Wells Fargo Reports Record Quarterly Revenue, EPS, Net Income



    SAN FRANCISCO, April 17 /CNW/ - Wells Fargo & Company (NYSE:  WFC):

    --  Record diluted earnings per share of $0.66, up 10 percent from prior
year's $0.60, up 13 percent (annualized) from fourth quarter 2006

    --  Record net income of $2.24 billion, up 11 percent from prior year's
$2.02 billion, up 12 percent (annualized) from fourth quarter 2006

    --  Record revenue up 10 percent from prior year

    --  Average loans up 12 percent (annualized) from prior quarter, up 3
percent from prior year; up 13 percent from prior year excluding real estate
1-4 family first mortgages

    --  Average core deposits(a) up 10 percent from prior year, up 9 percent
(annualized) from prior quarter

    --  Net interest margin of 4.95 percent, up 10 basis points from prior
year, up 2 basis points from prior quarter

    
                                                            Quarter ended
                                   ---------------------------------------
                                   Mar. 31,       Dec. 31,        Mar. 31,
                                      2007           2006            2006
                                   --------       --------        --------
    Earnings
    Diluted earnings per share      $ 0.66         $ 0.64          $ 0.60
    Net income (in billions)          2.24           2.18            2.02

    Asset Quality
    Net charge-offs as % of avg.
     total loans                      0.90%          0.92%           0.56%
    Nonperforming assets as %
     of total loans                   0.82           0.76            0.60

    Other
    Revenue (in billions)           $ 9.44         $ 9.41          $ 8.56
    Average loans (in billions)      321.4          312.2           311.1
    Average core deposits(a)
     (in billions)                   290.6          283.8           257.5
    Net interest margin               4.95%          4.93%           4.85%
    

    (a) See Footnote 2 to Summary Financial Data.

    Wells Fargo & Company (NYSE:  WFC) reported record diluted earnings per
common share of $0.66 for first quarter 2007, up 10 percent from $0.60 in
first quarter 2006. Net income was a record $2.24 billion, up 11 percent from
$2.02 billion in first quarter 2006.

    "Once again, our talented team delivered outstanding, industry-leading
results with solid double-digit growth in revenue, net income and earnings per
share," said Chairman and CEO Dick Kovacevich. "We achieved this broad-based,
record breaking performance despite a downturn in some housing markets and a
flat to inverted yield curve because our team members, guided by our vision
and values, are relentlessly focused on satisfying all our customers'
financial needs and helping them succeed financially. By collaborating
together effectively as 'One Wells Fargo,' they're also, instinctively and
naturally, putting what's best for the customer first and thus making it
easier and adding greater value for our customers to do more business with us.
As a result of our outstanding financial performance and conservative risk
management, Wells Fargo Bank, N.A. is now the only U.S. bank, and one of only
two worldwide, to have the highest credit rating from both Moody's Investors
Service and Standard & Poor's Ratings Services."

    Financial Performance

    Diluted earnings per share were a record $0.66, up 10 percent from $0.60
earned in first quarter 2006 and up 13 percent (annualized) from $0.64 in
fourth quarter 2006. "We are very pleased to report, once again, solid,
double-digit growth and record results," said Chief Financial Officer Howard
Atkins. "In the last five years, Wells Fargo has grown earnings per share at a
double-digit pace in 17 of the past 20 quarters. The results in first quarter
2007 were notable for the balance across our broadly diverse business
segments, for continued improvement in operating margins, and for a modest
decline in net credit losses from fourth quarter levels. In terms of business
performance, growth was once again well balanced between consumer and
commercial with most of our 80 plus businesses producing double-digit earnings
or revenue growth in the quarter. In terms of operating margins, net interest
margin improved to 4.95 percent, up 10 basis points from a year ago; return on
assets, which includes credit costs, improved to 1.89 percent, up 17 basis
points from a year ago; operating leverage was positive with revenue growth of
10 percent exceeding 9 percent expense growth; and return on equity remained
strong at 19.7 percent, among the best in the industry. Earnings growth and
operating margins were solid and improved in first quarter, despite an
increase in nonperforming assets and credit charge-offs from a year ago,
reflecting in large part our ongoing discipline in managing our businesses and
balance sheet for industry-leading risk-adjusted returns."

    Revenue

    Revenue of $9.4 billion was another record, up $886 million, or 10
percent, from a year ago. "Community Banking and Wholesale Banking revenue
growth was 12 percent and 15 percent, respectively, reflecting the strength
and balance of our business model," said Atkins. Businesses with double-digit,
or near double-digit, year-over-year revenue growth included commercial
banking, asset-based lending, asset management, international/trade finance,
capital markets, real estate brokerage, business direct, wealth management,
card services, home equity lending, personal credit management, corporate
trust and home mortgage. Year-over-year revenue growth was driven by growth in
net interest income and particularly strong increases in fee income across
products and services, reflecting continued growth in cross-sell. "Given the
deterioration in the nonprime mortgage market during the first quarter, we
took a number of actions that reduced revenue by approximately $90 million
(pre tax), including reducing the carrying value of all nonprime loans in our
mortgage warehouse and providing for additional estimated early payment
default losses on securitized mortgages. In addition, given the decline in
mortgage rates during the quarter, revenue was reduced by $34 million (pre
tax) reflecting the decline in the value of mortgage servicing rights net of
hedging," said Atkins.

    Loans

    Average loans increased $10.3 billion, or 3 percent, to $321.4 billion
from a year ago. Excluding real estate 1-4 family first mortgages -- the loan
category affected by the sales of adjustable rate mortgages (ARMs) last year
-- total average loans grew by $30.2 billion, or 13 percent, from first
quarter 2006. On a linked-quarter basis, average total loans grew $9.3
billion, or 12 percent (annualized). Since the ARM sales were completed prior
to fourth quarter 2006, the 12 percent (annualized) linked-quarter loan growth
was not impacted by any ARM sales.

    Average commercial and commercial real estate loans increased $12.3
billion, or 11 percent, from first quarter 2006 and increased $3.5 billion, or
12 percent (annualized), from fourth quarter 2006, marking the 10th
consecutive quarter of double-digit, year-over-year commercial loan growth.
Middle market lending, specialized financial services, commercial real estate,
small business lending (Business Direct) and asset-based lending all had
double-digit loan growth from first quarter 2006.

    Average consumer loans decreased $2.8 billion from first quarter 2006 due
to the previous sales of ARMs. Excluding real estate 1-4 family first
mortgages, average consumer loans increased $17.1 billion, or 14 percent, from
a year ago. Average real estate 1-4 family junior lien mortgages, credit card,
and other revolving credit and installment loans grew at double-digit rates
from a year ago. On a linked-quarter basis, average consumer loans grew 12
percent (annualized).

    Deposits

    Average core deposits increased $33.1 billion, or 13 percent, to $290.6
billion year over year and increased 10 percent (annualized) on a
linked-quarter basis. Core deposits now include certain funds that were
previously swept into non-deposit products. Including only the growth in these
funds from the date of conversion to deposits, average core deposits grew 10
percent year over year and 9 percent (annualized) on a linked-quarter basis.

    Average mortgage escrow deposits were $20.6 billion, up $5.1 billion from
first quarter 2006 and up $0.4 billion on a linked-quarter basis. Average
retail core deposits grew $9.9 billion, or 5 percent, from first quarter 2006
and increased $3.7 billion, or 7 percent (annualized), on a linked-quarter
basis. Average net new consumer checking accounts grew 5.2 percent from first
quarter 2006.

    Net Interest Income

    Net interest income increased 3 percent from first quarter 2006 driven by
a one percent increase in average earnings assets and a 10 basis point
increase in the net interest margin. The completion of the sales of ARMs and
lower-yielding investment securities last year reduced the earning asset
growth rate year over year, but also helped boost net interest margin. Net
interest margin continued to benefit from growth in core deposits. On a
linked-quarter basis, net interest income was down $40 million, or 3 percent
(annualized), largely due to two fewer days in the quarter, and a decline in
the mortgage loan warehouse. On a linked-quarter basis, net interest margin
increased two basis points to 4.95 percent.

    Noninterest Income

    Noninterest income increased $746 million, or 20 percent, from first
quarter 2006. "Growth in fee income was strong across the board, reflecting
our ongoing success in cross-selling products and services to both consumer
and commercial relationships," said Atkins. Deposit service fees rose 10
percent reflecting solid growth in deposit balances and accounts; trust and
investment fees rose 10 percent reflecting increases in equity/bond markets
from a year ago and success in building new wealth management relationships;
debit and credit card fees rose 22 percent reflecting deeper penetration rates
and increased activity; insurance fees rose 10 percent reflecting higher
sales; and mortgage banking fee income increased due to an increase in
originations and a 41 percent increase in gross servicing income, including
the $140 billion servicing portfolio acquired last year. Capital markets
activities were generally strong in the quarter, although at $97 million,
equity gains were $88 million below 2006 average quarterly gains of $185
million. In line with its asset/liability management process, the Company sold
$4 billion of its lowest-yielding bonds in the quarter at a gain of $29
million. At March 31, 2007, the net unrealized gain on securities available
for sale was $948 million.

    Noninterest Expense

    Noninterest expense was up $452 million, or 9 percent, from first quarter
2006. In the last 12 months, the Company opened 104 retail banking stores and
added 7,600 team members (full-time equivalents). On a linked-quarter basis,
noninterest expense increased $115 million, or 9 percent (annualized).
Expenses in first quarter 2007 included $50 million of stock option expense,
$29 million of seasonal FICA expenses and $16 million of acquisition-related
integration costs.

    Income Taxes

    On January 1, 2007, the Company adopted FASB Interpretation No. 48,
Accounting for Uncertainty in Income Taxes (FIN 48). Implementation of FIN 48
did not result in a cumulative effect adjustment to retained earnings. At
January 1, 2007, the total amount of unrecognized tax benefits was $3.1
billion, of which $1.4 billion related to tax benefits that, if recognized,
would not impact the annual effective tax rate. During the quarter, $119
million of net tax benefits were recorded, primarily reflecting the resolution
of certain outstanding Federal income tax matters.

