Large accelerated filer ☑ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
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 |
Table 1 | Selected Financial Data | |||||||
Three Months Ended March 31 | ||||||||
(Dollars in millions, except per share information) | 2018 | 2017 | ||||||
Income statement | ||||||||
Revenue, net of interest expense | $ | 23,125 | $ | 22,248 | ||||
Net income | 6,918 | 5,337 | ||||||
Diluted earnings per common share | 0.62 | 0.45 | ||||||
Dividends paid per common share | 0.12 | 0.075 | ||||||
Performance ratios | ||||||||
Return on average assets | 1.21 | % | 0.97 | % | ||||
Return on average common shareholders’ equity | 10.85 | 8.09 | ||||||
Return on average tangible common shareholders’ equity (1) | 15.26 | 11.44 | ||||||
Efficiency ratio | 60.09 | 63.34 | ||||||
March 31 2018 | December 31 2017 | |||||||
Balance sheet | ||||||||
Total loans and leases | $ | 934,078 | $ | 936,749 | ||||
Total assets | 2,328,478 | 2,281,234 | ||||||
Total deposits | 1,328,664 | 1,309,545 | ||||||
Total common shareholders’ equity | 241,552 | 244,823 | ||||||
Total shareholders’ equity | 266,224 | 267,146 |
Table 2 | Summary Income Statement | |||||||
Three Months Ended March 31 | ||||||||
(Dollars in millions) | 2018 | 2017 | ||||||
Net interest income | $ | 11,608 | $ | 11,058 | ||||
Noninterest income | 11,517 | 11,190 | ||||||
Total revenue, net of interest expense | 23,125 | 22,248 | ||||||
Provision for credit losses | 834 | 835 | ||||||
Noninterest expense | 13,897 | 14,093 | ||||||
Income before income taxes | 8,394 | 7,320 | ||||||
Income tax expense | 1,476 | 1,983 | ||||||
Net income | $ | 6,918 | $ | 5,337 | ||||
Preferred stock dividends | 428 | 502 | ||||||
Net income applicable to common shareholders | $ | 6,490 | $ | 4,835 | ||||
Per common share information | ||||||||
Earnings | $ | 0.63 | $ | 0.48 | ||||
Diluted earnings | 0.62 | 0.45 |
Table 1 | Summary Income Statement and Selected Financial Data | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
(Dollars in millions, except per share information) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Income statement | ||||||||||||||||
Net interest income | $ | 11,870 | $ | 11,161 | $ | 35,128 | $ | 33,205 | ||||||||
Noninterest income | 10,907 | 10,678 | 33,383 | 33,711 | ||||||||||||
Total revenue, net of interest expense | 22,777 | 21,839 | 68,511 | 66,916 | ||||||||||||
Provision for credit losses | 716 | 834 | 2,377 | 2,395 | ||||||||||||
Noninterest expense | 13,067 | 13,394 | 40,248 | 41,469 | ||||||||||||
Income before income taxes | 8,994 | 7,611 | 25,886 | 23,052 | ||||||||||||
Income tax expense | 1,827 | 2,187 | 5,017 | 7,185 | ||||||||||||
Net income | 7,167 | 5,424 | 20,869 | 15,867 | ||||||||||||
Preferred stock dividends | 466 | 465 | 1,212 | 1,328 | ||||||||||||
Net income applicable to common shareholders | $ | 6,701 | $ | 4,959 | $ | 19,657 | $ | 14,539 | ||||||||
Per common share information | ||||||||||||||||
Earnings | $ | 0.67 | $ | 0.49 | $ | 1.93 | $ | 1.44 | ||||||||
Diluted earnings | 0.66 | 0.46 | 1.91 | 1.36 | ||||||||||||
Dividends paid | 0.15 | 0.12 | 0.39 | 0.27 | ||||||||||||
Performance ratios | ||||||||||||||||
Return on average assets | 1.23 | % | 0.95 | % | 1.20 | % | 0.94 | % | ||||||||
Return on average common shareholders’ equity | 10.99 | 7.89 | 10.86 | 7.91 | ||||||||||||
Return on average tangible common shareholders’ equity (1) | 15.48 | 10.98 | 15.30 | 11.10 | ||||||||||||
Efficiency ratio | 57.37 | 61.33 | 58.75 | 61.97 | ||||||||||||
September 30 2018 | December 31 2017 | |||||||||||||||
Balance sheet | ||||||||||||||||
Total loans and leases | $ | 929,801 | $ | 936,749 | ||||||||||||
Total assets | 2,338,833 | 2,281,234 | ||||||||||||||
Total deposits | 1,345,649 | 1,309,545 | ||||||||||||||
Total common shareholders’ equity | 239,832 | 244,823 | ||||||||||||||
Total shareholders’ equity | 262,158 | 267,146 |
(1) | Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to accounting principles generally accepted in the United States of America (GAAP) financial measures, see Non-GAAP Reconciliations on page 52. |
3Bank of America |
Table 2 | Noninterest Income | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Card income | $ | 1,470 | $ | 1,429 | $ | 4,469 | $ | 4,347 | ||||||||
Service charges | 1,961 | 1,968 | 5,836 | 5,863 | ||||||||||||
Investment and brokerage services | 3,494 | 3,437 | 10,616 | 10,314 | ||||||||||||
Investment banking income | 1,204 | 1,477 | 3,979 | 4,593 | ||||||||||||
Trading account profits | 1,893 | 1,837 | 6,907 | 6,124 | ||||||||||||
Other income | 885 | 530 | 1,576 | 2,470 | ||||||||||||
Total noninterest income | $ | 10,907 | $ | 10,678 | $ | 33,383 | $ | 33,711 |
● | Card income increased$41 millionand $122 million primarily driven by an increase in credit and debit card spending, as well as increased late fees and annual fees, partially offset by higher rewards costs and lower cash advance fees, and for the nine-month period, the sale of the non-U.S. consumer credit card business. |
● | Investment banking income decreased $273 million and $614 million primarily due to declines in leveraged finance and advisory fees, partially offset by an increase in equity underwriting fees. |
● | Trading account profits increased $56 million for the three-month period primarily due to increased client activity in equity financing and derivatives, partially offset by weakness in rates products and municipal bonds, and increased $783 million for the nine-month period primarily due to increased client activity in equity financing and derivatives, and strong trading performance in equity derivatives and macro-related products, partially offset by weakness in credit products. |
● | Other income increased $355 million for the three-month period primarily due to increased results from economic hedging activities, lower provision for representations and warranties and a gain on the sale of an equity investment. The $894 million decrease for the nine-month period also reflected a $729 million charge related to the redemption of certain trust preferred securities, partially offset by $656 million of gains on the sale of certain loans, primarily non-core. The nine-month period in 2017 included a $793 million pretax gain recognized in connection with the sale of the non-U.S. consumer credit card business. |
Bank of America 4 |
Table 3 | Noninterest Income | |||||||
Three Months Ended March 31 | ||||||||
(Dollars in millions) | 2018 | 2017 | ||||||
Card income | $ | 1,457 | $ | 1,449 | ||||
Service charges | 1,921 | 1,918 | ||||||
Investment and brokerage services | 3,664 | 3,417 | ||||||
Investment banking income | 1,353 | 1,584 | ||||||
Trading account profits | 2,699 | 2,331 | ||||||
Other income | 423 | 491 | ||||||
Total noninterest income | $ | 11,517 | $ | 11,190 |
Table 4 | Noninterest Expense | |||||||||||||||||||||||
Table 3 | Noninterest Expense | |||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Personnel | Personnel | $ | 8,480 | $ | 8,475 | Personnel | $ | 7,721 | $ | 7,811 | $ | 24,145 | $ | 24,326 | ||||||||||
Occupancy | Occupancy | 1,014 | 1,000 | Occupancy | 1,015 | 999 | 3,051 | 3,000 | ||||||||||||||||
Equipment | Equipment | 442 | 438 | Equipment | 421 | 416 | 1,278 | 1,281 | ||||||||||||||||
Marketing | Marketing | 345 | 332 | Marketing | 421 | 461 | 1,161 | 1,235 | ||||||||||||||||
Professional fees | Professional fees | 381 | 456 | Professional fees | 439 | 476 | 1,219 | 1,417 | ||||||||||||||||
Data processing | Data processing | 810 | 794 | Data processing | 791 | 777 | 2,398 | 2,344 | ||||||||||||||||
Telecommunications | Telecommunications | 183 | 191 | Telecommunications | 173 | 170 | 522 | 538 | ||||||||||||||||
Other general operating | Other general operating | 2,242 | 2,407 | Other general operating | 2,086 | 2,284 | 6,474 | 7,328 | ||||||||||||||||
Total noninterest expense | Total noninterest expense | $ | 13,897 | $ | 14,093 | Total noninterest expense | $ | 13,067 | $ | 13,394 | $ | 40,248 | $ | 41,469 |
Table 5 | Income Tax Expense | |||||||||||||||||||||||
Table 4 | Income Tax Expense | |||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Income before income taxes | Income before income taxes | $ | 8,394 | $ | 7,320 | Income before income taxes | $ | 8,994 | $ | 7,611 | $ | 25,886 | $ | 23,052 | ||||||||||
Income tax expense | Income tax expense | 1,476 | 1,983 | Income tax expense | 1,827 | 2,187 | 5,017 | 7,185 | ||||||||||||||||
Effective tax rate | Effective tax rate | 17.6 | % | 27.1 | % | Effective tax rate | 20.3 | % | 28.7 | % | 19.4 | % | 31.2 | % |
5 Bank of America |
Table 6 | Selected Quarterly Financial Data | |||||||||||||||||||
2018 Quarter Quarter | 2017 Quarters | |||||||||||||||||||
(In millions, except per share information) | First | Fourth | Third | Second | First | |||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | $ | 11,608 | $ | 11,462 | $ | 11,161 | $ | 10,986 | $ | 11,058 | ||||||||||
Noninterest income (1) | 11,517 | 8,974 | 10,678 | 11,843 | 11,190 | |||||||||||||||
Total revenue, net of interest expense | 23,125 | 20,436 | 21,839 | 22,829 | 22,248 | |||||||||||||||
Provision for credit losses | 834 | 1,001 | 834 | 726 | 835 | |||||||||||||||
Noninterest expense | 13,897 | 13,274 | 13,394 | 13,982 | 14,093 | |||||||||||||||
Income before income taxes | 8,394 | 6,161 | 7,611 | 8,121 | 7,320 | |||||||||||||||
Income tax expense (1) | 1,476 | 3,796 | 2,187 | 3,015 | 1,983 | |||||||||||||||
Net income (1) | 6,918 | 2,365 | 5,424 | 5,106 | 5,337 | |||||||||||||||
Net income applicable to common shareholders | 6,490 | 2,079 | 4,959 | 4,745 | 4,835 | |||||||||||||||
Average common shares issued and outstanding | 10,322.4 | 10,470.7 | 10,197.9 | 10,013.5 | 10,099.6 | |||||||||||||||
Average diluted common shares issued and outstanding | 10,472.7 | 10,621.8 | 10,746.7 | 10,834.8 | 10,919.7 | |||||||||||||||
Performance ratios | ||||||||||||||||||||
Return on average assets | 1.21 | % | 0.41 | % | 0.95 | % | 0.90 | % | 0.97 | % | ||||||||||
Four quarter trailing return on average assets (2) | 0.86 | 0.80 | 0.91 | 0.89 | 0.88 | |||||||||||||||
Return on average common shareholders’ equity | 10.85 | 3.29 | 7.89 | 7.75 | 8.09 | |||||||||||||||
Return on average tangible common shareholders’ equity (3) | 15.26 | 4.56 | 10.98 | 10.87 | 11.44 | |||||||||||||||
Return on average shareholders’ equity | 10.57 | 3.43 | 7.88 | 7.56 | 8.09 | |||||||||||||||
Return on average tangible shareholders’ equity (3) | 14.37 | 4.62 | 10.59 | 10.23 | 11.01 | |||||||||||||||
Total ending equity to total ending assets | 11.43 | 11.71 | 11.91 | 12.00 | 11.92 | |||||||||||||||
Total average equity to total average assets | 11.41 | 11.87 | 12.03 | 11.94 | 12.00 | |||||||||||||||
Dividend payout | 19.06 | 60.35 | 25.59 | 15.78 | 15.64 | |||||||||||||||
Per common share data | ||||||||||||||||||||
Earnings | $ | 0.63 | $ | 0.20 | $ | 0.49 | $ | 0.47 | $ | 0.48 | ||||||||||
Diluted earnings | 0.62 | 0.20 | 0.46 | 0.44 | 0.45 | |||||||||||||||
Dividends paid | 0.12 | 0.12 | 0.12 | 0.075 | 0.075 | |||||||||||||||
Book value | 23.74 | 23.80 | 23.87 | 24.85 | 24.34 | |||||||||||||||
Tangible book value (3) | 16.84 | 16.96 | 17.18 | 17.75 | 17.22 | |||||||||||||||
Market price per share of common stock | ||||||||||||||||||||
Closing | $ | 29.99 | $ | 29.52 | $ | 25.34 | $ | 24.26 | $ | 23.59 | ||||||||||
High closing | 32.84 | 29.88 | 25.45 | 24.32 | 25.50 | |||||||||||||||
Low closing | 29.17 | 25.45 | 22.89 | 22.23 | 22.05 | |||||||||||||||
Market capitalization | $ | 305,176 | $ | 303,681 | $ | 264,992 | $ | 239,643 | $ | 235,291 | ||||||||||
Average balance sheet | ||||||||||||||||||||
Total loans and leases | $ | 931,915 | $ | 927,790 | $ | 918,129 | $ | 914,717 | $ | 914,144 | ||||||||||
Total assets | 2,325,878 | 2,301,687 | 2,271,104 | 2,269,293 | 2,231,649 | |||||||||||||||
Total deposits | 1,297,268 | 1,293,572 | 1,271,711 | 1,256,838 | 1,256,632 | |||||||||||||||
Long-term debt | 229,603 | 227,644 | 227,309 | 224,019 | 221,468 | |||||||||||||||
Common shareholders’ equity | 242,713 | 250,838 | 249,214 | 245,756 | 242,480 | |||||||||||||||
Total shareholders’ equity | 265,480 | 273,162 | 273,238 | 270,977 | 267,700 | |||||||||||||||
Asset quality | ||||||||||||||||||||
Allowance for credit losses (4) | $ | 11,042 | $ | 11,170 | $ | 11,455 | $ | 11,632 | $ | 11,869 | ||||||||||
Nonperforming loans, leases and foreclosed properties (5) | 6,694 | 6,758 | 6,869 | 7,127 | 7,637 | |||||||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (6, 7) | 1.11 | % | 1.12 | % | 1.16 | % | 1.20 | % | 1.25 | % | ||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5, 6) | 161 | 161 | 163 | 160 | 156 | |||||||||||||||
Net charge-offs (7, 8) | $ | 911 | $ | 1,237 | $ | 900 | $ | 908 | $ | 934 | ||||||||||
Annualized net charge-offs as a percentage of average loans and leases outstanding (6, 8) | 0.40 | % | 0.53 | % | 0.39 | % | 0.40 | % | 0.42 | % | ||||||||||
Capital ratios at period end (9) | ||||||||||||||||||||
Common equity tier 1 capital | 11.3 | % | 11.5 | % | 11.9 | % | 11.5 | % | 11.0 | % | ||||||||||
Tier 1 capital | 13.0 | 13.0 | 13.4 | 13.2 | 12.6 | |||||||||||||||
Total capital | 14.8 | 14.8 | 15.1 | 15.0 | 14.3 | |||||||||||||||
Tier 1 leverage | 8.4 | 8.6 | 8.9 | 8.8 | 8.8 | |||||||||||||||
Supplementary leverage ratio | 6.8 | n/a | n/a | n/a | n/a | |||||||||||||||
Tangible equity (3) | 8.7 | 8.9 | 9.1 | 9.2 | 9.1 | |||||||||||||||
Tangible common equity (3) | 7.6 | 7.9 | 8.1 | 8.0 | 7.9 |
● | Return on average tangible common shareholders’ equity measures our earnings contribution as a percentage of adjusted common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total assets less goodwill and certain acquired intangible assets (excluding MSRs), net of related deferred tax liabilities. |
● | Return on average tangible shareholders’ equity measures our earnings contribution 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 certain acquired 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. |
Table 7 | Quarterly Average Balances and Interest Rates - FTE Basis | |||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||
(Dollars in millions) | First Quarter 2018 | First Quarter 2017 | ||||||||||||||||||||
Earning assets | ||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 140,247 | $ | 422 | 1.22 | % | $ | 123,921 | $ | 202 | 0.66 | % | ||||||||||
Time deposits placed and other short-term investments | 10,786 | 61 | 2.31 | 11,497 | 47 | 1.65 | ||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell (1) | 248,320 | 622 | 1.02 | 216,402 | 356 | 0.67 | ||||||||||||||||
Trading account assets | 131,123 | 1,147 | 3.54 | 125,661 | 1,111 | 3.58 | ||||||||||||||||
Debt securities | 433,096 | 2,830 | 2.58 | 430,234 | 2,573 | 2.38 | ||||||||||||||||
Loans and leases (2): | ||||||||||||||||||||||
Residential mortgage | 204,830 | 1,782 | 3.48 | 193,627 | 1,661 | 3.44 | ||||||||||||||||
Home equity | 56,952 | 643 | 4.56 | 65,508 | 639 | 3.94 | ||||||||||||||||
U.S. credit card | 94,423 | 2,313 | 9.93 | 89,628 | 2,111 | 9.55 | ||||||||||||||||
Non-U.S. credit card (3) | — | — | — | 9,367 | 211 | 9.15 | ||||||||||||||||
Direct/Indirect consumer (4) | 92,478 | 701 | 3.07 | 93,291 | 608 | 2.65 | ||||||||||||||||
Other consumer (5) | 2,814 | 27 | 4.00 | 2,547 | 27 | 4.07 | ||||||||||||||||
Total consumer | 451,497 | 5,466 | 4.89 | 453,968 | 5,257 | 4.68 | ||||||||||||||||
U.S. commercial | 299,850 | 2,717 | 3.68 | 287,468 | 2,222 | 3.14 | ||||||||||||||||
Non-U.S. commercial | 99,504 | 738 | 3.01 | 92,821 | 595 | 2.60 | ||||||||||||||||
Commercial real estate (6) | 59,231 | 587 | 4.02 | 57,764 | 479 | 3.36 | ||||||||||||||||
Commercial lease financing | 21,833 | 175 | 3.20 | 22,123 | 231 | 4.17 | ||||||||||||||||
Total commercial | 480,418 | 4,217 | 3.56 | 460,176 | 3,527 | 3.11 | ||||||||||||||||
Total loans and leases (3) | 931,915 | 9,683 | 4.20 | 914,144 | 8,784 | 3.88 | ||||||||||||||||
Other earning assets (1) | 84,345 | 984 | 4.72 | 73,514 | 760 | 4.19 | ||||||||||||||||
Total earning assets (1,7) | 1,979,832 | 15,749 | 3.21 | 1,895,373 | 13,833 | 2.96 | ||||||||||||||||
Cash and due from banks | 26,275 | 27,196 | ||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 319,771 | 309,080 | ||||||||||||||||||||
Total assets | $ | 2,325,878 | $ | 2,231,649 | ||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||||||||||
Savings | $ | 54,747 | $ | 1 | 0.01 | % | $ | 52,193 | $ | 1 | 0.01 | % | ||||||||||
NOW and money market deposit accounts | 659,033 | 406 | 0.25 | 617,749 | 74 | 0.05 | ||||||||||||||||
Consumer CDs and IRAs | 41,313 | 33 | 0.33 | 46,711 | 31 | 0.27 | ||||||||||||||||
Negotiable CDs, public funds and other deposits | 40,639 | 157 | 1.56 | 33,695 | 52 | 0.63 | ||||||||||||||||
Total U.S. interest-bearing deposits | 795,732 | 597 | 0.30 | 750,348 | 158 | 0.09 | ||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||
Banks located in non-U.S. countries | 2,243 | 9 | 1.67 | 2,616 | 5 | 0.76 | ||||||||||||||||
Governments and official institutions | 1,154 | — | 0.02 | 1,013 | 2 | 0.81 | ||||||||||||||||
Time, savings and other | 67,334 | 154 | 0.92 | 58,418 | 117 | 0.81 | ||||||||||||||||
Total non-U.S. interest-bearing deposits | 70,731 | 163 | 0.93 | 62,047 | 124 | 0.81 | ||||||||||||||||
Total interest-bearing deposits | 866,463 | 760 | 0.36 | 812,395 | 282 | 0.14 | ||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities (1) | 278,931 | 1,135 | 1.65 | 266,837 | 573 | 0.87 | ||||||||||||||||
Trading account liabilities | 55,362 | 357 | 2.62 | 38,731 | 264 | 2.76 | ||||||||||||||||
Long-term debt | 229,603 | 1,739 | 3.06 | 221,468 | 1,459 | 2.65 | ||||||||||||||||
Total interest-bearing liabilities (1,7) | 1,430,359 | 3,991 | 1.13 | 1,339,431 | 2,578 | 0.78 | ||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||
Noninterest-bearing deposits | 430,805 | 444,237 | ||||||||||||||||||||
Other liabilities (1) | 199,234 | 180,281 | ||||||||||||||||||||
Shareholders’ equity | 265,480 | 267,700 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,325,878 | $ | 2,231,649 | ||||||||||||||||||
Net interest spread | 2.08 | % | 2.18 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.31 | 0.21 | ||||||||||||||||||||
Net interest income/yield on earning assets | $ | 11,758 | 2.39 | % | $ | 11,255 | 2.39 | % |
Table 5 | Selected Quarterly Financial Data | |||||||||||||||||||
2018 Quarters | 2017 Quarters | |||||||||||||||||||
(In millions, except per share information) | Third | Second | First | Fourth | Third | |||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | $ | 11,870 | $ | 11,650 | $ | 11,608 | $ | 11,462 | $ | 11,161 | ||||||||||
Noninterest income (1) | 10,907 | 10,959 | 11,517 | 8,974 | 10,678 | |||||||||||||||
Total revenue, net of interest expense | 22,777 | 22,609 | 23,125 | 20,436 | 21,839 | |||||||||||||||
Provision for credit losses | 716 | 827 | 834 | 1,001 | 834 | |||||||||||||||
Noninterest expense | 13,067 | 13,284 | 13,897 | 13,274 | 13,394 | |||||||||||||||
Income before income taxes | 8,994 | 8,498 | 8,394 | 6,161 | 7,611 | |||||||||||||||
Income tax expense (1) | 1,827 | 1,714 | 1,476 | 3,796 | 2,187 | |||||||||||||||
Net income (1) | 7,167 | 6,784 | 6,918 | 2,365 | 5,424 | |||||||||||||||
Net income applicable to common shareholders | 6,701 | 6,466 | 6,490 | 2,079 | 4,959 | |||||||||||||||
Average common shares issued and outstanding | 10,031.6 | 10,181.7 | 10,322.4 | 10,470.7 | 10,197.9 | |||||||||||||||
Average diluted common shares issued and outstanding | 10,170.8 | 10,309.4 | 10,472.7 | 10,621.8 | 10,746.7 | |||||||||||||||
Performance ratios | ||||||||||||||||||||
Return on average assets | 1.23 | % | 1.17 | % | 1.21 | % | 0.41 | % | 0.95 | % | ||||||||||
Four quarter trailing return on average assets (2) | 1.00 | 0.93 | 0.86 | 0.80 | 0.91 | |||||||||||||||
Return on average common shareholders’ equity | 10.99 | 10.75 | 10.85 | 3.29 | 7.89 | |||||||||||||||
Return on average tangible common shareholders’ equity (3) | 15.48 | 15.15 | 15.26 | 4.56 | 10.98 | |||||||||||||||
Return on average shareholders’ equity | 10.74 | 10.26 | 10.57 | 3.43 | 7.88 | |||||||||||||||
Return on average tangible shareholders’ equity (3) | 14.61 | 13.95 | 14.37 | 4.62 | 10.59 | |||||||||||||||
Total ending equity to total ending assets | 11.21 | 11.53 | 11.43 | 11.71 | 11.91 | |||||||||||||||
Total average equity to total average assets | 11.42 | 11.42 | 11.41 | 11.87 | 12.03 | |||||||||||||||
Dividend payout | 22.35 | 18.83 | 19.06 | 60.35 | 25.59 | |||||||||||||||
Per common share data | ||||||||||||||||||||
Earnings | $ | 0.67 | $ | 0.64 | $ | 0.63 | $ | 0.20 | $ | 0.49 | ||||||||||
Diluted earnings | 0.66 | 0.63 | 0.62 | 0.20 | 0.46 | |||||||||||||||
Dividends paid | 0.15 | 0.12 | 0.12 | 0.12 | 0.12 | |||||||||||||||
Book value | 24.33 | 24.07 | 23.74 | 23.80 | 23.87 | |||||||||||||||
Tangible book value (3) | 17.23 | 17.07 | 16.84 | 16.96 | 17.18 | |||||||||||||||
Market price per share of common stock | ||||||||||||||||||||
Closing | $ | 29.46 | $ | 28.19 | $ | 29.99 | $ | 29.52 | $ | 25.34 | ||||||||||
High closing | 31.80 | 31.22 | 32.84 | 29.88 | 25.45 | |||||||||||||||
Low closing | 27.78 | 28.19 | 29.17 | 25.45 | 22.89 | |||||||||||||||
Market capitalization | $ | 290,424 | $ | 282,259 | $ | 305,176 | $ | 303,681 | $ | 264,992 | ||||||||||
Average balance sheet | ||||||||||||||||||||
Total loans and leases | $ | 930,736 | $ | 934,818 | $ | 931,915 | $ | 927,790 | $ | 918,129 | ||||||||||
Total assets | 2,317,829 | 2,322,678 | 2,325,878 | 2,301,687 | 2,271,104 | |||||||||||||||
Total deposits | 1,316,345 | 1,300,659 | 1,297,268 | 1,293,572 | 1,271,711 | |||||||||||||||
Long-term debt | 233,475 | 229,037 | 229,603 | 227,644 | 227,309 | |||||||||||||||
Common shareholders’ equity | 241,812 | 241,313 | 242,713 | 250,838 | 249,214 | |||||||||||||||
Total shareholders’ equity | 264,653 | 265,181 | 265,480 | 273,162 | 273,238 | |||||||||||||||
Asset quality | ||||||||||||||||||||
Allowance for credit losses (4) | $ | 10,526 | $ | 10,837 | $ | 11,042 | $ | 11,170 | $ | 11,455 | ||||||||||
Nonperforming loans, leases and foreclosed properties (5) | 5,449 | 6,181 | 6,694 | 6,758 | 6,869 | |||||||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5) | 1.05 | % | 1.08 | % | 1.11 | % | 1.12 | % | 1.16 | % | ||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5) | 189 | 170 | 161 | 161 | 163 | |||||||||||||||
Net charge-offs (6) | $ | 932 | $ | 996 | $ | 911 | $ | 1,237 | $ | 900 | ||||||||||
Annualized net charge-offs as a percentage of average loans and leases outstanding (5, 6) | 0.40 | % | 0.43 | % | 0.40 | % | 0.53 | % | 0.39 | % | ||||||||||
Capital ratios at period end (7) | ||||||||||||||||||||
Common equity tier 1 capital | 11.4 | % | 11.4 | % | 11.3 | % | 11.5 | % | 11.9 | % | ||||||||||
Tier 1 capital | 12.9 | 13.0 | 13.0 | 13.0 | 13.4 | |||||||||||||||
Total capital | 14.7 | 14.8 | 14.8 | 14.8 | 15.1 | |||||||||||||||
Tier 1 leverage | 8.3 | 8.4 | 8.4 | 8.6 | 8.9 | |||||||||||||||
Supplementary leverage ratio | 6.7 | 6.7 | 6.8 | n/a | n/a | |||||||||||||||
Tangible equity (3) | 8.5 | 8.7 | 8.7 | 8.9 | 9.1 | |||||||||||||||
Tangible common equity (3) | 7.5 | 7.7 | 7.6 | 7.9 | 8.1 |
(1) | Net income for the fourth quarter of 2017 included a charge of $2.9 billion related to the Tax Act effects which consisted of $946 million in noninterest income and $1.9 billion in income tax expense. |
(2) | Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters. |
(3) | 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 GAAP financial measures, see Non-GAAP Reconciliations on page 52. |
(4) | Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. |
(5) | 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 36 and corresponding Table 28 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 40 and corresponding Table 35. |
(6) | Net charge-offs exclude $95 million, $36 million, $35 million, $46 million and $73 million of write-offs in the purchased credit-impaired (PCI) loan portfolio in the third, second and first quarters of 2018, and in the fourth and third quarters of 2017, respectively. For more information, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 34. |
(7) | Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased-in as of January 1, 2018. Prior periods are presented on a fully phased-in basis. For more information, including which approach is used to assess capital adequacy, see Capital Management on page 22. |
Bank of America7 |
Table 6 | Selected Year-to-Date Financial Data | |||||||
Nine Months Ended September 30 | ||||||||
(In millions, except per share information) | 2018 | 2017 | ||||||
Income statement | ||||||||
Net interest income | $ | 35,128 | $ | 33,205 | ||||
Noninterest income | 33,383 | 33,711 | ||||||
Total revenue, net of interest expense | 68,511 | 66,916 | ||||||
Provision for credit losses | 2,377 | 2,395 | ||||||
Noninterest expense | 40,248 | 41,469 | ||||||
Income before income taxes | 25,886 | 23,052 | ||||||
Income tax expense | 5,017 | 7,185 | ||||||
Net income | 20,869 | 15,867 | ||||||
Net income applicable to common shareholders | 19,657 | 14,539 | ||||||
Average common shares issued and outstanding | 10,177.5 | 10,103.4 | ||||||
Average diluted common shares issued and outstanding | 10,317.9 | 10,832.1 | ||||||
Performance ratios | ||||||||
Return on average assets | 1.20 | % | 0.94 | % | ||||
Return on average common shareholders’ equity | 10.86 | 7.91 | ||||||
Return on average tangible common shareholders’ equity (1) | 15.30 | 11.10 | ||||||
Return on average shareholders’ equity | 10.52 | 7.84 | ||||||
Return on average tangible shareholders’ equity (1) | 14.31 | 10.61 | ||||||
Total ending equity to total ending assets | 11.21 | 11.91 | ||||||
Total average equity to total average assets | 11.42 | 11.99 | ||||||
Dividend payout | 20.10 | 19.08 | ||||||
Per common share data | ||||||||
Earnings | $ | 1.93 | $ | 1.44 | ||||
Diluted earnings | 1.91 | 1.36 | ||||||
Dividends paid | 0.39 | 0.27 | ||||||
Book value | 24.33 | 23.87 | ||||||
Tangible book value (1) | 17.23 | 17.18 | ||||||
Market price per share of common stock | ||||||||
Closing | $ | 29.46 | $ | 25.34 | ||||
High closing | 32.84 | 25.50 | ||||||
Low closing | 27.78 | 22.05 | ||||||
Market capitalization | $ | 290,424 | $ | 264,992 |
(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 GAAP financial measures, see Non-GAAP Reconciliations on page 52. |
Bank of America8 |
Table 7 | Quarterly Average Balances and Interest Rates - FTE Basis | |||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||
(Dollars in millions) | Third Quarter 2018 | Third Quarter 2017 | ||||||||||||||||||||
Earning assets | ||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 144,411 | $ | 523 | 1.44 | % | $ | 127,835 | $ | 323 | 1.00 | % | ||||||||||
Time deposits placed and other short-term investments | 8,328 | 48 | 2.26 | 12,503 | 68 | 2.17 | ||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell (1) | 241,426 | 799 | 1.31 | 223,585 | 487 | 0.86 | ||||||||||||||||
Trading account assets | 128,896 | 1,195 | 3.68 | 124,068 | 1,125 | 3.60 | ||||||||||||||||
Debt securities | 445,813 | 3,014 | 2.66 | 436,886 | 2,670 | 2.44 | ||||||||||||||||
Loans and leases (2): | ||||||||||||||||||||||
Residential mortgage | 209,460 | 1,857 | 3.54 | 199,240 | 1,724 | 3.46 | ||||||||||||||||
Home equity | 53,050 | 656 | 4.91 | 61,225 | 664 | 4.31 | ||||||||||||||||
U.S. credit card | 94,710 | 2,435 | 10.20 | 91,602 | 2,253 | 9.76 | ||||||||||||||||
Direct/Indirect and other consumer (3) | 91,828 | 787 | 3.40 | 96,272 | 706 | 2.91 | ||||||||||||||||
Total consumer | 449,048 | 5,735 | 5.08 | 448,339 | 5,347 | 4.74 | ||||||||||||||||
U.S. commercial | 303,680 | 3,034 | 3.97 | 293,203 | 2,542 | 3.44 | ||||||||||||||||
Non-U.S. commercial | 96,019 | 831 | 3.43 | 95,725 | 676 | 2.80 | ||||||||||||||||
Commercial real estate (4) | 60,754 | 682 | 4.45 | 59,044 | 552 | 3.71 | ||||||||||||||||
Commercial lease financing | 21,235 | 173 | 3.25 | 21,818 | 160 | 2.92 | ||||||||||||||||
Total commercial | 481,688 | 4,720 | 3.89 | 469,790 | 3,930 | 3.32 | ||||||||||||||||
Total loans and leases | 930,736 | 10,455 | 4.46 | 918,129 | 9,277 | 4.02 | ||||||||||||||||
Other earning assets (1) | 72,827 | 1,082 | 5.91 | 76,496 | 849 | 4.41 | ||||||||||||||||
Total earning assets (1,5) | 1,972,437 | 17,116 | 3.45 | 1,919,502 | 14,799 | 3.06 | ||||||||||||||||
Cash and due from banks | 25,639 | 28,990 | ||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 319,753 | 322,612 | ||||||||||||||||||||
Total assets | $ | 2,317,829 | $ | 2,271,104 | ||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||||||||||
Savings | $ | 53,929 | $ | 1 | 0.01 | % | $ | 54,328 | $ | 1 | 0.01 | % | ||||||||||
NOW and money market deposit accounts | 680,285 | 737 | 0.43 | 631,270 | 333 | 0.21 | ||||||||||||||||
Consumer CDs and IRAs | 39,160 | 40 | 0.41 | 44,239 | 31 | 0.27 | ||||||||||||||||
Negotiable CDs, public funds and other deposits | 54,192 | 275 | 2.01 | 38,119 | 101 | 1.05 | ||||||||||||||||
Total U.S. interest-bearing deposits | 827,566 | 1,053 | 0.50 | 767,956 | 466 | 0.24 | ||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||
Banks located in non-U.S. countries | 2,353 | 12 | 2.06 | 2,259 | 5 | 0.97 | ||||||||||||||||
Governments and official institutions | 709 | — | 0.01 | 1,012 | 3 | 1.04 | ||||||||||||||||
Time, savings and other | 63,179 | 165 | 1.04 | 63,716 | 150 | 0.93 | ||||||||||||||||
Total non-U.S. interest-bearing deposits | 66,241 | 177 | 1.07 | 66,987 | 158 | 0.93 | ||||||||||||||||
Total interest-bearing deposits | 893,807 | 1,230 | 0.55 | 834,943 | 624 | 0.30 | ||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities (1) | 264,168 | 1,526 | 2.30 | 270,364 | 846 | 1.24 | ||||||||||||||||
Trading account liabilities | 50,904 | 335 | 2.60 | 48,390 | 319 | 2.62 | ||||||||||||||||
Long-term debt | 233,475 | 2,004 | 3.42 | 227,309 | 1,609 | 2.82 | ||||||||||||||||
Total interest-bearing liabilities (1,5) | 1,442,354 | 5,095 | 1.40 | 1,381,006 | 3,398 | 0.98 | ||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||
Noninterest-bearing deposits | 422,538 | 436,768 | ||||||||||||||||||||
Other liabilities (1) | 188,284 | 180,092 | ||||||||||||||||||||
Shareholders’ equity | 264,653 | 273,238 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,317,829 | $ | 2,271,104 | ||||||||||||||||||
Net interest spread | 2.05 | % | 2.08 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.37 | 0.28 | ||||||||||||||||||||
Net interest income/yield on earning assets | $ | 12,021 | 2.42 | % | $ | 11,401 | 2.36 | % |
(1) | Certain prior-period amounts have been reclassified to conform to current period presentation. |
(2) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. PCI loans are recorded at fair value upon acquisition and accrete interest income over the estimated life of the loan. |
(3) | Includes non-U.S. consumer loans of $2.8 billion and $2.9 billion in the third quarter of 2018 and 2017. |
(4) | Includes U.S. commercial real estate loans of $56.8 billion and $55.2 billion, and non-U.S. commercial real estate loans of $4.0 billion and $3.8 billion in the third quarter of 2018 and 2017, respectively. |
(5) | Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by $57 million and $7 million in the third quarter of 2018 and 2017. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on the underlying liabilities by $68 million and $(346) million in the third quarter of 2018 and 2017. For more information, see Interest Rate Risk Management for the Banking Book on page 49. |
Bank of America9 |
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 | |||||||||||||||||
Nine Months Ended September 30 | ||||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | ||||||||||||||||||||
Earning assets | ||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 143,229 | $ | 1,432 | 1.34 | % | $ | 127,000 | $ | 786 | 0.83 | % | ||||||||||
Time deposits placed and other short-term investments | 9,700 | 157 | 2.16 | 11,820 | 173 | 1.96 | ||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell (1) | 247,183 | 2,130 | 1.15 | 222,255 | 1,278 | 0.77 | ||||||||||||||||
Trading account assets | 130,931 | 3,574 | 3.65 | 128,547 | 3,435 | 3.57 | ||||||||||||||||
Debt securities | 436,080 | 8,729 | 2.62 | 432,775 | 7,875 | 2.42 | ||||||||||||||||
Loans and leases (2): | ||||||||||||||||||||||
Residential mortgage | 206,808 | 5,437 | 3.51 | 196,288 | 5,082 | 3.45 | ||||||||||||||||
Home equity | 54,941 | 1,939 | 4.72 | 63,339 | 1,967 | 4.15 | ||||||||||||||||
U.S. credit card | 94,222 | 7,046 | 10.00 | 90,238 | 6,492 | 9.62 | ||||||||||||||||
Non-U.S. credit card (3) | — | — | — | 5,253 | 358 | 9.12 | ||||||||||||||||
Direct/Indirect and other consumer (4) | 93,568 | 2,281 | 3.26 | 95,964 | 2,010 | 2.80 | ||||||||||||||||
Total consumer | 449,539 | 16,703 | 4.96 | 451,082 | 15,909 | 4.71 | ||||||||||||||||
U.S. commercial | 302,981 | 8,734 | 3.85 | 290,632 | 7,167 | 3.30 | ||||||||||||||||
Non-U.S. commercial | 98,246 | 2,385 | 3.25 | 93,762 | 1,886 | 2.69 | ||||||||||||||||
Commercial real estate (5) | 60,218 | 1,915 | 4.25 | 58,340 | 1,545 | 3.54 | ||||||||||||||||
Commercial lease financing | 21,501 | 516 | 3.20 | 21,862 | 547 | 3.33 | ||||||||||||||||
Total commercial | 482,946 | 13,550 | 3.75 | 464,596 | 11,145 | 3.21 | ||||||||||||||||
Total loans and leases (3) | 932,485 | 30,253 | 4.34 | 915,678 | 27,054 | 3.95 | ||||||||||||||||
Other earning assets (1) | 78,431 | 3,113 | 5.31 | 74,554 | 2,322 | 4.16 | ||||||||||||||||
Total earning assets (1,6) | 1,978,039 | 49,388 | 3.34 | 1,912,629 | 42,923 | 3.00 | ||||||||||||||||
Cash and due from banks | 25,746 | 27,955 | ||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 318,314 | 316,909 | ||||||||||||||||||||
Total assets | $ | 2,322,099 | $ | 2,257,493 | ||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||||||||||
Savings | $ | 54,800 | $ | 4 | 0.01 | % | $ | 53,679 | $ | 4 | 0.01 | % | ||||||||||
NOW and money market deposit accounts | 667,851 | 1,679 | 0.34 | 622,920 | 512 | 0.11 | ||||||||||||||||
Consumer CDs and IRAs | 40,134 | 109 | 0.36 | 45,535 | 92 | 0.27 | ||||||||||||||||
Negotiable CDs, public funds and other deposits | 46,507 | 629 | 1.81 | 35,968 | 221 | 0.82 | ||||||||||||||||
Total U.S. interest-bearing deposits | 809,292 | 2,421 | 0.40 | 758,102 | 829 | 0.15 | ||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||
Banks located in non-U.S. countries | 2,309 | 32 | 1.88 | 2,643 | 16 | 0.82 | ||||||||||||||||
Governments and official institutions | 990 | — | 0.01 | 1,002 | 7 | 0.92 | ||||||||||||||||
Time, savings and other | 65,264 | 480 | 0.98 | 60,747 | 400 | 0.88 | ||||||||||||||||
Total non-U.S. interest-bearing deposits | 68,563 | 512 | 1.00 | 64,392 | 423 | 0.88 | ||||||||||||||||
Total interest-bearing deposits | 877,855 | 2,933 | 0.45 | 822,494 | 1,252 | 0.20 | ||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities (1) | 272,192 | 4,123 | 2.03 | 275,731 | 2,244 | 1.09 | ||||||||||||||||
Trading account liabilities | 52,815 | 1,040 | 2.63 | 44,128 | 890 | 2.70 | ||||||||||||||||
Long-term debt | 230,719 | 5,709 | 3.30 | 224,287 | 4,658 | 2.77 | ||||||||||||||||
Total interest-bearing liabilities (1,6) | 1,433,581 | 13,805 | 1.29 | 1,366,640 | 9,044 | 0.88 | ||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||
Noninterest-bearing deposits | 426,972 | 439,288 | ||||||||||||||||||||
Other liabilities (1) | 196,444 | 180,907 | ||||||||||||||||||||
Shareholders’ equity | 265,102 | 270,658 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,322,099 | $ | 2,257,493 | ||||||||||||||||||
Net interest spread | 2.05 | % | 2.12 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.34 | 0.24 | ||||||||||||||||||||
Net interest income/yield on earning assets | $ | 35,583 | 2.39 | % | $ | 33,879 | 2.36 | % |
(1) | Certain prior-period amounts have been reclassified to conform to current period presentation. |
(2) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. PCI loans were recorded at fair value upon acquisition and accrete interest income over the estimated life of the loan. |
(3) | The nine months ended September 30, 2017 includes assets of the Corporation’s non-U.S. consumer credit card business, which was sold during the second quarter of 2017. |
(4) | Includes non-U.S. consumer loans of $2.9 billion in both the |
(5) | Includes |
(6) |
Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by $ |
Bank of America |
Deposits | Consumer Lending | Total Consumer Banking | Deposits | Consumer Lending | Total Consumer Banking | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | % Change | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | % Change | ||||||||||||||||||||||||||||||||
Net interest income (FTE basis) | Net interest income (FTE basis) | $ | 3,741 | $ | 3,063 | $ | 2,769 | $ | 2,718 | $ | 6,510 | $ | 5,781 | 13 | % | Net interest income (FTE basis) | $ | 4,068 | $ | 3,440 | $ | 2,795 | $ | 2,772 | $ | 6,863 | $ | 6,212 | 10 | % | ||||||||||||||||||
Noninterest income: | Noninterest income: | Noninterest income: | ||||||||||||||||||||||||||||||||||||||||||||||
Card income | Card income | 2 | 2 | 1,277 | 1,222 | 1,279 | 1,224 | 4 | Card income | 2 | 1 | 1,279 | 1,242 | 1,281 | 1,243 | 3 | ||||||||||||||||||||||||||||||||
Service charges | Service charges | 1,044 | 1,050 | — | — | 1,044 | 1,050 | (1 | ) | Service charges | 1,097 | 1,082 | 1 | — | 1,098 | 1,082 | 1 | |||||||||||||||||||||||||||||||
All other income | All other income | 108 | 102 | 91 | 127 | 199 | 229 | (13 | ) | All other income | 100 | 97 | 61 | 140 | 161 | 237 | (32 | ) | ||||||||||||||||||||||||||||||
Total noninterest income | Total noninterest income | 1,154 | 1,154 | 1,368 | 1,349 | 2,522 | 2,503 | 1 | Total noninterest income | 1,199 | 1,180 | 1,341 | 1,382 | 2,540 | 2,562 | (1 | ) | |||||||||||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | Total revenue, net of interest expense (FTE basis) | 4,895 | 4,217 | 4,137 | 4,067 | 9,032 | 8,284 | 9 | Total revenue, net of interest expense (FTE basis) | 5,267 | 4,620 | 4,136 | 4,154 | 9,403 | 8,774 | 7 | ||||||||||||||||||||||||||||||||
Provision for credit losses | Provision for credit losses | 41 | 55 | 894 | 783 | 935 | 838 | 12 | Provision for credit losses | 48 | 47 | 822 | 920 | 870 | 967 | (10 | ) | |||||||||||||||||||||||||||||||
Noninterest expense | Noninterest expense | 2,651 | 2,527 | 1,829 | 1,883 | 4,480 | 4,410 | 2 | Noninterest expense | 2,618 | 2,617 | 1,737 | 1,844 | 4,355 | 4,461 | (2 | ) | |||||||||||||||||||||||||||||||
Income before income taxes (FTE basis) | Income before income taxes (FTE basis) | 2,203 | 1,635 | 1,414 | 1,401 | 3,617 | 3,036 | 19 | Income before income taxes (FTE basis) | 2,601 | 1,956 | 1,577 | 1,390 | 4,178 | 3,346 | 25 | ||||||||||||||||||||||||||||||||
Income tax expense (FTE basis) | Income tax expense (FTE basis) | 561 | 616 | 361 | 528 | 922 | 1,144 | (19 | ) | Income tax expense (FTE basis) | 663 | 737 | 402 | 523 | 1,065 | 1,260 | (15 | ) | ||||||||||||||||||||||||||||||
Net income | Net income | $ | 1,642 | $ | 1,019 | $ | 1,053 | $ | 873 | $ | 2,695 | $ | 1,892 | 42 | Net income | $ | 1,938 | $ | 1,219 | $ | 1,175 | $ | 867 | $ | 3,113 | $ | 2,086 | 49 | ||||||||||||||||||||
Effective tax rate (1) | 25.5 | % | 37.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate (FTE basis) (1) | Effective tax rate (FTE basis) (1) | 25.5 | % | 37.7 | % | |||||||||||||||||||||||||||||||||||||||||||
Net interest yield (FTE basis) | Net interest yield (FTE basis) | 2.25 | % | 1.96 | % | 4.09 | % | 4.34 | % | 3.73 | 3.50 | Net interest yield (FTE basis) | 2.35 | % | 2.08 | % | 3.95 | % | 4.16 | % | 3.78 | 3.56 | ||||||||||||||||||||||||||
Return on average allocated capital | Return on average allocated capital | 55 | 34 | 17 | 14 | 30 | 21 | Return on average allocated capital | 64 | 40 | 19 | 14 | 33 | 22 | ||||||||||||||||||||||||||||||||||
Efficiency ratio (FTE basis) | Efficiency ratio (FTE basis) | 54.15 | 59.94 | 44.21 | 46.29 | 49.60 | 53.24 | Efficiency ratio (FTE basis) | 49.70 | 56.65 | 41.97 | 44.40 | 46.30 | 50.85 | ||||||||||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||
Average | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | % Change | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | % Change | ||||||||||||||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 5,170 | $ | 4,979 | $ | 274,387 | $ | 252,966 | $ | 279,557 | $ | 257,945 | 8 | % | Total loans and leases | $ | 5,269 | $ | 5,079 | $ | 279,725 | $ | 263,731 | $ | 284,994 | $ | 268,810 | 6 | % | ||||||||||||||||||
Total earning assets (2) | Total earning assets (2) | 673,641 | 634,704 | 274,748 | 254,066 | 707,754 | 668,865 | 6 | Total earning assets (2) | 685,662 | 657,036 | 280,637 | 264,665 | 720,652 | 692,122 | 4 | ||||||||||||||||||||||||||||||||
Total assets (2) | Total assets (2) | 701,418 | 661,769 | 285,864 | 265,783 | 746,647 | 707,647 | 6 | Total assets (2) | 713,942 | 684,642 | 291,370 | 276,014 | 759,665 | 731,077 | 4 | ||||||||||||||||||||||||||||||||
Total deposits | Total deposits | 668,983 | 629,337 | 5,368 | 6,257 | 674,351 | 635,594 | 6 | Total deposits | 681,726 | 652,286 | 5,804 | 6,688 | 687,530 | 658,974 | 4 | ||||||||||||||||||||||||||||||||
Allocated capital | Allocated capital | 12,000 | 12,000 | 25,000 | 25,000 | 37,000 | 37,000 | — | Allocated capital | 12,000 | 12,000 | 25,000 | 25,000 | 37,000 | 37,000 | — | ||||||||||||||||||||||||||||||||
Period end | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | % Change | |||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 5,111 | $ | 5,143 | $ | 273,944 | $ | 275,330 | $ | 279,055 | $ | 280,473 | (1 | )% | ||||||||||||||||||||||||||||||||||
Total earning assets (2) | 700,420 | 675,485 | 274,977 | 275,742 | 735,247 | 709,832 | 4 | |||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 728,063 | 703,330 | 286,343 | 287,390 | 774,256 | 749,325 | 3 | |||||||||||||||||||||||||||||||||||||||||
Total deposits | 695,514 | 670,802 | 5,974 | 5,728 | 701,488 | 676,530 | 4 | |||||||||||||||||||||||||||||||||||||||||
(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. |
11Bank of America |
Deposits | Consumer Lending | Total Consumer Banking | ||||||||||||||||||||||
Nine Months Ended September 30 | ||||||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | % Change | |||||||||||||||||
Net interest income (FTE basis) | $ | 11,728 | $ | 9,804 | $ | 8,265 | $ | 8,149 | $ | 19,993 | $ | 17,953 | 11 | % | ||||||||||
Noninterest income: | ||||||||||||||||||||||||
Card income | 6 | 6 | 3,896 | 3,710 | 3,902 | 3,716 | 5 | |||||||||||||||||
Service charges | 3,213 | 3,193 | 1 | 1 | 3,214 | 3,194 | 1 | |||||||||||||||||
All other income | 310 | 294 | 227 | 410 | 537 | 704 | (24 | ) | ||||||||||||||||
Total noninterest income | 3,529 | 3,493 | 4,124 | 4,121 | 7,653 | 7,614 | 1 | |||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 15,257 | 13,297 | 12,389 | 12,270 | 27,646 | 25,567 | 8 | |||||||||||||||||
Provision for credit losses | 135 | 148 | 2,614 | 2,491 | 2,749 | 2,639 | 4 | |||||||||||||||||
Noninterest expense | 7,907 | 7,708 | 5,324 | 5,578 | 13,231 | 13,286 | — | |||||||||||||||||
Income before income taxes (FTE basis) | 7,215 | 5,441 | 4,451 | 4,201 | 11,666 | 9,642 | 21 | |||||||||||||||||
Income tax expense (FTE basis) | 1,840 | 2,052 | 1,135 | 1,584 | 2,975 | 3,636 | (18 | ) | ||||||||||||||||
Net income | $ | 5,375 | $ | 3,389 | $ | 3,316 | $ | 2,617 | $ | 8,691 | $ | 6,006 | 45 | |||||||||||
Effective tax rate (FTE basis) (1) | 25.5 | % | 37.7 | % | ||||||||||||||||||||
Net interest yield (FTE basis) | 2.30 | % | 2.02 | % | 3.99 | % | 4.21 | % | 3.73 | 3.52 | ||||||||||||||
Return on average allocated capital | 60 | 38 | 18 | 14 | 31 | 22 | ||||||||||||||||||
Efficiency ratio (FTE basis) | 51.83 | 57.97 | 42.97 | 45.46 | 47.86 | 51.96 | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Nine Months Ended September 30 | ||||||||||||||||||||||||
Average | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | % Change | |||||||||||||||||
Total loans and leases | $ | 5,211 | $ | 5,025 | $ | 276,556 | $ | 257,779 | $ | 281,767 | $ | 262,804 | 7 | % | ||||||||||
Total earning assets (2) | 681,922 | 647,887 | 277,295 | 258,659 | 716,475 | 682,436 | 5 | |||||||||||||||||
Total assets (2) | 709,997 | 675,159 | 288,224 | 270,196 | 755,479 | 721,245 | 5 | |||||||||||||||||
Total deposits | 677,684 | 642,783 | 5,595 | 6,421 | 683,279 | 649,204 | 5 | |||||||||||||||||
Allocated capital | 12,000 | 12,000 | 25,000 | 25,000 | 37,000 | 37,000 | — | |||||||||||||||||
Period end | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | % Change | |||||||||||||||||
Total loans and leases | $ | 5,276 | $ | 5,143 | $ | 282,001 | $ | 275,330 | $ | 287,277 | $ | 280,473 | 2 | % | ||||||||||
Total earning assets (2) | 690,968 | 675,485 | 282,921 | 275,742 | 726,494 | 709,832 | 2 | |||||||||||||||||
Total assets (2) | 719,126 | 703,330 | 293,766 | 287,390 | 765,497 | 749,325 | 2 | |||||||||||||||||
Total deposits | 686,723 | 670,802 | 6,047 | 5,728 | 692,770 | 676,530 | 2 |
Bank of America12 |
Key Statistics – Deposits | ||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Total deposit spreads (excludes noninterest costs) (1) | 2.00 | % | 1.67 | % | 2.19 | % | 1.88 | % | 2.10 | % | 1.82 | % | ||||||||
Period End | ||||||||||||||||||||
Period end | ||||||||||||||||||||
Client brokerage assets (in millions) | $ | 182,110 | $ | 153,786 | $ | 203,882 | $ | 167,274 | ||||||||||||
Active digital banking users (units in thousands) (2) | 35,518 | 33,702 | 36,174 | 34,472 | ||||||||||||||||
Active mobile banking users (units in thousands) | 24,801 | 22,217 | 25,990 | 23,572 | ||||||||||||||||
Financial centers | 4,435 | 4,559 | 4,385 | 4,515 | ||||||||||||||||
ATMs | 16,011 | 15,939 | 16,089 | 15,973 |
(1) | Includes deposits held in Consumer Lending. |
(2) | Digital users represents mobile and/or online users across consumer |
13Bank of America |
Key Statistics – Consumer Lending | Key Statistics – Consumer Lending | Key Statistics – Consumer Lending | ||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Total U.S. credit card (1) | ||||||||||||||||||||||
Gross interest yield | 9.93 | % | 9.55 | % | 10.20 | % | 9.76 | % | 10.00 | % | 9.62 | % | ||||||||||
Risk-adjusted margin | 8.32 | 8.89 | 8.15 | 8.63 | 8.18 | 8.64 | ||||||||||||||||
New accounts (in thousands) | 1,194 | 1,184 | 1,116 | 1,315 | 3,496 | 3,801 | ||||||||||||||||
Purchase volumes | $ | 61,347 | $ | 55,321 | $ | 66,490 | $ | 62,244 | $ | 194,658 | $ | 179,230 | ||||||||||
Debit card purchase volumes | $ | 76,052 | $ | 70,611 | $ | 79,920 | $ | 74,769 | $ | 236,669 | $ | 220,729 |
(1) | In addition to the U.S. credit card portfolio in Consumer Banking, the remaining U.S. credit card portfolio is in GWIM. |
Key Statistics - Loan Production (1) | ||||||||||||||||||||||
Key Statistics – Loan Production (1) | Key Statistics – Loan Production (1) | |||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Total (2): | ||||||||||||||||||||||
First mortgage | $ | 9,424 | $ | 11,442 | $ | 10,682 | $ | 13,183 | $ | 31,778 | $ | 37,876 | ||||||||||
Home equity | 3,749 | 4,053 | 3,399 | 4,133 | 11,229 | 12,871 | ||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||
First mortgage | $ | 5,964 | $ | 7,629 | $ | 7,208 | $ | 9,044 | $ | 21,053 | $ | 25,679 | ||||||||||
Home equity | 3,345 | 3,667 | 3,053 | 3,722 | 10,042 | 11,604 |
(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. |
Bank of America14 |
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | % Change | (Dollars in millions) | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||
Net interest income (FTE basis) | Net interest income (FTE basis) | $ | 1,594 | $ | 1,560 | 2 | % | Net interest income (FTE basis) | $ | 1,536 | $ | 1,496 | 3 | % | $ | 4,673 | $ | 4,653 | — | % | |||||||||||||
Noninterest income: | Noninterest income: | Noninterest income: | |||||||||||||||||||||||||||||||
Investment and brokerage services | Investment and brokerage services | 3,040 | 2,791 | 9 | Investment and brokerage services | 3,004 | 2,854 | 5 | 8,981 | 8,474 | 6 | ||||||||||||||||||||||
All other income | All other income | 222 | 241 | (8 | ) | All other income | 243 | 270 | (10 | ) | 694 | 780 | (11 | ) | |||||||||||||||||||
Total noninterest income | Total noninterest income | 3,262 | 3,032 | 8 | Total noninterest income | 3,247 | 3,124 | 4 | 9,675 | 9,254 | 5 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | Total revenue, net of interest expense (FTE basis) | 4,856 | 4,592 | 6 | Total revenue, net of interest expense (FTE basis) | 4,783 | 4,620 | 4 | 14,348 | 13,907 | 3 | ||||||||||||||||||||||
Provision for credit losses | Provision for credit losses | 38 | 23 | 65 | Provision for credit losses | 13 | 16 | (19 | ) | 63 | 50 | 26 | |||||||||||||||||||||
Noninterest expense | Noninterest expense | 3,428 | 3,329 | 3 | Noninterest expense | 3,414 | 3,369 | 1 | 10,235 | 10,085 | 1 | ||||||||||||||||||||||
Income before income taxes (FTE basis) | Income before income taxes (FTE basis) | 1,390 | 1,240 | 12 | Income before income taxes (FTE basis) | 1,356 | 1,235 | 10 | 4,050 | 3,772 | 7 | ||||||||||||||||||||||
Income tax expense (FTE basis) | Income tax expense (FTE basis) | 355 | 467 | (24 | ) | Income tax expense (FTE basis) | 346 | 465 | (26 | ) | 1,033 | 1,422 | (27 | ) | |||||||||||||||||||
Net income | Net income | $ | 1,035 | $ | 773 | 34 | Net income | $ | 1,010 | $ | 770 | 31 | $ | 3,017 | $ | 2,350 | 28 | ||||||||||||||||
Effective tax rate | 25.5 | % | 37.7 | % | |||||||||||||||||||||||||||||
Effective tax rate (FTE basis) | Effective tax rate (FTE basis) | 25.5 | % | 37.7 | % | 25.5 | % | 37.7 | % | ||||||||||||||||||||||||
Net interest yield (FTE basis) | Net interest yield (FTE basis) | 2.46 | 2.28 | Net interest yield (FTE basis) | 2.38 | 2.29 | 2.42 | 2.32 | |||||||||||||||||||||||||
Return on average allocated capital | Return on average allocated capital | 29 | 22 | Return on average allocated capital | 28 | 22 | 28 | 23 | |||||||||||||||||||||||||
Efficiency ratio (FTE basis) | Efficiency ratio (FTE basis) | 70.60 | 72.51 | Efficiency ratio (FTE basis) | 71.40 | 72.91 | 71.34 | 72.52 | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
Average | Average | 2018 | 2017 | % Change | Average | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 159,095 | $ | 148,405 | 7 | % | Total loans and leases | $ | 161,869 | $ | 154,333 | 5 | % | $ | 160,609 | $ | 151,205 | 6 | % | |||||||||||||
Total earning assets | Total earning assets | 262,775 | 277,989 | (5 | ) | Total earning assets | 256,285 | 259,564 | (1 | ) | 258,044 | 267,732 | (4 | ) | |||||||||||||||||||
Total assets | Total assets | 279,716 | 293,432 | (5 | ) | Total assets | 273,581 | 275,570 | (1 | ) | 275,182 | 283,324 | (3 | ) | |||||||||||||||||||
Total deposits | Total deposits | 243,077 | 257,386 | (6 | ) | Total deposits | 238,291 | 239,647 | (1 | ) | 239,176 | 247,389 | (3 | ) | |||||||||||||||||||
Allocated capital | Allocated capital | 14,500 | 14,000 | 4 | Allocated capital | 14,500 | 14,000 | 4 | 14,500 | 14,000 | 4 | ||||||||||||||||||||||
Period end | Period end | March 31 2018 | December 31 2017 | % Change | Period end | September 30 2018 | December 31 2017 | % Change | |||||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 159,636 | $ | 159,378 | — | % | Total loans and leases | $ | 162,191 | $ | 159,378 | 2 | % | |||||||||||||||||||
Total earning assets | Total earning assets | 262,430 | 267,026 | (2 | ) | Total earning assets | 258,561 | 267,026 | (3 | ) | |||||||||||||||||||||||
Total assets | Total assets | 279,331 | 284,321 | (2 | ) | Total assets | 276,146 | 284,321 | (3 | ) | |||||||||||||||||||||||
Total deposits | Total deposits | 241,531 | 246,994 | (2 | ) | Total deposits | 239,654 | 246,994 | (3 | ) |
Key Indicators and Metrics | |||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||
(Dollars in millions, except as noted) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Revenue by Business | |||||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 3,996 | $ | 3,782 | $ | 3,924 | $ | 3,796 | $ | 11,780 | $ | 11,452 | |||||||||||
U.S. Trust | 860 | 809 | 859 | 822 | 2,567 | 2,450 | |||||||||||||||||
Other | — | 1 | — | 2 | 1 | 5 | |||||||||||||||||
Total revenue, net of interest expense (FTE basis) | $ | 4,856 | $ | 4,592 | $ | 4,783 | $ | 4,620 | $ | 14,348 | $ | 13,907 | |||||||||||
Client Balances by Business, at period end | |||||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 2,284,803 | $ | 2,167,536 | $ | 2,385,479 | $ | 2,245,499 | |||||||||||||||
U.S. Trust | 440,683 | 417,841 | 455,894 | 430,684 | |||||||||||||||||||
Total client balances | $ | 2,725,486 | $ | 2,585,377 | $ | 2,841,373 | $ | 2,676,183 | |||||||||||||||
Client Balances by Type, at period end | |||||||||||||||||||||||
Assets under management | $ | 1,084,717 | $ | 946,778 | $ | 1,144,375 | $ | 1,036,048 | |||||||||||||||
Brokerage and other assets | 1,236,799 | 1,232,195 | 1,292,219 | 1,243,858 | |||||||||||||||||||
Deposits | 241,531 | 254,595 | 239,654 | 237,771 | |||||||||||||||||||
Loans and leases (1) | 162,439 | 151,809 | 165,125 | 158,506 | |||||||||||||||||||
Total client balances | $ | 2,725,486 | $ | 2,585,377 | $ | 2,841,373 | $ | 2,676,183 | |||||||||||||||
Assets Under Management Rollforward | |||||||||||||||||||||||
