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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the Quarterly Period Ended ~~March 31,~~June 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from to

Commission file number:

1-6523

Exact name of registrant as specified in its charter:

Bank of America Corporation

State or other jurisdiction of incorporation or organization:

Delaware

IRS Employer Identification No.:

56-0906609

Address of principal executive offices:

Bank of America Corporate Center

100 N. Tryon Street

Charlotte, North Carolina 28255

Registrant’s telephone number, including area code:

(704) 386-5681

Former name, former address and former fiscal year, if changed since last report:

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BAC	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrE	New York Stock Exchange
of Floating Rate Non-Cumulative Preferred Stock, Series E
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrB	New York Stock Exchange
of 6.000% Non-Cumulative Preferred Stock, Series GG
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrK	New York Stock Exchange
of 5.875% Non-Cumulative Preferred Stock, Series HH
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L	BAC PrL	New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrG	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 1


1~~Bank of America~~


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrH	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 2
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrJ	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 4
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrL	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 5
Floating Rate Preferred Hybrid Income Term Securities of BAC Capital	BAC/PF	New York Stock Exchange
Trust XIII (and the guarantee related thereto)
5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities	BAC/PG	New York Stock Exchange
of BAC Capital Trust XIV (and the guarantee related thereto)
Income Capital Obligation Notes initially due December 15, 2066 of	MER PrK	New York Stock Exchange
Bank of America Corporation
Senior Medium-Term Notes, Series A, Step Up Callable Notes, due	BAC/31B	New York Stock Exchange
November 28, 2031 of BofA Finance LLC (and the guarantee
of the Registrant with respect thereto)
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrM	New York Stock Exchange
5.375% Non-Cumulative Preferred Stock, Series KK
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrN	New York Stock Exchange
of 5.000% Non-Cumulative Preferred Stock, Series LL
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrO	New York Stock Exchange
4.375% Non-Cumulative Preferred Stock, Series NN
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrP	New York Stock Exchange
4.125% Non-Cumulative Preferred Stock, Series PP

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).

Yes ☐ No ☑

On ~~April 28,~~July 29, 2021, there were ~~8,569,317,603~~8,414,903,881 shares of Bank of America Corporation Common Stock outstanding.


						~~Bank of America~~2

Bank of America Corporation and Subsidiaries

~~March 31,~~June 30, 2021

Form 10-Q

INDEX

Part I. Financial Information


Item 1. Financial Statements						Page
Consolidated Statement of Income						4448
Consolidated Statement of Comprehensive Income						4448
Consolidated Balance Sheet						4549
Consolidated Statement of Changes in Shareholders’ Equity						4650
Consolidated Statement of Cash Flows						4751
Notes to Consolidated Financial Statements						4852
Note 1 – Summary of Significant Accounting Principles						4852
Note 2 – Net Interest Income and Noninterest Income						4852
Note 3 – Derivatives						4954
Note 4 – Securities						5661
Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses						5964

Note 6 – Securitizations and Other Variable Interest Entities						6975
Note 7 – Goodwill and Intangible Assets						7379
Note 8 – Leases						7379
Note 9 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash						7480
Note 10 – Commitments and Contingencies						7582
Note 11 – Shareholders’ Equity						7885
Note 12 – Accumulated Other Comprehensive Income (Loss)						7885
Note 13 – Earnings Per Common Share						7986

Note 14 – Fair Value Measurements						7986
Note 15 – Fair Value Option						8593
Note 16 – Fair Value of Financial Instruments						8695
Note 17 – Business Segment Information						8795
Glossary						90100
Acronyms						91101



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Executive Summary						3
Recent Developments						3
Financial Highlights						4

Supplemental Financial Data						67
Business Segment Operations						911
Consumer Banking						911
Global Wealth & Investment Management						1215
Global Banking						1417
Global Markets						1619

All Other						1721
Off-Balance Sheet Arrangements and Contractual Obligations						1822
Managing Risk						1822

Capital Management						1822
Liquidity Risk						2326
Credit Risk Management						2629
Consumer Portfolio Credit Risk Management						2629
Commercial Portfolio Credit Risk Management						3135
Non-U.S. Portfolio						3740

Allowance for Credit Losses						3841
Market Risk Management						3942
Trading Risk Management						4043
Interest Rate Risk Management for the Banking Book						4145
Mortgage Banking Risk Management						4245



Climate Risk Management						4346
Complex Accounting Estimates						4346
Non-GAAP Reconciliations						4347

Item 3. Quantitative and Qualitative Disclosures about Market Risk						4347
Item 4. Controls and Procedures						4347


1 Bank of America

Part II. Other Information


Item 1. Legal Proceedings						92102
Item 1A. Risk Factors						92102
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						92102
Item 6. Exhibits						93103
Signature						93103

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Bank of America Corporation (the “Corporation”) 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 Corporation’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 Corporation’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 Corporation’s 2020 Annual Report on Form 10-K and in any of the Corporation’s subsequent Securities and Exchange Commission filings: the Corporation’s potential judgments, damages, 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; the possibility that the Corporation'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 Corporation could face increased claims from one or more parties involved in mortgage securitizations; the Corporation'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 Corporation’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 environment on the Corporation’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; the Corporation’s concentration of credit risk; the Corporation'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 Corporation’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 Corporation’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 Corporation’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 Corporation’s operational or security systems or infrastructure, or those of third parties, including as a result of cyber-attacks or campaigns; the impact on the Corporation’s business, financial condition and results of operations from the United Kingdom's exit from the European Union; the impact of climate change; 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, terrorism or other geopolitical events; and other matters.

Forward-looking statements speak only as of the date they are made, and the Corporation 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.

Notes to the Consolidated Financial Statements referred to in Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) are incorporated by reference into the MD&A. Certain prior-period amounts have been reclassified to conform to current-period presentation. Throughout the MD&A, the Corporation uses certain acronyms and abbreviations which are defined in the Glossary.


						Bank of America 2

Executive Summary

Business Overview

The Corporation is a Delaware corporation, a bank holding company (BHC) and a financial holding company. When used in this report, “the Corporation,” “we,” “us” and “our” may refer to Bank of America Corporation individually, Bank of America Corporation and its subsidiaries, or certain of Bank of America Corporation’s subsidiaries or affiliates. Our principal executive offices are located in Charlotte, North Carolina. Through our various bank and nonbank subsidiaries throughout the U.S. and in international markets, we provide a diversified range of banking and nonbank financial services and products through four business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets, with the remaining operations recorded in All Other. We operate our banking activities primarily under the Bank of America, National Association (Bank of America, N.A. or BANA) charter. At ~~March 31,~~June 30, 2021, the Corporation had $3.0 trillion in assets and a headcount of approximately 212,000 employees.

As of ~~March 31,~~June 30, 2021, we served clients through operations across the U.S., its territories and approximately 35 countries. Our retail banking footprint covers all major markets in the U.S., and we serve approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, approximately 17,000 ATMs, and leading digital banking platforms (www.bankofamerica.com) with approximately 4041 million active users, including approximately 3132 million active mobile users. We offer industry-leading support to approximately three million small business households. Our GWIM businesses, with client balances of ~~$3.5~~$3.7 trillion, provide tailored solutions to meet client needs through a full set of investment management, brokerage, banking, trust and retirement products. We are a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world.

The Corporation’s website is www.bankofamerica.com, and the Investor Relations portion of our website is https://investor.bankofamerica.com. We use our website to distribute company information, including as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. We routinely post and make accessible financial and other information, including environmental, social and governance (ESG) information, regarding the Corporation on our website. Investors should monitor the Investor Relations portion of our website, in addition to our press releases, U.S. Securities and Exchange Commission (SEC) filings, public conference calls and webcasts.

Recent Developments

Capital Management

On ~~March 19,~~June 24, 2021, the Board of Governors of the Federal Reserve System (Federal Reserve), announced the ~~Federal Deposit Insurance Corporation (FDIC),~~results of our 2021 Comprehensive Capital Analysis and Review (CCAR) capital plan and related supervisory stress tests. Based on our results, we will be subject to a preliminary 2.5 percent stress capital buffer (SCB) beginning October 1, 2021, unchanged from the ~~Office of the Comptroller of the Currency (OCC,~~current level, and ~~together with the Federal Reserve and the FDIC, the U.S. banking regulators) announced that the temporary change to the supplementary leverage~~our minimum Basel 3 Common equity tier 1 (CET1) capital ratio (SLR) for BHCs and depository institutions issued in 2020 would expire as scheduled after March 31, 2021. While the temporary relief automatically applied to the Corporation, the Corporation’s lead depository institution, Bank of America, N.A., did not opt to take advantage of the SLR relief offered by the OCC. At March 31,requirement will also remain unchanged at 9.5 percent.

On July 21, 2021, the Corporation’s SLR was 7.0 percent. Excluding the temporary relief, the SLR would have been approximately 6.1 percent, which is 1.1 percent, or $35 billion, in excess of the 5.0 percent required by the Federal Reserve.

Due to uncertainty resulting from the Coronavirus Disease 2019 (COVID-19) pandemic (the pandemic), the Federal Reserve required large banks to suspend share repurchase programs during the second half of 2020, except for repurchases to offset shares awarded under equity-based compensation plans, and to limit common stock dividends to existing rates that did not exceed the average of the last four quarters’ net income. In December 2020, the Federal Reserve announced that beginning in the first quarter of 2021, large banks would be permitted to

pay common stock dividends at existing rates and to repurchase shares in an amount that, when combined with dividends paid, did not exceed the average of the last four quarters’ net income. Pursuant to the authorization of the Board of Directors (the Board), during the first quarter of 2021, we repurchased $3.5 billion of common stock, including repurchases to offset shares awarded under equity-based compensation plans during the period. This authorization equaled the maximum amount allowed by the Federal Reserve for the period.

On March 25, 2021, the Federal Reserve announced that the restrictions on common stock dividends and share repurchases currently in place will end for most banks after June 30, 2021, following the completion of 2021 supervisory stress tests. Banks, including the Corporation, with capital levels above those required by the stress tests will no longer be subject to the additional restrictions as of July 1, 2021, and will be subject to the normal restrictions under the Federal Reserve’s stress capital buffer (SCB) framework.

On April 15, 2021, the Corporation announced that the Board authorized the repurchase of up to $25 billion of common stock over time. The Board also authorized repurchases to offset shares awarded under equity-based compensation plans. For the second quarter of 2021, the Corporation’s repurchase plans will be consistent with the Federal Reserve’s guidance that common stock repurchases and common stock dividends, when combined, should be limited to the average of the last four quarters’ net income. Following the expiration of the Federal Reserve's restrictions, the Corporation expects to return additional capital to shareholders through repurchases and dividends pursuant to the Board's authorizations.

~~On April 22, 2021, the Board~~ declared a quarterly common stock dividend of ~~$0.18~~$0.21 per share, an increase of 17 percent compared to the prior

dividend rate, payable on ~~June 25,~~September 24, 2021 to shareholders of record as of ~~June 4,~~September 3, 2021.

For more information on our capital resources and regulatory developments, see Capital Management on page ~~18.~~22.

U.K. Tax Law Change

On June 10, 2021, the U.K. enacted the 2021 Finance Act, which increases the U.K. corporation income tax rate to 25 percent from 19 percent, effective April 1, 2023. As a result, during the second quarter of 2021, the Corporation recorded a write-up of U.K. net deferred tax assets of approximately $2.0 billion with a corresponding positive income tax adjustment. For more information, see Financial Highlights – Income Tax Expense on page 6.

COVID-19 Pandemic

The Corporation has been, and may continue to be, impacted by the ~~pandemic. In recent months,~~Coronavirus Disease 2019 (COVID-19) pandemic (the pandemic). During the first half of 2021, the macroeconomic outlook improved in the U.S. and several regions of the world, as COVID-19 ~~vaccination rates have been increasing~~cases decreased and ~~restrictive measures have eased in certain areas.~~vaccinations became more widely available. However, uncertainty still remains about the duration of the pandemic and the timing and strength of the global ~~economy’s~~economic recovery. To address the economic impact of the pandemic in the U.S., multiple stimulus packages have been enacted to provide economic relief to individuals and businesses, including the Coronavirus Aid, Relief and Economic Security Act (CARES Act), which established the Small Business Administration (SBA) Paycheck Protection Program (PPP), and the American Rescue Plan Act of 2021 enacted in March 2021.

As the pandemic evolves, we continue to ~~evaluate~~review protocols and processes in place to execute our business continuity ~~plans and help promote the health and safety of~~plans. In conjunction with our ~~employees. We also continue~~efforts to support ~~the communities we serve by engaging in various initiatives to help those affected by COVID-19.~~

~~Additionally, we continue to support our~~ clients ~~by providing assistance through various measures to those~~ affected by the pandemic, ~~including by originating PPP loans. As~~we have cumulatively originated $35.4 billion in loans under the Paycheck Protection Program (PPP) with amounts outstanding of $15.7 billion and $21.1 billion at June 30, 2021 and March 31, ~~2021, we had approximately 278,000~~2021. For more information on PPP loans, ~~outstanding with a carrying value of $21.1 billion, which were recorded in the~~ ~~Consumer~~, ~~GWIM~~ ~~and~~ ~~Global Banking~~ segments. Since the PPP’s inception through April 22, 2021, we have received $12.1 billion in repayment from the SBA. Additionally, we have originated $8.7 billion in PPP loans year to date through April 22, 2021.see Commercial Portfolio Credit Risk Management on page 35.

Although the macroeconomic and public health outlooks improved in the U.S. and globally during the first ~~quarter~~half of 2021, the future


3~~Bank of America~~

direct and indirect impact of the pandemic on our businesses, results of operations and financial condition remains uncertain. Should current economic conditions deteriorate or if the pandemic worsens, including as the result of the spread of ~~the~~COVID-19 variants that are more easily communicable ~~variants of COVID-19, this macroeconomic environment~~or resistant to currently available vaccines, such conditions could have an adverse effect on our businesses and results of operations and could adversely affect our financial condition.

For more information on the pandemic, see Executive Summary – Recent Developments – COVID-19 Pandemic in the MD&A and Item 1A. Risk Factors – Coronavirus Disease of the Corporation’s 2020 Annual Report on Form 10-K.

LIBOR and Other Benchmark Rates

Following the 2017 announcement by the U.K.’s Financial Conduct Authority (FCA) that it would no longer compel participating banks to submit rates for the London Interbank Offered Rate (LIBOR) after 2021, regulators, trade associations and financial industry working groups have identified recommended replacement rates for LIBOR, as well as other Interbank Offered Rates (IBORs), and have published recommended conventions to allow new and existing products to incorporate fallbacks or that reference these ~~Alternative Reference Rates~~alternative reference rates (ARRs). ~~In March 2021,~~Additionally, as previously disclosed, the FCA ~~which regulates LIBOR,~~ announced the dates for the cessation of all LIBOR benchmark settings currently published by the ICE Benchmark Administration. ~~The FCA confirmed~~In connection with the transition, in April 2021, the State of New York approved legislation for contracts that ~~publication of all Euro~~are governed by New York law by providing a statutory framework to replace LIBOR with a benchmark rate based on the Secured


3Bank of America

Overnight Financing Rate (SOFR), which is anticipated to help the Corporation reduce legal and ~~Swiss Franc LIBOR settings~~economic uncertainty with regard to certain LIBOR-based products and ~~most British Pound Sterling~~contracts that are governed by New York law and ~~Japanese Yen LIBOR settings will cease~~have no fallback provisions or become no longer representative of the underlying market the rates seek to measure (i.e., non-representative) immediately after December 31, 2021, and most U.S. Dollar LIBOR settings will become non-representative immediately after June 30, 2023.have fallback provisions that are based on LIBOR.

The Corporation continues to execute its enterprise-wide IBOR transition program. As part of this transition program, ~~in March 2021,~~ the Corporation ~~ceased offering adjustable-rate mortgages linked~~continues to ~~LIBOR and began offering Secured Overnight Financing Rate (SOFR)-linked adjustable-rate consumer mortgages. On April 1, 2021, the Corporation ceased the~~decrease initiation of new ~~GBP~~U.S. dollar LIBOR-linked commercial loans ~~bonds, securitizations and linear derivatives~~ that ~~expire~~mature after ~~the end of 2021,~~June 30, 2023, subject to certain ~~exceptions.~~exceptions, and continues to increase the usage of ARRs in its U.S. dollar commercial lending products and contracts. Additionally, ~~in April 2021,~~ the Corporation ~~issued a $1 billion six-month floating-rate bank note referencing~~has ceased initiation of most GBP LIBOR-linked derivatives, subject to certain exceptions, and is prioritizing interdealer trading in SOFR rather than LIBOR for certain U.S. dollar interest rate swaps in accordance with recommendations by the ~~one-month Bloomberg Short-Term Bank Yield Index to multiple investors.~~Commodity Futures Trading Commission (CFTC). The Corporation continues to update its operational models, systems, processes and internal infrastructure.

~~The~~While the Corporation ~~also~~ continues to work towards meeting the regulatory and industry-wide recommended milestones on cessation of ~~LIBOR; however,~~LIBOR, the market and client replacement of IBORs

and adoption of ARRs continue to evolve and, as a result, could impact the ability of market participants and the Corporation to transition activity across or within categories of contracts, products, services and markets. Accordingly, the Corporation continues to monitor a variety of market scenarios as part of its transition efforts, including risks associated with insufficient preparation by individual market participants or the overall market ecosystem, ability of market participants to meet regulatory and industry-wide recommended milestones, development and adoption of SOFR, credit-sensitive and other rates, access and demand by clients and market participants to liquidity in certain products, including LIBOR products, and IBOR ~~continuity beyond December 2021.~~continuity. Furthermore, banking regulators in the U.S. and ~~U.K. banking regulators~~globally have ~~stated that they expect to increase~~

increased regulatory scrutiny and ~~intensify~~intensified supervisory focus of financial institution LIBOR transition plans, preparations and readiness.

For more information on the expected replacement of LIBOR and other benchmark rates, see Executive Summary – Recent Developments – LIBOR and Other Benchmark Rates in the MD&A and Item 1A. Risk Factors – Other of the Corporation’s 2020 Annual Report on Form 10-K.

