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As Of Filer Filing For·On·As Docs:Size 7/29/19 Bank of America Corp/DE 10-Q 6/30/19 141:64M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 8.48M 2: EX-3.A Articles of Incorporation/Organization or Bylaws HTML 2.25M 3: EX-10.B Material Contract HTML 106K 4: EX-31.A Certification -- §302 - SOA'02 HTML 47K 5: EX-31.B Certification -- §302 - SOA'02 HTML 47K 6: EX-32.A Certification -- §906 - SOA'02 HTML 42K 7: EX-32.B Certification -- §906 - SOA'02 HTML 42K 14: R1 Cover Page HTML 144K 15: R2 Consolidated Statement of Income HTML 126K 16: R3 Consolidated Statement of Comprehensive Income HTML 71K 17: R4 Consolidated Balance Sheet HTML 165K 18: R5 Consolidated Balance Sheet (Parenthetical) HTML 96K 19: R6 Consolidated Statement of Changes in Shareholders' HTML 131K Equity 20: R7 Consolidated Statement of Cash Flows HTML 166K 21: R8 Summary of Significant Accounting Principles HTML 54K 22: R9 Net Interest Income and Noninterest Income HTML 157K 23: R10 Derivatives HTML 904K 24: R11 Securities HTML 535K 25: R12 Outstanding Loans and Leases HTML 1.19M 26: R13 Allowance for Credit Losses HTML 269K 27: R14 Securitizations and Other Variable Interest HTML 465K Entities 28: R15 Goodwill and Intangible Assets HTML 61K 29: R16 Leases HTML 278K 30: R17 Federal Funds Sold or Purchased, Securities HTML 249K Financing Agreements, Short-term Borrowings and Restricted Cash 31: R18 Commitments and Contingencies HTML 158K 32: R19 Shareholders' Equity HTML 67K 33: R20 Earnings Per Common Share HTML 93K 34: R21 Accumulated Other Comprehensive Income (Loss) HTML 198K 35: R22 Fair Value Measurements HTML 1.08M 36: R23 Fair Value Option HTML 182K 37: R24 Fair Value of Financial Instruments HTML 91K 38: R25 Business Segment Information HTML 731K 39: R26 Summary of Significant Accounting Principles HTML 62K (Policies) 40: R27 Net Interest Income and Noninterest Income HTML 156K (Tables) 41: R28 Derivatives (Tables) HTML 1.01M 42: R29 Securities (Tables) HTML 527K 43: R30 Outstanding Loans and Leases (Tables) HTML 1.19M 44: R31 Allowance for Credit Losses (Tables) HTML 269K 45: R32 Securitizations and Other Variable Interest HTML 440K Entities (Tables) 46: R33 Goodwill and Intangible Assets (Tables) HTML 56K 47: R34 Leases (Tables) HTML 158K 48: R35 Federal Funds Sold or Purchased, Securities HTML 315K Financing Agreements, Short-term Borrowings and Restricted Cash (Tables) 49: R36 Commitments and Contingencies (Tables) HTML 120K 50: R37 Shareholders' Equity (Tables) HTML 55K 51: R38 Earnings Per Common Share (Tables) HTML 89K 52: R39 Accumulated Other Comprehensive Income (Loss) HTML 200K (Tables) 53: R40 Fair Value Measurements (Tables) HTML 1.54M 54: R41 Fair Value Option (Tables) HTML 179K 55: R42 Fair Value of Financial Instruments (Tables) HTML 90K 56: R43 Business Segment Information (Tables) HTML 731K 57: R44 Summary of Significant Accounting Principles HTML 58K (Details) 58: R45 Net Interest Income and Noninterest Income HTML 125K (Details) 59: R46 Derivatives - 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Significant Assumptions (Details) HTML 62K 75: R62 Securities - Maturities of Debt Securities Carried HTML 185K at Fair Value and Held-to-maturity Debt Securities (Details) 76: R63 Outstanding Loans and Leases - Past Due (Details) HTML 295K 77: R64 Outstanding Loans and Leases - Nonperforming, HTML 70K Narrative (Details) 78: R65 Outstanding Loans and Leases - Nonperforming, HTML 89K Credit Quality (Details) 79: R66 Outstanding Loans and Leases - Consumer Real HTML 101K Estate - Credit Quality Indicators (Details) 80: R67 Outstanding Loans and Leases - Credit Card and HTML 71K Other Consumer - Credit Quality Indicators (Details) 81: R68 Outstanding Loans and Leases - Commercial - Credit HTML 94K Quality Indicators (Details) 82: R69 Outstanding Loans and Leases - Consumer Real HTML 112K Estate - Impaired Loans (Details) 83: R70 Outstanding Loans and Leases - Consumer Real HTML 57K Estate - TDRs Entered into During the Period (Details) 84: R71 Outstanding Loans and Leases - Consumer Real HTML 56K Estate - Modification Programs (Details) 85: R72 Outstanding Loans and Leases - Consumer Real HTML 56K Estate - TDRs Entering Payment Default That Were Modified During the Preceding 12 Months (Details) 86: R73 Outstanding Loans and Leases - Credit Card and HTML 83K Other Consumer - Impaired Loans (Details) 87: R74 Outstanding Loans and Leases - Credit Card and HTML 65K Other Consumer - TDRs by Program Type (Details) 88: R75 Outstanding Loans and Leases - Credit Card and HTML 58K Other Consumer - TDRs Entered into During the Period (Details) 89: R76 Outstanding Loans and Leases - Credit Card and HTML 52K Other Consumer - TDRs Entered into During the Period, Narrative (Details) 90: R77 Outstanding Loans and Leases - Commercial Loans - HTML 105K Impaired Loans (Details) 91: R78 Outstanding Loans and Leases - Loans Held-for-Sale HTML 48K (Details) 92: R79 Allowance for Credit Losses - Allowance by HTML 94K Portfolio Segment (Details) 93: R80 Allowance for Credit Losses - Allowance and HTML 101K Carrying Value by Portfolio Segment (Details) 94: R81 Securitizations and Other Variable Interest HTML 68K Entities - First Lien Mortgage Securitizations (Details) 95: R82 Securitizations and Other Variable Interest HTML 118K Entities - First Lien Mortgages VIE (Details) 96: R83 Securitizations and Other Variable Interest HTML 144K Entities - Home Equity Loan, Credit Card and Other Asset-backed VIEs (Details) 97: R84 Securitizations and Other Variable Interest HTML 70K Entities - Other Asset-backed Securitizations, Additional Information (Details) 98: R85 Securitizations and Other Variable Interest HTML 109K Entities - Other Variable Interest Entities (Details) 99: R86 Securitizations and Other Variable Interest HTML 85K Entities - Other Variable Interest Entities, Additional Information (Details) 100: R87 Goodwill and Intangible Assets - Schedule of HTML 54K Goodwill (Details) 101: R88 Goodwill and Intangible Assets - Additional HTML 51K Information (Details) 102: R89 Leases - Lessor Arrangements (Details) HTML 54K 103: R90 Leases - Lessee Arrangements (Details) HTML 48K 104: R91 Leases - Lease Cost and Supplemental Information HTML 52K (Details) 105: R92 Leases - Maturity of Lessor and Lessee HTML 108K Arrangements (Details) 106: R93 Leases - Maturity Analysis Narrative (Details) HTML 57K 107: R94 Federal Funds Sold or Purchased, Securities HTML 65K Financing Agreements, Short-term Borrowings and Restricted Cash - Schedule (Details) 108: R95 Federal Funds Sold or Purchased, Securities HTML 85K Financing Agreements, Short-term Borrowings and Restricted Cash - Securities Financing Agreements (Details) 109: R96 Federal Funds Sold or Purchased, Securities HTML 66K Financing Agreements, Short-term Borrowings and Restricted Cash - Remaining Contractual Maturity (Details) 110: R97 Federal Funds Sold or Purchased, Securities HTML 67K Financing Agreements, Short-term Borrowings and Restricted Cash - Class of Collateral Pledged (Details) 111: R98 Federal Funds Sold or Purchased, Securities HTML 43K Financing Agreements, Short-term Borrowings and Restricted Cash - Restricted Cash (Details) 112: R99 Commitments and Contingencies - Credit Extension HTML 54K Commitments Narrative (Details) 113: R100 Commitments and Contingencies - Credit Extension HTML 83K Commitments (Details) 114: R101 Commitments and Contingencies - Other Commitments HTML 63K (Details) 115: R102 Commitments and Contingencies - Other Guarantees HTML 83K (Details) 116: R103 Commitments and Contingencies - Representations HTML 43K and Warranties Obligations and Corporate Guarantees (Details) 117: R104 Commitments and Contingencies - Litigation and HTML 54K Regulatory Matters (Details) 118: R105 Shareholders' Equity - Declared Quarterly Cash HTML 44K Dividends on Common Stock (Details) 119: R106 Shareholders' Equity - Common Stock Narrative HTML 80K (Details) 120: R107 Shareholders' Equity - Preferred Stock Narrative HTML 62K (Details) 121: R108 Earnings Per Common Share - Basic and Diluted HTML 71K (Details) 122: R109 Earnings Per Common Share - Narrative (Details) HTML 56K 123: R110 Accumulated Other Comprehensive Income (Loss) - HTML 82K Change in Accumulated OCI (Details) 124: R111 Accumulated Other Comprehensive Income (Loss) - HTML 111K Changes in OCI Components Pre- and After-tax (Details) 125: R112 Fair Value Measurements - Recurring Fair Value HTML 252K (Details) 126: R113 Fair Value Measurements - Level 3 Reconciliation HTML 272K (Details) 127: R114 Fair Value Measurements - Recurring Fair Value HTML 257K Inputs (Details) 128: R115 Fair Value Measurements - Nonrecurring Fair Value HTML 76K (Details) 129: R116 Fair Value Measurements - Nonrecurring Fair Value HTML 60K Inputs (Details) 130: R117 Fair Value Option - Elections (Details) HTML 88K 131: R118 Fair Value Option - Gains (Losses) Relating to HTML 73K Assets and Liabilities (Details) 132: R119 Fair Value of Financial Instruments (Details) HTML 67K 133: R120 Business Segment Information - Narrative (Details) HTML 41K 134: R121 Business Segment Information - Results of Business HTML 99K Segments and All Other (Details) 135: R122 Business Segment Information - Business Segment HTML 61K Reconciliations (Details) 136: R123 Business Segment Information - Segments' Total HTML 51K Assets (Details) 137: R124 Business Segment Information - Noninterest Income HTML 192K by Business Segment and All Other (Details) 139: XML IDEA XML File -- Filing Summary XML 271K 13: XML XBRL Instance -- bac-630201910xq_htm XML 23.04M 138: EXCEL IDEA Workbook of Financial Reports XLSX 256K 9: EX-101.CAL XBRL Calculations -- bac-20190630_cal XML 581K 10: EX-101.DEF XBRL Definitions -- bac-20190630_def XML 2.54M 11: EX-101.LAB XBRL Labels -- bac-20190630_lab XML 4.18M 12: EX-101.PRE XBRL Presentations -- bac-20190630_pre XML 2.98M 8: EX-101.SCH XBRL Schema -- bac-20190630 XSD 486K 140: JSON XBRL Instance as JSON Data -- MetaLinks 746± 1.24M 141: ZIP XBRL Zipped Folder -- 0000070858-19-000042-xbrl Zip 1.55M
Document |
Title
of each class | Trading Symbol(s) | Name of each exchange on which registered |
i Common Stock, par value $0.01 per share | i BAC | i New
York Stock Exchange |
i Depositary Shares, each representing a 1/1,000th interest in a share | i BAC PrE | i New
York Stock Exchange |
of Floating Rate Non-Cumulative Preferred Stock, Series E | ||
i Depositary Shares, each representing a 1/1,000th interest in a share | i BAC
PrW | i New York Stock Exchange |
of 6.625% Non-Cumulative Preferred Stock, Series W | ||
i Depositary
Shares, each representing a 1/1,000th interest in a share | i BAC PrY | i New York Stock Exchange |
of
6.500% Non-Cumulative Preferred Stock, Series Y | ||
i Depositary Shares, each representing a 1/1,000th interest in a share | i BAC PrC | i New
York Stock Exchange |
of 6.200% Non-Cumulative Preferred Stock, Series CC | ||
i Depositary Shares, each representing a 1/1,000th interest in a share | i BAC
PrA | i New York Stock Exchange |
of 6.000% Non-Cumulative Preferred Stock, Series EE | ||
i Depositary
Shares, each representing a 1/1,000th interest in a share | i BAC PrB | i New York Stock Exchange |
of
6.000% Non-Cumulative Preferred Stock, Series GG | ||
i Depositary Shares, each representing a 1/1,000th interest in a share | i BAC PrK | i New
York Stock Exchange |
of 5.875% Non-Cumulative Preferred Stock, Series HH | ||
i 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L | i BAC PrL | i New
York Stock Exchange |
i Depositary Shares, each representing a 1/1,200th interest in a share | i BML PrG | i New
York Stock Exchange |
of Bank of America Corporation Floating Rate | ||
Non-Cumulative Preferred Stock, Series 1 |
1 Bank of America |
Title
of each class | Trading Symbol(s) | Name of each exchange on which registered |
i Depositary Shares, each representing a 1/1,200th interest in a share | i BML
PrH | i New York Stock Exchange |
of Bank of America Corporation Floating Rate | ||
Non-Cumulative Preferred Stock, Series 2 | ||
i Depositary
Shares, each representing a 1/1,200th interest in a share | i BML PrJ | i New York Stock Exchange |
of
Bank of America Corporation Floating Rate | ||
Non-Cumulative Preferred Stock, Series 4 | ||
i Depositary Shares, each representing a 1/1,200th interest in a share | i BML
PrL | i New York Stock Exchange |
of Bank of America Corporation Floating Rate | ||
Non-Cumulative Preferred Stock, Series 5 | ||
i Floating
Rate Preferred Hybrid Income Term Securities of BAC Capital | i BAC/PF | i New York Stock Exchange |
Trust
XIII (and the guarantee related thereto) | ||
i 5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities | i BAC/PG | i New
York Stock Exchange |
of BAC Capital Trust XIV (and the guarantee related thereto) | ||
i Income Capital Obligation Notes initially due December 15, 2066 of | i MER
PrK | i New York Stock Exchange |
Bank of America Corporation | ||
i Senior
Medium-Term Notes, Series A, Step Up Callable Notes, due | i BAC/31B | i New York Stock Exchange |
November
28, 2031 of BofA Finance LLC (and the guarantee | ||
of the Registrant with respect thereto) | ||
i Depositary Shares, each representing 1/1,000th interest in a share of | i BAC
PrM | i New York Stock Exchange |
5.375% Non-Cumulative Preferred Stock, Series KK |
i Large accelerated filer | ☑ | Accelerated
filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | i ☐ |
Bank
of America 2 |
Item
1. Financial Statements | Page | |
Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
1 Bank
of America |
Bank
of America 2 |
3 Bank of America |
Table
1 | Summary Income Statement and Selected Financial Data | |||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(Dollars in millions, except per share information) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Income statement | ||||||||||||||||
Net
interest income | $ | 12,189 | $ | 11,828 | $ | 24,564 | $ | 23,597 | ||||||||
Noninterest
income | 10,895 | 10,721 | 21,524 | 22,022 | ||||||||||||
Total revenue, net of interest expense | 23,084 | 22,549 | 46,088 | 45,619 | ||||||||||||
Provision
for credit losses | 857 | 827 | 1,870 | 1,661 | ||||||||||||
Noninterest expense | 13,268 | 13,224 | 26,492 | 27,066 | ||||||||||||
Income before
income taxes | 8,959 | 8,498 | 17,726 | 16,892 | ||||||||||||
Income tax expense | 1,611 | 1,714 | 3,067 | 3,190 | ||||||||||||
Net
income | 7,348 | 6,784 | 14,659 | 13,702 | ||||||||||||
Preferred stock dividends | 239 | 318 | 681 | 746 | ||||||||||||
Net
income applicable to common shareholders | $ | 7,109 | $ | 6,466 | $ | 13,978 | $ | 12,956 | ||||||||
Per
common share information | ||||||||||||||||
Earnings | $ | 0.75 | $ | 0.64 | $ | 1.45 | $ | 1.26 | ||||||||
Diluted
earnings | 0.74 | 0.63 | 1.45 | 1.25 | ||||||||||||
Dividends paid | 0.15 | 0.12 | 0.30 | 0.24 | ||||||||||||
Performance
ratios | ||||||||||||||||
Return on average assets | 1.23 | % | 1.17 | % | 1.24 | % | 1.19 | % | ||||||||
Return
on average common shareholders’ equity | 11.62 | 10.75 | 11.52 | 10.80 | ||||||||||||
Return on average tangible common shareholders’ equity (1) | 16.24 | 15.15 | 16.13 | 15.21 | ||||||||||||
Efficiency
ratio | 57.48 | 58.65 | 57.48 | 59.33 | ||||||||||||
June 30
2019 | December 31 2018 | |||||||||||||||
Balance sheet | ||||||||||||||||
Total
loans and leases | $ | 963,800 | $ | 946,895 | ||||||||||||
Total assets | 2,395,892 | 2,354,507 | ||||||||||||||
Total
deposits | 1,375,093 | 1,381,476 | ||||||||||||||
Total liabilities | 2,124,484 | 2,089,182 | ||||||||||||||
Total
common shareholders’ equity | 246,719 | 242,999 | ||||||||||||||
Total shareholders’ equity | 271,408 | 265,325 |
(1)
| Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to the most closely related financial measures defined by accounting principles generally accepted in the United States of America (GAAP), see Non-GAAP Reconciliations on page 48. |
Bank of America 4 |
Table
2 | Noninterest Income | |||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Fees and commissions: | ||||||||||||||||
Card
income | $ | 1,446 | $ | 1,483 | $ | 2,821 | $ | 2,885 | ||||||||
Service
charges | 1,903 | 1,954 | 3,742 | 3,875 | ||||||||||||
Investment and brokerage services | 3,470 | 3,458 | 6,830 | 7,122 | ||||||||||||
Investment
banking fees | 1,371 | 1,422 | 2,635 | 2,775 | ||||||||||||
Total fees and commissions | 8,190 | 8,317 | 16,028 | 16,657 | ||||||||||||
Trading
account income | 2,345 | 2,151 | 4,683 | 4,704 | ||||||||||||
Other income | 360 | 253 | 813 | 661 | ||||||||||||
Total
noninterest income | $ | 10,895 | $ | 10,721 | $ | 21,524 | $ | 22,022 |
● | Service charges decreased $51 million and $133
million primarily driven by lower fees due to policy changes in Consumer, lower treasury fees in Global Banking in both periods, and lower ATM volume in the six-month period. |
• | Investment and brokerage services income increased modestly for the three-month period and decreased $292 million for the six-month period. The decline was primarily due to lower average market valuations compared to the same period in 2018 and declines in transactional revenue and assets under management (AUM) pricing, partially offset by the positive impact
of AUM flows. The decline in transactional revenue for the six-month period was driven by lower market volatility resulting in lower client activity. |
● | Investment banking fees decreased $51 million for the three-month period due to declines in debt underwriting and advisory fees, partially offset by higher equity underwriting fees. The $140 million decrease for the six-month period was due to declines in debt underwriting fees, partially offset by increases in advisory fees and equity underwriting fees. |
● | Trading
account income increased $194 million for the three-month period primarily driven by lower interest rates, partially offset by weakness in foreign exchange and equity derivatives trading. |
● | Other income increased $107 million and $152 million primarily due to an increase in both periods in equity investment income and gains on sales of debt securities. Also, the second quarter of the prior year included a $729 million charge related to the redemption of certain trust preferred securities, partially
offset by a $572 million gain from the sale of certain non-core mortgage loans. |
Table
3 | Noninterest Expense | |||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Compensation and benefits | $ | 7,972 | $ | 7,944 | $ | 16,221 | $ | 16,424 | ||||||||
Occupancy
and equipment | 1,640 | 1,591 | 3,245 | 3,198 | ||||||||||||
Information processing and communications | 1,157 | 1,121 | 2,321 | 2,286 | ||||||||||||
Product
delivery and transaction related | 709 | 706 | 1,371 | 1,462 | ||||||||||||
Marketing | 528 | 395 | 970 | 740 | ||||||||||||
Professional
fees | 409 | 399 | 769 | 780 | ||||||||||||
Other general operating | 853 | 1,068 | 1,595 | 2,176 | ||||||||||||
Total
noninterest expense | $ | 13,268 | $ | 13,224 | $ | 26,492 | $ | 27,066 |
5 Bank
of America |
Table
4 | Income Tax Expense | |||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Income before income taxes | $ | 8,959 | $ | 8,498 | $ | 17,726 | $ | 16,892 | ||||||||
Income
tax expense | 1,611 | 1,714 | 3,067 | 3,190 | ||||||||||||
Effective tax rate | 18.0 | % | 20.2 | % | 17.3 | % | 18.9 | % |
● | Return on average tangible common shareholders’ equity measures our net income applicable to common shareholders as a percentage
of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. |
● | Return on average tangible shareholders’ equity measures our net income applicable to common shareholders as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. |
● | Tangible
book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding. |
Bank of America 6 |
Table
5 | Selected Quarterly Financial Data | |||||||||||||||||||
2019
Quarter | 2018 Quarters | |||||||||||||||||||
(In millions, except per share information) | Second | First | Fourth | Third | Second | |||||||||||||||
Income
statement | ||||||||||||||||||||
Net interest income | $ | 12,189 | $ | 12,375 | $ | 12,504 | $ | 12,061 | $ | 11,828 | ||||||||||
Noninterest
income | 10,895 | 10,629 | 10,173 | 10,663 | 10,721 | |||||||||||||||
Total
revenue, net of interest expense | 23,084 | 23,004 | 22,677 | 22,724 | 22,549 | |||||||||||||||
Provision
for credit losses | 857 | 1,013 | 905 | 716 | 827 | |||||||||||||||
Noninterest
expense | 13,268 | 13,224 | 13,074 | 13,014 | 13,224 | |||||||||||||||
Income
before income taxes | 8,959 | 8,767 | 8,698 | 8,994 | 8,498 | |||||||||||||||
Income
tax expense | 1,611 | 1,456 | 1,420 | 1,827 | 1,714 | |||||||||||||||
Net
income | 7,348 | 7,311 | 7,278 | 7,167 | 6,784 | |||||||||||||||
Net
income applicable to common shareholders | 7,109 | 6,869 | 7,039 | 6,701 | 6,466 | |||||||||||||||
Average
common shares issued and outstanding | 9,523.2 | 9,725.9 | 9,855.8 | 10,031.6 | 10,181.7 | |||||||||||||||
Average
diluted common shares issued and outstanding | 9,559.6 | 9,787.3 | 9,996.0 | 10,170.8 | 10,309.4 | |||||||||||||||
Performance
ratios | ||||||||||||||||||||
Return
on average assets | 1.23 | % | 1.26 | % | 1.24 | % | 1.23 | % | 1.17 | % | ||||||||||
Four-quarter
trailing return on average assets (1) | 1.24 | 1.22 | 1.21 | 1.00 | 0.93 | |||||||||||||||
Return
on average common shareholders’ equity | 11.62 | 11.42 | 11.57 | 10.99 | 10.75 | |||||||||||||||
Return
on average tangible common shareholders’ equity (2) | 16.24 | 16.01 | 16.29 | 15.48 | 15.15 | |||||||||||||||
Return
on average shareholders’ equity | 11.00 | 11.14 | 10.95 | 10.74 | 10.26 | |||||||||||||||
Return
on average tangible shareholders’ equity (2) | 14.88 | 15.10 | 14.90 | 14.61 | 13.95 | |||||||||||||||
Total
ending equity to total ending assets | 11.33 | 11.23 | 11.27 | 11.21 | 11.53 | |||||||||||||||
Total
average equity to total average assets | 11.17 | 11.28 | 11.30 | 11.42 | 11.42 | |||||||||||||||
Dividend
payout | 19.95 | 21.20 | 20.90 | 22.35 | 18.83 | |||||||||||||||
Per
common share data | ||||||||||||||||||||
Earnings
| $ | 0.75 | $ | 0.71 | $ | 0.71 | $ | 0.67 | $ | 0.64 | ||||||||||
Diluted
earnings | 0.74 | 0.70 | 0.70 | 0.66 | 0.63 | |||||||||||||||
Dividends
paid | 0.15 | 0.15 | 0.15 | 0.15 | 0.12 | |||||||||||||||
Book
value | 26.41 | 25.57 | 25.13 | 24.33 | 24.07 | |||||||||||||||
Tangible
book value (2) | 18.92 | 18.26 | 17.91 | 17.23 | 17.07 | |||||||||||||||
Market
capitalization | $ | 270,935 | $ | 263,992 | $ | 238,251 | $ | 290,424 | $ | 282,259 | ||||||||||
Average
balance sheet | ||||||||||||||||||||
Total
loans and leases | $ | 950,525 | $ | 944,020 | $ | 934,721 | $ | 930,736 | $ | 934,818 | ||||||||||
Total
assets | 2,399,051 | 2,360,992 | 2,334,586 | 2,317,829 | 2,322,678 | |||||||||||||||
Total
deposits | 1,375,450 | 1,359,864 | 1,344,951 | 1,316,345 | 1,300,659 | |||||||||||||||
Long-term
debt | 201,007 | 196,726 | 201,056 | 203,239 | 199,448 | |||||||||||||||
Common
shareholders’ equity | 245,438 | 243,891 | 241,372 | 241,812 | 241,313 | |||||||||||||||
Total
shareholders’ equity | 267,975 | 266,217 | 263,698 | 264,653 | 265,181 | |||||||||||||||
Asset
quality | ||||||||||||||||||||
Allowance
for credit losses (3) | $ | 10,333 | $ | 10,379 | $ | 10,398 | $ | 10,526 | $ | 10,837 | ||||||||||
Nonperforming
loans, leases and foreclosed properties (4) | 4,452 | 5,145 | 5,244 | 5,449 | 6,181 | |||||||||||||||
Allowance
for loan and lease losses as a percentage of total loans and leases outstanding (4) | 1.00 | % | 1.02 | % | 1.02 | % | 1.05 | % | 1.08 | % | ||||||||||
Allowance
for loan and lease losses as a percentage of total nonperforming loans and leases (4) | 228 | 197 | 194 | 189 | 170 | |||||||||||||||
Net
charge-offs | $ | 887 | $ | 991 | $ | 924 | $ | 932 | $ | 996 | ||||||||||
Annualized
net charge-offs as a percentage of average loans and leases outstanding (4) | 0.38 | % | 0.43 | % | 0.39 | % | 0.40 | % | 0.43 | % | ||||||||||
Capital
ratios at period end (5) | ||||||||||||||||||||
Common
equity tier 1 capital | 11.7 | % | 11.6 | % | 11.6 | % | 11.4 | % | 11.4 | % | ||||||||||
Tier 1
capital | 13.3 | 13.1 | 13.2 | 12.9 | 13.0 | |||||||||||||||
Total
capital | 15.4 | 15.2 | 15.1 | 14.7 | 14.8 | |||||||||||||||
Tier 1
leverage | 8.4 | 8.4 | 8.4 | 8.3 | 8.4 | |||||||||||||||
Supplementary
leverage ratio | 6.8 | 6.8 | 6.8 | 6.7 | 6.7 | |||||||||||||||
Tangible
equity (2) | 8.7 | 8.5 | 8.6 | 8.5 | 8.7 | |||||||||||||||
Tangible
common equity (2) | 7.6 | 7.6 | 7.6 | 7.5 | 7.7 | |||||||||||||||
Total
loss-absorbing capacity and long-term debt metrics (6) | ||||||||||||||||||||
Total loss-absorbing capacity to risk-weighted assets | 25.5 | % | 24.8 | % | ||||||||||||||||
Total
loss-absorbing capacity to supplementary leverage exposure | 13.0 | 12.8 | ||||||||||||||||||
Eligible long-term debt to risk-weighted assets | 11.8 | 11.4 | ||||||||||||||||||
Eligible
long-term debt to supplementary leverage exposure | 6.0 | 5.9 |
(1) | Calculated
as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters. |
(2) | Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios, see Supplemental Financial Data on page 6 and for corresponding reconciliations to the most closely related financial measures defined by GAAP, see Non-GAAP Reconciliations on page 48. |
(3) | Includes
the allowance for loan and lease losses and the reserve for unfunded lending commitments. |
(4) | Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 34 and corresponding Table 28 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
on page 38 and corresponding Table 35. |
(5) | For additional information, including which approach is used to assess capital adequacy, see Capital Management on page 22. |
(6) | Effective January 1, 2019, the Corporation became subject to
minimum total loss-absorbing capacity and long-term debt requirements. For more information, see Capital Management on page 22. |
7 Bank of America |
Table
6 | Selected Year-to-Date Financial Data | |||||||
Six Months Ended June 30 | ||||||||
(In millions, except per share information) | 2019 | 2018 | ||||||
Income
statement | ||||||||
Net interest income | $ | 24,564 | $ | 23,597 | ||||
Noninterest income | 21,524 | 22,022 | ||||||
Total
revenue, net of interest expense | 46,088 | 45,619 | ||||||
Provision for credit losses | 1,870 | 1,661 | ||||||
Noninterest expense | 26,492 | 27,066 | ||||||
Income
before income taxes | 17,726 | 16,892 | ||||||
Income tax expense | 3,067 | 3,190 | ||||||
Net income | 14,659 | 13,702 | ||||||
Net
income applicable to common shareholders | 13,978 | 12,956 | ||||||
Average common shares issued and outstanding | 9,624.0 | 10,251.7 | ||||||
Average
diluted common shares issued and outstanding | 9,672.4 | 10,389.9 | ||||||
Performance ratios | ||||||||
Return on average
assets | 1.24 | % | 1.19 | % | ||||
Return on average common shareholders’ equity | 11.52 | 10.80 | ||||||
Return on average tangible common
shareholders’ equity (1) | 16.13 | 15.21 | ||||||
Return on average shareholder’s equity | 11.07 | 10.41 | ||||||
Return
on average tangible shareholders’ equity (1) | 14.99 | 14.16 | ||||||
Total ending equity to total ending assets | 11.33 | 11.53 | ||||||
Total
average equity to total average assets | 11.22 | 11.42 | ||||||
Dividend payout | 20.57 | 18.94 | ||||||
Per common share data | ||||||||
Earnings | $ | 1.45 | $ | 1.26 | ||||
Diluted
earnings | 1.45 | 1.25 | ||||||
Dividends paid | 0.30 | 0.24 | ||||||
Book value | 26.41 | 24.07 | ||||||
Tangible
book value (1) | 18.92 | 17.07 |
(1) | Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and for corresponding reconciliations to the most closely related financial measure defined by GAAP, see Non-GAAP Reconciliations
on page 48. |
Bank of America 8 |
Table
7 | Quarterly Average Balances and Interest Rates - FTE Basis | |||||||||||||||||||||
(Dollars
in millions) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||
Second
Quarter 2019 | Second Quarter 2018 | |||||||||||||||||||||
Earning assets | ||||||||||||||||||||||
Interest-bearing
deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 122,395 | $ | 495 | 1.62 | % | $ | 144,983 | $ | 487 | 1.35 | % | ||||||||||
Time
deposits placed and other short-term investments | 9,798 | 61 | 2.51 | 10,015 | 48 | 1.91 | ||||||||||||||||
Federal
funds sold and securities borrowed or purchased under agreements to resell | 281,085 | 1,309 | 1.87 | 251,880 | 709 | 1.13 | ||||||||||||||||
Trading
account assets | 146,865 | 1,337 | 3.65 | 132,799 | 1,232 | 3.72 | ||||||||||||||||
Debt
securities | 446,447 | 3,047 | 2.72 | 429,191 | 2,885 | 2.64 | ||||||||||||||||
Loans
and leases (1): | ||||||||||||||||||||||
Residential mortgage | 215,822 | 1,899 | 3.52 | 206,083 | 1,798 | 3.49 | ||||||||||||||||
Home
equity | 45,944 | 587 | 5.12 | 54,863 | 640 | 4.68 | ||||||||||||||||
U.S.
credit card | 93,627 | 2,511 | 10.76 | 93,531 | 2,298 | 9.86 | ||||||||||||||||
Direct/Indirect and
other consumer (2) | 90,453 | 830 | 3.68 | 93,620 | 766 | 3.28 | ||||||||||||||||
Total
consumer | 445,846 | 5,827 | 5.24 | 448,097 | 5,502 | 4.92 | ||||||||||||||||
U.S.
commercial | 318,243 | 3,382 | 4.26 | 305,372 | 2,983 | 3.92 | ||||||||||||||||
Non-U.S.
commercial | 103,844 | 894 | 3.45 | 99,255 | 816 | 3.30 | ||||||||||||||||
Commercial
real estate (3) | 61,778 | 720 | 4.67 | 60,653 | 646 | 4.27 | ||||||||||||||||
Commercial
lease financing | 20,814 | 172 | 3.32 | 21,441 | 168 | 3.14 | ||||||||||||||||
Total
commercial | 504,679 | 5,168 | 4.11 | 486,721 | 4,613 | 3.80 | ||||||||||||||||
Total
loans and leases | 950,525 | 10,995 | 4.64 | 934,818 | 10,115 | 4.34 | ||||||||||||||||
Other
earning assets | 66,607 | 1,129 | 6.79 | 78,244 | 1,047 | 5.36 | ||||||||||||||||
Total
earning assets (4) | 2,023,722 | 18,373 | 3.64 | 1,981,930 | 16,523 | 3.34 | ||||||||||||||||
Cash
and due from banks | 25,951 | 25,329 | ||||||||||||||||||||
Other
assets, less allowance for loan and lease losses | 349,378 | 315,419 | ||||||||||||||||||||
Total
assets | $ | 2,399,051 | $ | 2,322,678 | ||||||||||||||||||
Interest-bearing
liabilities | ||||||||||||||||||||||
U.S.
interest-bearing deposits: | ||||||||||||||||||||||
Savings | $ | 52,987 | $ | 2 | 0.01 | % | $ | 55,734 | $ | 2 | 0.01 | % | ||||||||||
NOW
and money market deposit accounts | 737,095 | 1,228 | 0.67 | 664,002 | 536 | 0.32 | ||||||||||||||||
Consumer
CDs and IRAs | 45,375 | 105 | 0.93 | 39,953 | 36 | 0.36 | ||||||||||||||||
Negotiable
CDs, public funds and other deposits | 69,966 | 408 | 2.35 | 44,539 | 197 | 1.78 | ||||||||||||||||
Total
U.S. interest-bearing deposits | 905,423 | 1,743 | 0.77 | 804,228 | 771 | 0.38 | ||||||||||||||||
Non-U.S.
interest-bearing deposits: | ||||||||||||||||||||||
Banks located in non-U.S. countries | 2,033 | 5 | 0.96 | 2,329 | 11 | 1.89 | ||||||||||||||||
Governments
and official institutions | 179 | — | 0.05 | 1,113 | — | 0.01 | ||||||||||||||||
Time,
savings and other | 68,706 | 217 | 1.26 | 65,326 | 161 | 0.99 | ||||||||||||||||
Total
non-U.S. interest-bearing deposits | 70,918 | 222 | 1.25 | 68,768 | 172 | 1.00 | ||||||||||||||||
Total
interest-bearing deposits | 976,341 | 1,965 | 0.81 | 872,996 | 943 | 0.43 | ||||||||||||||||
Federal
funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities | 278,198 | 1,997 | 2.89 | 272,777 | 1,462 | 2.15 | ||||||||||||||||
Trading
account liabilities | 47,022 | 319 | 2.72 | 52,228 | 348 | 2.67 | ||||||||||||||||
Long-term
debt | 201,007 | 1,754 | 3.49 | 199,448 | 1,788 | 3.59 | ||||||||||||||||
Total
interest-bearing liabilities (4) | 1,502,568 | 6,035 | 1.61 | 1,397,449 | 4,541 | 1.30 | ||||||||||||||||
Noninterest-bearing
sources: | ||||||||||||||||||||||
Noninterest-bearing deposits | 399,109 | 427,663 | ||||||||||||||||||||
Other
liabilities (5) | 229,399 | 232,385 | ||||||||||||||||||||
Shareholders’
equity | 267,975 | 265,181 | ||||||||||||||||||||
Total
liabilities and shareholders’ equity | $ | 2,399,051 | $ | 2,322,678 | ||||||||||||||||||
Net
interest spread | 2.03 | % | 2.04 | % | ||||||||||||||||||
Impact
of noninterest-bearing sources | 0.41 | 0.37 | ||||||||||||||||||||
Net
interest income/yield on earning assets (6) | $ | 12,338 | 2.44 | % | $ | 11,982 | 2.41 | % |
(1) | Nonperforming
loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. |
(2) | Includes non-U.S. consumer loans of $2.9 billion for both the second quarter of 2019 and 2018. |
(3) | Includes U.S. commercial real estate loans of $57.0 billion
and $56.4 billion, and non-U.S. commercial real estate loans of $4.8 billion and $4.2 billion for the second quarter of 2019 and 2018. |
(4) | Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by $53 million and $49 million
for the second quarter of 2019 and 2018. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities by $9 million and $33 million for the second quarter of 2019 and 2018. For more information, see Interest Rate Risk Management for the Banking Book on page 45. |
(5) | Includes
$35.0 billion and $29.7 billion of structured notes and liabilities for the second quarter of 2019 and 2018. |
(6) | Net interest income includes FTE adjustments of $149 million and $154 million for the second quarter of 2019 and 2018. |
9 Bank
of America |
Table
8 | Year-to-Date Average Balances and Interest Rates - FTE Basis | |||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||
Six
Months Ended June 30 | ||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | ||||||||||||||||||||
Earning assets | ||||||||||||||||||||||
Interest-bearing
deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 128,644 | $ | 1,001 | 1.57 | % | $ | 142,628 | $ | 909 | 1.29 | % | ||||||||||
Time
deposits placed and other short-term investments | 9,129 | 120 | 2.65 | 10,398 | 109 | 2.12 | ||||||||||||||||
Federal
funds sold and securities borrowed or purchased under agreements to resell | 277,715 | 2,504 | 1.82 | 250,110 | 1,331 | 1.07 | ||||||||||||||||
Trading
account assets | 143,565 | 2,678 | 3.76 | 131,966 | 2,379 | 3.63 | ||||||||||||||||
Debt
securities | 444,077 | 6,195 | 2.78 | 431,133 | 5,715 | 2.61 | ||||||||||||||||
Loans
and leases (1): | ||||||||||||||||||||||
Residential
mortgage | 213,014 | 3,761 | 3.53 | 205,460 | 3,580 | 3.49 | ||||||||||||||||
Home
equity | 46,812 | 1,180 | 5.07 | 55,902 | 1,283 | 4.62 | ||||||||||||||||
U.S.
credit card | 94,313 | 5,041 | 10.78 | 93,975 | 4,611 | 9.89 | ||||||||||||||||
Direct/Indirect
and other consumer (2) | 90,442 | 1,651 | 3.68 | 94,451 | 1,494 | 3.19 | ||||||||||||||||
Total
consumer | 444,581 | 11,633 | 5.26 | 449,788 | 10,968 | 4.90 | ||||||||||||||||
U.S.
commercial | 317,173 | 6,731 | 4.28 | 302,626 | 5,700 | 3.80 | ||||||||||||||||
Non-U.S.
commercial | 102,925 | 1,780 | 3.49 | 99,379 | 1,554 | 3.15 | ||||||||||||||||
Commercial
real estate (3) | 61,321 | 1,422 | 4.68 | 59,946 | 1,233 | 4.15 | ||||||||||||||||
Commercial
lease financing | 21,291 | 368 | 3.46 | 21,636 | 343 | 3.17 | ||||||||||||||||
Total
commercial | 502,710 | 10,301 | 4.13 | 483,587 | 8,830 | 3.68 | ||||||||||||||||
Total
loans and leases | 947,291 | 21,934 | 4.66 | 933,375 | 19,798 | 4.27 | ||||||||||||||||
Other
earning assets | 67,134 | 2,264 | 6.79 | 81,277 | 2,031 | 5.03 | ||||||||||||||||
Total
earning assets (4) | 2,017,555 | 36,696 | 3.66 | 1,980,887 | 32,272 | 3.28 | ||||||||||||||||
Cash
and due from banks | 25,888 | 25,800 | ||||||||||||||||||||
Other
assets, less allowance for loan and lease losses | 336,684 | 317,582 | ||||||||||||||||||||
Total
assets | $ | 2,380,127 | $ | 2,324,269 | ||||||||||||||||||
Interest-bearing
liabilities | ||||||||||||||||||||||
U.S.
interest-bearing deposits: | ||||||||||||||||||||||
Savings | $ | 53,278 | $ | 3 | 0.01 | % | $ | 55,243 | $ | 3 | 0.01 | % | ||||||||||
NOW
and money market deposit accounts | 734,077 | 2,385 | 0.66 | 661,531 | 942 | 0.29 | ||||||||||||||||
Consumer
CDs and IRAs | 43,593 | 179 | 0.83 | 40,629 | 69 | 0.34 | ||||||||||||||||
Negotiable
CDs, public funds and other deposits | 67,981 | 775 | 2.30 | 42,600 | 354 | 1.68 | ||||||||||||||||
Total
U.S. interest-bearing deposits | 898,929 | 3,342 | 0.75 | 800,003 | 1,368 | 0.34 | ||||||||||||||||
Non-U.S.
interest-bearing deposits: | ||||||||||||||||||||||
Banks
located in non-U.S. countries | 2,209 | 11 | 0.99 | 2,287 | 20 | 1.79 | ||||||||||||||||
Governments
and official institutions | 178 | — | 0.08 | 1,133 | — | 0.01 | ||||||||||||||||
Time,
savings and other | 66,472 | 407 | 1.23 | 66,325 | 315 | 0.95 | ||||||||||||||||
Total
non-U.S. interest-bearing deposits | 68,859 | 418 | 1.22 | 69,745 | 335 | 0.97 | ||||||||||||||||
Total
interest-bearing deposits | 967,788 | 3,760 | 0.78 | 869,748 | 1,703 | 0.39 | ||||||||||||||||
Federal
funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities | 271,716 | 3,849 | 2.86 | 276,269 | 2,597 | 1.90 | ||||||||||||||||
Trading
account liabilities | 46,312 | 664 | 2.89 | 53,787 | 705 | 2.64 | ||||||||||||||||
Long-term
debt | 198,878 | 3,557 | 3.59 | 198,622 | 3,366 | 3.40 | ||||||||||||||||
Total
interest-bearing liabilities (4) | 1,484,694 | 11,830 | 1.61 | 1,398,426 | 8,371 | 1.21 | ||||||||||||||||
Noninterest-bearing
sources: | ||||||||||||||||||||||
Noninterest-bearing
deposits | 399,912 | 429,225 | ||||||||||||||||||||
Other
liabilities (5) | 228,420 | 231,288 | ||||||||||||||||||||
Shareholders’
equity | 267,101 | 265,330 | ||||||||||||||||||||
Total
liabilities and shareholders’ equity | $ | 2,380,127 | $ | 2,324,269 | ||||||||||||||||||
Net
interest spread | 2.05 | % | 2.07 | % | ||||||||||||||||||
Impact
of noninterest-bearing sources | 0.43 | 0.35 | ||||||||||||||||||||
Net
interest income/yield on earning assets (6) | $ | 24,866 | 2.48 | % | $ | 23,901 | 2.42 | % |
(1) | Nonperforming
loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. |
(2) | Includes non-U.S. consumer loans of $2.9 billion for both the six months ended June 30, 2019 and 2018. |
(3) | Includes
U.S. commercial real estate loans of $56.7 billion and $55.9 billion, and non-U.S. commercial real estate loans of $4.6 billion and $4.1 billion for the six months ended June 30, 2019 and 2018. |
(4) | Interest income includes the impact of interest rate risk management contracts,
which decreased interest income on the underlying assets by $126 million and $56 million for the six months ended June 30, 2019 and 2018. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on the underlying liabilities by $59 million and $(171) million for the six months ended June 30, 2019 and 2018.
