Company: WFC-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000072971-25-000253
Chunk: 188

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 12
Chunk 188
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.0 -50.0 50.0 Equity contracts(758)Discounted cash flowConversion factor(1.4)-0.0 (0.7)Weighted average life1.0-4.0 yrs 2.0(409)Option modelCorrelation factor(70.0)-98.9 %65.3 Volatility factor6.5 -138.0 41.1 (1)The high end of the range of inputs is for servicing modified loans. For non-modified loans, the range is $61 - $111 at September 30, 2025, and $60 - $162 at December 31, 2024.(2)Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.

For additional information on the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 assets and liabilities, including how changes in these inputs affect fair value estimates, see Note 15 (Fair Value Measurements) in our 2024 Form 10-K.

Wells Fargo & Company101

Note 12:  Fair Value Measurements (continued)

Assets and Liabilities Recorded at Fair Value on a Nonrecurring BasisWe may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from write-downs of individual assets or the application of an accounting method such as LOCOM and the measurement alternative.Table 12.4 provides the fair value hierarchy and fair value at the date of the nonrecurring fair value adjustment for all assets that were still held as of September 30, 2025, and December 31, 2024, and for which a nonrecurring fair value adjustment was recorded during the nine months ended September 30, 2025, and the year ended December 31, 2024.Table 12.4:  Fair Value on a Nonrecurring BasisSeptember 30, 2025December 31, 2024(in millions)Level 2 Level 3 Total Level 2 Level 3 Total Loans held for sale (1)$1,067 186 1,253 841 287 1,128 Loans:Commercial851 — 851 1,376 — 1,376