Wells Fargo

2010 Investor Conference

The vision that works

Filed

pursuant

to

Rule

433(d)

Registration

Statement

Nos.

333-159736

333-159738

Welcome

Forward-looking statements and additional information

In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that each of the presentations relating to Wells Fargo’s 2010 Investor Conference

may contain forward-looking statements about our future financial performance and business. We make forward-looking statements when we use words such as “believe,”

“expect,” “anticipate,” “estimate,” “should,” “may,” “can,” “will,” “outlook,” “project” or similar expressions. Forward-looking statements in these presentations include,

among others, statements about future credit quality, life-of-loan loss estimates and expected or estimated future losses in our loan portfolios, including our belief that

quarterly provision expense and quarterly total credit losses have peaked and are expected to decline; reduction or mitigation of risk in our loan portfolios and the effects

of loan modification programs; the amount and timing of expected integration activities, expenses and cost savings relating to the Wachovia merger, as well as expected

revenue synergies and other benefits of the merger; our hedging activities relating to our mortgage banking business; and our plans, objectives, goals, targets, and

strategies.   

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 economic and market conditions including the effects of further declines in housing prices and high unemployment rates; our capital

requirements and ability to raise capital on favorable terms; the terms of capital investments or other financial assistance provided by the U.S. government; financial

services reform; the extent of success in our loan modification efforts, including the effects of regulatory requirements or guidance regarding loan modifications or

changes in such requirements or guidance; our ability to successfully integrate the Wachovia merger and realize the expected cost savings and other benefits and the

effects of any delays or disruptions in systems conversions relating to the integration; our ability to realize efficiency initiatives to lower expenses when and in the amount

expected; the adequacy of our allowance for credit losses; recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio; the effect

of changes in interest rates on our net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; hedging gains or losses;

disruptions in the capital markets and reduced investor demand for mortgage loans; our ability to sell more products to our customers; the effect of the economic

recession on the demand for our products and services; the effect of the fall in stock market prices on fee income from our brokerage, asset and wealth management

businesses; our election to provide support to our mutual funds for structured credit products they may hold; changes in the value of our venture capital investments;

changes in our accounting policies or in accounting standards or in how accounting standards are to be applied; mergers and acquisitions; federal and state regulations;

changes in credit ratings; 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 or that the Wachovia loan portfolios will not have higher losses than we

projected at closing, especially if credit markets, housing prices and unemployment do not continue to stabilize or improve. Increases in loan charge-offs or in the

allowance for credit losses and related provision expense could materially adversely affect our financial results and condition. For more information about factors that

could cause actual results to differ materially from expectations, refer to our annual, quarterly and current reports filed with the Securities and Exchange Commission and

available on the SEC’s website at www.sec.gov, including our Quarterly Report on Form 10-Q for the period ended March 31, 2010, and our Annual Report on Form 10-K

for the year ended December 31, 2009, including the discussion under “Risk Factors” in each of those reports. 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.

Loans that were acquired from Wachovia that were considered credit impaired were written down at acquisition date in purchase accounting to an amount estimated to be

collectible in accordance with FASB ASC 310-30 (formerly SOP 03-3), and the related allowance for loan losses was not carried over to Wells Fargo’s allowance. In

addition, such purchased credit-impaired loans are not classified as nonaccrual or nonperforming, and are not included in loans that were contractually 90+ days past due

and still accruing. Any losses on such loans are charged against the nonaccret-able difference established in purchase accounting and are not reported as charge-offs

(until such difference is fully utilized). As a result of accounting for purchased loans with evidence of credit deterioration, certain ratios of the combined company are not

comparable to a portfolio that does not include purchased credit-impaired loans accounted for under FASB ASC 310–30 (SOP 03-3). In certain cases, the purchased

credit-impaired loans may affect portfolio credit ratios and trends. Management believes that the presentation of information adjusted to exclude the purchased credit-

impaired loans provides useful disclosure regarding the credit quality of the non-impaired loan portfolio. Accordingly, certain of the loan balances and credit ratios in our

presentations have been adjusted to exclude the purchased credit-impaired loans.

Wells Fargo has an existing shelf registration statement (including a prospectus) on file with the SEC. This communication may be deemed to relate to an offering under

that registration statement. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for

more complete information about the issuer and any offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. The issuer,

any underwriter or any dealer participating in any offering will arrange to send you the prospectus if you request it by calling Wells Fargo toll free at 1-888-662-7865.

To email questions:

LiveEventQ&A@wellsfargo.com

Agenda  -

May 13

Time

(Pacific)

Program

Presenter

12:15-12:25

IR Welcome

Bob Strickland and Jim Rowe

12:25-12:45

Strategic Overview

John Stumpf

12:45-1:05

Financial Overview

Howard Atkins

1:05-1:35

Card Services and Consumer Lending

Kevin Rhein

1:35-2:35

Consumer Real Estate

Mark Oman

Cara Heiden and Mike Heid

Franklin Codel

2:35-2:50

Break

2:50-4:40

Community Banking

Carrie Tolstedt

Mike James

Laura Schulte

Lisa Stevens

4:40-5:00

Technology

Avid Modjtabai

5:00-5:30

Day One Q&A

Rhein, Oman, Tolstedt and Modjtabai

5:45-8:00

Dinner with Management and

Business Exhibits

Agenda  -

May 14

Time

(Pacific)

Program

Presenter

7:00-7:05

Welcome

Howard Atkins

7:05-9:05

Wholesale Banking

Dave Hoyt

Tim Sloan

Carlos Evans

Mike Niedermeyer

Steve Ellis

9:05-10:25

Wealth, Brokerage and Retirement

David Carroll

Jay Welker

Danny Ludeman

10:25-10:35

Break

10:35-11:50

Risk Management

Howard Atkins

Mike Loughlin

Mike Heid

Pat Callahan

11:50-12:00

Closing Remarks

John Stumpf

Video

The vision that works

John Stumpf

Chairman and Chief Executive Officer

May 13, 2010

©

2010 Wells Fargo & Company. All rights reserved.

Wells Fargo vision

We want to satisfy all of our customers’

financial needs, help them succeed

financially, be the premier provider

of financial services in every one of

our markets, and be known as one

of America’s great companies.

“

”

John Stumpf

Chairman and Chief Executive Officer

John Stumpf

became Chairman of Wells Fargo & Company in January 2010. He was

named Chief Executive Officer in June 2007, elected to Wells Fargo’s Board of

Directors

in

June

2006,

and

has

been

President

since

August

2005.

A

28-year

veteran

of

the

company,

he

joined

the

former

Norwest

Corporation

(predecessor of

Wells Fargo) in 1982 in the loan administration department and then became

senior

vice

president

and

chief

credit

officer

for

Norwest

Bank,

N.A.,

Minneapolis. 

He held a number of management positions at Norwest Bank Minneapolis and

Norwest Bank Minnesota before assuming responsibility for Norwest Bank Arizona

in 1989.  He was named regional president for Norwest Banks in Colorado/

Arizona in 1991. From 1994 to 1998, he was regional president for Norwest Bank

Texas. During his four years in that position, he led Norwest’s acquisition of 30

Texas banks with total assets of more than $13 billion.

In 1998, with the merger of Norwest Corporation and Wells Fargo & Company,

he became head of the Southwestern Banking Group (Arizona, New Mexico and

Texas). Two years later he became head of the new Western Banking Group

(Arizona, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington

and Wyoming). In 2000, he led the integration of Wells Fargo’s acquisition of the

$23 billion

First

Security

Corporation,

based

in

Salt

Lake

City.

In

May

2002,

he

was

named Group EVP of Community Banking. In December 2008, he led one of the

largest mergers in history with the purchase of Wachovia. 

He serves on the Board of Directors for The Clearing House, the Financial Services

Roundtable and Target Corporation. He also serves on the Board of Trustees of the

San Francisco Museum of Modern Art. A Minnesota native, he earned his bachelor’s

degree in finance from St. Cloud State University, St. Cloud, Minnesota and his

MBA with an emphasis in finance from the University of Minnesota.

The vision that works  2

Achieving Superior Long-

Term Financial Performance

Howard Atkins

Senior Executive Vice President and

Chief Financial Officer

May 13, 2010

©

2010 Wells Fargo & Company. All rights reserved.

Financial Overview  1

Achieving superior long-term financial

performance

Risk

Discipline

Profitable

Growth

Capital

Strength

Financial Overview  2

Achieving superior long-term financial

performance

Risk

Discipline

Profitable

Growth

Capital

Strength

The

Customer

Financial Overview  3

Long-term goals

Revenue growth

~ 10%

Return on assets

~ 1.50%

Tier 1 common

~ 8%

Achieving superior long-term financial

performance

Financial Overview  4

Double-digit revenue growth

…How we get paid for providing more and better

services to our customers

10 Yr CAGR

1999-2009

WFC

17%

BAC

14%

PNC

13%

JPM

13%

USB

6%

C

2%

Wells Fargo’s 2009 results include Wachovia. 

Financial Overview  5

Double-digit revenue growth

($ billions)

Wells Fargo’s 2009 results include Wachovia.

Financial Overview  6

Significant opportunity to increase market

share in all key businesses

WFC market share

(approx)

Household financial assets under

management/administration

5%

Checking accounts (non-interest bearing)

12%

Loans outstanding at U.S. Commercial Banks

12%

Residential mortgage servicing

17%

Non-cash payments processing

8%

Debit card payments

12%

Insurance brokerage (among top 10 brokers)

10%

Corporate debt / equity underwriting

10%

Sources

include

Financial

Services

Roundtable

Fact

Book

2009

and

Inside

Mortgage

Finance.

Financial Overview  7

Serving more communities than any other U.S. Bank

Wells Fargo Bank stores

Wachovia Bank stores

Wells Fargo Advisor offices

Wells Fargo Home Mortgage stores

As of March 31, 2010.

70 million customers

bank with Wells Fargo

(one of every three

households

)

Financial Overview  8

Distribution breadth and depth

Store Distribution

Retail banking stores

6,590

Wells Fargo advisor offices

1,359

Consumer finance stores

772

Mortgage stores

748

Insurance stores

166

Commercial loan stores

151

International stores

98

Sales Force

Platform bankers

29,000

Financial advisors

(1)

15,100

Home Mortgage consultants

10,400

(1)

Series 7 brokers.

Data as of March 31, 2010.

Non-store Distribution

ATMs

12,355

Online banking customers

17.2mm

Financial Overview  9

Cross-sell growth drives revenue growth

4.84

6.48

2003 cross-sell

2008 cross-sell

$4.9

$8.2

2003 revenue

2008 revenue

CAGR = 6%

CAGR = 11%

Revenue for wholesale banking

$ billions

Cross-sell for wholesale banking

products per relationship

Wholesale banking revenue as reported in Company’s most recent annual report.

Financial Overview  10

Cross-sell = revenue growth

3.00

5.95

1998

2009 legacy Wells

Fargo

4.55

6.00

2Q09 Wachovia

1Q10 legacy Wells

Fargo

CAGR = 6.4%

Retail bank household cross-sell.

30%

lift

Financial Overview  11

Return on assets

…where risk discipline, return and capital efficiency meet…

1999-2009 Avg.

2009 ROA

WFC

1.33%

0.97%

USB

1.66%

0.82%

PNC

1.31%

0.88%

BAC

0.92%

0.26%

JPM

0.68%

0.58%

C

0.70%

(0.08)%

Financial Overview  12

Net interest margin

2.25%

2.05%

1.42%

1.41%

1.32%

0.66%

WFC

USB

JPM

C

Peer Avg

BAC

Risk-adjusted net interest margin

Net interest margin

4.27%

3.90%

3.39%

3.32%

3.32%

2.93%

WFC

USB

Peer Avg

C

JPM

BAC

For the quarter ended March 31, 2010.

Peer average includes BAC, BBT, COF, C, FITB, JPM, PNC, RF, STI, and USB.

Risk-adjusted net interest margin = Net interest margin – (net charge-offs/earning assets).

Note that Wells Fargo and certain of its peers have portions of their loan portfolios that have purchased credit-impaired (PCI) loans under which losses from

loan resolutions and write-downs are absorbed by the nonaccretable difference for such loans. See pages 30-32 of the Company’s first quarter earnings release

for additional information regarding purchased credit-impaired loans. Wells Fargo’s charge-off rate in part reflects reduced risk in the Wachovia portfolio due to

PCI accounting performed for highest risk Wachovia loans.

Financial Overview  13

Source of our wide risk-adjusted net interest

margin: core deposit base

Data as of 1Q10; peer average includes BAC, BBT, COF, C, FITB, JPM, PNC, RF, STI, and USB.

Average costs of deposits is for total deposits.

Source: SNL from company regulatory filings.

0.37%

0.39%

0.46%

0.52%

0.66%

1.01%

WFC

JPM

BAC

USB

Peer Avg

C

Average cost of deposits

Financial Overview  14

Wells Fargo deposit base

(1) Source: SNL Financial, using FDIC data. Retail deposit data

6/30/09. Pro forma for acquisitions. Caps deposits at $500 million in a

single banking store (active, closed, De Novo).

Number of MSAs

with

Deposit

Market

Share

over

15%

(¹)

Deposit Share of 100 Largest

MSAs

(2)

20%

5%

15%

224

89

46

Number of MSAs

Wells Fargo

441

Bank of America

390

JPMorganChase

243

(2)Top 100 largest MSAs based on deposits. 

(3)Top 20 Fastest growing MSAs based on 2010 estimated % population growth.

Source: SNL Financial, using FDIC data. Retail deposit data 6/30/09. Pro forma for 

acquisitions. Caps deposits at $500 million in a single banking store (active, closed, 

De Novo) and excludes credit union deposits. Population based on Census data.

Financial Overview  15

+

-

All of these

are good for

risk-

adjusted

returns over

time

Wachovia core

deposit base

Improved service =

deposit retention

Loan pricing

Balance sheet

discipline

Potential additions

to PCI accretable

yield

Run-off of non-

strategic/high-risk

consumer loans

Greater emphasis  on

commercial/

corporate lending

Reduction in

consumer finance

business

Asset growth > core

deposit growth

Structural factors affecting net interest margin

Financial Overview  16

Net

charge-offs/Avg.

total

loans

%

(1)

Source of our wide risk-adjusted net interest

margin: relatively low charge-off rate

First quarter 2010 annualized net charge-offs; peer average includes BAC, BBT, COF, C, FITB, JPM, PNC, RF, STI, and USB.

1) Note that Wells Fargo and certain of its peers have portions of their loan portfolios that have purchased credit-impaired (PCI) loans under which losses

from loan resolutions and write-downs are absorbed by the nonaccretable difference for such loans. See pages 30-32 of the Company’s first quarter

earnings release for additional information regarding purchased credit-impaired loans.

Wells Fargo’s charge-off rate in part reflects reduced risk in the Wachovia portfolio due to PCI accounting performed for highest risk Wachovia loans  

Source: Company reports.

Financial Overview  17

WFC: Relatively low charge-off rate –

why?

WFC

% of Total

Loans

Top 3 Peers

% of Total

Loans

Average Loss Rates

WFC / Top 3 Peers

Other Contributing

Factors

C&I

23%

19%

2.2% / 3.3%

Strong

underwriting

Purchase

accounting     

write-downs

Significant and

successful loan

modifications

Early problem

resolution

Commercial

real estate

17%

8%

2.1% / 3.5%

1

st

/2

nd

mortgage

42%

39%

2.8% / 3.3%

Credit cards

3%

9%

10.6% /10.2%

All other

15%

25%

2.4% /3.1%

Fourth quarter 2009 annualized net charge-offs; top 3 peers include BAC, C and JPM. Source: FR Y9_C data from SNL Financial.

Note that Wells Fargo and certain of its peers have portions of their loan portfolios that have purchased credit-impaired (PCI) loans under which losses from

loan resolutions and write-downs are absorbed by the nonaccretable difference for such loans. See pages 30-32 of the Company’s 1Q10 earnings release for

additional information regarding purchased credit-impaired loans.

Wells Fargo’s charge-off rate in part reflects reduced risk in the Wachovia portfolio due to PCI accounting performed for highest risk Wachovia loans.

Financial Overview  18

Asset “productivity”

and fee income at high

end of industry

Full year 2009; peer average includes BAC, BBT, COF, C, FITB, JPM, PNC, RF, STI, and USB.