Assets under management, beginning of period | $ | 1,080,747 | $ | 886,148 | $ | 1,101,001 | $ | 990,709 | $ | 1,080,747 | $ | 886,148 | |||||||||||
Net client flows | 24,240 | 29,214 | 7,572 | 20,749 | 42,587 | 77,479 | |||||||||||||||||
Market valuation/other | (20,270 | ) | 31,416 | 35,802 | 24,590 | 21,041 | 72,421 | ||||||||||||||||
Total assets under management, end of period | $ | 1,084,717 | $ | 946,778 | $ | 1,144,375 | $ | 1,036,048 | $ | 1,144,375 | $ | 1,036,048 | |||||||||||
Associates, at period end (2) | |||||||||||||||||||||||
Number of financial advisors | 17,367 | 16,678 | 17,456 | 17,221 | |||||||||||||||||||
Total wealth advisors, including financial advisors | 19,276 | 18,538 | 19,344 | 19,108 | |||||||||||||||||||
Total primary sales professionals, including financial advisors and wealth advisors | 20,398 | 19,536 | 20,437 | 20,089 | |||||||||||||||||||
Merrill Lynch Global Wealth Management Metric | |||||||||||||||||||||||
Financial advisor productivity (3) (in thousands) | $ | 1,038 | $ | 993 | $ | 1,035 | $ | 994 | $ | 1,030 | $ | 1,009 | |||||||||||
U.S. Trust Metric, at period end | |||||||||||||||||||||||
Primary sales professionals | 1,737 | 1,657 | 1,711 | 1,696 |
(1) | Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet. |
(2) | Includes financial advisors in the Consumer Banking segment of |
(3) | Financial advisor productivity is defined as annualized MLGWM total revenue, excluding the allocation of certain asset and liability management (ALM) activities, divided by the total average number of financial advisors (excluding financial advisors in the Consumer Banking segment). |
Net Migration Summary | |||||||
Three Months Ended March 31 | |||||||
(Dollars in millions) | 2018 | 2017 | |||||
Total deposits, net – to (from) GWIM | $ | 1,135 | $ | (97 | ) | ||
Total loans, net – from GWIM | (3 | ) | (126 | ) | |||
Total brokerage, net – to (from) GWIM | (48 | ) | 94 |
Bank of America |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Three Months Ended March 31 | (Dollars in millions) | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||||
2018 | 2017 | % Change | |||||||||||||||||||||||||||||||
Net interest income (FTE basis) | Net interest income (FTE basis) | $ | 2,640 | $ | 2,602 | 1 | % | Net interest income (FTE basis) | $ | 2,706 | $ | 2,642 | 2 | % | $ | 8,057 | $ | 7,786 | 3 | % | |||||||||||||
Noninterest income: | Noninterest income: | Noninterest income: | |||||||||||||||||||||||||||||||
Service charges | Service charges | 763 | 765 | — | Service charges | 754 | 776 | (3 | ) | 2,285 | 2,351 | (3 | ) | ||||||||||||||||||||
Investment banking fees | Investment banking fees | 744 | 925 | (20 | ) | Investment banking fees | 643 | 806 | (20 | ) | 2,130 | 2,661 | (20 | ) | |||||||||||||||||||
All other income | All other income | 787 | 663 | 19 | All other income | 635 | 763 | (17 | ) | 2,122 | 2,182 | (3 | ) | ||||||||||||||||||||
Total noninterest income | Total noninterest income | 2,294 | 2,353 | (3 | ) | Total noninterest income | 2,032 | 2,345 | (13 | ) | 6,537 | 7,194 | (9 | ) | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | Total revenue, net of interest expense (FTE basis) | 4,934 | 4,955 | — | Total revenue, net of interest expense (FTE basis) | 4,738 | 4,987 | (5 | ) | 14,594 | 14,980 | (3 | ) | ||||||||||||||||||||
Provision for credit losses | Provision for credit losses | 16 | 17 | (6 | ) | Provision for credit losses | (70 | ) | 48 | n/m | (77 | ) | 80 | n/m | |||||||||||||||||||
Noninterest expense | Noninterest expense | 2,195 | 2,163 | 1 | Noninterest expense | 2,120 | 2,119 | — | 6,471 | 6,435 | 1 | ||||||||||||||||||||||
Income before income taxes (FTE basis) | Income before income taxes (FTE basis) | 2,723 | 2,775 | (2 | ) | Income before income taxes (FTE basis) | 2,688 | 2,820 | (5 | ) | 8,200 | 8,465 | (3 | ) | |||||||||||||||||||
Income tax expense (FTE basis) | Income tax expense (FTE basis) | 707 | 1,046 | (32 | ) | Income tax expense (FTE basis) | 699 | 1,062 | (34 | ) | 2,132 | 3,192 | (33 | ) | |||||||||||||||||||
Net income | Net income | $ | 2,016 | $ | 1,729 | 17 | Net income | $ | 1,989 | $ | 1,758 | 13 | $ | 6,068 | $ | 5,273 | 15 | ||||||||||||||||
Effective tax rate | 26.0 | % | 37.7 | % | |||||||||||||||||||||||||||||
Effective tax rate (FTE basis) | Effective tax rate (FTE basis) | 26.0 | % | 37.7 | % | 26.0 | % | 37.7 | % | ||||||||||||||||||||||||
Net interest yield (FTE basis) | Net interest yield (FTE basis) | 2.96 | 2.93 | Net interest yield (FTE basis) | 2.96 | 2.94 | 2.97 | 2.91 | |||||||||||||||||||||||||
Return on average allocated capital | Return on average allocated capital | 20 | 18 | Return on average allocated capital | 19 | 17 | 20 | 18 | |||||||||||||||||||||||||
Efficiency ratio (FTE basis) | Efficiency ratio (FTE basis) | 44.47 | 43.66 | Efficiency ratio (FTE basis) | 44.79 | 42.52 | 44.34 | 42.97 | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
Average | Average | 2018 | 2017 | % Change | Average | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 351,689 | $ | 342,857 | 3 | % | Total loans and leases | $ | 352,712 | $ | 346,093 | 2 | % | $ | 353,167 | $ | 344,683 | 2 | % | |||||||||||||
Total earning assets | Total earning assets | 361,822 | 359,605 | 1 | Total earning assets | 362,316 | 357,014 | 1 | 362,910 | 357,999 | 1 | ||||||||||||||||||||||
Total assets | Total assets | 420,594 | 415,908 | 1 | Total assets | 422,255 | 414,755 | 2 | 422,041 | 414,867 | 2 | ||||||||||||||||||||||
Total deposits | Total deposits | 324,405 | 305,197 | 6 | Total deposits | 337,685 | 315,692 | 7 | 328,484 | 307,163 | 7 | ||||||||||||||||||||||
Allocated capital | Allocated capital | 41,000 | 40,000 | 3 | Allocated capital | 41,000 | 40,000 | 3 | 41,000 | 40,000 | 3 | ||||||||||||||||||||||
Period end | Period end | March 31 2018 | December 31 2017 | % Change | Period end | September 30 2018 | December 31 2017 | % Change | |||||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 355,165 | $ | 350,668 | 1 | % | Total loans and leases | $ | 352,332 | $ | 350,668 | — | % | |||||||||||||||||||
Total earning assets | Total earning assets | 365,895 | 365,560 | — | Total earning assets | 369,555 | 365,560 | 1 | |||||||||||||||||||||||||
Total assets | Total assets | 424,134 | 424,533 | — | Total assets | 430,846 | 424,533 | 1 | |||||||||||||||||||||||||
Total deposits | Total deposits | 331,238 | 329,273 | 1 | Total deposits | 350,748 | 329,273 | 7 |
17Bank of America |
Global Corporate, Global Commercial and Business Banking | Global Corporate, Global Commercial and Business Banking | Global Corporate, Global Commercial and Business Banking | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Corporate Banking | Global Commercial Banking | Business Banking | Total | Global Corporate Banking | Global Commercial Banking | Business Banking | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue (FTE basis) | Revenue (FTE basis) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Lending | Business Lending | $ | 960 | $ | 1,127 | $ | 1,025 | $ | 1,090 | $ | 99 | $ | 101 | $ | 2,084 | $ | 2,318 | |||||||||||||||||||||||||||||||||||||||||||||||
Global Transaction Services | Global Transaction Services | 914 | 840 | 814 | 758 | 244 | 217 | 1,972 | 1,815 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue, net of interest expense | Total revenue, net of interest expense | $ | 1,874 | $ | 1,967 | $ | 1,839 | $ | 1,848 | $ | 343 | $ | 318 | $ | 4,056 | $ | 4,133 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 162,249 | $ | 159,417 | $ | 174,315 | $ | 168,945 | $ | 16,127 | $ | 17,659 | $ | 352,691 | $ | 346,021 | |||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | Total deposits | 165,522 | 149,564 | 134,486 | 129,440 | 37,703 | 36,687 | 337,711 | 315,691 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Corporate Banking | Global Commercial Banking | Business Banking | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue (FTE basis) | Revenue (FTE basis) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Lending | Business Lending | $ | 1,050 | $ | 1,102 | $ | 975 | $ | 1,044 | $ | 99 | $ | 101 | $ | 2,124 | $ | 2,247 | Business Lending | $ | 3,103 | $ | 3,322 | $ | 2,974 | $ | 3,186 | $ | 297 | $ | 301 | $ | 6,374 | $ | 6,809 | ||||||||||||||||||||||||||||||
Global Transaction Services | Global Transaction Services | 882 | 797 | 816 | 707 | 232 | 197 | 1,930 | 1,701 | Global Transaction Services | 2,708 | 2,470 | 2,441 | 2,217 | 713 | 625 | 5,862 | 5,312 | ||||||||||||||||||||||||||||||||||||||||||||||
Total revenue, net of interest expense | Total revenue, net of interest expense | $ | 1,932 | $ | 1,899 | $ | 1,791 | $ | 1,751 | $ | 331 | $ | 298 | $ | 4,054 | $ | 3,948 | Total revenue, net of interest expense | $ | 5,811 | $ | 5,792 | $ | 5,415 | $ | 5,403 | $ | 1,010 | $ | 926 | $ | 12,236 | $ | 12,121 | ||||||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 162,073 | $ | 155,358 | $ | 172,360 | $ | 169,728 | $ | 17,259 | $ | 17,785 | $ | 351,692 | $ | 342,871 | Total loans and leases | $ | 162,652 | $ | 157,144 | $ | 173,788 | $ | 169,751 | $ | 16,720 | $ | 17,762 | $ | 353,160 | $ | 344,657 | ||||||||||||||||||||||||||||||
Total deposits | Total deposits | 155,644 | 146,437 | 132,357 | 122,904 | 36,410 | 35,861 | 324,411 | 305,202 | Total deposits | 159,500 | 146,627 | 132,115 | 124,446 | 36,889 | 36,092 | 328,504 | 307,165 | ||||||||||||||||||||||||||||||||||||||||||||||
Period end | Period end | Period end | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 163,563 | $ | 155,801 | $ | 174,580 | $ | 170,897 | $ | 17,008 | $ | 17,775 | $ | 355,151 | $ | 344,473 | Total loans and leases | $ | 162,004 | $ | 161,441 | $ | 174,452 | $ | 170,825 | $ | 15,880 | $ | 17,579 | $ | 352,336 | $ | 349,845 | ||||||||||||||||||||||||||||||
Total deposits | Total deposits | 165,040 | 143,080 | 129,895 | 118,435 | 36,326 | 35,653 | 331,261 | 297,168 | Total deposits | 174,709 | 147,893 | 138,425 | 135,249 | 37,640 | 36,402 | 350,774 | 319,544 |
Investment Banking Fees | |||||||||||||||
Global Banking | Total Corporation | ||||||||||||||
Three Months Ended March 31 | |||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Products | |||||||||||||||
Advisory | $ | 276 | $ | 390 | $ | 296 | $ | 405 | |||||||
Debt issuance | 356 | 412 | 827 | 926 | |||||||||||
Equity issuance | 112 | 123 | 314 | 312 | |||||||||||
Gross investment banking fees | 744 | 925 | 1,437 | 1,643 | |||||||||||
Self-led deals | (34 | ) | (23 | ) | (84 | ) | (59 | ) | |||||||
Total investment banking fees | $ | 710 | $ | 902 | $ | 1,353 | $ | 1,584 |
Bank of America |
Investment Banking Fees | |||||||||||||||||||||||||||||||
Global Banking | Total Corporation | Global Banking | Total Corporation | ||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||
Products | |||||||||||||||||||||||||||||||
Advisory | $ | 237 | $ | 321 | $ | 262 | $ | 374 | $ | 782 | $ | 1,177 | $ | 861 | $ | 1,262 | |||||||||||||||
Debt issuance | 295 | 397 | 684 | 962 | 1,018 | 1,170 | 2,385 | 2,789 | |||||||||||||||||||||||
Equity issuance | 111 | 88 | 307 | 193 | 330 | 314 | 911 | 736 | |||||||||||||||||||||||
Gross investment banking fees | 643 | 806 | 1,253 | 1,529 | 2,130 | 2,661 | 4,157 | 4,787 | |||||||||||||||||||||||
Self-led deals | (14 | ) | (18 | ) | (49 | ) | (52 | ) | (63 | ) | (89 | ) | (178 | ) | (194 | ) | |||||||||||||||
Total investment banking fees | $ | 629 | $ | 788 | $ | 1,204 | $ | 1,477 | $ | 2,067 | $ | 2,572 | $ | 3,979 | $ | 4,593 |
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | % Change | (Dollars in millions) | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||
Net interest income (FTE basis) | Net interest income (FTE basis) | $ | 870 | $ | 1,049 | (17 | )% | Net interest income (FTE basis) | $ | 754 | $ | 899 | (16 | )% | $ | 2,425 | $ | 2,812 | (14 | )% | |||||||||||||
Noninterest income: | Noninterest income: | Noninterest income: | |||||||||||||||||||||||||||||||
Investment and brokerage services | Investment and brokerage services | 488 | 531 | (8 | ) | Investment and brokerage services | 388 | 496 | (22 | ) | 1,306 | 1,548 | (16 | ) | |||||||||||||||||||
Investment banking fees | Investment banking fees | 609 | 666 | (9 | ) | Investment banking fees | 523 | 624 | (16 | ) | 1,783 | 1,879 | (5 | ) | |||||||||||||||||||
Trading account profits | Trading account profits | 2,703 | 2,177 | 24 | Trading account profits | 1,727 | 1,714 | 1 | 6,614 | 5,634 | 17 | ||||||||||||||||||||||
All other income | All other income | 116 | 285 | (59 | ) | All other income | 451 | 168 | n/m | 722 | 682 | 6 | |||||||||||||||||||||
Total noninterest income | Total noninterest income | 3,916 | 3,659 | 7 | Total noninterest income | 3,089 | 3,002 | 3 | 10,425 | 9,743 | 7 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | Total revenue, net of interest expense (FTE basis) | 4,786 | 4,708 | 2 | Total revenue, net of interest expense (FTE basis) | 3,843 | 3,901 | (1 | ) | 12,850 | 12,555 | 2 | |||||||||||||||||||||
Provision for credit losses | Provision for credit losses | (3 | ) | (17 | ) | (82 | ) | Provision for credit losses | (2 | ) | (6 | ) | (67 | ) | (6 | ) | 2 | n/m | |||||||||||||||
Noninterest expense | Noninterest expense | 2,818 | 2,757 | 2 | Noninterest expense | 2,612 | 2,711 | (4 | ) | 8,145 | 8,117 | — | |||||||||||||||||||||
Income before income taxes (FTE basis) | Income before income taxes (FTE basis) | 1,971 | 1,968 | — | Income before income taxes (FTE basis) | 1,233 | 1,196 | 3 | 4,711 | 4,436 | 6 | ||||||||||||||||||||||
Income tax expense (FTE basis) | Income tax expense (FTE basis) | 513 | 671 | (24 | ) | Income tax expense (FTE basis) | 321 | 440 | (27 | ) | 1,225 | 1,553 | (21 | ) | |||||||||||||||||||
Net income | Net income | $ | 1,458 | $ | 1,297 | 12 | Net income | $ | 912 | $ | 756 | 21 | $ | 3,486 | $ | 2,883 | 21 | ||||||||||||||||
Effective tax rate | 26.0 | % | 34.1 | % | |||||||||||||||||||||||||||||
Effective tax rate (FTE basis) | Effective tax rate (FTE basis) | 26.0 | % | 36.8 | % | 26.0 | % | 35.0 | % | ||||||||||||||||||||||||
Return on average allocated capital | Return on average allocated capital | 17 | 15 | Return on average allocated capital | 10 | 9 | 13 | 11 | |||||||||||||||||||||||||
Efficiency ratio (FTE basis) | Efficiency ratio (FTE basis) | 58.87 | 58.56 | Efficiency ratio (FTE basis) | 67.99 | 69.48 | 63.39 | 64.64 | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
Average | Average | 2018 | 2017 | % Change | Average | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||
Trading-related assets: | Trading-related assets: | Trading-related assets: | |||||||||||||||||||||||||||||||
Trading account securities | Trading account securities | $ | 210,278 | $ | 203,866 | 3 | % | Trading account securities | $ | 215,397 | $ | 216,988 | (1 | )% | $ | 211,668 | $ | 214,190 | (1 | )% | |||||||||||||
Reverse repurchases | Reverse repurchases | 123,948 | 96,835 | 28 | Reverse repurchases | 124,842 | 101,556 | 23 | 127,019 | 99,998 | 27 | ||||||||||||||||||||||
Securities borrowed | Securities borrowed | 82,376 | 81,312 | 1 | Securities borrowed | 74,648 | 81,950 | (9 | ) | 80,073 | 83,770 | (4 | ) | ||||||||||||||||||||
Derivative assets | Derivative assets | 46,567 | 40,346 | 15 | Derivative assets | 45,392 | 41,789 | 9 | 46,754 | 41,184 | 14 | ||||||||||||||||||||||
Total trading-related assets | Total trading-related assets | 463,169 | 422,359 | 10 | Total trading-related assets | 460,279 | 442,283 | 4 | 465,514 | 439,142 | 6 | ||||||||||||||||||||||
Total loans and leases | Total loans and leases | 73,763 | 70,064 | 5 | Total loans and leases | 71,231 | 72,347 | (2 | ) | 73,340 | 70,692 | 4 | |||||||||||||||||||||
Total earning assets | Total earning assets | 486,107 | 429,906 | 13 | Total earning assets | 459,073 | 446,754 | 3 | 478,455 | 444,478 | 8 | ||||||||||||||||||||||
Total assets | Total assets | 678,368 | 607,010 | 12 | Total assets | 652,481 | 642,428 | 2 | 669,688 | 631,684 | 6 | ||||||||||||||||||||||
Total deposits | Total deposits | 32,320 | 33,158 | (3 | ) | Total deposits | 30,721 | 32,125 | (4 | ) | 31,253 | 32,397 | (4 | ) | |||||||||||||||||||
Allocated capital | Allocated capital | 35,000 | 35,000 | — | Allocated capital | 35,000 | 35,000 | — | 35,000 | 35,000 | — | ||||||||||||||||||||||
Period end | Period end | March 31 2018 | December 31 2017 | % Change | Period end | September 30 2018 | December 31 2017 | % Change | |||||||||||||||||||||||||
Total trading-related assets | Total trading-related assets | $ | 450,512 | $ | 419,375 | 7 | % | Total trading-related assets | $ | 456,643 | $ | 419,375 | 9 | % | |||||||||||||||||||
Total loans and leases | Total loans and leases | 75,638 | 76,778 | (1 | ) | Total loans and leases | 73,023 | 76,778 | (5 | ) | |||||||||||||||||||||||
Total earning assets | Total earning assets | 478,857 | 449,314 | 7 | Total earning assets | 447,304 | 449,314 | — | |||||||||||||||||||||||||
Total assets | Total assets | 648,605 | 629,007 | 3 | Total assets | 646,359 | 629,013 | 3 | |||||||||||||||||||||||||
Total deposits | Total deposits | 32,301 | 34,029 | (5 | ) | Total deposits | 41,102 | 34,029 | 21 |
19Bank of America |
Sales and Trading Revenue (1, 2) | Sales and Trading Revenue (1, 2) | Sales and Trading Revenue (1, 2) | ||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Sales and trading revenue | ||||||||||||||||||||||
Fixed-income, currencies and commodities | $ | 2,614 | $ | 2,810 | $ | 1,982 | $ | 2,152 | $ | 6,702 | $ | 7,068 | ||||||||||
Equities | 1,503 | 1,089 | 990 | 977 | 3,804 | 3,170 | ||||||||||||||||
Total sales and trading revenue | $ | 4,117 | $ | 3,899 | $ | 2,972 | $ | 3,129 | $ | 10,506 | $ | 10,238 | ||||||||||
Sales and trading revenue, excluding net DVA (3) | ||||||||||||||||||||||
Fixed-income, currencies and commodities | $ | 2,536 | $ | 2,930 | $ | 2,062 | $ | 2,166 | $ | 6,888 | $ | 7,350 | ||||||||||
Equities | 1,517 | 1,099 | 1,009 | 984 | 3,832 | 3,198 | ||||||||||||||||
Total sales and trading revenue, excluding net DVA | $ | 4,053 | $ | 4,029 | $ | 3,071 | $ | 3,150 | $ | 10,720 | $ | 10,548 |
(1) | Includes FTE adjustments of $ |
(2) | Includes Global Banking sales and trading revenue of $ |
(3) | FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA |
Bank of America20 |
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | % Change | (Dollars in millions) | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||
Net interest income (FTE basis) | Net interest income (FTE basis) | $ | 144 | $ | 263 | (45 | )% | Net interest income (FTE basis) | $ | 162 | $ | 152 | 7 | % | $ | 435 | $ | 675 | (36 | )% | |||||||||||||
Noninterest loss | (477 | ) | (357 | ) | 34 | ||||||||||||||||||||||||||||
Noninterest income (loss) | Noninterest income (loss) | (1 | ) | (355 | ) | (100 | )% | (907 | ) | (94 | ) | n/m | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | Total revenue, net of interest expense (FTE basis) | (333 | ) | (94 | ) | n/m | Total revenue, net of interest expense (FTE basis) | 161 | (203 | ) | n/m | (472 | ) | 581 | n/m | ||||||||||||||||||
Provision for credit losses | Provision for credit losses | (152 | ) | (26 | ) | n/m | Provision for credit losses | (95 | ) | (191 | ) | (50 | ) | (352 | ) | (376 | ) | (6 | ) | ||||||||||||||
Noninterest expense | Noninterest expense | 976 | 1,434 | (32 | ) | Noninterest expense | 566 | 734 | (23 | ) | 2,166 | 3,546 | (39 | ) | |||||||||||||||||||
Loss before income taxes (FTE basis) | Loss before income taxes (FTE basis) | (1,157 | ) | (1,502 | ) | (23 | ) | Loss before income taxes (FTE basis) | (310 | ) | (746 | ) | (58 | ) | (2,286 | ) | (2,589 | ) | (12 | ) | |||||||||||||
Income tax benefit (FTE basis) | (871 | ) | (1,148 | ) | (24 | ) | |||||||||||||||||||||||||||
Net loss | $ | (286 | ) | $ | (354 | ) | (19 | ) | |||||||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | Income tax expense (benefit) (FTE basis) | (453 | ) | (800 | ) | (43 | ) | (1,893 | ) | (1,944 | ) | (3 | ) | ||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 143 | $ | 54 | n/m | $ | (393 | ) | $ | (645 | ) | (39 | ) | |||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
Average | 2018 | 2017 | % Change | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 67,811 | $ | 94,873 | (29 | )% | Total loans and leases | $ | 59,930 | $ | 76,546 | (22 | )% | $ | 63,602 | $ | 86,294 | (26 | )% | |||||||||||||
Total assets (1) | Total assets (1) | 200,553 | 207,652 | (3 | ) | Total assets (1) | 209,847 | 207,274 | 1 | 199,709 | 206,373 | (3 | ) | ||||||||||||||||||||
Total deposits | Total deposits | 23,115 | 25,297 | (9 | ) | Total deposits | 22,118 | 25,273 | (12 | ) | 22,635 | 25,629 | (12 | ) | |||||||||||||||||||
Period end | March 31 2018 | December 31 2017 | % Change | September 30 2018 | December 31 2017 | % Change | |||||||||||||||||||||||||||
Total loans and leases | Total loans and leases | $ | 64,584 | $ | 69,452 | (7 | )% | Total loans and leases | $ | 54,978 | $ | 69,452 | (21 | )% | |||||||||||||||||||
Total assets (1) | Total assets (1) | 202,152 | 194,048 | 4 | Total assets (1) | 219,985 | 194,042 | 13 | |||||||||||||||||||||||||
Total deposits | Total deposits | 22,106 | 22,719 | (3 | ) | Total deposits | 21,375 | 22,719 | (6 | ) |
(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 $ |
21Bank of America |
Bank of America22 |
Table 8 | Bank of America Corporation Regulatory Capital under Basel 3 (1) | |||||||||||||||||||||||||||
Table 9 | Bank of America Corporation Regulatory Capital under Basel 3 (1) | |||||||||||||||||||||||||||
Standardized Approach | Advanced Approaches | Current Regulatory Minimum (2) | 2019 Regulatory Minimum (3) | Standardized Approach | Advanced Approaches | Current Regulatory Minimum (2) | 2019 Regulatory Minimum (3) | |||||||||||||||||||||
(Dollars in millions, except as noted) | (Dollars in millions, except as noted) | March 31, 2018 | (Dollars in millions, except as noted) | September 30, 2018 | ||||||||||||||||||||||||
Risk-based capital metrics: | Risk-based capital metrics: | Risk-based capital metrics: | ||||||||||||||||||||||||||
Common equity tier 1 capital | Common equity tier 1 capital | $ | 164,828 | $ | 164,828 | Common equity tier 1 capital | $ | 164,386 | $ | 164,386 | ||||||||||||||||||
Tier 1 capital | Tier 1 capital | 188,900 | 188,900 | Tier 1 capital | 186,189 | 186,189 | ||||||||||||||||||||||
Total capital (4) | Total capital (4) | 223,772 | 215,261 | Total capital (4) | 218,159 | 209,950 | ||||||||||||||||||||||
Risk-weighted assets (in billions) | Risk-weighted assets (in billions) | 1,452 | 1,458 | Risk-weighted assets (in billions) | 1,439 | 1,424 | ||||||||||||||||||||||
Common equity tier 1 capital ratio | Common equity tier 1 capital ratio | 11.4 | % | 11.3 | % | 8.25 | % | 9.5 | % | Common equity tier 1 capital ratio | 11.4 | % | 11.5 | % | 8.25 | % | 9.5 | % | ||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 13.0 | 13.0 | 9.75 | 11.0 | Tier 1 capital ratio | 12.9 | 13.1 | 9.75 | 11.0 | ||||||||||||||||||
Total capital ratio | Total capital ratio | 15.4 | 14.8 | 11.75 | 13.0 | Total capital ratio | 15.2 | 14.7 | 11.75 | 13.0 | ||||||||||||||||||
Leverage-based metrics: | Leverage-based metrics: | Leverage-based metrics: | ||||||||||||||||||||||||||
Adjusted quarterly average assets (in billions) (5) | Adjusted quarterly average assets (in billions) (5) | $ | 2,247 | $ | 2,247 | Adjusted quarterly average assets (in billions) (5) | $ | 2,240 | $ | 2,240 | ||||||||||||||||||
Tier 1 leverage ratio | Tier 1 leverage ratio | 8.4 | % | 8.4 | % | 4.0 | 4.0 | Tier 1 leverage ratio | 8.3 | % | 8.3 | % | 4.0 | 4.0 | ||||||||||||||
SLR leverage exposure (in billions) | SLR leverage exposure (in billions) | $ | 2,794 | SLR leverage exposure (in billions) | $ | 2,788 | ||||||||||||||||||||||
SLR | SLR | 6.8 | % | 5.0 | 5.0 | SLR | 6.7 | % | 5.0 | 5.0 | ||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||
Risk-based capital metrics: | Risk-based capital metrics: | Risk-based capital metrics: | ||||||||||||||||||||||||||
Common equity tier 1 capital | Common equity tier 1 capital | $ | 168,461 | $ | 168,461 | Common equity tier 1 capital | $ | 168,461 | $ | 168,461 | ||||||||||||||||||
Tier 1 capital | Tier 1 capital | 190,189 | 190,189 | Tier 1 capital | 190,189 | 190,189 | ||||||||||||||||||||||
Total capital (4) | Total capital (4) | 224,209 | 215,311 | Total capital (4) | 224,209 | 215,311 | ||||||||||||||||||||||
Risk-weighted assets (in billions) | Risk-weighted assets (in billions) | 1,443 | 1,459 | Risk-weighted assets (in billions) | 1,443 | 1,459 | ||||||||||||||||||||||
Common equity tier 1 capital ratio | Common equity tier 1 capital ratio | 11.7 | % | 11.5 | % | 7.25 | % | 9.5 | % | Common equity tier 1 capital ratio | 11.7 | % | 11.5 | % | 7.25 | % | 9.5 | % | ||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 13.2 | 13.0 | 8.75 | 11.0 | Tier 1 capital ratio | 13.2 | 13.0 | 8.75 | 11.0 | ||||||||||||||||||
Total capital ratio | Total capital ratio | 15.5 | 14.8 | 10.75 | 13.0 | Total capital ratio | 15.5 | 14.8 | 10.75 | 13.0 | ||||||||||||||||||
Leverage-based metrics: | Leverage-based metrics: | Leverage-based metrics: | ||||||||||||||||||||||||||
Adjusted quarterly average assets (in billions) (5) | Adjusted quarterly average assets (in billions) (5) | $ | 2,223 | $ | 2,223 | Adjusted quarterly average assets (in billions) (5) | $ | 2,223 | $ | 2,223 | ||||||||||||||||||
Tier 1 leverage ratio | Tier 1 leverage ratio | 8.6 | % | 8.6 | % | 4.0 | 4.0 | Tier 1 leverage ratio | 8.6 | % | 8.6 | % | 4.0 | 4.0 | ||||||||||||||
SLR leverage exposure (in billions) | $ | 2,756 | ||||||||||||||||||||||||||
SLR | 6.9 | % | 5.0 |
(1) | Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased-in as of January 1, 2018. Prior periods are presented on a fully phased-in basis. |
(2) | The |
(3) | The 2019 regulatory minimums |
(4) | 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. |
(5) | Reflects adjusted average total assets for the three months ended |
Table 9 | Capital Composition under Basel 3 (1) | |||||||||||||||
Table 10 | Capital Composition under Basel 3 (1) | |||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | ||||||||||
Total common shareholders’ equity | Total common shareholders’ equity | $ | 241,552 | $ | 244,823 | Total common shareholders’ equity | $ | 239,832 | $ | 244,823 | ||||||
Goodwill | (68,576 | ) | (68,576 | ) | ||||||||||||
Goodwill, net of related deferred tax liabilities | Goodwill, net of related deferred tax liabilities | (68,574 | ) | (68,576 | ) | |||||||||||
Deferred tax assets arising from net operating loss and tax credit carryforwards | Deferred tax assets arising from net operating loss and tax credit carryforwards | (6,755 | ) | (6,555 | ) | Deferred tax assets arising from net operating loss and tax credit carryforwards | (6,166 | ) | (6,555 | ) | ||||||
Adjustments for amounts recorded in accumulated OCI attributed to certain cash flow hedges | 1,260 | 831 | ||||||||||||||
Intangibles, other than mortgage servicing rights and goodwill | (1,632 | ) | (1,743 | ) | ||||||||||||
Defined benefit pension fund assets | (1,189 | ) | (1,138 | ) | ||||||||||||
DVA related to liabilities and derivatives | 580 | 1,196 | ||||||||||||||
Intangibles, other than mortgage servicing rights and goodwill, net of related deferred tax liabilities | Intangibles, other than mortgage servicing rights and goodwill, net of related deferred tax liabilities | (1,407 | ) | (1,743 | ) | |||||||||||
Other | Other | (412 | ) | (377 | ) | Other | 701 | 512 | ||||||||
Common equity tier 1 capital | Common equity tier 1 capital | 164,828 | 168,461 | Common equity tier 1 capital | 164,386 | 168,461 | ||||||||||
Qualifying preferred stock, net of issuance cost | Qualifying preferred stock, net of issuance cost | 24,672 | 22,323 | Qualifying preferred stock, net of issuance cost | 22,326 | 22,323 | ||||||||||
Other | Other | (600 | ) | (595 | ) | Other | (523 | ) | (595 | ) | ||||||
Total Tier 1 capital | 188,900 | 190,189 | ||||||||||||||
Tier 1 capital | Tier 1 capital | 186,189 | 190,189 | |||||||||||||
Tier 2 capital instruments | Tier 2 capital instruments | 23,914 | 22,938 | Tier 2 capital instruments | 21,444 | 22,938 | ||||||||||
Eligible credit reserves included in Tier 2 capital | Eligible credit reserves included in Tier 2 capital | 2,531 | 2,272 | Eligible credit reserves included in Tier 2 capital | 2,317 | 2,272 | ||||||||||
Other | Other | (84 | ) | (88 | ) | Other | — | (88 | ) | |||||||
Total Basel 3 Capital | $ | 215,261 | $ | 215,311 | ||||||||||||
Total capital under the Advanced approaches | Total capital under the Advanced approaches | $ | 209,950 | $ | 215,311 |
(1) | Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased-in as of January 1, 2018. Prior periods are presented on a fully phased-in basis. |
Table 10 | Risk-weighted Assets under Basel 3 (1) | |||||||||||||||||||||||||||||||
Table 11 | Risk-weighted Assets under Basel 3 (1) | |||||||||||||||||||||||||||||||
Standardized Approach | Advanced Approaches | Standardized Approach | Advanced Approaches | Standardized Approach | Advanced Approaches | Standardized Approach | Advanced Approaches | |||||||||||||||||||||||||
(Dollars in billions) | (Dollars in billions) | March 31, 2018 | December 31, 2017 | (Dollars in billions) | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||
Credit risk | Credit risk | $ | 1,391 | $ | 862 | $ | 1,384 | $ | 867 | Credit risk | $ | 1,387 | $ | 840 | $ | 1,384 | $ | 867 | ||||||||||||||
Market risk | Market risk | 61 | 61 | 59 | 58 | Market risk | 52 | 51 | 59 | 58 | ||||||||||||||||||||||
Operational risk | Operational risk | n/a | 500 | n/a | 500 | Operational risk | n/a | 500 | n/a | 500 | ||||||||||||||||||||||
Risks related to credit valuation adjustments | Risks related to credit valuation adjustments | n/a | 35 | n/a | 34 | Risks related to credit valuation adjustments | n/a | 33 | n/a | 34 | ||||||||||||||||||||||
Total risk-weighted assets | Total risk-weighted assets | $ | 1,452 | $ | 1,458 | $ | 1,443 | $ | 1,459 | Total risk-weighted assets | $ | 1,439 | $ | 1,424 | $ | 1,443 | $ | 1,459 |
(1) | Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased-in as of January 1, 2018. Prior periods are presented on a fully phased-in basis. |
Table 11 | Bank of America, N.A. Regulatory Capital under Basel 3 | |||||||||||||||||||||||||||||||||
Table 12 | Bank of America, N.A. Regulatory Capital under Basel 3 | |||||||||||||||||||||||||||||||||
Standardized Approach | Advanced Approaches | Standardized Approach | Advanced Approaches | |||||||||||||||||||||||||||||||
Ratio | Amount | Ratio | Amount | Minimum Required (1) | Ratio | Amount | Ratio | Amount | Minimum Required (1) | |||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31, 2018 | (Dollars in millions) | September 30, 2018 | ||||||||||||||||||||||||||||||
Common equity tier 1 capital | Common equity tier 1 capital | 12.2 | % | $ | 147,645 | 14.7 | % | $ | 147,645 | 6.5 | % | Common equity tier 1 capital | 12.2 | % | $ | 146,659 | 14.8 | % | $ | 146,659 | 6.5 | % | ||||||||||||
Tier 1 capital | Tier 1 capital | 12.2 | 147,645 | 14.7 | 147,645 | 8.0 | Tier 1 capital | 12.2 | 146,659 | 14.8 | 146,659 | 8.0 | ||||||||||||||||||||||
Total capital | Total capital | 13.3 | 160,158 | 15.1 | 151,968 | 10.0 | Total capital | 13.2 | 158,657 | 15.3 | 150,754 | 10.0 | ||||||||||||||||||||||
Tier 1 leverage | Tier 1 leverage | 8.8 | 147,645 | 8.8 | 147,645 | 5.0 | Tier 1 leverage | 8.6 | 146,659 | 8.6 | 146,659 | 5.0 | ||||||||||||||||||||||
SLR leverage exposure (in billions) | $ | 2,088 | ||||||||||||||||||||||||||||||||
SLR | SLR | 7.1 | % | 6.0 | SLR | 7.0 | 146,659 | 6.0 | ||||||||||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||
Common equity tier 1 capital | Common equity tier 1 capital | 12.5 | % | $ | 150,552 | 14.9 | % | $ | 150,552 | 6.5 | % | Common equity tier 1 capital | 12.5 | % | $ | 150,552 | 14.9 | % | $ | 150,552 | 6.5 | % | ||||||||||||
Tier 1 capital | Tier 1 capital | 12.5 | 150,552 | 14.9 | 150,552 | 8.0 | Tier 1 capital | 12.5 | 150,552 | 14.9 | 150,552 | 8.0 | ||||||||||||||||||||||
Total capital | Total capital | 13.6 | 163,243 | 15.4 | 154,675 | 10.0 | Total capital | 13.6 | 163,243 | 15.4 | 154,675 | 10.0 | ||||||||||||||||||||||
Tier 1 leverage | Tier 1 leverage | 9.0 | 150,552 | 9.0 | 150,552 | 5.0 | Tier 1 leverage | 9.0 | 150,552 | 9.0 | 150,552 | 5.0 |
(1) | Percent required to meet guidelines to be considered |
Bank of America |
25Bank of America |
Table 12 | Preferred Stock Cash Dividend Summary | ||||||||||||||||||
March 31, 2018 | |||||||||||||||||||
Preferred Stock | Outstanding Notional Amount (in millions) | Declaration Date | Record Date | Payment Date | Per Annum Dividend Rate | Dividend Per Share | |||||||||||||
Series B (1) | $ | 1 | April 25, 2018 | July 11, 2018 | July 25, 2018 | 7.00 | % | $ | 1.75 | ||||||||||
January 31, 2018 | April 11, 2018 | April 25, 2018 | 7.00 | 1.75 | |||||||||||||||
Series D (2) | $ | 654 | April 13, 2018 | May 31, 2018 | June 14, 2018 | 6.204 | % | $ | 0.38775 | ||||||||||
January 8, 2018 | February 28, 2018 | March 14, 2018 | 6.204 | 0.38775 | |||||||||||||||
Series E (2) | $ | 317 | April 13, 2018 | April 30, 2018 | May 15, 2018 | Floating | $ | 0.24722 | |||||||||||
January 8, 2018 | January 31, 2018 | February 15, 2018 | Floating | 0.25556 | |||||||||||||||
Series F | $ | 141 | April 13, 2018 | May 31, 2018 | June 15, 2018 | Floating | $ | 1,022.22222 | |||||||||||
January 8, 2018 | February 28, 2018 | March 15, 2018 | Floating | 1,000.00 | |||||||||||||||
Series G | $ | 493 | April 13, 2018 | May 31, 2018 | June 15, 2018 | Adjustable | $ | 1,022.22222 | |||||||||||
January 8, 2018 | February 28, 2018 | March 15, 2018 | Adjustable | 1,000.00 | |||||||||||||||
Series I (2) | $ | 365 | April 13, 2018 | June 15, 2018 | July 2, 2018 | 6.625 | % | $ | 0.4140625 | ||||||||||
January 8, 2018 | March 15, 2018 | April 2, 2018 | 6.625 | 0.4140625 | |||||||||||||||
Series K (3, 4) | $ | 1,544 | April 13, 2018 | April 15, 2018 | April 30, 2018 | Fixed-to-floating | $ | 13.49225 | |||||||||||
January 8, 2018 | January 15, 2018 | January 30, 2018 | Fixed-to-floating | 40.00 | |||||||||||||||
Series L | $ | 3,080 | March 20, 2018 | April 1, 2018 | April 30, 2018 | 7.25 | % | $ | 18.125 | ||||||||||
Series M (3, 4) | $ | 1,310 | April 13, 2018 | April 30, 2018 | May 15, 2018 | Fixed-to-floating | $ | 40.625 | |||||||||||
Series T (5) | $ | 35 | April 25, 2018 | June 25, 2018 | July 10, 2018 | 6.00 | % | $ | 1,500.00 | ||||||||||
January 31, 2018 | March 26, 2018 | April 10, 2018 | 6.00 | 1,500.00 | |||||||||||||||
Series U (3, 4) | $ | 1,000 | April 13, 2018 | May 15, 2018 | June 1, 2018 | Fixed-to-floating | $ | 26.00 | |||||||||||
Series V (3, 4) | $ | 1,500 | April 13, 2018 | June 1, 2018 | June 18, 2018 | Fixed-to-floating | $ | 25.625 | |||||||||||
Series W (2) | $ | 1,100 | April 13, 2018 | May 15, 2018 | June 11, 2018 | 6.625 | % | $ | 0.4140625 | ||||||||||
January 8, 2018 | February 15, 2018 | March 9, 2018 | 6.625 | 0.4140625 | |||||||||||||||
Series X (3, 4) | $ | 2,000 | January 8, 2018 | February 15, 2018 | March 5, 2018 | Fixed-to-floating | $ | 31.25 | |||||||||||
Series Y (2) | $ | 1,100 | March 20, 2018 | April 1, 2018 | April 27, 2018 | 6.50 | % | $ | 0.40625 | ||||||||||
Series Z (3,4) | $ | 1,400 | March 20, 2018 | April 1, 2018 | April 23, 2018 | Fixed-to-floating | $ | 32.50 | |||||||||||
Series AA (3, 4) | $ | 1,900 | January 8, 2018 | March 1, 2018 | March 19, 2018 | Fixed-to-floating | $ | 30.50 | |||||||||||
Series CC (2) | $ | 1,100 | March 20, 2018 | April 1, 2018 | April 30, 2018 | 6.20 | % | $ | 0.3875 | ||||||||||
Series DD (3, 4) | $ | 1,000 | January 8, 2018 | February 15, 2018 | March 12, 2018 | Fixed-to-floating | $ | 31.50 | |||||||||||
Series EE (2) | $ | 900 | March 20, 2018 | April 1, 2018 | April 25, 2018 | 6.00 | % | $ | 0.375 | ||||||||||
Series 1 (6) | $ | 98 | April 13, 2018 | May 15, 2018 | May 29, 2018 | Floating | $ | 0.18750 | |||||||||||
January 8, 2018 | February 15, 2018 | February 28, 2018 | Floating | 0.18750 | |||||||||||||||
Series 2 (6) | $ | 299 | April 13, 2018 | May 15, 2018 | May 29, 2018 | Floating | $ | 0.18542 | |||||||||||
January 8, 2018 | February 15, 2018 | February 28, 2018 | Floating | 0.19167 | |||||||||||||||
Series 3 (6) | $ | 653 | April 13, 2018 | May 15, 2018 | May 29, 2018 | 6.375 | % | $ | 0.3984375 | ||||||||||
January 8, 2018 | February 15, 2018 | February 28, 2018 | 6.375 | 0.3984375 | |||||||||||||||
Series 4 (6) | $ | 210 | April 13, 2018 | May 15, 2018 | May 29, 2018 | Floating | $ | 0.24722 | |||||||||||
January 8, 2018 | February 15, 2018 | February 28, 2018 | Floating | 0.25556 | |||||||||||||||
Series 5 (6) | $ | 422 | April 13, 2018 | May 1, 2018 | May 21, 2018 | Floating | $ | 0.24722 | |||||||||||
January 8, 2018 | February 1, 2018 | February 21, 2018 | Floating | 0.25556 |
Table 13 | Average Global Liquidity Sources | |||||||
Three Months Ended | ||||||||
(Dollars in billions) | September 30 2018 | December 31 2017 | ||||||
Parent company and NB Holdings | $ | 80 | $ | 79 | ||||
Bank subsidiaries | 410 | 394 | ||||||
Other regulated entities | 47 | 49 | ||||||
Total Average Global Liquidity Sources | $ | 537 | $ | 522 |
Table 13 | Average Global Liquidity Sources | |||||||
Three Months Ended | ||||||||
(Dollars in billions) | March 31 2018 | December 31 2017 | ||||||
Parent company and NB Holdings | $ | 77 | $ | 79 | ||||
Bank subsidiaries | 396 | 394 | ||||||
Other regulated entities | 49 | 49 | ||||||
Total Average Global Liquidity Sources | $ | 522 | $ | 522 |
Table 14 | Average Global Liquidity Sources Composition | Average Global Liquidity Sources Composition | ||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
(Dollars in billions) | (Dollars in billions) | March 31 2018 | December 31 2017 | (Dollars in billions) | September 30 2018 | December 31 2017 | ||||||||||
Cash on deposit | Cash on deposit | $ | 128 | $ | 118 | Cash on deposit | $ | 130 | $ | 118 | ||||||
U.S. Treasury securities | U.S. Treasury securities | 64 | 62 | U.S. Treasury securities | 64 | 62 | ||||||||||
U.S. agency securities and mortgage-backed securities | U.S. agency securities and mortgage-backed securities | 320 | 330 | U.S. agency securities and mortgage-backed securities | 334 | 330 | ||||||||||
Non-U.S. government securities | Non-U.S. government securities | 10 | 12 | Non-U.S. government securities | 9 | 12 | ||||||||||
Total Average Global Liquidity Sources | Total Average Global Liquidity Sources | $ | 522 | $ | 522 | Total Average Global Liquidity Sources | $ | 537 | $ | 522 |
Bank of America26 |
Table 15 | Long-term Debt by Maturity | Long-term Debt by Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Remainder of 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | (Dollars in millions) | Remainder of 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | ||||||||||||||||||||||||||||||||||||||||
Bank of America Corporation | Bank of America Corporation | Bank of America Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes | Senior notes | $ | 13,996 | $ | 15,235 | $ | 10,561 | $ | 16,225 | $ | 11,813 | $ | 80,166 | $ | 147,996 | Senior notes | $ | 1,127 | $ | 14,888 | $ | 10,340 | $ | 15,836 | $ | 14,933 | $ | 88,562 | $ | 145,686 | ||||||||||||||||||||||||||
Senior structured notes | Senior structured notes | 1,768 | 1,485 | 923 | 430 | 2,048 | 8,081 | 14,735 | Senior structured notes | 150 | 1,401 | 866 | 495 | 1,946 | 9,005 | 13,863 | ||||||||||||||||||||||||||||||||||||||||
Subordinated notes | Subordinated notes | 1,606 | 1,576 | — | 382 | 469 | 20,188 | 24,221 | Subordinated notes | — | 1,516 | — | 354 | 387 | 19,848 | 22,105 | ||||||||||||||||||||||||||||||||||||||||
Junior subordinated notes | Junior subordinated notes | — | — | — | — | — | 3,829 | 3,829 | Junior subordinated notes | — | — | — | — | — | 740 | 740 | ||||||||||||||||||||||||||||||||||||||||
Total Bank of America Corporation | Total Bank of America Corporation | 17,370 | 18,296 | 11,484 | 17,037 | 14,330 | 112,264 | 190,781 | Total Bank of America Corporation | 1,277 | 17,805 | 11,206 | 16,685 | 17,266 | 118,155 | 182,394 | ||||||||||||||||||||||||||||||||||||||||
Bank of America, N.A. | Bank of America, N.A. | Bank of America, N.A. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes | Senior notes | 3,990 | — | — | — | — | 21 | 4,011 | Senior notes | 2,209 | — | 1,740 | — | — | 20 | 3,969 | ||||||||||||||||||||||||||||||||||||||||
Subordinated notes | Subordinated notes | — | 1 | — | — | — | 1,626 | 1,627 | Subordinated notes | — | 1 | — | — | — | 1,576 | 1,577 | ||||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Banks | Advances from Federal Home Loan Banks | 3,005 | 4,513 | 11 | 2 | 3 | 106 | 7,640 | Advances from Federal Home Loan Banks | 2,501 | 11,762 | 3,010 | 2 | 3 | 105 | 17,383 | ||||||||||||||||||||||||||||||||||||||||
Securitizations and other Bank VIEs (1) | Securitizations and other Bank VIEs (1) | 1,199 | 3,200 | 3,072 | 1,572 | — | 47 | 9,090 | Securitizations and other Bank VIEs (1) | — | 3,200 | 3,098 | 4,022 | — | 59 | 10,379 | ||||||||||||||||||||||||||||||||||||||||
Other | Other | 53 | 166 | 11 | — | 1 | 97 | 328 | Other | 1 | 178 | 78 | — | 10 | 61 | 328 | ||||||||||||||||||||||||||||||||||||||||
Total Bank of America, N.A. | Total Bank of America, N.A. | 8,247 | 7,880 | 3,094 | 1,574 | 4 | 1,897 | 22,696 | Total Bank of America, N.A. | 4,711 | 15,141 | 7,926 | 4,024 | 13 | 1,821 | 33,636 | ||||||||||||||||||||||||||||||||||||||||
Other debt | Other debt | Other debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured liabilities | Structured liabilities | 4,009 | 3,199 | 1,887 | 821 | 746 | 7,138 | 17,800 | Structured liabilities | 1,382 | 4,843 | 2,061 | 1,088 | 576 | 7,475 | 17,425 | ||||||||||||||||||||||||||||||||||||||||
Nonbank VIEs (1) | Nonbank VIEs (1) | 20 | 52 | — | — | — | 889 | 961 | Nonbank VIEs (1) | 6 | 41 | — | — | — | 598 | 645 | ||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | 18 | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total other debt | Total other debt | 4,029 | 3,251 | 1,887 | 821 | 746 | 8,045 | 18,779 | Total other debt | 1,388 | 4,884 | 2,061 | 1,088 | 576 | 8,073 | 18,070 | ||||||||||||||||||||||||||||||||||||||||
Total long-term debt | Total long-term debt | $ | 29,646 | $ | 29,427 | $ | 16,465 | $ | 19,432 | $ | 15,080 | $ | 122,206 | $ | 232,256 | Total long-term debt | $ | 7,376 | $ | 37,830 | $ | 21,193 | $ | 21,797 | $ | 17,855 | $ | 128,049 | $ | 234,100 |
(1) | Represents the total long-term debt included in the liabilities of consolidated variable interest entities (VIEs) on the Consolidated Balance Sheet. |
Table 16 | Long-term Debt by Major Currency | Long-term Debt by Major Currency | ||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | ||||||||||
U.S. dollar | U.S. dollar | $ | 181,398 | $ | 175,623 | U.S. dollar | $ | 184,299 | $ | 175,623 | ||||||
Euro | Euro | 34,487 | 35,481 | Euro | 34,802 | 35,481 | ||||||||||
British pound | British pound | 7,127 | 7,016 | British pound | 5,480 | 7,016 | ||||||||||
Canadian dollar | Canadian dollar | 3,044 | 1,966 | |||||||||||||
Japanese yen | Japanese yen | 3,035 | 2,993 | Japanese yen | 2,927 | 2,993 | ||||||||||
Australian dollar | Australian dollar | 3,015 | 3,046 | Australian dollar | 2,341 | 3,046 | ||||||||||
Canadian dollar | 1,915 | 1,966 | ||||||||||||||
Other | Other | 1,279 | 1,277 | Other | 1,207 | 1,277 | ||||||||||
Total long-term debt | Total long-term debt | $ | 232,256 | $ | 227,402 | Total long-term debt | $ | 234,100 | $ | 227,402 |
27Bank of America |
Table 17 | 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 | A3 | P-2 | Stable | A- | A-2 | Stable | F1 | Stable | ||||||||||||||||||||||||
Bank of America, N.A. | Aa3 | P-1 | Stable | A+ | A-1 | Stable | Stable | |||||||||||||||||||||||||
Merrill Lynch, Pierce, Fenner & Smith Incorporated | NR | NR | NR | A+ | A-1 | Stable | Stable | |||||||||||||||||||||||||
Merrill Lynch International | NR | NR | NR | A+ | A-1 | Stable | F1 | Stable |
Table 18 | Consumer Credit Quality | Consumer Credit Quality | ||||||||||||||||||||||||||||||||||||||||||||||
Outstandings | Nonperforming | Accruing Past Due 90 Days or More | Outstandings | Nonperforming | Accruing Past Due 90 Days or More | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | ||||||||||||||||||||||||||||||||||
Residential mortgage (1) | Residential mortgage (1) | $ | 204,112 | $ | 203,811 | $ | 2,262 | $ | 2,476 | $ | 2,885 | $ | 3,230 | Residential mortgage (1) | $ | 208,186 | $ | 203,811 | $ | 2,034 | $ | 2,476 | $ | 2,161 | $ | 3,230 | ||||||||||||||||||||||
Home equity | Home equity | 55,308 | 57,744 | 2,598 | 2,644 | — | — | Home equity | 51,235 | 57,744 | 2,226 | 2,644 | — | — | ||||||||||||||||||||||||||||||||||
U.S. credit card | U.S. credit card | 93,014 | 96,285 | n/a | n/a | 925 | 900 | U.S. credit card | 94,829 | 96,285 | n/a | n/a | 872 | 900 | ||||||||||||||||||||||||||||||||||
Direct/Indirect consumer (2) | Direct/Indirect consumer (2) | 91,213 | 93,830 | 46 | 46 | 38 | 40 | Direct/Indirect consumer (2) | 91,338 | 96,342 | 46 | 46 | 35 | 40 | ||||||||||||||||||||||||||||||||||
Other consumer (3) | Other consumer (3) | 2,860 | 2,678 | — | — | 1 | — | Other consumer (3) | 203 | 166 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Consumer loans excluding loans accounted for under the fair value option | Consumer loans excluding loans accounted for under the fair value option | $ | 446,507 | $ | 454,348 | $ | 4,906 | $ | 5,166 | $ | 3,849 | $ | 4,170 | Consumer loans excluding loans accounted for under the fair value option | $ | 445,791 | $ | 454,348 | $ | 4,306 | $ | 5,166 | $ | 3,068 | $ | 4,170 | ||||||||||||||||||||||
Loans accounted for under the fair value option (4) | Loans accounted for under the fair value option (4) | 894 | 928 | Loans accounted for under the fair value option (4) | 755 | 928 | ||||||||||||||||||||||||||||||||||||||||||
Total consumer loans and leases | Total consumer loans and leases | $ | 447,401 | $ | 455,276 | Total consumer loans and leases | $ | 446,546 | $ | 455,276 | ||||||||||||||||||||||||||||||||||||||
Percentage of outstanding consumer loans and leases (5) | Percentage of outstanding consumer loans and leases (5) | n/a | n/a | 1.10 | % | 1.14 | % | 0.86 | % | 0.92 | % | Percentage of outstanding consumer loans and leases (5) | n/a | n/a | 0.97 | % | 1.14 | % | 0.69 | % | 0.92 | % | ||||||||||||||||||||||||||
Percentage of outstanding consumer loans and leases, excluding PCI and fully-insured loan portfolios (5) | Percentage of outstanding consumer loans and leases, excluding PCI and fully-insured loan portfolios (5) | n/a | n/a | 1.19 | 1.23 | 0.23 | 0.22 | Percentage of outstanding consumer loans and leases, excluding PCI and fully-insured loan portfolios (5) | n/a | n/a | 1.03 | 1.23 | 0.22 | 0.22 |
(1) | Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At |
(2) | Outstandings include auto and specialty lending loans and leases of $ |
(3) |
(4) | Consumer loans accounted for under the fair value option include residential mortgage loans of $ |
(5) | Excludes consumer loans accounted for under the fair value option. At |
Table 19 | Consumer Net Charge-offs and Related Ratios | Consumer Net Charge-offs and Related Ratios | ||||||||||||||||||||||||||||||||||||||||
Net Charge-offs (1) | Net Charge-off Ratios (1, 2) | Net Charge-offs (1) | Net Charge-off Ratios (1, 2) | |||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
Residential mortgage | Residential mortgage | $ | (6 | ) | $ | 17 | (0.01 | )% | 0.04 | % | Residential mortgage | $ | 12 | $ | (82 | ) | $ | 13 | $ | (84 | ) | 0.02 | % | (0.16 | )% | 0.01 | % | (0.06 | )% | |||||||||||||
Home equity | Home equity | 33 | 64 | 0.23 | 0.40 | Home equity | (20 | ) | 83 | 13 | 197 | (0.15 | ) | 0.54 | 0.03 | 0.42 | ||||||||||||||||||||||||||
U.S. credit card | U.S. credit card | 701 | 606 | 3.01 | 2.74 | U.S. credit card | 698 | 612 | 2,138 | 1,858 | 2.92 | 2.65 | 3.03 | 2.75 | ||||||||||||||||||||||||||||
Non-U.S. credit card (3) | Non-U.S. credit card (3) | — | 44 | — | 1.91 | Non-U.S. credit card (3) | — | — | — | 75 | — | — | — | 1.91 | ||||||||||||||||||||||||||||
Direct/Indirect consumer | Direct/Indirect consumer | 58 | 48 | 0.26 | 0.21 | Direct/Indirect consumer | 42 | 68 | 142 | 149 | 0.18 | 0.28 | 0.20 | 0.21 | ||||||||||||||||||||||||||||
Other consumer | Other consumer | 44 | 48 | 6.34 | 7.61 | Other consumer | 44 | 50 | 130 | 114 | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||
Total | Total | $ | 830 | $ | 827 | 0.75 | 0.74 | Total | $ | 776 | $ | 731 | $ | 2,436 | $ | 2,309 | 0.69 | 0.65 | 0.73 | 0.69 |
(1) | Net charge-offs exclude write-offs in the PCI loan portfolio. For more information, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page |
(2) | 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. |
(3) | Represents net charge-offs related to the non-U.S. credit card loan portfolio, which was sold during the second quarter of 2017. |
29Bank of America |
Table 20 | Consumer Real Estate Portfolio (1) | Consumer Real Estate Portfolio (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstandings | Nonperforming | Net Charge-offs (2) | Outstandings | Nonperforming | Net Charge-offs (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | Three Months Ended March 31 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
Core portfolio | Core portfolio | Core portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | Residential mortgage | $ | 179,578 | $ | 176,618 | $ | 1,073 | $ | 1,087 | $ | 9 | $ | 4 | Residential mortgage | $ | 189,290 | $ | 176,618 | $ | 1,011 | $ | 1,087 | $ | — | $ | (42 | ) | $ | 13 | $ | (40 | ) | ||||||||||||||||||||||||
Home equity | Home equity | 42,568 | 44,245 | 1,118 | 1,079 | 23 | 31 | Home equity | 40,596 | 44,245 | 1,056 | 1,079 | 15 | 26 | 52 | 85 | ||||||||||||||||||||||||||||||||||||||||
Total core portfolio | Total core portfolio | 222,146 | 220,863 | 2,191 | 2,166 | 32 | 35 | Total core portfolio | 229,886 | 220,863 | 2,067 | 2,166 | 15 | (16 | ) | 65 | 45 | |||||||||||||||||||||||||||||||||||||||
Non-core portfolio | Non-core portfolio | Non-core portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | Residential mortgage | 24,534 | 27,193 | 1,189 | 1,389 | (15 | ) | 13 | Residential mortgage | 18,896 | 27,193 | 1,023 | 1,389 | 12 | (40 | ) | — | (44 | ) | |||||||||||||||||||||||||||||||||||||
Home equity | Home equity | 12,740 | 13,499 | 1,480 | 1,565 | 10 | 33 | Home equity | 10,639 | 13,499 | 1,170 | 1,565 | (35 | ) | 57 | (39 | ) | 112 | ||||||||||||||||||||||||||||||||||||||
Total non-core portfolio | Total non-core portfolio | 37,274 | 40,692 | 2,669 | 2,954 | (5 | ) | 46 | Total non-core portfolio | 29,535 | 40,692 | 2,193 | 2,954 | (23 | ) | 17 | (39 | ) | 68 | |||||||||||||||||||||||||||||||||||||
Consumer real estate portfolio | Consumer real estate portfolio | Consumer real estate portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | Residential mortgage | 204,112 | 203,811 | 2,262 | 2,476 | (6 | ) | 17 | Residential mortgage | 208,186 | 203,811 | 2,034 | 2,476 | 12 | (82 | ) | 13 | (84 | ) | |||||||||||||||||||||||||||||||||||||
Home equity | Home equity | 55,308 | 57,744 | 2,598 | 2,644 | 33 | 64 | Home equity | 51,235 | 57,744 | 2,226 | 2,644 | (20 | ) | 83 | 13 | 197 | |||||||||||||||||||||||||||||||||||||||
Total consumer real estate portfolio | Total consumer real estate portfolio | $ | 259,420 | $ | 261,555 | $ | 4,860 | $ | 5,120 | $ | 27 | $ | 81 | Total consumer real estate portfolio | $ | 259,421 | $ | 261,555 | $ | 4,260 | $ | 5,120 | $ | (8 | ) | $ | 1 | $ | 26 | $ | 113 | |||||||||||||||||||||||||
Allowance for Loan and Lease Losses | Provision for Loan and Lease Losses | Allowance for Loan and Lease Losses | Provision for Loan and Lease Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31 2018 | December 31 2017 | Three Months Ended March 31 | September 30 2018 | December 31 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Core portfolio | Core portfolio | Core portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | Residential mortgage | $ | 216 | $ | 218 | $ | 8 | $ | (1 | ) | Residential mortgage | $ | 211 | $ | 218 | $ | (2 | ) | $ | (49 | ) | $ | 7 | $ | (60 | ) | ||||||||||||||||||||||||||||||
Home equity | Home equity | 343 | 367 | (1 | ) | (11 | ) | Home equity | 264 | 367 | (27 | ) | (10 | ) | (51 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||
Total core portfolio | Total core portfolio | 559 | 585 | 7 | (12 | ) | Total core portfolio | 475 | 585 | (29 | ) | (59 | ) | (44 | ) | (79 | ) | |||||||||||||||||||||||||||||||||||||||
Non-core portfolio | Non-core portfolio | Non-core portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | Residential mortgage | 395 | 483 | (86 | ) | 33 | Residential mortgage | 289 | 483 | 22 | (59 | ) | (103 | ) | (111 | ) | ||||||||||||||||||||||||||||||||||||||||
Home equity | Home equity | 576 | 652 | (49 | ) | (92 | ) | Home equity | 394 | 652 | (112 | ) | (86 | ) | (221 | ) | (255 | ) | ||||||||||||||||||||||||||||||||||||||
Total non-core portfolio | Total non-core portfolio | 971 | 1,135 | (135 | ) | (59 | ) | Total non-core portfolio | 683 | 1,135 | (90 | ) | (145 | ) | (324 | ) | (366 | ) | ||||||||||||||||||||||||||||||||||||||
