# WELLS FARGO SECURITIES, LLC X-17A-5 (2026-03-02) — Broker-dealer annual report - Company: WELLS FARGO SECURITIES, LLC - Form: X-17A-5 - Filed: 2026-03-02 - Period: 2025-12-31 - Accession: 0001224385-26-000003 - CIK: 1224385 - File #: 8-65876 - Type: Broker-dealer - Material weakness: No - Auditor: KPMG, LLP - Auditor location: New York, NY - Contact: Damian George - Phone: 516-662-4287 - Email: timothy.m.connor@wellsfargo.com - Website: wellsfargo.com - Signed by: Timothy Connor (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1224385/000122438526000003/wfssfc.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) # **WELLS FARGO SECURITIES, LLC** (An Indirect Wholly-Owned Subsidiary of Wells Fargo & Company) Statement of Financial Condition December 31, 2025 (With Report of Independent Registered Public Accounting Firm Thereon) {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | ~
0MB Number: 3235--0123 | | |-----------------------------|--| | Nov. 30, 2026 | | | Estimated average burden | | | hours per response: 12 | | | SECRLE NUMBER | | 8-65876 # ANNUAL REPORTS FORM X-17A-5 PART Ill FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-l2, and 18a-7 under the securities Exchange Act of 1934 | FILING FOR THE PERIOD BEGINNING O 1/01/25 | | AND ENDING 12/31 /25 | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|----------------------|-----------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IOENTIRCATION | | | | | NAME oF FIRM: Wells Fargo Securities, LLC | | | | | | lYPE OF REGISTRANT (check all applicable boxes):
D Security-based swap dealer
0 Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | | | D Major security-based swap participant | | | ADDRESS OF PRINCIPAL PlACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 550 South Tryon Street | | | | | | | (No. and Street) | | | | | Charlotte | NC | | 28202 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Timothy Connor | 215-764-7949 | | timothy.m.connor@wellsfargo.com | | | (Name) | (Area Code-Telephone Number} | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
KPMG, LLP | | | | | | | {Name-if im:ftvidual, state last, first, and middle name} | | | | | 2 Manhattan West, 375 Ninth Ave | New York | NY | 10001 | | | (Address) | (City) | (State) | (Zip Code) | | | 10/20/2003 | | 185 | | | | (Date of Reaistration with PCAOB)(lf applicablel | | | (PCAOB R~tration Number if annlicable | | | • Oaims for exemption from the requirementthat the annual reports be covered by the reports of an independent public | FOR OFACIAI. USE ONLY | | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17
CFR 240.17a-5{e)(1}{ii), if applicable. | | | | | Persons who are to respond to the collection of .information contained in this form **are** not required to respond unless the form displays a currently valid OMS control number. {2}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Timothy Connor swear (or affirm) that, to the best of rrr( knowledge and belief, the financial report pertaining to the firm of Wells Fargo Securities LLC as of December 31 2~ is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. Title: Chief Financial Officer #### This **filing\*\* contains** { **check all applicable boxes):** - ii1 {a) Statement of financial condition. - I!!! {b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, ifthere is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1--02 of Regulation S-X}. - □ (d) Statement of cash flows. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f} Statement of changes in liabifrt:ies subordinated to claims of creditors. - □ (g} Notes to consolidated financial statements. - □ (h} Computation of net capital under 17 CFR 240.15c3-l or 17 CFR 240.18.i-1, as applicable. - □ (i) Computation oftmgible net worth under 17 CFR 240.183-2. - □ Ol Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ **{k)** Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n} Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2} or 17 CFR 240.lSa-4, as applicable. - □ (o) Reconciliations, induding appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.183-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15<:3-3 or 17 CFR 240.1&-4, as applicable, if material differences exist, ora statement that no materiald'lfferences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - ~ (q} Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a,;12, or 17 CFR 240.lSa-7, as applicable. - D (r} Compliance report in accordance •Nlth 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CfR 240.18a-7, as applicable. - i!i1 (t) Independent public accountant's report based on an examination of the statement offinancial condition. - D (u} Independent public accountant's report based on an-examination of the financial report or financial statements under 17 CfR 240.17a-S, 17 CFR 240.18a-7, or 17 CfR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CfR 240.17a-5 or 17 CFR 240.183-7, as applicable. - D {w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR240.18a-7, as applicable. - □ {x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17.a-12, as applicable. - D {y) Report describing any material inadequacies found to exist or found to have existed since the date ofthe previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). □ (z) other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - ~~o request confidential treatment of certafn portions of this filing, see 17 CFR 240.17a-5(e}{3) or 17 CFR240.18a-7(d)(2}, as applicable. • {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) KPMG LLP Suite 1000 620 S. Tryon Street Charlotte, North Carolina 28202-1842 # **Report of Independent Registered Public Accounting Firm** To the Member and the Board of Managers Wells Fargo Securities, LLC: ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Wells Fargo Securities, LLC (the Company) as of December 31, 2025, and the related notes (collectively, the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2025, in conformity with U.S. generally accepted accounting principles. ### Basis for Opinion This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. ![](_page_3_Picture_9.jpeg) We have served as the Company's auditor since 2003. Charlotte, North Carolina February 27, 2026 {4}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Statement of Financial Condition December 31, 2025 (Dollai·s in thousands) | Assets: | | |-------------------------------------------------------------------------------------|--------------------------| | Cash | \$
140,932 | | Cash segregated under federal and other regulations | 1,527,398 | | Securities bonowed | 41,581,908 | | Securities purchased under agreements to resell | 87,780,005 | | Receivable from broker-dealers and clearing organizations | 8,885,562 | | Receivable from customers, net | 10,841,539 | | Financial instrnments owned, at fair value (\$101,201,518 pledged as
collateral) | 116,237,906 | | Property, equipment and leasehold improvements, net | 3,499 | | Goodwill | 79,687 | | Receivable from affiliates | 50,332 | | Other assets | 1,091,309 | | Total assets | \$
268,220,077 | | | | | Liabilities: | | | Securities sold under agreements to repurchase | \$
169,550,619 | | Securities loaned | 9,324,897 | | Payable to customers
Payable to broker-dealers and clearing organizations | 16,113,030
7,090,554 | | Payable to non-customers | 1,714,074 | | | | | Financial instrnments sold, not yet purchased, at fair value
Bonowings | 30,440,355
15,528,490 | | Payable to affiliates | 34,388 | | Other liabilities | 1,693,330 | | | | | Total liabilities | 251,489,737 | | Subordinated bonowings | 5,500,000 | | Member's equity: | | | Member's conttibutions | 4,565,243 | | Accumulated earnings | 6,665,097 | | Total member's equity | 11,230,340 | | Total liabilities and member's equity | \$
268,220,077 | The accompanying notes are an integral pait of these financial statements. {5}------------------------------------------------ (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) ### **(1) Organization** Wells Fargo Securities, LLC (the Company) is organized as a Limited Liability Company. The Company is a wholly-owned subsidia1y of Everen Capital Corporation (Everen), which is a wholly owned subsidia1y of WFC Holdings, LLC (WFCH), which is a wholly owned subsidiaty of Wells Fargo & Company (WFC). WFC is registered with the Federal Reserve Board as a financial holding company in accordance with the Gramm-Leach-Bliley Act of 1999 (GLBA). The Company is registered as a broker-dealer with the Securities and Exchange Commission (SEC) and is a member of the Financial Industiy Regulat01y Authority (FINRA) and the Securities Investlnent Protection Co1poration (SIPC). The Company is also a registered Futures Commission Merchant (FCM) with the Commodities Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA). The Company engages in a wide variety ofsecmities activities in accordance with its status as an affiliate of a financial holding company under the provisions of the GLBA. In general, securities sold by the Company are not bank deposits and are not insured by the Federal Deposit Insurance Co1poration (FDIC). The Company clears some of its customers' ti·ansactions through Wells Fargo Clea1ing Services, LLC (WFCS), an affiliated cleating broker-dealer, on a fully disclosed basis. The Company self cleat·s the majority of its institutional customer accommodation and market-making transactions. Some futures are canied and cleared by an unaffiliated broker-dealer. The Company is approved to act as a clearing prime broker. The Company is also designated as a Plima1y Dealer in U.S. government securities by the Federal Reserve Bank. The Company is a member of various exchanges where it is approved to trade, execute and cleat· interest rate swaps, futures and options. On September 22, 2025, S&P Global (S&P) affirmed the long and sho1t-te1m issuer credit ratings of A+/ A-1 on the Company. On December 15, 2025 Fitch Ratings affumed the long and sho1t-tenn issuer credit ratings of AA-/Fl+ on the Company. The ratings on the Company are based on its core status to WFC according to the group methodology under S&P and Fitch Ratings .. The chief operating decision maker (CODM) of the Company is the chief executive officer (CEO). The CODM uses net income that is repo1ted to monitor actual results versus p1ior pe1iod and planned amounts to assess perf01mance and decide how to allocate resources and invest profits. Additionally, the CODM uses excess net capital (see Note 16), which is not a measure of profit or loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. The Company's operations constitute a single operating segment and therefore, a single repo1table segment, because the CODM manages the business activities using inf01mation of the Company as a whole. The measure of segment assets is total assets as rep01ted on the Company's Statement of Financial Condition. The Company derives revenue primarily in the U.S. {6}------------------------------------------------ # (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) ### **(2) Summary of Significant Accounting Policies** # *(a) Basis of Presentation* The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), the