(1)

Fee income represents total noninterest income.

(2) Source: SNL.

8.09%

6.94%

6.54%

6.17%

6.09%

5.27%

WFC

USB

BAC

Peer

Avg

JPM

C

Total Revenue/Earning Assets

3.96%

3.86%

3.35%

3.10%

2.99%

2.06%

BAC

WFC

USB

Peer

Avg

JPM

C

Fee Income

(1)

/Earning Assets

Financial Overview  19

As of March 31, 2010.

Trust & Investment fees

26%

Mortgage Servicing, net

13%

Deposit services

13%

Mortgage Orig./Sales, net

11%

Card fees

8%

Merchant & other processing 5%

Trading revenue

5%

Insurance 

6%

Breadth of fee-based services

26%

13%

13%

11%

8%

6%

5%

5%

4%

2%

7%

Loan Fees

4%

Operating Leases

2%

All Other

7%

Financial Overview  20

And we operate relatively efficiently

Full year 2009.

Efficiency ratio is operating expense (noninterest expense) divided by total revenue (net interest income and noninterest income).

Operating Expense/Total Revenue

61.4%

56.4%

55.8%

55.3%

52.1%

50.3%

C

Peer Avg

BAC

WFC

JPM

USB

Financial Overview  21

Key expense initiatives

Complete merger consolidation/integration

Complete credit loss mitigation/problem asset

resolution

Additional focus

Rebalance health benefits

Streamline project management

Drive consistency across IT groups

Rationalize duplicative products/services

Reengineer support function processes

Financial Overview  22

9.93

7.09

0%

2%

4%

6%

8%

10%

12%

Wells Fargo’s historic capital ratios ($ of capital / RWA)

Capital now consistent with Wells Fargo’s 

strong historical ratios

`02

`01

`00

`99

`98

`97

(1)

Tier 1

Capital

‘09

`07

`06

`05

`04

`08

`03

(1) Norwest only.

See the appendix for additional information on Tier 1 Common Equity ratio.

1Q10

Tier 1

Common

Financial Overview  23

Credit exposures

Charge off ratio

(1)

, 4Q09

Percent

4.6

3.7

3.9

2.7

C

BAC

JPM

WFC

Credit card concentration

(3)

Card balances/total loans, 4Q09

Percent

11

8

12

3

C

BAC

JPM

WFC

Derivatives exposures

Notional derivatives/tier 1 capital

4Q09

Multiple (x)

Cross-border risk

Foreign loans/Total loans, 4Q09

Percent

43

7

9

4

C

BAC

JPM

WFC

Liquidity

Total deposits/total liabilities

4Q09

Percent

49

50

50

73

C

BAC

JPM

WFC

Market risk

VAR, 1-day 99%, 4Q09

$ Millions

C

BAC

JPM

WFC

(2)

Across a multitude of risks, Wells Fargo

operates at less risk than our large peers

Source:  SNL and company reports.

(1) Does not include charge-offs absorbed by the nonaccretable difference for purchased credit-impaired loans.

(2) Wells Fargo’s charge-off rate in part reflects reduced risk in the Wachovia portfolio due to PCI accounting performed for highest risk Wachovia loans.

Please refer to the Company’s earnings release for additional information regarding the PCI loans.

(3) Card balances are those held on balance sheet; managed card balances / average loans was unchanged for WFC, 23% for JPM, 18% for BAC, and 24% for

C. does not provide average card balances, so estimated it as the average of Q3 and Q4 ‘09 ending balances.

Financial Overview  24

Biography

Financial Overview  25

Howard Atkins

Senior EVP and Chief Financial Officer

Howard I. Atkins, senior executive vice president and chief financial officer,

is responsible for Wells Fargo’s financial management functions (including

controllers, financial reporting, tax management, asset-liability

management, treasury, corporate development and investor relations), its

investment portfolios (including fixed income, venture capital and private

equity investments) and its corporate properties functions. A 37-year

veteran of the financial services industry, he joined Wells Fargo in 2001. 

Formerly, he was Executive Vice President and Chief Financial Officer of

New York Life Insurance Company responsible for financial management

and information technology. Before joining New York Life in 1996, he was

Chief Financial Officer at Midlantic

Corporation before its merger with PNC

Bank

Corp.

He

also

spent

17

years

at

Chase

Manhattan

Bank,

where

he

rose to Corporate Treasurer. 

He is a member of the American Banker CFO Advisory Board, the Financial

Executives Institute, and the Conference Board. He also is a director of

Ingram Micro, the largest IT distributor in the world, and serves on the

board of trustees for the Asian Art Museum in San Francisco. He received a

B.S. degree in mathematics from City College, New York, and his master’s

degree in economics from Ohio State University.

Financial Overview  26

Appendix

Financial Overview  27

Tier 1 common equity reconciliation

Wells Fargo & Company and Subsidiaries

TIER 1 COMMON EQUITY

(1)

March 31,

Dec. 31,

($ billions)

2010

2009

Total equity

118.1

$    

114.4

Less:

Noncontrolling interests

(2.0)

(2.6)

Total Wells Fargo stockholders' equity

116.1

111.8

Less:

Preferred equity

(8.1)

(8.1)

Goodwill and intangible assets (other than MSRs)

(37.2)

(37.7)

Applicable deferred assets

5.2

5.3

Deferred tax asset limitation

-

(1.0)

MSRs over specified limitations

(1.5)

(1.6)

Cumulative other comprehensive income

(4.0)

(3.0)

Other

(0.3)

(0.2)

Tier 1 common equity

(A)

70.2

$      

65.5

Total risk-weighted assets

(2)

(B)

990.1

$    

1,013.6

Tier 1 common equity to total risk-weighted assets

(A)/(B)

7.09

%

6.46

(1)

(2)

Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet

items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The

aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values

from each of the risk categories are aggregated for determining total risk-weighted assets.

Tier 1 common equity is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies, to assess the capital

position of financial services companies. Tier 1 common equity includes total Wells Fargo stockholders' equity, less preferred equity, goodwill and

intangible assets (excluding MSRs), net of related deferred taxes, adjusted for specified Tier 1 regulatory capital limitations covering deferred taxes,

MSRs, and cumulative other comprehensive income. Management reviews Tier 1 common equity along with other measures of capital as part of

its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of

current interest in such information on the part of market participants.

Card Services and

Consumer Lending

Kevin Rhein

Executive Vice President, Group Head

May 13, 2010

©

2010 Wells Fargo & Company. All rights reserved.

Card Services and Consumer Lending 1

Business overview

and market position

Merger update

Financial overview

Core capabilities and

growth opportunities

Business overview and

market position

Card Services and Consumer Lending 2

Consumer Credit Card

Consumer and Business Debit 

Card and Prepaid Cards

Educational Financial Services

Wells Fargo Financial

Global Remittance Services

Personal Credit Management

Card Services and Consumer Lending

Loans = $103.7B

Revenue  = $12.1B

Team Members = 20,300

(Kevin Rhein)

Loans as of 3/31/2010, Revenue full year 2009.

Card Services and Consumer Lending 3

20

70

120

170

220

270

BAC

WFC

JPM

USB

PNC

0

20

40

60

80

100

120

140

160

180

JPM

BAC

C

APX

COF

DHC

WFC

HSBA

USB

USAA

Card Services and Consumer Lending

Consumer

Credit Card

(Mike McCoy)

7   Largest U.S. Issuer

$15.8B loans

7.2MM cardholders

35% of legacy WFC and 15%

WB Retail banking households

have a WFC credit card

4.3MM Rewards Card holders

2,672 team members

Consumer and

Business

Debit and

Stored Value

Cards

(Ed Kadletz)

# 2 U.S. Debit Card Issuer with

$173B annual purchase volume

33MM cardholders

90% consumer DDAs

have a

debit card

4.9MM Rewards Card holders

(3.3 combo, 1.6 debit only)

234 team members

Source:

Nilson

Report

June

2009.

Market Share Loans

($ billions)

Market Share Purchase Volume

($ billions)

Savings

Source:

Nilson

Report

June

2009.

th

Card Services and Consumer Lending 4

0

5

10

15

20

25

30

SLM

WFC

C

JPM

PNC

USB

DHC

2009 Pvt

2009 Govt

Total

Card Services and Consumer Lending

Educational

Financial

Services

(Kirk Bare)

Private and Federal

Student Loans

2nd largest student loan

originator

$27.7B loans

$1.7B Private and $9.4B Federal

loan originations in 2009

2.4MM customers

1,164 team members

Wells Fargo

Financial

(Dave

Kvamme)

Real estate secured lending, automobile financing, consumer and private

label credit cards, and commercial services to consumers and businesses

$53.3B loans ($24.7B Real estate, $14.9B Auto,

$6.2B Commercial, $7.5B Cards and other)

5.3MM customers

14,960 team members

Origination

Market

Share

-

2009

($ billions)

Source: Student Loan Analytic Blog and the DOE.

Card Services and Consumer Lending 5

Card Services and Consumer Lending

Global

Remittance

Services

(Daniel

Ayala)

Wells Fargo ExpressSend

consumer global

remittance service available to 15 countries

in Latin America and Asia

Largest U.S. bank-managed remittance network

Remittance initiation service through

WF Stores, Customer Contact Center and Online

74 team members

Personal

Credit

Management

(Brent Vallat)

Consumer unsecured loans and lines, bank

deposit secured loans

$6.9B loans

2.1MM accounts

704 team members

% Growth 1Q10 from 1Q09

Dollars

Mexico

13%

All

Countries

20%

Transactions

Mexico

36%

All

Countries

35%

Card Services and Consumer Lending 6

$103.7B Outstanding Loans

47% Collateral Secured

Credit Cards

Real Estate Secured

Leases

Consumer -

Unsecured

Auto -

Direct

Auto -

Indirect

Retail Sales Finance

Commercial

Card Services and Consumer Lending

loan portfolio

Period end as of 3/31/10.

Card Services and Consumer Lending 7

64%

29%

6%

Interest

Income

1% Over-limit fees

Late fees

Consumer Credit Card

Revenues

Discontinued assessing over-limit fees

February 2010

Late fees subject to reasonable and

proportionate CARD Act terms

7% of

fee

income

from

late

or

overlimit

fees

Total CSCL

Revenues of $12.1B

Noninterest Income –

Interchange & service

fees

Noninterest Income

–

Late & and other

penalty fees

Interest

Income

Relationship model less reliant on “punitive”

fees,

particularly for the Credit Card Business

Interchange,

net of rewards

cost and other

value add fees

Card Services and Consumer Lending

revenue distribution

Full year 2009.

Card Services and Consumer Lending 8

Core capabilities & growth

opportunities

Business overview

and market position

Merger update

Financial overview

Core capabilities and

growth opportunities

Card Services and Consumer Lending 9

We teach our team

members that our

success hinges on

their ability to create

Totally Engaged

Customers by…

“

Putting the

Customer at

the Center of

Everything

We Do.”

Card Services and Consumer Lending

Strategic model

Card Services and Consumer Lending 10

Core capabilities and growth opportunities

Card Services and Consumer Lending 11

Primary focus on

Wachovia sales

opportunity via

retail banking and

brokerage

households

$8.9T of personal

consumption

expenditures

remains “paper

based”

Currently less

than 15% of total

credit balances of

legacy Wells Fargo

customers in our

portfolio

Product introduction/Re-introduction

to Wachovia Households

ExpressSend

Remittance Services

Credit Card Cash-Back, Home Rebate,

Secured Card products

Personal Loans and Lines

Direct Auto (purchase and refinance)

Store Referrals for EFS and Financial

Product & Feature Enhancements

Manage/Reward/Protect

-

Transaction Alerts

-

Card Design Studio

®

-

Merchant Shopping Mall

Instant Debit Card issuance in stores

Reloadable prepaid solutions

Parent Student Loan product

Systems and Capabilities

Full spectrum lending capabilities

across multiple distribution channels

Consolidated loyalty platform

Legacy Wells Fargo Bank Sales

Platform being introduced to Wachovia

Enablers

Core capabilities and growth opportunities

Cross-sell

Share of

Wallet-

Spend

Share of

Wallet-

Credit

Card Services and Consumer Lending 12

45.2%

Core capabilities and growth opportunities

Cross-sell into Retail Banking Households

Business Line

Legacy

Wells

Fargo

Wachovia

Best in

Class

Region

Credit Card

34.9%

14.6%

Personal Credit Management (Loans)

5.2%

2.7%

Personal Credit Management (Lines)

7.5%

5.2%

16.5%

Educational Financial Services

4.5%

2.7%

13.5%

Wells Fargo Financial

6.0%

4.8%

10.6%

Cross-sell

As of March 2010.

9.0%

Card Services and Consumer Lending 13

Share of

Wallet-

Spend

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2005

2006

2007

2008

2009

Legacy Wells Fargo

Wachovia

11% CAGR

Core capabilities and growth opportunities

Debit Card Purchase Volume

($ millions)

Card Services and Consumer Lending 14

Reward Cards have significantly higher

cardholder engagement

Open Accounts with Rewards

% $ POS on Rewards Card to Total

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2005

2006

2007

2008

2009

Combo

Credit Only

Debit Only

Cash Back and Home Rebate

Card Services and Consumer Lending 15

Debit Consumer

Debit Small Business

Consumer Card

No Rewards

With Rewards

36.7% lift

27.3% lift

184.2% lift

Rewards Cards have higher activation rates

Legacy WFC

Activation Rate –

March 2010

Card Services and Consumer Lending 16

Debit Consumer

Debit Small Business

No Rewards

With Rewards

No Rewards

With Rewards

No Rewards

With Rewards

No Rewards

With Rewards

Credit Card Revolving Balance, March 2010

Credit Card Annualized

Attrition Rate, March 2010

Credit Card Average Transactions

per Active Account, March 2010

+ 53.7 %

+ 75.5 %

+ 29.5%

+ 68.4 %

-

52.4 %

Reward Cards have significantly higher spend,

balances and lower attrition

Legacy Wells Fargo Debit Card Average

Transactions per Active DDA, March 2010

Card Services and Consumer Lending 17

Core capabilities and growth opportunities

December 2009

Reinforces our cross-sell opportunity and strategy

Expansion of our full spectrum (super-prime to non-prime)

relationship based underwriting capabilities across our

distribution channels:

-

Direct auto (purchase, re-finance and cash-out) in the

Regional Bank

-

Non-prime credit cards in the Regional Bank

-

Prime credit cards in Wells Fargo Financial distribution channels

85% + of our customers’

consumer credit balances listed at

the credit bureau (credit card,

student loans, auto and other

consumer loans) are with our

competitors

Share of

Wallet-

Credit

Card Services and Consumer Lending 18

Growth in enrollment and the

cost of higher education

-

4.7MM Legacy Wells Fargo

households with children 13 to

18 years old will be source of

future opportunity

Home Equity and other financing

sources -

more limited

Wells Fargo strongly positioned

and rapidly gaining share

-

Private loan opportunity estimated

at $16B to $30B

Competitors exited or weakened

-

losing share

Source: Trends in Student Aid 2009, published by College Board.

Engines for Growth

Growth in Stafford, PLUS and Nonfederal Loan

Dollars in Constant (2008) Dollars

($ billions)

Student Lending

25

35

45

55

65

75

85

95

Card Services and Consumer Lending 19

Wells

Fargo

Relationship-based

issuing

model

will

continue

to

focus

on

driving

revenue

by

providing

cardholder

value

with

reduced

incidence

of punitive fees

Continue to focus on being top of wallet whether customer wants to

pay now, pay later or pay ahead by promoting relationship value and

rewarding

customers

for

their

spend

and

relationship

with

Wells

Fargo

Modified

Personal

Line

of

Credit

Product

not

subject

to

CARD

Act

APR

pricing conditions

Under 21 co-borrower –

benefits of store cross-sell model and

Educational

Finance

Business

co-signor

requirements

Positioning for growth in changing

regulatory environment

Card Act

SAFRA

Will

cease

originating

new

government

insured

student

loans

effective July 1, 2010

Focus

on

Private

Student

Loan

market

including

introduction

of

Parent

Private Educational Loan

Additional focus on leveraging Wells Fargo household cross-sell

opportunity

and

store

referrals.