Consumer real estate portfolio | Consumer real estate portfolio | Consumer real estate portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | Residential mortgage | 611 | 701 | (78 | ) | 32 | Residential mortgage | 500 | 701 | 20 | (108 | ) | (96 | ) | (171 | ) | ||||||||||||||||||||||||||||||||||||||||
Home equity | Home equity | 919 | 1,019 | (50 | ) | (103 | ) | Home equity | 658 | 1,019 | (139 | ) | (96 | ) | (272 | ) | (274 | ) | ||||||||||||||||||||||||||||||||||||||
Total consumer real estate portfolio | Total consumer real estate portfolio | $ | 1,530 | $ | 1,720 | $ | (128 | ) | $ | (71 | ) | Total consumer real estate portfolio | $ | 1,158 | $ | 1,720 | $ | (119 | ) | $ | (204 | ) | $ | (368 | ) | $ | (445 | ) |
(1) | Outstandings and nonperforming loans exclude loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of $ |
(2) | Net charge-offs exclude write-offs in the PCI loan portfolio. For more information, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page |
Table 21 | Residential Mortgage – Key Credit Statistics | Residential Mortgage – Key Credit Statistics | |||||||||||||||||||||||||||||||||||||||||||
Reported Basis (1) | Excluding Purchased Credit-impaired and Fully-insured Loans (1) | Reported Basis (1) | Excluding Purchased Credit-impaired and Fully-insured Loans (1) | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | |||||||||||||||||||||||||||||||||||
Outstandings | Outstandings | $ | 204,112 | $ | 203,811 | $ | 173,813 | $ | 172,069 | Outstandings | $ | 208,186 | $ | 203,811 | $ | 181,996 | $ | 172,069 | |||||||||||||||||||||||||||
Accruing past due 30 days or more | Accruing past due 30 days or more | 5,192 | 5,987 | 1,277 | 1,521 | Accruing past due 30 days or more | 4,533 | 5,987 | 1,350 | 1,521 | |||||||||||||||||||||||||||||||||||
Accruing past due 90 days or more | Accruing past due 90 days or more | 2,885 | 3,230 | — | — | Accruing past due 90 days or more | 2,161 | 3,230 | — | — | |||||||||||||||||||||||||||||||||||
Nonperforming loans | Nonperforming loans | 2,262 | 2,476 | 2,262 | 2,476 | Nonperforming loans | 2,034 | 2,476 | 2,034 | 2,476 | |||||||||||||||||||||||||||||||||||
Percent of portfolio | Percent of portfolio | Percent of portfolio | |||||||||||||||||||||||||||||||||||||||||||
Refreshed LTV greater than 90 but less than or equal to 100 | Refreshed LTV greater than 90 but less than or equal to 100 | 3 | % | 3 | % | 2 | % | 2 | % | Refreshed LTV greater than 90 but less than or equal to 100 | 2 | % | 3 | % | 2 | % | 2 | % | |||||||||||||||||||||||||||
Refreshed LTV greater than 100 | Refreshed LTV greater than 100 | 2 | 2 | 1 | 1 | Refreshed LTV greater than 100 | 1 | 2 | 1 | 1 | |||||||||||||||||||||||||||||||||||
Refreshed FICO below 620 | Refreshed FICO below 620 | 6 | 6 | 2 | 3 | Refreshed FICO below 620 | 4 | 6 | 2 | 3 | |||||||||||||||||||||||||||||||||||
2006 and 2007 vintages (2) | 2006 and 2007 vintages (2) | 9 | 10 | 7 | 8 | 2006 and 2007 vintages (2) | 7 | 10 | 6 | 8 | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Reported Basis | Excluding Purchased Credit-impaired and Fully-insured Loans | |||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
Net charge-off ratio (3) | Net charge-off ratio (3) | (0.01 | )% | 0.04 | % | (0.01 | )% | 0.05 | % | Net charge-off ratio (3) | 0.02 | % | (0.16 | )% | 0.01 | % | (0.06 | )% | 0.03 | % | (0.20 | )% | 0.01 | % | (0.07 | )% |
(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 $ |
(3) | Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option. |
31Bank of America |
Table 22 | Residential Mortgage State Concentrations | Residential Mortgage State Concentrations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstandings (1) | Nonperforming (1) | Net Charge-offs (2) | Outstandings (1) | Nonperforming (1) | Net Charge-offs (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | Three Months Ended March 31 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
California | California | $ | 69,368 | $ | 68,455 | $ | 384 | $ | 433 | $ | (10 | ) | $ | (4 | ) | California | $ | 73,127 | $ | 68,455 | $ | 353 | $ | 433 | $ | (1 | ) | $ | (59 | ) | $ | (18 | ) | $ | (84 | ) | ||||||||||||||||||||
New York (3) | New York (3) | 17,613 | 17,239 | 221 | 227 | 4 | (2 | ) | New York (3) | 18,669 | 17,239 | 217 | 227 | 4 | (1 | ) | 10 | (2 | ) | |||||||||||||||||||||||||||||||||||||
Florida (3) | Florida (3) | 10,887 | 10,880 | 281 | 280 | (5 | ) | 1 | Florida (3) | 11,235 | 10,880 | 249 | 280 | (2 | ) | (9 | ) | (7 | ) | (11 | ) | |||||||||||||||||||||||||||||||||||
Texas | Texas | 7,298 | 7,237 | 127 | 126 | 1 | 1 | Texas | 7,658 | 7,237 | 115 | 126 | — | 1 | 3 | 2 | ||||||||||||||||||||||||||||||||||||||||
New Jersey (3) | New Jersey (3) | 6,202 | 6,099 | 118 | 130 | 2 | 1 | New Jersey (3) | 6,761 | 6,099 | 100 | 130 | — | (1 | ) | 5 | 1 | |||||||||||||||||||||||||||||||||||||||
Other | Other | 62,445 | 62,159 | 1,131 | 1,280 | 2 | 20 | Other | 64,546 | 62,159 | 1,000 | 1,280 | 11 | (13 | ) | 20 | 10 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage loans (4) | Residential mortgage loans (4) | $ | 173,813 | $ | 172,069 | $ | 2,262 | $ | 2,476 | $ | (6 | ) | $ | 17 | Residential mortgage loans (4) | $ | 181,996 | $ | 172,069 | $ | 2,034 | $ | 2,476 | $ | 12 | $ | (82 | ) | $ | 13 | $ | (84 | ) | |||||||||||||||||||||||
Fully-insured loan portfolio | Fully-insured loan portfolio | 22,709 | 23,741 | Fully-insured loan portfolio | 20,849 | 23,741 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased credit-impaired residential mortgage loan portfolio (5) | Purchased credit-impaired residential mortgage loan portfolio (5) | 7,590 | 8,001 | Purchased credit-impaired residential mortgage loan portfolio (5) | 5,341 | 8,001 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential mortgage loan portfolio | Total residential mortgage loan portfolio | $ | 204,112 | $ | 203,811 | Total residential mortgage loan portfolio | $ | 208,186 | $ | 203,811 |
(1) | Outstandings and nonperforming loans exclude loans accounted for under the fair value option. |
(2) | Net charge-offs |
(3) | In these states, foreclosure requires a court order following a legal proceeding (judicial states). |
(4) | Amounts exclude the PCI residential mortgage and fully-insured loan portfolios. |
(5) | At |
Bank of America32 |
Table 23 | Home Equity – Key Credit Statistics | Home Equity – Key Credit Statistics | ||||||||||||||||||||||||||||||||||||||||||
Reported Basis (1) | Excluding Purchased Credit-impaired Loans (1) | Reported Basis (1) | Excluding Purchased Credit-impaired Loans (1) | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | ||||||||||||||||||||||||||||||||||
Outstandings | Outstandings | $ | 55,308 | $ | 57,744 | $ | 52,763 | $ | 55,028 | Outstandings | $ | 51,235 | $ | 57,744 | $ | 49,424 | $ | 55,028 | ||||||||||||||||||||||||||
Accruing past due 30 days or more (2) | Accruing past due 30 days or more (2) | 460 | 502 | 460 | 502 | Accruing past due 30 days or more (2) | 404 | 502 | 404 | 502 | ||||||||||||||||||||||||||||||||||
Nonperforming loans (2) | Nonperforming loans (2) | 2,598 | 2,644 | 2,598 | 2,644 | Nonperforming loans (2) | 2,226 | 2,644 | 2,226 | 2,644 | ||||||||||||||||||||||||||||||||||
Percent of portfolio | Percent of portfolio | Percent of portfolio | ||||||||||||||||||||||||||||||||||||||||||
Refreshed CLTV greater than 90 but less than or equal to 100 | Refreshed CLTV greater than 90 but less than or equal to 100 | 3 | % | 3 | % | 3 | % | 3 | % | Refreshed CLTV greater than 90 but less than or equal to 100 | 3 | % | 3 | % | 2 | % | 3 | % | ||||||||||||||||||||||||||
Refreshed CLTV greater than 100 | Refreshed CLTV greater than 100 | 5 | 5 | 4 | 4 | Refreshed CLTV greater than 100 | 4 | 5 | 3 | 4 | ||||||||||||||||||||||||||||||||||
Refreshed FICO below 620 | Refreshed FICO below 620 | 6 | 6 | 6 | 6 | Refreshed FICO below 620 | 6 | 6 | 6 | 6 | ||||||||||||||||||||||||||||||||||
2006 and 2007 vintages (3) | 2006 and 2007 vintages (3) | 28 | 29 | 26 | 27 | 2006 and 2007 vintages (3) | 25 | 29 | 23 | 27 | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Reported Basis | Excluding Purchased Credit-impaired Loans | ||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||
Net charge-off ratio (4) | Net charge-off ratio (4) | 0.23 | % | 0.40 | % | 0.24 | % | 0.42 | % | Net charge-off ratio (4) | (0.15 | )% | 0.54 | % | 0.03 | % | 0.42 | % | (0.15 | )% | 0.56 | % | 0.03 | % | 0.44 | % |
(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 |
(3) | These vintages of loans have higher refreshed combined loan-to-value (CLTV) ratios and accounted for |
(4) | Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option. |
33Bank of America |
Table 24 | Home Equity State Concentrations | Home Equity State Concentrations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstandings (1) | Nonperforming (1) | Net Charge-offs (2) | Outstandings (1) | Nonperforming (1) | Net Charge-offs (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | Three Months Ended March 31 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
California | California | $ | 14,506 | $ | 15,145 | $ | 740 | $ | 766 | $ | (7 | ) | $ | (7 | ) | California | $ | 13,685 | $ | 15,145 | $ | 650 | $ | 766 | $ | (20 | ) | $ | (9 | ) | $ | (41 | ) | $ | (24 | ) | ||||||||||||||||||||
Florida (3) | Florida (3) | 6,033 | 6,308 | 432 | 411 | 10 | 11 | Florida (3) | 5,592 | 6,308 | 366 | 411 | (4 | ) | 13 | 9 | 34 | |||||||||||||||||||||||||||||||||||||||
New Jersey (3) | New Jersey (3) | 4,333 | 4,546 | 190 | 191 | 9 | 10 | New Jersey (3) | 4,005 | 4,546 | 168 | 191 | 6 | 16 | 20 | 37 | ||||||||||||||||||||||||||||||||||||||||
New York (3) | New York (3) | 4,024 | 4,195 | 250 | 252 | 6 | 8 | New York (3) | 3,732 | 4,195 | 222 | 252 | 8 | 14 | 16 | 31 | ||||||||||||||||||||||||||||||||||||||||
Massachusetts | Massachusetts | 2,645 | 2,751 | 90 | 92 | 2 | 1 | Massachusetts | 2,471 | 2,751 | 76 | 92 | (1 | ) | 5 | 2 | 7 | |||||||||||||||||||||||||||||||||||||||
Other | Other | 21,222 | 22,083 | 896 | 932 | 13 | 41 | Other | 19,939 | 22,083 | 744 | 932 | (9 | ) | 44 | 7 | 112 | |||||||||||||||||||||||||||||||||||||||
Home equity loans (4) | Home equity loans (4) | $ | 52,763 | $ | 55,028 | $ | 2,598 | $ | 2,644 | $ | 33 | $ | 64 | Home equity loans (4) | $ | 49,424 | $ | 55,028 | $ | 2,226 | $ | 2,644 | $ | (20 | ) | $ | 83 | $ | 13 | $ | 197 | |||||||||||||||||||||||||
Purchased credit-impaired home equity portfolio (5) | Purchased credit-impaired home equity portfolio (5) | 2,545 | 2,716 | Purchased credit-impaired home equity portfolio (5) | 1,811 | 2,716 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total home equity loan portfolio | Total home equity loan portfolio | $ | 55,308 | $ | 57,744 | Total home equity loan portfolio | $ | 51,235 | $ | 57,744 |
(1) | Outstandings and nonperforming loans exclude loans accounted for under the fair value option. |
(2) | Net charge-offs |
(3) | In these states, foreclosure requires a court order following a legal proceeding (judicial states). |
(4) | Amount excludes the PCI home equity portfolio. |
(5) | At |
Table 25 | Purchased Credit-impaired Loan Portfolio | Purchased Credit-impaired Loan Portfolio | ||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Gross Carrying Value | Related Valuation Allowance | Carrying Value Net of Valuation Allowance | Percent of Unpaid Principal Balance | Unpaid Principal Balance | Gross Carrying Value | Related Valuation Allowance | Carrying Value Net of Valuation Allowance | Percent of Unpaid Principal Balance | |||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31, 2018 | (Dollars in millions) | September 30, 2018 | ||||||||||||||||||||||||||||||||||
Residential mortgage (1) | Residential mortgage (1) | $ | 7,698 | $ | 7,590 | $ | 84 | $ | 7,506 | 97.51 | % | Residential mortgage (1) | $ | 5,454 | $ | 5,341 | $ | 51 | $ | 5,290 | 96.99 | % | ||||||||||||||||
Home equity | Home equity | 2,614 | 2,545 | 158 | 2,387 | 91.32 | Home equity | 1,872 | 1,811 | 99 | 1,712 | 91.45 | ||||||||||||||||||||||||||
Total purchased credit-impaired loan portfolio | Total purchased credit-impaired loan portfolio | $ | 10,312 | $ | 10,135 | $ | 242 | $ | 9,893 | 95.94 | Total purchased credit-impaired loan portfolio | $ | 7,326 | $ | 7,152 | $ | 150 | $ | 7,002 | 95.58 | ||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Residential mortgage (1) | Residential mortgage (1) | $ | 8,117 | $ | 8,001 | $ | 117 | $ | 7,884 | 97.13 | % | Residential mortgage (1) | $ | 8,117 | $ | 8,001 | $ | 117 | $ | 7,884 | 97.13 | % | ||||||||||||||||
Home equity | Home equity | 2,787 | 2,716 | 172 | 2,544 | 91.28 | Home equity | 2,787 | 2,716 | 172 | 2,544 | 91.28 | ||||||||||||||||||||||||||
Total purchased credit-impaired loan portfolio | Total purchased credit-impaired loan portfolio | $ | 10,904 | $ | 10,717 | �� | $ | 289 | $ | 10,428 | 95.63 | Total purchased credit-impaired loan portfolio | $ | 10,904 | $ | 10,717 | $ | 289 | $ | 10,428 | 95.63 |
(1) | At |
Table 26 | U.S. Credit Card State Concentrations | U.S. Credit Card State Concentrations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstandings | Accruing Past Due 90 Days or More | Net Charge-Offs | Outstandings | Accruing Past Due 90 Days or More | Net Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | Three Months Ended March 31 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
California | California | $ | 14,841 | $ | 15,254 | $ | 141 | $ | 136 | $ | 116 | $ | 96 | California | $ | 15,304 | $ | 15,254 | $ | 141 | $ | 136 | $ | 119 | $ | 104 | $ | 357 | $ | 303 | ||||||||||||||||||||||||||
Florida | Florida | 8,174 | 8,359 | 116 | 94 | 77 | 67 | Florida | 8,408 | 8,359 | 102 | 94 | 80 | 58 | 248 | 195 | ||||||||||||||||||||||||||||||||||||||||
Texas | Texas | 7,303 | 7,451 | 79 | 76 | 56 | 47 | Texas | 7,448 | 7,451 | 75 | 76 | 54 | 46 | 169 | 143 | ||||||||||||||||||||||||||||||||||||||||
New York | New York | 5,796 | 5,977 | 91 | 91 | 70 | 45 | New York | 5,886 | 5,977 | 74 | 91 | 66 | 59 | 208 | 155 | ||||||||||||||||||||||||||||||||||||||||
Washington | Washington | 4,153 | 4,350 | 22 | 20 | 15 | 14 | Washington | 4,329 | 4,350 | 20 | 20 | 15 | 13 | 47 | 41 | ||||||||||||||||||||||||||||||||||||||||
Other | Other | 52,747 | 54,894 | 476 | 483 | 367 | 337 | Other | 53,454 | 54,894 | 460 | 483 | 364 | 332 | 1,109 | 1,021 | ||||||||||||||||||||||||||||||||||||||||
Total U.S. credit card portfolio | Total U.S. credit card portfolio | $ | 93,014 | $ | 96,285 | $ | 925 | $ | 900 | $ | 701 | $ | 606 | Total U.S. credit card portfolio | $ | 94,829 | $ | 96,285 | $ | 872 | $ | 900 | $ | 698 | $ | 612 | $ | 2,138 | $ | 1,858 |
Table 27 | Direct/Indirect State Concentrations | Direct/Indirect State Concentrations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstandings | Accruing Past Due 90 Days or More | Net Charge-Offs | Outstandings | Accruing Past Due 90 Days or More | Net Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | Three Months Ended March 31 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
California | California | $ | 11,659 | $ | 12,502 | $ | 3 | $ | 3 | $ | 6 | $ | 5 | California | $ | 11,868 | $ | 12,897 | $ | 3 | $ | 3 | $ | 5 | $ | 7 | $ | 16 | $ | 14 | ||||||||||||||||||||||||||
Florida | Florida | 10,612 | 10,946 | 5 | 5 | 9 | 9 | Florida | 10,242 | 11,184 | 4 | 5 | 9 | 15 | 28 | 31 | ||||||||||||||||||||||||||||||||||||||||
Texas | Texas | 10,338 | 10,623 | 4 | 5 | 9 | 10 | Texas | 9,951 | 10,676 | 6 | 5 | 6 | 13 | 22 | 29 | ||||||||||||||||||||||||||||||||||||||||
New York | New York | 5,907 | 6,058 | 2 | 2 | 3 | 1 | New York | 6,403 | 6,557 | 2 | 2 | 2 | 2 | 7 | 3 | ||||||||||||||||||||||||||||||||||||||||
Georgia | 3,483 | 3,502 | 4 | 4 | 4 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
New Jersey | New Jersey | 3,306 | 3,449 | 1 | 1 | — | — | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 49,214 | 50,199 | 20 | 21 | 27 | 20 | Other | 49,568 | 51,579 | 19 | 24 | 20 | 31 | 67 | 70 | ||||||||||||||||||||||||||||||||||||||||
Total direct/indirect loan portfolio | Total direct/indirect loan portfolio | $ | 91,213 | $ | 93,830 | $ | 38 | $ | 40 | $ | 58 | $ | 48 | Total direct/indirect loan portfolio | $ | 91,338 | $ | 96,342 | $ | 35 | $ | 40 | $ | 42 | $ | 68 | $ | 142 | $ | 149 |
35Bank of America |
Table 28 | Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity (1) | Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity | ||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Nonperforming loans and leases, January 1 | $ | 5,166 | $ | 6,004 | ||||||||||||||||||||
Nonperforming loans and leases, beginning of period | Nonperforming loans and leases, beginning of period | $ | 4,639 | $ | 5,282 | $ | 5,166 | $ | 6,004 | |||||||||||||||
Additions | Additions | 812 | 818 | Additions | 484 | 999 | 1,895 | 2,499 | ||||||||||||||||
Reductions: | Reductions: | Reductions: | ||||||||||||||||||||||
Paydowns and payoffs | Paydowns and payoffs | (245 | ) | (296 | ) | Paydowns and payoffs | (238 | ) | (253 | ) | (744 | ) | (811 | ) | ||||||||||
Sales | Sales | (269 | ) | (142 | ) | Sales | (145 | ) | (162 | ) | (531 | ) | (423 | ) | ||||||||||
Returns to performing status | Returns to performing status | (364 | ) | (386 | ) | Returns to performing status | (309 | ) | (347 | ) | (1,009 | ) | (1,101 | ) | ||||||||||
Charge-offs | Charge-offs | (147 | ) | (174 | ) | Charge-offs | (89 | ) | (210 | ) | (350 | ) | (551 | ) | ||||||||||
Transfers to foreclosed properties | Transfers to foreclosed properties | (45 | ) | (57 | ) | Transfers to foreclosed properties | (36 | ) | (57 | ) | (119 | ) | (167 | ) | ||||||||||
Transfers to loans held-for-sale | Transfers to loans held-for-sale | (2 | ) | (221 | ) | Transfers to loans held-for-sale | — | — | (2 | ) | (198 | ) | ||||||||||||
Total net reductions to nonperforming loans and leases | Total net reductions to nonperforming loans and leases | (260 | ) | (458 | ) | Total net reductions to nonperforming loans and leases | (333 | ) | (30 | ) | (860 | ) | (752 | ) | ||||||||||
Total nonperforming loans and leases, March 31 (3) | 4,906 | 5,546 | ||||||||||||||||||||||
Foreclosed properties, March 31 (4) | 264 | 328 | ||||||||||||||||||||||
Nonperforming consumer loans, leases and foreclosed properties, March 31 | $ | 5,170 | $ | 5,874 | ||||||||||||||||||||
Total nonperforming loans and leases, September 30 | Total nonperforming loans and leases, September 30 | 4,306 | 5,252 | 4,306 | 5,252 | |||||||||||||||||||
Foreclosed properties, September 30 (2) | Foreclosed properties, September 30 (2) | 265 | 259 | 265 | 259 | |||||||||||||||||||
Nonperforming consumer loans, leases and foreclosed properties, September 30 | Nonperforming consumer loans, leases and foreclosed properties, September 30 | $ | 4,571 | $ | 5,511 | $ | 4,571 | $ | 5,511 | |||||||||||||||
Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases | Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases | 1.10 | % | 1.23 | % | Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases | 0.97 | % | 1.17 | % | ||||||||||||||
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties | Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties | 1.16 | 1.30 | Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties | 1.03 | 1.23 |
(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. |
Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally FHA-insured, of |
Outstanding consumer loans and leases exclude loans accounted for under the fair value option. |
Table 29 | Consumer Real Estate Troubled Debt Restructurings | Consumer Real Estate Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Nonperforming | Performing | Total | Nonperforming | Performing | Total | (Dollars in millions) | Nonperforming | Performing | Total | Nonperforming | Performing | Total | ||||||||||||||||||||||||||||||||||
Residential mortgage (1, 2, 3) | $ | 1,425 | $ | 6,594 | $ | 8,019 | $ | 1,535 | $ | 8,163 | $ | 9,698 | ||||||||||||||||||||||||||||||||||||
Residential mortgage (1, 2) | Residential mortgage (1, 2) | $ | 1,295 | $ | 5,703 | $ | 6,998 | $ | 1,535 | $ | 8,163 | $ | 9,698 | |||||||||||||||||||||||||||||||||||
Home equity | Home equity | 1,444 | 1,409 | 2,853 | 1,457 | 1,399 | 2,856 | Home equity | 1,308 | 1,369 | 2,677 | 1,457 | 1,399 | 2,856 | ||||||||||||||||||||||||||||||||||
Total consumer real estate troubled debt restructurings | Total consumer real estate troubled debt restructurings | $ | 2,869 | $ | 8,003 | $ | 10,872 | $ | 2,992 | $ | 9,562 | $ | 12,554 | Total consumer real estate troubled debt restructurings | $ | 2,603 | $ | 7,072 | $ | 9,675 | $ | 2,992 | $ | 9,562 | $ | 12,554 |
(1) | At |
(2) | Residential mortgage performing TDRs included $ |
(3) |
Home equity TDRs deemed collateral dependent totaled $ |
Table 30 | Commercial Credit Exposure by Type | Commercial Credit Exposure by Type | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial Utilized (1) | Commercial Unfunded (2, 3, 4) | Total Commercial Committed | Commercial Utilized (1) | Commercial Unfunded (2, 3, 4) | Total Commercial Committed | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | ||||||||||||||||||||||||||||||||||
Loans and leases (5) | Loans and leases (5) | $ | 492,900 | $ | 487,748 | $ | 375,888 | $ | 364,743 | $ | 868,788 | $ | 852,491 | Loans and leases (5) | $ | 489,368 | $ | 487,748 | $ | 369,332 | $ | 364,743 | $ | 858,700 | $ | 852,491 | ||||||||||||||||||||||
Derivative assets (6) | Derivative assets (6) | 47,869 | 37,762 | — | — | 47,869 | 37,762 | Derivative assets (6) | 45,617 | 37,762 | — | — | 45,617 | 37,762 | ||||||||||||||||||||||||||||||||||
Standby letters of credit and financial guarantees | Standby letters of credit and financial guarantees | 33,969 | 34,517 | 583 | 863 | 34,552 | 35,380 | Standby letters of credit and financial guarantees | 33,271 | 34,517 | 524 | 863 | 33,795 | 35,380 | ||||||||||||||||||||||||||||||||||
Debt securities and other investments | Debt securities and other investments | 26,998 | 28,161 | 4,461 | 4,864 | 31,459 | 33,025 | Debt securities and other investments | 25,636 | 28,161 | 4,692 | 4,864 | 30,328 | 33,025 | ||||||||||||||||||||||||||||||||||
Loans held-for-sale | Loans held-for-sale | 5,653 | 10,257 | 16,887 | 9,742 | 22,540 | 19,999 | Loans held-for-sale | 3,737 | 10,257 | 16,171 | 9,742 | 19,908 | 19,999 | ||||||||||||||||||||||||||||||||||
Commercial letters of credit | Commercial letters of credit | 1,351 | 1,467 | 117 | 155 | 1,468 | 1,622 | Commercial letters of credit | 1,336 | 1,467 | 296 | 155 | 1,632 | 1,622 | ||||||||||||||||||||||||||||||||||
Other | Other | 948 | 888 | — | — | 948 | 888 | Other | 940 | 888 | — | — | 940 | 888 | ||||||||||||||||||||||||||||||||||
Total | $ | 609,688 | $ | 600,800 | $ | 397,936 | $ | 380,367 | $ | 1,007,624 | $ | 981,167 | $ | 599,905 | $ | 600,800 | $ | 391,015 | $ | 380,367 | $ | 990,920 | $ | 981,167 |
(1) | Commercial utilized exposure includes loans of $ |
(2) | Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional amount of $ |
(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 $ |
(5) | Includes credit risk exposure associated with assets under operating lease arrangements of |
(6) | Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $ |
37Bank of America |
Table 31 | Commercial Credit Quality | Commercial Credit Quality | ||||||||||||||||||||||||||||||||||||||||||||||
Outstandings | Nonperforming | Accruing Past Due 90 Days or More | Outstandings | Nonperforming | Accruing Past Due 90 Days or More | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | ||||||||||||||||||||||||||||||||||
Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | U.S. commercial | $ | 288,476 | $ | 284,836 | $ | 1,059 | $ | 814 | $ | 98 | $ | 144 | U.S. commercial | $ | 285,662 | $ | 284,836 | $ | 699 | $ | 814 | $ | 114 | $ | 144 | ||||||||||||||||||||||
Non-U.S. commercial | Non-U.S. commercial | 97,365 | 97,792 | 255 | 299 | — | 3 | Non-U.S. commercial | 96,002 | 97,792 | 31 | 299 | — | 3 | ||||||||||||||||||||||||||||||||||
Total commercial and industrial | Total commercial and industrial | 385,841 | 382,628 | 1,314 | 1,113 | 98 | 147 | Total commercial and industrial | 381,664 | 382,628 | 730 | 1,113 | 114 | 147 | ||||||||||||||||||||||||||||||||||
Commercial real estate (1) | Commercial real estate (1) | 60,085 | 58,298 | 73 | 112 | 13 | 4 | Commercial real estate (1) | 60,835 | 58,298 | 46 | 112 | 1 | 4 | ||||||||||||||||||||||||||||||||||
Commercial lease financing | Commercial lease financing | 21,764 | 22,116 | 27 | 24 | 8 | 19 | Commercial lease financing | 21,546 | 22,116 | 14 | 24 | 33 | 19 | ||||||||||||||||||||||||||||||||||
467,690 | 463,042 | 1,414 | 1,249 | 119 | 170 | 464,045 | 463,042 | 790 | 1,249 | 148 | 170 | |||||||||||||||||||||||||||||||||||||
U.S. small business commercial (2) | U.S. small business commercial (2) | 13,892 | 13,649 | 58 | 55 | 76 | 75 | U.S. small business commercial (2) | 14,234 | 13,649 | 58 | 55 | 73 | 75 | ||||||||||||||||||||||||||||||||||
Commercial loans excluding loans accounted for under the fair value option | Commercial loans excluding loans accounted for under the fair value option | 481,582 | 476,691 | 1,472 | 1,304 | 195 | 245 | Commercial loans excluding loans accounted for under the fair value option | 478,279 | 476,691 | 848 | 1,304 | 221 | 245 | ||||||||||||||||||||||||||||||||||
Loans accounted for under the fair value option (3) | Loans accounted for under the fair value option (3) | 5,095 | 4,782 | 12 | 43 | — | — | Loans accounted for under the fair value option (3) | 4,976 | 4,782 | — | 43 | — | — | ||||||||||||||||||||||||||||||||||
Total commercial loans and leases | Total commercial loans and leases | $ | 486,677 | $ | 481,473 | $ | 1,484 | $ | 1,347 | $ | 195 | $ | 245 | Total commercial loans and leases | $ | 483,255 | $ | 481,473 | $ | 848 | $ | 1,347 | $ | 221 | $ | 245 |
(1) | Includes U.S. commercial real estate of $ |
(2) | Includes card-related products. |
(3) | Commercial loans accounted for under the fair value option include U.S. commercial of $ |
Table 32 | Commercial Net Charge-offs and Related Ratios | Commercial Net Charge-offs and Related Ratios | ||||||||||||||||||||||||||||||||||||||||
Net Charge-offs | Net Charge-off Ratios (1) | Net Charge-offs | Net Charge-off Ratios (1) | |||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | ||||||||||||||||||||||||||||||||||||||||
U.S. commercial | U.S. commercial | $ | 24 | $ | 44 | 0.03 | % | 0.06 | % | U.S. commercial | $ | 70 | $ | 80 | $ | 172 | $ | 176 | 0.10 | % | 0.11 | % | 0.08 | % | 0.09 | % | ||||||||||||||||
Non-U.S. commercial | Non-U.S. commercial | 4 | 15 | 0.02 | 0.07 | Non-U.S. commercial | 25 | 33 | 48 | 94 | 0.10 | 0.14 | 0.07 | 0.14 | ||||||||||||||||||||||||||||
Total commercial and industrial | Total commercial and industrial | 28 | 59 | 0.03 | 0.07 | Total commercial and industrial | 95 | 113 | 220 | 270 | 0.10 | 0.12 | 0.08 | 0.10 | ||||||||||||||||||||||||||||
Commercial real estate | Commercial real estate | (3 | ) | (4 | ) | (0.02 | ) | (0.03 | ) | Commercial real estate | 2 | 2 | 3 | 3 | 0.02 | 0.02 | 0.01 | 0.01 | ||||||||||||||||||||||||
Commercial lease financing | Commercial lease financing | (1 | ) | — | (0.01 | ) | — | Commercial lease financing | — | (1 | ) | — | — | — | (0.02 | ) | — | — | ||||||||||||||||||||||||
24 | 55 | 0.02 | 0.05 | 97 | 114 | 223 | 273 | 0.08 | 0.10 | 0.06 | 0.08 | |||||||||||||||||||||||||||||||
U.S. small business commercial | U.S. small business commercial | 57 | 52 | 1.67 | 1.61 | U.S. small business commercial | 59 | 55 | 180 | 160 | 1.67 | 1.61 | 1.72 | 1.60 | ||||||||||||||||||||||||||||
Total commercial | Total commercial | $ | 81 | $ | 107 | 0.07 | 0.10 | Total commercial | $ | 156 | $ | 169 | $ | 403 | $ | 433 | 0.13 | 0.14 | 0.11 | 0.13 |
(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 Utilized Reservable Criticized Exposure | Commercial Reservable Criticized Utilized Exposure (1, 2) | ||||||||||||||||||||||||||
Amount (1) | Percent (2) | Amount (1) | Percent (2) | |||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31, 2018 | December 31, 2017 | (Dollars in millions) | September 30, 2018 | December 31, 2017 | Commercial and industrial: | |||||||||||||||||||||
U.S. commercial | U.S. commercial | $ | 9,874 | 3.12 | % | $ | 9,891 | 3.15 | % | U.S. commercial | $ | 8,631 | 2.75 | % | $ | 9,891 | 3.15 | % | ||||||||||
Non-U.S. commercial | Non-U.S. commercial | 1,719 | 1.66 | 1,766 | 1.70 | Non-U.S. commercial | 1,298 | 1.27 | 1,766 | 1.70 | ||||||||||||||||||
Total commercial and industrial | Total commercial and industrial | 11,593 | 2.76 | 11,657 | 2.79 | Total commercial and industrial | 9,929 | 2.39 | 11,657 | 2.79 | ||||||||||||||||||
Commercial real estate | Commercial real estate | 523 | 0.85 | 566 | 0.95 | Commercial real estate | 565 | 0.91 | 566 | 0.95 | ||||||||||||||||||
Commercial lease financing | Commercial lease financing | 489 | 2.25 | 581 | 2.63 | Commercial lease financing | 373 | 1.73 | 581 | 2.63 | ||||||||||||||||||
12,605 | 2.50 | 12,804 | 2.57 | 10,867 | 2.18 | 12,804 | 2.57 | |||||||||||||||||||||
U.S. small business commercial | U.S. small business commercial | 761 | 5.48 | 759 | 5.56 | U.S. small business commercial | 730 | 5.13 | 759 | 5.56 | ||||||||||||||||||
Total commercial utilized reservable criticized exposure | $ | 13,366 | 2.58 | $ | 13,563 | 2.65 | ||||||||||||||||||||||
Total commercial reservable criticized utilized exposure (1) | Total commercial reservable criticized utilized exposure (1) | $ | 11,597 | 2.26 | $ | 13,563 | 2.65 |
(1) | Total commercial |
(2) | Percentages are calculated as commercial |
Table 34 | Outstanding Commercial Real Estate Loans | Outstanding Commercial Real Estate Loans | ||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | ||||||||||
By Geographic Region | By Geographic Region | By Geographic Region | ||||||||||||||
California | California | $ | 14,059 | $ | 13,607 | California | $ | 14,227 | $ | 13,607 | ||||||
Northeast | Northeast | 9,898 | 10,072 | Northeast | 10,954 | 10,072 | ||||||||||
Southwest | Southwest | 7,092 | 6,970 | Southwest | 7,374 | 6,970 | ||||||||||
Southeast | Southeast | 5,708 | 5,487 | Southeast | 5,718 | 5,487 | ||||||||||
Midwest | Midwest | 3,883 | 3,769 | Midwest | 3,916 | 3,769 | ||||||||||
Florida | Florida | 3,425 | 3,170 | Florida | 3,559 | 3,170 | ||||||||||
Illinois | Illinois | 2,970 | 3,263 | |||||||||||||
Midsouth | Midsouth | 3,386 | 2,962 | Midsouth | 2,917 | 2,962 | ||||||||||
Illinois | 2,838 | 3,263 | ||||||||||||||
Northwest | Northwest | 2,487 | 2,657 | Northwest | 2,290 | 2,657 | ||||||||||
Non-U.S. | Non-U.S. | 4,506 | 3,538 | Non-U.S. | 3,937 | 3,538 | ||||||||||
Other (1) | Other (1) | 2,803 | 2,803 | Other (1) | 2,973 | 2,803 | ||||||||||
Total outstanding commercial real estate loans | Total outstanding commercial real estate loans | $ | 60,085 | $ | 58,298 | Total outstanding commercial real estate loans | $ | 60,835 | $ | 58,298 | ||||||
By Property Type | By Property Type | By Property Type | ||||||||||||||
Non-residential | Non-residential | Non-residential | ||||||||||||||
Office | Office | $ | 17,442 | $ | 16,718 | Office | $ | 17,680 | $ | 16,718 | ||||||
Shopping centers / Retail | Shopping centers / Retail | 8,927 | 8,825 | Shopping centers / Retail | 8,752 | 8,825 | ||||||||||
Multi-family rental | Multi-family rental | 8,401 | 8,280 | Multi-family rental | 8,180 | 8,280 | ||||||||||
Hotels / Motels | Hotels / Motels | 6,410 | 6,344 | Hotels / Motels | 6,944 | 6,344 | ||||||||||
Industrial / Warehouse | Industrial / Warehouse | 5,948 | 6,070 | Industrial / Warehouse | 5,364 | 6,070 | ||||||||||
Unsecured | Unsecured | 3,039 | 2,187 | Unsecured | 3,146 | 2,187 | ||||||||||
Multi-use | Multi-use | 2,445 | 2,771 | Multi-use | 2,390 | 2,771 | ||||||||||
Land and land development | Land and land development | 149 | 160 | Land and land development | 140 | 160 | ||||||||||
Other | Other | 6,101 | 5,485 | Other | 6,642 | 5,485 | ||||||||||
Total non-residential | Total non-residential | 58,862 | 56,840 | Total non-residential | 59,238 | 56,840 | ||||||||||
Residential | Residential | 1,223 | 1,458 | Residential | 1,597 | 1,458 | ||||||||||
Total outstanding commercial real estate loans | Total outstanding commercial real estate loans | $ | 60,085 | $ | 58,298 | Total outstanding commercial real estate loans | $ | 60,835 | $ | 58,298 |
(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. |
39Bank of America |
Table 35 | Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2) | Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2) | ||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Nonperforming loans and leases, January 1 | $ | 1,304 | $ | 1,703 | ||||||||||||||||||||
Nonperforming loans and leases, beginning of period | Nonperforming loans and leases, beginning of period | $ | 1,258 | $ | 1,520 | $ | 1,304 | $ | 1,703 | |||||||||||||||
Additions | Additions | 436 | 472 | Additions | 235 | 412 | 915 | 1,172 | ||||||||||||||||
Reductions: | Reductions: | Reductions: | ||||||||||||||||||||||
Paydowns | Paydowns | (169 | ) | (267 | ) | Paydowns | (287 | ) | (270 | ) | (649 | ) | (803 | ) | ||||||||||
Sales | Sales | (24 | ) | (22 | ) | Sales | (130 | ) | (61 | ) | (204 | ) | (116 | ) | ||||||||||
Returns to performing status (3) | Returns to performing status (3) | (27 | ) | (54 | ) | Returns to performing status (3) | (95 | ) | (100 | ) | (213 | ) | (240 | ) | ||||||||||
Charge-offs | Charge-offs | (48 | ) | (82 | ) | Charge-offs | (116 | ) | (145 | ) | (276 | ) | (312 | ) | ||||||||||
Transfers to foreclosed properties | Transfers to foreclosed properties | — | (22 | ) | Transfers to foreclosed properties | (12 | ) | — | (12 | ) | (27 | ) | ||||||||||||
Total net additions to nonperforming loans and leases | 168 | 25 | ||||||||||||||||||||||
Total nonperforming loans and leases, March 31 | 1,472 | 1,728 | ||||||||||||||||||||||
Foreclosed properties, March 31 | 52 | 35 | ||||||||||||||||||||||
Nonperforming commercial loans, leases and foreclosed properties, March 31 | $ | 1,524 | $ | 1,763 | ||||||||||||||||||||
Transfers to loans held-for-sale | Transfers to loans held-for-sale | (5 | ) | (38 | ) | (17 | ) | (59 | ) | |||||||||||||||
Total net reductions to nonperforming loans and leases | Total net reductions to nonperforming loans and leases | (410 | ) | (202 | ) | (456 | ) | (385 | ) | |||||||||||||||
Total nonperforming loans and leases, September 30 | Total nonperforming loans and leases, September 30 | 848 | 1,318 | 848 | 1,318 | |||||||||||||||||||
Foreclosed properties, September 30 | Foreclosed properties, September 30 | 30 | 40 | 30 | 40 | |||||||||||||||||||
Nonperforming commercial loans, leases and foreclosed properties, September 30 | Nonperforming commercial loans, leases and foreclosed properties, September 30 | $ | 878 | $ | 1,358 | $ | 878 | $ | 1,358 | |||||||||||||||
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4) | Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4) | 0.31 | % | 0.38 | % | Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4) | 0.18 | % | 0.28 | % | ||||||||||||||
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4) | Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4) | 0.32 | 0.39 | Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4) | 0.18 | 0.29 |
(1) | Balances do not include nonperforming LHFS of |
(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 | Commercial Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Nonperforming | Performing | Total | Nonperforming | Performing | Total | (Dollars in millions) | Nonperforming | Performing | Total | Nonperforming | Performing | Total | Commercial and industrial: | |||||||||||||||||||||||||||||||||
U.S. commercial | U.S. commercial | $ | 432 | $ | 919 | $ | 1,351 | $ | 370 | $ | 866 | $ | 1,236 | U.S. commercial | $ | 285 | $ | 1,058 | $ | 1,343 | $ | 370 | $ | 866 | $ | 1,236 | ||||||||||||||||||||||
Non-U.S. commercial | Non-U.S. commercial | 224 | 220 | 444 | 11 | 219 | 230 | Non-U.S. commercial | 9 | 204 | 213 | 11 | 219 | 230 | ||||||||||||||||||||||||||||||||||
Total commercial and industrial | Total commercial and industrial | 656 | 1,139 | 1,795 | 381 | 1,085 | 1,466 | Total commercial and industrial | 294 | 1,262 | 1,556 | 381 | 1,085 | 1,466 | ||||||||||||||||||||||||||||||||||
Commercial real estate | Commercial real estate | 18 | 3 | 21 | 38 | 9 | 47 | Commercial real estate | 4 | 6 | 10 | 38 | 9 | 47 | ||||||||||||||||||||||||||||||||||
Commercial lease financing | Commercial lease financing | 4 | 11 | 15 | 5 | 13 | 18 | Commercial lease financing | 2 | 72 | 74 | 5 | 13 | 18 | ||||||||||||||||||||||||||||||||||
678 | 1,153 | 1,831 | 424 | 1,107 | 1,531 | 300 | 1,340 | 1,640 | 424 | 1,107 | 1,531 | |||||||||||||||||||||||||||||||||||||
U.S. small business commercial | U.S. small business commercial | 4 | 16 | 20 | 4 | 15 | 19 | U.S. small business commercial | 4 | 18 | 22 | 4 | 15 | 19 | ||||||||||||||||||||||||||||||||||
Total commercial troubled debt restructurings | Total commercial troubled debt restructurings | $ | 682 | $ | 1,169 | $ | 1,851 | $ | 428 | $ | 1,122 | $ | 1,550 | Total commercial troubled debt restructurings | $ | 304 | $ | 1,358 | $ | 1,662 | $ | 428 | $ | 1,122 | $ | 1,550 |
Bank of America40 |
Table 37 | Commercial Credit Exposure by Industry (1) | Commercial Credit Exposure by Industry (1) | ||||||||||||||||||||||||||||||
Commercial Utilized | Total Commercial Committed (2) | Commercial Utilized | Total Commercial Committed (2) | |||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | (Dollars in millions) | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | ||||||||||||||||||||||
Asset managers and funds | Asset managers and funds | $ | 70,819 | $ | 59,190 | $ | 103,466 | $ | 91,092 | Asset managers and funds | $ | 68,733 | $ | 59,190 | $ | 103,066 | $ | 91,092 | ||||||||||||||
Real estate (3) | Real estate (3) | 64,507 | 61,940 | 88,750 | 83,773 | Real estate (3) | 64,460 | 61,940 | 90,664 | 83,773 | ||||||||||||||||||||||
Capital goods | Capital goods | 39,560 | 36,705 | 73,650 | 70,417 | Capital goods | 40,327 | 36,705 | 74,720 | 70,417 | ||||||||||||||||||||||
Government and public education | Government and public education | 44,436 | 48,684 | 55,296 | 58,067 | |||||||||||||||||||||||||||
Healthcare equipment and services | Healthcare equipment and services | 37,456 | 37,780 | 58,960 | 57,256 | Healthcare equipment and services | 34,943 | 37,780 | 54,889 | 57,256 | ||||||||||||||||||||||
Government and public education | 47,499 | 48,684 | 57,269 | 58,067 | ||||||||||||||||||||||||||||
Finance companies | Finance companies | 31,984 | 34,050 | 52,392 | 53,107 | Finance companies | 33,549 | 34,050 | 53,375 | 53,107 | ||||||||||||||||||||||
Materials | Materials | 26,213 | 24,001 | 50,569 | 47,386 | Materials | 25,727 | 24,001 | 49,461 | 47,386 | ||||||||||||||||||||||
Retailing | Retailing | 25,679 | 26,117 | 45,241 | 48,796 | Retailing | 25,714 | 26,117 | 47,823 | 48,796 | ||||||||||||||||||||||
Food, beverage and tobacco | Food, beverage and tobacco | 22,351 | 23,252 | 44,620 | 42,815 | Food, beverage and tobacco | 23,199 | 23,252 | 45,166 | 42,815 | ||||||||||||||||||||||
Consumer services | Consumer services | 27,160 | 27,191 | 43,005 | 43,605 | Consumer services | 24,975 | 27,191 | 42,276 | 43,605 | ||||||||||||||||||||||
Media | 13,089 | 19,155 | 36,778 | 33,955 | ||||||||||||||||||||||||||||
Commercial services and supplies | Commercial services and supplies | 22,686 | 22,100 | 36,387 | 35,496 | Commercial services and supplies | 21,861 | 22,100 | 37,644 | 35,496 | ||||||||||||||||||||||
Energy | Energy | 15,888 | 16,345 | 35,564 | 36,765 | Energy | 16,319 | 16,345 | 34,462 | 36,765 | ||||||||||||||||||||||
Transportation | Transportation | 21,887 | 21,704 | 30,694 | 29,946 | |||||||||||||||||||||||||||
Media | Media | 10,581 | 19,155 | 28,523 | 33,955 | |||||||||||||||||||||||||||
Global commercial banks | Global commercial banks | 28,142 | 29,491 | 30,218 | 31,764 | Global commercial banks | 25,471 | 29,491 | 27,752 | 31,764 | ||||||||||||||||||||||
Transportation | 21,652 | 21,704 | 30,121 | 29,946 | ||||||||||||||||||||||||||||
Utilities | Utilities | 11,515 | 11,342 | 28,639 | 27,935 | Utilities | 11,496 | 11,342 | 27,495 | 27,935 | ||||||||||||||||||||||
Individuals and trusts | Individuals and trusts | 19,276 | 18,549 | 25,161 | 25,097 | Individuals and trusts | 18,706 | 18,549 | 25,332 | 25,097 | ||||||||||||||||||||||
Technology hardware and equipment | Technology hardware and equipment | 10,116 | 10,728 | 21,691 | 22,071 | Technology hardware and equipment | 10,054 | 10,728 | 21,759 | 22,071 | ||||||||||||||||||||||
Pharmaceuticals and biotechnology | Pharmaceuticals and biotechnology | 7,430 | 5,653 | 19,396 | 18,623 | |||||||||||||||||||||||||||
Vehicle dealers | Vehicle dealers | 15,930 | 16,896 | 19,128 | 20,361 | |||||||||||||||||||||||||||
Consumer durables and apparel | Consumer durables and apparel | 9,432 | 8,859 | 18,129 | 17,296 | |||||||||||||||||||||||||||
Software and services | Software and services | 7,971 | 8,562 | 20,757 | 18,202 | Software and services | 7,489 | 8,562 | 16,558 | 18,202 | ||||||||||||||||||||||
Vehicle dealers | 16,621 | 16,896 | 20,409 | 20,361 | ||||||||||||||||||||||||||||
Pharmaceuticals and biotechnology | 4,785 | 5,653 | 20,116 | 18,623 | ||||||||||||||||||||||||||||
Consumer durables and apparel | 9,286 | 8,859 | 18,535 | 17,296 | ||||||||||||||||||||||||||||
Automobiles and components | Automobiles and components | 7,097 | 5,988 | 13,993 | 13,318 | Automobiles and components | 6,990 | 5,988 | 14,271 | 13,318 | ||||||||||||||||||||||
Insurance | Insurance | 6,230 | 6,411 | 12,853 | 12,990 | Insurance | 5,818 | 6,411 | 13,785 | 12,990 | ||||||||||||||||||||||
Telecommunication services | Telecommunication services | 6,234 | 6,389 | 12,823 | 13,108 | Telecommunication services | 6,837 | 6,389 | 12,786 | 13,108 | ||||||||||||||||||||||
Food and staples retailing | Food and staples retailing | 5,298 | 4,955 | 11,452 | 15,589 | Food and staples retailing | 4,840 | 4,955 | 10,100 | 15,589 | ||||||||||||||||||||||
Religious and social organizations | Religious and social organizations | 3,823 | 4,454 | 5,697 | 6,318 | Religious and social organizations | 3,705 | 4,454 | 5,586 | 6,318 | ||||||||||||||||||||||
Financial markets infrastructure (clearinghouses) | Financial markets infrastructure (clearinghouses) | 1,499 | 688 | 3,261 | 2,403 | Financial markets infrastructure (clearinghouses) | 1,111 | 688 | 2,906 | 2,403 | ||||||||||||||||||||||
Other | Other | 5,252 | 3,621 | 5,247 | 3,616 | Other | 7,885 | 3,621 | 7,878 | 3,616 | ||||||||||||||||||||||
Total commercial credit exposure by industry | Total commercial credit exposure by industry | $ | 609,688 | $ | 600,800 | $ | 1,007,624 | $ | 981,167 | Total commercial credit exposure by industry | $ | 599,905 | $ | 600,800 | $ | 990,920 | $ | 981,167 | ||||||||||||||
Net credit default protection purchased on total commitments (4) | Net credit default protection purchased on total commitments (4) | $ | (2,194 | ) | $ | (2,129 | ) | Net credit default protection purchased on total commitments (4) | $ | (2,197 | ) | $ | (2,129 | ) |
(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 |
(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 |
(4) | Represents net notional credit protection purchased. For more information, see Commercial Portfolio Credit Risk Management – Risk Mitigation. |
41Bank of America |
Table 38 | Net Credit Default Protection by Maturity | Net Credit Default Protection by Maturity | ||||||||||
March 31 2018 | December 31 2017 | September 30 2018 | December 31 2017 | |||||||||
Less than or equal to one year | Less than or equal to one year | 40 | % | 42 | % | Less than or equal to one year | 33 | % | 42 | % | ||
Greater than one year and less than or equal to five years | Greater than one year and less than or equal to five years | 53 | 58 | Greater than one year and less than or equal to five years | 61 | 58 | ||||||
Greater than five years | Greater than five years | 7 | — | Greater than five years | 6 | — | ||||||
Total net credit default protection | Total net credit default protection | 100 | % | 100 | % | Total net credit default protection | 100 | % | 100 | % |
Table 39 | Net Credit Default Protection by Credit Exposure Debt Rating | Net Credit Default Protection by Credit Exposure Debt Rating | ||||||||||||||||||||||||||
Net Notional (1) | Percent of Total | Net Notional (1) | Percent of Total | Net Notional (1) | Percent of Total | Net Notional (1) | Percent of Total | |||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | March 31, 2018 | December 31, 2017 | (Dollars in millions) | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
Ratings (2, 3) | Ratings (2, 3) | Ratings (2, 3) | ||||||||||||||||||||||||||
A | A | $ | (375 | ) | 17.1 | % | $ | (280 | ) | 13.2 | % | A | $ | (546 | ) | 24.9 | % | $ | (280 | ) | 13.2 | % | ||||||
BBB | BBB | (326 | ) | 14.9 | (459 | ) | 21.6 | BBB | (259 | ) | 11.8 | (459 | ) | 21.6 | ||||||||||||||
BB | BB | (1,152 | ) | 52.5 | (893 | ) | 41.9 | BB | (794 | ) | 36.1 | (893 | ) | 41.9 | ||||||||||||||
B | B | (208 | ) | 9.5 | (403 | ) | 18.9 | B | (373 | ) | 17.0 | (403 | ) | 18.9 | ||||||||||||||
CCC and below | CCC and below | (118 | ) | 5.4 | (84 | ) | 3.9 | CCC and below | (198 | ) | 9.0 | (84 | ) | 3.9 | ||||||||||||||
NR (4) | NR (4) | (15 | ) | 0.6 | (10 | ) | 0.5 | NR (4) | (27 | ) | 1.2 | (10 | ) | 0.5 | ||||||||||||||
Total net credit default protection | Total net credit default protection | $ | (2,194 | ) | 100.0 | % | $ | (2,129 | ) | 100.0 | % | Total net credit default protection | $ | (2,197 | ) | 100.0 | % | $ | (2,129 | ) | 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 | Credit Derivatives | Credit Derivatives | ||||||||||||||
Contract/ Notional | Credit Risk | Contract/ Notional | Credit Risk | |||||||||||||
(Dollars in millions) | March 31, 2018 | |||||||||||||||
(Dollars in billions) | (Dollars in billions) | September 30, 2018 | ||||||||||||||
Purchased credit derivatives: | Purchased credit derivatives: | Purchased credit derivatives: | ||||||||||||||
Credit default swaps | Credit default swaps | $ | 484,071 | $ | 2,383 | Credit default swaps | $ | 430.3 | $ | 2.2 | ||||||
Total return swaps/options | Total return swaps/options | 67,587 | 298 | Total return swaps/options | 64.6 | 0.5 | ||||||||||
Total purchased credit derivatives | Total purchased credit derivatives | $ | 551,658 | $ | 2,681 | Total purchased credit derivatives | $ | 494.9 | $ | 2.7 | ||||||
Written credit derivatives: | Written credit derivatives: | Written credit derivatives: | ||||||||||||||
Credit default swaps | Credit default swaps | $ | 457,370 | n/a | Credit default swaps | $ | 398.2 | n/a | ||||||||
Total return swaps/options | Total return swaps/options | 65,220 | n/a | Total return swaps/options | 62.5 | n/a | ||||||||||
Total written credit derivatives | Total written credit derivatives | $ | 522,590 | n/a | Total written credit derivatives | $ | 460.7 | n/a | ||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||
Purchased credit derivatives: | Purchased credit derivatives: | Purchased credit derivatives: | ||||||||||||||
Credit default swaps | Credit default swaps | $ | 470,907 | $ | 2,434 | Credit default swaps | $ | 470.9 | $ | 2.4 | ||||||
Total return swaps/options | Total return swaps/options | 54,135 | 277 | Total return swaps/options | 54.1 | 0.3 | ||||||||||
Total purchased credit derivatives | Total purchased credit derivatives | $ | 525,042 | $ | 2,711 | Total purchased credit derivatives | $ | 525.0 | $ | 2.7 | ||||||
Written credit derivatives: | Written credit derivatives: | Written credit derivatives: | ||||||||||||||
Credit default swaps | Credit default swaps | $ | 448,201 | n/a | Credit default swaps | $ | 448.2 | n/a | ||||||||
Total return swaps/options | Total return swaps/options | 55,223 | n/a | Total return swaps/options | 55.2 | n/a | ||||||||||
Total written credit derivatives | Total written credit derivatives | $ | 503,424 | n/a | Total written credit derivatives | $ | 503.4 | n/a |
Table 41 | Credit Valuation Gains and Losses | |||||||||||||||||||
Three Months Ended March 31 | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | ||||||||||||||||||
Gains (Losses) | Gross | Hedge | Net | Gross | Hedge | Net | ||||||||||||||
Credit valuation | $ | (24 | ) | $ | 42 | $ | 18 | $ | 161 | $ | (135 | ) | $ | 26 |
Table 42 | Top 20 Non-U.S. Countries Exposure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table 41 | Top 20 Non-U.S. Countries Exposure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Funded Loans and Loan Equivalents | Unfunded Loan Commitments | Net Counterparty Exposure | Securities/ Other Investments | Country Exposure at March 31 2018 | Hedges and Credit Default Protection | Net Country Exposure at March 31 2018 | Increase (Decrease) from December 31 2017 | (Dollars in millions) | Funded Loans and Loan Equivalents | Unfunded Loan Commitments | Net Counterparty Exposure | Securities/ Other Investments | Country Exposure at September 30 2018 | Hedges and Credit Default Protection | Net Country Exposure at September 30 2018 | Increase (Decrease) from December 31 2017 | ||||||||||||||||||||||||||||||||||||||||||||||
United Kingdom | United Kingdom | $ | 26,362 | $ | 18,105 | $ | 6,710 | $ | 1,478 | $ | 52,655 | $ | (5,714 | ) | $ | 46,941 | $ | 9,346 | United Kingdom | $ | 39,114 | $ | 15,034 | $ | 5,601 | $ | 1,111 | $ | 60,860 | $ | (3,757 | ) | $ | 57,103 | $ | 19,508 | ||||||||||||||||||||||||||||
Germany | Germany | 18,749 | 8,751 | 1,590 | 1,766 | 30,856 | (3,250 | ) | 27,606 | 6,103 | Germany | 26,417 | 6,278 | 2,428 | 789 | 35,912 | (3,499 | ) | 32,413 | 10,910 | ||||||||||||||||||||||||||||||||||||||||||||
Japan | Japan | 17,109 | 2,280 | 1,397 | 2,781 | 23,567 | (1,418 | ) | 22,149 | 13,059 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canada | Canada | 7,262 | 7,373 | 1,838 | 2,020 | 18,493 | (844 | ) | 17,649 | (1,074 | ) | Canada | 7,515 | 6,944 | 1,669 | 2,682 | 18,810 | (462 | ) | 18,348 | (375 | ) | ||||||||||||||||||||||||||||||||||||||||||
France | France | 6,654 | 5,590 | 2,935 | 3,347 | 18,526 | (3,429 | ) | 15,097 | 4,554 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
China | China | 13,118 | 940 | 1,293 | 1,255 | 16,606 | (282 | ) | 16,324 | 399 | China | 12,307 | 377 | 1,096 | 866 | 14,646 | (292 | ) | 14,354 | (1,571 | ) | |||||||||||||||||||||||||||||||||||||||||||
Japan | 12,992 | 639 | 1,318 | 473 | 15,422 | (1,472 | ) | 13,950 | 4,860 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
France | 5,539 | 5,818 | 2,436 | 3,070 | 16,863 | (5,098 | ) | 11,765 | 1,222 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Netherlands | Netherlands | 7,220 | 2,044 | 817 | 1,306 | 11,387 | (922 | ) | 10,465 | 1,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Australia | Australia | 5,188 | 3,524 | 589 | 1,550 | 10,851 | (612 | ) | 10,239 | (350 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Brazil | Brazil | 6,779 | 811 | 326 | 2,323 | 10,239 | (391 | ) | 9,848 | (868 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
India | India | 7,332 | 357 | 344 | 3,366 | 11,399 | (78 | ) | 11,321 | 824 | India | 6,656 | 513 | 343 | 2,205 | 9,717 | (104 | ) | 9,613 | (884 | ) | |||||||||||||||||||||||||||||||||||||||||||
Brazil | 7,309 | 1,078 | 606 | 2,796 | 11,789 | (532 | ) | 11,257 | 541 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Australia | 5,422 | 2,879 | 566 | 1,618 | 10,485 | (431 | ) | 10,054 | (535 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Netherlands | 6,897 | 2,332 | 769 | 1,287 | 11,285 | (1,785 | ) | 9,500 | 1,033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
South Korea | South Korea | 5,561 | 613 | 684 | 1,554 | 8,412 | (284 | ) | 8,128 | 227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hong Kong | Hong Kong | 7,388 | 188 | 559 | 1,051 | 9,186 | (79 | ) | 9,107 | 429 | Hong Kong | 6,144 | 216 | 475 | 1,289 | 8,124 | (34 | ) | 8,090 | (588 | ) | |||||||||||||||||||||||||||||||||||||||||||
South Korea | 5,054 | 609 | 632 | 2,736 | 9,031 | (357 | ) | 8,674 | 773 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Switzerland | Switzerland | 4,951 | 2,966 | 215 | 229 | 8,361 | (1,122 | ) | 7,239 | 1,442 | Switzerland | 4,752 | 3,128 | 331 | 199 | 8,410 | (1,030 | ) | 7,380 | 1,583 | ||||||||||||||||||||||||||||||||||||||||||||
Singapore | Singapore | 3,488 | 153 | 591 | 2,316 | 6,548 | (76 | ) | 6,472 | 209 | Singapore | 3,305 | 142 | 602 | 1,739 | 5,788 | (71 | ) | 5,717 | (546 | ) | |||||||||||||||||||||||||||||||||||||||||||
Mexico | Mexico | 3,088 | 1,954 | 112 | 248 | 5,402 | (485 | ) | 4,917 | (570 | ) | Mexico | 3,349 | 1,450 | 99 | 684 | 5,582 | (151 | ) | 5,431 | (56 | ) | ||||||||||||||||||||||||||||||||||||||||||
Belgium | Belgium | 3,444 | 1,029 | 124 | 407 | 5,004 | (509 | ) | 4,495 | 530 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Arab Emirates | United Arab Emirates | 2,895 | 154 | 142 | 107 | 3,298 | (17 | ) | 3,281 | (106 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Spain | Spain | 2,618 | 1,062 | 193 | 1,440 | 5,313 | (730 | ) | 4,583 | 1,475 | Spain | 2,470 | 990 | 144 | 860 | 4,464 | (1,379 | ) | 3,085 | (23 | ) | |||||||||||||||||||||||||||||||||||||||||||
