Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 189

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 12
Chunk 189
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 on Changes in Fair Value Included in Earnings20252024(in millions)Mortgage banking noninterest incomeNet gains from trading and securitiesOther noninterest incomeMortgage banking noninterest incomeNet gains from trading and securitiesOther noninterest incomeQuarter ended June 30,Loans held for sale$20 12 — 20 (3)— Interest-bearing deposits— — — — 2 — Long-term debt— 3 — — 18 — Six months ended June 30,Loans held for sale$41 9 — 43 15 — Interest-bearing deposits— — — — 4 — Long-term debt— (23)— — 59 — 

For performing loans, instrument-specific credit risk gains or losses are derived principally by determining the change in fair value of the loans due to changes in the observable or implied credit spread. Credit spread is the market yield on the loans less the relevant risk-free benchmark interest rate. For nonperforming loans, we attribute all changes in fair value to instrument-specific credit risk. For LHFS accounted for under the fair value option, instrument-specific credit gains or losses were insignificant during the second quarter and first half of both 2025 and 2024.For interest-bearing deposits and long-term debt, instrument-specific credit risk gains or losses represent the impact of changes in fair value due to changes in our credit spread and are generally derived using observable secondary bond market information. These impacts are recorded within the debit valuation adjustments (DVA) in OCI. See Note 21 (Other Comprehensive Income) for additional information.

104Wells Fargo & Company

Disclosures about Fair Value of Financial InstrumentsTable 12.9 presents a summary of fair value estimates for financial instruments that are not carried at fair value on a recurring basis. Some financial instruments are excluded from the scope of this table, such as certain insurance contracts, certain nonmarketable equity securities, and leases. This table also excludes assets and liabilities that are not financial instruments such as the value of the long-term relationships with our deposit, credit card and trust customers, MSRs, premises and equipment, goodwill and deferred taxes.Loan commitments, standby letters of credit and commercial and similar letters of credit are not included in Table 12.9. A reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the allowance for unfunded credit commitments, which totaled $702 million and $546 million at