Cost

of

college

education

highlights

need for private funding

Card Services and Consumer Lending 20

Financial overview

Business overview

and market position

Merger update

Financial overview

Core capabilities and

growth opportunities

Card Services and Consumer Lending 21

Double digit revenue growth achieved in many

Card Services and Consumer Lending Businesses

Line of Business

CAGR

2004-2009

(1)

Debit Card and Prepaid

11%

Credit Card

14%

Educational Financial Services

13%

Personal Credit Management

12%

Global Remittance Services

69%

Wells Fargo Financial

5%

(1) Legacy Wells Fargo for all periods.

Card Services and Consumer Lending 22

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2005

2006

2007

2008

2009

Legacy Wells Fargo

Wachovia

0

1

2

3

4

5

6

7

8

9

2004

2005

2006

2007

2008

2009

Legacy Wells Fargo

Wachovia

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2004

2005

2006

2007

2008

2009

Wells Fargo

11% CAGR

Personal Credit Management

Loan growth slowed due to tightening actions

in ’08 and ’09

Wells Fargo Financial

Education

Financial

Services

-

Disbursements

Consumer Credit Card

14% CAGR

-

Legacy

WF

18% CAGR

–

including

Wachovia

5% CAGR

-

Legacy

WF

8% CAGR

–

including

Wachovia

9% CAGR

-

Legacy

WF

27%

CAGR

–

including

Wachovia

Card Services and Consumer Lending 23

Credit Trends

–

60

day

+

delinquency

rates

believed to have peaked

Credit Card

(3 Month Moving Average)

Wells Fargo Financial Auto

(3 Month Moving Average)

PCM

(3 Month Moving Average)

Includes indirect liquidating and new

business portfolios

Credit Trends

Subprime Industry Source = Loan Performance Securities Database (B/C Paper).

Card Services and Consumer Lending 24

Card Services and Consumer Lending 25

Merger update

Business overview

and market position

Merger update

Financial overview

Core capabilities and

growth opportunities

Card Services and Consumer Lending 26

Merger update

Legacy Wachovia Consumer Credit Card Portfolio and the Credit and

Debit Card Rewards Programs were successfully converted

the weekend of April 10

-

All Wachovia channels are now promoting Wells Fargo Credit Card solutions

and the Wells Fargo Rewards Programs

Educational Financial Services is in the process of completing the

conversion of Wachovia Private Loans from third party servicers to

in-house systems

-

Student loan referral processes have been implemented in Wachovia stores

Debit Card’s conversion schedule mirrors the Regional Banking

conversion schedule

Personal Line and Loan Portfolios are scheduled for conversion in

June/July

-

Wachovia stores now offering PCM loan products

Card Services and Consumer Lending 27

Conclusion

Momentum in Card Services and Consumer Lending businesses due to:

-

Strong record of double digit revenue growth

-

Opportunity for continued revenue growth from Wachovia acquisition

In addition to household growth we have a significant opportunity to

earn more business from our customers who have balances/spending

elsewhere

Our customer-centric model works because we support our channel

distribution partners with their cross-sell efforts

We believe that based on current economic conditions and forecasts

that quarterly credit losses have peaked for the Card Services and

Consumer Lending total loan portfolio.

Impact of new legislation/regulation is manageable as we remain

focused on operating in the ‘new normal’

Card Services and Consumer Lending 28

Biographies

Card Services and Consumer Lending 29

Kevin Rhein

Executive Vice President, Group Head

32-year financial services veteran …

Consumer

Finance, Mortgage Banking, Retail Banking,

Corporate Trust, Cards …

spent extensive time

in both Staff and Line Positions

15 years Wells Fargo, 15 years Citibank

Bachelors Degree in Psychology (University of

Illinois) and MBA (University of Chicago)

Board Memberships: Federal Reserve Consumer

Advisory Council, UNCF, Center for Financial

Services Innovation, First Children’s Finance

Card Services and Consumer Lending 30

Dave Kvamme

Executive Vice President, Wells Fargo Financial

Responsible for Wells Fargo Financial’s

many

lines of business

Over 25 years with Wells Fargo in multiple

positions

Earned BA in business administration from Seattle

Pacific University

Active in annual Community Support Campaign

Board member American Financial Services

Association

Card Services and Consumer Lending 31

Ed Kadletz

Executive Vice President, Debit & Stored Value products

Leads consumer, small business and prepaid debit

card programs

Over 27 years in banking and financial services

industry

18 years in debit cards

MBA earned from the University of St. Thomas

and BS from Marquette University

Card Services and Consumer Lending 32

Mike McCoy

Executive Vice President, Consumer Credit Card

Responsible for the Consumer Credit Card

Business

8 years with Wells Fargo, also worked at ING

and American Express

Missouri State University graduate

Founding member of the Central Iowa Diversity

Council, Board of Directors United Way of

Central Iowa, Board of Directors Students

In Free Enterprise

Consumer Real Estate

Mark Oman

Senior Executive Vice President

Cara Heiden

Co-President, Wells Fargo Home Mortgage

Mike Heid

Co-President, Wells Fargo Home Mortgage

Franklin Codel

Executive Vice President, Finance, Wells Fargo Home Mortgage

May 13, 2010

©

2010 Wells Fargo & Company. All rights reserved.

Consumer Real Estate 1

Consumer Real Estate

overview

Wachovia Pick-a-Pay

portfolio

Wells Fargo Home Mortgage

overview

Consumer Real Estate

overview

Consumer Real Estate 2

32,200 team members

$119 billion in assets

8.6 million loans

#1 rank in originations

–

23.5% market share

#2 rank in servicing

–

16.7% market share

1,700 team members

$82 billion in assets

0.4 million loans

Wells Fargo Home Mortgage

Heiden/Heid

Wachovia Pick-a-Pay Portfolio

Heid/Codel

Oman

33,900 team members

$201 billion in assets

$21 billion in deposits

9 million loans

Consumer Real Estate

Size and scope

Period-end balances/data as of March 31, 2010.

Source:

Inside

Mortgage

Finance

–

12/31/09.

Consumer Real Estate 3

0%

5%

10%

15%

20%

25%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Oman

Consumer Real Estate

Origination market share growth

Source:

Inside Mortgage Finance; includes originations from Home Equity and Wells Fargo Financial; excludes co-issue.

Consumer Real Estate 4

0%

5%

10%

15%

20%

25%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Oman

Consumer Real Estate

Origination market share growth

Heid

Source:

Inside Mortgage Finance; includes originations from Home Equity and Wells Fargo Financial; excludes co-issue.

Consumer Real Estate 5

0%

5%

10%

15%

20%

25%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Oman

Consumer Real Estate

Origination market share growth

Heid

Heiden

Source:

Inside Mortgage Finance; includes originations from Home Equity and Wells Fargo Financial; excludes co-issue.

Consumer Real Estate 6

0%

5%

10%

15%

20%

25%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Oman

Consumer Real Estate

Origination market share growth

Codel

Heid

Heiden

Source:

Inside Mortgage Finance; includes originations from Home Equity and Wells Fargo Financial; excludes co-issue.

Consumer Real Estate 7

0%

5%

10%

15%

20%

25%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Oman

Consumer Real Estate

Origination market share growth

Wells Fargo

Merger

Heid

Heiden

Codel

Source:

Inside Mortgage Finance; includes originations from Home Equity and Wells Fargo Financial; excludes co-issue.

Consumer Real Estate 8

Oman

Consumer Real Estate

Origination market share growth

Wells Fargo

Merger

23.5%

Heid

Heiden

0%

5%

10%

15%

20%

25%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Codel

Source:

Inside Mortgage Finance; includes originations from Home Equity and Wells Fargo Financial; excludes co-issue.

Consumer Real Estate 9

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

($ billions)

Consumer Real Estate

Home Mortgage owned servicing portfolio

$1,637

Note: Excludes Wells Fargo Financial and Home Equity portfolios.

Oman

Wells Fargo

Merger

Heid

Heiden

Codel

Consumer Real Estate 10

Consumer Real Estate

Why we like the mortgage business

Customer Value Stream

Serves a fundamental customer need

Large source of new, high-value households

Cross-sell opportunity, with mortgage as one of our

cornerstone products

Leverage Wells Fargo brand, distribution, customer base

and financial strength

Earnings Stream

Significant earnings power / growth

Natural

business

offsets

–

origination

and

servicing

Consumer Real Estate 11

WFHM has been profitable every year since 1988

as we have grown the business through:

-

Wide range of rate cycles

-

Wide range of credit cycles

Strong

returns

(1)

over

20

years,

1990-2009

-

Lowest ROE year   

8%

-

Only three years with ROE below

15%

-

Weighted average ROE

23%

Consumer Real Estate

Wells Fargo Home Mortgage profitability

(1) Calculated for WFHM with 7% equity.

WFHM = Wells Fargo Home Mortgage.

Consumer Real Estate 12

Consumer Real Estate

Our unique capabilities

Consistent

balance

in

our

business

model

–

Origination

and

Servicing

Consistent focus on retail as the point-of-sale high ground

Strong retail sales culture / consumer marketing skills

Quality

focus

–

customers

and

investors

Excellence

in

risk

management

–

interest

rate

and

credit

risk

Effective management of scale and operational capacity

Strong

science

–

effectively

applied

Strong management team

To be successful long-term in the mortgage business requires

consistency and discipline

Consumer Real Estate 13

Consumer Real Estate

Growth opportunities

Continued market share growth

-

Retail mortgage origination market remains fragmented

Customer cross-sell opportunities are substantial

-

Bank

Mortgage

-

Mortgage

Bank

Investing in the business to improve distribution,

operational efficiency, cost and control

Future growth opportunities are significant

Consumer Real Estate 14

Consumer Real Estate

Portrait of a survivor

Drivers of success from 12 years ago remain the same today!

Source: Norwest Investor Day, May 1998.

Large Servicers with Multi-Channel Production Capacity

and Strong Retail

Access to Capital

Superior Risk Management Skills

Low Cost Driven By Scale and Technology

Strong Consumer Marketing Skills

Talented People

Consolidation Will Continue

Portrait of Survivors

Consumer Real Estate 15

Consumer Real Estate

Industry fallout and consolidation –

2006 top lenders

No longer in

business

Remaining Top

Lender

Of the top 25 lenders in 2006, only 8 remain in 2009

Source: Inside Mortgage Finance.

Rank

Top Lenders in 2006

1

Countrywide

2

Wells Fargo

3

WaMu

4

Citi

5

Chase

6

Bank of America

7

Wachovia

8

ResCap

9

IndyMac

10

GMAC Residential

11

EMC / Bear Stearns

12

New Century

13

American Home

14

SunTrust

15

HSBC

16

National City

17

PHH

18

ABN / Amro

19

Greenpoint / Capital One

20

Aurora / Lehman

21

WMC / GE

22

Fremont General

23

First Horizon

24

First Magnus

25

Mortgage IT

Consumer Real Estate 16

Consumer Real Estate

Industry consolidation

Combined Share Top 5 Servicers

Combined Share Top 5 Originators

We predicted industry consolidation and positioned

ourselves to benefit from it

Source: Inside Mortgage Finance.

21%

62%

1997

2009

20%

60%

1997

2009

Consumer Real Estate 17

Consumer Real Estate

Top 5 mortgage originators and servicers in 2009

Share of Top 5 Originators in 2009

Share of Top 5 Servicers in 2009

The Top 5 originators and servicers are dominated

by bank holding companies

Source: Inside Mortgage Finance.

Consumer Real Estate 18

1.4%

1.7%

3.3%

10.5%

12.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Quicken

Loans

PHH

Chase

Bank of

America

Consumer Real Estate

Top 5 retail originators in 2009

Retail origination business remains fragmented

Combined Retail share of Top 5 is 30%

Source: Inside Mortgage Finance.

Consumer Real Estate 19

14%

20%

25%

53%

78%

0%

25%

50%

75%

100%

GMAC

Citi

Chase

Bank of

America

3%

7%

13%

20%

17%

1%

3%

11%

13%

0%

5%

10%

15%

20%

25%

GMAC

Citi

Chase

Bank of

America

Servicing Share

Retail Origination Share

Consumer Real Estate

The Retail advantage

Retail Origination Share / Servicing

Share Ratio in 2009

Top 5 Originators and Servicers 

in 2009

Our retail origination share positions us well with a natural

business hedge, enabling us to retain refinancing customers

<1%

Source: Inside Mortgage Finance.

Consumer Real Estate 20

Consumer Real Estate

Natural business hedge

$0

$10

$20

$30

$40

$50

$60

$70

Origination Volume

(1)

Payoffs

($ billions)

Funding-to-payoff relationship is important in our business model;

maintaining the appropriate balance is key to providing desired

natural business hedge

Monthly fundings and payoffs

Servicing

Portfolio

$368B

Servicing

Portfolio

$1,637B

2000

2002

2001

2003

2004

2005

2006

2007

2008

2009

(1) Excludes co-issue for origination volume.

Consumer Real Estate 21

Consumer Real Estate

MSR risk management approach

We manage the MSR risk within our mortgage business unit,

which is unique among our peers

Provides the best connection between business experience,

information & insights, and MSR asset valuation assumptions

Provides the best connection to consider the “natural business

hedge”

from originations into the hedging strategy

Maximizes the natural cross hedge opportunity between the

pipeline/warehouse and MSR positions

Strong governance and corporate involvement / oversight

The MSR hedge will be covered separately tomorrow

MSR = Mortgage Servicing Rights.

Consumer Real Estate 22

Consumer Real Estate

Market place opportunities

Well positioned for the future

Market share

Efficiency

Cross sell

-

Wallet share opportunity

If Wells Fargo had 100% of our existing

customer’s current

mortgage

business

–

we

would

double

double

the

size

of

our

mortgage business

Consumer Real Estate 23

Wells Fargo Home

Mortgage Overview

Cara Heiden, Co-President, WFHM

Mike Heid, Co-President, WFHM

Consumer Real Estate

overview

Wachovia Pick-a-Pay

portfolio

Wells Fargo Home Mortgage

overview

Consumer Real Estate 24

Investors

Wells Fargo

Home Mortgage

Consumers

Wells Fargo Home Mortgage

Mortgage business model

We maintain respect for our Mortgage Banking Model

Consumer Real Estate 25

Investors

Wells Fargo

Home Mortgage

Consumers

Wells Fargo Home Mortgage

Mortgage business model

Origination Revenues

Origination fees

Gain on sale, including

capitalized MSR

Mortgage held for sale net

interest margin

Servicing Revenues

Servicing fees, net

of MSR amortization

Net hedge results

Origination

Transaction Business

Servicing

Annuity Business

We maintain respect for our Mortgage Banking Model

Consumer Real Estate 26

Wells Fargo Home Mortgage

Customer cycle

Servicing

Portfolio

WFHM

New

Retail

Customers

WFHM New

Wholesale and

Correspondent

Customers

WF

Banks

WF

Advisors

WFHM

Other WF

Businesses

Consumer Real Estate 27

Wells Fargo Home Mortgage

Market position strength

Our market position is strong because we have

competed with time-tested fundamentals:

Adherence to our long-lived Responsible Lending and

Servicing Principles, published in 2004

A long-standing strategy of Controlled, Profitable, Market

Share

Growth

by

building

lasting

relationships

with

customers

and clients

A deep understanding of the mortgage banking model and

the capabilities that are key to success

Strong and visible leadership in the housing industry

Wells Fargo Home Mortgage is an industry leader, competing

successfully in an ever-changing and volatile landscape

Consumer Real Estate 28

Wells Fargo Home Mortgage

Origination market share growth

Our

ability

to

capitalize

on

the

market

opportunity

has

driven

significant market share growth

Market share forgone

when industry didn’t

adhere to responsible

lending principles

23.5%

Source:

Inside Mortgage Finance; includes originations from Home Equity and Wells Fargo Financial; excludes co-issue.

Consumer Real Estate 29

Wells Fargo Home Mortgage

Product mix –

2006

Industry

52%

77%

Wells Fargo has traditionally maintained a higher mix of prime conventional and

government loans than the overall industry, especially during the expanded

credit era

34%

11%

Home Equity

Alt-A

Non-prime

Jumbo

Conv/Conforming

FHA/VA

11% Alt-

A and

non-

prime vs.

Industry’s

34%

77% prime

conventional

and

government

vs.

Industry’s

52%

Source: Inside Mortgage Finance; excludes co-issue.