Belgium | 2,741 | 968 | 112 | 1,077 | 4,898 | (411 | ) | 4,487 | 522 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taiwan | Taiwan | 1,741 | 13 | 405 | 597 | 2,756 | — | 2,756 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Italy | Italy | 2,947 | 1,491 | 520 | 825 | 5,783 | (1,350 | ) | 4,433 | 187 | Italy | 2,256 | 1,007 | 615 | 527 | 4,405 | (1,679 | ) | 2,726 | (1,520 | ) | |||||||||||||||||||||||||||||||||||||||||||
United Arab Emirates | 2,824 | 349 | 273 | 60 | 3,506 | (42 | ) | 3,464 | 77 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Turkey | 2,707 | 83 | 49 | 321 | 3,160 | (12 | ) | 3,148 | 159 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total top 20 non-U.S. countries exposure | Total top 20 non-U.S. countries exposure | $ | 148,788 | $ | 58,095 | $ | 20,726 | $ | 29,432 | $ | 257,041 | $ | (24,150 | ) | $ | 232,891 | $ | 27,422 | Total top 20 non-U.S. countries exposure | $ | 170,876 | $ | 52,137 | $ | 20,822 | $ | 26,923 | $ | 270,758 | $ | (20,040 | ) | $ | 250,718 | $ | 45,526 |
43Bank of America |
Table 43 | Allowance for Credit Losses | |||||||||||||||||||||||
Table 42 | Allowance for Credit Losses | |||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2018 | 2017 | (Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Allowance for loan and lease losses, January 1 (1) | $ | 10,393 | $ | 11,237 | ||||||||||||||||||||
Allowance for loan and lease losses, beginning of period | Allowance for loan and lease losses, beginning of period | $ | 10,050 | $ | 10,875 | $ | 10,393 | $ | 11,237 | |||||||||||||||
Loans and leases charged off | Loans and leases charged off | Loans and leases charged off | ||||||||||||||||||||||
Residential mortgage | Residential mortgage | (56 | ) | (61 | ) | Residential mortgage | (45 | ) | (51 | ) | (137 | ) | (157 | ) | ||||||||||
Home equity | Home equity | (118 | ) | (143 | ) | Home equity | (110 | ) | (180 | ) | (329 | ) | (476 | ) | ||||||||||
U.S. credit card | U.S. credit card | (824 | ) | (718 | ) | U.S. credit card | (826 | ) | (727 | ) | (2,515 | ) | (2,198 | ) | ||||||||||
Non-U.S. credit card (2) | — | (59 | ) | |||||||||||||||||||||
Non-U.S. credit card (1) | Non-U.S. credit card (1) | — | — | — | (103 | ) | ||||||||||||||||||
Direct/Indirect consumer | Direct/Indirect consumer | (133 | ) | (114 | ) | Direct/Indirect consumer | (120 | ) | (136 | ) | (376 | ) | (358 | ) | ||||||||||
Other consumer | Other consumer | (49 | ) | (55 | ) | Other consumer | (46 | ) | (56 | ) | (140 | ) | (160 | ) | ||||||||||
Total consumer charge-offs | Total consumer charge-offs | (1,180 | ) | (1,150 | ) | Total consumer charge-offs | (1,147 | ) | (1,150 | ) | (3,497 | ) | (3,452 | ) | ||||||||||
U.S. commercial | U.S. commercial | (108 | ) | (137 | ) | U.S. commercial | (161 | ) | (171 | ) | (437 | ) | (449 | ) | ||||||||||
Non-U.S. commercial | Non-U.S. commercial | (7 | ) | (20 | ) | Non-U.S. commercial | (25 | ) | (34 | ) | (61 | ) | (100 | ) | ||||||||||
Commercial real estate | Commercial real estate | (2 | ) | (4 | ) | (9 | ) | (12 | ) | |||||||||||||||
Commercial lease financing | Commercial lease financing | (1 | ) | (3 | ) | Commercial lease financing | (1 | ) | (3 | ) | (6 | ) | (9 | ) | ||||||||||
Total commercial charge-offs | Total commercial charge-offs | (116 | ) | (160 | ) | Total commercial charge-offs | (189 | ) | (212 | ) | (513 | ) | (570 | ) | ||||||||||
Total loans and leases charged off | Total loans and leases charged off | (1,296 | ) | (1,310 | ) | Total loans and leases charged off | (1,336 | ) | (1,362 | ) | (4,010 | ) | (4,022 | ) | ||||||||||
Recoveries of loans and leases previously charged off | Recoveries of loans and leases previously charged off | Recoveries of loans and leases previously charged off | ||||||||||||||||||||||
Residential mortgage | Residential mortgage | 62 | 44 | Residential mortgage | 33 | 133 | 124 | 241 | ||||||||||||||||
Home equity | Home equity | 85 | 79 | Home equity | 130 | 97 | 316 | 279 | ||||||||||||||||
U.S. credit card | U.S. credit card | 123 | 112 | U.S. credit card | 128 | 115 | 377 | 340 | ||||||||||||||||
Non-U.S. credit card (2) | — | 15 | ||||||||||||||||||||||
Non-U.S. credit card (1) | Non-U.S. credit card (1) | — | — | — | 28 | |||||||||||||||||||
Direct/Indirect consumer | Direct/Indirect consumer | 75 | 66 | Direct/Indirect consumer | 78 | 68 | 234 | 209 | ||||||||||||||||
Other consumer | Other consumer | 5 | 7 | Other consumer | 2 | 6 | 10 | 46 | ||||||||||||||||
Total consumer recoveries | Total consumer recoveries | 350 | 323 | Total consumer recoveries | 371 | 419 | 1,061 | 1,143 | ||||||||||||||||
U.S. commercial (4) | 27 | 41 | ||||||||||||||||||||||
U.S. commercial (3) | U.S. commercial (3) | 32 | 36 | 85 | 113 | |||||||||||||||||||
Non-U.S. commercial | Non-U.S. commercial | 3 | 5 | Non-U.S. commercial | — | 1 | 13 | 6 | ||||||||||||||||
Commercial real estate | Commercial real estate | 3 | 4 | Commercial real estate | — | 2 | 6 | 9 | ||||||||||||||||
Commercial lease financing | Commercial lease financing | 2 | 3 | Commercial lease financing | 1 | 4 | 6 | 9 | ||||||||||||||||
Total commercial recoveries | Total commercial recoveries | 35 | 53 | Total commercial recoveries | 33 | 43 | 110 | 137 | ||||||||||||||||
Total recoveries of loans and leases previously charged off | Total recoveries of loans and leases previously charged off | 385 | 376 | Total recoveries of loans and leases previously charged off | 404 | 462 | 1,171 | 1,280 | ||||||||||||||||
Net charge-offs | Net charge-offs | (911 | ) | (934 | ) | Net charge-offs | (932 | ) | (900 | ) | (2,839 | ) | (2,742 | ) | ||||||||||
Write-offs of PCI loans | Write-offs of PCI loans | (35 | ) | (33 | ) | Write-offs of PCI loans | (95 | ) | (73 | ) | (166 | ) | (161 | ) | ||||||||||
Provision for loan and lease losses | Provision for loan and lease losses | 829 | 840 | Provision for loan and lease losses | 711 | 829 | 2,362 | 2,395 | ||||||||||||||||
Other (5) | (16 | ) | 2 | |||||||||||||||||||||
Allowance for loan and lease losses, March 31 (1) | 10,260 | 11,112 | ||||||||||||||||||||||
Reserve for unfunded lending commitments, January 1 | 777 | 762 | ||||||||||||||||||||||
Other (4) | Other (4) | — | (38 | ) | (16 | ) | (36 | ) | ||||||||||||||||
Allowance for loan and lease losses, September 30 | Allowance for loan and lease losses, September 30 | 9,734 | 10,693 | 9,734 | 10,693 | |||||||||||||||||||
Reserve for unfunded lending commitments, beginning of period | Reserve for unfunded lending commitments, beginning of period | 787 | 757 | 777 | 762 | |||||||||||||||||||
Provision for unfunded lending commitments | Provision for unfunded lending commitments | 5 | (5 | ) | Provision for unfunded lending commitments | 5 | 5 | 15 | — | |||||||||||||||
Reserve for unfunded lending commitments, March 31 | 782 | 757 | ||||||||||||||||||||||
Allowance for credit losses, March 31 (1) | $ | 11,042 | $ | 11,869 | ||||||||||||||||||||
Reserve for unfunded lending commitments, September 30 | Reserve for unfunded lending commitments, September 30 | 792 | 762 | 792 | 762 | |||||||||||||||||||
Allowance for credit losses, September 30 | Allowance for credit losses, September 30 | $ | 10,526 | $ | 11,455 | $ | 10,526 | $ | 11,455 |
(1) |
(2) | Includes U.S. small business commercial charge-offs |
(3) | Includes U.S. small business commercial |
(4) |
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held for sale and certain other reclassifications. |
45Bank of America |
Table 43 | Allowance for Credit Losses (continued) | |||||||
Three Months Ended March 31 | ||||||||
(Dollars in millions) | 2018 | 2017 | ||||||
Loan and allowance ratios (6): | ||||||||
Loans and leases outstanding at March 31 (7) | $ | 928,089 | $ | 908,219 | ||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at March 31 (7) | 1.11 | % | 1.25 | % | ||||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at March 31 (8) | 1.18 | 1.36 | ||||||
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at March 31 (9) | 1.04 | 1.14 | ||||||
Average loans and leases outstanding (7) | $ | 926,297 | $ | 906,585 | ||||
Annualized net charge-offs as a percentage of average loans and leases outstanding (7, 10) | 0.40 | % | 0.42 | % | ||||
Annualized net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding (7) | 0.41 | 0.43 | ||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at March 31 (7, 11) | 161 | 156 | ||||||
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs (10) | 2.78 | 3.00 | ||||||
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs and PCI write-offs | 2.67 | 2.90 | ||||||
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31 (12) | $ | 3,992 | $ | 4,047 | ||||
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 March 31 (7, 12) | 98 | % | 100 | % |
Table 42 | Allowance for Credit Losses (continued) | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Loan and allowance ratios: | ||||||||||||||||
Loans and leases outstanding at September 30 (5) | $ | 924,070 | $ | 920,832 | $ | 924,070 | $ | 920,832 | ||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at September 30 (5) | 1.05 | % | 1.16 | % | 1.05 | % | 1.16 | % | ||||||||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at September 30 (6) | 1.12 | 1.25 | 1.12 | 1.25 | ||||||||||||
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at September 30 (7) | 0.99 | 1.08 | 0.99 | 1.08 | ||||||||||||
Average loans and leases outstanding (5) | $ | 925,091 | $ | 911,945 | $ | 926,664 | $ | 908,670 | ||||||||
Annualized net charge-offs as a percentage of average loans and leases outstanding (5, 8) | 0.40 | % | 0.39 | % | 0.41 | % | 0.40 | % | ||||||||
Annualized net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding (5) | 0.44 | 0.42 | 0.43 | 0.43 | ||||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at September 30 (5) | 189 | 163 | 189 | 163 | ||||||||||||
Ratio of the allowance for loan and lease losses at September 30 to annualized net charge-offs (8) | 2.63 | 3.00 | 2.56 | 2.92 | ||||||||||||
Ratio of the allowance for loan and lease losses at September 30 to annualized net charge-offs and PCI write-offs | 2.39 | 2.77 | 2.42 | 2.76 | ||||||||||||
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at September 30 (9) | $ | 4,027 | $ | 3,880 | $ | 4,027 | $ | 3,880 | ||||||||
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 September 30 (5, 9) | 111 | % | 104 | % | 111 | % | 104 | % |
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of $ |
(6) | Excludes consumer loans accounted for under the fair value option of $755 million and $978 million at September 30, 2018 and 2017. |
(7) | Excludes commercial loans accounted for under the fair value option of $5.0 billion and $5.3 billion at September 30, 2018 and 2017. |
(8) |
Primarily includes amounts allocated to U.S. credit card and unsecured consumer lending portfolios in Consumer Banking and PCI loans |
Table 44 | Allocation of the Allowance for Credit Losses by Product Type | |||||||||||||||||||||||||||||||||||||||
Table 43 | 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) | 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) | (Dollars in millions) | March 31, 2018 | December 31, 2017 | (Dollars in millions) | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | Allowance for loan and lease losses | Allowance for loan and lease losses | ||||||||||||||||||||||||||||||||||||||
Residential mortgage | Residential mortgage | $ | 611 | 5.96 | % | 0.30 | % | $ | 701 | 6.74 | % | 0.34 | % | Residential mortgage | $ | 500 | 5.14 | % | 0.24 | % | $ | 701 | 6.74 | % | 0.34 | % | ||||||||||||||
Home equity | Home equity | 919 | 8.96 | 1.66 | 1,019 | 9.80 | 1.76 | Home equity | 658 | 6.76 | 1.28 | 1,019 | 9.80 | 1.76 | ||||||||||||||||||||||||||
U.S. credit card | U.S. credit card | 3,425 | 33.38 | 3.68 | 3,368 | 32.41 | 3.50 | U.S. credit card | 3,530 | 36.26 | 3.72 | 3,368 | 32.41 | 3.50 | ||||||||||||||||||||||||||
Direct/Indirect consumer | Direct/Indirect consumer | 262 | 2.55 | 0.29 | 262 | 2.52 | 0.28 | Direct/Indirect consumer | 262 | 2.69 | 0.29 | 264 | 2.54 | 0.27 | ||||||||||||||||||||||||||
Other consumer | Other consumer | 33 | 0.32 | 1.17 | 33 | 0.32 | 1.22 | Other consumer | 30 | 0.31 | n/m | 31 | 0.30 | n/m | ||||||||||||||||||||||||||
Total consumer | Total consumer | 5,250 | 51.17 | 1.18 | 5,383 | 51.79 | 1.18 | Total consumer | 4,980 | 51.16 | 1.12 | 5,383 | 51.79 | 1.18 | ||||||||||||||||||||||||||
U.S. commercial (2) | U.S. commercial (2) | 3,091 | 30.12 | 1.02 | 3,113 | 29.95 | 1.04 | U.S. commercial (2) | 2,974 | 30.55 | 0.99 | 3,113 | 29.95 | 1.04 | ||||||||||||||||||||||||||
Non-U.S. commercial | Non-U.S. commercial | 801 | 7.81 | 0.82 | 803 | 7.73 | 0.82 | Non-U.S. commercial | 687 | 7.06 | 0.72 | 803 | 7.73 | 0.82 | ||||||||||||||||||||||||||
Commercial real estate | Commercial real estate | 953 | 9.29 | 1.59 | 935 | 9.00 | 1.60 | Commercial real estate | 946 | 9.72 | 1.56 | 935 | 9.00 | 1.60 | ||||||||||||||||||||||||||
Commercial lease financing | Commercial lease financing | 165 | 1.61 | 0.76 | 159 | 1.53 | 0.72 | Commercial lease financing | 147 | 1.51 | 0.68 | 159 | 1.53 | 0.72 | ||||||||||||||||||||||||||
Total commercial | Total commercial | 5,010 | 48.83 | 1.04 | 5,010 | 48.21 | 1.05 | Total commercial | 4,754 | 48.84 | 0.99 | 5,010 | 48.21 | 1.05 | ||||||||||||||||||||||||||
Allowance for loan and lease losses (3) | Allowance for loan and lease losses (3) | 10,260 | 100.00 | % | 1.11 | 10,393 | 100.00 | % | 1.12 | Allowance for loan and lease losses (3) | 9,734 | 100.00 | % | 1.05 | 10,393 | 100.00 | % | 1.12 | ||||||||||||||||||||||
Reserve for unfunded lending commitments | Reserve for unfunded lending commitments | 782 | 777 | Reserve for unfunded lending commitments | 792 | 777 | ||||||||||||||||||||||||||||||||||
Allowance for credit losses | Allowance for credit losses | $ | 11,042 | $ | 11,170 | Allowance for credit losses | $ | 10,526 | $ | 11,170 |
(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 included residential mortgage loans of $ |
(2) | Includes allowance for loan and lease losses for U.S. small business commercial loans of $ |
(3) | Includes $ |
Bank of America46 |
Table 45 | Market Risk VaR for Trading Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table 44 | Market Risk VaR for Trading Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Period End | Average | High (1) | Low (1) | Period End | Average | High (1) | Low (1) | Period End | Average | High (1) | Low (1) | (Dollars in millions) | Period End | Average | High (1) | Low (1) | Period End | Average | High (1) | Low (1) | Period End | Average | High (1) | Low (1) | 2018 Average | 2017 Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | Foreign exchange | $ | 8 | $ | 8 | $ | 12 | $ | 6 | $ | 7 | $ | 7 | $ | 9 | $ | 5 | $ | 23 | $ | 12 | $ | 23 | $ | 5 | Foreign exchange | $ | 3 | $ | 7 | $ | 12 | $ | 2 | $ | 8 | $ | 10 | $ | 15 | $ | 7 | $ | 6 | $ | 10 | $ | 15 | $ | 5 | $ | 8 | $ | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | Interest rate | 33 | 23 | 33 | 18 | 22 | 21 | 28 | 14 | 28 | 17 | 28 | 11 | Interest rate | 22 | 26 | 36 | 16 | 27 | 23 | 32 | 15 | 15 | 21 | 41 | 14 | 24 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit | Credit | 28 | 27 | 31 | 23 | 29 | 27 | 33 | 21 | 26 | 26 | 29 | 22 | Credit | 24 | 24 | 30 | 20 | 30 | 25 | 30 | 20 | 24 | 25 | 29 | 23 | 25 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity | 16 | 19 | 28 | 14 | 19 | 19 | 24 | 14 | 24 | 19 | 30 | 14 | Equity | 17 | 18 | 27 | 13 | 24 | 16 | 26 | 11 | 17 | 17 | 33 | 12 | 18 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity | 10 | 6 | 12 | 3 | 5 | 4 | 6 | 3 | 6 | 4 | 7 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodities | Commodities | 7 | 6 | 8 | 5 | 7 | 9 | 14 | 4 | 4 | 5 | 7 | 4 | 7 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio diversification | Portfolio diversification | (57 | ) | (49 | ) | — | — | (49 | ) | (48 | ) | — | — | (58 | ) | (45 | ) | — | — | Portfolio diversification | (47 | ) | (52 | ) | — | — | (65 | ) | (55 | ) | — | — | (40 | ) | (44 | ) | — | — | (52 | ) | (45 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total covered positions trading portfolio | 38 | 34 | 43 | 25 | 33 | 30 | 38 | 23 | 49 | 33 | 49 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total covered positions portfolio | Total covered positions portfolio | 26 | 29 | 36 | 21 | 31 | 28 | 38 | 20 | 26 | 34 | 51 | 24 | 30 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact from less liquid exposures | Impact from less liquid exposures | 4 | 6 | — | — | 5 | 6 | — | — | 10 | 5 | — | — | Impact from less liquid exposures | 2 | 2 | — | — | 2 | 2 | — | — | 3 | 7 | — | — | 4 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total market-based trading portfolio | 42 | 40 | 51 | 29 | 38 | 36 | 47 | 26 | 59 | 38 | 59 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total covered positions and less liquid trading positions portfolio | Total covered positions and less liquid trading positions portfolio | 28 | 31 | 38 | 23 | 33 | 30 | 42 | 24 | 29 | 41 | 63 | 26 | 34 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value option loans | Fair value option loans | 12 | 10 | 12 | 8 | 9 | 9 | 11 | 7 | 11 | 12 | 14 | 11 | Fair value option loans | 10 | 13 | 15 | 10 | 12 | 13 | 18 | 8 | 10 | 10 | 12 | 9 | 12 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value option hedges | Fair value option hedges | 9 | 8 | 10 | 6 | 7 | 7 | 11 | 5 | 6 | 6 | 7 | 5 | Fair value option hedges | 6 | 9 | 11 | 6 | 8 | 11 | 17 | 5 | 8 | 8 | 9 | 6 | 9 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value option portfolio diversification | Fair value option portfolio diversification | (11 | ) | (9 | ) | — | — | (7 | ) | (8 | ) | — | — | (7 | ) | (8 | ) | — | — | Fair value option portfolio diversification | (8 | ) | (13 | ) | — | — | (12 | ) | (13 | ) | — | — | (11 | ) | (9 | ) | — | — | (11 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value option portfolio | Total fair value option portfolio | 10 | 9 | 10 | 7 | 9 | 8 | 11 | 6 | 10 | 10 | 11 | 9 | Total fair value option portfolio | 8 | 9 | 11 | 8 | 8 | 11 | 16 | 5 | 7 | 9 | 10 | 7 | 10 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio diversification | Portfolio diversification | (3 | ) | (4 | ) | — | — | (4 | ) | (3 | ) | — | — | (6 | ) | (4 | ) | — | — | Portfolio diversification | (6 | ) | (6 | ) | — | — | (5 | ) | (7 | ) | — | — | (4 | ) | (3 | ) | — | — | (6 | ) | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total market-based portfolio | Total market-based portfolio | $ | 49 | $ | 45 | 57 | 33 | $ | 43 | $ | 41 | $ | 53 | $ | 30 | $ | 63 | $ | 44 | 63 | 32 | Total market-based portfolio | $ | 30 | $ | 34 | 44 | 26 | $ | 36 | $ | 34 | 47 | 28 | $ | 32 | $ | 47 | 69 | 29 | $ | 38 | $ | 46 |
(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. |
47Bank of America |
Table 46 | Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics | |||||||||||||||||||||||||||||||||||||||||||||||||
Table 45 | Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics | |||||||||||||||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 99 percent | 95 percent | 99 percent | 95 percent | 99 percent | 95 percent | (Dollars in millions) | 99 percent | 95 percent | 99 percent | 95 percent | 99 percent | 95 percent | ||||||||||||||||||||||||||||||||||||
Foreign exchange | Foreign exchange | $ | 8 | $ | 5 | $ | 7 | $ | 4 | $ | 12 | $ | 8 | Foreign exchange | $ | 7 | $ | 4 | $ | 10 | $ | 6 | $ | 10 | $ | 6 | ||||||||||||||||||||||||
Interest rate | Interest rate | 23 | 15 | 21 | 14 | 17 | 11 | Interest rate | 26 | 16 | 23 | 14 | 21 | 14 | ||||||||||||||||||||||||||||||||||||
Credit | Credit | 27 | 16 | 27 | 15 | 26 | 14 | Credit | 24 | 14 | 25 | 15 | 25 | 15 | ||||||||||||||||||||||||||||||||||||
Equity | Equity | 19 | 10 | 19 | 10 | 19 | 10 | Equity | 18 | 10 | 16 | 9 | 17 | 9 | ||||||||||||||||||||||||||||||||||||
Commodity | 6 | 3 | 4 | 2 | 4 | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Commodities | Commodities | 6 | 3 | 9 | 5 | 5 | 3 | |||||||||||||||||||||||||||||||||||||||||||
Portfolio diversification | Portfolio diversification | (49 | ) | (30 | ) | (48 | ) | (30 | ) | (45 | ) | (28 | ) | Portfolio diversification | (52 | ) | (31 | ) | (55 | ) | (34 | ) | (44 | ) | (30 | ) | ||||||||||||||||||||||||
Total covered positions trading portfolio | 34 | 19 | 30 | 15 | 33 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Total covered positions portfolio | Total covered positions portfolio | 29 | 16 | 28 | 15 | 34 | 17 | |||||||||||||||||||||||||||||||||||||||||||
Impact from less liquid exposures | Impact from less liquid exposures | 6 | 2 | 6 | 2 | 5 | 3 | Impact from less liquid exposures | 2 | 1 | 2 | 2 | 7 | 2 | ||||||||||||||||||||||||||||||||||||
Total market-based trading portfolio | 40 | 21 | 36 | 17 | 38 | 21 | ||||||||||||||||||||||||||||||||||||||||||||
Total covered positions and less liquid trading positions portfolio | Total covered positions and less liquid trading positions portfolio | 31 | 17 | 30 | 17 | 41 | 19 | |||||||||||||||||||||||||||||||||||||||||||
Fair value option loans | Fair value option loans | 10 | 5 | 9 | 6 | 12 | 7 | Fair value option loans | 13 | 7 | 13 | 7 | 10 | 6 | ||||||||||||||||||||||||||||||||||||
Fair value option hedges | Fair value option hedges | 8 | 6 | 7 | 5 | 6 | 4 | Fair value option hedges | 9 | 6 | 11 | 8 | 8 | 6 | ||||||||||||||||||||||||||||||||||||
Fair value option portfolio diversification | Fair value option portfolio diversification | (9 | ) | (6 | ) | (8 | ) | (6 | ) | (8 | ) | (5 | ) | Fair value option portfolio diversification | (13 | ) | (8 | ) | (13 | ) | (10 | ) | (9 | ) | (7 | ) | ||||||||||||||||||||||||
Total fair value option portfolio | Total fair value option portfolio | 9 | 5 | 8 | 5 | 10 | 6 | Total fair value option portfolio | 9 | 5 | 11 | 5 | 9 | 5 | ||||||||||||||||||||||||||||||||||||
Portfolio diversification | Portfolio diversification | (4 | ) | (3 | ) | (3 | ) | (3 | ) | (4 | ) | (4 | ) | Portfolio diversification | (6 | ) | (4 | ) | (7 | ) | (3 | ) | (3 | ) | (3 | ) | ||||||||||||||||||||||||
Total market-based portfolio | Total market-based portfolio | $ | 45 | $ | 23 | $ | 41 | $ | 19 | $ | 44 | $ | 23 | Total market-based portfolio | $ | 34 | $ | 18 | $ | 34 | $ | 19 | $ | 47 | $ | 21 |
Bank of America48 |
49Bank of America |
Table 47 | Forward Rates | |||||||||||||||||
Table 46 | Forward Rates | |||||||||||||||||
March 31, 2018 | September 30, 2018 | |||||||||||||||||
Federal Funds | Three-month LIBOR | 10-Year Swap | Federal Funds | Three-month LIBOR | 10-Year Swap | |||||||||||||
Spot rates | Spot rates | 1.75 | % | 2.31 | % | 2.78 | % | Spot rates | 2.25 | % | 2.40 | % | 3.12 | % | ||||
12-month forward rates | 12-month forward rates | 2.25 | 2.57 | 2.83 | 12-month forward rates | 3.00 | 3.07 | 3.16 | ||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||
Spot rates | Spot rates | 1.50 | % | 1.69 | % | 2.40 | % | Spot rates | 1.50 | % | 1.69 | % | 2.40 | % | ||||
12-month forward rates | 12-month forward rates | 2.00 | 2.14 | 2.48 | 12-month forward rates | 2.00 | 2.14 | 2.48 |
Table 47 | Estimated Banking Book Net Interest Income Sensitivity to Curve Changes | |||||||||||||
Short Rate (bps) | Long Rate (bps) | |||||||||||||
September 30 2018 | December 31 2017 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Parallel Shifts | ||||||||||||||
+100 bps instantaneous shift | +100 | +100 | $ | 2,927 | $ | 3,317 | ||||||||
-100 bps instantaneous shift | -100 | -100 | (4,256 | ) | (5,183 | ) | ||||||||
Flatteners | ||||||||||||||
Short-end instantaneous change | +100 | — | 2,316 | 2,182 | ||||||||||
Long-end instantaneous change | — | -100 | (1,421 | ) | (2,765 | ) | ||||||||
Steepeners | ||||||||||||||
Short-end instantaneous change | -100 | — | (2,798 | ) | (2,394 | ) | ||||||||
Long-end instantaneous change | — | +100 | 628 | 1,135 |
Table 48 | Estimated Banking Book Net Interest Income Sensitivity | |||||||||||||
Short Rate (bps) | Long Rate (bps) | |||||||||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | ||||||||||||
Curve Change | ||||||||||||||
Parallel Shifts | ||||||||||||||
+100 bps instantaneous shift | +100 | +100 | $ | 2,964 | $ | 3,317 | ||||||||
-100 bps instantaneous shift | -100 | -100 | (3,717 | ) | (5,183 | ) | ||||||||
Flatteners | ||||||||||||||
Short-end instantaneous change | +100 | — | 2,188 | 2,182 | ||||||||||
Long-end instantaneous change | — | -100 | (1,641 | ) | (2,765 | ) | ||||||||
Steepeners | ||||||||||||||
Short-end instantaneous change | -100 | — | (2,057 | ) | (2,394 | ) | ||||||||
Long-end instantaneous change | — | +100 | 785 | 1,135 |
Bank of America |
Table 49 | Asset and Liability Management Interest Rate and Foreign Exchange Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table 48 | Asset and Liability Management Interest Rate and Foreign Exchange Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Maturity | Expected Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years) | (Dollars in millions, average estimated duration in years) | Fair Value | Total | Remainder of 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Average Estimated Duration | (Dollars in millions, average estimated duration in years) | Fair Value | Total | Remainder of 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Average Estimated Duration | ||||||||||||||||||||||||||||||||||||||||||||||||||
Receive-fixed interest rate swaps (1) | Receive-fixed interest rate swaps (1) | $ | (1,096 | ) | 5.23 | Receive-fixed interest rate swaps (1) | $ | (4,571 | ) | 4.85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | $ | 190,804 | $ | 17,211 | $ | 27,176 | $ | 16,347 | $ | 9,548 | $ | 19,120 | $ | 101,402 | Notional amount | $ | 254,129 | $ | 4,879 | $ | 27,176 | $ | 26,229 | $ | 21,581 | $ | 30,365 | $ | 143,899 | ||||||||||||||||||||||||||||||||||||||||
Weighted-average fixed-rate | Weighted-average fixed-rate | 2.47 | % | 3.79 | % | 1.87 | % | 1.88 | % | 2.81 | % | 2.10 | % | 2.55 | % | Weighted-average fixed-rate | 2.51 | % | 2.57 | % | 1.87 | % | 2.28 | % | 2.85 | % | 2.40 | % | 2.65 | % | ||||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swaps (1) | Pay-fixed interest rate swaps (1) | 827 | 5.27 | Pay-fixed interest rate swaps (1) | 1,842 | 4.62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | $ | 45,565 | $ | 11,247 | $ | 1,210 | $ | 4,344 | $ | 1,616 | $ | — | $ | 27,148 | Notional amount | $ | 111,131 | $ | 11,247 | $ | 1,210 | $ | 14,226 | $ | 8,949 | $ | 11,245 | $ | 64,254 | ||||||||||||||||||||||||||||||||||||||||
Weighted-average fixed-rate | Weighted-average fixed-rate | 2.14 | % | 1.70 | % | 2.07 | % | 2.16 | % | 2.22 | % | — | % | 2.32 | % | Weighted-average fixed-rate | 2.60 | % | 1.70 | % | 2.07 | % | 2.70 | % | 2.80 | % | 2.91 | % | 2.66 | % | ||||||||||||||||||||||||||||||||||||||||
Same-currency basis swaps (2) | Same-currency basis swaps (2) | (20 | ) | Same-currency basis swaps (2) | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | $ | 41,342 | $ | 6,290 | $ | 6,792 | $ | 8,576 | $ | 2,812 | $ | 955 | $ | 15,917 | Notional amount | $ | 162,172 | $ | 1,085 | $ | 13,755 | $ | 34,628 | $ | 26,227 | $ | 22,849 | $ | 63,628 | ||||||||||||||||||||||||||||||||||||||||
Foreign exchange basis swaps (1, 3, 4) | Foreign exchange basis swaps (1, 3, 4) | (1,329 | ) | Foreign exchange basis swaps (1, 3, 4) | (1,572 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | 112,409 | 22,898 | 12,449 | 17,550 | 9,527 | 7,169 | 42,816 | Notional amount | 110,129 | 7,290 | 13,326 | 21,156 | 17,395 | 10,377 | 40,585 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option products (5) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount (6) | 1,249 | 1,232 | — | — | — | — | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts (1, 4, 7) | 1,186 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option products | Option products | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | 16 | — | — | — | — | — | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts (1, 4, 5) | Foreign exchange contracts (1, 4, 5) | 339 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount (6) | Notional amount (6) | (5,905 | ) | (23,224 | ) | 2,296 | (20 | ) | 2,546 | 2,934 | 9,563 | Notional amount (6) | (4,571 | ) | (24,033 | ) | (326 | ) | 3 | 4,273 | 2,826 | 12,686 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net ALM contracts | Net ALM contracts | $ | (429 | ) | Net ALM contracts | $ | (3,952 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Maturity | Expected Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years) | (Dollars in millions, average estimated duration in years) | Fair Value | Total | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Average Estimated Duration | (Dollars in millions, average estimated duration in years) | Fair Value | Total | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Average Estimated Duration | ||||||||||||||||||||||||||||||||||||||||||||||||||
Receive-fixed interest rate swaps (1) | Receive-fixed interest rate swaps (1) | $ | 2,330 | 5.38 | Receive-fixed interest rate swaps (1) | $ | 2,330 | 5.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | $ | 176,390 | $ | 21,850 | $ | 27,176 | $ | 16,347 | $ | 6,498 | $ | 19,120 | $ | 85,399 | Notional amount | $ | 176,390 | $ | 21,850 | $ | 27,176 | $ | 16,347 | $ | 6,498 | $ | 19,120 | $ | 85,399 | ||||||||||||||||||||||||||||||||||||||||
Weighted-average fixed-rate | Weighted-average fixed-rate | 2.42 | % | 3.20 | % | 1.87 | % | 1.88 | % | 2.99 | % | 2.10 | % | 2.52 | % | Weighted-average fixed-rate | 2.42 | % | 3.20 | % | 1.87 | % | 1.88 | % | 2.99 | % | 2.10 | % | 2.52 | % | ||||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swaps (1) | Pay-fixed interest rate swaps (1) | (37 | ) | 5.63 | Pay-fixed interest rate swaps (1) | (37 | ) | 5.63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | $ | 45,873 | $ | 11,555 | $ | 1,210 | $ | 4,344 | $ | 1,616 | $ | — | $ | 27,148 | Notional amount | $ | 45,873 | $ | 11,555 | $ | 1,210 | $ | 4,344 | $ | 1,616 | $ | — | $ | 27,148 | ||||||||||||||||||||||||||||||||||||||||
Weighted-average fixed-rate | Weighted-average fixed-rate | 2.15 | % | 1.73 | % | 2.07 | % | 2.16 | % | 2.22 | % | — | % | 2.32 | % | Weighted-average fixed-rate | 2.15 | % | 1.73 | % | 2.07 | % | 2.16 | % | 2.22 | % | — | % | 2.32 | % | ||||||||||||||||||||||||||||||||||||||||
Same-currency basis swaps (2) | Same-currency basis swaps (2) | (17 | ) | Same-currency basis swaps (2) | (17 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | $ | 38,622 | $ | 11,028 | $ | 6,789 | $ | 1,180 | $ | 2,807 | $ | 955 | $ | 15,863 | Notional amount | $ | 38,622 | $ | 11,028 | $ | 6,789 | $ | 1,180 | $ | 2,807 | $ | 955 | $ | 15,863 | ||||||||||||||||||||||||||||||||||||||||
Foreign exchange basis swaps (1, 3, 4) | Foreign exchange basis swaps (1, 3, 4) | (1,616 | ) | Foreign exchange basis swaps (1, 3, 4) | (1,616 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | 107,263 | 24,886 | 11,922 | 13,367 | 9,301 | 6,860 | 40,927 | Notional amount | 107,263 | 24,886 | 11,922 | 13,367 | 9,301 | 6,860 | 40,927 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option products (5) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount (6) | 1,218 | 1,201 | — | — | — | — | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts (1, 4, 7) | 1,424 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option products | Option products | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount | Notional amount | 1,218 | 1,201 | — | — | — | — | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts (1, 4, 5) | Foreign exchange contracts (1, 4, 5) | 1,424 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount (6) | Notional amount (6) | (11,783 | ) | (28,689 | ) | 2,231 | (24 | ) | 2,471 | 2,919 | 9,309 | Notional amount (6) | (11,783 | ) | (28,689 | ) | 2,231 | (24 | ) | 2,471 | 2,919 | 9,309 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net ALM contracts | Net ALM contracts | $ | 2,097 | Net ALM contracts | $ | 2,097 |
(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 |
(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 |
Reflects the net of | long and short positions. Amounts shown as negative reflect a net short position. |
51Bank of America |
Table 49 | Quarterly Supplemental Financial Data and Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||
Three Months Ended September 30 | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
(Dollars in millions) | As Reported | Fully taxable-equivalent adjustment | Fully taxable-equivalent basis | As Reported | Fully taxable-equivalent adjustment | Fully taxable-equivalent basis | ||||||||||||||||||
Net interest income | $ | 11,870 | $ | 151 | $ | 12,021 | $ | 11,161 | $ | 240 | $ | 11,401 | ||||||||||||
Total revenue, net of interest expense | 22,777 | 151 | 22,928 | 21,839 | 240 | 22,079 | ||||||||||||||||||
Income tax expense | 1,827 | 151 | 1,978 | 2,187 | 240 | 2,427 | ||||||||||||||||||
Nine Months Ended September 30 | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Net interest income | $ | 35,128 | $ | 455 | $ | 35,583 | $ | 33,205 | $ | 674 | $ | 33,879 | ||||||||||||
Total revenue, net of interest expense | 68,511 | 455 | 68,966 | 66,916 | 674 | 67,590 | ||||||||||||||||||
Income tax expense | 5,017 | 455 | 5,472 | 7,185 | 674 | 7,859 |
Table 50 | Quarterly Supplemental Financial Data and Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||
Three Months Ended March 31 | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
(Dollars in millions) | As Reported | Fully taxable-equivalent adjustment | Fully taxable-equivalent basis | As Reported | Fully taxable-equivalent adjustment | Fully taxable-equivalent basis | ||||||||||||||||||
Net interest income | $ | 11,608 | $ | 150 | $ | 11,758 | $ | 11,058 | $ | 197 | $ | 11,255 | ||||||||||||
Total revenue, net of interest expense | 23,125 | 150 | 23,275 | 22,248 | 197 | 22,445 | ||||||||||||||||||
Income tax expense | 1,476 | 150 | 1,626 | 1,983 | 197 | 2,180 |
Table 50 | Period-end and Average Supplemental Financial Data and Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||
Period-end | Average | |||||||||||||||||||||||
September 30 2018 | December 31 2017 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Common shareholders’ equity | $ | 239,832 | $ | 244,823 | $ | 241,812 | $ | 249,214 | $ | 241,943 | $ | 245,841 | ||||||||||||
Goodwill | (68,951 | ) | (68,951 | ) | (68,951 | ) | (68,969 | ) | (68,951 | ) | (69,398 | ) | ||||||||||||
Intangible assets (excluding MSRs) | (1,908 | ) | (2,312 | ) | (1,992 | ) | (2,549 | ) | (2,125 | ) | (2,737 | ) | ||||||||||||
Related deferred tax liabilities | 878 | 943 | 896 | 1,465 | 917 | 1,503 | ||||||||||||||||||
Tangible common shareholders’ equity | $ | 169,851 | $ | 174,503 | $ | 171,765 | $ | 179,161 | $ | 171,784 | $ | 175,209 | ||||||||||||
Shareholders’ equity | $ | 262,158 | $ | 267,146 | $ | 264,653 | $ | 273,238 | $ | 265,102 | $ | 270,658 | ||||||||||||
Goodwill | (68,951 | ) | (68,951 | ) | (68,951 | ) | (68,969 | ) | (68,951 | ) | (69,398 | ) | ||||||||||||
Intangible assets (excluding MSRs) | (1,908 | ) | (2,312 | ) | (1,992 | ) | (2,549 | ) | (2,125 | ) | (2,737 | ) | ||||||||||||
Related deferred tax liabilities | 878 | 943 | 896 | 1,465 | 917 | 1,503 | ||||||||||||||||||
Tangible shareholders’ equity | $ | 192,177 | $ | 196,826 | $ | 194,606 | $ | 203,185 | $ | 194,943 | $ | 200,026 | ||||||||||||
Total assets | $ | 2,338,833 | $ | 2,281,234 | ||||||||||||||||||||
Goodwill | (68,951 | ) | (68,951 | ) | ||||||||||||||||||||
Intangible assets (excluding MSRs) | (1,908 | ) | (2,312 | ) | ||||||||||||||||||||
Related deferred tax liabilities | 878 | 943 | ||||||||||||||||||||||
Tangible assets | $ | 2,268,852 | $ | 2,210,914 |
Bank of America |
Table 51 | Period-end and Average Supplemental Financial Data and Reconciliations to GAAP Financial Measures | |||||||||||||||
Period-end | Average | |||||||||||||||
March 31 2018 | December 31 2017 | Three Months Ended March 31 | ||||||||||||||
(Dollars in millions) | 2018 | 2017 | ||||||||||||||
Common shareholders’ equity | $ | 241,552 | $ | 244,823 | $ | 242,713 | $ | 242,480 | ||||||||
Goodwill | (68,951 | ) | (68,951 | ) | (68,951 | ) | (69,744 | ) | ||||||||
Intangible assets (excluding MSRs) | (2,177 | ) | (2,312 | ) | (2,261 | ) | (2,923 | ) | ||||||||
Related deferred tax liabilities | 920 | 943 | 939 | 1,539 | ||||||||||||
Tangible common shareholders’ equity | $ | 171,344 | $ | 174,503 | $ | 172,440 | $ | 171,352 | ||||||||
Shareholders’ equity | $ | 266,224 | $ | 267,146 | $ | 265,480 | $ | 267,700 | ||||||||
Goodwill | (68,951 | ) | (68,951 | ) | (68,951 | ) | (69,744 | ) | ||||||||
Intangible assets (excluding MSRs) | (2,177 | ) | (2,312 | ) | (2,261 | ) | (2,923 | ) | ||||||||
Related deferred tax liabilities | 920 | 943 | 939 | 1,539 | ||||||||||||
Tangible shareholders’ equity | $ | 196,016 | $ | 196,826 | $ | 195,207 | $ | 196,572 | ||||||||
Total assets | $ | 2,328,478 | $ | 2,281,234 | ||||||||||||
Goodwill | (68,951 | ) | (68,951 | ) | ||||||||||||
Intangible assets (excluding MSRs) | (2,177 | ) | (2,312 | ) | ||||||||||||
Related deferred tax liabilities | 920 | 943 | ||||||||||||||
Tangible assets | $ | 2,258,270 | $ | 2,210,914 |
Consolidated Statement of Income | |||||||
Three Months Ended March 31 | |||||||
(In millions, except per share information) | 2018 | 2017 | |||||
Interest income | |||||||
Loans and leases | $ | 9,623 | $ | 8,754 | |||
Debt securities | 2,804 | 2,541 | |||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 622 | 439 | |||||
Trading account assets | 1,136 | 1,076 | |||||
Other interest income | 1,414 | 900 | |||||
Total interest income | 15,599 | 13,710 | |||||
Interest expense | |||||||
Deposits | 760 | 282 | |||||
Short-term borrowings | 1,135 | 647 | |||||
Trading account liabilities | 357 | 264 | |||||
Long-term debt | 1,739 | 1,459 | |||||
Total interest expense | 3,991 | 2,652 | |||||
Net interest income | 11,608 | 11,058 | |||||
Noninterest income | |||||||
Card income | 1,457 | 1,449 | |||||
Service charges | 1,921 | 1,918 | |||||
Investment and brokerage services | 3,664 | 3,417 | |||||
Investment banking income | 1,353 | 1,584 | |||||
Trading account profits | 2,699 | 2,331 | |||||
Other income | 423 | 491 | |||||
Total noninterest income | 11,517 | 11,190 | |||||
Total revenue, net of interest expense | 23,125 | 22,248 | |||||
Provision for credit losses | 834 | 835 | |||||
Noninterest expense | |||||||
Personnel | 8,480 | 8,475 | |||||
Occupancy | 1,014 | 1,000 | |||||
Equipment | 442 | 438 | |||||
Marketing | 345 | 332 | |||||
Professional fees | 381 | 456 | |||||
Data processing | 810 | 794 | |||||
Telecommunications | 183 | 191 | |||||
Other general operating | 2,242 | 2,407 | |||||
Total noninterest expense | 13,897 | 14,093 | |||||
Income before income taxes | 8,394 | 7,320 | |||||
Income tax expense | 1,476 | 1,983 | |||||
Net income | $ | 6,918 | $ | 5,337 | |||
Preferred stock dividends | 428 | 502 | |||||
Net income applicable to common shareholders | $ | 6,490 | $ | 4,835 | |||
Per common share information | |||||||
Earnings | $ | 0.63 | $ | 0.48 | |||
Diluted earnings | 0.62 | 0.45 | |||||
Dividends paid | 0.12 | 0.075 | |||||
Average common shares issued and outstanding | 10,322.4 | 10,099.6 | |||||
Average diluted common shares issued and outstanding | 10,472.7 | 10,919.7 |
Consolidated Statement of Comprehensive Income | |||||||
Three Months Ended March 31 | |||||||
(Dollars in millions) | 2018 | 2017 | |||||
Net income | $ | 6,918 | $ | 5,337 | |||
Other comprehensive income (loss), net-of-tax: | |||||||
Net change in debt and equity securities | (3,963 | ) | (99 | ) | |||
Net change in debit valuation adjustments | 273 | 9 | |||||
Net change in derivatives | (275 | ) | 38 | ||||
Employee benefit plan adjustments | 30 | 27 | |||||
Net change in foreign currency translation adjustments | (48 | ) | (3 | ) | |||
Other comprehensive income (loss) | (3,983 | ) | (28 | ) | |||
Comprehensive income | $ | 2,935 | $ | 5,309 |
Consolidated Balance Sheet | |||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | |||||
Assets | |||||||
Cash and due from banks | $ | 26,247 | $ | 29,480 | |||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 177,994 | 127,954 | |||||
Cash and cash equivalents | 204,241 | 157,434 | |||||
Time deposits placed and other short-term investments | 8,069 | 11,153 | |||||
Federal funds sold and securities borrowed or purchased under agreements to resell (includes $68,556 and $52,906 measured at fair value) | 244,630 | 212,747 | |||||
Trading account assets (includes $107,906 and $106,274 pledged as collateral) | 198,477 | 209,358 | |||||
Derivative assets | 47,869 | 37,762 | |||||
Debt securities: | |||||||
Carried at fair value | 303,298 | 315,117 | |||||
Held-to-maturity, at cost (fair value – $119,132 and $123,299) | 123,539 | 125,013 | |||||
Total debt securities | 426,837 | 440,130 | |||||
Loans and leases (includes $5,989 and $5,710 measured at fair value) | 934,078 | 936,749 | |||||
Allowance for loan and lease losses | (10,260 | ) | (10,393 | ) | |||
Loans and leases, net of allowance | 923,818 | 926,356 | |||||
Premises and equipment, net | 9,399 | 9,247 | |||||
Goodwill | 68,951 | 68,951 | |||||
Loans held-for-sale (includes $3,091 and $2,156 measured at fair value) | 9,227 | 11,430 | |||||
Customer and other receivables | 58,127 | 61,623 | |||||
Other assets (includes $20,575 and $22,581 measured at fair value) | 128,833 | 135,043 | |||||
Total assets | $ | 2,328,478 | $ | 2,281,234 | |||
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | |||||||
Trading account assets | $ | 6,065 | $ | 6,521 | |||
Loans and leases | 46,590 | 48,929 | |||||
Allowance for loan and lease losses | (984 | ) | (1,016 | ) | |||
Loans and leases, net of allowance | 45,606 | 47,913 | |||||
Loans held-for-sale | 13 | 27 | |||||
All other assets | 399 | 1,694 | |||||
Total assets of consolidated variable interest entities | $ | 52,083 | $ | 56,155 |
Consolidated Balance Sheet (continued) | |||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | |||||
Liabilities | |||||||
Deposits in U.S. offices: | |||||||
Noninterest-bearing | $ | 434,709 | $ | 430,650 | |||
Interest-bearing (includes $435 and $449 measured at fair value) | 811,212 | 796,576 | |||||
Deposits in non-U.S. offices: | |||||||
Noninterest-bearing | 13,768 | 14,024 | |||||
Interest-bearing | 68,975 | 68,295 | |||||
Total deposits | 1,328,664 | 1,309,545 | |||||
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $35,116 and $36,182 measured at fair value) | 178,528 | 176,865 | |||||
Trading account liabilities | 100,218 | 81,187 | |||||
Derivative liabilities | 33,900 | 34,300 | |||||
Short-term borrowings (includes $2,284 and $1,494 measured at fair value) | 38,073 | 32,666 | |||||
Accrued expenses and other liabilities (includes $20,176 and $22,840 measured at fair value and $782 and $777 of reserve for unfunded lending commitments) | 150,615 | 152,123 | |||||
Long-term debt (includes $30,062 and $31,786 measured at fair value) | 232,256 | 227,402 | |||||
Total liabilities | 2,062,254 | 2,014,088 | |||||
Commitments and contingencies (Note 7 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies) | |||||||
Shareholders’ equity | |||||||
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,931,683 and 3,837,683 shares | 24,672 | 22,323 | |||||
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,175,910,851 and 10,287,302,431 shares | 133,532 | 138,089 | |||||
Retained earnings | 120,298 | 113,816 | |||||
Accumulated other comprehensive income (loss) | (12,278 | ) | (7,082 | ) | |||
Total shareholders’ equity | 266,224 | 267,146 | |||||
Total liabilities and shareholders’ equity | $ | 2,328,478 | $ | 2,281,234 | |||
Liabilities of consolidated variable interest entities included in total liabilities above | |||||||
Short-term borrowings | $ | 286 | $ | 312 | |||
Long-term debt (includes $10,050 and $9,872 of non-recourse debt) | 10,051 | 9,873 | |||||
All other liabilities (includes $35 and $34 of non-recourse liabilities) | 38 | 37 | |||||
Total liabilities of consolidated variable interest entities | $ | 10,375 | $ | 10,222 |
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, December 31, 2016 | $ | 25,220 | 10,052.6 | $ | 147,038 | $ | 101,225 | $ | (7,288 | ) | $ | 266,195 | ||||||||||
Net income | 5,337 | 5,337 | ||||||||||||||||||||
Net change in debt and equity securities | (99 | ) | (99 | ) | ||||||||||||||||||
Net change in debit valuation adjustments | 9 | 9 | ||||||||||||||||||||
Net change in derivatives | 38 | 38 | ||||||||||||||||||||
Employee benefit plan adjustments | 27 | 27 | ||||||||||||||||||||
Net change in foreign currency translation adjustments | (3 | ) | (3 | ) | ||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common | (756 | ) | (756 | ) | ||||||||||||||||||
Preferred | (502 | ) | (502 | ) | ||||||||||||||||||
Common stock issued under employee plans, net | 36.0 | 472 | 472 | |||||||||||||||||||
Common stock repurchased | (114.4 | ) | (2,728 | ) | (2,728 | ) | ||||||||||||||||
Balance, March 31, 2017 | $ | 25,220 | 9,974.2 | $ | 144,782 | $ | 105,304 | $ | (7,316 | ) | $ | 267,990 | ||||||||||
Balance, December 31, 2017 | $ | 22,323 | 10,287.3 | $ | 138,089 | $ | 113,816 | $ | (7,082 | ) | $ | 267,146 | ||||||||||
Cumulative adjustment for adoption of new hedge accounting standard | (32 | ) | 57 | 25 | ||||||||||||||||||
Adoption of accounting standard related to certain tax effects stranded in accumulated other comprehensive income (loss) | 1,270 | (1,270 | ) | — | ||||||||||||||||||
Net income | 6,918 | 6,918 | ||||||||||||||||||||
Net change in debt and equity securities | (3,963 | ) | (3,963 | ) | ||||||||||||||||||
Net change in debit valuation adjustments | 273 | 273 | ||||||||||||||||||||
Net change in derivatives | (275 | ) | (275 | ) | ||||||||||||||||||
Employee benefit plan adjustments | 30 | 30 | ||||||||||||||||||||
Net change in foreign currency translation adjustments | (48 | ) | (48 | ) | ||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common | (1,237 | ) | (1,237 | ) | ||||||||||||||||||
Preferred | (428 | ) | (428 | ) | ||||||||||||||||||
Issuance of preferred stock | 2,349 | 2,349 | ||||||||||||||||||||
Common stock issued under employee plans, net and other | 41.2 | 301 | (9 | ) | 292 | |||||||||||||||||
Common stock repurchased | (152.6 | ) | (4,858 | ) | (4,858 | ) | ||||||||||||||||
Balance, March 31, 2018 | $ | 24,672 | 10,175.9 | $ | 133,532 | $ | 120,298 | $ | (12,278 | ) | $ | 266,224 |
Consolidated Statement of Income | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(In millions, except per share information) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Interest income | |||||||||||||||
Loans and leases | $ | 10,401 | $ | 9,203 | $ | 30,095 | $ | 26,877 | |||||||
Debt securities | 2,986 | 2,629 | 8,646 | 7,764 | |||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 799 | 659 | 2,130 | 1,658 | |||||||||||
Trading account assets | 1,172 | 1,091 | 3,506 | 3,330 | |||||||||||
Other interest income | 1,607 | 1,075 | 4,556 | 2,884 | |||||||||||
Total interest income | 16,965 | 14,657 | 48,933 | 42,513 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 1,230 | 624 | 2,933 | 1,252 | |||||||||||
Short-term borrowings | 1,526 | 944 | 4,123 | 2,508 | |||||||||||
Trading account liabilities | 335 | 319 | 1,040 | 890 | |||||||||||
Long-term debt | 2,004 | 1,609 | 5,709 | 4,658 | |||||||||||
Total interest expense | 5,095 | 3,496 | 13,805 | 9,308 | |||||||||||
Net interest income | 11,870 | 11,161 | 35,128 | 33,205 | |||||||||||
Noninterest income | |||||||||||||||
Card income | 1,470 | 1,429 | 4,469 | 4,347 | |||||||||||
Service charges | 1,961 | 1,968 | 5,836 | 5,863 | |||||||||||
Investment and brokerage services | 3,494 | 3,437 | 10,616 | 10,314 | |||||||||||
Investment banking income | 1,204 | 1,477 | 3,979 | 4,593 | |||||||||||
Trading account profits | 1,893 | 1,837 | 6,907 | 6,124 | |||||||||||
Other income | 885 | 530 | 1,576 | 2,470 | |||||||||||
Total noninterest income | 10,907 | 10,678 | 33,383 | 33,711 | |||||||||||
Total revenue, net of interest expense | 22,777 | 21,839 | 68,511 | 66,916 | |||||||||||
Provision for credit losses | 716 | 834 | 2,377 | 2,395 | |||||||||||
Noninterest expense | |||||||||||||||
Personnel | 7,721 | 7,811 | 24,145 | 24,326 | |||||||||||
Occupancy | 1,015 | 999 | 3,051 | 3,000 | |||||||||||
Equipment | 421 | 416 | 1,278 | 1,281 | |||||||||||
Marketing | 421 | 461 | 1,161 | 1,235 | |||||||||||
Professional fees | 439 | 476 | 1,219 | 1,417 | |||||||||||
Data processing | 791 | 777 | 2,398 | 2,344 | |||||||||||
Telecommunications | 173 | 170 | 522 | 538 | |||||||||||
Other general operating | 2,086 | 2,284 | 6,474 | 7,328 | |||||||||||
Total noninterest expense | 13,067 | 13,394 | 40,248 | 41,469 | |||||||||||
Income before income taxes | 8,994 | 7,611 | 25,886 | 23,052 | |||||||||||
Income tax expense | 1,827 | 2,187 | 5,017 | 7,185 | |||||||||||
Net income | $ | 7,167 | $ | 5,424 | $ | 20,869 | $ | 15,867 | |||||||
Preferred stock dividends | 466 | 465 | 1,212 | 1,328 | |||||||||||
Net income applicable to common shareholders | $ | 6,701 | $ | 4,959 | $ | 19,657 | $ | 14,539 | |||||||
Per common share information | |||||||||||||||
Earnings | $ | 0.67 | $ | 0.49 | $ | 1.93 | $ | 1.44 | |||||||
Diluted earnings | 0.66 | 0.46 | 1.91 | 1.36 | |||||||||||
Dividends paid | 0.15 | 0.12 | 0.39 | 0.27 | |||||||||||
Average common shares issued and outstanding | 10,031.6 | 10,197.9 | 10,177.5 | 10,103.4 | |||||||||||
Average diluted common shares issued and outstanding | 10,170.8 | 10,746.7 | 10,317.9 | 10,832.1 |
Bank of America 54 |
Consolidated Statement of Cash Flows | |||||||
Three Months Ended March 31 | |||||||
(Dollars in millions) | 2018 | 2017 | |||||
Operating activities | |||||||
Net income | $ | 6,918 | $ | 5,337 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Provision for credit losses | 834 | 835 | |||||
Gains on sales of debt securities | (2 | ) | (52 | ) | |||
Depreciation and premises improvements amortization | 376 | 372 | |||||
Amortization of intangibles | 135 | 162 | |||||
Net amortization of premium/discount on debt securities | 475 | 544 | |||||
Deferred income taxes | 804 | 1,382 | |||||
Stock-based compensation | 415 | 306 | |||||
Loans held-for-sale: | |||||||
Originations and purchases | (5,745 | ) | (13,309 | ) | |||
Proceeds from sales and paydowns of loans originally classified as held for sale and instruments from related securitization activities | 9,876 | 7,755 | |||||
Net change in: | |||||||
Trading and derivative instruments | 15,807 | (16,723 | ) | ||||
Other assets | 11,233 | 3,532 | |||||
Accrued expenses and other liabilities | (814 | ) | (4,518 | ) | |||
Other operating activities, net | 42 | 1,388 | |||||
Net cash provided by (used in) operating activities | 40,354 | (12,989 | ) | ||||
Investing activities | |||||||
Net change in: | |||||||
Time deposits placed and other short-term investments | 3,084 | (2,106 | ) | ||||
Federal funds sold and securities borrowed or purchased under agreements to resell | (31,883 | ) | (12,509 | ) | |||
Debt securities carried at fair value: | |||||||
Proceeds from sales | 683 | 22,087 | |||||
Proceeds from paydowns and maturities | 19,052 | 24,015 | |||||
Purchases | (14,176 | ) | (44,198 | ) | |||
Held-to-maturity debt securities: | |||||||
Proceeds from paydowns and maturities | 3,764 | 3,874 | |||||
Purchases | (2,453 | ) | (3,033 | ) | |||
Loans and leases: | |||||||
Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities | 2,684 | 2,590 | |||||
Purchases | (1,609 | ) | (1,648 | ) | |||
Other changes in loans and leases, net | (1,190 | ) | (1,811 | ) | |||
Other investing activities, net | (805 | ) | (1,202 | ) | |||
Net cash used in investing activities | (22,849 | ) | (13,941 | ) | |||
Financing activities | |||||||
Net change in: | |||||||
Deposits | 19,119 | 11,207 | |||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 1,626 | 15,807 | |||||
Short-term borrowings | 5,407 | 20,131 | |||||
Long-term debt: | |||||||
Proceeds from issuance | 20,934 | 17,378 | |||||
Retirement | (13,577 | ) | (13,552 | ) | |||
Proceeds from issuance of preferred stock | 2,349 | — | |||||
Common stock repurchased | (4,858 | ) | (2,728 | ) | |||
Cash dividends paid | (1,674 | ) | (1,255 | ) | |||
Other financing activities, net | (724 | ) | (584 | ) | |||
Net cash provided by financing activities | 28,602 | 46,404 | |||||
Effect of exchange rate changes on cash and cash equivalents | 700 | 813 | |||||
Net increase in cash and cash equivalents | 46,807 | 20,287 | |||||
Cash and cash equivalents at January 1 | 157,434 | 147,738 | |||||
Cash and cash equivalents at March 31 | $ | 204,241 | $ | 168,025 |
Consolidated Statement of Comprehensive Income | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net income | $ | 7,167 | $ | 5,424 | $ | 20,869 | $ | 15,867 | |||||||
Other comprehensive income (loss), net-of-tax: | |||||||||||||||
Net change in debt and equity securities | (1,172 | ) | 462 | (6,166 | ) | 931 | |||||||||
Net change in debit valuation adjustments | (269 | ) | (80 | ) | 183 | (149 | ) | ||||||||
Net change in derivatives | 21 | 24 | (346 | ) | 156 | ||||||||||
Employee benefit plan adjustments | 31 | 26 | 91 | 80 | |||||||||||
Net change in foreign currency translation adjustments | (114 | ) | 5 | (303 | ) | 102 | |||||||||
Other comprehensive income (loss) | (1,503 | ) | 437 | (6,541 | ) | 1,120 | |||||||||
Comprehensive income | $ | 5,664 | $ | 5,861 | $ | 14,328 | $ | 16,987 |
