Wells Fargo reported Friday they had higher Q1 earnings on strong mortgage banking results and a reduction of bad loan reserves - much like JPMorgan Chase.  For the nation's 4th-largest U.S. bank, Wells Fargo had net income of $4.3 billion, or 75¢ a share, vs. $3.8 billion, or 67¢ a share one year ago.  However, that was below analyst expectations of 73¢ a share. The bank, which had higher than expected expenses in Q4 of 2011, - in part because of higher personnel costs and higher legal reserves - is looking to lower expenses that would be in line with the bank's new efficiency program called 'Project Compass'. Earlier Quarterly Announcement. Wells Fargo this year opted to report earnings a few days earlier than in the past, in order to kick off the bank earnings season alongside its top rival, JPMorgan Chase.  JPMorgan won the contest today, reported better than expected earnings.  It will be interesting to see how they fare in this "4-game series" where there can be a tie. CEO John Stumpf said in a statement, "Wells Fargo delivered outstanding first quarter results driven by strong revenue growth.  Our continued performance for shareholders through a variety of economic environments is a testament to our diversified business model." [CNBC, 4/13/12]