Financial Highlights


Table 1	Table 1	Summary Income Statement and Selected Financial Data							Table 1		Summary Income Statement and Selected Financial Data

			Three Months Ended March 31									Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions, except per share information)	(Dollars in millions, except per share information)		2021			2020							(Dollars in millions, except per share information)		2021			2020			2021					2020
Income statement	Income statement												Income statement
Net interest income	Net interest income		$	10,197		$	12,130						Net interest income		$	10,233		$	10,848		$	20,430				$	22,978
Noninterest income	Noninterest income		12,624			10,637							Noninterest income		11,233			11,478			23,857					22,115
Total revenue, net of interest expense	Total revenue, net of interest expense		22,821			22,767							Total revenue, net of interest expense		21,466			22,326			44,287					45,093
Provision for credit losses	Provision for credit losses		(1,860)			4,761							Provision for credit losses		(1,621)			5,117			(3,481)					9,878
Noninterest expense	Noninterest expense		15,515			13,475							Noninterest expense		15,045			13,410			30,560					26,885
Income before income taxes	Income before income taxes		9,166			4,531							Income before income taxes		8,042			3,799			17,208					8,330
Income tax expense	Income tax expense		1,116			521							Income tax expense		(1,182)			266			(66)					787
Net income	Net income		8,050			4,010							Net income		9,224			3,533			17,274					7,543
Preferred stock dividends	Preferred stock dividends		490			469							Preferred stock dividends		260			249			750					718
Net income applicable to common shareholders	Net income applicable to common shareholders		$	7,560		$	3,541						Net income applicable to common shareholders		$	8,964		$	3,284		$	16,524				$	6,825

Per common share information	Per common share information												Per common share information
Earnings	Earnings		$	0.87		$	0.40						Earnings		$	1.04		$	0.38		$	1.91				$	0.78
Diluted earnings	Diluted earnings		0.86			0.40							Diluted earnings		1.03			0.37			1.90					0.77
Dividends paid	Dividends paid		0.18			0.18							Dividends paid		0.18			0.18			0.36					0.36
Performance ratios	Performance ratios												Performance ratios
Return on average assets (1)	Return on average assets (1)		1.13		%	0.65		%					Return on average assets (1)		1.23		%	0.53		%	1.18		%			0.58		%
Return on average common shareholders’ equity (1)	Return on average common shareholders’ equity (1)		12.28			5.91							Return on average common shareholders’ equity (1)		14.33			5.44			13.31					5.67
Return on average tangible common shareholders’ equity (2)	Return on average tangible common shareholders’ equity (2)		17.08			8.32							Return on average tangible common shareholders’ equity (2)		19.90			7.63			18.51					7.97
Efficiency ratio (1)	Efficiency ratio (1)		67.98			59.19							Efficiency ratio (1)		70.09			60.06			69.00					59.62
			March 31 2021			December 31 2020															June 30 2021					December 31 2020

Balance sheet	Balance sheet													Balance sheet
Total loans and leases	Total loans and leases		$	903,088					$	927,861				Total loans and leases										$	918,928				$	927,861
Total assets	Total assets		2,969,992			2,819,627							Total assets								3,029,894					2,819,627
Total deposits	Total deposits		1,884,938			1,795,480							Total deposits								1,909,142					1,795,480
Total liabilities	Total liabilities		2,695,992			2,546,703							Total liabilities								2,752,775					2,546,703
Total common shareholders’ equity	Total common shareholders’ equity		249,681			248,414							Total common shareholders’ equity								253,678					248,414
Total shareholders’ equity	Total shareholders’ equity		274,000			272,924							Total shareholders’ equity								277,119					272,924

(1)For definitions, see Key Metrics on page ~~91.~~101.

(2)Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to the most closely related financial measures defined by accounting principles generally accepted in the United States of America (GAAP), see Non-GAAP Reconciliations on page ~~43.~~47.

Net income was $8.1 billion, or $0.86 per diluted share, for the three months ended March 31, 2021 compared to $4.0 billion, or $0.40 per diluted share, for the same period in 2020. The increase in net income was primarily due to improvement in the provision for credit losses and higher noninterest income, partially offset by higher noninterest expense and lower net interest income.

Total assets increased $150.4 billion from December 31, 2020 to $3.0 trillion primarily driven by an increase in debt securities due to cash deployed from continued deposit inflows, as well as higher trading account assets driven by an increase in inventory in ~~Global Markets,~~ ~~partially offset by a decrease in loans and leases due to continued paydowns.~~

Total liabilities increased $149.3 billion from December 31, 2020 to $2.7 trillion primarily driven by an increase in deposits due to additional government stimulus measures as well as seasonally higher deposits, an increase in trading account liabilities resulting from higher levels of short positions in ~~Global~~


						Bank of America 4

Net income was $9.2 billion and $17.3 billion, or $1.03 and $1.90 per diluted share, for the three and six months ended June 30, 2021 compared to $3.5 billion and $7.5 billion, or $0.37 and $0.77 per diluted share, for the same periods in 2020. The increase in net income was primarily due to improvement in the provision for credit losses and a positive income tax adjustment related to the revaluation of U.K. net deferred tax assets, partially offset by higher noninterest expense.

~~Markets~~Total assets increased $210.3 billion from December 31, 2020 to $3.0 trillion primarily due to the deployment of cash from continued deposit inflows into debt securities, as well as higher trading account assets due to an increase in inventory in ~~and~~Global Markets.

Total liabilities increased $206.1 billion from December 31, 2020 to $2.8 trillion primarily driven by an increase in deposits due to additional government stimulus measures as well as seasonally higher deposits, higher federal funds purchased and securities loaned or sold under agreements to repurchase ~~driven by~~due to client activity in Global Markets. andan increase in trading account liabilities resulting from higher levels of short positions in Global Markets.

Shareholders’ equity increased ~~$1.1~~$4.2 billion from December 31, 2020 primarily due to net income, ~~and issuance of preferred stock,~~ partially offset by returns of capital to shareholders through common stock repurchases and common and preferred stock dividends, as well as market value decreases on ~~derivatives~~debt securities and ~~debt securities.~~derivatives.

Net Interest Income

Net interest income decreased ~~$1.9~~$615 million to $10.2 billion, and $2.5 billion to ~~$10.2~~$20.4 billion for the three and six months ended ~~March 31,~~June 30, 2021 compared to the same ~~period~~periods in 2020. Net interest yield on a fully taxable-equivalent (FTE) basis decreased 6526 basis points (bps) to ~~1.68 percent.~~1.61 percent, and 45 bps to 1.64 percent for the same periods. The decrease in net interest income was primarily driven by lower interest rates and loan balances, partially offset by ~~the deployment~~higher balances of ~~excess cash into~~ debt securities. For more information on net interest yield and the FTE basis, see Supplemental Financial Data on page 6,7, and for more information on interest rate risk management, see Interest Rate Risk Management for the Banking Book on page ~~41.~~45.

Noninterest Income


Table 2	Table 2	Noninterest Income							Table 2	Noninterest Income

			Three Months Ended March 31					Three Months Ended June 30						Six Months Ended June 30
													Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021		2020		(Dollars in millions)			2021	2020					2021			2020
Fees and commissions:	Fees and commissions:								Fees and commissions:
Card income	Card income		$	1,435	$	1,272			Card income		$	1,586		$	1,249		$	3,021		$	2,521
Service charges	Service charges		1,792		1,903				Service charges		1,874			1,562			3,666			3,465
Investment and brokerage services	Investment and brokerage services		4,063		3,758				Investment and brokerage services		4,123			3,422			8,186			7,180
Investment banking fees	Investment banking fees		2,246		1,388				Investment banking fees		2,122			2,159			4,368			3,547
Total fees and commissions	Total fees and commissions		9,536		8,321				Total fees and commissions		9,705			8,392			19,241			16,713
Market making and similar activities	Market making and similar activities		3,529		2,807				Market making and similar activities		1,826			2,487			5,355			5,294

Other income	Other income		(441)		(491)				Other income		(298)			599			(739)			108

Total noninterest income	Total noninterest income		$	12,624	$	10,637			Total noninterest income		$	11,233		$	11,478		$	23,857		$	22,115

Noninterest income ~~increased~~decreased $~~2.0~~245 million to $11.2 billion and increased $1.7 billion to ~~$12.6~~$23.9 billion for the three and six months ended ~~March 31,~~June 30, 2021 compared to the same ~~period~~periods in 2020. The following highlights the significant changes.

● Card income increased ~~$163~~$337 million and $500 million primarily driven by increased client activity and merchant services ~~and higher income related to the processing of unemployment insurance.~~revenue.

● Service charges ~~decreased $111~~increased $312 million and $201 million primarily due to higher ~~deposit balances driven by additional government stimulus measures.~~treasury fees and increased client activity in the three-month period.

● Investment and brokerage services income increased ~~$305~~$701 million and $1.0 billion primarily driven by higher market valuations and ~~higher~~ assets under management (AUM) flows, partially offset by declines in AUM pricing.

● Investment banking fees increased ~~$858~~$821 million for the six-month period primarily driven by higher equity issuance fees as well as advisory and ~~advisory~~debt issuance fees.

● Market making and similar activities ~~increased $722~~decreased $661 million for the three-month period primarily driven by higher market-related gains in the prior-year period due to a more robust trading environment for macro products and market recoveries from the end of the first quarter of 2020.

● Other income decreased $897 million and $847 million primarily due to ~~strong trading performance~~a $704 million gain on sales of certain mortgage loans in the prior year as well as higher partnership losses on tax credit mortgage and municipal products, and gains in commodities from market volatility driven by a weather-related event, partially offset by reduced activity in other macro products. In addition, the prior-year period included market-related write-downs due to the pandemic.investments.

Provision for Credit Losses

The provision for credit losses improved ~~$6.6~~$6.7 billion to a benefit of ~~$1.9~~$1.6 billion and $13.4 billion to a benefit of $3.5 billion for the three and six months ended ~~March 31,~~June 30, 2021 compared to the same ~~period~~periods in 2020, primarily driven by improvement in the macroeconomic ~~outlook and lower loan balances.~~outlook. For more information on the provision for credit losses, see Allowance for Credit Losses on page ~~38.~~41.


5Bank of America

Noninterest Expense


Table 3	Table 3	Noninterest Expense							Table 3	Noninterest Expense

			Three Months Ended March 31					Three Months Ended June 30								Six Months Ended June 30
							Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021		2020			(Dollars in millions)			2021			2020					2021				2020
Compensation and benefits	Compensation and benefits		$	9,736	$	8,341			Compensation and benefits			$	8,653					$	7,994			$	18,389			$	16,335
Occupancy and equipment	Occupancy and equipment		1,830		1,702				Occupancy and equipment			1,759				1,802				3,589				3,504
Information processing and communications	Information processing and communications		1,425		1,209				Information processing and communications			1,448				1,265				2,873				2,474
Product delivery and transaction related	Product delivery and transaction related		977		777				Product delivery and transaction related			976				811				1,953				1,588
Marketing	Marketing		371		438				Marketing			810				492				1,181				930
Professional fees	Professional fees		403		375				Professional fees			426				381				829				756
Other general operating	Other general operating		773		633				Other general operating			973				665				1,746				1,298
Total noninterest expense	Total noninterest expense		$	15,515	$	13,475			Total noninterest expense			$	15,045			$	13,410			$	30,560			$	26,885

Noninterest expense increased ~~$2.0~~$1.6 billion to ~~$15.5~~$15.0 billion, and $3.7 billion to $30.6 billion for the three and six months ended ~~March 31,~~June 30, 2021 compared to the same ~~period~~periods in 2020. The increase in the three-month period was primarily due to higher compensation and benefits expense, a $500 million contribution to the Bank of America Foundation and approximately $300 million associated with processing

transactional card claims related to state unemployment benefits. The increase in the six-month period was primarily driven by the same factors as the three-month period as well as elevated net COVID-19 related costs, acceleration of expenses due to incentive compensation award changes, an impairment charge for real estate rationalization, higher revenue-related expenses and higher severance costs.

Income Tax Expense


Table 4	Table 4	Income Tax Expense									Table 4	Income Tax Expense

			Three Months Ended March 31							Three Months Ended June 30								Six Months Ended June 30
									Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021			2020				(Dollars in millions)			2021			2020				2021			2020
Income before income taxes	Income before income taxes		$	9,166		$	4,531				Income before income taxes			$	8,042				$	3,799		$	17,208		$	8,330
Income tax expense	Income tax expense		1,116			521					Income tax expense			(1,182)				266			(66)			787
Effective tax rate	Effective tax rate		12.2		%	11.5		%			Effective tax rate			(14.7)		%		7.0	%		(0.4)	%		9.4	%

~~The~~

Changes in the effective tax rates for the three and six months ended ~~March 31,~~June 30, 2021 ~~and March 31, 2020~~compared to the same periods a year ago were ~~primarily~~ driven by the impact of our recurring tax preference benefits ~~that mainly~~on higher levels of pretax income and the impact of the U.K. tax law change further discussed in this section. Our recurring tax preference benefits primarily consist of tax credits from ~~environmental, social and governance (ESG)~~ investments in affordable housing and renewable ~~energy. Excluding~~energy, aligning with our responsible growth strategy to address global sustainability challenges. Absent these tax credits ~~related to our ESG investment activity, our~~and the impact of the U.K. tax law change, the effective tax rate would have been 23approximately 25 percent.

On June 10, 2021, the U.K. enacted the 2021 Finance Act, which increases the U.K. corporation income tax rate to 25 percent from 19 percent. This change is effective April 1, 2023 and unfavorably affects income tax expense on future U.K. earnings. As a result, the Corporation recorded a write-up of U.K. net deferred tax assets of approximately $2.0 billion, with a corresponding positive income tax adjustment. This write-up is a reversal of previously recorded write-downs of net deferred tax assets for prior changes in the ~~first quarter of 2021.~~U.K. corporation income tax rate.


5~~Bank of America~~


						Bank of America6

Supplemental Financial Data

Non-GAAP Financial Measures

In this Form 10-Q, we present certain non-GAAP financial measures. Non-GAAP financial measures exclude certain items or otherwise include components that differ from the most directly comparable measures calculated in accordance with GAAP. Non-GAAP financial measures are provided as additional useful information to assess our financial condition, results of operations (including period-to-period operating performance) or compliance with prospective regulatory requirements. These non-GAAP financial measures are not intended as a substitute for GAAP financial measures and may not be defined or calculated the same way as non-GAAP financial measures used by other companies.

We view net interest income and related ratios and analyses on an FTE basis, which when presented on a consolidated basis are non-GAAP financial measures. To derive the FTE basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, we use the federal statutory tax rate of 21 percent and a representative state tax rate. Net interest yield, which measures the basis points we earn over the cost of funds, utilizes net interest income on an FTE basis. We believe that presentation of these items on an FTE basis allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices.

We may present certain key performance indicators and ratios excluding certain items (e.g., debit valuation adjustment (DVA) gains (losses)) which result in non-GAAP financial measures. We believe that the presentation of measures that exclude these items 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.

We also evaluate our business based on certain 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 (MSRs)), net of related deferred tax liabilities ~~("adjusted" shareholders'~~(“adjusted” shareholders’ equity or common ~~shareholders'~~shareholders’ equity). These measures are used to evaluate our use of equity. In addition, profitability, relationship and investment models use both return on average tangible

common shareholders’ equity and return on average tangible shareholders’ equity as key measures to support our overall growth objectives. These ratios are as follows:

● Return on average tangible common shareholders’ equity measures our net income applicable to common shareholders as a percentage of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total tangible assets.

● Return on average tangible ~~shareholders'~~shareholders’ equity measures our 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.

We believe ratios utilizing tangible equity provide additional useful information because they present measures of those assets that can generate income. Tangible book value per common share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock.

The aforementioned supplemental data and performance measures are presented in Table 5.

For more information on the reconciliation of these non-GAAP financial measures to the corresponding GAAP financial measures, see Non-GAAP Reconciliations on page ~~43.~~47.

~~Key Performance Indicators~~

We present certain key financial and nonfinancial performance indicators (key performance indicators) that management uses when assessing our consolidated and/or segment results. We believe they are useful to investors because they provide additional information about our underlying operational performance and trends. These key performance indicators (KPIs) may not be defined or calculated in the same way as similar KPIs used by other companies. For information on how these metrics are defined, see Key Metrics on page 91.

~~Our consolidated key performance indicators, which include various equity and credit metrics, are presented in Table 1 on page 4 and/or Table 5 on page 7.~~

~~For information on key segment performance metrics, see Business Segment Operations on page 9.~~


						~~Bank of America~~6

Table 5 Selected Quarterly Financial Data
2021 Quarter 2020 Quarters
(In millions, except per share information) First Fourth Third Second First
Income statement
Net interest income $ 10,197 $ 10,253 $ 10,129 $ 10,848 $ 12,130
Noninterest income 12,624 9,846 10,207 11,478 10,637
Total revenue, net of interest expense 22,821 20,099 20,336 22,326 22,767
Provision for credit losses (1,860) 53 1,389 5,117 4,761
Noninterest expense 15,515 13,927 14,401 13,410 13,475
Income before income taxes 9,166 6,119 4,546 3,799 4,531
Income tax expense 1,116 649 (335) 266 521
Net income 8,050 5,470 4,881 3,533 4,010
Net income applicable to common shareholders 7,560 5,208 4,440 3,284 3,541
Average common shares issued and outstanding 8,700.1 8,724.9 8,732.9 8,739.9 8,815.6
Average diluted common shares issued and outstanding 8,755.6 8,785.0 8,777.5 8,768.1 8,862.7
Performance ratios
Return on average assets (1)
1.13 % 0.78 % 0.71 % 0.53 % 0.65 %
Four-quarter trailing return on average assets (2)
0.79 0.67 0.75 0.81 0.99
Return on average common shareholders’ equity (1)
12.28 8.39 7.24 5.44 5.91
Return on average tangible common shareholders’ equity (3)
17.08 11.73 10.16 7.63 8.32
Return on average shareholders’ equity (1)
11.91 8.03 7.26 5.34 6.10
Return on average tangible shareholders’ equity (3)
16.01 10.84 9.84 7.23 8.29
Total ending equity to total ending assets 9.23 9.68 9.82 9.69 10.11
Total average equity to total average assets 9.52 9.71 9.76 9.85 10.60
Dividend payout 20.68 30.11 35.36 47.87 44.57
Per common share data
Earnings $ 0.87 $ 0.60 $ 0.51 $ 0.38 $ 0.40
Diluted earnings 0.86 0.59 0.51 0.37 0.40
Dividends paid 0.18 0.18 0.18 0.18 0.18
Book value (1)
29.07 28.72 28.33 27.96 27.84
Tangible book value (3)
20.90 20.60 20.23 19.90 19.79
Market capitalization $ 332,337 $ 262,206 $ 208,656 $ 205,772 $ 184,181
Average balance sheet
Total loans and leases $ 907,723 $ 934,798 $ 974,018 $ 1,031,387 $ 990,283
Total assets 2,879,221 2,791,874 2,739,684 2,704,186 2,494,928
Total deposits 1,805,747 1,737,139 1,695,488 1,658,197 1,439,336
Long-term debt 220,836 225,423 224,254 221,167 210,816
Common shareholders’ equity 249,648 246,840 243,896 242,889 241,078
Total shareholders’ equity 274,047 271,020 267,323 266,316 264,534
Asset quality
Allowance for credit losses (4)
$ 17,997 $ 20,680 $ 21,506 $ 21,091 $ 17,126
Nonperforming loans, leases and foreclosed properties (5)
5,299 5,116 4,730 4,611 4,331
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)
1.80 % 2.04 % 2.07 % 1.96 % 1.51 %
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)
313 380 431 441 389
Net charge-offs $ 823 $ 881 $ 972 $ 1,146 $ 1,122
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)
0.37 % 0.38 % 0.40 % 0.45 % 0.46 %
Capital ratios at period end (6)

Common equity tier 1 capital 11.8 % 11.9 % 11.9 % 11.4 % 10.8 %
Tier 1 capital 13.3 13.5 13.5 12.9 12.3
Total capital 15.6 16.1 16.1 14.8 14.6
Tier 1 leverage 7.2 7.4 7.4 7.4 7.9
Supplementary leverage ratio 7.0 7.2 6.9 7.1 6.4
Tangible equity (3)
7.0 7.4 7.4 7.3 7.7
Tangible common equity (3)
6.2 6.5 6.6 6.5 6.7
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets 26.8 % 27.4 % 26.9 % 26.0 % 24.6 %
Total loss-absorbing capacity to supplementary leverage exposure 14.1 14.5 13.7 14.2 12.8
Eligible long-term debt to risk-weighted assets 13.0 13.3 12.9 12.4 11.6
Eligible long-term debt to supplementary leverage exposure 6.8 7.1 6.6 6.7 6.1

~~(1)For definitions, see Key Metrics on page 91.~~

~~(2)Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.~~

~~(3)~~Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and corresponding reconciliations to GAAP financial measures, see Supplemental Financial Data on page 6 and Non-GAAP Reconciliations on page 43.

