As currently contemplated, borrowings under the credit facility will bear interest at variable rates based on LIBOR or Wachovia's prime rate plus variable margins at the Borrower's option, under which applicable interest rates currently range from 3.03% to 4.03% per annum.

As previously announced on October 2, 2009, the Company called $75 million of its Senior Notes for redemption on December 1, 2009. The Company intends to redeem the remaining $29.4 million of its Senior Notes by year-end.

"This proposed new facility, combined with the redemption of our remaining senior notes, are very important steps toward creating a capital structure that will enable the Company to further realize the growth potential for the IMAX brand," said Richard L. Gelfond, Chief Executive Officer of IMAX Corporation. "We believe our progress throughout this year to strengthen our balance sheet and enhance our financial flexibility is reflective of the early success we have achieved with our new business model and our entry in the digital arena."

About IMAX Corporation

IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies. The worldwide IMAX network is among the most important and successful theatrical distribution platforms for major event Hollywood films around the globe, with IMAX(R) theatres delivering the world's best cinematic presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR(R) technology. IMAX DMR is the Company's groundbreaking digital re-mastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience(R). The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of September 30, 2009, there were 403 IMAX theatres (280 commercial, 123 institutional) operating in 44 countries.

IMAX(R), IMAX(R) 3D, IMAX(R) DMR, Experience It In IMAX(R), The IMAX 3D Experience(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).

The IMAX Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6469

This press release contains forward looking statements that are based on management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include, but are not limited to, general economic, market or business conditions, including the length and severity of the current economic downturn, the opportunities that may be presented to and pursued by the Company, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes and developments in the commercial exhibition industry, the failure to convert theatre system backlog into revenue, investments and operations in foreign jurisdictions, foreign currency fluctuations and the Company's prior restatements and the related litigation and ongoing inquiries by the SEC and the OSC. These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: IMAX Corporation

CONTACT: IMAX Corporation, New York
Media:
Sarah Gormley
212-821-0155
sgormley@imax.com
Investors:
Heather Anthony
212-821-0121
hanthony@imax.com
Rogers & Cowan, Los Angeles
Entertainment Media:
Elliot Fischoff/Jason Magner
310-854-8128
jmagner@rogersandcowan.com
Sloane & Company, New York
Business Media:
Whit Clay
212-446-1864
wclay@sloanepr.com

The preceeding is a transcript of the MarketNewsVideo.com video published at: http://www.marketnewsvideo.com/?id=200910DebtDeals102909&mv=1.

http://www.marketnewsvideo.com/

-- Diluted earnings per common share of $0.56, up 14 percent from last year; $1.69 per share year to date

-- Results driven by record $10.8 billion pre-tax, pre-provision profit (PTPP); PTPP has been more than two times quarterly net charge-offs each quarter this year, despite cyclically elevated net charge-offs. (See footnote 4 on page 20 for information on PTPP)

-- Continued strong revenue -- Revenue of $22.5 billion, flat with record revenue in second quarter 2009

-- $169 billion of credit extended to customers in the quarter

-- Average checking and savings deposits up 11 percent (annualized) from prior quarter

-- Net interest margin of 4.36 percent, up 6 basis points from prior quarter

-- Cross-sell for legacy Wells Fargo a record 5.90 for retail bank households

-- Broad-based revenue contribution from diverse businesses, including double-digit linked-quarter growth in asset management, auto lending, consumer finance, debit cards, retirement services, SBA lending and wealth management, along with continued strong performance from regional banking and mortgage banking

-- Significant increases in capital, reduction in risk -- Wells Fargo stockholders' equity increased to $122 billion (10 percent of total assets), up $23 billion from year end

-- Generated $20 billion during the past six months toward the $13.7 billion Supervisory Capital Assessment Program (SCAP) buffer requirement; PTPP tracking above Company's internal SCAP estimates and 35 percent above supervisory adverse scenario estimate

-- Credit reserves built by $1.0 billion ($3.0 billion year to date), reaching $24.5 billion, or 3.07 percent of total loans and 118 percent of nonaccrual loans

-- Substantial increases in capital ratios driven by record retained earnings and other sources of internal capital generation

                                                           Sept. 30,        June 30,  Dec. 31,
(as a percent of total risk-weighted assets)               2009 (1 )        2009      2008
Tier 1 capital                                             10.6         %   9.8       7.8
Tier 1 common equity (2)                                   5.2              4.5       3.1
Tier 1 leverage                                            9.0              8.3       14.5      (3  )
Total capital                                              14.7             13.8      11.8
(1) September 30, 2009, ratios are preliminary.
(2) See table on page 38 for more information on Tier 1 common
equity.
(3) Based on average Q4 2008 Wells Fargo assets only, excludes
Wachovia.

-- Reduced non-strategic/liquidating loans by $5.7 billion in the quarter

-- FAS 166/167 expected to add approximately $28 billion to risk-weighted assets upon adoption in 2010

-- Current projections show credit losses peaking in 2010, with consumer losses potentially peaking in first half of the year and gradually declining, absent further economic deterioration -- Growth in nonperforming loans and net charge-offs slowing as of third quarter, for consumer and commercial portfolios

-- Credit performance of recent vintage legacy Wells Fargo consumer portfolios improving, largely the result of proactive credit management over past two years

-- 90 days past due and still accruing levels flat with second quarter; consumer 90 days past due and still accruing declined from prior quarter

-- Significantly smaller credit card portfolio than large bank peers

-- Pick-a-Pay portfolio currently estimated to have lower life-of-loan losses than originally estimated, driven in part by extensive and successful loan modification efforts

-- Collateral values improving in auto market and housing prices stabilizing in many regions

-- Legacy Wells Fargo commercial and commercial real estate portfolio well underwritten and diversified; Wachovia commercial and commercial real estate portfolio marked down at merger close at end of last year

-- Legacy Wells Fargo loss rate of 3.37 percent, below large bank peers; overall loss rate of 2.50 percent reflected benefit of purchase accounting on Wachovia loan portfolio; combined losses less than half of Company's quarterly PTPP

-- Wachovia integration on track and on schedule -- Estimated cumulative merger expenses reduced to approximately $5.5 billion from $7.9 billion; on track to achieve $5.0 billion annual run-rate cost savings by completion of integration in 2011

-- Cross-sell revenues already being realized

-- Credit overall performing in line with original expectations

-- First state community bank conversion (Colorado) scheduled for November; conversion of remaining overlapping markets expected in 2010

-- Increased loan modifications -- Provided 62,989 trial and completed modifications through the Home Affordable Modification Program (HAMP) and 292,005 through Company's proprietary programs, bringing total this year through September 30, 2009, to 354,994

-- Refinanced 987,000 customers' mortgages using the Home Affordable Refinance Program (HARP) and other standard refinance programs

-- Over 20 percent of PCI Pick-a-Pay portfolio modified through September 30, 2009, with positive early performance

Selected Financial Information                                     Nine
                                                                   months
                                          Quarter ended            ended
                                          Sept. 30,      June 30,  Sept. 30,
                                               2009      2009      2009
Earnings
Diluted earnings per share                $    0.56      0.57      1.69
Wells Fargo net income (in billions)           3.24      3.17      9.45
Asset Quality
Net charge-offs as % of avg. total loans       2.50   %  2.11      2.05
Nonperforming loans as % of total loans        2.61      1.92      2.61
Allowance as a % of total loans                3.07      2.86      3.07
Other
Revenue (in billions)                     $    22.47     22.51     65.99
Average loans (in billions)                    810.2     833.9     833.1
Average core deposits (in billions)            759.3     765.7     759.7
Net interest margin                            4.36   %  4.30      4.27

Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $0.56 for third quarter 2009 compared with $0.57 for second quarter 2009 and $0.49 for third quarter 2008. (Results prior to January 1, 2009, do not include Wachovia.) Wells Fargo net income was a record $3.24 billion for third quarter 2009, up 98 percent from last year, and a record $9.45 billion for the first nine months of 2009, up 75 percent from last year.

"Doing what's right for our customers again proved to be right for our stockholders as our talented team members earned even more of our customers' business, enabling us to achieve our third consecutive quarter of record earnings," said President and CEO John Stumpf. "The Wells Fargo-Wachovia merger, agreed to a year ago, is exceeding our expectations and already adding value for many of our 70 million customers across North America. Merger costs have been significantly less than originally expected. With our 80-plus businesses pulling the stagecoach, the diversity of our business model again showed significant power to generate capital internally. We had solid performance across our company -- especially among counter-cyclical businesses such as deposits, residential mortgages, debit card and asset-based lending. We're also doing what's right for our mortgage customers having difficulty making their payments on time. We've offered home payment relief to 1.3 million customers so far this year, including 355,000 loan modifications. We now have 13,000 team members working on helping customers stay in their homes and our delinquency and foreclosure rates continue to be well below the industry average. As we've already announced, Dick Kovacevich will step down as chairman and a director at the end of 2009 and retire from the Company in early 2010. I am grateful to Dick and to Wells Fargo's leadership team and believe we have the strongest, most experienced team of senior leaders in all of financial services. They've led our businesses to a strong third quarter, following two consecutive quarters of record earnings, despite the economic recession. This is something that few, if any, financial services companies have achieved -- and during the most challenging credit cycle in recent memory and while we continue to build reserves.

Wells Fargo has always been committed to providing clear, complete, and transparent communication about the Company's results to all of its stakeholders. As we enter the second year of the merger with Wachovia, we will be expanding our quarterly communications to include a live quarterly earnings conference call -- starting in January for our fourth quarter and full year 2009 results -- and we will also host an investor day in 2010."

Financial Performance

"Third quarter results again illustrated the Company's ability to profitably grow, even through the downward cycle despite elevated credit losses," said Chief Financial Officer Howard Atkins. "Since the merger with Wachovia at year-end 2008, we've earned a record $9.45 billion, even after building credit reserves by $3.0 billion and recording $1.4 billion of other-than-temporary impairment (OTTI) charges. Pre-tax pre-provision profit has grown every quarter this year, reaching a record $10.8 billion in the third quarter, more than double quarterly net charge-offs. While mortgage origination and hedging results contributed to our performance, collectively all of our other businesses have also grown PTPP each quarter this year reflecting the breadth of our diversified business model, record levels of sales and cross-sell, the realization of revenue synergies from the combination with Wachovia, and further improvements in our net interest margin to 4.36 percent and efficiency ratio to 52.0 percent. We continued to maintain what we believe is one of the strongest balance sheets in banking, building credit reserves by $1.0 billion in the quarter to $24.5 billion, or 3.07 percent of total loans, reducing previously identified non-strategic and liquidating loan portfolios to $152.7 billion, down over $14 billion from year end, and reducing the value of our debt and equity investment portfolios through $396 million of OTTI. Also, in line with lower mortgage rates, the ratio of mortgage servicing rights (MSRs) as a percentage of loans serviced for others was 83 basis points, the third lowest ratio in our Company's history and a level considerably lower than our mortgage peers.

"We have significantly built capital, increasing common stockholders' equity to $123 billion, up $23 billion so far in 2009 and increasing Tier 1 common to 5.2 percent, nearly two times our capital position at year-end 2008. Nonperforming loans and net charge-offs increased in the quarter, but the rate of growth of nonperforming loans has declined each quarter so far this year. While the level of nonperforming assets and losses is expected to remain elevated for a period of time, we currently expect total credit losses to peak in 2010, with consumer losses potentially peaking in the first half of the year and gradually declining as the year progresses, absent any further deterioration in the U.S. economy. Our credit reserves as of September 30, 2009, reflect an improvement in consumer loss emergence with almost all of the current quarter reserve build covering higher commercial loss emergence.

"Operationally and financially, the Wachovia merger is exceeding our expectations. Structurally, the merger leaves us with an even more diversified business than legacy Wells Fargo alone -- less geographic concentration, an even wider array of products and services, better balance between consumer and commercial businesses, and an equal split between spread income and fee income. We are currently on track to realize our objective of $5.0 billion in annual run-rate savings when we complete the integration in 2011, with about 30-40 percent of those savings now beginning to be realized in our expense run-rate. We now expect to spend about $2.4 billion less in merger and integration costs than previously expected to achieve the run-rate savings, largely because proportionately more of the labor savings are being realized through attrition instead of severance and because we're spending less than planned on building disposition, as we fill unoccupied space with third party tenants. We are ahead of plan in shedding asset risk from businesses that do not meet our financial and strategic criteria and in retaining deposits and customers. We're already realizing meaningful revenue synergies, an important driver of our earnings this year. Because Wachovia's credit-impaired loan portfolios were written down at the close of the merger at the end of last year, Wachovia is now contributing to the Company's rapid internal capital growth."

Revenue

Revenue of $22.5 billion remained at near-record levels following strong first and second quarters. Relative to the pre-Wachovia third quarter a year ago, the Company's assets almost doubled, while total revenue has substantially more than doubled, despite the weak economy and despite the reduction in non-strategic/liquidating loan and asset portfolios. The high levels of revenue generated in the third quarter related to several factors:

-- Continued strong core deposits reflecting 11 percent (annualized) growth in checking and savings, 25 percent (annualized) growth in wholesale banking core deposits and 10 percent (annualized) growth in wealth management core deposits. Wachovia's deposit pricing has been conformed to that of Wells Fargo, with continued better-than-planned retention of Wachovia's maturing higher-rate CDs (57 percent retained in third quarter). The average cost of all core deposits declined to 41 basis points in the quarter, the principal reason for the Company's 4.36 net interest margin, highest among large bank peers.

-- The Company remained an industry leader in making credit available to U.S. consumers and businesses. Total credit supplied in the quarter through mortgage originations and new/increased credit facilities was $169 billion, one of the main drivers of continued strong loan fees, even though loan demand remained soft in the quarter.

-- Record core product solutions (sales) and record cross-sell in regional banking for legacy Wells Fargo

-- Broad-based revenue growth across multiple businesses, including double-digit (annualized) linked-quarter growth in asset management, auto lending, consumer finance, debit card, retirement services, SBA lending and wealth management. Linked-quarter growth in these businesses was partially offset by more modest mortgage revenue, lower investment banking revenue and seasonal decline in insurance revenue.

-- While mortgage originations and servicing revenue remained high, total mortgage banking noninterest income represented less than 15 percent of consolidated company revenue, reflecting the breadth and depth of the Company's business model.

Net Interest Income

Net interest income was $11.7 billion, compared with $11.8 billion in second quarter 2009. While the net interest margin improved to 4.36 percent, average earning assets were down $23.7 billion linked quarter, reflecting soft loan demand and reductions in non-strategic/liquidating assets. While average investment securities were up $7.3 billion, this largely reflected the averaging effect in the quarter of mortgage-backed securities (MBS) purchased late in the second quarter at yields more than 1 percent above current market. During the third quarter, $23 billion of the lowest-yielding MBS were sold to reduce exposure to higher long-term interest rates.

Loans

Average total loans were $810.2 billion compared with $833.9 billion in second quarter 2009, as consumer and commercial demand for credit remained moderate and the Company continued to reduce certain higher-risk loan portfolios. The decline in average loans included a reduction of $5.7 billion linked quarter in the non-strategic and liquidating loan portfolios that the Company has been exiting, such as indirect home equity and indirect auto from legacy Wells Fargo, and Wachovia's Pick-a-Pay and commercial real estate portfolios.

Deposits

Average total core deposits were $759.3 billion compared with $765.7 billion in second quarter 2009. During the quarter, $38 billion of Wachovia's higher-rate certificates of deposit matured, with $22 billion of those balances retained. "We continued to gain new deposit customers and deepen our relationship with existing customers," said Atkins. Average checking and savings deposits increased 11 percent (annualized) to $629.6 billion from $613.3 billion in second quarter 2009. Average mortgage escrow deposits were $28.7 billion compared with $32.0 billion in second quarter 2009. Average consumer checking accounts at legacy Wells Fargo grew a net 6.4 percent from third quarter 2008 and, for Wells Fargo and Wachovia combined, grew a net 5.2 percent in California for the same period.

Noninterest Income

Noninterest income of $10.8 billion was flat compared with $10.7 billion in second quarter 2009 and included:

-- Mortgage banking income of $3.1 billion, including: -- $1.1 billion in revenue from mortgage loan originations/sales activities on $96 billion of residential mortgage originations

-- $1.5 billion combined market-related valuation changes to mortgage servicing rights (MSRs) and economic hedges (consisting of a $2.1 billion decrease in the fair value of the MSRs more than offset by a $3.6 billion economic hedge gain in the quarter), largely due to hedge-carry income reflecting the current low short-term interest rate environment, which is expected to continue into the fourth quarter; MSRs as a percentage of loans serviced for others reduced to 0.83 percent; average servicing portfolio note rate was only 5.72 percent.

