Using the limited information provided, evaluate Wells Fargos credit, liquidity, and capital risk.

List three areas that management should focus on to improve performance.

Summary Ratios from Well Fargo's 2008-2012 UBPR FDIC Certificate # 3531 OCC Charter # 1 Public Report Summary Ratios WELLS FARGO BANK, NA ; SIOUX FALLS, SD Summary Ratios-Page 1 County: MINNEHAHA 12/31/2013 12/31/2012 12/31/2011 12/31/2010 12/31/2009 BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT 46 28 59 75 4.34 0.57 3.77 1.82 3.27 Earnings and Profitability Percent of Average Assets: Interest Income (TE) - Interest Expense Net Interest Income (TE) + Noninterest Income - Noninterest Expense - Provision: Loan & Lease Losses Pretax Operating Income (TE) + Realized Gains/Losses Sec Pretax Net Operating Income (TE) Net Operating Income Adjusted Net Operating Income Net Inc Attrib to Min Ints Net Income Adjusted Sub S Net Income 3.41 0.24 3.17 1.87 3.12 0.22 1.70 0.03 1.73 1.24 1.09 0.04 1.19 1.19 3.61 36 3.78 0.36 31 0.28 3.22 46 3.50 1.05 84 1.63 2.72 72 3.47 0.14 72 0.34 1.43 69 1.31 0.02 75 0.03 1.45 67 1.35 1.02 75 0.94 0.97 65 0.84 0.00 97 0.01 1.00 690.94 1.01 690.94 3.82 0.46 3.33 1.13 2.75 0.32 1.42 0.04 1.47 1.03 0.96 0.00 1.02 1.03 3.98 0.42 3.56 1.79 3.39 0.43 1.53 0.04 1.57 1.10 0.89 0.01 1.09 1.09 4.02 43 0.62 26 3.36 63 1.10 81 2.78 81 0.47 53 1.22 62 0.05 57 1.26 63 0.87 65 0.71 58 0.00 92 0.85 65 0.87 64 4.14 55 0.85 30 3.25 75 1.24 75 2.80 75 1.03 58 0.75 63 0.04 64 0.80 64 0.50 67 0.43 57 0.00 88 0.49 67 0.49 67 4.47 4.36 51 0.94 1.29 30 3.53 3.02 74 1.97 1.38 78 3.20 2.83 70 1.46 1.72 50 0.83 -0.09 57 -0.01 0.02 23 0.82 -0.13 59 0.56 -0.21 59 1.03 0.21 70 0.00 0.00 2 0.57 -0.24 60 0.57 -0.24 60 1.31 0.04 1.34 0.94 0.82 0.01 0.94 0.94 42 46 42 92 46 46 88.94 92.04 25 77.64 77.39 41 3.84 3.93 40 0.27 0.39 34 3.56 3.50 53 87.21 91.88 77.08 77.80 4.33 4.16 0.32 0.50 4.01 3.63 12 36 56 30 73 87.39 91.51 18 76.88 78.59 36 4.55 4.40 53 0.48 0.68 30 4.07 3.67 69 88.00 78.37 4.93 0.65 4.28 91.53 21 80.27 35 4.54 64 0.94 32 3.57 81 87.53 92.28 12 79.40 81.24 35 5.10 4.75 64 1.07 1.40 32 4.03 3.29 82 Margin Analysis: Avg Earning Assets to Avg Assets Avg Int-Bearing Funds to Avg Assets Int Inc (TE) to Avg Earn Assets Int Expense to Avg Earn Assets Net Int Inc-TE to Avg Earn Assets Loan & Lease Analysis: Net Loss to Average Total LN&LS Earnings Coverage of Net Losses (X) LN&LS Allowance to LN&LS Not HFS LN&LS Allowance to Net Losses (X) LN&LS Allowance to Total LN&LS Total LN&LS-90+ Days Past Due -Nonaccrual -Total 0.56 0.30 5.09 16.75 1.84 1.44 3.35 8.83 1.82 1.43 1.27 0.29 1.80 1.05 3.06 1.46 84 27 77 33 77 87 82 88 0.72 3.55 2.17 3.13 2.13 2.07 1.78 3.85 0.61 67 10.28 38 1.73 74 5.00 46 1.68 0.47 87 1.54 65 2.22 1.06 3.00 2.73 2.65 2.68 2.65 2.30 4.95 0.93 59 5.58 49 1.99 78 2.91 61 1.91 78 0.62 88 2.21 66 3.16 78 1.87 2.01 3.24 1.66 3.17 2.90 3.05 5.95 1.66 64 3.26 48 2.36 78 1.87 57 2.30 78 0.54 89 2.99 61 3.85 79 1.68 2.28 3.21 1.87 3.16 3.52 3.35 