    Credit Quality

    "First quarter 2007 credit results were in line with our expectations,"
said Chief Credit Officer Mike Loughlin. First quarter 2007 net credit losses
were $715 million (0.90 percent of average loans, annualized), down from $726
million (0.92 percent) in fourth quarter 2006, and up from $433 million (0.56
percent) in first quarter 2006, which was positively impacted by historically
low personal bankruptcies after the fourth quarter 2005 bankruptcy spike
caused by the then impending change in the bankruptcy law.

    "We are pleased that auto related losses, while still at historically
elevated levels, have stabilized, and our intensive management efforts, in
both collections and underwriting, resulted in lower first quarter loss rates
compared with third and fourth quarter 2006," said Loughlin. "Total 30 day or
greater auto delinquency balances have declined about 25 percent from peak
December 2006 levels due to seasonality and improved collections. Losses
remained at predicted levels in our consumer unsecured and small business
portfolios, and we continued to experience historically low losses in our
commercial portfolios.

    "We are experiencing higher losses in our home equity portfolio relative
to the historically low and unsustainable levels experienced in 2006. We see
particular stress in certain regional markets and in loans acquired from
correspondents. We have tightened our underwriting standards and are focusing
additional collections resources on targeted portfolio segments. We expect
higher but manageable losses throughout 2007 in the home equity portfolio.

    "With the well-publicized disruption in the nonprime residential real
estate market, let me highlight a few important facts about Wells Fargo's
nonprime mortgages. The vast majority of nonprime mortgages originated at
Wells Fargo Home Mortgage are sold to the secondary market. Most nonprime
loans held on our balance sheet were offered through Wells Fargo Financial.
Most of these loans were debt consolidation refinances to help the customer
improve their financial situation. We conduct a tangible benefits test for
each loan, and we do not offer negative amortization products. Approximately
half these loans are fixed rate and we underwrite all loans to the customer's
ability to afford current and projected payments based on a fully indexed
rate. All of these loans at Wells Fargo Financial were originated by team
members; none were from third party brokers or correspondents.

    "We conservatively underwrite Wells Fargo Financial real estate secured
loans. Income is verified for all borrowers; there are no reduced
documentation or stated income programs. Borrowers must have what we call
minimum 'residual' income or cash flow after all debt service to qualify for
these loans. While we are confident our portfolio will continue to perform
better than the industry, we purchased private mortgage insurance on higher
loan-to-value loans to mitigate our risk. Our total residential real estate
portfolio is geographically diverse and we believe the portfolio has a minimal
amount of adjustable mortgage rate reset risk in the next 12 months."

    Total nonperforming assets were $2.67 billion (0.82 percent of loans) at
March 31, 2007 compared with $2.42 billion (0.76 percent) at December 31, 2006
and $1.85 billion (0.60 percent) one year ago, including, respectively, $381
million, $322 million, and $227 million of Government National Mortgage
Association (GNMA) repurchased loans, fully insured or guaranteed. "Commercial
nonperforming assets continued to be at historically low levels, and our loan
impairment analysis indicates only modest loss potential," said Loughlin. "We
are constantly monitoring residential mortgage and auto nonperforming levels
and have active programs to determine the best strategy to hold and workout or
sell these assets."

    The total of loans 90 days or more past due and still accruing was $4.81
billion, $5.07 billion and $3.41 billion at March 31, 2007, December 31, 2006,
and March 31, 2006, respectively. For the same periods, the total included
$3.68 billion, $3.91 billion and $2.68 billion, respectively, in advances
pursuant to our servicing agreements to GNMA mortgage pools whose repayments
are insured by the Federal Housing Administration or guaranteed by the
Department of Veterans Affairs.

    
    Loans 90 Days or More Past Due and Still Accruing
    (Excluding Insured/Guaranteed GNMA Balances)

                                        Mar. 31,      Dec. 31,    Mar. 31,
    (in millions)                          2007          2006        2006
                                        --------      --------    --------
    Commercial and commercial
     real estate:
       Commercial                          $ 29          $ 15        $ 17
       Other real estate mortgage             4             3           4
       Real estate construction               5             3          13
                                        --------      --------    --------
          Total commercial and
           commercial real estate            38            21          34
    Consumer:
       Real estate 1-4 family
        first mortgage                      159           154          92
       Real estate 1-4 family
        junior lien mortgage                 64            63          47
       Credit card                          272           262         158
       Other revolving credit
        and installment                     560           616         364
                                        --------      --------    --------
          Total consumer                  1,055         1,095         661
    Foreign                                  36            44          37
                                        --------      --------    --------
              Total                     $ 1,129       $ 1,160       $ 732
                                        --------      --------    --------
    

    Business Segment Performance

    Wells Fargo has three lines of business for management reporting:
Community Banking, Wholesale Banking and Wells Fargo Financial. Net income for
each of the three business segments was:

    
                                             First Quarter               %
                                     ---------------------
           (in millions)                2007          2006          Change
                                     -------       -------          ------
           Community Banking          $1,532        $1,210             27%
           Wholesale Banking             598           528             13
           Wells Fargo Financial         114           280            (59)
    

    "As 'One Wells Fargo,' our team continues to focus on working together to
satisfy all of our customers' financial needs," said President and COO John
Stumpf. "Yet again this quarter we saw the tremendous power of our diversified
business model as our Company produced strong, broad-based results. Our
customers are deepening their relationships with us, adding products and
services, as illustrated by a new record in consumer cross-sell this quarter.
At the same time, we continued to see significant improvement in customer
loyalty and satisfaction measures."

    More financial information about the business segments can be found in
table entitled FIVE QUARTER OPERATING SEGMENT RESULTS.

    Community Banking offers a complete line of diversified financial
products and services for consumers and small businesses including investment,
insurance and trust services primarily in 23 midwestern and western states,
and mortgage and home equity loans in all 50 states.

    
    Selected Financial Information

                                              First Quarter              %
                                       --------------------
    (in millions)                         2007         2006         Change
                                       -------      -------         ------
    Total revenue                      $ 6,071      $ 5,399            12%
    Provision for credit losses            306          189            62
    Noninterest expense                  3,640        3,387             7
    Net income                           1,532        1,210            27
    Average loans (in billions)          180.8        190.4            (5)
    Average assets (in billions)         307.0        314.8            (2)
    

    

    -- Wealth Management Group Highlights
           -- Revenue up 12 percent from prior year
           -- Brokerage assets under administration up 17 percent from
              prior year
           -- Brokerage revenue up 25 percent from prior year
           -- Private bankers up 13 percent from prior year to 800 at
              March 31, 2007

    -- Internet Highlights
           -- Active online consumers of 9.0 million, up 18 percent from
              prior year, reaching 63 percent of consumer checking
              accounts
           -- Bill payment and presentment customers of 5.1 million, up
              38 percent from prior year
           -- 880,000 active online small business customers, up
              24 percent from prior year
    

    Community Banking reported net income of $1.53 billion, up 27 percent
from first quarter 2006 due primarily to growth in retail banking and home
mortgage net income. Net interest income declined $32 million, or 1 percent,
compared with first quarter 2006, due to a decline in earning assets that
resulted from sales of ARMs at the end of first quarter 2006. The decline
related to ARM sales was partially offset by an improvement in net interest
margin of 21 basis points to 5.03 percent in first quarter 2007, despite
pressures from the flat-to-inverted yield curve. Noninterest income increased
$704 million, or 33 percent, compared with first quarter 2006. The growth was
due primarily to higher fee income related to mortgage and consumer loans,
cards, brokerage and deposit service charges. Noninterest expense increased
$253 million, or 7 percent, primarily due to growth in personnel expenses,
while the provision for credit losses increased $117 million, or 62 percent,
primarily due to higher losses in credit card and equity lending.

    Regional Banking Highlights

    
    -- Core product solutions (sales) of 4.96 million, up 13 percent from
       prior year on a comparable basis
    -- Record retail bank household cross-sell of 5.3 products per retail
       bank household
    -- Sales of Wells Fargo Packages(R) (a checking account and at least
       three other products) up 29 percent from prior year
    -- Net consumer checking accounts up 5.2 percent from prior year
    -- Store-based customer loyalty scores continued to improve, up
       12 percent from prior year
    -- Business Banking
         -- Store-based business solutions up 19 percent from prior year
            on a comparable basis
         -- Loans to small businesses (loans primarily less than $100,000
            on our Business Direct platform) grew 19 percent from prior
            year
         -- Net business checking accounts up 4.5 percent from prior year
         -- Business Banking household cross-sell at 3.4, up from 3.0 in
            prior year
    

    "Our highly-engaged, talented and hard-working team members continued to
make progress on delivering a great experience for our customers," said Carrie
Tolstedt, group EVP, Community Banking. "We had another strong quarter, with
4.96 million core product solutions provided to customers, up 13 percent from
prior year on a comparable basis. Our retail bank household cross-sell rose to
a record high of 5.3, and 65 percent of new checking account customers
purchased Wells Fargo Packages. We've conducted more than 1.6 million
store-based customer surveys since January 2004, and we continue to perform
50,000 surveys per month. For customers transacting at the teller line,
welcoming and wait time survey scores were up 20 percent and customer loyalty
scores improved 12 percent from same period last year. During first quarter,
we also opened 18 banking stores, added 57 new webATM(R) machines and
converted 151 ATMs in Central California to Envelope-Free(SM) webATM machines
to better serve our customers."