55Bank of America |
Consolidated Balance Sheet | |||||||
(Dollars in millions) | September 30 2018 | December 31 2017 | |||||
Assets | |||||||
Cash and due from banks | $ | 27,440 | $ | 29,480 | |||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 157,418 | 127,954 | |||||
Cash and cash equivalents | 184,858 | 157,434 | |||||
Time deposits placed and other short-term investments | 7,865 | 11,153 | |||||
Federal funds sold and securities borrowed or purchased under agreements to resell (includes $52,524 and $52,906 measured at fair value) | 248,237 | 212,747 | |||||
Trading account assets (includes $110,199 and $106,274 pledged as collateral) | 219,118 | 209,358 | |||||
Derivative assets | 45,617 | 37,762 | |||||
Debt securities: | |||||||
Carried at fair value | 251,635 | 315,117 | |||||
Held-to-maturity, at cost (fair value – $187,988 and $123,299) | 194,472 | 125,013 | |||||
Total debt securities | 446,107 | 440,130 | |||||
Loans and leases (includes $5,731 and $5,710 measured at fair value) | 929,801 | 936,749 | |||||
Allowance for loan and lease losses | (9,734 | ) | (10,393 | ) | |||
Loans and leases, net of allowance | 920,067 | 926,356 | |||||
Premises and equipment, net | 9,680 | 9,247 | |||||
Goodwill | 68,951 | 68,951 | |||||
Loans held-for-sale (includes $3,116 and $2,156 measured at fair value) | 5,576 | 11,430 | |||||
Customer and other receivables | 56,962 | 61,623 | |||||
Other assets (includes $23,738 and $22,581 measured at fair value) | 125,795 | 135,043 | |||||
Total assets | $ | 2,338,833 | $ | 2,281,234 | |||
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | |||||||
Trading account assets | $ | 6,145 | $ | 6,521 | |||
Loans and leases | 44,163 | 48,929 | |||||
Allowance for loan and lease losses | (920 | ) | (1,016 | ) | |||
Loans and leases, net of allowance | 43,243 | 47,913 | |||||
All other assets | 357 | 1,721 | |||||
Total assets of consolidated variable interest entities | $ | 49,745 | $ | 56,155 |
Bank of America56 |
Consolidated Balance Sheet (continued) | |||||||
(Dollars in millions) | September 30 2018 | December 31 2017 | |||||
Liabilities | |||||||
Deposits in U.S. offices: | |||||||
Noninterest-bearing | $ | 414,853 | $ | 430,650 | |||
Interest-bearing (includes $529 and $449 measured at fair value) | 844,204 | 796,576 | |||||
Deposits in non-U.S. offices: | |||||||
Noninterest-bearing | 12,896 | 14,024 | |||||
Interest-bearing | 73,696 | 68,295 | |||||
Total deposits | 1,345,649 | 1,309,545 | |||||
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $34,242 and $36,182 measured at fair value) | 171,600 | 176,865 | |||||
Trading account liabilities | 89,964 | 81,187 | |||||
Derivative liabilities | 36,189 | 34,300 | |||||
Short-term borrowings (includes $1,789 and $1,494 measured at fair value) | 29,035 | 32,666 | |||||
Accrued expenses and other liabilities (includes $24,516 and $22,840 measured at fair value and $792 and $777 of reserve for unfunded lending commitments) | 170,138 | 152,123 | |||||
Long-term debt (includes $28,677 and $31,786 measured at fair value) | 234,100 | 227,402 | |||||
Total liabilities | 2,076,675 | 2,014,088 | |||||
Commitments and contingencies (Note 7 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies) | |||||||
Shareholders’ equity | |||||||
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,843,140 and 3,837,683 shares | 22,326 | 22,323 | |||||
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 9,858,252,641 and 10,287,302,431 shares | 123,921 | 138,089 | |||||
Retained earnings | 130,747 | 113,816 | |||||
Accumulated other comprehensive income (loss) | (14,836 | ) | (7,082 | ) | |||
Total shareholders’ equity | 262,158 | 267,146 | |||||
Total liabilities and shareholders’ equity | $ | 2,338,833 | $ | 2,281,234 | |||
Liabilities of consolidated variable interest entities included in total liabilities above | |||||||
Short-term borrowings | $ | 905 | $ | 312 | |||
Long-term debt (includes $11,024 and $9,872 of non-recourse debt) | 11,024 | 9,873 | |||||
All other liabilities (includes $37 and $34 of non-recourse liabilities) | 39 | 37 | |||||
Total liabilities of consolidated variable interest entities | $ | 11,968 | $ | 10,222 |
57Bank of America |
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, December 31, 2016 | $ | 25,220 | 10,052.6 | $ | 147,038 | $ | 101,225 | $ | (7,288 | ) | $ | 266,195 | ||||||||||
Net income | 15,867 | 15,867 | ||||||||||||||||||||
Net change in debt and equity securities | 931 | 931 | ||||||||||||||||||||
Net change in debit valuation adjustments | (149 | ) | (149 | ) | ||||||||||||||||||
Net change in derivatives | 156 | 156 | ||||||||||||||||||||
Employee benefit plan adjustments | 80 | 80 | ||||||||||||||||||||
Net change in foreign currency translation adjustments | 102 | 102 | ||||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common | (2,768 | ) | (2,768 | ) | ||||||||||||||||||
Preferred | (1,292 | ) | (1,292 | ) | ||||||||||||||||||
Common stock issued in connection with exercise of warrants and exchange of preferred stock | (2,897 | ) | 700.0 | 2,933 | (36 | ) | — | |||||||||||||||
Common stock issued under employee plans, net and other | 39.5 | 792 | 792 | |||||||||||||||||||
Common stock repurchased | (334.6 | ) | (7,945 | ) | (7,945 | ) | ||||||||||||||||
Balance, September 30, 2017 | $ | 22,323 | 10,457.5 | $ | 142,818 | $ | 112,996 | $ | (6,168 | ) | $ | 271,969 | ||||||||||
Balance, December 31, 2017 | $ | 22,323 | 10,287.3 | $ | 138,089 | $ | 113,816 | $ | (7,082 | ) | $ | 267,146 | ||||||||||
Cumulative adjustment for adoption of hedge accounting standard | (32 | ) | 57 | 25 | ||||||||||||||||||
Adoption of accounting standard related to certain tax effects stranded in accumulated other comprehensive income (loss) | 1,270 | (1,270 | ) | — | ||||||||||||||||||
Net income | 20,869 | 20,869 | ||||||||||||||||||||
Net change in debt and equity securities | (6,166 | ) | (6,166 | ) | ||||||||||||||||||
Net change in debit valuation adjustments | 183 | 183 | ||||||||||||||||||||
Net change in derivatives | (346 | ) | (346 | ) | ||||||||||||||||||
Employee benefit plan adjustments | 91 | 91 | ||||||||||||||||||||
Net change in foreign currency translation adjustments | (303 | ) | (303 | ) | ||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common | (3,952 | ) | (3,952 | ) | ||||||||||||||||||
Preferred | (1,212 | ) | (1,212 | ) | ||||||||||||||||||
Issuance of preferred stock | 4,515 | 4,515 | ||||||||||||||||||||
Redemption of preferred stock | (4,512 | ) | (4,512 | ) | ||||||||||||||||||
Common stock issued under employee plans, net and other | 52.8 | 695 | (12 | ) | 683 | |||||||||||||||||
Common stock repurchased | (481.8 | ) | (14,863 | ) | (14,863 | ) | ||||||||||||||||
Balance, September 30, 2018 | $ | 22,326 | 9,858.3 | $ | 123,921 | $ | 130,747 | $ | (14,836 | ) | $ | 262,158 |
Bank of America58 |
Consolidated Statement of Cash Flows | |||||||
Nine Months Ended September 30 | |||||||
(Dollars in millions) | 2018 | 2017 | |||||
Operating activities | |||||||
Net income | $ | 20,869 | $ | 15,867 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 2,377 | 2,395 | |||||
Gains on sales of debt securities | (76 | ) | (278 | ) | |||
Depreciation and premises improvements amortization | 1,135 | 1,115 | |||||
Amortization of intangibles | 404 | 473 | |||||
Net amortization of premium/discount on debt securities | 1,411 | 1,647 | |||||
Deferred income taxes | 2,845 | 5,131 | |||||
Stock-based compensation | 1,323 | 1,222 | |||||
Loans held-for-sale: | |||||||
Originations and purchases | (16,830 | ) | (31,404 | ) | |||
Proceeds from sales and paydowns of loans originally classified as held for sale and instruments from related securitization activities | 23,221 | 27,484 | |||||
Net change in: | |||||||
Trading and derivative instruments | (13,347 | ) | (12,553 | ) | |||
Other assets | 13,648 | (9,993 | ) | ||||
Accrued expenses and other liabilities | 18,266 | 11,201 | |||||
Other operating activities, net | (1,804 | ) | 4,657 | ||||
Net cash provided by operating activities | 53,442 | 16,964 | |||||
Investing activities | |||||||
Net change in: | |||||||
Time deposits placed and other short-term investments | 3,288 | 368 | |||||
Federal funds sold and securities borrowed or purchased under agreements to resell | (35,490 | ) | (18,990 | ) | |||
Debt securities carried at fair value: | |||||||
Proceeds from sales | 3,070 | 64,597 | |||||
Proceeds from paydowns and maturities | 56,458 | 71,628 | |||||
Purchases | (54,923 | ) | (134,915 | ) | |||
Held-to-maturity debt securities: | |||||||
Proceeds from paydowns and maturities | 13,566 | 12,194 | |||||
Purchases | (35,215 | ) | (17,850 | ) | |||
Loans and leases: | |||||||
Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities | 13,600 | 8,874 | |||||
Purchases | (3,323 | ) | (4,511 | ) | |||
Other changes in loans and leases, net | (6,432 | ) | (29,654 | ) | |||
Other investing activities, net | (1,750 | ) | 8,635 | ||||
Net cash used in investing activities | (47,151 | ) | (39,624 | ) | |||
Financing activities | |||||||
Net change in: | |||||||
Deposits | 36,104 | 23,483 | |||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | (5,313 | ) | 19,987 | ||||
Short-term borrowings | (3,631 | ) | 8,583 | ||||
Long-term debt: | |||||||
Proceeds from issuance | 60,873 | 50,702 | |||||
Retirement | (44,817 | ) | (44,652 | ) | |||
Preferred stock: | |||||||
Proceeds from issuance | 4,515 | — | |||||
Redemption | (4,512 | ) | — | ||||
Common stock repurchased | (14,863 | ) | (7,945 | ) | |||
Cash dividends paid | (5,150 | ) | (4,124 | ) | |||
Other financing activities, net | (644 | ) | (609 | ) | |||
Net cash provided by financing activities | 22,562 | 45,425 | |||||
Effect of exchange rate changes on cash and cash equivalents | (1,429 | ) | 1,878 | ||||
Net increase in cash and cash equivalents | 27,424 | 24,643 | |||||
Cash and cash equivalents at January 1 | 157,434 | 147,738 | |||||
Cash and cash equivalents at September 30 | $ | 184,858 | $ | 172,381 |
59 Bank of America |
● | Revenue Recognition – The new accounting standard addresses the recognition of revenue from contracts with customers. For additional information, see Revenue Recognition Accounting Policies in this Note, Note 2 – Noninterest Income and Note 17 – Business Segment Information. |
● | Hedge Accounting – The new accounting standard simplifies and expands the ability to apply hedge accounting to certain risk management activities. For additional information, see Note 3 – Derivatives. |
● | Recognition and Measurement of Financial Assets and Liabilities – The new accounting standard relates to the recognition and measurement of financial instruments, including equity investments. For additional information, see Note 4 – Securities and Note 16 – Fair Value of Financial Instruments. |
● | Tax Effects in Accumulated Other Comprehensive Income – The new accounting standard addresses certain tax effects stranded in accumulated other comprehensive income (OCI) related to the Tax Act. For additional information, see Note 12 – Accumulated Other Comprehensive Income (Loss). |
● | Presentation of Pension Costs – The new accounting standard requires separate presentation of the service cost component of pension expense from all other components of net pension benefit/cost in the Consolidated Statement of Income. As a result, the service cost component continues to be presented in personnel expense while other components of net pension benefit/cost (e.g., interest cost, actual return on plan assets, amortization of prior service cost) are now presented in other general operating expense. |
● | Classification of Cash Flows and Restricted Cash – The new accounting standards address the classification of certain cash receipts and cash payments in the statement of cash flows as well as the presentation and disclosure of restricted cash. For more information on restricted cash, see Note 9 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash. |
Bank of America60 |
61Bank of America |
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Card income | ||||||||||||||||||||||
Interchange fees (1) | $ | 971 | $ | 958 | $ | 978 | $ | 941 | $ | 3,018 | $ | 2,883 | ||||||||||
Other card income | 486 | 491 | 492 | 488 | 1,451 | 1,464 | ||||||||||||||||
Total card income | 1,457 | 1,449 | 1,470 | 1,429 | 4,469 | 4,347 | ||||||||||||||||
Service charges | ||||||||||||||||||||||
Deposit-related fees | 1,646 | 1,653 | 1,682 | 1,691 | 5,009 | 5,040 | ||||||||||||||||
Lending-related fees | 275 | 265 | 279 | 277 | 827 | 823 | ||||||||||||||||
Total service charges | 1,921 | 1,918 | 1,961 | 1,968 | 5,836 | 5,863 | ||||||||||||||||
Investment and brokerage services | ||||||||||||||||||||||
Asset management fees | 2,564 | 2,200 | 2,576 | 2,367 | 7,652 | 6,855 | ||||||||||||||||
Brokerage fees | 1,100 | 1,217 | 918 | 1,070 | 2,964 | 3,459 | ||||||||||||||||
Total investment and brokerage services | 3,664 | 3,417 | 3,494 | 3,437 | 10,616 | 10,314 | ||||||||||||||||
Investment banking income | ||||||||||||||||||||||
Underwriting income | 740 | 779 | 701 | 698 | 2,160 | 2,185 | ||||||||||||||||
Syndication fees | 316 | 400 | 241 | 405 | 958 | 1,146 | ||||||||||||||||
Financial advisory services | 297 | 405 | 262 | 374 | 861 | 1,262 | ||||||||||||||||
Total investment banking income | 1,353 | 1,584 | 1,204 | 1,477 | 3,979 | 4,593 | ||||||||||||||||
Trading account profits | 2,699 | 2,331 | 1,893 | 1,837 | 6,907 | 6,124 | ||||||||||||||||
Other income | 423 | 491 | 885 | 530 | 1,576 | 2,470 | ||||||||||||||||
Total noninterest income | $ | 11,517 | $ | 11,190 | $ | 10,907 | $ | 10,678 | $ | 33,383 | $ | 33,711 |
(1) | Gross interchange fees were $ |
Bank of America |
March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Derivative Assets | Gross Derivative Liabilities | Gross Derivative Assets | Gross Derivative Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in billions) | Contract/ Notional (1) | Trading and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | Trading and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | Contract/ 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 | $ | 17,401.6 | $ | 166.4 | $ | 2.2 | $ | 168.6 | $ | 160.8 | $ | 3.5 | $ | 164.3 | $ | 17,788.7 | $ | 138.9 | $ | 1.3 | $ | 140.2 | $ | 132.7 | $ | 4.5 | $ | 137.2 | |||||||||||||||||||||||||||
Futures and forwards | 6,470.8 | 1.6 | — | 1.6 | 1.6 | — | 1.6 | 6,270.1 | 1.3 | — | 1.3 | 1.2 | — | 1.2 | |||||||||||||||||||||||||||||||||||||||||
Written options | 1,274.0 | — | — | — | 33.7 | — | 33.7 | 1,433.4 | — | — | — | 26.7 | — | 26.7 | |||||||||||||||||||||||||||||||||||||||||
Purchased options | 1,258.0 | 35.4 | — | 35.4 | — | — | — | 1,488.2 | 28.7 | — | 28.7 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Swaps | 2,044.4 | 35.8 | 2.0 | 37.8 | 37.3 | 2.5 | 39.8 | 1,904.9 | 49.6 | 1.6 | 51.2 | 50.4 | 2.4 | 52.8 | |||||||||||||||||||||||||||||||||||||||||
Spot, futures and forwards | 4,734.3 | 43.4 | 0.8 | 44.2 | 40.5 | 0.7 | 41.2 | 4,568.7 | 42.1 | 0.7 | 42.8 | 41.7 | 0.5 | 42.2 | |||||||||||||||||||||||||||||||||||||||||
Written options | 363.3 | — | — | — | 5.1 | — | 5.1 | 300.4 | — | — | — | 5.1 | — | 5.1 | |||||||||||||||||||||||||||||||||||||||||
Purchased options | 323.2 | 4.9 | — | 4.9 | — | — | — | 296.0 | 4.4 | — | 4.4 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Equity contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Swaps | 271.1 | 5.7 | — | 5.7 | 5.8 | — | 5.8 | 278.2 | 4.9 | — | 4.9 | 4.7 | — | 4.7 | |||||||||||||||||||||||||||||||||||||||||
Futures and forwards | 102.4 | 0.9 | — | 0.9 | 0.7 | — | 0.7 | 104.8 | 1.0 | — | 1.0 | 1.3 | — | 1.3 | |||||||||||||||||||||||||||||||||||||||||
Written options | 521.5 | — | — | — | 25.5 | — | 25.5 | 651.4 | — | — | — | 30.0 | — | 30.0 | |||||||||||||||||||||||||||||||||||||||||
Purchased options | 491.0 | 38.3 | — | 38.3 | — | — | — | 586.1 | 40.0 | — | 40.0 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Swaps | 49.4 | 1.9 | — | 1.9 | 4.6 | — | 4.6 | 48.2 | 2.4 | — | 2.4 | 5.0 | — | 5.0 | |||||||||||||||||||||||||||||||||||||||||
Futures and forwards | 52.8 | 3.6 | — | 3.6 | 0.7 | — | 0.7 | 63.5 | 3.2 | — | 3.2 | 0.5 | — | 0.5 | |||||||||||||||||||||||||||||||||||||||||
Written options | 23.1 | — | — | — | 1.5 | — | 1.5 | 32.5 | — | — | — | 2.1 | — | 2.1 | |||||||||||||||||||||||||||||||||||||||||
Purchased options | 24.3 | 1.6 | — | 1.6 | — | — | — | 29.5 | 2.1 | — | 2.1 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Credit derivatives (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased credit derivatives: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps | 484.1 | 3.9 | — | 3.9 | 11.4 | — | 11.4 | 430.3 | 4.9 | — | 4.9 | 9.8 | — | 9.8 | |||||||||||||||||||||||||||||||||||||||||
Total return swaps/options | 67.6 | 0.2 | — | 0.2 | 1.3 | — | 1.3 | 64.6 | 0.4 | — | 0.4 | 0.9 | — | 0.9 | |||||||||||||||||||||||||||||||||||||||||
Written credit derivatives: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit default swaps | 457.4 | 11.0 | — | 11.0 | 3.4 | — | 3.4 | 398.2 | 9.3 | — | 9.3 | 4.3 | — | 4.3 | |||||||||||||||||||||||||||||||||||||||||
Total return swaps/options | 65.2 | 0.8 | — | 0.8 | 0.3 | — | 0.3 | 62.5 | 0.5 | — | 0.5 | 0.3 | — | 0.3 | |||||||||||||||||||||||||||||||||||||||||
Gross derivative assets/liabilities | $ | 355.4 | $ | 5.0 | $ | 360.4 | $ | 334.2 | $ | 6.7 | $ | 340.9 | $ | 333.7 | $ | 3.6 | $ | 337.3 | $ | 316.7 | $ | 7.4 | $ | 324.1 | |||||||||||||||||||||||||||||||
Less: Legally enforceable master netting agreements | (276.0 | ) | — | (276.0 | ) | (259.7 | ) | (259.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Cash collateral received/paid | (36.5 | ) | (31.0 | ) | (32.0 | ) | (28.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Total derivative assets/liabilities | $ | 47.9 | $ | 33.9 | $ | 45.6 | $ | 36.2 |
(1) | Represents the total contract/notional amount of derivative assets and liabilities outstanding. |
(2) | The net derivative asset and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $ |
December 31, 2017 | |||||||||||||||||||||||||||
Gross Derivative Assets | Gross Derivative Liabilities | ||||||||||||||||||||||||||
(Dollars in billions) | Contract/ 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 | $ | 15,416.4 | $ | 175.1 | $ | 2.9 | $ | 178.0 | $ | 172.5 | $ | 1.7 | $ | 174.2 | |||||||||||||
Futures and forwards | 4,332.4 | 0.5 | — | 0.5 | 0.5 | — | 0.5 | ||||||||||||||||||||
Written options | 1,170.5 | — | — | — | 35.5 | — | 35.5 | ||||||||||||||||||||
Purchased options | 1,184.5 | 37.6 | — | 37.6 | — | — | — | ||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||
Swaps | 2,011.1 | 35.6 | 2.2 | 37.8 | 36.1 | 2.7 | 38.8 | ||||||||||||||||||||
Spot, futures and forwards | 3,543.3 | 39.1 | 0.7 | 39.8 | 39.1 | 0.8 | 39.9 | ||||||||||||||||||||
Written options | 291.8 | — | — | — | 5.1 | — | 5.1 | ||||||||||||||||||||
Purchased options | 271.9 | 4.6 | — | 4.6 | — | — | — | ||||||||||||||||||||
Equity contracts | |||||||||||||||||||||||||||
Swaps | 265.6 | 4.8 | — | 4.8 | 4.4 | — | 4.4 | ||||||||||||||||||||
Futures and forwards | 106.9 | 1.5 | — | 1.5 | 0.9 | — | 0.9 | ||||||||||||||||||||
Written options | 480.8 | — | — | — | 23.9 | — | 23.9 | ||||||||||||||||||||
Purchased options | 428.2 | 24.7 | — | 24.7 | — | — | — | ||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||
Swaps | 46.1 | 1.8 | — | 1.8 | 4.6 | — | 4.6 | ||||||||||||||||||||
Futures and forwards | 47.1 | 3.5 | — | 3.5 | 0.6 | — | 0.6 | ||||||||||||||||||||
Written options | 21.7 | — | — | — | 1.4 | — | 1.4 | ||||||||||||||||||||
Purchased options | 22.9 | 1.4 | — | 1.4 | — | — | — | ||||||||||||||||||||
Credit derivatives (2) | |||||||||||||||||||||||||||
Purchased credit derivatives: | |||||||||||||||||||||||||||
Credit default swaps | 470.9 | 4.1 | — | 4.1 | 11.1 | — | 11.1 | ||||||||||||||||||||
Total return swaps/options | 54.1 | 0.1 | — | 0.1 | 1.3 | — | 1.3 | ||||||||||||||||||||
Written credit derivatives: | |||||||||||||||||||||||||||
Credit default swaps | 448.2 | 10.6 | — | 10.6 | 3.6 | — | 3.6 | ||||||||||||||||||||
Total return swaps/options | 55.2 | 0.8 | — | 0.8 | 0.2 | — | 0.2 | ||||||||||||||||||||
Gross derivative assets/liabilities | $ | 345.8 | $ | 5.8 | $ | 351.6 | $ | 340.8 | $ | 5.2 | $ | 346.0 | |||||||||||||||
Less: Legally enforceable master netting agreements | (279.2 | ) | (279.2 | ) | |||||||||||||||||||||||
Less: Cash collateral received/paid | (34.6 | ) | (32.5 | ) | |||||||||||||||||||||||
Total derivative assets/liabilities | $ | 37.8 | $ | 34.3 |
(1) | Represents the total contract/notional amount of derivative assets and liabilities outstanding. |
(2) | The net derivative asset and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $6.4 billion and $435.1 billion at December 31, 2017. |
Bank of America |
Offsetting of Derivatives (1) | ||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||
(Dollars in billions) | March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||
Over-the-counter | $ | 200.0 | $ | 194.2 | $ | 211.7 | $ | 206.0 | $ | 165.9 | $ | 161.0 | $ | 211.7 | $ | 206.0 | ||||||||||||||
Over-the-counter cleared | 3.4 | �� | 2.9 | 1.9 | 1.8 | 2.7 | 2.5 | 1.9 | 1.8 | |||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||
Over-the-counter | 83.5 | 83.3 | 78.7 | 80.8 | 95.2 | 97.1 | 78.7 | 80.8 | ||||||||||||||||||||||
Over-the-counter cleared | 0.5 | 0.5 | 0.9 | 0.7 | 1.1 | 1.0 | 0.9 | 0.7 | ||||||||||||||||||||||
Equity contracts | ||||||||||||||||||||||||||||||
Over-the-counter | 28.5 | 16.3 | 18.3 | 16.2 | 27.2 | 17.3 | 18.3 | 16.2 | ||||||||||||||||||||||
Exchange-traded | 11.7 | 11.3 | 9.1 | 8.5 | 13.5 | 12.2 | 9.1 | 8.5 | ||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||
Over-the-counter | 3.2 | 4.2 | 2.9 | 4.4 | 3.6 | 5.1 | 2.9 | 4.4 | ||||||||||||||||||||||
Exchange-traded | 0.8 | 0.8 | 0.7 | 0.8 | 1.0 | 1.1 | 0.7 | 0.8 | ||||||||||||||||||||||
Credit derivatives | ||||||||||||||||||||||||||||||
Over-the-counter | 8.7 | 9.3 | 9.1 | 9.6 | 7.9 | 8.4 | 9.1 | 9.6 | ||||||||||||||||||||||
Over-the-counter cleared | 6.8 | 6.6 | 6.1 | 6.0 | 6.9 | 6.6 | 6.1 | 6.0 | ||||||||||||||||||||||
Total gross derivative assets/liabilities, before netting | ||||||||||||||||||||||||||||||
Over-the-counter | 323.9 | 307.3 | 320.7 | 317.0 | 299.8 | 288.9 | 320.7 | 317.0 | ||||||||||||||||||||||
Exchange-traded | 12.5 | 12.1 | 9.8 | 9.3 | 14.5 | 13.3 | 9.8 | 9.3 | ||||||||||||||||||||||
Over-the-counter cleared | 10.7 | 10.0 | 8.9 | 8.5 | 10.7 | 10.1 | 8.9 | 8.5 | ||||||||||||||||||||||
Less: Legally enforceable master netting agreements and cash collateral received/paid | ||||||||||||||||||||||||||||||
Over-the-counter | (291.8 | ) | (286.0 | ) | (296.9 | ) | (294.6 | ) | (270.1 | ) | (266.1 | ) | (296.9 | ) | (294.6 | ) | ||||||||||||||
Exchange-traded | (11.0 | ) | (11.0 | ) | (8.6 | ) | (8.6 | ) | (11.9 | ) | (11.9 | ) | (8.6 | ) | (8.6 | ) | ||||||||||||||
Over-the-counter cleared | (9.7 | ) | (10.0 | ) | (8.3 | ) | (8.5 | ) | (9.7 | ) | (9.9 | ) | (8.3 | ) | (8.5 | ) | ||||||||||||||
Derivative assets/liabilities, after netting | 34.6 | 22.4 | 25.6 | 23.1 | 33.3 | 24.4 | 25.6 | 23.1 | ||||||||||||||||||||||
Other gross derivative assets/liabilities (2) | 13.3 | 11.5 | 12.2 | 11.2 | 12.3 | 11.8 | 12.2 | 11.2 | ||||||||||||||||||||||
Total derivative assets/liabilities | 47.9 | 33.9 | 37.8 | 34.3 | 45.6 | 36.2 | 37.8 | 34.3 | ||||||||||||||||||||||
Less: Financial instruments collateral (3) | (20.1 | ) | (8.7 | ) | (11.2 | ) | (10.4 | ) | (18.4 | ) | (9.3 | ) | (11.2 | ) | (10.4 | ) | ||||||||||||||
Total net derivative assets/liabilities | $ | 27.8 | $ | 25.2 | $ | 26.6 | $ | 23.9 | $ | 27.2 | $ | 26.9 | $ | 26.6 | $ | 23.9 |
(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, and 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. |
Gains and Losses on Derivatives Designated as Fair Value Hedges | ||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | ||||||||||||||||||||||||||||||||||||||
2018 | 2017 | Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Derivative | Hedged Item | Derivative | Hedged Item | Hedge Ineffectiveness | Derivative | Hedged Item | Derivative | Hedged Item | Hedge Ineffectiveness | ||||||||||||||||||||||||||||
Interest rate risk on long-term debt (1) | $ | (2,305 | ) | $ | 2,236 | $ | (750 | ) | $ | 566 | $ | (184 | ) | $ | (1,129 | ) | $ | 1,122 | $ | (273 | ) | $ | 169 | $ | (104 | ) | ||||||||||||
Interest rate and foreign currency risk on long-term debt (2, 3) | 322 | (346 | ) | 123 | (133 | ) | (10 | ) | (182 | ) | 207 | 607 | (593 | ) | 14 | |||||||||||||||||||||||
Interest rate risk on available-for-sale securities (4) | (31 | ) | 30 | 17 | (37 | ) | (20 | ) | 12 | (12 | ) | (8 | ) | 7 | (1 | ) | ||||||||||||||||||||||
Total | $ | (2,014 | ) | $ | 1,920 | $ | (610 | ) | $ | 396 | $ | (214 | ) | $ | (1,299 | ) | $ | 1,317 | $ | 326 | $ | (417 | ) | $ | (91 | ) | ||||||||||||
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||||||||
Derivative | Hedged Item | Derivative | Hedged Item | Hedge Ineffectiveness | ||||||||||||||||||||||||||||||||||
Interest rate risk on long-term debt (1) | $ | (4,303 | ) | $ | 4,179 | $ | (751 | ) | $ | 313 | $ | (438 | ) | |||||||||||||||||||||||||
Interest rate and foreign currency risk on long-term debt (2, 3) | (927 | ) | 795 | 1,631 | (1,603 | ) | 28 | |||||||||||||||||||||||||||||||
Interest rate risk on available-for-sale securities (4) | (20 | ) | 19 | (71 | ) | 40 | (31 | ) | ||||||||||||||||||||||||||||||
Total | $ | (5,250 | ) | $ | 4,993 | $ | 809 | $ | (1,250 | ) | $ | (441 | ) |
(1) | Amounts are recorded in interest expense in the Consolidated Statement of Income. |
(2) | For the three and nine months ended |
(3) | For the three and nine months ended |
(4) | Amounts are recorded in interest income in the Consolidated Statement of Income. |
Designated Fair Value Hedged Assets (Liabilities) | ||||||||||||||
March 31, 2018 | September 30, 2018 | |||||||||||||
(Dollars in millions) | Carrying Value | Cumulative Fair Value Adjustments (1) | Carrying Value | Cumulative Fair Value Adjustments (1) | ||||||||||
Long-term debt | $ | (129,893 | ) | $ | 1,086 | $ | (137,610 | ) | $ | 1,839 | ||||
Available-for-sale securities (2) | 961 | (36 | ) | 951 | (61 | ) |
(1) | For assets, increase (decrease) to carrying value and for liabilities, (increase) decrease to carrying value. |
(2) | The amortized cost of available-for-sale securities in fair value hedging relationships was $ |
Bank of America66 |
Gains and Losses on Derivatives Designated as Cash Flow and Net Investment Hedges | |||||||||||||||||||||||||||||||
Three Months Ended March 31 | |||||||||||||||||||||||||||||||
2018 | 2017 | 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) | 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 | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||||
Interest rate risk on variable-rate assets (1) | $ | (428 | ) | $ | (50 | ) | $ | (37 | ) | $ | (112 | ) | $ | (54 | ) | $ | (51 | ) | $ | (553 | ) | $ | (134 | ) | |||||||
Price risk on certain restricted stock awards (2) | 4 | 27 | 28 | 42 | — | — | 4 | 27 | |||||||||||||||||||||||
Total | $ | (424 | ) | $ | (23 | ) | $ | (9 | ) | $ | (70 | ) | $ | (54 | ) | $ | (51 | ) | $ | (549 | ) | $ | (107 | ) | |||||||
Net investment hedges | |||||||||||||||||||||||||||||||
Foreign exchange risk (3) | $ | (244 | ) | $ | (1 | ) | $ | (389 | ) | $ | (130 | ) | $ | 181 | $ | 383 | $ | 860 | $ | 382 | |||||||||||
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||||
Interest rate risk on variable-rate assets (1) | $ | 11 | $ | (54 | ) | $ | 38 | $ | (274 | ) | |||||||||||||||||||||
Price risk on certain restricted stock awards (2) | 7 | 32 | 41 | 103 | |||||||||||||||||||||||||||
Total | $ | 18 | $ | (22 | ) | $ | 79 | $ | (171 | ) | |||||||||||||||||||||
Net investment hedges | |||||||||||||||||||||||||||||||
Foreign exchange risk (3) | $ | (427 | ) | $ | (3 | ) | $ | (1,541 | ) | $ | 1,811 |
(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 personnel expense in the Consolidated Statement of Income. |
(3) | Amounts reclassified from accumulated OCI are recorded in other income in the Consolidated Statement of Income. For the three and nine months ended |
Other Risk Management Derivatives | ||||||||||||||||||||||
Gains and Losses on Other Risk Management Derivatives | Gains and Losses on Other Risk Management Derivatives | |||||||||||||||||||||
Gains (Losses) | Three Months Ended March 31 | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Interest rate risk on mortgage activities (1) | $ | (135 | ) | $ | (24 | ) | $ | (45 | ) | $ | 1 | $ | (206 | ) | $ | 32 | ||||||
Credit risk on loans | (3 | ) | (2 | ) | (2 | ) | — | (7 | ) | (3 | ) | |||||||||||
Interest rate and foreign currency risk on ALM activities | (139 | ) | (290 | ) | 487 | 26 | 1,050 | (26 | ) |
(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 $ |
(2) |
Primarily related to hedges of debt securities carried at fair value and hedges of foreign currency-denominated debt. |
67Bank of America |
Sales and Trading Revenue | ||||||||||||||||||||||||||||||||||||||||||||||
Trading Account Profits | Net Interest Income | Other (1) | Total | Trading Account Profits | Net Interest Income | Other (1) | Total | |||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Trading Account Profits | Net Interest Income | Other (1) | Total | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest rate risk | $ | 620 | $ | 206 | $ | 68 | $ | 894 | $ | 182 | $ | 307 | $ | 134 | $ | 623 | $ | 1,070 | $ | 946 | $ | 203 | $ | 2,219 | ||||||||||||||||||||||
Foreign exchange risk | 404 | (5 | ) | 2 | 401 | 379 | (2 | ) | 2 | 379 | 1,175 | (15 | ) | 5 | 1,165 | |||||||||||||||||||||||||||||||
Equity risk | 1,154 | (125 | ) | 449 | 1,478 | 853 | (215 | ) | 350 | 988 | 3,105 | (542 | ) | 1,196 | 3,759 | |||||||||||||||||||||||||||||||
Credit risk | 463 | 591 | 136 | 1,190 | 266 | 465 | 106 | 837 | 1,093 | 1,424 | 377 | 2,894 | ||||||||||||||||||||||||||||||||||
Other risk | 62 | 9 | 16 | 87 | 47 | 26 | 19 | 92 | 171 | 39 | 60 | 270 | ||||||||||||||||||||||||||||||||||
Total sales and trading revenue | $ | 2,703 | $ | 676 | $ | 671 | $ | 4,050 | $ | 1,727 | $ | 581 | $ | 611 | $ | 2,919 | $ | 6,614 | $ | 1,852 | $ | 1,841 | $ | 10,307 | ||||||||||||||||||||||
Three Months Ended March 31, 2017 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate risk | $ | 348 | $ | 310 | $ | 76 | $ | 734 | $ | 330 | $ | 365 | $ | 49 | $ | 744 | $ | 833 | $ | 1,182 | $ | 200 | $ | 2,215 | ||||||||||||||||||||||
Foreign exchange risk | 368 | (3 | ) | 1 | 366 | 348 | 2 | 2 | 352 | 1,063 | (2 | ) | 5 | 1,066 | ||||||||||||||||||||||||||||||||
Equity risk | 672 | (75 | ) | 486 | 1,083 | 639 | (142 | ) | 467 | 964 | 2,088 | (372 | ) | 1,427 | 3,143 | |||||||||||||||||||||||||||||||
Credit risk | 686 | 644 | 197 | 1,527 | 362 | 482 | 105 | 949 | 1,482 | 1,467 | 450 | 3,399 | ||||||||||||||||||||||||||||||||||
Other risk | 103 | 4 | 33 | 140 | 35 | 8 | 16 | 59 | 168 | 18 | 67 | 253 | ||||||||||||||||||||||||||||||||||
Total sales and trading revenue | $ | 2,177 | $ | 880 | $ | 793 | $ | 3,850 | $ | 1,714 | $ | 715 | $ | 639 | $ | 3,068 | $ | 5,634 | $ | 2,293 | $ | 2,149 | $ | 10,076 |
(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 |
Credit Derivative Instruments | ||||||||||||||||||||||||||||||||||||||
Less than One Year | One to Three Years | Three to Five Years | Over Five Years | Total | Less than One Year | One to Three Years | Three to Five Years | Over Five Years | Total | |||||||||||||||||||||||||||||
March 31, 2018 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying Value | Carrying Value | ||||||||||||||||||||||||||||||||||||
Credit default swaps: | ||||||||||||||||||||||||||||||||||||||
Investment grade | $ | 2 | $ | 1 | $ | 30 | $ | 182 | $ | 215 | $ | 2 | $ | 38 | $ | 335 | $ | 590 | $ | 965 | ||||||||||||||||||
Non-investment grade | 219 | 371 | 520 | 2,124 | 3,234 | 61 | 492 | 1,007 | 1,802 | 3,362 | ||||||||||||||||||||||||||||
Total | 221 | 372 | 550 | 2,306 | 3,449 | 63 | 530 | 1,342 | 2,392 | 4,327 | ||||||||||||||||||||||||||||
Total return swaps/options: | ||||||||||||||||||||||||||||||||||||||
Investment grade | 41 | — | — | — | 41 | 22 | — | — | — | 22 | ||||||||||||||||||||||||||||
Non-investment grade | 209 | 17 | — | — | 226 | 263 | 28 | — | — | 291 | ||||||||||||||||||||||||||||
Total | 250 | 17 | — | — | 267 | 285 | 28 | — | — | 313 | ||||||||||||||||||||||||||||
Total credit derivatives | $ | 471 | $ | 389 | $ | 550 | $ | 2,306 | $ | 3,716 | $ | 348 | $ | 558 | $ | 1,342 | $ | 2,392 | $ | 4,640 | ||||||||||||||||||
Credit-related notes: | ||||||||||||||||||||||||||||||||||||||
Investment grade | $ | — | $ | — | $ | 8 | $ | 634 | $ | 642 | $ | — | $ | — | $ | 5 | $ | 602 | $ | 607 | ||||||||||||||||||
Non-investment grade | 4 | 3 | 10 | 1,682 | 1,699 | 3 | 1 | 4 | 1,455 | 1,463 | ||||||||||||||||||||||||||||
Total credit-related notes | $ | 4 | $ | 3 | $ | 18 | $ | 2,316 | $ | 2,341 | $ | 3 | $ | 1 | $ | 9 | $ | 2,057 | $ | 2,070 | ||||||||||||||||||
Maximum Payout/Notional | Maximum Payout/Notional | |||||||||||||||||||||||||||||||||||||
Credit default swaps: | ||||||||||||||||||||||||||||||||||||||
Investment grade | $ | 39,988 | $ | 113,263 | $ | 118,991 | $ | 34,167 | $ | 306,409 | $ | 61,224 | $ | 93,646 | $ | 82,657 | $ | 30,883 | $ | 268,410 | ||||||||||||||||||
Non-investment grade | 39,210 | 44,802 | 46,083 | 20,866 | 150,961 | 22,980 | 37,907 | 47,164 | 21,785 | 129,836 | ||||||||||||||||||||||||||||
Total | 79,198 | 158,065 | 165,074 | 55,033 | 457,370 | 84,204 | 131,553 | 129,821 | 52,668 | 398,246 | ||||||||||||||||||||||||||||
Total return swaps/options: | ||||||||||||||||||||||||||||||||||||||
Investment grade | 45,484 | 2,089 | — | 139 | 47,712 | 40,115 | 1,263 | 62 | 76 | 41,516 | ||||||||||||||||||||||||||||
Non-investment grade | 16,844 | 275 | 169 | 220 | 17,508 | 20,648 | 207 | 39 | 72 | 20,966 | ||||||||||||||||||||||||||||
Total | 62,328 | 2,364 | 169 | 359 | 65,220 | 60,763 | 1,470 | 101 | 148 | 62,482 | ||||||||||||||||||||||||||||
Total credit derivatives | $ | 141,526 | $ | 160,429 | $ | 165,243 | $ | 55,392 | $ | 522,590 | $ | 144,967 | $ | 133,023 | $ | 129,922 | $ | 52,816 | $ | 460,728 | ||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Carrying Value | Carrying Value | |||||||||||||||||||||||||||||||||||||
Credit default swaps: | ||||||||||||||||||||||||||||||||||||||
Investment grade | $ | 4 | $ | 3 | $ | 61 | $ | 245 | $ | 313 | $ | 4 | $ | 3 | $ | 61 | $ | 245 | $ | 313 | ||||||||||||||||||
Non-investment grade | 203 | 453 | 484 | 2,133 | 3,273 | 203 | 453 | 484 | 2,133 | 3,273 | ||||||||||||||||||||||||||||
Total | 207 | 456 | 545 | 2,378 | 3,586 | 207 | 456 | 545 | 2,378 | 3,586 | ||||||||||||||||||||||||||||
Total return swaps/options: | ||||||||||||||||||||||||||||||||||||||
Investment grade | 30 | — | — | — | 30 | 30 | — | — | — | 30 | ||||||||||||||||||||||||||||
Non-investment grade | 150 | — | — | 3 | 153 | 150 | — | — | 3 | 153 | ||||||||||||||||||||||||||||
Total | 180 | — | — | 3 | 183 | 180 | — | — | 3 | 183 | ||||||||||||||||||||||||||||
Total credit derivatives | $ | 387 | $ | 456 | $ | 545 | $ | 2,381 | $ | 3,769 | $ | 387 | $ | 456 | $ | 545 | $ | 2,381 | $ | 3,769 | ||||||||||||||||||
Credit-related notes: | ||||||||||||||||||||||||||||||||||||||
Investment grade | $ | — | $ | — | $ | 7 | $ | 689 | $ | 696 | $ | — | $ | — | $ | 7 | $ | 689 | $ | 696 | ||||||||||||||||||
Non-investment grade | 12 | 4 | 34 | 1,548 | 1,598 | 12 | 4 | 34 | 1,548 | 1,598 | ||||||||||||||||||||||||||||
Total credit-related notes | $ | 12 | $ | 4 | $ | 41 | $ | 2,237 | $ | 2,294 | $ | 12 | $ | 4 | $ | 41 | $ | 2,237 | $ | 2,294 | ||||||||||||||||||
Maximum Payout/Notional | Maximum Payout/Notional | |||||||||||||||||||||||||||||||||||||
Credit default swaps: | ||||||||||||||||||||||||||||||||||||||
Investment grade | $ | 61,388 | $ | 115,480 | $ | 107,081 | $ | 21,579 | $ | 305,528 | $ | 61,388 | $ | 115,480 | $ | 107,081 | $ | 21,579 | $ | 305,528 | ||||||||||||||||||
Non-investment grade | 39,312 | 49,843 | 39,098 | 14,420 | 142,673 | 39,312 | 49,843 | 39,098 | 14,420 | 142,673 | ||||||||||||||||||||||||||||
Total | 100,700 | 165,323 | 146,179 | 35,999 | 448,201 | 100,700 | 165,323 | 146,179 | 35,999 | 448,201 | ||||||||||||||||||||||||||||
Total return swaps/options: | ||||||||||||||||||||||||||||||||||||||
Investment grade | 37,394 | 2,581 | — | 143 | 40,118 | 37,394 | 2,581 | — | 143 | 40,118 | ||||||||||||||||||||||||||||
Non-investment grade | 13,751 | 514 | 143 | 697 | 15,105 | 13,751 | 514 | 143 | 697 | 15,105 | ||||||||||||||||||||||||||||
Total | 51,145 | 3,095 | 143 | 840 | 55,223 | 51,145 | 3,095 | 143 | 840 | 55,223 | ||||||||||||||||||||||||||||
Total credit derivatives | $ | 151,845 | $ | 168,418 | $ | 146,322 | $ | 36,839 | $ | 503,424 | $ | 151,845 | $ | 168,418 | $ | 146,322 | $ | 36,839 | $ | 503,424 |
69Bank of America |
Additional Collateral Required to be Posted Upon Downgrade at March 31, 2018 | ||||||||||||||
Additional Collateral Required to be Posted Upon Downgrade at September 30, 2018 | Additional Collateral Required to be Posted Upon Downgrade at September 30, 2018 | |||||||||||||
(Dollars in millions) | One incremental notch | Second incremental notch | One incremental notch | Second incremental notch | ||||||||||
Bank of America Corporation | $ | 647 | $ | 591 | $ | 554 | $ | 314 | ||||||
Bank of America, N.A. and subsidiaries (1) | 323 | 207 | 212 | 264 |
(1) | Included in Bank of America Corporation collateral requirements in this table. |
Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at March 31, 2018 | ||||||||||||||
Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at September 30, 2018 | Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at September 30, 2018 | |||||||||||||
(Dollars in millions) | One incremental notch | Second incremental notch | One incremental notch | Second incremental notch | ||||||||||
Derivative liabilities | $ | 382 | $ | 1,158 | $ | 260 | $ | 607 | ||||||
Collateral posted | 311 | 716 | 201 | 399 |
Valuation Adjustments on Derivatives (1) | Valuation Adjustments on Derivatives (1) | Valuation Adjustments on Derivatives (1) | ||||||||||||||||||||||||
Gains (Losses) | Three Months Ended March 31 | Three Months Ended September 30 | ||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||
(Dollars in millions) | Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||
Derivative assets (CVA) | $ | (24 | ) | $ | 18 | $ | 161 | $ | 26 | $ | 71 | $ | 27 | $ | 23 | $ | 15 | |||||||||
Derivative assets/liabilities (FVA) | (37 | ) | (1 | ) | 49 | 56 | 45 | 35 | 37 | 43 | ||||||||||||||||
Derivative liabilities (DVA) | 114 | 106 | (150 | ) | (93 | ) | (69 | ) | (79 | ) | 29 | 17 | ||||||||||||||
Nine Months Ended September 30 | ||||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||||
Derivative assets (CVA) | $ | 186 | $ | 172 | $ | 281 | $ | 93 | ||||||||||||||||||
Derivative assets/liabilities (FVA) | 36 | 16 | 113 | 140 | ||||||||||||||||||||||
Derivative liabilities (DVA) | (112 | ) | (132 | ) | (249 | ) | (201 | ) |
(1) | At |
Debt Securities | Debt Securities | Debt Securities | ||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||
Agency | $ | 189,426 | $ | 168 | $ | (5,483 | ) | $ | 184,111 | $ | 141,721 | $ | 101 | $ | (5,710 | ) | $ | 136,112 | ||||||||||||
Agency-collateralized mortgage obligations | 6,525 | 15 | (142 | ) | 6,398 | 5,878 | 9 | (209 | ) | 5,678 | ||||||||||||||||||||
Commercial | 13,998 | 1 | (440 | ) | 13,559 | 14,138 | 2 | (630 | ) | 13,510 | ||||||||||||||||||||
Non-agency residential (1) | 2,354 | 260 | (10 | ) | 2,604 | 1,926 | 217 | (6 | ) | 2,137 | ||||||||||||||||||||
Total mortgage-backed securities | 212,303 | 444 | (6,075 | ) | 206,672 | 163,663 | 329 | (6,555 | ) | 157,437 | ||||||||||||||||||||
U.S. Treasury and agency securities | 54,753 | 13 | (1,794 | ) | 52,972 | 54,664 | 8 | (2,366 | ) | 52,306 | ||||||||||||||||||||
Non-U.S. securities | 6,918 | 7 | — | 6,925 | 7,076 | 5 | (2 | ) | 7,079 | |||||||||||||||||||||
Other taxable securities, substantially all asset-backed securities | 4,619 | 100 | (5 | ) | 4,714 | 3,806 | 77 | (7 | ) | 3,876 | ||||||||||||||||||||
Total taxable securities | 278,593 | 564 | (7,874 | ) | 271,283 | 229,209 | 419 | (8,930 | ) | 220,698 | ||||||||||||||||||||
Tax-exempt securities | 19,133 | 58 | (114 | ) | 19,077 | 18,401 | 36 | (87 | ) | 18,350 | ||||||||||||||||||||
Total available-for-sale debt securities | 297,726 | 622 | (7,988 | ) | 290,360 | 247,610 | 455 | (9,017 | ) | 239,048 | ||||||||||||||||||||
Other debt securities carried at fair value | 12,682 | 291 | (35 | ) | 12,938 | 12,409 | 205 | (27 | ) | 12,587 | ||||||||||||||||||||
Total debt securities carried at fair value | 310,408 | 913 | (8,023 | ) | 303,298 | 260,019 | 660 | (9,044 | ) | 251,635 | ||||||||||||||||||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities | 123,539 | 12 | (4,419 | ) | 119,132 | |||||||||||||||||||||||||
Total debt securities (2, 3) | $ | 433,947 | $ | 925 | $ | (12,442 | ) | $ | 422,430 | |||||||||||||||||||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities (2) | 194,472 | 1 | (6,485 | ) | 187,988 | |||||||||||||||||||||||||
Total debt securities (3, 4) | $ | 454,491 | $ | 661 | $ | (15,529 | ) | $ | 439,623 | |||||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||
Agency | $ | 194,119 | $ | 506 | $ | (1,696 | ) | $ | 192,929 | $ | 194,119 | $ | 506 | $ | (1,696 | ) | $ | 192,929 | ||||||||||||
Agency-collateralized mortgage obligations | 6,846 | 39 | (81 | ) | 6,804 | 6,846 | 39 | (81 | ) | 6,804 | ||||||||||||||||||||
Commercial | 13,864 | 28 | (208 | ) | 13,684 | 13,864 | 28 | (208 | ) | 13,684 | ||||||||||||||||||||
Non-agency residential (1) | 2,410 | 267 | (8 | ) | 2,669 | 2,410 | 267 | (8 | ) | 2,669 | ||||||||||||||||||||
Total mortgage-backed securities | 217,239 | 840 | (1,993 | ) | 216,086 | 217,239 | 840 | (1,993 | ) | 216,086 | ||||||||||||||||||||
U.S. Treasury and agency securities | 54,523 | 18 | (1,018 | ) | 53,523 | 54,523 | 18 | (1,018 | ) | 53,523 | ||||||||||||||||||||
Non-U.S. securities | 6,669 | 9 | (1 | ) | 6,677 | 6,669 | 9 | (1 | ) | 6,677 | ||||||||||||||||||||
Other taxable securities, substantially all asset-backed securities | 5,699 | 73 | (2 | ) | 5,770 | 5,699 | 73 | (2 | ) | 5,770 | ||||||||||||||||||||
Total taxable securities | 284,130 | 940 | (3,014 | ) | 282,056 | 284,130 | 940 | (3,014 | ) | 282,056 | ||||||||||||||||||||
Tax-exempt securities | 20,541 | 138 | (104 | ) | 20,575 | 20,541 | 138 | (104 | ) | 20,575 | ||||||||||||||||||||
Total available-for-sale debt securities | 304,671 | 1,078 | (3,118 | ) | 302,631 | 304,671 | 1,078 | (3,118 | ) | 302,631 | ||||||||||||||||||||
Other debt securities carried at fair value | 12,273 | 252 | (39 | ) | 12,486 | 12,273 | 252 | (39 | ) | 12,486 | ||||||||||||||||||||
Total debt securities carried at fair value | 316,944 | 1,330 | (3,157 | ) | 315,117 | 316,944 | 1,330 | (3,157 | ) | 315,117 | ||||||||||||||||||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities | 125,013 | 111 | (1,825 | ) | 123,299 | 125,013 | 111 | (1,825 | ) | 123,299 | ||||||||||||||||||||
Total debt securities (2, 3) | $ | 441,957 | $ | 1,441 | $ | (4,982 | ) | $ | 438,416 | |||||||||||||||||||||
Total debt securities (3, 4) | $ | 441,957 | $ | 1,441 | $ | (4,982 | ) | $ | 438,416 | |||||||||||||||||||||
Available-for-sale marketable equity securities | $ | 27 | $ | — | $ | (2 | ) | $ | 25 | $ | 27 | $ | — | $ | (2 | ) | $ | 25 |
(1) | At |
(2) | During the three and nine months ended September 30, 2018, the Corporation transferred $25 billion and $50 billion of available-for-sale debt securities to held to maturity. |
(3) | Includes securities pledged as collateral of $ |
The Corporation had debt securities from Fannie Mae (FNMA) and Freddie Mac (FHLMC) that each exceeded 10 percent of shareholders’ equity, with an amortized cost of $ |
Classified in other assets on the Consolidated Balance Sheet. |
71Bank of America |
Other Debt Securities Carried at Fair Value | ||||||||||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | September 30 2018 | December 31 2017 | ||||||||||
Mortgage-backed securities: | ||||||||||||||
Agency-collateralized mortgage obligations | $ | — | $ | 5 | ||||||||||
Non-agency residential | 2,736 | 2,764 | ||||||||||||
Total mortgage-backed securities | 2,736 | 2,769 | ||||||||||||
Mortgage-backed securities | $ | 1,696 | $ | 2,769 | ||||||||||
Non-U.S. securities (1) | 9,976 | 9,488 | 10,888 | 9,488 | ||||||||||
Other taxable securities, substantially all asset-backed securities | 226 | 229 | 3 | 229 | ||||||||||
Total | $ | 12,938 | $ | 12,486 | $ | 12,587 | $ | 12,486 |
(1) | These securities are primarily used to satisfy certain international regulatory liquidity requirements. |
Gains and Losses on Sales of AFS Debt Securities | |||||||
Three Months Ended March 31 | |||||||
(Dollars in millions) | 2018 | 2017 | |||||
Gross gains | $ | 2 | $ | 54 | |||
Gross losses | — | (2 | ) | ||||
Net gains on sales of AFS debt securities | $ | 2 | $ | 52 | |||
Income tax expense attributable to realized net gains on sales of AFS debt securities | $ | — | $ | 20 |
Gains and Losses on Sales of AFS Debt Securities | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Gross gains | $ | 83 | $ | 130 | $ | 86 | $ | 286 | |||||||
Gross losses | (10 | ) | (5 | ) | (10 | ) | (8 | ) | |||||||
Net gains on sales of AFS debt securities | $ | 73 | $ | 125 | $ | 76 | $ | 278 | |||||||
Income tax expense attributable to realized net gains on sales of AFS debt securities | $ | 17 | $ | 48 | $ | 18 | $ | 106 |
Temporarily Impaired and Other-than-temporarily Impaired AFS Debt Securities | Temporarily Impaired and Other-than-temporarily Impaired AFS Debt Securities | Temporarily Impaired and Other-than-temporarily Impaired AFS Debt Securities | ||||||||||||||||||||||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Longer | Total | Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Temporarily impaired AFS debt securities | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 109,535 | $ | (2,608 | ) | $ | 68,632 | $ | (2,875 | ) | $ | 178,167 | $ | (5,483 | ) | $ | 45,433 | $ | (1,190 | ) | $ | 87,214 | $ | (4,520 | ) | $ | 132,647 | $ | (5,710 | ) | ||||||||||||||||
Agency-collateralized mortgage obligations | 3,635 | (77 | ) | 1,579 | (65 | ) | 5,214 | (142 | ) | 1,959 | (47 | ) | 3,344 | (162 | ) | 5,303 | (209 | ) | ||||||||||||||||||||||||||||
Commercial | 8,794 | (182 | ) | 4,480 | (258 | ) | 13,274 | (440 | ) | 4,923 | (146 | ) | 7,962 | (484 | ) | 12,885 | (630 | ) | ||||||||||||||||||||||||||||
Non-agency residential | 241 | (8 | ) | — | — | 241 | (8 | ) | 23 | (2 | ) | 51 | (4 | ) | 74 | (6 | ) | |||||||||||||||||||||||||||||
Total mortgage-backed securities | 122,205 | (2,875 | ) | 74,691 | (3,198 | ) | 196,896 | (6,073 | ) | 52,338 | (1,385 | ) | 98,571 | (5,170 | ) | 150,909 | (6,555 | ) | ||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 27,813 | (760 | ) | 23,792 | (1,034 | ) | 51,605 | (1,794 | ) | 10,651 | (409 | ) | 40,337 | (1,957 | ) | 50,988 | (2,366 | ) | ||||||||||||||||||||||||||||
Non-U.S. securities | 706 | (1 | ) | 81 | (1 | ) | 787 | (2 | ) | |||||||||||||||||||||||||||||||||||||
Other taxable securities, substantially all asset-backed securities | 135 | (3 | ) | 102 | (2 | ) | 237 | (5 | ) | 208 | (3 | ) | 150 | (4 | ) | 358 | (7 | ) | ||||||||||||||||||||||||||||
Total taxable securities | 150,153 | (3,638 | ) | 98,585 | (4,234 | ) | 248,738 | (7,872 | ) | 63,903 | (1,798 | ) | 139,139 | (7,132 | ) | 203,042 | (8,930 | ) | ||||||||||||||||||||||||||||
Tax-exempt securities | 251 | (1 | ) | 5,667 | (113 | ) | 5,918 | (114 | ) | 474 | (1 | ) | 4,324 | (86 | ) | 4,798 | (87 | ) | ||||||||||||||||||||||||||||
Total temporarily impaired AFS debt securities | 150,404 | (3,639 | ) | 104,252 | (4,347 | ) | 254,656 | (7,986 | ) | 64,377 | (1,799 | ) | 143,463 | (7,218 | ) | 207,840 | (9,017 | ) | ||||||||||||||||||||||||||||
Other-than-temporarily impaired AFS debt securities (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 103 | (2 | ) | — | — | 103 | (2 | ) | 93 | — | — | — | 93 | — | ||||||||||||||||||||||||||||||||
Total temporarily impaired and other-than-temporarily impaired AFS debt securities | $ | 150,507 | $ | (3,641 | ) | $ | 104,252 | $ | (4,347 | ) | $ | 254,759 | $ | (7,988 | ) | $ | 64,470 | $ | (1,799 | ) | $ | 143,463 | $ | (7,218 | ) | $ | 207,933 | $ | (9,017 | ) | ||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Temporarily impaired AFS debt securities | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 73,535 | $ | (352 | ) | $ | 72,612 | $ | (1,344 | ) | $ | 146,147 | $ | (1,696 | ) | $ | 73,535 | $ | (352 | ) | $ | 72,612 | $ | (1,344 | ) | $ | 146,147 | $ | (1,696 | ) | ||||||||||||||||
Agency-collateralized mortgage obligations | 2,743 | (29 | ) | 1,684 | (52 | ) | 4,427 | (81 | ) | 2,743 | (29 | ) | 1,684 | (52 | ) | 4,427 | (81 | ) | ||||||||||||||||||||||||||||
Commercial | 5,575 | (50 | ) | 4,586 | (158 | ) | 10,161 | (208 | ) | 5,575 | (50 | ) | 4,586 | (158 | ) | 10,161 | (208 | ) | ||||||||||||||||||||||||||||
Non-agency residential | 335 | (7 | ) | — | — | 335 | (7 | ) | 335 | (7 | ) | — | — | 335 | (7 | ) | ||||||||||||||||||||||||||||||
Total mortgage-backed securities | 82,188 | (438 | ) | 78,882 | (1,554 | ) | 161,070 | (1,992 | ) | 82,188 | (438 | ) | 78,882 | (1,554 | ) | 161,070 | (1,992 | ) | ||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 27,537 | (251 | ) | 24,035 | (767 | ) | 51,572 | (1,018 | ) | 27,537 | (251 | ) | 24,035 | (767 | ) | 51,572 | (1,018 | ) | ||||||||||||||||||||||||||||
Non-U.S. securities | 772 | (1 | ) | — | — | 772 | (1 | ) | 772 | (1 | ) | — | — | 772 | (1 | ) | ||||||||||||||||||||||||||||||
Other taxable securities, substantially all asset-backed securities | — | — | 92 | (2 | ) | 92 | (2 | ) | — | — | 92 | (2 | ) | 92 | (2 | ) | ||||||||||||||||||||||||||||||
Total taxable securities | 110,497 | (690 | ) | 103,009 | (2,323 | ) | 213,506 | (3,013 | ) | 110,497 | (690 | ) | 103,009 | (2,323 | ) | 213,506 | (3,013 | ) | ||||||||||||||||||||||||||||
Tax-exempt securities | 1,090 | (2 | ) | 7,100 | (102 | ) | 8,190 | (104 | ) | 1,090 | (2 | ) | 7,100 | (102 | ) | 8,190 | (104 | ) | ||||||||||||||||||||||||||||
Total temporarily impaired AFS debt securities | 111,587 | (692 | ) | 110,109 | (2,425 | ) | 221,696 | (3,117 | ) | 111,587 | (692 | ) | 110,109 | (2,425 | ) | 221,696 | (3,117 | ) | ||||||||||||||||||||||||||||
Other-than-temporarily impaired AFS debt securities (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 58 | (1 | ) | — | — | 58 | (1 | ) | 58 | (1 | ) | — | — | 58 | (1 | ) | ||||||||||||||||||||||||||||||
Total temporarily impaired and other-than-temporarily impaired AFS debt securities | $ | 111,645 | $ | (693 | ) | $ | 110,109 | $ | (2,425 | ) | $ | 221,754 | $ | (3,118 | ) | $ | 111,645 | $ | (693 | ) | $ | 110,109 | $ | (2,425 | ) | $ | 221,754 | $ | (3,118 | ) |
(1) | Includes other-than-temporarily impaired (OTTI) AFS debt securities on which an OTTI loss, primarily related to changes in interest rates, remains in accumulated OCI. |
Significant Assumptions | ||||||||||||||||
Range (1) | Range (1) | |||||||||||||||
Weighted average | 10th Percentile (2) | 90th Percentile (2) | Weighted average | 10th Percentile (2) | 90th Percentile (2) | |||||||||||
Prepayment speed | 11.7 | % | 2.9 | % | 20.9 | % | 12.0 | % | 3.1 | % | 23.3 | % | ||||
Loss severity | 21.6 | 9.1 | 40.6 | 18.1 | 8.4 | 31.0 | ||||||||||
Life default rate | 20.1 | 1.3 | 72.3 | 20.1 | 0.7 | 73.5 |
(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. |
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 | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | 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) | March 31, 2018 | 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 | $ | 2 | 5.50 | % | $ | 26 | 3.94 | % | $ | 519 | 2.57 | % | $ | 188,879 | 3.22 | % | $ | 189,426 | 3.22 | % | $ | — | — | % | $ | 24 | 4.12 | % | $ | 463 | 2.62 | % | $ | 141,234 | 3.31 | % | $ | 141,721 | 3.31 | % | ||||||||||||||||||||||||||||
Agency-collateralized mortgage obligations | — | — | — | — | 32 | 2.53 | 6,493 | 3.17 | 6,525 | 3.17 | — | — | — | — | 31 | 2.48 | 5,847 | 3.17 | 5,878 | 3.17 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 54 | 9.55 | 1,662 | 2.15 | 11,350 | 2.44 | 932 | 2.61 | 13,998 | 2.44 | 314 | 1.74 | 2,391 | 2.36 | 10,658 | 2.50 | 775 | 2.97 | 14,138 | 2.49 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential | — | — | — | — | 22 | 0.01 | 4,843 | 9.44 | 4,865 | 9.40 | — | — | — | — | 19 | n/m | 3,439 | 9.66 | 3,458 | 9.61 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 56 | 9.40 | 1,688 | 2.18 | 11,923 | 2.44 | 201,147 | 3.37 | 214,814 | 3.31 | 314 | 1.74 | 2,415 | 2.38 | 11,171 | 2.50 | 151,295 | 3.45 | 165,195 | 3.36 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 543 | 0.41 | 26,339 | 1.41 | 27,849 | 2.12 | 22 | 2.57 | 54,753 | 1.76 | 643 | 0.71 | 33,567 | 1.47 | 20,418 | 2.27 | 36 | 2.70 | 54,664 | 1.76 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. securities | 14,405 | 0.95 | 2,110 | 0.92 | 214 | 1.17 | 153 | 6.64 | 16,882 | 1.00 | 16,518 | 0.77 | 1,305 | 1.08 | 2 | 3.56 | 128 | 6.15 | 17,953 | 0.83 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other taxable securities, substantially all asset-backed securities | 972 | 3.12 | 2,496 | 3.21 | 1,072 | 3.43 | 286 | 8.13 | 4,826 | 3.54 | 685 | 3.88 | 2,236 | 3.28 | 789 | 3.47 | 96 | 4.68 | 3,806 | 3.46 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total taxable securities | 15,976 | 1.10 | 32,633 | 1.55 | 41,058 | 2.24 | 201,608 | 3.37 | 291,275 | 2.89 | 18,160 | 0.90 | 39,523 | 1.61 | 32,380 | 2.38 | 151,555 | 3.45 | 241,618 | 2.82 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt securities | 691 | 1.58 | 6,922 | 2.10 | 8,626 | 2.07 | 2,894 | 1.94 | 19,133 | 2.04 | 1,737 | 2.57 | 7,234 | 2.42 | 6,929 | 2.38 | 2,501 | 2.78 | 18,401 | 2.47 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total amortized cost of debt securities carried at fair value | $ | 16,667 | 1.12 | $ | 39,555 | 1.65 | $ | 49,684 | 2.21 | $ | 204,502 | 3.35 | $ | 310,408 | 2.83 | $ | 19,897 | 1.05 | $ | 46,757 | 1.74 | $ | 39,309 | 2.38 | $ | 154,056 | 3.44 | $ | 260,019 | 2.79 | ||||||||||||||||||||||||||||||||||||||
