Company: WFC-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000072971-25-000253
Chunk: 136

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 5
Chunk 136
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 of our financial statement date.COMMERCIAL CREDIT QUALITY INDICATORS.  We manage a consistent process for assessing commercial loan credit quality. Commercial loans are generally subject to individual risk assessment using our internal borrower and collateral quality ratings, which is our primary credit quality indicator. Our ratings are aligned to regulatory definitions of pass and criticized categories with the criticized segmented among special mention, substandard, doubtful, and loss categories.Table 5.7 provides the outstanding balances of our commercial loan portfolio by risk category and credit quality information by origination year for term loans. Revolving loans may convert to term loans as a result of a contractual provision in the original loan agreement or if modified for a borrower experiencing financial difficulty. At September 30, 2025, we had $531.8 billion and $31.7 billion of pass and criticized commercial loans, respectively. Gross charge-offs by loan class are included in the following table for the nine months ended September 30, 2025, and year ended December 31, 2024.

74Wells Fargo & Company

Table 5.7:  Commercial Loan Categories by Risk Categories and VintageTerm loans by origination yearRevolving loansRevolving loans converted to term loansTotal(in millions)20252024202320222021PriorSeptember 30, 2025Commercial and industrialPass$58,923 29,157 15,337 15,742 8,410 13,517 262,246 26 403,358 Criticized1,263 629 917 954 361 539 9,883 — 14,546 Total commercial and industrial60,186 29,786 16,254 16,696 8,771 14,056 272,129 26 417,904 Gross charge-offs (1)29 47 31 21 4 6 378 — 516 Commercial real estatePass27,011 13,388 9,385 18,581 15,369 24,042 6,543 55 114,374 Criticized2,828 2,065 1,016 3,678 3,516 2,689 84 — 15,876 Total commercial real estate29,839 15,453 10,401 22,259 18,885 26,731 6,627 55 130,250 G