    Home Mortgage and Home Equity Highlights

    --  Mortgage originations of $68 billion, up 3 percent from prior year

    --  Mortgage applications of $113 billion, up 19 percent from prior year

    --  Mortgage application pipeline of $57 billion, up 19 percent from
prior quarter

    --  Record owned mortgage servicing portfolio of $1.40 trillion, up 34
percent from prior year and up 9 percent (annualized) from prior quarter

    --  National Home Equity Group portfolio of $79 billion

    "Our culture of conservative underwriting of nonprime credit and a very
strong commitment to fair and responsible lending to customers across the
credit spectrum has served us well in these turbulent times in the mortgage
industry," said Mark Oman, senior EVP, Home and Consumer Finance Group. "Wells
Fargo's responsible lending principles, with a focus on the consumer's ability
to repay, and setting loan terms and features that are appropriate to the
consumer's circumstances have resulted in significantly better credit
performance than the majority of the competitors in the industry. However,
given the current uncertainties in the housing and capital markets, Home
Mortgage has further tightened its underwriting guidelines. Loans underwritten
prior to these guideline changes were either sold or marked to market during
the quarter and have been fully reflected in first quarter results. Nonprime
applications of $7.4 billion were down 15 percent on a linked-quarter basis,
reflecting the underwriting changes made during the quarter.

    "With prime mortgage rates in the 6.00-6.25 percent range, the issues
confronting the nonprime segment did not dampen demand for prime mortgages. In
fact, total first quarter 2007 application volume of $113 billion was up 26
percent on a linked-quarter basis. Prime applications of $105.1 billion were
up 29 percent on a linked-quarter basis."

    Wholesale Banking serves customers coast to coast, including middle
market banking, corporate banking, commercial real estate, treasury
management, asset-based lending, insurance brokerage, foreign exchange, trade
services, specialized lending, equipment finance, capital markets activities
and institutional investments.

    
    Selected Financial Information

                                                 First Quarter           %
                                           -------------------
    (in millions)                             2007        2006      Change
                                           -------     -------      ------
    Total revenue                          $ 2,046     $ 1,776         15%
    Provision (reversal
     of provision) for credit losses            13          (2)        --
    Noninterest expense                      1,137         992         15
    Net income                                 598         528         13
    Average loans (in billions)               77.9        67.6         15
    Average assets (in billions)             101.0        95.9          5
    

    --  Eastdil Secured represented Blackstone Group in its purchase of
Equity Office Properties Trust

    --  Electronic collection transactions surpassed paper collection
transactions for the first time in February

    --  Desktop Deposit(R) service named Computerworld magazine's "Best in
Class for 2007"

    "The Wholesale Banking team achieved strong results across a broad
spectrum of business lines," said Dave Hoyt, senior EVP, Wholesale Banking
Group. "We continue to deliver a wide range of products and services to our
customers through robust sales and distribution teams.

    "After integrating recent acquisitions with our existing funds business,
half of our mutual funds were in Lipper's top two quintiles for performance
over the three year period ending February 28, 2007. We're making strong gains
in the asset management business, with 11 percent growth in assets under
management year over year and now have the third-largest bank-owned portfolio
of mutual funds.

    "Our customers continue to transition from paper to electronic financial
services; their electronic collections surpassed paper collections for the
first time in February. Active users of our Commercial Electronic Office(R)
portal were up nearly 30 percent from the same period last year. Checks
processed electronically through our internet-based industry-leading remote
Desktop Deposit service during the quarter totaled $38 billion. With Wells
Fargo, business customers of every size and type can successfully and
affordably share in the benefits of the paper-to-electronic evolution."

    Wholesale Banking reported net income of $598 million in first quarter
2007, up 13 percent from a year ago. Revenue increased 15 percent, driven by
strong loan and deposit growth and higher fee income. Average loans reached
$78 billion, up 15 percent from first quarter 2006, with double digit
increases across nearly all wholesale lending businesses. Average deposits
grew $25 billion, all in interest-bearing balances, reflecting a mix of
organic growth and the conversions in 2006 of customer sweep accounts from
off-balance sheet money market funds into Wells Fargo deposits. Noninterest
income increased $169 million due to higher trust and investment income,
insurance revenue, commercial real estate brokerage fees and capital markets
activity. Noninterest expense increased $145 million mainly from higher
personnel-related costs including team member additions and higher incentive
payments, along with higher expenses from our acquisitions, expenses related
to higher sales volumes and investments in new offices, businesses and
systems. On a linked-quarter basis, Wholesale Banking net income rose $90
million, or 18 percent, driven by capital markets activity and seasonality in
our insurance businesses.

    Wells Fargo Financial offers consumer loans primarily through real
estate-secured debt consolidation products, automobile financing, consumer and
private-label credit cards and commercial services to consumers and businesses
throughout the United States, Canada, Puerto Rico and the Pacific Rim.

    
    Selected Financial Information

                                                 First Quarter         %
                                           -------------------
    (in millions)                             2007        2006    Change
                                           -------     -------    ------
    Total revenue                          $ 1,324     $ 1,380        (4)%
    Provision for credit losses                396         246        61
    Noninterest expense                        749         695         8
    Net income                                 114         280       (59)
    Average loans (in billions)               62.7        53.1        18
    Average assets (in billions)              68.3        58.7        16
    

    

    -- Average loans up 18 percent from first quarter 2006
         -- Real estate-secured receivables up 20 percent to $23.6 billion
         -- Auto finance receivables up 23 percent to $27.6 billion
    

    "Net income decreased over the first quarter of 2006 because of the $127
million gain we realized on the sale of our consumer lending business in
Puerto Rico a year ago, plus the higher provision we took for credit losses
this year," said Tom Shippee, Wells Fargo Financial president and CEO. "The
higher credit losses year over year were due, in part, to lower than normal
bankruptcy charge-offs and higher recoveries early in 2006. Additionally, the
auto lending losses were up from a year ago, but declined on a linked-quarter
basis.

    "Our real estate lending business remained on solid ground. Wells Fargo
Financial's real estate-secured lending portfolio performed well in a quarter
when many other companies' nonprime lending businesses suffered. We attribute
our strong credit quality to our disciplined business model and underwriting
at Wells Fargo Financial, where we do not offer riskier residential real
estate products such as teaser rates, stated-income loans and no documentation
loans. Real estate delinquencies continued to be within our expectations,
well-below industry trends and showed improvement over the fourth quarter.

    "In terms of auto lending -- our other large business -- we continued to
make steady progress as a result of changes we implemented in the second half
of 2006 to reduce delinquencies and charge-offs. Improved processes, reduced
originations -- intended to improve collections capacity -- and increased
staffing levels in collections have all had a positive impact. These changes
in the auto business resulted in decreased losses of $27 million in the first
quarter and an improvement of approximately 25 percent in the auto portfolio's
30-plus day delinquency rates."

    Wells Fargo Financial reported net income of $114 million, down 59
percent from a year ago. Revenue of $1.32 billion was driven by an increase in
net interest income from continued growth in the real estate and auto loan
portfolios. Revenue decreased $56 million from first quarter 2006, despite
growth in net interest income, because of the gain in first quarter 2006 from
the sale of the Puerto Rican business. Average loans grew 18 percent to $62.7
billion. Noninterest expense was $749 million, up 8 percent from first quarter
2006, driven by normal annual increases in personnel costs, as well as the
staffing level increases in collections and other investments in business
processes.

    Recorded Message

    A recorded message reviewing Wells Fargo's results and characteristics of
several of the loan portfolios will be available at 5:30 a.m. Pacific Time
through April 20, 2007. Dial 877-660-6853 (domestic) or 201-612-7415
(international). Enter the account number 286 and conference ID 236054#. The
call is also available on the internet at www.wellsfargo.com/ir and
http://www.vcall.com/IC/CEPage.asp?ID=115230.

    The following appears in accordance with the Private Securities
Litigation Reform Act of 1995:

    This news release contains forward-looking statements about the Company,
including statements about credit quality and credit loss potential generally
and specifically the statements that we expect higher but manageable losses in
our home equity loan portfolio throughout 2007, that we believe our
residential real estate loan portfolio has a minimal amount of adjustable
mortgage rate reset risk in the next 12 months, and that we are confident that
our Wells Fargo Financial real estate secured loan portfolio will continue to
perform better than the industry generally. Do not unduly rely on
forward-looking statements. They give our expectations about the future and
are not guarantees. Forward-looking statements speak only as of the date they
are made, and we do not undertake any obligation to update them to reflect
changes that occur after that date.

    There are a number of factors that could cause results to differ
significantly from our expectations, including a deterioration of the credit
quality of our home equity and real estate loan portfolios due to higher
interest rates, increased unemployment, a decline in home values or other
economic factors. For a discussion of factors that may cause actual results to
differ from expectations, refer to our Annual Report on Form 10-K for the year
ended December 31, 2006, including information incorporated into the Form 10-K
from our 2006 Annual Report to Stockholders, filed as Exhibit 13 to the Form
10-K.

    Any factor described in this news release or in any document referred to
in this news release could, by itself or together with one or more other
factors, adversely affect the Company's business, earnings and/or financial
condition.

    Wells Fargo & Company is a diversified financial services company with
$486 billion in assets, providing banking, insurance, investments, mortgage
and consumer finance through more than 6,000 stores and the internet
(wellsfargo.com) across North America and internationally. Wells Fargo Bank,
N.A. is the only bank in the U.S., and one of only two banks worldwide, to
have the highest credit rating from both Moody's Investors Service, "Aaa," and
Standard & Poor's Ratings Services, "AAA."