6.87 1.86 56 3.30 58 2.53 73 1.86 65 2.46 75 0.35 96 3.77 54 4.33 80 83 9.53 12.89 62.79 63.36 40 10.60 11.89 41 62.94 60.79 49 47 11.60 15.09 48 59.92 60.33 41 12.96 17.28 58.17 60.59 47 36 19.02 30.36 27 59.61 62.96 34 Liquidity Net Non Core Fund Dep New $250M Net Loans & Leases to Assets Capitalization Tier One Leverage Capital Cash Dividends to Net Income Retained Earnings to Avg Total Equity Rest+Nonac+RE Acq to Eqcap+ALLL 9.78 9.86 81.47 42.97 1.79 4.25 13.45 11.48 52 79 27 65 10.08 9.76 59 90.21 45.69 78 0.74 3.71 25 13.73 14.8152 10.05 9.59 62 83.44 29.78 86 1.46 3.85 24 15.65 19.77 45 10.04 68.04 2.52 16.97 9.17 72 20.54 85 1.36 40 23.46 41 9.31 8.68 71 67.12 20.54 82 1.77 -5.37 60 22.35 27.04 50 Growth Rates Total Assets 5.08 5.90 62 12.05 7.79 73 2.60 7.93 42 -1.41 2.91 38 Tier One Capital 1.34 7.83 16 11.03 7.43 74 3.29 11.07 25 0.94 9.83 21 Net Loans & Leases 4.82 9.47 44 17.70 9.19 79 5.69 8.55 58 -3.79 0.94 43 Short Term Investments 142.96 4.88 91 63.85 23.33 77 -32.80 24.16 27 -18.52 63.67 34 Short Term Non Core Funding -11.00 10.67 25 14.96 -2.27 72 -6.49 -23.66 71 -8.43 -13.32 62 Average Total Assets 293,964,224 284,903,864 256,540,904 256,207,798 Total Equity Capital 36,502,602 36,267,544 31,636,420 30,575,352 Net Income 3,505,355 2,666,967 2,793,185 2,396,696 Number of banks in Peer Group 199 179 173 Source: Wells Fargo, Uniform Bank Performance Report, https://cdr.ffiec.gov/public/ManageFacsimiles.aspx?ReportType=283. 84.91 4.26 96 193.74 9.56 98 107.96 -1.28 98 -16.80 236.29 29 6.42-14.02 77 271,327,621 28,508,620 1,535,763 180 188 Summary Ratios from Well Fargo's 2008-2012 UBPR FDIC Certificate # 3531 OCC Charter # 1 Public Report Summary Ratios WELLS FARGO BANK, NA ; SIOUX FALLS, SD Summary Ratios-Page 1 County: MINNEHAHA 12/31/2013 12/31/2012 12/31/2011 12/31/2010 12/31/2009 BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT 46 28 59 75 4.34 0.57 3.77 1.82 3.27 Earnings and Profitability Percent of Average Assets: Interest Income (TE) - Interest Expense Net Interest Income (TE) + Noninterest Income - Noninterest Expense - Provision: Loan & Lease Losses Pretax Operating Income (TE) + Realized Gains/Losses Sec Pretax Net Operating Income (TE) Net Operating Income Adjusted Net Operating Income Net Inc Attrib to Min Ints Net Income Adjusted Sub S Net Income 3.41 0.24 3.17 1.87 3.12 0.22 1.70 0.03 1.73 1.24 1.09 0.04 1.19 1.19 3.61 36 3.78 0.36 31 0.28 3.22 46 3.50 1.05 84 1.63 2.72 72 3.47 0.14 72 0.34 1.43 69 1.31 0.02 75 0.03 1.45 67 1.35 1.02 75 0.94 0.97 65 0.84 0.00 97 0.01 1.00 690.94 1.01 690.94 3.82 0.46 3.33 1.13 2.75 0.32 1.42 0.04 1.47 1.03 0.96 0.00 1.02 1.03 3.98 0.42 3.56 1.79 3.39 0.43 1.53 0.04 1.57 1.10 0.89 0.01 1.09 1.09 4.02 43 0.62 26 3.36 63 1.10 81 2.78 81 0.47 53 1.22 62 0.05 57 1.26 63 0.87 65 0.71 58 0.00 92 0.85 65 0.87 64 4.14 55 0.85 30 3.25 75 1.24 75 2.80 75 1.03 58 0.75 63 0.04 64 0.80 64 0.50 67 0.43 57 0.00 88 0.49 67 0.49 67 4.47 4.36 51 0.94 1.29 30 3.53 3.02 74 1.97 1.38 