Company: WFC-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000072971-25-000129
Chunk: 169

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 12
Chunk 169
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 ended March 31,(in millions)20252024Loans held for sale$12 (7)Loans:Commercial(143)(226)Consumer(120)(175)Total loans(263)(401)Equity securities (1)(177)(71)Other assets (2)1,348 83 Total$920 (396)(1)Includes impairment of equity securities and observable price changes related to equity securities accounted for under the measurement alternative.(2)Includes impairment of operating lease ROU assets, valuation of physical commodities inventory, and valuation losses on foreclosed real estate, and other collateral owned.Table 12.6 provides quantitative information about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 assets that are measured at fair value on a nonrecurring basis. Weighted averages of inputs for equity securities are calculated using carrying value prior to the nonrecurring fair value measurement.Table 12.6:  Valuation Techniques – Nonrecurring Basis ($ in millions)Fair ValueLevel 3ValuationTechnique (1)SignificantUnobservable Input (1)Range of InputsPositive (Negative)WeightedAverageMarch 31, 2025Equity securities$122 Market comparable pricingComparability adjustment(100.0)-(7.0)%(44.4)1,120 Market comparable pricingMultiples0.9x-27.5x9.8xDecember 31, 2024Equity securities1,309 Market comparable pricingComparability adjustment(100.0)-2.3 %(36.1)1,261 Market comparable pricingMultiples0.9x-8.9x2.9x(1)See Note 15 (Fair Value Measurements) in our 2024 Form 10-K for additional information on the valuation technique(s) and significant unobservable inputs used in the valuation of Level 3 assets.

100Wells Fargo & Company

Fair Value OptionThe fair value option is an irrevocable election, generally only permitted upon initial recognition of financial assets or liabilities, to measure eligible financial instruments at fair value with changes in fair value reflected in earnings. We may elect the fair value option to align the measurement model with how the financial assets or liabilities are managed or to reduce complexity or accounting asymmetry. Following is a discussion of the portfolios for which we elected the fair value option. For additional information, including the basis for our fair value option elections, see Note 15 (Fair Value Measurements) in