real estate 1-4 family first mortgage loans on nonaccrual.
(2) Also includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(3) Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(4) Real estate 1-4 family mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status because they are insured or guaranteed.
(5) Consistent with regulatory reporting requirements, foreclosed real estate securing government insured/guaranteed loans is classified as nonperforming. Both principal and interest for government insured/guaranteed loans secured by the foreclosed real estate are collectible because the loans are insured by the FHA or guaranteed by the VA.

Wells Fargo & Company and Subsidiaries
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
	Mar. 31,		Dec. 31,	Sept. 30,	June 30,	Mar. 31,
(in millions)		2012	2011	2011	2011	2011
Loans 90 days or more past due and still accruing:
Total (excluding PCI)(1):	$	22,555	22,569	19,639	17,318	17,901
Less: FHA insured/VA guaranteed (2)		19,681	19,240	16,498	14,474	14,353
Less: Student loans guaranteed under the FFELP (3)		1,238	1,281	1,212	1,014	1,120
Total, not government insured/guaranteed	$	1,636	2,048	1,929	1,830	2,428
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	104	153	108	110	338
Real estate mortgage		289	256	207	137	177
Real estate construction		25	89	57	86	156
Foreign		7	6	11	12	16
Total commercial		425	504	383	345	687
Consumer:
Real estate 1-4 family first mortgage (4)		616	781	819	728	858
Real estate 1-4 family junior lien mortgage (4)		156	279	255	286	325
Credit card		319	346	328	334	413
Other revolving credit and installment		120	138	144	137	145
Total consumer		1,211	1,544	1,546	1,485	1,741
Total, not government insured/guaranteed	$	1,636	2,048	1,929	1,830	2,428
(1) The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $7.1 billion, $8.7 billion, $8.9 billion, $9.8 billion and $10.8 billion at March 31, 2012, and December 31, September 30, June 30 and March 31, 2011, respectively. These amounts are excluded from the above table as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.
(2) Represents loans whose repayments are insured by the FHA or guaranteed by the VA.
(3) Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program (FFELP).
(4) Includes mortgages held for sale 90 days or more past due and still accruing.

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.
		Mar. 31,	Dec. 31,
(in millions)		2012	2011	2010	2009	2008
Commercial:
Commercial and industrial	$	385	399	718	1,911	4,580
Real estate mortgage		3,107	3,270	2,855	4,137	5,803
Real estate construction		1,564	1,745	2,949	5,207	6,462
Foreign		1,198	1,353	1,413	1,733	1,859
Total commercial		6,254	6,767	7,935	12,988	18,704
Consumer:
Real estate 1-4 family first mortgage		29,082	29,746	33,245	38,386	39,214
Real estate 1-4 family junior lien mortgage		198	206	250	331	728
Other revolving credit and installment		-	-	-	-	151
Total consumer		29,280	29,952	33,495	38,717	40,093
Total PCI loans (carrying value)	$	35,534	36,719	41,430	51,705	58,797

Wells Fargo & Company and Subsidiaries
CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS
The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. A nonaccretable difference is established in purchase accounting for PCI loans to absorb losses expected at that time on those loans. Amounts absorbed by the nonaccretable difference do not affect the income statement or the allowance for credit losses. Substantially all our commercial and industrial, CRE and foreign PCI loans are accounted for as individual loans. Conversely, Pick-a-Pay and other consumer PCI loans have been aggregated into several pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Resolutions of loans may include sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Our policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference. This removal method assumes that the amount received from resolution approximates pool performance expectations. The accretable yield percentage is unaffected by the resolution and any changes in the effective yield for the remaining loans in the pool are addressed by our quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no release of the nonaccretable difference for the pool because there is no difference between the amount received at resolution and the contractual amount of the loan. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed troubled debt restructurings (TDRs). Modified PCI loans that are accounted for individually are considered TDRs, and removed from PCI accounting, if there has been a concession granted in excess of the original nonaccretable difference. The following table provides an analysis of changes in the nonaccretable difference.