For more information, see Interest Rate Risk Management for the Banking Book on page 45. |
(5) | Includes $33.2 billion and $30.8 billion of structured notes and liabilities for the six months ended June 30, 2019 and 2018. |
(6) | Net
interest income includes FTE adjustments of $302 million and $304 million for the six months ended June 30, 2019 and 2018. |
Bank of America 10 |
Deposits | Consumer
Lending | Total Consumer Banking | ||||||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | %
Change | |||||||||||||||||
Net interest income | $ | 4,363 | $ | 3,895 | $ | 2,753 | $ | 2,698 | $ | 7,116 | $ | 6,593 | 8 | % | ||||||||||
Noninterest
income: | ||||||||||||||||||||||||
Card income | (6 | ) | (8 | ) | 1,274 | 1,300 | 1,268 | 1,292 | (2 | ) | ||||||||||||||
Service
charges | 1,044 | 1,072 | 1 | — | 1,045 | 1,072 | (3 | ) | ||||||||||||||||
All
other income | 210 | 188 | 78 | 88 | 288 | 276 | 4 | |||||||||||||||||
Total
noninterest income | 1,248 | 1,252 | 1,353 | 1,388 | 2,601 | 2,640 | (1 | ) | ||||||||||||||||
Total
revenue, net of interest expense | 5,611 | 5,147 | 4,106 | 4,086 | 9,717 | 9,233 | 5 | |||||||||||||||||
Provision
for credit losses | 44 | 46 | 903 | 898 | 947 | 944 | — | |||||||||||||||||
Noninterest
expense | 2,663 | 2,644 | 1,744 | 1,723 | 4,407 | 4,367 | 1 | |||||||||||||||||
Income
before income taxes | 2,904 | 2,457 | 1,459 | 1,465 | 4,363 | 3,922 | 11 | |||||||||||||||||
Income
tax expense | 712 | 627 | 357 | 373 | 1,069 | 1,000 | 7 | |||||||||||||||||
Net
income | $ | 2,192 | $ | 1,830 | $ | 1,102 | $ | 1,092 | $ | 3,294 | $ | 2,922 | 13 | |||||||||||
Effective
tax rate (1) | 24.5 | % | 25.5 | % | ||||||||||||||||||||
Net
interest yield | 2.49 | % | 2.28 | % | 3.79 | % | 3.92 | % | 3.87 | 3.67 | ||||||||||||||
Return
on average allocated capital | 73 | 61 | 18 | 18 | 36 | 32 | ||||||||||||||||||
Efficiency
ratio | 47.51 | 51.40 | 42.45 | 42.17 | 45.37 | 47.31 | ||||||||||||||||||
Balance
Sheet | ||||||||||||||||||||||||
Three
Months Ended June 30 | ||||||||||||||||||||||||
Average | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | %
Change | |||||||||||||||||
Total loans and leases | $ | 5,333 | $ | 5,191 | $ | 291,055 | $ | 275,498 | $ | 296,388 | $ | 280,689 | 6 | % | ||||||||||
Total
earning assets (2) | 702,662 | 686,324 | 291,492 | 276,436 | 737,678 | 720,871 | 2 | |||||||||||||||||
Total
assets (2) | 734,117 | 714,494 | 301,743 | 287,377 | 779,384 | 759,982 | 3 | |||||||||||||||||
Total
deposits | 701,790 | 682,202 | 5,238 | 5,610 | 707,028 | 687,812 | 3 | |||||||||||||||||
Allocated
capital | 12,000 | 12,000 | 25,000 | 25,000 | 37,000 | 37,000 | — |
(1) | Estimated
at the segment level only. |
(2) | In segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets from All Other to match the segments’ and businesses’ liabilities and allocated shareholders’ equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Banking. |
11 Bank
of America |
Deposits | Consumer
Lending | Total Consumer Banking | ||||||||||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | %
Change | |||||||||||||||||
Net interest income | $ | 8,670 | $ | 7,607 | $ | 5,552 | $ | 5,463 | $ | 14,222 | $ | 13,070 | 9 | % | ||||||||||
Noninterest
income: | ||||||||||||||||||||||||
Card income | (13 | ) | (15 | ) | 2,478 | 2,541 | 2,465 | 2,526 | (2 | ) | ||||||||||||||
Service
charges | 2,064 | 2,115 | 1 | 1 | 2,065 | 2,116 | (2 | ) | ||||||||||||||||
All
other income | 442 | 320 | 155 | 182 | 597 | 502 | 19 | |||||||||||||||||
Total
noninterest income | 2,493 | 2,420 | 2,634 | 2,724 | 5,127 | 5,144 | — | |||||||||||||||||
Total
revenue, net of interest expense | 11,163 | 10,027 | 8,186 | 8,187 | 19,349 | 18,214 | 6 | |||||||||||||||||
Provision
for credit losses | 90 | 87 | 1,831 | 1,792 | 1,921 | 1,879 | 2 | |||||||||||||||||
Noninterest
expense | 5,302 | 5,366 | 3,461 | 3,549 | 8,763 | 8,915 | (2 | ) | ||||||||||||||||
Income
before income taxes | 5,771 | 4,574 | 2,894 | 2,846 | 8,665 | 7,420 | 17 | |||||||||||||||||
Income
tax expense | 1,414 | 1,167 | 709 | 726 | 2,123 | 1,893 | 12 | |||||||||||||||||
Net
income | $ | 4,357 | $ | 3,407 | $ | 2,185 | $ | 2,120 | $ | 6,542 | $ | 5,527 | 18 | |||||||||||
Effective
tax rate (1) | 24.5 | % | 25.5 | % | ||||||||||||||||||||
Net
interest yield | 2.51 | % | 2.26 | % | 3.87 | % | 4.00 | % | 3.92 | 3.69 | ||||||||||||||
Return
on average allocated capital | 73 | 57 | 18 | 17 | 36 | 30 | ||||||||||||||||||
Efficiency
ratio | 47.51 | 53.51 | 42.27 | 43.36 | 45.29 | 48.95 | ||||||||||||||||||
Balance
Sheet | ||||||||||||||||||||||||
Six
Months Ended June 30 | ||||||||||||||||||||||||
Average | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | %
Change | |||||||||||||||||
Total loans and leases | $ | 5,323 | $ | 5,180 | $ | 289,017 | $ | 274,946 | $ | 294,340 | $ | 280,126 | 5 | % | ||||||||||
Total
earning assets (2) | 697,883 | 680,013 | 289,387 | 275,597 | 732,543 | 714,345 | 3 | |||||||||||||||||
Total
assets (2) | 729,332 | 707,992 | 299,747 | 286,625 | 774,351 | 753,352 | 3 | |||||||||||||||||
Total
deposits | 697,008 | 675,630 | 5,003 | 5,489 | 702,011 | 681,119 | 3 | |||||||||||||||||
Allocated
capital | 12,000 | 12,000 | 25,000 | 25,000 | 37,000 | 37,000 | — | |||||||||||||||||
Period
end | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | % Change | |||||||||||||||||
Total
loans and leases | $ | 5,340 | $ | 5,470 | $ | 295,072 | $ | 288,865 | $ | 300,412 | $ | 294,335 | 2 | % | ||||||||||
Total
earning assets (2) | 708,382 | 694,672 | 295,561 | 289,249 | 744,219 | 728,813 | 2 | |||||||||||||||||
Total
assets (2) | 740,485 | 724,019 | 306,202 | 299,970 | 786,963 | 768,881 | 2 | |||||||||||||||||
Total
deposits | 708,162 | 691,666 | 6,061 | 4,480 | 714,223 | 696,146 | 3 |
Bank
of America 12 |
Key
Statistics – Deposits | |||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Total deposit spreads (excludes noninterest costs) (1) | 2.40 | % | 2.10 | % | 2.39 | % | 2.05 | % | |||||
Period
end | |||||||||||||
Consumer investment assets (in millions) (2) | $ | 219,732 | $ | 191,472 | |||||||||
Active
digital banking users (units in thousands) (3) | 37,292 | 35,722 | |||||||||||
Active mobile banking users (units in thousands) | 27,818 | 25,335 | |||||||||||
Financial
centers | 4,349 | 4,433 | |||||||||||
ATMs | 16,561 | 16,050 |
(1) | Includes
deposits held in Consumer Lending. |
(2) | Includes client brokerage assets, certain deposit sweep balances and AUM in Consumer Banking. |
(3) | Active digital banking users represents mobile and/or online users. |
Key
Statistics – Consumer Lending | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Total
U.S. credit card (1) | |||||||||||||||
Gross interest yield | 10.76 | % | 9.86 | % | 10.78 | % | 9.90 | % | |||||||
Risk-adjusted
margin | 7.93 | 7.96 | 7.98 | 8.09 | |||||||||||
New accounts (in thousands) | 1,068 | 1,186 | 2,102 | 2,380 | |||||||||||
Purchase
volumes | $ | 70,288 | $ | 66,821 | $ | 133,039 | $ | 128,168 | |||||||
Debit
card purchase volumes | $ | 84,046 | $ | 80,697 | $ | 162,540 | $ | 156,749 |
(1) | In
addition to the U.S. credit card portfolio in Consumer Banking, the remaining U.S. credit card portfolio is in GWIM. |
13 Bank
of America |
Key
Statistics – Loan Production (1) | |||||||||||||||
Three Months Ended June 30 | Six Months
Ended June 30 | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Total (2): | |||||||||||||||
First
mortgage | $ | 18,229 | $ | 11,672 | $ | 29,689 | $ | 21,096 | |||||||
Home
equity | 2,768 | 4,081 | 5,593 | 7,830 | |||||||||||
Consumer Banking: | |||||||||||||||
First
mortgage | $ | 12,757 | $ | 7,881 | $ | 20,912 | $ | 13,845 | |||||||
Home
equity | 2,405 | 3,644 | 4,890 | 6,989 |
(1) | The
loan production amounts represent the unpaid principal balance of loans and, in the case of home equity, the principal amount of the total line of credit. |
(2) | In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM. |
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | % Change | 2019 | 2018 | %
Change | ||||||||||||||||
Net interest income | $ | 1,624 | $ | 1,538 | 6 | % | $ | 3,308 | $ | 3,122 | 6 | % | ||||||||||
Noninterest
income: | ||||||||||||||||||||||
Investment and brokerage services | 2,963 | 2,937 | 1 | 5,805 | 5,977 | (3 | ) | |||||||||||||||
All
other income | 313 | 267 | 17 | 607 | 498 | 22 | ||||||||||||||||
Total
noninterest income | 3,276 | 3,204 | 2 | 6,412 | 6,475 | (1 | ) | |||||||||||||||
Total
revenue, net of interest expense | 4,900 | 4,742 | 3 | 9,720 | 9,597 | 1 | ||||||||||||||||
Provision
for credit losses | 21 | 12 | 75 | 26 | 50 | (48 | ) | |||||||||||||||
Noninterest
expense | 3,458 | 3,427 | 1 | 6,886 | 7,008 | (2 | ) | |||||||||||||||
Income
before income taxes | 1,421 | 1,303 | 9 | 2,808 | 2,539 | 11 | ||||||||||||||||
Income
tax expense | 348 | 332 | 5 | 688 | 647 | 6 | ||||||||||||||||
Net
income | $ | 1,073 | $ | 971 | 11 | $ | 2,120 | $ | 1,892 | 12 | ||||||||||||
Effective
tax rate | 24.5 | % | 25.5 | % | 24.5 | % | 25.5 | % | ||||||||||||||
Net
interest yield | 2.35 | 2.42 | 2.37 | 2.43 | ||||||||||||||||||
Return
on average allocated capital | 30 | 27 | 30 | 26 | ||||||||||||||||||
Efficiency
ratio | 70.58 | 72.25 | 70.85 | 73.02 | ||||||||||||||||||
Balance
Sheet | ||||||||||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
Average | 2019 | 2018 | % Change | 2019 | 2018 | %
Change | ||||||||||||||||
Total loans and leases | $ | 166,324 | $ | 160,833 | 3 | % | $ | 165,369 | $ | 159,969 | 3 | % | ||||||||||
Total
earning assets | 277,068 | 255,146 | 9 | 281,028 | 258,940 | 9 | ||||||||||||||||
Total
assets | 289,819 | 272,318 | 6 | 293,451 | 275,997 | 6 | ||||||||||||||||
Total
deposits | 253,925 | 236,214 | 7 | 257,856 | 239,627 | 8 | ||||||||||||||||
Allocated
capital | 14,500 | 14,500 | — | 14,500 | 14,500 | — | ||||||||||||||||
Period
end | June 30 2019 | December 31 2018 | % Change | |||||||||||||||||||
Total loans and leases | $ | 168,993 | $ | 164,854 | 3 | % | ||||||||||||||||
Total
earning assets | 275,456 | 287,199 | (4 | ) | ||||||||||||||||||
Total
assets | 287,878 | 305,907 | (6 | ) | ||||||||||||||||||
Total
deposits | 251,818 | 268,700 | (6 | ) |
Bank
of America 14 |
15 Bank of America |
Key
Indicators and Metrics | |||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions, except as noted) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Revenue by Business | |||||||||||||||
Merrill
Lynch Global Wealth Management | $ | 4,047 | $ | 3,888 | $ | 8,012 | $ | 7,883 | |||||||
Bank
of America Private Bank | 853 | 854 | 1,708 | 1,714 | |||||||||||
Total revenue, net of interest expense | $ | 4,900 | $ | 4,742 | $ | 9,720 | $ | 9,597 | |||||||
Client
Balances by Business, at period end | |||||||||||||||
Merrill Lynch Global Wealth Management | $ | 2,440,710 | $ | 2,311,598 | |||||||||||
Bank
of America Private Bank | 458,081 | 442,608 | |||||||||||||
Total client balances | $ | 2,898,791 | $ | 2,754,206 | |||||||||||
Client
Balances by Type, at period end | |||||||||||||||
Assets under management (1) | $ | 1,203,783 | $ | 1,138,500 | |||||||||||
Brokerage
and other assets | 1,314,457 | 1,254,135 | |||||||||||||
Deposits | 251,818 | 233,925 | |||||||||||||
Loans
and leases (2) | 172,265 | 165,145 | |||||||||||||
Less: Managed deposits in AUM (1) | (43,532 | ) | (37,499 | ) | |||||||||||
Total
client balances | $ | 2,898,791 | $ | 2,754,206 | |||||||||||
Assets
Under Management Rollforward | |||||||||||||||
Assets under management, beginning of period | $ | 1,169,713 | $ | 1,122,571 | $ | 1,072,234 | $ | 1,121,383 | |||||||
Net
client flows | 5,274 | 10,420 | 11,192 | 31,878 | |||||||||||
Market valuation/other | 28,796 | 5,509 | 120,357 | (14,761 | ) | ||||||||||
Total
assets under management, end of period | $ | 1,203,783 | $ | 1,138,500 | $ | 1,203,783 | $ | 1,138,500 | |||||||
Associates,
at period end (3) | |||||||||||||||
Number of financial advisors | 17,508 | 17,442 | |||||||||||||
Total
wealth advisors, including financial advisors | 19,512 | 19,350 | |||||||||||||
Total primary sales professionals, including financial advisors and wealth advisors | 20,611 | 20,451 | |||||||||||||
Merrill
Lynch Global Wealth Management Metric | |||||||||||||||
Financial advisor productivity (4) (in thousands) | $ | 1,082 | $ | 1,017 | $ | 1,061 | $ | 1,027 | |||||||
Bank
of America Private Bank Metric, at period end | |||||||||||||||
Primary sales professionals | 1,808 | 1,723 |
(1) | AUM
includes deposits that are managed within investment accounts. Prior periods have been updated to conform to current-period presentation. |
(2) | Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet. |
(3) | Includes financial advisors in the Consumer Banking segment of 2,818
and 2,622 at June 30, 2019 and 2018. |
(4) | Financial advisor productivity is defined as annualized MLGWM total revenue, excluding the allocation of certain ALM activities, divided by the total average number of financial advisors (excluding financial advisors in the Consumer Banking segment). |
Bank
of America 16 |
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | % Change | 2019 | 2018 | %
Change | ||||||||||||||||
Net interest income | $ | 2,709 | $ | 2,739 | (1 | %) | $ | 5,499 | $ | 5,418 | 1 | % | ||||||||||
Noninterest
income: | ||||||||||||||||||||||
Service charges | 749 | 768 | (2 | ) | 1,462 | 1,532 | (5 | ) | ||||||||||||||
Investment
banking fees | 717 | 743 | (3 | ) | 1,426 | 1,487 | (4 | ) | ||||||||||||||
All
other income | 800 | 764 | 5 | 1,743 | 1,572 | 11 | ||||||||||||||||
Total
noninterest income | 2,266 | 2,275 | — | 4,631 | 4,591 | 1 | ||||||||||||||||
Total
revenue, net of interest expense | 4,975 | 5,014 | (1 | ) | 10,130 | 10,009 | 1 | |||||||||||||||
Provision
for credit losses | 125 | (23 | ) | n/m | 236 | (7 | ) | n/m | ||||||||||||||
Noninterest
expense | 2,212 | 2,185 | 1 | 4,478 | 4,477 | — | ||||||||||||||||
Income
before income taxes | 2,638 | 2,852 | (8 | ) | 5,416 | 5,539 | (2 | ) | ||||||||||||||
Income
tax expense | 712 | 741 | (4 | ) | 1,462 | 1,440 | 2 | |||||||||||||||
Net
income | $ | 1,926 | $ | 2,111 | (9 | ) | $ | 3,954 | $ | 4,099 | (4 | ) | ||||||||||
Effective
tax rate | 27.0 | % | 26.0 | % | 27.0 | % | 26.0 | % | ||||||||||||||
Net
interest yield | 2.80 | 3.01 | 2.91 | 3.01 | ||||||||||||||||||
Return
on average allocated capital | 19 | 21 | 19 | 20 | ||||||||||||||||||
Efficiency
ratio | 44.45 | 43.57 | 44.20 | 44.72 | ||||||||||||||||||
Balance
Sheet | ||||||||||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
Average | 2019 | 2018 | % Change | 2019 | 2018 | %
Change | ||||||||||||||||
Total loans and leases | $ | 372,531 | $ | 355,088 | 5 | % | $ | 371,326 | $ | 353,398 | 5 | % | ||||||||||
Total
earning assets | 387,819 | 364,587 | 6 | 381,111 | 363,212 | 5 | ||||||||||||||||
Total
assets | 442,591 | 424,540 | 4 | 435,803 | 423,209 | 3 | ||||||||||||||||
Total
deposits | 362,619 | 323,215 | 12 | 355,866 | 323,807 | 10 | ||||||||||||||||
Allocated
capital | 41,000 | 41,000 | — | 41,000 | 41,000 | — | ||||||||||||||||
Period
end | June 30 2019 | December 31 2018 | % Change | |||||||||||||||||||
Total loans and leases | $ | 376,948 | $ | 365,717 | 3 | % | ||||||||||||||||
Total
earning assets | 384,884 | 377,812 | 2 | |||||||||||||||||||
Total
assets | 440,352 | 442,330 | — | |||||||||||||||||||
Total
deposits | 358,902 | 360,248 | — |
17 Bank
of America |
Global
Corporate, Global Commercial and Business Banking | ||||||||||||||||||||||||||||||||
Global
Corporate Banking | Global Commercial Banking | Business Banking | Total | |||||||||||||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Business
Lending | $ | 923 | $ | 1,036 | $ | 1,046 | $ | 1,046 | $ | 90 | $ | 110 | $ | 2,059 | $ | 2,192 | ||||||||||||||||
Global
Transaction Services | 1,005 | 956 | 889 | 829 | 267 | 241 | 2,161 | 2,026 | ||||||||||||||||||||||||
Total
revenue, net of interest expense | $ | 1,928 | $ | 1,992 | $ | 1,935 | $ | 1,875 | $ | 357 | $ | 351 | $ | 4,220 | $ | 4,218 | ||||||||||||||||
Balance
Sheet | ||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||
Total
loans and leases | $ | 175,701 | $ | 163,632 | $ | 181,741 | $ | 174,666 | $ | 15,119 | $ | 16,785 | $ | 372,561 | $ | 355,083 | ||||||||||||||||
Total
deposits | 181,591 | 157,224 | 141,611 | 129,480 | 39,430 | 36,539 | 362,632 | 323,243 | ||||||||||||||||||||||||
Global
Corporate Banking | Global Commercial Banking | Business Banking | Total | |||||||||||||||||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(Dollars
in millions) | ||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Business
Lending | $ | 1,968 | $ | 2,032 | $ | 2,080 | $ | 2,093 | $ | 184 | $ | 216 | $ | 4,232 | $ | 4,341 | ||||||||||||||||
Global
Transaction Services | 2,012 | 1,877 | 1,780 | 1,642 | 533 | 473 | 4,325 | 3,992 | ||||||||||||||||||||||||
Total
revenue, net of interest expense | $ | 3,980 | $ | 3,909 | $ | 3,860 | $ | 3,735 | $ | 717 | $ | 689 | $ | 8,557 | $ | 8,333 | ||||||||||||||||
Balance
Sheet | ||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||
Total
loans and leases | $ | 175,993 | $ | 162,857 | $ | 180,105 | $ | 173,520 | $ | 15,230 | $ | 17,021 | $ | 371,328 | $ | 353,398 | ||||||||||||||||
Total
deposits | 174,895 | 156,438 | 142,070 | 130,911 | 38,920 | 36,475 | 355,885 | 323,824 | ||||||||||||||||||||||||
Period
end | ||||||||||||||||||||||||||||||||
Total
loans and leases | $ | 179,517 | $ | 163,524 | $ | 182,417 | $ | 175,405 | $ | 15,000 | $ | 16,549 | $ | 376,934 | $ | 355,478 | ||||||||||||||||
Total
deposits | 179,656 | 160,993 | 139,312 | 128,079 | 39,932 | 36,982 | 358,900 | 326,054 |
Investment
Banking Fees | |||||||||||||||||||||||||||||||
Global
Banking | Total Corporation | Global Banking | Total Corporation | ||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Products | |||||||||||||||||||||||||||||||
Advisory | $ | 254 | $ | 269 | $ | 288 | $ | 303 | $ | 557 | $ | 545 | $ | 631 | $ | 599 | |||||||||||||||
Debt
issuance | 324 | 367 | 746 | 874 | 651 | 723 | 1,494 | 1,701 | |||||||||||||||||||||||
Equity
issuance | 139 | 107 | 395 | 290 | 218 | 219 | 629 | 604 | |||||||||||||||||||||||
Gross
investment banking fees | 717 | 743 | 1,429 | 1,467 | 1,426 | 1,487 | 2,754 | 2,904 | |||||||||||||||||||||||
Self-led
deals | (23 | ) | (15 | ) | (58 | ) | (45 | ) | (44 | ) | (49 | ) | (119 | ) | (129 | ) | |||||||||||||||
Total
investment banking fees | $ | 694 | $ | 728 | $ | 1,371 | $ | 1,422 | $ | 1,382 | $ | 1,438 | $ | 2,635 | $ | 2,775 |
Bank
of America 18 |
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | % Change | 2019 | 2018 | %
Change | ||||||||||||||||
Net interest income | $ | 811 | $ | 968 | (16 | )% | $ | 1,764 | $ | 1,989 | (11 | )% | ||||||||||
Noninterest
income: | ||||||||||||||||||||||
Investment
and brokerage services | 433 | 430 | 1 | 877 | 918 | (4 | ) | |||||||||||||||
Investment
banking fees | 584 | 651 | (10 | ) | 1,121 | 1,261 | (11 | ) | ||||||||||||||
Trading
account income | 1,961 | 2,020 | (3 | ) | 4,043 | 4,577 | (12 | ) | ||||||||||||||
All
other income | 356 | 182 | 96 | 521 | 318 | 64 | ||||||||||||||||
Total
noninterest income | 3,334 | 3,283 | 2 | 6,562 | 7,074 | (7 | ) | |||||||||||||||
Total
revenue, net of interest expense | 4,145 | 4,251 | (2 | ) | 8,326 | 9,063 | (8 | ) | ||||||||||||||
Provision
for credit losses | 5 | (1 | ) | n/m | (18 | ) | (4 | ) | n/m | |||||||||||||
Noninterest
expense | 2,677 | 2,726 | (2 | ) | 5,432 | 5,651 | (4 | ) | ||||||||||||||
Income
before income taxes | 1,463 | 1,526 | (4 | ) | 2,912 | 3,416 | (15 | ) | ||||||||||||||
Income
tax expense | 417 | 397 | 5 | 830 | 888 | (7 | ) | |||||||||||||||
Net
income | $ | 1,046 | $ | 1,129 | (7 | ) | $ | 2,082 | $ | 2,528 | (18 | ) | ||||||||||
Effective
tax rate | 28.5 | % | 26.0 | % | 28.5 | % | 26.0 | % | ||||||||||||||
Return
on average allocated capital | 12 | 13 | 12 | 15 | ||||||||||||||||||
Efficiency
ratio | 64.55 | 64.15 | 65.23 | 62.35 | ||||||||||||||||||
Balance
Sheet | ||||||||||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
Average | 2019 | 2018 | % Change | 2019 | 2018 | %
Change | ||||||||||||||||
Trading-related assets: | ||||||||||||||||||||||
Trading
account securities | $ | 251,401 | $ | 209,271 | 20 | % | $ | 238,400 | $ | 209,772 | 14 | % | ||||||||||
Reverse
repurchases | 117,730 | 132,257 | (11 | ) | 120,228 | 128,125 | (6 | ) | ||||||||||||||
Securities
borrowed | 83,374 | 83,282 | — | 83,856 | 82,831 | 1 | ||||||||||||||||
Derivative
assets | 43,700 | 48,316 | (10 | ) | 42,831 | 47,447 | (10 | ) | ||||||||||||||
Total
trading-related assets | 496,205 | 473,126 | 5 | 485,315 | 468,175 | 4 | ||||||||||||||||
Total
loans and leases | 70,587 | 75,053 | (6 | ) | 70,335 | 74,412 | (5 | ) | ||||||||||||||
Total
earning assets | 474,061 | 490,482 | (3 | ) | 473,242 | 488,307 | (3 | ) | ||||||||||||||
Total
assets | 685,411 | 678,501 | 1 | 674,790 | 678,428 | (1 | ) | |||||||||||||||
Total
deposits | 31,128 | 30,736 | 1 | 31,246 | 31,524 | (1 | ) | |||||||||||||||
Allocated
capital | 35,000 | 35,000 | — | 35,000 | 35,000 | — | ||||||||||||||||
Period
end | June 30 2019 | December 31 2018 | % Change | |||||||||||||||||||
Total trading-related assets | $ | 487,094 | $ | 447,998 | 9 | % | ||||||||||||||||
Total
loans and leases | 74,136 | 73,928 | — | |||||||||||||||||||
Total
earning assets | 475,836 | 457,224 | 4 | |||||||||||||||||||
Total
assets | 674,985 | 641,923 | 5 | |||||||||||||||||||
Total
deposits | 29,961 | 37,841 | (21 | ) |
19 Bank of America |
Sales
and Trading Revenue (1, 2) | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Sales
and trading revenue | |||||||||||||||
Fixed-income, currencies and commodities | $ | 2,098 | $ | 2,132 | $ | 4,377 | $ | 4,765 | |||||||
Equities | 1,144 | 1,319 | 2,325 | 2,831 | |||||||||||
Total
sales and trading revenue | $ | 3,242 | $ | 3,451 | $ | 6,702 | $ | 7,596 | |||||||
Sales
and trading revenue, excluding net DVA (3) | |||||||||||||||
Fixed-income, currencies and commodities | $ | 2,128 | $ | 2,316 | $ | 4,486 | $ | 4,871 | |||||||
Equities | 1,145 | 1,314 | 2,337 | 2,840 | |||||||||||
Total
sales and trading revenue, excluding net DVA | $ | 3,273 | $ | 3,630 | $ | 6,823 | $ | 7,711 |
(1) | Includes
FTE adjustments of $31 million and $80 million for the three and six months ended June 30, 2019 compared to $80 million and $146 million for the same periods in 2018. For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements. |
(2) | Includes
Global Banking sales and trading revenue of $128 million and $243 million for the three and six months ended June 30, 2019 compared to $79 million and $244 million for the same periods in 2018. |
(3) | FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA losses
were $30 million and $109 million for the three and six months ended June 30, 2019 compared to losses of $184 million and $106 million for the same periods in 2018. Equities net DVA losses were $1 million and $12 million for the three and six months ended June 30, 2019 compared to gains of $5
million and losses of $9 million for the same periods in 2018. |
Bank
of America 20 |
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | % Change | 2019 | 2018 | %
Change | ||||||||||||||||
Net interest income | $ | 78 | $ | 144 | (46 | )% | $ | 73 | $ | 302 | (76 | )% | ||||||||||
Noninterest
income (loss) | (582 | ) | (681 | ) | (15 | ) | (1,208 | ) | (1,262 | ) | (4 | ) | ||||||||||
Total
revenue, net of interest expense | (504 | ) | (537 | ) | (6 | ) | (1,135 | ) | (960 | ) | 18 | |||||||||||
Provision
for credit losses | (241 | ) | (105 | ) | 130 | (295 | ) | (257 | ) | 15 | ||||||||||||
Noninterest
expense | 514 | 519 | (1 | ) | 933 | 1,015 | (8 | ) | ||||||||||||||
Loss
before income taxes | (777 | ) | (951 | ) | (18 | ) | (1,773 | ) | (1,718 | ) | 3 | |||||||||||
Income
tax benefit | (786 | ) | (602 | ) | 31 | (1,734 | ) | (1,374 | ) | 26 | ||||||||||||
Net
income (loss) | $ | 9 | $ | (349 | ) | (103 | ) | $ | (39 | ) | $ | (344 | ) | (89 | ) | |||||||
Balance
Sheet | ||||||||||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
Average | 2019 | 2018 | %
Change | 2019 | 2018 | % Change | ||||||||||||||||
Total loans and leases | $ | 44,695 | $ | 63,155 | (29 | )% | $ | 45,921 | $ | 65,470 | (30 | )% | ||||||||||
Total
assets (1) | 201,846 | 187,337 | 8 | 201,732 | 193,283 | 4 | ||||||||||||||||
Total
deposits | 20,750 | 22,682 | (9 | ) | 20,721 | 22,896 | (9 | ) | ||||||||||||||
Period
end | June 30 2019 | December 31 2018 | % Change | |||||||||||||||||||
Total
loans and leases | $ | 43,311 | $ | 48,061 | (10 | )% | ||||||||||||||||
Total
assets (1) | 205,714 | 195,466 | 5 | |||||||||||||||||||
Total
deposits | 20,189 | 18,541 | 9 |
(1) | In
segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from All Other to those segments to match liabilities (i.e., deposits) and allocated shareholders’ equity. Average allocated assets were $549.5 billion and $543.0 billion for the three and six months ended June 30, 2019 compared to $519.6 billion and $517.1 billion for the same periods in 2018, and period-end allocated assets were $544.0 billion and $540.8 billion at June
30, 2019 and December 31, 2018. |
21 Bank of America |
Bank of America 22 |
Table
9 | Bank of America Corporation Regulatory Capital under Basel 3 | ||||||||||
Standardized Approach | Advanced Approaches | Regulatory
Minimum (1) | |||||||||
(Dollars in millions, except as noted) | |||||||||||
Risk-based capital metrics: | |||||||||||
Common equity tier 1 capital | $ | 171,498 | $ | 171,498 | |||||||
Tier
1 capital | 195,539 | 195,539 | |||||||||
Total capital (2) | 228,965 | 220,904 | |||||||||
Risk-weighted
assets (in billions) | 1,467 | 1,431 | |||||||||
Common equity tier 1 capital ratio | 11.7 | % | 12.0 | % | 9.5 | % | |||||
Tier
1 capital ratio | 13.3 | 13.7 | 11.0 | ||||||||
Total capital ratio | 15.6 | 15.4 | 13.0 | ||||||||
Leverage-based
metrics: | |||||||||||
Adjusted quarterly average assets (in billions) (3) | $ | 2,322 | $ | 2,322 | |||||||
Tier
1 leverage ratio | 8.4 | % | 8.4 | % | 4.0 | ||||||
SLR
leverage exposure (in billions) | $ | 2,872 | |||||||||
SLR | 6.8 | % | 5.0 | ||||||||
Risk-based capital metrics: | |||||||||||
Common equity tier 1 capital | $ | 167,272 | $ | 167,272 | |||||||
Tier
1 capital | 189,038 | 189,038 | |||||||||
Total capital (2) | 221,304 | 212,878 | |||||||||
Risk-weighted
assets (in billions) | 1,437 | 1,409 | |||||||||
Common equity tier 1 capital ratio | 11.6 | % | 11.9 | % | 8.25 | % | |||||
Tier
1 capital ratio | 13.2 | 13.4 | 9.75 | ||||||||
Total capital ratio | 15.4 | 15.1 | 11.75 | ||||||||
Leverage-based
metrics: | |||||||||||
Adjusted quarterly average assets (in billions) (3) | $ | 2,258 | $ | 2,258 | |||||||
Tier
1 leverage ratio | 8.4 | % | 8.4 | % | 4.0 | ||||||
SLR
leverage exposure (in billions) | $ | 2,791 | |||||||||
SLR | 6.8 | % | 5.0 |
(1) | The
capital conservation buffer and G-SIB surcharge were both 2.5 percent at June 30, 2019 and 1.875 percent at December 31, 2018. The countercyclical capital buffer for both periods was zero. The SLR minimum includes a leverage buffer of 2.0 percent. |
(2) | Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2
capital related to the qualifying allowance for credit losses. |
(3) | Reflects total average assets adjusted for certain Tier 1 capital deductions. |
Table
10 | Capital Composition under Basel 3 | |||||||
(Dollars in millions) | June 30 2019 | December 31
2018 | ||||||
Total common shareholders’ equity | $ | 246,719 | $ | 242,999 | ||||
Goodwill, net of related deferred tax liabilities | (68,571 | ) | (68,572 | ) | ||||
Deferred
tax assets arising from net operating loss and tax credit carryforwards | (5,332 | ) | (5,981 | ) | ||||
Intangibles, other than mortgage servicing rights and goodwill, net of related deferred tax liabilities | (1,342 | ) | (1,294 | ) | ||||
Other | 24 | 120 | ||||||
Common
equity tier 1 capital | 171,498 | 167,272 | ||||||
Qualifying preferred stock, net of issuance cost | 24,688 | 22,326 | ||||||
Other | (647 | ) | (560 | ) | ||||
Tier 1
capital | 195,539 | 189,038 | ||||||
Tier 2 capital instruments | 23,107 | 21,887 | ||||||
Eligible credit reserves included
in Tier 2 capital | 2,272 | 1,972 | ||||||
Other | (14 | ) | (19 | ) | ||||
Total capital under the Advanced approaches | $ | 220,904 | $ | 212,878 |
23 Bank of America |
Table
11 | Risk-weighted Assets under Basel 3 | |||||||||||||||
Standardized
Approach | Advanced Approaches | Standardized Approach | Advanced Approaches | |||||||||||||
(Dollars in billions) | ||||||||||||||||
Credit risk | $ | 1,416 | $ | 848 | $ | 1,384 | $ | 827 | ||||||||
Market
risk | 51 | 50 | 53 | 52 | ||||||||||||
Operational risk | n/a | 500 | n/a | 500 | ||||||||||||
Risks
related to credit valuation adjustments | n/a | 33 | n/a | 30 | ||||||||||||
Total risk-weighted assets | $ | 1,467 | $ | 1,431 | $ | 1,437 | $ | 1,409 |
Table
12 | Bank of America, N.A. Regulatory Capital under Basel 3 | ||||||||||
Standardized Approach | Advanced Approaches | Regulatory Minimum (1) | |||||||||
(Dollars
in millions, except as noted) | |||||||||||
Risk-based capital metrics: | |||||||||||
Common equity tier 1 capital | $ | 154,703 | $ | 154,703 | |||||||
Tier
1 capital | 154,703 | 154,703 | |||||||||
Total capital (2) | 166,719 | 158,962 | |||||||||
Risk-weighted
assets (in billions) | 1,220 | 977 | |||||||||
Common equity tier 1 capital ratio | 12.7 | % | 15.8 | % | 7.0 | % | |||||
Tier
1 capital ratio | 12.7 | 15.8 | 8.5 | ||||||||
Total capital ratio | 13.7 | 16.3 | 10.5 | ||||||||
Leverage-based
metrics: | |||||||||||
Adjusted quarterly average assets (in billions) (3) | 1,725 | 1,725 | |||||||||
Tier
1 leverage ratio | 9.0 | % | 9.0 | % | 5.0 | ||||||
SLR
leverage exposure (in billions) | 2,120 | ||||||||||
SLR | 7.3 | % | 6.0 | ||||||||
Risk-based capital metrics: | |||||||||||
Common equity tier 1 capital | $ | 149,824 | $ | 149,824 | |||||||
Tier
1 capital | 149,824 | 149,824 | |||||||||
Total capital (2) | 161,760 | 153,627 | |||||||||
Risk-weighted
assets (in billions) | 1,195 | 959 | |||||||||
Common equity tier 1 capital ratio | 12.5 | % | 15.6 | % | 6.5 | % | |||||
Tier
1 capital ratio | 12.5 | 15.6 | 8.0 | ||||||||
Total capital ratio | 13.5 | 16.0 | 10.0 | ||||||||
Leverage-based
metrics: | |||||||||||
Adjusted quarterly average assets (in billions) (3) | 1,719 | 1,719 | |||||||||
Tier
1 leverage ratio | 8.7 | % | 8.7 | % | 5.0 | ||||||
SLR
leverage exposure (in billions) | 2,112 | ||||||||||
SLR | 7.1 | % | 6.0 |
(1) | Risk-based
capital regulatory minimums at June 30, 2019 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimums for the leverage ratios as of both period ends and risk-based capital ratios as of December 31, 2018 are the percent required to be considered well capitalized under the PCA framework. |
(2) | Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses. |
(3) | Reflects
total average assets adjusted for certain Tier 1 capital deductions. |
Bank of America 24 |
Table
13 | Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt | |||||||||||||
TLAC | Regulatory
Minimum (1) | Long-term Debt | Regulatory Minimum (2) | |||||||||||
(Dollars in millions, except ratios) | ||||||||||||||
Total eligible balance | $ | 373,680 | $ | 172,480 | ||||||||||
Percentage
of risk-weighted assets (3) | 25.5 | % | 22.0 | % | 11.8 | % | 8.5 | % | ||||||
Percentage of SLR leverage exposure | 13.0 | 9.5 | 6.0 | 4.5 |
(1) | The
TLAC risk-weighted assets regulatory minimum consists of 18.0 percent plus a TLAC risk-weighted assets buffer comprised of 2.5 percent plus the method 1 G-SIB surcharge of 1.5 percent. The countercyclical buffer is zero for this period. The TLAC SLR leverage exposure regulatory minimum consists of 7.5 percent plus a 2.0 percent TLAC leverage buffer. The TLAC risk-weighted assets and leverage buffers must be comprised solely of CET1 capital and Tier 1 capital, respectively. |
(2) | The long-term debt risk-weighted assets regulatory minimum is comprised of 6.0 percent plus an additional 2.5 percent requirement based on the Corporation’s method 2 G-SIB surcharge. |
(3) | The
approach that yields the higher risk-weighted assets is used to calculate TLAC and long-term debt ratios, which was the Standardized approach as of June 30, 2019. |
25 Bank of America |
Table
14 | Average Global Liquidity Sources | |||||||
Three Months Ended | ||||||||
(Dollars in billions) | June 30 2019 | December 31
2018 | ||||||
Parent company and NB Holdings | $ | 64 | $ | 76 | ||||
Bank subsidiaries | 432 | 420 | ||||||
Other
regulated entities | 56 | 48 | ||||||
Total Average Global Liquidity Sources | $ | 552 | $ | 544 |
Table
15 | Average Global Liquidity Sources Composition | |||||||
Three Months Ended | ||||||||
(Dollars in billions) | June 30 2019 | December 31 2018 | ||||||
Cash
on deposit | $ | 101 | $ | 113 | ||||
U.S. Treasury securities | 97 | 81 | ||||||
U.S.
agency securities and mortgage-backed securities | 341 | 340 | ||||||
Non-U.S. government securities | 13 | 10 | ||||||
Total Average
Global Liquidity Sources | $ | 552 | $ | 544 |
Bank of America 26 |
Table
16 | Long-term Debt by Maturity | |||||||||||||||||||||||||||
(Dollars
in millions) | Remainder of 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Bank
of America Corporation | ||||||||||||||||||||||||||||
Senior
notes (1) | $ | 3,568 | $ | 10,363 | $ | 15,988 | $ | 14,983 | $ | 23,141 | $ | 89,364 | $ | 157,407 | ||||||||||||||
Senior
structured notes | 1,204 | 848 | 500 | 2,030 | 315 | 12,131 | 17,028 | |||||||||||||||||||||
Subordinated
notes | — | — | 347 | 383 | — | 21,586 | 22,316 | |||||||||||||||||||||
Junior
subordinated notes | — | — | — | — | — | 736 | 736 | |||||||||||||||||||||
Total
Bank of America Corporation | 4,772 | 11,211 | 16,835 | 17,396 | 23,456 | 123,817 | 197,487 | |||||||||||||||||||||
Bank
of America, N.A. | ||||||||||||||||||||||||||||
Senior
notes | — | 2,750 | 2,000 | — | 511 | 20 | 5,281 | |||||||||||||||||||||
Subordinated
notes | — | — | — | — | — | 1,732 | 1,732 | |||||||||||||||||||||
Advances
from Federal Home Loan Banks | 2,004 | 2,510 | 2 | 3 | 1 | 100 | 4,620 | |||||||||||||||||||||
Securitizations
and other Bank VIEs (2) | — | 3,099 | 4,023 | — | — | — | 7,122 | |||||||||||||||||||||
Other | 229 | 92 | — | 3 | 127 | 92 | 543 | |||||||||||||||||||||
Total
Bank of America, N.A. | 2,233 | 8,451 | 6,025 | 6 | 639 | 1,944 | 19,298 | |||||||||||||||||||||
Other
debt | ||||||||||||||||||||||||||||
Structured
liabilities | 2,649 | 3,910 | 1,341 | 816 | 1,018 | 11,224 | 20,958 | |||||||||||||||||||||
Nonbank
VIEs (2) | — | — | — | — | 1 | 267 | 268 | |||||||||||||||||||||
Total
other debt | 2,649 | 3,910 | 1,341 | 816 | 1,019 | 11,491 | 21,226 | |||||||||||||||||||||
Total
long-term debt | $ | 9,654 | $ | 23,572 | $ | 24,201 | $ | 18,218 | $ | 25,114 | $ | 137,252 | $ | 238,011 |
(1)
| Total includes $101.1 billion of outstanding notes that are both TLAC eligible and callable at least one year before their stated maturities, including $1.0 billion that will be callable and become TLAC ineligible during the remainder of 2019, and $7.4 billion, $11.7 billion, $14.9 billion and $10.7 billion that will do so during each of 2020 through 2023, respectively, and $55.4 billion thereafter. |
(2)
| Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet. |
Table
17 | Long-term Debt by Major Currency | |||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | ||||||
U.S. dollar | $ | 186,394 | $ | 180,724 | ||||
Euro | 34,490 | 34,328 | ||||||
British
pound | 5,453 | 5,450 | ||||||
Japanese yen | 4,302 | 3,038 | ||||||
Canadian dollar | 3,871 | 2,936 | ||||||
Australian
dollar | 1,822 | 1,722 | ||||||
Other | 1,679 | 1,194 | ||||||
Total long-term debt | $ | 238,011 | $ | 229,392 |
27 Bank
of America |
Table
18 | Senior Debt Ratings | |||||||||||||||||
Moody’s Investors Service | Standard & Poor’s Global Ratings | Fitch Ratings | ||||||||||||||||
Long-term | Short-term | Outlook | Long-term | Short-term | Outlook | Long-term | Short-term | Outlook | ||||||||||
Bank
of America Corporation | A2 | P-1 | Stable | A- | A-2 | Stable | A+ | F1 | Stable | |||||||||
Bank
of America, N.A. | Aa2 | P-1 | Stable | A+ | A-1 | Stable | AA- | F1+ | Stable | |||||||||
Bank
of America Merrill Lynch International Designated Activity Company | NR | NR | NR | A+ | A-1 | Stable | AA- | F1+ | Stable | |||||||||
Merrill
Lynch, Pierce, Fenner & Smith Incorporated | NR | NR | NR | A+ | A-1 | Stable | AA- | F1+ | Stable | |||||||||
BofA
Securities, Inc. | NR | NR | NR | A+ | A-1 | Stable | AA- | F1+ | Stable | |||||||||
Merrill
Lynch International | NR | NR | NR | A+ | A-1 | Stable | A+ | F1 | Stable | |||||||||
BofA
Securities Europe SA | NR | NR | NR | A+ | A-1 | Stable | A+ | F1 | Stable |
Bank
of America 28 |
Table
19 | Consumer Credit Quality | |||||||||||||||||||||||
Outstandings | Nonperforming | Accruing
Past Due 90 Days or More | ||||||||||||||||||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | June 30 2019 | December 31
2018 | ||||||||||||||||||
Residential mortgage (1) | $ | 219,929 | $ | 208,557 | $ | 1,744 | $ | 1,893 | $ | 1,364 | $ | 1,884 | ||||||||||||
Home
equity | 44,134 | 48,286 | 1,203 | 1,893 | — | — | ||||||||||||||||||
U.S.
credit card | 93,989 | 98,338 | n/a | n/a | 941 | 994 | ||||||||||||||||||
Direct/Indirect
consumer (2) | 90,850 | 91,166 | 80 | 56 | 28 | 38 | ||||||||||||||||||
Other
consumer | 174 | 202 | — | — | — | — | ||||||||||||||||||
Consumer
loans excluding loans accounted for under the fair value option | $ | 449,076 | $ | 446,549 | $ | 3,027 | $ | 3,842 | $ | 2,333 | $ | 2,916 | ||||||||||||
Loans
accounted for under the fair value option (3) | 658 | 682 | ||||||||||||||||||||||
Total
consumer loans and leases | $ | 449,734 | $ | 447,231 | ||||||||||||||||||||
Percentage
of outstanding consumer loans and leases (4) | n/a | n/a | 0.67 | % | 0.86 | % | 0.52 | % | 0.65 | % | ||||||||||||||
Percentage
of outstanding consumer loans and leases, excluding fully-insured loan portfolios (4) | n/a | n/a | 0.70 | 0.90 | 0.23 | 0.24 |
(1) | Residential
mortgage loans accruing past due 90 days or more are fully-insured loans. At June 30, 2019 and December 31, 2018, residential mortgage includes $1.1 billion and $1.4 billion of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $345 million and $498 million of loans on which interest was still accruing. |
(2) | Outstandings
include auto and specialty lending loans and leases of $50.3 billion and $50.1 billion, unsecured consumer lending loans of $344 million and $383 million, U.S. securities-based lending loans of $36.5 billion and $37.0 billion, non-U.S. consumer loans of $2.9 billion and $2.9 billion and other consumer loans of $811 million and $746 million at June 30, 2019 and December
31, 2018. |
(3) | Consumer loans accounted for under the fair value option include residential mortgage loans of $300 million and $336 million and home equity loans of $358 million and $346 million at June 30, 2019 and December 31, 2018. For more information on the fair value option, see Note
16 – Fair Value Option to the Consolidated Financial Statements. |
(4) | Excludes consumer loans accounted for under the fair value option. At June 30, 2019 and December 31, 2018, $10 million and $12 million of loans accounted for under the fair value option were past due 90 days or more and not accruing interest. |
Table
20 | Consumer Net Charge-offs and Related Ratios | |||||||||||||||||||||||||||
Net
Charge-offs | Net Charge-off Ratios (1) | |||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Residential
mortgage | $ | 3 | $ | 7 | $ | (13 | ) | $ | 1 | 0.01 | % | 0.01 | % | (0.01 | )% | — | % | |||||||||||
Home
equity | (155 | ) | — | (144 | ) | 33 | (1.36 | ) | — | (0.62 | ) | 0.12 | ||||||||||||||||
U.S.