Amortized cost of HTM debt securities (2) | $ | 2 | 4.35 | $ | 67 | 3.84 | $ | 1,358 | 2.74 | $ | 122,112 | 3.04 | $ | 123,539 | 3.04 | $ | 4 | 3.36 | $ | 55 | 3.62 | $ | 1,484 | 2.76 | $ | 192,929 | 3.22 | $ | 194,472 | 3.22 | ||||||||||||||||||||||||||||||||||||||
Debt securities carried at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 2 | $ | 27 | $ | 512 | $ | 183,570 | $ | 184,111 | $ | — | $ | 25 | $ | 452 | $ | 135,635 | $ | 136,112 | ||||||||||||||||||||||||||||||||||||||||||||||||
Agency-collateralized mortgage obligations | — | — | 31 | 6,367 | 6,398 | — | — | 29 | 5,649 | 5,678 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 54 | 1,635 | 10,973 | 897 | 13,559 | 312 | 2,323 | 10,138 | 737 | 13,510 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential | — | — | 32 | 5,308 | 5,340 | — | — | 36 | 3,797 | 3,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 56 | 1,662 | 11,548 | 196,142 | 209,408 | 312 | 2,348 | 10,655 | 145,818 | 159,133 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 541 | 25,460 | 26,950 | 21 | 52,972 | 642 | 32,106 | 19,523 | 35 | 52,306 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. securities | 14,403 | 2,125 | 214 | 159 | 16,901 | 16,519 | 1,314 | 2 | 132 | 17,967 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other taxable securities, substantially all asset-backed securities | 967 | 2,493 | 1,122 | 358 | 4,940 | 681 | 2,255 | 829 | 114 | 3,879 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total taxable securities | 15,967 | 31,740 | 39,834 | 196,680 | 284,221 | 18,154 | 38,023 | 31,009 | 146,099 | 233,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt securities | 691 | 6,930 | 8,582 | 2,874 | 19,077 | 1,736 | 7,235 | 6,897 | 2,482 | 18,350 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities carried at fair value | $ | 16,658 | $ | 38,670 | $ | 48,416 | $ | 199,554 | $ | 303,298 | $ | 19,890 | $ | 45,258 | $ | 37,906 | $ | 148,581 | $ | 251,635 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of HTM debt securities (2) | $ | 2 | $ | 67 | $ | 1,307 | $ | 117,756 | $ | 119,132 | $ | 4 | $ | 55 | $ | 1,415 | $ | 186,514 | $ | 187,988 |
(1) | The 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. |
73Bank 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) | Purchased Credit-impaired (4) | Loans Accounted for Under the Fair Value Option | Total Outstandings | 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) | Purchased Credit-impaired (4) | Loans Accounted for Under the Fair Value Option | Total Outstandings | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 1,080 | $ | 284 | $ | 962 | $ | 2,326 | $ | 177,252 | $ | 179,578 | $ | 1,248 | $ | 253 | $ | 814 | $ | 2,315 | $ | 186,975 | $ | 189,290 | ||||||||||||||||||||||||||||||||||||||
Home equity | 202 | 119 | 491 | 812 | 41,756 | 42,568 | 200 | 89 | 453 | 742 | 39,854 | 40,596 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-core portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 852 | 406 | 3,106 | 4,364 | 12,580 | $ | 7,590 | 24,534 | 815 | 351 | 2,345 | 3,511 | 10,044 | $ | 5,341 | 18,896 | ||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 193 | 114 | 549 | 856 | 9,339 | 2,545 | 12,740 | 162 | 78 | 398 | 638 | 8,190 | 1,811 | 10,639 | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit card and other consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. credit card | 515 | 355 | 925 | 1,795 | 91,219 | 93,014 | 546 | 387 | 872 | 1,805 | 93,024 | 94,829 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | 253 | 73 | 41 | 367 | 90,846 | 91,213 | 297 | 84 | 37 | 418 | 90,920 | 91,338 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 9 | 2 | 1 | 12 | 2,848 | 2,860 | — | — | — | — | 203 | 203 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 3,104 | 1,353 | 6,075 | 10,532 | 425,840 | 10,135 | 446,507 | 3,268 | 1,242 | 4,919 | 9,429 | 429,210 | 7,152 | 445,791 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans accounted for under the fair value option | $ | 894 | 894 | $ | 755 | 755 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans and leases | 3,104 | 1,353 | 6,075 | 10,532 | 425,840 | 10,135 | 894 | 447,401 | 3,268 | 1,242 | 4,919 | 9,429 | 429,210 | 7,152 | 755 | 446,546 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | 773 | 173 | 416 | 1,362 | 287,114 | 288,476 | 433 | 127 | 469 | 1,029 | 284,633 | 285,662 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. commercial | 36 | — | — | 36 | 97,329 | 97,365 | 29 | — | — | 29 | 95,973 | 96,002 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 159 | — | 37 | 196 | 59,889 | 60,085 | 20 | 33 | 10 | 63 | 60,772 | 60,835 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 173 | 29 | 27 | 229 | 21,535 | 21,764 | 48 | 94 | 41 | 183 | 21,363 | 21,546 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. small business commercial | 79 | 43 | 87 | 209 | 13,683 | 13,892 | 68 | 48 | 89 | 205 | 14,029 | 14,234 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 1,220 | 245 | 567 | 2,032 | 479,550 | 481,582 | 598 | 302 | 609 | 1,509 | 476,770 | 478,279 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans accounted for under the fair value option | 5,095 | 5,095 | 4,976 | 4,976 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 1,220 | 245 | 567 | 2,032 | 479,550 | 5,095 | 486,677 | 598 | 302 | 609 | 1,509 | 476,770 | 4,976 | 483,255 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases (10) | $ | 4,324 | $ | 1,598 | $ | 6,642 | $ | 12,564 | $ | 905,390 | $ | 10,135 | $ | 5,989 | $ | 934,078 | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases (9) | $ | 3,866 | $ | 1,544 | $ | 5,528 | $ | 10,938 | $ | 905,980 | $ | 7,152 | $ | 5,731 | $ | 929,801 | ||||||||||||||||||||||||||||||||||||||||||||||
Percentage of outstandings | 0.47 | % | 0.17 | % | 0.71 | % | 1.35 | % | 96.93 | % | 1.08 | % | 0.64 | % | 100.00 | % | 0.42 | % | 0.17 | % | 0.59 | % | 1.18 | % | 97.44 | % | 0.77 | % | 0.61 | % | 100.00 | % |
(1) | Consumer real estate loans 30-59 days past due includes fully-insured loans of $ |
(2) | Consumer real estate includes fully-insured loans of $ |
(3) | Consumer real estate includes $ |
(4) | Purchased credit-impaired (PCI) loan amounts are shown gross of the valuation allowance. |
(5) | Total outstandings includes |
(6) |
(7) |
Consumer loans accounted for under the fair value option includes residential mortgage loans of $ |
Total outstandings includes U.S. commercial real estate loans of $ |
Total outstandings |
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) | Purchased Credit-impaired (4) | Loans Accounted for Under the Fair Value Option | Total Outstandings | 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) | Purchased Credit-impaired (4) | Loans Accounted for Under the Fair Value Option | Total Outstandings | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | December 31, 2017 | December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 1,242 | $ | 321 | $ | 1,040 | $ | 2,603 | $ | 174,015 | $ | 176,618 | $ | 1,242 | $ | 321 | $ | 1,040 | $ | 2,603 | $ | 174,015 | $ | 176,618 | ||||||||||||||||||||||||||||||||||||||
Home equity | 215 | 108 | 473 | 796 | 43,449 | 44,245 | 215 | 108 | 473 | 796 | 43,449 | 44,245 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-core portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage (5) | 1,028 | 468 | 3,535 | 5,031 | 14,161 | $ | 8,001 | 27,193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 1,028 | 468 | 3,535 | 5,031 | 14,161 | $ | 8,001 | 27,193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 224 | 121 | 572 | 917 | 9,866 | 2,716 | 13,499 | 224 | 121 | 572 | 917 | 9,866 | 2,716 | 13,499 | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit card and other consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. credit card | 542 | 405 | 900 | 1,847 | 94,438 | 96,285 | 542 | 405 | 900 | 1,847 | 94,438 | 96,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | 320 | 102 | 43 | 465 | 93,365 | 93,830 | 330 | 104 | 44 | 478 | 95,864 | 96,342 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 10 | 2 | 1 | 13 | 2,665 | 2,678 | — | — | — | — | 166 | 166 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 3,581 | 1,527 | 6,564 | 11,672 | 431,959 | 10,717 | 454,348 | 3,581 | 1,527 | 6,564 | 11,672 | 431,959 | 10,717 | 454,348 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans accounted for under the fair value option | $ | 928 | 928 | $ | 928 | 928 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans and leases | 3,581 | 1,527 | 6,564 | 11,672 | 431,959 | 10,717 | 928 | 455,276 | 3,581 | 1,527 | 6,564 | 11,672 | 431,959 | 10,717 | 928 | 455,276 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | 547 | 244 | 425 | 1,216 | 283,620 | 284,836 | 547 | 244 | 425 | 1,216 | 283,620 | 284,836 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. commercial | 52 | 1 | 3 | 56 | 97,736 | 97,792 | 52 | 1 | 3 | 56 | 97,736 | 97,792 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 48 | 10 | 29 | 87 | 58,211 | 58,298 | 48 | 10 | 29 | 87 | 58,211 | 58,298 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 110 | 68 | 26 | 204 | 21,912 | 22,116 | 110 | 68 | 26 | 204 | 21,912 | 22,116 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. small business commercial | 95 | 45 | 88 | 228 | 13,421 | 13,649 | 95 | 45 | 88 | 228 | 13,421 | 13,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 852 | 368 | 571 | 1,791 | 474,900 | 476,691 | 852 | 368 | 571 | 1,791 | 474,900 | 476,691 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans accounted for under the fair value option | 4,782 | 4,782 | 4,782 | 4,782 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 852 | 368 | 571 | 1,791 | 474,900 | 4,782 | 481,473 | 852 | 368 | 571 | 1,791 | 474,900 | 4,782 | 481,473 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases (10) | $ | 4,433 | $ | 1,895 | $ | 7,135 | $ | 13,463 | $ | 906,859 | $ | 10,717 | $ | 5,710 | $ | 936,749 | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases (9) | $ | 4,433 | $ | 1,895 | $ | 7,135 | $ | 13,463 | $ | 906,859 | $ | 10,717 | $ | 5,710 | $ | 936,749 | ||||||||||||||||||||||||||||||||||||||||||||||
Percentage of outstandings | 0.48 | % | 0.20 | % | 0.76 | % | 1.44 | % | 96.81 | % | 1.14 | % | 0.61 | % | 100.00 | % | 0.48 | % | 0.20 | % | 0.76 | % | 1.44 | % | 96.81 | % | 1.14 | % | 0.61 | % | 100.00 | % |
(1) | Consumer real estate loans 30-59 days past due includes fully-insured loans of $850 million and nonperforming loans of $253 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $386 million and nonperforming loans of $195 million. |
(2) | Consumer real estate includes fully-insured loans of $3.2 billion. |
(3) | Consumer real estate includes $2.3 billion and direct/indirect consumer includes $43 million of nonperforming loans. |
(4) | PCI loan amounts are shown gross of the valuation allowance. |
(5) | Total outstandings includes |
Consumer loans accounted for under the fair value option includes residential mortgage loans of $567 million and home equity loans of $361 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.6 billion and non-U.S. commercial loans of $2.2 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option. |
Total outstandings includes U.S. commercial real estate loans of $54.8 billion and non-U.S. commercial real estate loans of $3.5 billion. |
Total outstandings |
75Bank of America |
Credit Quality | Credit Quality | Credit Quality | ||||||||||||||||||||||||||||
Nonperforming Loans and Leases | Accruing Past Due 90 Days or More | Nonperforming Loans and Leases | Accruing Past Due 90 Days or More | |||||||||||||||||||||||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | ||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||
Core portfolio | ||||||||||||||||||||||||||||||
Residential mortgage (1) | $ | 1,073 | $ | 1,087 | $ | 385 | $ | 417 | $ | 1,011 | $ | 1,087 | $ | 308 | $ | 417 | ||||||||||||||
Home equity | 1,118 | 1,079 | — | — | 1,056 | 1,079 | — | — | ||||||||||||||||||||||
Non-core portfolio | ||||||||||||||||||||||||||||||
Residential mortgage (1) | 1,189 | 1,389 | 2,500 | 2,813 | 1,023 | 1,389 | 1,853 | 2,813 | ||||||||||||||||||||||
Home equity | 1,480 | 1,565 | — | — | 1,170 | 1,565 | — | — | ||||||||||||||||||||||
Credit card and other consumer | ||||||||||||||||||||||||||||||
U.S. credit card | n/a | n/a | 925 | 900 | n/a | n/a | 872 | 900 | ||||||||||||||||||||||
Direct/Indirect consumer | 46 | 46 | 38 | 40 | 46 | 46 | 35 | 40 | ||||||||||||||||||||||
Other consumer | — | — | 1 | — | — | — | — | — | ||||||||||||||||||||||
Total consumer | 4,906 | 5,166 | 3,849 | 4,170 | 4,306 | 5,166 | 3,068 | 4,170 | ||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||
U.S. commercial | 1,059 | 814 | 98 | 144 | 699 | 814 | 114 | 144 | ||||||||||||||||||||||
Non-U.S. commercial | 255 | 299 | — | 3 | 31 | 299 | — | 3 | ||||||||||||||||||||||
Commercial real estate | 73 | 112 | 13 | 4 | 46 | 112 | 1 | 4 | ||||||||||||||||||||||
Commercial lease financing | 27 | 24 | 8 | 19 | 14 | 24 | 33 | 19 | ||||||||||||||||||||||
U.S. small business commercial | 58 | 55 | 76 | 75 | 58 | 55 | 73 | 75 | ||||||||||||||||||||||
Total commercial | 1,472 | 1,304 | 195 | 245 | 848 | 1,304 | 221 | 245 | ||||||||||||||||||||||
Total loans and leases | $ | 6,378 | $ | 6,470 | $ | 4,044 | $ | 4,415 | $ | 5,154 | $ | 6,470 | $ | 3,289 | $ | 4,415 |
(1) | Residential mortgage loans in the core and non-core portfolios accruing past due 90 days or more are fully-insured loans. At |
Bank of America76 |
Consumer Real Estate – Credit Quality Indicators (1) | Consumer Real Estate – Credit Quality Indicators (1) | Consumer Real Estate – Credit Quality Indicators (1) | ||||||||||||||||||||||||||||||||||||||||||||
Core Residential Mortgage (2) | Non-core Residential Mortgage (2) | Residential Mortgage PCI (3) | Core Home Equity (2) | Non-core Home Equity (2) | Home Equity PCI | Core Residential Mortgage (2) | Non-core Residential Mortgage (2) | Residential Mortgage PCI | Core Home Equity (2) | Non-core Home Equity (2) | Home Equity PCI | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Refreshed LTV | ||||||||||||||||||||||||||||||||||||||||||||||
Less than or equal to 90 percent | $ | 157,236 | $ | 10,484 | $ | 6,535 | $ | 41,498 | $ | 7,629 | $ | 1,691 | $ | 168,949 | $ | 8,594 | $ | 4,720 | $ | 39,719 | $ | 6,862 | $ | 1,277 | ||||||||||||||||||||||
Greater than 90 percent but less than or equal to 100 percent | 3,046 | 783 | 530 | 488 | 985 | 379 | 2,483 | 503 | 310 | 409 | 757 | 248 | ||||||||||||||||||||||||||||||||||
Greater than 100 percent | 1,357 | 907 | 525 | 582 | 1,581 | 475 | 923 | 544 | 311 | 468 | 1,209 | 286 | ||||||||||||||||||||||||||||||||||
Fully-insured loans (5) | 17,939 | 4,770 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Fully-insured loans (4) | 16,935 | 3,914 | ||||||||||||||||||||||||||||||||||||||||||||
Total consumer real estate | $ | 179,578 | $ | 16,944 | $ | 7,590 | $ | 42,568 | $ | 10,195 | $ | 2,545 | $ | 189,290 | $ | 13,555 | $ | 5,341 | $ | 40,596 | $ | 8,828 | $ | 1,811 | ||||||||||||||||||||||
Refreshed FICO score | ||||||||||||||||||||||||||||||||||||||||||||||
Less than 620 | $ | 2,183 | $ | 2,060 | $ | 1,790 | $ | 1,165 | $ | 1,976 | $ | 425 | $ | 2,115 | $ | 1,673 | $ | 1,185 | $ | 1,118 | $ | 1,650 | $ | 290 | ||||||||||||||||||||||
Greater than or equal to 620 and less than 680 | 4,417 | 1,771 | 1,530 | 2,261 | 2,243 | 425 | 4,379 | 1,387 | 1,010 | 2,096 | 1,883 | 288 | ||||||||||||||||||||||||||||||||||
Greater than or equal to 680 and less than 740 | 22,407 | 2,988 | 2,273 | 7,685 | 2,592 | 729 | 22,973 | 2,327 | 1,574 | 7,113 | 2,288 | 511 | ||||||||||||||||||||||||||||||||||
Greater than or equal to 740 | 132,632 | 5,355 | 1,997 | 31,457 | 3,384 | 966 | 142,888 | 4,254 | 1,572 | 30,269 | 3,007 | 722 | ||||||||||||||||||||||||||||||||||
Fully-insured loans (5) | 17,939 | 4,770 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Fully-insured loans (4) | 16,935 | 3,914 | ||||||||||||||||||||||||||||||||||||||||||||
Total consumer real estate | $ | 179,578 | $ | 16,944 | $ | 7,590 | $ | 42,568 | $ | 10,195 | $ | 2,545 | $ | 189,290 | $ | 13,555 | $ | 5,341 | $ | 40,596 | $ | 8,828 | $ | 1,811 |
(1) | Excludes $ |
(2) | Excludes PCI loans. |
(3) |
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance. |
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured. |
Credit Card and Other Consumer – Credit Quality Indicators | Credit Card and Other Consumer – Credit Quality Indicators | 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) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||
Refreshed FICO score | ||||||||||||||||||||||
Less than 620 | $ | 4,704 | $ | 1,635 | $ | 57 | $ | 4,683 | $ | 1,752 | ||||||||||||
Greater than or equal to 620 and less than 680 | 12,052 | 1,902 | 155 | 11,974 | 3,260 | |||||||||||||||||
Greater than or equal to 680 and less than 740 | 34,673 | 11,480 | 429 | 34,896 | 9,090 | |||||||||||||||||
Greater than or equal to 740 | 41,585 | 34,467 | 2,088 | 43,276 | 36,351 | |||||||||||||||||
Other internal credit metrics (1, 2) | — | 41,729 | 131 | 40,885 | $ | 203 | ||||||||||||||||
Total credit card and other consumer | $ | 93,014 | $ | 91,213 | $ | 2,860 | $ | 94,829 | $ | 91,338 | $ | 203 |
(1) | Other internal credit metrics may include delinquency status, geography or other factors. |
(2) | Direct/indirect consumer includes $ |
Commercial – Credit Quality Indicators (1) | Commercial – Credit Quality Indicators (1) | Commercial – Credit Quality Indicators (1) | ||||||||||||||||||||||||||||||||||||
U.S. Commercial | Non-U.S. Commercial | Commercial Real Estate | Commercial Lease Financing | U.S. Small Business Commercial (2) | U.S. Commercial | Non-U.S. Commercial | Commercial Real Estate | Commercial Lease Financing | U.S. Small Business Commercial (2) | |||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||||||
Risk ratings | ||||||||||||||||||||||||||||||||||||||
Pass rated | $ | 279,492 | $ | 95,807 | $ | 59,562 | $ | 21,275 | $ | 314 | $ | 277,732 | $ | 94,868 | $ | 60,271 | $ | 21,173 | $ | 275 | ||||||||||||||||||
Reservable criticized | 8,984 | 1,558 | 523 | 489 | 42 | 7,930 | 1,134 | 564 | 373 | 31 | ||||||||||||||||||||||||||||
Refreshed FICO score (3) | ||||||||||||||||||||||||||||||||||||||
Less than 620 | 238 | 242 | ||||||||||||||||||||||||||||||||||||
Greater than or equal to 620 and less than 680 | 648 | 650 | ||||||||||||||||||||||||||||||||||||
Greater than or equal to 680 and less than 740 | 1,926 | 1,993 | ||||||||||||||||||||||||||||||||||||
Greater than or equal to 740 | 3,869 | 4,181 | ||||||||||||||||||||||||||||||||||||
Other internal credit metrics (3, 4) | 6,855 | 6,862 | ||||||||||||||||||||||||||||||||||||
Total commercial | $ | 288,476 | $ | 97,365 | $ | 60,085 | $ | 21,764 | $ | 13,892 | $ | 285,662 | $ | 96,002 | $ | 60,835 | $ | 21,546 | $ | 14,234 |
(1) | Excludes $ |
(2) | U.S. small business commercial includes $ |
(3) | Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio. |
(4) | Other internal credit metrics may include delinquency status, application scores, geography or other factors. |
77Bank of America |
Consumer Real Estate – Credit Quality Indicators (1) | Consumer Real Estate – Credit Quality Indicators (1) | Consumer Real Estate – Credit Quality Indicators (1) | ||||||||||||||||||||||||||||||||||||||||||||
Core Residential Mortgage (2) | Non-core Residential Mortgage (2) | Residential Mortgage PCI (3) | Core Home Equity (2) | Non-core Home Equity (2) | Home Equity PCI | Core Residential Mortgage (2) | Non-core Residential Mortgage (2) | Residential Mortgage PCI | Core Home Equity (2) | Non-core Home Equity (2) | Home Equity PCI | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | December 31, 2017 | December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Refreshed LTV | ||||||||||||||||||||||||||||||||||||||||||||||
Less than or equal to 90 percent | $ | 153,669 | $ | 12,135 | $ | 6,872 | $ | 43,048 | $ | 7,944 | $ | 1,781 | $ | 153,669 | $ | 12,135 | $ | 6,872 | $ | 43,048 | $ | 7,944 | $ | 1,781 | ||||||||||||||||||||||
Greater than 90 percent but less than or equal to 100 percent | 3,082 | 850 | 559 | 549 | 1,053 | 412 | 3,082 | 850 | 559 | 549 | 1,053 | 412 | ||||||||||||||||||||||||||||||||||
Greater than 100 percent | 1,322 | 1,011 | 570 | 648 | 1,786 | 523 | 1,322 | 1,011 | 570 | 648 | 1,786 | 523 | ||||||||||||||||||||||||||||||||||
Fully-insured loans | 18,545 | 5,196 | — | — | — | — | 18,545 | 5,196 | ||||||||||||||||||||||||||||||||||||||
Total consumer real estate | $ | 176,618 | $ | 19,192 | $ | 8,001 | $ | 44,245 | $ | 10,783 | $ | 2,716 | $ | 176,618 | $ | 19,192 | $ | 8,001 | $ | 44,245 | $ | 10,783 | $ | 2,716 | ||||||||||||||||||||||
Refreshed FICO score | ||||||||||||||||||||||||||||||||||||||||||||||
Less than 620 | $ | 2,234 | $ | 2,390 | $ | 1,941 | $ | 1,169 | $ | 2,098 | $ | 452 | $ | 2,234 | $ | 2,390 | $ | 1,941 | $ | 1,169 | $ | 2,098 | $ | 452 | ||||||||||||||||||||||
Greater than or equal to 620 and less than 680 | 4,531 | 2,086 | 1,657 | 2,371 | 2,393 | 466 | 4,531 | 2,086 | 1,657 | 2,371 | 2,393 | 466 | ||||||||||||||||||||||||||||||||||
Greater than or equal to 680 and less than 740 | 22,934 | 3,519 | 2,396 | 8,115 | 2,723 | 786 | 22,934 | 3,519 | 2,396 | 8,115 | 2,723 | 786 | ||||||||||||||||||||||||||||||||||
Greater than or equal to 740 | 128,374 | 6,001 | 2,007 | 32,590 | 3,569 | 1,012 | 128,374 | 6,001 | 2,007 | 32,590 | 3,569 | 1,012 | ||||||||||||||||||||||||||||||||||
Fully-insured loans | 18,545 | 5,196 | — | — | — | — | 18,545 | 5,196 | ||||||||||||||||||||||||||||||||||||||
Total consumer real estate | $ | 176,618 | $ | 19,192 | $ | 8,001 | $ | 44,245 | $ | 10,783 | $ | 2,716 | $ | 176,618 | $ | 19,192 | $ | 8,001 | $ | 44,245 | $ | 10,783 | $ | 2,716 |
(1) | Excludes $928 million of loans accounted for under the fair value option. |
(2) | Excludes PCI loans. |
(3) |
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance. |
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured. |
Credit Card and Other Consumer – Credit Quality Indicators | Credit Card and Other Consumer – Credit Quality Indicators | 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) | December 31, 2017 | December 31, 2017 | ||||||||||||||||||||
Refreshed FICO score | ||||||||||||||||||||||
Less than 620 | $ | 4,730 | $ | 1,630 | $ | 49 | $ | 4,730 | $ | 2,005 | ||||||||||||
Greater than or equal to 620 and less than 680 | 12,422 | 2,000 | 143 | 12,422 | 4,064 | |||||||||||||||||
Greater than or equal to 680 and less than 740 | 35,656 | 11,906 | 398 | 35,656 | 10,371 | |||||||||||||||||
Greater than or equal to 740 | 43,477 | 34,838 | 1,921 | 43,477 | 36,445 | |||||||||||||||||
Other internal credit metrics (1, 2) | — | 43,456 | 167 | 43,457 | $ | 166 | ||||||||||||||||
Total credit card and other consumer | $ | 96,285 | $ | 93,830 | $ | 2,678 | $ | 96,285 | $ | 96,342 | $ | 166 |
(1) | Other internal credit metrics may include delinquency status, geography or other factors. |
(2) | Direct/indirect consumer includes $42.8 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk. |
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) | December 31, 2017 | ||||||||||||||||||
Risk ratings | |||||||||||||||||||
Pass rated | $ | 275,904 | $ | 96,199 | $ | 57,732 | $ | 21,535 | $ | 322 | |||||||||
Reservable criticized | 8,932 | 1,593 | 566 | 581 | 50 | ||||||||||||||
Refreshed FICO score (3) | |||||||||||||||||||
Less than 620 | 223 | ||||||||||||||||||
Greater than or equal to 620 and less than 680 | 625 | ||||||||||||||||||
Greater than or equal to 680 and less than 740 | 1,875 | ||||||||||||||||||
Greater than or equal to 740 | 3,713 | ||||||||||||||||||
Other internal credit metrics (3, 4) | 6,841 | ||||||||||||||||||
Total commercial | $ | 284,836 | $ | 97,792 | $ | 58,298 | $ | 22,116 | $ | 13,649 |
(1) | Excludes $4.8 billion of loans accounted for under the fair value option. |
(2) | U.S. small business commercial includes $709 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. At December 31, 2017, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due. |
(3) | Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio. |
(4) | Other internal credit metrics may include delinquency status, application scores, geography or other factors. |
Bank of America78 |
Impaired Loans – Consumer Real Estate | Impaired Loans – Consumer Real Estate | Impaired Loans – Consumer Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
With no recorded allowance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 6,793 | $ | 5,451 | $ | — | $ | 8,856 | $ | 6,870 | $ | — | $ | 6,016 | $ | 4,783 | $ | — | $ | 8,856 | $ | 6,870 | $ | — | ||||||||||||||||||||||||||||||
Home equity | 3,583 | 1,943 | — | 3,622 | 1,956 | — | 3,345 | 1,828 | — | 3,622 | 1,956 | — | ||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 2,634 | $ | 2,568 | $ | 157 | $ | 2,908 | $ | 2,828 | $ | 174 | $ | 2,271 | $ | 2,215 | $ | 134 | $ | 2,908 | $ | 2,828 | $ | 174 | ||||||||||||||||||||||||||||||
Home equity | 985 | 910 | 181 | 972 | 900 | 174 | 910 | 849 | 165 | 972 | 900 | 174 | ||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage (1) | $ | 9,427 | $ | 8,019 | $ | 157 | $ | 11,764 | $ | 9,698 | $ | 174 | ||||||||||||||||||||||||||||||||||||||||||
Total (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 8,287 | $ | 6,998 | $ | 134 | $ | 11,764 | $ | 9,698 | $ | 174 | ||||||||||||||||||||||||||||||||||||||||||
Home equity | 4,568 | 2,853 | 181 | 4,594 | 2,856 | 174 | 4,255 | 2,677 | 165 | 4,594 | 2,856 | 174 | ||||||||||||||||||||||||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
With no recorded allowance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 6,462 | $ | 65 | $ | 8,456 | $ | 79 | $ | 5,056 | $ | 52 | $ | 7,498 | $ | 77 | $ | 5,685 | $ | 167 | $ | 7,964 | $ | 237 | ||||||||||||||||||||||||||||||
Home equity | 1,961 | 27 | 1,991 | 27 | 1,908 | 27 | 2,000 | 27 | 1,937 | 79 | 2,001 | 82 | ||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 2,705 | $ | 25 | $ | 3,832 | $ | 35 | $ | 2,330 | $ | 22 | $ | 3,254 | $ | 29 | $ | 2,508 | $ | 71 | $ | 3,565 | $ | 97 | ||||||||||||||||||||||||||||||
Home equity | 892 | 6 | 825 | 5 | 864 | 7 | 873 | 6 | 879 | 19 | 850 | 18 | ||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage (1) | $ | 9,167 | $ | 90 | $ | 12,288 | $ | 114 | ||||||||||||||||||||||||||||||||||||||||||||||
Total (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 7,386 | $ | 74 | $ | 10,752 | $ | 106 | $ | 8,193 | $ | 238 | $ | 11,529 | $ | 334 | ||||||||||||||||||||||||||||||||||||||
Home equity | 2,853 | 33 | 2,816 | 32 | 2,772 | 34 | 2,873 | 33 | 2,816 | 98 | 2,851 | 100 |
(1) | During the |
(2) | 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. |
79Bank of America |
Consumer Real Estate – TDRs Entered into During the Three Months Ended March 31, 2018 and 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer Real Estate – TDRs Entered into During the Three and Nine Months Ended September 30, 2018 and 2017 | Consumer Real Estate – TDRs Entered into During the Three and Nine Months Ended September 30, 2018 and 2017 | |||||||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Pre-Modification Interest Rate | Post-Modification Interest Rate (1) | Net Charge-offs (2) | 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) | March 31, 2018 | Three Months Ended March 31, 2018 | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 407 | $ | 358 | 4.39 | % | 4.36 | % | $ | 3 | $ | 226 | $ | 195 | 4.27 | % | 4.12 | % | $ | 747 | $ | 635 | 4.22 | % | 4.03 | % | ||||||||||||||||||
Home equity | 207 | 161 | 4.37 | 4.37 | 6 | 120 | 90 | 4.67 | 4.60 | 482 | 356 | 4.42 | 3.78 | |||||||||||||||||||||||||||||||
Total | $ | 614 | $ | 519 | 4.39 | 4.36 | $ | 9 | $ | 346 | $ | 285 | 4.41 | 4.29 | $ | 1,229 | $ | 991 | 4.30 | 3.94 | ||||||||||||||||||||||||
March 31, 2017 | Three Months Ended March 31, 2017 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 382 | $ | 344 | 4.68 | % | 4.44 | % | $ | 2 | $ | 294 | $ | 263 | 4.42 | % | 4.33 | % | $ | 738 | $ | 657 | 4.49 | % | 4.25 | % | ||||||||||||||||||
Home equity | 248 | 189 | 4.90 | 3.80 | 6 | 212 | 172 | 4.01 | 3.96 | 630 | 491 | 4.16 | 3.52 | |||||||||||||||||||||||||||||||
Total | $ | 630 | $ | 533 | 4.77 | 4.19 | $ | 8 | $ | 506 | $ | 435 | 4.25 | 4.17 | $ | 1,368 | $ | 1,148 | 4.33 | 3.90 |
(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. |
(2) | Net charge-offs, which include amounts recorded on loans modified during the period that are no longer held by the Corporation at |
Consumer Real Estate – Modification Programs | Consumer Real Estate – Modification Programs | Consumer Real Estate – Modification Programs | ||||||||||||||||||||
TDRs Entered into During the | ||||||||||||||||||||||
TDRs Entered into During the Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Modifications under government programs | ||||||||||||||||||||||
Contractual interest rate reduction | $ | 7 | $ | 32 | $ | 5 | $ | 10 | $ | 19 | $ | 56 | ||||||||||
Principal and/or interest forbearance | — | 1 | — | 1 | — | 4 | ||||||||||||||||
Other modifications (1) | 6 | 2 | 7 | 7 | 29 | 22 | ||||||||||||||||
Total modifications under government programs | 13 | 35 | 12 | 18 | 48 | 82 | ||||||||||||||||
Modifications under proprietary programs | ||||||||||||||||||||||
Contractual interest rate reduction | 11 | 14 | 7 | 15 | 159 | 178 | ||||||||||||||||
Capitalization of past due amounts | 14 | 5 | 10 | 12 | 67 | 47 | ||||||||||||||||
Principal and/or interest forbearance | 6 | 3 | 2 | 2 | 25 | 28 | ||||||||||||||||
Other modifications (1) | 169 | 30 | 14 | 1 | 195 | 45 | ||||||||||||||||
Total modifications under proprietary programs | 200 | 52 | 33 | 30 | 446 | 298 | ||||||||||||||||
Trial modifications | 242 | 372 | 201 | 329 | 376 | 605 | ||||||||||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 64 | 74 | 39 | 58 | 121 | 163 | ||||||||||||||||
Total modifications | $ | 519 | $ | 533 | $ | 285 | $ | 435 | $ | 991 | $ | 1,148 |
(1) | Includes other modifications such as term or payment extensions and repayment plans. During the |
(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 March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Modifications under government programs | $ | 13 | $ | 26 | $ | 8 | $ | 16 | $ | 32 | $ | 62 | ||||||||||
Modifications under proprietary programs | 31 | 34 | 43 | 32 | 130 | 99 | ||||||||||||||||
Loans discharged in Chapter 7 bankruptcy (1) | 23 | 62 | 12 | 16 | 51 | 93 | ||||||||||||||||
Trial modifications (2) | 45 | 212 | 18 | 54 | 85 | 312 | ||||||||||||||||
Total modifications | $ | 112 | $ | 334 | $ | 81 | $ | 118 | $ | 298 | $ | 566 |
(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 America80 |
Impaired Loans – Credit Card and Other Consumer | Impaired Loans – Credit Card and Other Consumer | Impaired Loans – Credit Card and Other Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value (1) | Related Allowance | Unpaid Principal Balance | Carrying Value (1) | Related Allowance | Unpaid Principal Balance | Carrying Value (1) | Related Allowance | Unpaid Principal Balance | Carrying Value (1) | Related Allowance | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | $ | 59 | $ | 28 | $ | — | $ | 58 | $ | 28 | $ | — | $ | 63 | $ | 29 | $ | — | $ | 58 | $ | 28 | $ | — | |||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. credit card | $ | 465 | $ | 472 | $ | 128 | $ | 454 | $ | 461 | $ | 125 | $ | 501 | $ | 512 | $ | 143 | $ | 454 | $ | 461 | $ | 125 | |||||||||||||||||||||||||||||||
Direct/Indirect consumer | 1 | 1 | — | 1 | 1 | — | — | — | — | 1 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. credit card | $ | 465 | $ | 472 | $ | 128 | $ | 454 | $ | 461 | $ | 125 | $ | 501 | $ | 512 | $ | 143 | $ | 454 | $ | 461 | $ | 125 | |||||||||||||||||||||||||||||||
Direct/Indirect consumer | 60 | 29 | — | 59 | 29 | — | 63 | 29 | — | 59 | 29 | — | |||||||||||||||||||||||||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | $ | 27 | $ | — | $ | 19 | $ | — | $ | 30 | $ | 1 | $ | 20 | $ | — | $ | 29 | $ | 2 | $ | 19 | $ | — | |||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. credit card | $ | 465 | $ | 6 | $ | 477 | $ | 6 | $ | 498 | $ | 7 | $ | 457 | $ | 6 | $ | 481 | $ | 19 | $ | 466 | $ | 18 | |||||||||||||||||||||||||||||||
Non-U.S. credit card (3) | — | — | 102 | 1 | — | — | — | — | — | — | 62 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | 1 | — | 3 | — | 1 | — | 2 | — | 1 | — | 2 | — | |||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. credit card | $ | 465 | $ | 6 | $ | 477 | $ | 6 | $ | 498 | $ | 7 | $ | 457 | $ | 6 | $ | 481 | $ | 19 | $ | 466 | $ | 18 | |||||||||||||||||||||||||||||||
Non-U.S. credit card (3) | — | — | 102 | 1 | — | — | — | — | — | — | 62 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | 28 | — | 22 | — | 31 | 1 | 22 | — | 30 | 2 | 21 | — |
(1) | Includes accrued interest and fees. |
(2) | 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. |
(3) | In the second quarter of 2017, the Corporation sold its non-U.S. consumer credit card business. |
Credit Card and Other Consumer – TDRs by Program Type | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. Credit Card | Direct/Indirect Consumer | Total TDRs by Program Type | U.S. Credit Card | Direct/Indirect Consumer | Total TDRs by Program Type | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | September 30 2018 | December 31 2017 | ||||||||||||||||||||||||||||||||||
Internal programs | $ | 212 | $ | 203 | $ | 1 | $ | 1 | $ | 213 | $ | 204 | $ | 242 | $ | 203 | $ | — | $ | 1 | $ | 242 | $ | 204 | ||||||||||||||||||||||
External programs | 259 | 257 | — | — | 259 | 257 | 269 | 257 | — | — | 269 | 257 | ||||||||||||||||||||||||||||||||||
Other | 1 | 1 | 28 | 28 | 29 | 29 | 1 | 1 | 29 | 28 | 30 | 29 | ||||||||||||||||||||||||||||||||||
Total | $ | 472 | $ | 461 | $ | 29 | $ | 29 | $ | 501 | $ | 490 | $ | 512 | $ | 461 | $ | 29 | $ | 29 | $ | 541 | $ | 490 | ||||||||||||||||||||||
Percent of balances current or less than 30 days past due | 86.27 | % | 86.92 | % | 90.66 | % | 88.16 | % | 86.50 | % | 87.00 | % | 86 | % | 87 | % | 90 | % | 88 | % | 86 | % | 87 | % |
81Bank of America |
Credit Card and Other Consumer – TDRs Entered into During the Three Months Ended March 31, 2018 and 2017 | ||||||||||||||||||||||||||||||||||||||||
Credit Card and Other Consumer – TDRs Entered into During the Three and Nine Months Ended September 30, 2018 and 2017 | Credit Card and Other Consumer – TDRs Entered into During the Three and Nine Months Ended September 30, 2018 and 2017 | |||||||||||||||||||||||||||||||||||||||
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 | Unpaid Principal Balance | Carrying Value (1) | Pre-Modification Interest Rate | Post-Modification Interest Rate | |||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||
U.S. credit card | $ | 74 | $ | 80 | 18.83 | % | 5.20 | % | $ | 84 | $ | 91 | 19.45 | % | 5.19 | % | $ | 212 | $ | 224 | 19.30 | % | 5.24 | % | ||||||||||||||||
Direct/Indirect consumer | 17 | 10 | 4.98 | 4.67 | 18 | 10 | 4.61 | 4.50 | 33 | 19 | 4.77 | 4.58 | ||||||||||||||||||||||||||||
Total (2) | $ | 91 | $ | 90 | 17.24 | 5.14 | $ | 102 | $ | 101 | 17.94 | 5.12 | $ | 245 | $ | 243 | 18.16 | 5.19 | ||||||||||||||||||||||
March 31, 2017 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||||||
U.S. credit card | $ | 52 | $ | 55 | 18.01 | % | 5.30 | % | $ | 60 | $ | 64 | 17.96 | % | 5.40 | % | $ | 152 | $ | 161 | 17.88 | % | 5.49 | % | ||||||||||||||||
Non-U.S. credit card (3) | 34 | 40 | 23.89 | 0.34 | ||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | 10 | 6 | 4.08 | 4.04 | 22 | 14 | 4.92 | 4.53 | 29 | 18 | 4.99 | 4.37 | ||||||||||||||||||||||||||||
Total (2) | $ | 96 | $ | 101 | 19.51 | 3.28 | $ | 82 | $ | 78 | 15.64 | 5.25 | $ | 181 | $ | 179 | 16.57 | 5.37 |
(1) | Includes accrued interest and fees. |
(2) | Net charge-offs were $ |
Bank of America82 |
Impaired Loans – Commercial | Impaired Loans – Commercial | Impaired Loans – Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
With no recorded allowance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | $ | 814 | $ | 772 | $ | — | $ | 576 | $ | 571 | $ | — | $ | 697 | $ | 684 | $ | — | $ | 576 | $ | 571 | $ | — | ||||||||||||||||||||||||||||||
Non-U.S. commercial | 113 | 113 | — | 14 | 11 | — | 10 | 10 | — | 14 | 11 | — | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 62 | 58 | — | 83 | 80 | — | 42 | 32 | — | 83 | 80 | — | ||||||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 11 | 11 | — | — | — | — | 2 | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | $ | 1,448 | $ | 1,206 | $ | 137 | $ | 1,393 | $ | 1,109 | $ | 98 | $ | 1,334 | $ | 1,073 | $ | 115 | $ | 1,393 | $ | 1,109 | $ | 98 | ||||||||||||||||||||||||||||||
Non-U.S. commercial | 394 | 362 | 72 | 528 | 507 | 58 | 233 | 225 | 19 | 528 | 507 | 58 | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 102 | 18 | 2 | 133 | 41 | 4 | 104 | 20 | 2 | 133 | 41 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 15 | 4 | — | 20 | 18 | 3 | 72 | 72 | — | 20 | 18 | 3 | ||||||||||||||||||||||||||||||||||||||||||
U.S. small business commercial (1) | 87 | 74 | 29 | 84 | 70 | 27 | U.S. small business commercial (1) | 90 | 76 | 29 | 84 | 70 | 27 | |||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | $ | 2,262 | $ | 1,978 | $ | 137 | $ | 1,969 | $ | 1,680 | $ | 98 | $ | 2,031 | $ | 1,757 | $ | 115 | $ | 1,969 | $ | 1,680 | $ | 98 | ||||||||||||||||||||||||||||||
Non-U.S. commercial | 507 | 475 | 72 | 542 | 518 | 58 | 243 | 235 | 19 | 542 | 518 | 58 | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 164 | 76 | 2 | 216 | 121 | 4 | 146 | 52 | 2 | 216 | 121 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 26 | 15 | — | 20 | 18 | 3 | 74 | 74 | — | 20 | 18 | 3 | ||||||||||||||||||||||||||||||||||||||||||
U.S. small business commercial (1) | 87 | 74 | 29 | 84 | 70 | 27 | U.S. small business commercial (1) | 90 | 76 | 29 | 84 | 70 | 27 | |||||||||||||||||||||||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
With no recorded allowance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | $ | 672 | $ | 4 | $ | 882 | $ | 3 | $ | 640 | $ | 4 | $ | 726 | $ | 3 | $ | 659 | $ | 12 | $ | 822 | $ | 9 | ||||||||||||||||||||||||||||||
Non-U.S. commercial | 62 | 2 | 108 | — | 9 | — | 14 | — | 35 | 2 | 55 | — | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 69 | — | 60 | — | 68 | — | 77 | 1 | 72 | 1 | 61 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 6 | — | — | — | 3 | — | — | — | 4 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | $ | 1,105 | $ | 11 | $ | 1,487 | $ | 9 | $ | 1,159 | $ | 11 | $ | 1,166 | $ | 9 | $ | 1,168 | $ | 32 | $ | 1,305 | $ | 25 | ||||||||||||||||||||||||||||||
Non-U.S. commercial | 445 | 2 | 453 | 3 | 287 | 3 | 463 | 3 | 381 | 9 | 466 | 9 | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 36 | — | 76 | 1 | 10 | — | 72 | — | 19 | — | 85 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 11 | — | 3 | — | 58 | 1 | 10 | — | 32 | 1 | 6 | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. small business commercial (1) | 75 | — | 74 | — | 74 | — | 72 | — | 74 | — | 74 | — | ||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial | $ | 1,777 | $ | 15 | $ | 2,369 | $ | 12 | $ | 1,799 | $ | 15 | $ | 1,892 | $ | 12 | $ | 1,827 | $ | 44 | $ | 2,127 | $ | 34 | ||||||||||||||||||||||||||||||
Non-U.S. commercial | 507 | 4 | 561 | 3 | 296 | 3 | 477 | 3 | 416 | 11 | 521 | 9 | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 105 | — | 136 | 1 | 78 | — | 149 | 1 | 91 | 1 | 146 | 3 | ||||||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 17 | — | 3 | — | 61 | 1 | 10 | — | 36 | 1 | 6 | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. small business commercial (1) | 75 | — | 74 | — | 74 | — | 72 | — | 74 | — | 74 | — |
(1) | Includes U.S. small business commercial renegotiated TDR loans and related allowance. |
(2) | 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. |
Commercial – TDRs Entered into During the Three Months Ended March 31, 2018 and 2017 | ||||||||||||||||||||||
Commercial – TDRs Entered into During the Three and Nine Months Ended September 30, 2018 and 2017 | Commercial – TDRs Entered into During the Three and Nine Months Ended September 30, 2018 and 2017 | |||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Unpaid Principal Balance | Carrying Value | Unpaid Principal Balance | Carrying Value | |||||||||||||||||
(Dollars in millions) | March 31, 2018 | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
U.S. commercial | $ | 618 | $ | 550 | $ | 595 | $ | 544 | $ | 1,111 | $ | 1,006 | ||||||||||
Non-U.S. commercial | 331 | 331 | 11 | 9 | 4 | 4 | ||||||||||||||||
Commercial real estate | — | — | 71 | 71 | ||||||||||||||||||
Commercial lease financing | 2 | 1 | 29 | 29 | 92 | 91 | ||||||||||||||||
U.S. small business commercial (1) | 3 | 3 | 3 | 2 | 8 | 6 | ||||||||||||||||
Total (2) | $ | 954 | $ | 885 | $ | 638 | $ | 584 | $ | 1,286 | $ | 1,178 | ||||||||||
March 31, 2017 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||
U.S. commercial | $ | 468 | $ | 440 | $ | 357 | $ | 322 | $ | 763 | $ | 700 | ||||||||||
Non-U.S. commercial | 105 | 105 | 105 | 105 | ||||||||||||||||||
Commercial real estate | 15 | 9 | — | — | 16 | 9 | ||||||||||||||||
Commercial lease financing | 12 | 12 | 12 | 12 | ||||||||||||||||||
U.S. small business commercial (1) | 2 | 2 | 3 | 3 | 11 | 12 | ||||||||||||||||
Total (2) | $ | 485 | $ | 451 | $ | 477 | $ | 442 | $ | 907 | $ | 838 |
(1) | U.S. small business commercial TDRs are comprised of renegotiated small business card loans. |
(2) | Net charge-offs were $ |
Rollforward of Accretable Yield | Rollforward of Accretable Yield | ||||||||||
(Dollars in millions) | Three Months Ended March 31, 2018 | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||
Accretable yield, January 1, 2018 | $ | 2,789 | |||||||||
Accretable yield, beginning of period | $ | 2,558 | $ | 2,789 | |||||||
Accretion | (130 | ) | (117 | ) | (371 | ) | |||||
Disposals/transfers | (107 | ) | (612 | ) | (824 | ) | |||||
Reclassifications from nonaccretable difference | 178 | 56 | 291 | ||||||||
Accretable yield, March 31, 2018 | $ | 2,730 | |||||||||
Accretable yield, September 30, 2018 | $ | 1,885 | $ | 1,885 |
Bank of America |
Consumer Real Estate (1) | Credit Card and Other Consumer | Commercial | Total Allowance | Consumer Real Estate (1) | Credit Card and Other Consumer | Commercial | Total Allowance | |||||||||||||||||||||||
(Dollars in millions) | Three Months Ended March 31, 2018 | Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
Allowance for loan and lease losses, July 1 | $ | 1,366 | $ | 3,774 | $ | 4,910 | $ | 10,050 | ||||||||||||||||||||||
Loans and leases charged off | (155 | ) | (992 | ) | (189 | ) | (1,336 | ) | ||||||||||||||||||||||
Recoveries of loans and leases previously charged off | 163 | 208 | 33 | 404 | ||||||||||||||||||||||||||
Net charge-offs | 8 | (784 | ) | (156 | ) | (932 | ) | |||||||||||||||||||||||
Write-offs of PCI loans (2) | (95 | ) | — | — | (95 | ) | ||||||||||||||||||||||||
Provision for loan and lease losses (3) | (119 | ) | 829 | 1 | 711 | |||||||||||||||||||||||||
Other (4) | (2 | ) | 3 | (1 | ) | — | ||||||||||||||||||||||||
Allowance for loan and lease losses, September 30 | 1,158 | 3,822 | 4,754 | 9,734 | ||||||||||||||||||||||||||
Reserve for unfunded lending commitments, July 1 | — | — | 787 | 787 | ||||||||||||||||||||||||||
Provision for unfunded lending commitments | — | — | 5 | 5 | ||||||||||||||||||||||||||
Reserve for unfunded lending commitments, September 30 | — | — | 792 | 792 | ||||||||||||||||||||||||||
Allowance for credit losses, September 30 | $ | 1,158 | $ | 3,822 | $ | 5,546 | $ | 10,526 | ||||||||||||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses, July 1 | $ | 2,309 | $ | 3,386 | $ | 5,180 | $ | 10,875 | ||||||||||||||||||||||
Loans and leases charged off | (231 | ) | (919 | ) | (212 | ) | (1,362 | ) | ||||||||||||||||||||||
Recoveries of loans and leases previously charged off | 230 | 189 | 43 | 462 | ||||||||||||||||||||||||||
Net charge-offs | (1 | ) | (730 | ) | (169 | ) | (900 | ) | ||||||||||||||||||||||
Write-offs of PCI loans (2) | (73 | ) | — | — | (73 | ) | ||||||||||||||||||||||||
Provision for loan and lease losses (3) | (204 | ) | 934 | 99 | 829 | |||||||||||||||||||||||||
Other (4) | 1 | (40 | ) | 1 | (38 | ) | ||||||||||||||||||||||||
Allowance for loan and lease losses, September 30 | 2,032 | 3,550 | 5,111 | 10,693 | ||||||||||||||||||||||||||
Reserve for unfunded lending commitments, July 1 | — | — | 757 | 757 | ||||||||||||||||||||||||||
Provision for unfunded lending commitments | — | — | 5 | 5 | ||||||||||||||||||||||||||
Reserve for unfunded lending commitments, September 30 | — | — | 762 | 762 | ||||||||||||||||||||||||||
Allowance for credit losses, September 30 | $ | 2,032 | $ | 3,550 | $ | 5,873 | $ | 11,455 | ||||||||||||||||||||||
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses, January 1 | $ | 1,720 | $ | 3,663 | $ | 5,010 | $ | 10,393 | $ | 1,720 | $ | 3,663 | $ | 5,010 | $ | 10,393 | ||||||||||||||
Loans and leases charged off | (174 | ) | (1,006 | ) | (116 | ) | (1,296 | ) | (466 | ) | (3,031 | ) | (513 | ) | (4,010 | ) | ||||||||||||||
Recoveries of loans and leases previously charged off | 147 | 203 | 35 | 385 | 440 | 621 | 110 | 1,171 | ||||||||||||||||||||||
Net charge-offs | (27 | ) | (803 | ) | (81 | ) | (911 | ) | (26 | ) | (2,410 | ) | (403 | ) | (2,839 | ) | ||||||||||||||
Write-offs of PCI loans (2) | (35 | ) | — | — | (35 | ) | (166 | ) | — | — | (166 | ) | ||||||||||||||||||
Provision for loan and lease losses (3) | (128 | ) | 876 | 81 | 829 | (368 | ) | 2,583 | 147 | 2,362 | ||||||||||||||||||||
Other (4) | — | (16 | ) | — | (16 | ) | (2 | ) | (14 | ) | — | (16 | ) | |||||||||||||||||
Allowance for loan and lease losses, March 31 | 1,530 | 3,720 | 5,010 | 10,260 | ||||||||||||||||||||||||||
Allowance for loan and lease losses, September 30 | 1,158 | 3,822 | 4,754 | 9,734 | ||||||||||||||||||||||||||
Reserve for unfunded lending commitments, January 1 | — | — | 777 | 777 | — | — | 777 | 777 | ||||||||||||||||||||||
Provision for unfunded lending commitments | — | — | 5 | 5 | — | — | 15 | 15 | ||||||||||||||||||||||
Reserve for unfunded lending commitments, March 31 | — | — | 782 | 782 | ||||||||||||||||||||||||||
Allowance for credit losses, March 31 | $ | 1,530 | $ | 3,720 | $ | 5,792 | $ | 11,042 | ||||||||||||||||||||||
Reserve for unfunded lending commitments, September 30 | — | — | 792 | 792 | ||||||||||||||||||||||||||
Allowance for credit losses, September 30 | $ | 1,158 | $ | 3,822 | $ | 5,546 | $ | 10,526 | ||||||||||||||||||||||
Three Months Ended March 31, 2017 | Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||
Allowance for loan and lease losses, January 1 (5) | $ | 2,750 | $ | 3,229 | $ | 5,258 | $ | 11,237 | ||||||||||||||||||||||
Allowance for loan and lease losses, January 1 | $ | 2,750 | $ | 3,229 | $ | 5,258 | $ | 11,237 | ||||||||||||||||||||||
Loans and leases charged off | (204 | ) | (946 | ) | (160 | ) | (1,310 | ) | (633 | ) | (2,819 | ) | (570 | ) | (4,022 | ) | ||||||||||||||
Recoveries of loans and leases previously charged off | 123 | 200 | 53 | 376 | 520 | 623 | 137 | 1,280 | ||||||||||||||||||||||
Net charge-offs (6) | (81 | ) | (746 | ) | (107 | ) | (934 | ) | ||||||||||||||||||||||
Net charge-offs | (113 | ) | (2,196 | ) | (433 | ) | (2,742 | ) | ||||||||||||||||||||||
Write-offs of PCI loans (2) | (33 | ) | — | — | (33 | ) | (161 | ) | — | — | (161 | ) | ||||||||||||||||||
Provision for loan and lease losses (3) | (71 | ) | 843 | 68 | 840 | (445 | ) | 2,553 | 287 | 2,395 | ||||||||||||||||||||
Other (4) | — | 3 | (1 | ) | 2 | 1 | (36 | ) | (1 | ) | (36 | ) | ||||||||||||||||||
Allowance for loan and lease losses, March 31 (5) | 2,565 | 3,329 | 5,218 | 11,112 | ||||||||||||||||||||||||||
Reserve for unfunded lending commitments, January 1 | — | — | 762 | 762 | ||||||||||||||||||||||||||
Provision for unfunded lending commitments | — | — | (5 | ) | (5 | ) | ||||||||||||||||||||||||
Reserve for unfunded lending commitments, March 31 | — | — | 757 | 757 | ||||||||||||||||||||||||||
Allowance for credit losses, March 31 (5) | $ | 2,565 | $ | 3,329 | $ | 5,975 | $ | 11,869 | ||||||||||||||||||||||
Allowance for loan and lease losses, September 30 | 2,032 | 3,550 | 5,111 | 10,693 | ||||||||||||||||||||||||||
Reserve for unfunded lending commitments, January 1 and September 30 | — | — | 762 | 762 | ||||||||||||||||||||||||||
Allowance for credit losses, September 30 | $ | 2,032 | $ | 3,550 | $ | 5,873 | $ | 11,455 |
(1) | Includes valuation allowance associated with the PCI loan portfolio. |
(2) | Includes write-offs associated with the sale of PCI loans of $ |
(3) | Includes provision |
(4) | Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held for sale and certain other reclassifications. |
Allowance and Carrying Value by Portfolio Segment | Allowance and Carrying Value by Portfolio Segment | Allowance and Carrying Value by Portfolio Segment | ||||||||||||||||||||||||||||
Consumer Real Estate | Credit Card and Other Consumer | Commercial | Total | Consumer Real Estate | Credit Card and Other Consumer | Commercial | Total | |||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||
Impaired loans and troubled debt restructurings (1) | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses | $ | 338 | $ | 128 | $ | 240 | $ | 706 | $ | 299 | $ | 143 | $ | 165 | $ | 607 | ||||||||||||||
Carrying value (2) | 10,872 | 501 | 2,618 | 13,991 | 9,675 | 541 | 2,194 | 12,410 | ||||||||||||||||||||||
Allowance as a percentage of carrying value | 3.11 | % | 25.55 | % | 9.17 | % | 5.05 | % | 3.09 | % | 26.43 | % | 7.52 | % | 4.89 | % | ||||||||||||||
Loans collectively evaluated for impairment | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses | $ | 950 | $ | 3,592 | $ | 4,770 | $ | 9,312 | $ | 709 | $ | 3,679 | $ | 4,589 | $ | 8,977 | ||||||||||||||
Carrying value (2, 3) | 238,413 | 186,586 | 478,964 | 903,963 | 242,594 | 185,829 | 476,085 | 904,508 | ||||||||||||||||||||||
Allowance as a percentage of carrying value (3) | 0.40 | % | 1.93 | % | 1.00 | % | 1.03 | % | 0.29 | % | 1.98 | % | 0.96 | % | 0.99 | % | ||||||||||||||
Purchased credit-impaired loans | ||||||||||||||||||||||||||||||
Valuation allowance | $ | 242 | n/a | n/a | $ | 242 | $ | 150 | n/a | n/a | $ | 150 | ||||||||||||||||||
Carrying value gross of valuation allowance | 10,135 | n/a | n/a | 10,135 | 7,152 | n/a | n/a | 7,152 | ||||||||||||||||||||||
Valuation allowance as a percentage of carrying value | 2.39 | % | n/a | n/a | 2.39 | % | 2.10 | % | n/a | n/a | 2.10 | % | ||||||||||||||||||
Total | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses | $ | 1,530 | $ | 3,720 | $ | 5,010 | $ | 10,260 | $ | 1,158 | $ | 3,822 | $ | 4,754 | $ | 9,734 | ||||||||||||||
Carrying value (2, 3) | 259,420 | 187,087 | 481,582 | 928,089 | 259,421 | 186,370 | 478,279 | 924,070 | ||||||||||||||||||||||
Allowance as a percentage of carrying value (3) | 0.59 | % | 1.99 | % | 1.04 | % | 1.11 | % | 0.45 | % | 2.05 | % | 0.99 | % | 1.05 | % | ||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||
Impaired loans and troubled debt restructurings (1) | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses | $ | 348 | $ | 125 | $ | 190 | $ | 663 | $ | 348 | $ | 125 | $ | 190 | $ | 663 | ||||||||||||||
Carrying value (2) | 12,554 | 490 | 2,407 | 15,451 | 12,554 | 490 | 2,407 | 15,451 | ||||||||||||||||||||||
Allowance as a percentage of carrying value | 2.77 | % | 25.51 | % | 7.89 | % | 4.29 | % | 2.77 | % | 25.51 | % | 7.89 | % | 4.29 | % | ||||||||||||||
Loans collectively evaluated for impairment | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses | $ | 1,083 | $ | 3,538 | $ | 4,820 | $ | 9,441 | $ | 1,083 | $ | 3,538 | $ | 4,820 | $ | 9,441 | ||||||||||||||
Carrying value (2, 3) | 238,284 | 192,303 | 474,284 | 904,871 | 238,284 | 192,303 | 474,284 | 904,871 | ||||||||||||||||||||||
Allowance as a percentage of carrying value (3) | 0.45 | % | 1.84 | % | 1.02 | % | 1.04 | % | 0.45 | % | 1.84 | % | 1.02 | % | 1.04 | % | ||||||||||||||
Purchased credit-impaired loans | ||||||||||||||||||||||||||||||
Valuation allowance | $ | 289 | n/a | n/a | $ | 289 | $ | 289 | n/a | n/a | $ | 289 | ||||||||||||||||||
Carrying value gross of valuation allowance | 10,717 | n/a | n/a | 10,717 | 10,717 | n/a | n/a | 10,717 | ||||||||||||||||||||||
