2013-01-11 | Wells Fargo Reports Record Full Year and Quarterly Net Income | NYSE:WFC

Wells Fargo Reports Record Full Year and Quarterly Net Income

Wells Fargo & Company (NYSE:WFC):

Continued strong financial results:
- Full year 2012:
  - Record net income of $18.9 billion, up 19 percent from 2011
  - Record diluted EPS of $3.36, up 19 percent from 2011
  - Revenue of $86.1 billion, up 6 percent from 2011
  - Positive operating leverage (revenue growth of 6 percent exceeded expense growth of 2 percent)
  - Returned more capital to shareholders through a higher common stock dividend (up 83 percent), and common stock repurchases (approximately 120 million shares)
- Fourth quarter 2012:
  - Record net income of $5.1 billion, up 24 percent from fourth quarter 2011
  - Record diluted EPS of $0.91, up 25 percent from fourth quarter 2011
  - Revenue of $21.9 billion, up 7 percent from fourth quarter 2011
  - Total average core checking and savings deposits up $72.0 billion from fourth quarter 2011
  - Total loans of $799.6 billion, up $29.9 billion from fourth quarter 2011
  - Core loan portfolio up $47.7 billion from fourth quarter 2011¹
- Fourth quarter 2012 results² included:
  - $393 million, or $0.05 per share, in above-average quarterly equity gains³
  - $(644) million, or $(0.09) per share, in operating losses from an incremental accrual to fully reserve for the costs associated with the Independent Foreclosure Review (IFR) settlement and additional remediation-related costs
  - $(250) million, or $(0.03) per share, in noninterest expense for a contribution to the Wells Fargo Foundation
  - $332 million, or $0.06 per share, in lower tax expense due to a benefit associated with the realization for tax purposes of a previously written-down Wachovia life insurance investment
- Solid credit quality:
  - Net charge-offs of $2.1 billion, or 1.05 percent (annualized) of average loans, including $321 million of net charge-offs (fully covered by loan loss reserves) from the completion of implementation of the OCC guidance⁴ issued in third quarter 2012
  - Excluding the impact of the OCC guidance, net charge-offs of $1.8 billion or 0.89 percent (annualized) of average loans
  - $250 million (pre-tax) reserve release⁵ due to continued strong credit performance
- Maintained strong capital position:
  - Tier 1 common equity⁶ under Basel I increased $3.3 billion from prior quarter to $109.1 billion, with Tier 1 common equity ratio of 10.12 percent under Basel I at December 31, 2012. Estimated Tier 1 common equity ratio of 8.18 percent under current Basel III capital proposals⁷
  - Purchased approximately 42 million shares of common stock in fourth quarter 2012 and an additional estimated 6 million shares through a forward repurchase transaction expected to settle in first quarter 2013


¹		See table in Loans section for more information on core and non-strategic/liquidating loan portfolios.
²		Fourth quarter 2012 effective tax rate of 27.4 percent used in the calculation of per share amounts.
³		Fourth quarter 2012 net gains from equity investments of $715 million were $393 million higher than previous seven quarter average net gains of $322 million.
⁴		Office of the Comptroller of the Currency update to Bank Accounting Advisory Series issued third quarter 2012 (OCC guidance), which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status. See section on Credit Quality, including footnote 9, for additional information regarding the implementation of the OCC guidance and its effect on our credit metrics.
⁵		Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.
⁶		See tables on TIER 1 COMMON EQUITY for more information on Tier 1 common equity.
⁷		Estimated based on management’s current interpretation of the Basel III capital rules proposed by federal banking agencies in notices of proposed rulemaking announced in June 2012. The proposed rules and interpretations and assumptions used in estimating Basel III calculations are subject to change depending on final promulgation of Basel III capital rules.


Selected Financial Information


	Quarter ended
	Dec. 31,			Sept. 30,	Dec. 31,	Year ended Dec. 31,
		2012		2012	2011	2012	2011
Earnings
Diluted earnings per common share	$	0.91		0.88	0.73	3.36	2.82
Wells Fargo net income (in billions)		5.09		4.94	4.11	18.90	15.87
Return on assets (ROA)		1.46	%	1.45	1.25	1.41	1.25
Return on equity (ROE)		13.35		13.38	11.97	12.95	11.93

Asset Quality
Net charge-offs as a % of avg. total loans		1.05		1.21	1.36	1.17	1.49
Allowance as a % of total loans		2.19		2.27	2.56	2.19	2.56
Allowance as a % of annualized net charge-offs		211		190	188	193	174

Other
Revenue (in billions)	$	21.9		21.2	20.6	86.1	80.9
Efficiency ratio		58.8	%	57.1	60.7	58.5	61.0
Average loans (in billions)	$	787.2		776.7	768.6	775.2	757.1
Average core deposits (in billions)		928.8		895.4	864.9	893.9	826.7
Net interest margin		3.56	%	3.66	3.89	3.76	3.94

Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $3.36 for 2012, up 19 percent from $2.82 in 2011. Full year net income was $18.9 billion, compared with $15.9 billion in 2011. For fourth quarter 2012, net income was $5.1 billion, or $0.91 per share, compared with $4.1 billion, or $0.73 per share, for fourth quarter 2011.

“2012 was an outstanding year for Wells Fargo,” said Chairman and CEO John Stumpf. “We saw the continued benefits of our diversified business model and reported record full year and fourth quarter earnings, robust deposit and solid loan growth, and strong performance across our business units. The Company’s success is due to our more than 265,000 team members who remained focused on our customers and on our vision to satisfy all of our customers’ financial needs.

“This time last year, I said we would benefit from the many opportunities we saw for 2012 – and we did just that. From growing revenue, making strategic acquisitions and achieving efficiency improvements, I am extremely pleased with our 2012 performance. We also returned more capital to our shareholders through common stock dividends and common stock repurchases. We are very well positioned for and look forward to 2013, as Wells Fargo continues to work hard to contribute to a growing U.S. economy by doing what we do best: helping customers succeed financially.”

Chief Financial Officer Tim Sloan added, “The Company’s underlying results were driven by solid loan growth, improved credit quality, and continued success in improving efficiency. While our fourth quarter included some noteworthy items, we achieved strong returns on average assets and equity of 1.46 percent and 13.35 percent, respectively. We are very pleased with the Company’s outstanding performance despite the challenges our industry faced during this past year, including continued low interest rates and elevated unemployment. Our balanced business model helped us deliver strong results throughout these challenging times and should provide us the opportunity to continue to deliver value to our shareholders in the coming year.”

Revenue

Revenue for the year was $86.1 billion, up 6 percent from $80.9 billion in 2011. Revenue in the fourth quarter increased 7 percent to $21.9 billion, up $1.3 billion from a year ago. On a linked-quarter basis, revenue growth accelerated 14 percent (annualized), up $735 million. Growth in noninterest income was generated across our diversified businesses and net interest income was relatively flat linked quarter. Businesses generating linked-quarter, double-digit annualized revenue growth included capital finance, capital markets, commercial banking, commercial real estate, corporate banking, credit card, mortgage, and wealth management.

Net Interest Income

Net interest income in the fourth quarter decreased $249 million, or 2 percent, from a year ago, and was down slightly on a linked-quarter basis to $10.6 billion in fourth quarter. Income from our loan portfolios rose slightly from prior quarter, reflecting both organic growth in consumer and commercial loans and the retention of $9.7 billion in high-quality, conforming first real estate mortgages in the fourth quarter. While the available-for-sale (AFS) securities portfolio balance was essentially flat linked-quarter, income continued to be impacted by runoff in federal agency mortgage-backed securities (MBS) and a decision to replace that runoff with shorter duration securities. Interest income from the AFS securities portfolio declined by $69 million. Interest income from the mortgage warehouse was down $63 million in the quarter as the size of the warehouse declined in line with lower origination volume.

The decline in interest income was partially offset by a $49 million decrease in interest expense, reflecting the benefit of continued reductions in deposit and long term funding costs.

On a linked-quarter basis, the Company’s net interest margin declined 10 basis points to 3.56 percent. The primary driver of the decline, approximately 8 basis points, was strong deposit growth of $30 billion in the quarter (12 percent annualized). This inflow of deposits caused cash and short term investments to increase, and while these inflows diluted net interest margin, they were essentially neutral to net interest income. The ongoing repricing of the balance sheet in the current low interest rate environment resulted in approximately 5 basis points of additional net interest margin compression. This was partially offset by the benefit of slightly higher income from variable sources, such as fee income and periodic dividends, which increased 3 basis points on a linked-quarter basis.

Noninterest Income

Noninterest income of $11.3 billion increased $1.6 billion, or 16 percent, from fourth quarter 2011 and increased 28 percent (annualized) from third quarter 2012. The linked-quarter increase reflects growth in service charges, trust and investment fees, and mortgage banking. Noninterest income was also bolstered by above-average equity gains, driven by gains in our private equity businesses.

Mortgage banking noninterest income was $3.1 billion, up $261 million from third quarter 2012, on $125 billion of originations, compared with $139 billion of originations in third quarter. During the fourth quarter, the Company retained on balance sheet 1-4 family conforming first mortgage loans, forgoing approximately $340 million of fee revenue that could have been generated had the loans been originated for sale during the quarter along with other agency conforming loan production. The Company provided $379 million for mortgage loan repurchase losses, compared with $462 million in third quarter (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were $220 million, up from $142 million in third quarter 2012, due primarily to MSRs valuation adjustments made in the third quarter for increased servicing and foreclosure costs. The ratio of MSRs to related loans serviced for others was 67 basis points and the average note rate on the servicing portfolio was 4.77 percent. The unclosed pipeline at December 31, 2012 was $81 billion, compared with $97 billion at September 30, 2012.

The Company had net unrealized securities gains of $11.9 billion at December 31, 2012, compared with $12.4 billion at September 30, 2012. Period-end AFS securities balances increased $5.8 billion.

Noninterest Expense

Noninterest expense increased $388 million, or 3 percent, from fourth quarter 2011 and increased $784 million from third quarter 2012. The increase in noninterest expense from the prior quarter was due primarily to $644 million in operating losses from an incremental accrual to fully reserve for the costs associated with the IFR settlement (discussed below) and additional remediation-related costs, and $250 million for a contribution to the Wells Fargo Foundation. The Company continued to operate within its targeted efficiency ratio range of 55 to 59 percent, with an efficiency ratio of 58.8 percent in fourth quarter 2012, compared with 57.1 percent in third quarter 2012 and 60.7 percent in fourth quarter 2011. The Company is well positioned to remain within this targeted range in 2013.

Independent Foreclosure Review Settlement

On January 7, 2013, the Company announced that, along with nine other mortgage servicers, it entered into settlement agreements with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board (FRB) that would end their IFR programs created by Article VII of an April 2011 Interagency Consent Order and replace it with an accelerated remediation process.

In aggregate, the servicers have agreed to make direct, cash payments of $3.3 billion and to provide $5.2 billion in additional assistance, such as loan modifications, to consumers. Wells Fargo’s portion of the cash settlement is $766 million, which is based on the proportionate share of Wells Fargo-serviced loans in the overall IFR population. Wells Fargo recorded a pre-tax charge of $644 million in fourth quarter 2012 to fully reserve for its cash payment portion of the settlement and additional remediation-related costs. The Company also committed an additional $1.2 billion to foreclosure prevention actions. This commitment did not result in any charge as the Company believes that this commitment is covered through the existing allowance for credit losses and the nonaccretable difference relating to the purchased credit-impaired loan portfolios. With this settlement, the Company will no longer incur costs associated with the independent foreclosure reviews, which had recently approximated $125 million per quarter for external consultants and additional staffing.

“In addition to the benefit to our customers, we are very pleased to have put this legacy issue behind us and to have removed the future costs associated with independent foreclosure reviews,” said Stumpf.

Taxes

Our effective tax rate was 27.4 percent for the fourth quarter 2012, compared with 31.3 percent for the fourth quarter 2011 and 32.5 percent for the year ended December 31, 2012, compared with 31.9 percent for the year ended December 31, 2011. The lower tax rate in the fourth quarter 2012 was primarily attributable to the realization, for tax purposes, of a discrete $332 million benefit resulting from the surrender of previously written-down Wachovia life insurance investment.

Loans

Total loans were $799.6 billion at December 31, 2012, up $16.9 billion from September 30, 2012, including double-digit annualized loan growth in commercial banking, credit card, mortgage, and retail brokerage. Included in the total loan growth was $9.7 billion of 1-4 family conforming first mortgage production retained on the balance sheet. The growth in core loan portfolios more than offset the reduction in the non-strategic/liquidating portfolios, which declined $4.1 billion in the quarter.

Average total loans of $787.2 billion in fourth quarter 2012 grew $18.6 billion, or 2 percent, from fourth quarter 2011. On a linked-quarter basis, average loans increased $10.5 billion, or 5 percent (annualized). Average commercial and commercial real estate loans increased $10.8 billion, or 3 percent, from fourth quarter 2011 and increased $1.6 billion, or 2 percent (annualized), on a linked-quarter basis. Average consumer loans increased $7.8 billion, or 2 percent, from a year ago and increased $8.9 billion, or 8 percent (annualized), on a linked-quarter basis.

December 31, 2012

September 30, 2012

(in millions)

Core

Liquidating (1)

Total

Core

Liquidating (1)

Total

Commercial

358,028

3,170

361,198

348,696

3,836

352,532

Consumer

346,984

91,392

438,376

335,278

94,820

430,098

Total loans

705,012

94,562

799,574

683,974

98,656

782,630

Change from prior quarter:

21,038

(4,094)

16,944

11,903

(4,472)

7,431

(1) See NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS table for additional information on non-strategic/liquidating loan portfolios. Management believes that the above information provides useful disclosure regarding the Company’s ongoing loan portfolios.

Deposits

Average core deposits of $928.8 billion for fourth quarter 2012 increased $63.9 billion, or 7 percent, from fourth quarter 2011. On a linked-quarter basis, average core deposits grew $33.5 billion, or 15 percent (annualized). Average mortgage escrow deposits were $42.2 billion for fourth quarter 2012, up $7.2 billion from fourth quarter 2011 and up $2.2 billion on a linked-quarter basis. Excluding mortgage escrow balances, total average core deposits grew 7 percent from fourth quarter 2011 and 15 percent (annualized) on a linked-quarter basis. Average core checking and savings deposits were 94 percent of average core deposits, up from 93 percent a year ago. The average deposit cost for fourth quarter 2012 was 16 basis points, compared with 18 basis points in third quarter 2012. Average core deposits were 118 percent of average loans, up slightly from third quarter 2012.

Capital

Capital increased in the fourth quarter, with Tier 1 common equity reaching $109.1 billion under Basel I, or 10.12 percent of risk-weighted assets, up from 9.46 percent in fourth quarter 2011 and 9.92 percent in third quarter 2012. Under current Basel III proposals, the Tier I common equity ratio was an estimated 8.18 percent⁸. In the fourth quarter, the Company purchased approximately 42 million shares of its common stock and an additional estimated 6 million shares through a forward repurchase transaction expected to settle in first quarter 2013, and paid a quarterly common stock dividend of $0.22 per share.