credit card | 762 | 739 | 1,507 | 1,440 | 3.26 | 3.17 | 3.22 | 3.09 | ||||||||||||||||||||
Direct/Indirect
consumer | 40 | 41 | 94 | 100 | 0.18 | 0.18 | 0.21 | 0.21 | ||||||||||||||||||||
Other
consumer | 41 | 43 | 82 | 86 | n/m | n/m | n/m | n/m | ||||||||||||||||||||
Total | $ | 691 | $ | 830 | $ | 1,526 | $ | 1,660 | 0.62 | 0.74 | 0.69 | 0.75 |
(1) | Net
charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option. |
29 Bank
of America |
Table
21 | Consumer Real Estate Portfolio (1) | |||||||||||||||||||||||||||||||
Outstandings | Nonperforming | Net
Charge-offs | ||||||||||||||||||||||||||||||
June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | Three Months Ended June 30 | Six
Months Ended June 30 | |||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Core
portfolio | ||||||||||||||||||||||||||||||||
Residential
mortgage | $ | 207,257 | $ | 193,695 | $ | 989 | $ | 1,010 | $ | 7 | $ | 4 | $ | 4 | $ | 13 | ||||||||||||||||
Home
equity | 37,577 | 40,010 | 727 | 955 | 10 | 14 | 31 | 37 | ||||||||||||||||||||||||
Total
core portfolio | 244,834 | 233,705 | 1,716 | 1,965 | 17 | 18 | 35 | 50 | ||||||||||||||||||||||||
Non-core
portfolio | ||||||||||||||||||||||||||||||||
Residential
mortgage | 12,672 | 14,862 | 755 | 883 | (4 | ) | 3 | (17 | ) | (12 | ) | |||||||||||||||||||||
Home
equity | 6,557 | 8,276 | 476 | 938 | (165 | ) | (14 | ) | (175 | ) | (4 | ) | ||||||||||||||||||||
Total
non-core portfolio | 19,229 | 23,138 | 1,231 | 1,821 | (169 | ) | (11 | ) | (192 | ) | (16 | ) | ||||||||||||||||||||
Consumer
real estate portfolio | ||||||||||||||||||||||||||||||||
Residential
mortgage | 219,929 | 208,557 | 1,744 | 1,893 | 3 | 7 | (13 | ) | 1 | |||||||||||||||||||||||
Home
equity | 44,134 | 48,286 | 1,203 | 1,893 | (155 | ) | — | (144 | ) | 33 | ||||||||||||||||||||||
Total
consumer real estate portfolio | $ | 264,063 | $ | 256,843 | $ | 2,947 | $ | 3,786 | $ | (152 | ) | $ | 7 | $ | (157 | ) | $ | 34 | ||||||||||||||
Allowance
for Loan and Lease Losses | Provision for Loan and Lease Losses | |||||||||||||||||||||||||||||||
June 30 2019 | December 31 2018 | Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Core
portfolio | ||||||||||||||||||||||||||||||||
Residential
mortgage | $ | 217 | $ | 214 | $ | 11 | $ | 1 | $ | 7 | $ | 9 | ||||||||||||||||||||
Home
equity | 164 | 228 | (11 | ) | (23 | ) | (33 | ) | (24 | ) | ||||||||||||||||||||||
Total
core portfolio | 381 | 442 | — | (22 | ) | (26 | ) | (15 | ) | |||||||||||||||||||||||
Non-core
portfolio | ||||||||||||||||||||||||||||||||
Residential
mortgage | 141 | 208 | (21 | ) | (39 | ) | (52 | ) | (125 | ) | ||||||||||||||||||||||
Home
equity | 197 | 278 | (218 | ) | (60 | ) | (231 | ) | (109 | ) | ||||||||||||||||||||||
Total
non-core portfolio | 338 | 486 | (239 | ) | (99 | ) | (283 | ) | (234 | ) | ||||||||||||||||||||||
Consumer
real estate portfolio | ||||||||||||||||||||||||||||||||
Residential
mortgage | 358 | 422 | (10 | ) | (38 | ) | (45 | ) | (116 | ) | ||||||||||||||||||||||
Home
equity | 361 | 506 | (229 | ) | (83 | ) | (264 | ) | (133 | ) | ||||||||||||||||||||||
Total
consumer real estate portfolio | $ | 719 | $ | 928 | $ | (239 | ) | $ | (121 | ) | $ | (309 | ) | $ | (249 | ) |
(1) | Outstandings
and nonperforming loans exclude loans accounted for under the fair value option. Consumer loans accounted for under the fair value option include residential mortgage loans of $300 million and $336 million and home equity loans of $358 million and $346 million at June 30, 2019 and December 31, 2018. For additional information, see Note 16 – Fair Value Option to the Consolidated Financial Statements. |
Bank of America 30 |
Table
22 | Residential Mortgage – Key Credit Statistics | |||||||||||||||||||||||
Reported
Basis (1) | Excluding Fully-insured Loans (1) | |||||||||||||||||||||||
(Dollars in millions) | June 30
2019 | December 31 2018 | June 30 2019 | December 31 2018 | ||||||||||||||||||||
Outstandings | $ | 219,929 | $ | 208,557 | $ | 200,621 | $ | 188,427 | ||||||||||||||||
Accruing
past due 30 days or more | 3,208 | 3,945 | 1,053 | 1,155 | ||||||||||||||||||||
Accruing
past due 90 days or more | 1,364 | 1,884 | — | — | ||||||||||||||||||||
Nonperforming
loans | 1,744 | 1,893 | 1,744 | 1,893 | ||||||||||||||||||||
Percent
of portfolio | ||||||||||||||||||||||||
Refreshed
LTV greater than 90 but less than or equal to 100 | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||||
Refreshed
LTV greater than 100 | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Refreshed
FICO below 620 | 3 | 4 | 2 | 2 | ||||||||||||||||||||
2006
and 2007 vintages (2) | 5 | 6 | 5 | 6 |
(1) | Outstandings,
accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option. |
(2) | These vintages of loans accounted for $479 million, or 27 percent, and $536 million, or 28 percent, of nonperforming residential mortgage loans at June 30, 2019 and December 31, 2018. |
Table
23 | Residential Mortgage State Concentrations | |||||||||||||||||||||||||||||||
Outstandings (1) | Nonperforming
(1) | Net Charge-offs | ||||||||||||||||||||||||||||||
June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
California | $ | 81,777 | $ | 76,323 | $ | 314 | $ | 314 | $ | (2 | ) | $ | (7 | ) | $ | (10 | ) | $ | (17 | ) | ||||||||||||
New
York (2) | 20,564 | 19,219 | 195 | 222 | 1 | 2 | 1 | 6 | ||||||||||||||||||||||||
Florida
(2) | 12,169 | 11,624 | 192 | 221 | (1 | ) | — | (4 | ) | (5 | ) | |||||||||||||||||||||
Texas | 8,286 | 7,820 | 86 | 102 | — | 2 | (1 | ) | 3 | |||||||||||||||||||||||
New
Jersey (2) | 7,741 | 7,051 | 95 | 98 | — | 3 | (2 | ) | 5 | |||||||||||||||||||||||
Other | 70,084 | 66,390 | 862 | 936 | 5 | 7 | 3 | 9 | ||||||||||||||||||||||||
Residential
mortgage loans (3) | $ | 200,621 | $ | 188,427 | $ | 1,744 | $ | 1,893 | $ | 3 | $ | 7 | $ | (13 | ) | $ | 1 | |||||||||||||||
Fully-insured
loan portfolio | 19,308 | 20,130 | ||||||||||||||||||||||||||||||
Total
residential mortgage loan portfolio | $ | 219,929 | $ | 208,557 |
(1) | Outstandings
and nonperforming loans exclude loans accounted for under the fair value option. |
(2) | In these states, foreclosure requires a court order following a legal proceeding (judicial states). |
(3) | Amounts exclude the fully-insured loan portfolio. |
31 Bank
of America |
Table
24 | Home Equity – Key Credit Statistics (1) | |||||||||||||||
(Dollars
in millions) | June 30 2019 | December 31 2018 | ||||||||||||||
Outstandings | $ | 44,134 | $ | 48,286 | ||||||||||||
Accruing
past due 30 days or more (2) | 266 | 363 | ||||||||||||||
Nonperforming loans (2) | 1,203 | 1,893 | ||||||||||||||
Percent
of portfolio | ||||||||||||||||
Refreshed CLTV greater than 90 but less than or equal to 100 | 2 | % | 2 | % | ||||||||||||
Refreshed
CLTV greater than 100 | 3 | 3 | ||||||||||||||
Refreshed FICO below 620 | 4 | 5 | ||||||||||||||
2006
and 2007 vintages (3) | 20 | 22 |
(1) | Outstandings,
accruing past due, nonperforming loans and percentages of the portfolio exclude loans accounted for under the fair value option. |
(2) | Accruing past due 30 days or more include $38 million and $48 million and nonperforming loans include $117 million and $218 million of loans where we serviced the underlying first lien at June 30, 2019 and December 31, 2018. |
(3) | These
vintages of loans have higher refreshed combined loan-to-value (CLTV) ratios and accounted for 45 percent and 49 percent of nonperforming home equity loans at June 30, 2019 and December 31, 2018. |
Bank of America 32 |
Table
25 | Home Equity State Concentrations | |||||||||||||||||||||||||||||||
Outstandings
(1) | Nonperforming (1) | Net Charge-offs | ||||||||||||||||||||||||||||||
June 30 2019 | December 31 2018 | June 30
2019 | December 31 2018 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
California | $ | 12,358 | $ | 13,515 | $ | 288 | $ | 536 | $ | (50 | ) | $ | (14 | ) | $ | (55 | ) | $ | (21 | ) | ||||||||||||
Florida
(2) | 4,841 | 5,418 | 186 | 315 | (39 | ) | 3 | (42 | ) | 13 | ||||||||||||||||||||||
New
Jersey (2) | 3,549 | 3,871 | 107 | 150 | (3 | ) | 5 | 2 | 14 | |||||||||||||||||||||||
New
York (2) | 3,228 | 3,590 | 148 | 194 | (4 | ) | 2 | 6 | 8 | |||||||||||||||||||||||
Massachusetts | 2,203 | 2,400 | 49 | 65 | — | 1 | — | 3 | ||||||||||||||||||||||||
Other | 17,955 | 19,492 | 425 | 633 | (59 | ) | 3 | (55 | ) | 16 | ||||||||||||||||||||||
Total
home equity loan portfolio | $ | 44,134 | $ | 48,286 | $ | 1,203 | $ | 1,893 | $ | (155 | ) | $ | — | $ | (144 | ) | $ | 33 |
(1) | Outstandings
and nonperforming loans exclude loans accounted for under the fair value option. |
(2) | In these states, foreclosure requires a court order following a legal proceeding (judicial states). |
Table
26 | U.S. Credit Card State Concentrations | |||||||||||||||||||||||||||||||
Outstandings | Accruing
Past Due 90 Days or More | Net Charge-offs | ||||||||||||||||||||||||||||||
June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
California | $ | 15,463 | $ | 16,062 | $ | 164 | $ | 163 | $ | 134 | $ | 122 | $ | 266 | $ | 238 | ||||||||||||||||
Florida | 8,534 | 8,840 | 117 | 119 | 92 | 91 | 182 | 168 | ||||||||||||||||||||||||
Texas | 7,445 | 7,730 | 82 | 84 | 63 | 59 | 122 | 115 | ||||||||||||||||||||||||
New
York | 5,773 | 6,066 | 81 | 81 | 59 | 72 | 120 | 142 | ||||||||||||||||||||||||
Washington | 4,453 | 4,558 | 22 | 24 | 18 | 17 | 36 | 32 | ||||||||||||||||||||||||
Other | 52,321 | 55,082 | 475 | 523 | 396 | 378 | 781 | 745 | ||||||||||||||||||||||||
Total
U.S. credit card portfolio | $ | 93,989 | $ | 98,338 | $ | 941 | $ | 994 | $ | 762 | $ | 739 | $ | 1,507 | $ | 1,440 |
33 Bank
of America |
Table
27 | Direct/Indirect State Concentrations | |||||||||||||||||||||||||||||||
Outstandings | Accruing
Past Due 90 Days or More | Net Charge-offs | ||||||||||||||||||||||||||||||
June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
California | $ | 11,740 | $ | 11,734 | $ | 3 | $ | 4 | $ | 5 | $ | 5 | $ | 12 | $ | 11 | ||||||||||||||||
Florida | 10,034 | 10,240 | 3 | 4 | 8 | 9 | 16 | 19 | ||||||||||||||||||||||||
Texas | 9,698 | 9,876 | 4 | 6 | 5 | 7 | 15 | 16 | ||||||||||||||||||||||||
New
York | 6,343 | 6,296 | 1 | 2 | 3 | 2 | 6 | 5 | ||||||||||||||||||||||||
New
Jersey | 3,358 | 3,308 | 1 | 1 | 1 | — | 2 | 1 | ||||||||||||||||||||||||
Other | 49,677 | 49,712 | 16 | 21 | 18 | 18 | 43 | 48 | ||||||||||||||||||||||||
Total
direct/indirect loan portfolio | $ | 90,850 | $ | 91,166 | $ | 28 | $ | 38 | $ | 40 | $ | 41 | $ | 94 | $ | 100 |
Table
28 | Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity | |||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Nonperforming loans and leases, beginning of period | $ | 3,578 | $ | 4,906 | $ | 3,842 | $ | 5,166 | ||||||||
Additions
| 390 | 599 | 781 | 1,411 | ||||||||||||
Reductions: | ||||||||||||||||
Paydowns
and payoffs | (195 | ) | (261 | ) | (383 | ) | (506 | ) | ||||||||
Sales | (502 | ) | (117 | ) | (666 | ) | (386 | ) | ||||||||
Returns
to performing status (1) | (189 | ) | (336 | ) | (438 | ) | (700 | ) | ||||||||
Charge-offs | (29 | ) | (114 | ) | (57 | ) | (261 | ) | ||||||||
Transfers
to foreclosed properties | (26 | ) | (38 | ) | (52 | ) | (83 | ) | ||||||||
Transfers to loans held-for-sale | — | — | — | (2 | ) | |||||||||||
Total
net reductions to nonperforming loans and leases | (551 | ) | (267 | ) | (815 | ) | (527 | ) | ||||||||
Total nonperforming loans and leases, June 30 | 3,027 | 4,639 | 3,027 | 4,639 | ||||||||||||
Foreclosed
properties, June 30 (2) | 205 | 263 | 205 | 263 | ||||||||||||
Nonperforming consumer loans, leases
and foreclosed properties, June 30 | $ | 3,232 | $ | 4,902 | $ | 3,232 | $ | 4,902 | ||||||||
Nonperforming
consumer loans and leases as a percentage of outstanding consumer loans and leases (3) | 0.67 | % | 1.03 | % | ||||||||||||
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and
foreclosed properties (3) | 0.72 | 1.09 |
(1) | Consumer
loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. |
(2) | Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally FHA-insured, of $294 million and $573 million at June 30, 2019 and 2018. |
(3) | Outstanding
consumer loans and leases exclude loans accounted for under the fair value option. |
Bank of America 34 |
Table
29 | Consumer Real Estate Troubled Debt Restructurings | |||||||||||||||||||||||
(Dollars in millions) | Nonperforming | Performing | Total | Nonperforming | Performing | Total | ||||||||||||||||||
Residential
mortgage (1, 2) | $ | 1,110 | $ | 4,379 | $ | 5,489 | $ | 1,209 | $ | 4,988 | $ | 6,197 | ||||||||||||
Home
equity (3) | 631 | 1,132 | 1,763 | 1,107 | 1,252 | 2,359 | ||||||||||||||||||
Total
consumer real estate troubled debt restructurings | $ | 1,741 | $ | 5,511 | $ | 7,252 | $ | 2,316 | $ | 6,240 | $ | 8,556 |
(1) | At
June 30, 2019 and December 31, 2018, residential mortgage TDRs deemed collateral dependent totaled $1.5 billion and $1.6 billion, and included $916 million and $960 million of loans classified as nonperforming and $538 million and $605 million of loans classified as performing. |
(2) | Residential
mortgage performing TDRs include $2.3 billion and $2.8 billion of loans that were fully-insured at June 30, 2019 and December 31, 2018. |
(3) | At June 30, 2019 and December 31, 2018, home equity TDRs deemed collateral dependent totaled $817
million and $1.3 billion, and include $534 million and $961 million of loans classified as nonperforming and $283 million and $322 million of loans classified as performing. |
Table
30 | Commercial Credit Exposure by Type | |||||||||||||||||||||||
Commercial
Utilized (1) | Commercial Unfunded (2, 3, 4) | Total Commercial Committed | ||||||||||||||||||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | June 30 2019 | December 31
2018 | June 30 2019 | December 31 2018 | ||||||||||||||||||
Loans and leases | $ | 514,066 | $ | 499,664 | $ | 378,230 | $ | 369,282 | $ | 892,296 | $ | 868,946 | ||||||||||||
Derivative
assets (5) | 44,912 | 43,725 | — | — | 44,912 | 43,725 | ||||||||||||||||||
Standby
letters of credit and financial guarantees | 33,173 | 34,941 | 673 | 491 | 33,846 | 35,432 | ||||||||||||||||||
Debt
securities and other investments | 24,033 | 25,425 | 5,094 | 4,250 | 29,127 | 29,675 | ||||||||||||||||||
Loans
held-for-sale | 4,088 | 9,090 | 18,817 | 14,812 | 22,905 | 23,902 | ||||||||||||||||||
Operating
leases | 6,345 | 6,060 | — | — | 6,345 | 6,060 | ||||||||||||||||||
Commercial
letters of credit | 1,255 | 1,210 | 874 | 168 | 2,129 | 1,378 | ||||||||||||||||||
Other | 897 | 898 | — | — | 897 | 898 | ||||||||||||||||||
Total | $ | 628,769 | $ | 621,013 | $ | 403,688 | $ | 389,003 | $ | 1,032,457 | $ | 1,010,016 |
(1) | Commercial
utilized exposure includes loans of $7.2 billion and $3.7 billion and issued letters of credit with a notional amount of $107 million and $100 million accounted for under the fair value option at June 30, 2019 and December 31, 2018. |
(2) | Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional
amount of $4.5 billion and $3.0 billion at June 30, 2019 and December 31, 2018. |
(3) | Excludes unused business card lines, which are not legally binding. |
(4) | Includes the notional amount
of unfunded legally binding lending commitments net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.6 billion and $10.7 billion at June 30, 2019 and December 31, 2018. |
(5) | Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $33.9
billion and $32.4 billion at June 30, 2019 and December 31, 2018. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $33.1 billion and $33.0 billion at June 30, 2019 and December 31, 2018, which consists primarily of other marketable securities. |
35 Bank
of America |
Table
31 | Commercial Credit Quality | |||||||||||||||||||||||
Outstandings | Nonperforming | Accruing Past Due 90 Days or More | ||||||||||||||||||||||
(Dollars
in millions) | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | ||||||||||||||||||
Commercial
and industrial: | ||||||||||||||||||||||||
U.S. commercial | $ | 305,695 | $ | 299,277 | $ | 820 | $ | 794 | $ | 132 | $ | 197 | ||||||||||||
Non-U.S.
commercial | 104,173 | 98,776 | 122 | 80 | — | — | ||||||||||||||||||
Total
commercial and industrial | 409,868 | 398,053 | 942 | 874 | 132 | 197 | ||||||||||||||||||
Commercial
real estate (1) | 61,659 | 60,845 | 112 | 156 | 6 | 4 | ||||||||||||||||||
Commercial
lease financing | 20,384 | 22,534 | 55 | 18 | 15 | 29 | ||||||||||||||||||
491,911 | 481,432 | 1,109 | 1,048 | 153 | 230 | |||||||||||||||||||
U.S.
small business commercial (2) | 14,950 | 14,565 | 51 | 54 | 87 | 84 | ||||||||||||||||||
Commercial
loans excluding loans accounted for under the fair value option | 506,861 | 495,997 | 1,160 | 1,102 | 240 | 314 | ||||||||||||||||||
Loans
accounted for under the fair value option (3) | 7,205 | 3,667 | — | — | — | — | ||||||||||||||||||
Total
commercial loans and leases | $ | 514,066 | $ | 499,664 | $ | 1,160 | $ | 1,102 | $ | 240 | $ | 314 |
(1) | Includes
U.S. commercial real estate of $57.0 billion and $56.6 billion and non-U.S. commercial real estate of $4.6 billion and $4.2 billion at June 30, 2019 and December 31, 2018. |
(2) | Includes card-related products. |
(3) | Commercial
loans accounted for under the fair value option include U.S. commercial of $3.9 billion and $2.5 billion and non-U.S. commercial of $3.3 billion and $1.1 billion at June 30, 2019 and December 31, 2018. For more information on the fair value option, see Note 16 – Fair Value Option to the Consolidated Financial Statements. |
Table
32 | Commercial Net Charge-offs and Related Ratios | |||||||||||||||||||||||||||
Net
Charge-offs | Net Charge-off Ratios (1) | |||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Commercial
and industrial: | ||||||||||||||||||||||||||||
U.S.
commercial | $ | 66 | $ | 78 | $ | 149 | $ | 102 | 0.09 | % | 0.11 | % | 0.10 | % | 0.07 | % | ||||||||||||
Non-U.S.
commercial | 48 | 19 | 48 | 23 | 0.19 | 0.08 | 0.10 | 0.05 | ||||||||||||||||||||
Total
commercial and industrial | 114 | 97 | 197 | 125 | 0.11 | 0.10 | 0.10 | 0.07 | ||||||||||||||||||||
Commercial
real estate | 4 | 4 | 9 | 1 | 0.02 | 0.03 | 0.03 | — | ||||||||||||||||||||
Commercial
lease financing | 13 | 1 | 13 | — | 0.26 | 0.01 | 0.13 | — | ||||||||||||||||||||
131 | 102 | 219 | 126 | 0.11 | 0.09 | 0.09 | 0.05 | |||||||||||||||||||||
U.S.
small business commercial | 65 | 64 | 133 | 121 | 1.76 | 1.82 | 1.83 | 1.75 | ||||||||||||||||||||
Total
commercial | $ | 196 | $ | 166 | $ | 352 | $ | 247 | 0.16 | 0.14 | 0.14 | 0.10 |
(1) | Net
charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option. |
Table
33 | Commercial Reservable Criticized Utilized Exposure (1, 2) | |||||||||||||
(Dollars in millions) | ||||||||||||||
Commercial and industrial: | ||||||||||||||
U.S. commercial | $ | 8,586 | 2.58 | % | $ | 7,986 | 2.43 | % | ||||||
Non-U.S.
commercial | 1,251 | 1.14 | 1,013 | 0.97 | ||||||||||
Total commercial and industrial | 9,837 | 2.22 | 8,999 | 2.08 | ||||||||||
Commercial
real estate | 843 | 1.33 | 936 | 1.50 | ||||||||||
Commercial lease financing | 373 | 1.83 | 366 | 1.62 | ||||||||||
11,053 | 2.10 | 10,301 | 1.99 | |||||||||||
U.S.
small business commercial | 781 | 5.23 | 760 | 5.22 | ||||||||||
Total commercial reservable criticized utilized exposure (1) | $ | 11,834 | 2.19 | $ | 11,061 | 2.08 |
(1) | Total
commercial reservable criticized utilized exposure includes loans and leases of $11.2 billion and $10.3 billion and commercial letters of credit of $680 million and $781 million at June 30, 2019 and December 31, 2018. |
(2) | Percentages are calculated as commercial reservable criticized utilized exposure divided by total commercial reservable
utilized exposure for each exposure category. |
Bank of America 36 |
Table 34 | Outstanding Commercial
Real Estate Loans | |||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | ||||||
By Geographic Region | ||||||||
California | $ | 14,911 | $ | 14,002 | ||||
Northeast | 10,858 | 10,895 | ||||||
Southwest | 7,235 | 7,339 | ||||||
Southeast | 5,538 | 5,726 | ||||||
Midwest | 3,832 | 3,772 | ||||||
Florida | 3,821 | 3,680 | ||||||
Illinois | 3,084 | 2,989 | ||||||
Midsouth | 2,833 | 2,919 | ||||||
Northwest | 1,949 | 2,178 | ||||||
Non-U.S. | 4,645 | 4,240 | ||||||
Other (1) | 2,953 | 3,105 | ||||||
Total
outstanding commercial real estate loans | $ | 61,659 | $ | 60,845 | ||||
By Property Type | ||||||||
Non-residential | ||||||||
Office | $ | 17,396 | $ | 17,246 | ||||
Shopping
centers / Retail | 8,497 | 8,798 | ||||||
Multi-family rental | 7,865 | 7,762 | ||||||
Hotels / Motels | 7,324 | 7,248 | ||||||
Industrial
/ Warehouse | 5,723 | 5,379 | ||||||
Unsecured | 3,178 | 2,956 | ||||||
Multi-use | 2,254 | 2,848 | ||||||
Other | 8,194 | 7,029 | ||||||
Total
non-residential | 60,431 | 59,266 | ||||||
Residential | 1,228 | 1,579 | ||||||
Total outstanding commercial real estate loans | $ | 61,659 | $ | 60,845 |
(1) | Includes
unsecured loans to real estate investment trusts and national home builders whose portfolios of properties span multiple geographic regions and properties in the states of Colorado, Utah, Hawaii, Wyoming and Montana. |
37 Bank of America |
Table
35 | Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2) | |||||||||||||||
Three Months Ended June 30 | Six
Months Ended June 30 | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Nonperforming loans and leases, beginning of period | $ | 1,272 | $ | 1,472 | $ | 1,102 | $ | 1,304 | ||||||||
Additions | 389 | 244 | 1,029 | 680 | ||||||||||||
Reductions: | ||||||||||||||||
Paydowns | (210 | ) | (193 | ) | (318 | ) | (362 | ) | ||||||||
Sales | (117 | ) | (50 | ) | (160 | ) | (74 | ) | ||||||||
Returns
to performing status (3) | (23 | ) | (91 | ) | (57 | ) | (118 | ) | ||||||||
Charge-offs | (151 | ) | (112 | ) | (248 | ) | (160 | ) | ||||||||
Transfers
to foreclosed properties | — | — | (7 | ) | — | |||||||||||
Transfers to loans held-for-sale | — | (12 | ) | (181 | ) | (12 | ) | |||||||||
Total
net reductions to nonperforming loans and leases | (112 | ) | (214 | ) | 58 | (46 | ) | |||||||||
Total nonperforming loans and leases, June 30 | 1,160 | 1,258 | 1,160 | 1,258 | ||||||||||||
Foreclosed
properties, June 30 | 60 | 21 | 60 | 21 | ||||||||||||
Nonperforming commercial loans, leases and foreclosed properties, June 30 | $ | 1,220 | $ | 1,279 | $ | 1,220 | $ | 1,279 | ||||||||
Nonperforming
commercial loans and leases as a percentage of outstanding commercial loans and leases (4) | 0.23 | % | 0.26 | % | ||||||||||||
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases
and foreclosed properties (4) | 0.24 | 0.27 |
(1) | Balances
do not include nonperforming loans held-for-sale of $278 million and $220 million at June 30, 2019 and 2018. |
(2) | Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming. |
(3) | Commercial
loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. TDRs are generally classified as performing after a sustained period of demonstrated payment performance. |
(4) | Outstanding commercial loans exclude loans accounted for under the fair value option. |
Table
36 | Commercial Troubled Debt Restructurings | |||||||||||||||||||||||
(Dollars in millions) | Nonperforming | Performing | Total | Nonperforming | Performing | Total | ||||||||||||||||||
Commercial
and industrial: | ||||||||||||||||||||||||
U.S. commercial | $ | 432 | $ | 895 | $ | 1,327 | $ | 306 | $ | 1,092 | $ | 1,398 | ||||||||||||
Non-U.S.
commercial | 121 | 217 | 338 | 78 | 162 | 240 | ||||||||||||||||||
Total
commercial and industrial | 553 | 1,112 | 1,665 | 384 | 1,254 | 1,638 | ||||||||||||||||||
Commercial
real estate | 109 | 70 | 179 | 114 | 6 | 120 | ||||||||||||||||||
Commercial
lease financing | 22 | 33 | 55 | 3 | 68 | 71 | ||||||||||||||||||
684 | 1,215 | 1,899 | 501 | 1,328 | 1,829 | |||||||||||||||||||
U.S.
small business commercial | 3 | 22 | 25 | 3 | 18 | 21 | ||||||||||||||||||
Total
commercial troubled debt restructurings | $ | 687 | $ | 1,237 | $ | 1,924 | $ | 504 | $ | 1,346 | $ | 1,850 |
Bank of America 38 |
Table
37 | Commercial Credit Exposure by Industry (1) | |||||||||||||||
Commercial
Utilized | Total Commercial Committed (2) | |||||||||||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | June 30 2019 | December 31
2018 | ||||||||||||
Asset managers and funds | $ | 70,196 | $ | 71,756 | $ | 108,005 | $ | 107,888 | ||||||||
Real
estate (3) | 66,907 | 65,328 | 89,729 | 86,514 | ||||||||||||
Capital goods | 39,594 | 39,192 | 75,129 | 75,080 | ||||||||||||
Finance
companies | 39,106 | 36,662 | 62,904 | 56,659 | ||||||||||||
Healthcare equipment and services | 35,420 | 35,763 | 57,097 | 56,489 | ||||||||||||
Government
and public education | 42,813 | 43,675 | 54,774 | 54,749 | ||||||||||||
Materials | 27,850 | 27,347 | 52,257 | 51,865 | ||||||||||||
Retailing | 26,496 | 25,333 | 47,936 | 47,507 | ||||||||||||
Consumer
services | 25,754 | 25,702 | 47,216 | 43,298 | ||||||||||||
Food, beverage and tobacco | 25,379 | 23,586 | 45,580 | 42,745 | ||||||||||||
Commercial
services and supplies | 22,179 | 22,623 | 37,784 | 39,349 | ||||||||||||
Energy | 14,953 | 13,727 | 37,377 | 32,279 | ||||||||||||
Transportation | 24,867 | 22,814 | 34,581 | 31,523 | ||||||||||||
Utilities | 12,141 | 12,035 | 31,254 | 27,623 | ||||||||||||
Global
commercial banks | 25,932 | 26,583 | 28,886 | 28,627 | ||||||||||||
Individuals and trusts | 18,880 | 18,643 | 25,752 | 25,019 | ||||||||||||
Media | 12,066 | 12,132 | 24,826 | 24,502 | ||||||||||||
Technology
hardware and equipment | 9,405 | 13,014 | 21,707 | 26,228 | ||||||||||||
Vehicle dealers | 17,674 | 17,603 | 20,848 | 20,446 | ||||||||||||
Consumer
durables and apparel | 10,311 | 9,904 | 19,993 | 20,199 | ||||||||||||
Software and services | 10,403 | 8,809 | 19,660 | 19,172 | ||||||||||||
Pharmaceuticals
and biotechnology | 6,135 | 7,430 | 16,521 | 23,634 | ||||||||||||
Telecommunication services | 8,913 | 8,686 | 15,318 | 14,166 | ||||||||||||
Automobiles
and components | 7,795 | 7,131 | 15,065 | 13,893 | ||||||||||||
Financial markets infrastructure (clearinghouses) | 11,626 | 8,317 | 13,345 | 10,042 | ||||||||||||
Insurance | 6,148 | 8,674 | 13,231 | 15,807 | ||||||||||||
Food
and staples retailing | 5,850 | 4,787 | 9,768 | 9,093 | ||||||||||||
Religious and social organizations | 3,976 | 3,757 | 5,914 | 5,620 | ||||||||||||
Total
commercial credit exposure by industry | $ | 628,769 | $ | 621,013 | $ | 1,032,457 | $ | 1,010,016 | ||||||||
Net
credit default protection purchased on total commitments (4) | $ | (3,276 | ) | $ | (2,663 | ) |
(1) | Includes
U.S. small business commercial exposure. |
(2) | Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.6 billion and $10.7 billion at June 30, 2019 and December 31, 2018. |
(3) | Industries
are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the primary business activity of the borrowers or counterparties using operating cash flows and primary source of repayment as key factors. |
(4) | Represents net notional credit protection purchased to hedge funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures. For additional information, see Commercial Portfolio Credit Risk Management – Risk Mitigation. |
Table
38 | Net Credit Default Protection by Maturity | |||||
June 30 2019 | December 31 2018 | |||||
Less than or equal to one year | 31 | % | 20 | % | ||
Greater
than one year and less than or equal to five years | 69 | 78 | ||||
Greater than five years | — | 2 | ||||
Total net credit default protection | 100 | % | 100 | % |
39 Bank
of America |
Table
39 | Net Credit Default Protection by Credit Exposure Debt Rating | |||||||||||||
Net Notional (1) | Percent of Total | Net Notional (1) | Percent of Total | |||||||||||
(Dollars in millions) | ||||||||||||||
Ratings (2, 3) | ||||||||||||||
A | $ | (598 | ) | 18.3 | % | $ | (700 | ) | 26.3 | % | ||||
BBB | (868 | ) | 26.5 | (501 | ) | 18.8 | ||||||||
BB | (600 | ) | 18.3 | (804 | ) | 30.2 | ||||||||
B | (508 | ) | 15.5 | (422 | ) | 15.8 | ||||||||
CCC
and below | (87 | ) | 2.7 | (205 | ) | 7.7 | ||||||||
NR (4) | (615 | ) | 18.7 | (31 | ) | 1.2 | ||||||||
Total
net credit default protection | $ | (3,276 | ) | 100.0 | % | $ | (2,663 | ) | 100.0 | % |
(1) | Represents
net credit default protection purchased. |
(2) | Ratings are refreshed on a quarterly basis. |
(3) | Ratings of BBB- or higher are considered to meet the definition of investment grade. |
(4) | NR is comprised of index positions held
and any names that have not been rated. |
Table
40 | Top 20 Non-U.S. Countries Exposure | |||||||||||||||||||||||||||||||
(Dollars
in millions) | Funded Loans and Loan Equivalents | Unfunded Loan Commitments | Net Counterparty Exposure | Securities/ Other Investments | Country Exposure at June 30 2019 | Hedges
and Credit Default Protection | Net Country Exposure at June 30 2019 | Increase (Decrease) from December 31 2018 | ||||||||||||||||||||||||
United Kingdom | $ | 30,513 | $ | 17,718 | $ | 7,816 | $ | 2,390 | $ | 58,437 | $ | (3,277 | ) | $ | 55,160 | $ | 306 | |||||||||||||||
Germany | 34,833 | 8,737 | 2,457 | 2,132 | 48,159 | (2,332 | ) | 45,827 | 17,170 | |||||||||||||||||||||||
Japan | 20,546 | 697 | 1,073 | 1,757 | 24,073 | (1,371 | ) | 22,702 | 2,679 | |||||||||||||||||||||||
Canada | 7,708 | 7,282 | 1,358 | 3,234 | 19,582 | (549 | ) | 19,033 | (482 | ) | ||||||||||||||||||||||
India | 7,952 | 822 | 447 | 5,170 | 14,391 | (206 | ) | 14,185 | 3,073 | |||||||||||||||||||||||
France | 7,002 | 6,192 | 1,149 | 2,330 | 16,673 | (2,893 | ) | 13,780 | 1,129 | |||||||||||||||||||||||
China | 11,467 | 384 | 778 | 1,041 | 13,670 | (426 | ) | 13,244 | (1,397 | ) | ||||||||||||||||||||||
Brazil | 7,899 | 651 | 271 | 3,675 | 12,496 | (233 | ) | 12,263 | 2,014 | |||||||||||||||||||||||
Australia | 6,335 | 3,434 | 457 | 893 | 11,119 | (614 | ) | 10,505 | 575 | |||||||||||||||||||||||
Netherlands | 6,928 | 2,800 | 406 | 961 | 11,095 | (1,001 | ) | 10,094 | (1,483 | ) | ||||||||||||||||||||||
South
Korea | 5,911 | 587 | 674 | 2,775 | 9,947 | (187 | ) | 9,760 | 590 | |||||||||||||||||||||||
Switzerland | 5,457 | 3,285 | 392 | 273 | 9,407 | (609 | ) | 8,798 | 1,034 | |||||||||||||||||||||||
Hong
Kong | 5,818 | 205 | 487 | 1,258 | 7,768 | (31 | ) | 7,737 | 501 | |||||||||||||||||||||||
Singapore | 3,593 | 180 | 274 | 2,319 | 6,366 | (68 | ) | 6,298 | 781 | |||||||||||||||||||||||
Belgium | 4,741 | 1,194 | 108 | 489 | 6,532 | (246 | ) | 6,286 | 708 | |||||||||||||||||||||||
Mexico | 4,298 | 1,165 | 166 | 743 | 6,372 | (163 | ) | 6,209 | (27 | ) | ||||||||||||||||||||||
Spain | 4,185 | 1,922 | 142 | 713 | 6,962 | (988 | ) | 5,974 | 1,324 | |||||||||||||||||||||||
United
Arab Emirates | 3,240 | 220 | 141 | 5 | 3,606 | (59 | ) | 3,547 | (102 | ) | ||||||||||||||||||||||
Italy | 2,615 | 1,242 | 534 | 609 | 5,000 | (1,473 | ) | 3,527 | 446 | |||||||||||||||||||||||
Ireland | 1,597 | 778 | 106 | 158 | 2,639 | (55 | ) | 2,584 | 423 | |||||||||||||||||||||||
Total
top 20 non-U.S. countries exposure | $ | 182,638 | $ | 59,495 | $ | 19,236 | $ | 32,925 | $ | 294,294 | $ | (16,781 | ) | $ | 277,513 | $ | 29,262 |
Bank
of America 40 |
41 Bank of America |
Table
41 | Allowance for Credit Losses | |||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Allowance for loan and lease losses, beginning of period | $ | 9,577 | $ | 10,260 | $ | 9,601 | $ | 10,393 | ||||||||
Loans
and leases charged off | ||||||||||||||||
Residential mortgage | (17 | ) | (36 | ) | (41 | ) | (92 | ) | ||||||||
Home
equity | (136 | ) | (101 | ) | (215 | ) | (219 | ) | ||||||||
U.S. credit card | (907 | ) | (865 | ) | (1,794 | ) | (1,689 | ) | ||||||||
Direct/Indirect
consumer | (122 | ) | (123 | ) | (246 | ) | (256 | ) | ||||||||
Other consumer | (46 | ) | (45 | ) | (92 | ) | (94 | ) | ||||||||
Total
consumer charge-offs | (1,228 | ) | (1,170 | ) | (2,388 | ) | (2,350 | ) | ||||||||
U.S. commercial (1) | (165 | ) | (168 | ) | (335 | ) | (276 | ) | ||||||||
Non-U.S.
commercial | (49 | ) | (29 | ) | (49 | ) | (36 | ) | ||||||||
Commercial real estate | (5 | ) | (7 | ) | (10 | ) | (7 | ) | ||||||||
Commercial
lease financing | (14 | ) | (4 | ) | (16 | ) | (5 | ) | ||||||||
Total commercial charge-offs | (233 | ) | (208 | ) | (410 | ) | (324 | ) | ||||||||
Total
loans and leases charged off | (1,461 | ) | (1,378 | ) | (2,798 | ) | (2,674 | ) | ||||||||
Recoveries of loans and leases previously charged off | ||||||||||||||||
Residential
mortgage | 14 | 29 | 54 | 91 | ||||||||||||
Home equity | 291 | 101 | 359 | 186 | ||||||||||||
U.S.
credit card | 145 | 126 | 287 | 249 | ||||||||||||
Direct/Indirect consumer | 82 | 82 | 152 | 156 | ||||||||||||
Other
consumer | 5 | 2 | 10 | 8 | ||||||||||||
Total consumer recoveries | 537 | 340 | 862 | 690 | ||||||||||||
U.S.
commercial (2) | 34 | 26 | 53 | 53 | ||||||||||||
Non-U.S. commercial | 1 | 10 | 1 | 13 | ||||||||||||
Commercial
real estate | 1 | 3 | 1 | 6 | ||||||||||||
Commercial lease financing | 1 | 3 | 3 | 5 | ||||||||||||
Total
commercial recoveries | 37 | 42 | 58 | 77 | ||||||||||||
Total recoveries of loans and leases previously charged off | 574 | 382 | 920 | 767 | ||||||||||||
Net
charge-offs | (887 | ) | (996 | ) | (1,878 | ) | (1,907 | ) | ||||||||
Provision for loan and lease losses | 853 | 822 | 1,861 | 1,651 | ||||||||||||
Other (3) | (16 | ) | (36 | ) | (57 | ) | (87 | ) | ||||||||
Allowance
for loan and lease losses, June 30 | 9,527 | 10,050 | 9,527 | 10,050 | ||||||||||||
Reserve for unfunded lending commitments, beginning of period | 802 | 782 | 797 | 777 | ||||||||||||
Provision
for unfunded lending commitments | 4 | 5 | 9 | 10 | ||||||||||||
Reserve for unfunded lending commitments, June 30 | 806 | 787 | 806 | 787 | ||||||||||||
Allowance
for credit losses, June 30 | $ | 10,333 | $ | 10,837 | $ | 10,333 | $ | 10,837 | ||||||||
Loan
and allowance ratios: | ||||||||||||||||
Loans and leases outstanding at June 30 (4) | $ | 955,937 | $ | 929,597 | $ | 955,937 | $ | 929,597 | ||||||||
Allowance
for loan and lease losses as a percentage of total loans and leases outstanding at June 30 (4) | 1.00 | % | 1.08 | % | 1.00 | % | 1.08 | % | ||||||||
Consumer
allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at June 30 (5) | 1.04 | 1.15 | 1.04 | 1.15 | ||||||||||||
Commercial
allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at June 30 (6) | 0.95 | 1.02 | 0.95 | 1.02 | ||||||||||||
Average
loans and leases outstanding (4) | $ | 943,588 | $ | 928,620 | $ | 941,311 | $ | 927,465 | ||||||||
Annualized
net charge-offs as a percentage of average loans and leases outstanding (4) | 0.38 | % | 0.43 | % | 0.40 | % | 0.41 | % | ||||||||
Allowance
for loan and lease losses as a percentage of total nonperforming loans and leases at June 30 (4) | 228 | 170 | 228 | 170 | ||||||||||||
Ratio
of the allowance for loan and lease losses at June 30 to annualized net charge-offs | 2.68 | 2.52 | 2.52 | 2.61 | ||||||||||||
Amounts included
in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (7) | $ | 4,142 | $ | 4,007 | $ | 4,142 | $ | 4,007 | ||||||||
Allowance
for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4, 7) | 129 | % | 102 | % | 129 | % | 102 | % |
(1) | Includes
U.S. small business commercial charge-offs of $81 million and $160 million for the three and six months ended June 30, 2019 compared to $75 million and $143 million for the same periods in 2018. |
(2) | Includes U.S. small business commercial recoveries of $16 million and $27 million for the three and six months ended June
30, 2019 compared to $11 million and $22 million for the same periods in 2018. |
(3) | Primarily represents write-offs of purchased credit-impaired (PCI) loans, the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held for sale, and certain other reclassifications. |
(4) | Outstanding
loan and lease balances and ratios do not include loans accounted for under the fair value option of $7.9 billion and $6.2 billion at June 30, 2019 and 2018. Average loans accounted for under the fair value option were $6.9 billion and $6.0 billion for the three and six months ended June 30, 2019 compared to $6.2 billion and $5.9 billion for the same periods in 2018. |
(5) | Excludes
consumer loans accounted for under the fair value option of $658 million and $848 million at June 30, 2019 and 2018. |
(6) | Excludes commercial loans accounted for under the fair value option of $7.2 billion and $5.4 billion at June 30, 2019 and 2018. |
(7) | Primarily
includes amounts allocated to U.S. credit card and unsecured consumer lending portfolios in Consumer Banking and PCI loans in All Other. |
Bank of America 42 |
Table
42 | Allocation of the Allowance for Credit Losses by Product Type | |||||||||||||||||||
Amount | Percent
of Total | Percent of Loans and Leases Outstanding (1) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | |||||||||||||||
(Dollars
in millions) | ||||||||||||||||||||
Allowance for loan and lease losses | ||||||||||||||||||||
Residential
mortgage | $ | 358 | 3.76 | % | 0.16 | % | $ | 422 | 4.40 | % | 0.20 | % | ||||||||
Home
equity | 361 | 3.79 | 0.82 | 506 | 5.27 | 1.05 | ||||||||||||||
U.S.
credit card | 3,706 | 38.90 | 3.94 | 3,597 | 37.47 | 3.66 | ||||||||||||||
Direct/Indirect
consumer | 233 | 2.45 | 0.26 | 248 | 2.58 | 0.27 | ||||||||||||||
Other
consumer | 31 | 0.33 | n/m | 29 | 0.30 | n/m | ||||||||||||||
Total
consumer | 4,689 | 49.23 | 1.04 | 4,802 | 50.02 | 1.08 | ||||||||||||||
U.S.
commercial (2) | 2,989 | 31.37 | 0.93 | 3,010 | 31.35 | 0.96 | ||||||||||||||
Non-U.S.