-- Trust and investment fees of $2.5 billion, up 15 percent (annualized) linked quarter primarily reflecting an increase in client assets, bond origination fees, and higher brokerage revenue as the Company further builds its retail securities brokerage business

-- Service charges on deposit accounts of $1.5 billion, up 8 percent (annualized) linked quarter driven by continued strong checking account growth

-- Card fees of $946 million, up 10 percent (annualized) linked quarter reflecting seasonally higher purchase volumes and higher customer penetration rates

-- Net losses on debt and equity securities totaling $11 million, including $396 million of OTTI write-downs and $120 million of realized gains on the sale of MBS in the third quarter. After having purchased over $34 billion of agency MBS in the second quarter of 2009 at yields more than 1 percent above the current market, the Company sold $23 billion of its lowest-yielding MBS after long-term interest rates declined in the third quarter.

Due to the general decline in long-term yields and narrowing of credit spreads in the quarter, the Company's net unrealized securities gains, reflected in equity, increased to $6.6 billion at September 30, 2009, from net losses of $400 million at June 30, 2009.

Noninterest Expense

Noninterest expense declined to $11.7 billion from $12.7 billion in the second quarter, which included $565 million of FDIC deposit insurance assessments. The balance of the decline in third quarter expense was due to merger consolidation savings and ongoing expense management initiatives. "We currently expect cumulative merger integration costs of approximately $5.5 billion, down from our previous $7.9 billion estimate," said Atkins. "The revised estimate reflects lower owned real estate write-downs and lower estimated severance costs since a greater proportion of labor savings is being realized through attrition. Of this $5.5 billion, we've spent $1.0 billion merger to date, including $200 million in the third quarter. Of the amount spent thus far, $444 million has been recorded through the income statement and $559 million has been recorded through purchase accounting adjustments to goodwill. A portion of the remaining integration costs will be charged to goodwill in the fourth quarter under purchase accounting. The balance of the cumulative estimated integration costs are expected to be expensed over the next two years, and are likely to be offset by merger-related savings during this period. We remain on track to achieve $5.0 billion in annual run-rate savings upon completion of the integration in 2011. To date, we have achieved approximately 30-40 percent of these savings." Noninterest expense also included $100 million of additional insurance reserve at the Company's captive mortgage reinsurance operation and $49 million of non-Wachovia-related integration costs. "As we reduce expenses through consolidation and other expense initiatives, we continue to reinvest in our businesses for long-term revenue growth," said Atkins. "During 2009, we've opened 41 banking stores and converted 1,274 ATMs to Envelope-Free(SM) webATM machines. We have also continued to increase the level and productivity of our sales force in community banking, commercial banking and wealth management. We continue to manage to a variable expense base in the mortgage company. Part-time staff was reduced in third quarter as application volume declined, and increased again in September and early in the fourth quarter as applications increased." The Company's efficiency ratio improved to 52.0 percent from 56.4 percent in second quarter and 56.2 percent in first quarter.

Capital

"We have rebuilt capital significantly this year," said Atkins, "with most of our capital ratios now higher -- in some cases substantially so -- than they were just before the Wachovia merger a year ago."

                                                           Sept. 30,        Sept. 30,
(as a percent of total risk-weighted assets)               2009 (1 )        2008 (2 )
Tier 1 common equity                                       5.2          %   6.4
Tier 1 capital                                             10.6             8.6
Tier 1 leverage                                            9.0              7.5
Total capital                                              14.7             11.5
(1) September 30, 2009, ratios are preliminary
(2) Wells Fargo only, excludes Wachovia

Stockholders' equity now stands at $122 billion, up $50 billion from a year ago (excluding the U.S. Treasury's $25 billion Capital Purchase Program investment), up $23 billion from post-merger closing year-end equity and up $8 billion just in the third quarter of this year alone. "In the past year, we have more than doubled stockholders' equity while significantly reducing risk and increasing internal capital momentum," said Atkins. Tier 1 common equity grew from second quarter 2009 entirely from internally generated sources -- record retained earnings, realization of deferred tax assets and stock issued to the Company's benefit plans. Through September 30, 2009, the Company generated $20 billion, including the $8.6 billion equity raise in the second quarter, toward the $13.7 billion regulatory capital buffer under SCAP, exceeding the requirement by $6 billion. "A major contributor to our strong results compared with the regulatory SCAP requirement has been our consistent outperformance on pre-tax pre-provision profit year to date, which confirmed the confidence we've had from the beginning of this process in the underlying revenue strength of our company and the consistency of our revenue generation even in adverse scenarios," said Atkins. See footnote (4) on page 20 and the table on page 38 for more information.

In January, the Company will adopt FAS 166/167, which will result in the consolidation of certain off-balance sheet assets not currently included in its financial statements. The Company's current estimate is that FAS 166/167 is expected to add approximately $28 billion in risk-weighted assets. This latest analysis is lower than originally projected primarily due to a reduction in the amount of securitized residential mortgages expected to be consolidated. In addition, the Company continues to explore the sale of certain interests held in securitized residential mortgage loans, which would be expected to reduce further the amount of incremental GAAP assets and incremental risk-weighted assets.

Credit Quality

"While the challenging credit cycle continues and losses remain elevated, we have begun to see early indications of consumer credit stability," said Chief Credit and Risk Officer Mike Loughlin. "In the third quarter, this stabilization was evident in several consumer loan portfolios, while the consumer real estate portfolio continued to vary across geography. Some real estate markets, such as California, have had increased home sales and home price stabilization and, as these conditions improve in more markets, we expect to see improvement in credit results. Third quarter commercial and commercial real estate losses remained at manageable levels, reflecting the high-quality of Wells Fargo's commercial loan portfolio and the fact that Wachovia's commercial and commercial real estate loan portfolios were already written down at the end of last year.

"Nonperforming assets and credit losses increased during the quarter, and once again we increased reserve levels to provide for the additional risk. We expect credit losses and nonperforming assets to continue to increase in the near term, but at a slower rate as we have seen the pace of deterioration slow. Based on our current economic outlook, we expect losses to peak in 2010, with consumer losses expected to peak in the first half of 2010 and commercial and commercial real estate losses expected to peak in the second half of 2010. The recovery may take some time to gain momentum and changes in the economic outlook could affect this time horizon."

Credit Losses

Third quarter net charge-offs were $5.1 billion, or 2.50 percent of average loans, compared with second quarter net charge-offs of $4.4 billion, or 2.11 percent of average loans. While losses were up in the quarter, the increase in terms of both dollars and percentages moderated from prior quarter growth. The overall quarterly loss rate in the third quarter, 2.50 percent, is substantially lower than reported large peer loss rates partly because Wells Fargo had already written down Wachovia's higher-risk loan portfolios at year end. Reflecting, in part, stabilizing credit performance, legacy Wells Fargo net charge-offs were $3.4 billion, or 3.37 percent of average loans. Wachovia's net charge-offs increased to $1.7 billion, or 1.66 percent of average loans, compared with $984 million in second quarter 2009, due to some deterioration in its portfolios and the lagging effect of purchase accounting.

Total credit losses of $5.1 billion included $1.5 billion of commercial and commercial real estate loans (1.78 percent of average loans) and $3.6 billion in consumer loans (3.13 percent of average loans), as shown in the following table.

Net Loan Charge-Offs (1)        Quarter ended
                                September 30, 2009            June 30, 2009                 March 31, 2009
                                            As a                          As a                          As a
                                            % of                          % of                          % of
                                Net loan    average           Net loan    average           Net loan    average
                                charge-     loans             charge-     loans             charge-     loans
($ in millions)                 offs        (annualized)      offs        (annualized)      offs        (annualized)
Commercial and
       commercial real estate:
       Legacy Wells Fargo       $    862    1.96          %   $    897    2.01          %   $    667    1.48          %
       Wachovia                      602    1.57                   246    0.61                   30     0.07
Total commercial and
       commercial real estate        1,464  1.78                   1,143  1.35                   697    0.80
Consumer:
       Legacy Wells Fargo            2,480  4.50                   2,462  4.44                   2,175  3.90
       Wachovia                      1,107  1.87                   735    1.22                   341    0.56
Total consumer                       3,587  3.13                   3,197  2.77                   2,516  2.16
Foreign
       Legacy Wells Fargo            43     3.00                   43     3.05                   45     3.13
       Wachovia                      17     0.28                   3      0.05                   -      -
Total foreign                        60     0.79                   46     0.61                   45     0.56
Total Legacy Wells Fargo             3,385  3.37                   3,402  3.35                   2,887  2.82
Total Wachovia                       1,726  1.66                   984    0.92                   371    0.34
       Total                    $    5,111  2.50          %   $    4,386  2.11          %   $    3,258  1.54          %
(1)See explanation on page 40 of the accounting for purchased
credit-impaired (PCI) loans from Wachovia and the impact on selected
financial ratios.

"Commercial and commercial real estate charge-offs remained manageable in the third quarter," said Loughlin. "In fact, legacy Wells Fargo's commercial and commercial real estate losses declined $35 million, or 4 percent, in the quarter. The increase in commercial and commercial real estate losses was entirely in the Wachovia non-impaired portfolio, in part reflecting the fact that charge-offs are just now coming through Wachovia's portfolio after having eliminated nonaccruals through purchase accounting at the end of last year. The overall loss rate in third quarter for Wachovia's commercial and commercial real estate portfolio was roughly comparable to Wells Fargo's higher-quality commercial portfolio. While the industry is likely to experience elevated commercial and commercial real estate losses, we continue to believe we have one of the best commercial and commercial real estate loan portfolios among large bank peers given our long-standing underwriting discipline and because we wrote down Wachovia's commercial and commercial real estate portfolio when we closed the acquisition at year end."

Consumer losses were up 12 percent in the third quarter, with virtually all of the increase in Wachovia's consumer portfolios. Over 40 percent of the increase in Wachovia consumer loan losses came from the non-impaired Pick-a-Pay portfolio, in large part reflecting the lagging effect of purchase accounting. "We are currently expecting lower life-of-loan losses on the non-impaired Pick-a-Pay portfolio than originally assumed at the time of the merger," said Loughlin. Overall losses on legacy Wells Fargo's consumer portfolio were essentially flat linked quarter. "Given the actions we've previously taken to reduce higher-risk portfolios, given the life-of-loan loss write-downs we have taken through purchase accounting and given the substantially smaller exposure to credit cards and sub-prime loans, we are expecting consumer losses to potentially peak in the first half of 2010 and gradually decline as the year progresses.

"We remain comfortable with our original loss estimates for the impaired portfolio from Wachovia, and currently expect life-of-loan losses on the purchased credit-impaired (PCI) Pick-a-Pay portfolio to be lower than original estimates. Also, while increasing this year, losses in the non-impaired Pick-a-Pay portion of the Wachovia portfolio are tracking below our original estimates at the time we acquired Wachovia. We continue to expect the non-impaired portfolios to perform significantly better than the impaired portfolios that have already been written down through purchase accounting, and the Pick-a-Pay portfolio to perform better than other companies' option adjustable-rate mortgage portfolios."

Nonperforming assets

Total nonperforming assets (NPAs) were $23.5 billion (2.93 percent of total loans) at September 30, 2009, and included $20.9 billion of nonaccrual loans and $2.5 billion of foreclosed assets (repossessed real estate and vehicles).

Nonaccrual Loans and Other
Nonperforming Assets
                                                             September 30, 2009     June 30, 2009          March 31, 2009
                                                                          As a                   As a                   As a
                                                                          % of                   % of                   % of
                                                                          total                  total                  total
($ in millions)                                              Balances     loans     Balances     loans     Balances     loans
Commercial and
      commercial real estate:
      Legacy Wells Fargo                                     $    6,037   3.53   %  $    5,260   3.02   %  $    3,860   2.13   %
      Wachovia                                                    4,227   2.86           2,333   1.46           645     0.39
Total commercial and
      commercial real estate                                      10,264  3.22           7,593   2.28           4,505   1.30
Consumer:
      Legacy Wells Fargo                                          6,293   2.90           5,687   2.59           4,970   2.22
      Wachovia                                                    4,168   1.78           2,292   0.96           966     0.40
Total consumer                                                    10,461  2.32           7,979   1.74           5,936   1.27
Foreign                                                           144     0.48           226     0.75           75      0.24
            Total nonaccrual loans                                20,869  2.61           15,798  1.92           10,516  1.25
Foreclosed assets:
      Legacy Wells Fargo                                          1,756                  1,741                  1,421
      Wachovia                                                    771                    783                    641
Total foreclosed assets                                           2,527                  2,524                  2,062
Real estate and other
      nonaccrual investments                                      55                     20                     34
                    Total nonaccrual loans and
                                  other nonperforming assets $    23,451  2.93   %  $    18,342  2.23   %  $    12,612  1.50   %
Change from prior quarter                                    $    5,109             $    5,730             $    3,603

While commercial and commercial real estate nonaccrual loans were up in the quarter, the dollar amount of the increase declined in the quarter and the rate of growth slowed considerably. Legacy Wells Fargo's commercial and commercial real estate nonaccrual loans increased $777 million. The rate of growth in Wachovia's commercial and commercial real estate nonaccrual loans reflected some deterioration but was in line with management's expectations. Similarly, the growth rate in consumer nonaccrual loans also slowed in the quarter. Legacy Wells Fargo's consumer nonaccrual loans increased $606 million, about 11 percent, reflecting the more moderate deterioration the Company has experienced in consumer loans. Wachovia's Pick-a-Pay portfolio represents the largest portion of consumer nonaccrual loans. While up $1.2 billion in the third quarter, the increase in nonaccrual loans in the non-impaired Pick-a-Pay portfolio reflected the inflows to nonaccruals expected in the first few quarters after purchase accounting write-downs. The Company continued to actively modify non-PCI Pick-a-Pay loans through the use of troubled debt restructurings (TDRs), which temporarily keeps NPA levels elevated until the modified loans can demonstrate performance. To the extent these nonperforming loans return to accrual status, NPA growth should moderate.

The loss exposure expected in the nonperforming assets is significantly mitigated by three factors. First, 96 percent of our nonperforming loans (NPLs) are secured. Second, losses have already been recognized on 36 percent of the total. Residential real estate NPLs greater than 180 days old, or 41 percent of the total NPLs balance, have been written down to net realizable value. Third, there is a segment of NPLs for which there are specific reserves in the allowance, while other NPLs are covered by general reserves. "We believe that the allowance as of September 30, 2009, fully covers loss content embedded in the September 30, 2009 nonaccrual balances," said Loughlin.

Loans 90 Days or More Past Due
and Still Accruing (1)
(Excluding Insured/Guaranteed GNMA and Similar Loans)
Includes Wells Fargo and Wachovia
                                                       Sept. 30,            June 30,
(in millions)                                          2009                 2009
Commercial and commercial real estate:
Commercial                                             $         458        415
Real estate mortgage                                             693        702
Real estate construction                                         930        860
Total commercial and commercial real estate                      2,081      1,977
Consumer:
Real estate 1-4 family first mortgage                            1,552      1,497
Real estate 1-4 family junior lien mortgage                      484        660
Credit card                                                      683        680
Other revolving credit and installment                           1,138      1,160
Total consumer                                                   3,857      3,997
Foreign                                                          76         32
Total loans                                            $         6,014      6,006
(1) The table above does not include PCI loans that were
contractually 90 days past due and still accruing. These loans
have a related nonaccretable difference that will absorb future
losses; therefore charge-offs on these loans are not expected to
reduce income in future periods to the extent that actual future
loan performance is consistent with original estimates.

Loans 90 days or more past due and still accruing totaled $18.9 billion at September 30, 2009, and $16.7 billion at June 30, 2009. For the same periods, the totals included $12.9 billion and $10.7 billion, respectively, in advances pursuant to the Company's servicing agreement to Government National Mortgage Association (GNMA) mortgage pools and similar loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

Allowance for Credit Losses

(Includes Wells Fargo and, beginning December 31, 2008, Wachovia)

The allowance for credit losses, including the reserve for unfunded commitments, totaled $24.5 billion at September 30, 2009, compared with $23.5 billion at June 30, 2009. The credit reserve is driven by management's estimate of inherent losses in the loan portfolio at September 30, 2009. Of the $1.0 billion reserve increase in the third quarter, approximately $900 million reflected continued deterioration in the commercial portfolios. "We continued to see a decline in the quality of our performing commercial and commercial real estate portfolio as well as an increase in the amount of life-of-loan reserves taken on large commercial loans where we believe it is probable that we will not collect all amounts due," said Loughlin.