most significant of which are summarized below. ### *(b) Accounting Standards Adopted During Current Year* In 2025, the Company adopted F ASB ASU 2023-09 *Improvements to Income Tax Disclosures,* which requires all public entitles, including those entities disregarded for federal taxes, to disclose the net difference between the tax bases and the rep01ted amounts of the entity's assets and liabilities per ASC 740-10-50-16. ### *(c) Securities Purchased/Sold Under Agreements to Resell/Repurchase* Transactions involving secmities purchased under agreements to resell (reverse repurchase agreements) or secmities sold under agreements to repurchase (repmchase agreements) are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts. These transactions are p1ima1ily repurchase agreements of United States government and agency secmities and m01tgage-backed securities. The Company's exposure to credit risk associated with the nonperfo1mance of customers in fulfilling these contractual obligations can be directly affected by volatile trading markets, which may impair the customers' ability to satisfy their obligations to the Company. It is the Company's policy to rep01t reverse repurchase agreements and repurchase agreements with the same counterpaity on a net basis when the conditions for netting, as specified in U.S. generally accepted accounting principles (U.S. GAAP), are met. It is the Company's policy to obtain possession of secmities pm-chased under agreements to resell, which primarily consists of highly liquid securities. The Company manages the credit 1isk associated with these transactions through unde1w1iting and by monitoring the financial strength of our counterpa1t ies, monit01ing the fair value of collateral pledged relative to contractually required repmchase amounts, and monitoring that our collateral is properly retmned through the cleai·ing and settlement process in advance of our cash repayment. The Company uses the collateral maintenance practical expedient as desc1ibed under ASC 326-20-35-6. The bmrnwer is required to pledge collateral at inception, with additional collateral pledged or retmned daily, to maintain an approp1i ate collateral position for each transaction. These financing transactions do not create mate1i al credit lisk given the collateral provided and the related monitoring process. #### *(d) Securities Transactions* Securities are used for trading purposes and are recorded at fair value on a trade-date basis and included in financial instmments owned and financial instmments sold, not yet purchased in the the accompanying Statement of Financial Condition. {7}------------------------------------------------ (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) Customers' secuntles ti·ansactions are recorded on a settlement date basis with related commission revenue and expenses recorded on a ti·ade-date basis. Securities owned by customers, including those that collateralize margin or other similar transactions, are not reflected in the Statement of Financial Condition as the Company does not have title to those assets. In the event of uncompleted transactions on settlement date, the Company records conesponding receivables and payables, respectively. The canying value of the receivables and payables approximates their fair values. # *(e) Securities Lending Activity* Securities bo1rnwed and securities loaned are rep01ted as collateralized financing trnnsactions and are canied at the contracted amounts of cash collateral received or paid in connection with those transactions. The Company receives collateral generally in excess of the market value of securities loaned. The Company monitors the market value of securities b01rnwed and loaned on a daily basis, with additional collateral obtained or refunded as necessaiy. The Company uses the collateral maintenance practical expedient as desc1ibed under ASC 326-20-35-6. The practical expedient allows the Allowance for Credit Losses (ACL) to be lilnited to the difference between the fair value of the collateral held (i.e., secmity WFS bmrnwed) and the am01tized cost basis of the financial asset (i.e. cash collateral posted). Given that our collateralization of these assets can change depending on the cmTent ti·ends in mai·ket values and risk profiles, the Company monitors the collateral value of these assets regularly and requires additional collateral to be pledged or retmned to maintain the approp1iate collateral position for each tl"ansaction. These financing transactions do not create mate1ial credit 1isk given the collateral provided and the related monito1ing process. # *(/) Derivatives* Derivative financial inst11.nnents are used for trading purposes, including economic hedges of trading instruments, and ai·e recorded at fair value in the Statement of Financial Condition. Fair values for exchange traded de1ivatives, p1incipally futm·es and ce1tain listed options, are based on quoted market prices. Fair values for over-the-counter de1ivative financial instmments, principally interest rate, credit default or *total* retmn swaps, fo1wards, and options, are based on quoted market prices for silnilar instrnments, p1icing models and discounted cash flow analyses, and are included in financial instmments owned and financial instrnments sold, not yet purchased in the accompanying Statement of Financial Condition. Most of the Company's derivative u·ansactions are executed under master netting airnngements. The Company reflects all derivative balances and related cash collateral subject to enforceable master netting a1rnngements on a net basis in the Statement of Financial Condition. Statement of Financial Condition netting adjustments ai·e detennined based on the tenns specified within each master netting anangement and at the counterpa1ty level for which there may be multiple conti·act types. For disclosure purposes, adjustments are allocated to the conu·act type for each counterpa1ty propo1tionately based upon gross amounts recognized by the counterpaity. As a result, the net amounts disclosed by contract type may not represent the actual exposure upon settlement of the conu·acts. Statement of Financial Condition netting does not include non-cash collateral that is received or pledged. {8}------------------------------------------------ # (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) The Company applies settlement to market treatment for the cash collateralizing its interest rate derivative contracts with ce1tain centrally cleared counterpa1ties. As a result, derivative balances with these counterpruties ru·e considered settled by the collateral. # *(g) Income Taxes* The Company is a single member limited liability company and is treated as a disregarded entity pursuant to Treasmy Regulation Section 301.7701-3 for federal income tax purposes. Generally, disregarded entities are not subject to entity-level federal or state income taxation and, as such, the Company does not provide for income taxes under FASB ASC 740, Income Taxes. The Company's taxable income is reported in the tax return of Everen. There are no tax sharing agreements between the Company and Everen. Although the Company is a disregarded entity for federal income tax pm-poses and does not record income taxes under ASC 740, in accordance with ASC 740-10-50-16, management has evaluated the net difference between the tax bases and the rep01ted amounts of the Company's assets and liabilities. The difference as of December 31, 2025 was \$612,270. Ce1tain states and foreign jurisdictions may subject the Company to entity-level taxation as a single member limited liability company; however, there is not a material provision for state and foreign income taxes for year ended December 31, 2025. The Company files tax returns in various states and local jurisdictions and is subject to income tax examinations by those tax authorities for years 2017 and fo1wru·d. Due to the Company's status as a disregru·ded entity for income tax pm-poses, the related balance sheet accounts including income tax receivable/payable and defe1rnd tax assets and liabilities are immaterial to the financial statements. Based upon its evaluation, the Company has concluded that there are no significant unce1tain income tax positions relevant to the jurisdictions where it is required to file income tax retmns requiring recognition in the financial statements. Management monitors proposed and issued tax laws, regulations and cases to detennine the potential impact to unce1tain income tax positions. The Company recognizes accrned interest and penalties, as appropriate, related to unrecognized income tax benefits in income tax expense. The Company did not recognize any interest or penalties in the year ended December 31, 2025. At December 31 , 2025, management had not identified any potential subsequent events that would have a mate1ial impact on unrecognized income tax benefits within the next twelve months. # *(h) Goodwill* Goodwill is the cost of an acquired company in excess of the fair value of identifiable net assets at the acquisition date. Impaim1ent exists when the canying value of a repo1ting unit exceeds its respective fair value. The Company tests goodwill annually in the fomth qua1ter, or more frequently under ce1tain conditions, for impairment at the rep01ting unit level. The Company identifies repo1ting units to be assessed for goodwill impairment at the repo1table operating segment level or one level below. The Company has one goodwill repo1ting unit. {9}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) The Company has the option of performing a qualitative assessment of goodwill. The Company may also elect to bypass the qualitative test and proceed directly to a quantitative test. If we perform a qualitative assessment of goodwill to test for impaiiment and conclude it is more likely than not that a reporting unit's fair value is greater than its carrying amount, quantitative tests are not required. However, if we dete1mine it is more likely than not that a reportillg unit's fair value is less than its carrying amount, we complete a quantitative assessment to determine if there is goodwill impairment. In the fourth quaiter of 2025, the Company elected to perfo1m a qualitative assessment of the reporting unit's goodwill and determined that it was more likely than not that our reporting unit's fail· value was greater than its canyillg amount. As of December 31, 2025, the Company concluded that goodwill is not impaiI·ed. # *(i) Property, Equipment, and Leasehold Improvements* Prope1ty, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation of prope1ty and equipment is recognized on a straight-line basis using estimated useful lives, which generally range from three to ten years. Leasehold improvements ai·e amo1tized over the lesser of the estimated useful life of the improvement or the te1m of the lease. # *(j) Statement of Cash Flows* For purposes of the Statement of Cash Flows, cash and restricted cash consist of "cash" and "cash segregated under federal and other regulations." The following table provides a reconciliation of cash and restricted cash reported within the Statement of Cash Flows with the total of the same such amounts presented in the Statement of Fillancial Condition as of December 31, 2025: | Cash | 140,932 | |-----------------------------------------------------|-----------------| | Cash segregated under federal and other regulations | 1,527,398 | | Total Cash and Restricted Cash | \$