⁸		Estimated based on management’s current interpretation of the Basel III capital rules proposed by federal banking agencies in notices of proposed rulemaking announced in June 2012. The proposed rules and interpretations and assumptions used in estimating Basel III calculations are subject to change depending on final promulgation of Basel III capital rules.

Dec. 31,

Sept. 30,

Dec. 31,

(as a percent of total risk-weighted assets)

2012

2012

2011

Ratios under Basel I (1):

Tier 1 common equity (2)

10.12

9.92

9.46

Tier 1 capital

11.75

11.50

11.33

Tier 1 leverage

9.47

9.40

9.03

(1)December 31, 2012, ratios are preliminary.

(2)See tables on TIER 1 COMMON EQUITY for more information on Tier 1 common equity.

Credit Quality

“Wells Fargo's risk profile continued to improve in 2012,” said Chief Risk Officer Mike Loughlin. “Credit losses were $9.0 billion in 2012, compared with $11.3 billion in 2011—an improvement of $2.3 billion or 20 percent. In addition, year-over-year, our nonperforming assets declined by $1.5 billion or 6 percent, our consumer 30 – 89 days past due was down $1.8 billion or 22 percent, our liquidating portfolios declined by $17.8 billion or 16 percent, and the Pick-a-Pay PCI portfolio continued to perform better than we estimated at the time we acquired Wachovia. Reflecting continued, improved credit performance, we released $250 million in loan loss reserves in the fourth quarter. Absent significant deterioration in the economy, we continue to expect future reserve releases in 2013, though at a lower level than in 2012,” said Loughlin.

Reported credit metrics for the quarter were affected by the completion of implementation of the OCC guidance issued in third quarter 2012. In the fourth quarter, we applied the updated OCC guidance to previously modified loans to consumers who have been discharged in bankruptcy. Fourth quarter adjustments associated with the OCC guidance affected nonperforming loans and net charge-offs as follows⁹:

$394 million reclassification of performing consumer loans to nonaccrual status
$321 million increase in net loan charge-offs, fully covered by loan loss reserves


⁹		Reclassification to nonaccrual loans includes $264 million and the increase in net loan charge offs include $271 million from the completion of implementation of OCC guidance.

Net Loan Charge-offs

Net loan charge-offs improved to $2.1 billion in fourth quarter 2012, or 105 basis points of average loans, compared with $2.6 billion in fourth quarter 2011, or 136 basis points of average loans. On a linked-quarter basis, net loan charge-offs improved by $277 million, or 16 basis points of average loans.

Excluding the $321 million in charge-offs resulting from the adjustments associated with the OCC guidance, net charge-offs in fourth quarter 2012 were $1.8 billion or 89 basis points with commercial losses of $255 million, or 29 basis points, and consumer losses of $1.5 billion or 138 basis points¹⁰. Full year 2012 credit losses (excluding losses from the OCC guidance implementation) declined $3.2 billion or 28 percent from 2011.


¹⁰	Management believes that the presentation in this news release of information excluding the impact of the OCC guidance provides useful disclosure regarding the credit quality of the Company’s loan portfolios.


Net Loan Charge-Offs

											Quarter ended
	Dec. 31, 2012						Sept. 30, 2012				June 30, 2012
				As a					As a				As a
	Net loan			% of			Net loan		% of		Net loan		% of
	charge-			average			charge-		average		charge-		average
($ in millions)	offs			loans (1)			offs		loans (1)		offs		loans (1)

Commercial:
Commercial and industrial	$	209		0.46		%	$	131	0.29	%	$	249	0.58	%
Real estate mortgage		38		0.14				54	0.21			81	0.31
Real estate construction		(18	)	(0.43	)			1	0.03			17	0.40
Lease financing		2		0.04				1	0.03			-	-
Foreign		24		0.25				30	0.29			11	0.11
Total commercial		255		0.29				217	0.24			358	0.42

Consumer:
Real estate 1-4 family first mortgage		649		1.05				673	1.15			743	1.30
Real estate 1-4 family junior lien mortgage		690		3.57				1,036	5.17			689	3.38
Credit card		222		3.71				212	3.67			240	4.37
Other revolving credit and installment		265		1.21				220	1.00			170	0.79
Total consumer		1,826		1.68				2,141	2.01			1,842	1.76
Total	$	2,081		1.05		%	$	2,358	1.21	%	$	2,200	1.15	%


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

Nonperforming Assets

Nonperforming assets decreased by $744 million in the quarter, which included a $394 million increase in nonperforming loans due to the impact of the OCC guidance, ending the quarter at $24.5 billion, compared with $25.3 billion in third quarter 2012. Nonaccrual loans decreased to $20.5 billion from $21.0 billion in third quarter. Foreclosed assets were $4.0 billion, down from $4.2 billion in third quarter 2012.


Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)

	Dec. 31, 2012				Sept. 30, 2012				June 30, 2012
			As a				As a				As a
			% of				% of				% of
	Total		total		Total		total		Total		total
($ in millions)	balances		loans		balances		loans		balances		loans

Commercial:
Commercial and industrial	$	1,422	0.76	%	$	1,404	0.79	%	$	1,549	0.87	%
Real estate mortgage		3,322	3.12			3,599	3.44			3,832	3.63
Real estate construction		1,003	5.93			1,253	7.08			1,421	8.08
Lease financing		27	0.22			49	0.40			43	0.34
Foreign		50	0.13			66	0.17			79	0.20
Total commercial		5,824	1.61			6,371	1.81			6,924	1.96

Consumer:
Real estate 1-4 family first mortgage		11,455	4.58			11,195	4.65			10,368	4.50
Real estate 1-4 family junior lien mortgage		2,922	3.87			3,140	4.02			3,091	3.82
Other revolving credit and installment		285	0.32			338	0.39			195	0.22
Total consumer (1)		14,662	3.34			14,673	3.41			13,654	3.24
Total nonaccrual loans		20,486	2.56			21,044	2.69			20,578	2.65

Foreclosed assets:
GNMA		1,509				1,479				1,465
Non GNMA		2,514				2,730				2,842
Total foreclosed assets		4,023				4,209				4,307
Total nonperforming assets	$	24,509	3.07	%	$	25,253	3.23	%	$	24,885	3.21	%

Change from prior quarter:
Total nonaccrual loans	$	(558)			$	466			$	(1,448)
Total nonperforming assets		(744)				368				(1,758)


(1)Includes $1.4 billion at September 30, 2012, resulting from implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $1.4 billion at December 31, 2012, compared with $1.5 billion at September 30, 2012. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $21.8 billion at December 31, 2012, up slightly from $21.4 billion at September 30, 2012.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $17.5 billion at December 31, 2012, down from $17.8 billion at September 30, 2012. The allowance reflected estimated loan losses attributable to Hurricane Sandy. The allowance coverage to total loans was 2.19 percent, compared with 2.27 percent in third quarter 2012. The allowance covered 2.1 times annualized fourth quarter net charge-offs, compared with 1.9 times in the prior quarter. The allowance coverage to nonaccrual loans was 85 percent at December 31, 2012, compared with 85 percent at September 30, 2012. “We believe the allowance was appropriate for losses inherent in the loan portfolio at December 31, 2012,” said Loughlin.

Business Segment Performance

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


	Quarter ended
	Dec. 31,		Sept. 30,	Dec. 31,
(in millions)		2012	2012	2011
Community Banking	$	2,869	2,740	2,509
Wholesale Banking		2,032	1,993	1,636
Wealth, Brokerage and Retirement		351	338	311

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

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


Selected Financial Information
	Quarter ended
	Dec. 31,		Sept. 30,	Dec. 31,
(in millions)		2012	2012	2011
Total revenue	$	13,782	13,110	13,009
Provision for credit losses		1,757	1,627	2,025
Noninterest expense		8,033	7,402	7,313
Segment net income		2,869	2,740	2,509

(in billions)
Average loans		493.1	485.3	490.6
Average assets		794.2	765.1	753.3
Average core deposits		608.9	594.5	568.4

Community Banking reported net income of $2.9 billion, up $360 million, or 14 percent, from fourth quarter 2011. Revenue increased $773 million, or 6 percent, primarily due to higher mortgage banking revenue and above-average quarterly equity gains, partially offset by lower net interest income. Noninterest expense increased $720 million, or 10 percent, from fourth quarter 2011, largely the result of costs associated with the IFR settlement and a $250 million contribution to the Wells Fargo Foundation, partially mitigated by lower employee benefits costs. The provision for credit losses was $268 million lower than a year ago due to improved portfolio performance. Net income included a benefit of $332 million associated with the realization for tax purposes of a previously written-down Wachovia life insurance investment.

Net income was up $129 million, or 5 percent, from third quarter 2012. Revenue increased $672 million, or 5 percent, from third quarter 2012, primarily due to above-average quarterly equity gains and higher mortgage banking revenue. Noninterest expense increased $631 million, or 9 percent, from third quarter, largely due to costs associated with the IFR settlement and a $250 million contribution to the Wells Fargo Foundation, partially offset by lower employee benefit costs. The provision for credit losses increased $130 million from third quarter, as credit improvement was more than offset by additional charge-offs from the completion of implementation of the OCC guidance issued in third quarter 2012. Net income also included a benefit of $332 million associated with the realization for tax purposes of a previously written-down Wachovia life insurance investment.

Regional Banking

Retail banking
- Retail Bank household cross-sell ratio of 6.05 products per household, up from 5.93 year-over-year¹¹
- Consumer checking accounts essentially flat year-over-year¹¹
- Consumer credit card, lines of credit and loan product solutions (sales) in the retail banking stores in 2012 were up more than 50 percent from 2011
- Partner referrals that resulted in a sale in 2012 were up more than 40 percent from 2011
- Customers rated their experience with Wells Fargo stores and contact centers at an all-time high, based on fourth quarter survey results
Small Business/Business Banking
- Business checking accounts up a net 3.7 percent year-over-year¹¹
- Business Direct credit card, lines of credit and loan product solutions (primarily under $100,000 sold through our retail banking stores) in 2012 were up more than 50 percent from 2011
- $16.0 billion in net new loan commitments to small business customers (primarily with annual revenues less than $20 million) in 2012, up over 30 percent from 2011
- Wells Fargo approved a record $1.24 billion in SBA 7(a) loans in 2012 and, for the fourth consecutive year, is the No. 1 SBA 7(a) lender in dollar volume in the U.S. (U.S. SBA data, federal fiscal years 2009–2012)
Online and Mobile Banking
- 21.4 million active online customers, up 5 percent year-over-year¹¹
- 9.4 million active mobile customers, up 33 percent year-over-year¹¹
- Wells Fargo announced the nationwide expansion of Wells Fargo Mobile^® Deposit
- New Wells Fargo for iPad app which includes access to Wells Fargo accounts, transfers, payments, Wells Fargo Mobile^® Deposit and brokerage access and trading
- Expansion of our Send & Receive Money service which now makes it possible to send money to anyone with an eligible U.S. deposit account using an email address or mobile number

Consumer Lending Group

Home Lending
- Originations of $125 billion, compared with $139 billion in prior quarter
- Applications of $152 billion, compared with $188 billion in prior quarter
- Application pipeline of $81 billion at quarter end, compared with $97 billion at September 30, 2012
- Residential mortgage servicing portfolio of $1.9 trillion
Other Consumer Lending
- Credit card penetration in retail banking households rose to 33.1 percent¹¹, up from 32.1 percent in prior quarter and 29.2 percent in prior year
- Auto originations of $5.4 billion, down 15 percent from prior quarter and up 8 percent from prior year

¹¹ Data as of November 2012. Comparisons are November 2012 compared with November 2011.

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


Selected Financial Information
	Quarter ended
	Dec. 31,		Sept. 30,	Dec. 31,
(in millions)		2012	2012	2011
Total revenue	$	5,993	5,949	5,416
Provision (reversal of provision) for credit losses		60	(57)	31
Noninterest expense		3,007	2,908	2,938
Segment net income		2,032	1,993	1,636

(in billions)
Average loans		279.2	277.1	265.1
Average assets		489.7	490.7	458.3
Average core deposits		240.7	225.4	223.2

Wholesale Banking reported net income of $2.0 billion, up $396 million, or 24 percent, from fourth quarter 2011 led by higher pre-tax pre-provision profit (PTPP)¹² and lower net charge-offs. Revenue increased $577 million, or 11 percent, from fourth quarter 2011 driven by broad-based business growth, including acquisitions and solid loan and deposit growth. Noninterest expense increased $69 million, or 2 percent, from fourth quarter 2011 due to higher personnel expenses related to revenue growth and higher non-personnel expenses related to growth initiatives and compliance and regulatory requirements. Despite an improvement of $71 million in net charge-offs, the provision for credit losses increased $29 million from fourth quarter 2011, due to a lower level of reserve release. The fourth quarter 2012 provision included a $50 million reserve release, compared with a $150 million reserve release a year ago.

¹² See footnote (2) in SUMMARY FINANCIAL DATA table for more information on pre-tax pre-provision profit.

Net income was up $39 million, or 2 percent, from third quarter 2012. Revenue of $6.0 billion increased $44 million, or 1 percent, from third quarter 2012 as strong growth across many businesses, including capital finance, commercial banking, commercial real estate, corporate banking and investment banking was partially offset by lower sales and trading, equity funds gains and lower PCI resolutions. The Wholesale Banking businesses continued to drive higher loan growth and meet customer demand with average loan balances rising to $279 billion in the fourth quarter. Noninterest expense increased $99 million, or 3 percent, from third quarter 2012 on higher personnel expense and operating losses. The provision for credit losses was $60 million in fourth quarter, compared with a net reversal of $57 million in the third quarter. This was due to both increased net loan charge-offs and a decrease in reserve release.

Five percent average loan and 7 percent average asset growth in fourth quarter 2012 compared to fourth quarter 2011. The growth came from nearly all portfolios, including asset backed finance, capital finance, commercial banking, commercial real estate, corporate banking and government and institutional banking
Ten consecutive quarters of average loan growth in Commercial Banking
Fourth quarter 2012 average core deposits, up 8 percent from fourth quarter 2011
Investment Banking full year revenue from commercial and corporate customers increased 30 percent from 2011 full year due to attractive capital markets conditions and continued momentum in cross selling
Wholesale businesses established a branch presence in Toronto, Canada in the quarter, expanding capabilities
Wells Fargo Asset Management announced that it had acquired a minority ownership stake in privately held The Rock Creek Group, a Washington, D.C.-based fund of hedge funds firm with approximately $7 billion in assets under management
Cross-sell of 6.8 products per relationship, up from 6.7 in prior quarter¹³

¹³ As of September 2012.