The remaining $100 million increase in the reserve relates mostly to the consumer loan portfolio and is principally due to the increasing level of residential real estate loan modifications classified as TDRs. The increased modifications this quarter resulted in an increase in the allowance of approximately $400 million compared with approximately $265 million last quarter. This increase was offset by approximately $345 million release in reserves related to performing consumer loans. "Based on our expectation that consumer related losses will peak in the first half of 2010 and then begin to gradually decline, the allowance required for performing consumer loans has decreased when compared to the allowance at the end of the second quarter 2009," said Loughlin.

The allowance coverage to total loans increased to 3.07 percent compared with 2.86 percent at June 30, 2009. The allowance coverage to NPLs was 118 percent as of September 30, 2009. "We believe the allowance was adequate for losses inherent in the loan portfolio at September 30, 2009, including both performing and nonperforming loans," said Loughlin.

Credit Summary

"We are two years into the most difficult credit cycle in recent memory," said Loughlin. "Economic challenges continue and we expect that credit costs will remain elevated in the fourth quarter. However, based on portfolio trends and our current economic outlook, and assuming no unexpected further deterioration in the economy, we believe consumer loan losses will peak in the first half of 2010 then gradually decline, while commercial and commercial real estate loan losses will peak in the second half of 2010 and then gradually decline. We expect nonperforming assets to continue to increase in the near term, but at a slower pace as credit deterioration slows. NPAs are expected to remain elevated through 2010. We are working closely with customers who are having difficulties to understand their challenges, identify possible solutions and minimize loss. We believe our experienced and stable management team is well equipped to navigate through the end of this cycle."

For additional detail on credit quality and trends, please refer to the quarterly supplement.

Business Segment Performance

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

                                  Quarter ended
                                  Sept. 30,   June 30,
(in millions)                          2009   2009
Community Banking                 $    2,667  2,008
Wholesale Banking                      598    1,067
Wealth, Brokerage and Retirement       244    363

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

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

Selected Financial Information
                             Quarter ended
                             Sept. 30,    June 30,
(in millions)                     2009    2009
Total revenue                $    15,143  14,807
Provision for credit losses       4,572   4,264
Noninterest expense               6,802   7,665
Segment net income                2,667   2,008
(in billions)
Average loans                     534.7   540.7
Average assets                    785.2   799.2
Average core deposits             530.3   543.9

Community Banking reported net income of $2.7 billion, up $659 million, or 131 percent (annualized), from second quarter. Revenue increased $336 million, or 9 percent (annualized), driven by strong regional banking and mortgage fee income partially offset by a decrease in net interest margin. Noninterest income increased $420 million, or 28 percent (annualized), from prior quarter driven by continued strength in mortgage banking and strong growth in deposit service charges and card fees. Noninterest expense decreased $863 million, or 45 percent (annualized), driven by higher second quarter FDIC deposit insurance assessments as well as expense reductions due to Wachovia merger-related cost saves. The provision for credit losses increased $308 million, and included a $236 million credit reserve build compared with a $479 million credit reserve build in the prior quarter.

Regional Banking Highlights for Legacy Wells Fargo

-- Record core product solutions (sales) of 6.84 million, up 10 percent from prior year on a comparable basis

-- Core sales per platform banker FTE (active, full-time equivalent) of 5.88 per day, up from 5.65 in prior year on a comparable basis

-- Record retail bank household cross-sell of Wells Fargo products of 5.90 products per household; 25 percent of retail bank households had 8 or more products, the Company's long-term goal

-- Sales of Wells Fargo Packages(R) (a checking account and at least three other products) up 14 percent from prior year, purchased by 78 percent of new checking account customers

-- Customer loyalty scores up 3 percent, and welcoming and wait time scores improved 7 percent from prior year (based on customers conducting transactions with tellers)

-- Business Banking -- Store-based business solutions up 11 percent from prior year

-- Business Banking household cross-sell of 3.72 products per household

-- Sales of Wells Fargo Business Services Packages (business checking account and at least three other business products) up 18 percent from prior year, purchased by 55 percent of new business checking account customers

Regional Banking Highlights for Wachovia

-- Retail bank household cross-sell of Wachovia products of 4.65 products per household

-- Wachovia maintained its very high customer experience levels; scores continued to surpass prior year

Combined Regional Banking

-- Consumer checking accounts up a net 5.2 percent from prior year

-- Business checking accounts up a net 4.1 percent from prior year

-- Opened 15 banking stores for retail network total of 6,653 stores

-- 12,352 ATMs across our network, including 3,260 Envelope-Free(SM) webATM machines

-- America's #1 small business lender for 7th consecutive year (in loans under $100,000), according to 2008 Community Reinvestment Act (CRA) data

Online Banking

-- 16.2 million combined active online customers

-- 3.9 million combined active Bill Pay customers

-- Global Finance Magazine ranked Wells Fargo the Best Consumer Internet Bank in the U.S. (July 2009)

-- Wells Fargo launched customer-to-customer mobile banking money transfers, a simple and secure way to send funds to family and friends

Wells Fargo Home Mortgage (Home Mortgage)

-- Home Mortgage applications of $123 billion, compared with $194 billion in prior quarter

-- Home Mortgage application pipeline of $62 billion at quarter end, compared with $90 billion at June 30, 2009

-- Home Mortgage originations of $96 billion, down from $129 billion in prior quarter

-- Owned residential mortgage servicing portfolio of $1.7 trillion

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

Selected Financial Information
                             Quarter ended
                             Sept. 30,   June 30,
(in millions)                     2009   2009
Total revenue                $    4,916  5,238
Provision for credit losses       1,361  738
Noninterest expense               2,630  2,807
Segment net income                598    1,067
(in billions)
Average loans                     247.0  263.5
Average assets                    369.3  381.7
Average core deposits             146.9  138.1

Wholesale Banking reported net income of $598 million compared with $1.07 billion in second quarter 2009. Revenue decreased $322 million, primarily due to strength in investment banking and capital markets revenue in the prior quarter, as well as insurance revenue seasonality. Average core deposits were $147 billion up 25 percent (annualized) from the prior quarter. Noninterest expense decreased $177 million, primarily due to lower FDIC deposit insurance assessments. The provision for credit losses was $1.36 billion, an increase of $623 million from the prior quarter, and included $627 million of additional provision recorded to build reserves for the wholesale portfolio, compared with a credit reserve build of $162 million in the prior quarter.

-- Government and Institutional Banking core deposits up 3 percent and noninterest income up 9 percent, driven by creation of integrated national platform of Wachovia and Wells Fargo capabilities, continued support of client credit needs and expansion in Public Finance

-- Total core deposits up 13 percent and noninterest income up 2 percent in Global Financial Institutions and Trade Services, as international bank liquidity continued to improve and trade and payment volumes increased

-- For 7th time in 8 years, Wells Fargo Shareowner Services(SM) received the TALON award as transfer agent ranked highest in Overall Satisfaction

-- Treasury Management introduced enhanced version of CEO Workstation(R), an easy-to-use online cash management tool

-- Merger of Wachovia wholesale businesses on track to meet or exceed expected cost saves and is producing significant new growth opportunities from acquired businesses such as Government and Institutional Banking, Global Finance and Institutional Trade, and Investment Banking and Capital Markets

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

Selected Financial Information
                             Quarter ended
                             Sept. 30,   June 30,
(in millions)                     2009   2009
Total revenue                $    2,966  2,986
Provision for credit losses       234    115
Noninterest expense               2,314  2,289
Segment net income                244    363
(in billions)
Average loans                     45.4   45.9
Average assets                    108.6  110.2
Average core deposits             116.4  113.5

Wealth, Brokerage and Retirement reported net income of $244 million, compared with $363 million in the prior quarter. Revenue was $3.0 billion consistent with the prior quarter's levels as the strong equity market recovery led to increases in client assets across the brokerage, wealth and retirement businesses, driving solid revenue growth, partially offset by lower realized gains on sales of securities available for sale in the brokerage business. Total provision for credit losses increased $119 million from the prior quarter, largely reflecting a credit reserve build of $137 million in third quarter due to higher loss rates. Average core deposits increased $2.9 billion, or 10 percent (annualized), from second quarter, reflecting continued success in attracting client assets, including deposits.

Retail Brokerage

-- Client assets increased 8 percent to $1.1 trillion from prior quarter

-- Managed account assets increased $23 billion, or 14 percent, from prior quarter, including net inflows of $8 billion

-- Brokerage transactional revenue increased 2 percent from prior quarter

Wealth Management

-- Continued strong deposit growth, with average balances up 8 percent from prior quarter

-- Trust assets of $119 billion, up 7 percent from prior quarter

Retirement

-- Retirement plan assets of $271 billion increased $22 billion, or 9 percent, from prior quarter

-- IRA assets of $231 billion increased $20 billion, or 9 percent, from prior quarter

-- Integrated sales approach, firm stability and scale in the business, drove key new business wins in institutional retirement

Recorded Message

A recorded message reviewing Wells Fargo's results is available at 5:30 a.m. Pacific Time through October 24, 2009. Dial 866-416-0522 (domestic) or 706-902-3479 (international). No password is required. The call is also 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," "should," "may," "can," "will," "outlook," "project" or similar expressions. Forward-looking statements in this news release include, among others, statements about: (i) future credit quality, the adequacy of the allowance for loan losses, the level of nonperforming assets and nonaccrual loans, expected or estimated future losses in our loan portfolios and life-of-loan loss estimates, including that we currently expect that credit losses will peak in 2010, absent further deterioration in the economy, with consumer loan losses expected to peak in the first half of 2010 and commercial and commercial real estate loan losses expected to peak later in 2010, and that the pick-a-pay portfolios, both purchased credit-impaired and non-impaired, will perform better than management's expectations at the time of the Wachovia merger; (ii) reduction or mitigation of risk in our loan portfolios and the effects of loan modification programs; (iii) the amount and timing of expected integration activities, expenses and cost savings relating to the Wachovia merger, as well as the expected synergies and benefits of the merger, including that we currently estimate merger expenses of approximately $5.5 billion and that we currently are on track to achieve $5.0 billion annual run rate cost savings by the expected completion of the integration in 2011; (iv) the status of our capital requirements under the Supervisory Capital Assessment Program; and (v) our preliminary estimates to add assets to our consolidated financial statements upon the implementation of FAS 166 and FAS 167.

Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. Several factors could cause actual results to differ materially from expectations including: current and future economic and market conditions, including the effects of further declines in housing prices and high unemployment rates; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; the terms of capital investments or other financial assistance provided by the U.S. government; legislative proposals to allow mortgage cram-downs in bankruptcy or force other loan modifications; the extent of success in our loan modification efforts; our ability to successfully and timely integrate the Wachovia merger and realize the expected cost savings and other benefits, including delays or disruptions in system conversions and higher severance costs; our ability to realize efficiency initiatives to lower expenses when and in the amount expected; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect of changes in interest rates on our net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; hedging gains or losses; disruptions in the capital markets and reduced investor demand for mortgage loans; our ability to sell more products to our customers; the effect of the economic recession on the demand for our products and services; the effect of fluctuations in stock market prices on fee income from our brokerage, asset and wealth management businesses; our election to provide support to our mutual funds for structured credit products they may hold; changes in the value of our venture capital investments; changes in our accounting policies or in accounting standards or in how accounting standards are to be applied, including the implementation of FAS 166 and FAS 167 and its effects on the consolidation of additional assets on our balance sheet; mergers and acquisitions; federal and state regulations; reputational damage from negative publicity, fines, penalties and other negative consequences from regulatory violations, the loss of checking and saving account deposits to other investments such as the stock market, and fiscal and monetary policies of the Federal Reserve Board. There is no assurance that our allowance for credit losses will be adequate to cover future credit losses, especially if credit markets, housing prices, and unemployment do not stabilize or improve. Increases in loan charge-offs or in the allowance for credit losses and related provision expense could materially adversely affect our financial results and condition. There is no assurance that we will meet the SCAP capital requirement on the November 9, 2009, deadline established by the Federal Reserve Board. Although we exceeded the requirement at September 30, 2009, our common equity capital could fall between now and the deadline, causing us not to meet the requirement. Failure to meet the requirement could result in the issuance of equity securities or the conversion of preferred securities into common stock, resulting in substantial dilution to existing stockholders. There is no assurance as to when or how we will repay the government's investment or that we will be able to repay the investment in a manner that does not require the issuance of equity securities resulting in substantial dilution to existing stockholders. For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including our Quarterly Reports on Form 10-Q for the periods ended March 31, 2009, and June 30, 2009, and our Annual Report on Form 10-K for the year ended December 31, 2008, including the discussions under "Risk Factors" in each of those reports, as filed with the SEC and available on the SEC's website at www.sec.gov. Any factor described above or in our SEC reports could, by itself or together with one or more other factors, adversely affect our financial results and condition.

