Form 8-K BANK OF AMERICA CORP For: Apr 18
1 Q1-22 Financial Highlights1 Q1-22 Business Segment Highlights1,2(B) Consumer Banking Global Wealth and Investment Management Global Banking Global Markets Bank of America Reports Q1-22 Net Income of $7.1 Billion; EPS of $0.80 Average Loan Balances up $70 Billion to $978 Billion; Average Deposits up $240 Billion to $2.0 Trillion Third Consecutive Quarter of Operating Leverage(A) See page 10 for endnotes. Amounts may not total due to rounding. 1 Financial Highlights and Business Segment Highlights are compared to the year-ago quarter unless noted. Loan and deposit balances are shown on an average basis unless noted. 2 The Corporation reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis. 3 Average loans and leases were $22B and $33B for Q1-22 and Q1-21. Excluding PPP loan balances of $2B and $14B, average loan balances were $19B for both periods. 4 Represents the percentage of Consumer checking accounts that are estimated to be the customers' primary account based on multiple relationship factors (e.g., linked to their direct deposit). 5 Average loans and leases were $978B and $908B for Q1-22 and Q1-21. Excluding PPP loan balances of $4B and $23B, average loan balances were $974B and $885B for the same periods. 6 Source: Dealogic as of April 1, 2022. 7 Return on average tangible common shareholders’equity ratio represents a non-GAAP financial measure. For more information, see page 18. • Net income of $7.1 billion, or $0.80 per diluted share • Pretax income declined 14% to $7.9 billion reflecting a smaller reserve release than Q1-21(C) – Pretax, pre-provision income(D) increased 8% to $7.9 billion • Revenue, net of interest expense, increased 2% to $23.2 billion – Net interest income (NII)(E) up $1.4 billion, or 13%, to $11.6 billion, driven by strong deposit growth and investment of excess liquidity, loan growth and benefits from higher long-end interest rates – Noninterest income declined $968 million, or 8%, to $11.7 billion, primarily driven by lower investment banking revenue • Provision for credit losses of $30 million increased $1.9 billion – Net reserve release of $362 million vs. $2.7 billion in Q1-21(C) – Net charge-offs declined 52% from Q1-21 • Noninterest expense decreased 1% to $15.3 billion • Average loan and lease balances up $70 billion, or 8%, to $978 billion led by strong commercial loan growth as well as higher consumer balances; excluding Paycheck Protection Program (PPP), loans grew $89 billion5 • Average deposits up $240 billion, or 13%, to $2.0 trillion • Average Global Liquidity Sources rose $106 billion, or 11%, to $1.1 trillion(F) • Common equity tier 1 (CET1) ratio 10.4% (Standardized)(G); returned $4.4 billion to shareholders through common stock dividends and share repurchases • Return on average common shareholders' equity ratio of 11.0%; return on average tangible common shareholders' equity ratio of 15.5%7 • Net income of $1.6 billion • Sales and trading revenue down 7% to $4.7 billion, including net debit valuation adjustment (DVA) gains of $69 million; Fixed Income Currencies and Commodities (FICC) revenue of $2.7 billion and Equities revenue of $2.0 billion • Excluding net DVA(H), sales and trading revenue down 8% to $4.7 billion; FICC down 19% to $2.6 billion; Equities up 9% to $2.0 billion • Zero days of trading losses in Q1-22 From Chair and CEO Brian Moynihan: “We achieved solid first-quarter results earning $7.1 billion, continuing the momentum from record net income in 2021. Across our businesses, ongoing organic growth combined with good expense management drove operating leverage for the third consecutive quarter. Year over year we grew loans $70 billion and deposits by $240 billion. Our teammates supported our clients while managing through the impacts of the pandemic, war in Ukraine, and an evolving rate environment. Our strong first quarter client activity drove results that allow us to deliver for shareholders while continuing to invest in our people, businesses, and communities.” • Net income of $1.1 billion • Client balances of more than $3.7 trillion, up $234 billion, or 7%, driven by net client flows and higher market valuations • Deposits up 18% to $385 billion • Organic Client Growth – AUM balances of $1.6 trillion, up 7%; $64 billion of AUM flows since Q1-21 – Average loan and lease balances up 12% to $211 billion; 48 consecutive quarters of average loan and lease balance growth – Merrill Wealth Management added ~6,900 net new households; Private Bank added ~830 net new relationships • Net income of $1.7 billion • No. 3 in investment banking fees with 6.9% market share, up 60bps6 • Total investment banking fees (excl. self-led) of $1.5 billion, decreased 35%, as industry-wide underwriting activity retreated from record levels; Advisory fees of $473 million, up 18% • Deposits up 11% to $540 billion • Organic Client Growth – Ending period loans and leases of $367 billion up $41 billion, or 13% – Global Transaction Services revenue of $2.1 billion up $383 million, or 22% • Net income of $3.0 billion • Record deposit balances up 14% to more than $1 trillion • In Small Business, record deposit balances up 21% to $172 billion; average loans and leases, excluding PPP, up 4% to $19 billion3 • Organic Client Growth – Added ~228,000 net new Consumer checking accounts from Q4-21; Record 34.8 million accounts with 92% being primary4 – Record Consumer investment accounts of 3.3 million, up 7% – Record digital sales increased to 53% of total sales, with financial centers back to operating at high capacity, as of the end of the quarter
2 Bank of America Financial Highlights Three Months Ended ($ in billions, except per share data) 3/31/2022 12/31/2021 3/31/2021 Total revenue, net of interest expense $23.2 $22.1 $22.8 Provision for credit losses — (0.5) (1.9) Noninterest expense 15.3 14.7 15.5 Pretax income 7.9 7.8 9.2 Pretax, pre-provision income1(D) 7.9 7.3 7.3 Income tax expense 0.8 0.8 1.1 Net Income 7.1 7.0 8.1 Diluted earnings per share $0.80 $0.82 $0.86 1 Pretax, pre-provision income represents a non-GAAP financial measure. For more information, see page 18. From Chief Financial Officer Alastair Borthwick: “First quarter results were strong despite challenging markets and volatility, which we believe reflect the value of our Responsible Growth strategy. Net interest income increased by $1.4 billion versus the year-ago quarter supported by strong loan and deposit growth. Going forward, and with the forward curve expectation of rising interest rates, we anticipate realizing more of the benefit of our deposit franchise. "Asset quality continued to remain strong with net charge-offs about half of the year-ago quarter amount. Our balance sheet remained strong with $170 billion of regulatory capital and a CET1 ratio nearly 90 bps above our current minimum requirements. Capital strength allowed us to grow loans, weather the worst bond market in 40 years, support communities, and return more than $4 billion back to shareholders. With very minor direct exposure to Russia-based companies, our teams were able to assist clients and navigate through the complexities of the sanctions.” Spotlight on Loan Growth - Average Loan Balances ($B), Excluding PPP Total Commercial Consumer $539 $435 $974 Change vs. Q1-211 16% 4% 10% Q1-221 1 Excludes balances related to PPP (recorded in Commercial) of $3.8 billion and $23.1 billion for Q1-22 and Q1-21. Average loan balances were $543.0 billion and $489.5 billion for Q1-22 and Q1-21.
3 Consumer Banking1,2 Financial Results Three months ended ($ in millions) 3/31/2022 12/31/2021 3/31/2021 Total revenue2 $8,813 $8,912 $8,069 Provision for credit losses (52) 32 (617) Noninterest expense 4,921 4,742 5,131 Pretax income 3,944 4,138 3,555 Income tax expense 966 1,014 871 Net income $2,978 $3,124 $2,684 Business Highlights3(B) Three months ended ($ in billions) 3/31/2022 12/31/2021 3/31/2021 Average deposits $1,056.1 $1,026.8 $924.1 Average loans and leases 284.1 282.3 290.9 Consumer investment assets (EOP)6 357.6 368.8 324.5 Active mobile banking users (MM) 33.6 33.0 31.5 Number of financial centers 4,056 4,173 4,324 Efficiency ratio 56 % 53 % 64 % Return on average allocated capital 30 32 28 Total Consumer Credit Card3 Average credit card outstanding balances $78.4 $78.4 $74.2 Total credit/debit spend 198.5 211.9 172.5 Risk-adjusted margin 10.4 % 10.9 % 9.3 % 1 Comparisons are to the year-ago quarter unless noted. 2 Revenue, net of interest expense. 3 The Consumer credit card portfolio includes Consumer Banking and GWIM. 4 Represents the percentage of consumer checking accounts that are estimated to be the customer’s primary account based on multiple relationship factors (e.g., linked to their direct deposit). 5 Average loans and leases were $284B and $291B for Q1-22 and Q1-21. Excluding average PPP loan balances of $2B and $14B, average loan balances were $282B and $277B for the same periods. 6 Consumer investment assets includes client brokerage assets, deposit sweep balances and AUM in Consumer Banking. 7 Includes clients in Consumer, Small Business and GWIM. As of February 2022. 8 Household adoption represents households with consumer bank login activities in a 90-day period, as of February 2022. • Net income of $3.0 billion increased 11% from Q1-21 as a result of improved revenue and lower expenses, partially offset by a decrease in provision benefit – 13% operating leverage(A) • Revenue of $8.8 billion increased 9%, driven by higher NII • Provision for credit losses increased $565 million to a benefit of $52 million, driven by a smaller reserve release • Noninterest expense decreased 4% to $4.9 billion, primarily driven by the absence of a prior-period impairment charge, partially offset by investments in the business and increased client activity Business Highlights1,3(B) • Record average deposits grew $132 billion, or 14%, to more than $1 trillion – 56% of deposits in checking accounts; 92% primary accounts4 • Average loans and leases declined $7 billion, or 2%, to $284 billion; average loans and leases, excluding PPP, grew $5 billion, or 2%, to $282 billion5 • Consumer investment assets6 grew $33 billion, or 10%, to $358 billion, driven by client flows from new and existing clients and higher market valuations – $20 billion of client flows since Q1-21 – Record 3.3 million client accounts, up 7% • Combined credit/debit card spend up $26 billion, or 15%; credit card up 25% and debit card up 9% • 9.5 million total clients7 enrolled in Preferred Rewards, up 10%, with 99% annualized retention rate Digital Usage Continued to Grow1 • 71% of overall households8 actively using digital platforms • 42.3 million active digital banking users, up 5%, or 2.0 million • Over 1.7 million digital sales, up 26% • Over 2.7 billion digital logins • 16.2 million active Zelle® users, now including small businesses, sent and received 213 million transfers worth $65 billion, up 26% and 31% YoY, respectively • Clients booked ~813,000 digital appointments Continued Business Leadership • No. 1 in estimated U.S. Retail Deposits(a) • No. 1 Online Banking and Mobile Banking Functionality(b) • No. 1 in customer satisfaction for U.S. Online(c) Banking among National Banks by J.D. Power(d) • No. 1 in customer satisfaction for U.S. Mobile Banking Apps among National Banks by J.D. Power(d) • No. 1 in customer satisfaction for U.S. Retail Banking Advice by J.D. Power(e) • No. 1 in customer satisfaction with Merchant Services by J.D. Power(f) • Best Consumer Digital Bank in the U.S.(g) • Certified by J.D. Power for providing outstanding client satisfaction for financial wellness support(h) See page 11 for Business Leadership sources.
4 Global Wealth and Investment Management1,2 Financial Results Three months ended ($ in millions) 3/31/2022 12/31/2021 3/31/2021 Total revenue2 $5,476 $5,402 $4,971 Provision for credit losses (41) (56) (65) Noninterest expense 4,015 3,834 3,867 Pretax income 1,502 1,624 1,169 Income tax expense 368 398 286 Net income $1,134 $1,226 $883 Business Highlights(B) Three months ended ($ in billions) 3/31/2022 12/31/2021 3/31/2021 Average deposits $384.9 $360.9 $326.4 Average loans and leases 210.9 205.2 188.5 Total client balances (EOP) 3,714.2 3,840.3 3,480.3 AUM flows 15.5 21.6 18.2 Pretax margin 27 % 30 % 24 % Return on average allocated capital 26 30 22 1 Comparisons are to the year-ago quarter unless noted. 2 Revenue, net of interest expense. Continued Business Leadership • No. 1 on Forbes’ Top 100 Women Advisors (2022), Top Women Advisors Best-in State (2022), Best-in-State Wealth Advisors (2022) and Top Next Generation Advisors (2021) • No. 1 on Barron’s Top 100 Women Financial Advisors List (2021) • MMI/Barron’s Industry Awards for Digital Innovation – Digital Wealth Overview (2021) • Celent Model Wealth Manager award for Client Experience (2022) • No. 1 in personal trust AUM(i) • Best Private Bank for Customer Service (U.S.)(j) • Best Private Bank for Philanthropic Services (Global) and Most Innovative Private Bank (North America)(k) • Best Private Bank in North America(l) See page 11 for Business Leadership sources. • Net income increased $251 million, or 28%, to $1.1 billion – 6% operating leverage(A) • Record revenue of $5.5 billion, up 10%, driven by higher asset management fees and the NII benefit from strong deposit and loan growth • Noninterest expense increased 4% to $4.0 billion, primarily driven by higher revenue-related incentives Business Highlights1(B) • Total client balances up $234 billion, or 7%, to $3.7 trillion, driven by net client flows and higher market valuations – Strong AUM flows of $64 billion since Q1-21 – Average deposits increased $59 billion, or 18%, to $385 billion – Average loans and leases grew $22 billion, or 12%, to $211 billion, driven by securities-based lending, residential mortgage lending, and custom lending Merrill Wealth Management Highlights1 Strong Client Growth and Advisor Engagement – Client balances of $3.1 trillion, up 7% – AUM balances of $1.2 trillion, up 8% – Added ~6,900 net new households in Q1-22, up 9% Digital Usage Continued to Grow – Record 81% of Merrill households digitally active across the enterprise – Continued growth of advisor/client digital communications; 380,000 households exchanged ~1.7 million secure messages – Record 76% households enrolled in eDelivery; 246,000 forms signed digitally in Q1-22, 51% of eligible transactions – 74% of eligible checks deposited through automated channels – Erica interactions up 19% Strong Client Engagement – Client balances of $598 billion, up 7% – AUM balances of $334 billion, up 3% – Added ~830 net new relationships in Q1-22, up 24% Bank of America Private Bank Highlights1 Digital Usage Continued to Grow – Record 85% of clients digitally active across the enterprise – Record 76% of checks deposited through automated channels – Clients increasingly leveraging the convenience and effectiveness of our digital capabilities: ▪ Erica interactions up 24% ▪ Zelle® transactions up 41% ▪ Digital wallet transactions up 66%
5 Global Banking1,2,3 Financial Results Three months ended ($ in millions) 3/31/2022 12/31/2021 3/31/2021 Total revenue2,3 $5,194 $5,907 $4,633 Provision for credit losses 165 (463) (1,126) Noninterest expense 2,683 2,717 2,782 Pretax income 2,346 3,653 2,977 Income tax expense 622 986 804 Net income $1,724 $2,667 $2,173 Business Highlights2(B) Three months ended ($ in billions) 3/31/2022 12/31/2021 3/31/2021 Average deposits $539.9 $562.4 $487.0 Average loans and leases 358.8 338.6 330.1 Total Corp. IB fees (excl. self- led)2 1.5 2.4 2.2 Global Banking IB fees2 0.9 1.5 1.2 Business Lending revenue 2.1 2.2 1.6 Global Transaction Services revenue4 2.1 2.1 1.7 Efficiency ratio 52 % 46 % 60 % Return on average allocated capital 16 25 21 1 Comparisons are to the year-ago quarter unless noted. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 3 Revenue, net of interest expense. 4 Prior periods have been revised to conform to current-period presentation. • Net income of $1.7 billion decreased 21%, driven by the absence of a reserve release that benefited Q1-21, partially offset by higher revenue and lower noninterest expense – 16% operating leverage(A) • Revenue of $5.2 billion rose 12%, reflecting higher leasing-related revenue and higher NII on strong loan and deposit growth, partially offset by lower investment banking fees • Provision for credit losses of $165 million, primarily reflects a reserve build driven by Russian exposure and loan growth, compared to a reserve release in Q1-21(C) • Noninterest expense decreased $99 million, or 4%, to $2.7 billion, primarily driven by lower incentive compensation due to the absence of Q1-21 award changes Continued Business Leadership • Outstanding Financial Innovator – 2021 Global(k) • North America’s Best Bank for Small to Medium-sized Enterprises(m) • Best Global Bank for Payments & Collections(n) • Model Bank for Corporate Digital Banking – For CashPro App(o) • Best Bank for Cash Management in North America(n) • World’s Best Bank for Payments and Treasury and North America’s Best Bank for Transaction Services(m) • Best Transaction Bank in North America, Best Supply Chain Finance Bank(p) • 2021 Quality, Share and Excellence Awards for U.S. Large Corporate Banking and Cash Management(q) • Outstanding Global Leader in Social Bonds, Outstanding Leader in Social Bonds and Sustainable Loans for North America(k) • Relationships with 74% of the Global Fortune 500; 95% of the U.S. Fortune 1,000 (2021) See page 11 for Business Leadership sources. Digital Usage Continued to Grow1 • 74% digitally active clients across commercial, corporate, and business banking clients (CashPro & BA360 platforms) (as of February 2022) • CashPro App Active Users increased 45% and sign- ins increased 51% (rolling 12 months), surpassing 1.7 million sign-ins in the past year • CashPro App Payment Approvals value was $454 billion, increasing 118% (rolling 12 months) • Global Payments to Digital Wallets increased 38% (rolling 12 months as of February 2022) Business Highlights1,2(B) • Average deposits increased $53 billion, or 11%, to $540 billion, reflecting client liquidity and valued relationships • Average loans and leases increased $29 billion, or 9%, to $359 billion, reflecting increased client demand • Total investment banking fees (excl. self-led) decreased $789 million to $1.5 billion; record first quarter advisory fees of $473 million, debt underwriting and equity underwriting fees of $831 million and $225 million, respectively
6 Global Markets1,2,3,6 Financial Results Three months ended ($ in millions) 3/31/2022 12/31/2021 3/31/2021 Total revenue2,3 $5,292 $3,818 $6,198 Net DVA4 69 2 (2) Total revenue (excl. net DVA)2,3,4 $5,223 $3,816 $6,200 Provision for credit losses 5 32 (5) Noninterest expense(I) 3,117 2,882 3,427 Pretax income 2,170 904 2,776 Income tax expense 575 235 722 Net income $1,595 $669 $2,054 Net income (excl. net DVA)4 $1,543 $667 $2,056 Business Highlights2(B) Three months ended ($ in billions) 3/31/2022 12/31/2021 3/31/2021 Average total assets $858.7 $817.0 $723.3 Average trading-related assets 596.2 564.3 501.8 Average loans and leases 108.6 102.6 77.4 Sales and trading revenue2 4.7 2.9 5.1 Sales and trading revenue (excl. net DVA)2(H) 4.7 2.9 5.1 Global Markets IB fees2 0.6 0.8 1.0 Efficiency ratio 59 % 75 % 55 % Return on average allocated capital 15 7 22 1 Comparisons are to the year-ago quarter unless noted. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 3 Revenue, net of interest expense. 4 Revenue and net income, excluding net DVA, are non-GAAP financial measures. See endnote H on page 10 for more information. 5 VaR model uses a historical simulation approach based on three years of historical data and an expected shortfall methodology equivalent to a 99% confidence level. Average VaR was $79MM, $63MM and $74MM for Q1-22, Q4-21 and Q1-21, respectively. 6 The explanations for current period-over-period changes for Global Markets are the same for amounts including and excluding net DVA. • Net income decreased $459 million to $1.6 billion – Excluding net DVA, net income decreased 25% to $1.5 billion4 • Revenue of $5.3 billion decreased 15%, driven by lower FICC sales and trading revenues and investment banking fees – Excluding net DVA, revenue decreased 16%4 • Noninterest expense decreased $310 million, or 9%, to $3.1 billion, primarily driven by the absence of expenses related to a liquidating business activity, which was realigned from Global Markets to All Other in Q4-21, and lower incentive compensation due to the absence of Q1-21 award changes(I) • Average VaR of $79 million5 Business Highlights1,2,6(B) • Sales and trading revenue decreased 7% to $4.7 billion – FICC revenue declined to $2.7 billion, driven by the absence of gains in commodities from a weather- related event in Q1-21 and a weaker credit trading environment, partially offset by improved performance across macro products – Equities revenue increased to $2.0 billion, driven by increased client activity and a strong trading performance in derivatives • Excluding net DVA, sales and trading revenue decreased 8% to $4.7 billion(H) – FICC revenue decreased 19% to $2.6 billion – Equities revenue increased 9% to $2.0 billion Additional Highlights • 690+ research analysts covering 3,400+ companies, 1,175+ corporate bond issuers across 55+ economies and 24 industries Continued Business Leadership • Global Derivatives House of the Year(r) • Clearing House of the Year(r) • Interest Rate Derivatives House of the Year(s) • Overall Leader for North America in Sustainable Finance(k) • No. 2 Global Research Firm(t) • No. 2 Global Fixed Income Research Team(t) • No. 1 Municipal Bonds Underwriter(u) See page 11 for Business Leadership sources.
7 All Other1,2 Financial Results Three months ended ($ in millions) 3/31/2022 12/31/2021 3/31/2021 Total revenue2 $(1,441) $(1,874) $(939) Provision for credit losses (47) (34) (47) Noninterest expense(I) 583 556 308 Pretax loss (1,977) (2,396) (1,200) Income tax expense (benefit) (1,613) (1,723) (1,456) Net income (loss) $(364) $(673) $256 1 Comparisons are to the year-ago quarter unless noted. 2 Revenue, net of interest expense. Note: All Other primarily consists of asset and liability management (ALM) activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments. • Net loss of $364 million compared to net income of $256 million in Q1-21 – Revenue declined $502 million, reflecting higher partnership losses for Environmental, Social and Governance (ESG) investments (offset in All Other tax expense) – Noninterest expense increased $275 million, driven primarily by the realignment of a liquidating business activity from Global Markets to All Other(I) in Q4-21 • Total corporate effective tax rate (ETR) for the quarter was 10.3%. Excluding ESG tax credits, the ETR would have been approximately 24%
8 Credit Quality1 Highlights Three months ended ($ in millions) 3/31/2022 12/31/2021 3/31/2021 Provision for credit losses $30 ($489) ($1,860) Net charge-offs 392 362 823 Net charge-off ratio2 0.16 % 0.15 % 0.37 % At period-end Nonperforming loans and leases $4,625 $4,567 $5,162 Nonperforming loans and leases ratio 0.47 % 0.47 % 0.58 % Allowance for loan and lease losses $12,104 $12,387 $16,168 Allowance for loan and lease losses ratio3 1.23 % 1.28 % 1.80 % 1 Comparisons are to the year-ago quarter unless noted. 2 Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases during the period. 3 Allowance for loan and lease losses ratio is calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period. Note: Ratios do not include loans accounted for under the fair value option. Charge-offs • Total net charge-offs declined $431 million, or 52%, from Q1-21 and increased $30 million, or 8%, from the prior quarter to $392 million – Consumer net charge-offs increased $28 million from Q4-21 to $340 million, driven by credit card ▪ Credit card loss rate of 1.53% vs. 1.42% in Q4-21, and 3.47% in Q1-21 – Commercial net charge-offs remained low at $52 million • Net charge-off ratio of 0.16%, up 1 basis point from the prior quarter, and remained near historical lows2 Provision for credit losses • Provision for credit losses of $30 million driven primarily by asset quality improvement, offset by a reserve build related to Russian exposure and loan growth; the quarter included a net reserve release of $362 million – Consumer net reserve release of $326 million – Commercial net reserve release of $36 million • Commercial reservable criticized utilized exposure decreased $1.7 billion from the prior quarter to $20.7 billion, driven by improvements across a broad range of industries – Excluding $0.7 billion of downgrades for Russian exposure, commercial reservable criticized utilized exposure declined $2.4 billion from 4Q-21 Allowance for credit losses • Allowance for credit losses, including unfunded commitments, decreased 3% from the prior quarter to $13.5 billion – Allowance for loan and lease losses decreased $283 million, or 2%, from the prior quarter to $12.1 billion, representing 1.23% of total loans and leases3 • Nonperforming loans remained relatively flat at $4.6 billion – 56% of Consumer nonperforming loans are contractually current
9 Balance Sheet, Liquidity and Capital Highlights ($ in billions except per share data, end of period, unless otherwise noted)(B)(F)(G) Three months ended 3/31/2022 12/31/2021 3/31/2021 Ending Balance Sheet Total assets $3,238.2 $3,169.5 $2,970.0 Total loans and leases 993.1 979.1 903.1 Total loans and leases in business segments (excluding All Other) 978.1 963.3 883.2 Total deposits 2,072.4 2,064.4 1,884.9 Average Balance Sheet Average total assets $3,207.7 $3,164.1 $2,879.2 Average loans and leases 977.8 945.1 907.7 Average deposits 2,045.8 2,017.2 1,805.7 Funding and Liquidity Long-term debt $278.7 $280.1 $251.2 Global Liquidity Sources, average(F) 1,109 1,158 1,003 Equity Common shareholders’ equity $239.5 $245.4 $249.7 Common equity ratio 7.4 % 7.7 % 8.4 % Tangible common shareholders’ equity1 $169.3 $175.1 $179.5 Tangible common equity ratio1 5.3 % 5.7 % 6.2 % Per Share Data Common shares outstanding (in billions) 8.06 8.08 8.59 Book value per common share $29.70 $30.37 $29.07 Tangible book value per common share1 20.99 21.68 20.90 Regulatory Capital(G) CET1 capital $169.9 $171.8 $177.8 Standardized approach Risk-weighted assets $1,640 $1,618 $1,508 CET1 ratio 10.4 % 10.6 % 11.8 % Advanced approaches Risk-weighted assets $1,416 $1,399 $1,365 CET1 ratio 12.0 % 12.3 % 13.0 % Supplementary leverage Supplementary leverage ratio (SLR) 5.4 % 5.5 % 7.0 % 1 Represents a non-GAAP financial measure. For reconciliation, see page 18.