commercial | 708 | 7.43 | 0.68 | 677 | 7.05 | 0.69 | ||||||||||||||
Commercial
real estate | 972 | 10.20 | 1.58 | 958 | 9.98 | 1.57 | ||||||||||||||
Commercial
lease financing | 169 | 1.77 | 0.83 | 154 | 1.60 | 0.68 | ||||||||||||||
Total
commercial | 4,838 | 50.77 | 0.95 | 4,799 | 49.98 | 0.97 | ||||||||||||||
Allowance
for loan and lease losses | 9,527 | 100.00 | % | 1.00 | 9,601 | 100.00 | % | 1.02 | ||||||||||||
Reserve
for unfunded lending commitments | 806 | 797 | ||||||||||||||||||
Allowance
for credit losses | $ | 10,333 | $ | 10,398 |
(1) | Ratios
are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option include residential mortgage loans of $300 million and $336 million and home equity loans of $358 million and $346 million at June 30, 2019 and December 31, 2018. Commercial loans accounted for under the fair value option include U.S. commercial loans of $3.9 billion and $2.5 billion
and non-U.S. commercial loans of $3.3 billion and $1.1 billion at June 30, 2019 and December 31, 2018. |
(2) | Includes allowance for loan and lease losses for U.S. small business commercial loans of $498 million and $474 million at June 30, 2019
and December 31, 2018. |
43 Bank
of America |
Table
43 | Market Risk VaR for Trading Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three
Months Ended | Six Months Ended June 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars
in millions) | Period End | Average | High (1) | Low (1) | Period End | Average | High (1) | Low (1) | Period
End | Average | High (1) | Low (1) | 2019 Average | 2018 Average | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | $ | 6 | $ | 5 | $ | 11 | $ | 4 | $ | 8 | $ | 6 | $ | 10 | $ | 4 | $ | 8 | $ | 10 | $ | 15 | $ | 7 | $ | 6 | $ | 9 | ||||||||||||||||||||||||||||
Interest
rate | 20 | 26 | 38 | 18 | 38 | 28 | 49 | 17 | 27 | 23 | 32 | 15 | 27 | 23 | ||||||||||||||||||||||||||||||||||||||||||
Credit | 26 | 22 | 27 | 16 | 21 | 21 | 26 | 18 | 30 | 25 | 30 | 20 | 22 | 26 | ||||||||||||||||||||||||||||||||||||||||||
Equity | 21 | 20 | 25 | 15 | 26 | 19 | 26 | 14 | 24 | 16 | 26 | 11 | 20 | 18 | ||||||||||||||||||||||||||||||||||||||||||
Commodities | 6 | 6 | 8 | 4 | 5 | 7 | 13 | 4 | 7 | 9 | 14 | 4 | 7 | 8 | ||||||||||||||||||||||||||||||||||||||||||
Portfolio
diversification | (45 | ) | (48 | ) | — | — | (61 | ) | (48 | ) | — | — | (65 | ) | (55 | ) | — | — | (50 | ) | (53 | ) | ||||||||||||||||||||||||||||||||||
Total
covered positions portfolio | 34 | 31 | 37 | 28 | 37 | 33 | 47 | 25 | 31 | 28 | 38 | 20 | 32 | 31 | ||||||||||||||||||||||||||||||||||||||||||
Impact
from less liquid exposures | 1 | 3 | — | — | 4 | 4 | — | — | 2 | 2 | — | — | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Total
covered positions and less liquid trading positions portfolio | 35 | 34 | 40 | 29 | 41 | 37 | 53 | 28 | 33 | 30 | 42 | 24 | 36 | 35 | ||||||||||||||||||||||||||||||||||||||||||
Fair
value option loans | 10 | 9 | 11 | 7 | 7 | 8 | 10 | 7 | 12 | 13 | 18 | 8 | 9 | 12 | ||||||||||||||||||||||||||||||||||||||||||
Fair
value option hedges | 10 | 7 | 11 | 4 | 4 | 10 | 17 | 4 | 8 | 11 | 17 | 5 | 9 | 10 | ||||||||||||||||||||||||||||||||||||||||||
Fair
value option portfolio diversification | (11 | ) | (9 | ) | — | — | (6 | ) | (9 | ) | — | — | (12 | ) | (13 | ) | — | — | (10 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||
Total
fair value option portfolio | 9 | 7 | 10 | 5 | 5 | 9 | 16 | 5 | 8 | 11 | 16 | 5 | 8 | 10 | ||||||||||||||||||||||||||||||||||||||||||
Portfolio
diversification | (7 | ) | (5 | ) | — | — | (4 | ) | (6 | ) | — | — | (5 | ) | (7 | ) | — | — | (6 | ) | (5 | ) | ||||||||||||||||||||||||||||||||||
Total
market-based portfolio | $ | 37 | $ | 36 | 42 | 31 | $ | 42 | $ | 40 | 56 | 30 | $ | 36 | $ | 34 | 47 | 28 | $ | 38 | $ | 40 |
(1) | The
high and low for each portfolio may have occurred on different trading days than the high and low for the components. Therefore the impact from less liquid exposures and the amount of portfolio diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant. |
Bank
of America 44 |
Table
44 | Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics | ||||||||||||||||||||||||
Three
Months Ended | |||||||||||||||||||||||||
(Dollars in millions) | 99
percent | 95 percent | 99 percent | 95 percent | 99 percent | 95 percent | |||||||||||||||||||
Foreign exchange | $ | 5 | $ | 3 | $ | 6 | $ | 3 | $ | 10 | $ | 6 | |||||||||||||
Interest
rate | 26 | 16 | 28 | 18 | 23 | 14 | |||||||||||||||||||
Credit | 22 | 13 | 21 | 14 | 25 | 15 | |||||||||||||||||||
Equity | 20 | 10 | 19 | 10 | 16 | 9 | |||||||||||||||||||
Commodities | 6 | 3 | 7 | 4 | 9 | 5 | |||||||||||||||||||
Portfolio
diversification | (48 | ) | (28 | ) | (48 | ) | (30 | ) | (55 | ) | (34 | ) | |||||||||||||
Total
covered positions portfolio | 31 | 17 | 33 | 19 | 28 | 15 | |||||||||||||||||||
Impact
from less liquid exposures | 3 | 2 | 4 | 2 | 2 | 2 | |||||||||||||||||||
Total
covered positions and less liquid trading positions portfolio | 34 | 19 | 37 | 21 | 30 | 17 | |||||||||||||||||||
Fair
value option loans | 9 | 5 | 8 | 4 | 13 | 7 | |||||||||||||||||||
Fair
value option hedges | 7 | 5 | 10 | 6 | 11 | 8 | |||||||||||||||||||
Fair
value option portfolio diversification | (9 | ) | (6 | ) | (9 | ) | (4 | ) | (13 | ) | (10 | ) | |||||||||||||
Total
fair value option portfolio | 7 | 4 | 9 | 6 | 11 | 5 | |||||||||||||||||||
Portfolio
diversification | (5 | ) | (3 | ) | (6 | ) | (5 | ) | (7 | ) | (3 | ) | |||||||||||||
Total
market-based portfolio | $ | 36 | $ | 20 | $ | 40 | $ | 22 | $ | 34 | $ | 19 |
Table
45 | Forward Rates | ||||||||
Federal Funds | Three-month LIBOR | 10-Year Swap | |||||||
Spot
rates | 2.50 | % | 2.32 | % | 1.96 | % | |||
12-month forward rates | 1.50 | 1.62 | 1.99 | ||||||
Spot rates | 2.50 | % | 2.81 | % | 2.71 | % | |||
12-month forward rates | 2.50 | 2.64 | 2.75 |
45 Bank of America |
Table
46 | Estimated Banking Book Net Interest Income Sensitivity to Curve Changes | |||||||||||||
Short
Rate (bps) | Long Rate (bps) | |||||||||||||
June 30 2019 | December
31 2018 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Parallel Shifts | ||||||||||||||
+100 bps
instantaneous shift | +100 | +100 | $ | 4,081 | $ | 2,833 | ||||||||
-100 bps instantaneous
shift | -100 | -100 | (5,865 | ) | (4,280 | ) | ||||||||
Flatteners | ||||||||||||||
Short-end
instantaneous change | +100 | — | 2,555 | 2,158 | ||||||||||
Long-end instantaneous change | — | -100 | (2,778 | ) | (1,618 | ) | ||||||||
Steepeners | ||||||||||||||
Short-end
instantaneous change | -100 | — | (3,048 | ) | (2,648 | ) | ||||||||
Long-end instantaneous
change | — | +100 | 1,539 | 675 |
Bank of America 46 |
Table
47 | Asset and Liability Management Interest Rate and Foreign Exchange Contracts | ||||||||||||||||||||||||||||||||||
Expected Maturity | |||||||||||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years) | Fair Value | Total | Remainder
of 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Average Estimated Duration | ||||||||||||||||||||||||||
Receive-fixed
interest rate swaps (1) | $ | 12,475 | 6.66 | ||||||||||||||||||||||||||||||||
Notional
amount | $ | 210,457 | $ | 4,738 | $ | 16,347 | $ | 14,640 | $ | 20,366 | $ | 36,356 | $ | 118,010 | |||||||||||||||||||||
Weighted-average
fixed-rate | 2.75 | % | 1.74 | % | 2.68 | % | 3.17 | % | 2.56 | % | 2.36 | % | 2.90 | % | |||||||||||||||||||||
Pay-fixed
interest rate swaps (1) | (3,154 | ) | 7.14 | ||||||||||||||||||||||||||||||||
Notional
amount | $ | 68,605 | $ | 1,210 | $ | 4,344 | $ | 1,616 | $ | — | $ | 13,993 | $ | 47,442 | |||||||||||||||||||||
Weighted-average
fixed-rate | 2.51 | % | 2.07 | % | 2.16 | % | 2.22 | % | — | % | 2.52 | % | 2.55 | % | |||||||||||||||||||||
Same-currency
basis swaps (2) | 35 | ||||||||||||||||||||||||||||||||||
Notional
amount | $ | 141,274 | $ | 6,112 | $ | 17,194 | $ | 18,139 | $ | 4,296 | $ | 2,017 | $ | 93,516 | |||||||||||||||||||||
Foreign
exchange basis swaps (1, 3, 4) | (1,561 | ) | |||||||||||||||||||||||||||||||||
Notional
amount | 120,054 | 13,053 | 23,891 | 24,475 | 12,709 | 6,952 | 38,974 | ||||||||||||||||||||||||||||
Option
products | 4 | ||||||||||||||||||||||||||||||||||
Notional
amount | 651 | 636 | — | — | — | 15 | — | ||||||||||||||||||||||||||||
Foreign
exchange contracts (1, 4, 5) | 149 | ||||||||||||||||||||||||||||||||||
Notional
amount (6) | (99,747 | ) | (122,485 | ) | (1,063 | ) | 4,008 | 2,718 | 2,362 | 14,713 | |||||||||||||||||||||||||
Net
ALM contracts | $ | 7,948 |
Expected Maturity | |||||||||||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years) | Fair Value | Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Average Estimated Duration | ||||||||||||||||||||||||||
Receive-fixed
interest rate swaps (1) | $ | 2,128 | 5.17 | ||||||||||||||||||||||||||||||||
Notional
amount | $ | 198,914 | $ | 27,176 | $ | 16,347 | $ | 14,640 | $ | 19,866 | $ | 36,215 | $ | 84,670 | |||||||||||||||||||||
Weighted-average
fixed-rate | 2.66 | % | 1.87 | % | 2.68 | % | 3.17 | % | 2.56 | % | 2.37 | % | 2.97 | % | |||||||||||||||||||||
Pay-fixed
interest rate swaps (1) | 295 | 6.30 | |||||||||||||||||||||||||||||||||
Notional
amount | $ | 49,275 | $ | 1,210 | $ | 4,344 | $ | 1,616 | $ | — | $ | 10,801 | $ | 31,304 | |||||||||||||||||||||
Weighted-average
fixed-rate | 2.50 | % | 2.07 | % | 2.16 | % | 2.22 | % | — | % | 2.59 | % | 2.55 | % | |||||||||||||||||||||
Same-currency
basis swaps (2) | 21 | ||||||||||||||||||||||||||||||||||
Notional
amount | $ | 101,203 | $ | 7,628 | $ | 15,097 | $ | 15,493 | $ | 2,586 | $ | 2,017 | $ | 58,382 | |||||||||||||||||||||
Foreign
exchange basis swaps (1, 3, 4) | (1,716 | ) | |||||||||||||||||||||||||||||||||
Notional
amount | 106,742 | 13,946 | 21,448 | 19,241 | 10,239 | 6,260 | 35,608 | ||||||||||||||||||||||||||||
Option
products | 2 | ||||||||||||||||||||||||||||||||||
Notional
amount | 587 | 572 | — | — | — | 15 | — | ||||||||||||||||||||||||||||
Foreign
exchange contracts (1, 4, 5) | 82 | ||||||||||||||||||||||||||||||||||
Notional
amount (6) | (8,447 | ) | (27,823 | ) | 13 | 4,196 | 2,741 | 2,448 | 9,978 | ||||||||||||||||||||||||||
Net
ALM contracts | $ | 812 |
(1) | Does
not include basis adjustments on either fixed-rate debt issued by the Corporation or AFS debt securities, which are hedged using derivatives designated as fair value hedging instruments, that substantially offset the fair values of these derivatives. |
(2) | At June 30, 2019 and December 31, 2018, the notional amount of same-currency basis swaps included $141.3 billion and $101.2 billion in both foreign currency and U.S. dollar-denominated
basis swaps in which both sides of the swap are in the same currency. |
(3) | Foreign exchange basis swaps consisted of cross-currency variable interest rate swaps used separately or in conjunction with receive-fixed interest rate swaps. |
(4) | Does not include foreign currency translation adjustments on certain non-U.S. debt issued by the Corporation that substantially offset the fair values of these derivatives. |
(5) | The
notional amount of foreign exchange contracts of $(99.7) billion at June 30, 2019 was comprised of $28.6 billion in foreign currency-denominated and cross-currency receive-fixed swaps, $(127.0) billion in net foreign currency forward rate contracts, $(2.1) billion in foreign currency-denominated pay-fixed swaps and $768 million in net foreign currency futures contracts.
Foreign exchange contracts of $(8.4) billion at December 31, 2018 were comprised of $25.2 billion in foreign currency-denominated and cross-currency receive-fixed swaps, $(32.7) billion in net foreign currency forward rate contracts, $(1.8) billion in foreign currency-denominated pay-fixed swaps and $814 million in foreign currency futures contracts. |
(6) | Reflects
the net of long and short positions. Amounts shown as negative reflect a net short position. |
47 Bank of America |
Table
48 | Period-end and Average Supplemental Financial Data and Reconciliations to GAAP Financial Measures (1) | |||||||||||||||||||||||
Period-end | Average | |||||||||||||||||||||||
June 30
2019 | December 31 2018 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Shareholders’
equity | $ | 271,408 | $ | 265,325 | $ | 267,975 | $ | 265,181 | $ | 267,101 | $ | 265,330 | ||||||||||||
Goodwill | (68,951 | ) | (68,951 | ) | (68,951 | ) | (68,951 | ) | (68,951 | ) | (68,951 | ) | ||||||||||||
Intangible
assets (excluding MSRs) | (1,718 | ) | (1,774 | ) | (1,736 | ) | (2,126 | ) | (1,750 | ) | (2,193 | ) | ||||||||||||
Related
deferred tax liabilities | 756 | 858 | 770 | 916 | 805 | 927 | ||||||||||||||||||
Tangible
shareholders’ equity | $ | 201,495 | $ | 195,458 | $ | 198,058 | $ | 195,020 | $ | 197,205 | $ | 195,113 | ||||||||||||
Preferred
stock | (24,689 | ) | (22,326 | ) | (22,537 | ) | (23,868 | ) | (22,433 | ) | (23,321 | ) | ||||||||||||
Tangible
common shareholders’ equity | $ | 176,806 | $ | 173,132 | $ | 175,521 | $ | 171,152 | $ | 174,772 | $ | 171,792 | ||||||||||||
Total
assets | $ | 2,395,892 | $ | 2,354,507 | ||||||||||||||||||||
Goodwill | (68,951 | ) | (68,951 | ) | ||||||||||||||||||||
Intangible
assets (excluding MSRs) | (1,718 | ) | (1,774 | ) | ||||||||||||||||||||
Related
deferred tax liabilities | 756 | 858 | ||||||||||||||||||||||
Tangible
assets | $ | 2,325,979 | $ | 2,284,640 |
(1) | Presents
reconciliations of non-GAAP financial measures to the most closely related GAAP financial measures. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 6. |
Bank of America 48 |
Consolidated
Statement of Income | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(In millions, except per share information) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net
interest income | |||||||||||||||
Interest income | $ | i 18,224 | $ | i 16,369 | $ | i 36,394 | $ | i 31,968 | |||||||
Interest
expense | i 6,035 | i 4,541 | i 11,830 | i 8,371 | |||||||||||
Net
interest income | i 12,189 | i 11,828 | i 24,564 | i 23,597 | |||||||||||
Noninterest
income | |||||||||||||||
Fees and commissions | i 8,190 | i 8,317 | i 16,028 | i 16,657 | |||||||||||
Trading
account income | i 2,345 | i 2,151 | i 4,683 | i 4,704 | |||||||||||
Other
income | i 360 | i 253 | i 813 | i 661 | |||||||||||
Total
noninterest income | i 10,895 | i 10,721 | i 21,524 | i 22,022 | |||||||||||
Total
revenue, net of interest expense | i 23,084 | i 22,549 | i 46,088 | i 45,619 | |||||||||||
Provision
for credit losses | i 857 | i 827 | i 1,870 | i 1,661 | |||||||||||
Noninterest
expense | |||||||||||||||
Compensation and benefits | i 7,972 | i 7,944 | i 16,221 | i 16,424 | |||||||||||
Occupancy
and equipment | i 1,640 | i 1,591 | i 3,245 | i 3,198 | |||||||||||
Information
processing and communications | i 1,157 | i 1,121 | i 2,321 | i 2,286 | |||||||||||
Product
delivery and transaction related | i 709 | i 706 | i 1,371 | i 1,462 | |||||||||||
Marketing | i 528 | i 395 | i 970 | i 740 | |||||||||||
Professional
fees | i 409 | i 399 | i 769 | i 780 | |||||||||||
Other
general operating | i 853 | i 1,068 | i 1,595 | i 2,176 | |||||||||||
Total
noninterest expense | i 13,268 | i 13,224 | i 26,492 | i 27,066 | |||||||||||
Income
before income taxes | i 8,959 | i 8,498 | i 17,726 | i 16,892 | |||||||||||
Income
tax expense | i 1,611 | i 1,714 | i 3,067 | i 3,190 | |||||||||||
Net
income | $ | i 7,348 | $ | i 6,784 | $ | i 14,659 | $ | i 13,702 | |||||||
Preferred
stock dividends | i 239 | i 318 | i 681 | i 746 | |||||||||||
Net
income applicable to common shareholders | $ | i 7,109 | $ | i 6,466 | $ | i 13,978 | $ | i 12,956 | |||||||
Per
common share information | |||||||||||||||
Earnings | $ | i 0.75 | $ | i 0.64 | $ | i 1.45 | $ | i 1.26 | |||||||
Diluted
earnings | i 0.74 | i 0.63 | i 1.45 | i 1.25 | |||||||||||
Average
common shares issued and outstanding | i 9,523.2 | i 10,181.7 | i 9,624.0 | i 10,251.7 | |||||||||||
Average
diluted common shares issued and outstanding | i 9,559.6 | i 10,309.4 | i 9,672.4 | i 10,389.9 |
Consolidated
Statement of Comprehensive Income | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars
in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income | $ | i 7,348 | $ | i 6,784 | $ | i 14,659 | $ | i 13,702 | |||||||
Other
comprehensive income (loss), net-of-tax: | |||||||||||||||
Net change in debt securities | i 2,384 | ( i 1,031 | ) | i 4,693 | ( i 4,994 | ) | |||||||||
Net
change in debit valuation adjustments | ( i 138 | ) | i 179 | ( i 501 | ) | i 452 | |||||||||
Net
change in derivatives | i 304 | ( i 92 | ) | i 533 | ( i 367 | ) | |||||||||
Employee
benefit plan adjustments | i 29 | i 30 | i 57 | i 60 | |||||||||||
Net
change in foreign currency translation adjustments | ( i 14 | ) | ( i 141 | ) | ( i 48 | ) | ( i 189 | ) | |||||||
Other
comprehensive income (loss) | i 2,565 | ( i 1,055 | ) | i 4,734 | ( i 5,038 | ) | |||||||||
Comprehensive
income | $ | i 9,913 | $ | i 5,729 | $ | i 19,393 | $ | i 8,664 |
49 Bank of America |
Consolidated Balance Sheet | ||||||||
June
30 | December 31 | |||||||
(Dollars in millions) | 2019 | 2018 | ||||||
Assets | ||||||||
Cash
and due from banks | $ | i 29,409 | $ | i 29,063 | ||||
Interest-bearing
deposits with the Federal Reserve, non-U.S. central banks and other banks | i 141,985 | i 148,341 | ||||||
Cash
and cash equivalents | i 171,394 | i 177,404 | ||||||
Time
deposits placed and other short-term investments | i 8,692 | i 7,494 | ||||||
Federal
funds sold and securities borrowed or purchased under agreements to resell (includes $54,257 and $56,399 measured at fair value) | i 248,077 | i 261,131 | ||||||
Trading
account assets (includes $122,803 and $119,363 pledged as collateral) | i 251,987 | i 214,348 | ||||||
Derivative
assets | i 44,912 | i 43,725 | ||||||
Debt
securities: | ||||||||
Carried at fair value | i 246,094 | i 238,101 | ||||||
Held-to-maturity,
at cost (fair value – $202,484 and $200,435) | i 199,981 | i 203,652 | ||||||
Total
debt securities | i 446,075 | i 441,753 | ||||||
Loans
and leases (includes $7,863 and $4,349 measured at fair value) | i 963,800 | i 946,895 | ||||||
Allowance
for loan and lease losses | ( i 9,527 | ) | ( i 9,601 | ) | ||||
Loans
and leases, net of allowance | i 954,273 | i 937,294 | ||||||
Premises
and equipment, net | i 10,426 | i 9,906 | ||||||
Goodwill | i 68,951 | i 68,951 | ||||||
Loans
held-for-sale (includes $2,388 and $2,942 measured at fair value) | i 5,416 | i 10,367 | ||||||
Customer
and other receivables | i 53,329 | i 65,814 | ||||||
Other
assets (includes $22,074 and $19,739 measured at fair value) | i 132,360 | i 116,320 | ||||||
Total
assets | $ | i 2,395,892 | $ | i 2,354,507 | ||||
Liabilities | ||||||||
Deposits
in U.S. offices: | ||||||||
Noninterest-bearing | $ | i 393,567 | $ | i 412,587 | ||||
Interest-bearing
(includes $604 and $492 measured at fair value) | i 900,434 | i 891,636 | ||||||
Deposits
in non-U.S. offices: | ||||||||
Noninterest-bearing | i 12,864 | i 14,060 | ||||||
Interest-bearing | i 68,228 | i 63,193 | ||||||
Total
deposits | i 1,375,093 | i 1,381,476 | ||||||
Federal
funds purchased and securities loaned or sold under agreements to repurchase (includes $19,866 and $28,875 measured at fair value) | i 194,948 | i 186,988 | ||||||
Trading
account liabilities | i 82,150 | i 68,220 | ||||||
Derivative
liabilities | i 38,380 | i 37,891 | ||||||
Short-term
borrowings (includes $2,403 and $1,648 measured at fair value) | i 27,244 | i 20,189 | ||||||
Accrued
expenses and other liabilities (includes $22,811 and $20,075 measured at fair value and $806 and $797 of reserve for unfunded lending commitments) | i 168,658 | i 165,026 | ||||||
Long-term
debt (includes $35,198 and $27,689 measured at fair value) | i 238,011 | i 229,392 | ||||||
Total
liabilities | i 2,124,484 | i 2,089,182 | ||||||
Commitments
and contingencies (Note 7 – Securitizations and Other Variable Interest Entities and Note 11 – Commitments and Contingencies) | ||||||||
Shareholders’ equity | ||||||||
Preferred
stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,939,040, and 3,843,140 shares | i 24,689 | i 22,326 | ||||||
Common
stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 9,342,601,750 and 9,669,286,370 shares | i 106,619 | i 118,896 | ||||||
Retained
earnings | i 147,577 | i 136,314 | ||||||
Accumulated
other comprehensive income (loss) | ( i 7,477 | ) | ( i 12,211 | ) | ||||
Total
shareholders’ equity | i 271,408 | i 265,325 | ||||||
Total
liabilities and shareholders’ equity | $ | i 2,395,892 | $ | i 2,354,507 | ||||
Assets
of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | ||||||||
Trading account assets | $ | i 5,469 | $ | i 5,798 | ||||
Loans
and leases | i 40,676 | i 43,850 | ||||||
Allowance
for loan and lease losses | ( i 882 | ) | ( i 912 | ) | ||||
Loans
and leases, net of allowance | i 39,794 | i 42,938 | ||||||
All
other assets | i 387 | i 337 | ||||||
Total
assets of consolidated variable interest entities | $ | i 45,650 | $ | i 49,073 | ||||
Liabilities
of consolidated variable interest entities included in total liabilities above | ||||||||
Short-term borrowings | $ | i 1,845 | $ | i 742 | ||||
Long-term
debt (includes $7,392 and $10,943 of non-recourse debt) | i 7,393 | i 10,944 | ||||||
All
other liabilities (includes $25 and $27 of non-recourse liabilities) | i 27 | i 30 | ||||||
Total
liabilities of consolidated variable interest entities | $ | i 9,265 | $ | i 11,716 |
Bank of America 50 |
Consolidated
Statement of Changes in Shareholders’ Equity | ||||||||||||||||||||||
Preferred Stock | Common
Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||
(In millions) | Shares | Amount | ||||||||||||||||||||
Balance,
March 31, 2019 | $ | i 22,326 | i 9,568.4 | $ | i 112,838 | $ | i 141,888 | $ | ( i 10,042 | ) | $ | i 267,010 | ||||||||||
Net
income | i 7,348 | i 7,348 | ||||||||||||||||||||
Net
change in debt securities | i 2,384 | i 2,384 | ||||||||||||||||||||
Net
change in debit valuation adjustments | ( i 138 | ) | ( i 138 | ) | ||||||||||||||||||
Net
change in derivatives | i 304 | i 304 | ||||||||||||||||||||
Employee
benefit plan adjustments | i 29 | i 29 | ||||||||||||||||||||
Net
change in foreign currency translation adjustments | ( i 14 | ) | ( i 14 | ) | ||||||||||||||||||
Dividends
declared: | ||||||||||||||||||||||
Common | ( i 1,420 | ) | ( i 1,420 | ) | ||||||||||||||||||
Preferred | ( i 239 | ) | ( i 239 | ) | ||||||||||||||||||
Issuance
of preferred stock | i 2,363 | i 2,363 | ||||||||||||||||||||
Common
stock issued under employee plans, net, and other | i | i 288 | i 288 | |||||||||||||||||||
Common
stock repurchased | ( i 225.8 | ) | ( i 6,507 | ) | ( i 6,507 | ) | ||||||||||||||||
Balance,
June 30, 2019 | $ | i 24,689 | i 9,342.6 | $ | i 106,619 | $ | i 147,577 | $ | ( i 7,477 | ) | $ | i 271,408 | ||||||||||
Balance,
December 31, 2018 | $ | i 22,326 | i 9,669.3 | $ | i 118,896 | $ | i 136,314 | $ | ( i 12,211 | ) | $ | i 265,325 | ||||||||||
Cumulative
adjustment for adoption of lease accounting standard | i 165 | i 165 | ||||||||||||||||||||
Net
income | i 14,659 | i 14,659 | ||||||||||||||||||||
Net
change in debt securities | i 4,693 | i 4,693 | ||||||||||||||||||||
Net
change in debit valuation adjustments | ( i 501 | ) | ( i 501 | ) | ||||||||||||||||||
Net
change in derivatives | i 533 | i 533 | ||||||||||||||||||||
Employee
benefit plan adjustments | i 57 | i 57 | ||||||||||||||||||||
Net
change in foreign currency translation adjustments | ( i 48 | ) | ( i 48 | ) | ||||||||||||||||||
Dividends
declared: | ||||||||||||||||||||||
Common | ( i 2,876 | ) | ( i 2,876 | ) | ||||||||||||||||||
Preferred | ( i 681 | ) | ( i 681 | ) | ||||||||||||||||||
Issuance
of preferred stock | i 2,363 | i 2,363 | ||||||||||||||||||||
Common
stock issued under employee plans, net, and other | i 119.1 | i 493 | ( i 4 | ) | i 489 | |||||||||||||||||
Common
stock repurchased | ( i 445.8 | ) | ( i 12,770 | ) | ( i 12,770 | ) | ||||||||||||||||
Balance,
June 30, 2019 | $ | i 24,689 | i 9,342.6 | $ | i 106,619 | $ | i 147,577 | $ | ( i 7,477 | ) | $ | i 271,408 | ||||||||||
Balance,
Balance, March 31, 2018 | $ | i 24,672 | i 10,175.9 | $ | i 133,532 | $ | i 120,298 | $ | ( i 12,278 | ) | $ | i 266,224 | ||||||||||
Net
income | i 6,784 | i 6,784 | ||||||||||||||||||||
Net
change in debt securities | ( i 1,031 | ) | ( i 1,031 | ) | ||||||||||||||||||
Net
change in debit valuation adjustments | i 179 | i 179 | ||||||||||||||||||||
Net
change in derivatives | ( i 92 | ) | ( i 92 | ) | ||||||||||||||||||
Employee
benefit plan adjustments | i 30 | i 30 | ||||||||||||||||||||
Net
change in foreign currency translation adjustments | ( i 141 | ) | ( i 141 | ) | ||||||||||||||||||
Dividends
declared: | ||||||||||||||||||||||
Common | ( i 1,218 | ) | ( i 1,218 | ) | ||||||||||||||||||
Preferred | ( i 318 | ) | ( i 318 | ) | ||||||||||||||||||
Issuance
of preferred stock | i 1,322 | i 1,322 | ||||||||||||||||||||
Redemption
of preferred stock | ( i 2,813 | ) | ( i 2,813 | ) | ||||||||||||||||||
Common
stock issued under employee plans, net, and other | i 2.5 | i 255 | i 255 | |||||||||||||||||||
Common
stock repurchased | ( i 165.7 | ) | ( i 4,965 | ) | ( i 4,965 | ) | ||||||||||||||||
Balance,
June 30, 2018 | $ | i 23,181 | i 10,012.7 | $ | i 128,822 | $ | i 125,546 | $ | ( i 13,333 | ) | $ | i 264,216 | ||||||||||
Balance,
December 31, 2017 | $ | i 22,323 | i 10,287.3 | $ | i 138,089 | $ | i 113,816 | $ | ( i 7,082 | ) | $ | i 267,146 | ||||||||||
Cumulative
adjustment for adoption of hedge accounting standard | ( i 32 | ) | i 57 | i 25 | ||||||||||||||||||
Adoption
of accounting standard related to certain tax effects stranded in accumulated other comprehensive income (loss) | i 1,270 | ( i 1,270 | ) | i — | ||||||||||||||||||
Net
income | i 13,702 | i 13,702 | ||||||||||||||||||||
Net
change in debt securities | ( i 4,994 | ) | ( i 4,994 | ) | ||||||||||||||||||
Net
change in debit valuation adjustments | i 452 | i 452 | ||||||||||||||||||||
Net
change in derivatives | ( i 367 | ) | ( i 367 | ) | ||||||||||||||||||
Employee
benefit plan adjustments | i 60 | i 60 | ||||||||||||||||||||
Net
change in foreign currency translation adjustments | ( i 189 | ) | ( i 189 | ) | ||||||||||||||||||
Dividends
declared: | ||||||||||||||||||||||
Common | ( i 2,455 | ) | ( i 2,455 | ) | ||||||||||||||||||
Preferred | ( i 746 | ) | ( i 746 | ) | ||||||||||||||||||
Issuance
of preferred stock | i 3,671 | i 3,671 | ||||||||||||||||||||
Redemption
of preferred stock | ( i 2,813 | ) | ( i 2,813 | ) | ||||||||||||||||||
Common
stock issued under employee plans, net, and other | i 43.7 | i 556 | ( i 9 | ) | i 547 | |||||||||||||||||
Common
stock repurchased | ( i 318.3 | ) | ( i 9,823 | ) | ( i 9,823 | ) | ||||||||||||||||
Balance,
June 30, 2018 | $ | i 23,181 | i 10,012.7 | $ | i 128,822 | $ | i 125,546 | $ | ( i 13,333 | ) | $ | i 264,216 |
51 Bank of America |
Consolidated Statement of Cash Flows | |||||||
Six
Months Ended June 30 | |||||||
(Dollars in millions) | 2019 | 2018 | |||||
Operating activities | |||||||
Net income | $ | i 14,659 | $ | i 13,702 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | i 1,870 | i 1,661 | |||||
Gains
on sales of debt securities | ( i 115 | ) | ( i 3 | ) | |||
Depreciation
and premises improvements amortization | i 797 | i 755 | |||||
Amortization
of intangibles | i 55 | i 269 | |||||
Net
amortization of premium/discount on debt securities | i 810 | i 909 | |||||
Deferred
income taxes | i 1,494 | i 1,782 | |||||
Stock-based
compensation | i 985 | i 877 | |||||
Loans
held-for-sale: | |||||||
Originations and purchases | ( i 9,190 | ) | ( i 11,709 | ) | |||
Proceeds
from sales and paydowns of loans originally classified as held for sale and instruments from related securitization activities | i 14,082 | i 17,246 | |||||
Net
change in: | |||||||
Trading and derivative instruments | ( i 17,734 | ) | ( i 1,295 | ) | |||
Other
assets | i 2,405 | i 9,381 | |||||
Accrued
expenses and other liabilities | ( i 5,863 | ) | i 399 | ||||
Other
operating activities, net | i 4,121 | ( i 138 | ) | ||||
Net
cash provided by operating activities | i 8,376 | i 33,836 | |||||
Investing
activities | |||||||
Net change in: | |||||||
Time deposits placed and other short-term investments | ( i 1,198 | ) | i 2,941 | ||||
Federal
funds sold and securities borrowed or purchased under agreements to resell | i 13,054 | ( i 13,739 | ) | ||||
Debt
securities carried at fair value: | |||||||
Proceeds from sales | i 43,488 | i 1,194 | |||||
Proceeds
from paydowns and maturities | i 38,186 | i 37,774 | |||||
Purchases | ( i 83,704 | ) | ( i 31,762 | ) | |||
Held-to-maturity
debt securities: | |||||||
Proceeds from paydowns and maturities | i 12,921 | i 7,820 | |||||
Purchases | ( i 9,463 | ) | ( i 22,110 | ) | |||
Loans
and leases: | |||||||
Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities | i 5,844 | i 7,172 | |||||
Purchases | ( i 2,364 | ) | ( i 2,656 | ) | |||
Other
changes in loans and leases, net | ( i 22,655 | ) | ( i 5,755 | ) | |||
Other
investing activities, net | ( i 1,327 | ) | ( i 1,748 | ) | |||
Net
cash used in investing activities | ( i 7,218 | ) | ( i 20,869 | ) | |||
Financing
activities | |||||||
Net change in: | |||||||
Deposits | ( i 6,383 | ) | i 146 | ||||
Federal
funds purchased and securities loaned or sold under agreements to repurchase | i 7,960 | i 996 | |||||
Short-term
borrowings | i 7,055 | i 7,956 | |||||
Long-term
debt: | |||||||
Proceeds from issuance | i 32,493 | i 42,426 | |||||
Retirement | ( i 33,848 | ) | ( i 37,264 | ) | |||
Preferred
stock: | |||||||
Proceeds from issuance | i 2,363 | i 3,671 | |||||
Redemption | i — | ( i 2,813 | ) | ||||
Common
stock repurchased | ( i 12,770 | ) | ( i 9,823 | ) | |||
Cash
dividends paid | ( i 3,622 | ) | ( i 3,245 | ) | |||
Other
financing activities, net | ( i 833 | ) | ( i 533 | ) | |||
Net
cash provided by (used in) financing activities | ( i 7,585 | ) | i 1,517 | ||||
Effect
of exchange rate changes on cash and cash equivalents | i 417 | ( i 719 | ) | ||||
Net
increase (decrease) in cash and cash equivalents | ( i 6,010 | ) | i 13,765 | ||||
Cash
and cash equivalents at January 1 | i 177,404 | i 157,434 | |||||
Cash
and cash equivalents at June 30 | $ | i 171,394 | $ | i 171,199 |
Bank of America 52 |
53 Bank
of America |
Three
Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net interest income | |||||||||||||||
Interest
income | |||||||||||||||
Loans and leases | $ | i 10,942 | $ | i 10,071 | $ | i 21,827 | $ | i 19,694 | |||||||
Debt
securities | i 3,017 | i 2,856 | i 6,136 | i 5,660 | |||||||||||
Federal
funds sold and securities borrowed or purchased under agreements to resell | i 1,309 | i 709 | i 2,504 | i 1,331 | |||||||||||
Trading
account assets | i 1,321 | i 1,198 | i 2,643 | i 2,334 | |||||||||||
Other
interest income | i 1,635 | i 1,535 | i 3,284 | i 2,949 | |||||||||||
Total
interest income | i 18,224 | i 16,369 | i 36,394 | i 31,968 | |||||||||||
Interest
expense | |||||||||||||||
Deposits | i 1,965 | i 943 | i 3,760 | i 1,703 | |||||||||||
Short-term
borrowings | i 1,997 | i 1,462 | i 3,849 | i 2,597 | |||||||||||
Trading
account liabilities | i 319 | i 348 | i 664 | i 705 | |||||||||||
Long-term
debt | i 1,754 | i 1,788 | i 3,557 | i 3,366 | |||||||||||
Total
interest expense | i 6,035 | i 4,541 | i 11,830 | i 8,371 | |||||||||||
Net
interest income | $ | i 12,189 | $ | i 11,828 | $ | i 24,564 | $ | i 23,597 | |||||||
Noninterest
income | |||||||||||||||
Fees and commissions | |||||||||||||||
Card
income | |||||||||||||||
Interchange fees (1) | $ | i 968 | $ | i 1,011 | $ | i 1,864 | $ | i 1,925 | |||||||
Other
card income | i 478 | i 472 | i 957 | i 960 | |||||||||||
Total
card income | i 1,446 | i 1,483 | i 2,821 | i 2,885 | |||||||||||
Service
charges | |||||||||||||||
Deposit-related fees | i 1,638 | i 1,680 | i 3,218 | i 3,326 | |||||||||||
Lending-related
fees | i 265 | i 274 | i 524 | i 549 | |||||||||||
Total
service charges | i 1,903 | i 1,954 | i 3,742 | i 3,875 | |||||||||||
Investment
and brokerage services | |||||||||||||||
Asset management fees | i 2,554 | i 2,513 | i 4,994 | i 5,077 | |||||||||||
Brokerage
fees | i 916 | i 945 | i 1,836 | i 2,045 | |||||||||||
Total
investment and brokerage services | i 3,470 | i 3,458 | i 6,830 | i 7,122 | |||||||||||
Investment
banking fees | |||||||||||||||
Underwriting income | i 792 | i 719 | i 1,458 | i 1,460 | |||||||||||
Syndication
fees | i 291 | i 400 | i 546 | i 716 | |||||||||||
Financial
advisory services | i 288 | i 303 | i 631 | i 599 | |||||||||||
Total
investment banking fees | i 1,371 | i 1,422 | i 2,635 | i 2,775 | |||||||||||
Total
fees and commissions | i 8,190 | i 8,317 | i 16,028 | i 16,657 | |||||||||||
Trading
account income | i 2,345 | i 2,151 | i 4,683 | i 4,704 | |||||||||||
Other
income | i 360 | i 253 | i 813 | i 661 | |||||||||||
Total
noninterest income | $ | i 10,895 | $ | i 10,721 | $ | i 21,524 | $ | i 22,022 |
(1) | Gross
interchange fees were $ i 2.5 billion and $ i 2.4
billion for the three months ended June 30, 2019 and 2018, and are presented net of $ i 1.6 billion and $ i 1.4
billion of expenses for rewards and partner payments. For the six months ended June 30, 2019 and 2018, gross interchange fees were $ i 4.8 billion and $ i 4.6
billion and are presented net of $ i 3.0 billion and $ i 2.7
billion of expenses for rewards and partner payments. |
Bank of America 54 |
Gross Derivative Assets | Gross Derivative Liabilities | ||||||||||||||||||||||||||
(Dollars in billions) | Notional (1) | Trading
and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | Trading and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | ||||||||||||||||||||
Interest
rate contracts | |||||||||||||||||||||||||||
Swaps
| $ | i 20,981.8 | $ | i 167.4 | $ | i 9.3 | $ | i 176.7 | $ | i 173.1 | $ | i 0.3 | $ | i 173.4 | |||||||||||||
Futures
and forwards | i 5,928.5 | i 2.2 | i — | i 2.2 | i 2.2 | i — | i 2.2 | ||||||||||||||||||||
Written
options | i 1,753.4 | i — | i — | i — | i 35.9 | i — | i 35.9 | ||||||||||||||||||||
Purchased
options | i 1,772.5 | i 40.1 | i — | i 40.1 | i — | i — | i — | ||||||||||||||||||||
Foreign
exchange contracts | |||||||||||||||||||||||||||
Swaps | i 1,791.8 | i 34.6 | i 1.2 | i 35.8 | i 38.1 | i 1.6 | i 39.7 | ||||||||||||||||||||
Spot,
futures and forwards | i 5,052.2 | i 34.4 | i 0.2 | i 34.6 | i 36.1 | i 0.5 | i 36.6 | ||||||||||||||||||||
Written
options | i 286.7 | i — | i — | i — | i 4.0 | i — | i 4.0 | ||||||||||||||||||||
Purchased
options | i 271.3 | i 3.8 | i — | i 3.8 | i — | i — | i — | ||||||||||||||||||||
Equity
contracts | |||||||||||||||||||||||||||
Swaps | i 273.6 | i 5.6 | i — | i 5.6 | i 6.3 | i — | i 6.3 | ||||||||||||||||||||
Futures
and forwards | i 116.8 | i 0.3 | i — | i 0.3 | i 0.8 | i — | i 0.8 | ||||||||||||||||||||
Written
options | i 761.4 | i — | i — | i — | i 31.2 | i — | i 31.2 | ||||||||||||||||||||
Purchased
options | i 699.9 | i 37.1 | i — | i 37.1 | i — | i — | i — | ||||||||||||||||||||
Commodity
contracts | |||||||||||||||||||||||||||
Swaps | i 42.1 | i 2.9 | i — | i 2.9 | i 4.7 | i — | i 4.7 | ||||||||||||||||||||
Futures
and forwards | i 57.8 | i 3.2 | i — | i 3.2 | i 0.5 | i — | i 0.5 | ||||||||||||||||||||
Written
options | i 30.3 | i — | i — | i — | i 1.4 | i — | i 1.4 | ||||||||||||||||||||
Purchased
options | i 26.9 | i 1.3 | i — | i 1.3 | i — | i — | i — | ||||||||||||||||||||
Credit
derivatives (2) | |||||||||||||||||||||||||||
Purchased
credit derivatives: | |||||||||||||||||||||||||||
Credit
default swaps | i 413.1 | i 4.1 | i — | i 4.1 | i 6.7 | i — | i 6.7 | ||||||||||||||||||||
Total
return swaps/options | i 75.5 | i 0.1 | i — | i 0.1 | i 1.2 | i — | i 1.2 | ||||||||||||||||||||
Written
credit derivatives: | |||||||||||||||||||||||||||
Credit
default swaps | i 369.3 | i 6.3 | i — | i 6.3 | i 3.3 | i — | i 3.3 | ||||||||||||||||||||
Total
return swaps/options | i 80.5 | i 0.6 | i — | i 0.6 | i 0.4 | i — | i 0.4 | ||||||||||||||||||||
Gross
derivative assets/liabilities | $ | i 344.0 | $ | i 10.7 | $ | i 354.7 | $ | i 345.9 | $ | i 2.4 | $ | i 348.3 | |||||||||||||||
Less:
Legally enforceable master netting agreements | ( i 275.9 | ) | ( i 275.9 | ) | |||||||||||||||||||||||
Less:
Cash collateral received/paid | ( i 33.9 | ) | ( i 34.0 | ) | |||||||||||||||||||||||
Total
derivative assets/liabilities | $ | i 44.9 | $ | i 38.4 |
(1) | Represents
the total contract/notional amount of derivative assets and liabilities outstanding. |
(2) | The net derivative asset (liability) and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $ i 2.7
billion and $ i 353.5 billion at June 30, 2019. |
55 Bank
of America |
Gross Derivative Assets | Gross Derivative Liabilities | ||||||||||||||||||||||||||
(Dollars in billions) | Notional (1) | Trading
and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | Trading and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | ||||||||||||||||||||
Interest
rate contracts | |||||||||||||||||||||||||||
Swaps
| $ | i 15,977.9 | $ | i 141.0 | $ | i 3.2 | $ | i 144.2 | $ | i 138.9 | $ | i 2.0 | $ | i 140.9 | |||||||||||||
Futures
and forwards | i 3,656.6 | i 4.7 | i — | i 4.7 | i 5.0 | i — | i 5.0 | ||||||||||||||||||||
Written
options | i 1,584.9 | i — | i — | i — | i 28.6 | i — | i 28.6 | ||||||||||||||||||||
Purchased
options | i 1,614.0 | i 30.8 | i — | i 30.8 | i — | i — | i — | ||||||||||||||||||||
Foreign
exchange contracts | |||||||||||||||||||||||||||
Swaps | i 1,704.8 | i 38.8 | i 1.4 | i 40.2 | i 42.2 | i 2.3 | i 44.5 | ||||||||||||||||||||
Spot,
futures and forwards | i 4,276.0 | i 39.8 | i 0.4 | i 40.2 | i 39.3 | i 0.3 | i 39.6 | ||||||||||||||||||||
Written
options | i 256.7 | i — | i — | i — | i 5.0 | i — | i 5.0 | ||||||||||||||||||||
Purchased
options | i 240.4 | i 4.6 | i — | i 4.6 | i — | i — | i — | ||||||||||||||||||||
Equity
contracts | |||||||||||||||||||||||||||
Swaps | i 253.6 | i 7.7 | i — | i 7.7 | i 8.4 | i — | i 8.4 | ||||||||||||||||||||
Futures
and forwards | i 100.0 | i 2.1 | i — | i 2.1 | i 0.3 | i — | i 0.3 | ||||||||||||||||||||
Written
options | i 597.1 | i — | i — | i — | i 27.5 | i — | i 27.5 | ||||||||||||||||||||
Purchased
options | i 549.4 | i 36.0 | i — | i 36.0 | i — | i — | i — | ||||||||||||||||||||
Commodity
contracts | |||||||||||||||||||||||||||
Swaps | i 43.1 | i 2.7 | i — | i 2.7 | i 4.5 | i — | i 4.5 | ||||||||||||||||||||
Futures
and forwards | i 51.7 | i 3.2 | i — | i 3.2 | i 0.5 | i — | i 0.5 | ||||||||||||||||||||
Written
options | i 27.5 | i — | i — | i — | i 2.2 | i — | i 2.2 | ||||||||||||||||||||
Purchased
options | i 23.4 | i 1.7 | i — | i 1.7 | i — | i — | i — | ||||||||||||||||||||
Credit
derivatives (2) | |||||||||||||||||||||||||||
Purchased
credit derivatives: | |||||||||||||||||||||||||||
Credit
default swaps | i 408.1 | i 5.3 | i — | i 5.3 | i 4.9 | i — | i 4.9 | ||||||||||||||||||||
Total
return swaps/options | i 84.5 | i 0.4 | i — | i 0.4 | i 1.0 | i — | i 1.0 | ||||||||||||||||||||
Written
credit derivatives: | |||||||||||||||||||||||||||
Credit
default swaps | i 371.9 | i 4.4 | i — | i 4.4 | i 4.3 | i — | i 4.3 | ||||||||||||||||||||
Total
return swaps/options | i 87.3 | i 0.6 | i — | i 0.6 | i 0.6 | i — | i 0.6 | ||||||||||||||||||||
Gross
derivative assets/liabilities | $ | i 323.8 | $ | i 5.0 | $ | i 328.8 | $ | i 313.2 | $ | i 4.6 | $ | i 317.8 | |||||||||||||||
Less:
Legally enforceable master netting agreements | ( i 252.7 | ) | ( i 252.7 | ) | |||||||||||||||||||||||
Less:
Cash collateral received/paid | ( i 32.4 | ) | ( i 27.2 | ) | |||||||||||||||||||||||
Total
derivative assets/liabilities | $ | i 43.7 | $ | i 37.9 |
(1) | Represents
the total contract/notional amount of derivative assets and liabilities outstanding. |
(2) | The net derivative asset (liability) and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $( i 185)
million and $ i 342.8 billion at December 31, 2018. |
Bank of America 56 |
Offsetting
of Derivatives (1) | |||||||||||||||
Derivative
Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | ||||||||||||
(Dollars in billions) | |||||||||||||||
Interest rate contracts | |||||||||||||||
Over-the-counter | $ | i 210.5 | $ | i 203.5 | $ | i 174.2 | $ | i 169.4 | |||||||
Exchange-traded
| i 0.1 | i — | i — | i — | |||||||||||
Over-the-counter
cleared | i 6.3 | i 5.5 | i 4.8 | i 4.0 | |||||||||||
Foreign
exchange contracts | |||||||||||||||
Over-the-counter | i 71.6 | i 77.8 | i 82.5 | i 86.3 | |||||||||||
Over-the-counter
cleared | i 1.1 | i 1.0 | i 0.9 | i 0.9 | |||||||||||
Equity
contracts | |||||||||||||||
Over-the-counter | i 21.2 | i 15.2 | i 24.6 | i 14.6 | |||||||||||
Exchange-traded
| i 15.2 | i 14.1 | i 16.1 | i 15.1 | |||||||||||
Commodity
contracts | |||||||||||||||
Over-the-counter | i 3.7 | i 4.6 | i 3.5 | i 4.5 | |||||||||||
Exchange-traded
| i 0.7 | i 0.7 | i 1.0 | i 0.9 | |||||||||||
Over-the-counter
cleared | i 0.1 | i — | i — | i — | |||||||||||
Credit
derivatives | |||||||||||||||
Over-the-counter | i 6.7 | i 7.5 | i 7.7 | i 8.2 | |||||||||||
Over-the-counter
cleared | i 4.0 | i 3.7 | i 2.5 | i 2.3 | |||||||||||
Total
gross derivative assets/liabilities, before netting | |||||||||||||||