About Wells Fargo

Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores, over 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA (1) (2)
                                                                                      Quarter ended Sept. 30,      Nine months ended Sept. 30,
($ in millions, except per share amounts)                                                    2009         2008     2009       2008
For the Period
Wells Fargo net income                                                                $      3,235        1,637    9,452      5,389
Wells Fargo net income applicable to common stock                                            2,637        1,637    7,596      5,389
Diluted earnings per common share                                                            0.56         0.49     1.69       1.62
Profitability ratios (annualized):
                 Wells Fargo net income to average assets (ROA)                              1.03      %  1.06     1.00       1.21
                 Net income to average assets                                                1.06         1.07     1.02       1.22
                 Wells Fargo net income applicable to common stock to average Wells          12.04        13.63    13.29      15.02
                 Fargo common stockholders' equity (ROE)
                 Net income to average total equity                                          10.57        13.66    11.32      15.06
Efficiency ratio (3)                                                                         52.0         53.0     54.9       51.8
Total revenue                                                                         $      22,466       10,377   65,990     32,400
Pre-tax pre-provision profit (PTPP) (4)                                                      10,782       4,876    29,791     15,612
Dividends declared per common share                                                          0.05         0.34     0.44       0.96
Average common shares outstanding                                                            4,678.3      3,316.4  4,471.2    3,309.6
Diluted average common shares outstanding                                                    4,706.4      3,331.0  4,485.3    3,323.4
Average loans                                                                         $      810,191      404,203  833,076    393,262
Average assets                                                                               1,246,051    614,194  1,270,071  594,717
Average core deposits (5)                                                                    759,319      320,074  759,668    318,582
Average retail core deposits (6)                                                             584,414      234,140  590,499    230,935
Net interest margin                                                                          4.36      %  4.79     4.27       4.80
At Period End
Securities available for sale                                                         $      183,814      86,882   183,814    86,882
Loans                                                                                        799,952      411,049  799,952    411,049
Allowance for loan losses                                                                    24,028       7,865    24,028     7,865
Goodwill                                                                                     24,052       13,520   24,052     13,520
Assets                                                                                       1,228,625    622,361  1,228,625  622,361
Core deposits (5)                                                                            747,913      334,076  747,913    334,076
Wells Fargo stockholders' equity                                                             122,150      46,957   122,150    46,957
Total equity                                                                                 128,924      47,259   128,924    47,259
Capital ratios:
                 Wells Fargo common stockholders' equity to assets                           7.41      %  7.54     7.41       7.54
                 Total equity to assets                                                      10.49        7.59     10.49      7.59
                 Average Wells Fargo common stockholders' equity to average assets           6.98         7.78     6.02       8.06
                 Average total equity to average assets                                      9.99         7.83     8.98       8.11
                 Risk-based capital (7)
                                                   Tier 1 capital                            10.63        8.59     10.63      8.59
                                                   Total capital                             14.66        11.51    14.66      11.51
                 Tier 1 leverage (7)                                                         9.03         7.54     9.03       7.54
Book value per common share                                                           $      19.46        14.14    19.46      14.14
Team members (active, full-time equivalent)                                                  265,100      159,000  265,100    159,000
Common stock price:
                 High                                                                 $      29.56        44.68    30.47      44.68
                 Low                                                                         22.08        20.46    7.80       20.46
                 Period end                                                                  28.18        37.53    28.18      37.53
(1)              Wells Fargo & Company (Wells Fargo) acquired Wachovia Corporation
                 (Wachovia) on December 31, 2008. Because the acquisition was
                 completed on December 31, 2008, Wachovia's results are included in
                 the income statement, average balances and related metrics beginning
                 in 2009. Wachovia's assets and liabilities are included in the
                 consolidated balance sheet beginning on December 31, 2008.
(2)              On January 1, 2009, we adopted new accounting guidance on
                 noncontrolling interests contained in FASB ASC 810-10, Consolidation
                 (Statement of Financial Accounting Standards (FAS) No. 160, Noncontrolling
                 Interests in Consolidated Financial Statements - an amendment of ARB
                 No. 51), on a retrospective basis for disclosure and,
                 accordingly, prior period information reflects the adoption. The
                 guidance requires that noncontrolling interests be reported as a
                 component of total equity.
(3)              The efficiency ratio is noninterest expense divided by total revenue
                 (net interest income and noninterest income).
(4)              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.
(5)              Core deposits are noninterest-bearing deposits, interest-bearing
                 checking, savings certificates, market rate and other savings, and
                 certain foreign deposits (Eurodollar sweep balances).
(6)              Retail core deposits are total core deposits excluding Wholesale
                 Banking core deposits and retail mortgage escrow deposits.
(7)              The September 30, 2009, ratios are preliminary.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA (1) (2)
                                                                                      Quarter ended
                                                                                      Sept. 30,         June 30,   Mar. 31,   Dec. 31,     Sept. 30,
($ in millions, except per share amounts)                                                   2009        2009       2009       2008         2008
For the Quarter
Wells Fargo net income (loss)                                                         $     3,235       3,172      3,045      (2,734    )  1,637
Wells Fargo net income (loss) applicable to common stock                                    2,637       2,575      2,384      (3,020    )  1,637
Diluted earnings (loss) per common share                                                    0.56        0.57       0.56       (0.84     )  0.49
Profitability ratios (annualized):
                   Wells Fargo net income (loss) to average assets (ROA)                    1.03      % 1.00       0.96       (1.72     )  1.06
                   Net income (loss) to average assets                                      1.06        1.02       0.97       (1.72     )  1.07
                   Wells Fargo net income (loss) applicable to common stock to              12.04       13.70      14.49      (22.32    )  13.63
                   average Wells Fargo common stockholders' equity (ROE)
                   Net income (loss) to average total equity                                10.57       11.56      11.97      (15.53    )  13.66
Efficiency ratio (3)                                                                        52.0        56.4       56.2       61.3         53.0
Total revenue                                                                         $     22,466      22,507     21,017     9,477        10,377
Pre-tax pre-provision profit (PTPP) (4)                                                     10,782      9,810      9,199      3,667        4,876
Dividends declared per common share                                                         0.05        0.05       0.34       0.34         0.34
Average common shares outstanding                                                           4,678.3     4,483.1    4,247.4    3,582.4      3,316.4
Diluted average common shares outstanding                                                   4,706.4     4,501.6    4,249.3    3,593.6      3,331.0
Average loans                                                                         $     810,191     833,945    855,591    413,940      404,203
Average assets                                                                              1,246,051   1,274,926  1,289,716  633,223      614,194
Average core deposits (5)                                                                   759,319     765,697    753,928    344,957      320,074
Average retail core deposits (6)                                                            584,414     596,648    590,502    243,464      234,140
Net interest margin                                                                         4.36      % 4.30       4.16       4.90         4.79
At Quarter End
Securities available for sale                                                         $     183,814     206,795    178,468    151,569      86,882
Loans                                                                                       799,952     821,614    843,579    864,830      411,049
Allowance for loan losses                                                                   24,028      23,035     22,281     21,013       7,865
Goodwill                                                                                    24,052      24,619     23,825     22,627       13,520
Assets                                                                                      1,228,625   1,284,176  1,285,891  1,309,639    622,361
Core deposits (5)                                                                           747,913     761,122    756,183    745,432      334,076
Wells Fargo stockholders' equity                                                            122,150     114,623    100,295    99,084       46,957
Total equity                                                                                128,924     121,382    107,057    102,316      47,259
Capital ratios:
                   Wells Fargo common stockholders' equity to assets                        7.41      % 6.51       5.40       5.21         7.54
                   Total equity to assets                                                   10.49       9.45       8.33       7.81         7.59
                   Average Wells Fargo common stockholders' equity to average assets        6.98        5.92       5.17       8.50         7.78
                   Average total equity to average assets                                   9.99        8.85       8.11       11.09        7.83
                   Risk-based capital (7)
                                                    Tier 1 capital                          10.63       9.80       8.30       7.84         8.59
                                                    Total capital                           14.66       13.84      12.30      11.83        11.51
                   Tier 1 leverage (7)                                                      9.03        8.32       7.09       14.52        7.54
Book value per common share                                                           $     19.46       17.91      16.28      16.15        14.14
Team members (active, full-time equivalent)                                                 265,100     269,900    272,800    270,800      159,000
Common stock price:
                   High                                                               $     29.56       28.45      30.47      38.95        44.68
                   Low                                                                      22.08       13.65      7.80       19.89        20.46
                   Period end                                                               28.18       24.26      14.24      29.48        37.53
(1)                Wells Fargo & Company (Wells Fargo) acquired Wachovia Corporation
                   (Wachovia) on December 31, 2008. Because the acquisition was
                   completed on December 31, 2008, Wachovia's results are included in
                   the income statement, average balances and related metrics beginning
                   in 2009. Wachovia's assets and liabilities are included in the
                   consolidated balance sheet beginning on December 31, 2008.
(2)                On January 1, 2009, we adopted new accounting guidance on
                   noncontrolling interests contained in FASB ASC 810-10, Consolidation
                   (Statement of Financial Accounting Standards (FAS) No. 160, Noncontrolling
                   Interests in Consolidated Financial Statements - an amendment of ARB
                   No. 51), on a retrospective basis for disclosure and,
                   accordingly, prior period information reflects the adoption. The
                   guidance requires that noncontrolling interests be reported as a
                   component of total equity.
(3)                The efficiency ratio is noninterest expense divided by total revenue
                   (net interest income and noninterest income).
(4)                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.
(5)                Core deposits are noninterest-bearing deposits, interest-bearing
                   checking, savings certificates, market rate and other savings, and
                   certain foreign deposits (Eurodollar sweep balances).
(6)                Retail core deposits are total core deposits excluding Wholesale
                   Banking core deposits and retail mortgage escrow deposits.
(7)                The September 30, 2009, ratios are preliminary. Because the Wachovia
                   acquisition was completed on December 31, 2008, the Tier 1 leverage
                   ratio at December 31, 2008, which considers period-end Tier 1
                   capital and quarterly average assets in the computation of the
                   ratio, does not reflect average assets of Wachovia for 2008.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
                                                                    Quarter ended Sept. 30,       Nine months ended Sept. 30,
(in millions, except per share amounts)                             2009             2008         2009       2008
Interest income
Trading assets                                                      $   216          41           688        126
Securities available for sale                                           2,947        1,397        8,543      3,753
Mortgages held for sale                                                 524          394          1,484      1,211
Loans held for sale                                                     34           12           151        34
Loans                                                                   10,170       6,888        31,467     20,906
Other interest income                                                   77           42           249        140
                       Total interest income                            13,968       8,774        42,582     26,170
Interest expense
Deposits                                                                905          1,019        2,861      3,676
Short-term borrowings                                                   32           492          210        1,274
Long-term debt                                                          1,301        882          4,565      2,801
Other interest expense                                                  46           -            122        -
                       Total interest expense                           2,284        2,393        7,758      7,751
Net interest income                                                     11,684       6,381        34,824     18,419
Provision for credit losses                                             6,111        2,495        15,755     7,535
Net interest income after provision for credit losses                   5,573        3,886        19,069     10,884
Noninterest income
Service charges on deposit accounts                                     1,478        839          4,320      2,387
Trust and investment fees                                               2,502        738          7,130      2,263
Card fees                                                               946          601          2,722      1,747
Other fees                                                              950          552          2,814      1,562
Mortgage banking                                                        3,067        892          8,617      2,720
Insurance                                                               468          439          1,644      1,493
Net gains (losses) on debt securities available for sale (includes      (40     )    84           (237    )  316
impairment losses of $273 and $850, consisting of $314 and $1,889
of total other-than-temporary impairment losses, net of $41 and
$1,039 recognized in other comprehensive income, for the quarter
and nine months ended September 30, 2009, respectively)
Net gains (losses) from equity investments                              29           (509    )    (88     )  (149    )
Other                                                                   1,382        360          4,244      1,642
                       Total noninterest income                         10,782       3,996        31,166     13,981
Noninterest expense
Salaries                                                                3,428        2,078        10,252     6,092
Commission and incentive compensation                                   2,051        555          5,935      2,005
Employee benefits                                                       1,034        486          3,545      1,666
Equipment                                                               563          302          1,825      955
Net occupancy                                                           778          402          2,357      1,201
Core deposit and other intangibles                                      642          47           1,935      139
FDIC and other deposit assessments                                      228          37           1,547      63
Other                                                                   2,960        1,594        8,803      4,667
                       Total noninterest expense                        11,684       5,501        36,199     16,788
Income before income tax expense                                        4,671        2,381        14,036     8,077
Income tax expense                                                      1,355        730          4,382      2,638
Net income before noncontrolling interests                              3,316        1,651        9,654      5,439
Less: Net income from noncontrolling interests                          81           14           202        50
Wells Fargo net income                                              $   3,235        1,637        9,452      5,389
Wells Fargo net income applicable to common stock                   $   2,637        1,637        7,596      5,389
Per share information
Earnings per common share                                           $   0.56         0.49         1.70       1.63
Diluted earnings per common share                                       0.56         0.49         1.69       1.62
Dividends declared per common share                                     0.05         0.34         0.44       0.96
Average common shares outstanding                                       4,678.3      3,316.4      4,471.2    3,309.6
Diluted average common shares outstanding                               4,706.4      3,331.0      4,485.3    3,323.4

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
                                                          Quarter ended
                                                          Sept. 30,        June 30,      Mar. 31,      Dec. 31,      Sept. 30,
(in millions, except per share amounts)                   2009             2009          2009          2008          2008
Interest income
Trading assets                                            $   216          206           266           51            41
Securities available for sale                                 2,947        2,887         2,709         1,534         1,397
Mortgages held for sale                                       524          545           415           362           394
Loans held for sale                                           34           50            67            14            12
Loans                                                         10,170       10,532        10,765        6,726         6,888
Other interest income                                         77           81            91            41            42
                   Total interest income                      13,968       14,301        14,313        8,728         8,774
Interest expense
Deposits                                                      905          957           999           845           1,019
Short-term borrowings                                         32           55            123           204           492
Long-term debt                                                1,301        1,485         1,779         955           882
Other interest expense                                        46           40            36            -             -
                   Total interest expense                     2,284        2,537         2,937         2,004         2,393
Net interest income                                           11,684       11,764        11,376        6,724         6,381
Provision for credit losses                                   6,111        5,086         4,558         8,444         2,495
Net interest income after provision for credit losses         5,573        6,678         6,818         (1,720  )     3,886
Noninterest income
Service charges on deposit accounts                           1,478        1,448         1,394         803           839
Trust and investment fees                                     2,502        2,413         2,215         661           738
Card fees                                                     946          923           853           589           601
Other fees                                                    950          963           901           535           552
Mortgage banking                                              3,067        3,046         2,504         (195    )     892
Insurance                                                     468          595           581           337           439
Net gains (losses) on debt securities available for sale      (40     )    (78     )     (119    )     721           84
Net gains (losses) from equity investments                    29           40            (157    )     (608    )     (509    )
Other                                                         1,382        1,393         1,469         (90     )     360
                   Total noninterest income                   10,782       10,743        9,641         2,753         3,996
Noninterest expense
Salaries                                                      3,428        3,438         3,386         2,168         2,078
Commission and incentive compensation                         2,051        2,060         1,824         671           555
Employee benefits                                             1,034        1,227         1,284         338           486
Equipment                                                     563          575           687           402           302
Net occupancy                                                 778          783           796           418           402
Core deposit and other intangibles                            642          646           647           47            47
FDIC and other deposit assessments                            228          981           338           57            37
Other                                                         2,960        2,987         2,856         1,709         1,594
                   Total noninterest expense                  11,684       12,697        11,818        5,810         5,501
Income (loss) before income tax expense (benefit)             4,671        4,724         4,641         (4,777  )     2,381
Income tax expense (benefit)                                  1,355        1,475         1,552         (2,036  )     730
Net income (loss) before noncontrolling interests             3,316        3,249         3,089         (2,741  )     1,651
Less: Net income (loss) from noncontrolling interests         81           77            44            (7      )     14
Wells Fargo net income (loss)                             $   3,235        3,172         3,045         (2,734  )     1,637
Wells Fargo net income (loss) applicable to common stock  $   2,637        2,575         2,384         (3,020  )     1,637
Per share information
Earnings (loss) per common share                          $   0.56         0.58          0.56          (0.84   )     0.49
Diluted earnings (loss) per common share                      0.56         0.57          0.56          (0.84   )     0.49
Dividends declared per common share                           0.05         0.05          0.34          0.34          0.34
Average common shares outstanding                             4,678.3      4,483.1       4,247.4       3,582.4       3,316.4
Diluted average common shares outstanding                     4,706.4      4,501.6       4,249.3       3,593.6       3,331.0

