Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 134

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 5
Chunk 134
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 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 June 30, 2025, we had $515.7 billion and $34.0 billion of pass and criticized commercial loans, respectively. Gross charge-offs by loan class are included in the following table for the six months ended June 30, 2025, and year ended December 31, 2024.

Wells Fargo & Company75

Note 5:  Loans and Related Allowance for Credit Losses (continued)

Table 5.7:  Commercial Loan Categories by Risk Categories and VintageTerm loans by origination yearRevolving loansRevolving loans converted to term loansTotal(in millions)20252024202320222021PriorJune 30, 2025Commercial and industrialPass$38,125 32,142 18,070 17,891 10,418 15,417 254,867 23 386,953 Criticized869 741 945 1,111 435 746 10,350 — 15,197 Total commercial and industrial38,994 32,883 19,015 19,002 10,853 16,163 265,217 23 402,150 Gross charge-offs (1)16 43 21 18 3 4 256 — 361 Commercial real estatePass18,279 15,903 10,107 20,746 17,661 26,066 6,222 63 115,047 Criticized1,746 2,666 1,318 4,503 4,141 2,937 202 — 17,513 Total commercial real estate20,025 18,569 11,425 25,249 21,802 29,003 6,424 63 132,560 Gross charge-offs—