Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 131

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 5
Chunk 131
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 for commitments that are unconditionally cancellable at our discretion.We issue commercial letters of credit to assist customers in purchasing goods or services, typically for international trade. At June 30, 2025, and December 31, 2024, we had $1.0 billion and $968 million, respectively, of outstanding issued commercial letters of credit. See Note 14 (Guarantees and Other Commitments) for additional information on issued standby letters of credit.We may be a fronting bank, whereby we act as a representative for other lenders, and advance funds or provide for the issuance of letters of credit under syndicated loan or letter of credit agreements. Any advances are generally repaid in less than a week and would normally require default of both the customer and another lender to expose us to loss.The contractual amount of our unfunded credit commitments, including unissued letters of credit, is summarized in Table 5.4. The table is presented net of commitments syndicated to others, including the fronting arrangements described above, and excludes issued letters of credit and discretionary amounts where our approval or consent is required prior to any loan funding or commitment increase.Table 5.4:  Unfunded Credit Commitments(in millions)Jun 30,2025Dec 31,2024Commercial and industrial$407,708 401,947 Commercial real estate11,440 12,505 Total commercial419,148 414,452 Residential mortgage (1)21,460 23,872 Credit card169,742 163,256 Other consumer7,700 7,985 Total consumer198,902 195,113 Total unfunded credit commitments$618,050 609,565 (1)Includes lines of credit totaling $19.2 billion and $22.5 billion as of June 30, 2025, and December 31, 2024, respectively.

Wells Fargo & Company73

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

Allowance for Credit LossesTable 5.5 presents the ACL for loans, which consists of the allowance for loan losses and the allowance for unfunded credit commitments. Total net loan charge-offs decreased $444 million from June 30, 2024, due to lower losses in our commercial real estate portfolio driven by the office property type and lower losses in our auto portfolio. The ACL for loans decreased $68 million from December 31