Consumer Real Estate 30

7.07%

8.72%

9.01%

11.48%

9.28%

3.17%

3.28%

3.04%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Citi

Chase

Bank of America

Industry -

Large Servicer

($7.0 Trillion)

Foreclosure Rate

Delinquency Rate

Wells Fargo Home Mortgage

Delinquency & foreclosure overview at December 31, 2009

Our quality of origination and servicing businesses has enabled our residential

loan servicing portfolio to perform much better than major competitors

8.96%

12.31%

14.76%

12.18%

10.46%

Source:

Inside Mortgage Finance Large Servicer Delinquency Report; includes Wells Fargo owned loan portfolios including Pick-a-Pay,

Wells Fargo Financial, and Home Equity.

1.89%

1.74%

Consumer Real Estate 31

Wells Fargo Home Mortgage

Leading with focus on Controlled, Profitable, Market Share Growth

Driving Controlled, Profitable,

Market Share Growth by building

lasting relationships with

customers and clients

Consumer Real Estate 32

Wells Fargo Home Mortgage -

Originations

Consumer Real Estate 33

Retail

Wells Fargo Home Mortgage –

Originations

Market position –

2009

Wholesale

Correspondent

Wells Fargo Home Mortgage Distribution Channels

Consumer Real Estate 34

Retail

#1 wholesale

lender

$44 billion in

funding volume

11% of WFHM

volume

#2 correspondent

lender

$148 billion in

funding volume

36% of WFHM

volume

#1 retail lender 

$217 billion in

funding volume

53% of WFHM

volume

Wells Fargo Home Mortgage –

Originations

Market position –

2009

Wholesale

Correspondent

Wells Fargo Home Mortgage Distribution Channels

Source: Inside Mortgage Finance; excludes Wells Fargo Financial and Home Equity funding volume.

Consumer Real Estate 35

Retail

Direct-to-consumer

50 states

8,500 sales locations

10,400 Home Mortgage Consultants (HMCs)

Distributed Retail

-

Referral relationships with bankers, advisors, Realtors and builders

-

Joint ventures

Centralized platform

-

Corporate relocation

-

Existing customers

-

Internet leads and telesales

Wells Fargo Home Mortgage –

Originations

Distribution channels

Wells Fargo Home Mortgage Distribution Channels

Consumer Real Estate 36

Retail

Sources loan applications through 8,000

WFHM approved mortgage brokers

Processed and underwritten by WFHM

Closed in Wells Fargo name

Wells Fargo Home Mortgage –

Originations

Distribution channels

Wells Fargo Home Mortgage Distribution Channels

Direct-to-consumer

50 states

8,500 sales locations

10,400 HMCs

Distributed Retail

Centralized platform

Wholesale

Consumer Real Estate 37

Retail

Purchases closed

loans from 850

WFHM approved

correspondent clients

Adheres to WFHM

and investor

requirements

Wells Fargo Home Mortgage –

Originations

Distribution channels

Wells Fargo Home Mortgage Distribution Channels

Wholesale

Correspondent

Sources loan

applications through

8,000 WFHM

approved mortgage

brokers and closed

in WFHM name

Direct-to-consumer

50 states

8,500 sales locations

10,400 HMCs

Distributed Retail

Centralized Platform

Consumer Real Estate 38

Retail

Point of sale high ground

Control customer experience

Best early opportunity for cross-sell, relationship development

Wider profit margins

Credit quality is better

Best natural hedge for the servicing portfolio

Wells Fargo Home Mortgage –

Originations

Why we like the distribution channels

Wells Fargo Home Mortgage Distribution Channels

Consumer Real Estate 39

Retail

Source of new homeowning

households

Builds scale and leverages expertise

Attractive

returns

-

part

of

our

natural

business hedge

Wells Fargo Home Mortgage –

Originations

Why we like the distribution channels

Wells Fargo Home Mortgage Distribution Channels

Point of sale high

ground

Control customer

experience

Best early opportunity

for cross-sell,

relationship

development

Wider profit margins

Credit quality is

better

Best natural hedge for

the servicing portfolio

Wholesale

Correspondent

Consumer Real Estate 40

Wells Fargo Home Mortgage –

Retail Originations

Consumer Real Estate 41

Bank locations

Mortgage locations

Wells Fargo Home Mortgage –

Retail Originations

8,500 sales locations in all 50 states

Wells

Fargo

Home

Mortgage

–

Retail

Originations

Retail origination ranking by state

#1 Rank

#2 Rank

#3 Rank

#4+ Rank

DC

Sources: 4Q09 Marketrac-First American Core Logic as of 04/14/10 – no coverage in SD & VT.

2008 HMDA Home Purchase Loans – origination rankings for SD & VT only.

Consumer Real Estate 42

Wells Fargo #1, #2 or #3 in 48 States & D.C.

Wells Fargo

Home

Mortgage

–

Retail

Originations

Retail origination profitability

Retail margins are stronger than those of wholesale / correspondent

businesses across all rate cycles

Low

High

Low refinance / flatter yield

curve rate environment

(2005, 2006, 2007)

Balanced market

environment

(2000, 2004, 2008)

High refinance / steeper yield

curve rate environment

(2001, 2002, 2003, 2009)

0

0

Consumer Real Estate 43

Consumer Real Estate 44

Wells

Fargo

Home

Mortgage

–

Retail

Originations

Managing retail origination capacity

Quarterly Direct Retail Origination Expense: 2000-2010

Quarterly Retail Origination Volume ($ billions)

WFHM has efficiently managed direct origination expenses across all

rate cycles and origination environments

Wells Fargo Home Mortgage –

Retail Originations

Managing retail origination capacity

WFHM has effectively managed retail origination capacity

across all rate cycles

Added

6,300

FTEs

Reduced

2,800

FTEs

Consumer Real Estate 46

Wells Fargo Home Mortgage –

Retail Originations

Managing retail origination capacity

We cost-efficiently ramp up or down origination capacity

by leveraging variable expenses

0

Consumer Real Estate 47

Wells Fargo Home Mortgage –

Retail Originations

Market Share opportunities by Wells Fargo customer segments

Our retail origination business strategically captures market share by

executing strategies per customer segment

Retail

Market Share

12.9%

5.5%

14.7%

48.7%

Customer Segments

WFHM Mortgage

Customers

WF Retail Banking Relationships

Other WF Relationships /           

External Market

Total Retail Mortgage Origination

Market Share

Consumer Real Estate 48

During 1Q10, 73% of our Retail customers returned to Wells

Fargo for their refinance needs

Recaptured Refinance

Customers

Customer Retention -

Retail

73%

25%

Wells Fargo Home Mortgage –

Retail Originations

Customer retention of WFHM retail customers

Recaptured Purchase

Customers

Our retail origination business has been very successful serving our

customers’

mortgage financing needs

Consumer Real Estate 49

Wells Fargo Home Mortgage –

Retail Originations

Achieving operational excellence –

ongoing investment

Operational excellence is enabled by:

Common

Opportunity,

Results

&

Experience

(CORE)

–

our

new,

integrated loan production system for sales and fulfillment is currently

being deployed to all states and products

Web enabled

Paperless

Workflow management

Embedded controls

Ease of change and training

Enables scalability

Balancing workload nationwide

Consumer Real Estate 50

Wells Fargo Home Mortgage –

Secondary Markets

Consumer Real Estate 51

Sophisticated secondary market capabilities

-

Sales execution including specified pooling

-

Efficient delivery and clearing process

-

Depth of product and market participation

Access to a wealth of data

Marketplace power

-

27%

of

new

Freddie

Mac

MBS

issuance

–

#1

rank

-

20%

of

new

Fannie

Mae

MBS

issuance

–

#2

rank

-

26%

of

new

Ginnie

Mae

MBS

issuance

–

#2

rank

Wells Fargo Home Mortgage –

Secondary Markets

Secondary market expertise supports all channels

Source: Inside Mortgage Finance.

Consumer Real Estate 52

Wells Fargo Home Mortgage –

Servicing

Consumer Real Estate 53

Source of customers for Retail production recapture

Opportunity to cross sell customers

Economies of scale business

Attractive returns

-

MSR

has

a

natural

self-funding

feature

–

escrow

balances

and

deferred tax liability normally more than finances the

servicing asset

-

Currently generates $4 billion annually of positive cash flow

Provides natural business model offset to variability

in origination profitability across rate cycles

Wells

Fargo

Home

Mortgage

–

Servicing

Why we like the servicing business

Our servicing business is an integral part of our business model

Consumer Real Estate 54

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

$1,636,651,362,199.42

Outstanding principal balance at December 31, 2009

Consistent growth through all rate and business cycles

Wells

Fargo

Home

Mortgage

–

Servicing

Owned

servicing

portfolio

growth

–

outstanding

principal

balance

($ billions)

$1,637

Note: Excludes Wells Fargo Financial and Home Equity portfolios.

Consumer Real Estate 55

Private/Other 

Wells Fargo

FNMA/FHLMC/GNMA

Wells

Fargo

Home

Mortgage

–

Servicing

Owned servicing portfolio breakdown

86% of the servicing portfolio is composed of loans serviced for others

$1,637 billion

Note: Excludes Wells Fargo Financial and Home Equity portfolios.

Consumer Real Estate 56

To be successful, you need to be expert at:

Default management

Customer service

Operations management

MSR interest rate risk management

Wells

Fargo

Home

Mortgage

–

Servicing

Keys

to

success

in

the

servicing

business

The servicing business comes with challenges

Consumer Real Estate 57

523,336 active trial and completed modifications from January 2009

to March 2010

Fewer than 2% of the loans secured by owner-occupied homes and

serviced by Wells Fargo have proceeded to foreclosure sale in the last

12 months

Initiated or completed three modifications for every one foreclosure sale

on owner-occupied properties from October 2009 through March 2010

Wells Fargo Home Mortgage –

Servicing

Loan modification activity

FHA/VA

Modifications

All Other

Proprietary

Modification

Programs

Pick-a-Pay

Modifications

HAMP Modifications

Represents active trial and completed modifications as of March 31, 2010.

Consumer Real Estate 58

Wells Fargo Home Mortgage –

Customer Value Stream

Consumer Real Estate 59

Wells Fargo Home Mortgage –

Customer Value Stream

Mortgage drives a substantial customer opportunity for WFC

The “Customer Value Stream”:

Winning

new customers for Wells Fargo –

valuable

“homeowning

customers”

Deepening

the WFC relationship with them through

cross sell –

mortgages to bank customers and bank

products to mortgage customers

Retaining

those

customers

for

long-term

shareholder value 

Consumer Real Estate 60

Percentage of new Homeowning Households brought to

WFC by Mortgage, Checking and all other Business Lines

Wells Fargo Home Mortgage is a “Top 2”

generator of new

“homeowning”

households for Wells Fargo –

along with checking

Checking Account  43%

Mortgage

20%

Other 6%

Insurance 1%

Brokerage 9%

Savings 4%

WF

Financial

9%

Wells Fargo Home Mortgage –

Customer Value Stream

Winning Customers for Wells Fargo

Student Loan 2%

Personal/PCS/HE Loans/Lines 6%

Consumer Real Estate 61

Wells Fargo Home Mortgage –

Customer Value Stream

Cross-sell opportunities

Wells Fargo has a long history of acquiring customers and

deepening relationships

Consumer Real Estate 62

Retail Bank homeowning

Households with a Wells Fargo Mortgage

own

8.28

products

[The

WFC

goal

is

8!]

Cross Sell Growth

Retail Bank Homeowning

HHs

with

a WF Mortgage

Retail Bank Homeowning

HHs

without

a WF Mortgage

8.28

6.06

Wells Fargo Home Mortgage –

Customer Value Stream

Deepening the relationship with our customers

Homeowning

households with a WF mortgage are particularly valuable

Consumer Real Estate 63

Wells Fargo Home Mortgage

Conclusion

At Wells Fargo Home Mortgage, we have built a

unique set of capabilities combined with consistent

and disciplined execution:

Balanced business model –

origination and servicing

Leading retail origination franchise

Disciplined sales and sales management culture

Excellence in risk management –

interest rate and credit risk

Ability to lead at scale in origination and servicing

Best leadership team in the business

Consumer Real Estate 64

Consumer Real Estate

overview

Wachovia Pick-a-Pay

portfolio

Wells Fargo Home Mortgage

overview

Wachovia Pick-a-Pay

portfolio

Franklin Codel, EVP, Finance, WFHM

Consumer Real Estate 65

Wachovia Pick-a-Pay portfolio

Overview

Both the realized losses and the expected lifetime

loss content at March 31, 2010, were better than

the acquisition model

Loss mitigation actions are working

Nonaccrual levels remain elevated

-

Accounting write-down policy ensures loss recognition

is timely

Portfolio compares favorably to other option

ARM portfolios

Consumer Real Estate 66

Wachovia Pick-a-Pay portfolio

Unpaid principal balance rollforward

Unpaid principal balance down nearly $17 billion since acquisition

PCI = Purchased credit impaired loans.

($ billions)

Non-PCI

PCI

Total

Beginning

Unpaid

Principal

Balance

-

12/31/2008

54.8

$           

62.5

$          

117.3

$       

Paid-in-Full and Monthly Amortization

(6.5)

(0.5)

(7.0)

Short Sale and Foreclosure

(0.8)

(5.9)

(6.7)

Principal Forgiveness

(0.1)

(2.7)

(2.8)

Ending

Unpaid

Principal

Balance

-

03/31/2010

47.4

$           

53.3

$          

100.8

$       

Consumer Real Estate 67

ANALYSIS OF NONACCRETABLE DIFFERENCE FOR PCI LOANS

($ billions)

Pick-a-Pay

Balance at December 31, 2008

$      (26.5)

Release of nonaccretable

difference due to:

Reclassification

to

accretable

yield

for

loans

with

improving

cash

flows

0.6

Use of nonaccretable

difference due to:

Losses

from

loan

resolutions

and

write-downs

11.4

Balance at March 31, 2010

$       (14.5)

Nonaccretable

difference usage from loan resolutions

$5.4 

Nonaccretable

difference allocated to severely delinquent loans

$6.0

Wachovia Pick-a-Pay portfolio

Nonaccretable

difference analysis

(1)

Reclassification of nonaccretable difference for increased cash flow estimates to the accretable yield will result in increasing income and thus the rate of

return realized. Amounts reclassified to accretable yield are expected to be probable of realization.

(2)

Write-downs to net realizable value of PCI loans are charged to 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 upon final resolution of the loan.

UPB= Unpaid principal balance.

