Wells Fargo to Pay $371.5 Million Dividend to U.S. Treasury Wells Fargo: Half a trillion dollars in new lending last 18 months; 4Q08 lending nearly three times Treasury’s investment

Wells Fargo to Pay $371.5 Million Dividend to U.S. Treasury
Wells Fargo: Half a trillion dollars in new lending last 18 months; 4Q08 lending nearly three times Treasury’s investment

Wells Fargo & Company (NYSE: WFC) today announced a total quarterly dividend of $371.5 million payable to the U.S. Treasury on its 25,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series D purchased from the Company as part of the department’s Capital Purchase Program (CPP). The dividend of $14,861.11 per share is payable February 15, 2009. The U.S. Treasury is the only holder of record of the Series D preferred stock.

“Since credit began contracting 18 months ago, Wells Fargo has made almost half a trillion dollars in new loan commitments and mortgage originations,” said Chief Financial Officer Howard Atkins. “Last quarter alone, we made $22 billion in loan commitments and $50 billion in mortgage originations. That’s more than $70 billion or almost three times the amount of the U.S. Treasury’s investment in Wells Fargo. We believe we’re leading our industry in lending to creditworthy customers during this difficult economy.”

Lending Highlights

* Average earning assets, primarily loans and securities, up $119 billion, or 28 percent, since the start of the credit crisis in mid-2007
* New loan commitments to consumer and commercial customers of $187 billion since mid-2007
* Residential real estate originations of $354 billion since mid-2007
* New loan commitments of $22 billion in fourth quarter
* Average loans in fourth quarter up $9.7 billion, or 10 percent (annualized), linked quarter
* Residential real estate originations of $50 billion in fourth quarter

Wells Fargo Home Mortgage is the nation’s second largest mortgage servicer, a leader in developing programs to protect homeowners, helping them modify their mortgages and avoid foreclosure. Through repayment plans and other modifications, Wells Fargo provided 498,000 solutions to customers in 2008, including 143,000 last quarter. Wells Fargo is aggressively using streamlined approaches and customized solutions to avoid preventable foreclosures for Wachovia mortgage customers, primarily those whose loans are delinquent or are likely to become delinquent. 478,000 Wachovia customers – including those with Wachovia Pick-a-Payment loans – will have access to the program if they need it.

Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 11,000 stores, over 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. has the highest credit rating currently given to U.S. banks by Moody’s Investors Service, “Aa1,” and Standard & Poor’s Ratings Services, “AA+.”

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