Company: WFC-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000072971-25-000129
Chunk: 5

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 1
Chunk 5
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 layer method hedges of AFS debt securities, which are not allocated to individual securities in the portfolio. For additional information, see Note 11 (Derivatives).

Wells Fargo & Company61

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

Table 3.2 details the breakout of purchases of HTM debt securities by major category of security. There were no transfers to HTM debt securities during the periods presented below.Table 3.2:  Held-to-Maturity Debt Securities PurchasesQuarter ended March 31,(in millions)20252024Purchases of held-to-maturity debt securities (1):Non-agency mortgage-backed securities$86 — Total purchases of held-to-maturity debt securities$86 — (1)Inclusive of non-cash purchases from securitization of loans held for 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 March 31,(in millions)20252024Interest income (1):Available-for-sale$1,942 1,366 Held-to-maturity1,379 1,755 Total interest income 3,321 3,121 Provision for credit losses:Available-for-sale(1)9 Held-to-maturity8 3 Total provision for credit losses7 12 Realized gains and losses (2):Gross realized gains2 23 Gross realized losses(116)(48)Impairment write-downs(33)— Net realized losses$(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.

62Wells Fargo & Company

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