10 A Operating leverage is calculated as the year-over-year percentage change in revenue, net of interest expense, less the percentage change in noninterest expense. B We present certain key financial and nonfinancial performance indicators (KPIs) that management uses when assessing consolidated and/or segment results. We believe this information is useful because it provides management and investors with information about underlying operational performance and trends. KPIs are presented in Balance Sheet, Liquidity and Capital Highlights and on the Segment pages for each segment. C Reserve Build (or Release) is calculated by subtracting net charge-offs for the period from the provision for credit losses recognized in that period. The period-end allowance, or reserve, for credit losses reflects the beginning of the period allowance adjusted for net charge-offs recorded in that period plus the provision for credit losses recognized in that period. D Pretax, pre-provision income (PTPI) is a non-GAAP financial measure calculated by adjusting consolidated pretax income to add back provision for credit losses. Management believes that PTPI is a useful financial measure as it enables an assessment of the Company’s ability to generate earnings to cover credit losses through a credit cycle and provides an additional basis for comparing the Company's results of operations between periods by isolating the impact of provision for credit losses, which can vary significantly between periods. For Reconciliations to GAAP financial measures, see page 18. E We also measure NII on an FTE basis, which is a non-GAAP financial measure. FTE basis is a performance measure used in operating the business that management believes provides investors with meaningful information on the interest margin for comparative purposes. We believe that this presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practice. NII on an FTE basis was $11.7 billion, $11.5 billion and $10.3 billion for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. The FTE adjustment was $106 million, $105 million and $111 million for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. F Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, inclusive of U.S. government securities, U.S. agency securities, U.S. agency MBS, and a select group of non-U.S. government and supranational securities, and other investment-grade securities, and are readily available to meet funding requirements as they arise. It does not include Federal Reserve Discount Window or Federal Home Loan Bank borrowing capacity. Transfers of liquidity among legal entities may be subject to certain regulatory and other restrictions. G Regulatory capital ratios at March 31, 2022 are preliminary. The Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for Common equity tier 1 (CET1) is the Standardized approach for all periods presented. Supplementary leverage exposure at March 31, 2021 excludes U.S. Treasury securities and deposits at Federal Reserve Banks. H The below table includes Global Markets sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. We believe that the presentation of measures that exclude this item is useful because such measures provide additional information to assess the underlying operational performance and trends of our businesses and to allow better comparison of period-to-period operating performance. For the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, net DVA gains (losses) were $69 million, $2 million and $(2) million, FICC net DVA gains (losses) were $60 million, $4 million and $(9) million, and Equities net DVA losses were $9 million, $(2) million and $7 million, respectively. I Effective October 1, 2021, a business activity previously included in the Global Markets segment is being reported as a liquidating business in All Other, consistent with a realignment in performance reporting to senior management. The activity was not material to Global Markets' results of operations, and historical results for the first quarter of 2021 were not restated. Endnotes Three months ended (Dollars in millions) 3/31/2022 12/31/2021 3/31/2021 Sales and trading revenue: Fixed-income, currencies and commodities $ 2,708 $ 1,573 $ 3,242 Equities 2,011 1,363 1,836 Total sales and trading revenue $ 4,719 $ 2,936 $ 5,078 Sales and trading revenue, excluding net debit valuation adjustment: Fixed-income, currencies and commodities $ 2,648 $ 1,569 $ 3,251 Equities 2,002 1,365 1,829 Total sales and trading revenue, excluding net debit valuation adjustment $ 4,650 $ 2,934 $ 5,080
11 (a) Estimated U.S. retail deposits based on June 30, 2021 FDIC deposit data. (b) Javelin 2021 Online and Mobile Banking Scorecards. (c) Tied in the national segment of the J.D. Power 2021 U.S. Online Banking Satisfaction Study. (d) J.D. Power’s 2021 U.S. Banking Mobile App Satisfaction, U.S. Online Banking Satisfaction studies measure overall satisfaction with banking digital channels based on four factors: navigation; speed; visual appeal; and information/content. The studies are based on responses from 9,926 retail bank customers nationwide and were fielded in March-April 2021. For J.D. Power award information, visit jdpower.com/awards. (e) J.D. Power 2021 U.S. Retail Banking Advice Satisfaction Study. (f) Bank of America received the highest score in the J.D. Power 2022 Merchant Services Satisfaction Study of customers’ satisfaction with credit card/debit payment processors among small business owners/operators. Visit jdpower.com/awards for more details. (g) Global Finance, August 2021. (h) J.D. Power 2022 Financial Health Support CertificationSM is based on exceeding customer experience benchmarks using client surveys and a best practices verification. For more information, visit jdpower.com/awards. (i) Industry Q4-21 FDIC call reports. (j) PWM, a Financial Times publication, 2021. (k) Global Finance, 2021. (l) The Digital Banker, 2021. (m) Euromoney, 2021. (n) Global Finance Treasury & Cash Management Awards, 2022. (o) Celent, 2022. (p) Transaction Banking Awards, The Banker, 2021. (q) Greenwich, 2022. (r) GlobalCapital, 2021. (s) Risk.net, 2022. (t) Institutional Investor, 2021. (u) Refinitiv, 2022. Business Leadership Sources
12 Contact Information and Investor Conference Call Invitation Investor Call Information Note: Chief Executive Officer Brian Moynihan and Chief Financial Officer Alastair Borthwick will discuss first- quarter 2022 financial results in a conference call at 8:30 a.m. ET today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations website at https://investor.bankofamerica.com. For a listen-only connection to the conference call, dial 1.877.200.4456 (U.S.) or 1.785.424.1732 (international). The conference ID is 79795. Please dial in 10 minutes prior to the start of the call. Investors can access replays of the conference call by visiting the Investor Relations website or by calling 1.800.934.4850 (U.S.) or 1.402.220.1178 (international) from April 18 through 11:59 p.m. ET on April 28. Investors May Contact: Lee McEntire, Bank of America Phone: 1.980.388.6780 [email protected] Jonathan G. Blum, Bank of America (Fixed Income) Phone: 1.212.449.3112 [email protected] Bank of America Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,100 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 42 million active users, including approximately 34 million active mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. Forward-Looking Statements Bank of America Corporation (the “Company”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Company’s current expectations, plans or forecasts of its future results, revenues, provision for credit losses, expenses, efficiency ratio, capital measures, strategy, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Company’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. Reporters May Contact: Christopher Feeney, Bank of America Phone: 1.980.386.6794 (office) [email protected]
13 You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Company’s 2021 Annual Report on Form 10-K and in any of the Company’s subsequent Securities and Exchange Commission filings: the Company’s potential judgments, orders, settlements, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions, including as a result of our participation in and execution of government programs related to the Coronavirus Disease 2019 (COVID-19) pandemic; such as the processing of unemployment benefits for California and certain other states; the possibility that the Company's future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the possibility that the Company could face increased claims from one or more parties involved in mortgage securitizations; the Company’s ability to resolve representations and warranties repurchase and related claims; the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Company’s exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, inflation, currency exchange rates, economic conditions, trade policies and tensions, including tariffs, and potential geopolitical instability; the impact of the interest rate and inflationary environment on the Company’s business, financial condition and results of operations; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on the economic recovery and our business; the Company’s concentration of credit risk; the Company's ability to achieve its expense targets and expectations regarding revenue, net interest income, provision for credit losses, net charge-offs, effective tax rate, loan growth or other projections; adverse changes to the Company’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company’s assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements, stress capital buffer requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Company’s capital plans; the effect of changes in or interpretations of income tax laws and regulations; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including, but not limited to, recovery and resolution planning requirements, Federal Deposit Insurance Corporation assessments, the Volcker Rule, fiduciary standards, derivatives regulations and the Coronavirus Aid, Relief, and Economic Security Act and any similar or related rules and regulations; a failure or disruption in or breach of the Company’s operational or security systems or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; the transition and physical impacts of climate change; our ability to achieve environmental, social and governance goals and commitments or the impact of any changes in the Company's sustainability strategy or commitments generally; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary or regulatory policy; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the U.S. and/or global, financial market conditions and our business, results of operations, financial condition and prospects; the impact of natural disasters, extreme weather events, military conflict (including the Russia-Ukraine conflict), terrorism or other geopolitical events; and other matters. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”) or other affiliates, including, in the United States, BofA Securities, Inc., Merrill Lynch Professional Clearing Corp. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, each of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured · May Lose Value · Are Not Bank Guaranteed. Bank of America Corporation’s broker-dealers are not banks and are separate legal entities from their bank affiliates. The obligations of the broker-dealers are not obligations of their bank affiliates (unless explicitly stated otherwise), and these bank affiliates are not responsible for securities sold, offered, or recommended by the broker-dealers. The foregoing also applies to other non-bank affiliates. For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom at https://newsroom.bankofamerica.com. www.bankofamerica.com
Current-period information is preliminary and based on company data available at the time of the presentation. 14 Bank of America Corporation and Subsidiaries Selected Financial Data (In millions, except per share data) First Quarter 2022 Fourth Quarter 2021 First Quarter 2021Summary Income Statement Net interest income $ 11,572 $ 11,410 $ 10,197 Noninterest income 11,656 10,650 12,624 Total revenue, net of interest expense 23,228 22,060 22,821 Provision for credit losses 30 (489) (1,860) Noninterest expense 15,319 14,731 15,515 Income before income taxes 7,879 7,818 9,166 Income tax expense 812 805 1,116 Net income $ 7,067 $ 7,013 $ 8,050 Preferred stock dividends 467 240 490 Net income applicable to common shareholders $ 6,600 $ 6,773 $ 7,560 Average common shares issued and outstanding 8,136.8 8,226.5 8,700.1 Average diluted common shares issued and outstanding 8,202.1 8,304.7 8,755.6 Summary Average Balance Sheet Total debt securities $ 975,656 $ 984,493 $ 788,638 Total loans and leases 977,793 945,062 907,723 Total earning assets 2,779,844 2,747,769 2,481,925 Total assets 3,207,702 3,164,118 2,879,221 Total deposits 2,045,811 2,017,223 1,805,747 Common shareholders’ equity 242,865 246,519 249,648 Total shareholders’ equity 269,309 270,883 274,047 Performance Ratios Return on average assets 0.89 % 0.88 % 1.13 % Return on average common shareholders’ equity 11.02 10.90 12.28 Return on average tangible common shareholders’ equity (1) 15.51 15.25 17.08 Per Common Share Information Earnings $ 0.81 $ 0.82 $ 0.87 Diluted earnings 0.80 0.82 0.86 Dividends paid 0.21 0.21 0.18 Book value 29.70 30.37 29.07 Tangible book value (1) 20.99 21.68 20.90 Summary Period-End Balance Sheet March 31 2022 December 31 2021 March 31 2021 Total debt securities $ 969,880 $ 982,627 $ 856,912 Total loans and leases 993,145 979,124 903,088 Total earning assets 2,783,186 2,803,620 2,548,811 Total assets 3,238,223 3,169,495 2,969,992 Total deposits 2,072,409 2,064,446 1,884,938 Common shareholders’ equity 239,480 245,358 249,681 Total shareholders’ equity 266,617 270,066 274,000 Common shares issued and outstanding 8,062.1 8,077.8 8,589.7 First Quarter 2022 Fourth Quarter 2021 First Quarter 2021Credit Quality Total net charge-offs $ 392 $ 362 $ 823 Net charge-offs as a percentage of average loans and leases outstanding (2) 0.16 % 0.15 % 0.37 % Provision for credit losses $ 30 $ (489) $ (1,860) March 31 2022 December 31 2021 March 31 2021 Total nonperforming loans, leases and foreclosed properties (3) $ 4,778 $ 4,697 $ 5,299 Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (3) 0.48 % 0.48 % 0.59 % Allowance for loan and lease losses $ 12,104 $ 12,387 $ 16,168 Allowance for loan and lease losses as a percentage of total loans and leases outstanding (2) 1.23 % 1.28 % 1.80 % For footnotes, see page 15.
Current-period information is preliminary and based on company data available at the time of the presentation. 15 Bank of America Corporation and Subsidiaries Selected Financial Data (continued) (Dollars in millions) Capital Management March 31 2022 December 31 2021 March 31 2021 Regulatory capital metrics (4): Common equity tier 1 capital $ 169,874 $ 171,759 $ 177,789 Common equity tier 1 capital ratio - Standardized approach 10.4 % 10.6 % 11.8 % Common equity tier 1 capital ratio - Advanced approaches 12.0 12.3 13.0 Tier 1 leverage ratio 6.3 6.4 7.2 Supplementary leverage ratio 5.4 5.5 7.0 Tangible equity ratio (5) 6.2 6.4 7.0 Tangible common equity ratio (5) 5.3 5.7 6.2 (1) Return on average tangible common shareholders’ equity and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock. See Reconciliations to GAAP Financial Measures on page 18. (2) Ratios do not include loans accounted for under the fair value option. Charge-off ratios are annualized for the quarterly presentation. (3) Balances do not include past due consumer credit card loans, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully insured home loans), and in general, other consumer and commercial loans not secured by real estate, and nonperforming loans held for sale or accounted for under the fair value option. (4) Regulatory capital ratios at March 31, 2022 are preliminary. Bank of America Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for Common equity tier 1 (CET1) is the Standardized approach for all periods presented. Supplementary leverage exposure at March 31, 2021 excludes U.S. Treasury securities and deposits at Federal Reserve Banks. (5) Tangible equity ratio equals period-end tangible shareholders’ equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders’ equity divided by period-end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. See Reconciliations to GAAP Financial Measures on page 18.
Current-period information is preliminary and based on company data available at the time of the presentation. 16 Bank of America Corporation and Subsidiaries Quarterly Results by Business Segment and All Other (Dollars in millions) First Quarter 2022 Consumer Banking GWIM Global Banking Global Markets All Other Total revenue, net of interest expense $ 8,813 $ 5,476 $ 5,194 $ 5,292 $ (1,441) Provision for credit losses (52) (41) 165 5 (47) Noninterest expense 4,921 4,015 2,683 3,117 583 Net income (losses) 2,978 1,134 1,724 1,595 (364) Return on average allocated capital (1) 30 % 26 % 16 % 15 % n/m Balance Sheet Average Total loans and leases $ 284,068 $ 210,937 $ 358,807 $ 108,576 $ 15,405 Total deposits 1,056,100 384,902 539,912 44,393 20,504 Allocated capital (1) 40,000 17,500 44,500 42,500 n/m Quarter end Total loans and leases $ 286,322 $ 214,273 $ 367,423 $ 110,037 $ 15,090 Total deposits 1,088,940 385,288 533,820 43,371 20,990 Fourth Quarter 2021 Consumer Banking GWIM Global Banking Global Markets All Other Total revenue, net of interest expense $ 8,912 $ 5,402 $ 5,907 $ 3,818 $ (1,874) Provision for credit losses 32 (56) (463) 32 (34) Noninterest expense 4,742 3,834 2,717 2,882 556 Net income (loss) 3,124 1,226 2,667 669 (673) Return on average allocated capital (1) 32 % 30 % 25 % 7 % n/m Balance Sheet Average Total loans and leases $ 282,332 $ 205,236 $ 338,627 $ 102,627 $ 16,240 Total deposits 1,026,810 360,912 562,390 43,331 23,780 Allocated capital (1) 38,500 16,500 42,500 38,000 n/m Quarter end Total loans and leases $ 286,511 $ 208,971 $ 352,933 $ 114,846 $ 15,863 Total deposits 1,054,995 390,143 551,752 46,374 21,182 First Quarter 2021 Consumer Banking GWIM Global Banking Global Markets All Other Total revenue, net of interest expense $ 8,069 $ 4,971 $ 4,633 $ 6,198 $ (939) Provision for credit losses (617) (65) (1,126) (5) (47) Noninterest expense 5,131 3,867 2,782 3,427 308 Net income 2,684 883 2,173 2,054 256 Return on average allocated capital (1) 28 % 22 % 21 % 22 % n/m Balance Sheet Average Total loans and leases $ 290,891 $ 188,495 $ 330,107 $ 77,415 $ 20,815 Total deposits 924,137 326,370 487,034 53,852 14,354 Allocated capital (1) 38,500 16,500 42,500 38,000 n/m Quarter end Total loans and leases $ 282,935 $ 190,060 $ 325,996 $ 84,247 $ 19,850 Total deposits 971,709 333,254 506,012 61,450 12,513 (1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently. n/m = not meaningful The Company reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis.
Current-period information is preliminary and based on company data available at the time of the presentation. 17 Bank of America Corporation and Subsidiaries Supplemental Financial Data (Dollars in millions) First Quarter 2022 Fourth Quarter 2021 First Quarter 2021FTE basis data (1) Net interest income $ 11,678 $ 11,515 $ 10,308 Total revenue, net of interest expense 23,334 22,165 22,932 Net interest yield 1.69 % 1.67 % 1.68 % Efficiency ratio 65.65 66.46 67.65 Other Data March 31 2022 December 31 2021 March 31 2021 Number of financial centers - U.S. 4,056 4,173 4,324 Number of branded ATMs - U.S. 15,959 16,209 16,905 Headcount 208,139 208,248 212,201 (1) FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with meaningful information on the interest margin for comparative purposes. The Corporation believes that this presentation allows for comparison of amounts from both taxable and tax- exempt sources and is consistent with industry practices. Net interest income includes FTE adjustments of $106 million, $105 million and $111 million for the first quarter of 2022 and the fourth and first quarters of 2021, respectively.
Current-period information is preliminary and based on company data available at the time of the presentation. 18 The Corporation evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents shareholders’ equity or common shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities (“adjusted” shareholders’ equity or common shareholders’ equity). Return on average tangible common shareholders’ equity measures the Corporation’s net income applicable to common shareholders as a percentage of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total tangible assets (total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities). Return on average tangible shareholders’ equity measures the Corporation’s net income as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total tangible assets. Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation’s use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders’ equity as key measures to support our overall growth goals. See the tables below for reconciliations of these non-GAAP financial measures to the most closely related financial measures defined by GAAP for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in understanding its results of operations and trends. Other companies may define or calculate supplemental financial data differently. Bank of America Corporation and Subsidiaries Reconciliations to GAAP Financial Measures (Dollars in millions, except per share information) First Quarter 2022 Fourth Quarter 2021 First Quarter 2021 Reconciliation of income before income taxes to pretax, pre-provision income Income before income taxes $ 7,879 $ 7,818 $ 9,166 Provision for credit losses 30 (489) (1,860) Pretax, pre-provision income $ 7,909 $ 7,329 $ 7,306 Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and average tangible common shareholders’ equity Shareholders’ equity $ 269,309 $ 270,883 $ 274,047 Goodwill (69,023) (69,022) (68,951) Intangible assets (excluding mortgage servicing rights) (2,146) (2,166) (2,146) Related deferred tax liabilities 929 913 920 Tangible shareholders’ equity $ 199,069 $ 200,608 $ 203,870 Preferred stock (26,444) (24,364) (24,399) Tangible common shareholders’ equity $ 172,625 $ 176,244 $ 179,471 Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity and period-end tangible common shareholders’ equity Shareholders’ equity $ 266,617 $ 270,066 $ 274,000 Goodwill (69,023) (69,022) (68,951) Intangible assets (excluding mortgage servicing rights) (2,133) (2,153) (2,134) Related deferred tax liabilities 926 929 915 Tangible shareholders’ equity $ 196,387 $ 199,820 $ 203,830 Preferred stock (27,137) (24,708) (24,319) Tangible common shareholders’ equity $ 169,250 $ 175,112 $ 179,511 Reconciliation of period-end assets to period-end tangible assets Assets $ 3,238,223 $ 3,169,495 $ 2,969,992 Goodwill (69,023) (69,022) (68,951) Intangible assets (excluding mortgage servicing rights) (2,133) (2,153) (2,134) Related deferred tax liabilities 926 929 915 Tangible assets $ 3,167,993 $ 3,099,249 $ 2,899,822 Book value per share of common stock Common shareholders’ equity $ 239,480 $ 245,358 $ 249,681 Ending common shares issued and outstanding 8,062.1 8,077.8 8,589.7 Book value per share of common stock $ 29.70 $ 30.37 $ 29.07 Tangible book value per share of common stock Tangible common shareholders’ equity $ 169,250 $ 175,112 $ 179,511 Ending common shares issued and outstanding 8,062.1 8,077.8 8,589.7 Tangible book value per share of common stock $ 20.99 $ 21.68 $ 20.90
Bank of America 1Q22 Financial Results April 18, 2022
1Q22 Highlights (Comparison to 1Q21, unless otherwise noted) • Net income of $7.1B; diluted earnings per share of $0.80; ROE 11.0%, ROTCE1 15.5% • Revenue, net of interest expense, of $23.2B increased $0.4B, or 2% – Net interest income (NII) of $11.6B ($11.7B FTE1) increased $1.4B, or 13%, driven by strong deposit growth and related investment of excess liquidity, loan growth and lower premium amortization expense, partially offset by lower Paycheck Protection Program (PPP) fees – Noninterest income of $11.7B decreased $1.0B, or 8%, driven by lower investment banking fees, which outperformed the decline in industry fee pools2, partially offset by higher asset management fees • Provision for credit losses of $30MM included a $362MM net reserve release, driven primarily by asset quality improvement, offset by a reserve build related to Russian exposure and loan growth3 – Net charge-offs (NCOs) remained relatively flat vs. 4Q21, but declined 52% from 1Q21; net charge-off ratio of 16 bps remained near historical lows • Noninterest expense of $15.3B decreased $0.2B, or 1% – Generated operating leverage4 for the third consecutive quarter (305 bps in 1Q22) • Balance sheet expanded and remains strong – Deposits increased $8B from 4Q21 – Loans and leases grew $14B from 4Q21 – CET1 ratio of 10.4% (9.5% minimum); average global liquidity sources5 increased to $1.1T – Repurchased $2.6B of common stock, including repurchases to offset shares awarded under equity-based compensation plans – Paid $1.7B in common dividends • No material direct exposure to Russia – Approximately $700MM in lending and counterparty exposure, substantially all of which is lending – All loans have been downgraded and reported in reservable criticized with increased allowance coverage in 1Q22 2 Note: FTE stands for fully taxable-equivalent basis. 1 Represents a non-GAAP financial measure. For important presentation information about this measure, see slide 33. 2 Dealogic as of April 1, 2022. 3 For more information on reserve build (release), see note A on slide 30. 4 Operating leverage is calculated as the year-over-year percentage change in revenue, net of interest expense, less the percentage change in noninterest expense. 5 See note B on slide 30 for definition of Global Liquidity Sources.