						Other
(in millions)	Commercial			Pick-a-Pay		consumer		Total
Balance, December 31, 2008	$	10,410		26,485		4,069		40,964
Addition of nonaccretable difference due to acquisitions		188		-		-		188
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(1,345	)	-		-		(1,345	)
Loans resolved by sales to third parties (2)		(299	)	-		(85	)	(384	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(1,216	)	(2,383	)	(614	)	(4,213	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(6,809	)	(14,976	)	(2,718	)	(24,503	)
Balance, December 31, 2011		929		9,126		652		10,707
Addition of nonaccretable difference due to acquisitions		-		-		-		-
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(28	)	-		-		(28	)
Loans resolved by sales to third parties (2)		-		-		-		-
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(108	)	-		(127	)	(235	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(45	)	(505	)	(19	)	(569	)
Balance, March 31, 2012	$	748		8,621		506		9,875
(1) Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases for settlements with borrowers due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations.
(2) Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale.
(3) Reclassification of nonaccretable difference to accretable yield for loans with increased cash flow estimates will result in increased interest income as a prospective yield adjustment over the remaining life of the loan or pool of loans.
(4) Write-downs to net realizable value of PCI loans are absorbed by the nonaccretable difference when severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS
The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is 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.
(in millions)
Balance, December 31, 2008	$	10,447
Addition of accretable yield due to acquisitions		128
Accretion into interest income (1)		(7,199	)
Accretion into noninterest income due to sales (2)		(237	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		4,213
Changes in expected cash flows that do not affect nonaccretable difference (3)		8,609
Balance, December 31, 2011		15,961
Addition of accretable yield due to acquisitions		-
Accretion into interest income (1)		(514	)
Accretion into noninterest income due to sales (2)		-
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		235
Changes in expected cash flows that do not affect nonaccretable difference (3)		81
Balance, March 31, 2012	$	15,763
(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.
					Other
(in millions)		Commercial		Pick-a-Pay	consumer		Total
Balance, December 31, 2008	$	-		-	-		-
Provision for losses due to credit deterioration		1,668		-	116		1,784
Charge-offs		(1,503	)	-	(50	)	(1,553	)
Balance, December 31, 2011		165		-	66		231
Provision for losses due to credit deterioration		39		-	5		44
Charge-offs		(27	)	-	(3	)	(30	)
Balance, March 31, 2012	$	177		-	68		245

Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO (1)
	March 31, 2012
		PCI loans							All other loans
							Ratio of				Ratio of
		Adjusted					carrying				carrying
		unpaid	Current				value to				value to
		principal	LTV		Carrying		current		Carrying		current
(in millions)	balance (2)		ratio (3)		value (4)		value (5)		value (4)		value (5)
California	$	24,292	119	%	$	18,852	92	%	$	17,371	85	%
Florida		3,187	120			2,471	88			3,640	99
New Jersey		1,310	91			1,217	83			2,261	78
New York		743	92			683	83			993	80
Texas		330	79			304	72			1,442	64
Other states		5,923	109			4,893	89			9,856	87
Total Pick-a-Pay loans	$	35,785			$	28,420			$	35,563
(1) The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2012.
(2) Adjusted unpaid principal balance includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.
(3) The current LTV ratio is calculated as the adjusted unpaid principal balance divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.
(4) Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include the nonaccretable difference and the accretable yield and, for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.
(5) The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.

Wells Fargo & Company and Subsidiaries
NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS
				Mar. 31,			Dec. 31,			Sept. 30,	June 30,	Mar. 31,
(in millions)					2012		2011			2011	2011	2011
Commercial:
Legacy Wachovia commercial and industrial, commercial real estate and foreign PCI loans (1)				$	5,213		5,695			6,321	7,016	7,507
Total commercial					5,213		5,695			6,321	7,016	7,507
Consumer:
Pick-a-Pay mortgage (1)					63,983		65,652			67,361	69,587	71,506
Liquidating home equity					5,456		5,710			5,982	6,266	6,568
Legacy Wells Fargo Financial indirect auto					1,907		2,455			3,101	3,881	4,941
Legacy Wells Fargo Financial debt consolidation					16,013		16,542			17,186	17,730	18,344
Education Finance - government guaranteed					14,800		15,376			15,611	16,295	16,907
Legacy Wachovia other PCI loans (1)					860		896			947	978	1,048
Total consumer					103,019		106,631			110,188	114,737	119,314
Total non-strategic and liquidating loan portfolios				$	108,232		112,326			116,509	121,753	126,821
(1) Net of purchase accounting adjustments related to PCI loans.