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


Selected Financial Information
	Quarter ended
	Dec. 31,		Sept. 30,	Dec. 31,
(in millions)		2012	2012	2011
Total revenue	$	3,094	3,033	3,042
Provision for credit losses		15	30	20
Noninterest expense		2,513	2,457	2,520
Segment net income		351	338	311

(in billions)
Average loans		43.3	42.5	42.8
Average assets		171.7	163.8	160.6
Average core deposits		143.4	136.7	135.2

Wealth, Brokerage and Retirement reported net income of $351 million, up 13 percent from fourth quarter 2011. Revenue was $3.1 billion, up 2 percent from fourth quarter 2011. Fourth quarter 2011 results included a $153 million gain on the sale of the H.D. Vest business. Excluding the gain on the sale of H.D. Vest and $46 million in lower gains on deferred compensation plan investments (offset in compensation expense), revenue was up 9 percent, predominantly due to higher asset-based fees and brokerage transaction revenue, partially offset by lower net interest income. Total provision for credit losses decreased $5 million from fourth quarter 2011. The provision in the fourth quarter 2012 and fourth quarter 2011 included an $8 million and a $12 million credit reserve release, respectively. Noninterest expense was flat compared with the fourth quarter 2011. Apart from a $41 million decrease in deferred compensation plan expense (offset in trading income), noninterest expense increased 1 percent, primarily due to higher broker commissions.

Net income was up 4 percent from third quarter 2012. Revenue was up 2 percent from third quarter 2012. Excluding $32 million in lower gains on deferred compensation plan investments, revenue was up 3 percent largely due to higher asset-based fees. Total provision for credit losses decreased $15 million from third quarter 2012; the provision in the third quarter 2012 included a $10 million credit reserve release. Noninterest expense increased 2 percent from the third quarter 2012 driven by higher personnel expense, primarily increased incentives, partially offset by lower deferred compensation expense and reduced non-personnel costs. Apart from a $34 million decrease in deferred compensation, noninterest expense increased 4 percent.

Retail Brokerage

Client assets of $1.2 trillion, up 8 percent from prior year
Managed account assets increased $50 billion, or 20 percent, from prior year driven by strong net flows and market performance
Strong deposit growth, with average balances up 9 percent from prior year
Wells Fargo launched an iPad app in December 2012, which, among other features, enables Wells Fargo Advisors clients to monitor accounts, get real-time quotes and execute trades; trading capability was also added for mobile brokerage clients via the Wells Fargo Mobile App and wf.com

Wealth Management

Client assets of $204 billion, up 3 percent from prior year

Retirement

Institutional Retirement plan assets of $266 billion, up 13 percent from prior year
IRA assets of $297 billion, up 11 percent from prior year

Conference Call

The Company will host a live conference call on Friday, January 11, at 7 a.m. PST (10 a.m. EST). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and http://us.meeting-stream.com/wellsfargocompany_011113.

A replay of the conference call will be available beginning at approximately noon PST (3 p.m. EST) on January 11 through Friday, January 18. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #69450441. The replay will also be available online at wellsfargo.com/invest_relations/earnings.

Cautionary Statement about Forward-Looking Information

In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that this news release contains forward-looking statements about our future financial performance and business. We make forward-looking statements when we use words such as “believe,” “expect,” “anticipate,” “estimate,” “target,” “should,” “may,” “can,” “will,” “outlook,” “project,” “appears” or similar expressions. Forward-looking statements in this news release include, among others, statements about: (i) future credit quality and performance, and the appropriateness of the allowance for loan losses, including our current expectation of future reserve releases; (ii) our expectations regarding noninterest expense and our targeted efficiency ratio; and (iii) our estimate regarding our Tier 1 common equity ratio under proposed Basel III capital rules as of December 31, 2012.

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

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.4 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With more than 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.


Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS

						Pages

Summary Information
Summary Financial Data						18-19

Income
Consolidated Statement of Income						20
Consolidated Statement of Comprehensive Income						21
Condensed Consolidated Statement of Changes in Total Equity						21
Five Quarter Consolidated Statement of Income						22
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)						23-24
Noninterest Income and Noninterest Expense						25-26

Balance Sheet
Consolidated Balance Sheet						27-28
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)						29
Securities Available for Sale						30

Loans
Loans						30
Nonperforming Assets						31
Loans 90 Days or More Past Due and Still Accruing						32
Purchased Credit-Impaired Loans						33-35
Pick-A-Pay Portfolio						36
Non-Strategic and Liquidating Loan Portfolios						37
Home Equity Portfolios						37
Changes in Allowance for Credit Losses						38-39

Equity
Tier 1 Common Equity						40

Operating Segments
Operating Segment Results						41-42

Other
Mortgage Servicing and other related data						43-45


Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

		Quarter ended December 31,			%				Year ended Dec. 31,		%
($ in millions, except per share amounts)		2012		2011	Change				2012	2011	Change
For the Period
Wells Fargo net income	$	5,090		4,107	24		%	$	18,897	15,869	19		%
Wells Fargo net income applicable to common stock		4,857		3,888	25				17,999	15,025	20
Diluted earnings per common share		0.91		0.73	25				3.36	2.82	19
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.46	%	1.25	17				1.41	1.25	13
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders' equity (ROE)		13.35		11.97	12				12.95	11.93	9
Efficiency ratio (1)		58.8		60.7	(3	)			58.5	61.0	(4	)
Total revenue	$	21,948		20,605	7			$	86,086	80,948	6
Pre-tax pre-provision profit (PTPP) (2)		9,052		8,097	12				35,688	31,555	13
Dividends declared per common share		0.22		0.12	83				0.88	0.48	83
Average common shares outstanding		5,272.4		5,271.9	-				5,287.6	5,278.1	-
Diluted average common shares outstanding		5,338.7		5,317.6	-				5,351.5	5,323.4	1
Average loans	$	787,210		768,563	2			$	775,224	757,144	2
Average assets		1,387,056		1,306,728	6				1,341,635	1,270,265	6
Average core deposits (3)		928,824		864,928	7				893,937	826,735	8
Average retail core deposits (4)		646,145		606,810	6				629,320	595,851	6
Net interest margin		3.56	%	3.89	(8	)			3.76	3.94	(5	)
At Period End
Securities available for sale	$	235,199		222,613	6			$	235,199	222,613	6
Loans		799,574		769,631	4				799,574	769,631	4
Allowance for loan losses		17,060		19,372	(12	)			17,060	19,372	(12	)
Goodwill		25,637		25,115	2				25,637	25,115	2
Assets		1,422,968		1,313,867	8				1,422,968	1,313,867	8
Core deposits (3)		945,749		872,629	8				945,749	872,629	8
Wells Fargo stockholders' equity		157,554		140,241	12				157,554	140,241	12
Total equity		158,911		141,687	12				158,911	141,687	12
Capital ratios:
Total equity to assets		11.17	%	10.78	4				11.17	10.78	4
Risk-based capital (5):
Tier 1 capital		11.75		11.33	4				11.75	11.33	4
Total capital		14.63		14.76	(1	)			14.63	14.76	(1	)
Tier 1 leverage (5)		9.47		9.03	5				9.47	9.03	5
Tier 1 common equity (5)(6)		10.12		9.46	7				10.12	9.46	7
Common shares outstanding		5,266.3		5,262.6	-				5,266.3	5,262.6	-
Book value per common share	$	27.64		24.64	12			$	27.64	24.64	12
Common stock price:
High		36.34		27.97	30				36.60	34.25	7
Low		31.25		22.61	38				27.94	22.58	24
Period end		34.18		27.56	24				34.18	27.56	24
Team members (active, full-time equivalent)		269,200		264,200	2				269,200	264,200	2


(1)The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
(3)Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(4)Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(5)The December 31, 2012, ratios are preliminary.
(6)See the "Five Quarter Tier 1 Common Equity Under Basel I" table for additional information.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

		Quarter ended
		Dec. 31,		Sept. 30,	June 30,	Mar. 31,	Dec. 31,
($ in millions, except per share amounts)		2012		2012	2012	2012	2011
For the Quarter
Wells Fargo net income	$	5,090		4,937	4,622	4,248	4,107
Wells Fargo net income applicable to common stock		4,857		4,717	4,403	4,022	3,888
Diluted earnings per common share		0.91		0.88	0.82	0.75	0.73
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.46	%	1.45	1.41	1.31	1.25
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders' equity (ROE)		13.35		13.38	12.86	12.14	11.97
Efficiency ratio (1)		58.8		57.1	58.2	60.1	60.7
Total revenue	$	21,948		21,213	21,289	21,636	20,605
Pre-tax pre-provision profit (PTPP) (2)		9,052		9,101	8,892	8,643	8,097
Dividends declared per common share		0.22		0.22	0.22	0.22	0.12
Average common shares outstanding		5,272.4		5,288.1	5,306.9	5,282.6	5,271.9
Diluted average common shares outstanding		5,338.7		5,355.6	5,369.9	5,337.8	5,317.6
Average loans	$	787,210		776,734	768,223	768,582	768,563
Average assets		1,387,056		1,354,340	1,321,584	1,302,921	1,306,728
Average core deposits (3)		928,824		895,374	880,636	870,516	864,928
Average retail core deposits (4)		646,145		630,053	624,329	616,569	606,810
Net interest margin		3.56	%	3.66	3.91	3.91	3.89
At Quarter End
Securities available for sale	$	235,199		229,350	226,846	230,266	222,613
Loans		799,574		782,630	775,199	766,521	769,631
Allowance for loan losses		17,060		17,385	18,320	18,852	19,372
Goodwill		25,637		25,637	25,406	25,140	25,115
Assets		1,422,968		1,374,715	1,336,204	1,333,799	1,313,867
Core deposits (3)		945,749		901,075	882,137	888,711	872,629
Wells Fargo stockholders' equity		157,554		154,679	148,070	145,516	140,241
Total equity		158,911		156,059	149,437	146,849	141,687
Capital ratios:
Total equity to assets		11.17	%	11.35	11.18	11.01	10.78
Risk-based capital (5):
Tier 1 capital		11.75		11.50	11.69	11.78	11.33
Total capital		14.63		14.51	14.85	15.13	14.76
Tier 1 leverage (5)		9.47		9.40	9.25	9.35	9.03
Tier 1 common equity (5)(6)		10.12		9.92	10.08	9.98	9.46
Common shares outstanding		5,266.3		5,289.6	5,275.7	5,301.5	5,262.6
Book value per common share	$	27.64		27.10	26.06	25.45	24.64
Common stock price:
High		36.34		36.60	34.59	34.59	27.97
Low		31.25		32.62	29.80	27.94	22.61
Period end		34.18		34.53	33.44	34.14	27.56
Team members (active, full-time equivalent)		269,200		267,000	264,400	264,900	264,200


(1)The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
(3)Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(4)Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(5)The December 31, 2012, ratios are preliminary.
(6)See the "Five Quarter Tier 1 Common Equity under Basel I" table for additional information.


Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Dec. 31,				%			Year ended Dec. 31,				%
(in millions, except per share amounts)		2012		2011	Change				2012		2011	Change
Interest income
Trading assets	$	339		400	(15	)	%	$	1,358		1,440	(6	)	%
Securities available for sale		1,897		2,092	(9	)			8,098		8,475	(4	)
Mortgages held for sale		413		456	(9	)			1,825		1,644	11
Loans held for sale		3		16	(81	)			41		58	(29	)
Loans		9,027		9,275	(3	)			36,482		37,247	(2	)
Other interest income		178		139	28				587		548	7
Total interest income		11,857		12,378	(4	)			48,391		49,412	(2	)
Interest expense
Deposits		399		507	(21	)			1,727		2,275	(24	)
Short-term borrowings		24		14	71				79		80	(1	)
Long-term debt		735		885	(17	)			3,110		3,978	(22	)
Other interest expense		56		80	(30	)			245		316	(22	)
Total interest expense		1,214		1,486	(18	)			5,161		6,649	(22	)
Net interest income		10,643		10,892	(2	)			43,230		42,763	1
Provision for credit losses		1,831		2,040	(10	)			7,217		7,899	(9	)
Net interest income after provision for credit losses		8,812		8,852	-				36,013		34,864	3
Noninterest income
Service charges on deposit accounts		1,250		1,091	15				4,683		4,280	9
Trust and investment fees		3,199		2,658	20				11,890		11,304	5
Card fees		736		680	8				2,838		3,653	(22	)
Other fees		1,193		1,096	9				4,519		4,193	8
Mortgage banking		3,068		2,364	30				11,638		7,832	49
Insurance		395		466	(15	)			1,850		1,960	(6	)
Net gains from trading activities		275		430	(36	)			1,707		1,014	68
Net gains (losses) on debt securities available for sale		(63	)	48	NM				(128	)	54	NM
Net gains from equity investments		715		61	NM				1,485		1,482	-
Operating leases		170		60	183				567		524	8
Other		367		759	(52	)			1,807		1,889	(4	)
Total noninterest income		11,305		9,713	16				42,856		38,185	12
Noninterest expense
Salaries		3,735		3,706	1				14,689		14,462	2
Commission and incentive compensation		2,365		2,251	5				9,504		8,857	7
Employee benefits		891		1,012	(12	)			4,611		4,348	6
Equipment		542		607	(11	)			2,068		2,283	(9	)
Net occupancy		728		759	(4	)			2,857		3,011	(5	)
Core deposit and other intangibles		418		467	(10	)			1,674		1,880	(11	)
FDIC and other deposit assessments		307		314	(2	)			1,356		1,266	7
Other		3,910		3,392	15				13,639		13,286	3
Total noninterest expense		12,896		12,508	3				50,398		49,393	2
Income before income tax expense		7,221		6,057	19				28,471		23,656	20
Income tax expense		1,924		1,874	3				9,103		7,445	22
Net income before noncontrolling interests		5,297		4,183	27				19,368		16,211	19
Less: Net income from noncontrolling interests		207		76	172				471		342	38
Wells Fargo net income	$	5,090		4,107	24			$	18,897		15,869	19
Less: Preferred stock dividends and other		233		219	6				898		844	6
Wells Fargo net income applicable to common stock	$	4,857		3,888	25			$	17,999		15,025	20
Per share information
Earnings per common share	$	0.92		0.74	24			$	3.40		2.85	19
Diluted earnings per common share		0.91		0.73	25				3.36		2.82	19
Dividends declared per common share		0.22		0.12	83				0.88		0.48	83
Average common shares outstanding		5,272.4		5,271.9	-				5,287.6		5,278.1	-
Diluted average common shares outstanding		5,338.7		5,317.6	-				5,351.5		5,323.4	1


