Wells Fargo & Co. reported record profits this morning as it released its first-quarter results, beating its expectations that were released earlier in the month.

The San Francisco-based bank, which combined with Wachovia Corp. earlier in the year, recorded a net income of $3.05 billion, with $2.38 billion applicable toward its common stock, compared with $2 billion a year earlier.

Revenues totaled $21.02 billion, increasing 16 percent from a year ago and exceeding the $19.91 billion the company had forecast. Wachovia accounted for 41 percent of the company’s combined revenues.

“The best way to generate capital is to earn it,” said Wells Fargo President and CEO John Stumpf. “This has long been the hallmark of our company and we’re now seeing the initial signs of the earnings and capital-generating power of the combined Wells Fargo-Wachovia in our first quarter together.”

The company’s per-share earnings decreased to 56 cents from 60 cents due to an increase in outstanding shares and merger-related and restructuring expenses. Wells Fargo said it has already written down many of Wachovia’s bad assets and “as long as there is no additional deterioration, future losses have been eliminated” on that portfolio, Chief Financial Officer Howard Atkins said.

Shares of Wells Fargo were trading at $20 per share at 11:05 a.m. Iowa time, up 6.33 percent.