(1)

(2)

Consumer Real Estate 68

Wachovia Pick-a-Pay portfolio

Nonaccretable

difference analysis

Nonaccretable

difference has absorbed $5.4 billion of realized

losses to date

Average severity

on short sale and

foreclosure is 46%

($

billions)

PCI UPB

Nonaccretable

Difference

Beginning Balance -

12/31/2008

62.5

$            

(26.5)

$            

Paid-in-Full and Monthly Amortization

(0.5)

-

Short Sale and Foreclosure

(5.9)

2.7

Principal Forgiveness

(2.7)

2.7

Ending Balance -

03/31/2010

53.3

$            

Consumer Real Estate 69

Wachovia Pick-a-Pay portfolio

Nonaccretable

difference analysis

Reclassified $576 million to accretable

yield in 4Q09 / 1Q10

due to improved credit outlook

Represents a balance

sheet reclassification from

nonaccretable

difference

to accretable

yield

($ billions)

PCI UPB

Nonaccretable

Difference

Beginning Balance -

12/31/2008

62.5

$            

(26.5)

$            

Paid-in-Full and Monthly Amortization

(0.5)

-

Short Sale and Foreclosure

(5.9)

2.7

Principal Forgiveness

(2.7)

2.7

Reclass

Nonaccretable

Difference to Accretable

Yield

-

0.6

Ending Balance -

03/31/10

53.3

$            

Consumer Real Estate 70

Wachovia Pick-a-Pay portfolio

Nonaccretable

difference analysis

Nonaccretable

difference

provides

adequate

support

for

remaining

loss

content

78% of the remaining $38.7 billion UPB was current as

of March 31, 2010

Average CLTV of the remaining $38.7 billion is lower

than loans that have gone to loss or are 180+ DPD

($ billions)

PCI UPB

Nonaccretable

Difference

Balance

at

03/31/2010

53.3

$       

Nonaccretable

Difference

Prior

to

Allocation

for

Severely

Delinquent

Loans

(180+

DPD)

(20.5)

$     

Loans 180+ Days Past Due

(14.6)

Allocation for Loans 180+ Days Past Due

6.0

UPB,

Net

of

Loans

180+

Days

Past

Due

38.7

$       

Nonaccretable

Difference

at

03/31/2010

(14.5)

$     

Consumer Real Estate 71

Wachovia Pick-a-Pay portfolio

Accretable yield

Accretable yield will be recognized over the          

life of the asset (asset has 9-year weighted

average life)

Accretable yield is recognized in net interest margin

Accretable yield is recalculated quarterly and is

affected by:

-

Underlying loan interest rates

-

Timing of liquidations and dispositions

-

Level of loans which are paying vs. not paying

-

Prepayments

Over the last 5 quarters, the accretable yield

recognized has been between 5.05% and 5.34%

Consumer Real Estate 72

Wachovia Pick-a-Pay portfolio

Loss recognition –

non-PCI portfolio

Prompt

Loan placed on nonaccrual at

120 days past due (DPD);

accrued interest is reversed

120-180 DPD loan losses

considered as part of allowance

Loans are charged off at 180

DPD to estimated recoverable

value less selling costs

Continuous

Nonaccrual loans > 180 DPD

are revalued every 6 months

Additional write downs are

taken, if needed, based on

updated property values

Prompt and continuous loss recognition of nonaccrual loans

Growth in nonaccrual balances does not indicate loss deferral

Consumer Real Estate 73

73% of nonaccrual loans have been written down to estimated

recoverable value

27% of nonaccrual loans less than 180 DPD have not yet been

written down

-

Loss content is included in the allowance for loan losses

1Q10 Total $4,161 million

19%

27%

15%

39%

180+ DPD written down to

estimated recoverable value

180+

DPD

updated

CLTV

100%

Less than 180 DPD;

Initial charge-offs usually not

taken until 180 DPD

Loan modifications (TDRs)

Growth in nonaccrual balances does not indicate loss deferral

Wachovia Pick-a-Pay portfolio

Nonaccrual loan composition

Consumer Real Estate 74

Wachovia Pick-a-Pay portfolio

Portfolio

composition

Modified Loans =  $17.9B

Other Loans =      $13.7B

Pay Option =        $69.2B

Total = $100.8B

31% of the portfolio does not have a negative amortization feature

$115.0

$117.3

$111.0

$107.3

$103.7

$100.8

86%

79%

74%

70%

69%

85%

14%

14%

13%

14%

13%

14%

7%

13%

16%

18%

1%

($ billions)

Consumer Real Estate 75

Wachovia Pick-a-Pay portfolio

Deferred interest outstanding

Deferred interest balance has now declined for four consecutive quarters

($ billions)

Wachovia Pick-a-Pay portfolio

Portfolio

overview

Expect minimal recast issues in the portfolio over the next three years

Currently,

there are

227,000

customers

with a pay

option loan

in the

portfolio

Consumer Real Estate 77

Wachovia Pick-a-Pay portfolio

Foreclosure avoidance and loss mitigation strategies

We utilize

all

available

tools

to

avoid

foreclosure

and

minimize

loss

Loan modifications and short sales are a better alternative to

foreclosure for both the borrower and communities

Since January 2009, we have completed 57,400 full-term loan

modifications; forgiven $2.8 billion of principal

Over the same time period, we have completed over 11,000

short sales

In the event loan modification or short sale is not a viable

solution, we continue through the foreclosure process

-

REO properties remained in inventory for 79 days in 1Q10

Wachovia Pick-a-Pay portfolio

Current –

30 days past due roll rates

We continued to see improvement in early stage delinquencies

PCI

Non-PCI

PCI 30+ roll rates

have improved to

their lowest levels

since 2Q08

Non-PCI 30+ roll

rates have

improved to their

lowest levels since

1Q09

Consumer Real Estate 79

Positive trends continued to emerge in the Pick-a-Pay

portfolio:

Both the realized losses and the expected lifetime loss content

at March 31, 2010, were better than acquisition model

We have a very robust foreclosure avoidance/loss mitigation

program, both through loan modifications and short sales

Portfolio compares favorably to other option ARM portfolios

Wachovia Pick-a-Pay portfolio

Conclusion

Consumer Real Estate 80

Wachovia Pick-a-Pay portfolio

Definitions

Nonaccretable

Difference:

Nonaccretable

difference

established

in

purchase

accounting for impaired loans to absorb losses otherwise recorded as charge-offs

Accretable

Yield:

Undiscounted

interest

income

to

be

recognized

over

the

life

of book value of purchase accounting impaired loans

Deferred

Interest

(also

referred

to

as

negative

amortization):

If

a

customer

chooses

to

make

a

minimum

payment,

it

can

be

lower

than

the

interest

due;

the

difference

between

the

minimum

payment

and

the

interest

due is deferred and added to the balance of the loan

Full-Term

Modification:

Agreeing

to

change

the

terms

of

the

loan

for

a

borrower for the full-term of the loan

Severity

%:

The

amount

of

unpaid

principal

balance

not

recovered

at

time

of

liquidation divided by the total UPB; for the purposes of this presentation,

severity does not include overhead or holding costs, accrued interest, property

taxes, or other amounts paid on behalf of the borrower

Consumer Real Estate 81

Biographies

Consumer Real Estate 82

Mark Oman

Senior Executive Vice President

Mark Oman is senior executive vice president for Wells Fargo & Company, a position

he has held since August 2005. Today, he oversees Wells Fargo Home Mortgage – a

leading originator and servicer of residential mortgages as well as the first mortgage

portfolios acquired through the Wachovia merger.

Oman began his career in accounting at Deloitte, Haskins and Sells in Des Moines. 

He joined Wells Fargo in 1979 at Des Moines-based Wells Fargo Financial, Inc. (then

Dial Finance), where he held a variety of management positions. In 1985, he joined

Wells Fargo Home Mortgage and held a number of senior management positions until

1989 when he was named president and chief executive officer. Under his leadership

the company grew into one of the largest mortgage banks in the nation, serving all

50 states.  In 1997, Oman was promoted to group executive vice president of Wells

Fargo & Company with responsibility for multiple business units, and in 2005 was

promoted to senior executive vice president.

Oman has served on various professional and community boards, panels and

committees. He is a board member of the University of Northern Iowa Foundation,

Greater Des Moines Community Foundation and is a member of the Iowa Business

Council. Oman holds a bachelor’s degree in accounting from the University of

Northern Iowa. 

Consumer Real Estate 83

Cara Heiden

Co-President, WFHM

Cara Heiden is co-president of Wells Fargo Home Mortgage. Heiden’s responsibilities

include joint leadership – with Mike Heid – of the overall business and strategic

direction of the Mortgage division. The following areas within Mortgage report

directly to her: National Consumer Lending, Institutional Lending – Correspondent

and Wholesale, Loan Servicing and Post Closing, Consumer Marketing, Customer

Retention, Cross Selling and Ventures. 

Heiden has served as a committee member and is past president of the Wells Fargo

Housing Foundation. She provides leadership in many civic organizations, including

the United Way and her alma mater, Iowa State University.

Heiden’s career with Wells Fargo began when she joined Norwest Bank Iowa/Wells

Fargo in 1981. She held various accounting positions and was promoted to senior

vice president and CFO of Wells Fargo Bank Iowa in 1988. In 1992, she joined WFHM

as vice president and CFO, and later, held executive leadership positions in Loan

Servicing, Retail Direct Client Services, and National Consumer Lending. She became

division co-president for WFHM in 2004. 

Consumer Real Estate 84

Mike Heid

Co-President, WFHM

Mike Heid is co-president for Wells Fargo Home Mortgage. Heid’s

responsibilities as co-president include joint leadership, along with Cara

Heiden, of the overall business and strategic direction of the Mortgage

division. The following areas of the Mortgage division report directly to him:

Capital Markets, Capital Markets Finance and Valuation, Credit Management,

Investment Portfolio Management, Finance and Corporate Properties Group,

the Program Services Group and Real Estate lending systems development.

Prior to being named co-president in June 2004, Heid was executive

vice president and CFO. Heid held several management positions before

being named CFO in 2002. He joined the Wells Fargo organization in 1988

and joined Wells Fargo Home Mortgage in April 1991 as assistant vice

president and controller.

Mr. Heid is Chairman of the Housing Policy Council of the Financial Services

Roundtable, a trade association whose members represent approximately 65

percent of the mortgage industry

Heid earned a bachelor’s degree in accounting from the University of

Wisconsin – Whitewater in 1979 where he graduated summa cum laude. He

is also a Certified Public Accountant and a member of the Mortgage Bankers

Association.  

Consumer Real Estate 85

Franklin Codel

Executive Vice President, Finance, WFHM

Franklin Codel is executive vice president, Head of Mortgage Finance for

Wells Fargo Home Mortgage.  Codel is responsible for the overall financial

leadership of Wells Fargo Home Mortgage, including directing mortgage-level

asset/liability decisions, financial forecasting, accounting operations, and

business line financial support.  He also plays a significant leadership role in

managing various loan portfolios, including the Wachovia Pick-a-Payment

portfolio.  Prior to being named Head of Mortgage Finance in August 2004,

Codel led the WFHM Financial Planning and Capital Management team, which

is responsible for strategic planning, annual and quarterly forecasts and in

developing balance sheet management strategies.  Codel joined Wells Fargo

Home Mortgage in 1996.

Codel earned a bachelor’s degree in engineering science from Harvard

University in 1986. In 1989, he received his master’s degree in finance from

the University of Texas at Austin.

Codel currently serves as Treasurer of the Iowa Environmental Council.He

was also appointed by Iowa Governor Chet Culver to serve on the Due

Diligence Committee of the Iowa Power Fund Board.

Community Banking

Carrie Tolstedt

Senior Executive Vice President

May 13, 2010

©

2010 Wells Fargo & Company. All rights reserved.

Business

Overview

Business

Overview

Competitive

Advantages

Opportunities

Regional

Banking

An industry-leading and customer-oriented consumer

and small business team

More than 20 million retail bank households

Over 2.5 million small business and business

banking households

Nearly 6,600 retail stores; over 12,000 ATMs

Deposits: ~$500 billion

Wells Fargo

Customer

Connection

31 contact centers as primary telephone

service and sales channel, 24/7

12,000 team members supporting 500 million

customer contacts annually

Online and

Mobile

Banking

More than 17 million active online customers

More than 4 million active bill pay customers

3 million active mobile customers

474 million alerts sent in 2009

Serves nearly 3 out of 4 checking accounts

Community Banking 2

Diversified

Products

Group

Wells Fargo Dealer Services, National Home

Equity Group, SBA Lending, Merchant

Services, Business Direct, Business Payroll

Services, Consumer and Business Deposits,

Small Business Segment, and Business

Banking Support Group

Product management and development, risk

management and underwriting, modeling,

and analytics

Enterprise

Marketing

Brand strategy and advertising

Experiential marketing

Market information, technologies and analytics

Customer insights

Database marketing

Diverse growth segments

Events and history museum

Combined with seasoned product teams, specialized

lines of business, and enterprise groups

Community Banking 3

The Wells Fargo brand is ranked as one of the

most valuable in the world

Brand strategy objectives:

Guide expression and customer

experience

Gain new interest in Wells Fargo

Provide momentum for cross-sell

Create marketing efficiencies

Reinforce team member pride

Solidify our leadership

BrandZ

Top 100 Most

Valuable Global Brands

(1)

#30

Wells Fargo

Ranked most valuable

U.S.-headquartered bank

brand

Community Banking 4

(1) BrandZ Top 100 Most Valuable Global Brands. Millward Brown Optimor, April 2010. (Financial Times, April 28, 2010. www.brandz.com).

We’re local first, then national; we’re a community-

based, relationship-oriented financial services team

Regional presidents, local leaders

Community leadership,

volunteerism, and contributions

Serving as local voice

Making decisions close to the

customers

Partner with other Wells Fargo

businesses in market

Regional P&L accountability

National distribution

Broad product line

Expertise:

-

Technology

-

Operations

-

Systems

Product group P&L accountability

Out-local

the nationals

Out-national

the locals

Community Banking 5

We believe our model combined with our strengths

contributes to differentiated performance over time

Unparalleled

distribution

Customer

experience

Best among         

large banks

(7)

~8 of 10 customers

extremely satisfied

with recent visit/call

Best Consumer

Internet Bank in 

North America

(8)

Risk

management

Credit

Compliance

Operational

Reputation

Continued

innovation

Products and services

Customer experience

Physical distribution

Channel   

functionality

Product

leadership

#1 retail deposits

(1)

#1 small business

lender

(2)

#1 national SBA

7a lender

(3)

#1 used car

lender

(4)

Four customer

segments

Mass market

Mass affluent

Small business

Business banking

….and serve all

#1 banking stores

(5)

#3 bank-branded

ATMs

(6)

Customer Connection

Leading online

channel

Household

growth

Cross-sell

Differentiated

performance:

Community Banking 6

(1) Source: SNL Financial. Retail deposit data 6/30/09. Pro forma for acquisitions. Caps deposits at $500 million in a single banking store and excludes credit union deposits. Continental

U.S. only. Non-retail deposits excluded. (2) In total dollar volume per 2008 CRA data. (3) In dollar volume (combined with Wachovia for 2009 fiscal year). (4) Source-AutoCount

(excluding leases). (5) Source: SNL Financial; adjusted for non-retail branches (i.e. includes open branches as of 3/31/10; excludes $0 deposit branches, non-retail locations/holding

companies). (6) ATM & Debit News. (7) Source: American Customer Satisfaction Index 2009. (8) Global Finance Magazine, 2009.

We focus on long-term differentiated performance

through excellence in execution

Team Member

Engagement

Customer Engagement

welcoming

delivering

value

building

lifelong

relationships

coaching,

development,

and recognition

our product is

service

our value added

is

advice

our advantage

is

our people

unparalleled

distribution

focus on

cross-sell

powered by

people

Community Banking 7

Together, we’re moving forward, combining our long-

standing and proven strengths

Cross-sell

Sales capacity and systems

Small business product innovation

Channel innovation

Customer experience and service

Mass affluent customer strategy

Wells Fargo Dealer Services

Distribution in Eastern states

Wells Fargo

Wachovia

Community Banking 8

Competitive advantages

Business

Overview

Competitive

Advantages

Opportunities

Our competitive advantages have been perfected over

decades and are not easily replicated

Household growth

Cross-sell opportunity

Diversification of geographies

Market share

Solutions per store

Product diversification and partner business referrals

Better value for customers

Unparalleled

distribution

Proven

expertise in

cross-sell

Team member loyalty and retention

Experienced leadership team

Team member empowerment and engagement

People as a

competitive

advantage

Customer loyalty

Customer retention

Team member engagement

Excellence 

in service and 

customer

experience

Community Banking 10

Unparalleled distribution

“We serve our customers through our stores,

ATMs, Phone Banks, internet and mobile

banking, and mail —

when, where and how they

want to use them.”

—Wells Fargo Vision and Values

Our coast-to-coast multi-channel distribution

provides our customers with exceptional

convenience and flexibility

2.6 billion customer

visits per year

3 million active mobile

customers

Serves nearly 3 out of

4 checking accounts

18% solutions CAGR

(5-year)

(2)

500 million customer

contacts per year

(4)

80% first contact

resolution

(5)

8% solutions CAGR

(5-year)

(2)

Online and

Mobile

Customer

Connection

1.5 billion customer transactions per year

46% of census households within 2 miles

of Wells Fargo retail store/ATM in our

footprint states

(1)

51% of businesses within 2 miles of

Wells Fargo retail store/ATM in

our footprint states

(1)

In 15 of the fastest growing states

(1)

In 18 out of 20 largest metro areas

(1)

14% solutions CAGR (5-year)

(2,3)

#1 retail stores and

#3 bank-branded ATMs

Community Banking 12

(1) Data Sources: Claritas 2009 and Dun & Bradstreet 2009. (2) Legacy Wells Fargo only. (3) For purposes of this presentation, all data prior to 2007 on a

comparable basis. (4) Combined Wells Fargo; includes all Customer Connection channels (agent calls, Interactive Voice Response (IVR) calls, email, and

correspondence).  (5) Legacy Wells Fargo Consumer (agent only).