NM - Not meaningful


Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Quarter ended Dec. 31,					%			Year ended Dec. 31,					%
(in millions)		2012		2011		Change				2012		2011		Change
Wells Fargo net income	$	5,090		4,107		24		%	$	18,897		15,869		19		%
Other comprehensive income, before tax:
Foreign currency translation adjustments:
Net unrealized losses arising during the period		(5	)	(8	)	(38	)			(6	)	(37	)	(84	)
Reclassification of net gains included in net income		-		-		-				(10	)	-		-
Securities available for sale:
Net unrealized gains (losses) arising during the period		(454	)	290		NM				5,143		(588	)	NM
Reclassification of net losses (gains) included in net income		19		(82	)	NM				(271	)	(696	)	(61	)
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period		(11	)	(15	)	(27	)			52		190		(73	)
Reclassification of net gains on cash flow hedges included in net income		(93	)	(117	)	(21	)			(388	)	(571	)	(32	)
Defined benefit plans adjustment:
Net actuarial losses arising during the period		(757	)	(1,077	)	(30	)			(775	)	(1,079	)	(28	)
Amortization of net actuarial loss and prior service cost included in net income		33		28		18				144		99		45
Other comprehensive income (loss), before tax		(1,268	)	(981	)	29				3,889		(2,682	)	NM
Income tax (expense) benefit related to OCI		481		358		34				(1,442	)	1,139		NM
Other comprehensive income (loss), net of tax		(787	)	(623	)	26				2,447		(1,543	)	NM
Less: Other comprehensive income (loss) from noncontrolling interests		(2	)	(2	)	-				4		(12	)	NM
Wells Fargo other comprehensive income (loss), net of tax		(785	)	(621	)	26				2,443		(1,531	)	NM

Wells Fargo comprehensive income		4,305		3,486		23				21,340		14,338		49
Comprehensive income from noncontrolling interests		205		74		177				475		330		44
Total comprehensive income	$	4,510		3,560		27			$	21,815		14,668		49

NM - Not meaningful


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

	Year ended December 31,
(in millions)		2012		2011
Balance, beginning of period	$	141,687		127,889
Cumulative effect of fair value election for certain residential mortgage servicing rights		2		-
Balance, beginning of period - adjusted		141,689		127,889
Wells Fargo net income		18,897		15,869
Wells Fargo other comprehensive income (loss), net of tax		2,443		(1,531	)
Common stock issued		2,488		1,296
Common stock repurchased (1)		(3,918	)	(2,416	)
Preferred stock released by ESOP		888		959
Preferred stock issued		1,377		2,501
Common stock warrants repurchased		(1	)	(2	)
Common stock dividends		(4,658	)	(2,537	)
Preferred stock dividends and other		(898	)	(844	)
Noncontrolling interests and other, net		604		503
Balance, end of period	$	158,911		141,687

(1)For the year ended December 31, 2012, includes $200 million related to a private forward repurchase transaction entered into in fourth quarter 2012 that is expected to settle in first quarter 2013 for an estimated 6 million shares of common stock.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

		Quarter ended
		Dec. 31,		Sept. 30,	June 30,		Mar. 31,		Dec. 31,
(in millions, except per share amounts)		2012		2012	2012		2012		2011
Interest income
Trading assets	$	339		299	343		377		400
Securities available for sale		1,897		1,966	2,147		2,088		2,092
Mortgages held for sale		413		476	477		459		456
Loans held for sale		3		17	12		9		16
Loans		9,027		9,016	9,242		9,197		9,275
Other interest income		178		151	133		125		139
Total interest income		11,857		11,925	12,354		12,255		12,378
Interest expense
Deposits		399		428	443		457		507
Short-term borrowings		24		19	20		16		14
Long-term debt		735		756	789		830		885
Other interest expense		56		60	65		64		80
Total interest expense		1,214		1,263	1,317		1,367		1,486
Net interest income		10,643		10,662	11,037		10,888		10,892
Provision for credit losses		1,831		1,591	1,800		1,995		2,040
Net interest income after provision for credit losses		8,812		9,071	9,237		8,893		8,852
Noninterest income
Service charges on deposit accounts		1,250		1,210	1,139		1,084		1,091
Trust and investment fees		3,199		2,954	2,898		2,839		2,658
Card fees		736		744	704		654		680
Other fees		1,193		1,097	1,134		1,095		1,096
Mortgage banking		3,068		2,807	2,893		2,870		2,364
Insurance		395		414	522		519		466
Net gains from trading activities		275		529	263		640		430
Net gains (losses) on debt securities available for sale		(63	)	3	(61	)	(7	)	48
Net gains from equity investments		715		164	242		364		61
Operating leases		170		218	120		59		60
Other		367		411	398		631		759
Total noninterest income		11,305		10,551	10,252		10,748		9,713
Noninterest expense
Salaries		3,735		3,648	3,705		3,601		3,706
Commission and incentive compensation		2,365		2,368	2,354		2,417		2,251
Employee benefits		891		1,063	1,049		1,608		1,012
Equipment		542		510	459		557		607
Net occupancy		728		727	698		704		759
Core deposit and other intangibles		418		419	418		419		467
FDIC and other deposit assessments		307		359	333		357		314
Other		3,910		3,018	3,381		3,330		3,392
Total noninterest expense		12,896		12,112	12,397		12,993		12,508
Income before income tax expense		7,221		7,510	7,092		6,648		6,057
Income tax expense		1,924		2,480	2,371		2,328		1,874
Net income before noncontrolling interests		5,297		5,030	4,721		4,320		4,183
Less: Net income from noncontrolling interests		207		93	99		72		76
Wells Fargo net income	$	5,090		4,937	4,622		4,248		4,107
Less: Preferred stock dividends and other		233		220	219		226		219
Wells Fargo net income applicable to common stock	$	4,857		4,717	4,403		4,022		3,888
Per share information
Earnings per common share	$	0.92		0.89	0.83		0.76		0.74
Diluted earnings per common share		0.91		0.88	0.82		0.75		0.73
Dividends declared per common share		0.22		0.22	0.22		0.22		0.12
Average common shares outstanding		5,272.4		5,288.1	5,306.9		5,282.6		5,271.9
Diluted average common shares outstanding		5,338.7		5,355.6	5,369.9		5,337.8		5,317.6


Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Quarter ended December 31,
							2012						2011
						Interest						Interest
		Average		Yields/		income/		Average		Yields/		income/
(in millions)		balance		rates		expense		balance		rates		expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	117,047		0.41	%	$	121	67,968		0.52	%	$	89
Trading assets		42,005		3.28			345	45,521		3.57			407
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		5,281		1.64			22	8,708		0.99			22
Securities of U.S. states and political subdivisions		36,391		4.64			422	28,015		4.80			336
Mortgage-backed securities:
Federal agencies		90,898		2.71			617	84,332		3.68			776
Residential and commercial		32,669		6.53			533	34,717		7.05			612
Total mortgage-backed securities		123,567		3.72			1,150	119,049		4.66			1,388
Other debt and equity securities		50,025		3.91			490	47,278		4.38			518
Total securities available for sale		215,264		3.87			2,084	203,050		4.46			2,264
Mortgages held for sale (4)		47,241		3.50			413	44,842		4.07			456
Loans held for sale (4)		135		9.03			3	1,118		5.84			16
Loans:
Commercial:
Commercial and industrial		179,493		3.85			1,736	166,920		4.08			1,713
Real estate mortgage		105,107		4.02			1,061	105,219		4.26			1,130
Real estate construction		17,502		4.97			218	19,624		4.61			228
Lease financing		12,461		6.43			201	12,893		7.41			239
Foreign		39,665		2.32			231	38,740		2.39			233
Total commercial		354,228		3.87			3,447	343,396		4.10			3,543
Consumer:
Real estate 1-4 family first mortgage		244,634		4.39			2,686	229,746		4.74			2,727
Real estate 1-4 family junior lien mortgage		76,908		4.28			826	87,212		4.34			953
Credit card		23,839		12.43			745	21,933		12.96			711
Other revolving credit and installment		87,601		6.05			1,333	86,276		6.23			1,356
Total consumer		432,982		5.15			5,590	425,167		5.39			5,747
Total loans (4)		787,210		4.58			9,037	768,563		4.81			9,290
Other		4,280		5.21			56	4,671		4.32			50
Total earning assets	$	1,213,182		3.96	%	$	12,059	1,135,733		4.41	%	$	12,572
Funding sources
Deposits:
Interest-bearing checking	$	30,858		0.06	%	$	5	35,285		0.06	%	$	6
Market rate and other savings		518,593		0.10			135	485,127		0.14			175
Savings certificates		56,743		1.27			181	64,868		1.43			233
Other time deposits		13,612		1.51			51	12,868		1.85			60
Deposits in foreign offices		69,398		0.15			27	67,213		0.20			33
Total interest-bearing deposits		689,204		0.23			399	665,361		0.30			507
Short-term borrowings		52,820		0.21			28	48,742		0.14			17
Long-term debt		127,505		2.30			735	129,445		2.73			885
Other liabilities		9,975		2.27			56	12,166		2.60			80
Total interest-bearing liabilities		879,504		0.55			1,218	855,714		0.69			1,489
Portion of noninterest-bearing funding sources		333,678		-			-	280,019		-			-
Total funding sources	$	1,213,182		0.40			1,218	1,135,733		0.52			1,489
Net interest margin and net interest income on a taxable-equivalent basis (5)				3.56	%	$	10,841			3.89	%	$	11,083
Noninterest-earning assets
Cash and due from banks	$	16,361						17,718
Goodwill		25,637						25,057
Other		131,876						128,220
Total noninterest-earning assets	$	173,874						170,995
Noninterest-bearing funding sources
Deposits	$	286,924						246,692
Other liabilities		63,025						63,556
Total equity		157,603						140,766
Noninterest-bearing funding sources used to fund earning assets		(333,678	)					(280,019	)
Net noninterest-bearing funding sources	$	173,874						170,995
Total assets	$	1,387,056						1,306,728


(1)Our average prime rate was 3.25% for the quarters ended December 31, 2012 and 2011. The average three-month London Interbank Offered Rate (LIBOR) was 0.32% and 0.48% for the same quarters, respectively.
(2)Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.
(4)Nonaccrual loans and related income are included in their respective loan categories.
(5)Includes taxable-equivalent adjustments of $198 million and $191 million for the quarters ended December 31, 2012 and 2011, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.


Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Year ended December 31,
							2012						2011
							Interest						Interest
		Average		Yields/			income/	Average		Yields/			income/
(in millions)		balance		rates			expense	balance		rates			expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	84,081		0.45	%	$	378	87,186		0.40	%	$	345
Trading assets		41,950		3.29			1,380	39,737		3.68			1,463
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		3,604		1.31			47	5,503		1.25			69
Securities of U.S. states and political subdivisions		34,875		4.48			1,561	24,035		5.09			1,223
Mortgage-backed securities:
Federal agencies		92,887		3.12			2,893	74,665		4.36			3,257
Residential and commercial		33,545		6.75			2,264	31,902		8.20			2,617
Total mortgage-backed securities		126,432		4.08			5,157	106,567		5.51			5,874
Other debt and equity securities		49,245		4.04			1,992	38,625		5.03			1,941
Total securities available for sale		214,156		4.09			8,757	174,730		5.21			9,107
Mortgages held for sale (4)		48,955		3.73			1,825	37,232		4.42			1,644
Loans held for sale (4)		661		6.22			41	1,104		5.25			58
Loans:
Commercial:
Commercial and industrial		173,913		4.01			6,981	157,608		4.37			6,894
Real estate mortgage		105,437		4.18			4,411	102,236		4.07			4,163
Real estate construction		17,963		4.98			894	21,592		4.88			1,055
Lease financing		12,771		7.22			921	12,944		7.54			976
Foreign		39,852		2.47			984	36,768		2.56			941
Total commercial		349,936		4.06			14,191	331,148		4.24			14,029
Consumer:
Real estate 1-4 family first mortgage		234,619		4.55			10,671	226,980		4.89			11,090
Real estate 1-4 family junior lien mortgage		80,840		4.28			3,457	90,705		4.33			3,926
Credit card		22,772		12.67			2,885	21,463		13.02			2,794
Other revolving credit and installment		87,057		6.10			5,313	86,848		6.29			5,463
Total consumer		425,288		5.25			22,326	425,996		5.46			23,273
Total loans (4)		775,224		4.71			36,517	757,144		4.93			37,302
Other		4,438		4.70			209	4,929		4.12			203
Total earning assets	$	1,169,465		4.20	%	$	49,107	1,102,062		4.55	%	$	50,122
Funding sources
Deposits:
Interest-bearing checking	$	30,564		0.06	%	$	19	47,705		0.08	%	$	40
Market rate and other savings		505,310		0.12			592	464,450		0.18			836
Savings certificates		59,484		1.31			782	69,711		1.43			995
Other time deposits		13,363		1.68			225	13,126		2.04			268
Deposits in foreign offices		67,920		0.16			109	61,566		0.22			136
Total interest-bearing deposits		676,641		0.26			1,727	656,558		0.35			2,275
Short-term borrowings		51,196		0.18			94	51,781		0.18			94
Long-term debt		127,547		2.44			3,110	141,079		2.82			3,978
Other liabilities		10,032		2.44			245	10,955		2.88			316
Total interest-bearing liabilities		865,416		0.60			5,176	860,373		0.77			6,663
Portion of noninterest-bearing funding sources		304,049		-			-	241,689		-			-
Total funding sources	$	1,169,465		0.44			5,176	1,102,062		0.61			6,663
Net interest margin and net interest income on a taxable-equivalent basis (5)				3.76	%	$	43,931			3.94	%	$	43,459
Noninterest-earning assets
Cash and due from banks	$	16,303						17,388
Goodwill		25,417						24,904
Other		130,450						125,911
Total noninterest-earning assets	$	172,170						168,203
Noninterest-bearing funding sources
Deposits	$	263,863						215,242
Other liabilities		61,214						57,399
Total equity		151,142						137,251
Noninterest-bearing funding sources used to fund earning assets		(304,049	)					(241,689	)
Net noninterest-bearing funding sources	$	172,170						168,203
Total assets	$	1,341,635						1,270,265


(1)Our average prime rate was 3.25% for the years ended December 31, 2012 and 2011. The average three-month London Interbank Offered Rate (LIBOR) was 0.43% and 0.34% for the same periods, respectively.
(2)Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.
(4)Nonaccrual loans and related income are included in their respective loan categories.
(5)Includes taxable-equivalent adjustments of $701 million and $696 million for the year ended December 31, 2012 and 2011, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.


Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended Dec. 31,				%				Year ended Dec. 31,			%
(in millions)		2012		2011	Change				2012		2011	Change
Service charges on deposit accounts	$	1,250		1,091	15		%	$	4,683		4,280	9		%
Trust and investment fees:
Trust, investment and IRA fees		1,091		1,000	9				4,218		4,099	3
Commissions and all other fees		2,108		1,658	27				7,672		7,205	6
Total trust and investment fees		3,199		2,658	20				11,890		11,304	5
Card fees		736		680	8				2,838		3,653	(22	)
Other fees:
Cash network fees		111		109	2				470		389	21
Charges and fees on loans		448		402	11				1,746		1,641	6
Processing and all other fees		634		585	8				2,303		2,163	6
Total other fees		1,193		1,096	9				4,519		4,193	8
Mortgage banking:
Servicing income, net		250		493	(49	)			1,378		3,266	(58	)
Net gains on mortgage loan origination/sales activities		2,818		1,871	51				10,260		4,566	125
Total mortgage banking		3,068		2,364	30				11,638		7,832	49
Insurance		395		466	(15	)			1,850		1,960	(6	)
Net gains from trading activities		275		430	(36	)			1,707		1,014	68
Net gains (losses) on debt securities available for sale		(63	)	48	NM				(128	)	54	NM
Net gains from equity investments		715		61	NM				1,485		1,482	-
Operating leases		170		60	183				567		524	8
All other		367		759	(52	)			1,807		1,889	(4	)
Total	$	11,305		9,713	16			$	42,856		38,185	12

NM - Not meaningful


NONINTEREST EXPENSE

		Quarter ended Dec. 31,		%				Year ended Dec. 31,		%
(in millions)		2012	2011	Change				2012	2011	Change
Salaries	$	3,735	3,706	1		%	$	14,689	14,462	2		%
Commission and incentive compensation		2,365	2,251	5				9,504	8,857	7
Employee benefits		891	1,012	(12	)			4,611	4,348	6
Equipment		542	607	(11	)			2,068	2,283	(9	)
Net occupancy		728	759	(4	)			2,857	3,011	(5	)
Core deposit and other intangibles		418	467	(10	)			1,674	1,880	(11	)
FDIC and other deposit assessments		307	314	(2	)			1,356	1,266	7
Outside professional services		744	813	(8	)			2,729	2,692	1
Operating losses		953	163	485				2,235	1,261	77
Foreclosed assets		221	370	(40	)			1,061	1,354	(22	)
Contract services		235	356	(34	)			1,011	1,407	(28	)
Outside data processing		227	257	(12	)			910	935	(3	)
Travel and entertainment		211	212	-				839	821	2
Postage, stationery and supplies		192	231	(17	)			799	942	(15	)
Advertising and promotion		142	166	(14	)			578	607	(5	)
Telecommunications		122	129	(5	)			500	523	(4	)
Insurance		62	87	(29	)			453	515	(12	)
Operating leases		27	28	(4	)			109	112	(3	)
All other		774	580	33				2,415	2,117	14
Total	$	12,896	12,508	3			$	50,398	49,393	2


Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

		Quarter ended
		Dec. 31,		Sept. 30,	June 30,		Mar. 31,		Dec. 31,
(in millions)		2012		2012	2012		2012		2011
Service charges on deposit accounts	$	1,250		1,210	1,139		1,084		1,091
Trust and investment fees:
Trust, investment and IRA fees		1,091		1,062	1,041		1,024		1,000
Commissions and all other fees		2,108		1,892	1,857		1,815		1,658
Total trust and investment fees		3,199		2,954	2,898		2,839		2,658
Card fees		736		744	704		654		680
Other fees:
Cash network fees		111		121	120		118		109
Charges and fees on loans		448		426	427		445		402
Processing and all other fees		634		550	587		532		585
Total other fees		1,193		1,097	1,134		1,095		1,096
Mortgage banking:
Servicing income, net		250		197	679		252		493
Net gains on mortgage loan origination/sales activities		2,818		2,610	2,214		2,618		1,871
Total mortgage banking		3,068		2,807	2,893		2,870		2,364
Insurance		395		414	522		519		466
Net gains from trading activities		275		529	263		640		430
Net gains (losses) on debt securities available for sale		(63	)	3	(61	)	(7	)	48
Net gains from equity investments		715		164	242		364		61
Operating leases		170		218	120		59		60
All other		367		411	398		631		759
Total	$	11,305		10,551	10,252		10,748		9,713

FIVE QUARTER NONINTEREST EXPENSE

		Quarter ended
		Dec. 31,		Sept. 30,	June 30,		Mar. 31,		Dec. 31,
(in millions)		2012		2012	2012		2012		2011
Salaries	$	3,735		3,648	3,705		3,601		3,706
Commission and incentive compensation		2,365		2,368	2,354		2,417		2,251
Employee benefits		891		1,063	1,049		1,608		1,012
Equipment		542		510	459		557		607
Net occupancy		728		727	698		704		759
Core deposit and other intangibles		418		419	418		419		467
FDIC and other deposit assessments		307		359	333		357		314
Outside professional services		744		733	658		594		813
Operating losses		953		281	524		477		163
Foreclosed assets		221		247	289		304		370
Contract services		235		237	236		303		356
Outside data processing		227		234	233		216		257
Travel and entertainment		211		208	218		202		212
Postage, stationery and supplies		192		196	195		216		231
Advertising and promotion		142		170	144		122		166
Telecommunications		122		127	127		124		129
Insurance		62		51	183		157		87
Operating leases		27		27	27		28		28
All other		774		507	547		587		580
Total	$	12,896		12,112	12,397		12,993		12,508


Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

	December 31,					%
(in millions, except shares)		2012		2011		Change
Assets
Cash and due from banks	$	21,860		19,440		12		%
Federal funds sold, securities purchased under resale agreements and other short-term investments		137,313		44,367		209
Trading assets		57,482		77,814		(26	)
Securities available for sale		235,199		222,613		6
Mortgages held for sale (includes $42,305 and $44,791 carried at fair value)		47,149		48,357		(2	)
Loans held for sale (includes $6 and $1,176 carried at fair value)		110		1,338		(92	)

Loans (includes $6,206 and $5,916 carried at fair value)		799,574		769,631		4
Allowance for loan losses		(17,060	)	(19,372	)	(12	)
Net loans		782,514		750,259		4
Mortgage servicing rights:
Measured at fair value		11,538		12,603		(8	)
Amortized		1,160		1,408		(18	)
Premises and equipment, net		9,428		9,531		(1	)
Goodwill		25,637		25,115		2
Other assets		93,578		101,022		(7	)
Total assets	$	1,422,968		1,313,867		8
Liabilities
Noninterest-bearing deposits	$	288,207		244,003		18
Interest-bearing deposits		714,628		676,067		6
Total deposits		1,002,835		920,070		9
Short-term borrowings		57,175		49,091		16
Accrued expenses and other liabilities		76,668		77,665		(1	)
Long-term debt (includes $1 and $0 carried at fair value)		127,379		125,354		2
Total liabilities		1,264,057		1,172,180		8
Equity
Wells Fargo stockholders' equity:
Preferred stock		12,883		11,431		13
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 and 5,358,522,061 shares		9,136		8,931		2
Additional paid-in capital		59,802		55,957		7
Retained earnings		77,679		64,385		21
Cumulative other comprehensive income		5,650		3,207		76
Treasury stock – 215,497,298 shares and 95,910,425 shares		(6,610	)	(2,744	)	141
Unearned ESOP shares		(986	)	(926	)	6
Total Wells Fargo stockholders' equity		157,554		140,241		12
Noncontrolling interests		1,357		1,446		(6	)
Total equity		158,911		141,687		12
Total liabilities and equity	$	1,422,968		1,313,867		8


Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

		Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)		2012		2012		2012		2012		2011
Assets
Cash and due from banks	$	21,860		16,986		16,811		17,000		19,440
Federal funds sold, securities purchased under resale agreements and other short-term investments		137,313		100,442		74,635		74,143		44,367
Trading assets		57,482		60,592		64,419		75,696		77,814
Securities available for sale		235,199		229,350		226,846		230,266		222,613
Mortgages held for sale		47,149		50,337		50,462		43,449		48,357
Loans held for sale		110		298		853		958		1,338

Loans		799,574		782,630		775,199		766,521		769,631
Allowance for loan losses		(17,060	)	(17,385	)	(18,320	)	(18,852	)	(19,372	)
Net loans		782,514		765,245		756,879		747,669		750,259
Mortgage servicing rights:
Measured at fair value		11,538		10,956		12,081		13,578		12,603
Amortized		1,160		1,144		1,130		1,074		1,408
Premises and equipment, net		9,428		9,165		9,317		9,291		9,531
Goodwill		25,637		25,637		25,406		25,140		25,115
Other assets		93,578		104,563		97,365		95,535		101,022
Total assets	$	1,422,968		1,374,715		1,336,204		1,333,799		1,313,867
Liabilities
Noninterest-bearing deposits	$	288,207		268,991		253,999		255,013		244,003
Interest-bearing deposits		714,628		683,248		674,934		675,254		676,067
Total deposits		1,002,835		952,239		928,933		930,267		920,070
Short-term borrowings		57,175		51,957		56,023		50,964		49,091
Accrued expenses and other liabilities		76,668		83,659		76,827		75,967		77,665
Long-term debt		127,379		130,801		124,984		129,752		125,354
Total liabilities		1,264,057		1,218,656		1,186,767		1,186,950		1,172,180
Equity
Wells Fargo stockholders' equity:
Preferred stock		12,883		12,283		11,694		12,101		11,431
Common stock		9,136		9,105		9,054		9,008		8,931
Additional paid-in capital		59,802		59,089		58,091		57,569		55,957
Retained earnings		77,679		73,994		70,456		67,239		64,385
Cumulative other comprehensive income		5,650		6,435		4,629		4,216		3,207
Treasury stock		(6,610	)	(5,186	)	(4,638	)	(2,958	)	(2,744	)
Unearned ESOP shares		(986	)	(1,041	)	(1,216	)	(1,659	)	(926	)
Total Wells Fargo stockholders' equity		157,554		154,679		148,070		145,516		140,241
Noncontrolling interests		1,357		1,380		1,367		1,333		1,446
Total equity		158,911		156,059		149,437		146,849		141,687
Total liabilities and equity	$	1,422,968		1,374,715		1,336,204		1,333,799		1,313,867


Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)

	Quarter ended
		Dec. 31, 2012					Sept. 30, 2012					June 30, 2012					Mar. 31, 2012					Dec. 31, 2011
		Average		Yields/			Average		Yields/			Average		Yields/			Average		Yields/			Average		Yields/
($ in billions)		balance		rates			balance		rates			balance		rates			balance		rates			balance		rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	117.1		0.41	%	$	91.6		0.44	%	$	71.3		0.47	%	$	56.0		0.52	%	$	68.0		0.52	%
Trading assets		42.0		3.28			39.5		3.08			42.6		3.27			43.8		3.50			45.5		3.57
Securities available for sale (2):
Securities of U.S. Treasury and federal agencies		5.3		1.64			1.4		1.05			2.0		1.60			5.8		0.97			8.7		0.99
Securities of U.S. states and political subdivisions		36.4		4.64			35.9		4.36			34.5		4.39			32.6		4.52			28.0		4.80
Mortgage-backed securities:
Federal agencies		90.9		2.71			94.3		2.88			95.0		3.37			91.3		3.49			84.3		3.68
Residential and commercial		32.7		6.53			33.1		6.67			33.9		6.97			34.5		6.80			34.7		7.05
Total mortgage-backed securities		123.6		3.72			127.4		3.87			128.9		4.32			125.8		4.40			119.0		4.66
Other debt and equity securities		50.0		3.91			47.7		4.07			48.9		4.39			50.4		3.82			47.3		4.38
Total securities available for sale		215.3		3.87			212.4		3.98			214.3		4.32			214.6		4.19			203.0		4.46
Mortgages held for sale		47.2		3.50			52.1		3.65			49.5		3.86			46.9		3.91			44.8		4.07
Loans held for sale		0.1		9.03			0.9		7.38			0.9		5.48			0.8		5.09			1.1		5.84
Loans:
Commercial:
Commercial and industrial		179.5		3.85			177.5		3.84			171.8		4.21			166.8		4.18			166.9		4.08
Real estate mortgage		105.1		4.02			105.1		4.05			105.5		4.60			106.0		4.07			105.2		4.26
Real estate construction		17.5		4.97			17.7		5.21			17.9		4.96			18.7		4.79			19.6		4.61
Lease financing		12.4		6.43			12.6		6.60			12.9		6.86			13.1		8.89			12.9		7.41
Foreign		39.7		2.32			39.7		2.46			38.9		2.57			41.2		2.52			38.8		2.39
Total commercial		354.2		3.87			352.6		3.91			347.0		4.28			345.8		4.16			343.4		4.10
Consumer:
Real estate 1-4 family first mortgage		244.6		4.39			234.0		4.51			230.0		4.62			229.7		4.69			229.8		4.74
Real estate 1-4 family junior lien mortgage		76.9		4.28			79.7		4.26			82.1		4.30			84.7		4.27			87.2		4.34
Credit card		23.9		12.43			23.0		12.64			22.1		12.70			22.1		12.93			21.9		12.96
Other revolving credit and installment		87.6		6.05			87.4		6.08			87.0		6.09			86.3		6.19			86.3		6.23
Total consumer		433.0		5.15			424.1		5.23			421.2		5.29			422.8		5.34			425.2		5.39
Total loans		787.2		4.58			776.7		4.63			768.2		4.83			768.6		4.81			768.6		4.81
Other		4.3		5.21			4.4		4.62			4.5		4.56			4.6		4.42			4.7		4.32
Total earning assets	$	1,213.2		3.96	%	$	1,177.6		4.09	%	$	1,151.3		4.37	%	$	1,135.3		4.39	%	$	1,135.7		4.41	%
Funding sources
Deposits:
Interest-bearing checking	$	30.9		0.06	%	$	28.8		0.06	%	$	30.4		0.07	%	$	32.2		0.05	%	$	35.3		0.06	%
Market rate and other savings		518.6		0.10			506.1		0.12			500.3		0.12			496.0		0.12			485.1		0.14
Savings certificates		56.7		1.27			58.2		1.29			60.4		1.34			62.7		1.36			64.9		1.43
Other time deposits		13.6		1.51			14.4		1.49			12.8		1.83			12.7		1.93			12.9		1.85
Deposits in foreign offices		69.4		0.15			71.8		0.16			65.6		0.17			64.8		0.16			67.2		0.20
Total interest-bearing deposits		689.2		0.23			679.3		0.25			669.5		0.27			668.4		0.27			665.4		0.30
Short-term borrowings		52.8		0.21			51.9		0.17			51.7		0.19			48.4		0.15			48.7		0.14
Long-term debt		127.5		2.30			127.5		2.37			127.7		2.48			127.5		2.60			129.4		2.73
Other liabilities		10.0		2.27			9.9		2.40			10.4		2.48			9.8		2.63			12.2		2.60
Total interest-bearing liabilities		879.5		0.55			868.6		0.58			859.3		0.62			854.1		0.64			855.7		0.69
Portion of noninterest-bearing funding sources		333.7		-			309.0		-			292.0		-			281.2		-			280.0		-
Total funding sources	$	1,213.2		0.40		$	1,177.6		0.43		$	1,151.3		0.46		$	1,135.3		0.48		$	1,135.7		0.52
Net interest margin on a taxable-equivalent basis				3.56	%				3.66	%				3.91	%				3.91	%				3.89	%
Noninterest-earning assets
Cash and due from banks	$	16.4					15.7					16.2					17.0					17.7
Goodwill		25.6					25.5					25.3					25.1					25.1
Other		131.9					135.5					128.8					125.5					128.2
Total noninterest-earnings assets	$	173.9					176.7					170.3					167.6					171.0
Noninterest-bearing funding sources
Deposits	$	286.9					267.2					254.5					246.6					246.7
Other liabilities		63.1					66.1					58.4					57.2					63.5
Total equity		157.6					152.4					149.4					145.0					140.8
Noninterest-bearing funding sources used to fund earning assets		(333.7	)				(309.0	)				(292.0	)				(281.2	)				(280.0	)
Net noninterest-bearing funding sources	$	173.9					176.7					170.3					167.6					171.0
Total assets	$	1,387.1					1,354.3					1,321.6					1,302.9					1,306.7

