Company: WFC-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000072971-25-000253
Chunk: 121

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 121
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 debt securities$33 21 $139 69 (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 September 30,Nine months ended September 30,(in millions)2025202420252024Interest income (1):Available-for-sale$2,319 1,718 $6,407 4,633 Held-to-maturity1,259 1,583 3,947 5,016 Total interest income 3,578 3,301 10,354 9,649 Provision for credit losses:Available-for-sale4 13 (1)29 Held-to-maturity(10)(7)— (4)Total provision for credit losses(6)6 (1)25 Realized gains and losses (2):Gross realized gains4 8 19 31 Gross realized losses(4)(206)(133)(254)Impairment write-downs— (249)(33)(249)Net realized losses$— (447)$(147)(472)(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.

64Wells 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 about the credit quality of a debt security. We determine the credit rating of a security according to the lowest credit rating made available by national recognized statistical rating organizations (NRSROs). Debt securities rated investment grade, that is those with ratings similar to BBB-/Baa3 or above, as defined by NRSROs, are generally considered by the rating agencies and market participants to be