HOME EQUITY PORTFOLIOS (1)
						% of loans
						two payments					Loss rate (annualized)
	Outstanding balance					or more past due					Quarter ended
		Mar. 31,	Dec. 31,			Mar. 31,			Dec. 31,		Mar. 31,	Dec. 31,
(in millions)		2012	2011			2012			2011		2012	2011
Core portfolio (2)
California	$	24,855	25,555			2.84		%	3.03		3.56	3.42
Florida		10,547	10,870			4.57			4.99		4.79	4.30
New Jersey		7,774	7,973			3.56			3.73		2.46	2.22
Virginia		5,115	5,248			2.10			2.15		1.42	1.31
Pennsylvania		4,958	5,071			2.50			2.82		1.49	1.41
Other		44,760	46,165			2.61			2.79		2.50	2.50
Total		98,009	100,882			2.92			3.13		2.91	2.79
Liquidating portfolio
California		1,926	2,024			5.27			5.50		10.80	11.93
Florida		253	265			6.40			7.02		9.84	9.71
Arizona		109	116			4.76			6.64		15.08	17.54
Texas		93	97			1.06			0.93		2.43	1.57
Minnesota		73	75			3.89			2.83		5.07	8.13
Other		3,002	3,133			3.80			4.13		6.23	7.12
Total		5,456	5,710			4.41			4.73		8.11	9.09
Total core and liquidating portfolios	$	103,465	106,592			3.00			3.22		3.18	3.13
(1) Consists predominantly of real estate 1-4 family junior lien mortgages and first and junior lines of credit secured by real estate, but excludes PCI loans because their losses are generally covered by PCI accounting adjustment at the date of acquisition, and excludes real estate 1-4 family first lien open-ended line reverse mortgages because they do not have scheduled payments. These reverse mortgage loans are insured by the FHA.
(2) Includes $1.5 billion at March 31, 2012, and December 31, 2011, associated with the Pick-a-Pay portfolio.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
		Quarter ended
		Mar. 31,			Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)		2012			2011		2011		2011		2011
Balance, beginning of quarter	$	19,668			20,372		21,262		22,383		23,463
Provision for credit losses		1,995			2,040		1,811		1,838		2,210
Interest income on certain impaired loans (1)		(87	)		(86	)	(84	)	(79	)	(83	)
Loan charge-offs:
Commercial:
Commercial and industrial		(359	)		(416	)	(349	)	(365	)	(468	)
Real estate mortgage		(82	)		(153	)	(119	)	(185	)	(179	)
Real estate construction		(80	)		(35	)	(98	)	(99	)	(119	)
Lease financing		(8	)		(8	)	(10	)	(7	)	(13	)
Foreign		(29	)		(52	)	(25	)	(57	)	(39	)
Total commercial		(558	)		(664	)	(601	)	(713	)	(818	)
Consumer:
Real estate 1-4 family first mortgage		(828	)		(904	)	(900	)	(1,064	)	(1,015	)
Real estate 1-4 family junior lien mortgage		(820	)		(856	)	(893	)	(968	)	(1,046	)
Credit card		(301	)		(303	)	(320	)	(378	)	(448	)
Other revolving credit and installment		(373	)		(412	)	(421	)	(391	)	(500	)
Total consumer		(2,322	)		(2,475	)	(2,534	)	(2,801	)	(3,009	)
Total loan charge-offs		(2,880	)		(3,139	)	(3,135	)	(3,514	)	(3,827	)
Loan recoveries:
Commercial:
Commercial and industrial		103			106		88		111		114
Real estate mortgage		36			36		23		57		27
Real estate construction		13			40		43		27		36
Lease financing		6			4		7		6		7
Foreign		15			7		17		10		11
Total commercial		173			193		178		211		195
Consumer:
Real estate 1-4 family first mortgage		37			60		79		155		111
Real estate 1-4 family junior lien mortgage		57			56		51		59		52
Credit card		59			47		54		84		66
Other revolving credit and installment		159			143		162		167		193