    
    Wells Fargo & Company and Subsidiaries
    SUMMARY FINANCIAL DATA
    ----------------------------------------------------------------------
                                                                 % Change
                                          Quarter ended Mar. 31, 2007 from
                          ----------------------------- ------------------
    ($ in millions,
     except per share     Mar. 31,  Dec. 31,  Mar. 31,  Dec. 31,  Mar. 31,
     amounts)               2007      2006      2006      2006      2006
    ----------------------------------------------------------------------

    For the Quarter
    Net income              $2,244    $2,181    $2,018         3%      11%
    Diluted earnings per
     common share             0.66      0.64      0.60         3       10

    Profitability ratios
     (annualized):
      Net income to
       average total
       assets (ROA)           1.89%     1.79%     1.72%        6       10
      Net income to
       average
       stockholders'
       equity (ROE)          19.65     18.99     19.89         3       (1)

    Efficiency ratio (1)      58.5      57.5      59.3         2       (1)

    Total revenue           $9,441    $9,413    $8,555        --       10

    Dividends declared
     per common share         0.28      0.28      0.26        --        8

    Average common shares
     outstanding           3,376.0   3,379.4   3,358.3        --        1
    Diluted average
     common shares
     outstanding           3,416.1   3,424.0   3,395.7        --        1

    Average loans         $321,429  $312,166  $311,132         3        3
    Average assets         482,105   482,585   475,195        --        1
    Average core deposits
     (2)                   290,586   283,790   257,466         2       13
    Average retail core
     deposits (3)          223,729   220,025   213,876         2        5

    Net interest margin       4.95%     4.93%     4.85%       --        2

    At Quarter End
    Securities available
     for sale              $45,443   $42,629   $51,195         7      (11)
    Loans                  325,487   319,116   306,676         2        6
    Allowance for loan
     losses                  3,772     3,764     3,845        --       (2)
    Goodwill                11,275    11,275    11,050        --        2
    Assets                 485,901   481,996   492,428         1       (1)
    Core deposits (2)      296,469   288,068   263,136         3       13
    Stockholders' equity    46,135    45,876    41,961         1       10

    Capital ratios:
      Stockholders'
       equity to assets       9.49%     9.52%     8.52%       --       11
      Risk-based capital
       (4)
        Tier 1 capital        8.71      8.95      8.30        (3)       5
        Total capital        12.11     12.50     11.49        (3)       5
      Tier 1 leverage (4)     7.83      7.89      7.13        (1)      10

    Book value per common
     share                  $13.77    $13.58    $12.50         1       10

    Team members (active,
     full-time
     equivalent)           159,600   158,000   152,000         1        5

    Common Stock Price
    High                    $36.64    $36.99    $32.76        (1)      12
    Low                      33.01     34.90     30.31        (5)       9
    Period end               34.43     35.56     31.94        (3)       8

    ----------------------------------------------------------------------

    (1)The efficiency ratio is noninterest expense divided by total
     revenue (net interest income and noninterest income).
    (2)Core deposits are noninterest-bearing deposits, interest-bearing
     checking, savings certificates, market rate and other savings, and
     certain foreign deposits (Eurodollar sweep balances). During 2006,
     certain customer accounts (largely Wholesale Banking) were converted
     to deposit balances in the form of Eurodollar sweep accounts from
     off-balance sheet money market funds and repurchase agreements.
     Included in average core deposits were converted balances of $9,888
     million, $8,888 million and $1,234 million for the quarters ended
     March 31, 2007, December 31, 2006, and March 31, 2006, respectively.
     Average core deposits increased 10% from first quarter 2006 and 9%
     (annualized) from fourth quarter 2006, not including these converted
     balances.
    (3)Retail core deposits are total core deposits excluding Wholesale
     Banking core deposits and retail mortgage escrow deposits.
    (4)The March 31, 2007, ratios are preliminary.
    

    
    Wells Fargo & Company and Subsidiaries
    FIVE QUARTER SUMMARY FINANCIAL DATA
    ----------------------------------------------------------------------
                                                             Quarter ended
                         -------------------------------------------------
    ($ in millions,
     except per share    Mar. 31,  Dec. 31,  Sept. 30, June 30,  Mar. 31,
     amounts)              2007      2006      2006      2006      2006
    ----------------------------------------------------------------------

    For the Quarter
    Net income             $2,244    $2,181    $2,194    $2,089    $2,018
    Diluted earnings per
     common share            0.66      0.64      0.64      0.61      0.60

    Profitability ratios
     (annualized):
      Net income to
       average total
       assets (ROA)          1.89%     1.79%     1.76%     1.71%     1.72%
      Net income to
       average
       stockholders'
       equity (ROE)         19.65     18.99     20.00     19.76     19.89

    Efficiency ratio (1)     58.5      57.5      56.9      58.9      59.3

    Total revenue          $9,441    $9,413    $8,934    $8,789    $8,555

    Dividends declared
     per common share        0.28      0.28        --      0.54      0.26

    Average common
     shares outstanding   3,376.0   3,379.4   3,371.9   3,363.8   3,358.3
    Diluted average
     common shares
     outstanding          3,416.1   3,424.0   3,416.0   3,404.4   3,395.7

    Average loans        $321,429  $312,166  $303,980  $300,388  $311,132
    Average assets        482,105   482,585   494,679   491,456   475,195
    Average core
     deposits (2)         290,586   283,790   269,725   264,129   257,466
    Average retail core
     deposits (3)         223,729   220,025   214,294   214,904   213,876

    Net interest margin      4.95%     4.93%     4.79%     4.76%     4.85%

    At Quarter End
    Securities available
     for sale             $45,443   $42,629   $52,635   $71,420   $51,195
    Loans                 325,487   319,116   307,491   300,622   306,676
    Allowance for loan
     losses                 3,772     3,764     3,799     3,851     3,845
    Goodwill               11,275    11,275    11,192    11,091    11,050
    Assets                485,901   481,996   483,441   499,516   492,428
    Core deposits (2)     296,469   288,068   270,818   268,350   263,136
    Stockholders' equity   46,135    45,876    44,862    41,894    41,961

    Capital ratios:
      Stockholders'
       equity to assets      9.49%     9.52%     9.28%     8.39%     8.52%
      Risk-based capital
       (4)
        Tier 1 capital       8.71      8.95      8.74      8.35      8.30
        Total capital       12.11     12.50     12.34     11.82     11.49
      Tier 1 leverage
       (4)                   7.83      7.89      7.41      6.99      7.13

    Book value per
     common share          $13.77    $13.58    $13.30    $12.46    $12.50

    Team members
     (active, full-time
     equivalent)          159,600   158,000   156,400   154,300   152,000

    Common Stock Price
    High                   $36.64    $36.99    $36.89    $34.86    $32.76
    Low                     33.01     34.90     33.36     31.90     30.31
    Period end              34.43     35.56     36.18     33.54     31.94

    ----------------------------------------------------------------------

    (1)The efficiency ratio is noninterest expense divided by total
     revenue (net interest income and noninterest income).
    (2)Core deposits are noninterest-bearing deposits, interest-bearing
     checking, savings certificates, market rate and other savings, and
     certain foreign deposits (Eurodollar sweep balances). During 2006,
     certain customer accounts (largely Wholesale Banking) were converted
     to deposit balances in the form of Eurodollar sweep accounts from
     off-balance sheet money market funds and repurchase agreements.
     Included in average core deposits were converted balances of $9,888
     million, $8,888 million, $3,343 million, $2,771 million and $1,234
     million for the quarters ended March 31, 2007, December 31, 2006,
     September 30, 2006, June 30, 2006, and March 31, 2006, respectively.
    (3)Retail core deposits are total core deposits excluding Wholesale
     Banking core deposits and retail mortgage escrow deposits.
    (4)The March 31, 2007, ratios are preliminary.
    

    
    Wells Fargo & Company and Subsidiaries
    CONSOLIDATED STATEMENT OF INCOME
    ----------------------------------------------------------------------
                                                     Quarter ended
                                                          March 31,      %
                                                  -----------------
    (in millions, except per share amounts)        2007     2006    Change
    ----------------------------------------------------------------------

    INTEREST INCOME
    Trading assets                                    $53      $69   (23)%
    Securities available for sale                     686      663      3
    Mortgages held for sale                           530      609    (13)
    Loans held for sale                                15       11     36
    Loans                                           6,764    6,110     11
    Other interest income                              91       70     30
                                                  -------- --------
         Total interest income                      8,139    7,532      8
                                                  -------- --------

    INTEREST EXPENSE
    Deposits                                        1,857    1,482     25
    Short-term borrowings                             136      270    (50)
    Long-term debt                                  1,136      910     25
                                                  -------- --------
         Total interest expense                     3,129    2,662     18
                                                  -------- --------

    NET INTEREST INCOME                             5,010    4,870      3
    Provision for credit losses                       715      433     65
                                                  -------- --------
    Net interest income after provision for
     credit losses                                  4,295    4,437     (3)
                                                  -------- --------

    NONINTEREST INCOME
    Service charges on deposit accounts               685      623     10
    Trust and investment fees                         731      663     10
    Card fees                                         470      384     22
    Other fees                                        511      488      5
    Mortgage banking                                  790      415     90
    Operating leases                                  192      201     (4)
    Insurance                                         399      364     10
    Net gains (losses) on debt securities
     available for sale                                31      (35)    --
    Net gains from equity investments                  97      190    (49)
    Other                                             525      392     34
                                                  -------- --------
         Total noninterest income                   4,431    3,685     20
                                                  -------- --------

    NONINTEREST EXPENSE
    Salaries                                        1,867    1,672     12
    Incentive compensation                            742      668     11
    Employee benefits                                 665      589     13
    Equipment                                         337      335      1
    Net occupancy                                     365      336      9
    Operating leases                                  153      161     (5)
    Other                                           1,397    1,313      6
                                                  -------- --------
         Total noninterest expense                  5,526    5,074      9
                                                  -------- --------

    INCOME BEFORE INCOME TAX EXPENSE                3,200    3,048      5
    Income tax expense                                956    1,030     (7)
                                                  -------- --------

    NET INCOME                                     $2,244   $2,018     11
                                                  -------- --------

    EARNINGS PER COMMON SHARE                       $0.66    $0.60     10

    DILUTED EARNINGS PER COMMON SHARE               $0.66    $0.60     10

    DIVIDENDS DECLARED PER COMMON SHARE             $0.28    $0.26      8

    Average common shares outstanding             3,376.0  3,358.3      1
    Diluted average common shares outstanding     3,416.1  3,395.7      1