Our store distribution density produces network effects

leading to higher household penetration

Driving optimal                      

distribution density

New stores opened 2009

70

New stores opened 1Q10

11

Retail deposit market

share¹

#1

States with #1 deposit

share

(1)

17

Number of major    

metro markets with

retail household

share:

(2)

Above 30 percent

7 of 18

Above 20 percent

13 of 18

Store to population coverage

Los Angeles •

San Francisco •

low

high

•

Charlotte

Twin Cities •

Denver •

•

Seattle

Atlanta •

Community Banking 13

(1) Source: SNL Financial. Retail deposit data 6/30/09. Pro forma for acquisitions. Caps deposits at $500 million in a

single banking store and excludes credit union deposits. Continental U.S. only. Non-retail deposits excluded.

(2) Data Sources: Demographic data – Claritas 2009; combined household data, MDSS (Dec-09).

Customers expect integration across all channels; we’re

working on more ways to deliver a seamless experience

Store

ATM

Phone

Online

Mobile

Multi-channel integration examples

Text banking enrollment via ATM

Make

an

Appointment

(pilot)

Mobile alerts set-up

Referrals to stores

ATM advertising directs to call

ATM Check Card PIN set-up

E-receipts (pilot)

Mobile banking

customer service

Mobile alerts set-up

Online enrollment

1.5X

1X

One

All

Four

Annualized profit with

multi-channel usage

(1)

1X

1.8X

One

All

Four

Likelihood to buy another

product with multi-channel

usage

(1)

Note: Online and Mobile count as one

channel for the above graphs

(1) Consumer Deposit Customer activity over 3 months; Channel = Store (Teller), ATM, Phone, Online/Mobile, Apr–Jun-09 activity; For contribution, source is

Jun-09 MDSS profit annualized; for product cross-sell rate, products included are traditional core products, Jul–Dec-09.

Community Banking 14

SM

We believe franchise growth is an outcome

of our distribution

3.1%

2.9%

3.0%

2.5%

3.7%

3.8%

0.9%

1.1%

1.3%

1.9%

1.4%

0.8%

2004

2005

2006

2007

2008

2009

Legacy Wells Fargo Retail Bank Household Growth

U.S. Household Growth, Legacy Wells Fargo Footprint (estimate)

Our retail bank household growth has consistently

exceeded U.S. household growth rates

(1)

Community Banking 15

(1) Legacy Wells Fargo total household growth including acquisitions. U.S. Household data – Claritas 2009 demographic estimates based on Wells Fargo trade areas.

Proven cross-sell expertise

“Our strategy is customer-centric, not product-

centric. We do not view any product in isolation.

We view it as part of a relationship.”

—Wells Fargo Vision and Values

We continue to

grow households

The more products our customers have,

the more value we can provide

26%

79%

2003

2009

Total package penetration

(combined consumer and business)

9.8

11.9

12.1

Dec '03

Dec '09

Mar  '10

6X

3X

2X

1X

3

5

8

10+

Household cross-sell

Retail Bank profit per household by cross-sell

2.9

3.7

4.3

5.1

5.6

3.8

4.9

5.6

6.8

7.2

< 1

2 to 3

5 to 6

10 to 20

20+

Tenure in years

2004

2010

Retail Bank household cross-sell by tenure

The more we know our customers, the

more we can satisfy their needs and

remain relevant over time

And higher cross-sell results in more

profitable relationships

CAGR

’03-’09

3%

CAGR

’03-’09

20%

Legacy Wells Fargo cross-sell capability is built

over 20 years and proven over time

Retail Bank total households (MM)

Legacy Wells Fargo only.

Community Banking 17

10.4

18.9

18.8

17.6

16.3

15.8

13.8

12.2

635

951

2003

2004

2005

2006

2007

2008

2009

1Q10

Households

per PFTE

11.5

26.0

7.8

23.1

19.7

17.8

15.5

13.7

2003

2004

2005

2006

2007

2008

2009

1Q10

4.63

5.75

6.81

4.76

4.75

5.29

4.93

4.75

2003

2004

2005

2006

2007

2008

2009

1Q10

4.35

5.95

6.02

4.55

4.65

4.85

4.57

4.82

5.21

5.53

5.73

2003

2004

2005

2006

2007

2008

2009

1Q10

Base

2Q09

2009

1Q10

Legacy Wells Fargo

Wachovia

Retail Bank

household cross-sell

CAGR

’03-’09

15%

Cross-sell is a result of our needs-based

solutions focus

Platform FTE

(in thousands)

Solutions per platform FTE per day

Total solutions

(in millions)

Legacy Wells Fargo only (unless noted).

Community Banking 18

Community Banking generates referrals to

partner businesses

Over 5,000 partners located inside our nearly 6,600 retail banking stores

Over

1,465,000

Over

330,000

2003

2009

Legacy Wells Fargo only.

Partners include mortgage, student lending, Wells Fargo Financial and Insurance from Community Banking stores, online and contact center channels.

Referrals to partner businesses

resulting in a closed product sale

CAGR

’03-’09

28%

Community Banking 19

Excellence in service and

the customer experience

“Our product is service and advice. There’s

no sale without superb service from our

entire team.”

—Wells Fargo Vision and Values

Both teams have a commitment to the customer

experience; Wachovia is making us even better

Combined

(Top Box, 5-pt. scale, teller/banker)

1Q

’10

Loyalty

59%

Satisfaction With Last Visit

81%

Customer Experience

Key Driver Metric

75%

Teller Wait Time

Satisfaction

76%

Legacy

Wells

Fargo

(2)

(Top Box, 5-pt. scale, teller only)

Jan

’04

Dec

’09

CAGR

Loyalty

35%

51%

6%

Welcoming/Wait Time

40%

65%

8%

Wachovia

(Top Box, 7-pt. scale, teller/banker)

Dec

’03

Dec

’09

CAGR

Loyalty

46%

53%

2%

Overall Satisfaction w/Visit

6.6

6.7

---

Customer satisfaction among the largest

U.S. retail banks in the annual ACSI survey

(1)

2001-2008:  #1 Wachovia

2009:  #1 Wells Fargo (combined)

Conducted 255K surveys in 1Q10

(1) ACSI: American Customer Satisfaction Index.

(2) Legacy Wells Fargo began surveys of customers in Jan-04.

Community Banking 21

Delivering the Wells Fargo customer experience

translates into measurable differences across our

channels

Internal Wells Fargo Barometer Study

2009 Channel Satisfaction (% Top Box)

Wells

Fargo

Super

Regional

Peers

(1)

Store

59%

52%

ATM

64%

59%

Online

58%

49%

Phone

48%

40%

Motorbank

62%

56%

(1) Statistically higher/lower than Wells Fargo at 90% confidence level; Super Regional includes the following and their sub-brands: Wells Fargo, Wachovia, Bank of

America, Citibank, Chase/WaMu, US Bank.

C2.

How recently have you done business with [insert financial institution] [insert channel]?

C3.

How satisfied are you with the [insert channel] at [insert financial institution]?

Source: Wells Fargo Competitive Barometer Study, 2009.  Proprietary study conducted on behalf of Wells Fargo by Marketing and Planning Systems (MAPS), Inc.

Waltham, Massachusetts.

We believe loyal customers

buy more, stay longer, and

are more profitable

Relationship

Balance Growth

Cross-sell

Growth

Retention

Rate

Community Banking 22

People as a competitive

advantage

“Products and technology don’t fulfill the

promise behind a brand —

people do…

Our team

members are the single biggest influence on our

customers.”

—Wells Fargo Vision and Values

Our combined team member engagement, led by an

experienced team, is more than three times the U.S.

working population

5.3:1

1.5:1

Community Banking

2009

U.S. Working

Population 2008

Engaged to Actively

Disengaged

Ratio

(1)

Role

# of team

members

Avg

tenure          

in years

Regional Presidents

100

21

Community Banking

Presidents

169

19

Product Line of

Business Leaders

9

22

Business Banking

Managers

480

16

Community Banking

District Managers

630

14

Store Managers

6,500

10

Business Bankers

2,200

9

Copyright ©

2010 Gallup, Inc. All rights reserved.

2009 community banking results is a new baseline combined with Wachovia.

(1) Source: Green bar –

Gallup Poll of U.S. Working Population, 2008.

Community Banking 24

Opportunities

Business

Overview

Competitive

Advantages

Opportunities

We’re focused on advancing our core strategies

Acquire new customers and expand share of wallet

Leverage our largely fixed infrastructure

Adopt Wachovia service strategies in the West,

while continuing to get better in the East

Growing the

franchise and

creating

operating

leverage

Learning

from

Wachovia

Meet our customers’

needs through smart credit solutions

and cross-sell

Diversified

Product

Group

Adopt Wells Fargo cross-sell strategies in the East,

while continuing to get better in the West

Eastern

game plan

Community Banking 26

Growing the franchise and

creating operating leverage

Building on our strengths to acquire and

enhance deposit relationships efficiently

Checking

household

growth

Unparalleled

distribution

–

a

driver

of

customer

acquisition

Effective sales process integration maximizes early cross-sell

Strong product design and cross-sell drive retention

Opportunity exists to grow checking with partner businesses

Share of

wallet focus

Opportunity to deepen share of wallet

Wachovia mass affluent customer focus complements

Wells Fargo’s strengths in mass market

Product

design and

management 

Package design links customer value to deep, long-lasting

relationships

Focus on primary checking relationships reinforces disciplined

deposit pricing

Community Banking 28

We have the scale, breadth of distribution and

share to serve customers…

#1 or #2 deposit market share in 24 of 39 states

#1

or

#2

deposit

market

share

in

13

of

the

nation’s

20-largest

metro

areas

(1)

#1 Market Share

#2 Market Share

#3 Market Share

#4+ Market Share

44%

28%

23%

17%

20%

8%

3%

19%

16%

9%

11%

18%

22%

24%

20%

1%

2%

9%

1%

16%

1%

1%

N.A.

N.A.

2%

17%

17%

15%

13%

10%

10%

2%

Delaware = 12%

District of Columbia = 13%

12%

8%

7%

9%

13%

13%

Community Banking 29

Source: SNL Financial. Retail deposit data 6/30/09. Pro forma for acquisitions. Caps deposits at $500 million in a single

banking store and excludes credit union deposits. Continental U.S. only. Non-retail deposits excluded.

(1) Excluding MSAs where Wells Fargo has no retail banking presence.

…and this has helped us grow the franchise

1Q09—1Q10

Checking

net

gain

(1)

Consumer

7.0%

Business

4.5%

How we grow checking

Acquire new customers through our

distribution channels

Cross-sell to the customers of our

Wells Fargo partners (Mortgage,

Wealth, Brokerage and Retirement,

and Wells Fargo Financial)

Retain existing customers

#1 share in the nation’s 20 fastest

growing MSAs

(2)

(1)

Rolling 12 months.

(2)

Source: SNL Financial. Retail deposit data 6/30/09. Pro forma for acquisitions. Caps deposits at $500 million in a single

banking store and excludes credit union deposits. Continental U.S. only. Non-retail deposits excluded.

Community Banking 30

Integration between product

structure and sales process

promotes engagement from

both bankers and customers

Promote primary checking

relationship and cross-sell

Easily integrate new products

(Way2Save

®

product)

Wells Fargo

The power of the package –

helps acquire new

households and build deep customer relationships

Customers

Choice and flexibility

Cover spectrum of financial

needs: from day-to-day money

management to borrowing and

investing

Increased benefits as

relationship expands:

Waived fees

Bonus interest

Discounted loan rates

Packages create synergies across our key constituents

Bankers

Flexible bundles to present

needs-based solutions

Promote both day-one and

future cross-sell opportunities

Support customer retention

Generate referral opportunities

to partner businesses

Community Banking 31

Our success with packaged selling creates opportunity

within Wachovia; retention increases with household

cross-sell

27%

79%

26%

83%

2003 Legacy

Wells Fargo

2009 Legacy

Wells Fargo

2009 Legacy

Wells Fargo

highest region

Wachovia

equivalent

Package

penetration

(1)

(combined consumer and business)

~70%

~98%

~94%

1

7

10+

Retail Bank Household Cross-sell

Annual household retention

by

household

cross-sell

(2)

(1)

For legacy Wells Fargo, packages defined as a checking account and at least three other products; Wachovia packages

equivalent is the first core product plus 3 additional products.

(2)

Legacy Wells Fargo only.

Community Banking 32

Our focus on building lifelong relationships, ensuring

customers experience our full value, allows us to keep

our industry leading low cost of deposits

$109 billion of Wachovia’s higher rate CDs

matured in 2009

Retained $62 billion in lower rate CD and

liquid deposits at lower than expected yields

0.37%

0.66%

WFC

Peer Avg

Low cost deposits now account for 95%

of

Community

Bank

core

deposits

(1)

CDs

Checking

Savings

High Rate CDs

Average cost of deposits

lower

than

our

peers

(2)

(1)

Average balances (1Q10).

(2)

Average costs of deposits is for total deposits (1Q10). Source: SNL from company regulatory filings.

Peer Average includes BAC, BBT, COF, C, FITB, JPM, PNC, RF, STI and USB.

Community Banking 33

We allocate our resources with discipline; we make

investments and expect appropriate returns

2003

2009

Efficiency ratio

(1)

58%

54%

New banker adds break even within 12-15 months on average

Deploy staffing models

Efficient use of support area resources

De Novos

typically approved based on two-year breakeven

Review distribution network annually

Disciplined

investment

process

in

upgrades

to

stores,

technology

and

ATMs

Legacy Wells Fargo only.

(1) Efficiency ratio for Regional Banking internal reporting.

Community Banking 34

We leverage our fixed cost infrastructure by growing

households per store and adding bankers to serve them

3,260

3,570

2003

2009

Households per store

3.4

5.6

2003

2009

Platform FTE per store

3,810

7,820

2003

2009

Solutions per store

Highest

Store:

17,600

Highest

Store:

27

Highest

Store:

43,000

Driving more customers, bankers and sales

through the four walls of the store…

Deposits per store ($MM)

(1)

…helps drive volume and contributes

to a valuable franchise

Legacy Wells Fargo only.

(1) Combined Wells Fargo and Wachovia.  Source: SNL Financial. Retail deposit data 6/30/09. Pro forma for acquisitions. Caps deposits at $500

million in a single banking store and excludes credit union deposits.  Continental U.S. only. Non-retail deposits excluded.

$73

$61

$50

Wells Fargo

Top 25

Industry Avg

Community Banking 35

East

West

Wells   

Fargo

Team members serving                     

mass affluent customers

Licensed

Bankers

3,485

1,115

4,600

Regional Private

Bankers

350

570

920

WBR Financial

Advisors in

retail stores

1,210

825

2,040

Total

5,045

2,510

7,560

Deploying a nationwide model to capture

the Affluent opportunity

Implementing a Licensed Banker and

Private Banker staffing model

Building out infrastructure to support the

Affluent Customer Segment

Employing the Wachovia licensing

protocol

Ensuring quality referrals to Wealth,

Brokerage and Retirement leading to

successful customer appointments

Mass affluent customer                                  

areas of focus

We’re adopting learnings

from Wachovia in defining

our mass affluent customer strategy –

key to capturing

more share of deposits and investments

Community Banking 36

Diversified Products Group

Mike James

Group Executive Vice President

Diversified Products Group

May 13, 2010

©

2010 Wells Fargo & Company. All rights reserved.

Opportunities upon which we’re particularly focused

in the Diversified Products Group 

Nearly 30 million small businesses in the U.S. with revenues

under

$2

million

(1)

About 2.5 million are Wells Fargo customers

51% of businesses within 2 miles of Wells Fargo retail

store/ATM

in

our

footprint

states

(2)

#1 lender

to

small

businesses

in

the

U.S.

(3)

Approximately

56K

U.S.

automobile

dealerships

(5)

We serve 11K dealers and 2.1 million borrowers

Includes indirect auto finance, commercial banking for auto

dealers, and Warranty Solutions

Small

business

Wells Fargo

Dealer

Services

About 500K businesses in the U.S. with revenues

between

$2

million

and

$20

million

(4)

About

60%

within

25

miles

of

current

banker

locations

Over 50K are Wells Fargo customers

Business

Banking

We serve 2.4 million customers

Assist customers through banking stores, home mortgage

consultants, internet, and contact centers

Home

Equity

(1) SBA estimate of total businesses excluding Dun & Bradstreet (D&B) estimate of small business with $2 MM in revenue and higher. (2) D&B 2009. (3) In total

dollar volume per 2008 CRA data. (4) D&B estimate of small business with $2 MM in revenue and higher. (5) National Independent Automobile Dealers Association

(NIADA) and National Automobile Dealers Association (NADA).