1,668,330 | # *(k) Use of estimates* The prepai·ation of the Statement of Financial Condition in conformity with U.S. GAAP requires management to make estimates and assumptions that affect repmted amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Statement of Financial Condition. Actual results could differ from those estimates. {10}------------------------------------------------ (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) ### **(3) Cash segregated under federal and other regulations** Under the provisions of Rule 15c3-3 of the Securities and Exchange Commission (SEC), a reserve requirement did not exist at December 31, 2025 and therefore no cash or securities were on deposit at December 31, 2025. There is no required deposit for the proprietaiy accounts of brokers (P AB), and therefore no cash or secmities were on deposit at December 31, 2025. As an FCM, the Company is required to segregate funds in a cleared swap customer account, a secured funds account and a segregated funds account under rules mandated by the CFTC. For these purposes, \$340,765, \$52,293, and \$191,674, respectively, is held in accounts at non-affiliated banks and is reflected in cash segregated under federal and other regulations in the Statement of Financial Condition. In addition, \$292,823 of client cleared swaps funds, \$102,252 of secured funds and \$547,591 of segregated funds, are held in accounts at an affiliate bank, and reflected in cash segregated under federal and other regulations in the Statement of Financial Condition. The Company is required to post margin at exchanges to meet customer and film requirements. The Company deposited \$2,601,700 of investments of customer funds in secmities with clea1ing organizations as margin at December 31, 2025. Additionally, the Company segregated \$16,038,843 of customer specific owned securities deposited at non-affiliated banks and clearing organizations at December 31, 2025. These segregated secmities are not included in the Statement of Financial Condition. # **(4) Receivable from and Payable to Customers** Receivable from and payable to customers represent the balances ansmg in connection with the settlement of cash secmities, de1ivative and securities-based lending transactions. Receivables from customers also include margin loans to customers and customer cash debits. Payable to customers includes customer free credits. It is the Company's policy to repo1t margin loans and payables that arise due to positive cash flows in the same customer's accounts on a net basis when the conditions for netting as specified in U.S. GAAP ai-e met. The amounts receivable from customers ai·e generally collateralized by securities owned by the customer, the value of which is not reflected in the accompanying Statement of Financial Condition. At December 31, 2025, customer receivables of\$51,796 were unsecured. The Company has established an allowance for doubtful accounts to offset amounts deemed uncollectible from unsecured customer balances receivable. Receivable from customers is repmted net of the allowance for doubtful accounts in the amount of\$4,586 as of December 31, 2025. {11}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) #### **(5) Receivable from and Payable to Broker-Dealers and Cleating Organizations** Receivable from and payable to broker-dealers and clearing organizations consist of the following at December 31, 2025: | Receivable from broker -dealers and clearing organizations: | | |-------------------------------------------------------------|-----------------| | Receivable from derivative cleai·ing organizations | \$
7,253,227 | | Guaranty deposits | 819,990 | | Securities failed to deliver | 334,686 | | Syndicate receivable | 140,214 | | Receivable from broker-dealers | 323,763 | | Receivable from cleating corporations | 9,126 | | Other | 4,556 | | | \$
8,885,562 | | Payable to broker-dealers and clearing organizations: | | | Trade date payable | \$
5,246,170 | | Syndicate payable | 191,497 | | Securities failed to receive | 216,236 | | Payable to broker-dealers | 1,371,734 | | Payable to derivative clearing organizations | 64,917 | | | \$
7,090,554 | #### **(6) Payable to Non-Customers** Payable to non-customers represent payable to affiliates for their futures, options and cleared swaps accounts that the Company cleai·s. The balance consists of the following at December 31, 2025: | Payable to Wells Fai·go Bank, N.A. | \$
1,537,535 | |---------------------------------------------|-----------------| | Payable to Wells Fai·go Commodities, LLC | 142,892 | | Payable to Union Hamilton Reinsurance, Ltd. | 33,647 | | | \$
1,714,074 | {12}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) ### **(7) Financial Instruments Owned and Financial Instruments Sold, Not Yet Purchased** At December 31, 2025, financial instruments owned and financial instruments sold, not yet purchased consisted of trading securities and derivatives repmted at fair value as presented below: | | Financial
instruments
owned | Financial
instruments
sold, not yet
purchased | |----------------------------------------------------------------------|-----------------------------------|--------------------------------------------------------| | Trading securities: | | | | Corporate obligations | \$
15,499,430 | (5,612,309) | | Collateralized loan obligations and asset-backed securities | 2,539,185 | (5,030) | | Mo1tgage-backed securities | 66,071,215 | (3) | | U.S. government, U.S. agency and municipal government
obligations | 23,788,202 | ,173,171)
(21 | | Non-U.S. sovereign debt securities | 287,468 | (480,612) | | Equity secmities | 7,591,955 | (2,909,776) | | Trading derivatives: | | | | Interest rate contracts (1) | 247,421 | (258,457) | | Equity contracts | 213,030 | (103) | | Foreign exchange contracts | | (172) | | Credit contracts | | (722) | | | \$
116,237,906 | (30,440,355) | (1) Interest rate contracts includes CVA for all derivatives. Financial instrnments owned at December 31, 2025, in the table above, includes securities issued by affiliates with a fair value of \$168,318. # **(8) Variable Interest Entities (VIEs) and Securitizations** The Company acts as unde1writer for other subsidiai·ies ofWFC and third parties that secmitize financial assets, and may make a mai·ket in these securitized financial assets. These securities are accounted for at fair value and are included in financial instruments owned, at fair value in the Statement of Financial Condition. The Company purchases and sells financial instrnments in VIEs in connection with its mai·ket making activities. These financial instrnments in VIEs include senior and subordinated tranches of collateralized mmtgage obligations (CMOs), collateralized debt obligations (CDOs), collateralized loan obligations (CLOs), and other asset backed securities. The Company has made no liquidity arrangements, guai·antees or commitments with third patties related to these holdings. The Company's maximum exposure to loss related to these VIEs is limited to the carrying amount of the financial instruments owned. {13}------------------------------------------------ # (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) The Company would consolidate a VIE if it is the prim.a1y beneficiaiy, which is defined as the pa1ty that has both the power to direct the activities that most significantly impact the VIE's perfo1mance and the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE. During the year ended December 31, 2025, the Company transfened \$12,734,081 of debt secmities in secmitizations strnctured as sales or fmancing transactions. The secmitizations were prim.aiily U.S. government agency or U.S. Government Sponsored Enterprise (GSE) sponsored collateralized mo1tgage obligations. These secmitizations were done principally on behalf of customers to facilitate their purchase of agency backed mo1tgage securities that confo1m to their investment profile. The Company is not the primaiy beneficiaiy of these VIEs because it does not have the power to direct the activities that most significantly impact the U.S. government agency or U.S. GSE sponsored collateralized mmtgage obligation entities. The Company was not required to consolidate any interest in VIEs. As of December 31, 2025, the Company held \$204,102 of securities related to secmitizations for which the Company included in fmancial instruments owned, at fair value in the Statement of Financial Condition. The following tables provide a summa1y of unconsolidated VIEs with which the Company has significant continuing involvement. Significant continuing involvement includes transactions where the Company was the sponsor or tr·ansferor and has other significant fo1ms of involvement. Sponsorship includes transactions with unconsolidated VIEs where the Company solely or materially paiticipated in the initial design or strncturing of the entity or marketing of the transaction to investors. When the Company tr·ansfers assets to a VIE and accounts for the transfer as a sale, the Company is considered the transferor. The tables do not include offsetting financial instmments that are held to mitigate the 1isks associated with these va1iable interest entities. In the following tables, "Total VIE assets" represents the remaining principal balance of assets held by unconsolidated VIEs using the most cmTent info1mation available. "Cai1ying value" is the amount in our Statement of Financial Condition related to our involvement with the unconsolidated VIEs. "Maximum exposure to loss" from our involvement with off-balance sheet entities equals the canying value of involvement with off-balance sheet (unconsolidated) VIEs as of December 31, 2025, as the Company does not have any other commitments or guai·antees with those entities. {14}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) | | | Carrying Value | | | | |--------------------------------------------|---------------------|---------------------------------|------------|--|--| | | Total VIE
assets | Debt and
equity
interests | Net assets | | | | Residential mortgage loan securitizations: | | | | | | | Conforming | \$
551,186 | 5,381 | 5,381 | | | | Other/nonconforming (1) | | | | | | | Commercial mortgage securitizations | 4,228,575 | 198,721 | 198,721 | | | | Total | \$
4,779,761 | 204,102 | 204,102 | | | (1) Nonconfonning residential mortgage loan securitizations are compromised ofloans that do not conform to either government-sponsored entity or Federal Housing Administration standards. | | Maximum exposure to loss | | | | |--------------------------------------------|----------------------------------|-------------------|--|--| | | Debt and
equity
interests | Total
Exposure | | | | Residential mortgage loan securitizations: | | | | | | Conforming | \$