    ----------------------------------------------------------------------
    

    
    Wells Fargo & Company and Subsidiaries
    FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
    ----------------------------------------------------------------------
                                                             Quarter ended
                             ---------------------------------------------
    (in millions, except per Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
     share amounts)            2007     2006     2006      2006     2006
    ----------------------------------------------------------------------

    INTEREST INCOME
    Trading assets               $53      $46       $45      $65      $69
    Securities available for
     sale                        686      726     1,014      875      663
    Mortgages held for sale      530      627       702      808      609
    Loans held for sale           15       13        12       11       11
    Loans                      6,764    6,701     6,555    6,245    6,110
    Other interest income         91      118        71       73       70
                             -------- -------- --------- -------- --------
       Total interest income   8,139    8,231     8,399    8,077    7,532
                             -------- -------- --------- -------- --------

    INTEREST EXPENSE
    Deposits                   1,857    1,901     1,997    1,794    1,482
    Short-term borrowings        136      162       271      289      270
    Long-term debt             1,136    1,118     1,084    1,010      910
                             -------- -------- --------- -------- --------
       Total interest
        expense                3,129    3,181     3,352    3,093    2,662
                             -------- -------- --------- -------- --------

    NET INTEREST INCOME        5,010    5,050     5,047    4,984    4,870
    Provision for credit
     losses                      715      726       613      432      433
                             -------- -------- --------- -------- --------
    Net interest income
     after provision for
     credit losses             4,295    4,324     4,434    4,552    4,437
                             -------- -------- --------- -------- --------

    NONINTEREST INCOME
    Service charges on
     deposit accounts            685      695       707      665      623
    Trust and investment
     fees                        731      735       664      675      663
    Card fees                    470      481       464      418      384
    Other fees                   511      550       509      510      488
    Mortgage banking             790      677       484      735      415
    Operating leases             192      190       192      200      201
    Insurance                    399      299       313      364      364
    Net gains (losses) on
     debt securities
     available for sale           31       51       121     (156)     (35)
    Net gains from equity
     investments                  97      256       159      133      190
    Other                        525      429       274      261      392
                             -------- -------- --------- -------- --------
       Total noninterest
        income                 4,431    4,363     3,887    3,805    3,685
                             -------- -------- --------- -------- --------

    NONINTEREST EXPENSE
    Salaries                   1,867    1,812     1,769    1,754    1,672
    Incentive compensation       742      793       710      714      668
    Employee benefits            665      501       458      487      589
    Equipment                    337      339       294      284      335
    Net occupancy                365      367       357      345      336
    Operating leases             153      157       155      157      161
    Other                      1,397    1,442     1,338    1,435    1,313
                             -------- -------- --------- -------- --------
       Total noninterest
        expense                5,526    5,411     5,081    5,176    5,074
                             -------- -------- --------- -------- --------

    INCOME BEFORE INCOME TAX
     EXPENSE                   3,200    3,276     3,240    3,181    3,048
    Income tax expense           956    1,095     1,046    1,092    1,030
                             -------- -------- --------- -------- --------

    NET INCOME                $2,244   $2,181    $2,194   $2,089   $2,018
                             -------- -------- --------- -------- --------

    EARNINGS PER COMMON
     SHARE                     $0.66    $0.65     $0.65    $0.62    $0.60

    DILUTED EARNINGS PER
     COMMON SHARE              $0.66    $0.64     $0.64    $0.61    $0.60

    DIVIDENDS DECLARED PER
     COMMON SHARE              $0.28    $0.28       $--    $0.54    $0.26

    Average common shares
     outstanding             3,376.0  3,379.4   3,371.9  3,363.8  3,358.3
    Diluted average common
     shares outstanding      3,416.1  3,424.0   3,416.0  3,404.4  3,395.7

    ----------------------------------------------------------------------
    

    
    Wells Fargo & Company and Subsidiaries
    CONSOLIDATED BALANCE SHEET
    ----------------------------------------------------------------------
                                                                 % Change
                                                        Mar. 31, 2007 from
                                                        ------------------
    (in millions, except  Mar. 31,  Dec. 31,  Mar. 31,  Dec. 31, Mar. 31,
     shares)                2007      2006      2006      2006     2006
    ----------------------------------------------------------------------

    ASSETS
    Cash and due from
     banks                 $12,485   $15,028   $13,224     (17)%      (6)%
    Federal funds sold,
     securities purchased
     under resale
     agreements and other
     short-term
     investments             4,668     6,078     4,954      (23)       (6)
    Trading assets           6,525     5,607     9,930       16       (34)
    Securities available
     for sale               45,443    42,629    51,195        7       (11)
    Mortgages held for
     sale (includes
     $25,807 million
     carried at fair
     value at March 31,
     2007)                  32,286    33,097    43,521       (2)      (26)
    Loans held for sale        829       721       629       15        32

    Loans                  325,487   319,116   306,676        2         6
    Allowance for loan
     losses                 (3,772)   (3,764)   (3,845)      --        (2)
                          --------- --------- ---------
      Net loans            321,715   315,352   302,831        2         6
                          --------- --------- ---------

    Mortgage servicing
     rights:
      Measured at fair
       value (residential
       MSRs)                17,779    17,591    13,800        1        29
      Amortized                400       377       142        6       182
    Premises and
     equipment, net          4,864     4,698     4,493        4         8
    Goodwill                11,275    11,275    11,050       --         2
    Other assets            27,632    29,543    36,659       (6)      (25)
                          --------- --------- ---------

         Total assets     $485,901  $481,996  $492,428        1        (1)
                          --------- --------- ---------

    LIABILITIES
    Noninterest-bearing
     deposits              $89,067   $89,119   $88,701       --        --
    Interest-bearing
     deposits              222,090   221,124   219,604       --         1
                          --------- --------- ---------
         Total deposits    311,157   310,243   308,305       --         1
    Short-term borrowings   13,181    12,829    21,350        3       (38)
    Accrued expenses and
     other liabilities      25,101    25,903    36,312       (3)      (31)
    Long-term debt          90,327    87,145    84,500        4         7
                          --------- --------- ---------

         Total
          liabilities      439,766   436,120   450,467        1        (2)
                          --------- --------- ---------

    STOCKHOLDERS' EQUITY
    Preferred stock            740       384       634       93        17
    Common stock - $1-2/3
     par value,
     authorized
     6,000,000,000
     shares; issued
     3,472,762,050 shares    5,788     5,788     5,788       --        --
    Additional paid-in
     capital                 7,875     7,739     7,479        2         5
    Retained earnings       36,439    35,277    31,750        3        15
    Cumulative other
     comprehensive income      289       302       576       (4)      (50)
    Treasury stock -
     122,242,186 shares,
     95,612,189 shares
     and 115,124,934
     shares                 (4,204)   (3,203)   (3,587)      31        17
    Unearned ESOP shares      (792)     (411)     (679)      93        17
                          --------- --------- ---------

         Total
          stockholders'
          equity            46,135    45,876    41,961        1        10
                          --------- --------- ---------

           Total
            liabilities
            and
            stockholders'
            equity        $485,901  $481,996  $492,428        1        (1)
                          --------- --------- ---------

    ----------------------------------------------------------------------
    

    
    Wells Fargo & Company and Subsidiaries
    FIVE QUARTER CONSOLIDATED BALANCE SHEET
    ----------------------------------------------------------------------
                         Mar. 31,  Dec. 31,  Sept. 30, June 30,  Mar. 31,
    (in millions)          2007      2006      2006      2006      2006
    ----------------------------------------------------------------------

    ASSETS
    Cash and due from
     banks                $12,485   $15,028   $12,591   $14,069   $13,224
    Federal funds sold,
     securities
     purchased under
     resale agreements
     and other short-
     term investments       4,668     6,078     4,079     5,367     4,954
    Trading assets          6,525     5,607     5,300     7,344     9,930
    Securities available
     for sale              45,443    42,629    52,635    71,420    51,195
    Mortgages held for
     sale                  32,286    33,097    39,913    39,714    43,521
    Loans held for sale       829       721       617       594       629

    Loans                 325,487   319,116   307,491   300,622   306,676
    Allowance for loan
     losses                (3,772)   (3,764)   (3,799)   (3,851)   (3,845)
                         --------- --------- --------- --------- ---------
      Net loans           321,715   315,352   303,692   296,771   302,831
                         --------- --------- --------- --------- ---------

    Mortgage servicing
     rights:
      Measured at fair
       value
       (residential
       MSRs)               17,779    17,591    17,712    15,650    13,800
      Amortized               400       377       328       175       142
    Premises and
     equipment, net         4,864     4,698     4,645     4,529     4,493
    Goodwill               11,275    11,275    11,192    11,091    11,050
    Other assets           27,632    29,543    30,737    32,792    36,659
                         --------- --------- --------- --------- ---------

       Total assets      $485,901  $481,996  $483,441  $499,516  $492,428
                         --------- --------- --------- --------- ---------

    LIABILITIES
    Noninterest-bearing
     deposits             $89,067   $89,119   $86,849   $89,448   $88,701
    Interest-bearing
     deposits             222,090   221,124   227,470   237,004   219,604
                         --------- --------- --------- --------- ---------
       Total deposits     311,157   310,243   314,319   326,452   308,305
    Short-term
     borrowings            13,181    12,829    13,800    13,619    21,350
    Accrued expenses and
     other liabilities     25,101    25,903    26,369    33,794    36,312
    Long-term debt         90,327    87,145    84,091    83,757    84,500
                         --------- --------- --------- --------- ---------

       Total liabilities  439,766   436,120   438,579   457,622   450,467
                         --------- --------- --------- --------- ---------

    STOCKHOLDERS' EQUITY
    Preferred stock           740       384       465       548       634
    Common stock            5,788     5,788     5,788     5,788     5,788
    Additional paid-in
     capital                7,875     7,739     7,667     7,562     7,479
    Retained earnings      36,439    35,277    34,080    31,964    31,750
    Cumulative other
     comprehensive
     income                   289       302       633       155       576
    Treasury stock         (4,204)   (3,203)   (3,273)   (3,537)   (3,587)
    Unearned ESOP shares     (792)     (411)     (498)     (586)     (679)
                         --------- --------- --------- --------- ---------