17% 48% 25% 37% 31% 57% 42% 15% 5% 14% vs. 1Q19 vs . 1Q21 Travel & Entertainment Gas Food Retail Services 0% 25% 50% 75% 9% 11% 30% 10% 19% 5% 16%Credit Debit ACH Wires P2P/P2B Cash Check 1Q22 YoY Change in Payment Transaction Volume Consumer Spend Remained Strong; 1Q22 at $980B, up 14% YoY Note: Amounts may not total due to rounding. 1 Total payments include total credit card, debit card, ACH, wires, billpay, person-to-person (P2P), cash and checks. 2 Includes consumer and small business credit card portfolios in Consumer Banking and GWIM. 3 Excludes credit and debit Money Transfers, Charitable Donations and miscellaneous categories with immaterial volume. 4 P2B stands for person-to-business. 1Q22 Credit and Debit Spend2,3 ($ volume) Growth Payment Spend1 ($ volume) and YoY % Growth 3 1Q22 Payment Spend ($ volume) 11% 7% 14% (4)% Credit/Debit ACH/Wire P2P/P2B Cash/Check $713B $778B $859B $980B 3% 9% 10% 14% 1Q19 1Q20 1Q21 1Q22 % of 1Q22 Total 75% 11% 8% 6% $980B 79%4 4 % of 1Q22 Credit / Debit Spend 12% 6% 23% 32% 27%
Daily Loan and Lease Balance Trends ($B) 1 Excludes balances related to PPP (recorded in Commercial) of $3.0B, $4.7B, $8.4B, $15.7B, and $21.1B for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively. End of period total loans and leases were $993.1B, $979.1B, $927.7B, $918.9B, and $903.1B for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively. End of period Commercial loans and leases were $554.3B, $543.4B, $504.3B, $500.8B and $490.9B for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively. Excluding end of period PPP loan balances, total loans and leases were $990.2B and $974.4B for 1Q22 and 4Q21, and Commercial loan balances were $551.3B and $538.7B. Total loans and leases increased $14.0B, and excluding PPP loan balances, increased $15.7B, quarter-over-quarter. Total Commercial loans and leases increased $10.9B, and excluding PPP loan balances, increased $12.6B, quarter-over-quarter. Loan data excludes loans held-for-sale. 2 Credit card and residential mortgage only include balances recorded in Consumer Banking and GWIM, and exclude loans held-for-sale. Loans and Leases in Business Segments ex. PPP1 Credit Card2 Residential Mortgage2 Total Loans and Leases ex. PPP1 4 12/31/19 03/31/22 $850 $900 $950 $1,000 $1,050 $1,100 12/31/19 03/31/22 $350 $400 $450 $500 $550 $600 12/31/19 03/31/22 $70 $80 $90 $100 12/31/19 03/31/22 $195 $200 $205 $210 $215 $220 $225 Commercial Consumer
Mar- 19 Jun- 19 Sep- 19 Dec- 19 Mar- 20 Jun- 20 Sep- 20 Dec- 20 Mar- 21 Jun- 21 Sep- 21 Dec- 21 $0 $1,000 $2,000 $3,000 $4,000 U.S. Households Checkable Deposits and Currency ($B)2 U.S. Household Debt Service Payments as a % of Disposable Personal Income3 Change in BofA Credit Card Customer1 Balances Since 1Q20 30+ days 5-29 days 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1.00% 1.50% 2.00% 2.50% BofA Credit Card 5-29 and 30+ Days Past Due Rates Consumer Resiliency 1 Includes consumer clients who have a primary deposit account with the bank that also have a BAC credit card. Consumer checking accounts are estimated to be the customer’s primary account based on multiple relationship factors (e.g., linked to their direct deposit). 2 Z.1 Financial Accounts of the United States release, The Federal Reserve Board. 3 Household Debt Service and Financial Obligations Ratios release, The Federal Reserve Board. 5 1991 1996 2001 2006 2011 2016 2021 5% 8% 10% 13% 15% (8%) 39% (12%) 39% Avg. Credit Card Balance Avg. Deposit Balance Avg. Credit Card Balance (<680 FICO) Avg. Deposit Balance (<680 FICO) $2.9T higher Deferral related spike (83 bps) (50 bps) vs. 4Q19
10.6% +41 bps (16) bps (11) bps (21) bps (14) bps (4) bps 10.4% 4Q21 Net income applicable to common shareholders Share repurchases Common dividends OCI on AFS debt securities Risk-weighted assets Other 1Q22 Common Equity Tier 1 Ratio1 Drivers Note: Amounts may not total due to rounding. 1 Regulatory capital ratios at March 31, 2022 are preliminary. The Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for Common Equity Tier 1 (CET1) is the Standardized approach for all reporting periods presented. 2 Payout ratio is calculated as share repurchases plus common dividends, divided by net income applicable to common shareholders. 3 Gross share repurchases, excluding shares awarded under equity-based compensation plans. 4 OCI stands for other comprehensive income; AFS stands for available-for-sale. 5 Includes the phase-in impact of Current Expected Credit Losses (CECL) transitional amount. 6 3 Total payout ratio:2 66% 4 5
Notes: Amounts may not total due to rounding. 1 For more information on reserve build (release), see note A on slide 30. 2 Represent non-GAAP financial measures. For more information on pretax, pre-provision income and a reconciliation to GAAP, see note C on slide 30. For important presentation information about these measures, see slide 33. Summary Income Statement ($B, except per share data) 1Q22 4Q21 Inc / (Dec) 1Q21 Inc / (Dec) Total Revenue, net of interest expense $23.2 $22.1 $1.2 5 % $22.8 $0.4 2 % Provision (benefit) for credit losses — (0.5) 0.5 (106) (1.9) 1.9 (102) Net charge-offs 0.4 0.4 — 8 0.8 (0.4) (52) Reserve build (release)1 (0.4) (0.9) 0.5 (57) (2.7) 2.3 (87) Noninterest Expense 15.3 14.7 0.6 4 15.5 (0.2) (1) Pretax Income 7.9 7.8 0.1 1 9.2 (1.3) (14) Pretax, pre-provision income2 7.9 7.3 0.6 8 7.3 0.6 8 Income tax expense 0.8 0.8 — 1 1.1 (0.3) (27) Net income $7.1 $7.0 $0.1 1 $8.1 ($1.0) (12) Diluted earnings per share $0.80 $0.82 ($0.02) (2) $0.86 ($0.06) (7) Average diluted common shares (in millions) 8,202 8,305 (103) (1) 8,756 (554) (6) Return Metrics and Efficiency Ratio Return on average assets 0.89 % 0.88 % 1.13 % Return on average common shareholders' equity 11.0 10.9 12.3 Return on average tangible common shareholders' equity2 15.5 15.2 17.1 Efficiency ratio 66 67 68 1Q22 Financial Results 7
Balance Sheet Metrics 1Q22 4Q21 1Q21 Basel 3 Capital ($B)4 1Q22 4Q21 1Q21 Assets ($B) Common equity tier 1 capital (CET1) $170 $172 $178 Total assets $3,238 $3,169 $2,970 Standardized approach Total loans and leases 993 979 903 Risk-weighted assets $1,640 $1,618 $1,508 Total loans and leases in business segments1 978 963 883 CET1 ratio 10.4 % 10.6 % 11.8 % Total debt securities 970 983 857 Advanced approaches Risk-weighted assets $1,416 $1,399 $1,365 Funding & Liquidity ($B) CET1 ratio 12.0 % 12.3 % 13.0 % Total deposits $2,072 $2,064 $1,885 Supplementary leverage (SLR) Long-term debt 279 280 251 SLR as reported5 5.4 % 5.5 % 7.0 % Global Liquidity Sources (average)2 1,109 1,158 1,003 SLR (without temporary exclusions) 6.1 Equity ($B) Common shareholders' equity $239 $245 $250 Common equity ratio 7.4 % 7.7 % 8.4 % Tangible common shareholders' equity3 $169 $175 $180 Tangible common equity ratio3 5.3 % 5.7 % 6.2 % Per Share Data Book value per common share $29.70 $30.37 $29.07 Tangible book value per common share3 20.99 21.68 20.90 Common shares outstanding (in billions) 8.06 8.08 8.59 1 Excludes loans and leases in All Other. 2 See note B on slide 30 for definition of Global Liquidity Sources. 3 Represent non-GAAP financial measures. For important presentation information, see slide 33. 4 Regulatory capital ratios at March 31, 2022 are preliminary. The Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for Common Equity Tier 1 (CET1) is the Standardized approach for all reporting periods presented. 5 Supplementary leverage exposure at March 31, 2021 excludes U.S. Treasury securities and deposits at Federal Reserve Banks. Balance Sheet, Liquidity and Capital (EOP basis unless noted) 8 • CET1 ratio of 10.4% decreased 26 bps vs. 4Q214 – CET1 capital of $170B decreased $2B from 4Q21, driven by OCI on AFS debt securities and capital distribution to common shareholders, partially offset by net income – Standardized RWA of $1,640B increased $22B from 4Q21, primarily driven by lending growth and Global Markets client activity • Book value per share improved 2% from 1Q21, to $29.70 • $1.1T in average Global Liquidity Sources,2 up $106B, or 11%, from 1Q21
$887 $889 $903 $929 $962 291 282 281 282 284 188 194 200 205 211 330 325 325 339 359 77 88 97 103 109 Consumer Banking GWIM Global Banking Global Markets 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $250 $500 $750 $1,000 $1,250 $908 $908 $921 $945 $978 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $250 $500 $750 $1,000 $1,250 (2%) +12% +9% +40% Average Loan and Lease Trends1 YoY +8% YoY +9% YoY (26%) Note: Amounts may not total due to rounding. 1 Includes balances related to PPP of $3.8B recorded in Consumer $2.2B, GWIM $0.1B and Global Banking $1.5B for 1Q22, balances of $6.4B recorded in Consumer $3.7B, GWIM $0.2B and Global Banking $2.4B for 4Q21, balances of $12.8B recorded in Consumer $8.1B, GWIM $0.5B and Global Banking $4.1B for 3Q21, balances of $19.8B recorded in Consumer $11.4B, GWIM $0.7B and Global Banking $7.7B for 2Q21, and balances of $23.1B recorded in Consumer $13.9B, GWIM $0.7B and Global Banking $8.5B for 1Q21. Total Loans and Leases in All Other ($B) Loans and Leases in Business Segments ($B) Total Loans and Leases by Portfolio ($B) Total Loans and Leases ($B) $418 $413 $419 $428 $435 $489 $494 $501 $517 $543 Consumer loans Commercial loans 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $250 $500 $750 9 Ex. PPP $885 $888 $908 $939 $974 17 15 14 13 12 4 4 4 3 3 $21 $19 $18 $16 $15 Residential mortgage Home equity 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $10 $20 $30 YoY +10%
Consumer Banking ($B) GWIM ($B) Global Banking ($B) Total Corporation ($B) Average Deposit Trends Bank of America Ranked #1 in U.S. Retail Deposit Market Share1 Note: Amounts may not total due to rounding. Total Corporation also includes Global Markets and All Other. 1 Estimated U.S. retail deposits based on June 30, 2021 FDIC deposit data. $326 $333 $339 $361 $385 304 309 314 332 353 23 24 26 29 32 Interest-bearing Noninterest-bearing 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $100 $200 $300 $400 $500 $1,806 $1,889 $1,943 $2,017 $2,046 1,130 1,160 1,178 1,211 1,247 675 729 764 806 799 Interest-bearing Noninterest-bearing 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $500 $1,000 $1,500 $2,000 $2,500 $487 $507 $534 $562 $540 165 163 166 165 157 322 344 368 398 383 Interest-bearing Noninterest-bearing 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $200 $400 $600 +16% +43% +10% +18% YoY +13% YoY +18% YoY +14% (5%) +19% +13% YoY +11% 10 +15% $924 $979 $1,001 $1,027 $1,056 405 425 435 445 458 224 231 232 238 247 295 323 333 344 352 Money market, Savings, CD/IRA Interest checking Noninterest-bearing 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $250 $500 $750 $1,000 $1,250
Net Interest Income (FTE, $B)1 • Net interest income of $11.6B ($11.7B FTE1) – Increased $162MM from 4Q21, driven by lower premium amortization expense and higher loan balances, partially offset by two fewer accrual days and lower PPP fees ▪ Premium amortization expense of $0.9B vs. $1.3B in 4Q21 ▪ PPP NII of $74MM vs. $156MM in 4Q21 • Net interest yield of 1.69% increased 2 bps from 4Q21 – Excluding Global Markets, net interest yield of 1.99%1 • Interest rate sensitivity as of March 31, 20222 – +100 bps parallel shift in the interest rate yield curve is estimated to benefit net interest income by $5.4B over the next 12 months Net Interest Income Increased $1.4B, or 13% YoY Net Interest Yield (FTE)1 Notes: FTE stands for fully taxable-equivalent basis. GM stands for Global Markets. 1 Represent non-GAAP financial measures. Net interest yield adjusted to exclude Global Markets NII of $1.0B, $1.0B, $1.0B, $1.0B and $1.0B and average earning assets of $610.9B, $580.8B, $557.3B, $531.0B and $495.3B for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively. The Company believes the presentation of net interest yield excluding Global Markets provides investors with transparency of NII and net interest yield in core banking activities. For important presentation information, see slide 33. 2 NII asset sensitivity represents banking book positions. See note D on slide 30 for information on asset sensitivity assumptions. 1.68% 1.61% 1.68% 1.67% 1.69% 1.90% 1.83% 1.93% 1.92% 1.99% Reported net interest yield Net interest yield excl. GM 1Q21 2Q21 3Q21 4Q21 1Q22 1.00% 1.50% 2.00% 2.50% $10.3 $10.3 $11.2 $11.5 $11.7 $10.2 $10.2 $11.1 $11.4 $11.6 Net interest income (GAAP) FTE Adjustment 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $5.0 $10.0 $15.0 11
$15.5 $15.0 $14.4 $14.7 $15.3 9.7 8.7 8.7 9.0 9.5 5.8 6.4 5.7 5.7 5.8 Compensation and benefits Other 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $10.0 $20.0 68% 70% 63% 67% 66% 1Q21 2Q21 3Q21 4Q21 1Q22 50% 60% 70% 80% • Noninterest expense of $15.3B decreased $0.2B, or 1%, vs. 1Q21 • Compared to 4Q21, noninterest expense increased $0.6B, driven by seasonally higher payroll taxes and a modest increase in salaries and benefits Total Noninterest Expense ($B) Efficiency Ratio Expense and Efficiency Note: Amounts may not total due to rounding. 12
• Total net charge-offs of $392MM1 increased $30MM from 4Q21 – Consumer net charge-offs of $340MM increased $28MM, driven by Credit Card – Commercial net charge-offs of $52MM remained low • Net charge-off ratio of 16 bps increased 1 bp from 4Q21 and remained near historical lows • Provision for credit losses of $30MM driven primarily by asset quality improvement, offset by a reserve build related to Russian exposure and loan growth; the quarter included a net reserve release of $362MM – Consumer net reserve release of $326MM – Commercial net reserve release of $36MM • Allowance for loan and lease losses of $12.1B represented 1.23% of total loans and leases1 – Total allowance of $13.5B included $1.4B for unfunded commitments • Nonperforming loans (NPLs) remained relatively flat at $4.6B – 56% of Consumer NPLs are contractually current • Commercial reservable criticized utilized exposure of $20.7B decreased $1.7B from 4Q21, driven by decreases across a broad range of industries – Excluding $0.7B of downgrades for Russian exposure, commercial reservable criticized utilized exposure declined $2.4B from 4Q21 Asset Quality 1 Excludes loans measured at fair value. Provision (Benefit) for Credit Losses ($MM) Net Charge-offs ($MM)1 ($1,860) ($1,621) ($624) ($489) $30 1Q21 2Q21 3Q21 4Q21 1Q22 ($2,500) ($2,000) ($1,500) ($1,000) ($500) $0 $500 $823 $595 $463 $362 $392 0.37% 0.27% 0.20% 0.15% 0.16% Net charge-offs Net charge-off ratio 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $250 $500 $750 $1,000 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 13
Commercial Net Charge-offs ($MM) Consumer Net Charge-offs ($MM) Asset Quality – Consumer and Commercial Portfolios 1 Excludes loans measured at fair value. 2 Fully-insured loans are FHA-insured loans and other loans individually insured under long-term standby agreements. 3 C&I includes commercial and industrial, commercial real estate and commercial lease financing. $130 $82 $134 $50 $52 0.11% 0.07% 0.11% 0.04% 0.04% C&I Small business Commercial NCO ratio 1Q21 2Q21 3Q21 4Q21 1Q22 ($50) $0 $50 $100 $150 $200 (0.05)% 0.00% 0.05% 0.10% 0.15% 0.20% $693 $513 $329 $312 $340 0.67% 0.50% 0.31% 0.29% 0.32% Credit card Other Consumer NCO ratio 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $200 $400 $600 $800 0.00% 0.25% 0.50% 0.75% 1.00% Commercial Metrics ($MM) 1Q22 4Q21 1Q21 Provision $16 ($638) ($1,104) Reservable criticized utilized exposure 20,682 22,381 34,283 Nonperforming loans and leases 1,521 1,578 2,071 % of loans and leases1 0.28 % 0.29 % 0.43 % Allowance for loans and leases $5,389 $5,354 $7,533 % of loans and leases1 0.98 % 1.00 % 1.55 % Consumer Metrics ($MM) 1Q22 4Q21 1Q21 Provision $14 $149 ($756) Nonperforming loans and leases 3,104 2,989 3,091 % of loans and leases1 0.71 % 0.69 % 0.75 % Consumer 30+ days performing past due $2,844 $3,105 $3,863 Fully-insured2 817 887 1,030 Non fully-insured 2,027 2,218 2,833 Consumer 90+ days performing past due 1,077 1,132 1,508 Allowance for loans and leases 6,715 7,033 8,635 % of loans and leases1 1.53 % 1.62 % 2.10 % # times annualized NCOs 4.88 x 5.68 x 3.07 x 14 3
• Net income of $3.0B increased 11% from 1Q21, as a result of improved revenue and lower expenses, partially offset by a decrease in provision benefit • Revenue of $8.8B increased 9% from 1Q21, driven by higher NII • Provision for credit losses increased $565MM to a benefit of $52MM, driven by a smaller reserve release • Noninterest expense of $4.9B decreased 4% from 1Q21, primarily driven by the absence of a prior-period impairment charge, partially offset by investments in the business and increased client activity • Record average deposits of more than $1T grew $132B, or 14%, from 1Q21 – 56% of deposits in checking accounts; 92% primary accounts5 • Average loans and leases of $284B decreased $7B, or 2%, from 1Q21 – Excluding PPP, average loans and leases grew $5B vs. 1Q216 • Combined credit / debit card spend4 of $198B increased 15% from 1Q21 – Credit up 25%; debit up 9% • Consumer investment assets3 of $358B grew $33B, or 10%, from 1Q21, driven by client flows from new and existing clients and higher market valuations – $20B of client flows since 1Q21 – Record 3.3MM client accounts, up 7% YoY • 9.5MM Total7 clients enrolled in Preferred Rewards, up 10% from 1Q21 – 99% annualized retention rate Consumer Banking 1 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note C on slide 30. For important presentation information, see slide 33. 2 Cost of deposits calculated as annualized noninterest expense as a percentage of total average deposits within the Deposits sub-segment. 3 Consumer investment assets includes client brokerage assets, deposit sweep balances and assets under management (AUM) in Consumer Banking. 4 Includes consumer credit card portfolios in Consumer Banking and GWIM. 5 Represents the percentage of consumer checking accounts that are estimated to be the customer’s primary account based on multiple relationship factors (e.g., linked to their direct deposit). 6 Average loans and leases was $284B and $291B for 1Q22 and 1Q21. Excluding average PPP loan balances of $2B and $14B, average loan balances were $282B and $277B for the same periods. For important presentation information, see slide 33. 7 As of February, 2022. Includes clients in Consumer, Small Business and GWIM. Inc / (Dec) Summary Income Statement ($MM) 1Q22 4Q21 1Q21 Total revenue, net of interest expense $8,813 ($99) $744 Provision (benefit) for credit losses (52) (84) 565 Noninterest expense 4,921 179 (210) Pretax income 3,944 (194) 389 Pretax, pre-provision income1 3,892 (278) 954 Income tax expense 966 (48) 95 Net income $2,978 ($146) $294 Key Indicators ($B) 1Q22 4Q21 1Q21 Average deposits $1,056.1 $1,026.8 $924.1 Rate paid on deposits 0.02 % 0.02 % 0.03 % Cost of deposits2 1.16 1.11 1.42 Average loans and leases $284.1 $282.3 $290.9 Net charge-off ratio 0.59 % 0.58 % 1.13 % Net charge-offs ($MM) $416 $411 $810 Reserve build (release) ($MM) (468) (379) (1,427) Consumer investment assets3 $357.6 $368.8 $324.5 Active mobile banking users (MM) 33.6 33.0 31.5 % Consumer sales through digital channels 53 % 49 % 49 % Number of financial centers 4,056 4,173 4,324 Combined credit /debit purchase volumes4 $198.5 $211.9 $172.5 Total consumer credit card risk-adjusted margin4 10.40 % 10.85 % 9.29 % Return on average allocated capital 30 32 28 Allocated capital $40.0 $38.5 $38.5 Efficiency ratio 56 % 53 % 64 % 15
• Net income of $1.1B increased 28% from 1Q21 • Record revenue of $5.5B increased 10% compared to 1Q21, driven by higher asset management fees and the NII benefit from strong deposit and loan growth • Noninterest expense of $4.0B increased 4% vs. 1Q21, driven by higher revenue-related incentives • Client balances of more than $3.7T increased 7% from 1Q21, driven by net client flows and higher market valuations – Strong AUM flows of $16B in 1Q22 • Average deposits of $385B increased $59B, or 18%, from 1Q21 • Average loans and leases of $211B increased $22B, or 12%, from 1Q21, driven by securities-based lending, residential mortgage lending and custom lending – 48th consecutive quarter of average loan and lease balance growth • Added ~6,900 net new households in Merrill and ~830 net new relationships in Private Bank in 1Q22 • Record 81% of Merrill households digitally active across the enterprise, and a record 85% of Private Bank clients Global Wealth & Investment Management 1 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note C on slide 30. For important presentation information, see slide 33. Inc / (Dec) Summary Income Statement ($MM) 1Q22 4Q21 1Q21 Total revenue, net of interest expense $5,476 $74 $505 Provision (benefit) for credit losses (41) 15 24 Noninterest expense 4,015 181 148 Pretax income 1,502 (122) 333 Pretax, pre-provision income1 1,461 (107) 357 Income tax expense 368 (30) 82 Net income $1,134 ($92) $251 Key Indicators ($B) 1Q22 4Q21 1Q21 Average deposits $384.9 $360.9 $326.4 Rate paid on deposits 0.03 % 0.03 % 0.03 % Average loans and leases $210.9 $205.2 $188.5 Net charge-off ratio 0.00 % 0.01 % 0.03 % Net charge-offs ($MM) $1 $5 $13 Reserve build (release) ($MM) (42) (61) (78) AUM flows $15.5 $21.6 $18.2 Pretax margin 27 % 30 % 24 % Return on average allocated capital 26 30 22 Allocated capital $17.5 $16.5 $16.5 16
• Net income of $1.7B decreased $0.4B from 1Q21, driven by the absence of a reserve release that benefited the prior period, partially offset by higher revenue and lower noninterest expense • Revenue of $5.2B increased $0.6B vs. 1Q21, reflecting higher leasing-related revenue and higher NII on strong loan and deposit growth, partially offset by lower investment banking fees • Total Corporation investment banking fees of $1.5B (excl. self-led) decreased $0.8B, or 35%, from 1Q21 • Provision for credit losses of $0.2B primarily reflects a reserve build driven by Russian exposure and loan growth, compared to a reserve release in 1Q21 • Noninterest expense of $2.7B decreased 4% from 1Q21, primarily driven by lower incentive compensation due to the absence of 1Q21 award changes • Average deposits of $540B increased $53B, or 11%, from 1Q21, reflecting client liquidity and valued relationships • Average loans and leases of $359B increased 9% from 1Q21, reflecting increased client demand Global Banking 1 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities and sales and trading activities. 2 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note C on slide 30. For important presentation information about this measure, see slide 33. 3 Prior periods have been revised to conform to current-period presentation. Inc / (Dec) Summary Income Statement ($MM) 1Q22 4Q21 1Q21 Total revenue, net of interest expense1 $5,194 ($713) $561 Provision (benefit) for credit losses 165 628 1,291 Noninterest expense 2,683 (34) (99) Pretax income 2,346 (1,307) (631) Pretax, pre-provision income2 2,511 (679) 660 Income tax expense 622 (364) (182) Net income $1,724 ($943) ($449) Selected Revenue Items ($MM) 1Q22 4Q21 1Q21 Total Corporation IB fees (excl. self-led)1 $1,457 $2,351 $2,246 Global Banking IB fees1 880 1,465 1,172 Business Lending revenue 2,111 2,241 1,607 Global Transaction Services revenue3 2,088 2,069 1,705 Key Indicators ($B) 1Q22 4Q21 1Q21 Average deposits $539.9 $562.4 $487.0 Average loans and leases 358.8 338.6 330.1 Net charge-off ratio (0.01) % (0.03) % 0.05 % Net charge-offs ($MM) ($12) ($28) $36 Reserve build (release) ($MM) 177 (435) (1,162) Return on average allocated capital 16 % 25 % 21 % Allocated capital $44.5 $42.5 $42.5 Efficiency ratio 52 % 46 % 60 % 17
Global Markets1 • Net income of $1.6B decreased $459MM from 1Q21 – Excluding net DVA, net income of $1.5B decreased 25%3 • Revenue of $5.3B decreased 15% from 1Q21; excluding net DVA, revenue decreased 16%,3 driven by lower FICC sales and trading revenue and investment banking fees • Reported sales and trading revenue of $4.7B, decreased 7% from 1Q21 – FICC revenue decreased to $2.7B, driven by the absence of gains in commodities from a weather- related event in 1Q21 and a weaker credit trading environment, partially offset by improved performance across macro products – Equities revenue increased to $2.0B, driven by increased client activity and a strong trading performance in derivatives • Excluding net DVA, sales and trading revenue of $4.7B decreased 8% from 1Q213 – FICC revenue of $2.6B decreased 19%3 – Equities revenue of $2.0B increased 9%3 • Noninterest expense of $3.1B decreased 9% vs. 1Q21, driven by the absence of expenses related to a liquidating business activity, which was realigned from Global Markets to All Other5 in 4Q21, and lower incentive compensation due to the absence of 1Q21 award changes • Average VaR of $79MM in 1Q226 1 The explanations for current period-over-period changes for Global Markets are the same for amounts including and excluding net DVA. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 3 Represents a non-GAAP financial measure. Reported FICC sales and trading revenue was $2.7B, $1.6B and $3.2B for 1Q22, 4Q21 and 1Q21, respectively. Reported Equities sales and trading revenue was $2.0B, $1.4B and $1.8B for 1Q22, 4Q21 and 1Q21, respectively. See note E on slide 30 and slide 33 for important presentation information. 4 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note C on slide 30. For important presentation information, see slide 33. 5 For more information on the liquidating business realignment, see note F on slide 30. 6 See note G on slide 30 for the definition of VaR. Inc / (Dec) Summary Income Statement ($MM) 1Q22 4Q21 1Q21 Total revenue, net of interest expense2 $5,292 $1,474 ($906) Net DVA 69 67 71 Total revenue (excl. net DVA)2,3 5,223 1,407 (977) Provision (benefit) for credit losses 5 (27) 10 Noninterest expense 3,117 235 (310) Pretax income 2,170 1,266 (606) Pretax, pre-provision income4 2,175 1,239 (596) Income tax expense 575 340 (147) Net income $1,595 $926 ($459) Net income (excl. net DVA)3 $1,543 $876 ($513) Selected Revenue Items ($MM)2 1Q22 4Q21 1Q21 Sales and trading revenue $4,719 $2,936 $5,078 Sales and trading revenue (excl. net DVA)3 4,650 2,934 5,080 FICC (excl. net DVA)3 2,648 1,569 3,251 Equities (excl. net DVA)3 2,002 1,365 1,829 Global Markets IB fees 582 832 981 Key Indicators ($B) 1Q22 4Q21 1Q21 Average total assets $858.7 $817.0 $723.3 Average trading-related assets 596.2 564.3 501.8 Average 99% VaR ($MM)6 79 63 74 Average loans and leases 108.6 102.6 77.4 Net charge-offs ($MM) 21 10 3 Reserve build (release) ($MM) (16) 22 (8) Return on average allocated capital 15 % 7 % 22 % Allocated capital $42.5 $38.0 $38.0 Efficiency ratio 59 % 75 % 55 % 18
All Other1 • Net loss of $0.4B compared to net income of $0.3B in 1Q21 • Revenue declined $0.5B from 1Q21, reflecting higher partnership losses for Environmental, Social and Governance (ESG) investments (offset in All Other tax expense) • Noninterest expense increased $0.3B vs. 1Q21, driven primarily by the realignment of a liquidating business activity from Global Markets to All Other3 in 4Q21 • Total corporate effective tax rate (ETR) for the quarter was 10.3%. Excluding ESG tax credits, the ETR would have been approximately 24% 1 All Other primarily consists of asset and liability management (ALM) activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments. 2 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note C on slide 30. For important presentation information, see slide 33. 3 For more information on the liquidating business realignment, see note F on slide 30. Inc/(Dec) Summary Income Statement ($MM) 1Q22 4Q21 1Q21 Total revenue, net of interest expense ($1,441) $433 ($502) Provision (benefit) for credit losses (47) (13) — Noninterest expense 583 27 275 Pretax income (1,977) 419 (777) Pretax, pre-provision income2 (2,024) 406 (777) Income tax (benefit) (1,613) 110 (157) Net income (loss) ($364) $309 ($620) 19
Supplemental Business Segment Trends
Total Expense ($B) and Efficiency Business Leadership1 • No. 1 in estimated U.S. Retail Deposits(A) • No. 1 Online Banking and Mobile Banking Functionality(B) • No. 1 in customer satisfaction for U.S. Online(C) Banking among National Banks by J.D. Power(D) • No. 1 in customer satisfaction for U.S. Mobile Banking Apps among National Banks by J.D. Power(D) • No. 1 in customer satisfaction for U.S. Retail Banking Advice by J.D. Power(E) • No. 1 in customer satisfaction with Merchant Services by J.D. Power(F) • Best Consumer Digital Bank in the U.S.(G) • Certified by J.D. Power for providing outstanding client satisfaction for financial wellness support(H) Total Revenue ($B) Average Deposits ($B) Consumer Investment Assets3 ($B) and Accounts (MM) Average Loans and Leases ($B)2 Consumer Banking Trends Note: Amounts may not total due to rounding. 1 See slide 31 for business leadership sources. 2 Average loans and leases includes PPP balances of $2B in 1Q22, $4B in 4Q21, $8B in 3Q21, $11B in 2Q21, and $14B in 1Q21. 3 End of period. Consumer investment assets includes client brokerage assets, deposit sweep balances and AUM in Consumer Banking. $8.1 $8.2 $8.8 $8.9 $8.8 5.9 6.0 6.5 6.5 6.7 2.1 2.2 2.3 2.4 2.1 Net interest income Noninterest income 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $2.5 $5.0 $7.5 $10.0 $5.1 $4.9 $4.6 $4.7 $4.9 64% 59% 52% 53% 56% Noninterest expense Efficiency ratio 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $2.0 $4.0 $6.0 40% 50% 60% 70% 80% $924 $979 $1,001$1,027$1,056 515 550 562 578 593 409 429 439 449 463 Checking Other 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $200 $400 $600 $800 $1,000 $1,200 $291 $282 $281 $282 $284 114 110 111 113 115 72 71 73 76 76 47 47 48 49 50 26 25 24 23 22 32 30 27 22 21 Residential mortgage Consumer credit card Vehicle lending Home equity Small business / other 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $100 $200 $300 $400 21 $324 $346 $353 $369 $358 3.1 3.2 3.2 3.3 3.3 Assets Accounts 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $100 $200 $300 $400 2.0 2.5 3.0 3.5 4.0
