Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 82

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 82
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. For equity investments accounted for using the proportional amortization method, a liability is recognized in accrued expenses and liabilities on our consolidated balance sheet for unfunded commitments that are either legally binding or contingent but probable of funding. The liability recognized for these commitments at June 30, 2025, and December 31, 2024, was $5.8 billion and $6.4 billion, respectively. Substantially all of these commitments are expected to be funded within three years. See Note 14 (Guarantees and Other Commitments) for additional information about unrecognized commitments to purchase equity securities.Table 13.5 summarizes the impacts to our consolidated statement of income related to our affordable housing and renewable energy equity investments, which are accounted for using either the proportional amortization method or the equity method.Table 13.5:  Income Statement Impacts for Affordable Housing and Renewable Energy Tax Credit InvestmentsQuarter ended June 30,Six months ended June 30,(in millions)2025202420252024Income (loss) before income tax expense (1)(A)$18 (10)$26 (52)Income tax expense (benefit):Proportional amortization of investments897 934 1,605 1,864 Income tax credits and other income tax benefits(1,248)(1,157)(2,204)(2,345)Net expense (benefit) recognized within income tax expense(B)(351)(223)(599)(481)Net income related to affordable housing and renewable energy tax credit investments(A)-(B)$369 213 $625 429 (1)Includes pre-tax impacts from tax credit investments accounted for using the equity method and non-income tax-related returns from investments accounted for using the proportional amortization method.

110Wells Fargo & Company

Consolidated VIEsWe consolidate VIEs where we are the primary beneficiary. We are the primary beneficiary of the following structure types:COMMERCIAL AND INDUSTRIAL LOANS AND LEASES.  We previously securitized dealer floor plan loans in a revolving master trust entity. As servicer and holder of all beneficial interests, we control the key decisions of the trust and consolidate the VIE. In first quarter 2024, we removed the loans held by the master trust entity by transferring them to another subsidiary of Wells Fargo, which had no impact on our consolidated balance sheet. In a separate transaction structure, we may provide the majority of debt and equity financing to an SPE that engages