Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 6

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 6
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 Net realized gains (losses)$— — $(147)(25)(1)Excludes interest income from trading debt securities, which is disclosed in Note 2 (Trading Activities).(2)Realized gains and losses relate to AFS debt securities. There were no realized gains or losses from HTM debt securities in all periods presented.

Wells Fargo & Company65

Note 3:  Available-for-Sale and Held-to-Maturity Debt Securities (continued)

Credit QualityWe monitor credit quality of debt securities by evaluating various attributes and utilize such information in our evaluation of the appropriateness of the ACL for debt securities. The credit quality indicators that we most closely monitor include credit ratings and delinquency status and are based on information as of our financial statement date.CREDIT RATINGS.  Credit ratings express opinions about the credit quality of a debt security. We determine the credit rating of a security according to the lowest credit rating made available by national recognized statistical rating organizations (NRSROs). Debt securities rated investment grade, that is those with ratings similar to BBB-/Baa3 or above, as defined by NRSROs, are generally considered by the rating agencies and market participants to be low credit risk. Conversely, debt securities rated below investment grade, labeled as “speculative grade” by the rating agencies, are considered to be distinctively higher credit risk than investment grade debt securities. For debt securities not rated by NRSROs, we determine an internal credit grade of the debt securities (used for credit risk management purposes) equivalent to the credit ratings assigned by major credit agencies. Substantially all of our debt securities were rated by NRSROs at June 30, 2025, and December 31, 2024.Table 3.4 shows the percentage of fair value of AFS debt securities and amortized cost of HTM debt securities determined to be rated investment grade, inclusive of securities rated based on internal credit grades.Table 3.4:  Investment Grade Debt SecuritiesAvailable-for-SaleHeld-to-Maturity($ in millions)Fair value % investment gradeAmortized cost% investment gradeJune 30, 2025Total portfolio (1)$184,869 99%$221,599 99%Breakdown by category:Securities of U.S. Treasury and federal agencies (2)$168,464 100%$190,495 100%Securities of U.S. states and political subdivisions10,865 99 18,038 100