Community Banking 38

Over 90 percent of

businesses have less than

$500K in annual revenue

45 percent have been in

business for over 10

years

(1)

Over half retail/service

industries

(2)

Over 70 percent sole

proprietorships

(3)

Small Business: Our model for serving is store-based;

very similar to retail consumers

Unparalleled

Distribution

Stores

National business

banking center

(phone center)

ATMs

Online and mobile

Customer

Experience

Served by personal

bankers and business

specialists, guided by 

banking store managers

Broad Product Line

Checking and savings

Online banking

Information reporting

Debit and credit cards

Lending

Merchant Services

Payroll

Insurance

Investments

Centralized

Support

Product development

Pricing guidance

Credit underwriting

Risk management

Business strategy

Marketing

Analytical support

Small Businesses

Community Banking 39

Sources: (1) D&B; (2) Census data; (3) IRS.

77 percent

have been

in business for over 10

years

(1)

Broad industry

representation

Have management team,

but owner is the decision

maker

Business Banking: Our model for serving is relationship

banker based as their needs can be more complex

Unparalleled

Distribution

Relationship

managers (2,200)

Stores

National business

banking center

(phone center)

ATMs

Online and mobile

Customer

Experience

Served by dedicated

relationship manager

Some work with

dedicated centralized

banker

Some markets have

business sales officers

Broad Product Line

Cash management

Lending

Online banking and   

information reporting

Merchant and payroll services

Financial products

International 

Investments

Insurance

Centralized

Support

Product development

Pricing guidance

Risk management

Business strategy

Marketing

Analytical support

Business Banking

Source: (1) D&B.

Community Banking 40

We have a proven history of serving businesses; still

have opportunity to expand customer relationships

Small Business/Business Banking

Household Product Penetration

Combined

Checking

85%

Debit Cards

59%

Savings

25%

Lines and Loans

16%

Credit Cards

15%

Treasury Management

8%

Merchant

5%

Insurance and Investments

1%

Payroll

<1%

Metric

(1)

2004

2009

CAGR

Small Business/Business Banking Performance

Customers (MM)

1.3

1.4

3%

Total

solutions

(MM)

(2)

0.9

2.1

19%

Solutions

per

store

(2)

280

640

18%

Cross-sell

2.7

3.8

7%

Package

penetration

(2)

13%

57%

34%

We still have opportunity to

expand relationships

We’ve grown customers, solutions,

productivity, and cross-sell

(1)

Legacy Wells Fargo only.

(2)

Small Business only.

Community Banking 41

Small Business and Business Banking credit quality

has shown improvement; we continue to supply credit

to support the economy

Small Business Credit Quality

Average commitment ~$36K

We believe quarterly loan losses peaked

in

2Q09

(2)

Key credit indicators

–

early

stage

delinquencies,

roll

rates,

transfers

to

workout

–

have

shown improvement

Business Banking Credit Quality

Average commitment ~$400K

Portfolio is broadly diversified by geography and industry

We believe quarterly loan losses peaked

in

4Q09

(2)

Key credit indicators

–

transfers

to

our

workout group and detailed analysis

of our problem loan

book

–

have

shown improvement

In first quarter, we supplied almost $12B in credit,           

including $2.9B in new lending

(1)

(1)

New lending is new loans to existing and new borrowers and increases to existing lines of credit; includes loans

originated to small businesses and business banking customers that book to other areas of Wells Fargo.

(2)

Based on current economic conditions and forecasts.

Community Banking 42

Dealer Services offers nationwide coverage with broad

spectrum of credit options through a decentralized

business model with local market expertise

Cash Management

Merchant Services

Treasury Services

Real Estate

Wealth

Management

Insurance

Indirect Auto

Finance

Dealer Relationships

11,000 dealers

Warranty

Solutions

Commercial

Services

Community Banking 43

Dealer Services –

three areas all seeking to

deepen dealer relationships

Focuses on transportation lending, emphasizing borrower’s

primary mode of employment transportation

47 locations serving 47 states

Cross-sell of aftermarket products and services

Provides finance and insurance aftermarket products for dealers

Offers include vehicle services contracts and dealer reinsurance

Indirect Auto

Finance

Warranty

Solutions

Works with multi-franchise dealers

Merger created nationwide franchise with minimal overlap

Focus on capital optimization, cross-sell, service and risk

mitigation

Commercial

Services

Community Banking 44

Overall

Rank

Non-

Captive

Rank

Originator

Overall

Market

Share

New

Vehicle

Market

Share

Used

Vehicle

Market

Share

1

1

Chase Auto Finance

6.8%

11.3%

4.4%

2

Toyota Financial Services

5.2%

9.9%

2.7%

3

2

Wells Fargo Dealer Services

4.7%

3.4%

5.4%

4

GMAC

4.0%

8.6%

1.4%

5

Ford Motor Credit

3.4%

7.2%

1.3%

6

American Honda Finance

3.2%

7.4%

0.9%

7

3

Bank of America

2.2%

3.8%

1.2%

8

4

Capital One Auto Finance

1.9%

1.8%

2.0%

All lenders auto originations

#1

Used

Indirect auto lending market share growth

Source: AutoCount for 2009.

Community Banking 45

Existing portfolio ($30.9B) has

performed very well. 30+ delinquencies

declined from 2.12% at 12/31/09 to

1.41% at 3/31/10. Loan losses declined

from 2.31% in 4Q09 to 1.59% in 1Q10.

Credit risk on new business has

improved over the last three years due

to lower advance rates (loan-to-value)

and improved payment to income ratios

2009 vintages indicate lower expected

lifetime loss based on early loss

experience

Over the last three years, we’ve

reduced geographical concentration risk

in CA, AZ, NV and FL from 46% to 32%

of the Dealer Services retail portfolio

Dealer Services credit quality trends remained solid

Indirect

borrower

profiles

(1)

Super-

prime

Prime

Non-

prime

Established Borrower

Annual Income

$90,451

$86,760

$63,313

Avg

time at job (yrs)

10.1

8.6

6.1

Avg

time at residence (yrs)

10.1

8.0

5.6

Average FICO

774

695

589

Strong Collateral Characteristics

Vehicle age (years)

1.7

2.8

3.4

Vehicle mileage

21,108

34,093

44,822

Disciplined Structuring

Amount financed

$19,369

$17,715

$13,380

Term (months)

65

66

62

Approx. % of originations

25-35%

60-70%

~5%

(1) 1Q10.

Community Banking 46

2010 Key Strategies

Organic growth

Deepen dealer relationships

Grow originations as auto industry rebounds

Distribution

Open additional regional business centers

Deepen relationships

Leverage account relationships as they expand and

deepen through cross-sell

Dealer Services –

opportunities

Community Banking 47

Home Equity is an important product for customers;

we want to meet the borrowing needs of qualified

consumers

Online

www.wellsfargo.com/equity

Wells Fargo

Home Mortgage

Consultants

Banking Stores

Customer

Contact

Centers

Home Equity Group –

provides functional expertise:

Strategy:

sales, product and

marketing

Portfolio and

risk management

Underwriting

and fulfillment

Pricing strategy

and finance

Loss mitigation

Legal and

compliance

Community Banking 48

Home

Equity

portfolio

credit

quality

(1)

Core

Portfolio

(2)

Delinquency rate decreased 14 bps,

reflecting improvement in large and

stressed residential markets such as

California and Florida

Delinquency for loans with a CLTV >100%

of 5.27% indicated that the vast majority of

customers with negative equity continued

making their payments

Liquidating Portfolio

Delinquency for loans with a CLTV>100% of

7.49% indicated that most customers, even

ones sourced through third party channels,

continued making their payments

($ in millions)

1Q10

4Q09

Core Portfolio

(2)

Outstandings

$117,434

115,398

Net charge-offs

$1,272

1,125

as % of avg

loans

4.34%

3.90%

2+ payments past due

$3,765

3,862

as % loans

3.21%

3.35%

% CLTV > 100%

(3)

34

36

%

1 

lien

position

18

17

Liquidating Portfolio

Outstandings

$8,019

8,429

Net charge-offs

$253

266

as % of avg

loans

12.43%

12.16%

2+ payments past due

$500

568

as % loans

6.24%

6.74%

% CLTV > 100%

(3)

68

69

% 1   lien position

3

3

Community Banking 49

(1)  Excludes purchased credit-impaired Wachovia loans. (2) Includes equity lines of credit and closed-end junior liens associated with the Pick-a-Pay portfolio

totaling $1.8 billion at March 31, 2010, and $1.8 billion at December 31, 2009. (3) CLTV quarter-end based predominantly on estimated home values from

automated valuation models updated through March 2010. Total loans include all open-to-buy and unused lines of credit.

st

st

Home Equity continues to work with

customers who are experiencing hardships

Helped approximately 232,000 customers since 2008 through short sales,

extensions, subordinations and our own modification programs

Implemented

1st

Lien

Home

Affordable

Modification

Program

(HAMP)

in

July 2009 and signed 2MP in March 2010

The 2MP program closely mirrors our approach to underwriting

modifications; it’s easier for customers and cost efficient for us

When a customer completes a first mortgage HAMP modification, they

are automatically approved for a 2nd lien modification

When we modify a home equity loan, we write it down as a “Troubled

Debt Restructuring”

(TDR)

Community Banking 50

We’re open for business –

our focus is on

meeting the needs of customers

(1) Legacy Wells Fargo only.

Profile of 2009 Originations

Community Banking 52

95% FICO 700+

73% combined loan-to-value <60%

Average 17 years in job

Average 12 years in home

Average

number

products

owned

with

Wells

Fargo

–

8.2/household

(1)

Customer

tenure

–50%

have

10+

years

with

Wells

Fargo

(1)

2010 Key Strategies

Responsible lending

and servicing

Work to keep customers in their homes when possible

Ensure quality originations

Manage risk of existing portfolio

Profitable growth

Leverage cross-sell opportunities

Properly price portfolio for risk

Retain existing customers

“Smarter Credit”

–

provide education on responsible use

of credit to consumers

Customer

Experience

Continue to improve customer experience by simplifying

processes and maintaining credit discipline

In Home Equity, we’re focused on helping our

customers every day

Community Banking 52

Eastern game plan

Laura Schulte

President

Community Banking Eastern Region

May 13, 2010

©

2010 Wells Fargo & Company. All rights reserved.

With great distribution and a talented team, the

Eastern markets are a big part of our company

East Performance

1Q10

Deposits

$205B

Retail Bank Household Cross-sell

4.9

Consumer Net Checking Gain

6.4%

East Distribution

1Q10

Number of Stores

2,818

Number of Team Members

28,900

Platform Banker FTE

9,370

Retail Bank Households

9.0 MM

•

Eastern stores

Community Banking 54

We’ve adopted the out-local the nationals model in

the East; 21 local regional presidents in place

Regional presidents, local leaders

Community leadership,

volunteerism, and contributions

Serving as local voice

Making decisions close to the

customers

Partner with other Wells Fargo

businesses in market

Regional P&L accountability

National distribution

Broad product line

Expertise:

-

Technology

-

Operations

-

Systems

Product group P&L accountability

Out-local

the nationals

Out-national

the locals

Community Banking 55

53%

63%

East Dec '08

East Mar '10

83%

84%

79%

East Dec '08

East Mar '10

Legacy Wells

Fargo Mar '10

9

year #1 in customer satisfaction among the largest

U.S. retail banks in the annual ACSI survey

(1)

2001-2008:  #1 Wachovia

2009:  #1 Wells Fargo (combined)

Our proud history of delivering a great customer

experience continues; improved since merger close

Eastern Community Banking

Customer loyalty

continues to improve

after the merger closed

Satisfaction with recent

visit also remains very

high post merger close

Adjusted based on estimated impact on actual historical performance resulting from changes in survey methodology (e.g. Scale) compared to 2010.

(1) ACSI: American Customer Satisfaction Index

Community Banking 56

th

Cross-sell

Sales capacity and systems

Small business product innovation

Channel innovation

Customer experience and service

Mass affluent customer strategy

Wells Fargo Dealer Services

Distribution in Eastern states

Our Eastern markets, most of Wachovia’s distribution,

have similar sales processes; it’s accelerating now

Wells Fargo

Wachovia

Cross-sell

Sales capacity and systems

Community Banking 57

Enhancing Wachovia’s sales model in the East; how

we’re better able to serve our customers’

financial needs

Daily sales

discipline

Per day solutions expectations in metrics and incentives

Daily inspection and coaching around activities and results

by leaders

Proactive/

reactive

contact

strategy

Daily appointment setting accountability

Conversion of lobby traffic via teller referrals

Lead and book of business contacts

Wachovia at Work to leverage worksite and student opportunities

Holistic

needs-based

selling

Needs assessment conducted with customer

Broad product set and partner referral disciplines

One Wells Fargo

“More people

selling”

Adding bankers to meet our customers’

needs

Teller referral expectations

Remodeling our stores to make room for more bankers

Aligned

to the

Wells Fargo

store model

Leadership model

Job family alignment

New incentive plans

Building out the team

Cultural integration

Operating processes

and systems

Opened

54

stores

(1)

(1) Total Wachovia since Dec-08.

Community Banking 58

“More people selling”

–

we’re growing the sales force;

more team members are satisfying customer needs

Teller contributions,

mainly through referrals

of customer needs, is up

More sales people

per store to serve

customer needs

We plan to add

platform bankers

in 2010

1Q10

2Q10

3Q10

4Q10

1Q09

1Q10

Teller contributions

per teller FTE per day

Projected platform banker

adds (cumulative)

1Q09

1Q10

Platform banker FTE

per store

Up +7%

Up 3X

Over 1,000

in 2010

Community Banking 59

1Q09

1Q10

4.6

4.8

4.9

6.0

Apr 09

East

Dec 09

East

Mar 10

East

Mar 10

Legacy

WF

“People selling more”

–

we’re not waiting for

conversion to earn more business from customers

Store productivity has grown nicely

as we’ve aligned to the Wells Fargo

sales and service model

Retail Banking

household

cross-sell

(1)

Cross-sell is already growing,

up almost 1/3 of a product per

household in 12 months

East solutions

per store per day

Up almost 2X

in one year

Up 1/3 product

per household

(1) Wachovia household cross-sell based on Wachovia products only; legacy Wells Fargo household cross-sell based on Wells Fargo products only.

Community Banking 60

We have opportunities to expand relationships with

current customers, particularly in the East

Retail Bank household

product penetration

(2)

Legacy

Wells Fargo

Eastern

Retail Checking

91%

88%

Debit

84%

71%

Retail Savings

71%

60%

Credit Card

35%

14%

Brokerage

5%

9%

Mortgage

14%

3%

Metric

(1)

Legacy

Wells Fargo

Eastern

Retail households

Households / Store

3,614

3,211

Household Cross-sell

6.0

4.9

Households / Platform FTE

635

965

Solutions/Productivity

Platform FTE / Store

5.7

3.3

Platform FTE

18,900

9,370

(1) 1Q10.

(2) For household product penetration, legacy Wells Fargo households include only Wells Fargo products and Eastern households include only Wachovia products.

We have opportunity with our partners to cross-sell retail products to their

Eastern customer bases.

Community Banking 61

We have an experienced and engaged team committed

to helping our customers succeed financially

Role

# of team

members

Average

tenure in

years

Regional Presidents

28

21

Community Banking

Presidents

60

17

Business Banking

Managers

123

17

Community Banking

District Managers

279

13

Store Managers

2,575

10

Business Bankers

630

8

Community Banking 62

Learning from Wachovia

and Integration Update

Lisa Stevens

Executive Vice President

Regional President California

May 13, 2010

©

2010 Wells Fargo & Company. All rights reserved.

It’s official! California conversion completed –

success declared

California Performance

2003

2009

With Wachovia

Deposits

$70 B

$114 B

$136 B

Retail bank household cross-sell

4.4

6.3

6.3

Platform FTE productivity

4.67

6.09

6.06

Consumer net checking gain

3.5%

8.8%

9.3%

Total solutions (sales)

4.5 MM

11.3 MM

11.9 MM

Small business solutions

0.4 MM

1.1 MM

1.1 MM

California is an important market,

with a long history of high performance

California Distribution

With Wachovia

Converting stores (Wachovia to Wells Fargo)

86 –

“instant De Novos”

Number of stores

1,043

(1)

Number of team members

20,500

Platform banker FTE

8,300

Retail bank households

4.6 MM

(1) Store count as of April 2010, post-conversion of California Wachovia stores.