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
                                                                                  Quarter ended September 30,
                                                                                  2009                                    2008
                                                                                                             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                  $  16,356      0.66    %   $    27      3,463     2.09    %   $    18
and other short-term investments
Trading assets                                                                       20,518      4.29             221     4,838     3.72             46
Debt securities available for sale (3):
         Securities of U.S. Treasury and federal agencies                            2,545       3.79             24      1,141     3.99             11
         Securities of U.S. states and political subdivisions                        12,818      6.28             204     7,211     6.65             124
         Mortgage-backed securities:
                  Federal agencies                                                   94,457      5.34             1,221   50,528    5.83             731
                  Residential and commercial                                         43,214      9.56             1,089   21,358    5.82             346
                           Total mortgage-backed securities                          137,671     6.75             2,310   71,886    5.83             1,077
         Other debt securities (4)                                                   33,294      7.00             568     12,622    7.17             248
                                    Total debt securities available for sale (4)     186,328     6.72             3,106   92,860    6.06             1,460
Mortgages held for sale (5)                                                          40,604      5.16             524     24,990    6.31             394
Loans held for sale (5)                                                              4,975       2.67             34      677       6.95             12
Loans:
         Commercial and commercial real estate:
                  Commercial                                                         175,642     4.34             1,919   100,688   5.92             1,496
                  Real estate mortgage                                               103,450     3.39             883     43,616    5.60             615
                  Real estate construction                                           32,649      3.02             249     19,715    4.82             238
                  Lease financing                                                    14,360      9.14             328     7,250     5.48             100
                           Total commercial and commercial real estate               326,101     4.12             3,379   171,269   5.69             2,449
         Consumer:
                  Real estate 1-4 family first mortgage                              235,051     5.35             3,154   76,197    6.64             1,265
                  Real estate 1-4 family junior lien mortgage                        105,779     4.62             1,229   75,379    6.36             1,206
                  Credit card                                                        23,448      11.65            683     19,948    12.19            609
                  Other revolving credit and installment                             90,199      6.48             1,473   54,104    8.64             1,175
                           Total consumer                                            454,477     5.73             6,539   225,628   7.52             4,255
         Foreign                                                                     29,613      3.61             270     7,306     10.28            188
                                    Total loans (5)                                  810,191     5.00             10,188  404,203   6.79             6,892
Other                                                                                6,088       3.29             49      2,126     4.64             24
                                                Total earning assets              $  1,085,060   5.20    %   $    14,149  533,157   6.57    %   $    8,846
Funding sources
Deposits:
         Interest-bearing checking                                                $  59,467      0.15    %   $    21      5,483     0.87    %   $    12
         Market rate and other savings                                               369,120     0.34             317     166,710   1.18             495
         Savings certificates                                                        129,698     1.35             442     37,192    2.57             240
         Other time deposits                                                         18,248      1.93             89      7,930     2.59             53
         Deposits in foreign offices                                                 56,820      0.25             36      49,054    1.78             219
                           Total interest-bearing deposits                           633,353     0.57             905     266,369   1.52             1,019
Short-term borrowings                                                                39,828      0.35             36      83,458    2.35             492
Long-term debt                                                                       222,580     2.33             1,301   103,745   3.43             892
Other liabilities                                                                    5,620       3.30             46      -         -                -
                           Total interest-bearing liabilities                        901,381     1.01             2,288   453,572   2.11             2,403
Portion of noninterest-bearing funding sources                                       183,679     -                -       79,585    -                -
                                                Total funding sources             $  1,085,060   0.84             2,288   533,157   1.78             2,403
Net interest margin and net interest income on a                                                 4.36    %   $    11,861            4.79    %   $    6,443
taxable-equivalent basis (6)
Noninterest-earning assets
Cash and due from banks                                                           $  18,084                               11,024
Goodwill                                                                             24,435                               13,531
Other                                                                                118,472                              56,482
                                                Total noninterest-earning assets  $  160,991                              81,037
Noninterest-bearing funding sources
Deposits                                                         $  172,588             87,095
Other liabilities                                                   47,646              25,452
Total equity                                                        124,436             48,075
Noninterest-bearing funding sources used to fund earning assets     (183,679  )         (79,585 )
                   Net noninterest-bearing funding sources       $  160,991             81,037
                                 Total assets                    $  1,246,051           614,194
(1)     Our average prime rate was 3.25% and 5.00% for the quarters ended
        September 30, 2009 and 2008, respectively. The average three-month
        London Interbank Offered Rate (LIBOR) was 0.41% and 2.91% for the
        same quarters, respectively.
(2)     Interest rates and amounts include the effects of hedge and risk
        management activities associated with the respective asset and
        liability categories.
(3)     Yields are based on amortized cost balances computed on a settlement
        date basis.
(4)     Includes certain preferred securities.
(5)     Nonaccrual loans and related income are included in their respective
        loan categories.
(6)     Includes taxable-equivalent adjustments primarily related to
        tax-exempt income on certain loans and securities. The federal
        statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
                                                                                       Nine months ended September 30,
                                                                                       2009                                   2008
                                                                                                                 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                       $  20,411      0.73    %  $    111     3,734     2.59    %  $    72
and other short-term investments
Trading assets                                                                            20,389      4.64            709     4,960     3.57            133
Debt securities available for sale (3):
          Securities of U.S. Treasury and federal agencies                                2,514       2.61            48      1,055     3.88            30
          Securities of U.S. states and political subdivisions                            12,409      6.39            623     6,848     6.88            362
          Mortgage-backed securities:
                    Federal agencies                                                      87,916      5.45            3,492   42,448    5.93            1,854
                    Residential and commercial                                            41,070      9.05            3,150   21,589    5.92            1,010
                              Total mortgage-backed securities                            128,986     6.72            6,642   64,037    5.92            2,864
          Other debt securities (4)                                                       31,437      7.01            1,691   12,351    6.78            670
                                         Total debt securities available for sale (4)     175,346     6.69            9,004   84,291    6.11            3,926
Mortgages held for sale (5)                                                               38,315      5.16            1,484   26,417    6.11            1,211
Loans held for sale (5)                                                                   6,693       3.01            151     686       6.66            34
Loans:
          Commercial and commercial real estate:
                    Commercial                                                            186,610     4.10            5,725   95,697    6.29            4,509
                    Real estate mortgage                                                  104,003     3.44            2,677   40,351    5.91            1,788
                    Real estate construction                                              33,660      2.92            734     19,288    5.29            763
                    Lease financing                                                       14,968      9.04            1,015   7,055     5.63            298
                              Total commercial and commercial real estate                 339,241     4.00            10,151  162,391   6.05            7,358
          Consumer:
                    Real estate 1-4 family first mortgage                                 240,409     5.51            9,926   74,064    6.77            3,761
                    Real estate 1-4 family junior lien mortgage                           108,094     4.81            3,894   75,220    6.78            3,820
                    Credit card                                                           23,236      12.16           2,118   19,256    12.11           1,749
                    Other revolving credit and installment                                91,240      6.60            4,502   54,949    8.84            3,637
                              Total consumer                                              462,979     5.90            20,440  223,489   7.74            12,967
          Foreign                                                                         30,856      4.02            929     7,382     10.72           592
                                         Total loans (5)                                  833,076     5.05            31,520  393,262   7.10            20,917
Other                                                                                     6,102       3.02            137     1,995     4.55            68
                                                        Total earning assets           $  1,100,332   5.21    %  $    43,116  515,345   6.81    %  $    26,361
Funding sources
Deposits:
          Interest-bearing checking                                                    $  73,195      0.14    %  $    77      5,399     1.31    %  $    53
          Market rate and other savings                                                   339,081     0.42            1,072   162,792   1.45            1,765
          Savings certificates                                                            150,607     1.14            1,280   38,907    3.23            940
          Other time deposits                                                             21,794      1.97            321     6,163     2.87            133
          Deposits in foreign offices                                                     50,907      0.29            111     49,192    2.13            785
                              Total interest-bearing deposits                             635,584     0.60            2,861   262,453   1.87            3,676
Short-term borrowings                                                                     58,447      0.50            217     67,714    2.51            1,274
Long-term debt                                                                            238,909     2.55            4,568   101,668   3.71            2,825
Other liabilities                                                                         4,675       3.50            122     -         -               -
                              Total interest-bearing liabilities                          937,615     1.11            7,768   431,835   2.40            7,775
Portion of noninterest-bearing funding sources                                            162,717     -               -       83,510    -               -
                                                        Total funding sources          $  1,100,332   0.94            7,768   515,345   2.01            7,775
Net interest margin and net interest income on a                                                      4.27    %  $    35,348            4.80    %  $    18,586
taxable-equivalent basis (6)
Noninterest-earning assets
Cash and due from banks                                                                $  19,218                              11,182
Goodwill                                                                                  23,964                              13,289
Other                                                                                     126,557                             54,901
                       Total noninterest-earning assets         $  169,739             79,372
Noninterest-bearing funding sources
Deposits                                                        $  169,187             86,676
Other liabilities                                                  49,249              27,973
Total equity                                                       114,020             48,233
Noninterest-bearing funding sources used to fund earning assets    (162,717  )         (83,510 )
                       Net noninterest-bearing funding sources  $  169,739             79,372
                                           Total assets         $  1,270,071           594,717
(1)       Our average prime rate was 3.25% and 5.43% for the nine months ended
          September 30, 2009 and 2008, respectively. The average three-month
          London Interbank Offered Rate (LIBOR) was 0.83% and 2.98% for the
          same periods, respectively.
(2)       Interest rates and amounts include the effects of hedge and risk
          management activities associated with the respective asset and
          liability categories.
(3)       Yields are based on amortized cost balances computed on a settlement
          date basis.
(4)       Includes certain preferred securities.
(5)       Nonaccrual loans and related income are included in their respective
          loan categories.
(6)       Includes taxable-equivalent adjustments primarily related to
          tax-exempt income on certain loans and securities. The federal
          statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
                                                                         Quarter ended Sept. 30,    Nine months ended Sept. 30,
(in millions)                                                                2009        2008       2009      2008
Service charges on deposit accounts                                      $   1,478       839        4,320     2,387
Trust and investment fees:
               Trust, investment and IRA fees                                989         549        2,550     1,674
               Commissions and all other fees                                1,513       189        4,580     589
                                  Total trust and investment fees            2,502       738        7,130     2,263
Card fees                                                                    946         601        2,722     1,747
Other fees:
               Cash network fees                                             60          48         176       143
               Charges and fees on loans                                     453         266        1,326     765
               All other fees                                                437         238        1,312     654
                                  Total other fees                           950         552        2,814     1,562
Mortgage banking:
               Servicing income, net                                         1,873       525        3,469     1,019
               Net gains on mortgage loan origination/sales activities       1,125       276        4,910     1,419
               All other                                                     69          91         238       282
                                  Total mortgage banking                     3,067       892        8,617     2,720
Insurance                                                                    468         439        1,644     1,493
Net gains from trading activities                                            622         65         2,158     684
Net gains (losses) on debt securities available for sale                     (40    )    84         (237   )  316
Net gains (losses) from equity investments                                   29          (509  )    (88    )  (149   )
Operating leases                                                             224         102        522       365
All other                                                                    536         193        1,564     593
                                                     Total               $   10,782      3,996      31,166    13,981
NONINTEREST EXPENSE
                                                                         Quarter ended Sept. 30,    Nine months ended Sept. 30,
(in millions)                                                                2009        2008       2009      2008
Salaries                                                                 $   3,428       2,078      10,252    6,092
Commission and incentive compensation                                        2,051       555        5,935     2,005
Employee benefits                                                            1,034       486        3,545     1,666
Equipment                                                                    563         302        1,825     955
Net occupancy                                                                778         402        2,357     1,201
Core deposit and other intangibles                                           642         47         1,935     139
FDIC and other deposit assessments                                           228         37         1,547     63
Outside professional services                                                489         206        1,350     589
Insurance                                                                    208         144        734       511
Postage, stationery and supplies                                             211         136        701       415
Outside data processing                                                      251         122        745       353
Travel and entertainment                                                     151         113        387       330
Foreclosed assets                                                            243         99         678       298
Contract services                                                            254         88         726       300
Operating leases                                                             52          90         183       308
Advertising and promotion                                                    160         96         396       285
Telecommunications                                                           142         78         464       238
Operating losses                                                             117         63         448       46
All other                                                                    682         359        1,991     994
               Total                                                     $   11,684      5,501      36,199    16,788

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
                                                                                  Quarter ended
                                                                                  Sept. 30,       June 30,     Mar. 31,     Dec. 31,    Sept. 30,
(in millions)                                                                     2009            2009         2009         2008        2008
Service charges on deposit accounts                                               $   1,478       1,448        1,394        803         839
Trust and investment fees:
               Trust, investment and IRA fees                                         989         839          722          487         549
               Commissions and all other fees                                         1,513       1,574        1,493        174         189
                                     Total trust and investment fees                  2,502       2,413        2,215        661         738
Card fees                                                                             946         923          853          589         601
Other fees:
               Cash network fees                                                      60          58           58           45          48
               Charges and fees on loans                                              453         440          433          272         266
               All other fees                                                         437         465          410          218         238
                                     Total other fees                                 950         963          901          535         552
Mortgage banking:
               Servicing income, net                                                  1,873       753          843          (40   )     525
               Net gains (losses) on mortgage loan origination/sales activities       1,125       2,203        1,582        (236  )     276
               All other                                                              69          90           79           81          91
                                     Total mortgage banking                           3,067       3,046        2,504        (195  )     892
Insurance                                                                             468         595          581          337         439
Net gains (losses) from trading activities                                            622         749          787          (409  )     65
Net gains (losses) on debt securities available for sale                              (40    )    (78    )     (119   )     721         84
Net gains (losses) from equity investments                                            29          40           (157   )     (608  )     (509  )
Operating leases                                                                      224         168          130          62          102
All other                                                                             536         476          552          257         193
                                                           Total                  $   10,782      10,743       9,641        2,753       3,996
FIVE QUARTER NONINTEREST EXPENSE
                                                                                  Quarter ended
                                                                                  Sept. 30,       June 30,     Mar. 31,     Dec. 31,    Sept. 30,
(in millions)                                                                     2009            2009         2009         2008        2008
Salaries                                                                          $   3,428       3,438        3,386        2,168       2,078
Commission and incentive compensation                                                 2,051       2,060        1,824        671         555
Employee benefits                                                                     1,034       1,227        1,284        338         486
Equipment                                                                             563         575          687          402         302
Net occupancy                                                                         778         783          796          418         402
Core deposit and other intangibles                                                    642         646          647          47          47
FDIC and other deposit assessments                                                    228         981          338          57          37
Outside professional services                                                         489         451          410          258         206
Insurance                                                                             208         259          267          214         144
Postage, stationery and supplies                                                      211         240          250          141         136
Outside data processing                                                               251         282          212          127         122
Travel and entertainment                                                              151         131          105          117         113
Foreclosed assets                                                                     243         187          248          116         99
Contract services                                                                     254         256          216          107         88
Operating leases                                                                      52          61           70           81          90
Advertising and promotion                                                             160         111          125          93          96
Telecommunications                                                                    142         164          158          83          78
Operating losses                                                                      117         159          172          96          63
All other                                                                             682         686          623          276         359
               Total                                                              $   11,684      12,697       11,818       5,810       5,501

Wells Fargo & Company and Subsidiaries
CONSOLIDATED
BALANCE SHEET
(in millions, except shares)                                        Sept. 30,          Dec. 31,
                                                                    2009               2008
Assets
Cash and due from banks                                             $     17,233       23,763
Federal funds sold, securities purchased under resale agreements          17,491       49,433
and other short-term investments
Trading assets                                                            43,198       54,884
Securities available for sale                                             183,814      151,569
Mortgages held for sale (includes $33,435 and $18,754 carried at          35,538       20,088
fair value)
Loans held for sale (includes $201 and $398 carried at fair value)        5,846        6,228
Loans                                                                     799,952      864,830
Allowance for loan losses                                                 (24,028   )  (21,013   )
Net loans                                                                 775,924      843,817
Mortgage servicing rights:
Measured at fair value (residential MSRs)                                 14,500       14,714
Amortized                                                                 1,162        1,446
Premises and equipment, net                                               11,040       11,269
Goodwill                                                                  24,052       22,627
Other assets                                                              98,827       109,801
Total assets                                                        $     1,228,625    1,309,639
Liabilities
Noninterest-bearing deposits                                        $     165,260      150,837
Interest-bearing deposits                                                 631,488      630,565
Total deposits                                                            796,748      781,402
Short-term borrowings                                                     30,800       108,074
Accrued expenses and other liabilities                                    57,861       50,689
Long-term debt                                                            214,292      267,158
Total liabilities                                                         1,099,701    1,207,323
Equity
Wells Fargo stockholders' equity:
Preferred stock                                                           31,589       31,332
Common stock - $1-2/3 par value, authorized 6,000,000,000 shares;         7,927        7,273
issued 4,756,071,429 shares and 4,363,921,429 shares
Additional paid-in capital                                                40,343       36,026
Retained earnings                                                         41,485       36,543
Cumulative other comprehensive income (loss)                              4,088        (6,869    )
Treasury stock - 76,876,271 shares and 135,290,540 shares                 (2,771    )  (4,666    )
Unearned ESOP shares                                                      (511      )  (555      )
Total Wells Fargo stockholders' equity                                    122,150      99,084
Noncontrolling interests                                                  6,774        3,232
Total equity                                                              128,924      102,316
Total liabilities and equity                                        $     1,228,625    1,309,639

Wells Fargo & Company and Subsidiaries
FIVE QUARTER
CONSOLIDATED BALANCE SHEET
(in millions)                                                     Sept. 30,          June 30,      Mar. 31,      Dec. 31,      Sept. 30,
                                                                  2009               2009          2009          2008          2008
Assets
Cash and due from banks                                           $    17,233        20,632        22,186        23,763        12,861
Federal funds sold, securities purchased under resale agreements       17,491        15,976        18,625        49,433        8,093
and other short-term investments
Trading assets                                                         43,198        40,110        46,497        54,884        9,097
Securities available for sale                                          183,814       206,795       178,468       151,569       86,882
Mortgages held for sale                                                35,538        41,991        36,807        20,088        18,739
Loans held for sale                                                    5,846         5,413         8,306         6,228         635
Loans                                                                  799,952       821,614       843,579       864,830       411,049
Allowance for loan losses                                              (24,028   )   (23,035   )   (22,281   )   (21,013   )   (7,865    )
Net loans                                                              775,924       798,579       821,298       843,817       403,184
Mortgage servicing rights:
Measured at fair value (residential MSRs)                              14,500        15,690        12,391        14,714        19,184
Amortized                                                              1,162         1,205         1,257         1,446         433
Premises and equipment, net                                            11,040        11,151        11,215        11,269        5,054
Goodwill                                                               24,052        24,619        23,825        22,627        13,520
Other assets                                                           98,827        102,015       105,016       109,801       44,679
Total assets                                                      $    1,228,625     1,284,176     1,285,891     1,309,639     622,361
Liabilities
Noninterest-bearing deposits                                      $    165,260       173,149       166,497       150,837       89,446
Interest-bearing deposits                                              631,488       640,586       630,772       630,565       264,128
Total deposits                                                         796,748       813,735       797,269       781,402       353,574
Short-term borrowings                                                  30,800        55,483        72,084        108,074       85,187
Accrued expenses and other liabilities                                 57,861        64,160        58,831        50,689        28,991
Long-term debt                                                         214,292       229,416       250,650       267,158       107,350
Total liabilities                                                      1,099,701     1,162,794     1,178,834     1,207,323     575,102
Equity
Wells Fargo stockholders' equity:
Preferred stock                                                        31,589        31,497        31,411        31,332        625
Common stock                                                           7,927         7,927         7,273         7,273         5,788
Additional paid-in capital                                             40,343        40,270        32,414        36,026        8,348
Retained earnings                                                      41,485        39,165        36,949        36,543        40,853
Cumulative other comprehensive income (loss)                           4,088         (590      )   (3,624    )   (6,869    )   (2,783    )
Treasury stock                                                         (2,771    )   (3,126    )   (3,593    )   (4,666    )   (5,207    )
Unearned ESOP shares                                                   (511      )   (520      )   (535      )   (555      )   (667      )
Total Wells Fargo stockholders' equity                                 122,150       114,623       100,295       99,084        46,957
Noncontrolling interests                                               6,774         6,759         6,762         3,232         302
Total equity                                                           128,924       121,382       107,057       102,316       47,259
Total liabilities and equity                                      $    1,228,625     1,284,176     1,285,891     1,309,639     622,361