Total consumer		312			306		346		465		422
Total loan recoveries		485			499		524		676		617
Net loan charge-offs		(2,395	)		(2,640	)	(2,611	)	(2,838	)	(3,210	)
Allowances related to business combinations/other		(52	)		(18	)	(6	)	(42	)	3
Balance, end of quarter	$	19,129			19,668		20,372		21,262		22,383
Components:
Allowance for loan losses	$	18,852			19,372		20,039		20,893		21,983
Allowance for unfunded credit commitments		277			296		333		369		400
Allowance for credit losses	$	19,129			19,668		20,372		21,262		22,383
Net loan charge-offs (annualized) as a percentage of average total loans		1.25		%	1.36		1.37		1.52		1.73
Allowance for loan losses as a percentage of:
Total loans		2.46			2.52		2.64		2.78		2.93
Nonaccrual loans		86			91		92		91		88
Nonaccrual loans and other nonperforming assets		71			75		75		75		72
Allowance for credit losses as a percentage of:
Total loans		2.50			2.56		2.68		2.83		2.98
Nonaccrual loans		87			92		93		92		90
Nonaccrual loans and other nonperforming assets		72			76		76		76		73
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan's effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER TIER 1 COMMON EQUITY UNDER BASEL I (1)
			Mar. 31,			Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in billions)			2012			2011		2011		2011		2011
Total equity		$	146.8			141.7		139.2		137.9		134.9
Noncontrolling interests			(1.3	)		(1.5	)	(1.5	)	(1.5	)	(1.5	)
Total Wells Fargo stockholders' equity			145.5			140.2		137.7		136.4		133.4
Adjustments:
Preferred equity			(10.6	)		(10.6	)	(10.6	)	(10.6	)	(10.6	)
Goodwill and intangible assets (other than MSRs)			(33.7	)		(34.0	)	(34.4	)	(34.6	)	(35.1	)
Applicable deferred taxes			3.7			3.8		4.0		4.1		4.2
MSRs over specified limitations			(0.9	)		(0.8	)	(0.7	)	(0.9	)	(0.9	)
Cumulative other comprehensive income			(4.1	)		(3.1	)	(3.7	)	(5.3	)	(4.9	)
Other			(0.4	)		(0.4	)	(0.4	)	(0.3	)	(0.1	)
Tier 1 common equity	(A)	$	99.5			95.1		91.9		88.8		86.0
Total risk-weighted assets (2)	(B)	$	1,000.1			1,005.6		983.2		970.2		962.9
Tier 1 common equity to total risk-weighted assets	(A)/(B)		9.95		%	9.46		9.34		9.15		8.93
(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 March 31, 2012, preliminary risk-weighted assets reflect estimated on-balance sheet risk-weighted assets of $831.2 billion and derivative and off-balance sheet risk-weighted assets of $169.0 billion.
TIER 1 COMMON EQUITY UNDER BASEL III (ESTIMATED) (1)
												Mar. 31,
(in billions)												2012
Tier 1 common equity under Basel I										$		99.5
Adjustments from Basel I to Basel III:
Cumulative other comprehensive income (2)												4.1
Impact of threshold deductions defined under Basel III (2)(3)												0.9
Other												0.6
Tier 1 common equity anticipated under Basel III	(C)											105.1
Total risk-weighted assets anticipated under Basel III (4)	(D)									$		1,346.0
Tier 1 common equity to total risk-weighted assets anticipated under Basel III	(C)/(D)											7.81		%
(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) Threshold deductions under Basel III include individual and aggregate limitations, as a percentage of Tier 1 common equity (as defined under Basel III), with respect to MSRs, deferred tax assets and investments in unconsolidated financial companies.