       Total
        stockholders'
        equity             46,135    45,876    44,862    41,894    41,961
                         --------- --------- --------- --------- ---------

         Total
          liabilities
          and
          stockholders'
          equity         $485,901  $481,996  $483,441  $499,516  $492,428
                         --------- --------- --------- --------- ---------

    ----------------------------------------------------------------------
    

    
    Wells Fargo & Company and Subsidiaries
    FIVE QUARTER AVERAGE BALANCES
    ----------------------------------------------------------------------
                                                             Quarter ended
                         -------------------------------------------------
                         Mar. 31,  Dec. 31,  Sept. 30, June 30,  Mar. 31,
    (in millions)          2007      2006      2006      2006      2006
    ----------------------------------------------------------------------

    EARNING ASSETS
    Federal funds sold,
     securities
     purchased under
     resale agreements
     and other short-
     term investments      $5,867    $7,751    $4,247    $4,855    $5,192
    Trading assets          4,305     3,950     3,880     5,938     6,099
    Debt securities
     available for sale:
     Securities of U.S.
      Treasury and
      federal agencies        753       786       912       935       866
     Securities of U.S.
      states and
      political
      subdivisions          3,532     3,406     3,240     3,013     3,106
     Mortgage-backed
      securities:
      Federal agencies     30,640    31,718    47,009    40,160    27,718
      Private
       collateralized
       mortgage
       obligations          3,993     5,130     7,696     7,176     6,562
                         --------- --------- --------- --------- ---------
       Total mortgage-
        backed
        securities         34,633    36,848    54,705    47,336    34,280
     Other debt
      securities (1)        5,778     6,406     6,865     6,246     5,280
                         --------- --------- --------- --------- ---------
         Total debt
          securities
          available for
          sale (1)         44,696    47,446    65,722    57,530    43,532
    Mortgages held for
     sale (2)              32,343    37,878    42,369    51,675    39,523
    Loans held for sale       794       659       622       585       651
    Loans:
     Commercial and
      commercial real
      estate:
      Commercial           71,063    68,402    66,216    65,424    62,769
      Other real estate
       mortgage            30,590    29,882    29,851    28,938    28,686
      Real estate
       construction        15,892    15,775    15,073    14,517    13,850
      Lease financing       5,503     5,500     5,385     5,429     5,436
                         --------- --------- --------- --------- ---------
       Total commercial
        and commercial
        real estate       123,048   119,559   116,525   114,308   110,741
     Consumer:
      Real estate 1-4
       family first
       mortgage            54,444    50,836    50,138    55,019    74,383
      Real estate 1-4
       family junior
       lien mortgage       69,079    68,208    65,991    62,740    59,972
      Credit card          14,557    13,737    12,810    11,947    11,765
      Other revolving
       credit and
       installment         53,539    53,206    51,988    50,098    48,329
                         --------- --------- --------- --------- ---------
       Total consumer     191,619   185,987   180,927   179,804   194,449
     Foreign                6,762     6,620     6,528     6,276     5,942
                         --------- --------- --------- --------- ---------
        Total loans (2)   321,429   312,166   303,980   300,388   311,132
    Other                   1,327     1,333     1,348     1,363     1,389
                         --------- --------- --------- --------- ---------
         Total earning
          assets         $410,761  $411,183  $422,168  $422,334  $407,518
                         --------- --------- --------- --------- ---------

    FUNDING 

SOURCES Deposits: Interest-bearing checking $4,615 $4,477 $4,370 $4,288 $4,069 Market rate and other savings 140,934 135,673 132,906 134,182 134,228 Savings certificates 38,514 36,382 33,909 30,308 28,718 Other time deposits 9,312 19,838 36,920 38,288 33,726 Deposits in foreign offices 27,647 24,425 22,303 20,898 15,152 --------- --------- --------- --------- --------- Total interest- bearing deposits 221,022 220,795 230,408 227,964 215,893 Short-term borrowings 11,498 13,470 21,539 24,836 26,180 Long-term debt 89,027 85,809 84,112 84,486 81,686 --------- --------- --------- --------- --------- Total interest- bearing liabilities 321,547 320,074 336,059 337,286 323,759 Portion of noninterest-bearing funding sources 89,214 91,109 86,109 85,048 83,759 --------- --------- --------- --------- --------- Total funding sources $410,761 $411,183 $422,168 $422,334 $407,518 --------- --------- --------- --------- --------- NONINTEREST-EARNING ASSETS Cash and due from banks $11,862 $12,379 $12,159 $12,437 $12,897 Goodwill 11,274 11,259 11,156 11,075 10,963 Other 48,208 47,764 49,196 45,610 43,817 --------- --------- --------- --------- --------- Total noninterest- earning assets $71,344 $71,402 $72,511 $69,122 $67,677 --------- --------- --------- --------- --------- NONINTEREST-BEARING FUNDING