5,381 | 5,381 | | | | Other/nonconf 01ming (1) | | | | | | Commercial mortgage securitizations | 198,721 | 198,721 | | | | Total | \$
204,102
===::::::::::== | 204,102 | | | (1) Nonconfonning residential mortgage loan securitizations are compromised ofloans that do not conform to either government-sponsored entity or Federal Housing Administration standards. #### **(9) Fair Value Measurements** In accordance with FASB ASC 820, Fair Value Measurement, the Company groups its assets and liabilities measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to dete1mine fair value. These levels ai·e: Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 - Valuation is based upon quoted p1ices for similar instruments in active markets, quoted prices for identical or similar instruments **in** mai·kets that are not active, and modelbased valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use {15}------------------------------------------------ (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) of market comparable p1icing, option pricing models, discounted cash flow models and similar techniques. In the detennination of the classification of financial instruments in Level 2 or Level 3 of the fair value hierarchy, the Company considers all available info1mation, including observable market data, indications of market liquidity and orderliness, and the Company's understanding of the valuation techniques and significant inputs used. Based upon the specific facts and circumstances of each instrument or instrnment categ01y, judgments are made regarding the significance of the Level 3 inputs to the instmments' fair value measurement in its entirety. If Level 3 inputs are considered significant, the instrument is classified as Level 3. The following sections describe the valuation methodologies used by the Company to measure classes of fmancial insnuments at fair value and specify the level in the fair value hierarchy where va1ious fmancial instrnments are generally classified. Valuation models, significant inputs to those models and any significant assumptions are included where appropriate. The Company uses quoted prices in active markets, where available, and classifies such instmments within Level **1** of the fair value hierarchy. Examples include exchange tr·aded equity secmities and some highly liquid government secmities such as U.S. Treasuries. When instluments are tr·aded in seconda1y markets and quoted market p1ices do not exist for such securities, the Company generally relies on internal valuation techniques or on prices obtained from third patty pricing services (vendors) or brokers or combination thereof, and accordingly, classifies these insnuments as Level 2 or 3. Financial instruments are mostly valued using internal trader p1ices that at·e subject to p1ice verification procedmes perf01med by independent internal personnel. The maj01ity of fair values de1ived using internal valuation techniques are verified against multiple pricing sources, including p1ices obtained from third patty vendors. Vendors compile prices from various sources and often apply mat1ix pricing for similar secmities when no price is obse1vable. The Company reviews p1icing methodologies provided by the vendors in order to dete1mine if obse1vable market info1mation is being used, versus unobse1vable inputs. When evaluating the appropriateness of an internal n·ader p1ice compared with vendor prices, considerations include the range and quality of vendor prices. Vendor or broker p1ices are used to ensure the reasonableness of a trader price; however valuing financial instmments involves judgments acquired from knowledge of a patticular market. If a tr·ader asserts that a vendor or broker price is not reflective of market value, justification for using the tr·ader price, including recent sales activity where possible, must be provided to and approved by the approp1iate levels of management. Similarly, while tr·ading securities tr·aded in seconda1y markets are typically valued using unadjusted vendor prices, these p1ices are reviewed and may be adjusted using quoted mat·ket prices for similat· securities if dete1mined necessa1y. These securities are classified as Level 2 of the hierarchy. Examples include ce1tain U.S. government, U.S. agency and municipal government obligations, corporate obligations, and ce1tain mo1tgage-backed securities (MBS). Security fair value measmements using significant inputs that are unobse1vable in the market due to limited activity or a less liquid mat·ket are classified as Level 3 in the fair value hierat·chy. Such {16}------------------------------------------------ (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) measurements include secmities valued using internal models or a combination of multiple valuation techniques such as weighting of internal models and vendor or broker pricing, where the unobservable inputs are significant to the overall fair value measurement. Secmities classified as Level 3 include ce1tain residential and commercial MBS, other asset backed securities, collateralized debt obligations (CDOs) and ce1tain collateralized loan obligations (CLOs), and ce1tain residual and retained interests in residential mo1tgage loan securitizations. The Company values CDOs using the prices of silnilar instmments, the pricing of completed or pending third patty transactions or the p1icing of the Ullderlying collateral within the CDO. Where vendor or broker p1ices are not readily available, the Company uses management's best estimate. The Company enters into both exchange traded and over-the-counter (OTC) derivatives. Quoted market prices ru·e available and used for the Company's exchange traded derivatives, such as ce1tain interest rate futures and option contracts, which the Company classifies as Level 1. However, a majority of the Company's derivatives are traded in OTC mru·kets where quoted mru·ket prices ru·e not readily available. OTC derivatives are valued using internal valuation techniques. Valuation techniques and inputs to internally developed models depend on the type of derivative and nature of the underlying rate, p1ice or index upon which the de1ivative's value is based. Key inputs can include yield curves, credit curves, foreign exchange rates, prepayment rates, volatility measurements and conelation of such inputs. Where model inputs can be observed in a liquid market and the model does not require significant judgment, such de1ivatives are typically classified as Level 2 in the fair value hierru·chy. Examples of derivatives classified as Level 2 include genetic interest rate swaps and ce1tain option and fo1ward contracts. When instmments are traded in less liquid markets and significant inputs are unobservable, such de1ivatives ru·e classified as Level 3. Examples of derivatives classified as Level 3 include complex and highly structured derivatives such as ce1tain credit default swaps. Additionally, significant judgments are required when classifying financial instruments within the fair value hierarchy, particularly between Level 2 and 3, as is the case for certain derivatives. {17}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) Assets and liabilities measured at fair value at December 31, 2025 on a recuning basis are summaii zed below: | Assets and Liabilities Recorded at Fair Value on a Recuning Basis | | | | | | |-----------------------------------------------------------------------|------------------|-------------|---------|--------------|--------------| | | Level 1 | Level 2 | Level 3 | Netting (1) | Total | | Financial instmments owned (excluding derivatives): | | | | | | | Corporate obligations | \$ | 15,484,774 | 14,656 | | 15,499,430 | | Collateralized loan obligations and asset
backed securities | | 2,462,241 | 76,944 | | 2,539,185 | | Mortgage-backed securities | | 66,070,261 | 954 | | 66,071,215 | | US government, US agency and municipal
government obligations | 20,164,214 | 3,623,822 | 166 | | 23,788,202 | | Non-US sovereign debt securities | | 287,453 | 15 | | 287,468 | | Equity securities | 7,347,765 | 173,287 | 70,903 | | 7,591,955 | | Derivatives: | | | | | | | hlterest rate contracts | 20 | 1,031,554 | | (784,153) | 247,421 | | Equity contracts | | 1,864,845 | | (1,651,815) | 213,030 | | Foreign exchange contracts | | 2,068 | | (2,068) | | | Credit contracts | | 7,100 | | (7,100) | | | | \$
27,511,999 | 91,007,405 | 163,638 | {2,445, 1362 | 116,237,906 | | Financial instmments sold, not yet purchased (excluding derivatives): | | | | | | | Corporate obligations | \$ | (5,612,309) | | | (5,612,309) | | Collateralized loan obligations and asset
backed securities | | (3,470) | (1,560) | | (5,030) | | Mortgage-backed securities | | (3) | | | (3) | | US government, US agency and municipal
government obligations | (20,884,307) | (288,864) | | | (21,173,171) | | Non-US sovereign debt securities | | (480,612) | | | (480,612) | | Equity securities | (2,896,622) | (13,097) | (57) | | (2,909,776) | | Derivatives: | | | | | | | hlterest rate contracts | | (1,203,262) | | 944,805 | (258,457) | | Equity contracts | | (1,652,304) | (1) | 1,652,202 | (103) | | Foreign exchange contracts | | (12,361) | | 12,189 | (172) | | Credit contracts | | (44,611) | | 43,889 | (722) | | | \$ {23, 780,9292 | {9,310,8932 | {1,6182 | 2,653,085 | po,440,3552 | (1) The netting of securities owned (assets) by the amount of securities sold but not yet purchased (liabilities) occurs when the securities owned and the securities sold but not yet purchased have identical Committee on Uniform Security Identification Procedures (CUSIPs) numbers. De1ivative assets and derivative liabilities subject to an enforceable master netting arrangement and related cash collateral are also netted on the accompanying Statement of Financial Condition when U.S. GAAP conditions have been met. {18}------------------------------------------------ # **WELLS FARGO SECURITIES, LLC** (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) #### *Changes in Fair Value Levels* The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierai·chy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes, but is not limited to, quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changing the valuation technique used, are generally the cause of transfers between Level 1, Level 2, and Level 3. The changes in Level 3 assets and liabilities measured at fair value on a recuning basis for the year ended December 31, 2025 are summarized in the table below: | | Beginning
balance
January I,
2025 | Total net
gains/(losses)
included in
earnings | Purchases,
issuances,
( sales) and
(settlements)
, net | Transfers
into Leve13
(I) | Transfers
outofLeveJ
3 (2) | Ending
balance as of
December
31, 2025 | Net gains/
(losses)
included in
earnings
related to
positions
held at year
end | |--------------------------------------------------------------------------------------------------|--------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------------|---------------------------------|----------------------------------|-------------------------------------------------|-----------------------------------------------------------------------------------------------------| | Financial instruments owned (excluding derivatives): | | | | | | | | | Cmporate obligations | \$