~~(4)Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.~~

~~(5)~~Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 31 and corresponding Table 24 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 35 and corresponding Table 31.

~~(6)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 18.~~


7~~Bank of America~~

Table 6 Quarterly Average Balances and Interest Rates - FTE Basis
Average
Balance
Interest
Income/
Expense (1)
Yield/
Rate Average
Balance
Interest
Income/
Expense (1)
Yield/
Rate
(Dollars in millions) First Quarter 2021 First Quarter 2020
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central
banks and other banks
$ 278,098 $ 29 0.04 % $ 130,282 $ 268 0.83 %
Time deposits placed and other short-term investments 8,742 4 0.18 10,894 30 1.11
Federal funds sold and securities borrowed or purchased under
agreements to resell
249,985 (7) (0.01) 278,794 819 1.18
Trading account assets 145,089 885 2.47 156,685 1,266 3.25
Debt securities 788,638 2,745 1.41 465,215 2,868 2.49
Loans and leases (2)
Residential mortgage 219,005 1,529 2.80 239,994 1,987 3.31
Home equity 33,634 281 3.38 40,040 421 4.22
Credit card 74,165 1,947 10.65 94,471 2,464 10.49
Direct/Indirect and other consumer (3)
91,430 559 2.48 90,954 746 3.30
Total consumer 418,234 4,316 4.17 465,459 5,618 4.85
U.S. commercial (4)
322,010 2,051 2.58 330,420 2,910 3.54
Non-U.S. commercial (4)
90,904 409 1.83 111,388 738 2.66
Commercial real estate (5)
59,736 365 2.48 63,418 583 3.70
Commercial lease financing 16,839 132 3.15 19,598 161 3.29
Total commercial 489,489 2,957 2.45 524,824 4,392 3.36
Total loans and leases 907,723 7,273 3.24 990,283 10,010 4.06
Other earning assets 103,650 577 2.26 87,876 981 4.49
Total earning assets 2,481,925 11,506 1.87 2,120,029 16,242 3.08
Cash and due from banks 33,925 27,997
Other assets, less allowance for loan and lease losses 363,371 346,902
Total assets $ 2,879,221 $ 2,494,928
Interest-bearing liabilities
U.S. interest-bearing deposits
Savings $ 67,588 $ 2 0.01 % $ 50,600 $ 1 0.01 %
Demand and money market deposit accounts 889,793 77 0.04 770,474 653 0.34
Consumer CDs and IRAs 38,207 26 0.28 53,363 151 1.14
Negotiable CDs, public funds and other deposits 52,780 23 0.18 67,985 209 1.23
Total U.S. interest-bearing deposits 1,048,368 128 0.05 942,422 1,014 0.43
Non-U.S. interest-bearing deposits
Banks located in non-U.S. countries 1,030 — 0.12 1,904 3 0.60
Governments and official institutions 199 — — 161 — 0.05
Time, savings and other 80,737 5 0.02 75,625 167 0.89
Total non-U.S. interest-bearing deposits 81,966 5 0.02 77,690 170 0.88
Total interest-bearing deposits 1,130,334 133 0.05 1,020,112 1,184 0.47
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities 293,236 (79) (0.11) 304,503 1,120 1.48
Trading account liabilities 42,923 246 2.32 48,142 329 2.75
Long-term debt 220,836 898 1.65 210,816 1,335 2.54
Total interest-bearing liabilities 1,687,329 1,198 0.29 1,583,573 3,968 1.01
Noninterest-bearing sources
Noninterest-bearing deposits 675,413 419,224
Other liabilities (6)
242,432 227,597
Shareholders’ equity 274,047 264,534
Total liabilities and shareholders’ equity $ 2,879,221 $ 2,494,928
Net interest spread 1.58 % 2.07 %
Impact of noninterest-bearing sources 0.10 0.26
Net interest income/yield on earning assets (7)
$ 10,308 1.68 % $ 12,274 2.33 %

~~(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 41.~~

~~(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)Includes non-U.S. consumer loans of $3.0 billion and $2.9 billion for the first quarter of 2021 and 2020.~~

~~(4)Certain prior-period amounts have been reclassified to conform to current-period presentation.~~

~~(5)Includes U.S. commercial real estate loans of $56.6 billion and $59.6 billion, and non-U.S. commercial real estate loans of $3.1 billion and $3.8 billion for the first quarter of 2021 and 2020.~~

~~(6)Includes $31.3 billion and $35.7 billion of structured notes and liabilities for the first quarter of 2021 and 2020.~~

~~(7)Net interest income includes FTE adjustments of $111 million and $144 million for the first quarter of 2021 and 2020.~~


						~~Bank of America~~8

~~Business Segment Operations~~

~~Segment Description and Basis of Presentation~~

~~We report our results of operations through four business segments:~~ ~~Consumer Banking, GWIM, Global Banking~~ ~~and~~ ~~Global Markets, with the remaining operations recorded in~~ ~~All Other. We manage our segments and report their results on an FTE basis. For more information, see Business Segment Operations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.~~

We periodically review capital allocated to our businesses and allocate capital annually during the strategic and capital planning processes. We utilize a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. Our internal risk-based capital models use a risk-adjusted methodology incorporating each segment’s credit, market, interest rate, business and operational risk components. For more information on the nature of these risks, see Managing Risk on page 18. The capital allocated to the business segments is referred to as

allocated capital. Allocated equity in the reporting units is comprised of allocated capital plus capital for the portion of goodwill and intangibles specifically assigned to the reporting unit. For more information, including the definition of a reporting unit, see ~~Note 7 – Goodwill and Intangible Assets~~ ~~to the Consolidated Financial Statements.~~

For more information on our presentation of financial information on an FTE basis, see Supplemental Financial Data on page 6, and for reconciliations to consolidated total revenue, net income and period-end total assets, see ~~Note 17 – Business Segment Information~~ ~~to the Consolidated Financial Statements.~~

Key Performance Indicators

Our consolidated key performance indicators, which include various equity and credit metrics, are presented in Table 1 on page 4 and Table 5 on page 8.

For information on key segment performance metrics, see Business Segment Operations on page 11.


7Bank of America




Table 5	Selected Quarterly Financial Data

		2021 Quarters						2020 Quarters									Six Months Ended June 30
(In millions, except per share information)		Second			First			Fourth			Third			Second			2021			2020
Income statement
Net interest income		$	10,233		$	10,197		$	10,253		$	10,129		$	10,848		$	20,430		$	22,978
Noninterest income		11,233			12,624			9,846			10,207			11,478			23,857			22,115
Total revenue, net of interest expense		21,466			22,821			20,099			20,336			22,326			44,287			45,093
Provision for credit losses		(1,621)			(1,860)			53			1,389			5,117			(3,481)			9,878
Noninterest expense		15,045			15,515			13,927			14,401			13,410			30,560			26,885
Income before income taxes		8,042			9,166			6,119			4,546			3,799			17,208			8,330
Income tax expense		(1,182)			1,116			649			(335)			266			(66)			787
Net income		9,224			8,050			5,470			4,881			3,533			17,274			7,543
Net income applicable to common shareholders		8,964			7,560			5,208			4,440			3,284			16,524			6,825
Average common shares issued and outstanding		8,620.8			8,700.1			8,724.9			8,732.9			8,739.9			8,660.4			8,777.6
Average diluted common shares issued and outstanding		8,735.5			8,755.6			8,785.0			8,777.5			8,768.1			8,776.2			8,813.3
Performance ratios
Return on average assets (1)		1.23		%	1.13		%	0.78		%	0.71		%	0.53		%	1.18		%	0.58		%
Four-quarter trailing return on average assets (2)		0.97			0.79			0.67			0.75			0.81			n/a			n/a
Return on average common shareholders’ equity (1)		14.33			12.28			8.39			7.24			5.44			13.31			5.67
Return on average tangible common shareholders’ equity (3)		19.90			17.08			11.73			10.16			7.63			18.51			7.97
Return on average shareholders’ equity (1)		13.47			11.91			8.03			7.26			5.34			12.70			5.71
Return on average tangible shareholders’ equity (3)		18.11			16.01			10.84			9.84			7.23			17.07			7.76
Total ending equity to total ending assets		9.15			9.23			9.68			9.82			9.69			9.15			9.69
Total average equity to total average assets		9.11			9.52			9.71			9.76			9.85			9.31			10.21
Dividend payout		17.25			20.68			30.11			35.36			47.87			18.82			46.16
Per common share data
Earnings		$	1.04		$	0.87		$	0.60		$	0.51		$	0.38		$	1.91		$	0.78
Diluted earnings		1.03			0.86			0.59			0.51			0.37			1.90			0.77
Dividends paid		0.18			0.18			0.18			0.18			0.18			0.36			0.36
Book value (1)		29.89			29.07			28.72			28.33			27.96			29.89			27.96
Tangible book value (3)		21.61			20.90			20.60			20.23			19.90			21.61			19.90




Market capitalization		$	349,925		$	332,337		$	262,206		$	208,656		$	205,772		$	349,925		$	205,772
Average balance sheet
Total loans and leases		$	907,900		$	907,723		$	934,798		$	974,018		$	1,031,387
Total assets		3,015,113			2,879,221			2,791,874			2,739,684			2,704,186
Total deposits		1,888,834			1,805,747			1,737,139			1,695,488			1,658,197
Long-term debt		232,034			220,836			225,423			224,254			221,167
Common shareholders’ equity		250,948			249,648			246,840			243,896			242,889
Total shareholders’ equity		274,632			274,047			271,020			267,323			266,316
Asset quality
Allowance for credit losses (4)		$	15,782		$	17,997		$	20,680		$	21,506		$	21,091
Nonperforming loans, leases and foreclosed properties (5)		5,031			5,299			5,116			4,730			4,611
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)		1.55		%	1.80		%	2.04		%	2.07		%	1.96		%
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)		287			313			380			431			441
Net charge-offs		$	595		$	823		$	881		$	972		$	1,146
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)		0.27		%	0.37		%	0.38		%	0.40		%	0.45		%







Capital ratios at period end (6)

Common equity tier 1 capital		11.5		%	11.8		%	11.9		%	11.9		%	11.4		%

Tier 1 capital		13.0			13.3			13.5			13.5			12.9
Total capital		15.1			15.6			16.1			16.1			14.8
Tier 1 leverage		6.9			7.2			7.4			7.4			7.4
Supplementary leverage ratio		5.9			7.0			7.2			6.9			7.1
Tangible equity (3)		7.0			7.0			7.4			7.4			7.3
Tangible common equity (3)		6.2			6.2			6.5			6.6			6.5
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets		27.7		%	26.8		%	27.4		%	26.9		%	26.0		%
Total loss-absorbing capacity to supplementary leverage exposure		12.5			14.1			14.5			13.7			14.2
Eligible long-term debt to risk-weighted assets		14.1			13.0			13.3			12.9			12.4
Eligible long-term debt to supplementary leverage exposure		6.3			6.8			7.1			6.6			6.7

(1)For definitions, see Key Metrics on page 101.

(2)Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.

(3)Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and corresponding reconciliations to GAAP financial measures, see Supplemental Financial Data on page 7 and Non-GAAP Reconciliations on page 47.

(4)Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.

(5)Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 34 and corresponding Table 25 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 38 and corresponding Table 32.

(6)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 22.

n/a = not applicable


						Bank of America8



Table 6	Quarterly Average Balances and Interest Rates - FTE Basis

		Average Balance		Interest Income/ Expense (1)		Yield/ Rate		Average Balance		Interest Income/ Expense (1)		Yield/ Rate
(Dollars in millions)		Second Quarter 2021						Second Quarter 2020
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	247,673	$	27	0.04	%	$	314,661	$	33	0.04	%
Time deposits placed and other short-term investments		8,079		—		0.02		8,644		5		0.25
Federal funds sold and securities borrowed or purchased under agreements to resell		270,443		(42)		(0.06)		312,404		26		0.03
Trading account assets		152,307		967		2.55		143,370		1,021		2.86
Debt securities		895,902		2,834		1.27		476,060		2,462		2.10
Loans and leases (2)
Residential mortgage		214,096		1,498		2.80		241,486		1,880		3.11
Home equity		31,621		267		3.39		39,308		308		3.15
Credit card		73,399		1,876		10.25		86,191		2,140		9.99

Direct/Indirect and other consumer (3)		94,321		561		2.38		88,962		623		2.81

Total consumer		413,437		4,202		4.07		455,947		4,951		4.36
U.S. commercial (4)		322,633		2,049		2.55		374,965		2,526		2.71
Non-U.S. commercial (4)		96,343		429		1.78		116,040		578		2.00
Commercial real estate (5)		59,276		371		2.51		65,515		430		2.64
Commercial lease financing		16,211		108		2.67		18,920		128		2.71
Total commercial		494,463		2,957		2.40		575,440		3,662		2.56
Total loans and leases		907,900		7,159		3.16		1,031,387		8,613		3.35
Other earning assets		96,364		552		2.30		72,256		508		2.82
Total earning assets		2,578,668		11,497		1.79		2,358,782		12,668		2.16
Cash and due from banks		31,675						31,256
Other assets, less allowance for loan and lease losses		404,770						314,148
Total assets		$	3,015,113					$	2,704,186
Interest-bearing liabilities
U.S. interest-bearing deposits
Savings		$	72,798	$	1	0.01	%	$	56,931	$	2	0.01	%
Demand and money market deposit accounts		915,420		78		0.03		850,274		152		0.07
Consumer CDs and IRAs		36,181		16		0.17		50,882		123		0.97
Negotiable CDs, public funds and other deposits		53,537		23		0.17		81,532		56		0.29
Total U.S. interest-bearing deposits		1,077,936		118		0.04		1,039,619		333		0.13
Non-U.S. interest-bearing deposits
Banks located in non-U.S. countries		1,191		—		—		1,807		—		0.04
Governments and official institutions		204		—		—		183		—		—
Time, savings and other		80,747		10		0.05		74,158		40		0.21
Total non-U.S. interest-bearing deposits		82,142		10		0.05		76,148		40		0.21
Total interest-bearing deposits		1,160,078		128		0.04		1,115,767		373		0.13
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities		320,314		(85)		(0.11)		295,465		(72)		(0.10)
Trading account liabilities		58,823		293		2.01		40,717		223		2.20
Long-term debt		232,034		818		1.42		221,167		1,168		2.12
Total interest-bearing liabilities		1,771,249		1,154		0.26		1,673,116		1,692		0.41
Noninterest-bearing sources
Noninterest-bearing deposits		728,756						542,430
Other liabilities (6)		240,476						222,324
Shareholders’ equity		274,632						266,316
Total liabilities and shareholders’ equity		$	3,015,113					$	2,704,186
Net interest spread						1.53	%					1.75	%
Impact of noninterest-bearing sources						0.08						0.12
Net interest income/yield on earning assets (7)				$	10,343	1.61	%			$	10,976	1.87	%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 45.

(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)Includes non-U.S. consumer loans of $3.0 billion and $2.8 billion for the second quarter of 2021 and 2020.

(4)Certain prior-period amounts have been reclassified to conform to current-period presentation.

(5)Includes U.S. commercial real estate loans of $56.0 billion and $61.8 billion, and non-U.S. commercial real estate loans of $3.3 billion and $3.7 billion for the second quarter of 2021 and 2020.

(6)Includes $30.5 billion and $35.5 billion of structured notes and liabilities for the second quarter of 2021 and 2020.

(7)Net interest income includes FTE adjustments of $110 million and $128 million for the second quarter of 2021 and 2020.