(4) Under current Basel proposals, risk-weighted assets incorporate different classifications of assets, with certain risk weights based on a borrower's credit rating or Wells Fargo's own risk models, along with adjustments to address a combination of credit/counterparty, operational and market risks, and other Basel III elements. The amount of risk-weighted assets anticipated under Basel III is preliminary and subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory authorities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
		Quarter ended
		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(income/expense in millions, average balances in billions)		2012		2011		2011		2011		2011
COMMUNITY BANKING
Net interest income (2)	$	7,326		7,420		7,272		7,390		7,575
Provision for credit losses		1,878		2,025		1,974		1,916		2,061
Noninterest income		6,095		5,589		5,238		5,215		5,082
Noninterest expense		7,825		7,313		6,905		7,412		7,622
Income before income tax expense		3,718		3,671		3,631		3,277		2,974
Income tax expense		1,293		1,084		1,220		1,055		745
Net income before noncontrolling interests		2,425		2,587		2,411		2,222		2,229
Less: Net income from noncontrolling interests		77		78		87		102		49
Segment net income	$	2,348		2,509		2,324		2,120		2,180
Average loans	$	486.1		490.6		489.7		497.0		508.4
Average assets		738.3		753.3		751.8		747.6		756.7
Average core deposits		575.2		568.4		556.4		552.0		548.1
WHOLESALE BANKING
Net interest income (2)	$	3,181		3,071		2,897		2,930		2,718
Provision (reversal of provision) for credit losses		95		31		(178	)	(97	)	134
Noninterest income		2,852		2,345		2,238		2,665		2,704
Noninterest expense		3,054		2,938		2,689		2,761		2,789
Income before income tax expense		2,884		2,447		2,624		2,931		2,499
Income tax expense		1,016		813		822		998		862
Net income before noncontrolling interests		1,868		1,634		1,802		1,933		1,637
Less: Net income (loss) from noncontrolling interests		-		(2	)	(1	)	20		2
Segment net income	$	1,868		1,636		1,803		1,913		1,635
Average loans	$	268.6		265.1		253.4		242.9		234.7
Average assets		467.8		458.3		437.1		417.3		398.8
Average core deposits		220.9		223.2		209.3		190.6		184.8
WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	701		731		716		697		700
Provision for credit losses		43		20		48		62		40
Noninterest income		2,361		2,311		2,172		2,396		2,454
Noninterest expense		2,547		2,520		2,371		2,486		2,557
Income before income tax expense		472		502		469		545		557
Income tax expense		181		191		178		206		210
Net income before noncontrolling interests		291		311		291		339		347
Less: Net income (loss) from noncontrolling interests		(5	)	-		1		2		4
Segment net income	$	296		311		290		337		343
Average loans	$	42.5		42.8		43.1		43.5		42.7
Average assets		161.9		160.6		158.4		150.7		150.7
Average core deposits		135.6		135.2		133.3		125.9		125.4
OTHER (3)
Net interest income (2)	$	(320	)	(330	)	(343	)	(339	)	(342	)
Provision for credit losses		(21	)	(36	)	(33	)	(43	)	(25	)
Noninterest income		(560	)	(532	)	(562	)	(568	)	(562	)
Noninterest expense		(433	)	(263	)	(288	)	(184	)	(235	)
Loss before income tax benefit		(426	)	(563	)	(584	)	(680	)	(644	)
Income tax benefit		(162	)	(214	)	(222	)	(258	)	(245	)
Net loss before noncontrolling interests		(264	)	(349	)	(362	)	(422	)	(399	)
Less: Net income from noncontrolling interests		-		-		-		-		-
Other net loss	$	(264	)	(349	)	(362	)	(422	)	(399	)
Average loans	$	(28.6	)	(29.9	)	(31.7	)	(32.1	)	(31.7	)
Average assets		(65.1	)	(65.5	)	(65.9	)	(64.7	)	(65.0	)
Average core deposits		(61.2	)	(61.9	)	(62.2	)	(61.0	)	(61.5	)
CONSOLIDATED COMPANY
Net interest income (2)	$	10,888		10,892		10,542		10,678		10,651
Provision for credit losses		1,995		2,040		1,811		1,838		2,210
Noninterest income		10,748		9,713		9,086		9,708		9,678
Noninterest expense		12,993		12,508		11,677		12,475		12,733
Income before income tax expense		6,648		6,057		6,140		6,073		5,386
Income tax expense		2,328		1,874		1,998		2,001		1,572
Net income before noncontrolling interests		4,320		4,183		4,142		4,072		3,814
Less: Net income from noncontrolling interests		72		76		87		124		55
Wells Fargo net income	$	4,248		4,107		4,055		3,948		3,759
Average loans	$	768.6		768.6		754.5		751.3		754.1
Average assets		1,302.9		1,306.7		1,281.4		1,250.9		1,241.2
Average core deposits		870.5		864.9		836.8		807.5		796.8
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. In first quarter 2012, we modified internal funds transfer rates and the allocation of funding. Prior periods have been revised to reflect these changes.