Over-the-counter | i 313.7 | i 308.6 | i 292.5 | i 283.0 | |||||||||||
Exchange-traded
| i 16.0 | i 14.8 | i 17.1 | i 16.0 | |||||||||||
Over-the-counter
cleared | i 11.5 | i 10.2 | i 8.2 | i 7.2 | |||||||||||
Less:
Legally enforceable master netting agreements and cash collateral received/paid | |||||||||||||||
Over-the-counter | ( i 286.4 | ) | ( i 287.0 | ) | ( i 264.4 | ) | ( i 259.2 | ) | |||||||
Exchange-traded
| ( i 12.7 | ) | ( i 12.7 | ) | ( i 13.5 | ) | ( i 13.5 | ) | |||||||
Over-the-counter
cleared | ( i 10.7 | ) | ( i 10.2 | ) | ( i 7.2 | ) | ( i 7.2 | ) | |||||||
Derivative
assets/liabilities, after netting | i 31.4 | i 23.7 | i 32.7 | i 26.3 | |||||||||||
Other
gross derivative assets/liabilities (2) | i 13.5 | i 14.7 | i 11.0 | i 11.6 | |||||||||||
Total
derivative assets/liabilities | i 44.9 | i 38.4 | i 43.7 | i 37.9 | |||||||||||
Less:
Financial instruments collateral (3) | ( i 15.1 | ) | ( i 10.8 | ) | ( i 16.3 | ) | ( i 8.6 | ) | |||||||
Total
net derivative assets/liabilities | $ | i 29.8 | $ | i 27.6 | $ | i 27.4 | $ | i 29.3 |
(1) | Over-the-counter
(OTC) derivatives include bilateral transactions between the Corporation and a particular counterparty. OTC-cleared derivatives include bilateral transactions between the Corporation and a counterparty where the transaction is cleared through a clearinghouse. Exchange-traded derivatives include listed options transacted on an exchange. |
(2) | Consists of derivatives entered into under master netting agreements where the enforceability of these agreements is uncertain under bankruptcy laws in some countries or industries. |
(3) | Amounts
are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. Financial instruments collateral includes securities collateral received or pledged and cash securities held and posted at third-party custodians that are not offset on the Consolidated Balance Sheet but shown as a reduction to derive net derivative assets and liabilities. |
57 Bank
of America |
Gains
and Losses on Derivatives Designated as Fair Value Hedges | |||||||||||||||
Three Months Ended June 30, 2019 | Three
Months Ended June 30, 2018 | ||||||||||||||
(Dollars in millions) | Derivative | Hedged Item | Derivative | Hedged Item | |||||||||||
Interest rate risk on long-term debt (1) | $ | i 4,132 | $ | ( i 4,121 | ) | $ | ( i 869 | ) | $ | i 821 | |||||
Interest
rate and foreign currency risk on long-term debt (2) | i 41 | ( i 32 | ) | ( i 1,067 | ) | i 934 | |||||||||
Interest
rate risk on available-for-sale securities (3) | ( i 55 | ) | i 55 | ( i 1 | ) | i 1 | |||||||||
Total | $ | i 4,118 | $ | ( i 4,098 | ) | $ | ( i 1,937 | ) | $ | i 1,756 | |||||
Six
Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||||
Derivative | Hedged Item | Derivative | Hedged Item | ||||||||||||
Interest
rate risk on long-term debt (1) | $ | i 6,045 | $ | ( i 6,050 | ) | $ | ( i 3,174 | ) | $ | i 3,057 | |||||
Interest
rate and foreign currency risk on long-term debt (2) | i 98 | ( i 80 | ) | ( i 745 | ) | i 588 | |||||||||
Interest
rate risk on available-for-sale securities (3) | ( i 100 | ) | i 98 | ( i 32 | ) | i 31 | |||||||||
Total | $ | i 6,043 | $ | ( i 6,032 | ) | $ | ( i 3,951 | ) | $ | i 3,676 |
(1) | Amounts
are recorded in interest expense in the Consolidated Statement of Income. |
(2) | For the three and six months ended June 30, 2019, the derivative amount includes gains (losses) of $( i 3)
million and $ i 167 million in interest expense, $ i 30
million and $( i 89) million in other income and $ i 14
million and $ i 20 million in accumulated other comprehensive income (OCI). For the same periods in 2018, the derivative amount includes gains (losses) of $ i 25
million and $( i 39) million in interest expense, $( i 1.0)
billion and $( i 576) million in other income, and $( i 83)
million and $( i 130) million in accumulated OCI. Line item totals are in the Consolidated Statement of Income and in the Consolidated Balance Sheet. |
(3) | Amounts
are recorded in interest income in the Consolidated Statement of Income. |
Designated
Fair Value Hedged Assets (Liabilities) | |||||||||||||||
(Dollars in millions) | Carrying Value | Cumulative Fair Value Adjustments (1) | Carrying Value | Cumulative Fair Value Adjustments (1) | |||||||||||
Long-term
debt (2) | $ | ( i 157,894 | ) | $ | ( i 8,657 | ) | $ | ( i 138,682 | ) | $ | ( i 2,117 | ) | |||
Available-for-sale
debt securities (2) | i 1,650 | i 58 | i 981 | ( i 29 | ) |
(1) | For
assets, increase (decrease) to carrying value and for liabilities, (increase) decrease to carrying value. |
(2) | At June 30, 2019 and December 31, 2018, the cumulative fair value adjustments remaining on long-term debt and available-for-sale (AFS) debt securities from discontinued hedging relationships resulted
in a decrease in the related liability of $ i 1.5 billion and $ i 1.6
billion and an increase (decrease) in the related asset of $ i 4 million and $( i 29)
million, which are being amortized over the remaining contractual life of the de-designated hedged items. |
Gains
and Losses on Derivatives Designated as Cash Flow and Net Investment Hedges | |||||||||||||||
Gains (Losses) Recognized in Accumulated OCI on Derivatives | Gains
(Losses) in Income Reclassified from Accumulated OCI | Gains (Losses) Recognized in Accumulated OCI on Derivatives | Gains (Losses) in Income Reclassified from Accumulated OCI | ||||||||||||
(Dollars in millions, amounts pretax) | Three Months Ended June 30, 2019 | Six Months Ended
June 30, 2019 | |||||||||||||
Cash flow hedges | |||||||||||||||
Interest rate risk on variable-rate assets (1) | $ | i 364 | $ | ( i 28 | ) | $ | i 618 | $ | ( i 51 | ) | |||||
Net
investment hedges | |||||||||||||||
Foreign exchange risk (2) | $ | ( i 202 | ) | $ | i — | $ | ( i 196 | ) | $ | i 1 | |||||
Three
Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||
Cash flow hedges | |||||||||||||||
Interest rate risk
on variable-rate assets (1) | $ | ( i 71 | ) | $ | ( i 33 | ) | $ | ( i 499 | ) | $ | ( i 83 | ) | |||
Price
risk on certain restricted stock awards (3) | i — | i — | i 4 | i 27 | |||||||||||
Total | $ | ( i 71 | ) | $ | ( i 33 | ) | $ | ( i 495 | ) | $ | ( i 56 | ) | |||
Net
investment hedges | |||||||||||||||
Foreign exchange risk (2) | $ | i 923 | $ | i — | $ | i 679 | $ | ( i 1 | ) |
(1) | Amounts
reclassified from accumulated OCI are recorded in interest income in the Consolidated Statement of Income. |
(2) | Amounts reclassified from accumulated OCI are recorded in other income in the Consolidated Statement of Income. For the three and six months ended June 30, 2019, amounts excluded from effectiveness testing and recognized in other income were gains of $ i 24
million and $ i 77 million. For the same periods in 2018, amounts excluded from effectiveness testing and recognized in other income were gains of $ i 24
million and $ i 29 million. |
(3) | Amounts
reclassified from accumulated OCI are recorded in compensation and benefits expense in the Consolidated Statement of Income. |
Bank of America 58 |
Gains
and Losses on Other Risk Management Derivatives | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars
in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Interest rate risk on mortgage activities (1) | $ | i 147 | $ | ( i 26 | ) | $ | i 251 | $ | ( i 161 | ) | |||||
Credit
risk on loans | ( i 14 | ) | ( i 2 | ) | ( i 40 | ) | ( i 5 | ) | |||||||
Interest
rate and foreign currency risk on ALM activities (2) | ( i 292 | ) | i 702 | i 820 | i 563 |
(1) | Primarily
related to hedges of interest rate risk on mortgage servicing rights (MSRs) and interest rate lock commitments (IRLCs) to originate mortgage loans that will be held for sale. The net gains on IRLCs, which are not included in the table but are considered derivative instruments, were $ i 24 million and $ i 36
million for the three and six months ended June 30, 2019 compared to $ i 14 million and $ i 28
million for the same periods in 2018. |
(2) | Primarily related to hedges of debt securities carried at fair value and hedges of foreign currency-denominated debt. |
Sales
and Trading Revenue | |||||||||||||||||||||||||||||||
Trading
Account Income | Net Interest Income | Other (1) | Total | Trading Account Income | Net Interest Income | Other
(1) | Total | ||||||||||||||||||||||||
(Dollars in millions) | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||
Interest rate risk | $ | i 304 | $ | i 394 | $ | i 63 | $ | i 761 | $ | i 590 | $ | i 809 | $ | i 144 | $ | i 1,543 | |||||||||||||||
Foreign
exchange risk | i 323 | i 12 | i 6 | i 341 | i 641 | i 28 | i 10 | i 679 | |||||||||||||||||||||||
Equity
risk | i 1,010 | ( i 264 | ) | i 399 | i 1,145 | i 1,979 | ( i 440 | ) | i 794 | i 2,333 | |||||||||||||||||||||
Credit
risk | i 306 | i 462 | i 128 | i 896 | i 807 | i 891 | i 262 | i 1,960 | |||||||||||||||||||||||
Other
risk | i 17 | i 30 | i 21 | i 68 | i 24 | i 48 | i 35 | i 107 | |||||||||||||||||||||||
Total
sales and trading revenue | $ | i 1,960 | $ | i 634 | $ | i 617 | $ | i 3,211 | $ | i 4,041 | $ | i 1,336 | $ | i 1,245 | $ | i 6,622 | |||||||||||||||
Three
Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
Interest rate risk | $ | i 255 | $ | i 412 | $ | i 14 | $ | i 681 | $ | i 713 | $ | i 824 | $ | i 86 | $ | i 1,623 | |||||||||||||||
Foreign
exchange risk | i 388 | ( i 4 | ) | i 3 | i 387 | i 790 | ( i 5 | ) | i 7 | i 792 | |||||||||||||||||||||
Equity
risk | i 1,066 | ( i 170 | ) | i 405 | i 1,301 | i 2,192 | ( i 266 | ) | i 862 | i 2,788 | |||||||||||||||||||||
Credit
risk | i 283 | i 483 | i 147 | i 913 | i 823 | i 949 | i 295 | i 2,067 | |||||||||||||||||||||||
Other
risk | i 28 | i 41 | i 20 | i 89 | i 58 | i 88 | i 34 | i 180 | |||||||||||||||||||||||
Total
sales and trading revenue | $ | i 2,020 | $ | i 762 | $ | i 589 | $ | i 3,371 | $ | i 4,576 | $ | i 1,590 | $ | i 1,284 | $ | i 7,450 |
(1) | Represents
amounts in investment and brokerage services and other income that are recorded in Global Markets and included in the definition of sales and trading revenue. Includes investment and brokerage services revenue of $ i 423 million and $ i 857
million for the three and six months ended June 30, 2019 compared to $ i 420 million and $ i 897
million for the same periods in 2018. |
59 Bank of America |
Credit
Derivative Instruments | |||||||||||||||||||
Less
than One Year | One to Three Years | Three to Five Years | Over Five Years | Total | |||||||||||||||
(Dollars in millions) | Carrying Value | ||||||||||||||||||
Credit default swaps: | |||||||||||||||||||
Investment
grade | $ | i — | $ | i 20 | $ | i 142 | $ | i 477 | $ | i 639 | |||||||||
Non-investment
grade | i 195 | i 488 | i 702 | i 1,244 | i 2,629 | ||||||||||||||
Total | i 195 | i 508 | i 844 | i 1,721 | i 3,268 | ||||||||||||||
Total
return swaps/options: | |||||||||||||||||||
Investment
grade | i 28 | i — | i — | i — | i 28 | ||||||||||||||
Non-investment
grade | i 363 | i 14 | i — | i — | i 377 | ||||||||||||||
Total | i 391 | i 14 | i — | i — | i 405 | ||||||||||||||
Total
credit derivatives | $ | i 586 | $ | i 522 | $ | i 844 | $ | i 1,721 | $ | i 3,673 | |||||||||
Credit-related
notes: | |||||||||||||||||||
Investment
grade | $ | i — | $ | i 3 | $ | i — | $ | i 600 | $ | i 603 | |||||||||
Non-investment
grade | i 2 | i 1 | i 3 | i 1,545 | i 1,551 | ||||||||||||||
Total
credit-related notes | $ | i 2 | $ | i 4 | $ | i 3 | $ | i 2,145 | $ | i 2,154 | |||||||||
Maximum
Payout/Notional | |||||||||||||||||||
Credit default swaps: | |||||||||||||||||||
Investment
grade | $ | i 51,315 | $ | i 87,580 | $ | i 105,430 | $ | i 19,732 | $ | i 264,057 | |||||||||
Non-investment
grade | i 20,038 | i 31,412 | i 39,832 | i 14,007 | i 105,289 | ||||||||||||||
Total | i 71,353 | i 118,992 | i 145,262 | i 33,739 | i 369,346 | ||||||||||||||
Total
return swaps/options: | |||||||||||||||||||
Investment
grade | i 56,759 | i 160 | i 62 | i 75 | i 57,056 | ||||||||||||||
Non-investment
grade | i 22,344 | i 866 | i 133 | i 64 | i 23,407 | ||||||||||||||
Total | i 79,103 | i 1,026 | i 195 | i 139 | i 80,463 | ||||||||||||||
Total
credit derivatives | $ | i 150,456 | $ | i 120,018 | $ | i 145,457 | $ | i 33,878 | $ | i 449,809 | |||||||||
Carrying Value | |||||||||||||||||||
Credit default swaps: | |||||||||||||||||||
Investment
grade | $ | i 2 | $ | i 44 | $ | i 436 | $ | i 488 | $ | i 970 | |||||||||
Non-investment
grade | i 132 | i 636 | i 914 | i 1,691 | i 3,373 | ||||||||||||||
Total | i 134 | i 680 | i 1,350 | i 2,179 | i 4,343 | ||||||||||||||
Total
return swaps/options: | |||||||||||||||||||
Investment
grade | i 105 | i — | i — | i — | i 105 | ||||||||||||||
Non-investment
grade | i 472 | i 21 | i — | i — | i 493 | ||||||||||||||
Total | i 577 | i 21 | i — | i — | i 598 | ||||||||||||||
Total
credit derivatives | $ | i 711 | $ | i 701 | $ | i 1,350 | $ | i 2,179 | $ | i 4,941 | |||||||||
Credit-related
notes: | |||||||||||||||||||
Investment
grade | $ | i — | $ | i — | $ | i 4 | $ | i 532 | $ | i 536 | |||||||||
Non-investment
grade | i 1 | i 1 | i 1 | i 1,500 | i 1,503 | ||||||||||||||
Total
credit-related notes | $ | i 1 | $ | i 1 | $ | i 5 | $ | i 2,032 | $ | i 2,039 | |||||||||
Maximum
Payout/Notional | |||||||||||||||||||
Credit default swaps: | |||||||||||||||||||
Investment grade | $ | i 53,758 | $ | i 95,699 | $ | i 95,274 | $ | i 20,054 | $ | i 264,785 | |||||||||
Non-investment
grade | i 24,297 | i 33,881 | i 34,530 | i 14,426 | i 107,134 | ||||||||||||||
Total | i 78,055 | i 129,580 | i 129,804 | i 34,480 | i 371,919 | ||||||||||||||
Total
return swaps/options: | |||||||||||||||||||
Investment
grade | i 60,042 | i 822 | i 59 | i 72 | i 60,995 | ||||||||||||||
Non-investment
grade | i 24,524 | i 1,649 | i 39 | i 70 | i 26,282 | ||||||||||||||
Total | i 84,566 | i 2,471 | i 98 | i 142 | i 87,277 | ||||||||||||||
Total
credit derivatives | $ | i 162,621 | $ | i 132,051 | $ | i 129,902 | $ | i 34,622 | $ | i 459,196 |
Bank of America 60 |
Additional
Collateral Required to be Posted Upon Downgrade at June 30, 2019 | |||||||
(Dollars in millions) | One incremental notch | Second incremental notch | |||||
Bank of America Corporation | $ | i 522 | $ | i 454 | |||
Bank
of America, N.A. and subsidiaries (1) | i 203 | i 312 |
(1) | Included
in Bank of America Corporation collateral requirements in this table. |
Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at June 30, 2019 | |||||||
(Dollars
in millions) | One incremental notch | Second incremental notch | |||||
Derivative liabilities | $ | i 21 | $ | i 1,036 | |||
Collateral
posted | i 9 | i 586 |
Valuation
Adjustments Gains (Losses) on Derivatives (1) | |||||||||||||
Three Months Ended June 30 | |||||||||||||
2019 | 2018 | ||||||||||||
(Dollars
in millions) | Gross | Net | Gross | Net | |||||||||
Derivative assets (CVA) | $ | ( i 64 | ) | $ | ( i 2 | ) | $ | i 139 | $ | i 127 | |||
Derivative
assets/liabilities (FVA) | i 26 | i 16 | i 28 | ( i 18 | ) | ||||||||
Derivative
liabilities (DVA) | i 8 | ( i 7 | ) | ( i 159 | ) | ( i 159 | ) | ||||||
Six
Months Ended June 30 | |||||||||||||
2019 | 2018 | ||||||||||||
Derivative assets (CVA) | $ | i 2 | $ | i 22 | $ | i 115 | $ | i 145 | |||||
Derivative
assets/liabilities (FVA) | i 33 | i 39 | ( i 9 | ) | ( i 19 | ) | |||||||
Derivative
liabilities (DVA) | ( i 73 | ) | ( i 72 | ) | ( i 43 | ) | ( i 53 | ) |
(1) | At
June 30, 2019 and December 31, 2018, cumulative CVA reduced the derivative assets balance by $ i 598 million and $ i 600
million, cumulative FVA reduced the net derivatives balance by $ i 118 million and $ i 151
million, and cumulative DVA reduced the derivative liabilities balance by $ i 359 million and $ i 432
million, respectively. |
61 Bank of America |
Debt
Securities | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair
Value | ||||||||||||
(Dollars in millions) | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Mortgage-backed
securities: | |||||||||||||||
Agency | $ | i 125,792 | $ | i 576 | $ | ( i 799 | ) | $ | i 125,569 | ||||||
Agency-collateralized
mortgage obligations | i 5,157 | i 80 | ( i 27 | ) | i 5,210 | ||||||||||
Commercial | i 14,313 | i 228 | ( i 16 | ) | i 14,525 | ||||||||||
Non-agency
residential (1) | i 1,789 | i 242 | ( i 9 | ) | i 2,022 | ||||||||||
Total
mortgage-backed securities | i 147,051 | i 1,126 | ( i 851 | ) | i 147,326 | ||||||||||
U.S.
Treasury and agency securities | i 56,157 | i 908 | ( i 246 | ) | i 56,819 | ||||||||||
Non-U.S.
securities | i 11,178 | i 8 | ( i 1 | ) | i 11,185 | ||||||||||
Other
taxable securities, substantially all asset-backed securities | i 3,622 | i 73 | i — | i 3,695 | |||||||||||
Total
taxable securities | i 218,008 | i 2,115 | ( i 1,098 | ) | i 219,025 | ||||||||||
Tax-exempt
securities | i 16,799 | i 189 | ( i 34 | ) | i 16,954 | ||||||||||
Total
available-for-sale debt securities | i 234,807 | i 2,304 | ( i 1,132 | ) | i 235,979 | ||||||||||
Other
debt securities carried at fair value (2) | i 9,942 | i 195 | ( i 22 | ) | i 10,115 | ||||||||||
Total
debt securities carried at fair value | i 244,749 | i 2,499 | ( i 1,154 | ) | i 246,094 | ||||||||||
Held-to-maturity
debt securities, substantially all U.S. agency mortgage-backed securities | i 199,981 | i 3,339 | ( i 836 | ) | i 202,484 | ||||||||||
Total
debt securities (3, 4) | $ | i 444,730 | $ | i 5,838 | $ | ( i 1,990 | ) | $ | i 448,578 | ||||||
Available-for-sale debt securities | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||
Agency | $ | i 125,116 | $ | i 138 | $ | ( i 3,428 | ) | $ | i 121,826 | ||||||
Agency-collateralized
mortgage obligations | i 5,621 | i 19 | ( i 110 | ) | i 5,530 | ||||||||||
Commercial | i 14,469 | i 11 | ( i 402 | ) | i 14,078 | ||||||||||
Non-agency
residential (1) | i 1,792 | i 136 | ( i 11 | ) | i 1,917 | ||||||||||
Total
mortgage-backed securities | i 146,998 | i 304 | ( i 3,951 | ) | i 143,351 | ||||||||||
U.S.
Treasury and agency securities | i 56,239 | i 62 | ( i 1,378 | ) | i 54,923 | ||||||||||
Non-U.S.
securities | i 9,307 | i 5 | ( i 6 | ) | i 9,306 | ||||||||||
Other
taxable securities, substantially all asset-backed securities | i 4,387 | i 29 | ( i 6 | ) | i 4,410 | ||||||||||
Total
taxable securities | i 216,931 | i 400 | ( i 5,341 | ) | i 211,990 | ||||||||||
Tax-exempt
securities | i 17,349 | i 99 | ( i 72 | ) | i 17,376 | ||||||||||
Total
available-for-sale debt securities | i 234,280 | i 499 | ( i 5,413 | ) | i 229,366 | ||||||||||
Other
debt securities carried at fair value (2) | i 8,595 | i 172 | ( i 32 | ) | i 8,735 | ||||||||||
Total
debt securities carried at fair value | i 242,875 | i 671 | ( i 5,445 | ) | i 238,101 | ||||||||||
Held-to-maturity
debt securities, substantially all U.S. agency mortgage-backed securities | i 203,652 | i 747 | ( i 3,964 | ) | i 200,435 | ||||||||||
Total
debt securities (3, 4) | $ | i 446,527 | $ | i 1,418 | $ | ( i 9,409 | ) | $ | i 438,536 |
(1) | At
June 30, 2019 and December 31, 2018, the underlying collateral type included approximately i 67 percent
and i 68 percent prime, i four
percent Alt-A for both periods and i 29 percent and i 28
percent subprime. |
(2) | Primarily includes non-U.S. securities used to satisfy certain international regulatory requirements. Any changes in value are reported in other income. For detail on the components, see Note 15 – Fair Value Measurements. |
(3) | Includes securities pledged as collateral of $ i 42.0
billion and $ i 40.6 billion at June 30, 2019 and December 31, 2018. |
(4) | The
Corporation held debt securities from Fannie Mae (FNMA) and Freddie Mac (FHLMC) that each exceeded 10 percent of shareholders’ equity, with an amortized cost of $ i 160.1 billion and $ i 51.4
billion, and a fair value of $ i 161.9 billion and $ i 52.1
billion at June 30, 2019, and an amortized cost of $ i 161.2 billion and $ i 52.2
billion, and a fair value of $ i 158.5 billion and $ i 51.4
billion at December 31, 2018. |
Bank of America 62 |
Temporarily
Impaired and Other-than-temporarily Impaired AFS Debt Securities | |||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||
Fair
Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
(Dollars
in millions) | |||||||||||||||||||||||
Temporarily impaired AFS debt securities | |||||||||||||||||||||||
Mortgage-backed
securities: | |||||||||||||||||||||||
Agency | $ | i 106 | $ | i — | $ | i 75,567 | $ | ( i 799 | ) | $ | i 75,673 | $ | ( i 799 | ) | |||||||||
Agency-collateralized
mortgage obligations | i 59 | i — | i 1,652 | ( i 27 | ) | i 1,711 | ( i 27 | ) | |||||||||||||||
Commercial | i 859 | ( i 4 | ) | i 1,639 | ( i 12 | ) | i 2,498 | ( i 16 | ) | ||||||||||||||
Non-agency
residential | i 35 | ( i 1 | ) | i 1 | i — | i 36 | ( i 1 | ) | |||||||||||||||
Total
mortgage-backed securities | i 1,059 | ( i 5 | ) | i 78,859 | ( i 838 | ) | i 79,918 | ( i 843 | ) | ||||||||||||||
U.S.
Treasury and agency securities | i 821 | ( i 4 | ) | i 22,323 | ( i 242 | ) | i 23,144 | ( i 246 | ) | ||||||||||||||
Non-U.S.
securities | i 1,335 | ( i 1 | ) | i — | i — | i 1,335 | ( i 1 | ) | |||||||||||||||
Other
taxable securities, substantially all asset-backed securities | i 332 | i — | i 3 | i — | i 335 | i — | |||||||||||||||||
Total
taxable securities | i 3,547 | ( i 10 | ) | i 101,185 | ( i 1,080 | ) | i 104,732 | ( i 1,090 | ) | ||||||||||||||
Tax-exempt
securities | i 50 | i — | i 567 | ( i 34 | ) | i 617 | ( i 34 | ) | |||||||||||||||
Total
temporarily impaired AFS debt securities | i 3,597 | ( i 10 | ) | i 101,752 | ( i 1,114 | ) | i 105,349 | ( i 1,124 | ) | ||||||||||||||
Other-than-temporarily
impaired AFS debt securities (1) | |||||||||||||||||||||||
Non-agency residential mortgage-backed
securities | i 176 | ( i 5 | ) | i 20 | ( i 3 | ) | i 196 | ( i 8 | ) | ||||||||||||||
Total
temporarily impaired and other-than-temporarily impaired AFS debt securities | $ | i 3,773 | $ | ( i 15 | ) | $ | i 101,772 | $ | ( i 1,117 | ) | $ | i 105,545 | $ | ( i 1,132 | ) | ||||||||
Temporarily impaired AFS debt securities | |||||||||||||||||||||||
Mortgage-backed
securities: | |||||||||||||||||||||||
Agency | $ | i 14,771 | $ | ( i 49 | ) | $ | i 99,211 | $ | ( i 3,379 | ) | $ | i 113,982 | $ | ( i 3,428 | ) | ||||||||
Agency-collateralized
mortgage obligations | i 3 | i — | i 4,452 | ( i 110 | ) | i 4,455 | ( i 110 | ) | |||||||||||||||
Commercial | i 1,344 | ( i 8 | ) | i 11,991 | ( i 394 | ) | i 13,335 | ( i 402 | ) | ||||||||||||||
Non-agency
residential | i 106 | ( i 8 | ) | i 49 | ( i 3 | ) | i 155 | ( i 11 | ) | ||||||||||||||
Total
mortgage-backed securities | i 16,224 | ( i 65 | ) | i 115,703 | ( i 3,886 | ) | i 131,927 | ( i 3,951 | ) | ||||||||||||||
U.S.
Treasury and agency securities | i 288 | ( i 1 | ) | i 51,374 | ( i 1,377 | ) | i 51,662 | ( i 1,378 | ) | ||||||||||||||
Non-U.S.
securities | i 773 | ( i 5 | ) | i 21 | ( i 1 | ) | i 794 | ( i 6 | ) | ||||||||||||||
Other
taxable securities, substantially all asset-backed securities | i 183 | ( i 1 | ) | i 185 | ( i 5 | ) | i 368 | ( i 6 | ) | ||||||||||||||
Total
taxable securities | i 17,468 | ( i 72 | ) | i 167,283 | ( i 5,269 | ) | i 184,751 | ( i 5,341 | ) | ||||||||||||||
Tax-exempt
securities | i 232 | ( i 2 | ) | i 2,148 | ( i 70 | ) | i 2,380 | ( i 72 | ) | ||||||||||||||
Total
temporarily impaired AFS debt securities | i 17,700 | ( i 74 | ) | i 169,431 | ( i 5,339 | ) | i 187,131 | ( i 5,413 | ) | ||||||||||||||
Other-than-temporarily
impaired AFS debt securities (1) | |||||||||||||||||||||||
Non-agency residential mortgage-backed
securities | i 131 | i — | i 3 | i — | i 134 | i — | |||||||||||||||||
Total
temporarily impaired and other-than-temporarily impaired AFS debt securities | $ | i 17,831 | $ | ( i 74 | ) | $ | i 169,434 | $ | ( i 5,339 | ) | $ | i 187,265 | $ | ( i 5,413 | ) |
(1) | Includes
other-than-temporarily impaired AFS debt securities on which an OTTI loss, primarily related to changes in interest rates, remains in accumulated OCI. |
Significant
Assumptions | ||||||||
Range (1) | ||||||||
Weighted average | 10th Percentile
(2) | 90th Percentile (2) | ||||||
Prepayment speed | i 16.1 | % | i 4.8 | % | i 27.9 | % | ||
Loss
severity | i 15.9 | i 8.0 | i 33.1 | |||||
Life
default rate | i 12.7 | i 0.9 | i 41.7 |
(1) | Represents
the range of inputs/assumptions based upon the underlying collateral. |
(2) | The value of a variable below which the indicated percentile of observations will fall. |
63 Bank of America |
Maturities
of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities | ||||||||||||||||||||||||||||||||||
Due
in One Year or Less | Due after One Year through Five Years | Due after Five Years through Ten Years | Due after Ten Years | Total | ||||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | ||||||||||||||||||||||||
Amortized
cost of debt securities carried at fair value | ||||||||||||||||||||||||||||||||||
Mortgage-backed
securities: | ||||||||||||||||||||||||||||||||||
Agency | $ | i — | i — | % | $ | i 130 | i 2.33 | % | $ | i 1,814 | i 2.41 | % | $ | i 123,848 | i 3.33 | % | $ | i 125,792 | i 3.32 | % | ||||||||||||||
Agency-collateralized
mortgage obligations | i — | i — | i — | i — | i 28 | i 2.54 | i 5,129 | i 3.17 | i 5,157 | i 3.17 | ||||||||||||||||||||||||
Commercial | i 9 | i 1.78 | i 2,520 | i 2.38 | i 10,871 | i 2.55 | i 913 | i 3.00 | i 14,313 | i 2.55 | ||||||||||||||||||||||||
Non-agency
residential | i — | i — | i — | i — | i 13 | i — | i 3,215 | i 10.50 | i 3,228 | i 10.46 | ||||||||||||||||||||||||
Total
mortgage-backed securities | i 9 | i 1.78 | i 2,650 | i 2.38 | i 12,726 | i 2.53 | i 133,105 | i 3.50 | i 148,490 | i 3.40 | ||||||||||||||||||||||||
U.S.
Treasury and agency securities | i 924 | i 0.18 | i 32,924 | i 1.60 | i 22,291 | i 2.45 | i 18 | i 2.50 | i 56,157 | i 1.92 | ||||||||||||||||||||||||
Non-U.S.
securities | i 18,940 | i 0.97 | i 620 | i 1.55 | i 13 | i 4.30 | i 108 | i 6.50 | i 19,681 | i 1.02 | ||||||||||||||||||||||||
Other
taxable securities, substantially all asset-backed securities | i 736 | i 3.67 | i 2,243 | i 3.44 | i 393 | i 3.62 | i 250 | i 4.31 | i 3,622 | i 3.57 | ||||||||||||||||||||||||
Total
taxable securities | i 20,609 | i 1.04 | i 38,437 | i 1.76 | i 35,423 | i 2.50 | i 133,481 | i 3.50 | i 227,950 | i 2.83 | ||||||||||||||||||||||||
Tax-exempt
securities | i 1,004 | i 2.53 | i 6,895 | i 2.34 | i 5,958 | i 2.44 | i 2,942 | i 2.55 | i 16,799 | i 2.42 | ||||||||||||||||||||||||
Total
amortized cost of debt securities carried at fair value | $ | i 21,613 | i 1.11 | $ | i 45,332 | i 1.85 | $ | i 41,381 | i 2.49 | $ | i 136,423 | i 3.48 | $ | i 244,749 | i 2.80 | |||||||||||||||||||
Amortized
cost of HTM debt securities (2) | $ | i 104 | i 4.27 | $ | i 37 | i 3.97 | $ | i 1,137 | i 2.55 | $ | i 198,703 | i 3.24 | $ | i 199,981 | i 3.24 | |||||||||||||||||||
Debt
securities carried at fair value | ||||||||||||||||||||||||||||||||||
Mortgage-backed
securities: | ||||||||||||||||||||||||||||||||||
Agency | $ | i — | $ | i 130 | $ | i 1,814 | $ | i 123,625 | $ | i 125,569 | ||||||||||||||||||||||||
Agency-collateralized
mortgage obligations | i — | i — | i 28 | i 5,182 | i 5,210 | |||||||||||||||||||||||||||||
Commercial | i 9 | i 2,549 | i 11,034 | i 933 | i 14,525 | |||||||||||||||||||||||||||||
Non-agency
residential | i — | i — | i 27 | i 3,593 | i 3,620 | |||||||||||||||||||||||||||||
Total
mortgage-backed securities | i 9 | i 2,679 | i 12,903 | i 133,333 | i 148,924 | |||||||||||||||||||||||||||||
U.S.
Treasury and agency securities | i 924 | i 32,856 | i 23,020 | i 19 | i 56,819 | |||||||||||||||||||||||||||||
Non-U.S.
securities | i 18,944 | i 630 | i 14 | i 111 | i 19,699 | |||||||||||||||||||||||||||||
Other
taxable securities, substantially all asset-backed securities | i 743 | i 2,284 | i 417 | i 254 | i 3,698 | |||||||||||||||||||||||||||||
Total
taxable securities | i 20,620 | i 38,449 | i 36,354 | i 133,717 | i 229,140 | |||||||||||||||||||||||||||||
Tax-exempt
securities | i 1,005 | i 6,908 | i 6,074 | i 2,967 | i 16,954 | |||||||||||||||||||||||||||||
Total
debt securities carried at fair value | $ | i 21,625 | $ | i 45,357 | $ | i 42,428 | $ | i 136,684 | $ | i 246,094 | ||||||||||||||||||||||||
Fair
value of HTM debt securities (2) | $ | i 104 | $ | i 37 | $ | i 1,148 | $ | i 201,195 | $ | i 202,484 |
(1) | The
weighted-average yield is computed based on a constant effective interest rate over the contractual life of each security. The average yield considers the contractual coupon and the amortization of premiums and accretion of discounts, excluding the effect of related hedging derivatives. |
(2) | Substantially all U.S. agency MBS. |
Bank
of America 64 |
30-59
Days Past Due (1) | 60-89 Days Past Due (1) | 90 Days or More Past Due (2) | Total Past Due 30 Days or More | Total Current or Less Than 30 Days Past Due (3) | Loans
Accounted for Under the Fair Value Option | Total Outstandings | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||
Core
portfolio | |||||||||||||||||||||||||||
Residential
mortgage | $ | i 1,134 | $ | i 226 | $ | i 698 | $ | i 2,058 | $ | i 205,199 | $ | i 207,257 | |||||||||||||||
Home
equity | i 154 | i 74 | i 340 | i 568 | i 37,009 | i 37,577 | |||||||||||||||||||||
Non-core
portfolio | |||||||||||||||||||||||||||
Residential
mortgage | i 573 | i 246 | i 1,628 | i 2,447 | i 10,225 | i 12,672 | |||||||||||||||||||||
Home
equity | i 85 | i 43 | i 203 | i 331 | i 6,226 | i 6,557 | |||||||||||||||||||||
Credit
card and other consumer | |||||||||||||||||||||||||||
U.S.
credit card | i 535 | i 362 | i 941 | i 1,838 | i 92,151 | i 93,989 | |||||||||||||||||||||
Direct/Indirect
consumer (4) | i 278 | i 109 | i 30 | i 417 | i 90,433 | i 90,850 | |||||||||||||||||||||
Other
consumer | i — | i — | i — | i — | i 174 | i 174 | |||||||||||||||||||||
Total
consumer | i 2,759 | i 1,060 | i 3,840 | i 7,659 | i 441,417 | i 449,076 | |||||||||||||||||||||
Consumer
loans accounted for under the fair value option (5) | $ | i 658 | i 658 | ||||||||||||||||||||||||
Total
consumer loans and leases | i 2,759 | i 1,060 | i 3,840 | i 7,659 | i 441,417 | i 658 | i 449,734 | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
U.S.
commercial | i 444 | i 278 | i 406 | i 1,128 | i 304,567 | i 305,695 | |||||||||||||||||||||
Non-U.S.
commercial | i 24 | i 11 | i — | i 35 | i 104,138 | i 104,173 | |||||||||||||||||||||
Commercial
real estate (6) | i 15 | i 22 | i 15 | i 52 | i 61,607 | i 61,659 | |||||||||||||||||||||
Commercial
lease financing | i 29 | i 39 | i 37 | i 105 | i 20,279 | i 20,384 | |||||||||||||||||||||
U.S.
small business commercial | i 82 | i 53 | i 97 | i 232 | i 14,718 | i 14,950 | |||||||||||||||||||||
Total
commercial | i 594 | i 403 | i 555 | i 1,552 | i 505,309 | i 506,861 | |||||||||||||||||||||
Commercial
loans accounted for under the fair value option (5) | i 7,205 | i 7,205 | |||||||||||||||||||||||||
Total
commercial loans and leases | i 594 | i 403 | i 555 | i 1,552 | i 505,309 | i 7,205 | i 514,066 | ||||||||||||||||||||
Total
loans and leases (7) | $ | i 3,353 | $ | i 1,463 | $ | i 4,395 | $ | i 9,211 | $ | i 946,726 | $ | i 7,863 | $ | i 963,800 | |||||||||||||
Percentage
of outstandings | i 0.35 | % | i 0.15 | % | i 0.46 | % | i 0.96 | % | i 98.23 | % | i 0.81 | % | i 100.00 | % |
(1) | Consumer
real estate loans 30-59 days past due includes fully-insured loans of $ i 578 million and nonperforming loans of $ i 167
million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $ i 214 million and nonperforming loans of $ i 121
million. |
(2) | Consumer real estate includes fully-insured loans of $ i 1.4
billion. |
(3) | Consumer real estate includes $ i 1.3
billion and direct/indirect consumer includes $ i 50 million of nonperforming loans. |
(4) | Total
outstandings includes auto and specialty lending loans and leases of $ i 50.3 billion, unsecured consumer lending loans of $ i 344
million, U.S. securities-based lending loans of $ i 36.5 billion, non-U.S. consumer loans of $ i 2.9
billion and other consumer loans of $ i 811 million. |
(5) | Consumer
loans accounted for under the fair value option includes residential mortgage loans of $ i 300 million and home equity loans of $ i 358
million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $ i 3.9 billion and non-U.S. commercial loans of $ i 3.3
billion. For additional information, see Note 15 – Fair Value Measurements and Note 16 – Fair Value Option. |
(6) | Total outstandings includes U.S. commercial real estate loans of $ i 57.0
billion and non-U.S. commercial real estate loans of $ i 4.6 billion. |
(7) | Total
outstandings includes loans and leases pledged as collateral of $ i 32.3 billion. The Corporation also pledged $ i 169.5
billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank (FHLB). |
65 Bank of America |
30-59
Days Past Due (1) | 60-89 Days Past Due (1) | 90 Days or More Past Due (2) | Total Past Due 30 Days or More | Total Current or Less Than 30
Days Past Due (3) | Loans Accounted for Under the Fair Value Option | Total Outstandings | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||
Core
portfolio | |||||||||||||||||||||||||||
Residential
mortgage | $ | i 1,188 | $ | i 249 | $ | i 793 | $ | i 2,230 | $ | i 191,465 | $ | i 193,695 | |||||||||||||||
Home
equity | i 200 | i 85 | i 387 | i 672 | i 39,338 | i 40,010 | |||||||||||||||||||||
Non-core
portfolio | |||||||||||||||||||||||||||
Residential
mortgage | i 757 | i 309 | i 2,201 | i 3,267 | i 11,595 | i 14,862 | |||||||||||||||||||||
Home
equity | i 139 | i 69 | i 339 | i 547 | i 7,729 | i 8,276 | |||||||||||||||||||||
Credit
card and other consumer | |||||||||||||||||||||||||||
U.S.
credit card | i 577 | i 418 | i 994 | i 1,989 | i 96,349 | i 98,338 | |||||||||||||||||||||
Direct/Indirect
consumer (4) | i 317 | i 90 | i 40 | i 447 | i 90,719 | i 91,166 | |||||||||||||||||||||
Other
consumer (5) | i — | i — | i — | i — | i 202 | i 202 | |||||||||||||||||||||
Total
consumer | i 3,178 | i 1,220 | i 4,754 | i 9,152 | i 437,397 | i 446,549 | |||||||||||||||||||||
Consumer
loans accounted for under the fair value option (6) | $ | i 682 | i 682 | ||||||||||||||||||||||||
Total
consumer loans and leases | i 3,178 | i 1,220 | i 4,754 | i 9,152 | i 437,397 | i 682 | i 447,231 | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
U.S.
commercial | i 594 | i 232 | i 573 | i 1,399 | i 297,878 | i 299,277 | |||||||||||||||||||||
Non-U.S.
commercial | i 1 | i 49 | i — | i 50 | i 98,726 | i 98,776 | |||||||||||||||||||||
Commercial
real estate (7) | i 29 | i 16 | i 14 | i 59 | i 60,786 | i 60,845 | |||||||||||||||||||||
Commercial
lease financing | i 124 | i 114 | i 37 | i 275 | i 22,259 | i 22,534 | |||||||||||||||||||||
U.S.
small business commercial | i 83 | i 54 | i 96 | i 233 | i 14,332 | i 14,565 | |||||||||||||||||||||
Total
commercial | i 831 | i 465 | i 720 | i 2,016 | i 493,981 | i 495,997 | |||||||||||||||||||||
Commercial
loans accounted for under the fair value option (6) | i 3,667 | i 3,667 | |||||||||||||||||||||||||
Total
commercial loans and leases | i 831 | i 465 | i 720 | i 2,016 | i 493,981 | i 3,667 | i 499,664 | ||||||||||||||||||||
Total
loans and leases (8) | $ | i 4,009 | $ | i 1,685 | $ | i 5,474 | $ | i 11,168 | $ | i 931,378 | $ | i 4,349 | $ | i 946,895 | |||||||||||||
Percentage
of outstandings | i 0.42 | % | i 0.18 | % | i 0.58 | % | i 1.18 | % | i 98.36 | % | i 0.46 | % | i 100.00 | % |
(1) | Consumer
real estate loans 30-59 days past due includes fully-insured loans of $ i 637 million and nonperforming loans of $ i 217
million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $ i 269 million and nonperforming loans of $ i 146
million. |
(2) | Consumer real estate includes fully-insured loans of $ i 1.9
billion. |
(3) | Consumer real estate includes $ i 1.8
billion and direct/indirect consumer includes $ i 53 million of nonperforming loans. |
(4) | Total
outstandings includes auto and specialty lending loans and leases of $ i 50.1 billion, unsecured consumer lending loans of $ i 383
million, U.S. securities-based lending loans of $ i 37.0 billion, non-U.S. consumer loans of $ i 2.9
billion and other consumer loans of $ i 746 million. |
(5) | Substantially
all of other consumer is consumer overdrafts. |
(6) | Consumer loans accounted for under the fair value option includes residential mortgage loans of $ i 336
million and home equity loans of $ i 346 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $ i 2.5
billion and non-U.S. commercial loans of $ i 1.1 billion. For additional information, see Note 15 – Fair Value Measurements and Note 16 – Fair Value Option. |
(7) | Total
outstandings includes U.S. commercial real estate loans of $ i 56.6 billion and non-U.S. commercial real estate loans of $ i 4.2
billion. |
(8) | Total outstandings includes loans and leases pledged as collateral of $ i 36.7 billion. The Corporation also pledged $ i 166.1
billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and FHLB. |
Bank
of America 66 |
Credit
Quality | |||||||||||||||
Nonperforming Loans and Leases | Accruing
Past Due 90 Days or More | ||||||||||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | |||||||||||
Consumer real estate | |||||||||||||||
Core
portfolio | |||||||||||||||
Residential mortgage (1) | $ | i 989 | $ | i 1,010 | $ | i 196 | $ | i 274 | |||||||
Home
equity | i 727 | i 955 | i — | i — | |||||||||||
Non-core
portfolio | |||||||||||||||
Residential mortgage (1) | i 755 | i 883 | i 1,168 | i 1,610 | |||||||||||
Home
equity | i 476 | i 938 | i — | i — | |||||||||||
Credit
card and other consumer | |||||||||||||||
U.S. credit card | n/a | n/a | i 941 | i 994 | |||||||||||
Direct/Indirect
consumer | i 80 | i 56 | i 28 | i 38 | |||||||||||
Total
consumer | i 3,027 | i 3,842 | i 2,333 | i 2,916 | |||||||||||
Commercial | |||||||||||||||
U.S.
commercial | i 820 | i 794 | i 132 | i 197 | |||||||||||
Non-U.S.
commercial | i 122 | i 80 | i — | i — | |||||||||||
Commercial
real estate | i 112 | i 156 | i 6 | i 4 | |||||||||||
Commercial
lease financing | i 55 | i 18 | i 15 | i 29 | |||||||||||
U.S.
small business commercial | i 51 | i 54 | i 87 | i 84 | |||||||||||
Total
commercial | i 1,160 | i 1,102 | i 240 | i 314 | |||||||||||
Total
loans and leases | $ | i 4,187 | $ | i 4,944 | $ | i 2,573 | $ | i 3,230 |
(1) | Residential
mortgage loans in the core and non-core portfolios accruing past due i 90 days or more are fully-insured loans. At June 30, 2019 and December 31, 2018, residential mortgage includes $ i 1.1
billion and $ i 1.4 billion of loans on which interest has been curtailed by the Federal Housing Administration (FHA) and therefore are no longer accruing interest, although principal is still insured, and $ i 345
million and $ i 498 million of loans on which interest is still accruing. |
Consumer
Real Estate – Credit Quality Indicators (1) | |||||||||||||||||||||||||||||||
Core
Residential Mortgage | Non-core Residential Mortgage | Core Home Equity | Non-core Home Equity | Core Residential Mortgage | Non-core Residential Mortgage | Core
Home Equity | Non-core Home Equity | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||
Refreshed LTV | |||||||||||||||||||||||||||||||
Less
than or equal to 90 percent | $ | i 186,743 | $ | i 8,952 | $ | i 36,904 | $ | i 5,241 | $ | i 173,911 | $ | i 10,272 | $ | i 39,246 | $ | i 6,478 | |||||||||||||||
Greater
than 90 percent but less than or equal to 100 percent | i 3,069 | i 435 | i 313 | i 526 | i 2,349 | i 533 | i 354 | i 715 | |||||||||||||||||||||||
Greater
than 100 percent | i 991 | i 431 | i 360 | i 790 | i 817 | i 545 | i 410 | i 1,083 | |||||||||||||||||||||||
Fully-insured
loans (2) | i 16,454 | i 2,854 | i 16,618 | i 3,512 | |||||||||||||||||||||||||||
Total
consumer real estate | $ | i 207,257 | $ | i 12,672 | $ | i 37,577 | $ | i 6,557 | $ | i 193,695 | $ | i 14,862 | $ | i 40,010 | $ | i 8,276 | |||||||||||||||
Refreshed
FICO score | |||||||||||||||||||||||||||||||
Less
than 620 | $ | i 2,047 | $ | i 1,560 | $ | i 951 | $ | i 988 | $ | i 2,125 | $ | i 1,974 | $ | i 1,064 | $ | i 1,503 | |||||||||||||||
Greater
than or equal to 620 and less than 680 | i 4,614 | i 1,395 | i 1,741 | i 1,189 | i 4,538 | i 1,719 | i 2,008 | i 1,720 | |||||||||||||||||||||||
Greater
than or equal to 680 and less than 740 | i 24,810 | i 2,581 | i 6,452 | i 1,791 | i 23,841 | i 3,042 | i 7,008 | i 2,188 | |||||||||||||||||||||||
Greater
than or equal to 740 | i 159,332 | i 4,282 | i 28,433 | i 2,589 | i 146,573 | i 4,615 | i 29,930 | i 2,865 | |||||||||||||||||||||||
Fully-insured
loans (2) | i 16,454 | i 2,854 | i 16,618 | i 3,512 | |||||||||||||||||||||||||||
Total
consumer real estate | $ | i 207,257 | $ | i 12,672 | $ | i 37,577 | $ | i 6,557 | $ | i 193,695 | $ | i 14,862 | $ | i 40,010 | $ | i 8,276 |
(1) | Excludes
$ i 658 million and $ i 682
million of loans accounted for under the fair value option at June 30, 2019 and December 31, 2018. |
(2) | Credit quality indicators are not reported for fully-insured loans as principal repayment is insured. |
67 Bank
of America |
Credit
Card and Other Consumer – Credit Quality Indicators | |||||||||||||||||||||||
U.S.