9Bank of America



Table 7	Year-to-Date Average Balances and Interest Rates - FTE Basis

		Average Balance		Interest Income/ Expense (1)		Yield/ Rate		Average Balance		Interest Income/ Expense (1)		Yield/ Rate
		Six Months Ended June 30
(Dollars in millions)		2021						2020
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	262,802	$	56	0.04	%	$	222,472	$	301	0.27	%
Time deposits placed and other short-term investments		8,409		4		0.10		9,769		35		0.73
Federal funds sold and securities borrowed or purchased under agreements to resell		260,271		(49)		(0.04)		295,599		845		0.57
Trading account assets		148,718		1,852		2.51		150,028		2,287		3.06
Debt securities		842,566		5,579		1.33		470,638		5,330		2.29
Loans and leases (2)
Residential mortgage		216,537		3,027		2.80		240,740		3,867		3.21
Home equity		32,622		548		3.39		39,674		729		3.69
Credit card		73,780		3,823		10.45		90,331		4,604		10.25

Direct/Indirect and other consumer (3)		92,883		1,120		2.43		89,958		1,369		3.06

Total consumer		415,822		8,518		4.12		460,703		10,569		4.60
U.S. commercial (4)		322,323		4,100		2.56		352,692		5,436		3.10
Non-U.S. commercial (4)		93,639		838		1.80		113,714		1,316		2.33
Commercial real estate (5)		59,505		736		2.49		64,467		1,013		3.16
Commercial lease financing		16,523		240		2.91		19,259		289		3.00
Total commercial		491,990		5,914		2.42		550,132		8,054		2.94
Total loans and leases		907,812		14,432		3.20		1,010,835		18,623		3.70
Other earning assets		99,985		1,129		2.28		80,065		1,489		3.74
Total earning assets		2,530,563		23,003		1.83		2,239,406		28,910		2.59
Cash and due from banks		32,794						29,626
Other assets, less allowance for loan and lease losses		384,185						330,525
Total assets		$	2,947,542					$	2,599,557
Interest-bearing liabilities
U.S. interest-bearing deposits
Savings		$	70,207	$	3	0.01	%	$	53,765	$	3	0.01	%
Demand and money market deposit accounts		902,677		155		0.03		810,374		805		0.20
Consumer CDs and IRAs		37,188		42		0.23		52,123		274		1.06
Negotiable CDs, public funds and other deposits		53,162		46		0.18		74,759		265		0.72
Total U.S. interest-bearing deposits		1,063,234		246		0.05		991,021		1,347		0.27
Non-U.S. interest-bearing deposits
Banks located in non-U.S. countries		1,111		—		0.06		1,855		3		0.33
Governments and official institutions		201		—		—		172		—		0.02
Time, savings and other		80,742		15		0.04		74,891		207		0.55
Total non-U.S. interest-bearing deposits		82,054		15		0.04		76,918		210		0.55
Total interest-bearing deposits		1,145,288		261		0.05		1,067,939		1,557		0.29
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities		306,850		(164)		(0.11)		299,984		1,048		0.70
Trading account liabilities		50,917		539		2.14		44,430		552		2.50
Long-term debt		226,466		1,716		1.53		215,992		2,503		2.33
Total interest-bearing liabilities		1,729,521		2,352		0.27		1,628,345		5,660		0.70
Noninterest-bearing sources
Noninterest-bearing deposits		702,232						480,827
Other liabilities (6)		241,448						224,960
Shareholders’ equity		274,341						265,425
Total liabilities and shareholders’ equity		$	2,947,542					$	2,599,557
Net interest spread						1.56	%					1.89	%
Impact of noninterest-bearing sources						0.08						0.20
Net interest income/yield on earning assets (7)				$	20,651	1.64	%			$	23,250	2.09	%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 45.

(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)Includes non-U.S. consumer loans of $3.0 billion and $2.9 billion for the six months ended June 30, 2021 and 2020.

(4)Certain prior-period amounts have been reclassified to conform to current-period presentation.

(5)Includes U.S. commercial real estate loans of $56.3 billion and $60.7 billion, and non-U.S. commercial real estate loans of $3.2 billion and $3.7 billion for the six months ended June 30, 2021 and 2020.

(6)Includes $30.9 billion and $35.6 billion of structured notes and liabilities for the six months ended June 30, 2021 and 2020.

(7)Net interest income includes FTE adjustments of $221 million and $272 million for the six months ended June 30, 2021 and 2020.


						Bank of America10

Business Segment Operations

Segment Description and Basis of Presentation

We report our results of operations through four business segments: Consumer Banking, GWIM, Global Banking and Global Markets, with the remaining operations recorded in All Other. We manage our segments and report their results on an FTE basis. For more information, see Business Segment Operations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

We periodically review capital allocated to our businesses and allocate capital annually during the strategic and capital planning processes. We utilize a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. Our internal risk-based capital models use a risk-adjusted methodology incorporating each segment’s credit, market, interest rate, business and operational risk components. For more information on the nature of these risks, see Managing Risk on page 22. The capital allocated to the business segments is referred to as

allocated capital. Allocated equity in the reporting units is comprised of allocated capital plus capital for the portion of goodwill and intangibles specifically assigned to the reporting unit. For more information, including the definition of a reporting unit, see Complex Accounting Estimates on page 46 and Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements.

For more information on our presentation of financial information on an FTE basis, see Supplemental Financial Data on page 7, and for reconciliations to consolidated total revenue, net income and period-end total assets, see Note 17 – Business Segment Information to the Consolidated Financial Statements.

Key Performance Indicators

We present certain key financial and nonfinancial performance indicators that management uses when evaluating segment results. We believe they are useful to investors because they provide additional information about our segments’ operational performance, customer trends and business growth.

Consumer Banking


		Deposits						Consumer Lending						Total Consumer Banking									Deposits						Consumer Lending						Total Consumer Banking
		Three Months Ended March 31																					Three Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021			2020			2021			2020			2021			2020			% Change		(Dollars in millions)	2021			2020			2021			2020			2021			2020			% Change
Net interest income	Net interest income	$	3,278		$	3,948		$	2,642		$	2,914		$	5,920		$	6,862		(14)	%	Net interest income	$	3,480		$	3,299		$	2,493		$	2,692		$	5,973		$	5,991		—	%
Noninterest income:	Noninterest income:																					Noninterest income:
Card income	Card income	(5)			(8)			1,194			1,118			1,189			1,110			7		Card income	(7)			(4)			1,319			1,057			1,312			1,053			25
Service charges	Service charges	830			995			1			—			831			995			(16)		Service charges	851			706			—			—			851			706			21
All other income	All other income	73			97			56			65			129			162			(20)		All other income	21			62			29			40			50			102			(51)
Total noninterest income	Total noninterest income	898			1,084			1,251			1,183			2,149			2,267			(5)		Total noninterest income	865			764			1,348			1,097			2,213			1,861			19
Total revenue, net of interest expense	Total revenue, net of interest expense	4,176			5,032			3,893			4,097			8,069			9,129			(12)		Total revenue, net of interest expense	4,345			4,063			3,841			3,789			8,186			7,852			4

Provision for credit losses	Provision for credit losses	74			115			(691)			2,143			(617)			2,258			(127)		Provision for credit losses	47			154			(744)			2,870			(697)			3,024			(123)
Noninterest expense	Noninterest expense	3,209			2,725			1,922			1,771			5,131			4,496			14		Noninterest expense	2,856			2,869			2,003			1,866			4,859			4,735			3
Income before income taxes		893			2,192			2,662			183			3,555			2,375			50
Income tax expense		219			537			652			45			871			582			50
Net income		$	674		$	1,655		$	2,010		$	138		$	2,684		$	1,793		50
Income (loss) before income taxes																						Income (loss) before income taxes	1,442			1,040			2,582			(947)			4,024			93			n/m
Income tax expense (benefit)																						Income tax expense (benefit)	353			255			633			(232)			986			23			n/m
Net income (loss)																						Net income (loss)	$	1,089		$	785		$	1,949		$	(715)		$	3,038		$	70		n/m

Effective tax rate (1)	Effective tax rate (1)													24.5		%	24.5		%			Effective tax rate (1)													24.5		%	24.7		%

Net interest yield	Net interest yield	1.46		%	2.17		%	3.74		%	3.76		%	2.51			3.57					Net interest yield	1.44		%	1.66		%	3.60		%	3.42		%	2.37			2.85
Return on average allocated capital	Return on average allocated capital	23			55			31			2			28			19					Return on average allocated capital	36			26			30			(11)			32			1
Efficiency ratio	Efficiency ratio	76.87			54.14			49.34			43.23			63.59			49.24					Efficiency ratio	65.73			70.62			52.16			49.25			59.36			60.31

Balance Sheet	Balance Sheet																					Balance Sheet
		Three Months Ended March 31																					Three Months Ended June 30
Average	Average	2021			2020			2021			2020			2021			2020			% Change		Average	2021			2020			2021			2020			2021			2020			% Change

Total loans and leases	Total loans and leases	$	4,607		$	5,435		$	286,284		$	311,511		$	290,891		$	316,946		(8)	%	Total loans and leases	$	4,447		$	5,314		$	277,320		$	316,244		$	281,767		$	321,558		(12)	%
Total earning assets (2)	Total earning assets (2)	912,135			731,928			286,720			312,127			957,112			773,635			24		Total earning assets (2)	968,491			801,391			277,742			316,622			1,012,364			845,236			20
Total assets (2)	Total assets (2)	950,803			764,117			290,709			317,580			999,769			811,277			23		Total assets (2)	1,005,237			837,367			283,148			320,978			1,054,516			885,568			19
Total deposits	Total deposits	917,319			731,277			6,818			5,392			924,137			736,669			25		Total deposits	972,016			804,418			7,056			6,282			979,072			810,700			21
Allocated capital	Allocated capital	12,000			12,000			26,500			26,500			38,500			38,500			—		Allocated capital	12,000			12,000			26,500			26,500			38,500			38,500			—

Period end		March 31 2021			December 31 2020			March 31 2021			December 31 2020			March 31 2021			December 31 2020			% Change
Total loans and leases		$	4,490		$	4,673		$	278,445		$	295,261		$	282,935		$	299,934		(6)	%
Total earning assets (2)		960,132			899,951			278,984			295,627			1,004,896			945,343			6
Total assets (2)		997,601			939,629			284,032			299,185			1,047,413			988,580			6
Total deposits		964,406			906,092			7,303			6,560			971,709			912,652			6

(1)Estimated at the segment level only.

(2)In segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets from All Other to match the segments’ and businesses’ liabilities and allocated shareholders’ equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Banking.

n/m - not meaningful


911 Bank of America



	Deposits						Consumer Lending						Total Consumer Banking
	Six Months Ended June 30
(Dollars in millions)	2021			2020			2021			2020			2021			2020			% Change
Net interest income	$	6,758		$	7,247		$	5,135		$	5,606		$	11,893		$	12,853		(7)	%
Noninterest income:
Card income	(12)			(12)			2,513			2,175			2,501			2,163			16
Service charges	1,681			1,700			1			1			1,682			1,701			(1)
All other income	94			159			85			104			179			263			(32)
Total noninterest income	1,763			1,847			2,599			2,280			4,362			4,127			6
Total revenue, net of interest expense	8,521			9,094			7,734			7,886			16,255			16,980			(4)

Provision for credit losses	121			269			(1,435)			5,013			(1,314)			5,282			(125)
Noninterest expense	6,065			5,593			3,925			3,637			9,990			9,230			8
Income (loss) before income taxes	2,335			3,232			5,244			(764)			7,579			2,468			n/m
Income tax expense (benefit)	572			792			1,285			(187)			1,857			605			n/m
Net income (loss)	$	1,763		$	2,440		$	3,959		$	(577)		$	5,722		$	1,863		n/m

Effective tax rate (1)													24.5		%	24.5		%

Net interest yield	1.45		%	1.90		%	3.67		%	3.59		%	2.44			3.19
Return on average allocated capital	30			41			30			(4)			30			10
Efficiency ratio	71.19			61.50			50.74			46.12			61.46			54.36

Balance Sheet
	Six Months Ended June 30
Average	2021			2020			2021			2020			2021			2020			% Change


Total loans and leases	$	4,527		$	5,374		$	281,777		$	313,878		$	286,304		$	319,252		(10)	%
Total earning assets (2)	940,469			766,660			282,206			314,375			984,891			809,436			22
Total assets (2)	978,170			800,742			286,908			319,279			1,027,294			848,422			21
Total deposits	944,819			767,848			6,938			5,837			951,757			773,685			23
Allocated capital	12,000			12,000			26,500			26,500			38,500			38,500			—


Period end	June 30 2021			December 31 2020			June 30 2021			December 31 2020			June 30 2021			December 31 2020			% Change
Total loans and leases	$	4,410		$	4,673		$	278,490		$	295,261		$	282,900		$	299,934		(6)	%
Total earning assets (2)	978,402			899,951			278,850			295,627			1,022,092			945,343			8
Total assets (2)	1,013,887			939,629			284,923			299,185			1,063,650			988,580			8
Total deposits	980,486			906,092			7,169			6,560			987,655			912,652			8

See page 11 for footnotes.

Consumer Banking, comprised of Deposits and Consumer Lending, offers a diversified range of credit, banking and investment products and services to consumers and small businesses. For more information about Consumer Banking, see Business Segment Operations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Consumer Banking Results

Three-Month Comparison

Net income for Consumer Banking ~~increased $891~~was $3.0 billion compared to $70 million ~~to $2.7 billion during the three months ended March 31, 2021 compared to~~for the same period in ~~2020~~2020. The increase in net income was primarily due to an improvement in the provision for credit losses and higher revenue, partially offset by ~~lower revenue and~~ higher noninterest expense. ~~Net interest~~Noninterest income ~~decreased $942~~increased $352 million to ~~$5.9 billion primarily due to lower interest rates and loan balances, partially offset by the benefit of higher deposit balances. Noninterest income decreased $118 million to $2.1~~$2.2 billion driven by ~~a decline in~~higher card income due to increased client activity and higher service charges, ~~primarily due to higher deposit balances and~~partially offset by lower other income due to the allocation of asset and liability management (ALM) ~~results, partially offset by higher card income due to increased client activity.~~results.

The provision for credit losses improved ~~$2.9~~$3.7 billion to a benefit of ~~$617~~$697 million primarily due to a reserve release, as the macroeconomic outlook improved and our credit quality remained strong. Noninterest expense increased ~~$635~~$124 million to ~~$5.1~~$4.9 billion primarily driven by ~~an impairment charge~~the contribution to the Bank of ~~$240 million for real estate rationalization, incremental expense to support customers and employees during the pandemic, the~~America Foundation, cost of increased client activity and continued investments for business growth, including the merchant services ~~platform.~~platform, partially offset by lower COVID-19 related costs to support customers and employees.

The return on average allocated capital was 2832 percent, up from 19one percent, driven by higher net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 9.11.

Six-Month Comparison

~~Deposits~~

Net income for ~~Deposits decreased $1.0~~Consumer Banking increased $3.9 billion to ~~$674 million~~$5.7 billion primarily ~~driven~~due to improvement in the provision for credit losses, partially offset by lower revenue and higher noninterest expense. Net interest income ~~declined $670~~decreased $960 million to ~~$3.3~~$11.9 billion primarily due to lower interest rates and loan balances, partially offset by the benefit of ~~growth in deposits.~~higher deposit balances. Noninterest income ~~decreased $186~~increased $235 million to ~~$898~~$4.4 billion driven by higher card income due to increased client activity, partially offset by lower other income due to the allocation of ALM results.

The provision for credit losses improved $6.6 billion to a benefit of $1.3 billion primarily driven by the same factors as described in the three-month discussion. Noninterest expense increased $760 million to $10.0 billion primarily driven by an impairment charge of $240 million for real estate rationalization, the contribution to the Bank of America Foundation, cost of increased client activity and continued investments for business growth, including the merchant services platform, partially offset by lower COVID-19 related costs to support customers and employees.

The return on average allocated capital was 30 percent, up from 10 percent, driven by higher net income.


						Bank of America12

Deposits

Three-Month Comparison

Net income for Deposits increased $304 million to $1.1 billion primarily driven by higher revenue. Net interest income increased $181 million to $3.5 billion primarily due to the benefit of higher deposit balances. Noninterest income increased $101 million to $865 million primarily driven by ~~lower~~higher service charges, ~~due to higher deposit balances, as well as lower~~partially offset by other income due to the allocation of ALM results.

The provision for credit losses decreased ~~$41~~$107 million to ~~$74~~$47 million due to an improved macroeconomic outlook.

Average deposits increased $167.6 billion to $972.0 billion primarily due to net inflows of $94.4 billion in checking and time deposits and $72.1 billion in traditional savings and money market savings driven by strong organic growth and additional government stimulus measures.

Six-Month Comparison

Net income for Deposits decreased $677 million to $1.8 billion primarily driven by lower revenue and higher noninterest expense. Net interest income declined $489 million to $6.8 billion primarily due to lower interest rates, partially offset by the

benefit of growth in deposits. Noninterest income decreased $84 million to $1.8 billion primarily driven by lower other income due to the allocation of ALM results, as well as lower service charges due to higher deposit balances.

The provision for credit losses decreased $148 million to $121 million due to an improved macroeconomic outlook. Noninterest expense increased ~~$484~~$472 million to ~~$3.2~~$6.1 billion primarily driven by an impairment charge for real estate rationalization, and the cost of increased client activity and continued investments ~~in the~~for business ~~and incremental expense~~growth, partially offset by lower COVID-19 related costs to support customers and ~~employees during the pandemic.~~employees.

Average deposits increased ~~$186.0~~$177.0 billion to ~~$917.3~~$944.8 billion primarily due to net inflows of $103.4 billion in checking and time deposits and $72.7 billion in traditional savings and money market savings driven by strong organic growth and additional government stimulus ~~measures of $112.1 billion in checking and time deposits and $73.1 billion in traditional savings and money market savings.~~measures.

The table below provides key performance indicators for Deposits. Management uses these metrics, and we believe they are useful to investors because they provide additional information to evaluate our deposit profitability and digital/mobile trends.


Key Statistics – Deposits	Key Statistics – Deposits							Key Statistics – Deposits

		Three Months Ended March 31			Three Months Ended June 30					Six Months Ended June 30
			2021			2020			2021	2020	2021		2020
Total deposit spreads (excludes noninterest costs) (1)	Total deposit spreads (excludes noninterest costs) (1)		1.73%			2.17%		Total deposit spreads (excludes noninterest costs) (1)	1.71%	1.94%	1.72%		2.05%

Period End	Period End							Period End
Consumer investment assets (in millions) (2)	Consumer investment assets (in millions) (2)		$	324,479		$	212,227	Consumer investment assets (in millions) (2)			$	345,809	$	246,146
Active digital banking users (units in thousands) (3)	Active digital banking users (units in thousands) (3)		40,286			39,075		Active digital banking users (units in thousands) (3)			40,512		39,294
Active mobile banking users (units in thousands) (4)	Active mobile banking users (units in thousands) (4)		31,487			29,820		Active mobile banking users (units in thousands) (4)			31,796		30,307
Financial centers	Financial centers		4,324			4,297		Financial centers			4,296		4,298
ATMs	ATMs		16,905			16,855		ATMs			16,795		16,862

(1)Includes deposits held in Consumer Lending.

(2)Includes client brokerage assets, deposit sweep balances and AUM in Consumer Banking.

(3)Active digital banking users represents mobile and/or online active users ~~at period end.~~over the past three months.

(4)Active mobile banking users represents mobile active users ~~at period end.~~over the past three months.


						~~Bank of America~~10

Consumer investment assets increased ~~$112.3~~$99.7 billion to ~~$324.5~~$345.8 billion driven by market performance and client flows. Active mobile banking users increased approximately ~~two~~one million reflecting continuing changes in our customers’ banking preferences. We had a net ~~increase~~decrease of 27two financial centers as we continue to optimize our consumer banking network.