(2) 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.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
		Quarter ended
	Mar. 31,			Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)		2012		2011		2011		2011		2011
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	12,603		12,372		14,778		15,648		14,467
Servicing from securitizations or asset transfers (1)		1,776		1,211		744		740		1,262
Changes in fair value:
Due to changes in valuation model inputs or assumptions (2)		(158	)	(464	)	(2,640	)	(1,075	)	499
Other changes in fair value (3)		(643	)	(516	)	(510	)	(535	)	(580	)
Total changes in fair value		(801	)	(980	)	(3,150	)	(1,610	)	(81	)
Fair value, end of quarter	$	13,578		12,603		12,372		14,778		15,648
(1) Quarter ended March 31, 2012, includes $315 million residential MSRs transferred from amortized MSRs that we elected to carry at fair value effective January 1, 2012.
(2) 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. The first quarter 2012 valuation change includes a discount rate update reflecting increased capital return requirements demanded by market participants, partially offset by an increase in the valuation due to an increase in interest rates.
(3) Represents changes due to collection/realization of expected cash flows over time.
		Quarter ended
		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)		2012		2011		2011		2011		2011
Amortized MSRs:
Balance, beginning of quarter	$	1,445		1,437		1,432		1,432		1,422
Purchases		14		53		21		36		45
Servicing from securitizations or asset transfers (1)		(327	)	26		50		27		29
Amortization		(58	)	(71	)	(66	)	(63	)	(64	)
Balance, end of quarter		1,074		1,445		1,437		1,432		1,432
Valuation Allowance:
Balance, beginning of quarter		(37	)	(40	)	(10	)	(9	)	(3	)
Reversal of provision (provision) for MSRs in excess of fair value (1)		37		3		(30	)	(1	)	(6	)
Balance, end of quarter		-		(37	)	(40	)	(10	)	(9	)
Amortized MSRs, net	$	1,074		1,408		1,397		1,422		1,423
Fair value of amortized MSRs:
Beginning of quarter	$	1,756		1,759		1,805		1,898		1,812
End of quarter		1,263		1,756		1,759		1,805		1,898
(1) Quarter ended March 31, 2012, is net of $ 350 million ($313 million after valuation allowance) of residential MSRs that we elected to carry at fair value effective January 1, 2012. A cumulative adjustment of $2 million to fair value was recorded in retained earnings at January 1, 2012.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
		Quarter ended
		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in millions)		2012		2011		2011		2011		2011
Servicing income, net:
Servicing fees (1)	$	1,011		876		1,029		1,102		1,137
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(158	)	(464	)	(2,640	)	(1,075	)	499
Other changes in fair value (3)		(643	)	(516	)	(510	)	(535	)	(580	)
Total changes in fair value of MSRs carried at fair value		(801	)	(980	)	(3,150	)	(1,610	)	(81	)
Amortization		(58	)	(71	)	(66	)	(63	)	(64	)
Reversal of provision (provision) for MSRs in excess of fair value		-		3		(30	)	(1	)	(6	)
Net derivative gains (losses) from economic hedges (4)		100		665		3,247		1,449		(120	)
Total servicing income, net	$	252		493		1,030		877		866
Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	(58	)	201		607		374		379
(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. The first quarter 2012 valuation change includes a discount rate update reflecting increased capital return requirements demanded by market participants, partially offset by an increase in the valuation due to an increase in interest rates.
(3) Represents changes due to collection/realization of expected cash flows over time.
(4) Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs.