Community Banking 64

Mass affluent customer strategy

Wells Fargo Dealer Services

Distribution in Eastern states

As we move forward, the customer experience

continues to be critical

Cross-sell

Sales capacity and systems

Small business product innovation

Channel innovation

Wells Fargo

Wachovia

Community Banking 65

Customer experience and service

We dramatically improved the store customer

experience over the last few years

2004

2009

Customer Loyalty

is up 39% from 2004

2004

2009

Teller Wait Time

Satisfaction is up 57%

from 2004

2004

2009

Overall Welcoming

Satisfaction is up 50%

from 2004

We conduct approximately 35,000 surveys each quarter in California

+7% CAGR

+8% CAGR

+10% CAGR

Community Banking 66

California data – legacy Wells Fargo only.

Our teams have history of focus on the customer

experience; Wachovia is making us even better

Service Signal

Strategy Worksheet

Statement of Commitment

UrgenCE

Observation and Coaching

Stage Coach and Director

Needs Assessment

Welcoming Protocols

High impact

sales and

service

activities

Adopted Wachovia

service questions:

Customer Experience

Key Driver Metrics

Community Banking 67

California

Legacy

Wells Fargo

Wachovia

Loyalty

58%

61%

Satisfaction with last visit

81%

84%

Customer Experience Key Driver Metric

74%

77%

Teller Satisfaction

75%

88%

Overall Wait Time Satisfaction

78%

85%

Opportunity exists to further improve customer

satisfaction scores at Wells Fargo

Data as of 1Q10.

Community Banking 68

We’re also focused on continuing to expand

household relationships as One Wells Fargo

4.9

6.0

6.4

7.1

7.9

14-16

Wachovia

Legacy Wells

Fargo

California

Top Region

Top District

Avg. U.S.

Financial

Services

Consumer

Retail Bank Household Cross-sell

Legacy Wells Fargo only (unless noted).

Community Banking 69

Our Community Banking

Model

Business

Overview

Competitive

Advantages

Growth

Opportunities

Community Banking

Our key competitive advantages and guiding principles

Our guiding principles

Excellence in execution

Disciplined decision making

Customer at the center of

everything we do

Develop people and leverage

talent

Protect and enhance our storied

brand

Effective resource allocation

Solid risk management

Our competitive advantages

Unparalleled coast-to-coast

distribution

Proven expertise in cross-sell

Excellence in service and

customer experience

People as a competitive

advantage

Community Banking 71

Biographies

Carrie L. Tolstedt

Senior Executive Vice President

Community Banking

Carrie Tolstedt is responsible for retail, small business and business banking at Wells

Fargo: over 119,000 team members, serving more than 20 million retail banking

households and over two million small business and business banking households,

through nearly 6,600 banking stores and more than 12,300 ATMs in

39 states and the

District of Columbia, Wells Fargo Phone BanksSM, and wellsfargo.com. Community

Banking serves four primary customer segments: mass market, upper mass affluent,

small business and business banking. Carrie also leads the Distribution Strategies and

Services Group, Sales, Service and Development, Internet Services Group, Enterprise

Marketing, and Diversified Products, which includes the Consumer

and Business Deposits

Product Groups, National Home Equity Group, Business Direct, Wells Fargo Dealer

Services, SBA Lending, Merchant Payment Services, and Business Payroll Services.

With over twenty years of financial services experience, Carrie began her career at

United Bank of Denver. In 1986, she joined Norwest Bank Nebraska. In May 1998, after

leaving to work for FirstMerit Corporation (May 1995-May 1998), she rejoined Norwest

Corporation.  In December 1998, Carrie became regional president

for Central California

for Wells Fargo & Company after the merger of Norwest Corporation and Wells Fargo. In

2001, she was named a Group EVP, responsible for Wells Fargo’s California Community

& Border Banking Group. In mid-2002, she became head of Regional Banking which

included the retail segment across Wells Fargo’s 23-state footprint, small business and

business banking.  In June 2007, Carrie was named to her current

role as Senior EVP

Community Banking.

She graduated from the University of Nebraska with a B.S. degree

in business

administration and completed the Pacific Coast Banking School, University of

Washington.

She serves on the Board of Directors of Junior Achievement of the Bay Area, Inc.

Community Banking 73

Michael R. James

Group Executive Vice President

Diversified Products Group

Mike James is Group Executive Vice President of Wells Fargo’s Diversified Products

Group.  The Diversified Products Group is made up of a group of businesses and

support functions including Wells Fargo Dealer Services, which provides business

banking services to auto dealers as well as auto loans and warranty services to

consumers; Business Banking Support Group which supports the business banking

organization in the Regional Bank, including Credit Administration; Business and

Consumer Deposit product management for the Regional Bank; Business Direct, the

largest small business lender in the United States, specializing

in loans less than

$100,000; the SBA Lending Group which provides government guaranteed loans to

small business owners; Merchant Payment Solutions; Wells Fargo Payroll Services; the

management of the Small Business Segment  for Wells Fargo’s Regional Banking

Group and Wells Fargo’s Home Equity Group.

James started his career at Wells Fargo in 1973 and worked in a variety of positions in

the

bank’s

San

Francisco

banking

stores.

In

1981,

he

was

promoted

to

Loan

Manager

in the Oakland Regional Commercial Banking Office. In 1985, James moved to the Palo

Alto Regional Commercial Banking Office as manager and was promoted to Senior Vice

President in 1988. In 1990, he became head of the Business Loan Division and in

1992, he was named an Executive Vice President. He was then named head of the

Business Banking Group in 1997 and promoted to Group Executive Vice President in

charge of the Diversified Products Group in 2000.

James graduated from the University of Utah with a bachelor’s degree in Finance. He

is a Senior Director of the YMCA of Silicon Valley and a Director of the Bay Area

Council Economic Institute. James is also past Chairman of the United Way of  San

Mateo County. He was a founder of the California Economic Development Lending

Initiative.

Community Banking 74

Laura A. Schulte

President

Community Banking Eastern Region

Laura A. Schulte manages Wells Fargo’s community banking activities in its Eastern

Region, which includes Alabama, Connecticut, Delaware, Florida, Georgia, Maryland,

Mississippi, New Jersey, New York, North Carolina, Pennsylvania,

South Carolina,

Tennessee, Virginia and Washington, D.C. and has 2,818 banking stores and 4,600 ATMs. 

Prior to assuming her current position in January 2009 when Wells Fargo’s merger with

Wachovia Bank was completed, she was President of Wells Fargo’s Western Region, which

includes California, Oregon, Washington, Idaho, and Alaska and had more than 1,300

banking stores.

During her 28-year career with Wells Fargo, she has held a variety of management

positions including audit, credit review and finance.   

In 1996, Schulte was given responsibility for all community banking activities in Northern

Nevada.  With the merger of Norwest/Wells Fargo in 1998, she assumed responsibility for

the statewide combined banking organization. In 2002, she was named regional president

of both the Nevada and Utah/Southwestern Wyoming banking regions

and later that year

was named regional president for community banking in California, Nevada and the

Mexican Border.

A native of Omaha, Nebraska, Schulte earned a bachelor’s degree in accounting from the

University of Nebraska at Lincoln, and graduated from the Stonier Graduate School of

Banking. 

Schulte is involved in various community and charitable organizations. She is the Chair for

Workplace Giving Task Force with the Foundation for the Carolinas, serves on the Board of

Charlotte Center City Partners and the University of North Carolina at Charlotte.  Schulte

is also a member of the Young Presidents Organization.  Previously, Schulte served on the

boards of Children’s Hospital –

Los Angeles, California Chamber and United Way of Greater

Los Angeles

Community Banking 75

Lisa Stevens

Executive Vice President

Regional President California

Lisa Stevens, a 20-year company veteran, is executive vice president and regional

president for California retail banking at Wells Fargo.

Appointed to her position in December 2008, she has responsibility for more than 1,040

banking stores, 3,233 ATMs and nearly 21,000 team members who serve consumers and

small businesses in the state.

A California native, Stevens began her career with Wells Fargo in 1989. Prior to assuming

her current position, she was Wells Fargo’s regional president for the San Francisco Bay

area and the Oregon and southwest Washington markets.

Stevens is active in the non-profit community and recently chaired Wells Fargo’s record-

setting California Community Support Campaign in 2009, which raised $13.5 million in

personal team member cash contributions to benefit local nonprofits. Statewide, Wells

Fargo donated $54.4 million to nonprofits in 2009. She also serves on the boards of

several organizations, including the California Chamber of Commerce, the San Francisco

Opera, Partnership for LA School Advisory Board and Childrens

Hospital Los Angeles.

In

2009,

Stevens

was

one

of

five

San

Francisco

Bay

Area

women

to

receive

the

League

of

Women

Voters

“Women

Who

Could

Be

President”

award

given

to

women

showing

exemplary leadership and service to the community. She was recognized for her

commitment to the community and for being an education advocate.

Stevens earned a bachelor’s degree in political science from Santa Clara University and

attended American University and the Pacific Coast Banking School.

Community Banking 76

Technology as a

Competitive Advantage

Avid Modjtabai

EVP, Head of Technology and Operations

May 13, 2010

©

2010 Wells Fargo Bank & Company, N.A. All rights reserved.

Technology and Operations 1

Our priorities

Integration

Serving Customers

Driving Efficiencies

Technology and Operations 2

Disciplined integration approach

Integration on Track:

Converted key overlapping markets –

CA, NV, AZ, IL, CO

Converted products and services

including Credit Card, Mortgage, SBA

portfolios

Consolidating on to best assets and

applications, while expanding

customer base, geographic reach, and

functionality:

–

3 tier 4 data centers (from 7)

–

10 regional data centers (from 13)

–

130 processing sites (from 212)

–

3,000 applications (from 4,000)

–

Carrier class network

Guiding Principles:

“Best of breed”

assets

and applications

Experienced, blended

team (50% WF, 50%

WB)

Do it right for

customers and team

members

Technology and Operations 3

Serving Customers

Technology enables our

business model...

Anytime, Anywhere

Service Excellence

Customized and Personalized

Real Time

Cross-Sell

One Wells Fargo

And, great customer experiences

Convenient to do business –

whenever, wherever

Full access to products in all

channels and geographies

One-stop shopping for all

financial needs

High touch, full relationship

servicing

“You know me”

personalized

services

Seamless integration across

products and channels

From days to minutes to seconds

1st to launch web-enabled ATMs

Led industry in adoption of

Envelope-free ATMs

1st to offer ATM eReceipts

InfoWorld’s Top 10 (for ATM

technology innovation)

1   to offer Internet Banking,

Integrated Online Brokerage

Awarded #1 Web Site for

Technology Innovation (2009)

Awarded Most Innovative Feature:

My Spending Report (2009)

Anytime, anywhere

Online

ATM

Envelope-free Deposits (MMs)

wellsfargo.com

Sessions (MMs)

st

Technology and Operations 5

1 

to

offer

consumer/small

business text and browser mobile

1 

to

launch

commercial

customer

mobile service

Launched WF iPhone

App, including

GPS-enabled ATM search

1   comprehensive

online

portal

for

commercial banking customers

1 

Desktop

Deposit

®

product

for

commercial/business customers

Awarded Most Innovative Product:

Foreign Exchange Online (2009)

Anytime, anywhere

Commercial Electronic Office

®

Mobile

90-day Active Users (MMs)

Active Users (000s)

2Q09

3Q09

4Q09

1Q10

2006

2007

2008

2009

st

st

st

st

Technology and Operations 6

Service excellence

Integrated portals for customer-facing

team members:

Full customer view across relationships

Real-time, cross-channel communication and alerts

Custom functionality and information, by region and

job function

Uniform scripting for consistency

Easy access to policy and procedure for all products

and services

Store Portal

iCEO

Client Link

Technology and Operations 7

Bundle of related products and features

centered on checking account

Relationship pricing

Single application

Cross-sell

Offers based on customers’

needs

Coordinated across all channels

“Intelligent”

offers learn from customers

Target Offers

Checking Packages

Technology and Operations 8

“MyATM

Shortcuts”

learns customer’s

top three ATM transactions

Remembers language preference

Remembers receipt type (e-mail and

check image receipts options)

Pre-fill customer information

Minimum clicks –

streamline account

applications for existing customers

Increased booking rates by over 30%

over long form applications

Customized and personalized

Envelope-free ATMs

Pre-filled applications

Technology and Operations 9

Fully integrated banking and brokerage experience

Servicing in all 8,000 retail and brokerage stores

Robust capabilities at 12,000+ ATMs and online

Aggregated spending report across all WF products

Automatically categorizes spending from all products

Budgetwatch

monitoring/alerts/reporting

One Wells Fargo

Command Account

Mobile Text banking enrollment at the ATM

Customer may update mobile number on the spot

No online banking enrollment required

Mobile Enrollment

My Spending Report

Technology and Operations 10

Real Time

Business customers use desktop scanner

to deposit checks from anywhere

Fully integrated with CEO portal and

business online banking

Faster funds availability

Desktop Deposit

Instant credit card transaction

SMS alerts

Customers select transaction types

Mobile numbers for notification

pre-populated from profile information

Rapid Alert

Technology and Operations 11

How our technology serves customers

Technology and Operations 12

Highly efficient infrastructure

Reduced 27k metric tons of carbon emissions through

2009 data center energy efficiency initiatives

2018 Goal: Reduce enterprise carbon footprint by 20%

Improve Energy

Management

“Right-tiering”

infrastructure (e.g. processing and storage)

Increased server and storage utilization

Optimize

Infrastructure

Just-in-time, lean server provisioning

Consolidated and rationalized transportation network

Streamline

Processes

Standard server configurations

Consolidated assets (LANs, storage, etc.)

Standardize

Offerings

Leading online statements offerings and penetration

Image enabled workflows (check image exchange,

distributed capture, document/image store and retrieval)

Paper to

Electronic

Technology and Operations 13

Benefits from scale

Technology Unit Costs

CAGR (2008-2010 YTD)

Operations Unit Costs

End-user computing

Mainframe

Distributed systems

Data networks

Storage

(4%)

(16%)

(21%)

(27%)

(28%)

Items processing

ATM operations

Cash vault

Wire transfers

Lockbox

Transportation

Retail deposits

(3%)

(4%)

(5%)

(7%)

(8%)

(9%)

(11%)

CAGR (2008-2010 YTD)

Technology and Operations 14

In summary

Integration on track

Executing where it counts for our customers

Continued efficiencies from infrastructure

investments and merger synergies

Technology and Operations 15

Biography

Technology and Operations 16

Avid Modjtabai

EVP and Head of Technology and Operations

Avid Modjtabai is Executive Vice President, Technology and Operations, for Wells

Fargo & Company. Since March 2007, she has led the Technology Information

Group as Chief Information Officer with responsibility for most of the core

technology activities of the Company including computing services, connectivity

services, application development, information security, business continuity

planning, enterprise business services and information management, enterprise

architecture, monitoring, change control and problem management. In January

2009, she was also appointed to lead the Company’s Operations Group, with

responsibility for check processing, statement processing, ATM operations, ACH

and wires, fraud disputes, cash vaults, lockbox, safe-deposit processing, armored

logistics, accounting support for retail stores and deposit document retention. A

17-year veteran of Wells Fargo, Modjtabai has served  in a number of leadership

roles, most recently as the Director of Human Resources. Prior to serving as

Director of Human Resources, Modjtabai was Executive Vice President and  head

of the Internet Services Group, where she helped Wells Fargo become the leading

provider of online financial services through managing Consumer, Investment and

Small Business Internet Services.

She was named as one of the “Most Powerful Women in Banking” and one of  the

“Top 25 Women to Watch” by U.S. Banker, one of the “100 Most Influential

Women in Bay Area Business” by the San Francisco Business Times and one of the

“The Innovators” by Bank Technology News. As an active member of the

community, she serves on the board of trustees for the Committee for Economic

Development and the Branson School. She received a B.S. in industrial

engineering from Stanford University and an MBA in finance from Columbia

University.