Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 119

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 3
Chunk 119
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 sale (LHFS).Table 3.3 shows the composition of interest income, provision for credit losses, and gross realized gains and lossesfrom sales and impairment write-downs included in earnings related to AFS and HTM debt securities (pre-tax).Table 3.3:  Income Statement Impacts for Available-for-Sale and Held-to-Maturity Debt SecuritiesQuarter ended June 30,Six months ended June 30,(in millions)2025202420252024Interest income (1):Available-for-sale$2,146 1,549 $4,088 2,915 Held-to-maturity1,309 1,678 2,688 3,433 Total interest income 3,455 3,227 6,776 6,348 Provision for credit losses:Available-for-sale(4)7 (5)16 Held-to-maturity2 — 10 3 Total provision for credit losses(2)7 5 19 Realized gains and losses (2):Gross realized gains13 — 15 23 Gross realized losses(13)— (129)(48)Impairment write-downs— — (33)— Net realized gains (losses)$— — $(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