SOURCES Deposits $88,769 $91,259 $89,245 $88,917 $86,997 Other liabilities 25,474 25,687 25,839 22,835 23,320 Stockholders' equity 46,315 45,565 43,536 42,418 41,119 Noninterest-bearing funding sources used to fund earning assets (89,214) (91,109) (86,109) (85,048) (83,759) --------- --------- --------- --------- --------- Net noninterest- bearing funding sources $71,344 $71,402 $72,511 $69,122 $67,677 --------- --------- --------- --------- --------- TOTAL ASSETS $482,105 $482,585 $494,679 $491,456 $475,195 --------- --------- --------- --------- --------- ---------------------------------------------------------------------- (1) Includes certain preferred securities. (2) Nonaccrual loans are included in their respective loan categories. Wells Fargo & Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY ---------------------------------------------------------------------- Quarter ended March 31, ----------------- (in millions) 2007 2006 ---------------------------------------------------------------------- Balance, beginning of period $45,876 $40,660 Cumulative effect from adoption of: FAS 156 (1) -- 101 FSP 13-2 (2) (71) -- Net income 2,244 2,018 Other comprehensive income (loss), net of tax, related to: Translation adjustments 1 -- Investment securities and other interests held 18 (205) Derivative instruments and hedging activities (38) 119 Defined benefit pension plans 6 (3) Common stock issued 448 485 Common stock repurchased (1,631) (646) Preferred stock released to ESOP 128 105 Common stock dividends (948) (874) Other, net 102 201 -------- -------- Balance, end of period $46,135 $41,961 -------- -------- ---------------------------------------------------------------------- (1)Financial Accounting Standard No. 156, Accounting for Servicing of Financial Assets - an amendment of FASB Statement No. 140. (2)FASB Staff Position 13-2, Accounting for a Change or Projected Change in the Timing of Cash Flows Related to Income Taxes Generated by a Leveraged Lease Transaction. Wells Fargo & Company and Subsidiaries FIVE QUARTER LOANS ---------------------------------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in millions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Commercial and commercial real estate: Commercial $72,268 $70,404 $66,797 $66,014 $63,836 Other real estate mortgage 31,542 30,112 29,914 29,281 28,754 Real estate construction 15,869 15,935 15,397 14,764 14,308 Lease financing 5,494 5,614 5,443 5,301 5,402 --------- --------- --------- --------- --------- Total commercial and commercial real estate 125,173 122,065 117,551 115,360 112,300 Consumer: Real estate 1-4 family first mortgage 55,982 53,228 49,765 50,491 66,106 Real estate 1-4 family junior lien mortgage 69,489 68,926 67,185 64,727 61,115 Credit card 14,594 14,697 13,343 12,387 11,618 Other revolving credit and installment 53,445 53,534 53,080 51,236 49,295 --------- --------- --------- --------- --------- Total consumer 193,510 190,385 183,373 178,841 188,134 Foreign 6,804 6,666 6,567 6,421 6,242 --------- --------- --------- --------- --------- Total loans (net of unearned income) $325,487 $319,116 $307,491 $300,622 $306,676 --------- --------- --------- --------- --------- ---------------------------------------------------------------------- FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS ---------------------------------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in millions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Nonaccrual loans: Commercial and commercial real estate: Commercial $350 $331 $256 $253 $256 Other real estate mortgage 114 105 116 137 163 Real estate construction 82 78 90 31 21 Lease financing 31 29 27 26 31 --------- --------- --------- --------- --------- Total commercial and commercial real estate 577 543 489 447 471 Consumer: Real estate 1-4 family first mortgage (1) 701 688 595 585 508 Real estate 1-4 family junior lien mortgage 233 212 200 179 190 Other revolving credit and installment 195 180 167 139 188 --------- --------- --------- --------- --------- Total consumer 1,129 1,080 962 903 886 Foreign 46 43 38 45 37 --------- --------- --------- --------- --------- Total nonaccrual loans 1,752 1,666 1,489 1,395 1,394 As a percentage of total loans 0.54% 0.52% 0.48% 0.46% 0.45% Foreclosed assets: GNMA loans (2) 381 322 266 238 227 Other 528 423 342 275 228 Real estate and other nonaccrual investments (3) 5 5 3 9 -- --------- --------- --------- --------- --------- Total nonaccrual loans and other assets $2,666 $2,416 $2,100 $1,917 $1,849 --------- --------- --------- --------- --------- As a percentage of total loans 0.82% 0.76% 0.68% 0.64% 0.60% --------- --------- --------- --------- --------- ---------------------------------------------------------------------- (1)Includes nonaccrual mortgages held for sale. (2)Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming. These assets are fully collectible because the corresponding GNMA loans are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. (3)Includes real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if these assets were recorded as loans. Wells Fargo & Company and Subsidiaries FIVE QUARTER CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES ---------------------------------------------------------------------- Quarter ended --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in millions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Balance, beginning of quarter $3,964 $3,978 $4,035 $4,025 $4,057 Provision for credit losses 715 726 613 432 433 Loan charge-offs: Commercial and commercial real estate: Commercial (126) (139) (103) (93) (79) Other real estate mortgage (1) (2) (1) (1) (1) Real estate construction -- (1) (1) -- -- Lease financing (7) (8) (6) (7) (9) -------- -------- --------- -------- -------- Total commercial and commercial real estate (134) (150) (111) (101) (89) Consumer: Real estate 1-4 family first mortgage (24) (22) (30) (22) (29) Real estate 1-4 family junior lien mortgage (83) (56) (36) (28) (34) Credit card (183) (154) (133) (113) (105) Other revolving credit and installment (474) (513) (501) (349) (322) -------- -------- --------- -------- -------- Total consumer (764) (745) (700) (512) (490) Foreign (62) (59) (74) (74) (74) -------- -------- --------- -------- -------- Total loan charge- offs (960) (954) (885) (687) (653) -------- -------- --------- -------- -------- Loan recoveries: Commercial and commercial real estate: Commercial 24 27 26 31 27 Other real estate mortgage 2 5 8 5 1 Real estate construction 1 1 -- 1 1 Lease financing 5 5 4 6 6 -------- -------- --------- -------- -------- Total commercial and commercial real estate 32 38 38 43 35 Consumer: Real estate 1-4 family first mortgage 6 6 8 9 3 Real estate 1-4 family junior lien mortgage 9 9 9 10 8 Credit card 31 24 23 25 24 Other revolving credit and installment 149 136 124 148 129 -------- -------- --------- -------- -------- Total consumer 195 175 164 192 164 Foreign 18 15 20 20 21 -------- -------- --------- -------- -------- Total loan recoveries 245 228 222 255 220 -------- -------- --------- -------- -------- Net loan charge- offs (715) (726) (663) (432) (433) -------- -------- --------- -------- -------- Other 1 (14) (7) 10 (32) -------- -------- --------- -------- -------- Balance, end of quarter $3,965 $3,964 $3,978 $4,035 $4,025 -------- -------- --------- -------- -------- Components: Allowance for loan losses $3,772 $3,764 $3,799 $3,851 $3,845 Reserve for unfunded credit commitments 193 200 179 184 180 -------- -------- --------- -------- -------- Allowance for credit losses $3,965 $3,964 $3,978 $4,035 $4,025 -------- -------- --------- -------- -------- Net loan charge-offs (annualized) as a percentage of average total loans 0.90% 0.92% 0.86% 0.58% 0.56% Allowance for loan losses as a percentage of: Total loans 1.16% 1.18% 1.24% 1.28% 1.25% Nonaccrual loans 215 226 255 276 276 Nonaccrual loans and other assets 141 156 181 201 208 Allowance for credit losses as a percentage of: Total loans 1.22% 1.24% 1.29% 1.34% 1.31% Nonaccrual loans 226 238 267 289 289 Nonaccrual loans and other assets 149 164 189 210 218 ---------------------------------------------------------------------- Wells Fargo & Company and Subsidiaries NONINTEREST INCOME ---------------------------------------------------------------------- Quarter ended March 31, % ---------------- (in millions) 2007 2006 Change ---------------------------------------------------------------------- Service charges on deposit accounts $685 $623 10% Trust and investment fees: Trust, investment and IRA fees 537 491 9 Commissions and all other fees 194 172 13 ------- -------- Total trust and investment fees 731 663 10 Card fees 470 384 22 Other fees: Cash network fees 45 44 2 Charges and fees on loans 238 242 (2) All other 228 202 13 ------- -------- Total other fees 511 488 5 Mortgage banking: Servicing income, net 216 81 167 Net gains on mortgage loan origination/sales activities 495 273 81 All other 79 61 30 ------- -------- Total mortgage banking 790 415 90 Operating leases 192 201 (4) Insurance 399 364 10 Trading assets 265 134 98 Net gains (losses) on debt securities available for sale 31 (35) -- Net gains from equity investments 97 190 (49) All other 260 258 1 ------- -------- Total $4,431 $3,685 20 ------- -------- ---------------------------------------------------------------------- NONINTEREST EXPENSE ---------------------------------------------------------------------- Quarter ended March 31, % ---------------- (in millions) 2007 2006 Change ---------------------------------------------------------------------- Salaries $1,867 $1,672 12% Incentive compensation 742 668 11 Employee benefits 665 589 13 Equipment 337 335 1 Net occupancy 365 336 9 Operating leases 153 161 (5) Outside professional services 192 193 (1) Contract services 118 132 (11) Travel and entertainment 109 130 (16) Advertising and promotion 91 106 (14) Outside data processing 111 104 7 Postage 87 81 7 Telecommunications 81 70 16 Insurance 128 76 68 Stationery and supplies 53 51 4 Operating losses 87 62 40 Security 43 43 - Core deposit intangibles 26 29 (10) All other 271 236 15 ------- -------- Total $5,526 $5,074 9 ------- -------- ---------------------------------------------------------------------- Wells Fargo & Company and Subsidiaries FIVE QUARTER NONINTEREST INCOME ---------------------------------------------------------------------- Quarter ended --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in millions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Service charges on deposit accounts $685 $695 $707 $665 $623 Trust and investment fees: Trust, investment and IRA fees 537 525 508 509 491 Commissions and all other fees 194 210 156 166 172 -------- -------- --------- -------- -------- Total trust and investment fees 731 735 664 675 663 Card fees 470 481 464 418 384 Other fees: Cash network fees 45 44 48 48 44 Charges and fees on loans 238 241 244 249 242 All other 228 265 217 213 202 -------- -------- --------- -------- -------- Total other fees 511 550 509 510 488 Mortgage banking: Servicing income, net 216 314 188 310 81 Net gains on mortgage loan origination/sales activities 495 305 179 359 273 All other 79 58 117 66 61 -------- -------- --------- -------- -------- Total mortgage banking 790 677 484 735 415 Operating leases 192 190 192 200 201 Insurance 399 299 313 364 364 Trading assets 265 213 106 91 134 Net gains (losses) on debt securities available for sale 31 51 121 (156) (35) Net gains from equity investments 97 256 159 133 190 All other 260 216 168 170 258 -------- -------- --------- -------- -------- Total $4,431 $4,363 $3,887 $3,805 $3,685 -------- -------- --------- -------- -------- ---------------------------------------------------------------------- FIVE QUARTER NONINTEREST EXPENSE ---------------------------------------------------------------------- Quarter ended --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in millions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Salaries $1,867 $1,812 $1,769 $1,754 $1,672 Incentive compensation 742 793 710 714 668 Employee benefits 665 501 458 487 589 Equipment 337 339 294 284 335 Net occupancy 365 367 357 345 336 Operating leases 153 157 155 157 161 Outside professional services 192 273 240 236 193 Contract services 118 165 143 139 132 Travel and entertainment 109 141 132 139 130 Advertising and promotion 91 102 123 125 106 Outside data processing 111 113 111 109 104 Postage 87 77 75 79 81 Telecommunications 81 66 70 73 70 Insurance 128 39 43 99 76 Stationery and supplies 53 60 57 55 51 Operating losses 87 40 33 45 62 Security 43 49 43 44 43 Core deposit intangibles 26 27 28 28 29 All other 271 290 240 264 236 -------- -------- --------- -------- -------- Total $5,526 $5,411 $5,081 $5,176 $5,074 -------- -------- --------- -------- -------- ---------------------------------------------------------------------- Wells Fargo & Company and Subsidiaries AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2) ---------------------------------------------------------------------- Quarter ended March 31, ----------------------------------------------------- 2007 2006 -------------------------- -------------------------- Interest Interest Average Yields/ income/ Average Yields/ income/ (in millions) balance rates expense balance rates expense ---------------------------------------------------------------------- EARNING ASSETS Federal funds sold, securities purchased under resale agreements and other short- term investments $5,867 5.15% $75 $5,192 4.21% $54 Trading assets 4,305 5.53 59 6,099 4.61 69 Debt securities available for sale (3): Securities of U.S. Treasury and federal agencies 753 4.31 8 866 4.30 9 Securities of U.S. states and political subdivisions 3,532 7.39 63 3,106 8.13 60 Mortgage-backed securities: Federal agencies 30,640 6.19 467 27,718 5.92 406 Private collater- alized mortgage obligations 3,993 6.33 62 6,562 6.46 104 --------- -------- --------- -------- Total mortgage- backed securities 34,633 6.21 529 34,280 6.02 510 Other debt securities (4) 5,778 7.44 106 5,280 7.86 104 --------- -------- --------- -------- Total debt securities available for sale (4) 44,696 6.43 706 43,532 6.36 683 Mortgages held for sale (5) 32,343 6.55 530 39,523 6.16 609 Loans held for sale 794 7.82 15 651 6.93 11 Loans: Commercial and commercial real estate: Commercial 71,063 8.30 1,455 62,769 7.71 1,195 Other real estate mortgage 30,590 7.41 560 28,686 7.01 497 Real estate construction 15,892 8.01 314 13,850 7.59 259 Lease financing 5,503 5.74 79 5,436 5.80 79 --------- -------- --------- -------- Total commercial and commercial real estate 123,048 7.93 2,408 110,741 7.42 2,030 Consumer: Real estate 1- 4 family first mortgage 54,444 7.33 995 74,383 6.82 1,259 Real estate 1- 4 family junior lien mortgage 69,079 8.17 1,393 59,972 7.65 1,131 Credit card 14,557 13.55 493 11,765 13.23 389 Other revolving credit and installment 53,539 9.75 1,287 48,329 9.39 1,120 --------- -------- --------- -------- Total consumer 191,619 8.78 4,168 194,449 8.10 3,899 Foreign 6,762 11.54 192 5,942 12.57 185 --------- -------- --------- -------- Total loans (5) 321,429 8.51 6,768 311,132 7.95 6,114 Other 1,327 5.12 16 1,389 4.62 16 --------- -------- --------- -------- Total earning assets $410,761 8.04 8,169 $407,518 7.50 7,556 --------- -------- --------- -------- FUNDING