674 931 1,049 940 977 1Q21 2Q21 3Q21 4Q21 1Q22 0 500 1,000 1,500 Home Equity New Originations ($B)1,3 Consumer Creditworthiness Remains Strong 1 Includes loan production within Consumer Banking and GWIM. For consumer credit card balances, includes average balances of $3B, $3B, and $2B in 1Q22, 4Q21 and 1Q21, respectively, within GWIM. 2 Calculated as the difference between total revenue, net of interest expense, and net credit losses divided by average loans. 3 Amounts represent the unpaid principal balance of loans and in the case of home equity, the principal amount of the total line of credit. 4 Represents Consumer Banking only. Consumer Vehicle Lending New Originations ($B) Consumer Credit Card New Accounts (000s)1 22 Residential Mortgage New Originations ($B)1,3 Key Stats 1Q21 4Q21 1Q22 Average outstandings ($B) 74.2 78.4 78.4 NCO ratio 3.47% 1.42% 1.53% Risk-adjusted margin2 9.29% 10.85% 10.40% Average line FICO 771 770 770 $5.2 $7.1 $6.8 $6.8 $7.1 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $5.0 $10.0 Key Stats 1Q21 4Q21 1Q22 Average outstandings ($B) 46.6 48.6 49.9 NCO ratio 0.26% (0.02%) 0.03% Average booked FICO 790 788 790 $15.2 $20.3 $21.2 $23.0 $16.4 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $10.0 $20.0 $30.0 Key Stats 1Q21 4Q21 1Q22 Average outstandings ($B)4 113.7 112.9 115.4 NCO ratio4 0.01% 0.01% 0.01% Average FICO 776 774 771 Average booked loan-to-value (LTV) 64% 63% 64% $0.5 $1.2 $1.5 $1.7 $2.0 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $2.5 $5.0 Key Stats 1Q21 4Q21 1Q22 Average outstandings ($B)4 26.5 22.7 22.0 NCO ratio4 (0.07%) (0.05%) (0.10%) Average FICO 805 797 800 Average booked combined LTV 51% 59% 59%
Checks vs. Zelle Sent Transactions (MM) 173 157 128 120 41 70 112 140 Checks written Zelle sent transactions 1Q19 1Q20 1Q21 1Q22 0 50 100 150 200 Digital SalesDigital Users1 and Households2 Digital Channel Usage3,4 921 1,081 1,360 1,721 30% 33% 49% 53% Digital unit sales (K) Digital as a % of total sales 1Q19 1Q20 1Q21 1Q22 0 250 500 750 1,000 1,250 1,500 1,750 0% 20% 40% 60% 80% 100% 1,953 2,166 2,579 2,748 523 586 786 813 Digital channel usage (MM) Digital appointments (K) 1Q19 1Q20 1Q21 1Q22 1,000 1,500 2,000 2,500 3,000 250 500 750 1,000 37 39 40 42 47 50 52 54 64% 68% 70% 71% Active users (MM) Verified users (MM) Household adoption % 1Q19 1Q20 1Q21 1Q22 20 30 40 50 60 50% 60% 70% 80% 90% 100% Client Engagement Person-to-Person Payments (Zelle)5 Digital Volumes 58 102 170 213 $16 $27 $49 $65 Transactions (MM) Volume ($B) 1Q19 1Q20 1Q21 1Q22 0 50 100 150 200 250 $0 $20 $40 $60 $80 54MM Verified and 42MM Active Digital Users1 in 1Q22 Note: Amounts may not total due to rounding. 1 Digital active users represents mobile and/or online 90-day active users; verified users represent those with a digital identification and password. 2 Household adoption represents households with consumer bank login activities in a 90-day period, as of February, 2022. 3 Digital channel usage represents the total number of desktop and mobile banking sessions. 4 Digital appointments represent the number of client-scheduled appointments made via online, smartphone or tablet. 5 Includes Bank of America person-to-person payments sent and received through e-mail or mobile identification. Zelle users represent 90-day active users. Total Erica Users and Interactions (MM) 6.3 12.2 19.5 26.2 27.8 105.6 123.7 Erica users Erica interactions 1Q19 1Q20 1Q21 1Q22 0.0 5.0 10.0 15.0 20.0 25.0 30.0 0.0 50.0 100.0 150.0 200.0 7.2 10.4 13.5 16.2 users (MM) 23 Digital Adoption 16.5
Average Deposits ($B) Global Wealth & Investment Management Trends Business Leadership1 • No. 1 on Forbes’ Top 100 Women Advisors (2022), Top Women Advisors Best-in State (2022), Best-in- State Wealth Advisors (2022) and Top Next Generation Advisors (2021) • No. 1 on Barron’s Top 100 Women Financial Advisors List (2021) • MMI/Barron’s Industry Awards for Digital Innovation – Digital Wealth Overview (2021) • Celent Model Wealth Manager award for Client Experience (2022) • No. 1 in personal trust AUM(I) • Best Private Bank for Customer Service (U.S.)(J) • Best Private Bank for Philanthropic Services (Global) and Most Innovative Private Bank (North America)(K) • Best Private Bank in North America(L) Note: Amounts may not total due to rounding. 1 See slide 31 for business leadership sources. 2 Average loans and leases includes PPP balances of $0.1B in 1Q22, $0.2B in 4Q21, $0.5B in 3Q21, $0.7B in 2Q21, and $0.7B in 1Q21. 3 End of period. Loans and leases includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet. 4 Managed deposits in investment accounts of $53B, $56B, $49B, $47B and $49B for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively, are included in both AUM and Deposits. Total client balances only include these balances once. Average Loans and Leases ($B)2 Total Revenue ($B) Client Balances ($B)3,4 $5.0 $5.1 $5.3 $5.4 $5.5 1.3 1.4 1.5 1.5 1.7 3.0 3.1 3.2 3.2 3.2 0.7 0.6 0.6 0.6 0.6 Net interest income Asset management fees Brokerage / Other 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $2.0 $4.0 $6.0 1,467 1,549 1,579 1,639 1,572 1,535 1,619 1,612 1,655 1,593 333 331 346 390 385193 201 205 212 217 $3,480 $3,653 $3,693 $3,840 $3,714 AUM Brokerage / Other Deposits Loans and leases 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $1,000 $2,000 $3,000 $4,000 $188 $194 $200 $205 $211 91 92 94 96 99 45 47 50 53 55 50 52 53 54 55 Consumer real estate Securities-based lending Custom lending Credit card 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $50 $100 $150 $200 $250 $326 $333 $339 $361 $385 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $100 $200 $300 $400 24
Global Wealth & Investment Management Digital Update1 GWIM2 81%, up from 79% Record 81% of Merrill3 households digitally active across the enterprise, up from 80% in 1Q21 Record 85% of Private Bank4 relationships digitally active across the enterprise, up from 82% in 1Q21 Digital Adoption 1.7MM Secure messages YTD 380K households using secure messages +19% Erica interactions YoY growth Advisors received 2.2MM client insights 48K Secure messages YTD Client advisor messages up 40% YoY +24% Erica interactions YoY growth Zelle transactions up 41% YoY Digital wallet transactions up 66% YoY 76% Households enrolled in eDelivery (record) 51% of eligible forms signed digitally 76% Eligible checks deposited through automated channels (record) Up from 73% last year Client Engagement Online Mobile Digital Volume 1 Except where otherwise noted, reflects figures for 1Q22. 2 GWIM Digital Adoption is Merrill Digital Households, plus Digital Private Bank Relationships out of total Merrill Primary Households, plus Private Bank Core Relationships as of February, 2022 vs. February, 2021. 3 Merrill households represent those households $250K+ as of March, 2022. 4 Private Banking core relationships reflect relationships $3MM+ and excludes: Irrevocable Trust-only relationships; Institutional Philanthropic relationships; Existing relationships as of February, 2022. Advisor-led Client Interactions, Powered by Digital 25 Merrill Private Bank
Global Banking Trends Note: Amounts may not total due to rounding. 1 See slide 31 for business leadership sources. 2 Average loans and leases includes PPP balances of $1B in 1Q22, $2B in 4Q21, $4B in 3Q21, $8B in 2Q21 and $9B in 1Q21. 3 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 4 Self-led deals of $72MM, $28MM, $56MM, $97MM and $42MM for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively are embedded within Debt, Equity, and Advisory. Total Corporation IB fees excludes self-led deals. 5 Advisory includes fees on debt and equity advisory and mergers and acquisitions. Average Deposits ($B)Business Leadership1 • Outstanding Financial Innovator – 2021 Global(K) • North America’s Best Bank for Small to Medium-sized Enterprises(M) • Best Global Bank for Payments & Collections(N) • Model Bank for Corporate Digital Banking – For CashPro App(O) • Best Bank for Cash Management in North America(N) • World’s Best Bank for Payments and Treasury and North America’s Best Bank for Transaction Services(M) • Best Transaction Bank in North America, Best Supply Chain Finance Bank(P) • 2021 Quality, Share and Excellence Awards for U.S. Large Corporate Banking and Cash Management(Q) • Outstanding Global Leader in Social Bonds, Outstanding Leader in Social Bonds and Sustainable Loans for North America(K) • Relationships with 74% of the Global Fortune 500; 95% of the U.S. Fortune 1,000 (2021) Average Loans and Leases ($B)2 Total Revenue ($B)3 Total Corporation IB Fees ($MM)4 $4.6 $5.1 $5.2 $5.9 $5.2 2.0 2.0 2.2 2.4 2.3 1.2 1.2 1.3 1.5 0.9 0.8 0.9 0.9 0.9 0.9 0.6 1.0 0.9 1.2 1.1 Net interest income IB fees Service charges All other income 1Q21 2Q21 3Q21 4Q21 1Q22 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 988 1,110 933 984 831 900 702 637 545 225 400 407 654 850 473 $2,246 $2,122 $2,168 $2,351 $1,457 Debt Equity Advisory 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $500 $1,000 $1,500 $2,000 $2,500 160 157 160 167 177 148 148 148 156 167 13 13 13 13 13$330 $325 $325 $339 $359 Commercial Corporate Business Banking 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $100 $200 $300 $400 5 $487 $507 $534 $562 $540 Noninterest-bearing Interest bearing 1Q21 2Q21 3Q21 4Q21 1Q22 $0 $100 $200 $300 $400 $500 $600 26 66% 68% 69% 71% 71% 34% 32% 31% 29% 29%
Global Banking Digital Update 74% Digitally active clients across commercial, corporate, and business banking clients (CashPro® & BA360 platforms) 133 bps YoY1 Digital Adoption 1.7MM Sign-ins on the CashPro® App, rolling 12 months2 51% YoY $454B Payment approvals on the CashPro® App, rolling 12 months2 118% YoY ~31MM Intelligent Receivables® (digitally matched), rolling 12 months1 56% YoY 63K Global digital wallet account enrollment for commercial cards 54% YoY1 ~63MM Proactive alerts and insights from CashPro®, rolling 12 months2 15% YoY 1.6MM Global payments to digital wallets, rolling 12 months1 38% YoY Client Engagement Online Mobile Connect API Digital Volumes 1 As of February, 2022. 2 As of March, 2022. Creating an innovative digital experience for our clients 27
Global Markets Trends and Revenue Mix Note: Amounts may not total due to rounding. 1 See slide 31 for business leadership sources. 2 Represents a non-GAAP financial measure. Reported Global Markets revenue was $5.3B for 1Q22. Reported sales and trading revenue was $4.7B, $5.1B, $4.6B and $3.5B for 1Q22, 1Q21, 1Q20 and 1Q19, respectively. Reported FICC sales and trading revenue was $2.7B, $3.2B, $2.9B and $2.3B for 1Q22, 1Q21, 1Q20 and 1Q19, respectively. Reported Equities sales and trading revenue was $2.0B, $1.8B, $1.7B and $1.2B for 1Q22, 1Q21, 1Q20 and 1Q19, respectively. See note E on slide 30 and slide 33 for important presentation information. 3 Macro includes currencies, interest rates and commodities products. 4 See note G on slide 30 for definition of VaR. 1Q22 Global Markets Revenue Mix (excl. net DVA)2 Business Leadership1 • Global Derivatives House of the Year(R) • Clearing House of the Year(R) • Interest Rate Derivatives House of the Year(S) • Overall Leader for North America in Sustainable Finance(K) • No. 2 Global Research Firm(T) • No. 2 Global Fixed Income Research Team(T) • No. 1 Municipal Bonds Underwriter(U) 1Q22 Total FICC Sales and Trading Revenue Mix (excl. net DVA)2 Total Sales and Trading Revenue (excl. net DVA) ($B)2 Average Trading-Related Assets ($B) and VaR ($MM)4 $3.6 $4.3 $5.1 $4.7 2.4 2.7 3.3 2.6 1.2 1.7 1.8 2.0 FICC Equities 1Q19 1Q20 1Q21 1Q22 $0.0 $2.0 $4.0 $6.0 $474 $503 $502 $596 $37 $48 $74 $79 Avg. trading-related assets Avg. VaR 1Q19 1Q20 1Q21 1Q22 $0 $250 $500 $750 $0 $40 $80 $120 59% 41% U.S. / Canada International 34% 66% Credit / Other Macro3 28
Additional Presentation Information
A Reserve Build (or Release) is calculated by subtracting net charge-offs for the period from the provision for credit losses recognized in that period. The period-end allowance, or reserve, for credit losses reflects the beginning of the period allowance adjusted for net charge-offs recorded in that period plus the provision for credit losses recognized in that period. B Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, inclusive of U.S. government securities, U.S. agency securities, U.S. agency MBS, and a select group of non-U.S. government and supranational securities, and other investment-grade securities, and are readily available to meet funding requirements as they arise. It does not include Federal Reserve Discount Window or Federal Home Loan Bank borrowing capacity. Transfers of liquidity among legal entities may be subject to certain regulatory and other restrictions. Notes C Pretax, pre-provision income (PTPI) at the consolidated level is a non-GAAP financial measure calculated by adjusting consolidated pretax income to add back provision for credit losses. Similarly, PTPI at the segment level is a non-GAAP financial measure calculated by adjusting the segments’ pretax income to add back provision for credit losses. Management believes that PTPI (both at the consolidated and segment level) is a useful financial measure as it enables an assessment of the Company’s ability to generate earnings to cover credit losses through a credit cycle as well as provides an additional basis for comparing the Company's results of operations between periods by isolating the impact of provision for credit losses, which can vary significantly between periods. See reconciliation below. D Interest rate sensitivity as of March 31, 2022, reflects the pretax impact to forecasted net interest income over the next 12 months from March 31, 2022 resulting from an instantaneous parallel shock to the market-based forward curve. The sensitivity analysis assumes that we take no action in response to this rate shock and does not assume any change in other macroeconomic variables normally correlated with changes in interest rates. As part of our asset and liability management activities, we use securities, certain residential mortgages, and interest rate and foreign exchange derivatives in managing interest rate sensitivity. The behavior of our deposits portfolio in the forecast is a key assumption in our projected estimate of net interest income. The sensitivity analysis assumes no change in deposit portfolio size or mix from our baseline forecast to the alternate rate environment. In higher rate scenarios, any customer activity resulting in the replacement of low-cost or noninterest-bearing deposits with higher yielding deposits or market- based funding would reduce our benefit in those scenarios. E Revenue for all periods included net debit valuation adjustments (DVA) on derivatives, as well as amortization of own credit portion of purchase discount and realized DVA on structured liabilities. Net DVA gains (losses) were $69MM, $2MM, ($2MM), $300MM and ($90MM) for 1Q22, 4Q21, 1Q21, 1Q20 and 1Q19, respectively. Net DVA gains (losses) included in FICC revenue were $60MM, $4MM, ($9MM), $274MM and ($79MM) for 1Q22, 4Q21, 1Q21, 1Q20 and 1Q19, respectively. Net DVA (losses) included in Equities revenue were $9MM, ($2MM), $7MM, $26MM and ($11MM) for 1Q22, 4Q21, 1Q21, 1Q20 and 1Q19, respectively. F Effective October 1, 2021, a business activity previously included in the Global Markets segment is being reported as a liquidating business in All Other, consistent with a realignment in performance reporting to senior management. The activity was not material to Global Market's results of operations and historical results for 1Q21 were not restated. G VaR model uses a historical simulation approach based on three years of historical data and an expected shortfall methodology equivalent to a 99% confidence level. Using a 95% confidence level, average VaR was $30MM, $26MM, $26MM, $27MM and $21MM for 1Q22, 4Q21, 1Q21, 1Q20 and 1Q19, respectively. $ Millions 1Q22 4Q21 1Q21 Pretax Income (GAAP) Provision for Credit Losses (GAAP) Pretax, Pre-provision Income Pretax Income (GAAP) Provision for Credit Losses (GAAP) Pretax, Pre-provision Income Pretax Income (GAAP) Provision for Credit Losses (GAAP) Pretax, Pre-provision Income Consumer Banking $ 3,944 $ (52) $ 3,892 $ 4,138 $ 32 $ 4,170 $ 3,555 $ (617) $ 2,938 Global Wealth & Investment Management 1,502 (41) 1,461 1,624 (56) 1,568 1,169 (65) 1,104 Global Banking 2,346 165 2,511 3,653 (463) 3,190 2,977 (1,126) 1,851 Global Markets 2,170 5 2,175 904 32 936 2,776 (5) 2,771 All Other (1,977) (47) (2,024) (2,396) (34) (2,430) (1,200) (47) (1,247) Total Corporation $ 7,879 $ 30 $ 7,909 $ 7,818 $ (489) $ 7,329 $ 9,166 $ (1,860) $ 7,306 30
Business Leadership Sources (A) Estimated U.S. retail deposits based on June 30, 2021 FDIC deposit data. (B) Javelin 2021 Online and Mobile Banking Scorecards. (C) Tied in the national segment of the J.D. Power 2021 U.S. Online Banking Satisfaction Study. (D) J.D. Power’s 2021 U.S. Banking Mobile App Satisfaction, U.S. Online Banking Satisfaction studies measure overall satisfaction with banking digital channels based on four factors: navigation; speed; visual appeal; and information/content. The studies are based on responses from 9,926 retail bank customers nationwide and were fielded in March-April 2021. For J.D. Power award information, visit jdpower.com/awards. (E) J.D. Power 2021 U.S. Retail Banking Advice Satisfaction Study. (F) Bank of America received the highest score in the J.D. Power 2022 Merchant Services Satisfaction Study of customers’ satisfaction with credit card/debit payment processors among small business owners/operators. Visit jdpower.com/awards for more details. (G) Global Finance, August 2021. (H) J.D. Power 2022 Financial Health Support CertificationSM is based on exceeding customer experience benchmarks using client surveys and a best practices verification. For more information, visit jdpower.com/awards. (I) Industry Q4-21 FDIC call reports. (J) PWM, a Financial Times publication, 2021. (K) Global Finance, 2021. (L) The Digital Banker, 2021. (M) Euromoney, 2021. (N) Global Finance Treasury & Cash Management Awards, 2022. (O) Celent, 2022 (P) Transaction Banking Awards, The Banker, 2021. (Q) Greenwich, 2022. (R) GlobalCapital, 2021. (S) Risk.net, 2022. (T) Institutional Investor, 2021. (U) Refinitiv, 2022. 31
Forward-Looking Statements Bank of America Corporation (the “Company”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Company’s current expectations, plans or forecasts of its future results, revenues, provision for credit losses, expenses, efficiency ratio, capital measures, strategy, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Company’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Company’s 2021 Annual Report on Form 10-K and in any of the Company’s subsequent Securities and Exchange Commission filings: the Company’s potential judgments, orders, settlements, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions, including as a result of our participation in and execution of government programs related to the Coronavirus Disease 2019 (COVID-19) pandemic; such as the processing of unemployment benefits for California and certain other states; the possibility that the Company's future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the possibility that the Company could face increased claims from one or more parties involved in mortgage securitizations; the Company’s ability to resolve representations and warranties repurchase and related claims; the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Company’s exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, inflation, currency exchange rates, economic conditions, trade policies and tensions, including tariffs, and potential geopolitical instability; the impact of the interest rate and inflationary environment on the Company’s business, financial condition and results of operations; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on the economic recovery and our business; the Company’s concentration of credit risk; the Company's ability to achieve its expense targets and expectations regarding revenue, net interest income, provision for credit losses, net charge-offs, effective tax rate, loan growth or other projections; adverse changes to the Company’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company’s assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements, stress capital buffer requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Company’s capital plans; the effect of changes in or interpretations of income tax laws and regulations; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including, but not limited to, recovery and resolution planning requirements, Federal Deposit Insurance Corporation assessments, the Volcker Rule, fiduciary standards, derivatives regulations and the Coronavirus Aid, Relief, and Economic Security Act and any similar or related rules and regulations; a failure or disruption in or breach of the Company’s operational or security systems or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; the transition and physical impacts of climate change; our ability to achieve environmental, social and governance goals and commitments or the impact of any changes in the Company's sustainability strategy or commitments generally; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary or regulatory policy; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the U.S. and/or global, financial market conditions and our business, results of operations, financial condition and prospects; the impact of natural disasters, extreme weather events, military conflict (including the Russia-Ukraine conflict), terrorism or other geopolitical events; and other matters. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. 32
• The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. • The Company may present certain metrics and ratios, including year-over-year comparisons of revenue, noninterest expense and pretax income, excluding certain items (e.g., DVA) that are non-GAAP financial measures. The Company believes the use of these non-GAAP financial measures provides additional clarity in understanding its results of operations and trends. For more information about the non-GAAP financial measures contained herein, please see the presentation of the most directly comparable financial measures calculated in accordance with GAAP and accompanying reconciliations in the earnings press release for the quarter ended March 31, 2022, and other earnings-related information available through the Bank of America Investor Relations website at: https://investor.bankofamerica.com/quarterly-earnings. • The Corporation presents certain key financial and nonfinancial performance indicators that management uses when assessing consolidated and/or segment results. The Corporation believes this information is useful because it provides management with information about underlying operational performance and trends. KPIs are presented in 1Q22 Financial Results on slide 7 and on the Summary Income Statement for each segment. • The Company views net interest income and related ratios and analyses on a fully taxable-equivalent (FTE) basis, which when presented on a consolidated basis are non-GAAP financial measures. The Company believes managing the business with net interest income on an FTE basis provides investors with meaningful information on the interest margin for comparative purposes. The Company believes that the presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices. The FTE adjustment was $106MM, $105MM, $101MM, $110MM and $111MM for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively. • The Company allocates capital to its business segments using a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. The Company's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's credit, market, interest rate, business and operational risk components. Allocated capital is reviewed periodically and refinements are made based on multiple considerations that include, but are not limited to, risk-weighted assets measured under Basel 3 Standardized and Advanced approaches, business segment exposures and risk profile, and strategic plans. As a result of this process, in the first quarter of 2022, the Company adjusted the amount of capital being allocated to its business segments. Important Presentation Information 33
Supplemental Information
First Quarter 2022
Current-period information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America Corporation (the Corporation) does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in the Corporation’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at the Corporation’s website (www.bankofamerica.com). The Corporation’s future financial performance is subject to risks and uncertainties as described in its SEC filings.
| Bank of America Corporation and Subsidiaries | |||||
| Table of Contents | Page | ||||
| Consumer Banking | |||||
| Global Wealth & Investment Management | |||||
| Global Banking | |||||
| Global Markets | |||||
| All Other | |||||
Key Performance Indicators | |||||
| The Corporation presents certain key financial and nonfinancial performance indicators that management uses when assessing consolidated and/or segment results. The Corporation believes this information is useful because it provides management with information about underlying operational performance and trends. Key performance indicators are presented in Consolidated Financial Highlights on page 2 and on the Key Indicators pages for each segment. | |||||
Business Segment Operations | |||||
The Corporation reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis. Additionally, the results for the total Corporation as presented on pages 11 - 12 are reported on an FTE basis. | |||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Consolidated Financial Highlights | |||||||||||||||||||||||||||||
| (In millions, except per share information) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Income statement | |||||||||||||||||||||||||||||
| Net interest income | $ | 11,572 | $ | 11,410 | $ | 11,094 | $ | 10,233 | $ | 10,197 | |||||||||||||||||||
| Noninterest income | 11,656 | 10,650 | 11,672 | 11,233 | 12,624 | ||||||||||||||||||||||||
| Total revenue, net of interest expense | 23,228 | 22,060 | 22,766 | 21,466 | 22,821 | ||||||||||||||||||||||||
| Provision for credit losses | 30 | (489) | (624) | (1,621) | (1,860) | ||||||||||||||||||||||||
| Noninterest expense | 15,319 | 14,731 | 14,440 | 15,045 | 15,515 | ||||||||||||||||||||||||
| Income before income taxes | 7,879 | 7,818 | 8,950 | 8,042 | 9,166 | ||||||||||||||||||||||||
Pretax, pre-provision income (1) | 7,909 | 7,329 | 8,326 | 6,421 | 7,306 | ||||||||||||||||||||||||
| Income tax expense | 812 | 805 | 1,259 | (1,182) | 1,116 | ||||||||||||||||||||||||
| Net income | 7,067 | 7,013 | 7,691 | 9,224 | 8,050 | ||||||||||||||||||||||||
| Preferred stock dividends | 467 | 240 | 431 | 260 | 490 | ||||||||||||||||||||||||
| Net income applicable to common shareholders | 6,600 | 6,773 | 7,260 | 8,964 | 7,560 | ||||||||||||||||||||||||
| Diluted earnings per common share | 0.80 | 0.82 | 0.85 | 1.03 | 0.86 | ||||||||||||||||||||||||
| Average diluted common shares issued and outstanding | 8,202.1 | 8,304.7 | 8,492.8 | 8,735.5 | 8,755.6 | ||||||||||||||||||||||||
| Dividends paid per common share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.18 | $ | 0.18 | |||||||||||||||||||
| Performance ratios | |||||||||||||||||||||||||||||
| Return on average assets | 0.89 | % | 0.88 | % | 0.99 | % | 1.23 | % | 1.13 | % | |||||||||||||||||||
| Return on average common shareholders’ equity | 11.02 | 10.90 | 11.43 | 14.33 | 12.28 | ||||||||||||||||||||||||
| Return on average shareholders’ equity | 10.64 | 10.27 | 11.08 | 13.47 | 11.91 | ||||||||||||||||||||||||
Return on average tangible common shareholders’ equity (2) | 15.51 | 15.25 | 15.85 | 19.90 | 17.08 | ||||||||||||||||||||||||
Return on average tangible shareholders’ equity (2) | 14.40 | 13.87 | 14.87 | 18.11 | 16.01 | ||||||||||||||||||||||||
| Efficiency ratio | 65.95 | 66.78 | 63.43 | 70.09 | 67.98 | ||||||||||||||||||||||||
| At period end | |||||||||||||||||||||||||||||
| Book value per share of common stock | $ | 29.70 | $ | 30.37 | $ | 30.22 | $ | 29.89 | $ | 29.07 | |||||||||||||||||||
Tangible book value per share of common stock (2) | 20.99 | 21.68 | 21.69 | 21.61 | 20.90 | ||||||||||||||||||||||||
| Market capitalization | 332,320 | 359,383 | 349,841 | 349,925 | 332,337 | ||||||||||||||||||||||||
| Number of financial centers - U.S. | 4,056 | 4,173 | 4,215 | 4,296 | 4,324 | ||||||||||||||||||||||||
| Number of branded ATMs - U.S. | 15,959 | 16,209 | 16,513 | 16,795 | 16,905 | ||||||||||||||||||||||||
| Headcount | 208,139 | 208,248 | 209,407 | 211,608 | 212,201 | ||||||||||||||||||||||||
(1) Pretax, pre-provision income (PTPI) is a non-GAAP financial measure calculated by adjusting pretax income to add back provision for credit losses. Management believes that PTPI is a useful financial measure because it enables an assessment of the Corporation's ability to generate earnings to cover credit losses through a credit cycle. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on page 30.)