Credit Card | Direct/Indirect Consumer | Other Consumer | U.S. Credit Card | Direct/Indirect Consumer | Other Consumer | ||||||||||||||||||
(Dollars
in millions) | |||||||||||||||||||||||
Refreshed FICO score | |||||||||||||||||||||||
Less
than 620 | $ | i 4,758 | $ | i 1,494 | $ | i 5,016 | $ | i 1,719 | |||||||||||||||
Greater
than or equal to 620 and less than 680 | i 11,712 | i 2,785 | i 12,415 | i 3,124 | |||||||||||||||||||
Greater
than or equal to 680 and less than 740 | i 34,073 | i 8,523 | i 35,781 | i 8,921 | |||||||||||||||||||
Greater
than or equal to 740 | i 43,446 | i 37,813 | i 45,126 | i 36,709 | |||||||||||||||||||
Other
internal credit metrics (1, 2) | i 40,235 | $ | i 174 | i 40,693 | $ | i 202 | |||||||||||||||||
Total
credit card and other consumer | $ | i 93,989 | $ | i 90,850 | $ | i 174 | $ | i 98,338 | $ | i 91,166 | $ | i 202 |
(1) | Other
internal credit metrics may include delinquency status, geography or other factors. |
(2) | Direct/indirect consumer includes $ i 39.4
billion and $ i 39.9 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk at June 30, 2019
and December 31, 2018. |
Commercial
– Credit Quality Indicators (1) | |||||||||||||||||||
U.S. Commercial | Non-U.S. Commercial | Commercial Real
Estate | Commercial Lease Financing | U.S. Small Business Commercial (2) | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Risk ratings | |||||||||||||||||||
Pass
rated | $ | i 297,656 | $ | i 103,054 | $ | i 60,816 | $ | i 20,011 | $ | i 240 | |||||||||
Reservable
criticized | i 8,039 | i 1,119 | i 843 | i 373 | i 24 | ||||||||||||||
Refreshed
FICO score | |||||||||||||||||||
Less than 620 | i 279 | ||||||||||||||||||
Greater
than or equal to 620 and less than 680 | i 703 | ||||||||||||||||||
Greater
than or equal to 680 and less than 740 | i 2,167 | ||||||||||||||||||
Greater
than or equal to 740 | i 4,634 | ||||||||||||||||||
Other
internal credit metrics (3) | i 6,903 | ||||||||||||||||||
Total
commercial | $ | i 305,695 | $ | i 104,173 | $ | i 61,659 | $ | i 20,384 | $ | i 14,950 | |||||||||
Risk ratings | |||||||||||||||||||
Pass rated | $ | i 291,918 | $ | i 97,916 | $ | i 59,910 | $ | i 22,168 | $ | i 389 | |||||||||
Reservable
criticized | i 7,359 | i 860 | i 935 | i 366 | i 29 | ||||||||||||||
Refreshed
FICO score | |||||||||||||||||||
Less than 620 | i 264 | ||||||||||||||||||
Greater
than or equal to 620 and less than 680 | i 684 | ||||||||||||||||||
Greater
than or equal to 680 and less than 740 | i 2,072 | ||||||||||||||||||
Greater
than or equal to 740 | i 4,254 | ||||||||||||||||||
Other
internal credit metrics (3) | i 6,873 | ||||||||||||||||||
Total
commercial | $ | i 299,277 | $ | i 98,776 | $ | i 60,845 | $ | i 22,534 | $ | i 14,565 |
(1) | Excludes
$ i 7.2 billion and $ i 3.7
billion of loans accounted for under the fair value option at June 30, 2019 and December 31, 2018. |
(2) | At June 30, 2019 and December 31, 2018, U.S. small business commercial includes $ i 757
million and $ i 731 million of criticized business
card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio. |
(3) | Other internal credit metrics may include delinquency status, application scores, geography or other factors. At both June 30, 2019 and December 31, 2018, i 99
percent of the balances where internal credit metrics are used were current or less than 30 days past due. |
Bank
of America 68 |
Impaired
Loans – Consumer Real Estate | |||||||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | ||||||||||||||||||||||||||
(Dollars
in millions) | |||||||||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||||||||
Residential
mortgage | $ | i 4,917 | $ | i 3,884 | $ | — | $ | i 5,396 | $ | i 4,268 | $ | — | |||||||||||||||||||
Home
equity | i 2,111 | i 1,146 | — | i 2,948 | i 1,599 | — | |||||||||||||||||||||||||
With
an allowance recorded | |||||||||||||||||||||||||||||||
Residential
mortgage | $ | i 1,637 | $ | i 1,605 | $ | i 83 | $ | i 1,977 | $ | i 1,929 | $ | i 114 | |||||||||||||||||||
Home
equity | i 650 | i 617 | i 93 | i 812 | i 760 | i 144 | |||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||
Residential
mortgage | $ | i 6,554 | $ | i 5,489 | $ | i 83 | $ | i 7,373 | $ | i 6,197 | $ | i 114 | |||||||||||||||||||
Home
equity | i 2,761 | i 1,763 | i 93 | i 3,760 | i 2,359 | i 144 | |||||||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (1) | Average Carrying Value | Interest Income Recognized (1) | Average Carrying Value | Interest Income Recognized (1) | Average Carrying Value | Interest Income Recognized (1) | ||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
With
no recorded allowance | |||||||||||||||||||||||||||||||
Residential
mortgage | $ | i 3,949 | $ | i 40 | $ | i 5,362 | $ | i 50 | $ | i 4,064 | $ | i 85 | $ | i 5,978 | $ | i 115 | |||||||||||||||
Home
equity | i 1,468 | i 23 | i 1,944 | i 25 | i 1,523 | i 48 | i 1,953 | i 52 | |||||||||||||||||||||||
With
an allowance recorded | |||||||||||||||||||||||||||||||
Residential
mortgage | $ | i 1,678 | $ | i 16 | $ | i 2,482 | $ | i 24 | $ | i 1,766 | $ | i 34 | $ | i 2,597 | $ | i 49 | |||||||||||||||
Home
equity | i 676 | i 6 | i 891 | i 6 | i 707 | i 12 | i 889 | i 12 | |||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||
Residential
mortgage | $ | i 5,627 | $ | i 56 | $ | i 7,844 | $ | i 74 | $ | i 5,830 | $ | i 119 | $ | i 8,575 | $ | i 164 | |||||||||||||||
Home
equity | i 2,144 | i 29 | i 2,835 | i 31 | i 2,230 | i 60 | i 2,842 | i 64 |
(1) | Interest
income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible. |
Consumer
Real Estate – TDRs Entered into During the Three and Six Months Ended June 30, 2019 and 2018 | |||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Pre-Modification Interest Rate | Post-Modification
Interest Rate (1) | Unpaid Principal Balance | Carrying Value | Pre-Modification Interest Rate | Post-Modification Interest Rate (1) | ||||||||||||||||||||
(Dollars in millions) | Three Months Ended June
30, 2019 | Six Months Ended June 30, 2019 | |||||||||||||||||||||||||
Residential mortgage | $ | i 154 | $ | i 125 | i 4.28 | % | i 4.39 | % | $ | i 277 | $ | i 224 | i 4.27 | % | i 4.30 | % | |||||||||||
Home
equity | i 101 | i 71 | i 5.17 | i 5.16 | i 159 | i 113 | i 5.21 | i 4.88 | |||||||||||||||||||
Total
| $ | i 255 | $ | i 196 | i 4.63 | i 4.69 | $ | i 436 | $ | i 337 | i 4.61 | i 4.51 | |||||||||||||||
Three
Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||
Residential mortgage | $ | i 276 | $ | i 237 | i 4.24 | % | i 3.94 | % | $ | i 628 | $ | i 542 | i 4.17 | % | i 3.93 | % | |||||||||||
Home
equity | i 194 | i 152 | i 4.43 | i 4.42 | i 392 | i 297 | i 4.38 | i 4.06 | |||||||||||||||||||
Total
| $ | i 470 | $ | i 389 | i 4.32 | i 4.14 | $ | i 1,020 | $ | i 839 | i 4.25 | i 3.98 |
(1) | The
post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period. |
69 Bank
of America |
Consumer
Real Estate – Modification Programs | |||||||||||||||
TDRs
Entered into During the | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Modifications
under government programs (1) | $ | i 10 | $ | i 17 | $ | i 18 | $ | i 35 | |||||||
Modifications
under proprietary programs (1) | i 22 | i 92 | i 75 | i 331 | |||||||||||
Loans
discharged in Chapter 7 bankruptcy (2) | i 30 | i 38 | i 52 | i 94 | |||||||||||
Trial
modifications | i 134 | i 242 | i 192 | i 379 | |||||||||||
Total
modifications | $ | i 196 | $ | i 389 | $ | i 337 | $ | i 839 |
(1) | Includes
other modifications such as term or payment extensions and repayment plans. During the three and six months ended June 30, 2018, this included $ i 38
million and $ i 196 million of modifications that met the definition of a TDR related to the 2017 hurricanes. These modifications had been written down to their net realizable value
less costs to sell or were fully insured as of June 30, 2018. |
(2) | Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. |
Consumer
Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months | |||||||||||||||
Three Months Ended June 30 | Six
Months Ended June 30 | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Modifications under government programs | $ | i 6 | $ | i 11 | $ | i 13 | $ | i 24 | |||||||
Modifications
under proprietary programs | i 20 | i 56 | i 49 | i 87 | |||||||||||
Loans
discharged in Chapter 7 bankruptcy (1) | i 9 | i 16 | i 18 | i 39 | |||||||||||
Trial
modifications (2) | i 11 | i 22 | i 27 | i 67 | |||||||||||
Total
modifications | $ | i 46 | $ | i 105 | $ | i 107 | $ | i 217 |
(1) | Includes
loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. |
(2) | Includes trial modification offers to which the customer did not respond. |
Bank
of America 70 |
Impaired
Loans – Credit Card and Other Consumer | |||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value
(1) | Related Allowance | Unpaid Principal Balance | Carrying Value (1) | Related Allowance | ||||||||||||||||||||||
(Dollars
in millions) | |||||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||||
Direct/Indirect
consumer | $ | i 71 | $ | i 33 | $ | — | $ | i 72 | $ | i 33 | $ | — | |||||||||||||||
With
an allowance recorded | |||||||||||||||||||||||||||
U.S.
credit card | $ | i 580 | $ | i 594 | $ | i 174 | $ | i 522 | $ | i 533 | $ | i 154 | |||||||||||||||
Total | |||||||||||||||||||||||||||
U.S.
credit card | $ | i 580 | $ | i 594 | $ | i 174 | $ | i 522 | $ | i 533 | $ | i 154 | |||||||||||||||
Direct/Indirect
consumer | i 71 | i 33 | i — | i 72 | i 33 | i — | |||||||||||||||||||||
Average
Carrying Value (2) | |||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
With
no recorded allowance | |||||||||||||||||||||||||||
Direct/Indirect
consumer | $ | i 33 | $ | i 29 | $ | i 33 | $ | i 29 | |||||||||||||||||||
With
an allowance recorded | |||||||||||||||||||||||||||
U.S.
credit card | $ | i 582 | $ | i 480 | $ | i 565 | $ | i 473 | |||||||||||||||||||
Direct/Indirect
consumer | i — | i 1 | i — | i 1 | |||||||||||||||||||||||
Total | |||||||||||||||||||||||||||
U.S.
credit card | $ | i 582 | $ | i 480 | $ | i 565 | $ | i 473 | |||||||||||||||||||
Direct/Indirect
consumer | i 33 | i 30 | i 33 | i 30 |
(1) | Includes
accrued interest and fees. |
(2) | The related interest income recognized, which includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal was considered collectible, was not significant for the three and six months ended June 30, 2019 and 2018. |
Credit
Card and Other Consumer – TDRs by Program Type | |||||||||||||||||||||||
U.S. Credit Card | Direct/Indirect Consumer | Total TDRs by Program Type | |||||||||||||||||||||
(Dollars
in millions) | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | |||||||||||||||||
Internal
programs | $ | i 302 | $ | i 259 | $ | i — | $ | i — | $ | i 302 | $ | i 259 | |||||||||||
External
programs | i 291 | i 273 | i — | i — | i 291 | i 273 | |||||||||||||||||
Other | i 1 | i 1 | i 33 | i 33 | i 34 | i 34 | |||||||||||||||||
Total | $ | i 594 | $ | i 533 | $ | i 33 | $ | i 33 | $ | i 627 | $ | i 566 | |||||||||||
Percent
of balances current or less than 30 days past due | i 85 | % | i 85 | % | i 85 | % | i 81 | % | i 85 | % | i 85 | % |
Credit
Card and Other Consumer – TDRs Entered into During the Three and Six Months Ended June 30, 2019 and 2018 | |||||||||||||||||||||||||||
Unpaid
Principal Balance | Carrying Value (1) | Pre-Modification Interest Rate | Post-Modification Interest Rate | Unpaid Principal Balance | Carrying Value (1) | Pre-Modification
Interest Rate | Post-Modification Interest Rate | ||||||||||||||||||||
(Dollars in millions) | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||||||||||||||||||||
U.S. credit card | $ | i 95 | $ | i 102 | i 19.84 | % | i 5.38 | % | $ | i 184 | $ | i 195 | i 19.82 | % | i 5.32 | % | |||||||||||
Direct/Indirect
consumer | i 19 | i 11 | i 5.19 | i 5.16 | i 27 | i 15 | i 5.18 | i 5.16 | |||||||||||||||||||
Total
| $ | i 114 | $ | i 113 | i 18.45 | i 5.36 | $ | i 211 | $ | i 210 | i 18.80 | i 5.30 | |||||||||||||||
Three
Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||
U.S. credit card | $ | i 72 | $ | i 78 | i 19.18 | % | i 5.29 | % | $ | i 140 | $ | i 149 | i 19.06 | % | i 5.26 | % | |||||||||||
Direct/Indirect
consumer | i 19 | i 11 | i 4.43 | i 4.43 | i 28 | i 16 | i 4.73 | i 4.56 | |||||||||||||||||||
Total
| $ | i 91 | $ | i 89 | i 17.29 | i 5.18 | $ | i 168 | $ | i 165 | i 17.63 | i 5.19 |
(1) | Includes
accrued interest and fees. |
71 Bank of America |
Impaired
Loans – Commercial | |||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | ||||||||||||||||||||
(Dollars
in millions) | |||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||
U.S.
commercial | $ | i 630 | $ | i 617 | $ | — | $ | i 638 | $ | i 616 | $ | — | |||||||||||||
Non-U.S.
commercial | i 90 | i 90 | — | i 93 | i 93 | — | |||||||||||||||||||
Commercial
real estate | i 107 | i 107 | — | i — | i — | — | |||||||||||||||||||
With
an allowance recorded | |||||||||||||||||||||||||
U.S.
commercial | $ | i 1,287 | $ | i 1,098 | $ | i 106 | $ | i 1,437 | $ | i 1,270 | $ | i 121 | |||||||||||||
Non-U.S.
commercial | i 249 | i 249 | i 30 | i 155 | i 149 | i 30 | |||||||||||||||||||
Commercial
real estate | i 152 | i 75 | i 4 | i 247 | i 162 | i 16 | |||||||||||||||||||
Commercial
lease financing | i 104 | i 88 | i 2 | i 71 | i 71 | i — | |||||||||||||||||||
U.S.
small business commercial (1) | i 81 | i 73 | i 26 | i 83 | i 72 | i 29 | |||||||||||||||||||
Total | |||||||||||||||||||||||||
U.S.
commercial | $ | i 1,917 | $ | i 1,715 | $ | i 106 | $ | i 2,075 | $ | i 1,886 | $ | i 121 | |||||||||||||
Non-U.S.
commercial | i 339 | i 339 | i 30 | i 248 | i 242 | i 30 | |||||||||||||||||||
Commercial
real estate | i 259 | i 182 | i 4 | i 247 | i 162 | i 16 | |||||||||||||||||||
Commercial
lease financing | i 104 | i 88 | i 2 | i 71 | i 71 | i — | |||||||||||||||||||
U.S.
small business commercial (1) | i 81 | i 73 | i 26 | i 83 | i 72 | i 29 | |||||||||||||||||||
Average
Carrying Value (2) | |||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
With
no recorded allowance | |||||||||||||||||||||||||
U.S.
commercial | $ | i 684 | $ | i 684 | $ | i 684 | $ | i 678 | |||||||||||||||||
Non-U.S.
commercial | i 92 | i 61 | i 92 | i 61 | |||||||||||||||||||||
Commercial
real estate | i 167 | i 81 | i 140 | i 75 | |||||||||||||||||||||
Commercial
lease financing | i — | i 7 | i — | i 6 | |||||||||||||||||||||
With
an allowance recorded | |||||||||||||||||||||||||
U.S.
commercial | $ | i 1,171 | $ | i 1,221 | $ | i 1,214 | $ | i 1,163 | |||||||||||||||||
Non-U.S.
commercial | i 244 | i 386 | i 220 | i 416 | |||||||||||||||||||||
Commercial
real estate | i 77 | i 8 | i 99 | i 22 | |||||||||||||||||||||
Commercial
lease financing | i 88 | i 25 | i 83 | i 18 | |||||||||||||||||||||
U.S.
small business commercial (1) | i 75 | i 73 | i 74 | i 74 | |||||||||||||||||||||
Total | |||||||||||||||||||||||||
U.S.
commercial | $ | i 1,855 | $ | i 1,905 | $ | i 1,898 | $ | i 1,841 | |||||||||||||||||
Non-U.S.
commercial | i 336 | i 447 | i 312 | i 477 | |||||||||||||||||||||
Commercial
real estate | i 244 | i 89 | i 239 | i 97 | |||||||||||||||||||||
Commercial
lease financing | i 88 | i 32 | i 83 | i 24 | |||||||||||||||||||||
U.S.
small business commercial (1) | i 75 | i 73 | i 74 | i 74 |
(1) | Includes
U.S. small business commercial renegotiated TDR loans and related allowance. |
(2) | The related interest income recognized, which includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal was considered collectible, was not significant for the three and six months ended June 30, 2019 and 2018. |
Bank
of America 72 |
Consumer
Real Estate | Credit Card and Other Consumer | Commercial | Total | ||||||||||||
(Dollars in millions) | Three Months Ended June 30, 2019 | ||||||||||||||
Allowance for loan and lease losses, April 1 | $ | i 822 | $ | i 3,934 | $ | i 4,821 | $ | i 9,577 | |||||||
Loans
and leases charged off | ( i 153 | ) | ( i 1,075 | ) | ( i 233 | ) | ( i 1,461 | ) | |||||||
Recoveries
of loans and leases previously charged off | i 305 | i 232 | i 37 | i 574 | |||||||||||
Net
charge-offs | i 152 | ( i 843 | ) | ( i 196 | ) | ( i 887 | ) | ||||||||
Provision
for loan and lease losses | ( i 239 | ) | i 879 | i 213 | i 853 | ||||||||||
Other
(1) | ( i 16 | ) | i — | i — | ( i 16 | ) | |||||||||
Allowance
for loan and lease losses, June 30 | i 719 | i 3,970 | i 4,838 | i 9,527 | |||||||||||
Reserve
for unfunded lending commitments, April 1 | i — | i — | i 802 | i 802 | |||||||||||
Provision
for unfunded lending commitments | i — | i — | i 4 | i 4 | |||||||||||
Reserve
for unfunded lending commitments, June 30 | i — | i — | i 806 | i 806 | |||||||||||
Allowance
for credit losses, June 30 | $ | i 719 | $ | i 3,970 | $ | i 5,644 | $ | i 10,333 | |||||||
Three
Months Ended June 30, 2018 | |||||||||||||||
Allowance for loan and lease losses, April 1 | $ | i 1,530 | $ | i 3,720 | $ | i 5,010 | $ | i 10,260 | |||||||
Loans
and leases charged off | ( i 137 | ) | ( i 1,033 | ) | ( i 208 | ) | ( i 1,378 | ) | |||||||
Recoveries
of loans and leases previously charged off | i 130 | i 210 | i 42 | i 382 | |||||||||||
Net
charge-offs | ( i 7 | ) | ( i 823 | ) | ( i 166 | ) | ( i 996 | ) | |||||||
Provision
for loan and lease losses | ( i 121 | ) | i 878 | i 65 | i 822 | ||||||||||
Other
(1) | ( i 36 | ) | ( i 1 | ) | i 1 | ( i 36 | ) | ||||||||
Allowance
for loan and lease losses, June 30 | i 1,366 | i 3,774 | i 4,910 | i 10,050 | |||||||||||
Reserve
for unfunded lending commitments, April 1 | i — | i — | i 782 | i 782 | |||||||||||
Provision
for unfunded lending commitments | i — | i — | i 5 | i 5 | |||||||||||
Reserve
for unfunded lending commitments, June 30 | i — | i — | i 787 | i 787 | |||||||||||
Allowance
for credit losses, June 30 | $ | i 1,366 | $ | i 3,774 | $ | i 5,697 | $ | i 10,837 | |||||||
(Dollars
in millions) | Six Months Ended June 30, 2019 | ||||||||||||||
Allowance for loan and lease losses, January 1 | $ | i 928 | $ | i 3,874 | $ | i 4,799 | $ | i 9,601 | |||||||
Loans
and leases charged off | ( i 256 | ) | ( i 2,132 | ) | ( i 410 | ) | ( i 2,798 | ) | |||||||
Recoveries
of loans and leases previously charged off | i 413 | i 449 | i 58 | i 920 | |||||||||||
Net
charge-offs | i 157 | ( i 1,683 | ) | ( i 352 | ) | ( i 1,878 | ) | ||||||||
Provision
for loan and lease losses | ( i 309 | ) | i 1,779 | i 391 | i 1,861 | ||||||||||
Other
(1) | ( i 57 | ) | i — | i — | ( i 57 | ) | |||||||||
Allowance
for loan and lease losses, June 30 | i 719 | i 3,970 | i 4,838 | i 9,527 | |||||||||||
Reserve
for unfunded lending commitments, January 1 | i — | i — | i 797 | i 797 | |||||||||||
Provision
for unfunded lending commitments | i — | i — | i 9 | i 9 | |||||||||||
Reserve
for unfunded lending commitments, June 30 | i — | i — | i 806 | i 806 | |||||||||||
Allowance
for credit losses, June 30 | $ | i 719 | $ | i 3,970 | $ | i 5,644 | $ | i 10,333 | |||||||
Six
Months Ended June 30, 2018 | |||||||||||||||
Allowance for loan and lease losses, January 1 | $ | i 1,720 | $ | i 3,663 | $ | i 5,010 | $ | i 10,393 | |||||||
Loans
and leases charged off | ( i 311 | ) | ( i 2,039 | ) | ( i 324 | ) | ( i 2,674 | ) | |||||||
Recoveries
of loans and leases previously charged off | i 277 | i 413 | i 77 | i 767 | |||||||||||
Net
charge-offs | ( i 34 | ) | ( i 1,626 | ) | ( i 247 | ) | ( i 1,907 | ) | |||||||
Provision
for loan and lease losses | ( i 249 | ) | i 1,754 | i 146 | i 1,651 | ||||||||||
Other
(1) | ( i 71 | ) | ( i 17 | ) | i 1 | ( i 87 | ) | ||||||||
Allowance
for loan and lease losses, June 30 | i 1,366 | i 3,774 | i 4,910 | i 10,050 | |||||||||||
Reserve
for unfunded lending commitments, January 1 | i — | i — | i 777 | i 777 | |||||||||||
Provision
for unfunded lending commitments | i — | i — | i 10 | i 10 | |||||||||||
Reserve
for unfunded lending commitments, June 30 | i — | i — | i 787 | i 787 | |||||||||||
Allowance
for credit losses, June 30 | $ | i 1,366 | $ | i 3,774 | $ | i 5,697 | $ | i 10,837 |
(1) | Primarily
represents write-offs of purchased credit-impaired loans, the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held for sale, and certain other reclassifications. |
73 Bank of America |
Consumer Real Estate | Credit Card and Other Consumer | Commercial | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Impaired loans and troubled debt restructurings (1) | |||||||||||||||
Allowance
for loan and lease losses | $ | i 176 | $ | i 174 | $ | i 168 | $ | i 518 | |||||||
Carrying
value (2) | i 7,252 | i 627 | i 2,397 | i 10,276 | |||||||||||
Allowance
as a percentage of carrying value | i 2.43 | % | i 27.75 | % | i 7.01 | % | i 5.04 | % | |||||||
Loans
collectively evaluated for impairment | |||||||||||||||
Allowance for loan and lease losses | $ | i 543 | $ | i 3,796 | $ | i 4,670 | $ | i 9,009 | |||||||
Carrying
value (2, 3) | i 256,811 | i 184,386 | i 504,464 | i 945,661 | |||||||||||
Allowance
as a percentage of carrying value (3) | i 0.21 | % | i 2.06 | % | i 0.93 | % | i 0.95 | % | |||||||
Total | |||||||||||||||
Allowance
for loan and lease losses | $ | i 719 | $ | i 3,970 | $ | i 4,838 | $ | i 9,527 | |||||||
Carrying
value (2, 3) | i 264,063 | i 185,013 | i 506,861 | i 955,937 | |||||||||||
Allowance
as a percentage of carrying value (3) | i 0.27 | % | i 2.15 | % | i 0.95 | % | i 1.00 | % | |||||||
Impaired loans and troubled debt restructurings (1) | |||||||||||||||
Allowance
for loan and lease losses | $ | i 258 | $ | i 154 | $ | i 196 | $ | i 608 | |||||||
Carrying
value (2) | i 8,556 | i 566 | i 2,433 | i 11,555 | |||||||||||
Allowance
as a percentage of carrying value | i 3.02 | % | i 27.21 | % | i 8.06 | % | i 5.26 | % | |||||||
Loans
collectively evaluated for impairment | |||||||||||||||
Allowance for loan and lease losses | $ | i 670 | $ | i 3,720 | $ | i 4,603 | $ | i 8,993 | |||||||
Carrying
value (2, 3) | i 248,287 | i 189,140 | i 493,564 | i 930,991 | |||||||||||
Allowance
as a percentage of carrying value (3) | i 0.27 | % | i 1.97 | % | i 0.93 | % | i 0.97 | % | |||||||
Total | |||||||||||||||
Allowance
for loan and lease losses | $ | i 928 | $ | i 3,874 | $ | i 4,799 | $ | i 9,601 | |||||||
Carrying
value (2, 3) | i 256,843 | i 189,706 | i 495,997 | i 942,546 | |||||||||||
Allowance
as a percentage of carrying value (3) | i 0.36 | % | i 2.04 | % | i 0.97 | % | i 1.02 | % |
(1) | Impaired
loans include nonperforming commercial loans and leases, as well as all TDRs, including both commercial and consumer TDRs. Impaired loans exclude nonperforming consumer loans unless they are TDRs, and all consumer and commercial loans accounted for under the fair value option. |
(2) | Amounts are presented gross of the allowance for loan and lease losses. |
(3) | Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of $ i 7.9
billion and $ i 4.3 billion at June 30, 2019 and December 31, 2018. |
Bank of America 74 |
First-lien
Mortgage Securitizations | |||||||||||||||||||||||||||||||
Residential
Mortgage - Agency | Commercial Mortgage | ||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Proceeds
from loan sales (1) | $ | i 2,206 | $ | i 1,496 | $ | i 3,302 | $ | i 3,151 | $ | i 2,194 | $ | i 1,741 | $ | i 3,181 | $ | i 2,279 | |||||||||||||||
Gains
on securitizations (2) | i 8 | i 23 | i 15 | i 41 | i 28 | i 21 | i 45 | i 39 | |||||||||||||||||||||||
Repurchases
from securitization trusts (3) | i 242 | i 357 | i 486 | i 858 | i — | i — | i — | i — |
(1) | The
Corporation transfers residential mortgage loans to securitizations sponsored primarily by the GSEs or Government National Mortgage Association (GNMA) in the normal course of business and primarily receives RMBS in exchange. Substantially all of these securities are classified as Level 2 within the fair value hierarchy and are sold shortly after receipt. |
(2) | A majority of the first-lien residential mortgage loans securitized are initially classified as LHFS and accounted for under the fair value option. Gains recognized on these LHFS prior to securitization, which totaled $ i 11
million and $ i 19 million, net of hedges, during the three and six months ended June 30, 2019 compared to $ i 21
million and $ i 45 million for the same periods in 2018, are not included in the table above. |
(3) | The
Corporation may have the option to repurchase delinquent loans out of securitization trusts, which reduces the amount of servicing advances it is required to make. The Corporation may also repurchase loans from securitization trusts to perform modifications. Repurchased loans include FHA-insured mortgages collateralizing GNMA securities. |
First-lien
Mortgage VIEs | ||||||||||||||||||||||||||||||||||
Residential
Mortgage | ||||||||||||||||||||||||||||||||||
Non-agency | ||||||||||||||||||||||||||||||||||
Agency | Prime | Subprime | Alt-A | Commercial
Mortgage | ||||||||||||||||||||||||||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | June 30 2019 | December 31
2018 | June 30 2019 | December 31 2018 | ||||||||||||||||||||||||
Unconsolidated VIEs | ||||||||||||||||||||||||||||||||||
Maximum
loss exposure (1) | $ | i 15,498 | $ | i 16,011 | $ | i 394 | $ | i 448 | $ | i 1,897 | $ | i 1,897 | $ | i 142 | $ | i 217 | $ | i 826 | $ | i 767 | ||||||||||||||
On-balance
sheet assets | ||||||||||||||||||||||||||||||||||
Senior
securities: | ||||||||||||||||||||||||||||||||||
Trading
account assets | $ | i 736 | $ | i 460 | $ | i 21 | $ | i 30 | $ | i 72 | $ | i 36 | $ | i 21 | $ | i 90 | $ | i 41 | $ | i 97 | ||||||||||||||
Debt
securities carried at fair value | i 8,930 | i 9,381 | i 217 | i 246 | i 1,441 | i 1,470 | i 119 | i 125 | i — | i — | ||||||||||||||||||||||||
Held-to-maturity
securities | i 5,832 | i 6,170 | i — | i — | i — | i — | i — | i — | i 609 | i 528 | ||||||||||||||||||||||||
All
other assets | i — | i — | i 3 | i 3 | i 37 | i 37 | i 2 | i 2 | i 49 | i 40 | ||||||||||||||||||||||||
Total
retained positions | $ | i 15,498 | $ | i 16,011 | $ | i 241 | $ | i 279 | $ | i 1,550 | $ | i 1,543 | $ | i 142 | $ | i 217 | $ | i 699 | $ | i 665 | ||||||||||||||
Principal
balance outstanding (2) | $ | i 174,853 | $ | i 187,512 | $ | i 8,084 | $ | i 8,954 | $ | i 8,058 | $ | i 8,719 | $ | i 21,676 | $ | i 23,467 | $ | i 42,785 | $ | i 43,593 | ||||||||||||||
Consolidated
VIEs | ||||||||||||||||||||||||||||||||||
Maximum
loss exposure (1) | $ | i 11,685 | $ | i 13,296 | $ | i 6 | $ | i 7 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 76 | ||||||||||||||
On-balance
sheet assets | ||||||||||||||||||||||||||||||||||
Trading
account assets | $ | i 539 | $ | i 1,318 | $ | i 135 | $ | i 150 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 76 | ||||||||||||||
Loans
and leases, net | i 10,977 | i 11,858 | i — | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
All
other assets | i 170 | i 143 | i — | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
Total
assets | $ | i 11,686 | $ | i 13,319 | $ | i 135 | $ | i 150 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 76 | ||||||||||||||
Total
liabilities | $ | i 3 | $ | i 26 | $ | i 129 | $ | i 143 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — |
(1) | Maximum
loss exposure includes obligations under loss-sharing reinsurance and other arrangements for non-agency residential mortgage and commercial mortgage securitizations, but excludes the reserve for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations. For additional information, see Note 11 – Commitments and Contingencies and Note 15 – Fair Value Measurements. |
(2) | Principal balance outstanding includes loans where the Corporation was the transferor to securitization VIEs with which it has continuing involvement, which may include servicing
the loans. |
75 Bank
of America |
Home
Equity Loan, Credit Card and Other Asset-backed VIEs | |||||||||||||||||||||||||||
Home
Equity (1) | Credit Card (2, 3) | Resecuritization Trusts | Municipal Bond Trusts | ||||||||||||||||||||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | June 30
2019 | December 31 2018 | June 30 2019 | December 31 2018 | June 30 2019 | December 31 2018 | |||||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||||||
Maximum
loss exposure | $ | i 707 | $ | i 908 | $ | i — | $ | i — | $ | i 7,862 | $ | i 7,647 | $ | i 2,960 | $ | i 2,150 | |||||||||||
On-balance
sheet assets | |||||||||||||||||||||||||||
Senior
securities (4): | |||||||||||||||||||||||||||
Trading
account assets | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 2,008 | $ | i 1,419 | $ | i — | $ | i 26 | |||||||||||
Debt
securities carried at fair value | i 24 | i 27 | i — | i — | i 1,261 | i 1,337 | i — | i — | |||||||||||||||||||
Held-to-maturity
securities | i — | i — | i — | i — | i 4,593 | i 4,891 | i — | i — | |||||||||||||||||||
Total
retained positions | $ | i 24 | $ | i 27 | $ | i — | $ | i — | $ | i 7,862 | $ | i 7,647 | $ | i — | $ | i 26 | |||||||||||
Total
assets of VIEs (5) | $ | i 1,607 | $ | i 1,813 | $ | i — | $ | i — | $ | i 16,999 | $ | i 16,949 | $ | i 3,657 | $ | i 2,829 | |||||||||||
Consolidated
VIEs | |||||||||||||||||||||||||||
Maximum
loss exposure | $ | i 73 | $ | i 85 | $ | i 19,803 | $ | i 18,800 | $ | i 129 | $ | i 128 | $ | i 2,507 | $ | i 1,540 | |||||||||||
On-balance
sheet assets | |||||||||||||||||||||||||||
Trading
account assets | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 149 | $ | i 366 | $ | i 2,462 | $ | i 1,553 | |||||||||||
Loans
and leases | i 113 | i 133 | i 27,703 | i 29,906 | i — | i — | i — | i — | |||||||||||||||||||
Allowance
for loan and lease losses | ( i 3 | ) | ( i 5 | ) | ( i 874 | ) | ( i 901 | ) | i — | i — | i — | i — | |||||||||||||||
All
other assets | i 4 | i 4 | i 119 | i 136 | i — | i — | i 45 | i 1 | |||||||||||||||||||
Total
assets | $ | i 114 | $ | i 132 | $ | i 26,948 | $ | i 29,141 | $ | i 149 | $ | i 366 | $ | i 2,507 | $ | i 1,554 | |||||||||||
On-balance
sheet liabilities | |||||||||||||||||||||||||||
Short-term
borrowings | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 1,845 | $ | i 742 | |||||||||||
Long-term
debt | i 47 | i 55 | i 7,122 | i 10,321 | i 20 | i 238 | i — | i 12 | |||||||||||||||||||
All
other liabilities | i — | i — | i 23 | i 20 | i — | i — | i — | i — | |||||||||||||||||||
Total
liabilities | $ | i 47 | $ | i 55 | $ | i 7,145 | $ | i 10,341 | $ | i 20 | $ | i 238 | $ | i 1,845 | $ | i 754 |
(1) | For
unconsolidated home equity loan VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves. For both consolidated and unconsolidated home equity loan VIEs, the maximum loss exposure excludes the reserve for representations and warranties obligations and corporate guarantees. For additional information, see Note 11 – Commitments and Contingencies. |
(2) | At June 30, 2019 and December 31, 2018, loans and leases
in the consolidated credit card trust included $ i 12.6 billion and $ i 11.0
billion of seller’s interest. |
(3) | At June 30, 2019 and December 31, 2018, all other assets in the consolidated credit card trust included certain short-term investments and unbilled accrued interest and fees. |
(4) | The retained senior securities were
valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy). |
(5) | Total assets of VIEs includes loans the Corporation transferred with which it has continuing involvement, which may include servicing the loan. |
Bank of America 76 |
Other
VIEs | |||||||||||||||||||||||
Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | ||||||||||||||||||
(Dollars
in millions) | |||||||||||||||||||||||
Maximum loss exposure | $ | i 4,036 | $ | i 23,722 | $ | i 27,758 | $ | i 4,177 | $ | i 24,498 | $ | i 28,675 | |||||||||||
On-balance
sheet assets | |||||||||||||||||||||||
Trading
account assets | $ | i 2,184 | $ | i 899 | $ | i 3,083 | $ | i 2,335 | $ | i 860 | $ | i 3,195 | |||||||||||
Debt
securities carried at fair value | i — | i 80 | i 80 | i — | i 84 | i 84 | |||||||||||||||||
Loans
and leases | i 1,880 | i 3,919 | i 5,799 | i 1,949 | i 3,940 | i 5,889 | |||||||||||||||||
Allowance
for loan and lease losses | ( i 2 | ) | ( i 40 | ) | ( i 42 | ) | ( i 2 | ) | ( i 30 | ) | ( i 32 | ) | |||||||||||
All
other assets | i 49 | i 18,536 | i 18,585 | i 53 | i 18,885 | i 18,938 | |||||||||||||||||
Total | $ | i 4,111 | $ | i 23,394 | $ | i 27,505 | $ | i 4,335 | $ | i 23,739 | $ | i 28,074 | |||||||||||
On-balance
sheet liabilities | |||||||||||||||||||||||
Long-term
debt | $ | i 74 | $ | i — | $ | i 74 | $ | i 152 | $ | i — | $ | i 152 | |||||||||||
All
other liabilities | i 2 | i 4,133 | i 4,135 | i 7 | i 4,231 | i 4,238 | |||||||||||||||||
Total | $ | i 76 | $ | i 4,133 | $ | i 4,209 | $ | i 159 | $ | i 4,231 | $ | i 4,390 | |||||||||||
Total
assets of VIEs | $ | i 4,111 | $ | i 93,075 | $ | i 97,186 | $ | i 4,335 | $ | i 94,746 | $ | i 99,081 |
77 Bank of America |
Goodwill
| |||||||
(Dollars in millions) | June 30 2019 | December 31 2018 | |||||
Consumer Banking | $ | i 30,123 | $ | i 30,123 | |||
Global
Wealth & Investment Management | i 9,677 | i 9,677 | |||||
Global
Banking | i 23,923 | i 23,923 | |||||
Global
Markets | i 5,182 | i 5,182 | |||||
All
Other | i 46 | i 46 | |||||
Total
goodwill | $ | i 68,951 | $ | i 68,951 |
Lease Cost and Supplemental Information | |||||||
(Dollars
in millions) | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||
Operating lease cost | $ | i 520 | $ | i 1,039 | |||
Variable
lease cost (1) | i 113 | i 240 | |||||
Total
lease cost (2) | $ | i 633 | $ | i 1,279 | |||
Right-of-use
assets obtained in exchange for new operating lease liabilities (3) | $ | i 263 | $ | i 648 | |||
Operating
cash flows from operating leases (4) | i 499 | i 1,000 |
(1) | Primarily
consists of payments for common area maintenance and property taxes. |
(2) | Amounts are recorded in occupancy and equipment expense in the Consolidated Statement of Income. |
(3) | Represents non-cash activity and, accordingly, is not reflected in the Consolidated Statement of Cash Flows. |
(4) | Represents
cash paid for amounts included in the measurement of lease liabilities. |
Bank of America 78 |
Maturities
of Lessor and Lessee Arrangements | |||||||||||
Lessor | Lessee (1) | ||||||||||
Operating
Leases | Sales-type and Direct Financing Leases (2) | Operating Leases | |||||||||
(Dollars in millions) | |||||||||||
Remainder of 2019 | $ | i 402 | $ | i 3,172 | $ | i 1,002 | |||||
2020 | i 725 | i 5,816 | i 1,907 | ||||||||
2021 | i 612 | i 4,766 | i 1,686 | ||||||||
2022 | i 516 | i 3,100 | i 1,426 | ||||||||
2023 | i 411 | i 1,598 | i 1,167 | ||||||||
Thereafter | i 1,217 | i 2,784 | i 4,896 | ||||||||
Total
undiscounted cash flows | $ | i 3,883 | $ | i 21,236 | $ | i 12,084 | |||||
Less:
Net present value adjustment | i 1,694 | i 1,845 | |||||||||
Total
(3) | $ | i 19,542 | $ | i 10,239 |
(1) | Excludes
$ i 1.6 billion in commitments under lessee arrangements that have not yet commenced with lease terms that will begin later in 2019. |
(2) | Includes $ i 15.8
billion in commercial lease financing receivables and $ i 3.7 billion in direct/indirect consumer lease financing receivables. |
(3) | Represents
lease receivables for lessor arrangements and lease liabilities for lessee arrangements. |
Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | |||||||||||||||||||||||||||
Average
during period | $ | i 281,085 | i 1.87 | % | $ | i 251,880 | i 1.13 | % | $ | i 277,715 | i 1.82 | % | $ | i 250,110 | i 1.07 | % | |||||||||||
Maximum
month-end balance during period | i 263,416 | n/a | i 264,923 | n/a | i 280,562 | n/a | i 264,923 | n/a | |||||||||||||||||||
Federal
funds purchased and securities loaned or sold under agreements to repurchase | |||||||||||||||||||||||||||
Average
during period | $ | i 204,001 | i 2.50 | % | $ | i 194,298 | i 1.85 | % | $ | i 202,088 | i 2.47 | % | $ | i 194,953 | i 1.63 | % | |||||||||||
Maximum
month-end balance during period | i 203,063 | n/a | i 199,419 | n/a | i 203,063 | n/a | i 199,419 | n/a | |||||||||||||||||||
Short-term
borrowings | |||||||||||||||||||||||||||
Average
during period | i 23,051 | i 2.79 | i 40,542 | i 5.61 | i 19,263 | i 2.86 | i 43,422 | i 4.75 | |||||||||||||||||||
Maximum
month-end balance during period | i 28,600 | n/a | i 44,382 | n/a | i 28,600 | n/a | i 52,480 | n/a |
79 Bank
of America |
Securities
Financing Agreements | |||||||||||||||||||
Gross Assets/Liabilities (1) | Amounts
Offset | Net Balance Sheet Amount | Financial Instruments (2) | Net Assets/Liabilities | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Securities borrowed or purchased under agreements to resell (3) | $ | i 400,282 | $ | ( i 152,205 | ) | $ | i 248,077 | $ | ( i 227,203 | ) | $ | i 20,874 | |||||||
Securities
loaned or sold under agreements to repurchase | $ | i 347,153 | $ | ( i 152,205 | ) | $ | i 194,948 | $ | ( i 182,904 | ) | $ | i 12,044 | |||||||
Other
(4) | i 22,683 | i — | i 22,683 | ( i 22,683 | ) | i — | |||||||||||||
Total | $ | i 369,836 | $ | ( i 152,205 | ) | $ | i 217,631 | $ | ( i 205,587 | ) | $ | i 12,044 | |||||||
Securities borrowed or purchased under agreements to resell (3) | $ | i 366,274 | $ | ( i 106,865 | ) | $ | i 259,409 | $ | ( i 240,790 | ) | $ | i 18,619 | |||||||
Securities
loaned or sold under agreements to repurchase | $ | i 293,853 | $ | ( i 106,865 | ) | $ | i 186,988 | $ | ( i 176,740 | ) | $ | i 10,248 | |||||||
Other
(4) | i 19,906 | i — | i 19,906 | ( i 19,906 | ) | i — | |||||||||||||
Total | $ | i 313,759 | $ | ( i 106,865 | ) | $ | i 206,894 | $ | ( i 196,646 | ) | $ | i 10,248 |
(1) | Includes
activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries. |
(2) | Includes securities collateral received or pledged under repurchase or securities lending agreements where there is a legally enforceable master netting agreement. These amounts are not offset on the Consolidated Balance Sheet, but are shown as a reduction to derive a net asset or liability. Securities collateral received or pledged where the legal enforceability of the master netting agreements is uncertain is excluded from the table. |
(3) | Excludes
repurchase activity of $ i 12.9 billion and $ i 11.5 billion reported in loans and leases on the Consolidated Balance Sheet at June
30, 2019 and December 31, 2018. |
(4) | Balance is reported in accrued expenses and other liabilities on the Consolidated Balance Sheet and relates to transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. In these transactions, the Corporation recognizes an asset at fair value, representing the securities received, and a liability, representing the obligation to return those securities. |
Remaining
Contractual Maturity | |||||||||||||||||||
Overnight and Continuous | 30
Days or Less | After 30 Days Through 90 Days | Greater than 90 Days (1) | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Securities sold under agreements to repurchase | $ | i 156,634 | $ | i 97,077 | $ | i 34,900 | $ | i 35,311 | $ | i 323,922 | |||||||||
Securities
loaned | i 18,161 | i 457 | i 1,016 | i 3,597 | i 23,231 | ||||||||||||||
Other | i 22,683 | i — | i — | i — | i 22,683 | ||||||||||||||
Total | $ | i 197,478 | $ | i 97,534 | $ | i 35,916 | $ | i 38,908 | $ | i 369,836 | |||||||||
Securities sold under agreements to repurchase | $ | i 139,017 | $ | i 81,917 | $ | i 34,204 | $ | i 21,476 | $ | i 276,614 | |||||||||
Securities
loaned | i 7,753 | i 4,197 | i 1,783 | i 3,506 | i 17,239 | ||||||||||||||
Other | i 19,906 | i — | i — | i — | i 19,906 | ||||||||||||||
Total | $ | i 166,676 | $ | i 86,114 | $ | i 35,987 | $ | i 24,982 | $ | i 313,759 |
(1) | No
agreements have maturities greater than i three years. |
Class
of Collateral Pledged | |||||||||||||||
Securities Sold Under Agreements to Repurchase | Securities Loaned | Other | Total | ||||||||||||
(Dollars
in millions) | |||||||||||||||
U.S. government and agency securities | $ | i 186,529 | $ | i 31 | $ | i 1 | $ | i 186,561 | |||||||
Corporate
securities, trading loans and other | i 12,390 | i 3,917 | i 231 | i 16,538 | |||||||||||
Equity
securities | i 14,672 | i 13,250 | i 22,399 | i 50,321 | |||||||||||
Non-U.S.