Consumer Lending

Three-Month Comparison

Net income for Consumer Lending was ~~$2.0~~$1.9 billion, an increase of ~~$1.9~~$2.7 billion, primarily due to improvement in the provision for credit losses. Net interest income ~~declined $272~~decreased $199 million to ~~$2.6~~$2.5 billion primarily due to lower ~~interest rates and~~ loan balances. Noninterest income increased ~~$68~~$251 million to $1.3 billion primarily driven by higher card income due to increased client activity.

The provision for credit losses improved ~~$2.8~~$3.6 billion to a benefit of ~~$691~~$744 million primarily due to a reserve release, as the macroeconomic outlook improved and our credit quality remained strong. Noninterest expense increased ~~$151~~$137 million to ~~$1.9~~$2.0 billion primarily driven by investments in the ~~business and incremental expense to support customers and employees during the pandemic.~~business.

Average loans decreased ~~$25.2~~$38.9 billion to ~~$286.3~~$277.3 billion primarily driven by a decline in ~~credit cards~~residential mortgage and ~~residential mortgage. In addition, the prior-year period excluded PPP loans, which we began originating~~credit

cards.

Six-Month Comparison

Net income for Consumer Lending was $4.0 billion, an increase of $4.5 billion, primarily due to improvement in the ~~second quarter~~provision for credit losses. Net interest income declined $471 million to $5.1 billion primarily due to lower interest rates and loan balances. Noninterest income increased $319 million to $2.6 billion primarily driven by higher card income due to increased client activity.

The provision for credit losses improved $6.4 billion to a benefit of ~~2020.~~$1.4 billion primarily driven by the same factors as described in the three-month discussion. Noninterest expense increased $288 million to $3.9 billion primarily driven by the same factors as described in the three-month discussion.

Average loans decreased $32.1 billion to $281.8 billion primarily driven by the same factors as described in the three-month discussion.


13Bank of America

The table below provides key performance indicators for Consumer Lending. Management uses these metrics, and we believe they are useful to investors because they provide additional information about loan growth and profitability.


Key Statistics – Consumer Lending	Key Statistics – Consumer Lending		Key Statistics – Consumer Lending

		Three Months Ended March 31					Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)			2021				2020			(Dollars in millions)	2021			2020			2021			2020
Total credit card (1)	Total credit card (1)										Total credit card (1)
Gross interest yield (2)	Gross interest yield (2)			10.52		%		10.49		%	Gross interest yield (2)	10.10		%	9.95		%	10.31		%	10.23		%
Risk-adjusted margin (3)	Risk-adjusted margin (3)			9.29				7.94			Risk-adjusted margin (3)	9.76			8.49			9.53			8.20
New accounts (in thousands)	New accounts (in thousands)			674				1,055			New accounts (in thousands)	931			449			1,605			1,504
Purchase volumes	Purchase volumes			$	64,591			$	64,379		Purchase volumes	$	78,384		$	53,694		$	142,975		$	118,073
Debit card purchase volumes	Debit card purchase volumes			$	107,907			$	88,588		Debit card purchase volumes	$	121,905		$	89,631		$	229,812		$	178,219

(1)Includes GWIM's credit card portfolio.

(2)Calculated as the effective annual percentage rate divided by average loans.

(3)Calculated as the difference between total revenue, net of interest expense, and net credit losses divided by average loans.

During the three and six months ended ~~March 31,~~June 30, 2021, the total risk-adjusted margin increased ~~135~~127 bps ~~compared to the same period in 2020,~~and 133 bps primarily driven by higher net interest margin, higher fee income and ~~fee income. Total~~lower net credit losses. During the three and six months ended June 30, 2021, total credit card purchase volumes increased ~~$212 million~~$24.7 billion to ~~$64.6~~$78.4 billion, and $24.9 billion to $143.0 billion as spending ~~began~~continued to recover, with

improvements across categories with growth primarily in retail ~~warehouse~~ and ~~services, while travel remained suppressed. Debit~~travel. During the three and six months ended June 30, 2021, debit card purchase volumes increased ~~$19.3~~$32.3 billion to ~~$107.9~~$121.9 billion, and $51.6 billion to $229.8 billion due to the impacts of government stimulus measures, tax refunds and continued retail growth from the pandemic recovery.


Key Statistics – Residential Mortgage Loan Production (1)	Key Statistics – Residential Mortgage Loan Production (1)		Key Statistics – Residential Mortgage Loan Production (1)

		Three Months Ended March 31				Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)			2021			2020		(Dollars in millions)	2021		2020		2021		2020
Consumer Banking:	Consumer Banking:								Consumer Banking:
First mortgage	First mortgage			$	9,182		$	12,881	First mortgage	$	11,502	$	15,049	$	20,684	$	27,930
Home equity	Home equity			410			2,641		Home equity	907		3,176		1,317		5,817
Total (2):	Total (2):								Total (2):
First mortgage	First mortgage			$	15,233		$	18,938	First mortgage	$	20,266	$	23,124	$	35,499	$	42,062
Home equity	Home equity			503			3,024		Home equity	1,166		3,683		1,669		6,707

(1)The loan production amounts represent the unpaid principal balance of loans and, in the case of home equity, the principal amount of the total line of credit.

(2)In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.

First mortgage loan originations for ~~both~~ Consumer Banking and the total Corporation decreased ~~$3.7~~$3.5 billion and $2.9 billion during the three months ended ~~March 31,~~June 30, 2021 ~~compared to~~and $7.2 billion and $6.6 billion during the ~~same period in 2020~~six months ended June 30, 2021, primarily driven by lower demand.

Home equity production in Consumer Banking and for the total Corporation decreased ~~$2.2~~$2.3 billion and $2.5 billion ~~primarily~~during the three months ended June 30, 2021 and $4.5 billion and $5.0 billion during the six months ended June 30, 2021, driven by ~~a decline in originations.~~lower demand.


11~~Bank of America~~


						Bank of America14

Global Wealth & Investment Management


		Three Months Ended March 31								Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021			2020			% Change		(Dollars in millions)	2021			2020			% Change		2021			2020			% Change
Net interest income	Net interest income		$	1,331		$	1,571		(15)	%	Net interest income	$	1,354		$	1,378		(2)	%	$	2,685		$	2,949		(9)	%
Noninterest income:	Noninterest income:										Noninterest income:
Investment and brokerage services	Investment and brokerage services		3,391			3,122			9		Investment and brokerage services	3,537			2,854			24		6,928			5,976			16
All other income	All other income		249			243			2		All other income	174			193			(10)		423			436			(3)
Total noninterest income	Total noninterest income		3,640			3,365			8		Total noninterest income	3,711			3,047			22		7,351			6,412			15
Total revenue, net of interest expense	Total revenue, net of interest expense		4,971			4,936			1		Total revenue, net of interest expense	5,065			4,425			14		10,036			9,361			7

Provision for credit losses	Provision for credit losses		(65)			189			(134)		Provision for credit losses	(62)			136			(146)		(127)			325			(139)
Noninterest expense	Noninterest expense		3,869			3,606			7		Noninterest expense	3,814			3,464			10		7,682			7,064			9
Income before income taxes	Income before income taxes		1,167			1,141			2		Income before income taxes	1,313			825			59		2,481			1,972			26
Income tax expense	Income tax expense		286			280			2		Income tax expense	322			202			59		608			483			26
Net income	Net income		$	881		$	861		2		Net income	$	991		$	623		59		$	1,873		$	1,489		26

Effective tax rate	Effective tax rate		24.5		%	24.5		%			Effective tax rate	24.5		%	24.5		%			24.5		%	24.5		%

Net interest yield	Net interest yield		1.50			2.17					Net interest yield	1.48			1.76					1.49			1.96
Return on average allocated capital	Return on average allocated capital		22			23					Return on average allocated capital	24			17					23			20

Efficiency ratio	Efficiency ratio		77.85			73.06					Efficiency ratio	75.29			78.26					76.54			75.46

Balance Sheet	Balance Sheet										Balance Sheet

		Three Months Ended March 31								Three Months Ended June 30								Six Months Ended June 30
Average	Average		2021			2020			% Change		Average	2021			2020			% Change		2021			2020			% Change
Total loans and leases	Total loans and leases		$	188,495		$	178,639		6	%	Total loans and leases	$	193,988		$	182,150		6	%	$	191,257		$	180,395		6	%
Total earning assets	Total earning assets		360,099			290,919			24		Total earning assets	367,778			315,258			17		363,960			303,089			20
Total assets	Total assets		372,594			303,173			23		Total assets	380,315			327,594			16		376,476			315,383			19
Total deposits	Total deposits		326,370			263,411			24		Total deposits	333,487			287,109			16		329,948			275,260			20
Allocated capital	Allocated capital		16,500			15,000			10		Allocated capital	16,500			15,000			10		16,500			15,000			10

			March 31			December 31														June 30			December 31
Period end	Period end		2021			2020			% Change		Period end									2021			2020			% Change
Total loans and leases	Total loans and leases		$	190,060		$	188,562		1	%	Total loans and leases									$	198,361		$	188,562		5	%
Total earning assets	Total earning assets		365,854			356,874			3		Total earning assets									365,496			356,873			2
Total assets	Total assets		378,655			369,738			2		Total assets									378,220			369,736			2
Total deposits	Total deposits		333,254			322,157			3		Total deposits									330,624			322,157			3

GWIM consists of two primary businesses: Merrill Lynch Global Wealth Management (MLGWM) and Bank of America Private Bank. For more information about GWIM, see Business Segment Operations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Three-Month Comparison

Net income for GWIM ~~of $881~~increased $368 million ~~remained relatively unchanged for the three months ended March 31, 2021 compared~~ to ~~the same period in 2020, as~~$991 million primarily driven by higher ~~noninterest income~~revenue and improvement in the provision for credit losses, ~~were largely~~partially offset by higher noninterest ~~expense and lower net interest income.~~expense. The operating margin ~~remained relatively unchanged at 23~~was 26 percent compared to 19 percent a year ago.

Net interest income decreased ~~$240~~$24 million to ~~$1.3~~$1.4 billion due to ~~the impact of~~ lower interest rates, partially offset by the benefit of strong deposit and loan growth.

Noninterest income, which primarily includes investment and brokerage services income, increased ~~$275~~$664 million to ~~$3.6~~$3.7 billion primarily due to higher market valuations and positive AUM flows, partially offset by declines in AUM pricing.

The provision for credit losses improved ~~$254~~$198 million to a benefit of ~~$65~~$62 million primarily due to an improved macroeconomic outlook. Noninterest expense increased ~~$263~~$350 million to ~~$3.9~~$3.8 billion primarily driven by higher revenue-related ~~incentives and investments in primary sales professionals.~~incentives.

The return on average allocated capital was 2224 percent, ~~down~~up from 17 percent, due to an increase in net income, partially offset by an increase in allocated capital. For more information

on capital allocated to the business segments, see Business Segment Operations on page 11.

Average loans increased $11.8 billion to $194.0 billion primarily driven by securities-based lending and custom lending. Average deposits increased $46.4 billion to $333.5 billion primarily driven by inflows from new accounts and client responses to market volatility.

MLGWM revenue of $4.3 billion increased 18 percent primarily driven by the benefits of higher market valuations and positive AUM flows.

Bank of America Private Bank revenue of $805 million increased one percent primarily driven by the benefits of higher market valuations and AUM flows, partially offset by the realignment of certain business results to MLGWM.

Six-Month Comparison

Net income for GWIM increased $384 million to $1.9 billion due to the same factors as described in the three-month discussion. The operating margin was 25 percent compared to 21 percent a year ago.

Net interest income decreased $264 million to $2.7 billion due to the same factors as described in the three-month discussion.

Noninterest income, which primarily includes investment and brokerage services income, increased $939 million to $7.4 billion due to the same factors as described in the three-month discussion.


15Bank of America

The provision for credit losses improved $452 million to a benefit of $127 million primarily due to an improved macroeconomic outlook. Noninterest expense increased $618 million to $7.7 billion, primarily due to the same factor as described in the three-month discussion.

The return on average allocated capital was 23 percent, up from 20 percent, due to higher net income, partially offset by an increase in allocated capital.

Average loans increased ~~$9.9~~$10.9 billion to ~~$188.5~~$191.3 billion primarily ~~driven by securities-based lending, custom lending and residential mortgage.~~due to the same factors as described in the three-month discussion. Average deposits increased ~~$63.0~~$54.7 billion to ~~$326.4~~

$329.9 billion primarily ~~driven by inflows resulting from client responses~~due to ~~market volatility and lower spending.~~the same factors as described in the three-month discussion.

MLGWM revenue of ~~$4.2~~$8.4 billion increased ~~three~~10 percent primarily driven by ~~the benefits of~~ higher market valuations and positive AUM flows, partially offset by the impact of lower interest rates.

Bank of America Private Bank revenue of ~~$786 million~~$1.6 billion decreased ~~nine~~four percent primarily driven by the realignment of certain business results to MLGWM and ~~the impact of~~ lower interest rates, partially offset by the benefits of higher market valuations and AUM flows.


						~~Bank of America~~12


Key Indicators and Metrics	Key Indicators and Metrics							Key Indicators and Metrics

		Three Months Ended March 31			Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021			2020		(Dollars in millions)	2021		2020		2021		2020
Revenue by Business	Revenue by Business							Revenue by Business
Merrill Lynch Global Wealth Management	Merrill Lynch Global Wealth Management		$	4,185		$	4,073	Merrill Lynch Global Wealth Management	$	4,260	$	3,625	$	8,445	$	7,698
Bank of America Private Bank	Bank of America Private Bank		786			863		Bank of America Private Bank	805		800		1,591		1,663

Total revenue, net of interest expense	Total revenue, net of interest expense		$	4,971		$	4,936	Total revenue, net of interest expense	$	5,065	$	4,425	$	10,036	$	9,361

Client Balances by Business, at period end	Client Balances by Business, at period end							Client Balances by Business, at period end
Merrill Lynch Global Wealth Management	Merrill Lynch Global Wealth Management		$	2,922,770		$	2,215,531	Merrill Lynch Global Wealth Management					$	3,073,252	$	2,449,305
Bank of America Private Bank	Bank of America Private Bank		557,569			443,080		Bank of America Private Bank					579,562		478,521

Total client balances	Total client balances		$	3,480,339		$	2,658,611	Total client balances					$	3,652,814	$	2,927,826

Client Balances by Type, at period end	Client Balances by Type, at period end							Client Balances by Type, at period end

Assets under management	Assets under management		$	1,467,487		$	1,092,482	Assets under management					$	1,549,069	$	1,219,748
Brokerage and other assets	Brokerage and other assets		1,535,424			1,155,461		Brokerage and other assets					1,619,246		1,282,044

Deposits	Deposits		333,254			282,395		Deposits					330,624		291,740
Loans and leases (1)	Loans and leases (1)		192,725			184,011		Loans and leases (1)					201,154		187,004
Less: Managed deposits in assets under management	Less: Managed deposits in assets under management		(48,551)			(55,738)		Less: Managed deposits in assets under management					(47,279)		(52,710)
Total client balances	Total client balances		$	3,480,339		$	2,658,611	Total client balances					$	3,652,814	$	2,927,826

Assets Under Management Rollforward	Assets Under Management Rollforward							Assets Under Management Rollforward
Assets under management, beginning of period	Assets under management, beginning of period		$	1,408,465		$	1,275,555	Assets under management, beginning of period	$	1,467,487	$	1,092,482	$	1,408,465	$	1,275,555

Net client flows	Net client flows		18,208			7,035		Net client flows	11,714		3,573		29,922		10,608
Market valuation/other	Market valuation/other		40,814			(190,108)		Market valuation/other	69,868		123,693		110,682		(66,415)
Total assets under management, end of period	Total assets under management, end of period		$	1,467,487		$	1,092,482	Total assets under management, end of period	$	1,549,069	$	1,219,748	$	1,549,069	$	1,219,748

Total wealth advisors, at period end (2)	Total wealth advisors, at period end (2)		19,808			20,393		Total wealth advisors, at period end (2)					19,385		20,622

(1)Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.

(2)Includes advisors across all wealth management businesses in GWIM and Consumer Banking. Prior period has been revised to conform to current-period presentation.

Client Balances

Client balances increased ~~$821.7~~$725.0 billion, or 3125 percent, to ~~$3.5~~$3.7 trillion at ~~March 31,~~June 30, 2021 compared to ~~March 31,~~June 30, 2020. The increase in client balances was primarily due to higher market valuations and positive client flows.