(2) Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on page 30.)
| Current-period information is preliminary and based on company data available at the time of the presentation. | 2 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Consolidated Statement of Income | |||||||||||||||||||||||||||||
| (In millions, except per share information) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||||||||
| Interest income | $ | 12,894 | $ | 12,554 | $ | 12,336 | $ | 11,387 | $ | 11,395 | |||||||||||||||||||
| Interest expense | 1,322 | 1,144 | 1,242 | 1,154 | 1,198 | ||||||||||||||||||||||||
| Net interest income | 11,572 | 11,410 | 11,094 | 10,233 | 10,197 | ||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||
| Fees and commissions | 8,985 | 10,143 | 9,915 | 9,705 | 9,536 | ||||||||||||||||||||||||
| Market making and similar activities | 3,238 | 1,331 | 2,005 | 1,826 | 3,529 | ||||||||||||||||||||||||
| Other income (loss) | (567) | (824) | (248) | (298) | (441) | ||||||||||||||||||||||||
| Total noninterest income | 11,656 | 10,650 | 11,672 | 11,233 | 12,624 | ||||||||||||||||||||||||
| Total revenue, net of interest expense | 23,228 | 22,060 | 22,766 | 21,466 | 22,821 | ||||||||||||||||||||||||
| Provision for credit losses | 30 | (489) | (624) | (1,621) | (1,860) | ||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||
| Compensation and benefits | 9,482 | 9,037 | 8,714 | 8,653 | 9,736 | ||||||||||||||||||||||||
| Occupancy and equipment | 1,760 | 1,785 | 1,764 | 1,759 | 1,830 | ||||||||||||||||||||||||
| Information processing and communications | 1,540 | 1,480 | 1,416 | 1,448 | 1,425 | ||||||||||||||||||||||||
| Product delivery and transaction related | 933 | 941 | 987 | 976 | 977 | ||||||||||||||||||||||||
| Marketing | 397 | 411 | 347 | 810 | 371 | ||||||||||||||||||||||||
| Professional fees | 450 | 512 | 434 | 426 | 403 | ||||||||||||||||||||||||
| Other general operating | 757 | 565 | 778 | 973 | 773 | ||||||||||||||||||||||||
| Total noninterest expense | 15,319 | 14,731 | 14,440 | 15,045 | 15,515 | ||||||||||||||||||||||||
| Income before income taxes | 7,879 | 7,818 | 8,950 | 8,042 | 9,166 | ||||||||||||||||||||||||
| Income tax expense | 812 | 805 | 1,259 | (1,182) | 1,116 | ||||||||||||||||||||||||
| Net income | $ | 7,067 | $ | 7,013 | $ | 7,691 | $ | 9,224 | $ | 8,050 | |||||||||||||||||||
| Preferred stock dividends | 467 | 240 | 431 | 260 | 490 | ||||||||||||||||||||||||
| Net income applicable to common shareholders | $ | 6,600 | $ | 6,773 | $ | 7,260 | $ | 8,964 | $ | 7,560 | |||||||||||||||||||
| Per common share information | |||||||||||||||||||||||||||||
| Earnings | $ | 0.81 | $ | 0.82 | $ | 0.86 | $ | 1.04 | $ | 0.87 | |||||||||||||||||||
| Diluted earnings | 0.80 | 0.82 | 0.85 | 1.03 | 0.86 | ||||||||||||||||||||||||
| Average common shares issued and outstanding | 8,136.8 | 8,226.5 | 8,430.7 | 8,620.8 | 8,700.1 | ||||||||||||||||||||||||
| Average diluted common shares issued and outstanding | 8,202.1 | 8,304.7 | 8,492.8 | 8,735.5 | 8,755.6 | ||||||||||||||||||||||||
| Consolidated Statement of Comprehensive Income | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Net income | $ | 7,067 | $ | 7,013 | $ | 7,691 | $ | 9,224 | $ | 8,050 | |||||||||||||||||||
| Other comprehensive income (loss), net-of-tax: | |||||||||||||||||||||||||||||
| Net change in debt securities | (3,447) | (834) | (153) | (250) | (840) | ||||||||||||||||||||||||
| Net change in debit valuation adjustments | 261 | 64 | 27 | 149 | 116 | ||||||||||||||||||||||||
| Net change in derivatives | (5,179) | (1,176) | (431) | 415 | (1,114) | ||||||||||||||||||||||||
| Employee benefit plan adjustments | 24 | 454 | 50 | 69 | 51 | ||||||||||||||||||||||||
| Net change in foreign currency translation adjustments | 28 | (16) | (26) | 26 | (29) | ||||||||||||||||||||||||
| Other comprehensive income (loss) | (8,313) | (1,508) | (533) | 409 | (1,816) | ||||||||||||||||||||||||
| Comprehensive income (loss) | $ | (1,246) | $ | 5,505 | $ | 7,158 | $ | 9,633 | $ | 6,234 | |||||||||||||||||||
| Current-period information is preliminary and based on company data available at the time of the presentation. | 3 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Net Interest Income and Noninterest Income | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||
| Loans and leases | $ | 7,352 | $ | 7,423 | $ | 7,502 | $ | 7,123 | $ | 7,234 | |||||||||||||||||||
| Debt securities | 3,823 | 3,544 | 3,282 | 2,820 | 2,730 | ||||||||||||||||||||||||
| Federal funds sold and securities borrowed or purchased under agreements to resell | (7) | (47) | 6 | (42) | (7) | ||||||||||||||||||||||||
| Trading account assets | 1,081 | 977 | 967 | 954 | 872 | ||||||||||||||||||||||||
| Other interest income | 645 | 657 | 579 | 532 | 566 | ||||||||||||||||||||||||
| Total interest income | 12,894 | 12,554 | 12,336 | 11,387 | 11,395 | ||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Deposits | 164 | 143 | 133 | 128 | 133 | ||||||||||||||||||||||||
| Short-term borrowings | (112) | (153) | (41) | (85) | (79) | ||||||||||||||||||||||||
| Trading account liabilities | 364 | 304 | 285 | 293 | 246 | ||||||||||||||||||||||||
| Long-term debt | 906 | 850 | 865 | 818 | 898 | ||||||||||||||||||||||||
| Total interest expense | 1,322 | 1,144 | 1,242 | 1,154 | 1,198 | ||||||||||||||||||||||||
| Net interest income | $ | 11,572 | $ | 11,410 | $ | 11,094 | $ | 10,233 | $ | 10,197 | |||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||
| Fees and commissions | |||||||||||||||||||||||||||||
| Card income | |||||||||||||||||||||||||||||
Interchange fees (1) | $ | 935 | $ | 1,129 | $ | 1,154 | $ | 1,210 | $ | 1,067 | |||||||||||||||||||
| Other card income | 468 | 485 | 429 | 376 | 368 | ||||||||||||||||||||||||
| Total card income | 1,403 | 1,614 | 1,583 | 1,586 | 1,435 | ||||||||||||||||||||||||
| Service charges | |||||||||||||||||||||||||||||
| Deposit-related fees | 1,530 | 1,600 | 1,619 | 1,557 | 1,495 | ||||||||||||||||||||||||
| Lending-related fees | 303 | 310 | 309 | 317 | 297 | ||||||||||||||||||||||||
| Total service charges | 1,833 | 1,910 | 1,928 | 1,874 | 1,792 | ||||||||||||||||||||||||
| Investment and brokerage services | |||||||||||||||||||||||||||||
| Asset management fees | 3,286 | 3,295 | 3,276 | 3,156 | 3,002 | ||||||||||||||||||||||||
| Brokerage fees | 1,006 | 973 | 960 | 967 | 1,061 | ||||||||||||||||||||||||
| Total investment and brokerage services | 4,292 | 4,268 | 4,236 | 4,123 | 4,063 | ||||||||||||||||||||||||
| Investment banking fees | |||||||||||||||||||||||||||||
| Underwriting income | 672 | 1,049 | 1,168 | 1,314 | 1,546 | ||||||||||||||||||||||||
| Syndication fees | 312 | 452 | 346 | 401 | 300 | ||||||||||||||||||||||||
| Financial advisory services | 473 | 850 | 654 | 407 | 400 | ||||||||||||||||||||||||
| Total investment banking fees | 1,457 | 2,351 | 2,168 | 2,122 | 2,246 | ||||||||||||||||||||||||
| Total fees and commissions | 8,985 | 10,143 | 9,915 | 9,705 | 9,536 | ||||||||||||||||||||||||
| Market making and similar activities | 3,238 | 1,331 | 2,005 | 1,826 | 3,529 | ||||||||||||||||||||||||
| Other income (loss) | (567) | (824) | (248) | (298) | (441) | ||||||||||||||||||||||||
| Total noninterest income | $ | 11,656 | $ | 10,650 | $ | 11,672 | $ | 11,233 | $ | 12,624 | |||||||||||||||||||
(1)Gross interchange fees and merchant income were $2.9 billion, $3.1 billion, $3.0 billion, $2.9 billion and $2.5 billion and are presented net of $2.0 billion, $2.0 billion, $1.8 billion, $1.7 billion and $1.4 billion of expenses for rewards and partner payments as well as certain other card costs for the first quarter of 2022 and the fourth, third, second, and first quarters of 2021, respectively.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 4 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| March 31 2022 | December 31 2021 | March 31 2021 | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 29,769 | $ | 29,222 | $ | 33,560 | ||||||||||||||
| Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 244,165 | 318,999 | 292,541 | |||||||||||||||||
| Cash and cash equivalents | 273,934 | 348,221 | 326,101 | |||||||||||||||||
| Time deposits placed and other short-term investments | 5,645 | 7,144 | 7,859 | |||||||||||||||||
| Federal funds sold and securities borrowed or purchased under agreements to resell | 302,108 | 250,720 | 259,147 | |||||||||||||||||
| Trading account assets | 313,400 | 247,080 | 276,881 | |||||||||||||||||
| Derivative assets | 48,231 | 35,344 | 45,898 | |||||||||||||||||
| Debt securities: | ||||||||||||||||||||
| Carried at fair value | 297,700 | 308,073 | 280,912 | |||||||||||||||||
| Held-to-maturity, at cost | 672,180 | 674,554 | 576,000 | |||||||||||||||||
| Total debt securities | 969,880 | 982,627 | 856,912 | |||||||||||||||||
| Loans and leases | 993,145 | 979,124 | 903,088 | |||||||||||||||||
| Allowance for loan and lease losses | (12,104) | (12,387) | (16,168) | |||||||||||||||||
| Loans and leases, net of allowance | 981,041 | 966,737 | 886,920 | |||||||||||||||||
| Premises and equipment, net | 10,820 | 10,833 | 10,803 | |||||||||||||||||
| Goodwill | 69,023 | 69,022 | 68,951 | |||||||||||||||||
| Loans held-for-sale | 10,270 | 15,635 | 7,895 | |||||||||||||||||
| Customer and other receivables | 83,622 | 72,263 | 66,404 | |||||||||||||||||
| Other assets | 170,249 | 163,869 | 156,221 | |||||||||||||||||
| Total assets | $ | 3,238,223 | $ | 3,169,495 | $ | 2,969,992 | ||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits in U.S. offices: | ||||||||||||||||||||
| Noninterest-bearing | $ | 787,045 | $ | 784,189 | $ | 703,822 | ||||||||||||||
| Interest-bearing | 1,178,451 | 1,165,914 | 1,079,551 | |||||||||||||||||
| Deposits in non-U.S. offices: | ||||||||||||||||||||
| Noninterest-bearing | 27,589 | 27,457 | 22,423 | |||||||||||||||||
| Interest-bearing | 79,324 | 86,886 | 79,142 | |||||||||||||||||
| Total deposits | 2,072,409 | 2,064,446 | 1,884,938 | |||||||||||||||||
| Federal funds purchased and securities loaned or sold under agreements to repurchase | 214,685 | 192,329 | 199,443 | |||||||||||||||||
| Trading account liabilities | 117,122 | 100,690 | 102,788 | |||||||||||||||||
| Derivative liabilities | 44,266 | 37,675 | 42,325 | |||||||||||||||||
| Short-term borrowings | 24,789 | 23,753 | 21,724 | |||||||||||||||||
| Accrued expenses and other liabilities | 219,625 | 200,419 | 193,563 | |||||||||||||||||
| Long-term debt | 278,710 | 280,117 | 251,211 | |||||||||||||||||
| Total liabilities | 2,971,606 | 2,899,429 | 2,695,992 | |||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,037,686, 3,939,686 and 3,923,686 shares | 27,137 | 24,708 | 24,319 | |||||||||||||||||
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 8,062,102,236, 8,077,831,463 and 8,589,731,470 shares | 59,968 | 62,398 | 83,071 | |||||||||||||||||
| Retained earnings | 192,929 | 188,064 | 170,082 | |||||||||||||||||
| Accumulated other comprehensive income (loss) | (13,417) | (5,104) | (3,472) | |||||||||||||||||
| Total shareholders’ equity | 266,617 | 270,066 | 274,000 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,238,223 | $ | 3,169,495 | $ | 2,969,992 | ||||||||||||||
| Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | ||||||||||||||||||||
| Trading account assets | $ | 2,160 | $ | 5,004 | $ | 4,530 | ||||||||||||||
| Loans and leases | 15,946 | 17,135 | 19,346 | |||||||||||||||||
| Allowance for loan and lease losses | (880) | (958) | (1,261) | |||||||||||||||||
| Loans and leases, net of allowance | 15,066 | 16,177 | 18,085 | |||||||||||||||||
| All other assets | 417 | 189 | 1,387 | |||||||||||||||||
| Total assets of consolidated variable interest entities | $ | 17,643 | $ | 21,370 | $ | 24,002 | ||||||||||||||
| Liabilities of consolidated variable interest entities included in total liabilities above | ||||||||||||||||||||
| Short-term borrowings | $ | 228 | $ | 247 | $ | 338 | ||||||||||||||
| Long-term debt | 3,557 | 3,587 | 5,286 | |||||||||||||||||
| All other liabilities | 6 | 7 | 11 | |||||||||||||||||
| Total liabilities of consolidated variable interest entities | $ | 3,791 | $ | 3,841 | $ | 5,635 | ||||||||||||||
| Current-period information is preliminary and based on company data available at the time of the presentation. | 5 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||
| Capital Management | |||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| March 31 2022 | December 31 2021 | March 31 2021 | |||||||||||||||
Risk-based capital metrics (1): | |||||||||||||||||
| Standardized Approach | |||||||||||||||||
| Common equity tier 1 capital | $ | 169,874 | $ | 171,759 | $ | 177,789 | |||||||||||
| Tier 1 capital | 197,007 | 196,465 | 201,224 | ||||||||||||||
| Total capital | 229,188 | 227,592 | 236,000 | ||||||||||||||
| Risk-weighted assets | 1,639,993 | 1,617,848 | 1,508,057 | ||||||||||||||
| Common equity tier 1 capital ratio | 10.4 | % | 10.6 | % | 11.8 | % | |||||||||||
| Tier 1 capital ratio | 12.0 | 12.1 | 13.3 | ||||||||||||||
| Total capital ratio | 14.0 | 14.1 | 15.6 | ||||||||||||||
| Advanced Approaches | |||||||||||||||||
| Common equity tier 1 capital | $ | 169,874 | $ | 171,759 | $ | 177,789 | |||||||||||
| Tier 1 capital | 197,007 | 196,465 | 201,224 | ||||||||||||||
| Total capital | 222,494 | 220,616 | 227,693 | ||||||||||||||
| Risk-weighted assets | 1,416,019 | 1,399,160 | 1,365,368 | ||||||||||||||
| Common equity tier 1 capital ratio | 12.0 | % | 12.3 | % | 13.0 | % | |||||||||||
| Tier 1 capital ratio | 13.9 | 14.0 | 14.7 | ||||||||||||||
| Total capital ratio | 15.7 | 15.8 | 16.7 | ||||||||||||||
Leverage-based metrics (1): | |||||||||||||||||
| Adjusted average assets | $ | 3,129,996 | $ | 3,087,247 | $ | 2,805,021 | |||||||||||
| Tier 1 leverage ratio | 6.3 | % | 6.4 | % | 7.2 | % | |||||||||||
| Supplementary leverage exposure | $ | 3,661,899 | $ | 3,603,807 | $ | 2,868,314 | |||||||||||
| Supplementary leverage ratio | 5.4 | % | 5.5 | % | 7.0 | % | |||||||||||
Tangible equity ratio (2) | 6.2 | 6.4 | 7.0 | ||||||||||||||
Tangible common equity ratio (2) | 5.3 | 5.7 | 6.2 | ||||||||||||||
(1)Regulatory capital ratios at March 31, 2022 are preliminary. We report regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy. Supplementary leverage exposure at March 31, 2021 excludes U.S. Treasury securities and deposits at Federal Reserve Banks.
(2)Tangible equity ratio equals period-end tangible shareholders’ equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders’ equity divided by period-end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on page 30.)
| Current-period information is preliminary and based on company data available at the time of the presentation. | 6 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||
| Capital Composition under Basel 3 | |||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| March 31 2022 | December 31 2021 | March 31 2021 | |||||||||||||||
| Total common shareholders' equity | $ | 239,480 | $ | 245,358 | $ | 249,681 | |||||||||||
CECL transitional amount (1) | 1,881 | 2,508 | 3,544 | ||||||||||||||
| Goodwill, net of related deferred tax liabilities | (68,641) | (68,641) | (68,565) | ||||||||||||||
| Deferred tax assets arising from net operating loss and tax credit carryforwards | (7,843) | (7,743) | (5,904) | ||||||||||||||
| Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities | (1,589) | (1,605) | (1,604) | ||||||||||||||
| Defined benefit pension plan net assets | (1,248) | (1,261) | (1,181) | ||||||||||||||
| Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax | 1,047 | 1,400 | 1,625 | ||||||||||||||
Accumulated net (gain) loss on certain cash flow hedges (2) | 7,049 | 1,870 | 678 | ||||||||||||||
| Other | (262) | (127) | (485) | ||||||||||||||
| Common equity tier 1 capital | 169,874 | 171,759 | 177,789 | ||||||||||||||
| Qualifying preferred stock, net of issuance cost | 27,136 | 24,707 | 23,440 | ||||||||||||||
| Other | (3) | (1) | (5) | ||||||||||||||
| Tier 1 capital | 197,007 | 196,465 | 201,224 | ||||||||||||||
| Tier 2 capital instruments | 21,719 | 20,750 | 21,137 | ||||||||||||||
Qualifying allowance for credit losses (3) | 11,000 | 10,534 | 13,642 | ||||||||||||||
| Other | (538) | (157) | (3) | ||||||||||||||
| Total capital under the Standardized approach | 229,188 | 227,592 | 236,000 | ||||||||||||||
Adjustment in qualifying allowance for credit losses under the Advanced approaches (3) | (6,694) | (6,976) | (8,307) | ||||||||||||||
| Total capital under the Advanced approaches | $ | 222,494 | $ | 220,616 | $ | 227,693 | |||||||||||
(1)December 31, 2021 and March 31, 2021 include the impact of the Corporation's adoption of the current expected credit losses (CECL) accounting standard on January 1, 2020 and 25 percent of the increase in reserves since the initial adoption. March 31, 2022 includes 75 percent of the transition provisions' impact as of December 31, 2021.
(2)Includes amounts in accumulated other comprehensive income related to the hedging of items that are not recognized at fair value on the Consolidated Balance Sheet.
(3)Includes the impact of transition provisions related to the CECL accounting standard.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 7 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | First Quarter 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Balance | Interest Income/ Expense (1) | Yield/ Rate | Average Balance | Interest Income/ Expense (1) | Yield/ Rate | Average Balance | Interest Income/ Expense (1) | Yield/ Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 244,971 | $ | 86 | 0.14 | % | $ | 256,955 | $ | 66 | 0.10 | % | $ | 278,098 | $ | 29 | 0.04 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Time deposits placed and other short-term investments | 9,253 | 12 | 0.52 | 7,200 | 7 | 0.36 | 8,742 | 4 | 0.18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal funds sold and securities borrowed or purchased under agreements to resell | 299,404 | (7) | (0.01) | 278,163 | (47) | (0.07) | 249,985 | (7) | (0.01) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trading account assets | 151,969 | 1,096 | 2.92 | 146,958 | 992 | 2.68 | 145,089 | 885 | 2.47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt securities | 975,656 | 3,838 | 1.58 | 984,493 | 3,558 | 1.45 | 788,638 | 2,745 | 1.41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 223,979 | 1,525 | 2.73 | 219,193 | 1,481 | 2.70 | 219,005 | 1,529 | 2.80 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 27,784 | 220 | 3.21 | 28,796 | 255 | 3.52 | 33,634 | 281 | 3.38 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit card | 78,409 | 1,940 | 10.03 | 78,358 | 1,997 | 10.11 | 74,165 | 1,947 | 10.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct/Indirect and other consumer | 104,632 | 579 | 2.25 | 101,854 | 578 | 2.25 | 91,430 | 559 | 2.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total consumer | 434,804 | 4,264 | 3.96 | 428,201 | 4,311 | 4.00 | 418,234 | 4,316 | 4.17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. commercial | 346,510 | 2,127 | 2.49 | 330,796 | 2,191 | 2.63 | 322,010 | 2,051 | 2.58 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 118,767 | 504 | 1.72 | 108,899 | 468 | 1.71 | 90,904 | 409 | 1.83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 63,065 | 387 | 2.49 | 62,296 | 382 | 2.43 | 59,736 | 365 | 2.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial lease financing | 14,647 | 106 | 2.92 | 14,870 | 106 | 2.83 | 16,839 | 132 | 3.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 542,989 | 3,124 | 2.33 | 516,861 | 3,147 | 2.42 | 489,489 | 2,957 | 2.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | 977,793 | 7,388 | 3.06 | 945,062 | 7,458 | 3.14 | 907,723 | 7,273 | 3.24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other earning assets | 120,798 | 587 | 1.97 | 128,938 | 625 | 1.93 | 103,650 | 577 | 2.26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total earning assets | 2,779,844 | 13,000 | 1.89 | 2,747,769 | 12,659 | 1.83 | 2,481,925 | 11,506 | 1.87 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 28,082 | 29,219 | 33,925 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets, less allowance for loan and lease losses | 399,776 | 387,130 | 363,371 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 3,207,702 | $ | 3,164,118 | $ | 2,879,221 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. interest-bearing deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Demand and money market deposits | $ | 1,001,184 | $ | 80 | 0.03 | % | $ | 965,801 | $ | 80 | 0.03 | % | $ | 889,793 | $ | 77 | 0.04 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Time and savings deposits | 163,981 | 40 | 0.10 | 162,567 | 38 | 0.10 | 158,575 | 51 | 0.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total U.S. interest-bearing deposits | 1,165,165 | 120 | 0.04 | 1,128,368 | 118 | 0.04 | 1,048,368 | 128 | 0.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. interest-bearing deposits | 81,879 | 44 | 0.22 | 82,846 | 25 | 0.12 | 81,966 | 5 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,247,044 | 164 | 0.05 | 1,211,214 | 143 | 0.05 | 1,130,334 | 133 | 0.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase (3) | 217,152 | 79 | 0.15 | 218,018 | 80 | 0.14 | 193,325 | 111 | 0.23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings and other interest-bearing liabilities (3) | 126,454 | (191) | (0.61) | 114,637 | (233) | (0.80) | 99,911 | (190) | (0.77) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trading account liabilities | 64,240 | 364 | 2.30 | 57,993 | 304 | 2.08 | 42,923 | 246 | 2.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt | 246,042 | 906 | 1.50 | 248,525 | 850 | 1.35 | 220,836 | 898 | 1.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,900,932 | 1,322 | 0.28 | 1,850,387 | 1,144 | 0.24 | 1,687,329 | 1,198 | 0.29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing sources | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 798,767 | 806,009 | 675,413 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities (4) | 238,694 | 236,839 | 242,432 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 269,309 | 270,883 | 274,047 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,207,702 | $ | 3,164,118 | $ | 2,879,221 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 1.61 | % | 1.59 | % | 1.58 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impact of noninterest-bearing sources | 0.08 | 0.08 | 0.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/yield on earning assets (5) | $ | 11,678 | 1.69 | % | $ | 11,515 | 1.67 | % | $ | 10,308 | 1.68 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Includes the impact of interest rate risk management contracts.
(2)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.
(3)Certain prior-period amounts have been reclassified to conform to current-period presentation.
(4)Includes $30.2 billion, $30.4 billion and $31.3 billion of structured notes and liabilities for the first quarter of 2022 and the fourth and first quarters of 2021, respectively.