(1)		Our average prime rate was 3.25% for quarters ended December 31, September 30, June 30 and March 31, 2012, and December 31, 2011. The average three-month London Interbank Offered Rate (LIBOR) was 0.32%, 0.43%, 0.47%, 0.51% and 0.48% for the same quarters, respectively.
(2)		Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER SECURITIES AVAILABLE FOR SALE

		Dec. 31,	Sept. 30,	June 30,	Mar. 31,	Dec. 31,
(in millions)		2012	2012	2012	2012	2011
Securities of U.S. Treasury and federal agencies	$	7,146	1,869	1,493	4,678	6,968
Securities of U.S. states and political subdivisions		38,676	37,925	37,251	34,237	32,593
Mortgage-backed securities:
Federal agencies		97,285	102,713	101,863	102,665	96,754
Residential and commercial		35,899	36,098	35,646	36,486	35,986
Total mortgage-backed securities		133,184	138,811	137,509	139,151	132,740
Other debt securities		53,408	47,993	47,746	49,047	46,895
Total debt securities available for sale		232,414	226,598	223,999	227,113	219,196
Marketable equity securities		2,785	2,752	2,847	3,153	3,417
Total securities available for sale	$	235,199	229,350	226,846	230,266	222,613


FIVE QUARTER LOANS

		Dec. 31,	Sept. 30,	June 30,	Mar. 31,	Dec. 31,
(in millions)		2012	2012	2012	2012	2011
Commercial:
Commercial and industrial	$	187,759	178,191	177,646	168,546	167,216
Real estate mortgage		106,340	104,611	105,666	105,874	105,975
Real estate construction		16,904	17,710	17,594	18,549	19,382
Lease financing		12,424	12,279	12,729	13,143	13,117
Foreign (1)		37,771	39,741	40,417	39,637	39,760
Total commercial		361,198	352,532	354,052	345,749	345,450
Consumer:
Real estate 1-4 family first mortgage		249,900	240,554	230,263	228,885	228,894
Real estate 1-4 family junior lien mortgage		75,465	78,091	80,881	83,173	85,991
Credit card		24,640	23,692	22,706	21,998	22,836
Other revolving credit and installment		88,371	87,761	87,297	86,716	86,460
Total consumer		438,376	430,098	421,147	420,772	424,181
Total loans (2)	$	799,574	782,630	775,199	766,521	769,631

(1)		Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign if the borrower's primary address is outside of the United States.
(2)		Includes $31.0 billion, $32.5 billion, $33.8 billion, $35.5 billion and $36.7 billion of purchased credit-impaired (PCI) loans at December 31, September 30, June 30, and March 31, 2012, and December 31, 2011, respectively. See the PCI loans table for detail of PCI loans.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)

		Dec. 31,		Sept. 30,	June 30,	Mar. 31,	Dec. 31,
(in millions)		2012		2012	2012	2012	2011
Nonaccrual loans:
Commercial:
Commercial and industrial	$	1,422		1,404	1,549	1,726	2,142
Real estate mortgage		3,322		3,599	3,832	4,081	4,085
Real estate construction		1,003		1,253	1,421	1,709	1,890
Lease financing		27		49	43	45	53
Foreign		50		66	79	38	47
Total commercial		5,824		6,371	6,924	7,599	8,217
Consumer:
Real estate 1-4 family first mortgage		11,455		11,195	10,368	10,683	10,913
Real estate 1-4 family junior lien mortgage (1)		2,922		3,140	3,091	3,558	1,975
Other revolving credit and installment		285		338	195	186	199
Total consumer (2)		14,662		14,673	13,654	14,427	13,087
Total nonaccrual loans (3)(4)(5)		20,486		21,044	20,578	22,026	21,304
As a percentage of total loans		2.56	%	2.69	2.65	2.87	2.77
Foreclosed assets:
Government insured/guaranteed (6)	$	1,509		1,479	1,465	1,352	1,319
Non-government insured/guaranteed		2,514		2,730	2,842	3,265	3,342
Total foreclosed assets		4,023		4,209	4,307	4,617	4,661
Total nonperforming assets	$	24,509		25,253	24,885	26,643	25,965
As a percentage of total loans		3.07	%	3.23	3.21	3.48	3.37

(1)		Includes $1.7 billion at March 31, 2012, resulting from implementation of the Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loans and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties issued on January 31, 2012. This guidance accelerated the timing of placing these loans on nonaccrual to coincide with the timing of placing the related real estate 1-4 family first mortgage loans on nonaccrual.
(2)		Includes $1.4 billion at September 30, 2012, resulting from implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.
(3)		Also includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(4)		Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(5)		Real estate 1-4 family mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status because they are insured or guaranteed.
(6)		Consistent with regulatory reporting requirements, foreclosed real estate securing government insured/guaranteed loans is classified as nonperforming. Both principal and interest for government insured/guaranteed loans secured by the foreclosed real estate are collectible because the loans are insured by the FHA or guaranteed by the VA.


Wells Fargo & Company and Subsidiaries
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING

		Dec. 31,	Sept. 30,	June 30,	Mar. 31,	Dec. 31,
(in millions)		2012	2012	2012	2012	2011
Loans 90 days or more past due and still accruing:
Total (excluding PCI)(1):	$	23,245	22,894	22,872	22,555	22,569
Less: FHA insured/VA guaranteed (2)		20,745	20,320	20,368	19,681	19,240
Less: Student loans guaranteed under the FFELP (3)		1,065	1,082	1,144	1,238	1,281
Total, not government insured/guaranteed	$	1,435	1,492	1,360	1,636	2,048

By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	47	49	44	104	153
Real estate mortgage		228	206	184	289	256
Real estate construction		27	41	25	25	89
Foreign		1	2	3	7	6
Total commercial		303	298	256	425	504
Consumer:
Real estate 1-4 family first mortgage (4)		564	627	561	616	781
Real estate 1-4 family junior lien mortgage (4)(5)		133	151	159	156	279
Credit card		310	288	274	319	346
Other revolving credit and installment		125	128	110	120	138
Total consumer		1,132	1,194	1,104	1,211	1,544
Total, not government insured/guaranteed	$	1,435	1,492	1,360	1,636	2,048

(1)		The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $6.0 billion, $6.2 billion, $6.6 billion, $7.1 billion and $8.7 billion, at December 31, September 30, June 30 and March 31, 2012 and December 31, 2011, respectively. These amounts are excluded from the above table as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.
(2)		Represents loans whose repayments are insured by the FHA or guaranteed by the VA.
(3)		Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program (FFELP).
(4)		Includes mortgages held for sale 90 days or more past due and still accruing.
(5)		During first quarter 2012, $43 million of 1-4 family junior lien mortgages were transferred to nonaccrual upon implementation of the Interagency Guidance issued on January 31, 2012.

Wells Fargo & Company and Subsidiaries
PURCHASED CREDIT-IMPAIRED (PCI) LOANS

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans predominately represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date. Under the accounting guidance for PCI loans, the excess of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan, or pool of loans, in situations where there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. Subsequent to acquisition, we regularly evaluate our estimates of cash flows expected to be collected. These evaluations, performed quarterly, require the continued usage of key assumptions and estimates, similar to the initial estimate of fair value. If we have probable decreases in the expected cash flows (other than due to a decrease in rate indices), we charge the provision for credit losses, resulting in an increase to the allowance for loan losses. If we have probable and significant increases in the expected cash flows subsequent to establishing an additional allowance, we first reverse any previously established allowance and then increase interest income over the remaining life of the loan, or pool of loans. As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.



			December 31,
(in millions)		2012	2011	2010	2009	2008
Commercial:
Commercial and industrial	$	259	399	718	1,911	4,580
Real estate mortgage		1,970	3,270	2,855	4,137	5,803
Real estate construction		877	1,745	2,949	5,207	6,462
Foreign		871	1,353	1,413	1,733	1,859
Total commercial		3,977	6,767	7,935	12,988	18,704
Consumer:
Real estate 1-4 family first mortgage		26,839	29,746	33,245	38,386	39,214
Real estate 1-4 family junior lien mortgage		152	206	250	331	728
Other revolving credit and installment		-	-	-	-	151
Total consumer		26,991	29,952	33,495	38,717	40,093
Total PCI loans (carrying value)	$	30,968	36,719	41,430	51,705	58,797

Wells Fargo & Company and Subsidiaries
CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS

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



						Other
(in millions)		Commercial		Pick-a-Pay		consumer		Total
Balance, December 31, 2008	$	10,410		26,485		4,069		40,964
Addition of nonaccretable difference due to acquisitions		188		-		-		188
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(1,345	)	-		-		(1,345	)
Loans resolved by sales to third parties (2)		(299	)	-		(85	)	(384	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(1,216	)	(2,383	)	(614	)	(4,213	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(6,809	)	(14,976	)	(2,718	)	(24,503	)
Balance, December 31, 2011		929		9,126		652		10,707
Addition of nonaccretable difference due to acquisitions		7		-		-		7
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(81	)	-		-		(81	)
Loans resolved by sales to third parties (2)		(4	)	-		-		(4	)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(315	)	(648	)	(178	)	(1,141	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)(5)		(114	)	(2,246	)	(164	)	(2,524	)
Balance, December 31, 2012	$	422		6,232		310		6,964

Balance, September 30, 2012	$	557		6,679		370		7,606
Addition of nonaccretable difference due to acquisitions		7		-		-		7
Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(5	)	-		-		(5	)
Loans resolved by sales to third parties (2)		-		-		-		-
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(127	)	-		(8	)	(135	)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)(5)		(10	)	(447	)	(52	)	(509	)
Balance, December 31, 2012	$	422		6,232		310		6,964

(1)		Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases for settlements with borrowers due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations.
(2)		Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale.
(3)		Reclassification of nonaccretable difference to accretable yield for loans with increased cash flow estimates will result in increased interest income as a prospective yield adjustment over the remaining life of the loan or pool of loans.
(4)		Write-downs to net realizable value of PCI loans are absorbed by the nonaccretable difference when severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.
(5)		Quarter and year ended December 31, 2012, include $86 million and $462 million, respectively, resulting from the implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be written down to net realizable collateral value, regardless of their delinquency status.

Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS

The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated lives of the PCI loans using the effective yield method. The accretable yield is affected by:

	●	Changes in interest rate indices for variable rate PCI loans – Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows;
	●	Changes in prepayment assumptions – Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and
	●	Changes in the expected principal and interest payments over the estimated life – Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.

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



(in millions)
Balance, December 31, 2008	$	10,447
Addition of accretable yield due to acquisitions		128
Accretion into interest income (1)		(7,199	)
Accretion into noninterest income due to sales (2)		(237	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		4,213
Changes in expected cash flows that do not affect nonaccretable difference (3)		8,609
Balance, December 31, 2011		15,961
Addition of accretable yield due to acquisitions		3
Accretion into interest income (1)		(2,152	)
Accretion into noninterest income due to sales (2)		(5	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		1,141
Changes in expected cash flows that do not affect nonaccretable difference (3)		3,600
Balance, December 31, 2012	$	18,548

Balance, September 30, 2012		18,912
Addition of accretable yield due to acquisitions		3
Accretion into interest income (1)		(513	)
Accretion into noninterest income due to sales (2)		-
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		135
Changes in expected cash flows that do not affect nonaccretable difference (3)		11
Balance, December 31, 2012	$	18,548

(1)		Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2)		Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3)		Represents changes in cash flows expected to be collected due to changes in interest rates on variable rate PCI loans, changes in prepayment assumptions and the impact of modifications.


CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES

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


					Other
(in millions)		Commercial		Pick-a-Pay	consumer		Total
Balance, December 31, 2008	$	-		-	-		-
Provision for losses due to credit deterioration		1,668		-	116		1,784
Charge-offs		(1,503	)	-	(50	)	(1,553	)
Balance, December 31, 2011		165		-	66		231
Provision for losses due to credit deterioration		25		-	7		32
Charge-offs		(102	)	-	(44	)	(146	)
Balance, December 31, 2012	$	88		-	29		117

Balance, September 30, 2012	$	98		-	62		160
Provision for losses due to credit deterioration / (reversal of provision)		14		-	(2	)	12
Charge-offs		(24	)	-	(31	)	(55	)
Balance, December 31, 2012	$	88		-	29		117


Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO (1)

		December 31, 2012
		PCI loans							All other loans
							Ratio of				Ratio of
		Adjusted					carrying				carrying
		unpaid	Current				value to				value to
		principal	LTV		Carrying		current		Carrying		current
(in millions)		balance (2)	ratio (3)		value (4)		value (5)		value (4)		value (5)
California	$	21,642	113	%	$	17,337	90	%	$	15,586	82	%
Florida		2,824	112			2,262	85			3,265	93
New Jersey		1,213	92			1,204	88			2,056	79
New York		697	90			680	85			916	79
Texas		303	79			284	73			1,290	64
Other states		5,324	102			4,567	86			8,827	84
Total Pick-a-Pay loans	$	32,003			$	26,334			$	31,940

(1)		The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2012.
(2)		Adjusted unpaid principal balance includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.
(3)		The current LTV ratio is calculated as the adjusted unpaid principal balance divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.
(4)		Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include the nonaccretable difference and the accretable yield and, for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.
(5)		The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.


Wells Fargo & Company and Subsidiaries
NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS

		Dec. 31,	Sept. 30,	June 30,	Mar. 31,	Dec. 31,
(in millions)		2012	2012	2012	2012	2011
Commercial:
Legacy Wachovia commercial and industrial, commercial real estate and foreign PCI loans (1)	$	3,170	3,836	4,278	5,213	5,695
Total commercial		3,170	3,836	4,278	5,213	5,695
Consumer:
Pick-a-Pay mortgage (1)		58,274	60,080	62,045	63,983	65,652
Liquidating home equity		4,647	4,951	5,199	5,456	5,710
Legacy Wells Fargo Financial indirect auto		830	1,104	1,454	1,907	2,455
Legacy Wells Fargo Financial debt consolidation		14,519	15,002	15,511	16,013	16,542
Education Finance - government guaranteed		12,465	12,951	13,823	14,800	15,376
Legacy Wachovia other PCI loans (1)		657	732	818	860	896
Total consumer		91,392	94,820	98,850	103,019	106,631
Total non-strategic and liquidating loan portfolios	$	94,562	98,656	103,128	108,232	112,326

(1)

Net of purchase accounting adjustments related to PCI loans.