Wells Fargo & Company and Subsidiaries
FIVE QUARTER
AVERAGE BALANCES
                                                                  Quarter ended
(in millions)                                                     Sept. 30,          June 30,      Mar. 31,      Dec. 31,     Sept. 30,
                                                                  2009               2009          2009          2008         2008
Earning assets
Federal funds sold, securities purchased under resale agreements  $    16,356        20,889        24,074        9,938        3,463
and other short-term investments
Trading assets                                                         20,518        18,464        22,203        5,004        4,838
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies                       2,545         2,102         2,899         1,165        1,141
Securities of U.S. states and political subdivisions                   12,818        12,189        12,213        7,124        7,211
Mortgage-backed securities:
Federal agencies                                                       94,457        92,550        76,545        51,714       50,528
Residential and commercial                                             43,214        41,257        38,690        18,245       21,358
Total mortgage-backed securities                                       137,671       133,807       115,235       69,959       71,886
Other debt securities (1)                                              33,294        30,901        30,080        14,217       12,622
Total debt securities available for sale (1)                           186,328       178,999       160,427       92,465       92,860
Mortgages held for sale (2)                                            40,604        43,177        31,058        23,390       24,990
Loans held for sale (2)                                                4,975         7,188         7,949         1,287        677
Loans:
Commercial and commercial real estate:
Commercial                                                             175,642       187,501       196,923       107,325      100,688
Real estate mortgage                                                   103,450       104,297       104,271       45,555       43,616
Real estate construction                                               32,649        33,857        34,493        19,943       19,715
Lease financing                                                        14,360        14,750        15,810        7,397        7,250
Total commercial and commercial real estate                            326,101       340,405       351,497       180,220      171,269
Consumer:
Real estate 1-4 family first mortgage                                  235,051       240,798       245,494       78,251       76,197
Real estate 1-4 family junior lien mortgage                            105,779       108,422       110,128       75,838       75,379
Credit card                                                            23,448        22,963        23,295        20,626       19,948
Other revolving credit and installment                                 90,199        90,729        92,820        52,638       54,104
Total consumer                                                         454,477       462,912       471,737       227,353      225,628
Foreign                                                                29,613        30,628        32,357        6,367        7,306
Total loans (2)                                                        810,191       833,945       855,591       413,940      404,203
Other                                                                  6,088         6,079         6,140         1,690        2,126
Total earning assets                                              $    1,085,060     1,108,741     1,107,442     547,714      533,157
Funding sources
Deposits:
Interest-bearing checking                                         $    59,467        79,955        80,393        6,396        5,483
Market rate and other savings                                          369,120       334,067       313,445       178,301      166,710
Savings certificates                                                   129,698       152,444       170,122       41,189       37,192
Other time deposits                                                    18,248        21,660        25,555        8,128        7,930
Deposits in foreign offices                                            56,820        49,885        45,896        42,771       49,054
Total interest-bearing deposits                                        633,353       638,011       635,411       276,785      266,369
Short-term borrowings                                                  39,828        59,844        76,068        60,210       83,458
Long-term debt                                                         222,580       235,590       258,957       104,112      103,745
Other liabilities                                                      5,620         4,604         3,778         -            -
Total interest-bearing liabilities                                     901,381       938,049       974,214       441,107      453,572
Portion of noninterest-bearing funding sources                         183,679       170,692       133,228       106,607      79,585
Total funding sources                                             $    1,085,060     1,108,741     1,107,442     547,714      533,157
Noninterest-earning assets
Cash and due from banks                                           $    18,084        19,340        20,255        11,155       11,024
Goodwill                                                               24,435        24,261        23,183        13,544       13,531
Other                                                                  118,472       122,584       138,836       60,810       56,482
Total noninterest-earning assets                                  $    160,991       166,185       182,274       85,509       81,037
Noninterest-bearing funding sources
Deposits                                                          $    172,588       174,529       160,308       91,229       87,095
Other liabilities                                                      47,646        49,570        50,566        30,651       25,452
Total equity                                                           124,436       112,778       104,628       70,236       48,075
Noninterest-bearing funding sources used to fund earning assets        (183,679  )   (170,692  )   (133,228  )   (106,607 )   (79,585   )
Net noninterest-bearing funding sources                           $    160,991       166,185       182,274       85,509       81,037
Total assets                                                      $    1,246,051     1,274,926     1,289,716     633,223      614,194
(1) Includes certain preferred securities.
(2) Nonaccrual loans are included in their respective loan
categories.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS
(in millions)                                          Sept. 30,       June 30,  Mar. 31,  Dec. 31,  Sept. 30,
                                                       2009            2009      2009      2008      2008
Commercial and commercial real estate:
Commercial                                             $     169,610   182,037   191,711   202,469   104,281
Real estate mortgage                                         103,442   103,654   104,934   103,108   44,741
Real estate construction                                     31,719    33,238    33,912    34,676    19,681
Lease financing                                              14,115    14,555    14,792    15,829    7,271
Total commercial and commercial real estate                  318,886   333,484   345,349   356,082   175,974
Consumer:
Real estate 1-4 family first mortgage                        232,622   237,289   242,947   247,894   77,870
Real estate 1-4 family junior lien mortgage                  104,538   107,024   109,748   110,164   75,617
Credit card                                                  23,597    23,069    22,815    23,555    20,358
Other revolving credit and installment                       90,027    90,654    91,252    93,253    54,327
Total consumer                                               450,784   458,036   466,762   474,866   228,172
Foreign                                                      30,282    30,094    31,468    33,882    6,903
Total loans (net of unearned income) (1)               $     799,952   821,614   843,579   864,830   411,049
(1) Includes $54.3 billion, $55.2 billion, $58.2 billion and $58.8
billion of purchased credit-impaired (PCI) loans at September 30,
June 30 and March 31, 2009, and December 31, 2008, respectively. See
table on page 32 for detail of PCI loans.
FIVE QUARTER NONACCRUAL LOANS AND OTHER NONPERFORMING ASSETS
(in millions)                                          Sept. 30,       June 30,  Mar. 31,  Dec. 31,  Sept. 30,
                                                       2009            2009      2009      2008      2008
Nonaccrual loans:
Commercial and commercial real estate:
Commercial                                             $     4,540     2,910     1,696     1,253     846
Real estate mortgage                                         2,856     2,343     1,324     594       296
Real estate construction                                     2,711     2,210     1,371     989       736
Lease financing                                              157       130       114       92        69
Total commercial and commercial real estate                  10,264    7,593     4,505     2,928     1,947
Consumer:
Real estate 1-4 family first mortgage                        8,132     6,000     4,218     2,648     1,975
Real estate 1-4 family junior lien mortgage                  1,985     1,652     1,418     894       780
Other revolving credit and installment                       344       327       300       273       232
Total consumer                                               10,461    7,979     5,936     3,815     2,987
Foreign                                                      144       226       75        57        61
Total nonaccrual loans (1) (2)                               20,869    15,798    10,516    6,800     4,995
As a percentage of total loans                               2.61    % 1.92      1.25      0.79      1.22
Foreclosed assets:
GNMA loans (3)                                         $     840       932       768       667       596
Other                                                        1,687     1,592     1,294     1,526     644
Real estate and other nonaccrual investments (4)             55        20        34        16        56
Total nonaccrual loans and other nonperforming assets  $     23,451    18,342    12,612    9,009     6,291
As a percentage of total loans                               2.93    % 2.23      1.50      1.04      1.53
(1) Includes nonaccrual mortgages held for sale and loans held for
sale in their respective loan categories.
(2) Excludes PCI loans from Wachovia.
(3) Consistent with regulatory reporting requirements, foreclosed
real estate securing Government National Mortgage Association (GNMA)
loans is classified as nonperforming. Both principal and interest
for GNMA loans secured by the foreclosed real estate are collectible
because the GNMA loans are insured by the Federal Housing
Administration or guaranteed by the Department of Veterans Affairs.
(4) Includes real estate investments (contingent interest loans
accounted for as investments) that would be classified as nonaccrual
if these assets were recorded as loans, and nonaccrual debt
securities.

Wells Fargo & Company and Subsidiaries
PURCHASED
CREDIT-IMPAIRED (PCI) LOANS
Certain loans acquired from Wachovia have evidence of credit
deterioration since origination and it is probable that we will not
collect all contractually required principal and interest payments
(referred to as "purchased credit-impaired"(PCI) loans). Such loans
are accounted for under ASC 310-30, Receivables (American
Institute of Certified Public Accountants Statement of Position
03-3, Accounting for Certain Loans or Debt Securities Acquired in
a Transfer). The accounting provisions contained in ASC 310-30
require acquired loans be recorded at fair value at the acquisition
date and prohibits carryover of the related allowance for loan
losses. The difference between contractually required payments and
cash flows expected to be collected is referred to as the
nonaccretable difference. The difference between the cash flows
expected to be collected and the fair value is referred to as the
accretable yield.
Because PCI loans have been written down in purchase accounting to
an amount estimated to be collectible, such loans are not classified
as nonaccrual even though they may be contractually past due. Also,
losses on such loans are charged against the nonaccretable
difference established in purchase accounting and, as such, are not
reported as charge-offs.
As a result of the application of ASC 310-30 to credit-impaired
Wachovia loans, certain ratios of the combined company 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 by the accounting under ASC 310-30 include the
allowance for loan losses and allowance for credit losses as
percentages of loans, of nonaccrual loans and of nonperforming
assets; nonaccrual loans and nonperforming assets as a percentage of
total loans; and net charge-offs as a percentage of loans.
                                                                  September 30, 2009 (1)                      December 31, 2008
(in millions)                                                     PCI                 All      Total          PCI               All      Total
                                                                  loans               other                   loans             other
                                                                                      loans                                     loans
Commercial and commercial real estate:
Commercial                                                        $     2,407         167,203  169,610        4,580             197,889  202,469
Real estate mortgage                                                    5,950         97,492   103,442        7,762             95,346   103,108
Real estate construction                                                4,250         27,469   31,719         4,503             30,173   34,676
Lease financing                                                         -             14,115   14,115         -                 15,829   15,829
Total commercial and commercial real estate (CRE)                       12,607        306,279  318,886        16,845            339,237  356,082
Consumer:
Real estate 1-4 family first mortgage                                   39,538        193,084  232,622        39,214            208,680  247,894
Real estate 1-4 family junior lien mortgage                             425           104,113  104,538        728               109,436  110,164
Credit card                                                             -             23,597   23,597         -                 23,555   23,555
Other revolving credit and installment                                  -             90,027   90,027         151               93,102   93,253
Total consumer                                                          39,963        410,821  450,784        40,093            434,773  474,866
Foreign                                                                 1,768         28,514   30,282         1,859             32,023   33,882
Total loans                                                       $     54,338        745,614  799,952        58,797            806,033  864,830
(1) In the first three quarters of 2009, we refined certain of our
preliminary purchase accounting adjustments based on additional
information as of December 31, 2008. These refinements include a net
increase to the nonaccretable difference of $3.8 billion ($2.2
billion of which related to Pick-a-Pay loans), and a net increase to
the accretable yield of $1.9 billion ($2.0 billion of which related
to Pick-a-Pay loans and reflects changes in the amount and timing of
cash flows). The effect on goodwill of these adjustments amounted to
a net increase to goodwill of $1.9 billion.
CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS
The nonaccretable difference was established in purchase accounting
for PCI loans to absorb losses expected at that time on those loans.
Amounts absorbed by the nonaccretable difference do not affect the
income statement or the allowance for credit losses.
(in millions)                                                     Pick-a-Pay                   Other          Commercial,                Total
                                                                                               consumer       CRE and
                                                                                                              foreign
Balance at December 31, 2008, with refinements                    $     (26,485 )              (4,082   )     (10,378     )              (40,945 )
Release of nonaccretable difference due to:
Loans resolved by payment in full                                       -                      -              194                        194
Loans resolved by sales to third parties                                -                      85             28                         113
Loans with improving cash flows reclassified to accretable yield        -                      -              21                         21
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (1)                        8,320                  1,796          3,552                      13,668
Balance at September 30, 2009                                     $     (18,165 )              (2,201   )     (6,583      )              (26,949 )
(1) Use of nonaccretable difference through June 30, 2009, was $8.5
billion (including $5.1 billion for Pick-a-Pay loans); revised from
second quarter to include all losses due to resolution of loans and
write-downs.
CHANGES IN ALLOWANCE FOR LOAN LOSSES FOR PCI LOANS
Deterioration in expected credit losses for PCI loans subsequent to
the acquisition on December 31, 2008, results the establishment of
an allowance, provided for through a charge to income. Losses and
improvements in expected losses will reduce the allowance.
(in millions)                                                     Pick-a-Pay                   Other          Commercial,                Total
                                                                                               consumer       CRE and
                                                                                                              foreign
Balance at December 31, 2008                                      $     -                      -              -                          -
Provision for losses due to credit deterioration                        -                      -              458                        458
Charge-offs                                                             -                      -              (225        )              (225    )
Balance at September 30, 2009                                     $     -                      -              233                        233

Wells Fargo & Company and Subsidiaries
PICK-A-PAY
PORTFOLIO
                        PCI loans                                            All other loans
(in millions)           Unpaid       Current       Carrying     Ratio of     Unpaid       Current       Carrying
                        principal    LTV           value (2)    carrying     principal    LTV           value
                        balance      ratio (1)                  value to     balance      ratio (1)
                                                                current
                                                                value
Sept. 30, 2009
California              $    39,034  150       %   $    25,492  98       %   $    24,447  95        %   $    24,395
Florida                      5,929   144                3,532   85                5,166   108                5,117
New Jersey                   1,676   101                1,309   78                3,017   82                 3,021
Texas                        452     81                 395     71                2,031   66                 2,039
Arizona                      1,481   155                742     78                1,160   105                1,152
Other states                 8,738   110                6,520   82                14,128  85                 14,120
Total Pick-a-Pay loans  $    57,310                $    37,990               $    49,949                $    49,844
June 30, 2009
California              $    40,657  146       %   $    26,177  95       %   $    25,117  90        %   $    25,170
Florida                      6,117   130                3,903   84                5,276   96                 5,287
New Jersey                   1,717   99                 1,226   71                3,162   80                 3,169
Texas                        466     80                 341     59                2,108   66                 2,112
Arizona                      1,553   148                1,001   96                1,195   99                 1,197
Other states                 9,041   108                6,227   75                14,607  83                 14,640
Total Pick-a-Pay loans  $    59,551                $    38,875               $    51,465                $    51,575
(1) The current LTV ratio is calculated as the unpaid principal
balance plus the unpaid principal balance of any equity lines of
credit that share common collateral divided by the collateral
value. Collateral values are generally determined using automated
valuation models (AVM) and are updated quarterly. AVMs are
computer-based tools used to estimate market values of homes based
on processing large volumes of market data including market
comparables and price trends for local market areas.
(2) Carrying value, which does not reflect the allowance for loan
losses, includes purchase accounting adjustments, which, for PCI
loans, are the nonaccretable difference and the accretable yield,
and for all other loans, an adjustment to mark the loans to a
market yield at date of merger less any subsequent charge-offs.

Wells Fargo & Company and Subsidiaries
HOME EQUITY
PORTFOLIOS (1)
                                       Outstanding balances     % of loans            Annualized
                                                                two payments          loss rate
                                                                or more past due
(in millions)                          Sept. 30,      June 30,  Sept. 30,   June 30,  Sept. 30,  June 30,
                                       2009           2009      2009        2009      2009       2009
Core portfolio (2)
California                             $     30,841   31,479    3.97      % 3.63      6.52       5.36
Florida                                      11,496   11,697    5.08        3.91      4.82       4.55
New Jersey                                   8,119    8,224     2.22        1.70      1.41       1.37
Virginia                                     5,736    5,805     1.60        1.26      1.22       0.99
Pennsylvania                                 4,971    5,048     1.95        1.46      1.51       1.29
Other                                        54,152   55,248    2.64        2.22      2.65       2.46
Total                                        115,315  117,501   3.13        2.65      3.69       3.25
Liquidating portfolio
California                                   3,406    3,616     8.75        8.16      18.22      17.13
Florida                                      435      460       9.83        9.14      16.97      18.11
Arizona                                      206      219       8.25        8.16      22.33      18.13
Texas                                        161      169       1.68        1.13      2.15       2.96
Minnesota                                    112      117       3.39        3.88      8.52       7.41
Other                                        4,546    4,764     4.68        4.00      7.14       6.25
Total                                        8,866    9,345     6.51        5.91      12.17      11.29
Total core and liquidating portfolios  $     124,181  126,846   3.37        2.89      4.31       3.85
(1) Consists of real estate 1-4 family junior lien mortgages and
lines of credit secured by real estate from all groups, excluding
PCI loans.
(2) Includes equity lines of credit and closed-end second liens
associated with the Pick-a-Pay portfolio totaling $1.9 billion and
$2.0 billion at September 30 and June 30, 2009, respectively.