(5)Net interest income includes FTE adjustments of $106 million, $105 million and $111 million for the first quarter of 2022 and the fourth and first quarters of 2021, respectively.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 8 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||
| Debt Securities | |||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| March 31, 2022 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
| Available-for-sale debt securities | |||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Agency | $ | 40,166 | $ | 293 | $ | (965) | $ | 39,494 | |||||||||||||||
| Agency-collateralized mortgage obligations | 2,985 | 11 | (102) | 2,894 | |||||||||||||||||||
| Commercial | 19,330 | 336 | (436) | 19,230 | |||||||||||||||||||
| Non-agency residential | 502 | 5 | (53) | 454 | |||||||||||||||||||
| Total mortgage-backed securities | 62,983 | 645 | (1,556) | 62,072 | |||||||||||||||||||
| U.S. Treasury and government agencies | 193,081 | 1,186 | (1,481) | 192,786 | |||||||||||||||||||
| Non-U.S. securities | 15,192 | — | (9) | 15,183 | |||||||||||||||||||
| Other taxable securities | 4,007 | 12 | (29) | 3,990 | |||||||||||||||||||
| Tax-exempt securities | 15,325 | 81 | (150) | 15,256 | |||||||||||||||||||
| Total available-for-sale debt securities | 290,588 | 1,924 | (3,225) | 289,287 | |||||||||||||||||||
Other debt securities carried at fair value (1) | 8,532 | 91 | (210) | 8,413 | |||||||||||||||||||
| Total debt securities carried at fair value | 299,120 | 2,015 | (3,435) | 297,700 | |||||||||||||||||||
| Held-to-maturity debt securities | |||||||||||||||||||||||
| Agency mortgage-backed securities | 542,601 | 619 | (41,454) | 501,766 | |||||||||||||||||||
| U.S. Treasury and government agencies | 120,863 | — | (10,046) | 110,817 | |||||||||||||||||||
| Other taxable securities | 8,754 | 5 | (466) | 8,293 | |||||||||||||||||||
| Total held-to-maturity debt securities | 672,218 | 624 | (51,966) | 620,876 | |||||||||||||||||||
| Total debt securities | $ | 971,338 | $ | 2,639 | $ | (55,401) | $ | 918,576 | |||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||
| Available-for-sale debt securities | |||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Agency | $ | 45,268 | $ | 1,257 | $ | (186) | $ | 46,339 | |||||||||||||||
| Agency-collateralized mortgage obligations | 3,331 | 74 | (25) | 3,380 | |||||||||||||||||||
| Commercial | 19,036 | 647 | (79) | 19,604 | |||||||||||||||||||
| Non-agency residential | 591 | 25 | (33) | 583 | |||||||||||||||||||
| Total mortgage-backed securities | 68,226 | 2,003 | (323) | 69,906 | |||||||||||||||||||
| U.S. Treasury and government agencies | 197,853 | 1,610 | (318) | 199,145 | |||||||||||||||||||
| Non-U.S. securities | 11,933 | — | — | 11,933 | |||||||||||||||||||
| Other taxable securities | 2,725 | 39 | (3) | 2,761 | |||||||||||||||||||
| Tax-exempt securities | 15,155 | 317 | (39) | 15,433 | |||||||||||||||||||
| Total available-for-sale debt securities | 295,892 | 3,969 | (683) | 299,178 | |||||||||||||||||||
Other debt securities carried at fair value (1) | 8,873 | 105 | (83) | 8,895 | |||||||||||||||||||
| Total debt securities carried at fair value | 304,765 | 4,074 | (766) | 308,073 | |||||||||||||||||||
| Held-to-maturity debt securities | |||||||||||||||||||||||
| Agency mortgage-backed securities | 553,721 | 3,855 | (10,366) | 547,210 | |||||||||||||||||||
| U.S. Treasury and government agencies | 111,859 | 254 | (2,395) | 109,718 | |||||||||||||||||||
| Other taxable securities | 9,011 | 147 | (196) | 8,962 | |||||||||||||||||||
| Total held-to-maturity debt securities | 674,591 | 4,256 | (12,957) | 665,890 | |||||||||||||||||||
| Total debt securities | $ | 979,356 | $ | 8,330 | $ | (13,723) | $ | 973,963 | |||||||||||||||
(1) Primarily includes non-U.S. securities used to satisfy certain international regulatory requirements.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 9 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||
| Supplemental Financial Data | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | ||||||||||||||||||||||||||||
FTE basis data (1) | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 11,678 | $ | 11,515 | $ | 11,195 | $ | 10,343 | $ | 10,308 | ||||||||||||||||||||||
| Total revenue, net of interest expense | 23,334 | 22,165 | 22,867 | 21,576 | 22,932 | |||||||||||||||||||||||||||
| Net interest yield | 1.69 | % | 1.67 | % | 1.68 | % | 1.61 | % | 1.68 | % | ||||||||||||||||||||||
| Efficiency ratio | 65.65 | 66.46 | 63.14 | 69.73 | 67.65 | |||||||||||||||||||||||||||
(1)FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with meaningful information on the interest margin for comparative purposes. The Corporation believes that this presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices. Net interest income includes FTE adjustments of $106 million, $105 million, $101 million, $110 million and $111 million for the first quarter of 2022 and the fourth, third, second and first quarters of 2021, respectively.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 10 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Quarterly Results by Business Segment and All Other | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
| First Quarter 2022 | |||||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | ||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 11,678 | $ | 6,680 | $ | 1,668 | $ | 2,344 | $ | 993 | $ | (7) | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Fees and commissions: | |||||||||||||||||||||||||||||||||||||||||
| Card income | 1,403 | 1,185 | 18 | 176 | 14 | 10 | |||||||||||||||||||||||||||||||||||
| Service charges | 1,833 | 844 | 19 | 886 | 82 | 2 | |||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 4,292 | 83 | 3,654 | 12 | 545 | (2) | |||||||||||||||||||||||||||||||||||
| Investment banking fees | 1,457 | — | 66 | 880 | 582 | (71) | |||||||||||||||||||||||||||||||||||
| Total fees and commissions | 8,985 | 2,112 | 3,757 | 1,954 | 1,223 | (61) | |||||||||||||||||||||||||||||||||||
| Market making and similar activities | 3,238 | — | 13 | 49 | 3,190 | (14) | |||||||||||||||||||||||||||||||||||
Other income (loss) | (567) | 21 | 38 | 847 | (114) | (1,359) | |||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | 11,656 | 2,133 | 3,808 | 2,850 | 4,299 | (1,434) | |||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 23,334 | 8,813 | 5,476 | 5,194 | 5,292 | (1,441) | |||||||||||||||||||||||||||||||||||
| Provision for credit losses | 30 | (52) | (41) | 165 | 5 | (47) | |||||||||||||||||||||||||||||||||||
| Noninterest expense | 15,319 | 4,921 | 4,015 | 2,683 | 3,117 | 583 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 7,985 | 3,944 | 1,502 | 2,346 | 2,170 | (1,977) | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 918 | 966 | 368 | 622 | 575 | (1,613) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 7,067 | $ | 2,978 | $ | 1,134 | $ | 1,724 | $ | 1,595 | $ | (364) | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 977,793 | $ | 284,068 | $ | 210,937 | $ | 358,807 | $ | 108,576 | $ | 15,405 | |||||||||||||||||||||||||||||
Total assets (1) | 3,207,702 | 1,133,001 | 431,040 | 630,517 | 858,719 | 154,425 | |||||||||||||||||||||||||||||||||||
| Total deposits | 2,045,811 | 1,056,100 | 384,902 | 539,912 | 44,393 | 20,504 | |||||||||||||||||||||||||||||||||||
| Quarter end | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 993,145 | $ | 286,322 | $ | 214,273 | $ | 367,423 | $ | 110,037 | $ | 15,090 | |||||||||||||||||||||||||||||
Total assets (1) | 3,238,223 | 1,166,443 | 433,122 | 623,168 | 883,304 | 132,186 | |||||||||||||||||||||||||||||||||||
| Total deposits | 2,072,409 | 1,088,940 | 385,288 | 533,820 | 43,371 | 20,990 | |||||||||||||||||||||||||||||||||||
| Fourth Quarter 2021 | |||||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | ||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 11,515 | $ | 6,543 | $ | 1,526 | $ | 2,362 | $ | 1,031 | $ | 53 | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Fees and commissions: | |||||||||||||||||||||||||||||||||||||||||
| Card income | 1,614 | 1,354 | 22 | 198 | 12 | 28 | |||||||||||||||||||||||||||||||||||
| Service charges | 1,910 | 921 | 18 | 887 | 84 | — | |||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 4,268 | 84 | 3,703 | 14 | 474 | (7) | |||||||||||||||||||||||||||||||||||
| Investment banking fees | 2,351 | — | 82 | 1,465 | 832 | (28) | |||||||||||||||||||||||||||||||||||
| Total fees and commissions | 10,143 | 2,359 | 3,825 | 2,564 | 1,402 | (7) | |||||||||||||||||||||||||||||||||||
| Market making and similar activities | 1,331 | 1 | 9 | 46 | 1,312 | (37) | |||||||||||||||||||||||||||||||||||
| Other income (loss) | (824) | 9 | 42 | 935 | 73 | (1,883) | |||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | 10,650 | 2,369 | 3,876 | 3,545 | 2,787 | (1,927) | |||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 22,165 | 8,912 | 5,402 | 5,907 | 3,818 | (1,874) | |||||||||||||||||||||||||||||||||||
| Provision for credit losses | (489) | 32 | (56) | (463) | 32 | (34) | |||||||||||||||||||||||||||||||||||
| Noninterest expense | 14,731 | 4,742 | 3,834 | 2,717 | 2,882 | 556 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 7,923 | 4,138 | 1,624 | 3,653 | 904 | (2,396) | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 910 | 1,014 | 398 | 986 | 235 | (1,723) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 7,013 | $ | 3,124 | $ | 1,226 | $ | 2,667 | $ | 669 | $ | (673) | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 945,062 | $ | 282,332 | $ | 205,236 | $ | 338,627 | $ | 102,627 | $ | 16,240 | |||||||||||||||||||||||||||||
Total assets (1) | 3,164,118 | 1,102,444 | 408,033 | 650,940 | 816,994 | 185,707 | |||||||||||||||||||||||||||||||||||
| Total deposits | 2,017,223 | 1,026,810 | 360,912 | 562,390 | 43,331 | 23,780 | |||||||||||||||||||||||||||||||||||
| Quarter end | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 979,124 | $ | 286,511 | $ | 208,971 | $ | 352,933 | $ | 114,846 | $ | 15,863 | |||||||||||||||||||||||||||||
Total assets (1) | 3,169,495 | 1,131,142 | 438,275 | 638,131 | 747,794 | 214,153 | |||||||||||||||||||||||||||||||||||
| Total deposits | 2,064,446 | 1,054,995 | 390,143 | 551,752 | 46,374 | 21,182 | |||||||||||||||||||||||||||||||||||
(1)Total assets include asset allocations to match liabilities (i.e., deposits).
| Current-period information is preliminary and based on company data available at the time of the presentation. | 11 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Quarterly Results by Business Segment and All Other (continued) | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
| First Quarter 2021 | |||||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | ||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 10,308 | $ | 5,920 | $ | 1,331 | $ | 1,980 | $ | 990 | $ | 87 | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Fees and commissions: | |||||||||||||||||||||||||||||||||||||||||
| Card income | 1,435 | 1,189 | 19 | 150 | 76 | 1 | |||||||||||||||||||||||||||||||||||
| Service charges | 1,792 | 831 | 18 | 847 | 94 | 2 | |||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 4,063 | 77 | 3,391 | 41 | 560 | (6) | |||||||||||||||||||||||||||||||||||
| Investment banking fees | 2,246 | — | 135 | 1,172 | 981 | (42) | |||||||||||||||||||||||||||||||||||
| Total fees and commissions | 9,536 | 2,097 | 3,563 | 2,210 | 1,711 | (45) | |||||||||||||||||||||||||||||||||||
| Market making and similar activities | 3,529 | — | 11 | 31 | 3,470 | 17 | |||||||||||||||||||||||||||||||||||
| Other income (loss) | (441) | 52 | 66 | 412 | 27 | (998) | |||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | 12,624 | 2,149 | 3,640 | 2,653 | 5,208 | (1,026) | |||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 22,932 | 8,069 | 4,971 | 4,633 | 6,198 | (939) | |||||||||||||||||||||||||||||||||||
| Provision for credit losses | (1,860) | (617) | (65) | (1,126) | (5) | (47) | |||||||||||||||||||||||||||||||||||
| Noninterest expense | 15,515 | 5,131 | 3,867 | 2,782 | 3,427 | 308 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 9,277 | 3,555 | 1,169 | 2,977 | 2,776 | (1,200) | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 1,227 | 871 | 286 | 804 | 722 | (1,456) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 8,050 | $ | 2,684 | $ | 883 | $ | 2,173 | $ | 2,054 | $ | 256 | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 907,723 | $ | 290,891 | $ | 188,495 | $ | 330,107 | $ | 77,415 | $ | 20,815 | |||||||||||||||||||||||||||||
Total assets (1) | 2,879,221 | 999,769 | 372,594 | 576,145 | 723,264 | 207,449 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,805,747 | 924,137 | 326,370 | 487,034 | 53,852 | 14,354 | |||||||||||||||||||||||||||||||||||
| Quarter end | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 903,088 | $ | 282,935 | $ | 190,060 | $ | 325,996 | $ | 84,247 | $ | 19,850 | |||||||||||||||||||||||||||||
Total assets (1) | 2,969,992 | 1,047,413 | 378,654 | 594,235 | 745,681 | 204,009 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,884,938 | 971,709 | 333,254 | 506,012 | 61,450 | 12,513 | |||||||||||||||||||||||||||||||||||
(1)Total assets include asset allocations to match liabilities (i.e., deposits).
| Current-period information is preliminary and based on company data available at the time of the presentation. | 12 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Consumer Banking Segment Results | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Net interest income | $ | 6,680 | $ | 6,543 | $ | 6,493 | $ | 5,973 | $ | 5,920 | |||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Card income | 1,185 | 1,354 | 1,317 | 1,312 | 1,189 | ||||||||||||||||||||||||
| Service charges | 844 | 921 | 935 | 851 | 831 | ||||||||||||||||||||||||
| All other income | 104 | 94 | 93 | 50 | 129 | ||||||||||||||||||||||||
| Total noninterest income | 2,133 | 2,369 | 2,345 | 2,213 | 2,149 | ||||||||||||||||||||||||
| Total revenue, net of interest expense | 8,813 | 8,912 | 8,838 | 8,186 | 8,069 | ||||||||||||||||||||||||
| Provision for credit losses | (52) | 32 | 247 | (697) | (617) | ||||||||||||||||||||||||
| Noninterest expense | 4,921 | 4,742 | 4,558 | 4,859 | 5,131 | ||||||||||||||||||||||||
| Income before income taxes | 3,944 | 4,138 | 4,033 | 4,024 | 3,555 | ||||||||||||||||||||||||
| Income tax expense | 966 | 1,014 | 988 | 986 | 871 | ||||||||||||||||||||||||
| Net income | $ | 2,978 | $ | 3,124 | $ | 3,045 | $ | 3,038 | $ | 2,684 | |||||||||||||||||||
| Net interest yield | 2.48 | % | 2.44 | % | 2.49 | % | 2.37 | % | 2.51 | % | |||||||||||||||||||
Return on average allocated capital (1) | 30 | 32 | 31 | 32 | 28 | ||||||||||||||||||||||||
| Efficiency ratio | 55.84 | 53.22 | 51.56 | 59.36 | 63.59 | ||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||
| Total loans and leases | $ | 284,068 | $ | 282,332 | $ | 281,380 | $ | 281,767 | $ | 290,891 | |||||||||||||||||||
Total earning assets (2) | 1,092,742 | 1,061,742 | 1,034,471 | 1,012,335 | 957,112 | ||||||||||||||||||||||||
Total assets (2) | 1,133,001 | 1,102,444 | 1,076,236 | 1,054,516 | 999,769 | ||||||||||||||||||||||||
| Total deposits | 1,056,100 | 1,026,810 | 1,000,765 | 979,072 | 924,137 | ||||||||||||||||||||||||
Allocated capital (1) | 40,000 | 38,500 | 38,500 | 38,500 | 38,500 | ||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||
| Total loans and leases | $ | 286,322 | $ | 286,511 | $ | 280,803 | $ | 282,900 | $ | 282,935 | |||||||||||||||||||
Total earning assets (2) | 1,125,963 | 1,090,331 | 1,050,331 | 1,022,092 | 1,004,896 | ||||||||||||||||||||||||
Total assets (2) | 1,166,443 | 1,131,142 | 1,091,431 | 1,063,650 | 1,047,413 | ||||||||||||||||||||||||
| Total deposits | 1,088,940 | 1,054,995 | 1,015,276 | 987,655 | 971,709 | ||||||||||||||||||||||||
(1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
(2) Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 13 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Consumer Banking Key Indicators | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Average deposit balances | |||||||||||||||||||||||||||||
| Checking | $ | 593,428 | $ | 577,703 | $ | 561,629 | $ | 550,009 | $ | 515,430 | |||||||||||||||||||
| Savings | 72,413 | 70,719 | 70,799 | 70,945 | 65,863 | ||||||||||||||||||||||||
| MMS | 354,850 | 342,812 | 331,924 | 320,594 | 303,719 | ||||||||||||||||||||||||
| CDs and IRAs | 30,685 | 31,584 | 32,578 | 33,728 | 35,488 | ||||||||||||||||||||||||
| Other | 4,724 | 3,992 | 3,835 | 3,796 | 3,637 | ||||||||||||||||||||||||
| Total average deposit balances | $ | 1,056,100 | $ | 1,026,810 | $ | 1,000,765 | $ | 979,072 | $ | 924,137 | |||||||||||||||||||
| Deposit spreads (excludes noninterest costs) | |||||||||||||||||||||||||||||
| Checking | 1.91 | % | 1.92 | % | 1.95 | % | 1.97 | % | 1.99 | % | |||||||||||||||||||
| Savings | 2.19 | 2.21 | 2.23 | 2.26 | 2.28 | ||||||||||||||||||||||||
| MMS | 1.23 | 1.24 | 1.26 | 1.29 | 1.32 | ||||||||||||||||||||||||
| CDs and IRAs | 0.46 | 0.32 | 0.34 | 0.41 | 0.48 | ||||||||||||||||||||||||
| Other | 0.41 | 0.22 | 0.24 | 0.27 | 0.31 | ||||||||||||||||||||||||
| Total deposit spreads | 1.65 | 1.66 | 1.68 | 1.71 | 1.73 | ||||||||||||||||||||||||
| Consumer investment assets | $ | 357,593 | $ | 368,831 | $ | 353,280 | $ | 345,809 | $ | 324,479 | |||||||||||||||||||
Active digital banking users (in thousands) (1) | 42,269 | 41,365 | 40,911 | 40,512 | 40,286 | ||||||||||||||||||||||||
Active mobile banking users (in thousands) (2) | 33,589 | 32,980 | 32,455 | 31,796 | 31,487 | ||||||||||||||||||||||||
| Financial centers | 4,056 | 4,173 | 4,215 | 4,296 | 4,324 | ||||||||||||||||||||||||
| ATMs | 15,959 | 16,209 | 16,513 | 16,795 | 16,905 | ||||||||||||||||||||||||
Total credit card (3) | |||||||||||||||||||||||||||||
| Loans | |||||||||||||||||||||||||||||
| Average credit card outstandings | $ | 78,409 | $ | 78,358 | $ | 75,569 | $ | 73,399 | $ | 74,165 | |||||||||||||||||||
| Ending credit card outstandings | 79,356 | 81,438 | 76,869 | 75,599 | 72,786 | ||||||||||||||||||||||||
| Credit quality | |||||||||||||||||||||||||||||
| Net charge-offs | $ | 297 | $ | 280 | $ | 321 | $ | 488 | $ | 634 | |||||||||||||||||||
| 1.53 | % | 1.42 | % | 1.69 | % | 2.67 | % | 3.47 | % | ||||||||||||||||||||
| 30+ delinquency | $ | 1,003 | $ | 997 | $ | 934 | $ | 976 | $ | 1,317 | |||||||||||||||||||
| 1.26 | % | 1.22 | % | 1.21 | % | 1.29 | % | 1.81 | % | ||||||||||||||||||||
| 90+ delinquency | $ | 492 | $ | 487 | $ | 450 | $ | 533 | $ | 755 | |||||||||||||||||||
| 0.62 | % | 0.60 | % | 0.58 | % | 0.71 | % | 1.04 | % | ||||||||||||||||||||
Other total credit card indicators (3) | |||||||||||||||||||||||||||||
| Gross interest yield | 9.90 | % | 9.96 | % | 10.10 | % | 10.10 | % | 10.52 | % | |||||||||||||||||||
| Risk-adjusted margin | 10.40 | 10.85 | 10.70 | 9.76 | 9.29 | ||||||||||||||||||||||||
| New accounts (in thousands) | 977 | 940 | 1,049 | 931 | 674 | ||||||||||||||||||||||||
| Purchase volumes | $ | 80,914 | $ | 87,671 | $ | 80,925 | $ | 78,384 | $ | 64,591 | |||||||||||||||||||
| Debit card data | |||||||||||||||||||||||||||||
| Purchase volumes | $ | 117,584 | $ | 124,278 | $ | 119,680 | $ | 121,905 | $ | 107,907 | |||||||||||||||||||
Loan production (4) | |||||||||||||||||||||||||||||
| Consumer Banking: | |||||||||||||||||||||||||||||
| First mortgage | $ | 8,116 | $ | 12,782 | $ | 12,510 | $ | 11,502 | $ | 9,182 | |||||||||||||||||||
| Home equity | 1,725 | 1,417 | 1,262 | 907 | 410 | ||||||||||||||||||||||||
Total (5): | |||||||||||||||||||||||||||||
| First mortgage | $ | 16,353 | $ | 22,961 | $ | 21,232 | $ | 20,266 | $ | 15,233 | |||||||||||||||||||
| Home equity | 2,040 | 1,703 | 1,523 | 1,166 | 503 | ||||||||||||||||||||||||
(1) Represents mobile and/or online active users over the past 90 days.
(2) Represents mobile active users over the past 90 days.
(3) In addition to the credit card portfolio in Consumer Banking, the remaining credit card portfolio is in GWIM.
(4) 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.
(5) In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 14 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking Quarterly Results | |||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Consumer Banking | Deposits | Consumer Lending | Total Consumer Banking | Deposits | Consumer Lending | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 6,680 | $ | 4,052 | $ | 2,628 | $ | 6,543 | $ | 3,870 | $ | 2,673 | |||||||||||||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Card income | 1,185 | (8) | 1,193 | 1,354 | (9) | 1,363 | |||||||||||||||||||||||||||||||||||||||||
| Service charges | 844 | 843 | 1 | 921 | 921 | — | |||||||||||||||||||||||||||||||||||||||||
| All other income | 104 | 68 | 36 | 94 | 70 | 24 | |||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 2,133 | 903 | 1,230 | 2,369 | 982 | 1,387 | |||||||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 8,813 | 4,955 | 3,858 | 8,912 | 4,852 | 4,060 | |||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (52) | 73 | (125) | 32 | 66 | (34) | |||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 4,921 | 3,008 | 1,913 | 4,742 | 2,862 | 1,880 | |||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 3,944 | 1,874 | 2,070 | 4,138 | 1,924 | 2,214 | |||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 966 | 459 | 507 | 1,014 | 471 | 543 | |||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 2,978 | $ | 1,415 | $ | 1,563 | $ | 3,124 | $ | 1,453 | $ | 1,671 | |||||||||||||||||||||||||||||||||||
| Net interest yield | 2.48 | % | 1.56 | % | 3.79 | % | 2.44 | % | 1.51 | % | 3.81 | % | |||||||||||||||||||||||||||||||||||
Return on average allocated capital (1) | 30 | 44 | 23 | 32 | 48 | 25 | |||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 55.84 | 60.71 | 49.58 | 53.22 | 58.98 | 46.33 | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 284,068 | $ | 4,215 | $ | 279,853 | $ | 282,332 | $ | 4,290 | $ | 278,042 | |||||||||||||||||||||||||||||||||||
Total earning assets (2) | 1,092,742 | 1,050,490 | 281,255 | 1,061,742 | 1,018,888 | 278,488 | |||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,133,001 | 1,084,343 | 287,660 | 1,102,444 | 1,053,379 | 284,698 | |||||||||||||||||||||||||||||||||||||||||
| Total deposits | 1,056,100 | 1,050,247 | 5,853 | 1,026,810 | 1,020,092 | 6,718 | |||||||||||||||||||||||||||||||||||||||||
Allocated capital (1) | 40,000 | 13,000 | 27,000 | 38,500 | 12,000 | 26,500 | |||||||||||||||||||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 286,322 | $ | 4,165 | $ | 282,157 | $ | 286,511 | $ | 4,206 | $ | 282,305 | |||||||||||||||||||||||||||||||||||
Total earning assets (2) | 1,125,963 | 1,083,664 | 284,069 | 1,090,331 | 1,048,009 | 282,850 | |||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,166,443 | 1,117,241 | 290,972 | 1,131,142 | 1,082,449 | 289,220 | |||||||||||||||||||||||||||||||||||||||||
| Total deposits | 1,088,940 | 1,082,885 | 6,055 | 1,054,995 | 1,049,085 | 5,910 | |||||||||||||||||||||||||||||||||||||||||
| First Quarter 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Consumer Banking | Deposits | Consumer Lending | |||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 5,920 | $ | 3,278 | $ | 2,642 | |||||||||||||||||||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Card income | 1,189 | (5) | 1,194 | ||||||||||||||||||||||||||||||||||||||||||||
| Service charges | 831 | 830 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
| All other income | 129 | 73 | 56 | ||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 2,149 | 898 | 1,251 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 8,069 | 4,176 | 3,893 | ||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (617) | 74 | (691) | ||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 5,131 | 3,209 | 1,922 | ||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 3,555 | 893 | 2,662 | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 871 | 219 | 652 | ||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 2,684 | $ | 674 | $ | 2,010 | |||||||||||||||||||||||||||||||||||||||||
| Net interest yield | 2.51 | % | 1.46 | % | 3.74 | % | |||||||||||||||||||||||||||||||||||||||||
Return on average allocated capital (1) | 28 | 23 | 31 | ||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 63.59 | 76.87 | 49.34 | ||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 290,891 | $ | 4,607 | $ | 286,284 | |||||||||||||||||||||||||||||||||||||||||
Total earning assets (2) | 957,112 | 912,135 | 286,720 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 999,769 | 950,803 | 290,709 | ||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 924,137 | 917,319 | 6,818 | ||||||||||||||||||||||||||||||||||||||||||||
Allocated capital (1) | 38,500 | 12,000 | 26,500 | ||||||||||||||||||||||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 282,935 | $ | 4,490 | $ | 278,445 | |||||||||||||||||||||||||||||||||||||||||
Total earning assets (2) | 1,004,896 | 960,132 | 278,984 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,047,413 | 997,601 | 284,032 | ||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 971,709 | 964,406 | 7,303 | ||||||||||||||||||||||||||||||||||||||||||||
(1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
(2) For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates 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.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 15 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Global Wealth & Investment Management Segment Results | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Net interest income | $ | 1,668 | $ | 1,526 | $ | 1,452 | $ | 1,355 | $ | 1,331 | |||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Investment and brokerage services | 3,654 | 3,703 | 3,682 | 3,536 | 3,391 | ||||||||||||||||||||||||
| All other income | 154 | 173 | 176 | 174 | 249 | ||||||||||||||||||||||||
| Total noninterest income | 3,808 | 3,876 | 3,858 | 3,710 | 3,640 | ||||||||||||||||||||||||
| Total revenue, net of interest expense | 5,476 | 5,402 | 5,310 | 5,065 | 4,971 | ||||||||||||||||||||||||
| Provision for credit losses | (41) | (56) | (58) | (62) | (65) | ||||||||||||||||||||||||
| Noninterest expense | 4,015 | 3,834 | 3,744 | 3,813 | 3,867 | ||||||||||||||||||||||||
| Income before income taxes | 1,502 | 1,624 | 1,624 | 1,314 | 1,169 | ||||||||||||||||||||||||
| Income tax expense | 368 | 398 | 398 | 322 | 286 | ||||||||||||||||||||||||
| Net income | $ | 1,134 | $ | 1,226 | $ | 1,226 | $ | 992 | $ | 883 | |||||||||||||||||||
| Net interest yield | 1.62 | % | 1.53 | % | 1.54 | % | 1.48 | % | 1.50 | % | |||||||||||||||||||
Return on average allocated capital (1) | 26 | 30 | 30 | 24 | 22 | ||||||||||||||||||||||||
| Efficiency ratio | 73.31 | 70.95 | 70.51 | 75.29 | 77.79 | ||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||
| Total loans and leases | $ | 210,937 | $ | 205,236 | $ | 199,664 | $ | 193,988 | $ | 188,495 | |||||||||||||||||||
Total earning assets (2) | 418,248 | 395,144 | 373,691 | 367,778 | 360,099 | ||||||||||||||||||||||||
Total assets (2) | 431,040 | 408,033 | 386,346 | 380,315 | 372,594 | ||||||||||||||||||||||||
| Total deposits | 384,902 | 360,912 | 339,357 | 333,487 | 326,370 | ||||||||||||||||||||||||
Allocated capital (1) | 17,500 | 16,500 | 16,500 | 16,500 | 16,500 | ||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||
| Total loans and leases | $ | 214,273 | $ | 208,971 | $ | 202,268 | $ | 198,361 | $ | 190,060 | |||||||||||||||||||
Total earning assets (2) | 419,903 | 425,112 | 380,857 | 365,496 | 365,853 | ||||||||||||||||||||||||
Total assets (2) | 433,122 | 438,275 | 393,708 | 378,220 | 378,654 | ||||||||||||||||||||||||
| Total deposits | 385,288 | 390,143 | 345,590 | 330,624 | 333,254 | ||||||||||||||||||||||||
(1)Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
(2)Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 16 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Global Wealth & Investment Management Key Indicators | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Revenue by Business | |||||||||||||||||||||||||||||
| Merrill Wealth Management | $ | 4,589 | $ | 4,532 | $ | 4,471 | $ | 4,260 | $ | 4,185 | |||||||||||||||||||
| Bank of America Private Bank | 887 | 870 | 839 | 805 | 786 | ||||||||||||||||||||||||
| Total revenue, net of interest expense | $ | 5,476 | $ | 5,402 | $ | 5,310 | $ | 5,065 | $ | 4,971 | |||||||||||||||||||
| Client Balances by Business, at period end | |||||||||||||||||||||||||||||
| Merrill Wealth Management | $ | 3,116,052 | $ | 3,214,881 | $ | 3,108,358 | $ | 3,073,252 | $ | 2,922,770 | |||||||||||||||||||
| Bank of America Private Bank | 598,100 | 625,453 | 584,475 | 579,562 | 557,569 | ||||||||||||||||||||||||
| Total client balances | $ | 3,714,152 | $ | 3,840,334 | $ | 3,692,833 | $ | 3,652,814 | $ | 3,480,339 | |||||||||||||||||||
| Client Balances by Type, at period end | |||||||||||||||||||||||||||||
Assets under management (1) | $ | 1,571,605 | $ | 1,638,782 | $ | 1,578,630 | $ | 1,549,069 | $ | 1,467,487 | |||||||||||||||||||
| Brokerage and other assets | 1,592,802 | 1,655,021 | 1,612,472 | 1,619,246 | 1,535,424 | ||||||||||||||||||||||||
| Deposits | 385,288 | 390,143 | 345,590 | 330,624 | 333,254 | ||||||||||||||||||||||||
Loans and leases (2) | 217,461 | 212,251 | 205,055 | 201,154 | 192,725 | ||||||||||||||||||||||||
| Less: Managed deposits in assets under management | (53,004) | (55,863) | (48,914) | (47,279) | (48,551) | ||||||||||||||||||||||||
| Total client balances | $ | 3,714,152 | $ | 3,840,334 | $ | 3,692,833 | $ | 3,652,814 | $ | 3,480,339 | |||||||||||||||||||
| Assets Under Management Rollforward | |||||||||||||||||||||||||||||
| Assets under management, beginning balance | $ | 1,638,782 | $ | 1,578,630 | $ | 1,549,069 | $ | 1,467,487 | $ | 1,408,465 | |||||||||||||||||||
| Net client flows | 15,537 | 21,552 | 14,776 | 11,714 | 18,208 | ||||||||||||||||||||||||
| Market valuation/other | (82,714) | 38,600 | 14,785 | 69,868 | 40,814 | ||||||||||||||||||||||||
| Total assets under management, ending balance | $ | 1,571,605 | $ | 1,638,782 | $ | 1,578,630 | $ | 1,549,069 | $ | 1,467,487 | |||||||||||||||||||
| Advisors, at period end | |||||||||||||||||||||||||||||
Total wealth advisors (3) | 18,571 | 18,846 | 18,855 | 19,385 | 19,808 | ||||||||||||||||||||||||
(1)Defined as managed assets under advisory and/or discretion of GWIM.
