WFC · 8-K · 20261013PR000318

Credit Loss Provisions

WELLS FARGO & COMPANY/MN · 2026-10-13 · Importance 57 · Surprise 64 · In source text

The provision for credit losses increased 51% year over year to $1.029 billion and 13% sequentially from $914 million. The allowance increase reflected higher commercial-and-industrial and auto-loan balances, partly offset by a lower commercial-real-estate allowance. Net charge-offs increased 11% sequentially to $983 million, or 0.38% of average loans annualized. Nonperforming assets declined $585 million sequentially to $7.359 billion, or 0.70% of total loans, driven by lower commercial-real-estate nonaccrual loans.

Key facts

• Commercial Banking provision for credit losses in third quarter 2026: $240 million, up 515% year-over-year. source
• Change in the allowance for credit losses in third quarter 2026: $46 million, an increase of 48% from second quarter 2026 and 117% from third quarter 2025. source
• Wells Fargo third quarter 2026 provision for credit losses: $1,029 million. source
• Total nonaccrual loans at Sep 30, 2026: $7,060 million, representing 0.67% of total loans. source
• Total nonperforming assets at Sep 30, 2026: $7,359 million, representing 0.70% of total loans. source
• Allowance for credit losses for loans at Sep 30, 2026: $14,458 million, or 1.38% of total loans. source
• Net charge-offs in third quarter 2026: $983 million, up 11% from second quarter 2026 and up 3% from third quarter 2025. source
• Commercial net loan charge-offs as a percentage of average loans were 0.18% (annualized) in third quarter 2026, up from 0.10% in the prior quarter. source

Impact estimates