78 3.20 2.83 70 1.46 1.72 50 0.83 -0.09 57 -0.01 0.02 23 0.82 -0.13 59 0.56 -0.21 59 1.03 0.21 70 0.00 0.00 2 0.57 -0.24 60 0.57 -0.24 60 1.31 0.04 1.34 0.94 0.82 0.01 0.94 0.94 42 46 42 92 46 46 88.94 92.04 25 77.64 77.39 41 3.84 3.93 40 0.27 0.39 34 3.56 3.50 53 87.21 91.88 77.08 77.80 4.33 4.16 0.32 0.50 4.01 3.63 12 36 56 30 73 87.39 91.51 18 76.88 78.59 36 4.55 4.40 53 0.48 0.68 30 4.07 3.67 69 88.00 78.37 4.93 0.65 4.28 91.53 21 80.27 35 4.54 64 0.94 32 3.57 81 87.53 92.28 12 79.40 81.24 35 5.10 4.75 64 1.07 1.40 32 4.03 3.29 82 Margin Analysis: Avg Earning Assets to Avg Assets Avg Int-Bearing Funds to Avg Assets Int Inc (TE) to Avg Earn Assets Int Expense to Avg Earn Assets Net Int Inc-TE to Avg Earn Assets Loan & Lease Analysis: Net Loss to Average Total LN&LS Earnings Coverage of Net Losses (X) LN&LS Allowance to LN&LS Not HFS LN&LS Allowance to Net Losses (X) LN&LS Allowance to Total LN&LS Total LN&LS-90+ Days Past Due -Nonaccrual -Total 0.56 0.30 5.09 16.75 1.84 1.44 3.35 8.83 1.82 1.43 1.27 0.29 1.80 1.05 3.06 1.46 84 27 77 33 77 87 82 88 0.72 3.55 2.17 3.13 2.13 2.07 1.78 3.85 0.61 67 10.28 38 1.73 74 5.00 46 1.68 0.47 87 1.54 65 2.22 1.06 3.00 2.73 2.65 2.68 2.65 2.30 4.95 0.93 59 5.58 49 1.99 78 2.91 61 1.91 78 0.62 88 2.21 66 3.16 78 1.87 2.01 3.24 1.66 3.17 2.90 3.05 5.95 1.66 64 3.26 48 2.36 78 1.87 57 2.30 78 0.54 89 2.99 61 3.85 79 1.68 2.28 3.21 1.87 3.16 3.52 3.35 6.87 1.86 56 3.30 58 2.53 73 1.86 65 2.46 75 0.35 96 3.77 54 4.33 80 83 9.53 12.89 62.79 63.36 40 10.60 11.89 41 62.94 60.79 49 47 11.60 15.09 48 59.92 60.33 41 12.96 17.28 58.17 60.59 47 36 19.02 30.36 27 59.61 62.96 34 Liquidity Net Non Core Fund Dep New $250M Net Loans & Leases to Assets Capitalization Tier One Leverage Capital Cash Dividends to Net Income Retained Earnings to Avg Total Equity Rest+Nonac+RE Acq to Eqcap+ALLL 9.78 9.86 81.47 42.97 1.79 4.25 13.45 11.48 52 79 27 65 10.08 9.76 59 90.21 45.69 78 0.74 3.71 25 13.73 14.8152 10.05 9.59 62 83.44 29.78 86 1.46 3.85 24 15.65 19.77 45 10.04 68.04 2.52 16.97 9.17 72 20.54 85 1.36 40 23.46 41 9.31 8.68 71 67.12 20.54 82 1.77 -5.37 60 22.35 27.04 50 Growth Rates Total Assets 5.08 5.90 62 12.05 7.79 73 2.60 7.93 42 -1.41 2.91 38 Tier One Capital 1.34 7.83 16 11.03 7.43 74 3.29 11.07 25 0.94 9.83 21 Net Loans & Leases 4.82 9.47 44 17.70 9.19 79 5.69 8.55 58 -3.79 0.94 43 Short Term Investments 142.96 4.88 91 63.85 23.33 77 -32.80 24.16 27 -18.52 63.67 34 Short Term Non Core Funding -11.00 10.67 25 14.96 -2.27 72 -6.49 -23.66 71 -8.43 -13.32 62 Average Total Assets 293,964,224 284,903,864 256,540,904 256,207,798 Total Equity Capital 36,502,602 36,267,544 31,636,420 30,575,352 Net Income 3,505,355 2,666,967 2,793,185 2,396,696 Number of banks in Peer Group 199 179 173 Source: Wells Fargo, Uniform Bank Performance Report, https://cdr.ffiec.gov/public/ManageFacsimiles.aspx?ReportType=283. 84.91 4.26 96 193.74 9.56 98 107.96 -1.28 98 -16.80 236.29 29 6.42-14.02 77 271,327,621 28,508,620 1,535,763 180 188