44,735 | (4,945) | (25,749) | 3,141 | (2,526) | 14,656 | (452) | | Collateralized loan obligations and
asset-backed securities | 80,203 | (23,910) | 11,596 | 15,835 | (6,780) | 76,944 | (18,416) | | Mortgage-backed securities | 1,268 | (1,241) | 8 | 7,338 | (6,419) | 954 | (187) | | US government, US agency and
municipal government obligations | 162 | 4 | | | | 166 | | | Non-US sovereign debt | | | 15 | | | 15 | | | F.quity securities | 46,119 | (437) | 26,244 | 980 | (2,003) | 70,903 | 2,209 | | | \$
172,487 | (30,529) | 12,114 | 27,294 | (17,728) | 163,638 | (16,845) | | Financial instruments sold, not yet purchased (excluding derivatives): | | | | | | | | | Cmporate obligations | \$
(16) | (2) | 18 | | | | | | Collateralized loan obligations and
asset-backed securities | | | (1,560) | | | (1,560) | | | F.quity securities | (10) | (222) | 176 | (2) | | (57) | | | | \$
(26) | (224) | (1,366) | (2) | | c1.61 zi | | | Deiivatives, net: | | | | | | | | | F.quity contracts, net | \$
(426) | (35) | 98 | | 362 | (1) | (1) | | | \$
(426l | (35l | 98 | | 362 | (ll | ,12 | | (1) All assets and liabilities transf=ed into level 3 were previously classified within level 2. | | | | | | | | Change in Level 3 Assets and liabilities on **a** Recurring Basis (2) All assets and liabilities transf=ed out of level 3 are classified as level 2. The following table presents gross pmchases, sales, issuances and settlements related to the changes in Level 3 assets and liabilities measmed at fair value on a recurring basis for the year ended December 31, 2025. {19}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) | | Pw·chases, Sales, Issuances, and Settlements | | | | | | | | |-----------------------------------------------------------------------|------------------------------------------------------|--------------------|-----------|-----------|-------------|----------|--|--| | | Related to Changes in Level 3 Assets and Liabilities | | | | | | | | | | | Purchases | Sales | Issuances | Settlements | Net | | | | Financial insh·uments owned (excluding derivatives): | | | | | | | | | | Corporate obligations | \$ | 25,702 | (43,792) | | (7,659) | (25,749) | | | | Collateralized loan obligations and asset
backed securities | | 63,780 | (48,466) | | (3,718) | 11,596 | | | | Mortgage-backed securities | | 8 | | | | 8 | | | | US government, US agency and municipal
government obligations | | 78 | | | (78) | | | | | Non-US sovereign debt securities | | 15 | | | | 15 | | | | Equity securities | | 115,377 | (89,133) | | | 26,244 | | | | | \$ | ==
2=04='=96=0= | (181,391) | | (11,455) | 12,114 | | | | Financial instmments sold, not yet purchased (excluding derivatives): | | | | | | | | | | Corporate obligations | \$ | 28 | (10) | | | 18 | | | | Collateralized loan obligations and asset
backed securities | | | (1,560) | | | (1,560) | | | | Mortgage-backed securities | | | | | | | | | | US government, US agency and municipal
government obligations | | | | | | | | | | Equity securities | | 869 | (693) | | | 176 | | | | | | | (2,263) | | | (1,366) | | | | Net derivative assets and liabilities: | | | | | | | | | | Equity contracts, net | | | | | 98 | 98 | | | | Credit contracts, net | | | | | | | | | | | | \$==== | | | 98 | 98 | | | | | | | | | | | | | {20}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) #### *Valuation Techniques* - *Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis* The following table provides quantitative info1mation about the valuation techniques and significant unobse1v able inputs used in the valuation of substantially all Level 3 assets and liabilities measured at fair value on a recurring basis which is used as an internal model. | | | | | Range of
unobservable inputs | | | | |---------------------------------------------------------------------|----------------------------------------------------|---------------------------|-----------------------------------|---------------------------------|----------------------|---------------------|--| | | Fair
value of
amount
reported
(Level3) | Valuation technique | Significant unobservable
input | Low
end of
!!!!:! | High end
of range | Weighted
average | | | Financial instruments, uet (excluding derivatives): | | | | | | | | | Corporate obligations | \$
14,656 | Market comparable pricing | Comparability adjustment | -.71 % | 3.07% | .01 % | | | Collateralized loan obligations and asset-
backed securities (1) | 75,384 | Market comparable pricing | Comparability adjustment | -6.55 % | 13.36 % | -.37 % | | | Mortgage-backed securities | 954 | Market comparable pricing | Comparability adjustment | -6.25 % | -54 8% | -6.03 % | | | US government, US agency and
mllllicipal government obligations | 166 | Market comparable pricing | Comparability adjustment | -
% | -
% | -
% | | | Non-US sovereign debt securities | 15 | Market comparable pricing | Comparability adjustment | -
% | -
% | -
% | | | Equity securities (2) | 44,552 | Market comparable pricing | Comparability adjustment | -1.04 % | 14.84 % | 1.49 % | | | | 26,294 | Market comparable pricing | Multiples | 6.00 | 9.59 | 7.63 | | | Total financial instruments | \$
162,021 | | | | | | | | Derivatives, net: | | | | | | | | | Equity contracts | \$
(1) | Option pricing model | Volatility factor | 43.78 % | 43.78 % | 43.78 % | | | | | Option pricing model | Correlation factor | 97.00 % | 97.00% | 97.00 % | | | Total derivatives | \$
~ll | | | | | | | (1) Collaterized loan obligations and asset-backed securities are shown net of \$(1,560) of collaterized loan obligations and asset-backed securities sold, not yet purchased. (2) Equity securities are shown net of \$(57) of Equity securities sold, not yet purchased. The valuation techniques used for Level 3 assets and liabilities, as presented in the previous tables, ai·e described as follows: Market Comparable Pricing - Used to determine the fair value of ce1tain instmments by incorporating known inputs such as recent transaction prices, pending transactions, or prices of other similai· investments which require significant adjustment to reflect differences in instrument characteristics. Option Price Modeling - Generally used for instruments in which the holder has a contingent right or obligation based on the occmTence of a future event, such as the price of a referenced asset going above or below a predetermined strike price. Option pricing models estimate the likelihood of the specified event occurring by incorporating assumptions such as volatility estimates, p1ice of the underlying instrument and expected rate ofretutn. {21}------------------------------------------------ # (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) Use of these techniques requires determination of relevant inputs and assumptions, some of which represent significant unobservable inputs as indicated in the preceding tables. Accordingly, changes in these unobservable inputs may have a significant impact on fair value. Ce1tain of these unobservable inputs will (in isolation) have a directionally consistent impact on the fair value of the instnnnent for a given change in that input. Alternatively, the fair value of the instrnment may move in an opposite direction for a given change in another input. Where multiple inputs are used within the valuation technique of an asset or liability, a change in one input in a certain direction may be offset by an opposite change in another input having a potentially muted impact to the overall fair value of that paiticular instlument. Additionally, a change in one unobse1vable input may result in a change to another unobse1vable input that is, changes in ce1tain inputs are intenelated to one another, which may counteract or magnify the fair value impact. Significant unobse1vable inputs presented in the previous tables are those considered significant to the fair value of the Level 3 asset or liability. Unobse1vable inputs are considered to be significant, if by their exclusion, the fair value of the Level 3 asset or liability would be impacted by a predetennined percentage change or based on qualitative factors, such as nature of the instlument, type of valuation techniques used, and the significance of the unobse1vable inputs relative to other inputs used within the valuation. Following is a description of the significant unobse1vable inputs provided in the tables. Comparability adjustlnent - is an adjustment made to obse1ved market data, such as a transaction price in order to reflect dissimila1ities in underlying collateral, issuer, rating, or other factors used within a market valuation approach expressed as a percentage of an obse1ved price. Multiples - are financial ratios of comparable public companies, such as ratios of enterprise value or market value of equity to earnings before interest, depreciation, and amo1tization (EBITDA), revenue, net income or book value, adjusted to reflect dissimila1ities in operational, financial, or marketability to the comparable public company used in a market valuation approach. Volatility factor - is the extent of change in price an item is estimated to fluctuate over a specified period of time expressed as a percentage of relative change in price over a period over time. {22}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) # *Disclosures about Fair Value of Financial Assets and Liabilities* The table below is a summary of fair value estimates for financial assets and liabilities, excluding financial instruments recorded at fair value on a recurring basis, which ai·e included within the Assets and Liabilities Recorded at Fair Value on a Recmring Basis table included earlier in this Note. The carrying amounts in the following table are recorded on the Statement of Financial Condition under the indicated captions. | | | Estimated Fair Value Hierarchy | | | | |-----------------------------------------------------------|--------------------|--------------------------------|-------------|--------|-----------------------------------| | | Carrying
amount | Level 1 | Level 2 | Level3 | Total
estimated fail·
value | | Financial assets | | | | | | | Cash | \$
