Company: WFC-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000072971-25-000129
Chunk: 183

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 13
Chunk 183
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 for these commitments at March 31, 2025, and December 31, 2024, was $5.8 billion and $6.4 billion, respectively. Substantially all of these commitments are expected to be funded within three years. See Note 14 (Guarantees and Other Commitments) for additional information about unrecognized commitments to purchase equity securities.Table 13.5 summarizes the impacts to our consolidated statement of income related to our affordable housing and renewable energy equity investments, which are accounted for using either the proportional amortization method or the equity method.Table 13.5:  Income Statement Impacts for Affordable Housing and Renewable Energy Tax Credit InvestmentsQuarter ended March 31,(in millions)20252024Income (loss) before income tax expense (1)(A)$8 (42)Income tax expense (benefit):Proportional amortization of investments708 930 Income tax credits and other income tax benefits(956)(1,188)Net expense (benefit) recognized within income tax expense(B)(248)(258)Net income related to affordable housing and renewable energy tax credit investments(A)-(B)$256 216 (1)Includes pre-tax impacts from tax credit investments accounted for using the equity method and non-income tax-related returns from investments accounted for using the proportional amortization method.

Wells Fargo & Company107

Note 13:  Securitizations and Variable Interest Entities (continued)

Consolidated VIEsWe consolidate VIEs where we are the primary beneficiary. We are the primary beneficiary of the following structure types:COMMERCIAL AND INDUSTRIAL LOANS AND LEASES.  We previously securitized dealer floor plan loans in a revolving master trust entity. As servicer and holder of all beneficial interests, we control the key decisions of the trust and consolidate the VIE. In first quarter 2024, we removed the loans held by the master trust entity by transferring them to another subsidiary of Wells Fargo, which had no impact on our consolidated balance sheet. In a separate transaction structure, we may provide the majority of debt and equity financing to an SPE that engages in lending and leasing to specific vendors and we service the underlying collateral.CREDIT CARD SECURITIZATIONS.  Beginning in first quarter 2024, we securitized a portion of our credit card loans to provide a source of funding. Credit card securitizations involve the transfer of credit card loans to a master trust that issues debt securities to third