Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 174

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 11
Chunk 174
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 30, 2025, and December 31, 2024, respectively, related to certain AFS debt securities designated as the hedged item in a fair value hedge using the portfolio layer method.(6)Other assets consists of hedged physical commodity inventory.Derivatives Not Designated as Hedging InstrumentsDerivatives not designated as hedging instruments include economic hedges and derivatives entered into for customer accommodation trading purposes.Economic hedge derivatives do not qualify for, or we have elected not to apply, hedge accounting. We use economic hedge derivatives to manage our non-trading exposures to interest rate risk, equity price risk, foreign currency risk, and credit risk. For additional information on other derivatives, see Note 14 (Derivatives) in our 2024 Form 10-K.Table 11.6 shows the net gains (losses) related to economic hedge derivatives. Gains (losses) on customer accommodation trading derivatives are excluded from Table 11.6. For additional information, see Note 2 (Trading Activities).Table 11.6:  Gains (Losses) on Economic Hedge Derivatives Quarter ended June 30,Six months ended June 30,(in millions)2025202420252024Interest rate contracts (1)$22 (132)$245 (429)Equity contracts (2)280 79 48 126 Foreign exchange contracts (3)(461)16 (745)168 Credit contracts (4)(38)— (43)8 Net gains (losses) recognized related to economic hedge derivatives$(197)(37)$(495)(127)(1)Derivative gains and (losses) related to mortgage banking activities were recorded in mortgage banking noninterest income. These activities include hedges of residential MSRs, residential mortgage LHFS, derivative loan commitments, and other interests held. For additional information on our mortgage banking interest rate contracts, see Note 6 (Mortgage Banking Activities). Other derivative gains and (losses) not related to mortgage banking were recorded in other noninterest income.(2)Includes derivative gains and (losses) used to economically hedge the deferred compensation plan liabilities, which were recorded in personnel noninterest expense, and derivative instruments related to our previous sales of shares of Visa Inc. Class B common stock, which were recorded in other noninterest income.(3)Includes derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and (losses) were recorded in net gains