140,932 | 140,932 | | | 140,932 | | Cash segregated under federal and other regulations | 1,527,398 | 1,527,398 | | | 1,527,398 | | Secwities bo1rowed | 41,581,908 | | 41,581,908 | | 41,581,908 | | Secwities pm-chased under agreements to resell | 87,780,005 | | 87,780,005 | | 87,780,005 | | Receivable from broker-dealers and clearing organizations | 8,885,562 | | 8,885,562 | | 8,885,562 | | Receivable from customers, net | 10,841,539 | | 10,841,539 | | 10,841,539 | | Receivable from affiliates | 50,332 | | 50,332 | | 50,332 | | Financial liabilities | | | | | | | Secwities sold under agreements to repurchase | \$ 169,550,619 | | 169,550,619 | | 169,550,619 | | Secwities loaned | 9,324,897 | | 9,324,897 | | 9,324,897 | | Payable to customers | 16,113,030 | | 16,113,030 | | 16,113,030 | | Payable to broker-dealers and clearing organizations | 7,090,554 | | 7,090,554 | | 7,090,554 | | Payable to non-customers | 1,714,074 | | 1,714,074 | | 1,714,074 | | Payable to affiliates | 34,388 | | 34,388 | | 34,388 | | Bo1rowings | 15,528,490 | | 15,528,490 | | 15,528,490 | | Subordinated bo1rowings | 5,500,000 | | 5,500,000 | | 5,500,000 | There were no circumstances which required the Company to measure any assets or liabilities at fair value on a nonrecmTing basis as of December 31, 2025. #### **(10) Collateral Arrangements** We receive financial assets as collateral that we ai·e pe1mitted to sell or repledge. This collateral is obtained in connection **with** secmities purchased under resale agreements and securities boffowing transactions, customer margin loans, and derivative contracts. We may use this collateral in connection with securities sold under repurchase agreements and secmities lending transactions, de1ivative contracts, and short sales. At December 31, 2025, the fair value of this collateral received that we have a right to sell or repledge was \$218,590,820, of which \$188,762,608 were sold or repledged. At December 31, 2025, the Company pledged assets to counterparties, that had the right to sell or repledge, of\$101,201,518 and \$2,989,529 of assets to counterparties that did not have the right to sell or repledge. {23}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) # **(11) Property, Equipment and Leasehold Improvements** Property, equipment and leasehold improvements consist of the following at December 31, 2025: | Property and leasehold improvements | \$ | |-------------------------------------------------|-------------| | Prepaid hardware | 10,910 | | Communications and computer equipment | 939 | | Lease right of use asset | 440 | | | 12,289 | | Less: accumulated depreciation and amortization | 8,790 | | Total | \$
3,499 | # **(12) Transactions with Affiliated Parties** The following items present the Company's significant transactions with affiliated parties. # *(a) Securities Purchased Under Agreements to Resell and Securities Borrowed* The Company enters into securities purchased under agreements to resell transactions with affiliates, of which \$1,130,531 is outstanding at December 31, 2025. The agreements ai·e generally overnight transactions. Included in interest receivable at December 31, 2025, related to these transactions is \$9,818 due to affiliates. The Company also enters into securities borrowed transactions with affiliates, of which \$7,590,173 is outstanding at December 31, 2025. Included in interest receivable at December 31, 2025, related to these transactions is \$31,925 due from affiliates. # *(b) Securities Sold under Agreements to Repurchase and Securities Loaned* The Company enters into securities sold under agreements to repurchase transactions with affiliates, of which \$31,905 is outstanding at December 31, 2025. The agreements are generally overnight transactions. Included in accrued interest payable at December 31, 2025, from these agreements is \$645 due to affiliates. The Company also enters into securities loaned transactions with affiliates, of which \$4,177,592 were outstanding at December 31, 2025. Included in interest payable at December 31, 2025 from these transactions is \$9,396 due to affiliates. {24}------------------------------------------------ # (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) ### *(c) Services Provided by Affiliates to the Company* The Company is charged under an expense sharing agreement for management fees or expense allocations by various affiliate service providers which represent reimbursements for direct costs and general overhead costs incmTed by the affiliate for suppo1t se1vices to business lines of the Company. Se1vices under these anangements include information technology systems, supp01t and development; operations support; product supp01t; and general and administrative suppo1t se1vices. Allocation methodologies are customized by the type of product line being supp01ted. The Company is charged under expense sharing agreements for the use of office space. These agreements are reviewed on an annual basis. Payable to affiliates of \$34,388 at December 31, 2025 is related to expense reimbursements due to afliliates. ### *(d) Services Provided by the Company to Affiliates* The Company acts as an agent for WFC and its subsidiaries providing various se1vices. Receivables from affiliates of \$50,332 at December 31, 2025 is primarily due from Wells Fargo Bank, N.A. (WFBNA), an affiliated bank. # *(e) Interest Rate, Equity and Credit Default Swap Transactions* The Company has entered into interest rate swaps, options on interest rate swaps (swaptions), equity swaps, and credit default swaps transactions with WFBNA, to economically hedge its financial instmment positions. At December 31, 2025, the notional value of interest rate swaps are a net purchase of payments of fixed interest rates of \$5,721,311, the notional value of swaptions with the right to purchase of \$865,000, the notional value of equity swaps with a net buy of protection of \$605,386, and the notional value of credit default swaps with a net purchase of protection of \$1,020,000. The estimated fair values of the interest rate swaps, swaptions, equity swaps and credit default swaps at December 31, 2025, are \$78,177, (\$2,255), (\$531) and (\$37,682) respectively, which are included net in financial instmments owned in the Statement of Financial Condition. There was cash margin on deposit of \$41,403 with WFBNA and securities of \$188,721 held by the Company from WFBNA in supp01t of this activity at December 31, 2025. The Company also clears ce1tain interest rate swaps and futures for WFBNA as well as other affiliates. # *(/) Fails to Deliver and Fails to Receive* The Company entered into securities transactions with affiliates registered as brokers and/or dealers. At December 31, 2025, fails to deliver of \$3,761 and fails to receive of \$7,423 resulting from these transactions are included in receivables from and payable to broker-dealers and clearing organizations, respectively. {25}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) ### *(g) Subordinated Borrowings and Other Borrowings* The Company has in place lines of credit agreements with its affiliate, WFCH. The interest rate charged on those agreements is the daily Secured Overnight Funding Rate ("SOFR") with an additional premium stated in basis points ("bs pts"). Those agreements and the balances outstanding ai·e reflected in the below table as of December 31, 2025: | Desc1iption | Committed /
Uncommitted Unsecm·ed Notional | Secu1·ed / | | Outstanding
Balance | Inte1·est Rate | Date of
Agreement Date | Te1·mination | |-------------------|-----------------------------------------------|------------|--------------|------------------------|------------------------------|---------------------------|--------------| | Subordinated Loan | Committed | Unsecured | \$6,000,000 | | \$5,500,000 SOFR + 99 bs pts | 3/1/2025 | 3/ 1/2027 | | Line of Credit | Committed | Unsecured | 18,000,000 | | 8,000,000 SOFR + 82 bs pts | 11/19/2025 | 11/17/2028 | | Line of Credit | Uncommitted | Unsecured | 15,000,000 | | 7,300,000 SOFR + 72 bs pts | 11/19/2024 | 5/19/2027 | | Line of Credit | Uncommitted | Unsecured | 500,000 | | 228,490 SOFR + 106 bs pts | 3/7/2024 | 5/5/2027 | | | | | \$39,500,000 | \$21,028,490 | | | | The Company had interest payables of \$86,435 to WFCH as of December 31, 2025, which are reflected in bonowings on the Statement of Financial Condition. For the Company's subordinated loan, to the extent that such bonowings are required for the Company's continued compliance with minimum net capital requirements, they may not be repaid. # *(h) Employee Benefits, Deferred Compensation and Stock Plans* # *Defined Contribution Retirement Plan* WFC sponsors a qualified defined contribution retirement plan, the Wells Fai·go & Company 40l(k) Plan (40l(k) Plan). Under the 40l(k) Plan, after 1 month of service, eligible employees may contribute up to 50% of their certified compensation, subject to statutory limits. With some exceptions, employees with one year of service who ai·e employed in a benefit-eligible position on December 15 are eligible to receive the matching contributions, which are dollar for dollar up to 6% of certified compensation. The 40l(k) Plan also includes a non-discretionary base contlibution of 1 % of certified compensation for employees with annual compensation of less than \$75,000. Eligible employees are 100% vested in their matching conti·ibutions and base contributions after three years of service. Base and matching contributions are made annually at year-end. The 40l(k) Plan provides installment payment options to the existing lump sum and paitial lump sum distribution options as well as to offer optional investment advisory services. # *Deferred Compensation and Stock Plans* The Company participates in WFC's unfunded defened compensation plan in which a select group of management or highly compensated individuals are participants, as defined. Awards consist of long-term defened cash awards, restricted stock rights (RSRs) and performance share awards (PSAs), which may be granted periodically to certain employees. {26}------------------------------------------------ (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) The defened po1tion of the award further takes the f01m of RSRs, PSAs and Long Te1m Cash. Defened cash incentive awards and PSAs generally vest over a three-year period while, RSRs generally vest over three to five years, during which time the holder may be entitled to receive additional RSRs, PSAs or cash payments equal to the cash dividends that would have been paid had the RSRs or PSAs been issued and outstanding shares of common stock. RSRs and PSAs granted as dividend equivalents are subject to the same vesting schedule and conditions as the underlying award. # *Other Benefits* WFC provides health care and other benefits for ce1tain active and retired employees. The Company rese1ves the right to amend, modify or te1minate any of the benefits at any time. # **(13) Derivatives** The Company is a pa1ty to derivative financial instruments and commitments in the normal course of business to meet the financing needs of customers, conduct trading activities, and manage market risks. These derivative financial instruments include futures, options, interest rate swaps, swaptions, credit default swaps, equity swaps, f01ward commitments to purchase and sell securities, securities purchased and sold on a when issued basis (when issued securities), and finn unde1writing commitments. These instruments and commitments involve, to va1ying degrees, elements of credit and market risk. Credit 1isk is the possibility that a loss may occur because a patty to a transaction fails to perfo1m according to the te1ms of the contract. Market risk is the possibility that a change in interest rates, the underlying assets, indices or a combination of these factors will cause an unfavorable change in the value of a financial instrument. The Company controls the credit risk arising from these instruments and commitments through its credit approval process and through the use of risk control limits and monitoring procedures. It evaluates each customer's or other broker dealer's creditwo1thiness on a case by case basis. If collateral is deemed necessa1y to reduce credit risk, the amount and nature of the collateral obtained is based on management's credit evaluation of the other paity. Based on the Company's assessment of each of its counterpaities, additional collateral was not required by the Company at December 31, 2025. The notional or contractual amounts of derivative financial instruments exceed the probable loss that could a1ise from counterpa1ty default or market related risks. The fair value of de1ivative financial instruments represents p1incipally the estimated unrealized gain (asset) or loss (liability) and is recorded in financial instluments owned, at fair value or financial instruments sold, not yet purchased in the Statement of Financial Condition. The market risk associated with u·ading financial instmments, including derivatives, the p1ices of which ai·e constantly fluctuating, is managed by imposing limits as to the type, amounts, and degree of risk that u·aders may unde1take. These limits, approved by senior management and the risk positions ofu·aders, are reviewed on a daily basis to monitor compliance with the limits. {27}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) As of December 31, 2025, the following were the notional or contractual amounts of derivative financial instruments and their related fair values: | | | Notional or | Fair value | | | |--------------------------------------------|----|-----------------------|----------------------|--------------------------|--| | Derivative instruments | | contractual