sovereign debt | i 106,086 | i 6,033 | i 52 | i 112,171 | |||||||||||
Mortgage
trading loans and ABS | i 4,245 | i — | i — | i 4,245 | |||||||||||
Total | $ | i 323,922 | $ | i 23,231 | $ | i 22,683 | $ | i 369,836 | |||||||
U.S. government and agency securities | $ | i 164,664 | $ | i — | $ | i — | $ | i 164,664 | |||||||
Corporate
securities, trading loans and other | i 11,400 | i 2,163 | i 287 | i 13,850 | |||||||||||
Equity
securities | i 14,090 | i 10,869 | i 19,572 | i 44,531 | |||||||||||
Non-U.S.
sovereign debt | i 81,329 | i 4,207 | i 47 | i 85,583 | |||||||||||
Mortgage
trading loans and ABS | i 5,131 | i — | i — | i 5,131 | |||||||||||
Total | $ | i 276,614 | $ | i 17,239 | $ | i 19,906 | $ | i 313,759 |
Bank
of America 80 |
Credit
Extension Commitments | |||||||||||||||||||
Expire in One Year or Less | Expire After One Year Through Three Years | Expire After Three Years Through Five Years | Expire After Five Years | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Notional amount of credit extension commitments | |||||||||||||||||||
Loan
commitments (1) | $ | i 88,218 | $ | i 147,733 | $ | i 161,196 | $ | i 22,984 | $ | i 420,131 | |||||||||
Home
equity lines of credit | i 1,791 | i 1,825 | i 4,624 | i 35,281 | i 43,521 | ||||||||||||||
Standby
letters of credit and financial guarantees (2) | i 19,827 | i 9,787 | i 3,165 | i 1,444 | i 34,223 | ||||||||||||||
Letters
of credit (3) | i 1,553 | i 325 | i 215 | i 36 | i 2,129 | ||||||||||||||
Legally
binding commitments | i 111,389 | i 159,670 | i 169,200 | i 59,745 | i 500,004 | ||||||||||||||
Credit
card lines (4) | i 379,383 | i — | i — | i — | i 379,383 | ||||||||||||||
Total
credit extension commitments | $ | i 490,772 | $ | i 159,670 | $ | i 169,200 | $ | i 59,745 | $ | i 879,387 | |||||||||
Notional amount of credit extension commitments | |||||||||||||||||||
Loan
commitments (1) | $ | i 84,910 | $ | i 142,271 | $ | i 155,298 | $ | i 22,683 | $ | i 405,162 | |||||||||
Home
equity lines of credit | i 2,578 | i 2,249 | i 3,530 | i 34,702 | i 43,059 | ||||||||||||||
Standby
letters of credit and financial guarantees (2) | i 22,571 | i 9,702 | i 2,457 | i 1,074 | i 35,804 | ||||||||||||||
Letters
of credit (3) | i 1,168 | i 84 | i 69 | i 57 | i 1,378 | ||||||||||||||
Legally
binding commitments | i 111,227 | i 154,306 | i 161,354 | i 58,516 | i 485,403 | ||||||||||||||
Credit
card lines (4) | i 371,658 | i — | i — | i — | i 371,658 | ||||||||||||||
Total
credit extension commitments | $ | i 482,885 | $ | i 154,306 | $ | i 161,354 | $ | i 58,516 | $ | i 857,061 |
(1)
| At June 30, 2019 and December 31, 2018, $ i 5.1 billion and $ i 4.3
billion of these loan commitments are held in the form of a security. |
(2) | The notional amounts of SBLCs and financial guarantees classified as investment grade and non-investment grade based on the credit quality of the underlying reference name within the instrument were $ i 26.4
billion and $ i 7.4 billion at June 30, 2019, and $ i 28.3
billion and $ i 7.1 billion at December 31, 2018. Amounts in the table include consumer SBLCs of $ i 377
million and $ i 372 million at June 30, 2019 and December 31, 2018. |
(3)
| At June 30, 2019 and December 31, 2018, included are letters of credit of $ i 695 million
and $ i 422 million related to certain liquidity commitments of VIEs. For additional information, see Note 7 – Securitizations and Other Variable Interest Entities. |
(4) | Includes
business card unused lines of credit. |
81 Bank of America |
Bank
of America 82 |
Declared
Quarterly Cash Dividends on Common Stock (1) | ||||||||
Declaration Date | Record Date | Payment Date | Dividend
Per Share | |||||
$ | i 0.18 | |||||||
i 0.15 | ||||||||
i 0.15 |
(1) |
83 Bank
of America |
Three
Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(In millions, except per share information) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Earnings per common share | |||||||||||||||
Net
income | $ | i 7,348 | $ | i 6,784 | $ | i 14,659 | $ | i 13,702 | |||||||
Preferred
stock dividends | ( i 239 | ) | ( i 318 | ) | ( i 681 | ) | ( i 746 | ) | |||||||
Net
income applicable to common shareholders | $ | i 7,109 | $ | i 6,466 | $ | i 13,978 | $ | i 12,956 | |||||||
Average
common shares issued and outstanding | i 9,523.2 | i 10,181.7 | i 9,624.0 | i 10,251.7 | |||||||||||
Earnings
per common share | $ | i 0.75 | $ | i 0.64 | $ | i 1.45 | $ | i 1.26 | |||||||
Diluted
earnings per common share | |||||||||||||||
Net income applicable to common shareholders | $ | i 7,109 | $ | i 6,466 | $ | i 13,978 | $ | i 12,956 | |||||||
Average
common shares issued and outstanding | i 9,523.2 | i 10,181.7 | i 9,624.0 | i 10,251.7 | |||||||||||
Dilutive
potential common shares (1) | i 36.4 | i 127.7 | i 48.4 | i 138.2 | |||||||||||
Total
diluted average common shares issued and outstanding | i 9,559.6 | i 10,309.4 | i 9,672.4 | i 10,389.9 | |||||||||||
Diluted
earnings per common share | $ | i 0.74 | $ | i 0.63 | $ | i 1.45 | $ | i 1.25 |
(1) | Includes
incremental dilutive shares from restricted stock units, restricted stock and warrants. |
Bank of America 84 |
(Dollars
in millions) | Debt Securities | Debit Valuation Adjustments | Derivatives | Employee Benefit Plans | Foreign Currency | Total | |||||||||||||||||
Balance,
December 31, 2017 | $ | ( i 1,206 | ) | $ | ( i 1,060 | ) | $ | ( i 831 | ) | $ | ( i 3,192 | ) | $ | ( i 793 | ) | $ | ( i 7,082 | ) | |||||
Accounting
change related to certain tax effects (1) | ( i 393 | ) | ( i 220 | ) | ( i 189 | ) | ( i 707 | ) | i 239 | ( i 1,270 | ) | ||||||||||||
Cumulative
adjustment for hedge accounting change (2) | i — | i — | i 57 | i — | i — | i 57 | |||||||||||||||||
Net
change | ( i 4,994 | ) | i 452 | ( i 367 | ) | i 60 | ( i 189 | ) | ( i 5,038 | ) | |||||||||||||
Balance,
June 30, 2018 | $ | ( i 6,593 | ) | $ | ( i 828 | ) | $ | ( i 1,330 | ) | $ | ( i 3,839 | ) | $ | ( i 743 | ) | $ | ( i 13,333 | ) | |||||
Balance,
December 31, 2018 | $ | ( i 5,552 | ) | $ | ( i 531 | ) | $ | ( i 1,016 | ) | $ | ( i 4,304 | ) | $ | ( i 808 | ) | $ | ( i 12,211 | ) | |||||
Net
change | i 4,693 | ( i 501 | ) | i 533 | i 57 | ( i 48 | ) | i 4,734 | |||||||||||||||
Balance,
June 30, 2019 | $ | ( i 859 | ) | $ | ( i 1,032 | ) | $ | ( i 483 | ) | $ | ( i 4,247 | ) | $ | ( i 856 | ) | $ | ( i 7,477 | ) |
(1) | Effective
January 1, 2018, the Corporation adopted the accounting standard on tax effects in accumulated OCI related to the Tax Act. Accordingly, certain tax effects were reclassified from accumulated OCI to retained earnings. |
(2) | Effective January 1, 2018, the Corporation adopted the hedge accounting standard. Accordingly, an insignificant cumulative-effect adjustment was recognized in retained earnings. |
Pretax | Tax
effect | After- tax | Pretax | Tax effect | After- tax | ||||||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||||
(Dollars
in millions) | 2019 | 2018 | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
Net
increase (decrease) in fair value | $ | i 6,354 | $ | ( i 1,583 | ) | $ | i 4,771 | $ | ( i 6,700 | ) | $ | i 1,702 | $ | ( i 4,998 | ) | ||||||||
Net
realized (gains) losses reclassified into earnings (1) | ( i 104 | ) | i 26 | ( i 78 | ) | i 8 | ( i 4 | ) | i 4 | ||||||||||||||
Net
change | i 6,250 | ( i 1,557 | ) | i 4,693 | ( i 6,692 | ) | i 1,698 | ( i 4,994 | ) | ||||||||||||||
Debit
valuation adjustments: | |||||||||||||||||||||||
Net increase (decrease) in fair value | ( i 663 | ) | i 153 | ( i 510 | ) | i 576 | ( i 138 | ) | i 438 | ||||||||||||||
Net
realized losses reclassified into earnings (1) | i 10 | ( i 1 | ) | i 9 | i 18 | ( i 4 | ) | i 14 | |||||||||||||||
Net
change | ( i 653 | ) | i 152 | ( i 501 | ) | i 594 | ( i 142 | ) | i 452 | ||||||||||||||
Derivatives: | |||||||||||||||||||||||
Net
increase (decrease) in fair value | i 637 | ( i 143 | ) | i 494 | ( i 578 | ) | i 169 | ( i 409 | ) | ||||||||||||||
Reclassifications
into earnings: | |||||||||||||||||||||||
Net interest income | i 51 | ( i 12 | ) | i 39 | i 83 | ( i 21 | ) | i 62 | |||||||||||||||
Compensation
and benefits expense | i — | i — | i — | ( i 27 | ) | i 7 | ( i 20 | ) | |||||||||||||||
Net
realized losses reclassified into earnings | i 51 | ( i 12 | ) | i 39 | i 56 | ( i 14 | ) | i 42 | |||||||||||||||
Net
change | i 688 | ( i 155 | ) | i 533 | ( i 522 | ) | i 155 | ( i 367 | ) | ||||||||||||||
Employee
benefit plans: | |||||||||||||||||||||||
Net actuarial losses and other reclassified into earnings (2) | i 74 | ( i 17 | ) | i 57 | i 78 | ( i 18 | ) | i 60 | |||||||||||||||
Net
change | i 74 | ( i 17 | ) | i 57 | i 78 | ( i 18 | ) | i 60 | |||||||||||||||
Foreign
currency: | |||||||||||||||||||||||
Net (decrease) in fair value | ( i 37 | ) | ( i 11 | ) | ( i 48 | ) | ( i 50 | ) | ( i 139 | ) | ( i 189 | ) | |||||||||||
Net
change | ( i 37 | ) | ( i 11 | ) | ( i 48 | ) | ( i 50 | ) | ( i 139 | ) | ( i 189 | ) | |||||||||||
Total
other comprehensive income (loss) | $ | i 6,322 | $ | ( i 1,588 | ) | $ | i 4,734 | $ | ( i 6,592 | ) | $ | i 1,554 | $ | ( i 5,038 | ) |
(1) | Reclassifications of pretax debt securities and DVA are recorded in other income in the Consolidated Statement of Income. |
(2) | Reclassifications of pretax employee benefit plan costs are recorded in other general operating expense in the Consolidated Statement of Income. |
85 Bank of America |
Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting
Adjustments (1) | Assets/Liabilities at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Time
deposits placed and other short-term investments | $ | i 1,179 | $ | i — | $ | i — | $ | — | $ | i 1,179 | |||||||||
Federal
funds sold and securities borrowed or purchased under agreements to resell | i — | i 54,257 | i — | — | i 54,257 | ||||||||||||||
Trading
account assets: | |||||||||||||||||||
U.S.
Treasury and agency securities (2) | i 42,612 | i 825 | i — | — | i 43,437 | ||||||||||||||
Corporate
securities, trading loans and other | i — | i 27,902 | i 1,393 | — | i 29,295 | ||||||||||||||
Equity
securities | i 72,274 | i 30,515 | i 296 | — | i 103,085 | ||||||||||||||
Non-U.S.
sovereign debt | i 11,279 | i 29,318 | i 481 | — | i 41,078 | ||||||||||||||
Mortgage
trading loans, MBS and ABS: | |||||||||||||||||||
U.S. government-sponsored agency guaranteed (2) | i — | i 24,769 | i — | — | i 24,769 | ||||||||||||||
Mortgage
trading loans, ABS and other MBS | i — | i 8,934 | i 1,389 | — | i 10,323 | ||||||||||||||
Total
trading account assets (3) | i 126,165 | i 122,263 | i 3,559 | — | i 251,987 | ||||||||||||||
Derivative
assets | i 14,574 | i 336,706 | i 3,403 | ( i 309,771 | ) | i 44,912 | |||||||||||||
AFS
debt securities: | |||||||||||||||||||
U.S.
Treasury and agency securities | i 55,574 | i 1,245 | i — | — | i 56,819 | ||||||||||||||
Mortgage-backed
securities: | |||||||||||||||||||
Agency | i — | i 125,569 | i — | — | i 125,569 | ||||||||||||||
Agency-collateralized
mortgage obligations | i — | i 5,210 | i — | — | i 5,210 | ||||||||||||||
Non-agency
residential | i — | i 1,454 | i 568 | — | i 2,022 | ||||||||||||||
Commercial | i — | i 14,525 | i — | — | i 14,525 | ||||||||||||||
Non-U.S.
securities | i — | i 11,183 | i 2 | — | i 11,185 | ||||||||||||||
Other
taxable securities | i — | i 3,692 | i 3 | — | i 3,695 | ||||||||||||||
Tax-exempt
securities | i — | i 16,954 | i — | — | i 16,954 | ||||||||||||||
Total
AFS debt securities | i 55,574 | i 179,832 | i 573 | — | i 235,979 | ||||||||||||||
Other
debt securities carried at fair value: | |||||||||||||||||||
Non-agency residential MBS | i — | i 1,325 | i 273 | — | i 1,598 | ||||||||||||||
Non-U.S.
securities | i 2,838 | i 5,676 | i — | — | i 8,514 | ||||||||||||||
Other
taxable securities | i — | i 3 | i — | — | i 3 | ||||||||||||||
Total
other debt securities carried at fair value | i 2,838 | i 7,004 | i 273 | — | i 10,115 | ||||||||||||||
Loans
and leases | i — | i 7,508 | i 355 | — | i 7,863 | ||||||||||||||
Loans
held-for-sale | i — | i 1,902 | i 486 | — | i 2,388 | ||||||||||||||
Other
assets (4) | i 17,689 | i 1,834 | i 2,551 | — | i 22,074 | ||||||||||||||
Total
assets (5) | $ | i 218,019 | $ | i 711,306 | $ | i 11,200 | $ | ( i 309,771 | ) | $ | i 630,754 | ||||||||
Liabilities | |||||||||||||||||||
Interest-bearing
deposits in U.S. offices | $ | i — | $ | i 604 | $ | i — | $ | — | $ | i 604 | |||||||||
Federal
funds purchased and securities loaned or sold under agreements to repurchase | i — | i 19,866 | i — | — | i 19,866 | ||||||||||||||
Trading
account liabilities: | |||||||||||||||||||
U.S.
Treasury and agency securities | i 14,891 | i 2,072 | i — | — | i 16,963 | ||||||||||||||
Equity
securities | i 32,135 | i 3,604 | i 2 | — | i 35,741 | ||||||||||||||
Non-U.S.
sovereign debt | i 13,814 | i 8,100 | i — | — | i 21,914 | ||||||||||||||
Corporate
securities and other | i — | i 7,519 | i 13 | — | i 7,532 | ||||||||||||||
Total
trading account liabilities | i 60,840 | i 21,295 | i 15 | — | i 82,150 | ||||||||||||||
Derivative
liabilities | i 13,435 | i 330,362 | i 4,517 | ( i 309,934 | ) | i 38,380 | |||||||||||||
Short-term
borrowings | i — | i 2,403 | i — | — | i 2,403 | ||||||||||||||
Accrued
expenses and other liabilities | i 20,773 | i 2,038 | i — | — | i 22,811 | ||||||||||||||
Long-term
debt | i — | i 34,296 | i 902 | — | i 35,198 | ||||||||||||||
Total
liabilities (5) | $ | i 95,048 | $ | i 410,864 | $ | i 5,434 | $ | ( i 309,934 | ) | $ | i 201,412 |
(1) | Amounts
represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties. |
(2) | Includes $ i 25.2 billion
of GSE obligations. |
(3) | Includes securities with a fair value of $ i 16.0 billion that were segregated in compliance with
securities regulations or deposited with clearing organizations. This amount is included in the parenthetical disclosure on the Consolidated Balance Sheet. |
(4) | Includes MSRs of $ i 1.7 billion which
are classified as Level 3 assets. |
(5) | Total recurring Level 3 assets were i 0.47 percent of total consolidated
assets, and total recurring Level 3 liabilities were i 0.26 percent of total consolidated liabilities. |
Bank
of America 86 |
Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting
Adjustments (1) | Assets/Liabilities at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Time
deposits placed and other short-term investments | $ | i 1,214 | $ | i — | $ | i — | $ | — | $ | i 1,214 | |||||||||
Federal
funds sold and securities borrowed or purchased under agreements to resell | i — | i 56,399 | i — | — | i 56,399 | ||||||||||||||
Trading
account assets: | |||||||||||||||||||
U.S.
Treasury and agency securities (2) | i 53,131 | i 1,593 | i — | — | i 54,724 | ||||||||||||||
Corporate
securities, trading loans and other | i — | i 24,630 | i 1,558 | — | i 26,188 | ||||||||||||||
Equity
securities | i 53,840 | i 23,163 | i 276 | — | i 77,279 | ||||||||||||||
Non-U.S.
sovereign debt | i 5,818 | i 19,210 | i 465 | — | i 25,493 | ||||||||||||||
Mortgage
trading loans, MBS and ABS: | |||||||||||||||||||
U.S. government-sponsored agency guaranteed (2) | i — | i 19,586 | i — | — | i 19,586 | ||||||||||||||
Mortgage
trading loans, ABS and other MBS | i — | i 9,443 | i 1,635 | — | i 11,078 | ||||||||||||||
Total
trading account assets (3) | i 112,789 | i 97,625 | i 3,934 | — | i 214,348 | ||||||||||||||
Derivative
assets | i 9,967 | i 315,413 | i 3,466 | ( i 285,121 | ) | i 43,725 | |||||||||||||
AFS
debt securities: | |||||||||||||||||||
U.S.
Treasury and agency securities | i 53,663 | i 1,260 | i — | — | i 54,923 | ||||||||||||||
Mortgage-backed
securities: | |||||||||||||||||||
Agency | i — | i 121,826 | i — | — | i 121,826 | ||||||||||||||
Agency-collateralized
mortgage obligations | i — | i 5,530 | i — | — | i 5,530 | ||||||||||||||
Non-agency
residential | i — | i 1,320 | i 597 | — | i 1,917 | ||||||||||||||
Commercial | i — | i 14,078 | i — | — | i 14,078 | ||||||||||||||
Non-U.S.
securities | i — | i 9,304 | i 2 | — | i 9,306 | ||||||||||||||
Other
taxable securities | i — | i 4,403 | i 7 | — | i 4,410 | ||||||||||||||
Tax-exempt
securities | i — | i 17,376 | i — | — | i 17,376 | ||||||||||||||
Total
AFS debt securities | i 53,663 | i 175,097 | i 606 | — | i 229,366 | ||||||||||||||
Other
debt securities carried at fair value: | |||||||||||||||||||
U.S. Treasury and agency securities | i 1,282 | i — | i — | — | i 1,282 | ||||||||||||||
Non-agency
residential MBS | i — | i 1,434 | i 172 | — | i 1,606 | ||||||||||||||
Non-U.S.
securities | i 490 | i 5,354 | i — | — | i 5,844 | ||||||||||||||
Other
taxable securities | i — | i 3 | i — | — | i 3 | ||||||||||||||
Total
other debt securities carried at fair value | i 1,772 | i 6,791 | i 172 | — | i 8,735 | ||||||||||||||
Loans
and leases | i — | i 4,011 | i 338 | — | i 4,349 | ||||||||||||||
Loans
held-for-sale | i — | i 2,400 | i 542 | — | i 2,942 | ||||||||||||||
Other
assets (4) | i 15,032 | i 1,775 | i 2,932 | — | i 19,739 | ||||||||||||||
Total
assets (5) | $ | i 194,437 | $ | i 659,511 | $ | i 11,990 | $ | ( i 285,121 | ) | $ | i 580,817 | ||||||||
Liabilities | |||||||||||||||||||
Interest-bearing
deposits in U.S. offices | $ | i — | $ | i 492 | $ | i — | $ | — | $ | i 492 | |||||||||
Federal
funds purchased and securities loaned or sold under agreements to repurchase | i — | i 28,875 | i — | — | i 28,875 | ||||||||||||||
Trading
account liabilities: | |||||||||||||||||||
U.S.
Treasury and agency securities | i 7,894 | i 761 | i — | — | i 8,655 | ||||||||||||||
Equity
securities | i 33,739 | i 4,070 | i — | — | i 37,809 | ||||||||||||||
Non-U.S.
sovereign debt | i 7,452 | i 9,182 | i — | — | i 16,634 | ||||||||||||||
Corporate
securities and other | i — | i 5,104 | i 18 | — | i 5,122 | ||||||||||||||
Total
trading account liabilities | i 49,085 | i 19,117 | i 18 | — | i 68,220 | ||||||||||||||
Derivative
liabilities | i 9,931 | i 303,441 | i 4,401 | ( i 279,882 | ) | i 37,891 | |||||||||||||
Short-term
borrowings | i — | i 1,648 | i — | — | i 1,648 | ||||||||||||||
Accrued
expenses and other liabilities | i 18,096 | i 1,979 | i — | — | i 20,075 | ||||||||||||||
Long-term
debt | i — | i 26,872 | i 817 | — | i 27,689 | ||||||||||||||
Total
liabilities (5) | $ | i 77,112 | $ | i 382,424 | $ | i 5,236 | $ | ( i 279,882 | ) | $ | i 184,890 |
(1) | Amounts
represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties. |
(2) | Includes $ i 20.2 billion
of GSE obligations. |
(3) | Includes securities with a fair value of $ i 16.6 billion that were segregated in compliance with
securities regulations or deposited with clearing organizations. This amount is included in the parenthetical disclosure on the Consolidated Balance Sheet. |
(4) | Includes MSRs of $ i 2.0 billion which
are classified as Level 3 assets. |
(5) | Total recurring Level 3 assets were i 0.51 percent of total consolidated assets,
and total recurring Level 3 liabilities were i 0.25 percent of total consolidated liabilities. |
87 Bank
of America |
Level 3 –
Fair Value Measurements (1) | |||||||||||||||||||||||||||||||||
Balance April
1 | Total Realized/Unrealized Gains (Losses) in Net Income (2) | Gains (Losses) in OCI (3) | Gross | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance June 30 | Change in Unrealized
Gains (Losses) in Net Income Related to Financial Instruments Still Held (2) | ||||||||||||||||||||||||||
(Dollars in millions) | Purchases | Sales | Issuances | Settlements | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||
Trading
account assets: | |||||||||||||||||||||||||||||||||
Corporate
securities, trading loans and other | $ | i 1,428 | $ | i 55 | $ | i — | $ | i 140 | $ | ( i 79 | ) | $ | i — | $ | ( i 146 | ) | $ | i 107 | $ | ( i 112 | ) | $ | i 1,393 | $ | i 26 | ||||||||
Equity
securities | i 288 | i 20 | i — | i 3 | ( i 5 | ) | i — | i — | i 1 | ( i 11 | ) | i 296 | i 20 | ||||||||||||||||||||
Non-U.S.
sovereign debt | i 472 | i 19 | i 5 | i 1 | i — | i — | ( i 11 | ) | i — | ( i 5 | ) | i 481 | i 19 | ||||||||||||||||||||
Mortgage
trading loans, ABS and other MBS | i 1,510 | i 50 | ( i 1 | ) | i 167 | ( i 324 | ) | i — | ( i 115 | ) | i 178 | ( i 76 | ) | i 1,389 | i 4 | ||||||||||||||||||
Total
trading account assets | i 3,698 | i 144 | i 4 | i 311 | ( i 408 | ) | i — | ( i 272 | ) | i 286 | ( i 204 | ) | i 3,559 | i 69 | |||||||||||||||||||
Net
derivative assets (4) | ( i 1,018 | ) | ( i 91 | ) | i — | i 56 | ( i 161 | ) | i — | ( i 33 | ) | i 17 | i 116 | ( i 1,114 | ) | ( i 94 | ) | ||||||||||||||||
AFS
debt securities: | |||||||||||||||||||||||||||||||||
Non-agency
residential MBS | i 581 | i — | ( i 3 | ) | i — | i — | i — | ( i 14 | ) | i 47 | ( i 43 | ) | i 568 | i — | |||||||||||||||||||
Non-U.S.
securities | i 2 | i — | i — | i — | i — | i — | i — | i — | i — | i 2 | i — | ||||||||||||||||||||||
Other
taxable securities | i 3 | i — | i — | i — | i — | i — | i — | i — | i — | i 3 | i — | ||||||||||||||||||||||
Total
AFS debt securities | i 586 | i — | ( i 3 | ) | i — | i — | i — | ( i 14 | ) | i 47 | ( i 43 | ) | i 573 | i — | |||||||||||||||||||
Other
debt securities carried at fair value – Non-agency residential MBS | i 224 | i 2 | i — | i — | i — | i — | ( i 7 | ) | i 69 | ( i 15 | ) | i 273 | i 2 | ||||||||||||||||||||
Loans
and leases (5) | i 317 | i — | i — | i — | i — | i 53 | ( i 15 | ) | i — | i — | i 355 | i — | |||||||||||||||||||||
Loans
held-for-sale (5,6) | i 558 | i 26 | i 2 | i — | ( i 50 | ) | i — | ( i 50 | ) | i — | i — | i 486 | i 16 | ||||||||||||||||||||
Other
assets (6, 7) | i 2,749 | ( i 80 | ) | i 8 | i — | ( i 10 | ) | i 67 | ( i 183 | ) | i — | i — | i 2,551 | ( i 128 | ) | ||||||||||||||||||
Trading
account liabilities – Equity securities | i — | ( i 2 | ) | i — | i — | i — | i — | i — | i — | i — | ( i 2 | ) | ( i 2 | ) | |||||||||||||||||||
Trading
account liabilities – Corporate securities and other | ( i 21 | ) | i 7 | i — | i 1 | i — | i — | i — | i — | i — | ( i 13 | ) | i — | ||||||||||||||||||||
Long-term
debt (5) | ( i 890 | ) | ( i 41 | ) | i — | i — | i — | ( i 10 | ) | i 38 | i — | i 1 | ( i 902 | ) | ( i 41 | ) | |||||||||||||||||
Three
Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||
Trading
account assets: | |||||||||||||||||||||||||||||||||
Corporate securities, trading loans and other | $ | i 1,716 | $ | ( i 37 | ) | $ | ( i 1 | ) | $ | i 81 | $ | ( i 75 | ) | $ | i — | $ | ( i 74 | ) | $ | i 145 | $ | ( i 117 | ) | $ | i 1,638 | $ | ( i 67 | ) | |||||
Equity
securities | i 212 | i 1 | i — | i 2 | ( i 4 | ) | i — | ( i 4 | ) | i 29 | ( i 8 | ) | i 228 | ( i 3 | ) | ||||||||||||||||||
Non-U.S.
sovereign debt | i 401 | i 13 | ( i 44 | ) | i 7 | i — | i — | i — | i 8 | ( i 17 | ) | i 368 | i 13 | ||||||||||||||||||||
Mortgage
trading loans, ABS and other MBS | i 1,372 | i 42 | i — | i 192 | ( i 256 | ) | i — | ( i 38 | ) | i 256 | ( i 45 | ) | i 1,523 | i 32 | |||||||||||||||||||
Total
trading account assets | i 3,701 | i 19 | ( i 45 | ) | i 282 | ( i 335 | ) | i — | ( i 116 | ) | i 438 | ( i 187 | ) | i 3,757 | ( i 25 | ) | |||||||||||||||||
Net
derivative assets (4) | ( i 1,138 | ) | ( i 239 | ) | i — | i 195 | ( i 591 | ) | i — | i 175 | ( i 4 | ) | i 14 | ( i 1,588 | ) | ( i 251 | ) | ||||||||||||||||
AFS
debt securities: | |||||||||||||||||||||||||||||||||
Non-agency
residential MBS | i — | i 8 | ( i 14 | ) | i — | i — | i — | i — | i 459 | i — | i 453 | i — | |||||||||||||||||||||
Non-U.S.
securities | i 23 | i — | ( i 1 | ) | i — | ( i 10 | ) | i — | ( i 12 | ) | i 3 | i — | i 3 | i — | |||||||||||||||||||
Other
taxable securities | i 43 | i 1 | ( i 2 | ) | i — | i — | i — | ( i 3 | ) | i 60 | i — | i 99 | i — | ||||||||||||||||||||
Tax-exempt
securities | i — | i — | i — | i — | i — | i — | i — | i 1 | i — | i 1 | i — | ||||||||||||||||||||||
Total
AFS debt securities | i 66 | i 9 | ( i 17 | ) | i — | ( i 10 | ) | i — | ( i 15 | ) | i 523 | i — | i 556 | i — | |||||||||||||||||||
Other
debt securities carried at fair value – Non-agency residential MBS | i — | ( i 4 | ) | i — | i — | ( i 7 | ) | i — | i — | i 298 | i — | i 287 | i 5 | ||||||||||||||||||||
Loans
and leases (5) | i 526 | ( i 4 | ) | i — | i — | ( i 5 | ) | i — | ( i 24 | ) | i — | i — | i 493 | ( i 4 | ) | ||||||||||||||||||
Loans
held-for-sale (5) | i 685 | ( i 12 | ) | ( i 27 | ) | i — | i — | i — | ( i 37 | ) | i — | ( i 32 | ) | i 577 | ( i 16 | ) | |||||||||||||||||
Other
assets (6, 7) | i 3,295 | i 76 | i — | i 2 | ( i 8 | ) | i 23 | ( i 169 | ) | i — | ( i 35 | ) | i 3,184 | i 8 | |||||||||||||||||||
Trading
account liabilities – Corporate securities and other | ( i 26 | ) | i 1 | i — | i — | ( i 9 | ) | ( i 1 | ) | i — | i — | i — | ( i 35 | ) | i 1 | ||||||||||||||||||
Accrued
expenses and other liabilities (5) | ( i 8 | ) | i — | i — | i — | i — | i — | i 8 | i — | i — | i — | i — | |||||||||||||||||||||
Long-term
debt (5) | ( i 1,351 | ) | i 63 | i 2 | i 4 | i — | ( i 53 | ) | i 151 | ( i 114 | ) | i 73 | ( i 1,225 | ) | i 66 |
(1) | Assets
(liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3. |
(2) | Includes gains (losses) reported in earnings in the following income statement line items: Trading account assets/liabilities - predominantly trading account income; Net derivative assets - trading account income and other income; Other debt securities carried at fair value - other income; Loans and leases - other income; Loans held-for-sale - other income; Other assets - primarily other income related to MSRs; Long-term debt - primarily trading account income. For MSRs, the amounts reflect the changes in modeled MSR fair value due to observed changes in interest rates, volatility, spreads and the shape of
the forward swap curve, and periodic adjustments to the valuation model to reflect changes in the modeled relationships between inputs and projected cash flows, as well as changes in cash flow assumptions including cost to service. |
(3) | Includes unrealized gains (losses) in OCI on AFS debt securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. Total gains (losses) in OCI include net unrealized gains of $ i 11
million related to financial instruments still held at June 30, 2019. |
(4) | Net derivative assets include derivative assets of $ i 3.4
billion and $ i 4.5 billion and derivative liabilities of $ i 4.5
billion and $ i 6.1 billion at June 30, 2019 and 2018. |
(5) | Amounts
represent instruments that are accounted for under the fair value option. |
(6) | Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales. |
(7) | Settlements primarily represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time. |
Bank
of America 88 |
Level 3 –
Fair Value Measurements (1) | |||||||||||||||||||||||||||||||||
Balance January 1 | Total Realized/Unrealized Gains (Losses) in Net Income (2) | Gains (Losses) in OCI (3) | Gross | Gross Transfers into Level
3 | Gross Transfers out of Level 3 | Balance June 30 | Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2) | ||||||||||||||||||||||||||
(Dollars in millions) | Purchases | Sales | Issuances | Settlements | |||||||||||||||||||||||||||||
Six
Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||
Trading
account assets: | |||||||||||||||||||||||||||||||||
Corporate
securities, trading loans and other | $ | i 1,558 | $ | i 58 | $ | i — | $ | i 194 | $ | ( i 152 | ) | $ | i — | $ | ( i 206 | ) | $ | i 246 | $ | ( i 305 | ) | $ | i 1,393 | $ | i 20 | ||||||||
Equity
securities | i 276 | i 22 | i — | i 21 | ( i 6 | ) | i — | ( i 3 | ) | i 3 | ( i 17 | ) | i 296 | ( i 4 | ) | ||||||||||||||||||
Non-U.S.
sovereign debt | i 465 | i 27 | i 4 | i 1 | i — | i — | ( i 11 | ) | i — | ( i 5 | ) | i 481 | i 27 | ||||||||||||||||||||
Mortgage
trading loans, ABS and other MBS | i 1,635 | i 88 | ( i 2 | ) | i 397 | ( i 661 | ) | i — | ( i 124 | ) | i 267 | ( i 211 | ) | i 1,389 | i 20 | ||||||||||||||||||
Total
trading account assets | i 3,934 | i 195 | i 2 | i 613 | ( i 819 | ) | i — | ( i 344 | ) | i 516 | ( i 538 | ) | i 3,559 | i 63 | |||||||||||||||||||
Net
derivative assets (4) | ( i 935 | ) | ( i 116 | ) | i — | i 167 | ( i 406 | ) | i — | ( i 88 | ) | i 139 | i 125 | ( i 1,114 | ) | ( i 131 | ) | ||||||||||||||||
AFS
debt securities: | |||||||||||||||||||||||||||||||||
Non-agency
residential MBS | i 597 | i — | i 90 | i — | i — | i — | ( i 21 | ) | i 206 | ( i 304 | ) | i 568 | i — | ||||||||||||||||||||
Non-U.S.
securities | i 2 | i — | i — | i — | i — | i — | i — | i — | i — | i 2 | i — | ||||||||||||||||||||||
Other
taxable securities | i 7 | i — | i — | i — | i — | i — | ( i 4 | ) | i — | i — | i 3 | i — | |||||||||||||||||||||
Total
AFS debt securities | i 606 | i — | i 90 | i — | i — | i — | ( i 25 | ) | i 206 | ( i 304 | ) | i 573 | i — | ||||||||||||||||||||
Other
debt securities carried at fair value – Non-agency residential MBS | i 172 | i 49 | i — | i — | i — | i — | ( i 8 | ) | i 107 | ( i 47 | ) | i 273 | i 47 | ||||||||||||||||||||
Loans
and leases (5) | i 338 | i 4 | i — | i — | ( i 15 | ) | i 53 | ( i 25 | ) | i — | i — | i 355 | i 3 | ||||||||||||||||||||
Loans
held-for-sale (5,6) | i 542 | i 38 | i — | i 10 | ( i 71 | ) | i 11 | ( i 103 | ) | i 59 | i — | i 486 | i 20 | ||||||||||||||||||||
Other
assets (6, 7) | i 2,932 | ( i 154 | ) | i 16 | i — | ( i 10 | ) | i 108 | ( i 341 | ) | i — | i — | i 2,551 | ( i 253 | ) | ||||||||||||||||||
Trading
account liabilities – Equity securities | i — | ( i 2 | ) | i — | i — | i — | i — | i — | i — | i — | ( i 2 | ) | ( i 2 | ) | |||||||||||||||||||
Trading
account liabilities – Corporate securities and other | ( i 18 | ) | i 7 | i — | i 1 | ( i 3 | ) | i — | i — | i — | i — | ( i 13 | ) | i — | |||||||||||||||||||
Long-term
debt (5) | ( i 817 | ) | ( i 87 | ) | ( i 1 | ) | i — | i — | ( i 13 | ) | i 76 | ( i 61 | ) | i 1 | ( i 902 | ) | ( i 82 | ) | |||||||||||||||
Six
Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||
Trading
account assets: | |||||||||||||||||||||||||||||||||
Corporate
securities, trading loans and other | $ | i 1,864 | $ | ( i 28 | ) | $ | ( i 1 | ) | $ | i 274 | $ | ( i 211 | ) | $ | i — | $ | ( i 213 | ) | $ | i 248 | $ | ( i 295 | ) | $ | i 1,638 | $ | ( i 76 | ) | |||||
Equity
securities | i 235 | i 9 | i — | i 8 | ( i 11 | ) | i — | ( i 4 | ) | i 30 | ( i 39 | ) | i 228 | i 9 | |||||||||||||||||||
Non-U.S.
sovereign debt | i 556 | i 29 | ( i 42 | ) | i 7 | ( i 50 | ) | i — | ( i 8 | ) | i 8 | ( i 132 | ) | i 368 | i 28 | ||||||||||||||||||
Mortgage
trading loans, ABS and other MBS | i 1,498 | i 141 | i 3 | i 317 | ( i 576 | ) | i — | ( i 107 | ) | i 350 | ( i 103 | ) | i 1,523 | i 81 | |||||||||||||||||||
Total
trading account assets | i 4,153 | i 151 | ( i 40 | ) | i 606 | ( i 848 | ) | i — | ( i 332 | ) | i 636 | ( i 569 | ) | i 3,757 | i 42 | ||||||||||||||||||
Net
derivative assets (4) | ( i 1,714 | ) | i 256 | i — | i 348 | ( i 853 | ) | i — | i 377 | i 67 | ( i 69 | ) | ( i 1,588 | ) | i 325 | ||||||||||||||||||
AFS
debt securities: | |||||||||||||||||||||||||||||||||
Non-agency
residential MBS | i — | i 8 | ( i 14 | ) | i — | i — | i — | i — | i 459 | i — | i 453 | i — | |||||||||||||||||||||
Non-U.S.