(2)Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
(3)Includes advisors across all wealth management businesses in GWIM and Consumer Banking.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 17 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Global Banking Segment Results | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Net interest income | $ | 2,344 | $ | 2,362 | $ | 2,185 | $ | 1,984 | $ | 1,980 | |||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Service charges | 886 | 887 | 889 | 900 | 847 | ||||||||||||||||||||||||
| Investment banking fees | 880 | 1,465 | 1,297 | 1,173 | 1,172 | ||||||||||||||||||||||||
| All other income | 1,084 | 1,193 | 874 | 1,033 | 634 | ||||||||||||||||||||||||
| Total noninterest income | 2,850 | 3,545 | 3,060 | 3,106 | 2,653 | ||||||||||||||||||||||||
| Total revenue, net of interest expense | 5,194 | 5,907 | 5,245 | 5,090 | 4,633 | ||||||||||||||||||||||||
| Provision for credit losses | 165 | (463) | (781) | (831) | (1,126) | ||||||||||||||||||||||||
| Noninterest expense | 2,683 | 2,717 | 2,534 | 2,599 | 2,782 | ||||||||||||||||||||||||
| Income before income taxes | 2,346 | 3,653 | 3,492 | 3,322 | 2,977 | ||||||||||||||||||||||||
| Income tax expense | 622 | 986 | 943 | 897 | 804 | ||||||||||||||||||||||||
| Net income | $ | 1,724 | $ | 2,667 | $ | 2,549 | $ | 2,425 | $ | 2,173 | |||||||||||||||||||
| Net interest yield | 1.68 | % | 1.59 | % | 1.55 | % | 1.49 | % | 1.56 | % | |||||||||||||||||||
Return on average allocated capital (1) | 16 | 25 | 24 | 23 | 21 | ||||||||||||||||||||||||
| Efficiency ratio | 51.65 | 45.99 | 48.31 | 51.07 | 60.04 | ||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||
| Total loans and leases | $ | 358,807 | $ | 338,627 | $ | 324,736 | $ | 325,110 | $ | 330,107 | |||||||||||||||||||
Total earning assets (2) | 566,277 | 587,472 | 560,181 | 534,562 | 515,880 | ||||||||||||||||||||||||
Total assets (2) | 630,517 | 650,940 | 621,699 | 595,498 | 576,145 | ||||||||||||||||||||||||
| Total deposits | 539,912 | 562,390 | 534,166 | 506,618 | 487,034 | ||||||||||||||||||||||||
Allocated capital (1) | 44,500 | 42,500 | 42,500 | 42,500 | 42,500 | ||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||
| Total loans and leases | $ | 367,423 | $ | 352,933 | $ | 328,893 | $ | 323,256 | $ | 325,996 | |||||||||||||||||||
Total earning assets (2) | 558,639 | 574,583 | 561,239 | 547,278 | 533,852 | ||||||||||||||||||||||||
Total assets (2) | 623,168 | 638,131 | 623,640 | 607,969 | 594,235 | ||||||||||||||||||||||||
| Total deposits | 533,820 | 551,752 | 536,476 | 520,026 | 506,012 | ||||||||||||||||||||||||
(1)Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
(2)Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 18 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Global Banking Key Indicators | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
Investment Banking fees (1) | |||||||||||||||||||||||||||||
Advisory (2) | $ | 439 | $ | 798 | $ | 608 | $ | 376 | $ | 357 | |||||||||||||||||||
| Debt issuance | 359 | 430 | 401 | 482 | 423 | ||||||||||||||||||||||||
| Equity issuance | 82 | 237 | 288 | 315 | 392 | ||||||||||||||||||||||||
Total Investment Banking fees (3) | $ | 880 | $ | 1,465 | $ | 1,297 | $ | 1,173 | $ | 1,172 | |||||||||||||||||||
| Business Lending | |||||||||||||||||||||||||||||
| Corporate | $ | 1,060 | $ | 1,195 | $ | 885 | $ | 989 | $ | 654 | |||||||||||||||||||
| Commercial | 993 | 987 | 923 | 867 | 898 | ||||||||||||||||||||||||
| Business Banking | 58 | 59 | 54 | 56 | 55 | ||||||||||||||||||||||||
| Total Business Lending revenue | $ | 2,111 | $ | 2,241 | $ | 1,862 | $ | 1,912 | $ | 1,607 | |||||||||||||||||||
Global Transaction Services (4) | |||||||||||||||||||||||||||||
| Corporate | $ | 949 | $ | 911 | $ | 850 | $ | 763 | $ | 711 | |||||||||||||||||||
| Commercial | 896 | 909 | 855 | 805 | 772 | ||||||||||||||||||||||||
| Business Banking | 243 | 249 | 240 | 230 | 222 | ||||||||||||||||||||||||
| Total Global Transaction Services revenue | $ | 2,088 | $ | 2,069 | $ | 1,945 | $ | 1,798 | $ | 1,705 | |||||||||||||||||||
| Average deposit balances | |||||||||||||||||||||||||||||
| Interest-bearing | $ | 157,126 | $ | 164,522 | $ | 165,669 | $ | 162,947 | $ | 164,633 | |||||||||||||||||||
| Noninterest-bearing | 382,786 | 397,868 | 368,497 | 343,671 | 322,401 | ||||||||||||||||||||||||
| Total average deposits | $ | 539,912 | $ | 562,390 | $ | 534,166 | $ | 506,618 | $ | 487,034 | |||||||||||||||||||
| Loan spread | 1.53 | % | 1.58 | % | 1.60 | % | 1.57 | % | 1.60 | % | |||||||||||||||||||
| Provision for credit losses | $ | 165 | $ | (463) | $ | (781) | $ | (831) | $ | (1,126) | |||||||||||||||||||
Credit quality (5, 6) | |||||||||||||||||||||||||||||
| Reservable criticized utilized exposure | $ | 18,304 | $ | 19,873 | $ | 20,894 | $ | 25,158 | $ | 29,954 | |||||||||||||||||||
| 4.72 | % | 5.34 | % | 5.99 | % | 7.33 | % | 8.66 | % | ||||||||||||||||||||
| Nonperforming loans, leases and foreclosed properties | $ | 1,329 | $ | 1,351 | $ | 1,504 | $ | 1,651 | $ | 1,812 | |||||||||||||||||||
| 0.37 | % | 0.39 | % | 0.46 | % | 0.52 | % | 0.56 | % | ||||||||||||||||||||
| Average loans and leases by product | |||||||||||||||||||||||||||||
| U.S. commercial | $ | 211,568 | $ | 196,168 | $ | 187,047 | $ | 188,716 | $ | 192,628 | |||||||||||||||||||
| Non-U.S. commercial | 80,783 | 75,611 | 71,859 | 70,666 | 70,573 | ||||||||||||||||||||||||
| Commercial real estate | 51,400 | 51,570 | 49,868 | 49,139 | 49,685 | ||||||||||||||||||||||||
| Commercial lease financing | 15,055 | 15,261 | 15,961 | 16,588 | 17,221 | ||||||||||||||||||||||||
| Other | 1 | 17 | 1 | 1 | — | ||||||||||||||||||||||||
| Total average loans and leases | $ | 358,807 | $ | 338,627 | $ | 324,736 | $ | 325,110 | $ | 330,107 | |||||||||||||||||||
| Total Corporation Investment Banking fees | |||||||||||||||||||||||||||||
Advisory (2) | $ | 473 | $ | 850 | $ | 654 | $ | 407 | $ | 400 | |||||||||||||||||||
| Debt issuance | 831 | 984 | 933 | 1,110 | 988 | ||||||||||||||||||||||||
| Equity issuance | 225 | 545 | 637 | 702 | 900 | ||||||||||||||||||||||||
| Total investment banking fees including self-led deals | 1,529 | 2,379 | 2,224 | 2,219 | 2,288 | ||||||||||||||||||||||||
| Self-led deals | (72) | (28) | (56) | (97) | (42) | ||||||||||||||||||||||||
| Total Investment Banking fees | $ | 1,457 | $ | 2,351 | $ | 2,168 | $ | 2,122 | $ | 2,246 | |||||||||||||||||||
(1)Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending.
(2)Advisory includes fees on debt and equity advisory and mergers and acquisitions.
(3)Investment banking fees represent only the fee component in Global Banking and do not include certain other items shared with the Investment Banking Group under internal revenue sharing agreements.
(4)Prior periods have been revised to conform to current-period presentation.
(5)Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial reservable utilized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers’ acceptances.
(6)Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 19 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Markets Segment Results (1) | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Net interest income | $ | 993 | $ | 1,031 | $ | 1,000 | $ | 990 | $ | 990 | |||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Investment and brokerage services | 545 | 474 | 471 | 474 | 560 | ||||||||||||||||||||||||
| Investment banking fees | 582 | 832 | 844 | 959 | 981 | ||||||||||||||||||||||||
| Market making and similar activities | 3,190 | 1,312 | 2,014 | 1,964 | 3,470 | ||||||||||||||||||||||||
| All other income | (18) | 169 | 190 | 333 | 197 | ||||||||||||||||||||||||
| Total noninterest income | 4,299 | 2,787 | 3,519 | 3,730 | 5,208 | ||||||||||||||||||||||||
Total revenue, net of interest expense (2) | 5,292 | 3,818 | 4,519 | 4,720 | 6,198 | ||||||||||||||||||||||||
| Provision for credit losses | 5 | 32 | 16 | 22 | (5) | ||||||||||||||||||||||||
| Noninterest expense | 3,117 | 2,882 | 3,252 | 3,471 | 3,427 | ||||||||||||||||||||||||
| Income before income taxes | 2,170 | 904 | 1,251 | 1,227 | 2,776 | ||||||||||||||||||||||||
| Income tax expense | 575 | 235 | 325 | 319 | 722 | ||||||||||||||||||||||||
| Net income | $ | 1,595 | $ | 669 | $ | 926 | $ | 908 | $ | 2,054 | |||||||||||||||||||
Return on average allocated capital (3) | 15 | % | 7 | % | 10 | % | 10 | % | 22 | % | |||||||||||||||||||
| Efficiency ratio | 58.90 | 75.49 | 71.94 | 73.55 | 55.29 | ||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||
| Total trading-related assets | $ | 596,154 | $ | 564,282 | $ | 563,715 | $ | 566,842 | $ | 501,789 | |||||||||||||||||||
| Total loans and leases | 108,576 | 102,627 | 97,148 | 87,826 | 77,415 | ||||||||||||||||||||||||
| Total earning assets | 610,926 | 580,794 | 557,333 | 531,000 | 495,324 | ||||||||||||||||||||||||
| Total assets | 858,719 | 816,994 | 804,938 | 797,558 | 723,264 | ||||||||||||||||||||||||
| Total deposits | 44,393 | 43,331 | 54,650 | 55,584 | 53,852 | ||||||||||||||||||||||||
Allocated capital (3) | 42,500 | 38,000 | 38,000 | 38,000 | 38,000 | ||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||
| Total trading-related assets | $ | 616,811 | $ | 491,160 | $ | 536,125 | $ | 542,614 | $ | 524,188 | |||||||||||||||||||
| Total loans and leases | 110,037 | 114,846 | 98,892 | 96,105 | 84,247 | ||||||||||||||||||||||||
| Total earning assets | 609,290 | 561,135 | 526,585 | 527,983 | 496,103 | ||||||||||||||||||||||||
| Total assets | 883,304 | 747,794 | 776,929 | 773,714 | 745,681 | ||||||||||||||||||||||||
| Total deposits | 43,371 | 46,374 | 54,941 | 57,297 | 61,450 | ||||||||||||||||||||||||
| Trading-related assets (average) | |||||||||||||||||||||||||||||
| Trading account securities | $ | 301,285 | $ | 291,518 | $ | 304,133 | $ | 304,760 | $ | 265,181 | |||||||||||||||||||
| Reverse repurchases | 138,581 | 121,878 | 117,486 | 116,424 | 99,886 | ||||||||||||||||||||||||
| Securities borrowed | 114,468 | 109,455 | 101,086 | 101,144 | 89,253 | ||||||||||||||||||||||||
| Derivative assets | 41,820 | 41,431 | 41,010 | 44,514 | 47,469 | ||||||||||||||||||||||||
| Total trading-related assets | $ | 596,154 | $ | 564,282 | $ | 563,715 | $ | 566,842 | $ | 501,789 | |||||||||||||||||||
(1)Effective October 1, 2021, a business activity previously included in the Global Markets segment is being reported as a liquidating business in All Other, consistent with a realignment in performance reporting to senior management. The activity was not material to Global Markets’ results of operations and historical results for the third, second and first quarters of 2021 were not restated.
(2)Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 21.
(3)Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 20 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Global Markets Key Indicators | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
Sales and trading revenue (1) | |||||||||||||||||||||||||||||
| Fixed-income, currencies and commodities | $ | 2,708 | $ | 1,573 | $ | 2,009 | $ | 1,937 | $ | 3,242 | |||||||||||||||||||
| Equities | 2,011 | 1,363 | 1,605 | 1,624 | 1,836 | ||||||||||||||||||||||||
| Total sales and trading revenue | $ | 4,719 | $ | 2,936 | $ | 3,614 | $ | 3,561 | $ | 5,078 | |||||||||||||||||||
Sales and trading revenue, excluding net debit valuation adjustment (2,3) | |||||||||||||||||||||||||||||
| Fixed-income, currencies and commodities | $ | 2,648 | $ | 1,569 | $ | 2,025 | $ | 1,965 | $ | 3,251 | |||||||||||||||||||
| Equities | 2,002 | 1,365 | 1,609 | 1,630 | 1,829 | ||||||||||||||||||||||||
| Total sales and trading revenue, excluding net debit valuation adjustment | $ | 4,650 | $ | 2,934 | $ | 3,634 | $ | 3,595 | $ | 5,080 | |||||||||||||||||||
| Sales and trading revenue breakdown | |||||||||||||||||||||||||||||
| Net interest income | $ | 911 | $ | 954 | $ | 920 | $ | 914 | $ | 899 | |||||||||||||||||||
| Commissions | 531 | 464 | 459 | 462 | 548 | ||||||||||||||||||||||||
| Trading | 3,190 | 1,311 | 2,014 | 1,963 | 3,470 | ||||||||||||||||||||||||
| Other | 87 | 207 | 221 | 222 | 161 | ||||||||||||||||||||||||
| Total sales and trading revenue | $ | 4,719 | $ | 2,936 | $ | 3,614 | $ | 3,561 | $ | 5,078 | |||||||||||||||||||
(1) Includes Global Banking sales and trading revenue of $179 million, $98 million, $138 million, $170 million and $104 million for the first quarter of 2022 and the fourth, third, second and first quarters of 2021, respectively.
(2) For this presentation, sales and trading revenue excludes net debit valuation adjustment (DVA) gains (losses) which include net DVA on derivatives, as well as amortization of own credit portion of purchase discount and realized DVA on structured liabilities. Sales and trading revenue excluding net DVA gains (losses) represents a non-GAAP financial measure. We believe the use of this non-GAAP financial measure provides additional useful information to assess the underlying performance of these businesses and to allow better comparison of period-to-period operating performance.
(3)Net DVA gains (losses) were $69 million, $2 million, $(20) million, $(34) million and $(2) million for the first quarter of 2022 and the fourth, third, second and first quarters of 2021, respectively. FICC net DVA gains (losses) were $60 million, $4 million, $(16) million, $(28) million and $(9) million for the first quarter of 2022 and the fourth, third, second and first quarters of 2021, respectively. Equities net DVA gains (losses) were $9 million, $(2) million, $(4) million, $(6) million and $7 million for the first quarter of 2022 and the fourth, third, second and first quarters of 2021, respectively.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 21 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
All Other Results (1,2) | |||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Net interest income | $ | (7) | $ | 53 | $ | 65 | $ | 41 | $ | 87 | |||||||||||||||||||
| Noninterest income (loss) | (1,434) | (1,927) | (1,110) | (1,526) | (1,026) | ||||||||||||||||||||||||
| Total revenue, net of interest expense | (1,441) | (1,874) | (1,045) | (1,485) | (939) | ||||||||||||||||||||||||
| Provision for credit losses | (47) | (34) | (48) | (53) | (47) | ||||||||||||||||||||||||
| Noninterest expense | 583 | 556 | 352 | 303 | 308 | ||||||||||||||||||||||||
| Loss before income taxes | (1,977) | (2,396) | (1,349) | (1,735) | (1,200) | ||||||||||||||||||||||||
| Income tax expense (benefit) | (1,613) | (1,723) | (1,294) | (3,596) | (1,456) | ||||||||||||||||||||||||
| Net income (loss) | $ | (364) | $ | (673) | $ | (55) | $ | 1,861 | $ | 256 | |||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||
| Total loans and leases | $ | 15,405 | $ | 16,240 | $ | 17,581 | $ | 19,209 | $ | 20,815 | |||||||||||||||||||
Total assets (3) | 154,425 | 185,707 | 187,233 | 187,226 | 207,449 | ||||||||||||||||||||||||
| Total deposits | 20,504 | 23,780 | 13,767 | 14,073 | 14,354 | ||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||
| Total loans and leases | $ | 15,090 | $ | 15,863 | $ | 16,880 | $ | 18,306 | $ | 19,850 | |||||||||||||||||||
Total assets (4) | 132,186 | 214,153 | 199,738 | 206,341 | 204,009 | ||||||||||||||||||||||||
| Total deposits | 20,990 | 21,182 | 12,521 | 13,540 | 12,513 | ||||||||||||||||||||||||
(1)Effective October 1, 2021, a business activity previously included in the Global Markets segment is being reported as a liquidating business in All Other, consistent with a realignment in performance reporting to senior management. The activity was not material to Global Markets’ results of operations and historical results for the third, second and first quarters of 2021 were not restated.
(2)All Other primarily consists of asset and liability management (ALM) activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments.
(3)Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity of $1.2 trillion, $1.2 trillion, $1.1 trillion, $1.1 trillion and $1.0 trillion for the first quarter of 2022 and the fourth, third, second and first quarters of 2021, respectively.
(4)Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity of $1.2 trillion, $1.2 trillion, $1.2 trillion, $1.1 trillion and $1.1 trillion at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 22 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||
| Outstanding Loans and Leases | |||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| March 31 2022 | December 31 2021 | March 31 2021 | |||||||||||||||
| Consumer | |||||||||||||||||
| Residential mortgage | $ | 226,030 | $ | 221,963 | $ | 214,779 | |||||||||||
| Home equity | 26,936 | 27,935 | 32,078 | ||||||||||||||
| Credit card | 79,356 | 81,438 | 72,786 | ||||||||||||||
Direct/Indirect consumer (1) | 105,754 | 103,560 | 91,737 | ||||||||||||||
Other consumer (2) | 205 | 190 | 132 | ||||||||||||||
| Total consumer loans excluding loans accounted for under the fair value option | 438,281 | 435,086 | 411,512 | ||||||||||||||
Consumer loans accounted for under the fair value option (3) | 568 | 618 | 693 | ||||||||||||||
| Total consumer | 438,849 | 435,704 | 412,205 | ||||||||||||||
| Commercial | |||||||||||||||||
| U.S. commercial | 330,973 | 325,936 | 283,229 | ||||||||||||||
| Non-U.S. commercial | 122,267 | 113,266 | 91,335 | ||||||||||||||
Commercial real estate (4) | 62,533 | 63,009 | 58,764 | ||||||||||||||
| Commercial lease financing | 14,008 | 14,825 | 16,359 | ||||||||||||||
| 529,781 | 517,036 | 449,687 | |||||||||||||||
U.S. small business commercial (5) | 17,972 | 19,183 | 34,886 | ||||||||||||||
| Total commercial loans excluding loans accounted for under the fair value option | 547,753 | 536,219 | 484,573 | ||||||||||||||
Commercial loans accounted for under the fair value option (3) | 6,543 | 7,201 | 6,310 | ||||||||||||||
| Total commercial | 554,296 | 543,420 | 490,883 | ||||||||||||||
| Total loans and leases | $ | 993,145 | $ | 979,124 | $ | 903,088 | |||||||||||
(1)Includes primarily auto and specialty lending loans and leases of $49.7 billion, $48.5 billion and $45.4 billion, U.S. securities-based lending loans of $51.9 billion, $51.1 billion and $42.4 billion and non-U.S. consumer loans of $3.2 billion, $3.0 billion and $3.1 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
(2)Substantially all of other consumer is consumer overdrafts.