SOURCES Deposits: Interest- bearing checking $4,615 3.25 37 $4,069 2.23 22 Market rate and other savings 140,934 2.77 963 134,228 2.08 687 Savings certificates 38,514 4.43 421 28,718 3.45 245 Other time deposits 9,312 5.13 118 33,726 4.48 373 Deposits in foreign offices 27,647 4.67 318 15,152 4.16 155 --------- -------- --------- -------- Total interest- bearing deposits 221,022 3.41 1,857 215,893 2.78 1,482 Short-term borrowings 11,498 4.78 136 26,180 4.17 270 Long-term debt 89,027 5.15 1,138 81,686 4.49 910 --------- -------- --------- -------- Total interest- bearing liabilities 321,547 3.94 3,131 323,759 3.33 2,662 Portion of noninterest- bearing funding sources 89,214 -- -- 83,759 -- -- --------- -------- --------- -------- Total funding sources $410,761 3.09 3,131 $407,518 2.65 2,662 --------- -------- --------- -------- Net interest margin and net interest income on a taxable- equivalent basis (6) 4.95% $5,038 4.85% $4,894 ------- -------- ------- -------- NONINTEREST-EARNING ASSETS Cash and due from banks $11,862 $12,897 Goodwill 11,274 10,963 Other 48,208 43,817 --------- --------- Total noninterest- earning assets $71,344 $67,677 --------- --------- NONINTEREST-BEARING FUNDING

SOURCES Deposits $88,769 $86,997 Other liabilities 25,474 23,320 Stockholders' equity 46,315 41,119 Noninterest- bearing funding sources used to fund earning assets (89,214) (83,759) --------- --------- Net noninterest- bearing funding sources $71,344 $67,677 --------- --------- TOTAL ASSETS $482,105 $475,195 --------- --------- ---------------------------------------------------------------------- (1)Our average prime rate was 8.25% and 7.43% for the quarters ended March 31, 2007 and 2006, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.36% and 4.76% 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 FIVE QUARTER OPERATING SEGMENT RESULTS (1) ---------------------------------------------------------------------- Quarter ended --------------------------------------------- (income/expense in millions, average Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, balances in billions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- COMMUNITY BANKING Net interest income $3,224 $3,248 $3,292 $3,321 $3,256 Provision for credit losses 306 275 236 187 189 Noninterest income 2,847 2,882 2,492 2,398 2,143 Noninterest expense 3,640 3,558 3,392 3,485 3,387 -------- -------- --------- -------- -------- Income before income tax expense 2,125 2,297 2,156 2,047 1,823 Income tax expense 593 785 683 711 613 -------- -------- --------- -------- -------- Net income $1,532 $1,512 $1,473 $1,336 $1,210 -------- -------- --------- -------- -------- Average loans $180.8 $175.7 $172.5 $173.9 $190.4 Average assets 307.0 311.9 326.7 327.2 314.8 Average core deposits 243.9 239.8 233.1 232.0 229.0 WHOLESALE BANKING Net interest income $781 $787 $751 $706 $680 Provision (reversal of provision) for credit losses 13 25 -- (7) (2) Noninterest income 1,265 1,096 1,033 1,085 1,096 Noninterest expense 1,137 1,105 999 1,018 992 -------- -------- --------- -------- -------- Income before income tax expense 896 753 785 780 786 Income tax expense 298 245 258 257 258 -------- -------- --------- -------- -------- Net income $598 $508 $527 $523 $528 -------- -------- --------- -------- -------- Average loans $77.9 $75.0 $72.3 $70.4 $67.6 Average assets 101.0 97.9 97.5 97.2 95.9 Average core deposits 46.7 44.0 36.5 32.0 28.4 WELLS FARGO FINANCIAL Net interest income $1,005 $1,015 $1,004 $957 $934 Provision for credit losses 396 426 377 252 246 Noninterest income 319 385 362 322 446 Noninterest expense 749 748 690 673 695 -------- -------- --------- -------- -------- Income before income tax expense 179 226 299 354 439 Income tax expense 65 65 105 124 159 -------- -------- --------- -------- -------- Net income $114 $161 $194 $230 $280 -------- -------- --------- -------- -------- Average loans $62.7 $61.5 $59.2 $56.1 $53.1 Average assets 68.3 67.0 64.7 61.3 58.7 Average core deposits -- -- 0.1 0.1 0.1 CONSOLIDATED COMPANY Net interest income $5,010 $5,050 $5,047 $4,984 $4,870 Provision for credit losses 715 726 613 432 433 Noninterest income 4,431 4,363 3,887 3,805 3,685 Noninterest expense 5,526 5,411 5,081 5,176 5,074 -------- -------- --------- -------- -------- Income before income tax expense 3,200 3,276 3,240 3,181 3,048 Income tax expense 956 1,095 1,046 1,092 1,030 -------- -------- --------- -------- -------- Net income $2,244 $2,181 $2,194 $2,089 $2,018 -------- -------- --------- -------- -------- Average loans $321.4 $312.2 $304.0 $300.4 $311.1 Average assets (2) 482.1 482.6 494.7 491.5 475.2 Average core deposits 290.6 283.8 269.7 264.1 257.5 ---------------------------------------------------------------------- (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. If the management structure and/or the allocation process changes, allocations, transfers and assignments may change. (2)The Consolidated Company includes unallocated goodwill held at the enterprise level of $5.8 billion for all periods presented. Wells Fargo & Company and Subsidiaries FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING ---------------------------------------------------------------------- ---------------------------------------------------------------------- Quarter ended --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in millions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Residential MSRs measured using the fair value method: Fair value, beginning of quarter $17,591 $17,712 $15,650 $13,800 $12,547 Purchases 159 222 2,907 511 219 Servicing from securitizations or asset transfers 828 843 965 1,310 989 Sales -- (469) -- -- -- Changes in fair value: Due to changes in valuation model inputs or assumptions (1) (11) 66 (1,147) 550 522 Other changes in fair value (2) (788) (783) (663) (521) (477) -------- -------- --------- -------- -------- Fair value, end of quarter $17,779 $17,591 $17,712 $15,650 $13,800 -------- -------- --------- -------- -------- ---------------------------------------------------------------------- (1)Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates. (2)Represents changes due to collection/realization of expected cash flows over time. ---------------------------------------------------------------------- Quarter ended --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in millions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Amortized MSRs: Balance, beginning of quarter $377 $328 $175 $142 $122 Purchases 29 53 161 39 25 Servicing from securitizations or asset transfers 10 9 2 -- -- Amortization (16) (13) (10) (6) (5) -------- -------- --------- -------- -------- Balance, end of quarter (1) $400 $377 $328 $175 $142 -------- -------- --------- -------- -------- Fair value of amortized MSRs: Beginning of quarter $457 $440 $252 $205 $146 End of quarter 484 457 440 252 205 ---------------------------------------------------------------------- (1)There was no valuation allowance for the periods presented. Wells Fargo & Company and Subsidiaries FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED) ---------------------------------------------------------------------- Quarter ended ---------------------------------------- Mar. Dec. Sept. June 31, 31, 30, 30, Mar. 31, (in millions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Servicing income, net: Servicing fees (1) $1,054 $1,011 $947 $820 $747 Changes in fair value of residential MSRs: Due to changes in valuation model inputs or assumptions (2) (11) 66 (1,147) 550 522 Other changes in fair value (3) (788) (783) (663) (521) (477) Amortization (16) (13) (10) (6) (5) Net derivative gains (losses) from economic hedges (4) (23) 33 1,061 (533) (706) ------- ------- ------- ------- -------- Total servicing income, net $216 $314 $188 $310 $81 ------- ------- ------- ------- -------- Market-related valuation changes to MSRs, net of hedge results (2) + (4) $(34) $99 $(86) $17 $(184) ------- ------- ------- ------- -------- ---------------------------------------------------------------------- (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. ---------------------------------------------------------------------- Mar. Dec. Sept. June 31, 31, 30, 30, Mar. 31, (in billions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Managed servicing portfolio: Loans serviced for others (1) $1,309 $1,280 $1,235 $1,020 $931 Owned loans serviced (2) 88 86 90 90 110 ------- ------- ------- ------- -------- Total owned servicing 1,397 1,366 1,325 1,110 1,041 Sub-servicing 26 19 20 23 25 ------- ------- ------- ------- -------- Total managed servicing portfolio $1,423 $1,385 $1,345 $1,133 $1,066 ------- ------- ------- ------- -------- Ratio of MSRs to related loans serviced for others 1.39% 1.41% 1.46% 1.55% 1.50% Weighted-average note rate (owned servicing only) 5.93% 5.92% 5.86% 5.80% 5.75% ---------------------------------------------------------------------- (1)Consists of 1-4 family first mortgage and commercial mortgage loans. (2)Consists of 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 --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in billions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Application Data: Wells Fargo Home Mortgage first mortgage quarterly applications $113 $90 $95 $108 $95 Refinances as a percentage of applications 46% 50% 41% 34% 39% Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end $57 $48 $55 $63 $59 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Quarter ended --------------------------------------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in billions) 2007 2006 2006 2006 2006 ---------------------------------------------------------------------- Residential Real Estate Originations: (1) Quarter: Wells Fargo Home Mortgage first mortgage loans: Retail $26 $29 $29 $33 $26 Correspondent/ Wholesale 31 29 36 35 28 Home equity loans and lines 8 9 10 11 9 Wells Fargo Financial 3 3 2 2 3 -------- -------- --------- -------- -------- Total $68 $70 $77 $81 $66 -------- -------- --------- -------- -------- Year-to-date $68 $294 $224 $147 $66 -------- -------- --------- -------- -------- ---------------------------------------------------------------------- (1)Consists of residential real estate originations from all Wells Fargo channels.

For further information:

For further information: Wells Fargo & Company Janis Smith, 415-396-7711
(Media) Bob Strickland, 415-396-0523 (Investors)

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WELLS FARGO & COMPANY

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