Wells Fargo & Company and Subsidiaries
CHANGES IN THE
ALLOWANCE FOR CREDIT LOSSES (1)
                                                                     Quarter ended Sept. 30,            Nine months ended Sept. 30,
(in millions)                                                             2009             2008         2009       2008
Balance, beginning of period                                         $    23,530           7,517        21,711     5,518
Provision for credit losses                                               6,111            2,495        15,755     7,535
Loan charge-offs:
Commercial and commercial real estate:
Commercial                                                                (986   )         (305   )     (2,337  )  (897             )
Real estate mortgage                                                      (215   )         (9     )     (398    )  (19              )
Real estate construction                                                  (254   )         (36    )     (595    )  (93              )
Lease financing                                                           (88    )         (19    )     (173    )  (44              )
Total commercial and commercial real estate                               (1,543 )         (369   )     (3,503  )  (1,053           )
Consumer:
Real estate 1-4 family first mortgage                                     (1,015 )         (146   )     (2,229  )  (330             )
Real estate 1-4 family junior lien mortgage                               (1,340 )         (669   )     (3,428  )  (1,476           )
Credit card                                                               (691   )         (396   )     (2,025  )  (1,078           )
Other revolving credit and installment                                    (860   )         (586   )     (2,562  )  (1,617           )
Total consumer                                                            (3,906 )         (1,797 )     (10,244 )  (4,501           )
Foreign                                                                   (71    )         (59    )     (181    )  (185             )
Total loan charge-offs                                                    (5,520 )         (2,225 )     (13,928 )  (5,739           )
Loan recoveries:
Commercial and commercial real estate:
Commercial                                                                62               27           153        90
Real estate mortgage                                                      6                1            22         4
Real estate construction                                                  5                -            11         2
Lease financing                                                           6                3            13         9
Total commercial and commercial real estate                               79               31           199        105
Consumer:
Real estate 1-4 family first mortgage                                     49               7            114        20
Real estate 1-4 family junior lien mortgage                               49               28           119        63
Credit card                                                               43               35           131        113
Other revolving credit and installment                                    178              117          580        363
Total consumer                                                            319              187          944        559
Foreign                                                                   11               12           30         40
Total loan recoveries                                                     409              230          1,173      704
Net loan charge-offs                                                      (5,111 )         (1,995 )     (12,755 )  (5,035           )
Allowances related to business combinations/other                         (2     )         10           (183    )  9
Balance, end of period                                               $    24,528           8,027        24,528     8,027
Components:
Allowance for loan losses                                            $    24,028           7,865        24,028     7,865
Reserve for unfunded credit commitments                                   500              162          500        162
Allowance for credit losses                                          $    24,528           8,027        24,528     8,027
Net loan charge-offs (annualized) as a percentage of average total        2.50        %    1.96         2.05       1.71
loans
(1) Because the Wachovia acquisition was completed on December 31,
2008, charge-offs and recoveries for 2008 include only those of
Wells Fargo, and exclude those of Wachovia for that period.
Purchased credit-impaired loans (PCI) loans from Wachovia are
included in total loans net of related purchase accounting
adjustments. For PCI loans, charge-offs are only recorded to the
extent that losses exceed the purchase accounting adjustments. The
Wachovia merger and the accounting for PCI loans both affect the
comparability of certain ratios as described on page 32.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER
CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES (1)
                                                                    Quarter ended
(in millions)                                                       Sept. 30,         June 30,       Mar. 31,       Dec. 31,       Sept. 30,
                                                                    2009              2009           2009           2008           2008
Balance, beginning of quarter                                       $    23,530       22,846         21,711         8,027          7,517
Provision for credit losses (2)                                          6,111        5,086          4,558          8,444          2,495
Loan charge-offs:
Commercial and commercial real estate:
Commercial                                                               (986   )     (755     )     (596     )     (756     )     (305      )
Real estate mortgage                                                     (215   )     (152     )     (31      )     (10      )     (9        )
Real estate construction                                                 (254   )     (236     )     (105     )     (85      )     (36       )
Lease financing                                                          (88    )     (65      )     (20      )     (21      )     (19       )
Total commercial and commercial real estate                              (1,543 )     (1,208   )     (752     )     (872     )     (369      )
Consumer:
Real estate 1-4 family first mortgage                                    (1,015 )     (790     )     (424     )     (210     )     (146      )
Real estate 1-4 family junior lien mortgage                              (1,340 )     (1,215   )     (873     )     (728     )     (669      )
Credit card                                                              (691   )     (712     )     (622     )     (485     )     (396      )
Other revolving credit and installment                                   (860   )     (802     )     (900     )     (683     )     (586      )
Total consumer                                                           (3,906 )     (3,519   )     (2,819   )     (2,106   )     (1,797    )
Foreign                                                                  (71    )     (56      )     (54      )     (60      )     (59       )
Total loan charge-offs                                                   (5,520 )     (4,783   )     (3,625   )     (3,038   )     (2,225    )
Loan recoveries:
Commercial and commercial real estate:
Commercial                                                               62           51             40             24             27
Real estate mortgage                                                     6            6              10             1              1
Real estate construction                                                 5            4              2              1              -
Lease financing                                                          6            4              3              4              3
Total commercial and commercial real estate                              79           65             55             30             31
Consumer:
Real estate 1-4 family first mortgage                                    49           32             33             17             7
Real estate 1-4 family junior lien mortgage                              49           44             26             26             28
Credit card                                                              43           48             40             34             35
Other revolving credit and installment                                   178          198            204            118            117
Total consumer                                                           319          322            303            195            187
Foreign                                                                  11           10             9              9              12
Total loan recoveries                                                    409          397            367            234            230
Net loan charge-offs                                                     (5,111 )     (4,386   )     (3,258   )     (2,804   )     (1,995    )
Allowances related to business combinations/other                        (2     )     (16      )     (165     )     8,044          10
Balance, end of quarter                                             $    24,528       23,530         22,846         21,711         8,027
Components:
Allowance for loan losses                                           $    24,028       23,035         22,281         21,013         7,865
Reserve for unfunded credit commitments                                  500          495            565            698            162
Allowance for credit losses                                         $    24,528       23,530         22,846         21,711         8,027
Net loan charge-offs (annualized) as a percentage of average total       2.50   %     2.11           1.54           2.69           1.96
loans
Allowance for loan losses as a percentage of:
Total loans                                                              3.00         2.80           2.64           2.43           1.91
Nonaccrual loans                                                         115          146            212            309            157
Nonaccrual loans and other nonperforming assets                          102          126            177            233            125
Allowance for credit losses as a percentage of:
Total loans                                                              3.07         2.86           2.71           2.51           1.95
Nonaccrual loans                                                         118          149            217            319            161
Nonaccrual loans and other nonperforming assets                          105          128            181            241            128
(1) Because the Wachovia acquisition was completed on December 31,
2008, charge-offs and recoveries for 2008 include only those of
Wells Fargo, and exclude those of Wachovia for that period.
Purchased credit-impaired loans (PCI) loans from Wachovia are
included in total loans net of related purchase accounting
adjustments. For PCI loans, charge-offs are only recorded to the
extent that losses exceed the purchase accounting adjustments. The
Wachovia merger and the accounting for PCI loans both affect the
comparability of certain ratios as described on page 32.
(2) Provision for credit losses for the quarter ended December 31,
2008, included $3.9 billion to conform reserve practices of Wells
Fargo and Wachovia.

Wells Fargo & Company and Subsidiaries
CONDENSED
CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY (1)
                                                                    Nine months ended September 30,
(in millions)                                                                   2009           2008
Balance, beginning of period (2)                                    $           102,316        47,914
Cumulative effect from change in accounting for postretirement                  -              (20         )
benefits (3)
Adjustment for change of measurement date related to pension and                -              (8          )
other postretirement benefits (4)
Net income before noncontrolling interests                                      9,654          5,439
Wells Fargo other comprehensive income (loss), net of tax, related
to:
Translation adjustments                                                         63             (20         )
Investment securities (5):
Unrealized losses related to factors other than credit (2)                      (654        )  -
All other                                                                       11,220         (3,485      )
Derivative instruments and hedging activities                                   (189        )  (6          )
Defined benefit pension plans                                                   570            3
Common stock issued                                                             9,590          1,269
Common stock repurchased                                                        (80         )  (1,162      )
Preferred stock released to ESOP                                                41             346
Common stock dividends                                                          (1,891      )  (3,178      )
Preferred stock dividends                                                       (1,558      )  -
Other, net                                                                      (158        )  167
Balance, end of period                                              $           128,924        47,259
(1) On January 1, 2009, we adopted new accounting guidance on
noncontrolling interests contained in Financial Accounting Standards
Board (FASB) Accounting Standards Codification 810-10 (ASC 810-10), Consolidation
(Statement of Financial Accounting Standards No. 160, Noncontrolling
Interests in Consolidated Financial Statements - an amendment of ARB
No. 51), on a retrospective basis for disclosure and,
accordingly, prior period information reflects the adoption. ASC
810-10 requires that noncontrolling interests be reported as a
component of total equity.
(2) The impact on prior periods of adopting new accounting
provisions for recording other-than-temporary impairment on debt
securities as prescribed in ASC 320-10, Investments - Debt and
Equity Securities (FASB Staff Position (FSP) FAS 115-2 and FAS
124-2, Recognition and Presentation of Other-Than-Temporary
Impairments), was to increase the beginning balance of retained
earnings and reduce the beginning balance of other comprehensive
income by $85 million ($53 million after tax). The unrealized losses
in Wells Fargo other comprehensive income in the first nine months
of 2009 that related to factors other than credit, where the credit
portion was recorded as other-than-temporary impairment in earnings,
amounted to $1.04 billion ($654 million after tax).
(3) On January 1, 2008, we adopted new accounting guidance for
postretirement benefits in accordance with ASC 715, Compensation
- Retirement Benefits(Emerging Issues Task Force (EITF) Issue
No. 06-4, Accounting for Deferred Compensation and Postretirement
Benefit Aspects of Endorsement Split-Dollar Life Insurance
Arrangements,and Issue No. 06-10, Accounting for Collateral
Assignment Split-Dollar Life Insurance Arrangements).
(4) We adjusted the 2008 beginning balance of retained earnings to
reflect the change in the measurement date for our pension and
postretirement plan assets and benefit obligations as required by
ASC 715, Compensation - Retirement Benefits (FAS 158, Employers'
Accounting for Defined Benefit Pension and Other Postretirement
Plans - an amendment of FASB Statements No. 87, 88, 106, and 132(R)).
(5) On March 31, 2009, we early adopted new fair value measurement
provisions contained in ASC 820-10, Fair Value Measurements and
Disclosures (FSP FAS 157-4, Determining Fair Value When the
Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not
Orderly). This guidance addresses determining fair values for
securities in circumstances where the market for such securities is
illiquid and transactions involve distressed sales. In such
circumstances, ASC 820-10 permits use of other inputs in estimating
fair value that may include pricing models.

Wells Fargo & Company and Subsidiaries
TIER 1 COMMON
EQUITY (1)
                                                                                   Quarter ended
(in billions)                                                                      Sept. 30,           June 30,    Dec. 31,
                                                                                   2009                2009        2008
Total equity                                                                       $       128.9       121.4       102.3
Less:                     Noncontrolling interests                                         (6.8    )   (6.8     )  (3.2     )
Total Wells Fargo stockholders' equity                                                     122.1       114.6       99.1
Less:                     Preferred equity                                                 (31.1   )   (31.0    )  (30.8    )
                          Goodwill and intangible assets (other than MSRs)                 (37.5   )   (38.7    )  (38.1    )
                          Applicable deferred assets                                       5.3         5.5         5.6
                          Deferred tax asset limitation                                    -           (2.0     )  (6.0     )
                          MSRs over specified limitations                                  (1.5    )   (1.6     )  (1.5     )
                          Cumulative other comprehensive income                            (4.0    )   0.6         6.9
                          Other                                                            (0.3    )   (0.3     )  (0.8     )
                          Tier 1 common equity                             (A)     $       53.0        47.1        34.4
Total risk-weighted assets (2)                                             (B)     $       1,022.9     1,047.7     1,101.3
Tier 1 common equity to total risk-weighted assets                         (A)/(B)         5.18      % 4.49        3.13
(1) Tier 1 common equity is a non-GAAP financial measure that is
used by investors, analysts and bank regulatory agencies, including
the Federal Reserve in the Supervisory Capital Assessment Program,
to assess the capital position of financial services companies. Tier
1 common equity includes total Wells Fargo stockholders' equity,
less preferred equity, goodwill and intangible assets (excluding
MSRs), net of related deferred taxes, adjusted for specified Tier 1
regulatory capital limitations covering deferred taxes, MSRs, and
cumulative other comprehensive income. Management reviews Tier 1
common equity along with other measures of capital as part of its
financial analyses and has included this non-GAAP financial
information, and the corresponding reconciliation to total equity,
because of current interest in such information on the part of
market participants.
(2) Under the regulatory guidelines for risk-based capital,
on-balance sheet assets and credit equivalent amounts of derivatives
and off-balance sheet items are assigned to one of several broad
risk categories according to the obligor or, if relevant, the
guarantor or the nature of any collateral. The aggregate dollar
amount in each risk category is then multiplied by the risk weight
associated with that category. The resulting weighted values from
each of the risk categories are aggregated for determining total
risk-weighted assets. The Company's September 30, 2009, preliminary
risk-weighted assets reflect estimated on-balance sheet
risk-weighted assets of $848.5 billion and derivative and
off-balance sheet risk-weighted assets of $174.4 billion.