amount | Asset
derivatives | Liability
derivatives | | | Interest rate contracts | \$ | 770,945,362 | 1,031,574 | (1,203,262) | | | Commodity contracts | | 737 | | | | | Equity contracts | | 106,852,341 | 1,864,845 | (1,652,305) | | | Foreign exchange contracts | | 2,386,548 | 2,068 | (12,361) | | | Credit contracts -
protection sold | | 97,012 | 3,474 | (2,757) | | | Credit contracts -
protection purchased | | 1,402,614 | 3,626 | (41,853) | | | Sub-total | | 881,684,614 | 2,905,587 | (2,912,538) | | | Netting (1) | | | (2,445,136) | 2,653,084 | | | Total \$ | | 881,684,614 | 460,451 | {259,4541 | | amounts
recognized | Gross
amounts off
set in
Statement of
Financial
Condition
(1) | Net amounts
in Statement
of Financial
Condition
(2) | |------------------------------------------------|--------------------------------|---------------------------------------------------------------------------------|-----------------------------------------------------------------| | De1ivative assets | | | | | Interest rate contrncts | \$
1,031,574 | (784,153) | 247,421 | | Equity contracts
Foreign exchange contracts | 1,864,845
2,068 | (1,651,815)
(2,068) | 213,030 | | Credit contracts - protection sold | 3,474 | (3,474) | | | Credit contracts - protection purchased | 3,626 | (3,626) | | | | \$
2,905,587 | (2,445,136) | 460,451 | | Non-cash collateral (3) | | | (6,242) | | Total De1ivative assets, net | | | \$==4=5=4=20=9= | | Derivative liabilities | | | | | Interest rate contracts | \$
(1,203,262) | 944,805 | (258,457) | | Equity contracts | (I ,652,305) | 1,652,202 | (103) | | Foreign exchange contracts | (12,361) | 12,189 | (172) | | Credit contracts - protection sold | (2,757) | 2,628 | (129) | | Credit contracts - protection purchased | (41,853) | 41,260 | (593) | | | \$
(2,912,538) | 2,653,084 | (259,454) | | Non-cash collateral (3) | | | 26,423 | | Total De1ivative liabilities, net | | | \$==(=23=3=,0=3=1) | (1) Represents amounts with counterparties subject to enforceable master netting arrangements that have been offset in the Statement of Financial Condition, including related cash collateral and portfolio level counterparty valuation adjustments. There were no counterparty valuation adjustments related to derivative assets or derivative liabilities at December 31, 2025. Additionally, cash collateral amounts of\$46,590 and \$254,939 were netted against derivative assets and liabilities, respectively, December 31, 2025. (2) Net derivative assets are classified in financial instruments owned, at fair value, and net derivative liabilities are classified in financial instruments sold, not yet pm·chased, at fair value, in the Statement of Financial Condition. (3) Represents non-cash collateral pledged and received against derivative assets and liabilities with the same counterparty that are subject to enforceable master netting arrangements. U.S. GAAP does not permit netting of such non-cash collateral balances in the Statement ofFinancial Condition, but requires disclosure of these amounts. {29}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) #### *Credit Derivatives* The Company uses credit derivatives to manage exposure to credit risk related to its customer accommodation and market making activity. This may include protection purchased to offset securities owned or sold protection. This credit risk management provides an ability to recover a significant portion of any amounts that would be paid under the credit derivatives written by the Company. The majority of the credit contracts are executed with an affiliate, WFBNA, and the Company would be required to perform under the noted credit derivatives in the event of a default by the referenced obligors. Events of default include events such as bankruptcy, capital restructuring or lack of principal and/or interest payment. In certain cases, other triggers may exist, such as the credit downgrade of the referenced obligors. The following table provides details on credit contr·acts where protection was sold as of December 31, 2025. | | Notional amount | | | | |--------------------------|-----------------------------------|-------------------------|---|--| | | | Protection
sold-non | | | | | Protection
sold | investment
grade (1) | | | | Credit default swaps | \$
97,102 | | 0 | | | Total credit derivatives | \$
97 l 02
================ | | 0 | | (1) The Protection sold - non-investment grade category is based on the po1tion of the maximum loss exposure for which there is a greater risk that the Company will be required to make a payment or perform under the credit derivative. The current status of the risk of payment or performance being required is considered high if the underlying assets under the credit derivative have an external rating that is below investment grade or an internal credit default grade that would be equivalent to below investment grade external rating. It is important to note that the Protection sold - non-investment grade represents the amount of exposure which would be incurred under an assumed hypothetical circumstance and, accordingly, this disclosure is not an indication of expected loss for which payment is of a high likelihood. Such payment may not result in a loss. As such, the Protection sold non-investment grade column is not an indication ofloss probability. #### **(14) Guarantees, Commitments, and Contingent Liabilities** #### *Undenvriting Commitments* In the nonnal course of business, the Company enters into debt and equity underwriting commitments. There were no transactions relating to such underwriting commitments open at December 31, 2025. #### *Litigation* The Company has been named as a defendant in various legal actions arising from its normal business activities, and many of those proceedings expose the Company to potential financial loss. We establish accruals for legal actions when potential losses associated with the actions become probable and the costs can be reasonably estimated. For such accruals, we record the amount we consider to be the best estimate within a range of potential losses that are both probable and estimable; however, if we cannot determine a best estimate, then we record the low end of the range of those potential losses. The actual costs of {30}------------------------------------------------ (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) resolving legal actions may be substantially higher or lower than the amounts accrned for those actions. Based on inf01mation currently available, advice of counsel, available insurance coverage and established reserves, the Company believes that the eventual outcome of the actions against it will not, individually or in the aggregate, have a material adverse effect on the Company's financial position. However, it is possible that the ultimate resolution of a matter, if unfavorable, may be material to the Company's Statement of Financial Condition for any paiticular pe1iod. ### *Exchange and Clearing House Guarantees* The Company is a member of exchanges and clearing houses that the Company uses to clear its trades and those of the Company's customers. It is common that all members in these organizations are required to collectively guarantee the perfonnance of other members. The Company's obligations under the guarantees are based on a fixed amount or a multiple of the collateral we are required to maintain with these organizations. The Company has not recorded a liability for these anangements because we believe the likelihood of loss is remote. The maximum exposure to loss represents the estimated loss that would be incwTed under an assumed hypothetical circumstance, despite what it believes is an extremely remote possibility, where the value of our interests and any associated collateral declines to zero. As of December 31, 2025, the maximum potential loss related to our clearing house anangements is \$17,889,316. The Company has deposited \$829,116 in cash with clearing organizations. Additionally, the Company has pledged collateral amounting to \$3,755,926 to clea1ing organizations. The Company clears transactions on behalf of its clients through vaiious clearing houses, and the Company stands behind the perfonnance of its clients on such trades. The Company mitigates its exposure to loss in the event of a client default by requiting that clients provide appropriate amounts of mai·gin at the inception and throughout the life of the transaction. The Company may cease providing clearing services to clients if they do not adhere to theil· obligations under the cleating agreement. It is difficult to estimate the Company's maximum exposure under such transactions, as this would requil·e an assessment of transactions that clients may execute in the future. The Company manages the exposure through setting credit limits for clients and maintaining te1mination 1ight over cleaiing contracts. However, based upon historical experience, the Company believes it is unlikely that it will have to make any material payments under these anangements and the 1isk of loss is expected to be remote. The Company has c01mnitments to enter into resale and securities b01Towing agreements, as well as repurchase and securities lending agreements, with ce1tain counterpaities, including central cleai·ing organizations. The amount of our unfunded contractual commitments for resale and secwities bo1rnwing agreements at December 31, 2025 is \$6,944,861. The amount of our unfunded contractual commitments for repurchase and secwities lending agreements at December 31, 2025 is \$3,209,116. # *Other Contingencies* The Company