HOME EQUITY PORTFOLIOS (1)

				% of loans
				two payments			Loss rate (annualized)
		Outstanding balance		or more past due			Quarter ended
		December 31,		December 31,			December 31,
(in millions)		2012	2011	2012		2011	2012 (2	)	2011
Core portfolio (3)
California	$	22,900	25,555	2.46	%	3.03	2.89		3.42
Florida		9,763	10,870	4.15		4.99	3.09		4.30
New Jersey		7,338	7,973	3.43		3.73	2.30		2.22
Virginia		4,758	5,248	2.04		2.15	1.78		1.31
Pennsylvania		4,683	5,071	2.67		2.82	1.72		1.41
Other		40,985	46,165	2.59		2.79	2.77		2.50
Total		90,427	100,882	2.77		3.13	2.69		2.79
Liquidating portfolio
California		1,633	2,024	3.99		5.50	11.21		11.93
Florida		223	265	5.79		7.02	6.29		9.71
Arizona		95	116	3.85		6.64	10.65		17.54
Texas		77	97	1.47		0.93	2.96		1.57
Minnesota		64	75	3.62		2.83	8.09		8.13
Other		2,555	3,133	3.62		4.13	6.75		7.12
Total		4,647	5,710	3.82		4.73	8.33		9.09
Total core and liquidating portfolios	$	95,074	106,592	2.82		3.22	2.97		3.13

(1)		Consists predominantly of real estate 1-4 family junior lien mortgages and first and junior lines of credit secured by real estate, but excludes PCI loans because their losses are generally covered by PCI accounting adjustment at the date of acquisition, and excludes real estate 1-4 family first lien open-ended line reverse mortgages because they do not have scheduled payments. These reverse mortgage loans are insured by the FHA.
(2)		Reflects the implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be written down to net realizable collateral value, regardless of their delinquency status.
(3)		Includes $1.3 billion at December 31, 2012, and $1.5 billion at December 31, 2011, associated with the Pick-a-Pay portfolio.


Wells Fargo & Company and Subsidiaries
CHANGES IN ALLOWANCE FOR CREDIT LOSSES


		Quarter ended Dec. 31,					Year ended Dec. 31,
(in millions)		2012			2011		2012		2011
Balance, beginning of period	$	17,803			20,372		19,668		23,463
Provision for credit losses		1,831			2,040		7,217		7,899
Interest income on certain impaired loans (1)		(70	)		(86	)	(315	)	(332	)
Loan charge-offs:
Commercial:
Commercial and industrial		(302	)		(416	)	(1,306	)	(1,598	)
Real estate mortgage		(86	)		(153	)	(382	)	(636	)
Real estate construction		(10	)		(35	)	(191	)	(351	)
Lease financing		(6	)		(8	)	(24	)	(38	)
Foreign		(30	)		(52	)	(111	)	(173	)
Total commercial		(434	)		(664	)	(2,014	)	(2,796	)
Consumer:
Real estate 1-4 family first mortgage		(694	)		(904	)	(3,013	)	(3,883	)
Real estate 1-4 family junior lien mortgage		(765	)		(856	)	(3,437	)	(3,763	)
Credit card		(259	)		(303	)	(1,101	)	(1,449	)
Other revolving credit and installment		(381	)		(412	)	(1,408	)	(1,724	)
Total consumer (2)		(2,099	)		(2,475	)	(8,959	)	(10,819	)
Total loan charge-offs		(2,533	)		(3,139	)	(10,973	)	(13,615	)
Loan recoveries:
Commercial:
Commercial and industrial		93			106		461		419
Real estate mortgage		48			36		163		143
Real estate construction		28			40		124		146
Lease financing		4			4		19		24
Foreign		6			7		32		45
Total commercial		179			193		799		777
Consumer:
Real estate 1-4 family first mortgage		45			60		157		405
Real estate 1-4 family junior lien mortgage		75			56		259		218
Credit card		37			47		185		251
Other revolving credit and installment		116			143		539		665
Total consumer		273			306		1,140		1,539
Total loan recoveries		452			499		1,939		2,316
Net loan charge-offs (3)		(2,081	)		(2,640	)	(9,034	)	(11,299	)
Allowances related to business combinations/other		(6	)		(18	)	(59	)	(63	)
Balance, end of period	$	17,477			19,668		17,477		19,668
Components:
Allowance for loan losses	$	17,060			19,372		17,060		19,372
Allowance for unfunded credit commitments		417			296		417		296
Allowance for credit losses (4)	$	17,477			19,668		17,477		19,668
Net loan charge-offs (annualized) as a percentage of average total loans (3)		1.05		%	1.36		1.17		1.49
Allowance for loan losses as a percentage of total loans (4)		2.13			2.52		2.13		2.52
Allowance for credit losses as a percentage of total loans (4)		2.19			2.56		2.19		2.56

(1)		Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan's effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.
(2)		Includes $321 million and $888 million for the quarter and year ended December 31, 2012, respectively, resulting from the implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.
(3)		For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.
(4)		The allowance for credit losses includes $117 million and $231 million at December 31, 2012 and 2011, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES

		Quarter ended
		Dec. 31,			Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)		2012			2012		2012		2012		2011
Balance, beginning of quarter	$	17,803			18,646		19,129		19,668		20,372
Provision for credit losses		1,831			1,591		1,800		1,995		2,040
Interest income on certain impaired loans (1)		(70	)		(76	)	(82	)	(87	)	(86	)
Loan charge-offs:
Commercial:
Commercial and industrial		(302	)		(285	)	(360	)	(359	)	(416	)
Real estate mortgage		(86	)		(100	)	(114	)	(82	)	(153	)
Real estate construction		(10	)		(41	)	(60	)	(80	)	(35	)
Lease financing		(6	)		(5	)	(5	)	(8	)	(8	)
Foreign		(30	)		(35	)	(17	)	(29	)	(52	)
Total commercial		(434	)		(466	)	(556	)	(558	)	(664	)
Consumer:
Real estate 1-4 family first mortgage		(694	)		(719	)	(772	)	(828	)	(904	)
Real estate 1-4 family junior lien mortgage		(765	)		(1,095	)	(757	)	(820	)	(856	)
Credit card		(259	)		(255	)	(286	)	(301	)	(303	)
Other revolving credit and installment		(381	)		(336	)	(318	)	(373	)	(412	)
Total consumer (2)		(2,099	)		(2,405	)	(2,133	)	(2,322	)	(2,475	)
Total loan charge-offs		(2,533	)		(2,871	)	(2,689	)	(2,880	)	(3,139	)
Loan recoveries:
Commercial:
Commercial and industrial		93			154		111		103		106
Real estate mortgage		48			46		33		36		36
Real estate construction		28			40		43		13		40
Lease financing		4			4		5		6		4
Foreign		6			5		6		15		7
Total commercial		179			249		198		173		193
Consumer:
Real estate 1-4 family first mortgage		45			46		29		37		60
Real estate 1-4 family junior lien mortgage		75			59		68		57		56
Credit card		37			43		46		59		47
Other revolving credit and installment		116			116		148		159		143
Total consumer		273			264		291		312		306
Total loan recoveries		452			513		489		485		499
Net loan charge-offs		(2,081	)		(2,358	)	(2,200	)	(2,395	)	(2,640	)
Allowances related to business combinations/other		(6	)		-		(1	)	(52	)	(18	)
Balance, end of quarter	$	17,477			17,803		18,646		19,129		19,668
Components:
Allowance for loan losses	$	17,060			17,385		18,320		18,852		19,372
Allowance for unfunded credit commitments		417			418		326		277		296
Allowance for credit losses	$	17,477			17,803		18,646		19,129		19,668
Net loan charge-offs (annualized) as a percentage of average total loans		1.05		%	1.21		1.15		1.25		1.36
Allowance for loan losses as a percentage of:
Total loans		2.13			2.22		2.36		2.46		2.52
Nonaccrual loans		83			83		89		86		91
Nonaccrual loans and other nonperforming assets		70			69		74		71		75
Allowance for credit losses as a percentage of:
Total loans		2.19			2.27		2.41		2.50		2.56
Nonaccrual loans		85			85		91		87		92
Nonaccrual loans and other nonperforming assets		71			70		75		72		76

(1)		Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan's effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.
(2)		Includes $321 million and $567 million for the quarters ended December 31 and September 30, 2012, respectively, resulting from the implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER TIER 1 COMMON EQUITY UNDER BASEL I (1)

			Dec. 31,			Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in billions)			2012			2012		2012		2012		2011
Total equity		$	158.9			156.1		149.4		146.8		141.7
Noncontrolling interests			(1.3	)		(1.4	)	(1.3	)	(1.3	)	(1.5	)
Total Wells Fargo stockholders' equity		$	157.6			154.7		148.1		145.5		140.2
Adjustments:
Preferred equity			(12.0	)		(11.3	)	(10.6	)	(10.6	)	(10.6	)
Goodwill and intangible assets (other than MSRs)			(32.9	)		(33.4	)	(33.5	)	(33.7	)	(34.0	)
Applicable deferred taxes			3.2			3.3		3.5		3.7		3.8
Deferred tax asset limitation			-			-		-		-		-
MSRs over specified limitations			(0.7	)		(0.7	)	(0.7	)	(0.9	)	(0.8	)
Cumulative other comprehensive income			(5.6	)		(6.4	)	(4.6	)	(4.1	)	(3.1	)
Other			(0.5	)		(0.4	)	(0.5	)	(0.4	)	(0.4	)
Tier 1 common equity	(A)	$	109.1			105.8		101.7		99.5		95.1
Total risk-weighted assets (2)	(B)	$	1,077.9			1,067.1		1,008.6		996.8		1,005.6
Tier 1 common equity to total risk-weighted assets (2)	(A)/(B)		10.12		%	9.92		10.08		9.98		9.46

(1)		Tier 1 common equity is a non-generally accepted accounting principle (GAAP) financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews Tier 1 common equity along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.
(2)		Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The Company’s December 31, 2012, risk-weighted assets and resulting Tier 1 common equity to total risk-weighted assets are preliminary and reflect total estimated on-balance sheet and total estimated derivative and off-balance sheet risk-weighted assets of $861.6 billion and $216.3 billion, respectively. Effective September 30, 2012, the Company refined its determination of the risk weighting of certain unused lending commitments that provide for the ability to issue standby letters of credit and commitments to issue standby letters of credit under syndication arrangements where the Company has an obligation to issue in a lead agent or similar capacity beyond its contractual participation level.


TIER 1 COMMON EQUITY UNDER BASEL III (ESTIMATED) (1) (2)

			Dec. 31,
(in billions)			2012
Tier 1 common equity under Basel I		$	109.1
Adjustments from Basel I to Basel III (3) (5):
Cumulative other comprehensive income related to AFS securities and defined benefit pension plans			5.3
Other			0.2
Total adjustments from Basel I to Basel III			5.5
Threshold deductions, as defined under Basel III (4) (5)			(0.7	)
Tier 1 common equity anticipated under Basel III	(C)	$	113.9
Total risk-weighted assets anticipated under Basel III (6)	(D)	$	1,393.1
Tier 1 common equity to total risk-weighted assets anticipated under Basel III	(C)/(D)		8.18		%

(1)		Tier 1 common equity is a non-generally accepted accounting principle (GAAP) financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews Tier 1 common equity along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.
(2)		The Basel III Tier 1 common equity and risk-weighted assets are calculated based on management’s current interpretation of the Basel III capital rules proposed by federal banking agencies in notices of proposed rulemaking announced in June 2012. The proposed rules and interpretations and assumptions used in estimating Basel III calculations are subject to change depending on final promulgations of Basel III capital rules.
(3)		Adjustments from Basel I to Basel III represent reconciling adjustments, primarily certain components of cumulative other comprehensive income deducted for Basel I purposes, to derive Tier 1 common equity under Basel III.
(4)		Threshold deductions, as defined under Basel III, include individual and aggregate limitations, as a percentage of Tier 1 common equity, with respect to MSRs, deferred tax assets and investments in unconsolidated financial companies.
(5)		Volatility in interest rates can have a significant impact on the valuation of cumulative other comprehensive income and MSRs and therefore, may impact adjustments from Basel I to Basel III, and MSRs subject to threshold deductions, as defined under Basel III, in future reporting periods.
(6)		Under current Basel proposals, risk-weighted assets incorporate different classifications of assets, with certain risk weights based on a borrower's credit rating or Wells Fargo's own risk models, along with adjustments to address a combination of credit/counterparty, operational and market risks, and other Basel III elements. The amount of risk-weighted assets anticipated under Basel III is preliminary and subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory authorities.


Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)

		Community		Wholesale			Wealth, Brokerage						Consolidated
(income/expense in millions,		Banking		Banking			and Retirement		Other (2)				Company
average balances in billions)		2012	2011	2012	2011		2012	2011	2012		2011		2012	2011
Quarter ended Dec. 31,
Net interest income (3)	$	7,166	7,420	3,092	3,071		689	731	(304	)	(330	)	10,643	10,892
Provision for credit losses		1,757	2,025	60	31		15	20	(1	)	(36	)	1,831	2,040
Noninterest income		6,616	5,589	2,901	2,345		2,405	2,311	(617	)	(532	)	11,305	9,713
Noninterest expense		8,033	7,313	3,007	2,938		2,513	2,520	(657	)	(263	)	12,896	12,508

Income (loss) before income tax expense (benefit)		3,992	3,671	2,926	2,447		566	502	(263	)	(563	)	7,221	6,057
Income tax expense (benefit)		918	1,084	892	813		215	191	(101	)	(214	)	1,924	1,874

Net income (loss) before noncontrolling interests		3,074	2,587	2,034	1,634		351	311	(162	)	(349	)	5,297	4,183
Less: Net income (loss) from noncontrolling interests		205	78	2	(2	)	-	-	-		-		207	76
Net income (loss) (4)	$	2,869	2,509	2,032	1,636		351	311	(162	)	(349	)	5,090	4,107
Average loans	$	493.1	490.6	279.2	265.1		43.3	42.8	(28.4	)	(29.9	)	787.2	768.6
Average assets		794.2	753.3	489.7	458.3		171.7	160.6	(68.5	)	(65.5	)	1,387.1	1,306.7
Average core deposits		608.9	568.4	240.7	223.2		143.4	135.2	(64.2	)	(61.9	)	928.8	864.9


Year ended Dec. 31,
Net interest income (3)	$	29,045	29,657	12,648	11,616		2,768	2,844	(1,231	)	(1,354	)	43,230	42,763
Provision (reversal of provision) for credit losses		6,835	7,976	286	(110	)	125	170	(29	)	(137	)	7,217	7,899
Noninterest income		24,360	21,124	11,444	9,952		9,392	9,333	(2,340	)	(2,224	)	42,856	38,185
Noninterest expense		30,840	29,252	12,082	11,177		9,893	9,934	(2,417	)	(970	)	50,398	49,393

Income (loss) before income tax expense (benefit)		15,730	13,553	11,724	10,501		2,142	2,073	(1,125	)	(2,471	)	28,471	23,656
Income tax expense (benefit)		4,774	4,104	3,943	3,495		814	785	(428	)	(939	)	9,103	7,445

Net income (loss) before noncontrolling interests		10,956	9,449	7,781	7,006		1,328	1,288	(697	)	(1,532	)	19,368	16,211
Less: Net income from noncontrolling interests		464	316	7	19		-	7	-		-		471	342
Net income (loss) (4)	$	10,492	9,133	7,774	6,987		1,328	1,281	(697	)	(1,532	)	18,897	15,869
Average loans	$	487.1	496.3	273.8	249.1		42.7	43.0	(28.4	)	(31.3	)	775.2	757.1
Average assets		761.1	752.3	481.7	428.1		164.6	155.2	(65.8	)	(65.3	)	1,341.6	1,270.3
Average core deposits		591.2	556.3	227.0	202.1		137.5	130.0	(61.8	)	(61.7	)	893.9	826.7

(1)		The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. In first quarter 2012, we modified internal funds transfer rates and the allocation of funding. The prior periods have been revised to reflect these changes.
(2)		Includes Wachovia integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement, largely representing wealth management customers serviced and products sold in the stores.
(3)		Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.
(4)		Represents segment net income (loss) for Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement segments and Wells Fargo net income for the consolidated company.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)

		Quarter ended
		Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(income/expense in millions, average balances in billions)		2012		2012		2012		2012		2011
COMMUNITY BANKING
Net interest income (2)	$	7,166		7,247		7,306		7,326		7,420
Provision for credit losses		1,757		1,627		1,573		1,878		2,025
Noninterest income		6,616		5,863		5,786		6,095		5,589
Noninterest expense		8,033		7,402		7,580		7,825		7,313
Income before income tax expense		3,992		4,081		3,939		3,718		3,671
Income tax expense		918		1,250		1,313		1,293		1,084
Net income before noncontrolling interests		3,074		2,831		2,626		2,425		2,587
Less: Net income from noncontrolling interests		205		91		91		77		78
Segment net income	$	2,869		2,740		2,535		2,348		2,509
Average loans	$	493.1		485.3		483.9		486.1		490.6
Average assets		794.2		765.1		746.6		738.3		753.3
Average core deposits		608.9		594.5		586.1		575.2		568.4

WHOLESALE BANKING
Net interest income (2)	$	3,092		3,028		3,347		3,181		3,071
Provision (reversal of provision) for credit losses		60		(57	)	188		95		31
Noninterest income		2,901		2,921		2,770		2,852		2,345
Noninterest expense		3,007		2,908		3,113		3,054		2,938
Income before income tax expense		2,926		3,098		2,816		2,884		2,447
Income tax expense		892		1,103		932		1,016		813
Net income before noncontrolling interests		2,034		1,995		1,884		1,868		1,634
Less: Net income (loss) from noncontrolling interests		2		2		3		-		(2	)
Segment net income	$	2,032		1,993		1,881		1,868		1,636
Average loans	$	279.2		277.1		270.2		268.6		265.1
Average assets		489.7		490.7		478.4		467.8		458.3
Average core deposits		240.7		225.4		220.9		220.9		223.2

WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	689		680		698		701		731
Provision for credit losses		15		30		37		43		20
Noninterest income		2,405		2,353		2,273		2,361		2,311
Noninterest expense		2,513		2,457		2,376		2,547		2,520
Income before income tax expense		566		546		558		472		502
Income tax expense		215		208		210		181		191
Net income before noncontrolling interests		351		338		348		291		311
Less: Net income (loss) from noncontrolling interests		-		-		5		(5	)	-
Segment net income	$	351		338		343		296		311
Average loans	$	43.3		42.5		42.5		42.5		42.8
Average assets		171.7		163.8		160.9		161.9		160.6
Average core deposits		143.4		136.7		134.2		135.6		135.2

OTHER (3)
Net interest income (2)	$	(304	)	(293	)	(314	)	(320	)	(330	)
Provision (reversal of provision) for credit losses		(1	)	(9	)	2		(21	)	(36	)
Noninterest income		(617	)	(586	)	(577	)	(560	)	(532	)
Noninterest expense		(657	)	(655	)	(672	)	(433	)	(263	)
Loss before income tax benefit		(263	)	(215	)	(221	)	(426	)	(563	)
Income tax benefit		(101	)	(81	)	(84	)	(162	)	(214	)
Net loss before noncontrolling interests		(162	)	(134	)	(137	)	(264	)	(349	)
Less: Net income from noncontrolling interests		-		-		-		-		-
Other net loss	$	(162	)	(134	)	(137	)	(264	)	(349	)
Average loans	$	(28.4	)	(28.2	)	(28.4	)	(28.6	)	(29.9	)
Average assets		(68.5	)	(65.3	)	(64.3	)	(65.1	)	(65.5	)
Average core deposits		(64.2	)	(61.2	)	(60.6	)	(61.2	)	(61.9	)

CONSOLIDATED COMPANY
Net interest income (2)	$	10,643		10,662		11,037		10,888		10,892
Provision for credit losses		1,831		1,591		1,800		1,995		2,040
Noninterest income		11,305		10,551		10,252		10,748		9,713
Noninterest expense		12,896		12,112		12,397		12,993		12,508
Income before income tax expense		7,221		7,510		7,092		6,648		6,057
Income tax expense		1,924		2,480		2,371		2,328		1,874
Net income before noncontrolling interests		5,297		5,030		4,721		4,320		4,183
Less: Net income from noncontrolling interests		207		93		99		72		76
Wells Fargo net income	$	5,090		4,937		4,622		4,248		4,107
Average loans	$	787.2		776.7		768.2		768.6		768.6
Average assets		1,387.1		1,354.3		1,321.6		1,302.9		1,306.7
Average core deposits		928.8		895.4		880.6		870.5		864.9

(1)		The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. In first quarter 2012, we modified internal funds transfer rates and the allocation of funding. Prior periods have been revised to reflect these changes.
(2)		Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.
(3)		Includes Wachovia integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement, largely representing wealth management customers serviced and products sold in the stores.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

		Quarter ended
		Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)		2012		2012		2012		2012		2011
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	10,956		12,081		13,578		12,603		12,372
Servicing from securitizations or asset transfers (1)		1,094		1,173		1,139		1,776		1,211
Sales		-		-		(293	)	-		-
Net additions		1,094		1,173		846		1,776		1,211
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (2)		388		(1,131	)	(1,496	)	147		(483	)
Servicing and foreclosure costs (3)		(127	)	(350	)	(146	)	(54	)	(2	)
Discount rates (4)		(53	)	-		-		(344	)	-
Prepayment estimates and other (5)		115		54		11		93		21
Net changes in valuation model inputs or assumptions		323		(1,427	)	(1,631	)	(158	)	(464	)
Other changes in fair value (6)		(835	)	(871	)	(712	)	(643	)	(516	)
Total changes in fair value		(512	)	(2,298	)	(2,343	)	(801	)	(980	)
Fair value, end of quarter	$	11,538		10,956		12,081		13,578		12,603

(1)		Quarter ended March 31, 2012, includes $315 million residential MSRs transferred from amortized MSRs that we elected to carry at fair value effective January 1, 2012.
(2)		Primarily represents prepayment speed changes due to changes in mortgage interest rates, but also includes other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances).
(3)		Includes costs to service and unreimbursed foreclosure costs.
(4)		Reflects discount rate assumption change, excluding portion attributable to changes in mortgage interest rates; the fourth quarter 2012 change reflects updated broker input on market values for servicing fees in excess of the minimum that can be retained on loans sold to Freddie Mac and Fannie Mae and the first quarter 2012 change reflects increased capital return requirements from market participants.
(5)		Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior.
(6)		Represents changes due to collection/realization of expected cash flows over time.



		Quarter ended
		Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)		2012		2012		2012		2012		2011
Amortized MSRs:
Balance, beginning of quarter	$	1,144		1,130		1,074		1,445		1,437
Purchases		43		42		78		14		53
Servicing from securitizations or asset transfers (1)		34		30		34		(327	)	26
Amortization		(61	)	(58	)	(56	)	(58	)	(71	)
Balance, end of quarter		1,160		1,144		1,130		1,074		1,445

Valuation Allowance:
Balance, beginning of quarter		-		-		-		(37	)	(40	)
Reversal of provision for MSRs in excess of fair value (1)		-		-		-		37		3
Balance, end of quarter		-		-		-		-		(37	)
Amortized MSRs, net	$	1,160		1,144		1,130		1,074		1,408
Fair value of amortized MSRs:
Beginning of quarter	$	1,399		1,450		1,263		1,756		1,759
End of quarter		1,400		1,399		1,450		1,263		1,756

(1) Quarter ended March 31, 2012, is net of $350 million ($313 million after valuation allowance) of residential MSRs that we elected to carry at fair value effective January 1, 2012. A cumulative adjustment of $2 million to fair value was recorded in retained earnings at January 1, 2012.


Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

		Quarter ended
		Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions)		2012		2012		2012		2012		2011
Servicing income, net:
Servicing fees (1)	$	926		984		1,070		1,011		876
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		323		(1,427	)	(1,631	)	(158	)	(464	)
Other changes in fair value (3)		(835	)	(871	)	(712	)	(643	)	(516	)
Total changes in fair value of MSRs carried at fair value		(512	)	(2,298	)	(2,343	)	(801	)	(980	)
Amortization		(61	)	(58	)	(56	)	(58	)	(71	)
Reversal of provision for MSRs in excess of fair value		-		-		-		-		3
Net derivative gains (losses) from economic hedges (4)		(103	)	1,569		2,008		100		665
Total servicing income, net	$	250		197		679		252		493
Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	220		142		377		(58	)	201

(1)		Includes contractually specified servicing fees, late charges and other ancillary revenues.
(2)		Refer to the changes in fair value MSRs table on the previous page for more detail.
(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.



		Dec. 31,		Sept. 30,	June 30,	Mar. 31,	Dec. 31,
(in billions)		2012		2012	2012	2012	2011
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,498		1,508	1,499	1,483	1,456
Owned loans serviced		368		364	357	350	358
Subservicing		7		7	7	7	8
Total residential servicing		1,873		1,879	1,863	1,840	1,822
Commercial mortgage servicing:
Serviced for others		408		405	406	407	398
Owned loans serviced		106		105	106	106	106
Subservicing		13		13	13	13	14
Total commercial servicing		527		523	525	526	518
Total managed servicing portfolio	$	2,400		2,402	2,388	2,366	2,340
Total serviced for others	$	1,906		1,913	1,905	1,890	1,854
Ratio of MSRs to related loans serviced for others		0.67	%	0.63	0.69	0.77	0.76
Weighted-average note rate (mortgage loans serviced for others)		4.77		4.87	4.97	5.05	5.14

(1) The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book value for owned loans serviced.

SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA

		Quarter ended
		Dec. 31,		Sept. 30,	June 30,	Mar. 31,	Dec. 31,
(in billions)		2012		2012	2012	2012	2011
Application data:
Wells Fargo first mortgage quarterly applications	$	152		188	208	188	157
Refinances as a percentage of applications		72	%	72	69	76	78
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	81		97	102	79	72


Residential real estate originations:
Wells Fargo first mortgage loans:
Retail	$	63		61	62	61	58
Correspondent/Wholesale		61		77	68	68	61
Other (1)		1		1	1	-	1
Total quarter-to-date	$	125		139	131	129	120
Total year-to-date	$	524		399	260	129	357

(1) Consists of home equity loans and lines.


Wells Fargo & Company and Subsidiaries
CHANGES IN MORTGAGE REPURCHASE LIABILITY

		Quarter ended						Year ended
		Dec. 31,		Sept. 30,		Dec. 31,		Dec. 31,
(in millions)		2012		2012		2011		2012		2011
Balance, beginning of period	$	2,033		1,764		1,194		1,326		1,289
Provision for repurchase losses:
Loan sales		66		75		27		275		101
Change in estimate (1)		313		387		377		1,665		1,184
Total additions		379		462		404		1,940		1,285
Losses		(206	)	(193	)	(272	)	(1,060	)	(1,248	)
Balance, end of period	$	2,206		2,033		1,326		2,206		1,326

(1) Results from such factors as changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.


UNRESOLVED REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS

		Government		Mortgage
		sponsored		insurance
($ in millions)		entities (1)	Private	rescissions (2)	Total
December 31, 2012
Number of loans		6,621	1,306	753	8,680
Original loan balance (3)	$	1,503	281	160	1,944

September 30, 2012
Number of loans		6,525	1,513	817	8,855
Original loan balance (3)	$	1,489	331	183	2,003

June 30, 2012
Number of loans		5,687	913	840	7,440
Original loan balance (3)	$	1,265	213	188	1,666

March 31, 2012
Number of loans		6,333	857	970	8,160
Original loan balance (3)	$	1,398	241	217	1,856

December 31, 2011
Number of loans		7,066	470	1,178	8,714
Original loan balance (3)	$	1,575	167	268	2,010

(1) Includes repurchase demands of 661 and $132 million, 534 and $111 million, 526 and $103 million, 694 and $131 million and 861 and $161 million, for December 31, September 30, June 30 and March 31, 2012, and December 31, 2011, respectively, received from investors on mortgage servicing rights acquired from other originators. We generally have the right of recourse against the seller and may be able to recover losses related to such repurchase demands subject to counterparty risk associated with the seller. The number of repurchase demands from GSEs that are from mortgage loans originated in 2006 through 2008 totaled 81% at December 31, 2012.

(2) As part of our representations and warranties in our loan sales contracts, we typically represent to GSEs and private investors that certain loans have mortgage insurance to the extent there are loans that have loan to value ratios in excess of 80% that require mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer due to a claim of breach of a contractual representation or warranty, the lack of insurance may result in a repurchase demand from an investor. Similar to repurchase demands, we evaluate mortgage insurance rescission notices for validity and appeal for reinstatement if the rescission was not based on a contractual breach. When investor demands are received due to lack of mortgage insurance, they are reported as unresolved repurchase demands based on the applicable investor category for the loan (GSE or private). Over the last year, approximately 20% of our repurchase demands from GSEs had mortgage insurance rescission as one of the reasons for the repurchase demand. Of all the mortgage insurance rescissions notices received in 2011, approximately 80% have resulted in repurchase demands through December 2012. Not all mortgage insurance rescissions received in 2011 have been completed through the appeals process with the mortgage insurer and upon successful appeal, we work with the investor to rescind the repurchase demand.

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

Business Wire

January 11, 2013 - 8:00 AM EST

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