securities | i 25 | i — | ( i 1 | ) | i — | ( i 10 | ) | i — | ( i 14 | ) | i 3 | i — | i 3 | i — | |||||||||||||||||||
Other
taxable securities | i 509 | i 2 | ( i 2 | ) | i — | i — | i — | ( i 10 | ) | i 60 | ( i 460 | ) | i 99 | i — | |||||||||||||||||||
Tax-exempt
securities | i 469 | i — | i — | i — | i — | i — | i — | i 1 | ( i 469 | ) | i 1 | i — | |||||||||||||||||||||
Total
AFS debt securities (8) | i 1,003 | i 10 | ( i 17 | ) | i — | ( i 10 | ) | i — | ( i 24 | ) | i 523 | ( i 929 | ) | i 556 | i — | ||||||||||||||||||
Other
debt securities carried at fair value – Non-agency residential MBS | i — | ( i 4 | ) | i — | i — | ( i 7 | ) | i — | i — | i 298 | i — | i 287 | i 5 | ||||||||||||||||||||
Loans
and leases (5) | i 571 | ( i 20 | ) | i — | i — | ( i 9 | ) | i — | ( i 49 | ) | i — | i — | i 493 | ( i 19 | ) | ||||||||||||||||||
Loans
held-for-sale (5) | i 690 | i 12 | ( i 27 | ) | i 12 | i — | i — | ( i 78 | ) | i — | ( i 32 | ) | i 577 | i 5 | |||||||||||||||||||
Other
assets (6,7,8) | i 2,425 | i 268 | i — | i 2 | ( i 46 | ) | i 52 | ( i 411 | ) | i 929 | ( i 35 | ) | i 3,184 | i 145 | |||||||||||||||||||
Trading
account liabilities – Corporate securities and other | ( i 24 | ) | i 2 | i — | i — | ( i 11 | ) | ( i 2 | ) | i — | i — | i — | ( i 35 | ) | i 1 | ||||||||||||||||||
Accrued
expenses and other liabilities (5) | ( i 8 | ) | i — | i — | i — | i — | i — | i 8 | i — | i — | i — | i — | |||||||||||||||||||||
Long-term
debt (5) | ( i 1,863 | ) | i 86 | i 3 | i 9 | i — | ( i 120 | ) | i 323 | ( i 147 | ) | i 484 | ( i 1,225 | ) | i 51 |
(1) | Assets
(liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3. |
(2) | Includes gains (losses) reported in earnings in the following income statement line items: Trading account assets/liabilities - predominantly trading account income; Net derivative assets - trading account income and other income; Other debt securities carried at fair value - other income; Loans and leases - other income; Loans held-for-sale - other income; Other assets - primarily other income related to MSRs; Long-term debt - primarily trading account income. For MSRs, the amounts reflect the changes in modeled MSR fair value due to observed changes in interest rates, volatility, spreads and the shape of
the forward swap curve, and periodic adjustments to the valuation model to reflect changes in the modeled relationships between inputs and projected cash flows, as well as changes in cash flow assumptions including cost to service. |
(3) | Includes unrealized gains (losses) in OCI on AFS debt securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. Total gains (losses) in OCI include net unrealized gains of $ i 112
million related to financial instruments still held at June 30, 2019. |
(4) | Net derivative assets include derivative assets of $ i 3.4
billion and $ i 4.5 billion and derivative liabilities of $ i 4.5
billion and $ i 6.1 billion at June 30, 2019 and 2018. |
(5) | Amounts
represent instruments that are accounted for under the fair value option. |
(6) | Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales. |
(7) | Settlements primarily represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time. |
(8) | Transfers
out of AFS debt securities and into other assets relate to the reclassification of certain securities. |
89 Bank of America |
Quantitative
Information about Level 3 Fair Value Measurements at June 30, 2019 | |||||||
(Dollars in millions) | Inputs | ||||||
Financial Instrument | Fair
Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average (1) | ||
Loans and Securities (2) | |||||||
Instruments
backed by residential real estate assets | $ | i 1,633 | Discounted
cash flow, Market comparables | Yield | 0% to 25% | 6% | |
Trading account assets – Mortgage trading loans, ABS and other MBS | i 431 | Prepayment
speed | 1% to 27% CPR | 17% CPR | |||
Loans and leases | i 355 | Default
rate | 0% to 3% CDR | 1% CDR | |||
Loans held-for-sale | i 1 | Loss
severity | 0% to 48% | 15% | |||
AFS debt securities, primarily non-agency residential | i 573 | Price | $0
to $151 | $ i 99 | |||
Other
debt securities carried at fair value - Non-agency residential | i 273 | ||||||
Instruments
backed by commercial real estate assets | $ | i 264 | Discounted
cash flow | Yield | 0% to 25% | 6% | |
Trading account assets – Corporate securities, trading loans and other | i 198 | Price | $0
to $100 | $ i 66 | |||
Trading
account assets – Mortgage trading loans, ABS and other MBS | i 66 | ||||||
Commercial
loans, debt securities and other | $ | i 3,053 | Discounted cash flow, Market comparables | Yield | 0%
to 13% | 6% | |
Trading account assets – Corporate securities, trading loans and other | i 1,195 | Prepayment
speed | 10% to 20% | 14% | |||
Trading account assets – Non-U.S. sovereign debt | i 481 | Default
rate | 3% to 4% | 4% | |||
Trading account assets – Mortgage trading loans, ABS and other MBS | i 892 | Loss
severity | 35% to 40% | 38% | |||
Loans held-for-sale | i 485 | Price | $0
to $149 | $ i 67 | |||
Other
assets, primarily auction rate securities | $ | i 851 | Discounted
cash flow, Market comparables | Price | $10 to $100 | $ i 95 | |
MSRs | $ | i 1,700 | Discounted
cash flow | Weighted-average life, fixed rate (5) | 0 to 14 years | 5 years | |
Weighted-average life, variable rate (5) | 0 to 9 years | 3 years | |||||
Option-adjusted
spread, fixed rate | 7% to 14% | 9% | |||||
Option-adjusted spread, variable rate | 9% to 15% | 12% | |||||
Structured liabilities | |||||||
Long-term
debt | $ | ( i 902 | ) | Discounted cash flow, Market comparables, Industry standard derivative pricing (3) | Equity
correlation | 11% to 100% | 63% |
Long-dated equity volatilities | 6% to 52% | 27% | |||||
Price | $0 to $131 | $ i 80 | |||||
Net
derivative assets | |||||||
Credit derivatives | $ | ( i 14 | ) | Discounted
cash flow, Stochastic recovery correlation model | Yield | 5% | n/a |
Upfront points | 0 to 100 points | 68 points | |||||
Prepayment speed | 15% to 100% CPR | 38%
CPR | |||||
Default rate | 1% to 4% CDR | 2% CDR | |||||
Loss severity | 35% | n/a | |||||
Price | $0
to $138 | $ i 93 | |||||
Equity
derivatives | $ | ( i 1,010 | ) | Industry standard
derivative pricing (3) | Equity correlation | 11% to 100% | 63% |
Long-dated equity volatilities | 6% to 52% | 27% | |||||
Commodity derivatives | $ | i 1 | Discounted
cash flow, Industry standard derivative pricing (3) | Natural gas forward price | $1/MMBtu to $8/MMBtu | $3/MMBtu | |
Correlation | 30% to 66% | 66% | |||||
Volatilities | 14%
to 48% | 32% | |||||
Interest rate derivatives | $ | ( i 91 | ) | Industry
standard derivative pricing (4) | Correlation (IR/IR) | 15% to 70% | 51% |
Correlation (FX/IR) | 0% to 46% | 2% | |||||
Long-dated inflation rates | -21%
to 35% | 5% | |||||
Long-dated inflation volatilities | 0% to 1% | 1% | |||||
Total net derivative assets | $ | ( i 1,114 | ) |
(1) | For
loans and securities, structured liabilities and net derivative assets, the weighted average is calculated based upon the absolute fair value of the instruments. |
(2) | The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page 86: Trading account assets – Corporate securities, trading loans and other of $ i 1.4
billion, Trading account assets – Non-U.S. sovereign debt of $ i 481 million, Trading account assets – Mortgage trading loans, ABS and other MBS of $ i 1.4
billion, AFS debt securities of $ i 573 million, Other debt securities carried at fair value - Non-agency residential of $ i 273
million, Other assets, including MSRs, of $ i 2.6 billion, Loans and leases of $ i 355
million and LHFS of $ i 486 million. |
(3) | Includes
models such as Monte Carlo simulation and Black-Scholes. |
(4) | Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates. |
(5) | The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions. |
Bank of America 90 |
Quantitative
Information about Level 3 Fair Value Measurements at December 31, 2018 | |||||||
(Dollars in millions) | Inputs | ||||||
Financial Instrument | Fair Value | Valuation
Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average (1) | ||
Loans and Securities (2) | |||||||
Instruments backed by residential real estate assets | $ | i 1,536 | Discounted
cash flow, Market comparables | Yield | 0% to 25% | 8% | |
Trading account assets – Mortgage trading loans, ABS and other MBS | i 419 | Prepayment
speed | 0% to 21% CPR | 12% CPR | |||
Loans and leases | i 338 | Default
rate | 0% to 3% CDR | 1% CDR | |||
Loans held-for-sale | i 1 | Loss
severity | 0% to 51% | 17% | |||
AFS debt securities, primarily non-agency residential | i 606 | Price | $0
to $128 | $ i 72 | |||
Other
debt securities carried at fair value - Non-agency residential | i 172 | ||||||
Instruments
backed by commercial real estate assets | $ | i 291 | Discounted
cash flow | Yield | 0% to 25% | 7% | |
Trading account assets – Corporate securities, trading loans and other | i 200 | Price | $0
to $100 | $ i 79 | |||
Trading
account assets – Mortgage trading loans, ABS and other MBS | i 91 | ||||||
Commercial
loans, debt securities and other | $ | i 3,489 | Discounted cash flow, Market comparables | Yield | 1%
to 18% | 13% | |
Trading account assets – Corporate securities, trading loans and other | i 1,358 | Prepayment
speed | 10% to 20% | 15% | |||
Trading account assets – Non-U.S. sovereign debt | i 465 | Default
rate | 3% to 4% | 4% | |||
Trading account assets – Mortgage trading loans, ABS and other MBS | i 1,125 | Loss
severity | 35% to 40% | 38% | |||
Loans held-for-sale | i 541 | Price | $0
to $141 | $ i 68 | |||
Other
assets, primarily auction rate securities | $ | i 890 | Discounted
cash flow, Market comparables | Price | $10 to $100 | $ i 95 | |
MSRs | $ | i 2,042 | Discounted
cash flow | Weighted-average life, fixed rate (5) | 0 to 14 years | 5 years | |
Weighted-average life, variable rate (5) | 0 to 10 years | 3 years | |||||
Option-adjusted
spread, fixed rate | 7% to 14% | 9% | |||||
Option-adjusted spread, variable rate | 9% to 15% | 12% | |||||
Structured liabilities | |||||||
Long-term
debt | $ | ( i 817 | ) | Discounted cash flow, Market comparables, Industry standard derivative pricing (3) | Equity
correlation | 11% to 100% | 67% |
Long-dated equity volatilities | 4% to 84% | 32% | |||||
Yield | 7% to 18% | 16% | |||||
Price | $0
to $100 | $ i 72 | |||||
Net derivative assets | |||||||
Credit
derivatives | $ | ( i 565 | ) | Discounted
cash flow, Stochastic recovery correlation model | Yield | 0% to 5% | 4% |
Upfront points | 0 points to 100 points | 70 points | |||||
Credit correlation | 70% | n/a | |||||
Prepayment
speed | 15% to 20% CPR | 15% CPR | |||||
Default rate | 1% to 4% CDR | 2% CDR | |||||
Loss severity | 35% | n/a | |||||
Price | $0
to $138 | $ i 93 | |||||
Equity
derivatives | $ | ( i 348 | ) | Industry standard
derivative pricing (3) | Equity correlation | 11% to 100% | 67% |
Long-dated equity volatilities | 4% to 84% | 32% | |||||
Commodity derivatives | $ | i 10 | Discounted
cash flow, Industry standard derivative pricing (3) | Natural gas forward price | $1/MMBtu to $12/MMBtu | $3/MMBtu | |
Correlation | 38% to 87% | 71% | |||||
Volatilities | 15%
to 132% | 38% | |||||
Interest rate derivatives | $ | ( i 32 | ) | Industry
standard derivative pricing (4) | Correlation (IR/IR) | 15% to 70% | 61% |
Correlation (FX/IR) | 0% to 46% | 1% | |||||
Long-dated inflation rates | -20%
to 38% | 2% | |||||
Long-dated inflation volatilities | 0% to 1% | 1% | |||||
Total net derivative assets | $ | ( i 935 | ) |
(1) | For
loans and securities, structured liabilities and net derivative assets, the weighted average is calculated based upon the absolute fair value of the instruments. |
(2) | The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page 87: Trading account assets – Corporate securities, trading loans and other of $ i 1.6
billion, Trading account assets – Non-U.S. sovereign debt of $ i 465 million, Trading account assets – Mortgage trading loans, ABS and other MBS of $ i 1.6
billion, AFS debt securities of $ i 606 million, Other debt securities carried at fair value - Non-agency residential of $ i 172
million, Other assets, including MSRs, of i 2.9 billion, Loans and leases of $ i 338
million and LHFS of $ i 542 million. |
(3) | Includes
models such as Monte Carlo simulation and Black-Scholes. |
(4) | Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates. |
(5) | The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions. |
91 Bank
of America |
Assets
Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||||||||||
(Dollars in millions) | Level
2 | Level 3 | Gains (Losses) | ||||||||||||
Assets | |||||||||||||||
Loans
held-for-sale | $ | i 15 | $ | i 28 | $ | i — | $ | ( i 1 | ) | ||||||
Loans
and leases (1) | i — | i 204 | ( i 40 | ) | ( i 73 | ) | |||||||||
Foreclosed
properties (2, 3) | i — | i 21 | ( i 9 | ) | ( i 12 | ) | |||||||||
Other
assets | i 142 | i 6 | ( i 15 | ) | ( i 29 | ) | |||||||||
Accrued
expenses and other liabilities | ( i 2 | ) | ( i 12 | ) | ( i 14 | ) | ( i 14 | ) | |||||||
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||
Assets | |||||||||||||||
Loans
held-for-sale | $ | i 179 | $ | i 1 | $ | i — | $ | ( i 2 | ) | ||||||
Loans
and leases (1) | i — | i 420 | ( i 80 | ) | ( i 156 | ) | |||||||||
Foreclosed
properties (2, 3) | i 15 | i 77 | ( i 25 | ) | ( i 32 | ) | |||||||||
Other
assets | i 243 | i 5 | ( i 31 | ) | ( i 35 | ) |
(1) | Includes
$ i 18 million and $ i 31
million of losses on loans that were written down to a collateral value of zero during the three and six months ended June 30, 2019 compared to losses of $ i 31 million and $ i 64
million for the same periods in 2018. |
(2) | Amounts are included in other assets on the Consolidated Balance Sheet and represent the carrying value of foreclosed properties that were written down subsequent to their initial classification as foreclosed properties. Losses on foreclosed properties include losses recorded during the first 90 days after transfer of a loan to foreclosed properties. |
(3) | Excludes $ i 294
million and $ i 573 million of properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans) at June 30, 2019 and 2018. |
Quantitative
Information about Nonrecurring Level 3 Fair Value Measurements | ||||||||||||
Inputs | ||||||||||||
Financial
Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average (1) | |||||||
(Dollars
in millions) | ||||||||||||
Loans and leases backed by residential real estate assets | $ | i 204 | Market
comparables | OREO discount | 13% to 59% | i 24 | % | |||||
Costs
to sell | 8% to 26% | i 9 | % | |||||||||
Loans and leases backed by residential real estate assets | $ | i 474 | Market
comparables | OREO discount | 13% to 59% | i 25 | % | |||||
Costs
to sell | 8% to 26% | i 9 | % |
Bank of America 92 |
Fair
Value Option Elections | |||||||||||||||||||||||
(Dollars in millions) | Fair Value Carrying Amount | Contractual Principal Outstanding | Fair Value Carrying Amount Less Unpaid Principal | Fair Value Carrying
Amount | Contractual Principal Outstanding | Fair Value Carrying Amount Less Unpaid Principal | |||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | i 54,257 | $ | i 54,238 | $ | i 19 | $ | i 56,399 | $ | i 56,376 | $ | i 23 | |||||||||||
Loans
reported as trading account assets (1) | i 6,122 | i 13,445 | ( i 7,323 | ) | i 6,195 | i 13,088 | ( i 6,893 | ) | |||||||||||||||
Trading
inventory – other | i 18,145 | n/a | n/a | i 13,778 | n/a | n/a | |||||||||||||||||
Consumer
and commercial loans | i 7,863 | i 7,895 | ( i 32 | ) | i 4,349 | i 4,399 | ( i 50 | ) | |||||||||||||||
Loans
held-for-sale (1) | i 2,388 | i 3,607 | ( i 1,219 | ) | i 2,942 | i 4,749 | ( i 1,807 | ) | |||||||||||||||
Other
assets | i 4 | n/a | n/a | i 3 | n/a | n/a | |||||||||||||||||
Long-term
deposits | i 604 | i 571 | i 33 | i 492 | i 454 | i 38 | |||||||||||||||||
Federal
funds purchased and securities loaned or sold under agreements to repurchase | i 19,866 | i 19,868 | ( i 2 | ) | i 28,875 | i 28,881 | ( i 6 | ) | |||||||||||||||
Short-term
borrowings | i 2,403 | i 2,403 | i — | i 1,648 | i 1,648 | i — | |||||||||||||||||
Unfunded
loan commitments | i 128 | n/a | n/a | i 169 | n/a | n/a | |||||||||||||||||
Long-term
debt (2) | i 35,198 | i 35,054 | i 144 | i 27,689 | i 29,198 | ( i 1,509 | ) |
(1) | A
significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding. |
(2) | Includes structured liabilities with a fair value of $ i 34.8
billion and $ i 27.3 billion, and contractual principal outstanding of $ i 34.7
billion and $ i 28.8 billion at June 30, 2019 and December 31, 2018. |
Gains
(Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option | |||||||||||||||||||||||
Three
Months Ended June 30 | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(Dollars in millions) | Trading Account Income | Other Income | Total | Trading
Account Income | Other Income | Total | |||||||||||||||||
Loans reported as trading account assets (1) | $ | i 72 | $ | i — | $ | i 72 | $ | ( i 32 | ) | $ | i — | $ | ( i 32 | ) | |||||||||
Trading
inventory – other (2) | i 1,823 | i — | i 1,823 | i 1,361 | i — | i 1,361 | |||||||||||||||||
Consumer
and commercial loans (1) | i 16 | ( i 1 | ) | i 15 | i 19 | ( i 11 | ) | i 8 | |||||||||||||||
Long-term
debt (3, 4) | ( i 205 | ) | ( i 22 | ) | ( i 227 | ) | i 535 | ( i 15 | ) | i 520 | |||||||||||||
Other
(5) | ( i 2 | ) | i 15 | i 13 | i 6 | i 14 | i 20 | ||||||||||||||||
Total | $ | i 1,704 | $ | ( i 8 | ) | $ | i 1,696 | $ | i 1,889 | $ | ( i 12 | ) | $ | i 1,877 | |||||||||
Six
Months Ended June 30 | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Loans reported as trading account assets (1) | $ | i 163 | $ | i — | $ | i 163 | $ | i 71 | $ | i — | $ | i 71 | |||||||||||
Trading
inventory – other (2) | i 4,367 | i — | i 4,367 | i 1,956 | i — | i 1,956 | |||||||||||||||||
Consumer
and commercial loans (1) | i 17 | i 17 | i 34 | i 125 | ( i 32 | ) | i 93 | ||||||||||||||||
Long-term
debt (3, 4) | ( i 1,285 | ) | ( i 45 | ) | ( i 1,330 | ) | i 1,354 | ( i 56 | ) | i 1,298 | |||||||||||||
Other
(5) | i 9 | i 103 | i 112 | i 14 | i 25 | i 39 | |||||||||||||||||
Total | $ | i 3,271 | $ | i 75 | $ | i 3,346 | $ | i 3,520 | $ | ( i 63 | ) | $ | i 3,457 |
(1) | Gains
(losses) related to borrower-specific credit risk were not significant. |
(2) | The gains in trading account income are primarily offset by losses on trading liabilities that hedge these assets. |
(3) | The net gains (losses) in trading account income relate to the embedded derivatives in structured liabilities and are typically offset by gains (losses) on derivatives and securities that hedge these liabilities. |
(4) | For
the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 14 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2018 Annual Report on Form 10-K. |
(5) | Includes gains (losses) on federal funds sold and securities borrowed or purchased under agreements to resell, LHFS, long-term deposits, federal
funds purchased and securities loaned or sold under agreements to repurchase, short-term borrowings and unfunded loan commitments. |
93 Bank of America |
Fair
Value of Financial Instruments | |||||||||||||||
Fair Value | |||||||||||||||
Carrying Value | Level 2 | Level
3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Financial assets | |||||||||||||||
Loans | $ | i 930,320 | $ | i 63,773 | $ | i 898,649 | $ | i 962,422 | |||||||
Loans
held-for-sale | i 5,416 | i 4,562 | i 854 | i 5,416 | |||||||||||
Financial
liabilities | |||||||||||||||
Deposits (1) | i 1,375,093 | i 1,375,140 | i — | i 1,375,140 | |||||||||||
Long-term
debt | i 238,011 | i 242,358 | i 902 | i 243,260 | |||||||||||
Commercial
unfunded lending commitments (2) | i 938 | i 132 | i 4,796 | i 4,928 | |||||||||||
Financial assets | |||||||||||||||
Loans | $ | i 911,520 | $ | i 58,228 | $ | i 859,160 | $ | i 917,388 | |||||||
Loans
held-for-sale | i 10,367 | i 9,592 | i 775 | i 10,367 | |||||||||||
Financial
liabilities | |||||||||||||||
Deposits (1) | i 1,381,476 | i 1,381,239 | i — | i 1,381,239 | |||||||||||
Long-term
debt | i 229,392 | i 230,019 | i 817 | i 230,836 | |||||||||||
Commercial
unfunded lending commitments (2) | i 966 | i 169 | i 5,558 | i 5,727 |
(1) | Includes
demand deposits of $ i 524.4 billion and $ i 531.9 billion with no stated maturities at June
30, 2019 and December 31, 2018. |
(2) | The carrying value of commercial unfunded lending commitments is included in accrued expenses and other liabilities on the Consolidated Balance Sheet. The Corporation does not estimate the fair value of consumer unfunded lending commitments because, in many instances, the Corporation can reduce or cancel these commitments by providing notice to the borrower. For more information on commitments, see Note
11 – Commitments and Contingencies. |
Results
of Business Segments and All Other | ||||||||||||||||||||||||
At
and for the three months ended June 30 | Total Corporation (1) | Consumer Banking | Global Wealth & Investment Management | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Net
interest income | $ | i 12,338 | $ | i 11,982 | $ | i 7,116 | $ | i 6,593 | $ | i 1,624 | $ | i 1,538 | ||||||||||||
Noninterest
income | i 10,895 | i 10,721 | i 2,601 | i 2,640 | i 3,276 | i 3,204 | ||||||||||||||||||
Total
revenue, net of interest expense | i 23,233 | i 22,703 | i 9,717 | i 9,233 | i 4,900 | i 4,742 | ||||||||||||||||||
Provision
for credit losses | i 857 | i 827 | i 947 | i 944 | i 21 | i 12 | ||||||||||||||||||
Noninterest
expense | i 13,268 | i 13,224 | i 4,407 | i 4,367 | i 3,458 | i 3,427 | ||||||||||||||||||
Income
before income taxes | i 9,108 | i 8,652 | i 4,363 | i 3,922 | i 1,421 | i 1,303 | ||||||||||||||||||
Income
tax expense | i 1,760 | i 1,868 | i 1,069 | i 1,000 | i 348 | i 332 | ||||||||||||||||||
Net
income | $ | i 7,348 | $ | i 6,784 | $ | i 3,294 | $ | i 2,922 | $ | i 1,073 | $ | i 971 | ||||||||||||
Period-end
total assets | $ | i 2,395,892 | $ | i 2,291,670 | $ | i 786,963 | $ | i 768,188 | $ | i 287,878 | $ | i 270,915 | ||||||||||||
Global
Banking | Global Markets | All Other | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Net
interest income | $ | i 2,709 | $ | i 2,739 | $ | i 811 | $ | i 968 | $ | i 78 | $ | i 144 | ||||||||||||
Noninterest
income | i 2,266 | i 2,275 | i 3,334 | i 3,283 | ( i 582 | ) | ( i 681 | ) | ||||||||||||||||
Total
revenue, net of interest expense | i 4,975 | i 5,014 | i 4,145 | i 4,251 | ( i 504 | ) | ( i 537 | ) | ||||||||||||||||
Provision
for credit losses | i 125 | ( i 23 | ) | i 5 | ( i 1 | ) | ( i 241 | ) | ( i 105 | ) | ||||||||||||||
Noninterest
expense | i 2,212 | i 2,185 | i 2,677 | i 2,726 | i 514 | i 519 | ||||||||||||||||||
Income
before income taxes | i 2,638 | i 2,852 | i 1,463 | i 1,526 | ( i 777 | ) | ( i 951 | ) | ||||||||||||||||
Income
tax expense | i 712 | i 741 | i 417 | i 397 | ( i 786 | ) | ( i 602 | ) | ||||||||||||||||
Net
income | $ | i 1,926 | $ | i 2,111 | $ | i 1,046 | $ | i 1,129 | $ | i 9 | $ | ( i 349 | ) | |||||||||||
Period-end
total assets | $ | i 440,352 | $ | i 426,448 | $ | i 674,985 | $ | i 637,110 | $ | i 205,714 | $ | i 189,009 |
(1) | There
were no material intersegment revenues. |
Bank of America 94 |
Results
of Business Segments and All Other | ||||||||||||||||||||||||
At
and for the six months ended June 30 | Total Corporation (1) | Consumer Banking | Global Wealth & Investment Management | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Net
interest income | $ | i 24,866 | $ | i 23,901 | $ | i 14,222 | $ | i 13,070 | $ | i 3,308 | $ | i 3,122 | ||||||||||||
Noninterest
income | i 21,524 | i 22,022 | i 5,127 | i 5,144 | i 6,412 | i 6,475 | ||||||||||||||||||
Total
revenue, net of interest expense | i 46,390 | i 45,923 | i 19,349 | i 18,214 | i 9,720 | i 9,597 | ||||||||||||||||||
Provision
for credit losses | i 1,870 | i 1,661 | i 1,921 | i 1,879 | i 26 | i 50 | ||||||||||||||||||
Noninterest
expense | i 26,492 | i 27,066 | i 8,763 | i 8,915 | i 6,886 | i 7,008 | ||||||||||||||||||
Income
before income taxes | i 18,028 | i 17,196 | i 8,665 | i 7,420 | i 2,808 | i 2,539 | ||||||||||||||||||
Income
tax expense | i 3,369 | i 3,494 | i 2,123 | i 1,893 | i 688 | i 647 | ||||||||||||||||||
Net
income | $ | i 14,659 | $ | i 13,702 | $ | i 6,542 | $ | i 5,527 | $ | i 2,120 | $ | i 1,892 | ||||||||||||
Period-end
total assets | $ | i 2,395,892 | $ | i 2,291,670 | $ | i 786,963 | $ | i 768,188 | $ | i 287,878 | $ | i 270,915 | ||||||||||||
Global
Banking | Global Markets | All Other | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Net
interest income | $ | i 5,499 | $ | i 5,418 | $ | i 1,764 | $ | i 1,989 | $ | i 73 | $ | i 302 | ||||||||||||
Noninterest
income | i 4,631 | i 4,591 | i 6,562 | i 7,074 | ( i 1,208 | ) | ( i 1,262 | ) | ||||||||||||||||
Total
revenue, net of interest expense | i 10,130 | i 10,009 | i 8,326 | i 9,063 | ( i 1,135 | ) | ( i 960 | ) | ||||||||||||||||
Provision
for credit losses | i 236 | ( i 7 | ) | ( i 18 | ) | ( i 4 | ) | ( i 295 | ) | ( i 257 | ) | |||||||||||||
Noninterest
expense | i 4,478 | i 4,477 | i 5,432 | i 5,651 | i 933 | i 1,015 | ||||||||||||||||||
Income
before income taxes | i 5,416 | i 5,539 | i 2,912 | i 3,416 | ( i 1,773 | ) | ( i 1,718 | ) | ||||||||||||||||
Income
tax expense | i 1,462 | i 1,440 | i 830 | i 888 | ( i 1,734 | ) | ( i 1,374 | ) | ||||||||||||||||
Net
income | $ | i 3,954 | $ | i 4,099 | $ | i 2,082 | $ | i 2,528 | $ | ( i 39 | ) | $ | ( i 344 | ) | ||||||||||
Period-end
total assets | $ | i 440,352 | $ | i 426,448 | $ | i 674,985 | $ | i 637,110 | $ | i 205,714 | $ | i 189,009 |
(1) | There
were no material intersegment revenues. |
Business
Segment Reconciliations | |||||||||||||||
Three
Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Segments’ total revenue, net of interest expense | $ | i 23,737 | $ | i 23,240 | $ | i 47,525 | $ | i 46,883 | |||||||
Adjustments
(1): | |||||||||||||||
ALM activities | i 34 | ( i 508 | ) | i 47 | ( i 482 | ) | |||||||||
Liquidating
businesses, eliminations and other | ( i 538 | ) | ( i 29 | ) | ( i 1,182 | ) | ( i 478 | ) | |||||||
FTE
basis adjustment | ( i 149 | ) | ( i 154 | ) | ( i 302 | ) | ( i 304 | ) | |||||||
Consolidated
revenue, net of interest expense | $ | i 23,084 | $ | i 22,549 | $ | i 46,088 | $ | i 45,619 | |||||||
Segments’
total net income | i 7,339 | i 7,133 | i 14,698 | i 14,046 | |||||||||||
Adjustments,
net-of-tax (1): | |||||||||||||||
ALM activities | i 27 | ( i 381 | ) | i 46 | ( i 352 | ) | |||||||||
Liquidating
businesses, eliminations and other | ( i 18 | ) | i 32 | ( i 85 | ) | i 8 | |||||||||
Consolidated
net income | $ | i 7,348 | $ | i 6,784 | $ | i 14,659 | $ | i 13,702 | |||||||
June 30 | |||||||||||||||
2019 | 2018 | ||||||||||||||
Segments’
total assets | $ | i 2,190,178 | $ | i 2,102,661 | |||||||||||
Adjustments
(1): | |||||||||||||||
ALM activities, including securities portfolio | i 677,337 | i 630,299 | |||||||||||||
Elimination
of segment asset allocations to match liabilities | ( i 543,995 | ) | ( i 522,183 | ) | |||||||||||
Other | i 72,372 | i 80,893 | |||||||||||||
Consolidated
total assets | $ | i 2,395,892 | $ | i 2,291,670 |
(1) | Adjustments
include consolidated income, expense and asset amounts not specifically allocated to individual business segments. |
95 Bank of America |
Noninterest
Income by Business Segment and All Other | |||||||||||||||||||||||
Total
Corporation | Consumer Banking | Global Wealth & Investment Management | |||||||||||||||||||||
Three Months Ended June 30 | |||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Fees
and commissions: | |||||||||||||||||||||||
Card income | |||||||||||||||||||||||
Interchange
fees | $ | i 968 | $ | i 1,011 | $ | i 804 | $ | i 833 | $ | i 11 | $ | i 27 | |||||||||||
Other
card income | i 478 | i 472 | i 464 | i 459 | i 11 | i 11 | |||||||||||||||||
Total
card income | i 1,446 | i 1,483 | i 1,268 | i 1,292 | i 22 | i 38 | |||||||||||||||||
Service
charges | |||||||||||||||||||||||
Deposit-related fees | i 1,638 | i 1,680 | i 1,045 | i 1,072 | i 15 | i 17 | |||||||||||||||||
Lending-related
fees | i 265 | i 274 | i — | i — | i — | i — | |||||||||||||||||
Total
service charges | i 1,903 | i 1,954 | i 1,045 | i 1,072 | i 15 | i 17 | |||||||||||||||||
Investment
and brokerage services | |||||||||||||||||||||||
Asset management fees | i 2,554 | i 2,513 | i 36 | i 37 | i 2,525 | i 2,475 | |||||||||||||||||
Brokerage
fees | i 916 | i 945 | i 39 | i 43 | i 438 | i 462 | |||||||||||||||||
Total
investment and brokerage services | i 3,470 | i 3,458 | i 75 | i 80 | i 2,963 | i 2,937 | |||||||||||||||||
Investment
banking fees | |||||||||||||||||||||||
Underwriting income | i 792 | i 719 | i — | i — | i 126 | i 72 | |||||||||||||||||
Syndication
fees | i 291 | i 400 | i — | i — | i — | i — | |||||||||||||||||
Financial
advisory services | i 288 | i 303 | i — | i — | i 1 | i — | |||||||||||||||||
Total
investment banking fees | i 1,371 | i 1,422 | i — | i — | i 127 | i 72 | |||||||||||||||||
Total
fees and commissions | i 8,190 | i 8,317 | i 2,388 | i 2,444 | i 3,127 | i 3,064 | |||||||||||||||||
Trading
account income | i 2,345 | i 2,151 | i 2 | i 2 | i 30 | i 28 | |||||||||||||||||
Other
income | i 360 | i 253 | i 211 | i 194 | i 119 | i 112 | |||||||||||||||||
Total
noninterest income | $ | i 10,895 | $ | i 10,721 | $ | i 2,601 | $ | i 2,640 | $ | i 3,276 | $ | i 3,204 | |||||||||||
Global
Banking | Global Markets | All Other (1) | |||||||||||||||||||||
Three Months Ended June 30 | |||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Fees
and commissions: | |||||||||||||||||||||||
Card income | |||||||||||||||||||||||
Interchange
fees | $ | i 132 | $ | i 128 | $ | i 22 | $ | i 23 | $ | ( i 1 | ) | $ | i — | ||||||||||
Other
card income | i 2 | i 2 | i 1 | i — | i — | i — | |||||||||||||||||
Total
card income | i 134 | i 130 | i 23 | i 23 | ( i 1 | ) | i — | ||||||||||||||||
Service
charges | |||||||||||||||||||||||
Deposit-related fees | i 526 | i 539 | i 45 | i 45 | i 7 | i 7 | |||||||||||||||||
Lending-related
fees | i 223 | i 229 | i 42 | i 45 | i — | i — | |||||||||||||||||
Total
service charges | i 749 | i 768 | i 87 | i 90 | i 7 | i 7 | |||||||||||||||||
Investment
and brokerage services | |||||||||||||||||||||||
Asset management fees | i — | i — | i — | i — | ( i 7 | ) | i 1 | ||||||||||||||||
Brokerage
fees | i 7 | i 18 | i 433 | i 430 | ( i 1 | ) | ( i 8 | ) | |||||||||||||||
Total
investment and brokerage services | i 7 | i 18 | i 433 | i 430 | ( i 8 | ) | ( i 7 | ) | |||||||||||||||
Investment
banking fees | |||||||||||||||||||||||
Underwriting income | i 325 | i 278 | i 398 | i 414 | ( i 57 | ) | ( i 45 | ) | |||||||||||||||
Syndication
fees | i 138 | i 196 | i 153 | i 203 | i — | i 1 | |||||||||||||||||
Financial
advisory services | i 254 | i 269 | i 33 | i 34 | i — | i — | |||||||||||||||||
Total
investment banking fees | i 717 | i 743 | i 584 | i 651 | ( i 57 | ) | ( i 44 | ) | |||||||||||||||
Total
fees and commissions | i 1,607 | i 1,659 | i 1,127 | i 1,194 | ( i 59 | ) | ( i 44 | ) | |||||||||||||||
Trading
account income | i 56 | i 64 | i 1,961 | i 2,020 | i 296 | i 37 | |||||||||||||||||
Other
income | i 603 | i 552 | i 246 | i 69 | ( i 819 | ) | ( i 674 | ) | |||||||||||||||
Total
noninterest income | $ | i 2,266 | $ | i 2,275 | $ | i 3,334 | $ | i 3,283 | $ | ( i 582 | ) | $ | ( i 681 | ) |
(1) | All
Other includes eliminations of intercompany transactions. |
Bank of America 96 |
Noninterest
Income by Business Segment and All Other | |||||||||||||||||||||||
Total
Corporation | Consumer Banking | Global Wealth & Investment Management | |||||||||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Fees
and commissions: | |||||||||||||||||||||||
Card income | |||||||||||||||||||||||
Interchange
fees | $ | i 1,864 | $ | i 1,925 | $ | i 1,532 | $ | i 1,591 | $ | i 28 | $ | i 37 | |||||||||||
Other
card income | i 957 | i 960 | i 933 | i 935 | i 20 | i 21 | |||||||||||||||||
Total
card income | i 2,821 | i 2,885 | i 2,465 | i 2,526 | i 48 | i 58 | |||||||||||||||||
Service
charges | |||||||||||||||||||||||
Deposit-related fees | i 3,218 | i 3,326 | i 2,065 | i 2,116 | i 33 | i 36 | |||||||||||||||||
Lending-related
fees | i 524 | i 549 | i — | i — | i — | i — | |||||||||||||||||
Total
service charges | i 3,742 | i 3,875 | i 2,065 | i 2,116 | i 33 | i 36 | |||||||||||||||||
Investment
and brokerage services | |||||||||||||||||||||||
Asset management fees | i 4,994 | i 5,077 | i 71 | i 73 | i 4,939 | i 5,004 | |||||||||||||||||
Brokerage
fees | i 1,836 | i 2,045 | i 77 | i 89 | i 866 | i 973 | |||||||||||||||||
Total
investment and brokerage services | i 6,830 | i 7,122 | i 148 | i 162 | i 5,805 | i 5,977 | |||||||||||||||||
Investment
banking fees | |||||||||||||||||||||||
Underwriting income | i 1,458 | i 1,460 | i — | i — | i 206 | i 156 | |||||||||||||||||
Syndication
fees | i 546 | i 716 | i — | i — | i — | i — | |||||||||||||||||
Financial
advisory services | i 631 | i 599 | i — | i — | i 1 | i 1 | |||||||||||||||||
Total
investment banking fees | i 2,635 | i 2,775 | i — | i — | i 207 | i 157 | |||||||||||||||||
Total
fees and commissions | i 16,028 | i 16,657 | i 4,678 | i 4,804 | i 6,093 | i 6,228 | |||||||||||||||||
Trading
account income | i 4,683 | i 4,704 | i 4 | i 4 | i 64 | i 56 | |||||||||||||||||
Other
income | i 813 | i 661 | i 445 | i 336 | i 255 | i 191 | |||||||||||||||||
Total
noninterest income | $ | i 21,524 | $ | i 22,022 | $ | i 5,127 | $ | i 5,144 | $ | i 6,412 | $ | i 6,475 | |||||||||||
Global
Banking | Global Markets | All Other (1) | |||||||||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Fees
and commissions: | |||||||||||||||||||||||
Card income | |||||||||||||||||||||||
Interchange
fees | $ | i 261 | $ | i 255 | $ | i 43 | $ | i 42 | $ | i — | $ | i — | |||||||||||
Other
card income | i 4 | i 3 | i — | i — | i — | i 1 | |||||||||||||||||
Total
card income | i 265 | i 258 | i 43 | i 42 | i — | i 1 | |||||||||||||||||
Service
charges | |||||||||||||||||||||||
Deposit-related fees | i 1,024 | i 1,078 | i 83 | i 85 | i 13 | i 11 | |||||||||||||||||
Lending-related
fees | i 438 | i 454 | i 86 | i 95 | i — | i — | |||||||||||||||||
Total
service charges | i 1,462 | i 1,532 | i 169 | i 180 | i 13 | i 11 | |||||||||||||||||
Investment
and brokerage services | |||||||||||||||||||||||
Asset management fees | i — | i — | i — | i — | ( i 16 | ) | i — | ||||||||||||||||
Brokerage
fees | i 16 | i 44 | i 877 | i 918 | i — | i 21 | |||||||||||||||||
Total
investment and brokerage services | i 16 | i 44 | i 877 | i 918 | ( i 16 | ) | i 21 | ||||||||||||||||
Investment
banking fees | |||||||||||||||||||||||
Underwriting income | i 605 | i 588 | i 766 | i 846 | ( i 119 | ) | ( i 130 | ) | |||||||||||||||
Syndication
fees | i 264 | i 354 | i 282 | i 362 | i — | i — | |||||||||||||||||
Financial
advisory services | i 557 | i 545 | i 73 | i 53 | i — | i — | |||||||||||||||||
Total
investment banking fees | i 1,426 | i 1,487 | i 1,121 | i 1,261 | ( i 119 | ) | ( i 130 | ) | |||||||||||||||
Total
fees and commissions | i 3,169 | i 3,321 | i 2,210 | i 2,401 | ( i 122 | ) | ( i 97 | ) | |||||||||||||||
Trading
account income | i 106 | i 124 | i 4,043 | i 4,577 | i 466 | ( i 57 | ) | ||||||||||||||||
Other
income | i 1,356 | i 1,146 | i 309 | i 96 | ( i 1,552 | ) | ( i 1,108 | ) | |||||||||||||||
Total
noninterest income | $ | i 4,631 | $ | i 4,591 | $ | i 6,562 | $ | i 7,074 | $ | ( i 1,208 | ) | $ | ( i 1,262 | ) |
(1) | All
Other includes eliminations of intercompany transactions. |
97 Bank of America |
Bank of America 98 |
ABS | Asset-backed
securities |
AFS | Available-for-sale |
ALM | Asset and liability management |
ARR | Alternative reference rates |
AUM | Assets under management |
BANA | Bank of America, National Association |
BHC | Bank
holding company |
BofAS | BofA Securities, Inc. |
BofASE | BofA Securities Europe SA |
bps | basis points |
CCAR | Comprehensive Capital Analysis and Review |
CDO | Collateralized debt obligation |
CET1 | Common
equity tier 1 |
CFTC | Commodity Futures Trading Commission |
CLTV | Combined loan-to-value |
CVA | Credit valuation adjustment |
DVA | Debit valuation adjustment |
EPS | Earnings per common share |
EU | European
Union |
FDIC | Federal Deposit Insurance Corporation |
FHA | Federal Housing Administration |
FHLB | Federal Home Loan Bank |
FHLMC | Freddie Mac |
FICC | Fixed-income, currencies and commodities |
FICO | Fair
Isaac Corporation (credit score) |
FNMA | Fannie Mae |
FTE | Fully taxable-equivalent |
FVA | Funding valuation adjustment |
GAAP | Accounting principles generally accepted in the United States of America |
GLS | Global Liquidity Sources |
GNMA | Government
National Mortgage Association |
GSE | Government-sponsored enterprise |
G-SIB | Global systemically important bank |
GWIM | Global Wealth & Investment Management |
HELOC | Home equity line of credit |
HQLA | High
Quality Liquid Assets |
HTM | Held-to-maturity |
IBOR | InterBank Offered Rates |
IRLC | Interest rate lock commitment |
ISDA | International Swaps and Derivatives Association, Inc. |
LCR | Liquidity Coverage Ratio |
LHFS | Loans
held-for-sale |
LIBOR | London InterBank Offered Rate |
LTV | Loan-to-value |
MBS | Mortgage-backed securities |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
MLGWM | Merrill Lynch Global Wealth Management |
MLI | Merrill
Lynch International |
MLPCC | Merrill Lynch Professional Clearing Corp |
MLPF&S | Merrill Lynch, Pierce, Fenner & Smith Incorporated |
MSA | Metropolitan Statistical Area |
MSR | Mortgage servicing right |
OCI | Other comprehensive income |
OREO | Other
real estate owned |
OTC | Over-the-counter |
OTTI | Other-than-temporary impairment |
PCA | Prompt Corrective Action |
PCI | Purchased credit-impaired |
RMBS | Residential mortgage-backed securities |
SBLC | Standby
letter of credit |
SBSDs | Security-based swap dealers |
SEC | Securities and Exchange Commission |
SLR | Supplementary leverage ratio |
TDR | Troubled debt restructurings |
TLAC | Total loss-absorbing capacity |
VaR | Value-at-Risk |
VIE | Variable
interest entity |
99 Bank of America |
(Dollars
in millions, except per share information; shares in thousands) | Total Common Shares Repurchased (1) | Weighted-Average Per Share Price | Total Shares Purchased as Part of Publicly Announced Programs | Remaining Buyback Authority Amounts (2,3) | |||||||||
April
1 - 30, 2019 | 70,656 | $ | 29.41 | 70,648 | $ | 4,443 | |||||||
May
1 - 31, 2019 | 86,276 | 29.09 | 86,274 | 1,933 | |||||||||
June 1 - 30, 2019 | 68,947 | 27.83 | 68,946 | 14 | |||||||||
Three
months ended June 30, 2019 | 225,879 | 28.81 | 225,868 |
(1) | Includes
shares of the Corporation’s common stock acquired by the Corporation in connection with satisfaction of tax withholding obligations on vested restricted stock or restricted stock units and certain forfeitures and terminations of employment-related awards and for potential re-issuance to certain employees under equity incentive plans. |
(2) | On February 7, 2019, the Corporation announced that the Board authorized the repurchase of an additional $2.5 billion of common stock through June 30, 2019. Amounts shown include shares repurchased under this additional repurchase authority in addition to the previously announced repurchases
associated with the 2018 CCAR capital plan. During the three months ended June 30, 2019, pursuant to the Board’s authorization, the Corporation repurchased $6.5 billion of common stock, which included common stock to offset equity-based compensation awards. For additional information, see Note 12 – Shareholders’ Equity to the Consolidated Financial Statements. |
(3) |
Bank of America 100 |
Exhibit No. | Description | Notes | Form | Exhibit | Filing Date | File No. |
3(a) | 1 | |||||
3(b) | 8-K | 3.1 | 3/20/15 | |||
10(a) | 2 | 8-K | 10.1 | 4/24/19 | ||
10(b) | 1,2 | |||||
31(a) | 1 | |||||
31(b) | 1 | |||||
32(a) | 1 | |||||
32(b) | 1 | |||||
101.INS | XBRL
Instance Document | 3 | ||||
101.SCH | XBRL Taxonomy Extension
Schema Document | 1 | ||||
101.CAL | XBRL Taxonomy Extension
Calculation Linkbase Document | 1 | ||||
101.LAB | XBRL Taxonomy
Extension Label Linkbase Document | 1 | ||||
101.PRE | XBRL
Taxonomy Extension Presentation Linkbase Document | 1 | ||||
101.DEF | XBRL
Taxonomy Extension Definitions Linkbase Document | 1 |
Bank
of America Corporation Registrant | |||||
Date: | /s/ Rudolf A. Bless | ||||
Chief Accounting Officer |
101 Bank of America |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
11/28/31 | ||||
9/20/24 | ||||
6/30/20 | 10-Q, 13F-HR, 424B2, FWP | |||
1/1/20 | ||||
12/20/19 | 15-15D, S-8 POS | |||
10/31/19 | FWP | |||
9/27/19 | 424B2, FWP | |||
9/25/19 | 424B2 | |||
9/6/19 | 424B2, FWP | |||
Filed on: | 7/29/19 | 424B2, FWP | ||
7/26/19 | 3, 4, 424B2, FWP | |||
7/25/19 | 3, 4, 8-K, FWP | |||
7/19/19 | 424B2, FWP | |||
7/17/19 | 3, 4, 8-K | |||
7/1/19 | 424B2, FWP | |||
For Period end: | 6/30/19 | 13F-HR | ||
6/28/19 | 424B2, FWP | |||
6/27/19 | 3, 424B2, 8-K, SC 13D | |||
6/26/19 | 424B2 | |||
6/25/19 | 424B2, 8-A12B, 8-K, CERT, FWP | |||
6/21/19 | 424B2, FWP | |||
6/20/19 | 11-K, 424B2, 424B5, 8-K | |||
6/12/19 | 424B2, FWP | |||
6/7/19 | 3, 424B2, FWP, SC 13D | |||
5/13/19 | 424B2, 8-K, FWP | |||
4/24/19 | 4, 424B2, 8-K, DEF 14A | |||
3/31/19 | 10-Q, 13F-HR | |||
3/29/19 | 424B2, FWP | |||
3/6/19 | ||||
3/1/19 | 4, 424B2 | |||
2/7/19 | 424B2, 8-K | |||
1/30/19 | 3, 424B2, FWP | |||
1/16/19 | 8-K | |||
1/1/19 | ||||
12/31/18 | 10-K, 11-K, 13F-HR, 424B2, 5, FWP | |||
12/5/18 | 424B2 | |||
10/29/18 | 10-Q, 424B2, FWP | |||
6/30/18 | 10-Q, 13F-HR | |||
3/31/18 | 10-Q, 13F-HR | |||
1/1/18 | ||||
12/31/17 | 10-K, 11-K, 13F-HR, 5 | |||
1/1/10 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/20/24 Bank of America Corp./DE 10-K 12/31/23 200:61M 2/22/23 Bank of America Corp./DE 10-K 12/31/22 200:66M 2/22/22 Bank of America Corp./DE 10-K 12/31/21 201:72M 2/24/21 Bank of America Corp./DE 10-K 12/31/20 199:66M |