Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 144

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 5
Chunk 144
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 segment and therefore do not require a FICO score.(2)Includes charge-offs on overdrafts, which are generally charged-off at 60 days past due. 

Wells Fargo & Company81

Note 5:  Loans and Related Allowance for Credit Losses (continued)

NONACCRUAL LOANS.  Table 5.13 provides loans on nonaccrual status. Nonaccrual loans may have an ACL or a negative allowance for credit losses from expected recoveries of amounts previously written off.Table 5.13:  Nonaccrual LoansOutstanding balanceRecognized interest incomeNonaccrual loansNonaccrual loans without related allowance for credit losses (1)Six months ended June 30,(in millions)Jun 30,2025Dec 31,2024Jun 30,2025Dec 31,202420252024Commercial and industrial$925 763 71 2 12 11 Commercial real estate3,556 3,771 92 41 37 9 Lease financing82 84 16 17 — — Total commercial 4,563 4,618 179 60 49 20 Residential mortgage3,090 2,991 1,898 1,887 84 91 Auto76 89 — — 6 7 Other consumer28 32 — — 2 2 Total consumer 3,194 3,112 1,898 1,887 92 100 Total nonaccrual loans$7,757 7,730 2,077 1,947 141 120 (1)Nonaccrual loans may not have an allowance for credit losses if the loss expectations are zero given the related collateral value.

LOANS IN PROCESS OF FORECLOSURE.  Our recorded investment in consumer mortgage loans collateralized by residential real estate property that are in process of foreclosure was $705 million at both June 30, 2025, and December 31, 2024, which included $556 million and $540 million, respectively, of loans that are government insured/guaranteed. Under the Consumer Financial Protection Bureau guidelines, we do not commence the foreclosure process on residential mortgage loans until after the loan is 120 days delinquent. Foreclosure procedures and timelines vary depending on whether the property address resides in a judicial or non-judicial state. Judicial states require the foreclosure to