introduces ce1tain of its customer transactions to an affiliated cleaiing broker, WFCS, with whom it has a conespondent relationship for cleai·ance and deposit01y se1vices in accordance with the te1ms of the clearance agreement. In connection therewith, the Company has agreed to indemnify WFCS for credit losses that WFCS may sustain as a result of the failure of the Company's customers to satisfy {31}------------------------------------------------ (An Indirect Wholly-Owned Subsidia1y of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollars in thousands) their obligations in connection with their secmities transactions. As of December 31, 2025, substantially all customer obligations were collateralized by securities with a market value in excess of the obligations. Some contracts that the Company enters into in the n01mal course of business include indemnification provisions that obligate the Company to make payments to the counte1paity or others in the event ce1tain events occur. The contingencies generally relate to the changes in the value of underlying assets, liabilities, or equity securities or upon the occmTence of events, such as an adverse litigation judgment or an adverse inte1pretation of the tax law. The indemnification clauses are often standard contractual te1ms and were entered into in the n01mal course of business based on an assessment that the 1isk of loss would be remote. Since there are no stated or notional amounts included in the indemnification clauses and the contingencies tJ.igge1ing the obligation to indemnify have not occmTed and ai·e not expected to occur, the Company is not able to estimate the maximum potential amount of future payments under these indemnification clauses. There are no amounts reflected in the Statement of Financial Condition as of December 31, 2025, related to these indemnifications. ### **(15) Securities Financing Activities** The Company enters into resale and repurchase agreements and securities boffowing and lending agreements (collectively, "securities financing activities") p1ima1ily to fmance invento1y positions, acquire securities to cover sho1t trading positions, accommodate customers' financing needs, and settle other securities obligations. The majo1ity of secmities financing activities involve high quality, liquid securities such as U.S. Treasmy securities and government agency securities, and to a lesser extent, less liquid securities, including equity securities, c01porate bonds and asset-backed securities. These transactions are accounted for as collateralized fmancings which are typically received or pledged securities as collateral. These financing tt·ansactions generally do not have mate1ial credit risk given the collateral provided and the related monitoring processes. # *Offsetting of resale and repurchase agreements and securities borrowing and lending agreements* The following table presents resale and repurchase agreements subject to master repurchase agreements (MRA) and secmities bo1rnwing and lending agreements subject to master securities lending agreements (MSLA). The Company accounts for ti·ansactions subject to these agreements as collateralized fmancings, and those with a single counte1pa1ty are presented net on the Statement of Financial Condition, provided ce1tain crite1ia are met that pe1mit netting. Most transactions subject to these agreements do not meet those criteria and thus ai·e not eligible for Statement of Financial Condition netting. There were no securities b01rnwing or lending agreements subject to MSLAs that were eligible for netting. While these agreements are typically over-collateralized, U.S. GAAP requires disclosure in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each {32}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) counterparty: | Assets: | | |---------------------------------------------------------------------------------------------------------------------------|-----------------------------| | Resale and securities borrowings agreements | | | Gross amounts recognized | \$
161,483,811 | | Gross amounts offset in Statement of Financial Condition (1) | (32,121,898) | | Net amounts in Statement of Financial Condition (2) | 129,361,913 | | Collateral not recognized in Statement of Financial Condition (3) | (128,247,836) | | Net Amount (4) | \$ =========1,=11=4=,0=7=7= | | Liabilities: | | | Repurchase and securities lending agreements | | | Gross amounts recognized | \$
210,997,414 | | Gross amounts offset in Statement of Financial Condition (1) | (32,121,898) | | Net amounts in the Statement of Financial Condition (5) | 178,875,516 | | Collateral pledged but not netted in Statement of Financial Condition (6) | (178,782,662) | | Net Amount (7) | \$
92,854
=========== | | (1) Represents recognized amount ofresale and repurchase agreements with counteI]>arties subject to enforceable MRAs that | | have been offset in the Statement of Financial Condition. (2) At December 31, 2025, includes \$87,780,005, classified on our Statement of Financial Condition in securities purchased under agreements to resell, and \$41,581,908 in securities borrowed. (3) Represents the fair value of collateral we have received under enforceable MRAs or MSLAs, limited for table presentation purposes to the amount of the recognized asset due from each countel]larty. ( 4) Represents the amount of our exposure that is not collateralized and/or is not subject to enforceable MRA. (5) At December 31, 2025, includes \$169,550,619, classified on our Statement of Financial Condition in securities sold under agreements to repurchase, and \$9,324,897 in securities loaned. (6) Represents fair value of collateral we have pledged, related to enforceable MRAs or MSLAs, limited for table presentation purposes to the amount of the recognized liability owed to each countel]larty. (7) Represents the amount of our exposure that is not covered by pledged collateral and/or is not subject to an enforceable MRAorMSLA. #### *Repurchase and securities lending agreements* Securities sold under repurchase agreements and securities lending aii:angements ai·e effectively shortterm collateralized bon-owings. In these transactions, cash is received in exchange for transferring securities as collateral and an obligation is recognized to reacquire the securities for cash at the transaction's maturity. These types of transactions create risks, including (I) the counterpaity may fail to return the securities at maturity; (2) the fair value of the securities transfened may decline below the amount of our obligation to reacquire the securities, and therefore create an obligation for us to pledge additional amounts; and (3) the counterparty may accelerate the maturity on demand, requiring the Company to reacquire the security prior to contractual maturity. The Company attempts to mitigate these risks by the fact that the majority of our securities financing activities involve highly liquid securities; we underwrite and monitor the financial strength of our counterparties; we monitor the fair value of collateral {33}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) pledged relative to contractually required repurchase amounts; and we monitor that our collateral is properly returned through the clearing and settlement process in advance of our cash payment. The following table provides the underlying collateral types of our gross obligations under repurchase and securities lending agreements. | | Total Gross
Obligation | |----------------------------------------------------------------------------------------------------------------|-----------------------------------| | Repurchase agreements: | | | Corporate obligations | \$
13,532,964 | | Asset-backed secmities | 3,931,001 | | Mm1gage-backed secmities | 99,272,514 | | U.S. government, U.S. agency and municipal government obligations | 79,104,847 | | Equity securities (1) | 3,084,468 | | Other | 2,746,723 | | Total repmchases | 201,672,517 | | Securities lending: | | | Corporate obligations | \$
1,932,477 | | Collateralized loan obligations and asset-backed securities | | | Mm1gage-backed secmities | | | U.S. government, U.S. agency and municipal government obligations | 22,516 | | Equity securities (1) | 7,357,631 | | Other | 12,273 | | Total secmities lending | 9,324,897 | | Total repmchases and securities lending | \$
210,997,414
============ | | (1) Equity securities are generally exchange traded and either re-hypothecated under margin lending agreements | | or obtained through contemporaneous secmities bmrnwing transactions with other counte1pa1.1ies. The following table provides the contractual maturities of gross obligations under repurchase and securities lending agreements. {34}------------------------------------------------ # (An Indirect Wholly-Owned Subsidiaiy of Wells Fargo & Company) Notes to Statement of Financial Condition Year Ended December 31, 2025 (Dollai·s in thousands) | | Ovel'night/
Continuous | Upto 30 days | 30-90 days | >90 days | Total Gl'OSS
Obligation | |-----------------------|---------------------------|--------------|------------|------------|----------------------------| | Repurchase agreements | \$
114,751,314 | 42,277,203 | 24,670,000 | 19,974,000 | 201,672,517 | | Securities lending | 5,673,897 | | | 3,651,000 | 9,324,897 | | Total (1) \$ | 1201
4251
211 | 4212771203 | 2416701000 | 2316251000 | 21019971414 | (1) Repurchase and securities lending transactions are primarily conducted under enforceable master lending agreements that allow either party to terminate the transaction on demand. These transactions have been reported as continuous obligations unless the MRA or MSLA has been modified with an overriding agreement that specifies an alternative termination date. # **(16) Net Capital** The Company is subject to the SEC's Uniform Net Capital Rule (Rule 15c3-l) and the Commodities Futures Trading Commission (CFTC) Regulation 1.17 which requires the maintenance of minimum net capital. Under SEC Rule 15c3-l, the Company has elected to use the alternative method, permitted by the rule, which requires that the Company maintain minimum net capital, as defined, equal to the greater of \$1,500 or 2% of combined aggregate debit balances aiising from customer transactions, as defined. Under CFTC Regulation 1. 17, the Company is required to maintain an adjusted net capital equivalent to the greater of \$1,500 or \$1,911,020, which was 8% of the total risk mai·gin requirements for all positions caiTied in customer and non-customer accounts plus additional net capital requirements related to certain reverse repurchase agreements. At December 31, 2025, the Company had net capital of \$10,740,872, which was 41.53% of aggregate debit items and \$8,829,852 in excess of the minimum net capital requirement. # **(17) Subsequent Events** The Company has evaluated the effects of events that have occmTed subsequent to December 31, 2025 through February 27, 2026, the date the Company issued its financial statements. Dming this period, there have been no material subsequent events that would require recognition or disclosme in the financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.