(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $248 million, $279 million and $275 million and home equity loans of $320 million, $339 million and $418 million at March 31, 2022, December 31, 2021 and March 31, 2021, respectively. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.0 billion, $4.6 billion and $4.2 billion and non-U.S. commercial loans of $2.6 billion, $2.6 billion and $2.1 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
(4)Includes U.S. commercial real estate loans of $58.3 billion, $58.2 billion and $55.8 billion and non-U.S. commercial real estate loans of $4.3 billion, $4.8 billion and $3.0 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
(5)Includes card-related products and Paycheck Protection Program (PPP) loans.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 23 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||
| Quarterly Average Loans and Leases by Business Segment and All Other | ||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| First Quarter 2022 | ||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | 223,979 | $ | 115,388 | $ | 96,221 | $ | 1 | $ | — | $ | 12,369 | ||||||||||||||||||||||||||
| Home equity | 27,784 | 21,963 | 2,400 | — | 241 | 3,180 | ||||||||||||||||||||||||||||||||
| Credit card | 78,409 | 75,730 | 2,679 | — | — | — | ||||||||||||||||||||||||||||||||
| Direct/Indirect and other consumer | 104,632 | 49,292 | 55,338 | — | — | 2 | ||||||||||||||||||||||||||||||||
| Total consumer | 434,804 | 262,373 | 156,638 | 1 | 241 | 15,551 | ||||||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||||||||
| U.S. commercial | 346,510 | 21,683 | 48,496 | 211,568 | 64,566 | 197 | ||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 118,767 | — | 1,237 | 80,783 | 36,684 | 63 | ||||||||||||||||||||||||||||||||
| Commercial real estate | 63,065 | 12 | 4,566 | 51,400 | 7,085 | 2 | ||||||||||||||||||||||||||||||||
| Commercial lease financing | 14,647 | — | — | 15,055 | — | (408) | ||||||||||||||||||||||||||||||||
| Total commercial | 542,989 | 21,695 | 54,299 | 358,806 | 108,335 | (146) | ||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 977,793 | $ | 284,068 | $ | 210,937 | $ | 358,807 | $ | 108,576 | $ | 15,405 | ||||||||||||||||||||||||||
| Fourth Quarter 2021 | ||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | 219,193 | $ | 112,937 | $ | 93,294 | $ | 1 | $ | — | $ | 12,961 | ||||||||||||||||||||||||||
| Home equity | 28,796 | 22,672 | 2,476 | — | 253 | 3,395 | ||||||||||||||||||||||||||||||||
| Credit card | 78,358 | 75,649 | 2,709 | — | — | — | ||||||||||||||||||||||||||||||||
| Direct/Indirect and other consumer | 101,854 | 48,118 | 53,717 | 16 | — | 3 | ||||||||||||||||||||||||||||||||
| Total consumer | 428,201 | 259,376 | 152,196 | 17 | 253 | 16,359 | ||||||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||||||||
| U.S. commercial | 330,796 | 22,943 | 47,354 | 196,168 | 64,105 | 226 | ||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 108,899 | — | 1,276 | 75,611 | 31,968 | 44 | ||||||||||||||||||||||||||||||||
| Commercial real estate | 62,296 | 13 | 4,410 | 51,570 | 6,301 | 2 | ||||||||||||||||||||||||||||||||
| Commercial lease financing | 14,870 | — | — | 15,261 | — | (391) | ||||||||||||||||||||||||||||||||
| Total commercial | 516,861 | 22,956 | 53,040 | 338,610 | 102,374 | (119) | ||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 945,062 | $ | 282,332 | $ | 205,236 | $ | 338,627 | $ | 102,627 | $ | 16,240 | ||||||||||||||||||||||||||
| First Quarter 2021 | ||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | 219,005 | $ | 113,729 | $ | 88,532 | $ | — | $ | — | $ | 16,744 | ||||||||||||||||||||||||||
| Home equity | 33,634 | 26,490 | 2,812 | — | 284 | 4,048 | ||||||||||||||||||||||||||||||||
| Credit card | 74,165 | 71,805 | 2,360 | — | — | — | ||||||||||||||||||||||||||||||||
| Direct/Indirect and other consumer | 91,430 | 46,320 | 45,107 | — | — | 3 | ||||||||||||||||||||||||||||||||
| Total consumer | 418,234 | 258,344 | 138,811 | — | 284 | 20,795 | ||||||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||||||||
| U.S. commercial | 322,010 | 32,535 | 44,436 | 192,628 | 52,016 | 395 | ||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 90,904 | — | 932 | 70,573 | 19,369 | 30 | ||||||||||||||||||||||||||||||||
| Commercial real estate | 59,736 | 12 | 4,316 | 49,685 | 5,717 | 6 | ||||||||||||||||||||||||||||||||
| Commercial lease financing | 16,839 | — | — | 17,221 | 29 | (411) | ||||||||||||||||||||||||||||||||
| Total commercial | 489,489 | 32,547 | 49,684 | 330,107 | 77,131 | 20 | ||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 907,723 | $ | 290,891 | $ | 188,495 | $ | 330,107 | $ | 77,415 | $ | 20,815 | ||||||||||||||||||||||||||
| Current-period information is preliminary and based on company data available at the time of the presentation. | 24 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
Commercial Credit Exposure by Industry (1, 2, 3, 4, 6) | |||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Commercial Utilized | Total Commercial Committed | ||||||||||||||||||||||||||||||||||
| March 31 2022 | December 31 2021 | March 31 2021 | March 31 2022 | December 31 2021 | March 31 2021 | ||||||||||||||||||||||||||||||
| Asset managers & funds | $ | 102,558 | $ | 89,786 | $ | 68,195 | $ | 158,973 | $ | 136,914 | $ | 105,459 | |||||||||||||||||||||||
Real estate (5) | 67,211 | 69,384 | 66,159 | 93,888 | 96,202 | 89,891 | |||||||||||||||||||||||||||||
| Capital goods | 44,545 | 42,784 | 37,030 | 85,942 | 84,293 | 78,134 | |||||||||||||||||||||||||||||
| Finance companies | 50,559 | 59,327 | 49,483 | 76,101 | 86,009 | 76,246 | |||||||||||||||||||||||||||||
| Materials | 27,570 | 25,133 | 23,474 | 60,017 | 53,652 | 50,704 | |||||||||||||||||||||||||||||
| Healthcare equipment and services | 33,164 | 32,003 | 31,750 | 58,264 | 58,195 | 56,118 | |||||||||||||||||||||||||||||
| Retailing | 26,678 | 24,514 | 23,857 | 51,557 | 50,816 | 47,562 | |||||||||||||||||||||||||||||
| Government & public education | 35,212 | 37,597 | 39,093 | 49,213 | 50,066 | 51,381 | |||||||||||||||||||||||||||||
| Consumer services | 27,045 | 28,172 | 29,877 | 47,344 | 48,052 | 47,471 | |||||||||||||||||||||||||||||
| Food, beverage and tobacco | 23,332 | 21,584 | 22,597 | 46,566 | 45,419 | 44,651 | |||||||||||||||||||||||||||||
| Commercial services and supplies | 20,818 | 22,390 | 21,139 | 42,809 | 42,451 | 37,768 | |||||||||||||||||||||||||||||
| Individuals and trusts | 29,340 | 29,752 | 28,326 | 38,961 | 39,869 | 37,989 | |||||||||||||||||||||||||||||
| Utilities | 18,908 | 17,082 | 11,681 | 38,178 | 36,855 | 29,481 | |||||||||||||||||||||||||||||
| Energy | 16,770 | 14,217 | 13,596 | 36,001 | 34,136 | 32,416 | |||||||||||||||||||||||||||||
| Transportation | 21,268 | 21,079 | 21,745 | 32,034 | 32,015 | 32,032 | |||||||||||||||||||||||||||||
| Software and services | 12,075 | 10,663 | 10,536 | 30,195 | 27,643 | 25,674 | |||||||||||||||||||||||||||||
| Media | 11,693 | 12,495 | 12,358 | 27,525 | 26,318 | 25,262 | |||||||||||||||||||||||||||||
| Technology hardware and equipment | 10,551 | 10,159 | 9,248 | 26,479 | 26,910 | 24,434 | |||||||||||||||||||||||||||||
| Global commercial banks | 25,092 | 20,062 | 21,019 | 26,234 | 21,390 | 23,048 | |||||||||||||||||||||||||||||
| Consumer durables and apparel | 10,989 | 9,740 | 8,507 | 22,089 | 21,226 | 19,484 | |||||||||||||||||||||||||||||
| Vehicle dealers | 11,438 | 11,030 | 13,487 | 20,381 | 15,678 | 16,877 | |||||||||||||||||||||||||||||
| Pharmaceuticals and biotechnology | 6,175 | 5,608 | 4,216 | 19,093 | 19,439 | 16,932 | |||||||||||||||||||||||||||||
| Telecommunication services | 10,500 | 10,056 | 8,752 | 18,453 | 21,270 | 24,422 | |||||||||||||||||||||||||||||
| Insurance | 6,784 | 5,743 | 6,052 | 18,120 | 14,323 | 14,567 | |||||||||||||||||||||||||||||
| Automobiles and components | 9,195 | 9,236 | 11,694 | 17,782 | 17,052 | 20,213 | |||||||||||||||||||||||||||||
| Food and staples retailing | 7,304 | 6,902 | 5,499 | 12,772 | 12,226 | 10,570 | |||||||||||||||||||||||||||||
| Financial markets infrastructure (clearinghouses) | 4,359 | 3,876 | 4,271 | 6,966 | 6,076 | 7,275 | |||||||||||||||||||||||||||||
| Religious and social organizations | 2,906 | 3,154 | 4,473 | 5,345 | 5,394 | 6,347 | |||||||||||||||||||||||||||||
| Total commercial credit exposure by industry | $ | 674,039 | $ | 653,528 | $ | 608,114 | $ | 1,167,282 | $ | 1,129,889 | $ | 1,052,408 | |||||||||||||||||||||||
(1)Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $34.1 billion, $30.9 billion and $35.3 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $45.6 billion, $47.3 billion and $39.4 billion, which consists primarily of other marketable securities, at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
(2)Total utilized and total committed exposure includes loans of $6.5 billion, $7.2 billion and $6.3 billion and issued letters of credit with a notional amount of $48 million, $51 million and $79 million accounted for under the fair value option at March 31, 2022, December 31, 2021 and March 31, 2021, respectively. In addition, total committed exposure includes unfunded loan commitments accounted for under the fair value option with a notional amount of $4.0 billion, $4.8 billion and $4.5 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
(3)Includes U.S. small business commercial exposure.
(4)Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (e.g., syndicated or participated) to other financial institutions.
(5)Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the primary business activity of the borrowers or the counterparties using operating cash flows and primary source of repayment as key factors.
(6)Includes $3.0 billion, $4.7 billion and $21.1 billion of PPP loan exposure across impacted industries at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 25 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Nonperforming Loans, Leases and Foreclosed Properties | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
| March 31 2022 | December 31 2021 | September 30 2021 | June 30 2021 | March 31 2021 | |||||||||||||||||||||||||
| Residential mortgage | $ | 2,422 | $ | 2,284 | $ | 2,296 | $ | 2,343 | $ | 2,366 | |||||||||||||||||||
| Home equity | 615 | 630 | 676 | 651 | 669 | ||||||||||||||||||||||||
| Direct/Indirect consumer | 67 | 75 | 45 | 50 | 56 | ||||||||||||||||||||||||
| Total consumer | 3,104 | 2,989 | 3,017 | 3,044 | 3,091 | ||||||||||||||||||||||||
| U.S. commercial | 818 | 825 | 909 | 1,060 | 1,228 | ||||||||||||||||||||||||
| Non-U.S. commercial | 268 | 268 | 272 | 275 | 342 | ||||||||||||||||||||||||
| Commercial real estate | 361 | 382 | 414 | 404 | 354 | ||||||||||||||||||||||||
| Commercial lease financing | 54 | 80 | 70 | 81 | 80 | ||||||||||||||||||||||||
| 1,501 | 1,555 | 1,665 | 1,820 | 2,004 | |||||||||||||||||||||||||
| U.S. small business commercial | 20 | 23 | 32 | 43 | 67 | ||||||||||||||||||||||||
| Total commercial | 1,521 | 1,578 | 1,697 | 1,863 | 2,071 | ||||||||||||||||||||||||
| Total nonperforming loans and leases | 4,625 | 4,567 | 4,714 | 4,907 | 5,162 | ||||||||||||||||||||||||
Foreclosed properties (1) | 153 | 130 | 117 | 124 | 137 | ||||||||||||||||||||||||
Total nonperforming loans, leases and foreclosed properties (2, 3) | $ | 4,778 | $ | 4,697 | $ | 4,831 | $ | 5,031 | $ | 5,299 | |||||||||||||||||||
| Fully-insured home loans past due 30 days or more and still accruing | $ | 817 | $ | 887 | $ | 930 | $ | 997 | $ | 1,030 | |||||||||||||||||||
| Consumer credit card past due 30 days or more and still accruing | 1,003 | 997 | 934 | 976 | 1,317 | ||||||||||||||||||||||||
| Other loans past due 30 days or more and still accruing | 3,736 | 3,398 | 2,583 | 2,699 | 3,506 | ||||||||||||||||||||||||
Total loans past due 30 days or more and still accruing (4, 5) | $ | 5,556 | $ | 5,282 | $ | 4,447 | $ | 4,672 | $ | 5,853 | |||||||||||||||||||
| Fully-insured home loans past due 90 days or more and still accruing | $ | 574 | $ | 634 | $ | 648 | $ | 687 | $ | 728 | |||||||||||||||||||
Consumer credit card past due 90 days or more and still accruing | 492 | 487 | 450 | 533 | 755 | ||||||||||||||||||||||||
| Other loans past due 90 days or more and still accruing | 607 | 336 | 232 | 299 | 309 | ||||||||||||||||||||||||
Total loans past due 90 days or more and still accruing (4, 5) | $ | 1,673 | $ | 1,457 | $ | 1,330 | $ | 1,519 | $ | 1,792 | |||||||||||||||||||
Nonperforming loans, leases and foreclosed properties/Total assets (6) | 0.15 | % | 0.15 | % | 0.16 | % | 0.17 | % | 0.18 | % | |||||||||||||||||||
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties (6) | 0.48 | 0.48 | 0.52 | 0.55 | 0.59 | ||||||||||||||||||||||||
Nonperforming loans and leases/Total loans and leases (6) | 0.47 | 0.47 | 0.51 | 0.54 | 0.58 | ||||||||||||||||||||||||
Commercial reservable criticized utilized exposure (7) | $ | 20,682 | $ | 22,381 | $ | 24,142 | $ | 28,878 | $ | 34,283 | |||||||||||||||||||
Commercial reservable criticized utilized exposure/Commercial reservable utilized exposure (7) | 3.54 | % | 3.91 | % | 4.53 | % | 5.45 | % | 6.59 | % | |||||||||||||||||||
Total commercial criticized utilized exposure/Commercial utilized exposure (7) | 3.47 | 3.91 | 4.55 | 5.37 | 6.41 | ||||||||||||||||||||||||
(1)Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally loans insured by the Federal Housing Administration (FHA), that entered foreclosure of $61 million, $52 million, $55 million, $66 million and $87 million at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.
(2)Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the FHA and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate.
(3)Balances do not include nonperforming loans held-for-sale of $336 million, $264 million, $279 million, $348 million and $384 million and nonperforming loans accounted for under the fair value option of $19 million, $21 million, $13 million, $13 million and $12 million at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.
(4)Balances do not include loans held-for-sale past due 30 days or more and still accruing of $654 million, $523 million, $222 million, $159 million and $75 million at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively, and loans held-for-sale past due 90 days or more and still accruing of $50 million, $41 million, $9 million, $70 million and $18 million at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively. At March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, there were $8 million, $12 million, $9 million, $74 million and $12 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest.
(5)These balances are excluded from total nonperforming loans, leases and foreclosed properties.
(6)Total assets and total loans and leases do not include loans accounted for under the fair value option of $7.1 billion, $7.8 billion, $7.6 billion, $7.0 billion and $7.0 billion at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.
(7)Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 26 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Nonperforming Loans, Leases and Foreclosed Properties Activity (1) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Nonperforming Consumer Loans and Leases: | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 2,989 | $ | 3,017 | $ | 3,044 | $ | 3,091 | $ | 2,725 | |||||||||||||||||||
| Additions | 644 | 371 | 353 | 431 | 851 | ||||||||||||||||||||||||
| Reductions: | |||||||||||||||||||||||||||||
| Paydowns and payoffs | (175) | (179) | (163) | (160) | (123) | ||||||||||||||||||||||||
| Sales | (131) | (1) | (1) | (1) | (1) | ||||||||||||||||||||||||
Returns to performing status (2) | (202) | (198) | (201) | (291) | (347) | ||||||||||||||||||||||||
Charge-offs (3) | (15) | (15) | (12) | (25) | (12) | ||||||||||||||||||||||||
| Transfers to foreclosed properties | (6) | (6) | (3) | (1) | (2) | ||||||||||||||||||||||||
| Total net additions (reductions) to nonperforming loans and leases | 115 | (28) | (27) | (47) | 366 | ||||||||||||||||||||||||
| Total nonperforming consumer loans and leases, end of period | 3,104 | 2,989 | 3,017 | 3,044 | 3,091 | ||||||||||||||||||||||||
| Foreclosed properties | 118 | 101 | 87 | 93 | 101 | ||||||||||||||||||||||||
| Nonperforming consumer loans, leases and foreclosed properties, end of period | $ | 3,222 | $ | 3,090 | $ | 3,104 | $ | 3,137 | $ | 3,192 | |||||||||||||||||||
Nonperforming Commercial Loans and Leases (4): | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 1,578 | $ | 1,697 | $ | 1,863 | $ | 2,071 | $ | 2,227 | |||||||||||||||||||
| Additions | 183 | 372 | 275 | 503 | 472 | ||||||||||||||||||||||||
| Reductions: | |||||||||||||||||||||||||||||
| Paydowns | (159) | (290) | (297) | (264) | (312) | ||||||||||||||||||||||||
| Sales | (25) | (71) | (29) | (77) | (22) | ||||||||||||||||||||||||
Return to performing status (5) | (5) | (95) | (82) | (59) | (28) | ||||||||||||||||||||||||
| Charge-offs | (12) | (35) | (33) | (108) | (78) | ||||||||||||||||||||||||
| Transfers to foreclosed properties | — | — | — | — | — | ||||||||||||||||||||||||
| Transfers to loans held-for-sale | (39) | — | — | (203) | (188) | ||||||||||||||||||||||||
| Total net reductions to nonperforming loans and leases | (57) | (119) | (166) | (208) | (156) | ||||||||||||||||||||||||
| Total nonperforming commercial loans and leases, end of period | 1,521 | 1,578 | 1,697 | 1,863 | 2,071 | ||||||||||||||||||||||||
| Foreclosed properties | 35 | 29 | 30 | 31 | 36 | ||||||||||||||||||||||||
| Nonperforming commercial loans, leases and foreclosed properties, end of period | $ | 1,556 | $ | 1,607 | $ | 1,727 | $ | 1,894 | $ | 2,107 | |||||||||||||||||||
(1)For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 26.
(2)Consumer 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. Certain troubled debt restructurings are classified as nonperforming at the time of restructuring and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.
(3)Our policy is not to classify consumer credit card and non-bankruptcy related consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and, accordingly, are excluded from this table.
(4)Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.
(5)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. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 27 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Net Charge-offs and Net Charge-off Ratios (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | (10) | (0.02) | % | $ | (11) | (0.02) | % | $ | (7) | (0.01) | % | $ | (6) | (0.01) | % | $ | (4) | (0.01) | % | |||||||||||||||||||||||||||||||||||||||
| Home equity | (30) | (0.44) | (26) | (0.37) | (34) | (0.46) | (24) | (0.31) | (35) | (0.42) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Credit card | 297 | 1.53 | 280 | 1.42 | 321 | 1.69 | 488 | 2.67 | 634 | 3.47 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Direct/Indirect consumer | 4 | 0.02 | (3) | (0.01) | (18) | (0.07) | (9) | (0.04) | 31 | 0.14 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other consumer | 79 | n/m | 72 | n/m | 67 | n/m | 64 | n/m | 67 | n/m | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total consumer | 340 | 0.32 | 312 | 0.29 | 329 | 0.31 | 513 | 0.50 | 693 | 0.67 | |||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. commercial | (14) | (0.02) | (19) | (0.02) | 15 | 0.02 | (31) | (0.04) | 12 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 1 | — | (6) | (0.02) | 1 | — | 14 | 0.06 | 26 | 0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial and industrial | (13) | (0.01) | (25) | (0.02) | 16 | 0.02 | (17) | (0.02) | 38 | 0.04 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 23 | 0.15 | 6 | 0.04 | — | — | 17 | 0.11 | 11 | 0.07 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial lease financing | — | — | — | — | (1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| 10 | 0.01 | (19) | (0.02) | 15 | 0.01 | — | — | 49 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. small business commercial | 42 | 0.94 | 69 | 1.32 | 119 | 1.76 | 82 | 0.98 | 81 | 0.89 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 52 | 0.04 | 50 | 0.04 | 134 | 0.11 | 82 | 0.07 | 130 | 0.11 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total net charge-offs | $ | 392 | 0.16 | $ | 362 | 0.15 | $ | 463 | 0.20 | $ | 595 | 0.27 | $ | 823 | 0.37 | ||||||||||||||||||||||||||||||||||||||||||||
| By Business Segment and All Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking | $ | 416 | 0.59 | % | $ | 411 | 0.58 | % | $ | 489 | 0.69 | % | $ | 625 | 0.89 | % | $ | 810 | 1.13 | % | |||||||||||||||||||||||||||||||||||||||
| Global Wealth & Investment Management | 1 | — | 5 | 0.01 | 7 | 0.01 | — | — | 13 | 0.03 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Global Banking | (12) | (0.01) | (28) | (0.03) | 8 | 0.01 | 3 | — | 36 | 0.05 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Global Markets | 21 | 0.08 | 10 | 0.04 | — | — | — | — | 3 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
| All Other | (34) | (0.91) | (36) | (0.91) | (41) | (0.92) | (33) | (0.70) | (39) | (0.78) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total net charge-offs | $ | 392 | 0.16 | $ | 362 | 0.15 | $ | 463 | 0.20 | $ | 595 | 0.27 | $ | 823 | 0.37 | ||||||||||||||||||||||||||||||||||||||||||||
(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 during the period for each loan and lease category.
n/m = not meaningful
| Current-period information is preliminary and based on company data available at the time of the presentation. | 28 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||
| Allocation of the Allowance for Credit Losses by Product Type | ||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||||||||||
| Amount | Percent of Loans and Leases Outstanding (1, 2) | Amount | Percent of Loans and Leases Outstanding (1, 2) | Amount | Percent of Loans and Leases Outstanding (1, 2) | |||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | 301 | 0.13% | $ | 351 | 0.16% | $ | 428 | 0.20% | |||||||||||||||||||||||||||||
| Home equity | 172 | 0.64 | 206 | 0.74 | 261 | 0.81 | ||||||||||||||||||||||||||||||||
| Credit card | 5,684 | 7.16 | 5,907 | 7.25 | 7,278 | 10.00 | ||||||||||||||||||||||||||||||||
| Direct/Indirect consumer | 512 | 0.48 | 523 | 0.51 | 617 | 0.67 | ||||||||||||||||||||||||||||||||
| Other consumer | 46 | n/m | 46 | n/m | 51 | n/m | ||||||||||||||||||||||||||||||||
| Total consumer | 6,715 | 1.53 | 7,033 | 1.62 | 8,635 | 2.10 | ||||||||||||||||||||||||||||||||
U.S. commercial (3) | 2,966 | 0.85 | 3,019 | 0.87 | 4,131 | 1.30 | ||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 1,155 | 0.94 | 975 | 0.86 | 1,154 | 1.26 | ||||||||||||||||||||||||||||||||
| Commercial real estate | 1,218 | 1.95 | 1,292 | 2.05 | 2,148 | 3.66 | ||||||||||||||||||||||||||||||||
| Commercial lease financing | 50 | 0.36 | 68 | 0.46 | 100 | 0.61 | ||||||||||||||||||||||||||||||||
| Total commercial | 5,389 | 0.98 | 5,354 | 1.00 | 7,533 | 1.55 | ||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | 12,104 | 1.23 | 12,387 | 1.28 | 16,168 | 1.80 | ||||||||||||||||||||||||||||||||
| Reserve for unfunded lending commitments | 1,379 | 1,456 | 1,829 | |||||||||||||||||||||||||||||||||||
| Allowance for credit losses | $ | 13,483 | $ | 13,843 | $ | 17,997 | ||||||||||||||||||||||||||||||||
Asset Quality Indicators | ||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses/Total loans and leases (2) | 1.23% | 1.28% | 1.80% | |||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses/Total nonperforming loans and leases (4) | 262 | 271 | 313 | |||||||||||||||||||||||||||||||||||
| Ratio of the allowance for loan and lease losses/Annualized net charge-offs | 7.62 | 8.62 | 4.85 | |||||||||||||||||||||||||||||||||||
(1)Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option include residential mortgage loans of $248 million, $279 million and $275 million, and home equity loans of $320 million, $339 million and $418 million at March 31, 2022, December 31, 2021 and March 31, 2021, respectively. Commercial loans accounted for under the fair value option include U.S. commercial loans of $4.0 billion, $4.6 billion and $4.2 billion and non-U.S. commercial loans of $2.6 billion, $2.6 billion and $2.1 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
(2)Total loans and leases do not include loans accounted for under the fair value option of $7.1 billion, $7.8 billion and $7.0 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
(3)Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.0 billion, $1.2 billion and $1.5 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
(4)Allowance for loan and lease losses includes $6.6 billion, $7.0 billion and $8.7 billion allocated to products (primarily the Consumer Lending portfolios within Consumer Banking) that are excluded from nonperforming loans and leases at March 31, 2022, December 31, 2021 and March 31, 2021, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 118 percent, 117 percent and 144 percent at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
n/m = not meaningful
| Current-period information is preliminary and based on company data available at the time of the presentation. | 29 | ||||
| Exhibit A: Non-GAAP Reconciliations | |||||||||||||||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||
| Reconciliations to GAAP Financial Measures | |||||||||||||||||
| (Dollars in millions, except per share information) | |||||||||||||||||
The Corporation evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents shareholders’ equity or common shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities ("adjusted" shareholders' equity or common shareholders’ equity). Return on average tangible common shareholders’ equity measures the Corporation’s net income applicable to common shareholders as a percentage of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total tangible assets (total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities). Return on average tangible shareholders’ equity measures the Corporation’s net income as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total tangible assets. Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation’s use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders’ equity as key measures to support our overall growth goals.
See the tables below for reconciliations of these non-GAAP financial measures to the most closely related financial measures defined by GAAP for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in understanding its results of operations and trends. Other companies may define or calculate supplemental financial data differently.
| First Quarter 2022 | Fourth Quarter 2021 | Third Quarter 2021 | Second Quarter 2021 | First Quarter 2021 | |||||||||||||||||||||||||
| Reconciliation of income before income taxes to pretax, pre-provision income | |||||||||||||||||||||||||||||
| Income before income taxes | $ | 7,879 | $ | 7,818 | $ | 8,950 | $ | 8,042 | $ | 9,166 | |||||||||||||||||||
| Provision for credit losses | 30 | (489) | (624) | (1,621) | (1,860) | ||||||||||||||||||||||||
| Pretax, pre-provision income | $ | 7,909 | $ | 7,329 | $ | 8,326 | $ | 6,421 | $ | 7,306 | |||||||||||||||||||
| Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and average tangible common shareholders’ equity | |||||||||||||||||||||||||||||
| Shareholders’ equity | $ | 269,309 | $ | 270,883 | $ | 275,484 | $ | 274,632 | $ | 274,047 | |||||||||||||||||||
| Goodwill | (69,023) | (69,022) | (69,023) | (69,023) | (68,951) | ||||||||||||||||||||||||
| Intangible assets (excluding mortgage servicing rights) | (2,146) | (2,166) | (2,185) | (2,212) | (2,146) | ||||||||||||||||||||||||
| Related deferred tax liabilities | 929 | 913 | 915 | 915 | 920 | ||||||||||||||||||||||||
| Tangible shareholders’ equity | $ | 199,069 | $ | 200,608 | $ | 205,191 | $ | 204,312 | $ | 203,870 | |||||||||||||||||||
| Preferred stock | (26,444) | (24,364) | (23,441) | (23,684) | (24,399) | ||||||||||||||||||||||||
| Tangible common shareholders’ equity | $ | 172,625 | $ | 176,244 | $ | 181,750 | $ | 180,628 | $ | 179,471 | |||||||||||||||||||
| Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity and period-end tangible common shareholders’ equity | |||||||||||||||||||||||||||||
| Shareholders’ equity | $ | 266,617 | $ | 270,066 | $ | 272,464 | $ | 277,119 | $ | 274,000 | |||||||||||||||||||
| Goodwill | (69,023) | (69,022) | (69,023) | (69,023) | (68,951) | ||||||||||||||||||||||||
| Intangible assets (excluding mortgage servicing rights) | (2,133) | (2,153) | (2,172) | (2,192) | (2,134) | ||||||||||||||||||||||||
| Related deferred tax liabilities | 926 | 929 | 913 | 915 | 915 | ||||||||||||||||||||||||
| Tangible shareholders’ equity | $ | 196,387 | $ | 199,820 | $ | 202,182 | $ | 206,819 | $ | 203,830 | |||||||||||||||||||
| Preferred stock | (27,137) | (24,708) | (23,441) | (23,441) | (24,319) | ||||||||||||||||||||||||
| Tangible common shareholders’ equity | $ | 169,250 | $ | 175,112 | $ | 178,741 | $ | 183,378 | $ | 179,511 | |||||||||||||||||||
| Reconciliation of period-end assets to period-end tangible assets | |||||||||||||||||||||||||||||
| Assets | $ | 3,238,223 | $ | 3,169,495 | $ | 3,085,446 | $ | 3,029,894 | $ | 2,969,992 | |||||||||||||||||||
| Goodwill | (69,023) | (69,022) | (69,023) | (69,023) | (68,951) | ||||||||||||||||||||||||
| Intangible assets (excluding mortgage servicing rights) | (2,133) | (2,153) | (2,172) | (2,192) | (2,134) | ||||||||||||||||||||||||
| Related deferred tax liabilities | 926 | 929 | 913 | 915 | 915 | ||||||||||||||||||||||||
| Tangible assets | $ | 3,167,993 | $ | 3,099,249 | $ | 3,015,164 | $ | 2,959,594 | $ | 2,899,822 | |||||||||||||||||||
| Book value per share of common stock | |||||||||||||||||||||||||||||
| Common shareholders’ equity | $ | 239,480 | $ | 245,358 | $ | 249,023 | $ | 253,678 | $ | 249,681 | |||||||||||||||||||
| Ending common shares issued and outstanding | 8,062.1 | 8,077.8 | 8,241.2 | 8,487.2 | 8,589.7 | ||||||||||||||||||||||||
| Book value per share of common stock | $ | 29.70 | $ | 30.37 | $ | 30.22 | $ | 29.89 | $ | 29.07 | |||||||||||||||||||
| Tangible book value per share of common stock | |||||||||||||||||||||||||||||
| Tangible common shareholders’ equity | $ | 169,250 | $ | 175,112 | $ | 178,741 | $ | 183,378 | $ | 179,511 | |||||||||||||||||||
| Ending common shares issued and outstanding | 8,062.1 | 8,077.8 | 8,241.2 | 8,487.2 | 8,589.7 | ||||||||||||||||||||||||
| Tangible book value per share of common stock | $ | 20.99 | $ | 21.68 | $ | 21.69 | $ | 21.61 | $ | 20.90 | |||||||||||||||||||
| Current-period information is preliminary and based on company data available at the time of the presentation. | 30 | ||||