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT
RESULTS (1)
(income/expense in millions, average balances in billions)  Community           Wholesale        Wealth, Brokerage  Other (2)            Consolidated
                                                            Banking             Banking          and Retirement                          Company
                                                            2009        2008    2009   2008      2009        2008   2009       2008      2009     2008
Quarter ended Sept. 30,
Net interest income (3)                                     $   8,700   5,293   2,535  1,065     743         223    (294   )   (200  )   11,684   6,381
Provision for credit losses                                     4,572   2,202   1,361  294       234         3      (56    )   (4    )   6,111    2,495
Noninterest income                                              6,443   3,209   2,381  631       2,223       458    (265   )   (302  )   10,782   3,996
Noninterest expense                                             6,802   3,982   2,630  1,329     2,314       498    (62    )   (308  )   11,684   5,501
Income (loss) before income tax expense (benefit)               3,769   2,318   925    73        418         180    (441   )   (190  )   4,671    2,381
Income tax expense (benefit)                                    1,046   764     325    (30   )   151         68     (167   )   (72   )   1,355    730
Net income (loss) before noncontrolling interests               2,723   1,554   600    103       267         112    (274   )   (118  )   3,316    1,651
Less: Net income from noncontrolling interests                  56      14      2      -         23          -      -          -         81       14
Net income (loss) (4)                                       $   2,667   1,540   598    103       244         112    (274   )   (118  )   3,235    1,637
Average loans                                               $   534.7   287.1   247.0  116.3     45.4        15.9   (16.9  )   (15.1 )   810.2    404.2
Average assets                                                  785.2   452.3   369.3  158.1     108.6       19.1   (17.0  )   (15.3 )   1,246.1  614.2
Average core deposits                                           530.3   252.8   146.9  64.4      116.4       23.5   (34.3  )   (20.6 )   759.3    320.1
Nine months ended Sept. 30,
Net interest income (3)                                     $   25,981  15,246  7,381  3,116     2,244       576    (782   )   (519  )   34,824   18,419
Provision for credit losses                                     12,840  6,833   2,644  701       374         9      (103   )   (8    )   15,755   7,535
Noninterest income                                              17,922  10,328  7,680  3,170     6,347       1,422  (783   )   (939  )   31,166   13,981
Noninterest expense                                             21,625  12,187  7,968  4,031     6,822       1,480  (216   )   (910  )   36,199   16,788
Income (loss) before income tax expense (benefit)               9,438   6,554   4,449  1,554     1,395       509    (1,246 )   (540  )   14,036   8,077
Income tax expense (benefit)                                    2,734   2,265   1,590  385       531         193    (473   )   (205  )   4,382    2,638
Net income (loss) before noncontrolling interests               6,704   4,289   2,859  1,169     864         316    (773   )   (335  )   9,654    5,439
Less: Net income (loss) from noncontrolling interests           190     43      14     7         (2    )     -      -          -         202      50
Net income (loss) (4)                                       $   6,514   4,246   2,845  1,162     866         316    (773   )   (335  )   9,452    5,389
Average loans                                               $   542.7   284.4   260.7  108.3     46.0        14.8   (16.3  )   (14.2 )   833.1    393.3
Average assets                                                  794.1   441.3   384.8  149.9     107.6       17.9   (16.4  )   (14.4 )   1,270.1  594.7
Average core deposits                                           537.4   250.2   141.2  65.8      110.9       22.3   (29.8  )   (19.7 )   759.7    318.6
(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. As a result of the combination of
Wells Fargo and Wachovia, management realigned its segments into the
following three lines of business: Community Banking; Wholesale
Banking; and Wealth, Brokerage and Retirement. We revised prior
period information to reflect this realignment; however, segment
information for periods prior to first quarter 2009 does not include
Wachovia information.
(2) "Other" includes integration expenses and the elimination of
items that are included in both Community Banking and Wealth,
Brokerage and Retirement, largely representing wealth management
customers serviced and products sold in the stores.
(3) Net interest income is the difference between interest earned on
assets and the cost of liabilities to fund those assets. Interest
earned includes actual interest earned on segment assets and, if the
segment has excess liabilities, interest credits for providing
funding to other segments. The cost of liabilities includes interest
expense on segment liabilities and, if the segment does not have
enough liabilities to fund its assets, a funding charge based on the
cost of excess liabilities from another segment.
(4) Represents segment net income (loss) for Community Banking;
Wholesale Banking; and Wealth, Brokerage and Retirement segments and
Wells Fargo net income for the Consolidated Company.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER
OPERATING SEGMENT RESULTS (1)
                                                            Quarter ended
(income/expense in millions, average balances in billions)  Sept. 30,      June 30,     Mar. 31,     Dec. 31,     Sept. 30,
                                                            2009           2009         2009         2008         2008
COMMUNITY BANKING
Net interest income (2)                                     $    8,700     8,784        8,497        5,296        5,293
Provision for credit losses                                      4,572     4,264        4,004        6,789        2,202
Noninterest income                                               6,443     6,023        5,456        2,096        3,209
Noninterest expense                                              6,802     7,665        7,158        4,320        3,982
Income (loss) before income tax expense (benefit)                3,769     2,878        2,791        (3,717   )   2,318
Income tax expense (benefit)                                     1,046     798          890          (1,606   )   764
Net income (loss) before noncontrolling interests                2,723     2,080        1,901        (2,111   )   1,554
Less: Net income (loss) from noncontrolling interests            56        72           62           (11      )   14
Segment net income (loss)                                   $    2,667     2,008        1,839        (2,100   )   1,540
Average loans                                                    534.7     540.7        552.8        288.9        287.1
Average assets                                                   785.2     799.2        797.9        466.0        452.3
Average core deposits                                            530.3     543.9        538.0        260.6        252.8
WHOLESALE BANKING
Net interest income (2)                                     $    2,535     2,479        2,367        1,400        1,065
Provision for credit losses                                      1,361     738          545          414          294
Noninterest income                                               2,381     2,759        2,540        515          631
Noninterest expense                                              2,630     2,807        2,531        1,251        1,329
Income before income tax expense (benefit)                       925       1,693        1,831        250          73
Income tax expense (benefit)                                     325       618          647          31           (30       )
Net income before noncontrolling interests                       600       1,075        1,184        219          103
Less: Net income from noncontrolling interests                   2         8            4            4            -
Segment net income                                          $    598       1,067        1,180        215          103
Average loans                                                    247.0     263.5        271.9        124.2        116.3
Average assets                                                   369.3     381.7        403.8        163.2        158.1
Average core deposits                                            146.9     138.1        138.5        81.0         64.4
WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)                                     $    743       764          737          251          223
Provision for credit losses                                      234       115          25           293          3
Noninterest income                                               2,223     2,222        1,902        417          458
Noninterest expense                                              2,314     2,289        2,219        512          498
Income (loss) before income tax expense (benefit)                418       582          395          (137     )   180
Income tax expense (benefit)                                     151       222          158          (52      )   68
Net income (loss) before noncontrolling interests                267       360          237          (85      )   112
Less: Net income (loss) from noncontrolling interests            23        (3       )   (22      )   -            -
Segment net income (loss)                                   $    244       363          259          (85      )   112
Average loans                                                    45.4      45.9         46.7         16.5         15.9
Average assets                                                   108.6     110.2        104.0        20.0         19.1
Average core deposits                                            116.4     113.5        102.6        25.6         23.5
OTHER (3)
Net interest income (2)                                     $    (294  )   (263     )   (225     )   (223     )   (200      )
Provision for credit losses                                      (56   )   (31      )   (16      )   948          (4        )
Noninterest income                                               (265  )   (261     )   (257     )   (275     )   (302      )
Noninterest expense                                              (62   )   (64      )   (90      )   (273     )   (308      )
Loss before income tax benefit                                   (441  )   (429     )   (376     )   (1,173   )   (190      )
Income tax benefit                                               (167  )   (163     )   (143     )   (409     )   (72       )
Net loss before noncontrolling interests                         (274  )   (266     )   (233     )   (764     )   (118      )
Less: Net income from noncontrolling interests                   -         -            -            -            -
Other net loss                                              $    (274  )   (266     )   (233     )   (764     )   (118      )
Average loans                                                    (16.9 )   (16.2    )   (15.8    )   (15.7    )   (15.1     )
Average assets                                                   (17.0 )   (16.2    )   (16.0    )   (16.0    )   (15.3     )
Average core deposits                                            (34.3 )   (29.8    )   (25.2    )   (22.2    )   (20.6     )
CONSOLIDATED COMPANY
Net interest income (2)                                $    11,684    11,764    11,376    6,724        6,381
Provision for credit losses                                 6,111     5,086     4,558     8,444        2,495
Noninterest income                                          10,782    10,743    9,641     2,753        3,996
Noninterest expense                                         11,684    12,697    11,818    5,810        5,501
Income (loss) before income tax expense (benefit)           4,671     4,724     4,641     (4,777 )     2,381
Income tax expense (benefit)                                1,355     1,475     1,552     (2,036 )     730
Net income (loss) before noncontrolling interests           3,316     3,249     3,089     (2,741 )     1,651
Less: Net income (loss) from noncontrolling interests       81        77        44        (7     )     14
Wells Fargo net income (loss)                          $    3,235     3,172     3,045     (2,734 )     1,637
Average loans                                               810.2     833.9     855.6     413.9        404.2
Average assets                                              1,246.1   1,274.9   1,289.7   633.2        614.2
Average core deposits                                       759.3     765.7     753.9     345.0        320.1
(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. As a result of the combination of
Wells Fargo and Wachovia, management realigned its segments into the
following three lines of business: Community Banking; Wholesale
Banking; and Wealth, Brokerage and Retirement. We revised prior
period information to reflect this realignment; however, segment
information for periods prior to first quarter 2009 does not include
Wachovia information.
(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) "Other" includes 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. "Other" also
includes the $1.2 billion provision for credit losses recorded at
the enterprise level in fourth quarter 2008 to conform Wachovia
estimated loss emergence coverage periods to Wells Fargo policies.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER
CONSOLIDATED MORTGAGE SERVICING
                                                             Quarter ended
(in millions)                                                Sept. 30,        June 30,      Mar. 31,      Dec. 31,      Sept. 30,
                                                             2009             2009          2009          2008          2008
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter                             $    15,690      12,391        14,714        19,184        19,333
Purchases                                                         -           -             -             -             57
Acquired from Wachovia (1)                                        -           -             34            479           -
Servicing from securitizations or asset transfers                 1,517       2,081         1,447         808           851
Net additions                                                     1,517       2,081         1,481         1,287         908
Changes in fair value:
Due to changes in valuation model inputs or assumptions (2)       (2,078 )    2,316         (2,824   )    (5,129   )    (546      )
Other changes in fair value (3)                                   (629   )    (1,098   )    (980     )    (628     )    (511      )
Total changes in fair value                                       (2,707 )    1,218         (3,804   )    (5,757   )    (1,057    )
Fair value, end of quarter                                   $    14,500      15,690        12,391        14,714        19,184
(1) First quarter 2009 results reflect refinements to initial
purchase accounting adjustments.
(2) Principally reflects changes in discount rates and prepayment
speed assumptions, mostly due to changes in interest rates.
(3) Represents changes due to collection/realization of expected
cash flows over time.
                                                             Quarter ended
(in millions)                                                Sept. 30,        June 30,      Mar. 31,      Dec. 31,      Sept. 30,
                                                             2009             2009          2009          2008          2008
Amortized MSRs:
Balance, beginning of quarter                                $    1,205       1,257         1,446         433           442
Purchases                                                         -           6             4             3             2
Acquired from Wachovia (1)                                        -           (8       )    (127     )    1,021         -
Servicing from securitizations or asset transfers                 21          18            4             7             8
Amortization                                                      (64    )    (68      )    (70      )    (18      )    (19       )
Balance, end of quarter (2)                                  $    1,162       1,205         1,257         1,446         433
Fair value of amortized MSRs:
Beginning of quarter                                         $    1,311       1,392         1,555         622           595
End of quarter                                                    1,277       1,311         1,392         1,555         622
(1) 2009 periods reflect refinements to initial purchase accounting
adjustments.
(2) There was no valuation allowance recorded for the periods
presented.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER
CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
                                                                 Quarter ended
(in millions)                                                    Sept. 30,             June 30,       Mar. 31,       Dec. 31,       Sept. 30,
                                                                 2009                  2009           2009           2008           2008
Servicing income, net:
Servicing fees (1)                                               $    1,039            888            1,018          952            980
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)           (2,078 )         2,316          (2,824   )     (5,129   )     (546      )
Other changes in fair value (3)                                       (629   )         (1,098   )     (980     )     (628     )     (511      )
Total changes in fair value of residential MSRs                       (2,707 )         1,218          (3,804   )     (5,757   )     (1,057    )
Amortization                                                          (64    )         (68      )     (70      )     (18      )     (19       )
Net derivative gains (losses) from economic hedges (4)                3,605            (1,285   )     3,699          4,783          621
Total servicing income, net                                      $    1,873            753            843            (40      )     525
Market-related valuation changes to MSRs and economic hedges     $    1,527            1,031          875            (346     )     75
(2)+(4)
(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.
(3) Represents changes due to collection/realization of expected
cash flows over time.
(4) Represents results from free-standing derivatives (economic
hedges) used to hedge the risk of changes in fair value of MSRs.
(in billions)                                                    Sept. 30,             June 30,       Mar. 31,       Dec. 31,       Sept. 30,
                                                                 2009                  2009           2009           2008           2008
Managed servicing portfolio:
Residential mortgage loans serviced for others (1)               $    1,419            1,394          1,379          1,388          1,323
Owned loans serviced (2)                                              260              270            267            268            96
Total owned servicing of residential mortgage loans                   1,679            1,664          1,646          1,656          1,419
Commercial mortgage loans serviced for others                         458              470            474            472            142
Total owned servicing of loans                                        2,137            2,134          2,120          2,128          1,561
Sub-servicing                                                         21               22             23             26             19
Total managed servicing portfolio                                $    2,158            2,156          2,143          2,154          1,580
Ratio of MSRs to related loans serviced for others                    0.83        %    0.91           0.74           0.87           1.34
Weighted-average note rate (mortgage loans serviced for others)       5.72             5.74           5.83           5.92           5.98
(1) Consists of 1-4 family first mortgage loans.
(2) Consists of residential mortgages held for sale and 1-4 family
first mortgage loans.

Wells Fargo & Company and Subsidiaries
SELECTED FIVE
QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
                                                                 Quarter ended
(in billions)                                                    Sept. 30,     June 30,  Mar. 31,  Dec. 31,  Sept. 30,
                                                                 2009          2009      2009      2008      2008
Application data:
Wells Fargo Home Mortgage first mortgage quarterly applications  $     123     194       190       116       83
Refinances as a percentage of applications                             62    % 73        82        68        39
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at   $     62      90        100       71        41
quarter end
                                                                 Quarter ended
(in billions)                                                    Sept. 30,     June 30,  Mar. 31,  Dec. 31,  Sept. 30,
                                                                 2009          2009      2009      2008      2008
Residential Real Estate Originations: (1)
Wells Fargo Home Mortgage first mortgage loans:
Retail                                                           $     50      71        51        20        23
Correspondent/Wholesale                                                45      57        49        28        25
Home equity loans and lines                                            1       1         1         1         2
Wells Fargo Financial                                                  -       -         -         1         1
Total quarter-to-date                                            $     96      129       101       50        51
Total year-to-date                                               $     326     230       101       230       180
(1) Consists of residential real estate originations from all
Wells Fargo channels.

SOURCE: Wells Fargo & Company

Wells Fargo & Company 
Media 
Mary Eshet, 704-383-7777 
Julia Tunis Bernard, 415-222-3858 
or 
Investors 
Bob Strickland, 415-396-0523 
Jim Rowe, 415-396-8216

FAHE will receive $2.75 million -- a $2.5 million low-cost loan and a $250,000 unrestricted grant. The Selection Committee chose FAHE for its innovation and bold strategy in eliminating substandard housing conditions prevalent in the Central Appalachian region. FAHE is the largest provider of community investment capital in highly distressed Central Appalachia. Last year, FAHE provided $41 million in direct financing and its members produced 3,800 housing units. This figure is on target against FAHE's bold goal to quadruple their performance and achieve 8,000 housing units annually by 2015.

CDFIs are market-driven, private sector institutions dedicated to meeting the financial needs of disadvantaged and hard-to-serve markets nationwide. They include banks, credit unions, loan funds, and venture capital funds. There are more than 700 CDFIs in the United States.

Since 2007, the Wachovia NEXT Awards for Opportunity Finance in partnership with the John D. and Catherine T. MacArthur Foundation, has been run by and funded through OFN with support from the Wachovia Foundation and the John D. and Catherine T. MacArthur Foundation. The program recognizes excellence within the CDFI field and is designed to propel high-potential organizations to a next level of growth, success, and staying power.

A distinguished national selection committee chose the two recipients from a highly competitive field of seven semi-finalist organizations. The award amounts are based on each organization's asset size -- $5.5 million for CDFIs with assets over $50 million and $2.75 for those with assets in the $10-$50 million range.

"Each award recipient has blazed an unlikely trail on solid ground against expectations," said Mark Pinsky, president and CEO of the Philadelphia-based OFN, the leading national network of high-performance CDFIs. "These awards recognize the outstanding achievements and extraordinary future potential of two leading CDFIs. The Wachovia NEXT Awards also spotlight how the entire opportunity finance field benefits our nation's economy through responsible lending, investing, and financial services."

"We congratulate the Community Loan Fund and FAHE on their exceptional accomplishments in helping to transform underserved communities," said Michael Rizer, executive vice president for Wachovia, a Wells Fargo Company. "We're proud to continue our long-standing support for the opportunity finance industry with our investment in the Wachovia NEXT Awards for Opportunity Finance, which helps innovative, up-and-coming CDFIs grow and create even more economic opportunity for families and communities through access to credit."

"The services provided by CDFIs are especially critical today, as the country struggles with the economic crisis and access to capital is constrained," said Debra Schwartz, director of program related investments for the MacArthur Foundation. "We hope these awards will help more policymakers and investors appreciate the vital role that CDFIs play in our financial system and the valuable contributions they are poised to make in the years ahead."

Last year's awardees were IFF, based in Illinois and Homewise, Inc., located in New Mexico. IFF is using its $5.5 million award to support staff investments needed to expand its geographic, financing, and policy reach and to support their goal of doubling financing throughout the five-state region of Illinois, Missouri, Iowa, Indiana, and Wisconsin. Homewise is using its $2.75 million award to build organization infrastructure to expand geographically and replicate its unique, vertically integrated housing model with other CDFIs. They are also expanding their home purchase and improvement loans products in New Mexico.

Headshots of Juliana Eades, president of the Community Loan Fund, and Jim King, president and CEO of FAHE are available at http://www.nextawards.org/news/photos.asp.

SOURCE Opportunity Finance Network

http://www.opportunityfinance.net