13~~Bank of America~~


						Bank of America16

Global Banking


		Three Months Ended March 31								Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021			2020			% Change			(Dollars in millions)	2021			2020			% Change		2021			2020			% Change
Net interest income	Net interest income	$	1,980		$	2,612		(24	%)		Net interest income	$	1,984		$	2,363		(16)	%	$	3,964		$	4,975		(20)	%
Noninterest income:	Noninterest income:										Noninterest income:
Service charges	Service charges	847			796			6			Service charges	900			738			22		1,747			1,533			14
Investment banking fees	Investment banking fees	1,172			761			54			Investment banking fees	1,173			1,181			(1)		2,345			1,942			21
All other income	All other income	634			431			47			All other income	1,032			809			28		1,666			1,241			34
Total noninterest income	Total noninterest income	2,653			1,988			33			Total noninterest income	3,105			2,728			14		5,758			4,716			22
Total revenue, net of interest expense	Total revenue, net of interest expense	4,633			4,600			1			Total revenue, net of interest expense	5,089			5,091			—		9,722			9,691			—

Provision for credit losses	Provision for credit losses	(1,126)			2,093			n/m			Provision for credit losses	(831)			1,873			(144)		(1,957)			3,966			(149)
Noninterest expense	Noninterest expense	2,781			2,318			20			Noninterest expense	2,599			2,222			17		5,380			4,540			19
Income before income taxes	Income before income taxes	2,978			189			n/m			Income before income taxes	3,321			996			n/m		6,299			1,185			n/m
Income tax expense	Income tax expense	804			51			n/m			Income tax expense	897			269			n/m		1,701			320			n/m
Net income	Net income	$	2,174		$	138		n/m			Net income	$	2,424		$	727		n/m		$	4,598		$	865		n/m

Effective tax rate	Effective tax rate	27.0		%	27.0		%				Effective tax rate	27.0		%	27.0		%			27.0		%	27.0		%

Net interest yield	Net interest yield	1.56			2.57						Net interest yield	1.49			1.82					1.52			2.15
Return on average allocated capital	Return on average allocated capital	21			1						Return on average allocated capital	23			7					22			4
Efficiency ratio	Efficiency ratio	60.03			50.40						Efficiency ratio	51.07			43.65					55.34			46.86

Balance Sheet	Balance Sheet										Balance Sheet

		Three Months Ended March 31								Three Months Ended June 30								Six Months Ended June 30
Average	Average	2021			2020			% Change			Average	2021			2020			% Change		2021			2020			% Change

Total loans and leases	Total loans and leases	$	330,107		$	386,483		(15	%)		Total loans and leases	$	325,110		$	423,625		(23)	%	$	327,595		$	405,054		(19)	%
Total earning assets	Total earning assets	515,880			409,052			26			Total earning assets	534,680			521,930			2		525,332			465,491			13
Total assets	Total assets	576,145			465,926			24			Total assets	595,498			578,106			3		585,875			522,016			12
Total deposits	Total deposits	487,034			382,373			27			Total deposits	506,618			493,918			3		496,880			438,145			13
Allocated capital	Allocated capital	42,500			42,500			—			Allocated capital	42,500			42,500			—		42,500			42,500			—

Period end	Period end	March 31 2021			December 31 2020			% Change			Period end									June 30 2021			December 31 2020			% Change
Total loans and leases	Total loans and leases	$	325,996		$	339,649		(4)	%		Total loans and leases									$	323,256		$	339,649		(5)	%
Total earning assets	Total earning assets	533,852			522,650			2			Total earning assets									547,278			522,650			5
Total assets	Total assets	594,235			580,561			2			Total assets									607,969			580,561			5
Total deposits	Total deposits	506,012			493,748			2			Total deposits									520,026			493,748			5

n/m = not meaningful

Global Banking, which includes Global Corporate Banking, Global Commercial Banking, Business Banking and Global Investment Banking, provides a wide range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through our network of offices and client relationship teams. For more information about Global Banking, see Business Segment Operations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Three-Month Comparison

Net income for Global Banking increased ~~$2.0~~$1.7 billion to ~~$2.2~~$2.4 billion ~~for the three months ended March 31, 2021 compared to the same period in 2020~~ primarily driven by improvement in the provision for credit losses, ~~and higher noninterest income,~~ partially offset by ~~lower net interest income and~~ higher noninterest expense.

~~Revenue increased $33 million to $4.6 billion driven by higher noninterest income, largely offset by lower net interest income.~~

Net interest income decreased ~~$632~~$379 million to $2.0 billion primarily driven by the impact of lower ~~interest rates and~~ loan balances and lower deposit spreads, partially offset by higher credit spreads and the impact of higher deposit ~~balances and credit spreads.~~balances.

Noninterest income increased ~~$665~~$377 million to ~~$2.7~~$3.1 billion driven by higher ~~investment banking fees~~leasing-related revenue and ~~higher valuation driven~~treasury and credit service charges as well as the addition of merchant services revenue, partially offset by lower valuation-driven adjustments on the fair value loan portfolio ~~debt securities~~ and leveraged ~~loans, partially offset by weather-related impairment charges on certain renewable energy investments.~~loans.

The provision for credit losses improved ~~$3.2~~$2.7 billion to a benefit of ~~$1.1 billion~~$831 million primarily driven by a reserve release due to ~~the~~an improved macroeconomic outlook.

Noninterest expense increased ~~$463~~$377 million ~~reflecting~~primarily due to higher ~~revenue-related incentives,~~operating costs and compensation and benefits expense, as well as ~~an acceleration in expenses from incentive compensation award changes.~~the addition of merchant services costs.

The return on average allocated capital was 2123 percent, up from ~~one~~seven percent, due to higher net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 9.11.

Six-Month Comparison

Net income for Global Banking increased $3.7 billion to $4.6 billion primarily due to the same factors as described in the three-month discussion.

Net interest income decreased $1.0 billion to $4.0 billion primarily due to the same factors as described in the three-month discussion.

Noninterest income increased $1.0 billion to $5.8 billion driven by higher investment banking fees, treasury and credit service charges and higher valuation-driven adjustments on the fair value loan portfolio, debt securities and leveraged loans, as well as the addition of merchant services revenue.

The provision for credit losses improved $5.9 billion to a benefit of $2.0 billion primarily driven by a reserve release due to an improved macroeconomic outlook.

17Bank of America

Noninterest expense increased $840 million to $5.4 billion, primarily due to higher revenue-related incentives and an acceleration in expenses from incentive compensation award changes, as well as higher operating costs, including the addition of merchant services costs.

The return on average allocated capital was 22 percent, up from four percent, due to higher net income.

Global Corporate, Global Commercial and Business Banking

The table below and following discussion present a summary of the results, which exclude certain investment banking, merchant services and PPP activities in Global Banking.


Global Corporate, Global Commercial and Business Banking	Global Corporate, Global Commercial and Business Banking																				Global Corporate, Global Commercial and Business Banking

													Global Corporate Banking					Global Commercial Banking				Business Banking				Total
						Three Months Ended June 30
(Dollars in millions)																					(Dollars in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Revenue																					Revenue
Business Lending																					Business Lending	$	989	$	916	$	867	$	881	$	56	$	66	$	1,912	$	1,863
Global Transaction Services																					Global Transaction Services	734		785		771		809		215		217		1,720		1,811
Total revenue, net of interest expense																					Total revenue, net of interest expense	$	1,723	$	1,701	$	1,638	$	1,690	$	271	$	283	$	3,632	$	3,674

Balance Sheet																					Balance Sheet
Average																					Average
Total loans and leases																					Total loans and leases	$	148,163	$	201,852	$	156,526	$	200,463	$	12,703	$	15,018	$	317,392	$	417,333
Total deposits																					Total deposits	244,552		236,421		205,491		209,263		55,769		48,231		505,812		493,915

		Global Corporate Banking					Global Commercial Banking				Business Banking					Total						Global Corporate Banking				Global Commercial Banking				Business Banking				Total
		Three Months Ended March 31																				Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020			2021		2020		2021			2020		2021			2020		(Dollars in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Revenue	Revenue																				Revenue
Business Lending	Business Lending	$	654	$	951		$	898	$	981	$	55		$	82	$	1,607		$	2,014	Business Lending	$	1,643	$	1,867	$	1,765	$	1,862	$	111	$	148	$	3,519	$	3,877
Global Transaction Services	Global Transaction Services	690		871			744		878		211			256		1,645			2,005		Global Transaction Services	1,424		1,656		1,515		1,687		426		473		3,365		3,816
Total revenue, net of interest expense	Total revenue, net of interest expense	$	1,344	$	1,822		$	1,642	$	1,859	$	266		$	338	$	3,252		$	4,019	Total revenue, net of interest expense	$	3,067	$	3,523	$	3,280	$	3,549	$	537	$	621	$	6,884	$	7,693

Balance Sheet	Balance Sheet																				Balance Sheet

Average	Average																				Average
Total loans and leases	Total loans and leases	$	148,237	$	182,705		$	160,309	$	188,581	$	13,001		$	15,181	$	321,547		$	386,467	Total loans and leases	$	148,200	$	192,278	$	158,407	$	194,522	$	12,851	$	15,100	$	319,458	$	401,900
Total deposits	Total deposits	229,590		187,920			203,645		153,880		53,293			40,571		486,528			382,371		Total deposits	237,112		212,170		204,573		181,572		54,538		44,401		496,223		438,143

Period end	Period end																				Period end
Total loans and leases	Total loans and leases	$	148,914	$	209,028		$	155,842	$	212,443	$	12,813		$	15,658	$	317,569		$	437,129	Total loans and leases	$	148,210	$	182,374	$	157,248	$	183,869	$	12,678	$	14,378	$	318,136	$	380,621
Total deposits	Total deposits	242,524		246,237			207,580		189,584		55,222			41,286		505,326			477,107		Total deposits	255,710		238,862		207,003		210,853		56,285		51,195		518,998		500,910

Business Lending revenue ~~decreased $407~~increased $49 million for the three months ended ~~March 31,~~June 30, 2021 compared to the same period in ~~2020. The decrease was~~2020 primarily ~~driven~~due to higher credit spreads and leasing equity investment income, partially offset by the impact of lower loan balances. Business Lending revenue decreased $358 million for the six months ended June 30, 2021 primarily due to the impact of lower loan balances and interest rates, ~~as well as weather-related impairment charges on certain renewable energy investments.~~partially offset by higher credit spreads.

Global Transaction Services revenue decreased ~~$360~~$91 million and $451 million for the three and six months ended June 30, 2021 driven by lower interest rates, partially offset by the impact of higher deposit balances.

Average loans and leases decreased 1724 percent and 21 percent for the three and six months ended June 30, 2021 driven by client ~~paydowns and decreased new originations due to lower demand.~~paydowns.

Average deposits increased 27two percent and 13 percent for the three and six months ended June 30, 2021 primarily driven

by elevated balances from prior-year inflows on client responses to market volatility and government stimulus measures.

Global Investment Banking

Client teams and product specialists underwrite and distribute debt, equity and loan products, and provide advisory services and tailored risk management solutions. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking originates certain deal-related transactions with our corporate and commercial clients that are executed and distributed by Global Markets. To provide a complete discussion of our

consolidated investment banking fees, the following table ~~below~~ presents total Corporation investment banking fees and the portion attributable to Global Banking.

Investment Banking Fees
Global Banking Total Corporation
Three Months Ended March 31
(Dollars in millions) 2021 2020 2021 2020
Products
Advisory $ 357 $ 247 $ 400 $ 269
Debt issuance 423 424 988 927
Equity issuance 392 90 900 283
Gross investment banking fees 1,172 761 2,288 1,479
Self-led deals (17) (43) (42) (91)
Total investment banking fees $ 1,155 $ 718 $ 2,246 $ 1,388


						Bank of America18



Investment Banking Fees

	Global Banking				Total Corporation				Global Banking				Total Corporation
	Three Months Ended June 30								Six Months Ended June 30

(Dollars in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Products
Advisory	$	376	$	345	$	407	$	406	$	733	$	592	$	807	$	675
Debt issuance	482		503		1,110		1,058		905		927		2,098		1,985
Equity issuance	315		333		702		740		707		423		1,602		1,023
Gross investment banking fees	1,173		1,181		2,219		2,204		2,345		1,942		4,507		3,683
Self-led deals	(44)		(18)		(97)		(45)		(61)		(61)		(139)		(136)
Total investment banking fees	$	1,129	$	1,163	$	2,122	$	2,159	$	2,284	$	1,881	$	4,368	$	3,547

Total Corporation investment banking fees, excluding self-led deals, ~~of $2.2 billion,~~ which are primarily included within Global Banking and Global Markets, ~~increased 62 percent~~were $2.1 billion and $4.4 billion for the three and six months ended ~~March 31, 2021~~June 30, 2021. The three-month period decreased two percent compared to the same period in ~~2020~~2020. The six-month period increased 23 percent primarily driven by higher equity issuance fees as well as advisory and ~~advisory~~debt issuance fees.

Global Markets



	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	2021			2020			% Change		2021			2020			% Change
Net interest income	$	991		$	1,297		(24)	%	$	1,981		$	2,449		(19)	%
Noninterest income:
Investment and brokerage services	473			480			(1)		1,033			1,048			(1)
Investment banking fees	959			939			2		1,940			1,542			26
Market making and similar activities	1,964			2,360			(17)		5,434			5,334			2
All other income	333			274			22		530			202			n/m
Total noninterest income	3,729			4,053			(8)		8,937			8,126			10
Total revenue, net of interest expense	4,720			5,350			(12)		10,918			10,575			3

Provision for credit losses	22			105			(79)		17			212			(92)
Noninterest expense	3,471			2,684			29		6,898			5,498			25
Income before income taxes	1,227			2,561			(52)		4,003			4,865			(18)
Income tax expense	319			666			(52)		1,041			1,265			(18)
Net income	$	908		$	1,895		(52)		$	2,962		$	3,600		(18)

Effective tax rate	26.0		%	26.0		%			26.0		%	26.0		%

Return on average allocated capital	10			21					16			20
Efficiency ratio	73.55			50.17					63.19			51.99

Balance Sheet
	Three Months Ended June 30								Six Months Ended June 30
	2021			2020			% Change		2021			2020			% Change

Average
Trading-related assets:
Trading account securities	$	304,760		$	216,157		41	%	$	285,081		$	236,704		20	%
Reverse repurchases	116,424			104,883			11		108,201			110,291			(2)
Securities borrowed	101,144			96,448			5		95,231			89,860			6
Derivative assets	44,514			49,502			(10)		45,983			48,199			(5)
Total trading-related assets	566,842			466,990			21		534,496			485,054			10
Total loans and leases	87,826			74,131			18		82,649			72,896			13
Total earning assets	531,000			478,648			11		513,261			490,132			5
Total assets	797,558			663,072			20		760,616			688,062			11
Total deposits	55,584			45,083			23		54,723			39,203			40
Allocated capital	38,000			36,000			6		38,000			36,000			6

Period end									June 30 2021			December 31 2020			% Change


Total trading-related assets									$	542,614		$	421,698		29	%
Total loans and leases									96,105			78,415			23
Total earning assets									527,983			447,350			18
Total assets									773,714			616,609			25
Total deposits									57,297			53,925			6

n/m = not meaningful


1519 Bank of America

~~Global Markets~~

Three Months Ended March 31
(Dollars in millions) 2021 2020 % Change
Net interest income $ 990 $ 1,153 (14) %
Noninterest income:
Investment and brokerage services 560 567 (1)
Investment banking fees 981 602 63
Market making and similar activities 3,470 2,973 17
All other income 197 (69) n/m
Total noninterest income 5,208 4,073 28
Total revenue, net of interest expense 6,198 5,226 19
Provision for credit losses (5) 107 (105)
Noninterest expense 3,427 2,815 22
Income before income taxes 2,776 2,304 20
Income tax expense 722 599 21
Net income $ 2,054 $ 1,705 20
Effective tax rate 26.0 % 26.0 %
Return on average allocated capital 22 19
Efficiency ratio 55.30 53.85
Balance Sheet
Three Months Ended March 31
2021 2020 % Change
Average
Trading-related assets:
Trading account securities $ 265,181 $ 257,254 3 %
Reverse repurchases 99,886 115,698 (14)
Securities borrowed 89,253 83,271 7
Derivative assets 47,469 46,896 1
Total trading-related assets 501,789 503,119 —
Total loans and leases 77,415 71,660 8
Total earning assets 495,324 501,616 (1)
Total assets 723,264 713,051 1
Total deposits 53,852 33,323 62
Allocated capital 38,000 36,000 6
Period end March 31
2021 December 31
2020 % Change
Total trading-related assets $ 524,188 $ 421,698 24 %
Total loans and leases 84,247 78,415 7
Total earning assets 496,103 447,350 11
Total assets 745,681 616,609 21
Total deposits 61,450 53,925 14

~~n/m = not meaningful~~

Global Markets offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets product coverage includes securities and derivative products in both the primary and secondary markets. For more information about Global Markets, see Business Segment Operations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

The following explanations for current period-over-period changes for Global Markets, including those disclosed under Sales and Trading Revenue, are the same for amounts including and excluding net DVA. Amounts excluding net DVA are a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 6.7.

Three-Month Comparison

Net income for Global Markets ~~increased $349~~decreased $987 million to ~~$2.1 billion for the three months ended March 31, 2021 compared to the same period in 2020.~~$908 million. Net DVA losses were $2$34 million compared to ~~gains~~losses of ~~$300~~$261 million ~~during~~in the ~~same period in 2020.~~prior-year period. Excluding net DVA, net income ~~increased $579 million~~decreased $1.2 billion to ~~$2.1 billion.~~$934 million. These ~~increases~~decreases were primarily driven by

higher noninterest expense and lower revenue, ~~and improvement in the~~partially offset by lower provision for credit ~~losses, partially offset by higher noninterest expense.~~losses.

Revenue ~~increased $1.0 billion~~decreased $630 million to ~~$6.2~~$4.7 billion primarily driven by ~~higher~~lower sales and trading ~~revenue and investment banking fees.~~revenue. Sales and trading revenue ~~increased $443~~decreased $590 million, and excluding net DVA, ~~increased $745~~decreased $817 million. These ~~increases~~decreases were driven by ~~higher~~lower revenue in Fixed Income, Currencies and Commodities (FICC) ~~and~~, partially offset by higher revenue in Equities.

The provision for credit losses ~~improved $112 million to a benefit of $5~~decreased $83 million primarily due to ~~the~~an improved macroeconomic outlook.

Noninterest expense increased ~~$612~~$787 million to ~~$3.4~~$3.5 billion driven by ~~volume-related~~higher costs associated with processing transactional card claims related to state unemployment benefits and activity-related expenses ~~in both card and~~for sales and trading.

Average total assets increased $134.5 billion to $797.6 billion driven by higher client balances in Global Equities, and higher levels of inventory and loan growth in FICC.

The return on average allocated capital was 10 percent, down from 21 percent, reflecting lower net income and an increase in allocated capital. For more information on capital allocated to the business segments, see Business Segment Operations on page 11.

Six-Month Comparison

Net income for Global Markets decreased $638 million to $3.0 billion. Net DVA losses were $36 million compared to gains of $39 million in the prior-year period. Excluding net DVA, net income decreased $581 million to $3.0 billion. These decreases were primarily driven by higher noninterest expense.

Revenue increased $343 million to $10.9 billion primarily driven by higher investment banking income. Sales and trading revenue decreased $147 million, and excluding net DVA, decreased $72 million driven by a decline in FICC revenue, partially offset by higher revenue in Equities. Noninterest expense increased $1.4 billion to $6.9 billion, primarily driven by the same factors as described in the three-month discussion, as well as an acceleration in expenses from incentive compensation award changes.

The provision for credit losses decreased $195 million primarily due to an improved macroeconomic outlook.

Average total assets increased ~~$10.2~~$72.6 billion to ~~$723.3~~$760.6 billion, ~~for the three months ended March 31, 2021 compared~~primarily due to ~~the same period in 2020 as reductions in FICC were more than offset by~~ higher client balances in Global Equities. Period-end total assets increased ~~$129.1~~$157.1 billion ~~from~~since December 31, 2020


						~~Bank of America~~16

to ~~$745.7~~$773.7 billion driven by higher client balances and increased hedging of client activity with stock positions relative to derivatives in Global Equities, and higher levels of inventory and loan growth in FICC.

The return on average allocated capital was 2216 percent, updown from 1920 percent, reflecting ~~higher~~lower net income ~~partially offset by~~and an increase in allocated capital. ~~For more information on capital allocated to the business segments, see Business Segment Operations on page 9.~~

Sales and Trading Revenue

For a description of sales and trading revenue, see Business Segment Operations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K. The following table and related discussion present sales and trading revenue, substantially all of which is in Global Markets, with the remainder in Global Banking. In addition, the following table and related discussion present sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 6.7.