		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in billions)		2012		2011		2011		2011		2011
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,483		1,456		1,457		1,464		1,453
Owned loans serviced		350		358		349		338		346
Subservicing		7		8		8		8		9
Total residential servicing		1,840		1,822		1,814		1,810		1,808
Commercial mortgage servicing:
Serviced for others		407		398		401		402		406
Owned loans serviced		106		106		104		101		101
Subservicing		13		14		14		14		14
Total commercial servicing		526		518		519		517		521
Total managed servicing portfolio	$	2,366		2,340		2,333		2,327		2,329
Total serviced for others	$	1,890		1,854		1,858		1,866		1,859
Ratio of MSRs to related loans serviced for others		0.77	%	0.76		0.74		0.87		0.92
Weighted-average note rate (mortgage loans serviced for others)		5.05		5.14		5.21		5.26		5.31
(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
		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(in billions)		2012		2011		2011		2011		2011
Application data:
Wells Fargo first mortgage quarterly applications	$	188		157		169		109		102
Refinances as a percentage of applications		76	%	78		74		55		61
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	79		72		84		51		45
Residential Real Estate Originations:
Wells Fargo first mortgage loans:
Retail	$	61		58		43		34		49
Correspondent/Wholesale		68		61		45		29		34
Other (1)		-		1		1		1		1
Total quarter-to-date	$	129		120		89		64		84
Total year-to-date	$	129		357		237		148		84
(1) Consists of home equity loans and lines.

Wells Fargo & Company and Subsidiaries
CHANGES IN LIABILITY FOR MORTGAGE LOAN REPURCHASE LOSSES
	Quarter ended
		Mar. 31,		Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(in millions)		2012		2011			2011			2011			2011
Balance, beginning of period	$	1,326		1,194			1,188			1,207			1,289
Provision for repurchase losses:
Loan sales		62		27			19			20			35
Change in estimate (1)		368		377			371			222			214
Total additions		430		404			390			242			249
Losses		(312	)	(272	)		(384	)		(261	)		(331	)
Balance, end of period	$	1,444		1,326			1,194			1,188			1,207
(1) Results from such factors as credit deterioration, changes in investor demand and mortgage insurer practices, and changes in the financial stability of correspondent lenders.
UNRESOLVED REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS
($ in millions)		Government sponsored entities (1)				Private			Mortgage insurance rescissions (2)			Total
March 31, 2012
Number of loans				6,333			857			970			8,160
Original loan balance (3)		$		1,398			241			217			1,856
December 31, 2011
Number of loans				7,066			470			1,178			8,714
Original loan balance (3)		$		1,575			167			268			2,010
September 30, 2011
Number of loans				6,577			582			1,508			8,667
Original loan balance (3)		$		1,500			208			314			2,022
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
(1) Includes repurchase demands of 694 and $131 million, 861 and $161 million, 878 and $173 million, 892 and $179 million, and 685 and $132 million, for March 31, 2012, and December 31, September 30, June 30, and March 31, 2011, respectively, received from investors on mortgage servicing rights acquired from other originators. We generally have the right of recourse against the seller and may be able to recover losses related to such repurchase demands subject to counterparty risk associated with the seller. The number of repurchase demands from GSEs that are from mortgage loans originated in 2006 through 2008 totaled 81% at March 31, 2012.
(2) As part of our representations and warranties in our loan sales contracts, we typically represent to GSEs and private investors that certain loans have mortgage insurance to the extent there are loans that have loan to value ratios in excess of 80% that require mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer due to a claim of breach of a contractual representation or warranty, the lack of insurance may result in a repurchase demand from an investor. Similar to repurchase demands, we evaluate mortgage insurance rescission notices for validity and appeal for reinstatement if the rescission was not based on a contractual breach. When investor demands are received due to lack of mortgage insurance, they are reported as unresolved repurchase demands based on the applicable investor category for the loan (GSE or private). Over the last year, approximately 20% of our repurchase demands from GSEs had mortgage insurance rescission as one of the reasons for the repurchase demand. Of all the mortgage insurance rescissions notices received in 2011, approximately 70% have resulted in repurchase demands through March 2012. Not all mortgage insurance rescissions received in 2011 have been completed through the appeals process with the mortgage insurer and upon successful appeal, we work with the investor to rescind the repurchase demand.
(3) While the original loan balances related to these demands are presented above, the establishment of the repurchase liability is based on a combination of factors, such as our appeals success rates, reimbursement by correspondent and other third party originators, and projected loss severity, which is driven by the difference between the current loan balance and the estimated collateral value less costs to sell the property.