Valuation allowance as a percentage of carrying value | 2.70 | % | n/a | n/a | 2.70 | % | 2.70 | % | n/a | n/a | 2.70 | % | ||||||||||||||||||
Total | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses | $ | 1,720 | $ | 3,663 | $ | 5,010 | $ | 10,393 | $ | 1,720 | $ | 3,663 | $ | 5,010 | $ | 10,393 | ||||||||||||||
Carrying value (2, 3) | 261,555 | 192,793 | 476,691 | 931,039 | 261,555 | 192,793 | 476,691 | 931,039 | ||||||||||||||||||||||
Allowance as a percentage of carrying value (3) | 0.66 | % | 1.90 | % | 1.05 | % | 1.12 | % | 0.66 | % | 1.90 | % | 1.05 | % | 1.12 | % |
(1) | Impaired loans include nonperforming commercial loans and 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 $ |
Bank of America |
First-lien Mortgage Securitizations | First-lien Mortgage Securitizations | First-lien Mortgage Securitizations | ||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage - Agency | Commercial Mortgage | Residential Mortgage - Agency | Commercial Mortgage | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||
Cash proceeds from new securitizations (1) | $ | 1,686 | $ | 4,656 | $ | 512 | $ | 609 | $ | 1,596 | $ | 3,833 | $ | 4,661 | $ | 11,791 | $ | 1,797 | $ | 1,225 | $ | 3,981 | $ | 2,931 | ||||||||||||||||||||||
Gains on securitizations (2) | 18 | 39 | 18 | 18 | 13 | 40 | 54 | 140 | 29 | 14 | 68 | 67 | ||||||||||||||||||||||||||||||||||
Repurchases from securitization trusts (3) | 501 | 872 | — | — | 357 | 609 | 1,215 | 2,083 | — | — | — | — |
(1) | The Corporation transfers residential mortgage loans to securitizations sponsored by the GSEs or Government National Mortgage Association (GNMA) in the normal course of business and receives RMBS in exchange which may then be sold into the market to third-party investors for cash proceeds. |
(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 $ |
(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 | First-lien Mortgage VIEs | First-lien Mortgage VIEs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage | Residential Mortgage | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency | Non-agency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | Prime | Subprime | Alt-A | Commercial Mortgage | Agency | Prime | Subprime | Alt-A | Commercial Mortgage | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated VIEs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum loss exposure (1) | $ | 18,120 | $ | 19,110 | $ | 652 | $ | 689 | $ | 2,659 | $ | 2,643 | $ | 419 | $ | 403 | $ | 565 | $ | 585 | $ | 16,461 | $ | 19,110 | $ | 458 | $ | 689 | $ | 2,063 | $ | 2,643 | $ | 218 | $ | 403 | $ | 659 | $ | 585 | ||||||||||||||||||||||||||||
On-balance sheet assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading account assets | $ | 658 | $ | 716 | $ | 7 | $ | 6 | $ | 15 | $ | 10 | $ | 74 | $ | 50 | $ | 77 | $ | 108 | $ | 509 | $ | 716 | $ | 21 | $ | 6 | $ | 47 | $ | 10 | $ | 71 | $ | 50 | $ | 57 | $ | 108 | ||||||||||||||||||||||||||||
Debt securities carried at fair value | 14,214 | 15,036 | 447 | 477 | 2,204 | 2,221 | 343 | 351 | — | — | 10,232 | 15,036 | 262 | 477 | 1,592 | 2,221 | 145 | 351 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity securities | 3,248 | 3,348 | — | — | — | — | — | — | 298 | 274 | 5,720 | 3,348 | — | — | — | — | — | — | 419 | 274 | ||||||||||||||||||||||||||||||||||||||||||||||||
Subordinate securities | — | — | 6 | 5 | 64 | 38 | 2 | 2 | 64 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residual interests | — | — | — | — | — | — | — | — | 24 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All other assets (2) | — | 10 | — | — | — | — | — | — | — | — | — | 10 | 3 | 5 | 66 | 38 | 2 | 2 | 44 | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total retained positions | $ | 18,120 | $ | 19,110 | $ | 460 | $ | 488 | $ | 2,283 | $ | 2,269 | $ | 419 | $ | 403 | $ | 463 | $ | 470 | $ | 16,461 | $ | 19,110 | $ | 286 | $ | 488 | $ | 1,705 | $ | 2,269 | $ | 218 | $ | 403 | $ | 520 | $ | 470 | ||||||||||||||||||||||||||||
Principal balance outstanding (3) | $ | 216,493 | $ | 232,761 | $ | 10,305 | $ | 10,549 | $ | 10,118 | $ | 10,254 | $ | 26,865 | $ | 28,129 | $ | 26,092 | $ | 26,504 | $ | 195,110 | $ | 232,761 | $ | 9,448 | $ | 10,549 | $ | 9,156 | $ | 10,254 | $ | 24,439 | $ | 28,129 | $ | 31,251 | $ | 26,504 | ||||||||||||||||||||||||||||
Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum loss exposure (1) | $ | 13,872 | $ | 14,502 | $ | 662 | $ | 571 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 13,206 | $ | 14,502 | $ | 551 | $ | 571 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
On-balance sheet assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading account assets | $ | 203 | $ | 232 | $ | 683 | $ | 571 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 733 | $ | 232 | $ | 704 | $ | 571 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
Loans and leases, net | 13,476 | 14,030 | — | — | — | — | — | — | — | — | 12,312 | 14,030 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
All other assets | 194 | 240 | — | — | — | — | — | — | — | — | 162 | 240 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 13,873 | $ | 14,502 | $ | 683 | $ | 571 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 13,207 | $ | 14,502 | $ | 704 | $ | 571 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
On-balance sheet liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | 1 | $ | — | $ | 21 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
All other liabilities | 3 | 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 4 | $ | 3 | $ | 21 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3 | $ | 3 | $ | 153 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
(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 more information, see Note 10 – Commitments and Contingencies and Note 14 – Fair Value Measurements. |
(2) | Not included in the table above are all other assets of $ |
(3) | 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. |
Home Equity Loan, Credit Card and Other Asset-backed VIEs | Home Equity Loan, Credit Card and Other Asset-backed VIEs | Home Equity Loan, Credit Card and Other Asset-backed VIEs | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity Loan (1) | Credit Card (2, 3) | Resecuritization Trusts | Municipal Bond Trusts | Home Equity (1) | Credit Card (2, 3) | Resecuritization Trusts | Municipal Bond Trusts | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | March 31 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | Sept 30 2018 | December 31 2017 | ||||||||||||||||||||||||||||||||||||||
Unconsolidated VIEs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum loss exposure | $ | 1,350 | $ | 1,522 | $ | — | $ | — | $ | 8,680 | $ | 8,204 | $ | 1,614 | $ | 1,631 | $ | 1,101 | $ | 1,522 | $ | — | $ | — | $ | 8,185 | $ | 8,204 | $ | 1,837 | $ | 1,631 | ||||||||||||||||||||||
On-balance sheet assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior securities (4): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading account assets | $ | — | $ | — | $ | — | $ | — | $ | 1,660 | $ | 869 | $ | — | $ | 33 | $ | — | $ | — | $ | — | $ | — | $ | 1,757 | $ | 869 | $ | 22 | $ | 33 | ||||||||||||||||||||||
Debt securities carried at fair value | 32 | 36 | — | — | 1,557 | 1,661 | — | — | 29 | 36 | — | — | 1,380 | 1,661 | — | — | ||||||||||||||||||||||||||||||||||||||
Held-to-maturity securities | — | — | — | — | 5,463 | 5,644 | — | — | — | — | — | — | 5,048 | 5,644 | — | — | ||||||||||||||||||||||||||||||||||||||
Subordinate securities (4) | — | — | — | — | — | 30 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
All other assets (4) | — | — | — | — | — | 30 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total retained positions | $ | 32 | $ | 36 | $ | — | $ | — | $ | 8,680 | $ | 8,204 | $ | — | $ | 33 | $ | 29 | $ | 36 | $ | — | $ | — | $ | 8,185 | $ | 8,204 | $ | 22 | $ | 33 | ||||||||||||||||||||||
Total assets of VIEs (5) | $ | 2,238 | $ | 2,432 | $ | — | $ | — | $ | 19,073 | $ | 19,281 | $ | 2,249 | $ | 2,287 | $ | 1,944 | $ | 2,432 | $ | — | $ | — | $ | 18,469 | $ | 19,281 | $ | 2,560 | $ | 2,287 | ||||||||||||||||||||||
Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum loss exposure | $ | 104 | $ | 112 | $ | 20,873 | $ | 24,337 | $ | 457 | $ | 628 | $ | 1,436 | $ | 1,453 | $ | 91 | $ | 112 | $ | 18,600 | $ | 24,337 | $ | 109 | $ | 628 | $ | 1,726 | $ | 1,453 | ||||||||||||||||||||||
On-balance sheet assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading account assets | $ | — | $ | — | $ | — | $ | — | $ | 1,053 | $ | 1,557 | $ | 1,447 | $ | 1,452 | $ | — | $ | — | $ | — | $ | — | $ | 376 | $ | 1,557 | $ | 1,740 | $ | 1,452 | ||||||||||||||||||||||
Loans and leases | 165 | 177 | 30,764 | 32,554 | — | — | — | — | 143 | 177 | 29,726 | 32,554 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (9 | ) | (9 | ) | (968 | ) | (988 | ) | — | — | — | — | (6 | ) | (9 | ) | (907 | ) | (988 | ) | — | — | — | — | ||||||||||||||||||||||||||||||
All other assets | 6 | 6 | 137 | 1,385 | — | — | 1 | 1 | 4 | 6 | 128 | 1,385 | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 162 | $ | 174 | $ | 29,933 | $ | 32,951 | $ | 1,053 | $ | 1,557 | $ | 1,448 | $ | 1,453 | $ | 141 | $ | 174 | $ | 28,947 | $ | 32,951 | $ | 376 | $ | 1,557 | $ | 1,741 | $ | 1,453 | ||||||||||||||||||||||
On-balance sheet liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 286 | $ | 312 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 905 | $ | 312 | ||||||||||||||||||||||
Long-term debt | 70 | 76 | 9,043 | 8,598 | 596 | 929 | 12 | — | 59 | 76 | 10,320 | 8,598 | 267 | 929 | 12 | — | ||||||||||||||||||||||||||||||||||||||
All other liabilities | — | — | 17 | 16 | — | — | — | — | — | — | 27 | 16 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 70 | $ | 76 | $ | 9,060 | $ | 8,614 | $ | 596 | $ | 929 | $ | 298 | $ | 312 | $ | 59 | $ | 76 | $ | 10,347 | $ | 8,614 | $ | 267 | $ | 929 | $ | 917 | $ | 312 |
(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 more information, see Note 10 – Commitments and Contingencies. |
(2) | At |
(3) | At |
(4) | All other assets includes subordinate securities. The retained senior and subordinate securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy). |
(5) | Total assets |
Bank of America |
Other VIEs | Other VIEs | Other VIEs | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||
Maximum loss exposure | $ | 4,606 | $ | 20,998 | $ | 25,604 | $ | 4,660 | $ | 19,785 | $ | 24,445 | $ | 4,407 | $ | 21,188 | $ | 25,595 | $ | 4,660 | $ | 19,785 | $ | 24,445 | ||||||||||||||||||||||
On-balance sheet assets | ||||||||||||||||||||||||||||||||||||||||||||||
Trading account assets | $ | 2,679 | $ | 376 | $ | 3,055 | $ | 2,709 | $ | 346 | $ | 3,055 | $ | 2,592 | $ | 331 | $ | 2,923 | $ | 2,709 | $ | 346 | $ | 3,055 | ||||||||||||||||||||||
Debt securities carried at fair value | — | 130 | 130 | — | 160 | 160 | — | 20 | 20 | — | 160 | 160 | ||||||||||||||||||||||||||||||||||
Loans and leases | 2,180 | 4,255 | 6,435 | 2,152 | 3,596 | 5,748 | 1,977 | 4,155 | 6,132 | 2,152 | 3,596 | 5,748 | ||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (2 | ) | (32 | ) | (34 | ) | (3 | ) | (32 | ) | (35 | ) | (2 | ) | (29 | ) | (31 | ) | (3 | ) | (32 | ) | (35 | ) | ||||||||||||||||||||||
Loans held-for-sale | 13 | 1,258 | 1,271 | 27 | 940 | 967 | ||||||||||||||||||||||||||||||||||||||||
All other assets | 61 | 14,379 | 14,440 | 62 | 14,276 | 14,338 | 62 | 15,300 | 15,362 | 89 | 15,216 | 15,305 | ||||||||||||||||||||||||||||||||||
Total | $ | 4,931 | $ | 20,366 | $ | 25,297 | $ | 4,947 | $ | 19,286 | $ | 24,233 | $ | 4,629 | $ | 19,777 | $ | 24,406 | $ | 4,947 | $ | 19,286 | $ | 24,233 | ||||||||||||||||||||||
On-balance sheet liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt (1) | $ | 308 | $ | — | $ | 308 | $ | 270 | $ | — | $ | 270 | ||||||||||||||||||||||||||||||||||
Long-term debt | $ | 213 | $ | — | $ | 213 | $ | 270 | $ | — | $ | 270 | ||||||||||||||||||||||||||||||||||
All other liabilities | 18 | 3,508 | 3,526 | 18 | 3,417 | 3,435 | 10 | 4,067 | 4,077 | 18 | 3,417 | 3,435 | ||||||||||||||||||||||||||||||||||
Total | $ | 326 | $ | 3,508 | $ | 3,834 | $ | 288 | $ | 3,417 | $ | 3,705 | $ | 223 | $ | 4,067 | $ | 4,290 | $ | 288 | $ | 3,417 | $ | 3,705 | ||||||||||||||||||||||
Total assets of VIEs | $ | 4,931 | $ | 75,401 | $ | 80,332 | $ | 4,947 | $ | 69,746 | $ | 74,693 | $ | 4,629 | $ | 79,564 | $ | 84,193 | $ | 4,947 | $ | 69,746 | $ | 74,693 |
Bank of America90 |
Goodwill | |||||||
(Dollars in millions) | March 31 2018 | December 31 2017 | |||||
Consumer Banking | $ | 30,123 | $ | 30,123 | |||
Global Wealth & Investment Management | 9,677 | 9,677 | |||||
Global Banking | 23,923 | 23,923 | |||||
Global Markets | 5,182 | 5,182 | |||||
All Other | 46 | 46 | |||||
Total goodwill | $ | 68,951 | $ | 68,951 |
Goodwill | |||||||
(Dollars in millions) | September 30 2018 | December 31 2017 | |||||
Consumer Banking | $ | 30,123 | $ | 30,123 | |||
Global Wealth & Investment Management | 9,677 | 9,677 | |||||
Global Banking | 23,923 | 23,923 | |||||
Global Markets | 5,182 | 5,182 | |||||
All Other | 46 | 46 | |||||
Total goodwill | $ | 68,951 | $ | 68,951 |
Intangible Assets (1, 2) | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||
Purchased credit card and affinity relationships | $ | 5,919 | $ | 5,643 | $ | 276 | $ | 5,919 | $ | 5,604 | $ | 315 | $ | 5,919 | $ | 5,721 | $ | 198 | $ | 5,919 | $ | 5,604 | $ | 315 | ||||||||||||||||||||||
Core deposit and other intangibles (3) | 3,835 | 2,160 | 1,675 | 3,835 | 2,140 | 1,695 | 3,835 | 2,201 | 1,634 | 3,835 | 2,140 | 1,695 | ||||||||||||||||||||||||||||||||||
Customer relationships | 3,886 | 3,660 | 226 | 3,886 | 3,584 | 302 | 3,886 | 3,810 | 76 | 3,886 | 3,584 | 302 | ||||||||||||||||||||||||||||||||||
Total intangible assets | $ | 13,640 | $ | 11,463 | $ | 2,177 | $ | 13,640 | $ | 11,328 | $ | 2,312 | $ | 13,640 | $ | 11,732 | $ | 1,908 | $ | 13,640 | $ | 11,328 | $ | 2,312 |
(1) | Excludes fully amortized intangible assets. |
(2) | At |
(3) | Includes $1.6 billion at both |
91Bank of America |
Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | ||||||||||||||||||||||||||||||||||||||||
Average during period | $ | 248,320 | 1.02 | % | $ | 216,402 | 0.67 | % | $ | 241,426 | 1.31 | % | $ | 223,585 | 0.86 | % | $ | 247,183 | 1.15 | % | $ | 222,255 | 0.77 | % | ||||||||||||||||
Maximum month-end balance during period | 252,078 | n/a | 223,499 | n/a | 267,989 | n/a | 224,815 | n/a | 267,989 | n/a | 237,064 | n/a | ||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | ||||||||||||||||||||||||||||||||||||||||
Average during period | $ | 195,614 | 1.41 | % | $ | 191,677 | 0.93 | % | $ | 191,693 | 1.88 | % | $ | 197,794 | 1.37 | % | $ | 193,854 | 1.71 | % | $ | 199,433 | 1.18 | % | ||||||||||||||||
Maximum month-end balance during period | 191,319 | n/a | 199,926 | n/a | 189,206 | n/a | 197,604 | n/a | 199,419 | n/a | 218,017 | n/a | ||||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||||||||||||||
Average during period | 46,334 | 3.98 | 40,040 | 2.11 | 33,410 | 2.89 | 32,153 | 2.54 | 40,048 | 2.49 | 38,329 | 2.43 | ||||||||||||||||||||||||||||
Maximum month-end balance during period | 52,480 | n/a | 44,944 | n/a | 36,043 | n/a | 32,679 | n/a | 52,480 | n/a | 46,202 | n/a |
Securities Financing Agreements | Securities Financing Agreements | |||||||||||||||||||||||||||||||||||||
Gross Assets/Liabilities (1) | Amounts Offset | Net Balance Sheet Amount | Financial Instruments (2) | Net Assets/Liabilities | Gross Assets/Liabilities (1) | Amounts Offset | Net Balance Sheet Amount | Financial Instruments (2) | Net Assets/Liabilities | |||||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||||||
Securities borrowed or purchased under agreements to resell (3) | $ | 381,692 | $ | (137,062 | ) | $ | 244,630 | $ | (200,677 | ) | $ | 43,953 | $ | 373,800 | $ | (125,563 | ) | $ | 248,237 | $ | (218,291 | ) | $ | 29,946 | ||||||||||||||
Securities loaned or sold under agreements to repurchase | $ | 315,590 | $ | (137,062 | ) | $ | 178,528 | $ | (149,374 | ) | $ | 29,154 | $ | 297,163 | $ | (125,563 | ) | $ | 171,600 | $ | (151,842 | ) | $ | 19,758 | ||||||||||||||
Other (4) | 20,048 | — | 20,048 | (20,048 | ) | — | 24,446 | — | 24,446 | (24,446 | ) | — | ||||||||||||||||||||||||||
Total | $ | 335,638 | $ | (137,062 | ) | $ | 198,576 | $ | (169,422 | ) | $ | 29,154 | $ | 321,609 | $ | (125,563 | ) | $ | 196,046 | $ | (176,288 | ) | $ | 19,758 | ||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Securities borrowed or purchased under agreements to resell (3) | $ | 348,472 | $ | (135,725 | ) | $ | 212,747 | $ | (165,720 | ) | $ | 47,027 | $ | 348,472 | $ | (135,725 | ) | $ | 212,747 | $ | (165,720 | ) | $ | 47,027 | ||||||||||||||
Securities loaned or sold under agreements to repurchase | $ | 312,582 | $ | (135,725 | ) | $ | 176,857 | $ | (146,205 | ) | $ | 30,652 | $ | 312,582 | $ | (135,725 | ) | $ | 176,857 | $ | (146,205 | ) | $ | 30,652 | ||||||||||||||
Other (4) | 22,711 | — | 22,711 | (22,711 | ) | — | 22,711 | — | 22,711 | (22,711 | ) | — | ||||||||||||||||||||||||||
Total | $ | 335,293 | $ | (135,725 | ) | $ | 199,568 | $ | (168,916 | ) | $ | 30,652 | $ | 335,293 | $ | (135,725 | ) | $ | 199,568 | $ | (168,916 | ) | $ | 30,652 |
(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 $ |
(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. |
Bank of America92 |
Remaining Contractual Maturity | Remaining Contractual Maturity | |||||||||||||||||||||||||||||||||||||
March 31, 2018 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Overnight and Continuous | 30 Days or Less | After 30 Days Through 90 Days | Greater than 90 Days (1) | Total | Overnight and Continuous | 30 Days or Less | After 30 Days Through 90 Days | Greater than 90 Days (1) | Total | ||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | $ | 112,400 | $ | 90,486 | $ | 38,437 | $ | 52,570 | $ | 293,893 | $ | 128,222 | $ | 68,852 | $ | 22,920 | $ | 58,089 | $ | 278,083 | ||||||||||||||||||
Securities loaned | 14,727 | 258 | 2,130 | 4,582 | 21,697 | 13,364 | 738 | 896 | 4,082 | 19,080 | ||||||||||||||||||||||||||||
Other | 20,048 | — | — | — | 20,048 | 24,446 | — | — | — | 24,446 | ||||||||||||||||||||||||||||
Total | $ | 147,175 | $ | 90,744 | $ | 40,567 | $ | 57,152 | $ | 335,638 | $ | 166,032 | $ | 69,590 | $ | 23,816 | $ | 62,171 | $ | 321,609 | ||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | $ | 125,956 | $ | 79,913 | $ | 46,091 | $ | 38,935 | $ | 290,895 | $ | 125,956 | $ | 79,913 | $ | 46,091 | $ | 38,935 | $ | 290,895 | ||||||||||||||||||
Securities loaned | 9,853 | 5,658 | 2,043 | 4,133 | 21,687 | 9,853 | 5,658 | 2,043 | 4,133 | 21,687 | ||||||||||||||||||||||||||||
Other | 22,711 | — | — | — | 22,711 | 22,711 | — | — | — | 22,711 | ||||||||||||||||||||||||||||
Total | $ | 158,520 | $ | 85,571 | $ | 48,134 | $ | 43,068 | $ | 335,293 | $ | 158,520 | $ | 85,571 | $ | 48,134 | $ | 43,068 | $ | 335,293 |
(1) | No agreements have maturities greater than three years. |
Class of Collateral Pledged | Class of Collateral Pledged | |||||||||||||||||||||||||||||
March 31, 2018 | September 30, 2018 | |||||||||||||||||||||||||||||
(Dollars in millions) | Securities Sold Under Agreements to Repurchase | Securities Loaned | Other | Total | Securities Sold Under Agreements to Repurchase | Securities Loaned | Other | Total | ||||||||||||||||||||||
U.S. government and agency securities | $ | 163,292 | $ | — | $ | 1 | $ | 163,293 | $ | 158,567 | $ | 10 | $ | 2 | $ | 158,579 | ||||||||||||||
Corporate securities, trading loans and other | 10,454 | 2,835 | 356 | 13,645 | 13,448 | 2,656 | 363 | 16,467 | ||||||||||||||||||||||
Equity securities | 21,971 | 12,898 | 19,648 | 54,517 | 17,268 | 10,953 | 24,028 | 52,249 | ||||||||||||||||||||||
Non-U.S. sovereign debt | 92,805 | 5,964 | 43 | 98,812 | 84,435 | 5,461 | 53 | 89,949 | ||||||||||||||||||||||
Mortgage trading loans and ABS | 5,371 | — | — | 5,371 | 4,365 | — | — | 4,365 | ||||||||||||||||||||||
Total | $ | 293,893 | $ | 21,697 | $ | 20,048 | $ | 335,638 | $ | 278,083 | $ | 19,080 | $ | 24,446 | $ | 321,609 | ||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 158,299 | $ | — | $ | 409 | $ | 158,708 | $ | 158,299 | $ | — | $ | 409 | $ | 158,708 | ||||||||||||||
Corporate securities, trading loans and other | 12,787 | 2,669 | 624 | 16,080 | 12,787 | 2,669 | 624 | 16,080 | ||||||||||||||||||||||
Equity securities | 23,975 | 13,523 | 21,628 | 59,126 | 23,975 | 13,523 | 21,628 | 59,126 | ||||||||||||||||||||||
Non-U.S. sovereign debt | 90,857 | 5,495 | 50 | 96,402 | 90,857 | 5,495 | 50 | 96,402 | ||||||||||||||||||||||
Mortgage trading loans and ABS | 4,977 | — | — | 4,977 | 4,977 | — | — | 4,977 | ||||||||||||||||||||||
Total | $ | 290,895 | $ | 21,687 | $ | 22,711 | $ | 335,293 | $ | 290,895 | $ | 21,687 | $ | 22,711 | $ | 335,293 |
93Bank of America |
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 | 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) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||||||||
Notional amount of credit extension commitments | ||||||||||||||||||||||||||||||||||||||
Loan commitments | $ | 89,618 | $ | 148,332 | $ | 150,703 | $ | 24,020 | $ | 412,673 | $ | 86,501 | $ | 142,327 | $ | 154,991 | $ | 22,724 | $ | 406,543 | ||||||||||||||||||
Home equity lines of credit | 4,843 | 3,784 | 2,464 | 32,802 | 43,893 | 3,203 | 2,494 | 3,115 | 34,411 | 43,223 | ||||||||||||||||||||||||||||
Standby letters of credit and financial guarantees (1) | 20,833 | 10,062 | 2,687 | 1,345 | 34,927 | 20,653 | 9,838 | 2,555 | 1,151 | 34,197 | ||||||||||||||||||||||||||||
Letters of credit | 1,212 | 115 | 85 | 56 | 1,468 | 1,262 | 223 | 74 | 73 | 1,632 | ||||||||||||||||||||||||||||
Legally binding commitments | 116,506 | 162,293 | 155,939 | 58,223 | 492,961 | 111,619 | 154,882 | 160,735 | 58,359 | 485,595 | ||||||||||||||||||||||||||||
Credit card lines (2) | 368,608 | — | — | — | 368,608 | 373,295 | — | — | — | 373,295 | ||||||||||||||||||||||||||||
Total credit extension commitments | $ | 485,114 | $ | 162,293 | $ | 155,939 | $ | 58,223 | $ | 861,569 | $ | 484,914 | $ | 154,882 | $ | 160,735 | $ | 58,359 | $ | 858,890 | ||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Notional amount of credit extension commitments | ||||||||||||||||||||||||||||||||||||||
Loan commitments | $ | 85,804 | $ | 140,942 | $ | 147,043 | $ | 21,342 | $ | 395,131 | $ | 85,804 | $ | 140,942 | $ | 147,043 | $ | 21,342 | $ | 395,131 | ||||||||||||||||||
Home equity lines of credit | 6,172 | 4,457 | 2,288 | 31,250 | 44,167 | 6,172 | 4,457 | 2,288 | 31,250 | 44,167 | ||||||||||||||||||||||||||||
Standby letters of credit and financial guarantees (1) | 19,976 | 11,261 | 3,420 | 1,144 | 35,801 | 19,976 | 11,261 | 3,420 | 1,144 | 35,801 | ||||||||||||||||||||||||||||
Letters of credit | 1,291 | 117 | 129 | 87 | 1,624 | 1,291 | 117 | 129 | 87 | 1,624 | ||||||||||||||||||||||||||||
Legally binding commitments | 113,243 | 156,777 | 152,880 | 53,823 | 476,723 | 113,243 | 156,777 | 152,880 | 53,823 | 476,723 | ||||||||||||||||||||||||||||
Credit card lines (2) | 362,030 | — | — | — | 362,030 | 362,030 | — | — | — | 362,030 | ||||||||||||||||||||||||||||
Total credit extension commitments | $ | 475,273 | $ | 156,777 | $ | 152,880 | $ | 53,823 | $ | 838,753 | $ | 475,273 | $ | 156,777 | $ | 152,880 | $ | 53,823 | $ | 838,753 |
(1) | 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 $ |
(2) | Includes business card unused lines of credit. |
Bank of America94 |
95Bank of America |
Declared Quarterly Cash Dividends on Common Stock (1) | Declared Quarterly Cash Dividends on Common Stock (1) | Declared Quarterly Cash Dividends on Common Stock (1) | ||||||||||||||
Declaration Date | Record Date | Payment Date | Dividend Per Share | Record Date | Payment Date | Dividend Per Share | ||||||||||
October 24, 2018 | December 7, 2018 | December 28, 2018 | $ | 0.15 | ||||||||||||
July 26, 2018 | September 7, 2018 | September 28, 2018 | 0.15 | |||||||||||||
April 25, 2018 | June 1, 2018 | June 29, 2018 | $ | 0.12 | June 1, 2018 | June 29, 2018 | 0.12 | |||||||||
January 31, 2018 | March 2, 2018 | March 30, 2018 | 0.12 | March 2, 2018 | March 30, 2018 | 0.12 |
(1) | In 2018, and through |
Bank of America |
(Dollars in millions) | Debt and Equity Securities | Debit Valuation Adjustments | Derivatives | Employee Benefit Plans | Foreign Currency | Total | Debt and Equity Securities | Debit Valuation Adjustments | Derivatives | Employee Benefit Plans | Foreign Currency | Total | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2016 | $ | (1,267 | ) | $ | (767 | ) | $ | (895 | ) | $ | (3,480 | ) | $ | (879 | ) | $ | (7,288 | ) | $ | (1,267 | ) | $ | (767 | ) | $ | (895 | ) | $ | (3,480 | ) | $ | (879 | ) | $ | (7,288 | ) | ||||||||||
Net change | (99 | ) | 9 | 38 | 27 | (3 | ) | (28 | ) | 931 | (149 | ) | 156 | 80 | 102 | 1,120 | ||||||||||||||||||||||||||||||
Balance, March 31, 2017 | $ | (1,366 | ) | $ | (758 | ) | $ | (857 | ) | $ | (3,453 | ) | $ | (882 | ) | $ | (7,316 | ) | ||||||||||||||||||||||||||||
Balance, September 30, 2017 | $ | (336 | ) | $ | (916 | ) | $ | (739 | ) | $ | (3,400 | ) | $ | (777 | ) | $ | (6,168 | ) | ||||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | (1,206 | ) | $ | (1,060 | ) | $ | (831 | ) | $ | (3,192 | ) | $ | (793 | ) | $ | (7,082 | ) | $ | (1,206 | ) | $ | (1,060 | ) | $ | (831 | ) | $ | (3,192 | ) | $ | (793 | ) | $ | (7,082 | ) | ||||||||||
Accounting change related to certain tax effects (1) | (393 | ) | (220 | ) | (189 | ) | (707 | ) | 239 | (1,270 | ) | (393 | ) | (220 | ) | (189 | ) | (707 | ) | 239 | (1,270 | ) | ||||||||||||||||||||||||
Cumulative adjustment for hedge accounting change (2) | — | — | 57 | — | — | 57 | — | — | 57 | — | — | 57 | ||||||||||||||||||||||||||||||||||
Net change | (3,963 | ) | 273 | (275 | ) | 30 | (48 | ) | (3,983 | ) | (6,166 | ) | 183 | (346 | ) | 91 | (303 | ) | (6,541 | ) | ||||||||||||||||||||||||||
Balance, March 31, 2018 | $ | (5,562 | ) | $ | (1,007 | ) | $ | (1,238 | ) | $ | (3,869 | ) | $ | (602 | ) | $ | (12,278 | ) | ||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | (7,765 | ) | $ | (1,097 | ) | $ | (1,309 | ) | $ | (3,808 | ) | $ | (857 | ) | $ | (14,836 | ) |
Changes in OCI Components Before- and After-tax | ||||||||||||||||||||||||||||||||||||||||||||||
Changes in OCI Components Pre- and After-tax | Changes in OCI Components Pre- and After-tax | |||||||||||||||||||||||||||||||||||||||||||||
Before- tax | Tax effect | After- tax | Before- tax | Tax effect | After- tax | Pretax | Tax effect | After- tax | Pretax | Tax effect | After- tax | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||
Debt and equity securities: | ||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in fair value | $ | (5,323 | ) | $ | 1,360 | $ | (3,963 | ) | $ | (124 | ) | $ | 53 | $ | (71 | ) | ||||||||||||||||||||||||||||||
Net realized gains reclassified into earnings (3) | (2 | ) | 2 | — | (45 | ) | 17 | (28 | ) | |||||||||||||||||||||||||||||||||||||
Net increase (decrease) in fair value | $ | (8,198 | ) | $ | 2,075 | $ | (6,123 | ) | $ | 1,802 | $ | (674 | ) | $ | 1,128 | |||||||||||||||||||||||||||||||
Net realized (gains) reclassified into earnings (3) | (55 | ) | 12 | (43 | ) | (312 | ) | 115 | (197 | ) | ||||||||||||||||||||||||||||||||||||
Net change | (5,325 | ) | 1,362 | (3,963 | ) | (169 | ) | 70 | (99 | ) | (8,253 | ) | 2,087 | (6,166 | ) | 1,490 | (559 | ) | 931 | |||||||||||||||||||||||||||
Debit valuation adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||
Net increase in fair value | 342 | (82 | ) | 260 | 9 | (4 | ) | 5 | ||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in fair value | 220 | (52 | ) | 168 | (255 | ) | 96 | (159 | ) | |||||||||||||||||||||||||||||||||||||
Net realized losses reclassified into earnings (3) | 17 | (4 | ) | 13 | 6 | (2 | ) | 4 | 20 | (5 | ) | 15 | 30 | (20 | ) | 10 | ||||||||||||||||||||||||||||||
Net change | 359 | (86 | ) | 273 | 15 | (6 | ) | 9 | 240 | (57 | ) | 183 | (225 | ) | 76 | (149 | ) | |||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in fair value | (424 | ) | 131 | (293 | ) | (9 | ) | 3 | (6 | ) | ||||||||||||||||||||||||||||||||||||
Net increase (decrease) in fair value | (601 | ) | 174 | (427 | ) | 79 | (30 | ) | 49 | |||||||||||||||||||||||||||||||||||||
Reclassifications into earnings: | ||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | 50 | (12 | ) | 38 | 112 | (42 | ) | 70 | 134 | (33 | ) | 101 | 274 | (103 | ) | 171 | ||||||||||||||||||||||||||||||
Personnel expense | (27 | ) | 7 | (20 | ) | (42 | ) | 16 | (26 | ) | (27 | ) | 7 | (20 | ) | (103 | ) | 39 | (64 | ) | ||||||||||||||||||||||||||
Net realized losses reclassified into earnings | 23 | (5 | ) | 18 | 70 | (26 | ) | 44 | 107 | (26 | ) | 81 | 171 | (64 | ) | 107 | ||||||||||||||||||||||||||||||
Net change | (401 | ) | 126 | (275 | ) | 61 | (23 | ) | 38 | (494 | ) | 148 | (346 | ) | 250 | (94 | ) | 156 | ||||||||||||||||||||||||||||
Employee benefit plans: | ||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications into earnings: | ||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost | (1 | ) | — | (1 | ) | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||
Net actuarial losses | 42 | (11 | ) | 31 | 42 | (16 | ) | 26 | ||||||||||||||||||||||||||||||||||||||
Net actuarial losses and other | 119 | (28 | ) | 91 | 128 | (48 | ) | 80 | ||||||||||||||||||||||||||||||||||||||
Net realized losses reclassified into earnings (4) | 41 | (11 | ) | 30 | 43 | (16 | ) | 27 | 119 | (28 | ) | 91 | 128 | (48 | ) | 80 | ||||||||||||||||||||||||||||||
Settlements, curtailments and other | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net change | 41 | (11 | ) | 30 | 43 | (16 | ) | 27 | 119 | (28 | ) | 91 | 128 | (48 | ) | 80 | ||||||||||||||||||||||||||||||
Foreign currency: | ||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in fair value | (82 | ) | 34 | (48 | ) | (131 | ) | 108 | (23 | ) | ||||||||||||||||||||||||||||||||||||
Net increase (decrease) in fair value | (87 | ) | (165 | ) | (252 | ) | (454 | ) | 462 | 8 | ||||||||||||||||||||||||||||||||||||
Net realized (gains) losses reclassified into earnings (3) | 1 | (1 | ) | — | (12 | ) | 32 | 20 | (143 | ) | 92 | (51 | ) | (608 | ) | 702 | 94 | |||||||||||||||||||||||||||||
Net change | (81 | ) | 33 | (48 | ) | (143 | ) | 140 | (3 | ) | (230 | ) | (73 | ) | (303 | ) | (1,062 | ) | 1,164 | 102 | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | $ | (5,407 | ) | $ | 1,424 | $ | (3,983 | ) | $ | (193 | ) | $ | 165 | $ | (28 | ) | $ | (8,618 | ) | $ | 2,077 | $ | (6,541 | ) | $ | 581 | $ | 539 | $ | 1,120 |
(1) | Effective January 1, 2018, the Corporation adopted the |
(2) | Reflects the Corporation’s adoption of the |
(3) | Reclassifications of pretax debt and equity securities, DVA and foreign currency (gains) losses are recorded in other income in the Consolidated Statement of Income. |
(4) | Reclassifications of pretax employee benefit plan costs are recorded in other general operating expense in the Consolidated Statement of Income. |
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
(In millions, except per share information) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Earnings per common share | ||||||||||||||||||||||
Net income | $ | 6,918 | $ | 5,337 | $ | 7,167 | $ | 5,424 | $ | 20,869 | $ | 15,867 | ||||||||||
Preferred stock dividends | (428 | ) | (502 | ) | (466 | ) | (465 | ) | (1,212 | ) | (1,328 | ) | ||||||||||
Net income applicable to common shareholders | $ | 6,490 | $ | 4,835 | $ | 6,701 | $ | 4,959 | $ | 19,657 | $ | 14,539 | ||||||||||
Average common shares issued and outstanding | 10,322.4 | 10,099.6 | 10,031.6 | 10,197.9 | 10,177.5 | 10,103.4 | ||||||||||||||||
Earnings per common share | $ | 0.63 | $ | 0.48 | $ | 0.67 | $ | 0.49 | $ | 1.93 | $ | 1.44 | ||||||||||
Diluted earnings per common share | ||||||||||||||||||||||
Net income applicable to common shareholders | $ | 6,490 | $ | 4,835 | $ | 6,701 | $ | 4,959 | $ | 19,657 | $ | 14,539 | ||||||||||
Add preferred stock dividends due to assumed conversions (1) | — | 75 | — | 37 | — | 187 | ||||||||||||||||
Net income allocated to common shareholders | $ | 6,490 | $ | 4,910 | $ | 6,701 | $ | 4,996 | $ | 19,657 | $ | 14,726 | ||||||||||
Average common shares issued and outstanding | 10,322.4 | 10,099.6 | 10,031.6 | 10,197.9 | 10,177.5 | 10,103.4 | ||||||||||||||||
Dilutive potential common shares (2) | 150.3 | 820.1 | 139.2 | 548.8 | 140.4 | 728.7 | ||||||||||||||||
Total diluted average common shares issued and outstanding | 10,472.7 | 10,919.7 | 10,170.8 | 10,746.7 | 10,317.9 | 10,832.1 | ||||||||||||||||
Diluted earnings per common share | $ | 0.62 | $ | 0.45 | $ | 0.66 | $ | 0.46 | $ | 1.91 | $ | 1.36 |
(1) | Represents the Series T dividends under the “if-converted” method prior to conversion. |
(2) | Includes incremental dilutive shares from |
Bank of America |
March 31, 2018 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments (1) | Assets/Liabilities at Fair Value | Level 1 | Level 2 | Level 3 | Netting Adjustments (1) | Assets/Liabilities at Fair Value | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Time deposits placed and other short-term investments | $ | 1,528 | $ | — | $ | — | $ | — | $ | 1,528 | ||||||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | — | $ | 68,556 | $ | — | $ | — | $ | 68,556 | — | 52,524 | — | — | 52,524 | |||||||||||||||||||||||
Trading account assets: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities (2) | 35,219 | 2,473 | — | — | 37,692 | 39,677 | 1,251 | — | — | 40,928 | ||||||||||||||||||||||||||||
Corporate securities, trading loans and other | — | 31,556 | 1,716 | — | 33,272 | — | 27,281 | 1,534 | — | 28,815 | ||||||||||||||||||||||||||||
Equity securities | 40,949 | 24,724 | 212 | — | 65,885 | 66,850 | 28,049 | 290 | — | 95,189 | ||||||||||||||||||||||||||||
Non-U.S. sovereign debt | 7,459 | 25,381 | 401 | — | 33,241 | 5,667 | 19,524 | 469 | — | 25,660 | ||||||||||||||||||||||||||||
Mortgage trading loans, MBS and ABS: | ||||||||||||||||||||||||||||||||||||||
U.S. government-sponsored agency guaranteed (2) | — | 18,380 | — | — | 18,380 | |||||||||||||||||||||||||||||||||
U.S. government-sponsored agency guaranteed | — | 18,697 | — | — | 18,697 | |||||||||||||||||||||||||||||||||
Mortgage trading loans, ABS and other MBS | — | 8,635 | 1,372 | — | 10,007 | — | 8,350 | 1,479 | — | 9,829 | ||||||||||||||||||||||||||||
Total trading account assets (3) | 83,627 | 111,149 | 3,701 | — | 198,477 | 112,194 | 103,152 | 3,772 | — | 219,118 | ||||||||||||||||||||||||||||
Derivative assets (4) | 9,873 | 345,940 | 4,545 | (312,489 | ) | 47,869 | ||||||||||||||||||||||||||||||||
Derivative assets | 9,961 | 322,940 | 4,380 | (291,664 | ) | 45,617 | ||||||||||||||||||||||||||||||||
AFS debt securities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 51,412 | 1,560 | — | — | 52,972 | 50,900 | 1,406 | — | — | 52,306 | ||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Agency | — | 184,111 | — | — | 184,111 | — | 136,112 | — | — | 136,112 | ||||||||||||||||||||||||||||
Agency-collateralized mortgage obligations | — | 6,398 | — | — | 6,398 | — | 5,678 | — | — | 5,678 | ||||||||||||||||||||||||||||
Non-agency residential | — | 2,604 | — | — | 2,604 | — | 1,593 | 544 | — | 2,137 | ||||||||||||||||||||||||||||
Commercial | — | 13,559 | — | — | 13,559 | — | 13,510 | — | — | 13,510 | ||||||||||||||||||||||||||||
Non-U.S. securities | 751 | 6,151 | 23 | — | 6,925 | 759 | 6,317 | 3 | — | 7,079 | ||||||||||||||||||||||||||||
Other taxable securities | — | 4,671 | 43 | — | 4,714 | — | 3,869 | 7 | — | 3,876 | ||||||||||||||||||||||||||||
Tax-exempt securities | — | 19,077 | — | — | 19,077 | — | 18,349 | 1 | — | 18,350 | ||||||||||||||||||||||||||||
Total AFS debt securities | 52,163 | 238,131 | 66 | — | 290,360 | 51,659 | 186,834 | 555 | — | 239,048 | ||||||||||||||||||||||||||||
Other debt securities carried at fair value: | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Non-agency residential | — | 2,736 | — | — | 2,736 | — | 1,400 | 296 | — | 1,696 | ||||||||||||||||||||||||||||
Non-U.S. securities | 8,621 | 1,355 | — | — | 9,976 | 9,943 | 945 | — | — | 10,888 | ||||||||||||||||||||||||||||
Other taxable securities | — | 226 | — | — | 226 | — | 3 | — | — | 3 | ||||||||||||||||||||||||||||
Total other debt securities carried at fair value | 8,621 | 4,317 | — | — | 12,938 | 9,943 | 2,348 | 296 | — | 12,587 | ||||||||||||||||||||||||||||
Loans and leases | — | 5,463 | 526 | — | 5,989 | — | 5,321 | 410 | — | 5,731 | ||||||||||||||||||||||||||||
Loans held-for-sale | — | 2,406 | 685 | — | 3,091 | — | 2,590 | 526 | — | 3,116 | ||||||||||||||||||||||||||||
Other assets (5) | 15,376 | 1,904 | 3,295 | — | 20,575 | |||||||||||||||||||||||||||||||||
Other assets (4) | 18,858 | 1,740 | 3,140 | — | 23,738 | |||||||||||||||||||||||||||||||||
Total assets | $ | 169,660 | $ | 777,866 | $ | 12,818 | $ | (312,489 | ) | $ | 647,855 | $ | 204,143 | $ | 677,449 | $ | 13,079 | $ | (291,664 | ) | $ | 603,007 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits in U.S. offices | $ | — | $ | 435 | $ | — | $ | — | $ | 435 | $ | — | $ | 529 | $ | — | $ | — | $ | 529 | ||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | — | 35,116 | — | — | 35,116 | — | 34,242 | — | — | 34,242 | ||||||||||||||||||||||||||||
Trading account liabilities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 15,205 | 293 | — | — | 15,498 | 15,403 | 362 | — | — | 15,765 | ||||||||||||||||||||||||||||
Equity securities | 43,434 | 5,061 | — | — | 48,495 | 38,743 | 4,673 | — | — | 43,416 | ||||||||||||||||||||||||||||
Non-U.S. sovereign debt | 17,210 | 11,080 | — | — | 28,290 | 12,496 | 9,863 | — | — | 22,359 | ||||||||||||||||||||||||||||
Corporate securities and other | — | 7,909 | 26 | — | 7,935 | — | 8,407 | 17 | — | 8,424 | ||||||||||||||||||||||||||||
Total trading account liabilities | 75,849 | 24,343 | 26 | — | 100,218 | 66,642 | 23,305 | 17 | — | 89,964 | ||||||||||||||||||||||||||||
Derivative liabilities (4) | 9,374 | 325,832 | 5,683 | (306,989 | ) | 33,900 | ||||||||||||||||||||||||||||||||
Derivative liabilities | 9,142 | 309,966 | 4,950 | (287,869 | ) | 36,189 | ||||||||||||||||||||||||||||||||
Short-term borrowings | — | 2,284 | — | — | 2,284 | — | 1,789 | — | — | 1,789 | ||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 18,131 | 2,037 | 8 | — | 20,176 | 22,667 | 1,849 | — | — | 24,516 | ||||||||||||||||||||||||||||
Long-term debt | — | 28,711 | 1,351 | — | 30,062 | — | 27,754 | 923 | — | 28,677 | ||||||||||||||||||||||||||||
Total liabilities | $ | 103,354 | $ | 418,758 | $ | 7,068 | $ | (306,989 | ) | $ | 222,191 | $ | 98,451 | $ | 399,434 | $ | 5,890 | $ | (287,869 | ) | $ | 215,906 |
(1) | Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties. |
(2) | Includes $ |
(3) | Includes securities with a fair value of $ |
(4) |
Includes MSRs of $ |
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments (1) | Assets/Liabilities at Fair Value | Level 1 | Level 2 | Level 3 | Netting Adjustments (1) | Assets/Liabilities at Fair Value | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Time deposits placed and other short-term investments | $ | 2,234 | $ | — | $ | — | $ | — | $ | 2,234 | ||||||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | — | $ | 52,906 | $ | — | $ | — | $ | 52,906 | — | 52,906 | — | — | 52,906 | |||||||||||||||||||||||
Trading account assets: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities (2, 3) | 38,720 | 1,922 | — | — | 40,642 | |||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities (2) | 38,720 | 1,922 | — | — | 40,642 | |||||||||||||||||||||||||||||||||
Corporate securities, trading loans and other | — | 28,714 | 1,864 | — | 30,578 | — | 28,714 | 1,864 | — | 30,578 | ||||||||||||||||||||||||||||
Equity securities (3) | 60,747 | 23,958 | 235 | — | 84,940 | |||||||||||||||||||||||||||||||||
Non-U.S. sovereign debt (3) | 6,545 | 15,839 | 556 | — | 22,940 | |||||||||||||||||||||||||||||||||
Equity securities | 60,747 | 23,958 | 235 | — | 84,940 | |||||||||||||||||||||||||||||||||
Non-U.S. sovereign debt | 6,545 | 15,839 | 556 | — | 22,940 | |||||||||||||||||||||||||||||||||
Mortgage trading loans, MBS and ABS: | ||||||||||||||||||||||||||||||||||||||
U.S. government-sponsored agency guaranteed (2) | — | 20,586 | — | — | 20,586 | |||||||||||||||||||||||||||||||||
U.S. government-sponsored agency guaranteed | — | 20,586 | — | — | 20,586 | |||||||||||||||||||||||||||||||||
Mortgage trading loans, ABS and other MBS | — | 8,174 | 1,498 | — | 9,672 | — | 8,174 | 1,498 | — | 9,672 | ||||||||||||||||||||||||||||
Total trading account assets (4) | 106,012 | 99,193 | 4,153 | — | 209,358 | |||||||||||||||||||||||||||||||||
Derivative assets (3) | 6,305 | 341,178 | 4,067 | (313,788 | ) | 37,762 | ||||||||||||||||||||||||||||||||
Total trading account assets (3) | 106,012 | 99,193 | 4,153 | — | 209,358 | |||||||||||||||||||||||||||||||||
Derivative assets | 6,305 | 341,178 | 4,067 | (313,788 | ) | 37,762 | ||||||||||||||||||||||||||||||||
AFS debt securities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 51,915 | 1,608 | — | — | 53,523 | 51,915 | 1,608 | — | — | 53,523 | ||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Agency | — | 192,929 | — | — | 192,929 | — | 192,929 | — | — | 192,929 | ||||||||||||||||||||||||||||
Agency-collateralized mortgage obligations | — | 6,804 | — | — | 6,804 | — | 6,804 | — | — | 6,804 | ||||||||||||||||||||||||||||
Non-agency residential | — | 2,669 | — | — | 2,669 | — | 2,669 | — | — | 2,669 | ||||||||||||||||||||||||||||
Commercial | — | 13,684 | — | — | 13,684 | — | 13,684 | — | — | 13,684 | ||||||||||||||||||||||||||||
Non-U.S. securities | 772 | 5,880 | 25 | — | 6,677 | 772 | 5,880 | 25 | — | 6,677 | ||||||||||||||||||||||||||||
Other taxable securities | — | 5,261 | 509 | — | 5,770 | — | 5,261 | 509 | — | 5,770 | ||||||||||||||||||||||||||||
Tax-exempt securities | — | 20,106 | 469 | — | 20,575 | — | 20,106 | 469 | — | 20,575 | ||||||||||||||||||||||||||||
Total AFS debt securities | 52,687 | 248,941 | 1,003 | — | 302,631 | 52,687 | 248,941 | 1,003 | — | 302,631 | ||||||||||||||||||||||||||||
Other debt securities carried at fair value: | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Agency-collateralized mortgage obligations | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||||
Non-agency residential | — | 2,764 | — | — | 2,764 | — | 2,769 | — | — | 2,769 | ||||||||||||||||||||||||||||
Non-U.S. securities | 8,191 | 1,297 | — | — | 9,488 | 8,191 | 1,297 | — | — | 9,488 | ||||||||||||||||||||||||||||
Other taxable securities | — | 229 | — | — | 229 | — | 229 | — | — | 229 | ||||||||||||||||||||||||||||
Total other debt securities carried at fair value | 8,191 | 4,295 | — | — | 12,486 | 8,191 | 4,295 | — | — | 12,486 | ||||||||||||||||||||||||||||
Loans and leases | — | 5,139 | 571 | — | 5,710 | — | 5,139 | 571 | — | 5,710 | ||||||||||||||||||||||||||||
Loans held-for-sale | — | 1,466 | 690 | — | 2,156 | — | 1,466 | 690 | — | 2,156 | ||||||||||||||||||||||||||||
Other assets | 19,367 | 789 | 2,425 | — | 22,581 | 19,367 | 789 | 2,425 | — | 22,581 | ||||||||||||||||||||||||||||
Total assets | $ | 192,562 | $ | 753,907 | $ | 12,909 | $ | (313,788 | ) | $ | 645,590 | $ | 194,796 | $ | 753,907 | $ | 12,909 | $ | (313,788 | ) | $ | 647,824 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits in U.S. offices | $ | — | $ | 449 | $ | — | $ | — | $ | 449 | $ | — | $ | 449 | $ | — | $ | — | $ | 449 | ||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | — | 36,182 | — | — | 36,182 | — | 36,182 | — | — | 36,182 | ||||||||||||||||||||||||||||
Trading account liabilities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 17,266 | 734 | — | — | 18,000 | 17,266 | 734 | — | — | 18,000 | ||||||||||||||||||||||||||||
Equity securities (3) | 33,019 | 3,885 | — | — | 36,904 | |||||||||||||||||||||||||||||||||
Non-U.S. sovereign debt (3) | 11,976 | 7,382 | — | — | 19,358 | |||||||||||||||||||||||||||||||||
Equity securities | 33,019 | 3,885 | — | — | 36,904 | |||||||||||||||||||||||||||||||||
Non-U.S. sovereign debt | 11,976 | 7,382 | — | — | 19,358 | |||||||||||||||||||||||||||||||||
Corporate securities and other | — | 6,901 | 24 | — | 6,925 | — | 6,901 | 24 | — | 6,925 | ||||||||||||||||||||||||||||
Total trading account liabilities | 62,261 | 18,902 | 24 | — | 81,187 | 62,261 | 18,902 | 24 | — | 81,187 | ||||||||||||||||||||||||||||
Derivative liabilities | 6,029 | 334,261 | 5,781 | (311,771 | ) | 34,300 | 6,029 | 334,261 | 5,781 | (311,771 | ) | 34,300 | ||||||||||||||||||||||||||
Short-term borrowings | — | 1,494 | — | — | 1,494 | — | 1,494 | — | — | 1,494 | ||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 21,887 | 945 | 8 | — | 22,840 | 21,887 | 945 | 8 | — | 22,840 | ||||||||||||||||||||||||||||
Long-term debt | — | 29,923 | 1,863 | — | 31,786 | — | 29,923 | 1,863 | — | 31,786 | ||||||||||||||||||||||||||||
Total liabilities | $ | 90,177 | $ | 422,156 | $ | 7,676 | $ | (311,771 | ) | $ | 208,238 | $ | 90,177 | $ | 422,156 | $ | 7,676 | $ | (311,771 | ) | $ | 208,238 |
(1) | Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties. |
(2) | Includes $21.3 billion of GSE obligations. |
(3) |
Includes securities with a fair value of $16.8 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. |
Includes MSRs of $2.3 billion |
Bank of America |
Level 3 – Fair Value Measurements for the Three Months Ended March 31, 2018 (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 3 – Fair Value Measurements for the Three Months Ended September 30, 2018 (1) | Level 3 – Fair Value Measurements for the Three Months Ended September 30, 2018 (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance January 1 2018 | Total Realized/Unrealized Gains (Losses) (2) | Gains (Losses) in OCI (3) | Gross | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance March 31 2018 | Change in Unrealized Gains (Losses) Related to Financial Instruments Still Held (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance July 1 2018 | Total Realized/Unrealized Gains (Losses) (2) | Gains (Losses) in OCI (3) | Gross | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance September 30 2018 | Change in Unrealized Gains (Losses) Related to Financial Instruments Still Held (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance January 1 2018 | Total Realized/Unrealized Gains (Losses) (2) | Gains (Losses) in OCI (3) | Purchases | Sales | Issuances | Settlements | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance March 31 2018 | Change in Unrealized Gains (Losses) Related to Financial Instruments Still Held (2) | Purchases | Sales | Issuances | Settlements | |||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities, trading loans and other | $ | 1,864 | $ | 9 | $ | — | $ | 193 | $ | (136 | ) | $ | — | $ | (139 | ) | $ | 103 | $ | (178 | ) | $ | 1,716 | $ | (15 | ) | $ | 1,638 | $ | 14 | $ | — | $ | 54 | $ | (87 | ) | $ | — | $ | (175 | ) | $ | 269 | $ | (179 | ) | $ | 1,534 | $ | (14 | ) | ||||||||||||||
Equity securities | 235 | 8 | — | 6 | (7 | ) | — | — | 1 | (31 | ) | 212 | 8 | 228 | 8 | — | 21 | — | — | — | 43 | (10 | ) | 290 | 8 | |||||||||||||||||||||||||||||||||||||||||
Non-U.S. sovereign debt | 556 | 16 | 2 | — | (50 | ) | — | (8 | ) | — | (115 | ) | 401 | 16 | 368 | 10 | (13 | ) | — | — | — | — | 109 | (5 | ) | 469 | 11 | |||||||||||||||||||||||||||||||||||||||
Mortgage trading loans, ABS and other MBS | 1,498 | 99 | 3 | 125 | (320 | ) | — | (69 | ) | 94 | (58 | ) | 1,372 | 83 | 1,523 | 16 | (1 | ) | 75 | (184 | ) | — | (29 | ) | 191 | (112 | ) | 1,479 | 8 | |||||||||||||||||||||||||||||||||||||
Total trading account assets | 4,153 | 132 | 5 | 324 | (513 | ) | — | (216 | ) | 198 | (382 | ) | 3,701 | 92 | 3,757 | 48 | (14 | ) | 150 | (271 | ) | — | (204 | ) | 612 | (306 | ) | 3,772 | 13 | |||||||||||||||||||||||||||||||||||||
Net derivative assets (4) | (1,714 | ) | 495 | — | 153 | (262 | ) | — | 202 | 71 | (83 | ) | (1,138 | ) | 517 | (1,588 | ) | (53 | ) | — | 23 | (66 | ) | — | 111 | 20 | 983 | (570 | ) | (51 | ) | |||||||||||||||||||||||||||||||||||
AFS debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential MBS | 453 | 31 | (28 | ) | — | (72 | ) | — | — | 235 | (75 | ) | 544 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. securities | 25 | — | — | — | — | — | (2 | ) | — | — | 23 | — | 3 | — | — | — | — | — | — | — | — | 3 | — | |||||||||||||||||||||||||||||||||||||||||||
Other taxable securities | 509 | 1 | — | — | — | — | (7 | ) | — | (460 | ) | 43 | — | 99 | (1 | ) | (3 | ) | — | (22 | ) | — | — | — | (66 | ) | 7 | — | ||||||||||||||||||||||||||||||||||||||
Tax-exempt securities | 469 | — | — | — | — | — | — | — | (469 | ) | — | — | 1 | — | — | — | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||||||||||||||||
Total AFS debt securities (5) | 1,003 | 1 | — | — | — | — | (9 | ) | — | (929 | ) | 66 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases (6, 7) | 571 | (16 | ) | — | — | (4 | ) | — | (25 | ) | — | — | 526 | (16 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held-for-sale (6) | 690 | 24 | — | 12 | — | — | (41 | ) | — | — | 685 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets (5, 7, 8) | 2,425 | 192 | — | — | (38 | ) | 29 | (242 | ) | 929 | — | 3,295 | 120 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total AFS debt securities | 556 | 30 | (31 | ) | — | (94 | ) | — | — | 235 | (141 | ) | 555 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities carried at fair value – Non-agency residential MBS | 287 | (23 | ) | — | — | — | — | — | 60 | (28 | ) | 296 | (10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases (5, 6) | 493 | — | — | — | (62 | ) | — | (21 | ) | — | — | 410 | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held-for-sale (5) | 577 | 12 | (4 | ) | 39 | — | — | (82 | ) | 12 | (28 | ) | 526 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets (6, 7) | 3,184 | 121 | — | — | (22 | ) | 31 | (174 | ) | — | — | 3,140 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading account liabilities – Corporate securities and other | (24 | ) | 1 | — | — | (2 | ) | (1 | ) | — | — | — | (26 | ) | 1 | (35 | ) | 9 | — | 9 | — | — | — | — | — | (17 | ) | (6 | ) | |||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities (6) | (8 | ) | — | — | — | — | — | — | — | — | (8 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt (6) | (1,863 | ) | 23 | 1 | 5 | — | (67 | ) | 172 | (33 | ) | 411 | (1,351 | ) | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt (5) | (1,225 | ) | 11 | (1 | ) | — | — | (11 | ) | 106 | (106 | ) | 303 | (923 | ) | 13 |
(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 - |
(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. For |
(4) | Net |
(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. |
101Bank of America |
Level 3 – Fair Value Measurements for the Three Months Ended September 30, 2017 (1) | |||||||||||||||||||||||||||||||||
Balance July 1 2017 | Total Realized/Unrealized Gains (Losses) (2) | Gains (Losses) in OCI (3) | Gross | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance September 30 2017 | Change in Unrealized Gains (Losses) Related to Financial Instruments Still Held (2) | ||||||||||||||||||||||||||
(Dollars in millions) | Purchases | Sales | Issuances | Settlements | |||||||||||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||||
Corporate securities, trading loans and other | $ | 1,777 | $ | 77 | $ | — | $ | 35 | $ | (79 | ) | $ | 5 | $ | (208 | ) | $ | 288 | $ | (153 | ) | $ | 1,742 | $ | 35 | ||||||||
Equity securities | 229 | 8 | — | 3 | (3 | ) | — | — | 17 | (10 | ) | 244 | 10 | ||||||||||||||||||||
Non-U.S. sovereign debt | 506 | 33 | 18 | — | — | — | (5 | ) | — | — | 552 | 33 | |||||||||||||||||||||
Mortgage trading loans, ABS and other MBS | 1,232 | 10 | (1 | ) | 150 | (157 | ) | — | (46 | ) | 83 | (19 | ) | 1,252 | (2 | ) | |||||||||||||||||
Total trading account assets | 3,744 | 128 | 17 | 188 | (239 | ) | 5 | (259 | ) | 388 | (182 | ) | 3,790 | 76 | |||||||||||||||||||
Net derivative assets (4) | (1,803 | ) | (252 | ) | — | 150 | (367 | ) | — | 278 | 7 | (36 | ) | (2,023 | ) | (283 | ) | ||||||||||||||||
AFS debt securities: | |||||||||||||||||||||||||||||||||
Non-U.S. securities | 139 | 1 | 4 | 7 | — | — | (115 | ) | — | — | 36 | — | |||||||||||||||||||||
Other taxable securities | 483 | — | 1 | — | — | — | (1 | ) | — | — | 483 | — | |||||||||||||||||||||
Tax-exempt securities | 518 | — | 1 | — | — | — | (7 | ) | — | (45 | ) | 467 | — | ||||||||||||||||||||
Total AFS debt securities | 1,140 | 1 | 6 | 7 | — | — | (123 | ) | — | (45 | ) | 986 | — | ||||||||||||||||||||
Other debt securities carried at fair value – Non-agency residential MBS | 23 | — | — | — | — | — | (1 | ) | — | — | 22 | — | |||||||||||||||||||||
Loans and leases (5, 6) | 667 | 2 | — | 2 | (24 | ) | — | (29 | ) | — | — | 618 | 2 | ||||||||||||||||||||
Loans held-for-sale (5) | 766 | 38 | 10 | — | (4 | ) | — | (93 | ) | 58 | — | 775 | 27 | ||||||||||||||||||||
Other assets (6, 7) | 2,795 | 124 | (43 | ) | — | (80 | ) | 69 | (191 | ) | — | — | 2,674 | 8 | |||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase (5) | (135 | ) | — | — | — | — | — | 135 | — | — | — | — | |||||||||||||||||||||
Trading account liabilities – Corporate securities and other | (22 | ) | 1 | — | — | (3 | ) | (1 | ) | — | — | — | (25 | ) | — | ||||||||||||||||||