Sales and Trading Revenue (1, 2, 3)	Sales and Trading Revenue (1, 2, 3)					Sales and Trading Revenue (1, 2, 3)

		Three Months Ended March 31					Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020				(Dollars in millions)	2021		2020		2021		2020
Sales and trading revenue	Sales and trading revenue							Sales and trading revenue
Fixed income, currencies and commodities	Fixed income, currencies and commodities	$	3,242	$	2,945			Fixed income, currencies and commodities	$	1,937	$	2,941	$	5,179	$	5,886
Equities	Equities	1,836		1,690				Equities	1,624		1,210		3,460		2,900
Total sales and trading revenue	Total sales and trading revenue	$	5,078	$	4,635			Total sales and trading revenue	$	3,561	$	4,151	$	8,639	$	8,786

Sales and trading revenue, excluding net DVA (4)	Sales and trading revenue, excluding net DVA (4)							Sales and trading revenue, excluding net DVA (4)
Fixed income, currencies and commodities	Fixed income, currencies and commodities	$	3,251	$	2,671			Fixed income, currencies and commodities	$	1,965	$	3,186	$	5,216	$	5,857
Equities	Equities	1,829		1,664				Equities	1,630		1,226		3,459		2,890
Total sales and trading revenue, excluding net DVA	Total sales and trading revenue, excluding net DVA	$	5,080	$	4,335			Total sales and trading revenue, excluding net DVA	$	3,595	$	4,412	$	8,675	$	8,747

(1)For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements.

(2)Includes FTE adjustments of ~~$73~~$59 million and ~~$62~~$132 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to $38 million and $100 million for the same periods in 2020.

(3) Includes Global Banking sales and trading revenue of ~~$104~~$170 million and ~~$227~~$274 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to $65 million and $294 million for the same periods in 2020.

(4) FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA losses were $9$28 million and ~~gains were $274~~$37 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to losses of $245 million and gains of $29 million for the same periods in 2020. Equities net DVA ~~gains~~losses were $7$6 million and ~~$26~~gains of $1 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to losses of $16 million and gains of $10 million for the same periods in 2020.


						Bank of America20

Three-Month Comparison

FICC revenue decreased $1.2 billion as the prior year benefited from a robust trading environment for macro products and market recoveries from the end of the first quarter of 2020, whereas markets were more benign in the current-year period and weak for agency mortgages. Equities revenue increased ~~$580~~$404 million ~~for the three months ended March 31, 2021 compared to the same period~~driven by stronger trading performance and increased client activity in ~~2020 reflecting a strong~~derivatives and Asia.

Six-Month Comparison

FICC revenue decreased $641 million driven by reduced activity in macro products, partially offset by stronger performance in credit ~~mortgage~~ and municipal products, and gains in commodities (partially offset by related losses in another segment) from market volatility driven by a weather-related ~~event, partially offset by reduced activity in other macro products.~~event. Equities revenue increased ~~$165~~$569 million driven by ~~a strong~~stronger trading performance ~~in cash.~~and increased client activity.

All Other


		Three Months Ended March 31						Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020		% Change			(Dollars in millions)	2021		2020		% Change		2021		2020		% Change
Net interest income	Net interest income	$	87	$	76	14	%		Net interest income	$	41	$	(53)	n/m		$	128	$	24	n/m

Noninterest income (loss)	Noninterest income (loss)	(1,026)		(1,056)		(3)			Noninterest income (loss)	(1,525)		(211)		n/m		(2,551)		(1,266)		102	%
Total revenue, net of interest expense	Total revenue, net of interest expense	(939)		(980)		(4)			Total revenue, net of interest expense	(1,484)		(264)		n/m		(2,423)		(1,242)		95

Provision for credit losses	Provision for credit losses	(47)		114		(141)			Provision for credit losses	(53)		(21)		n/m		(100)		93		n/m

Noninterest expense	Noninterest expense	307		240		28			Noninterest expense	302		305		(1)	%	610		553		10
Loss before income taxes	Loss before income taxes	(1,199)		(1,334)		(10)			Loss before income taxes	(1,733)		(548)		n/m		(2,933)		(1,888)		55
Income tax benefit	Income tax benefit	(1,456)		(847)		72			Income tax benefit	(3,596)		(766)		n/m		(5,052)		(1,614)		n/m
Net income (loss)	Net income (loss)	$	257	$	(487)	n/m			Net income (loss)	$	1,863	$	218	n/m		$	2,119	$	(274)	n/m

Balance Sheet	Balance Sheet								Balance Sheet

		Three Months Ended March 31						Three Months Ended June 30						Six Months Ended June 30

Average	Average	2021		2020		% Change			Average	2021		2020		% Change		2021		2020		% Change
Total loans and leases	Total loans and leases	$	20,815	$	36,555	(43)	%		Total loans and leases	$	19,209	$	29,923	(36)	%	$	20,007	$	33,238	(40)	%
Total assets (1)	Total assets (1)	207,449		201,501		3			Total assets (1)	187,226		249,846		(25)		197,281		225,674		(13)
Total deposits	Total deposits	14,354		23,560		(39)			Total deposits	14,073		21,387		(34)		14,212		22,473		(37)

Period end	Period end	March 31 2021		December 31 2020		% Change			Period end							June 30 2021		December 31 2020		% Change

Total loans and leases	Total loans and leases	$	19,850	$	21,301	(7)	%		Total loans and leases							$	18,306	$	21,301	(14)	%

Total assets (1)	Total assets (1)	204,008		264,139		(23)			Total assets (1)							206,341		264,141		(22)
Total deposits	Total deposits	12,513		12,998		(4)			Total deposits							13,540		12,998		4

(1)In segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from All Other to those segments to match liabilities (i.e., deposits) and allocated shareholders’ equity. Average allocated assets were $1.1 trillion and $1.0 trillion for the three and ~~$572.2~~six months ended June 30, 2021 compared to $740.7 billion and $656.5 billion for the ~~three months ended March 31, 2021 and~~same periods in 2020, and period-end allocated assets were $1.1 trillion and $977.7 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

n/m = not meaningful

All Other primarily consists of 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. For more information on our ALM activities, see Note 17 – Business Segment Information to the Consolidated Financial Statements.


17~~Bank of America~~

Three-Month Comparison

Net income increased $1.6 billion to $1.9 billion primarily driven by an increase in the income tax benefit, partially offset by lower revenue.

~~Results for~~Revenue decreased ~~All Other~~$1.2 billion ~~improved $744~~primarily due to a $704 million ~~to net income~~gain on sales of ~~$257 million from a net loss of $487 million~~certain mortgage loans in the prior-year period ~~driven by improvement in provision for credit losses~~ and ~~revenue, partially offset by higher noninterest expense.~~lower market making and similar activities.

~~The provision for credit losses improved $161 million to a benefit of $47 million primarily due to an improved macroeconomic outlook.~~

~~Noninterest expense increased $67 million primarily due to higher technology costs.~~

The income tax benefit increased ~~$609 million reflecting~~$2.8 billion primarily due to the impact of the U.K. tax law change and a higher level of income tax credits associated with increased ESG investment

activities. For more information on the U.K. tax law change, see Financial Highlights on page 4. Both periods included income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking.

Six-Month Comparison

Net income increased $2.4 billion to $2.1 billion primarily due to an increase in the income tax benefit, partially offset by lower revenue.

Revenue decreased $1.2 billionprimarily due to the same factors as described in the three-month discussion.

The provision for credit losses improved $193 million to a benefit of $100 million primarily due to an improved macroeconomic outlook.

The income tax benefit increased $3.4 billion primarily due to the same factors as described in the three-month discussion. Both periods included income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking.


21Bank of America

Off-Balance Sheet Arrangements and Contractual Obligations

We have contractual obligations to make future payments on debt and lease agreements. Additionally, in the normal course of business, we enter into contractual arrangements whereby we commit to future purchases of products or services from unaffiliated parties. For more information on obligations and commitments, see Note 10 – Commitments and Contingencies to the Consolidated Financial Statements herein, as well as Off-Balance Sheet Arrangements and Contractual Obligations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K, and Note 11 – Long-term Debt and Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Representations and Warranties Obligations

For more information on representations and warranties obligations in connection with the sale of mortgage loans, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Managing Risk

Risk is inherent in all our business activities. The seven key types of risk faced by the Corporation are strategic, credit, market, liquidity, compliance, operational and reputational. Sound risk management enables us to serve our customers and deliver for our shareholders. If not managed well, risks can result in financial loss, regulatory sanctions and penalties, and damage to our reputation, each of which may adversely impact our ability to execute our business strategies. We take a comprehensive approach to risk management with a defined Risk Framework and an articulated Risk Appetite Statement, which are approved annually by the Enterprise Risk Committee and the Board.

Our Risk Framework serves as the foundation for the consistent and effective management of risks facing the Corporation. The Risk Framework sets forth clear roles, responsibilities and accountability for the management of risk and provides a blueprint for how the Board, through delegation of authority to committees and executive officers, establishes risk appetite and associated limits for our activities.

Our Risk Appetite Statement is intended to ensure that the Corporation maintains an acceptable risk profile by providing a common framework and a comparable set of measures for senior management and the Board to clearly indicate the level of risk the Corporation is willing to accept. Risk appetite is set at least annually and is aligned with the Corporation’s strategic, capital and financial operating plans. Our line-of-business strategies and risk appetite are also similarly aligned.

For more information about the ~~Corporation's~~Corporation’s risks related to the pandemic, see Item 1A. Risk Factors – Coronavirus Disease of the Corporation’s 2020 Annual Report on Form 10-K. These pandemic-related risks are being managed within our Risk Framework and supporting risk management programs.

For more information on our Risk Framework, our risk management activities and the key types of risk faced by the Corporation, see the Managing Risk section in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Capital Management

The Corporation manages its capital position so that its capital is more than adequate to support its business activities and aligns with risk, risk appetite and strategic planning. For more

information, including related regulatory requirements, see Capital Management in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

CCAR and Capital Planning

The Federal Reserve requires BHCs to submit a capital plan and planned capital actions on an annual basis, consistent with the rules governing the ~~Comprehensive Capital Analysis and Review (CCAR)~~CCAR capital plan. ~~Based on the results of~~We submitted our ~~2020~~2021 CCAR capital plan and related supervisory stress tests in April 2021 and received our results on June 24, 2021. Based on our results, we ~~are~~will be subject to a preliminary 2.5 percent ~~stress capital buffer (SCB)~~SCB, unchanged from the current level, effective October 1, ~~2020 through~~2021 to September 30, ~~2021.~~2022. Our ~~Common equity tier 1 (CET1)~~CET1 capital ratio under the Standardized approach must remain above 9.5 percent during this period ~~(the sum of our CET1 capital ratio minimum of 4.5 percent, global systemically important bank (G-SIB) surcharge of 2.5 percent and our SCB of 2.5 percent)~~ in order to avoid restrictions on capital distributions and discretionary bonus payments. In April 2021, we submitted our 2021 CCAR capital plan and related supervisory stress tests. The Federal Reserve has announced that it will disclose CCAR capital plan supervisory stress test results by July 1, 2021.

Due to uncertainty resulting from the pandemic, the Federal Reserve ~~required large banks to suspend~~imposed various restrictions on share repurchase programs ~~during the second half~~and dividends. In conjunction with its release of 2020, except for repurchases to offset shares awarded under equity-based compensation plans, and to limit common stock dividends to existing rates that did not exceed the average of the last four quarters’ net income. In December 2020,2021 CCAR supervisory stress test results, the Federal Reserve announced ~~that beginning in the first quarter of 2021, large banks~~those restrictions would ~~be permitted to pay common stock dividends at existing rates and to repurchase shares in an amount that,~~


						~~Bank of America~~18

when combined with dividends paid, did not exceed the average of the last four quarters’ net income. On January 19, 2021, we announced that the Board declared a quarterly common stock dividend of $0.18 per share, payable on March 26, 2021 to shareholders of record as of March 5, 2021. The Board also authorized the repurchase of $2.9 billion in common stock through March 31, 2021, plus repurchases to offset shares awarded under equity-based compensation plans during the same period. The Board’s authorization equaled the maximum amount allowed by the Federal Reserve for the period. During the first quarter of 2021, we repurchased $3.5 billion of common stock, including repurchases to offset shares awarded under equity-based compensation plans during the period.

~~On March 25, 2021, the Federal Reserve announced that the restrictions on common stock dividends and share repurchases currently in place will~~ end for most banks after June 30, 2021, following the completion of 2021 supervisory stress tests. Banks, including the Corporation, with capital levels above those required by the stress tests will no longer be subject to the additional restrictions as of July 1, 2021 for large banks, including the Corporation, and ~~will~~large banks would be subject to the normal restrictions under the Federal ~~Reserve’s~~Reserve's SCB framework.

On April 15, 2021, the Corporation announced that the Board authorized the repurchase of up to $25 billion of common stock over time. The Board also authorized repurchases to offset shares awarded under equity-based compensation plans. ~~For~~During the second quarter of 2021, ~~the Corporation’s repurchase plans will be consistent with the Federal Reserve’s guidance that~~we repurchased $4.2 billion of common stock, including repurchases ~~and common stock dividends, when combined, should be limited~~ to offset shares awarded under equity-based compensation plans during the average of the last four quarters’ net income. Following the expiration of the Federal Reserve's restrictions, the Corporation expects to return additional capital to shareholders through repurchases and dividends pursuant to the Board's authorizations.period.

The timing and amount of common stock repurchases made pursuant to our stock repurchase program are subject to various factors, including the Corporation’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions, and may be suspended at any time. Such repurchases may be effected through open market purchases or

privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (Exchange Act).

Regulatory Capital

As a financial services holding company, we are subject to regulatory capital rules, including Basel 3, issued by U.S. banking regulators. The Corporation's depository institution subsidiaries are also subject to the Prompt Corrective Action (PCA) framework. The Corporation and its primary affiliated banking entity, BANA, are Advanced approaches institutions under Basel 3 and are required to report regulatory risk-based capital ratios and risk-weighted assets (RWA) under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy including under the PCA framework. As of ~~March 31,~~June 30, 2021, the CET1, Tier 1 capital and Total capital ratios for the Corporation were lower under the Standardized approach.

Minimum Capital Requirements

In order to avoid restrictions on capital distributions and discretionary bonus payments, the Corporation must meet risk-based capital ratio requirements that include a capital conservation buffer or SCB, plus any applicable countercyclical capital buffer and a ~~G-SIB~~global systemically important bank (G-SIB) surcharge. The buffers and surcharge must be comprised solely


						Bank of America22

of CET1 capital. The Corporation's CET1 capital ratio must be a minimum of 9.5 percent under both the Standardized and Advanced approaches.

The Corporation is also required to maintain a minimum ~~SLR~~supplementary leverage ratio (SLR) of 3.0 percent plus a leverage buffer of 2.0 percent in order to avoid certain restrictions on capital distributions and discretionary bonus payments. Our insured depository institution subsidiaries are required to maintain a minimum 6.0 percent SLR to be

considered well capitalized under the PCA framework.

Capital Composition and Ratios

Table 78 presents Bank of America Corporation’s capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches as measured at ~~March 31,~~June 30, 2021 and December 31, 2020. For the periods presented herein, the Corporation met the definition of well capitalized under current regulatory requirements.


19~~Bank of America~~


Table 7		Bank of America Corporation Regulatory Capital under Basel 3
Table 8												Table 8	Bank of America Corporation Regulatory Capital under Basel 3

			Standardized Approach (1)			Advanced Approaches (1)			Regulatory Minimum (2)						Standardized Approach (1)			Advanced Approaches (1)			Regulatory Minimum (2)
(Dollars in millions, except as noted)	(Dollars in millions, except as noted)		March 31, 2021								(Dollars in millions, except as noted)			June 30, 2021
Risk-based capital metrics:	Risk-based capital metrics:											Risk-based capital metrics:
Common equity tier 1 capital	Common equity tier 1 capital		$	177,789		$	177,789					Common equity tier 1 capital			$	178,818		$	178,818
Tier 1 capital	Tier 1 capital		201,224			201,224						Tier 1 capital			202,245			202,245
Total capital (3)	Total capital (3)		236,000			227,693						Total capital (3)			234,486			227,736
Risk-weighted assets (in billions)	Risk-weighted assets (in billions)		1,508			1,365						Risk-weighted assets (in billions)			1,552			1,380
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio		11.8		%	13.0		%	9.5	%		Common equity tier 1 capital ratio			11.5		%	13.0		%	9.5	%
Tier 1 capital ratio	Tier 1 capital ratio		13.3			14.7			11.0			Tier 1 capital ratio			13.0			14.7			11.0
Total capital ratio	Total capital ratio		15.6			16.7			13.0			Total capital ratio			15.1			16.5			13.0

Leverage-based metrics:	Leverage-based metrics:											Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)	Adjusted quarterly average assets (in billions) (4)		$	2,805		$	2,805					Adjusted quarterly average assets (in billions) (4)			$	2,938		$	2,938
Tier 1 leverage ratio	Tier 1 leverage ratio		7.2		%	7.2		%	4.0			Tier 1 leverage ratio			6.9		%	6.9		%	4.0

Supplementary leverage exposure (in billions) (5)	Supplementary leverage exposure (in billions) (5)					$	2,868					Supplementary leverage exposure (in billions) (5)						$	3,444
Supplementary leverage ratio	Supplementary leverage ratio					7.0		%	5.0			Supplementary leverage ratio						5.9		%	5.0

			December 31, 2020											December 31, 2020
Risk-based capital metrics:	Risk-based capital metrics:											Risk-based capital metrics:
Common equity tier 1 capital	Common equity tier 1 capital		$	176,660		$	176,660					Common equity tier 1 capital			$	176,660		$	176,660
Tier 1 capital	Tier 1 capital		200,096			200,096						Tier 1 capital			200,096			200,096
Total capital (3)	Total capital (3)		237,936			227,685						Total capital (3)			237,936			227,685
Risk-weighted assets (in billions)	Risk-weighted assets (in billions)		1,480			1,371						Risk-weighted assets (in billions)			1,480			1,371
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio		11.9		%	12.9		%	9.5	%		Common equity tier 1 capital ratio			11.9		%	12.9		%	9.5	%
Tier 1 capital ratio	Tier 1 capital ratio		13.5			14.6			11.0			Tier 1 capital ratio			13.5			14.6			11.0
Total capital ratio	Total capital ratio		16.1			16.6			13.0			Total capital ratio			16.1			16.6			13.0

Leverage-based metrics:	Leverage-based metrics:											Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)	Adjusted quarterly average assets (in billions) (4)		$	2,719		$	2,719					Adjusted quarterly average assets (in billions) (4)			$	2,719		$	2,719
Tier 1 leverage ratio	Tier 1 leverage ratio		7.4		%	7.4		%	4.0			Tier 1 leverage ratio			7.4		%	7.4		%	4.0

Supplementary leverage exposure (in billions) (5)	Supplementary leverage exposure (in billions) (5)					$	2,786					Supplementary leverage exposure (in billions) (5)						$	2,786
Supplementary leverage ratio	Supplementary leverage ratio					7.2		%	5.0			Supplementary leverage ratio						7.2		%	5.0

(1)As of ~~March 31,~~June 30, 2021 and December 31, 2020, capital ratios are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of the current expected credit losses (CECL) accounting standard.

