Company: WFC-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000072971-25-000253
Chunk: 83

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 83
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 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 September 30,Nine months ended September 30,(in millions)2025202420252024Income (loss) before income tax expense (1)(A)$50 9 $76 (43)Income tax expense (benefit):Proportional amortization of investments765 539 2,370 2,403 Income tax credits and other income tax benefits(968)(879)(3,172)(3,224)Net expense (benefit) recognized within income tax expense(B)(203)(340)(802)(821)Net income related to affordable housing and renewable energy tax credit investments(A)-(B)$253 349 $878 778 (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 & Company109

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 party investors that are collateralized by the transferred credit card loans. The underlying securitized credit card loans and other assets in the master trust are available only for payment of the debt securities issued by the master trust; they are not available to pay our other obligations. In addition, the investors in the debt securities do not have