Accrued expenses and other liabilities (5) | (9 | ) | — | — | — | — | — | — | — | — | (9 | ) | — | ||||||||||||||||||||
Long-term debt (5) | (1,646 | ) | (87 | ) | (7 | ) | 63 | — | (129 | ) | 115 | (244 | ) | 45 | (1,890 | ) | (87 | ) |
(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 profits; Net derivative assets - primarily trading account profits and other income; Loans and leases - other income; Loans held-for-sale - other income; Other assets - primarily other income related to MSRs; Long-term debt - trading account profits. 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. For additional information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2017 Annual Report on Form 10-K. |
(4) | Net derivative assets include derivative assets of $3.9 billion and derivative liabilities of $5.9 billion. |
(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 America102 |
Level 3 – Fair Value Measurements for the Nine Months Ended September 30, 2018 (1) | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance January 1 2018 | Total Realized/Unrealized Gains (Losses) (2) | Gains (Losses) in OCI (3) | Gross | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance September 30 2018 | Change in Unrealized Gains (Losses) Related to Financial Instruments Still Held (2) | |||||||||||||||||||||||||
Purchases | Sales | Issuances | Settlements | ||||||||||||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||||
Corporate securities, trading loans and other | $ | 1,864 | $ | (14 | ) | $ | (1 | ) | $ | 328 | $ | (298 | ) | $ | — | $ | (388 | ) | $ | 517 | $ | (474 | ) | $ | 1,534 | $ | (88 | ) | |||||
Equity securities | 235 | 17 | — | 29 | (11 | ) | — | (4 | ) | 73 | (49 | ) | 290 | 17 | |||||||||||||||||||
Non-U.S. sovereign debt | 556 | 39 | (55 | ) | 7 | (50 | ) | — | (8 | ) | 117 | (137 | ) | 469 | 40 | ||||||||||||||||||
Mortgage trading loans, ABS and other MBS | 1,498 | 157 | 2 | 392 | (760 | ) | — | (136 | ) | 541 | (215 | ) | 1,479 | 92 | |||||||||||||||||||
Total trading account assets | 4,153 | 199 | (54 | ) | 756 | (1,119 | ) | — | (536 | ) | 1,248 | (875 | ) | 3,772 | 61 | ||||||||||||||||||
Net derivative assets (4) | (1,714 | ) | 203 | — | 371 | (919 | ) | — | 488 | 87 | 914 | (570 | ) | (138 | ) | ||||||||||||||||||
AFS debt securities: | |||||||||||||||||||||||||||||||||
Non-agency residential MBS | — | 39 | (42 | ) | — | (72 | ) | — | — | 694 | (75 | ) | 544 | — | |||||||||||||||||||
Non-U.S. securities | 25 | — | (1 | ) | — | (10 | ) | — | (14 | ) | 3 | — | 3 | — | |||||||||||||||||||
Other taxable securities | 509 | 1 | (5 | ) | — | (22 | ) | — | (10 | ) | 60 | (526 | ) | 7 | — | ||||||||||||||||||
Tax-exempt securities | 469 | — | — | — | — | — | — | 1 | (469 | ) | 1 | — | |||||||||||||||||||||
Total AFS debt securities (5) | 1,003 | 40 | (48 | ) | — | (104 | ) | — | (24 | ) | 758 | (1,070 | ) | 555 | — | ||||||||||||||||||
Other debt securities carried at fair value – Non-agency residential MBS | — | (27 | ) | — | — | (7 | ) | — | — | 358 | (28 | ) | 296 | (5 | ) | ||||||||||||||||||
Loans and leases (6, 7) | 571 | (20 | ) | — | — | (71 | ) | — | (70 | ) | — | — | 410 | (17 | ) | ||||||||||||||||||
Loans held-for-sale (6) | 690 | 24 | (31 | ) | 51 | — | — | (160 | ) | 12 | (60 | ) | 526 | 18 | |||||||||||||||||||
Other assets (5, 7, 8) | 2,425 | 389 | — | 2 | (68 | ) | 83 | (585 | ) | 929 | (35 | ) | 3,140 | 188 | |||||||||||||||||||
Trading account liabilities – Corporate securities and other | (24 | ) | 11 | — | 9 | (11 | ) | (2 | ) | — | — | — | (17 | ) | (7 | ) | |||||||||||||||||
Accrued expenses and other liabilities (6) | (8 | ) | — | — | — | — | — | 8 | — | — | — | — | |||||||||||||||||||||
Long-term debt (6) | (1,863 | ) | 97 | 2 | 9 | — | (131 | ) | 429 | (253 | ) | 787 | (923 | ) | 87 |
(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 profits; Net derivative assets - primarily trading account profits 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 - trading account profits. 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. For additional information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statementsof the Corporation’s 2017 Annual Report on Form 10-K. |
(4) | Net derivative assets include derivative assets of $4.4 billion and derivative liabilities of $5.0 billion. |
(5) | Transfer primarily relates to the reclassification of certain securities. |
(6) | Amounts represent instruments that are accounted for under the fair value option. |
(7) | Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales. |
(8) | 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. |
Level 3 – Fair Value Measurements for the Three Months Ended March 31, 2017 (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 3 – Fair Value Measurements for the Nine Months Ended September 30, 2017 (1) | Level 3 – Fair Value Measurements for the Nine Months Ended September 30, 2017 (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance January 1 2017 | Total Realized/Unrealized Gains (Losses) (2) | Gains (Losses) in OCI (3) | Gross | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance March 31 2017 | Change in Unrealized Gains (Losses) Related to Financial Instruments Still Held (2) | Balance January 1 2017 | Total Realized/Unrealized Gains (Losses) (2) | Gains (Losses) in OCI (3) | Gross | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance September 30 2017 | Change in Unrealized Gains (Losses) Related to Financial Instruments Still Held (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Purchases | Sales | Issuances | Settlements | Purchases | Sales | Issuances | Settlements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading account assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities, trading loans and other | $ | 2,777 | $ | 84 | $ | — | $ | 199 | $ | (480 | ) | $ | — | $ | (127 | ) | $ | 75 | $ | (499 | ) | $ | 2,029 | $ | 56 | $ | 2,777 | $ | 225 | $ | — | $ | 353 | $ | (679 | ) | $ | 5 | $ | (443 | ) | $ | 506 | $ | (1,002 | ) | $ | 1,742 | $ | 72 | ||||||||||||||||
Equity securities | 281 | 12 | — | 20 | (17 | ) | — | (10 | ) | 72 | (70 | ) | 288 | 8 | 281 | 23 | — | 45 | (67 | ) | — | (10 | ) | 119 | (147 | ) | 244 | 11 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. sovereign debt | 510 | 19 | 10 | — | (9 | ) | — | (6 | ) | 3 | — | 527 | 19 | 510 | 64 | 12 | 26 | (59 | ) | — | (73 | ) | 72 | — | 552 | 60 | ||||||||||||||||||||||||||||||||||||||||
Mortgage trading loans, ABS and other MBS | 1,211 | 107 | — | 339 | (375 | ) | — | (54 | ) | 28 | (41 | ) | 1,215 | 74 | 1,211 | 195 | (2 | ) | 747 | (846 | ) | — | (169 | ) | 187 | (71 | ) | 1,252 | 107 | |||||||||||||||||||||||||||||||||||||
Total trading account assets | 4,779 | 222 | 10 | 558 | (881 | ) | — | (197 | ) | 178 | (610 | ) | 4,059 | 157 | 4,779 | 507 | 10 | 1,171 | (1,651 | ) | 5 | (695 | ) | 884 | (1,220 | ) | 3,790 | 250 | ||||||||||||||||||||||||||||||||||||||
Net derivative assets (4) | (1,313 | ) | (474 | ) | — | 200 | (247 | ) | — | 170 | 29 | (30 | ) | (1,665 | ) | (489 | ) | (1,313 | ) | (1,098 | ) | — | 558 | (843 | ) | — | 722 | 36 | (85 | ) | (2,023 | ) | (561 | ) | ||||||||||||||||||||||||||||||||
AFS debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. securities | 229 | — | 3 | 20 | — | — | (45 | ) | — | — | 207 | — | 229 | 2 | 16 | 49 | — | — | (260 | ) | — | — | 36 | — | ||||||||||||||||||||||||||||||||||||||||||
Other taxable securities | 594 | 3 | 4 | — | — | — | (22 | ) | — | — | 579 | — | 594 | 3 | 6 | 5 | — | — | (31 | ) | — | (94 | ) | 483 | — | |||||||||||||||||||||||||||||||||||||||||
Tax-exempt securities | 542 | — | 2 | — | (56 | ) | — | (3 | ) | 35 | — | 520 | — | 542 | — | 1 | — | (56 | ) | — | (10 | ) | 35 | (45 | ) | 467 | — | |||||||||||||||||||||||||||||||||||||||
Total AFS debt securities | 1,365 | 3 | 9 | 20 | (56 | ) | — | (70 | ) | 35 | — | 1,306 | — | 1,365 | 5 | 23 | 54 | (56 | ) | — | (301 | ) | 35 | (139 | ) | 986 | — | |||||||||||||||||||||||||||||||||||||||
Other debt securities carried at fair value – Non-agency residential MBS | 25 | (1 | ) | — | — | — | — | — | — | — | 24 | — | 25 | (1 | ) | — | — | — | — | (2 | ) | — | — | 22 | — | |||||||||||||||||||||||||||||||||||||||||
Loans and leases (5, 6) | 720 | 12 | — | — | — | — | (30 | ) | — | — | 702 | 12 | 720 | 20 | — | 2 | (24 | ) | — | (93 | ) | — | (7 | ) | 618 | 18 | ||||||||||||||||||||||||||||||||||||||||
Loans held-for-sale (5) | 656 | 29 | 6 | — | (136 | ) | — | (60 | ) | 315 | (18 | ) | 792 | 22 | 656 | 109 | 7 | 2 | (159 | ) | — | (281 | ) | 473 | (32 | ) | 775 | 60 | ||||||||||||||||||||||||||||||||||||||
Other assets (6, 7) | 2,986 | (33 | ) | — | — | 5 | 75 | (192 | ) | — | — | 2,841 | (123 | ) | 2,986 | 93 | (31 | ) | 2 | (74 | ) | 207 | (573 | ) | 64 | — | 2,674 | (181 | ) | |||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase (5) | (359 | ) | 1 | — | — | — | (2 | ) | 28 | — | 106 | (226 | ) | 1 | (359 | ) | (5 | ) | — | — | — | (12 | ) | 171 | (58 | ) | 263 | — | (5 | ) | ||||||||||||||||||||||||||||||||||||
Trading account liabilities – Corporate securities and other | (27 | ) | 2 | — | — | (10 | ) | — | — | — | — | (35 | ) | 2 | (27 | ) | 13 | — | 4 | (13 | ) | (2 | ) | — | — | — | (25 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities (5) | (9 | ) | — | — | — | — | — | — | — | — | (9 | ) | — | (9 | ) | — | — | — | — | — | — | — | — | (9 | ) | — | ||||||||||||||||||||||||||||||||||||||||
Long-term debt (5) | (1,514 | ) | (83 | ) | 7 | 11 | — | (130 | ) | 159 | (178 | ) | 68 | (1,660 | ) | (83 | ) | (1,514 | ) | (160 | ) | (18 | ) | 81 | — | (279 | ) | 398 | (530 | ) | 132 | (1,890 | ) | (158 | ) |
(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 profits; Net derivative assets - primarily trading account profits 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 - |
(3) | Includes unrealized gains (losses) in OCI |
(4) | Net |
(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 |
Quantitative Information about Level 3 Fair Value Measurements at March 31, 2018 | ||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements at September 30, 2018 | Quantitative Information about Level 3 Fair Value Measurements at September 30, 2018 | |||||||||||||||
(Dollars in millions) | Inputs | Inputs | ||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | ||||||
Loans and Securities (1) | ||||||||||||||||
Instruments backed by residential real estate assets | $ | 845 | Discounted cash flow | Yield | 0% to 25% | 6 | % | $ | 1,615 | Discounted cash flow, Market comparables | Yield | 0% to 25% | 7% | |||
Trading account assets – Mortgage trading loans, ABS and other MBS | 318 | Prepayment speed | 0% to 20% CPR | 11 | % | 353 | Prepayment speed | 0% to 19% CPR | 11% | |||||||
Loans and leases | 525 | Default rate | 0% to 2% CDR | 1 | % | 410 | Default rate | 0% to 3% CDR | 1% | |||||||
Loans held-for-sale | 2 | Loss severity | 0% to 52% | 17 | % | 1 | Loss severity | 0% to 51% | 17% | |||||||
AFS debt securities, primarily non-agency residential | 555 | Price | $0 to td41 | $75 | ||||||||||||
Other debt securities carried at fair value - Non-agency residential | 296 | |||||||||||||||
Instruments backed by commercial real estate assets | $ | 299 | Discounted cash flow | Yield | 0% to 25% | 9 | % | $ | 361 | Discounted cash flow | Yield | 0% to 25% | 7% | |||
Trading account assets – Corporate securities, trading loans and other | 265 | Price | $0 to td00 | $67 | 272 | Price | $0 to td02 | $78 | ||||||||
Trading account assets – Mortgage trading loans, ABS and other MBS | 34 | 89 | ||||||||||||||
Commercial loans, debt securities and other | $ | 3,592 | Discounted cash flow, Market comparables | Yield | 0% to 12% | 5 | % | $ | 3,293 | Discounted cash flow, Market comparables | Yield | 1% to 46% | 14% | |||
Trading account assets – Corporate securities, trading loans and other | 1,444 | Prepayment speed | 10% to 20% | 15 | % | 1,262 | Prepayment speed | 10% to 20% | 14% | |||||||
Trading account assets – Non-U.S. sovereign debt | 401 | Default rate | 3% to 4% | 4 | % | 469 | Default rate | 3% to 4% | 4% | |||||||
Trading account assets – Mortgage trading loans, ABS and other MBS | 1,020 | Loss severity | 35% to 40% | 38 | % | 1,037 | Loss severity | 35% to 40% | 38% | |||||||
AFS debt securities – Other taxable securities | 43 | Price | $0 to td41 | $66 | ||||||||||||
Loans and leases | 1 | |||||||||||||||
Loans held-for-sale | 683 | 525 | Discounted cash flow, Market comparables | Price | $0 to td41 | $65 | ||||||||||
Other assets, primarily auction rate securities | $ | 999 | Discounted cash flow, Market comparables | Price | td0 to td00 | $96 | $ | 950 | Price | td0 to td00 | $96 | |||||
MSRs | $ | 2,296 | Discounted cash flow | Weighted-average life, fixed rate (4) | 0 to 14 years | 6 years | $ | 2,190 | Weighted-average life, fixed rate (4) | 0 to 14 years | 6 years | |||||
Weighted-average life, variable rate (4) | 0 to 10 years | 3 years | Discounted cash flow | Weighted-average life, variable rate (4) | 0 to 10 years | 3 years | ||||||||||
Option Adjusted Spread, fixed rate | 9% to 14% | 10 | % | Option-adjusted spread, fixed rate | 9% to 14% | 10% | ||||||||||
Option Adjusted Spread, variable rate | 9% to 15% | 12 | % | Option-adjusted spread, variable rate | 9% to 15% | 12% | ||||||||||
Structured liabilities | ||||||||||||||||
Long-term debt | $ | (1,351 | ) | Discounted cash flow, Market comparables, Industry standard derivative pricing (2) | Equity correlation | 7% to 100% | 68 | % | $ | (923 | ) | Discounted cash flow, Market comparables, Industry standard derivative pricing (2) | Equity correlation | 9% to 100% | 61% | |
Long-dated equity volatilities | 4% to 70% | 23 | % | Long-dated equity volatilities | 4% to 79% | 27% | ||||||||||
Yield | 7.5 | % | n/a | Yield | 7% to 46% | 18% | ||||||||||
Price | $0 to td00 | $73 | Price | $0 to td00 | $70 | |||||||||||
Net derivative assets | ||||||||||||||||
Credit derivatives | $ | (298 | ) | Discounted cash flow, Stochastic recovery correlation model | Yield | 2% to 4% | 3 | % | $ | (304 | ) | Discounted cash flow, Stochastic recovery correlation model | Yield | 2% to 12% | 4% | |
Upfront points | 0 points to 100 points | 71 points | Upfront points | 0 points to 100 points | 69 points | |||||||||||
Credit correlation | 22% to 80% | 38 | % | Credit correlation | 70% | n/a | ||||||||||
Prepayment speed | 15% to 20% CPR | 15 | % | Prepayment speed | 15% to 20% CPR | 15% | ||||||||||
Default rate | 1% to 4% CDR | 2 | % | Default rate | 1% to 4% CDR | 2% | ||||||||||
Loss severity | 35 | % | n/a | Loss severity | 35% | n/a | ||||||||||
Price | td to $83 | $73 | Price | $0 to td01 | $77 | |||||||||||
Equity derivatives | $ | (1,508 | ) | Industry standard derivative pricing (2) | Equity correlation | 7% to 100% | 68 | % | $ | (857 | ) | Industry standard derivative pricing (2) | Equity correlation | 9% to 100% | 61% | |
Long-dated equity volatilities | 4% to 70% | 23 | % | Long-dated equity volatilities | 4% to 79% | 27% | ||||||||||
Commodity derivatives | $ | 2 | Discounted cash flow, Industry standard derivative pricing (2) | Natural gas forward price | td/MMBtu to $5/MMBtu | $3/MMBtu | $ | 11 | Discounted cash flow, Industry standard derivative pricing (2) | Natural gas forward price | td/MMBtu to td1/MMBtu | $3/MMBtu | ||||
Correlation | 65% to 93% | 79 | % | Correlation | 53% to 89% | 78% | ||||||||||
Volatilities | 11% to 196% | 60 | % | Volatilities | 13% to 495% | 55% | ||||||||||
Interest rate derivatives | $ | 666 | Industry standard derivative pricing (3) | Correlation (IR/IR) | 15% to 70% | 43 | % | $ | 580 | Industry standard derivative pricing (3) | Correlation (IR/IR) | 15% to 80% | 53% | |||
Correlation (FX/IR) | 0% to 46% | 1 | % | Correlation (FX/IR) | 0% to 46% | 1% | ||||||||||
Long-dated inflation rates | -18% to 34% | 2 | % | Long-dated inflation rates | -20% to 38% | 2% | ||||||||||
Long-dated inflation volatilities | 0% to 1% | 1 | % | Long-dated inflation volatilities | 0% to 1% | 1% | ||||||||||
Total net derivative assets | $ | (1,138 | ) | $ | (570 | ) |
(1) | 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 |
(2) | Includes models such as Monte Carlo simulation and Black-Scholes. |
(3) | Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates. |
(4) | The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions. |
Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017 | ||||||||||||||||
(Dollars in millions) | Inputs | Inputs | ||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | ||||||
Loans and Securities (1) | ||||||||||||||||
Instruments backed by residential real estate assets | $ | 871 | Discounted cash flow | Yield | 0% to 25% | 6 | % | $ | 871 | Discounted cash flow | Yield | 0% to 25% | 6% | |||
Trading account assets – Mortgage trading loans, ABS and other MBS | 298 | Prepayment speed | 0% to 22% CPR | 12 | % | 298 | Prepayment speed | 0% to 22% CPR | 12% | |||||||
Loans and leases | 570 | Default rate | 0% to 3% CDR | 1 | % | 570 | Default rate | 0% to 3% CDR | 1% | |||||||
Loans held-for-sale | 3 | Loss severity | 0% to 53% | 17 | % | 3 | Loss severity | 0% to 53% | 17% | |||||||
Instruments backed by commercial real estate assets | $ | 286 | Discounted cash flow | Yield | 0% to 25% | 9 | % | $ | 286 | Discounted cash flow | Yield | 0% to 25% | 9% | |||
Trading account assets – Corporate securities, trading loans and other | 244 | Price | $0 to td00 | $67 | 244 | Price | $0 to td00 | $67 | ||||||||
Trading account assets – Mortgage trading loans, ABS and other MBS | 42 | 42 | ||||||||||||||
Commercial loans, debt securities and other | $ | 4,023 | Discounted cash flow, Market comparables | Yield | 0% to 12% | 5 | % | $ | 4,023 | Discounted cash flow, Market comparables | Yield | 0% to 12% | 5% | |||
Trading account assets – Corporate securities, trading loans and other | 1,613 | Prepayment speed | 10% to 20% | 16 | % | 1,613 | Prepayment speed | 10% to 20% | 16% | |||||||
Trading account assets – Non-U.S. sovereign debt | 556 | Default rate | 3% to 4% | 4 | % | 556 | Default rate | 3% to 4% | 4% | |||||||
Trading account assets – Mortgage trading loans, ABS and other MBS | 1,158 | Loss severity | 35% to 40% | 37 | % | 1,158 | Loss severity | 35% to 40% | 37% | |||||||
AFS debt securities – Other taxable securities | 8 | Price | $0 to td45 | $63 | 8 | Price | $0 to td45 | $63 | ||||||||
Loans and leases | 1 | 1 | ||||||||||||||
Loans held-for-sale | 687 | 687 | ||||||||||||||
Auction rate securities | $ | 977 | Discounted cash flow, Market comparables | Price | td0 to td00 | $94 | $ | 977 | Discounted cash flow, Market comparables | Price | td0 to td00 | $94 | ||||
Trading account assets – Corporate securities, trading loans and other | 7 | 7 | ||||||||||||||
AFS debt securities – Other taxable securities | 501 | 501 | ||||||||||||||
AFS debt securities – Tax-exempt securities | 469 | 469 | ||||||||||||||
MSRs | $ | 2,302 | Discounted cash flow | Weighted-average life, fixed rate (4) | 0 to 14 years | 5 years | $ | 2,302 | Discounted cash flow | Weighted-average life, fixed rate (4) | 0 to 14 years | 5 years | ||||
Weighted-average life, variable rate (4) | 0 to 10 years | 3 years | Weighted-average life, variable rate (4) | 0 to 10 years | 3 years | |||||||||||
Option Adjusted Spread, fixed rate | 9% to 14% | 10 | % | Option-adjusted spread, fixed rate | 9% to 14% | 10% | ||||||||||
Option Adjusted Spread, variable rate | 9% to 15% | 12 | % | Option-adjusted spread, variable rate | 9% to 15% | 12% | ||||||||||
Structured liabilities | ||||||||||||||||
Long-term debt | $ | (1,863 | ) | Discounted cash flow, Market comparables, Industry standard derivative pricing (2) | Equity correlation | 15% to 100% | 63 | % | $ | (1,863 | ) | Discounted cash flow, Market comparables, Industry standard derivative pricing (2) | Equity correlation | 15% to 100% | 63% | |
Long-dated equity volatilities | 4% to 84% | 22 | % | Long-dated equity volatilities | 4% to 84% | 22% | ||||||||||
Yield | 7.5 | % | n/a | Yield | 7.5% | n/a | ||||||||||
Price | $0 to td00 | $66 | Price | $0 to td00 | $66 | |||||||||||
Net derivative assets | ||||||||||||||||
Credit derivatives | $ | (282 | ) | Discounted cash flow, Stochastic recovery correlation model | Yield | 1% to 5% | 3 | % | $ | (282 | ) | Discounted cash flow, Stochastic recovery correlation model | Yield | 1% to 5% | 3% | |
Upfront points | 0 points to 100 points | 71 points | Upfront points | 0 points to 100 points | 71 points | |||||||||||
Credit correlation | 35% to 83% | 42 | % | Credit correlation | 35% to 83% | 42% | ||||||||||
Prepayment speed | 15% to 20% CPR | 16 | % | Prepayment speed | 15% to 20% CPR | 16% | ||||||||||
Default rate | 1% to 4% CDR | 2 | % | Default rate | 1% to 4% CDR | 2% | ||||||||||
Loss severity | 35 | % | n/a | Loss severity | 35% | n/a | ||||||||||
Price | $0 to td02 | $82 | Price | $0 to td02 | $82 | |||||||||||
Equity derivatives | $ | (2,059 | ) | Industry standard derivative pricing (2) | Equity correlation | 15% to 100% | 63 | % | $ | (2,059 | ) | Industry standard derivative pricing (2) | Equity correlation | 15% to 100% | 63% | |
Long-dated equity volatilities | 4% to 84% | 22 | % | Long-dated equity volatilities | 4% to 84% | 22% | ||||||||||
Commodity derivatives | $ | (3 | ) | Discounted cash flow, Industry standard derivative pricing (2) | Natural gas forward price | td/MMBtu to $5/MMBtu | $3/MMBtu | $ | (3 | ) | Discounted cash flow, Industry standard derivative pricing (2) | Natural gas forward price | td/MMBtu to $5/MMBtu | $3/MMBtu | ||
Correlation | 71% to 87% | 81 | % | Correlation | 71% to 87% | 81% | ||||||||||
Volatilities | 26% to 132% | 57 | % | Volatilities | 26% to 132% | 57% | ||||||||||
Interest rate derivatives | $ | 630 | Industry standard derivative pricing (3) | Correlation (IR/IR) | 15% to 92% | 50 | % | $ | 630 | Industry standard derivative pricing (3) | Correlation (IR/IR) | 15% to 92% | 50% | |||
Correlation (FX/IR) | 0% to 46% | 1 | % | Correlation (FX/IR) | 0% to 46% | 1% | ||||||||||
Long-dated inflation rates | -14% to 38% | 4 | % | Long-dated inflation rates | -14% to 38% | 4% | ||||||||||
Long-dated inflation volatilities | 0% to 1% | 1 | % | Long-dated inflation volatilities | 0% to 1% | 1% | ||||||||||
Total net derivative assets | $ | (1,714 | ) | $ | (1,714 | ) |
(1) | 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 |
(2) | Includes models such as Monte Carlo simulation and Black-Scholes. |
(3) | Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates. |
(4) | 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 America106 |
Assets Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||||
March 31, 2018 | Three Months Ended March 31, 2018 | September 30, 2018 | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
(Dollars in millions) | Level 2 | Level 3 | Gains (Losses) | Level 2 | Level 3 | Gains (Losses) | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Loans held-for-sale | $ | 13 | $ | — | $ | (2 | ) | $ | 45 | $ | 12 | $ | (2 | ) | $ | (2 | ) | |||||||||
Loans and leases (1) | — | 273 | (98 | ) | — | 492 | (63 | ) | (194 | ) | ||||||||||||||||
Foreclosed properties (2, 3) | — | 61 | (17 | ) | — | 87 | (8 | ) | (22 | ) | ||||||||||||||||
Other assets | 47 | — | (7 | ) | 294 | 3 | (22 | ) | (58 | ) | ||||||||||||||||
March 31, 2017 | Three Months Ended March 31, 2017 | September 30, 2017 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Loans held-for-sale | $ | 69 | $ | 18 | $ | (4 | ) | $ | 70 | $ | 16 | $ | — | $ | (4 | ) | ||||||||||
Loans and leases (1) | — | 438 | (123 | ) | — | 813 | (152 | ) | (307 | ) | ||||||||||||||||
Foreclosed properties (2, 3) | — | 82 | (25 | ) | — | 79 | (21 | ) | (35 | ) | ||||||||||||||||
Other assets | 91 | — | (86 | ) | 353 | — | (1 | ) | (121 | ) |
(1) | Includes $ |
(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 $ |
Quantitative Information about Nonrecurring Level 3 Fair Value Measurements | ||||||||||||||||||||||||
Inputs | Inputs | |||||||||||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | ||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||
Loans and leases backed by residential real estate assets | $ | 273 | Market comparables | OREO discount | 13% to 59% | 23 | % | $ | 492 | Market comparables | OREO discount | 13% to 59% | 24 | % | ||||||||||
Costs to sell | 8% to 26% | 9 | % | Costs to sell | 8% to 26% | 9 | % | |||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||
Loans and leases backed by residential real estate assets | $ | 894 | Market comparables | OREO discount | 15% to 58% | 23 | % | $ | 894 | Market comparables | OREO discount | 15% to 58% | 23 | % | ||||||||||
Costs to sell | 5% to 49% | 7 | % | Costs to sell | 5% to 49% | 7 | % |
107Bank of America |
Fair Value Option Elections | Fair Value Option Elections | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||
(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 | 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 | $ | 68,556 | $ | 68,539 | $ | 17 | $ | 52,906 | $ | 52,907 | $ | (1 | ) | $ | 52,524 | $ | 52,498 | $ | 26 | $ | 52,906 | $ | 52,907 | $ | (1 | ) | ||||||||||||||||||||
Loans reported as trading account assets (1) | 5,939 | 13,419 | (7,480 | ) | 5,735 | 11,804 | (6,069 | ) | 5,538 | 12,414 | (6,876 | ) | 5,735 | 11,804 | (6,069 | ) | ||||||||||||||||||||||||||||||
Trading inventory – other | 12,622 | n/a | n/a | 12,027 | n/a | n/a | 15,676 | n/a | n/a | 12,027 | n/a | n/a | ||||||||||||||||||||||||||||||||||
Consumer and commercial loans | 5,989 | 6,026 | (37 | ) | 5,710 | 5,744 | (34 | ) | 5,731 | 5,776 | (45 | ) | 5,710 | 5,744 | (34 | ) | ||||||||||||||||||||||||||||||
Loans held-for-sale | 3,091 | 4,639 | (1,548 | ) | 2,156 | 3,717 | (1,561 | ) | 3,116 | 4,375 | (1,259 | ) | 2,156 | 3,717 | (1,561 | ) | ||||||||||||||||||||||||||||||
Other assets | 3 | n/a | n/a | 3 | n/a | n/a | 3 | n/a | n/a | 3 | n/a | n/a | ||||||||||||||||||||||||||||||||||
Long-term deposits | 435 | 414 | 21 | 449 | 421 | 28 | 529 | 496 | 33 | 449 | 421 | 28 | ||||||||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 35,116 | 35,127 | (11 | ) | 36,182 | 36,187 | (5 | ) | 34,242 | 34,252 | (10 | ) | 36,182 | 36,187 | (5 | ) | ||||||||||||||||||||||||||||||
Short-term borrowings | 2,284 | 2,284 | — | 1,494 | 1,494 | — | 1,789 | 1,789 | — | 1,494 | 1,494 | — | ||||||||||||||||||||||||||||||||||
Unfunded loan commitments | 120 | n/a | n/a | 120 | n/a | n/a | 70 | n/a | n/a | 120 | n/a | n/a | ||||||||||||||||||||||||||||||||||
Long-term debt (2) | 30,062 | 30,381 | (319 | ) | 31,786 | 31,512 | 274 | 28,677 | 29,265 | (588 | ) | 31,786 | 31,512 | 274 |
(1) | A significant portion of the loans reported as trading account assets and loans held-for-sale are distressed loans that |
(2) | Includes structured liabilities with a fair value of $ |
Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option | ||||||||||||||||||||||||||||||||||
Trading Account Profits | Other Income | Total | Trading Account Profits | Other Income | Total | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2018 | Three Months Ended September 30 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Trading Account Profits | Other Income | Total | 2018 | 2017 | |||||||||||||||||||||||||||||
Loans reported as trading account assets | $ | 103 | $ | — | $ | 103 | $ | 74 | $ | — | $ | 74 | $ | 75 | $ | — | $ | 75 | ||||||||||||||||
Trading inventory – other (1) | 595 | — | 595 | 1,693 | — | 1,693 | 1,217 | — | 1,217 | |||||||||||||||||||||||||
Consumer and commercial loans | 106 | (21 | ) | 85 | 176 | 8 | 184 | 10 | (4 | ) | 6 | |||||||||||||||||||||||
Loans held-for-sale (2) | 1 | — | 1 | — | 8 | 8 | — | 92 | 92 | |||||||||||||||||||||||||
Long-term debt (3, 4) | 819 | (41 | ) | 778 | 143 | (19 | ) | 124 | (416 | ) | (38 | ) | (454 | ) | ||||||||||||||||||||
Other (5) | 7 | 8 | 15 | 2 | 52 | 54 | (7 | ) | 22 | 15 | ||||||||||||||||||||||||
Total | $ | 1,631 | $ | (54 | ) | $ | 1,577 | $ | 2,088 | $ | 49 | $ | 2,137 | $ | 879 | $ | 72 | $ | 951 | |||||||||||||||
Three Months Ended March 31, 2017 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||||||||||||
Loans reported as trading account assets | $ | 150 | $ | — | $ | 150 | $ | 145 | $ | — | $ | 145 | $ | 272 | $ | — | $ | 272 | ||||||||||||||||
Trading inventory – other (1) | 1,151 | — | 1,151 | 3,649 | — | 3,649 | 2,890 | — | 2,890 | |||||||||||||||||||||||||
Consumer and commercial loans | 5 | 19 | 24 | 301 | (24 | ) | 277 | 19 | 35 | 54 | ||||||||||||||||||||||||
Loans held-for-sale (2) | 1 | 84 | 85 | 1 | 12 | 13 | — | 275 | 275 | |||||||||||||||||||||||||
Long-term debt (3, 4) | (162 | ) | (37 | ) | (199 | ) | 1,497 | (75 | ) | 1,422 | (471 | ) | (109 | ) | (580 | ) | ||||||||||||||||||
Other (5) | (58 | ) | 43 | (15 | ) | 15 | 75 | 90 | (60 | ) | 64 | 4 | ||||||||||||||||||||||
Total | $ | 1,087 | $ | 109 | $ | 1,196 | $ | 5,608 | $ | (12 | ) | $ | 5,596 | $ | 2,650 | $ | 265 | $ | 2,915 |
(1) | The gains in trading account profits are primarily offset by losses on trading liabilities that hedge these assets. |
(2) | Includes the value of IRLCs on funded loans, including those sold during the period. |
(3) | The majority of the net gains (losses) in trading account profits relate to the embedded derivatives in structured liabilities and are 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 12 – Accumulated Other Comprehensive Income (Loss). For additional 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 2017 Annual Report on Form 10-K. |
(5) | Includes gains (losses) on federal funds sold and securities borrowed or purchased under agreements to resell, long-term deposits, federal funds purchased and securities loaned or sold under agreements to repurchase, short-term borrowings and unfunded loan commitments. |
Gains (Losses) Related to Borrower-specific Credit Risk for Assets Accounted for Under the Fair Value Option | ||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Loans reported as trading account assets | $ | 13 | $ | 13 | $ | 36 | $ | 5 | $ | 47 | $ | 25 | ||||||||||
Consumer and commercial loans | (17 | ) | 19 | 8 | (10 | ) | (19 | ) | 31 | |||||||||||||
Loans held-for-sale | (3 | ) | — | 5 | (2 | ) | 6 | (3 | ) |
Bank of America108 |
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||
Carrying Value | Level 2 | Level 3 | Total | Carrying Value | Level 2 | Level 3 | Total | |||||||||||||||||||||||
(Dollars in millions) | March 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||
Loans | $ | 902,219 | $ | 67,137 | $ | 841,274 | $ | 908,411 | $ | 895,452 | $ | 59,840 | $ | 839,262 | $ | 899,102 | ||||||||||||||
Loans held-for-sale | 9,227 | 8,377 | 1,530 | 9,907 | 5,576 | 4,287 | 1,331 | 5,618 | ||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||
Deposits (1) | 1,328,664 | 1,327,961 | — | 1,327,961 | 1,345,649 | 1,345,360 | — | 1,345,360 | ||||||||||||||||||||||
Long-term debt | 232,256 | 237,851 | 1,351 | 239,202 | 234,100 | 238,908 | 923 | 239,831 | ||||||||||||||||||||||
Commercial unfunded lending commitments (2) | 902 | 120 | 4,253 | 4,373 | 862 | 70 | 4,345 | 4,415 | ||||||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||
Loans | $ | 904,399 | $ | 68,586 | $ | 849,576 | $ | 918,162 | $ | 904,399 | $ | 68,586 | $ | 849,576 | $ | 918,162 | ||||||||||||||
Loans held-for-sale | 11,430 | 10,521 | 909 | 11,430 | 11,430 | 10,521 | 909 | 11,430 | ||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||
Deposits (1) | 1,309,545 | 1,309,398 | — | 1,309,398 | 1,309,545 | 1,309,398 | — | 1,309,398 | ||||||||||||||||||||||
Long-term debt | 227,402 | 235,126 | 1,863 | 236,989 | 227,402 | 235,126 | 1,863 | 236,989 | ||||||||||||||||||||||
Commercial unfunded lending commitments (2) | 897 | 120 | 3,908 | 4,028 | 897 | 120 | 3,908 | 4,028 |
(1) | Includes demand deposits of $534.4 billion and $519.6 billion with no stated maturities at September 30, 2018 and December 31, 2017. |
(2) |
Results of Business Segments and All Other | |||||||||||||||||||||||
At and for the three months ended September 30 | Total Corporation (1) | Consumer Banking | Global Wealth & Investment Management | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Net interest income (FTE basis) | $ | 12,021 | $ | 11,401 | $ | 6,863 | $ | 6,212 | $ | 1,536 | $ | 1,496 | |||||||||||
Noninterest income | 10,907 | 10,678 | 2,540 | 2,562 | 3,247 | 3,124 | |||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 22,928 | 22,079 | 9,403 | 8,774 | 4,783 | 4,620 | |||||||||||||||||
Provision for credit losses | 716 | 834 | 870 | 967 | 13 | 16 | |||||||||||||||||
Noninterest expense | 13,067 | 13,394 | 4,355 | 4,461 | 3,414 | 3,369 | |||||||||||||||||
Income before income taxes (FTE basis) | 9,145 | 7,851 | 4,178 | 3,346 | 1,356 | 1,235 | |||||||||||||||||
Income tax expense (FTE basis) | 1,978 | 2,427 | 1,065 | 1,260 | 346 | 465 | |||||||||||||||||
Net income | $ | 7,167 | $ | 5,424 | $ | 3,113 | $ | 2,086 | $ | 1,010 | $ | 770 | |||||||||||
Period-end total assets | $ | 2,338,833 | $ | 2,284,174 | $ | 765,497 | $ | 742,513 | $ | 276,146 | $ | 276,187 | |||||||||||
Global Banking | Global Markets | All Other | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Net interest income (FTE basis) | $ | 2,706 | $ | 2,642 | $ | 754 | $ | 899 | $ | 162 | $ | 152 | |||||||||||
Noninterest income (loss) | 2,032 | 2,345 | 3,089 | 3,002 | (1 | ) | (355 | ) | |||||||||||||||
Total revenue, net of interest expense (FTE basis) | 4,738 | 4,987 | 3,843 | 3,901 | 161 | (203 | ) | ||||||||||||||||
Provision for credit losses | (70 | ) | 48 | (2 | ) | (6 | ) | (95 | ) | (191 | ) | ||||||||||||
Noninterest expense | 2,120 | 2,119 | 2,612 | 2,711 | 566 | 734 | |||||||||||||||||
Income (loss) before income taxes (FTE basis) | 2,688 | 2,820 | 1,233 | 1,196 | (310 | ) | (746 | ) | |||||||||||||||
Income tax expense (benefit) (FTE basis) | 699 | 1,062 | 321 | 440 | (453 | ) | (800 | ) | |||||||||||||||
Net income | $ | 1,989 | $ | 1,758 | $ | 912 | $ | 756 | $ | 143 | $ | 54 | |||||||||||
Period-end total assets | $ | 430,846 | $ | 423,185 | $ | 646,359 | $ | 629,222 | $ | 219,985 | $ | 213,067 |
(1) | There were no material intersegment revenues. |
Results of Business Segments and All Other | ||||||||||||||||||||
At and for the three months ended March 31 | Total Corporation (1) | Consumer Banking | Global Wealth & Investment Management | |||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||
Net interest income (FTE basis) | $ | 11,758 | $ | 11,255 | $ | 6,510 | $ | 5,781 | $ | 1,594 | $ | 1,560 | ||||||||
Noninterest income | 11,517 | 11,190 | 2,522 | 2,503 | 3,262 | 3,032 | ||||||||||||||
Total revenue, net of interest expense (FTE basis) | 23,275 | 22,445 | 9,032 | 8,284 | 4,856 | 4,592 | ||||||||||||||
Provision for credit losses | 834 | 835 | 935 | 838 | 38 | 23 | ||||||||||||||
Noninterest expense | 13,897 | 14,093 | 4,480 | 4,410 | 3,428 | 3,329 | ||||||||||||||
Income before income taxes (FTE basis) | 8,544 | 7,517 | 3,617 | 3,036 | 1,390 | 1,240 | ||||||||||||||
Income tax expense (FTE basis) | 1,626 | 2,180 | 922 | 1,144 | 355 | 467 | ||||||||||||||
Net income | $ | 6,918 | $ | 5,337 | $ | 2,695 | $ | 1,892 | $ | 1,035 | $ | 773 | ||||||||
Period-end total assets | $ | 2,328,478 | $ | 2,247,794 | $ | 774,256 | $ | 734,087 | $ | 279,331 | $ | 291,177 | ||||||||
Global Banking | Global Markets | All Other | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Net interest income (FTE basis) | $ | 2,640 | $ | 2,602 | $ | 870 | $ | 1,049 | $ | 144 | $ | 263 | ||||||||
Noninterest income (loss) | 2,294 | 2,353 | 3,916 | 3,659 | (477 | ) | (357 | ) | ||||||||||||
Total revenue, net of interest expense (FTE basis) | 4,934 | 4,955 | 4,786 | 4,708 | (333 | ) | (94 | ) | ||||||||||||
Provision for credit losses | 16 | 17 | (3 | ) | (17 | ) | (152 | ) | (26 | ) | ||||||||||
Noninterest expense | 2,195 | 2,163 | 2,818 | 2,757 | 976 | 1,434 | ||||||||||||||
Income (loss) before income taxes (FTE basis) | 2,723 | 2,775 | 1,971 | 1,968 | (1,157 | ) | (1,502 | ) | ||||||||||||
Income tax expense (benefit) (FTE basis) | 707 | 1,046 | 513 | 671 | (871 | ) | (1,148 | ) | ||||||||||||
Net income (loss) | $ | 2,016 | $ | 1,729 | $ | 1,458 | $ | 1,297 | $ | (286 | ) | $ | (354 | ) | ||||||
Period-end total assets | $ | 424,134 | $ | 416,763 | $ | 648,605 | $ | 604,014 | $ | 202,152 | $ | 201,753 |
Business Segment Reconciliations | ||||||||
Three Months Ended March 31 | ||||||||
2018 | 2017 | |||||||
Segments’ total revenue, net of interest expense (FTE basis) | $ | 23,608 | $ | 22,539 | ||||
Adjustments (2): | ||||||||
ALM activities | 116 | (45 | ) | |||||
Liquidating businesses and other | (449 | ) | (49 | ) | ||||
FTE basis adjustment | (150 | ) | (197 | ) | ||||
Consolidated revenue, net of interest expense | $ | 23,125 | $ | 22,248 | ||||
Segments’ total net income | 7,204 | 5,691 | ||||||
Adjustments, net-of-taxes (2): | ||||||||
ALM activities | (54 | ) | (179 | ) | ||||
Liquidating businesses and other | (232 | ) | (175 | ) | ||||
Consolidated net income | $ | 6,918 | $ | 5,337 | ||||
March 31 | ||||||||
2018 | 2017 | |||||||
Segments’ total assets | $ | 2,126,326 | $ | 2,046,041 | ||||
Adjustments (2): | ||||||||
ALM activities, including securities portfolio | 659,849 | 633,028 | ||||||
Liquidating businesses and other (3) | 85,631 | 112,153 | ||||||
Elimination of segment asset allocations to match liabilities | (543,328 | ) | (543,428 | ) | ||||
Consolidated total assets | $ | 2,328,478 | $ | 2,247,794 |
Results of Business Segments and All Other | |||||||||||||||||||||||
At and for the nine months ended September 30 | Total Corporation (1) | Consumer Banking | Global Wealth & Investment Management | ||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Net interest income (FTE basis) | $ | 35,583 | $ | 33,879 | $ | 19,993 | $ | 17,953 | $ | 4,673 | $ | 4,653 | |||||||||||
Noninterest income | 33,383 | 33,711 | 7,653 | 7,614 | 9,675 | 9,254 | |||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 68,966 | 67,590 | 27,646 | 25,567 | 14,348 | 13,907 | |||||||||||||||||
Provision for credit losses | 2,377 | 2,395 | 2,749 | 2,639 | 63 | 50 | |||||||||||||||||
Noninterest expense | 40,248 | 41,469 | 13,231 | 13,286 | 10,235 | 10,085 | |||||||||||||||||
Income before income taxes (FTE basis) | 26,341 | 23,726 | 11,666 | 9,642 | 4,050 | 3,772 | |||||||||||||||||
Income tax expense (FTE basis) | 5,472 | 7,859 | 2,975 | 3,636 | 1,033 | 1,422 | |||||||||||||||||
Net income | $ | 20,869 | $ | 15,867 | $ | 8,691 | $ | 6,006 | $ | 3,017 | $ | 2,350 | |||||||||||
Period-end total assets | $ | 2,338,833 | $ | 2,284,174 | $ | 765,497 | $ | 742,513 | $ | 276,146 | $ | 276,187 | |||||||||||
Global Banking | Global Markets | All Other | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Net interest income (FTE basis) | $ | 8,057 | $ | 7,786 | $ | 2,425 | $ | 2,812 | $ | 435 | $ | 675 | |||||||||||
Noninterest income (loss) | 6,537 | 7,194 | 10,425 | 9,743 | (907 | ) | (94 | ) | |||||||||||||||
Total revenue, net of interest expense (FTE basis) | 14,594 | 14,980 | 12,850 | 12,555 | (472 | ) | 581 | ||||||||||||||||
Provision for credit losses | (77 | ) | 80 | (6 | ) | 2 | (352 | ) | (376 | ) | |||||||||||||
Noninterest expense | 6,471 | 6,435 | 8,145 | 8,117 | 2,166 | 3,546 | |||||||||||||||||
Income (loss) before income taxes (FTE basis) | 8,200 | 8,465 | 4,711 | 4,436 | (2,286 | ) | (2,589 | ) | |||||||||||||||
Income tax expense (benefit) (FTE basis) | 2,132 | 3,192 | 1,225 | 1,553 | (1,893 | ) | (1,944 | ) | |||||||||||||||
Net income (loss) | $ | 6,068 | $ | 5,273 | $ | 3,486 | $ | 2,883 | $ | (393 | ) | $ | (645 | ) | |||||||||
Period-end total assets | $ | 430,846 | $ | 423,185 | $ | 646,359 | $ | 629,222 | $ | 219,985 | $ | 213,067 |
(1) | There were no material intersegment revenues. |
Business Segment Reconciliations | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Segments’ total revenue, net of interest expense (FTE basis) | $ | 22,767 | $ | 22,282 | $ | 69,438 | $ | 67,009 | |||||||
Adjustments (1): | |||||||||||||||
ALM activities | 273 | 273 | 118 | 332 | |||||||||||
Liquidating businesses, eliminations and other | (112 | ) | (476 | ) | (590 | ) | 249 | ||||||||
FTE basis adjustment | (151 | ) | (240 | ) | (455 | ) | (674 | ) | |||||||
Consolidated revenue, net of interest expense | $ | 22,777 | $ | 21,839 | $ | 68,511 | $ | 66,916 | |||||||
Segments’ total net income | 7,024 | 5,370 | 21,262 | 16,512 | |||||||||||
Adjustments, net-of-taxes (1): | |||||||||||||||
ALM activities | 88 | 57 | (294 | ) | (208 | ) | |||||||||
Liquidating businesses, eliminations and other | 55 | (3 | ) | (99 | ) | (437 | ) | ||||||||
Consolidated net income | $ | 7,167 | $ | 5,424 | $ | 20,869 | $ | 15,867 | |||||||
September 30 | |||||||||||||||
2018 | 2017 | ||||||||||||||
Segments’ total assets | $ | 2,118,848 | $ | 2,071,107 | |||||||||||
Adjustments (1): | |||||||||||||||
ALM activities, including securities portfolio | 675,886 | 635,353 | |||||||||||||
Elimination of segment asset allocations to match liabilities | (531,297 | ) | (515,007 | ) | |||||||||||
Other | 75,396 | 92,721 | |||||||||||||
Consolidated total assets | $ | 2,338,833 | $ | 2,284,174 |
Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments. |
Bank of America |
Noninterest Income by Business Segment and All Other | Noninterest Income by Business Segment and All Other | Noninterest Income by Business Segment and All Other | ||||||||||||||||||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | Global Wealth & Investment Management | Total Corporation | Consumer Banking | Global Wealth & Investment Management | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||
Card income | ||||||||||||||||||||||||||||||||||||||||||||||
Interchange fees | $ | 971 | $ | 958 | $ | 804 | $ | 784 | $ | 11 | $ | 26 | $ | 978 | $ | 941 | $ | 802 | $ | 768 | $ | 22 | $ | 29 | ||||||||||||||||||||||
Other card income | 486 | 491 | 475 | 440 | 10 | 10 | 492 | 488 | 479 | 475 | 11 | 11 | ||||||||||||||||||||||||||||||||||
Total card income | 1,457 | 1,449 | 1,279 | 1,224 | 21 | 36 | 1,470 | 1,429 | 1,281 | 1,243 | 33 | 40 | ||||||||||||||||||||||||||||||||||
Service charges | ||||||||||||||||||||||||||||||||||||||||||||||
Deposit-related fees | 1,646 | 1,653 | 1,044 | 1,050 | 19 | 20 | 1,682 | 1,691 | 1,098 | 1,082 | 19 | 19 | ||||||||||||||||||||||||||||||||||
Lending-related fees | 275 | 265 | — | — | — | — | 279 | 277 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total service charges | 1,921 | 1,918 | 1,044 | 1,050 | 19 | 20 | 1,961 | 1,968 | 1,098 | 1,082 | 19 | 19 | ||||||||||||||||||||||||||||||||||
Investment and brokerage services | ||||||||||||||||||||||||||||||||||||||||||||||
Asset management fees | 2,564 | 2,200 | 36 | 33 | 2,528 | 2,167 | 2,576 | 2,367 | 38 | 34 | 2,538 | 2,333 | ||||||||||||||||||||||||||||||||||
Brokerage fees | 1,100 | 1,217 | 46 | 49 | 512 | 624 | 918 | 1,070 | 42 | 40 | 466 | 521 | ||||||||||||||||||||||||||||||||||
Total investment and brokerage services | 3,664 | 3,417 | 82 | 82 | 3,040 | 2,791 | 3,494 | 3,437 | 80 | 74 | 3,004 | 2,854 | ||||||||||||||||||||||||||||||||||
Investment banking income | ||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income | 740 | 779 | — | — | 84 | 51 | 701 | 698 | — | — | 87 | 100 | ||||||||||||||||||||||||||||||||||
Syndication fees | 316 | 400 | — | — | — | — | 241 | 405 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Financial advisory services | 297 | 405 | — | — | — | — | 262 | 374 | — | — | 1 | — | ||||||||||||||||||||||||||||||||||
Total investment banking income | 1,353 | 1,584 | — | — | 84 | 51 | 1,204 | 1,477 | — | — | 88 | 100 | ||||||||||||||||||||||||||||||||||
Trading account profits | 2,699 | 2,331 | 2 | — | 29 | 59 | 1,893 | 1,837 | 2 | 1 | 24 | 29 | ||||||||||||||||||||||||||||||||||
Other income | 423 | 491 | 115 | 147 | 69 | 75 | 885 | 530 | 79 | 162 | 79 | 82 | ||||||||||||||||||||||||||||||||||
Total noninterest income | $ | 11,517 | $ | 11,190 | $ | 2,522 | $ | 2,503 | $ | 3,262 | $ | 3,032 | $ | 10,907 | $ | 10,678 | $ | 2,540 | $ | 2,562 | $ | 3,247 | $ | 3,124 | ||||||||||||||||||||||
Global Banking | Global Markets | All Other | Global Banking | Global Markets | All Other (1) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Three Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||
Card income | ||||||||||||||||||||||||||||||||||||||||||||||
Interchange fees | $ | 134 | $ | 121 | $ | 22 | $ | 22 | $ | — | $ | 5 | $ | 130 | $ | 122 | $ | 24 | $ | 22 | $ | — | $ | — | ||||||||||||||||||||||
Other card income | 1 | 4 | — | — | — | 37 | 2 | 2 | (1 | ) | — | 1 | — | |||||||||||||||||||||||||||||||||
Total card income | 135 | 125 | 22 | 22 | — | 42 | 132 | 124 | 23 | 22 | 1 | — | ||||||||||||||||||||||||||||||||||
Service charges | ||||||||||||||||||||||||||||||||||||||||||||||
Deposit-related fees | 538 | 544 | 40 | 33 | 5 | 6 | 520 | 546 | 41 | 38 | 4 | 6 | ||||||||||||||||||||||||||||||||||
Lending-related fees | 225 | 221 | 50 | 44 | — | — | 234 | 230 | 45 | 47 | — | — | ||||||||||||||||||||||||||||||||||
Total service charges | 763 | 765 | 90 | 77 | 5 | 6 | 754 | 776 | 86 | 85 | 4 | 6 | ||||||||||||||||||||||||||||||||||
Investment and brokerage services | ||||||||||||||||||||||||||||||||||||||||||||||
Asset management fees | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Brokerage fees (1) | 25 | 17 | 488 | 531 | 29 | (4 | ) | |||||||||||||||||||||||||||||||||||||||
Brokerage fees | 28 | 18 | 388 | 496 | (6 | ) | (5 | ) | ||||||||||||||||||||||||||||||||||||||
Total investment and brokerage services | 25 | 17 | 488 | 531 | 29 | (4 | ) | 28 | 18 | 388 | 496 | (6 | ) | (5 | ) | |||||||||||||||||||||||||||||||
Investment banking income | ||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income (1) | 161 | 150 | 579 | 636 | (84 | ) | (58 | ) | ||||||||||||||||||||||||||||||||||||||
Underwriting income | 189 | 105 | 474 | 545 | (49 | ) | (52 | ) | ||||||||||||||||||||||||||||||||||||||
Syndication fees | 298 | 379 | 18 | 21 | — | — | 217 | 380 | 25 | 26 | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||
Financial advisory services | 285 | 396 | 12 | 9 | — | — | 237 | 321 | 24 | 53 | — | — | ||||||||||||||||||||||||||||||||||
Total investment banking income | 744 | 925 | 609 | 666 | (84 | ) | (58 | ) | 643 | 806 | 523 | 624 | (50 | ) | (53 | ) | ||||||||||||||||||||||||||||||
Trading account profits | 61 | 32 | 2,703 | 2,177 | (96 | ) | 63 | 59 | (5 | ) | 1,727 | 1,714 | 81 | 98 | ||||||||||||||||||||||||||||||||
Other income | 566 | 489 | 4 | 186 | (331 | ) | (406 | ) | 416 | 626 | 342 | 61 | (31 | ) | (401 | ) | ||||||||||||||||||||||||||||||
Total noninterest income | $ | 2,294 | $ | 2,353 | $ | 3,916 | $ | 3,659 | $ | (477 | ) | $ | (357 | ) | $ | 2,032 | $ | 2,345 | $ | 3,089 | $ | 3,002 | $ | (1 | ) | $ | (355 | ) |
(1) | All Other |
Noninterest Income by Business Segment and All Other | |||||||||||||||||||||||
Total Corporation | Consumer Banking | Global Wealth & Investment Management | |||||||||||||||||||||
Nine Months Ended September 30 | |||||||||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Card income | |||||||||||||||||||||||
Interchange fees | $ | 3,018 | $ | 2,883 | $ | 2,488 | $ | 2,352 | $ | 59 | $ | 79 | |||||||||||
Other card income | 1,451 | 1,464 | 1,414 | 1,364 | 33 | 31 | |||||||||||||||||
Total card income | 4,469 | 4,347 | 3,902 | 3,716 | 92 | 110 | |||||||||||||||||
Service charges | |||||||||||||||||||||||
Deposit-related fees | 5,009 | 5,040 | 3,214 | 3,194 | 55 | 57 | |||||||||||||||||
Lending-related fees | 827 | 823 | — | — | — | — | |||||||||||||||||
Total service charges | 5,836 | 5,863 | 3,214 | 3,194 | 55 | 57 | |||||||||||||||||
Investment and brokerage services | |||||||||||||||||||||||
Asset management fees | 7,652 | 6,855 | 111 | 98 | 7,541 | 6,757 | |||||||||||||||||
Brokerage fees | 2,964 | 3,459 | 131 | 135 | 1,440 | 1,717 | |||||||||||||||||
Total investment and brokerage services | 10,616 | 10,314 | 242 | 233 | 8,981 | 8,474 | |||||||||||||||||
Investment banking income | |||||||||||||||||||||||
Underwriting income | 2,160 | 2,185 | — | — | 243 | 246 | |||||||||||||||||
Syndication fees | 958 | 1,146 | — | — | — | — | |||||||||||||||||
Financial advisory services | 861 | 1,262 | — | — | 1 | 1 | |||||||||||||||||
Total investment banking income | 3,979 | 4,593 | — | — | 244 | 247 | |||||||||||||||||
Trading account profits | 6,907 | 6,124 | 6 | 2 | 81 | 120 | |||||||||||||||||
Other income | 1,576 | 2,470 | 289 | 469 | 222 | 246 | |||||||||||||||||
Total noninterest income | $ | 33,383 | $ | 33,711 | $ | 7,653 | $ | 7,614 | $ | 9,675 | $ | 9,254 | |||||||||||
Global Banking | Global Markets | All Other (1) | |||||||||||||||||||||
Nine Months Ended September 30 | |||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Card income | |||||||||||||||||||||||
Interchange fees | $ | 400 | $ | 375 | $ | 71 | $ | 68 | $ | — | $ | 9 | |||||||||||
Other card income | 5 | 8 | (1 | ) | (1 | ) | — | 62 | |||||||||||||||
Total card income | 405 | 383 | 70 | 67 | — | 71 | |||||||||||||||||
Service charges | |||||||||||||||||||||||
Deposit-related fees | 1,598 | 1,662 | 126 | 111 | 16 | 16 | |||||||||||||||||
Lending-related fees | 687 | 689 | 140 | 134 | — | — | |||||||||||||||||
Total service charges | 2,285 | 2,351 | 266 | 245 | 16 | 16 | |||||||||||||||||
Investment and brokerage services | |||||||||||||||||||||||
Asset management fees | — | — | — | — | — | — | |||||||||||||||||
Brokerage fees | 71 | 72 | 1,306 | 1,548 | 16 | (13 | ) | ||||||||||||||||
Total investment and brokerage services | 71 | 72 | 1,306 | 1,548 | 16 | (13 | ) | ||||||||||||||||
Investment banking income | |||||||||||||||||||||||
Underwriting income | 458 | 404 | 1,637 | 1,729 | (178 | ) | (194 | ) | |||||||||||||||
Syndication fees | 890 | 1,080 | 68 | 66 | — | — | |||||||||||||||||
Financial advisory services | 782 | 1,177 | 78 | 84 | — | — | |||||||||||||||||
Total investment banking income | 2,130 | 2,661 | 1,783 | 1,879 | (178 | ) | (194 | ) | |||||||||||||||
Trading account profits | 184 | 82 | 6,614 | 5,634 | 22 | 286 | |||||||||||||||||
Other income | 1,462 | 1,645 | 386 | 370 | (783 | ) | (260 | ) | |||||||||||||||
Total noninterest income | $ | 6,537 | $ | 7,194 | $ | 10,425 | $ | 9,743 | $ | (907 | ) | $ | (94 | ) |
(1) | All Other includes eliminations of intercompany transactions. |
Bank of America112 |
113Bank of America |
ABS | Asset-backed securities |
AFS | Available-for-sale |
ALM | Asset and liability management |
AUM | Assets under management |
BANA | Bank of America, National Association |
BHC | Bank holding company |
bps | basis points |
CCAR | Comprehensive Capital Analysis and Review |
CDO | Collateralized debt obligation |
CLTV | Combined loan-to-value |
CVA | Credit valuation adjustment |
DVA | Debit valuation adjustment |
EPS | Earnings per common share |
FASB | Financial Accounting Standards Board |
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 |
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 |
OAS | Option-adjusted spread |
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 |
SCCL | Single-counterparty credit limits |
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 |
(Dollars in millions, except per share information; shares in thousands) | Common Shares Repurchased (1) | Weighted-Average Per Share Price | Shares Purchased as Part of Publicly Announced Programs | Remaining Buyback Authority Amounts (2) | |||||||||
January 1 - 31, 2018 | 36,068 | $ | 31.66 | 36,002 | $ | 8,919 | |||||||
February 1 - 28, 2018 | 87,300 | 31.78 | 62,155 | 6,954 | |||||||||
March 1 - 31, 2018 | 54,570 | 32.18 | 54,474 | 5,201 | |||||||||
Three months ended March 31, 2018 | 177,938 | 31.88 |
(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) | |||||||||
July 1 - 31, 2018 | 32,160 | $ | 30.32 | 32,160 | $ | 19,625 | |||||||
August 1 - 31, 2018 | 76,287 | 31.07 | 72,831 | 17,360 | |||||||||
September 1 - 30, 2018 | 58,578 | 30.74 | 58,558 | 15,560 | |||||||||
Three months ended September 30, 2018 | 167,025 | 30.81 | 163,549 |
(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) |
115Bank of America |
Incorporated by Reference | Incorporated by Reference | |||||||||||
Exhibit No. | Description | Notes | Form | Exhibit | Filing Date | File No. | Description | Notes | Form | Exhibit | Filing Date | File No. |
3(a) | 1 | 10-Q | 3(a) | 7/30/18 | 1-6523 | |||||||
3(b) | 8-K | 3.1 | 3/20/15 | 1-6523 | 8-K | 3.1 | 3/20/15 | 1-6523 | ||||
10 | 1, 2 | |||||||||||
11 | 1 | 1 | ||||||||||
12 | 1 | 1 | ||||||||||
31(a) | 1 | |||||||||||
31 | 1 | 1 | ||||||||||
31(b) | 1 | |||||||||||
32(a) | 1 | |||||||||||
32 | 1 | 1 | ||||||||||
32(b) | 1 | |||||||||||
101.INS | XBRL Instance Document | 1 | XBRL Instance Document | 1 | ||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | 1 | XBRL Taxonomy Extension Schema Document | 1 | ||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | 1 | XBRL Taxonomy Extension Calculation Linkbase Document | 1 | ||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | 1 | XBRL Taxonomy Extension Label Linkbase Document | 1 | ||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | 1 | XBRL Taxonomy Extension Presentation Linkbase Document | 1 | ||||||||
101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document | 1 | XBRL Taxonomy Extension Definitions Linkbase Document | 1 |
Bank of America Corporation Registrant | |||||
Date: | /s/ Rudolf A. Bless | ||||
Rudolf A. Bless Chief Accounting Officer |