(2)The capital conservation buffer and G-SIB surcharge were 2.5 percent at both ~~March 31,~~June 30, 2021 and December 31, 2020. At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation's SCB of 2.5 percent was applied in place of the capital conservation buffer under the Standardized approach. The countercyclical capital buffer for both periods was zero. The CET1 capital regulatory minimum is the sum of the CET1 capital ratio minimum of 4.5 percent, our G-SIB surcharge of 2.5 percent and our SCB or the capital conservation buffer, as applicable, of 2.5 percent. The SLR regulatory minimum includes a leverage buffer of 2.0 percent.

(3)Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.

(4)Reflects total average assets adjusted for certain Tier 1 capital deductions.

(5)Supplementary leverage exposure at December 31, 2020 reflects the temporary exclusion of U.S. Treasury securities and deposits at Federal Reserve ~~Banks for both periods.~~Banks. The temporary relief expired after March 31, 2021 and is not reflected in supplementary leverage exposure at June 30, 2021.

At ~~March 31,~~June 30, 2021, CET1 capital was ~~$177.8~~$178.8 billion, an increase of ~~$1.1~~$2.2 billion from December 31, 2020, driven by earnings, partially offset by common stock repurchases, dividends, the increase in deferred tax assets due to the change in U.K. tax law and lower net unrealized gains on available-for-sale (AFS) debt securities included in accumulated other comprehensive income (OCI). Tier 1 capital increased $2.1 billion primarily driven by the same factors as CET1 capital. Total capital under the Standardized approach decreased ~~$1.9~~$3.5 billion primarily driven by a decrease in the adjusted allowance for credit losses

included in Tier 2 capital, partially offset by

the same factors driving the increase in CET1 capital. RWA under the Standardized approach, which yielded the lower CET1 capital ratio at ~~March 31,~~June 30, 2021, increased ~~$28.3~~$71.9 billion during the ~~three~~six months ended ~~March 31,~~June 30, 2021 to ~~$1,508~~$1,552 billion primarily due to strong client activity in Global Marketsand investments of excess liquidity. Supplementary leverage exposure at June 30, 2021 increased $658.1 billion during the six months ended June 30, 2021 primarily due to the expiration of the Federal Reserve’s temporary relief to exclude U.S. Treasury securities and deposits at Federal Reserve Banks.

23Bank of America

Table 89 shows the capital composition at ~~March 31,~~June 30, 2021 and December 31, 2020.


Table 8		Capital Composition under Basel 3
Table 9							Table 9	Capital Composition under Basel 3

(Dollars in millions)	(Dollars in millions)		March 31 2021		December 31 2020		(Dollars in millions)		June 30 2021		December 31 2020

Total common shareholders’ equity	Total common shareholders’ equity		$	249,681	$	248,414	Total common shareholders’ equity		$	253,678	$	248,414
CECL transitional amount (1)	CECL transitional amount (1)		3,544		4,213		CECL transitional amount (1)		2,994		4,213
Goodwill, net of related deferred tax liabilities	Goodwill, net of related deferred tax liabilities		(68,565)		(68,565)		Goodwill, net of related deferred tax liabilities		(68,638)		(68,565)
Deferred tax assets arising from net operating loss and tax credit carryforwards	Deferred tax assets arising from net operating loss and tax credit carryforwards		(5,904)		(5,773)		Deferred tax assets arising from net operating loss and tax credit carryforwards		(7,641)		(5,773)
Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities	Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities		(1,604)		(1,617)		Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities		(1,662)		(1,617)
Defined benefit pension plan net assets	Defined benefit pension plan net assets		(1,181)		(1,164)		Defined benefit pension plan net assets		(1,196)		(1,164)
Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax	Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax		1,625		1,753		Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax		1,499		1,753
Other	Other		193		(601)		Other		(216)		(601)
Common equity tier 1 capital	Common equity tier 1 capital		177,789		176,660		Common equity tier 1 capital		178,818		176,660
Qualifying preferred stock, net of issuance cost	Qualifying preferred stock, net of issuance cost		23,440		23,437		Qualifying preferred stock, net of issuance cost		23,440		23,437
Other	Other		(5)		(1)		Other		(13)		(1)
Tier 1 capital	Tier 1 capital		201,224		200,096		Tier 1 capital		202,245		200,096
Tier 2 capital instruments	Tier 2 capital instruments		21,137		22,213		Tier 2 capital instruments		20,674		22,213
Qualifying allowance for credit losses(2)	Qualifying allowance for credit losses(2)		13,642		15,649		Qualifying allowance for credit losses(2)		11,993		15,649
Other	Other		(3)		(22)		Other		(426)		(22)
Total capital under the Standardized approach	Total capital under the Standardized approach		236,000		237,936		Total capital under the Standardized approach		234,486		237,936
Adjustment in qualifying allowance for credit losses under the Advanced approaches (2)	Adjustment in qualifying allowance for credit losses under the Advanced approaches (2)		(8,307)		(10,251)		Adjustment in qualifying allowance for credit losses under the Advanced approaches (2)		(6,750)		(10,251)
Total capital under the Advanced approaches	Total capital under the Advanced approaches		$	227,693	$	227,685	Total capital under the Advanced approaches		$	227,736	$	227,685

(1)Includes the impact of the Corporation's adoption of the CECL accounting standard on January 1, 2020 and 25 percent of the increase in reserves since the initial adoption.

(2)Includes the impact of transition provisions related to the CECL accounting standard.

Table 910 shows the components of RWA as measured under Basel 3 at ~~March 31,~~June 30, 2021 and December 31, 2020.


Table 9		Risk-weighted Assets under Basel 3
Table 10											Table 10	Risk-weighted Assets under Basel 3

			Standardized Approach		Advanced Approaches		Standardized Approach		Advanced Approaches				Standardized Approach		Advanced Approaches		Standardized Approach		Advanced Approaches

(Dollars in billions)	(Dollars in billions)		March 31, 2021				December 31, 2020				(Dollars in billions)		June 30, 2021				December 31, 2020
Credit risk	Credit risk		$	1,444	$	888	$	1,420	$	896	Credit risk		$	1,486	$	898	$	1,420	$	896
Market risk	Market risk		64		63		60		60		Market risk		66		65		60		60
Operational risk	Operational risk		n/a		372		n/a		372		Operational risk		n/a		373		n/a		372
Risks related to credit valuation adjustments	Risks related to credit valuation adjustments		n/a		42		n/a		43		Risks related to credit valuation adjustments		n/a		44		n/a		43
Total risk-weighted assets	Total risk-weighted assets		$	1,508	$	1,365	$	1,480	$	1,371	Total risk-weighted assets		$	1,552	$	1,380	$	1,480	$	1,371

n/a = not applicable


21~~Bank of America~~


						Bank of America24

Bank of America, N.A. Regulatory Capital

Table 1011 presents regulatory capital information for BANA in accordance with Basel 3 Standardized and Advanced approaches as measured at ~~March 31,~~June 30, 2021 and December 31, 2020. BANA met the definition of well capitalized under the PCA framework for both periods.


Table 10		Bank of America, N.A. Regulatory Capital under Basel 3
Table 11												Table 11	Bank of America, N.A. Regulatory Capital under Basel 3

			Standardized Approach (1)			Advanced Approaches (1)				Regulatory Minimum (2)				Standardized Approach (1)			Advanced Approaches (1)			Regulatory Minimum (2)
(Dollars in millions, except as noted)	(Dollars in millions, except as noted)		March 31, 2021						(Dollars in millions, except as noted)		June 30, 2021
Risk-based capital metrics:	Risk-based capital metrics:											Risk-based capital metrics:
Common equity tier 1 capital	Common equity tier 1 capital		$	166,685		$	166,685					Common equity tier 1 capital		$	170,512		$	170,512
Tier 1 capital	Tier 1 capital		166,685			166,685						Tier 1 capital		170,512			170,512
Total capital (3)	Total capital (3)		181,994			172,785						Total capital (3)		184,226			176,693
Risk-weighted assets (in billions)	Risk-weighted assets (in billions)		1,230			1,002						Risk-weighted assets (in billions)		1,270			1,009
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio		13.5		%	16.6		%		7.0	%	Common equity tier 1 capital ratio		13.4		%	16.9		%	7.0	%
Tier 1 capital ratio	Tier 1 capital ratio		13.5			16.6				8.5		Tier 1 capital ratio		13.4			16.9			8.5
Total capital ratio	Total capital ratio		14.8			17.2				10.5		Total capital ratio		14.5			17.5			10.5

Leverage-based metrics:	Leverage-based metrics:											Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)	Adjusted quarterly average assets (in billions) (4)		$	2,182		$	2,182					Adjusted quarterly average assets (in billions) (4)		$	2,269		$	2,269
Tier 1 leverage ratio	Tier 1 leverage ratio		7.6		%	7.6		%		5.0		Tier 1 leverage ratio		7.5		%	7.5		%	5.0

Supplementary leverage exposure (in billions)	Supplementary leverage exposure (in billions)					$	2,574					Supplementary leverage exposure (in billions)					$	2,664
Supplementary leverage ratio	Supplementary leverage ratio					6.5		%		6.0		Supplementary leverage ratio					6.4		%	6.0

			December 31, 2020								December 31, 2020
Risk-based capital metrics:	Risk-based capital metrics:											Risk-based capital metrics:
Common equity tier 1 capital	Common equity tier 1 capital		$	164,593		$	164,593					Common equity tier 1 capital		$	164,593		$	164,593
Tier 1 capital	Tier 1 capital		164,593			164,593						Tier 1 capital		164,593			164,593
Total capital (3)	Total capital (3)		181,370			170,992						Total capital (3)		181,370			170,992
Risk-weighted assets (in billions)	Risk-weighted assets (in billions)		1,221			1,014						Risk-weighted assets (in billions)		1,221			1,014
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio		13.5		%	16.2		%		7.0	%	Common equity tier 1 capital ratio		13.5		%	16.2		%	7.0	%
Tier 1 capital ratio	Tier 1 capital ratio		13.5			16.2				8.5		Tier 1 capital ratio		13.5			16.2			8.5
Total capital ratio	Total capital ratio		14.9			16.9				10.5		Total capital ratio		14.9			16.9			10.5

Leverage-based metrics:	Leverage-based metrics:											Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)	Adjusted quarterly average assets (in billions) (4)		$	2,143		$	2,143					Adjusted quarterly average assets (in billions) (4)		$	2,143		$	2,143
Tier 1 leverage ratio	Tier 1 leverage ratio		7.7		%	7.7		%		5.0		Tier 1 leverage ratio		7.7		%	7.7		%	5.0

Supplementary leverage exposure (in billions)	Supplementary leverage exposure (in billions)					$	2,525					Supplementary leverage exposure (in billions)					$	2,525
Supplementary leverage ratio	Supplementary leverage ratio					6.5		%		6.0		Supplementary leverage ratio					6.5		%	6.0

(1)Capital ratios for both ~~March 31,~~June 30, 2021 and December 31, 2020 are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of CECL.

(2)Risk-based capital regulatory minimums at ~~March 31,~~June 30, 2021 and December 31, 2020 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimums for the leverage ratios as of both period ends are the percent required to be considered well capitalized under the PCA framework.

(4)Reflects total average assets adjusted for certain Tier 1 capital deductions.

Total Loss-Absorbing Capacity Requirements

Total loss-absorbing capacity (TLAC) consists of the Corporation’s Tier 1 capital and eligible long-term debt issued directly by the Corporation. Eligible long-term debt for TLAC ratios is comprised of unsecured debt that has a remaining maturity of at least one year and satisfies additional requirements as prescribed in the TLAC final rule. As with the

risk-based capital ratios and SLR, the Corporation is required to maintain TLAC ratios in excess of minimum requirements plus applicable buffers to avoid restrictions on capital distributions and discretionary bonus payments. Table 1112 presents the Corporation's TLAC and long-term debt ratios and related information as of ~~March 31,~~June 30, 2021 and December 31, 2020.

25Bank of America


Table 11		Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt
Table 12														Table 12	Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt

			TLAC (1)			Regulatory Minimum (2)		Long-term Debt				Regulatory Minimum (3)				TLAC (1)			Regulatory Minimum (2)		Long-term Debt			Regulatory Minimum (3)
(Dollars in millions)	(Dollars in millions)		March 31, 2021								(Dollars in millions)		June 30, 2021
Total eligible balance	Total eligible balance		$	404,440				$	195,323					Total eligible balance		$	429,120				$	218,484
Percentage of risk-weighted assets (4)	Percentage of risk-weighted assets (4)		26.8		%	22.0	%	13.0		%		8.5	%	Percentage of risk-weighted assets (4)		27.7		%	22.0	%	14.1		%	8.5	%
Percentage of supplementary leverage exposure (5)	Percentage of supplementary leverage exposure (5)		14.1			9.5		6.8				4.5		Percentage of supplementary leverage exposure (5)		12.5			9.5		6.3			4.5

			December 31, 2020										December 31, 2020
Total eligible balance	Total eligible balance		$	405,153				$	196,997					Total eligible balance		$	405,153				$	196,997
Percentage of risk-weighted assets (4)	Percentage of risk-weighted assets (4)		27.4		%	22.0	%	13.3		%		8.5	%	Percentage of risk-weighted assets (4)		27.4		%	22.0	%	13.3		%	8.5	%
Percentage of supplementary leverage exposure (5)	Percentage of supplementary leverage exposure (5)		14.5			9.5		7.1				4.5		Percentage of supplementary leverage exposure (5)		14.5			9.5		7.1			4.5

(1)As of ~~March 31,~~June 30, 2021 and December 31, 2020, TLAC ratios are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of CECL.

(2)The TLAC RWA regulatory minimum consists of 18.0 percent plus a TLAC RWA buffer comprised of 2.5 percent plus the Method 1 G-SIB surcharge of 1.5 percent. The countercyclical buffer is zero for both periods. The TLAC supplementary leverage exposure regulatory minimum consists of 7.5 percent plus a 2.0 percent TLAC leverage buffer. The TLAC RWA and leverage buffers must be comprised solely of CET1 capital and Tier 1 capital, respectively.

(3)The long-term debt RWA regulatory minimum is comprised of 6.0 percent plus an additional 2.5 percent requirement based on the Corporation’s Method 2 G-SIB surcharge. The long-term debt leverage exposure regulatory minimum is 4.5 percent.

(4)The approach that yields the higher RWA is used to calculate TLAC and long-term debt ratios, which was the Standardized approach as of ~~March 31,~~June 30, 2021 and December 31, 2020.

(5)Supplementary leverage exposure at ~~March 31, 2021 and~~ December 31, 2020 ~~reflect~~reflects the temporary exclusion of U.S. Treasury Securities and deposits at Federal Reserve Banks. The temporary relief expired after March 31, 2021 and is not reflected in supplementary leverage exposure at June 30, 2021.

Regulatory Developments

The following supplements the disclosure in Capital Management – Regulatory Developments in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Supplementary Leverage Ratio

On March 19, 2021, the U.S. banking regulators announced that the temporary change to the SLR for BHCs and depository institutions issued in 2020 would expire as scheduled after March 31, 2021. While the temporary relief automatically applied to the Corporation, the Corporation’s lead depository institution, Bank of America, N.A., did not opt to take advantage of the SLR relief offered by the OCC. At ~~March 31,~~June 30, 2021, the Corporation’s SLR, ~~was 7.0 percent. Excluding~~reflecting the expiration of the temporary relief, ~~the SLR would have been approximately 6.1~~was 5.9 percent, which is ~~1.1~~0.9 percent, or ~~$35~~$30 billion, in excess of the 5.0 percent required by the Federal Reserve.

Regulatory Capital and Securities Regulation

The Corporation’s principal U.S. broker-dealer subsidiaries are BofA Securities, Inc. (BofAS), Merrill Lynch Professional Clearing Corp. (MLPCC) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S). The Corporation's principal European broker-dealer subsidiaries are Merrill Lynch International (MLI) and BofA Securities Europe SA (BofASE).

The U.S. broker-dealer subsidiaries are subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. BofAS computes its minimum capital requirements as an alternative net capital broker-dealer under Rule 15c3-1e, and MLPCC and MLPF&S compute their minimum capital requirements in accordance with the alternative standard under Rule 15c3-1. BofAS and MLPCC are also registered as futures commission merchants and are subject to ~~Commodity Futures Trading Commission (CFTC)~~CFTC Regulation 1.17. The U.S. broker-dealer subsidiaries are also registered with the Financial Industry Regulatory Authority, Inc. (FINRA). Pursuant to FINRA Rule 4110, FINRA may impose higher net capital requirements than Rule 15c3-1 under the Exchange Act with respect to each of the broker-dealers.

BofAS provides institutional services, and in accordance with the alternative net capital requirements, is required to maintain tentative net capital in excess of $1.0 billion and net capital in excess of the greater of $500 million or a certain percentage of its reserve requirement. BofAS must also notify the ~~Securities and Exchange Commission (SEC)~~SEC in the event its tentative net capital is less than $5.0 billion. BofAS is also required to hold a

certain percentage of its customers' and affiliates' risk-based margin in order to meet its CFTC minimum

net capital requirement. At ~~March 31,~~June 30, 2021, BofAS had tentative net capital of ~~$15.2~~$18.0 billion. BofAS also had regulatory net capital of ~~$12.2~~$15.2 billion, which exceeded the minimum requirement of ~~$2.9~~$3.0 billion.

MLPCC is a fully-guaranteed subsidiary of BofAS and provides clearing and settlement services as well as prime brokerage and arranged financing services for institutional clients. At ~~March 31,~~June 30, 2021, MLPCC’s regulatory net capital of ~~$5.9~~$5.7 billion exceeded the minimum requirement of ~~$1.4~~$1.5 billion.

MLPF&S provides retail services. At ~~March 31,~~June 30, 2021, MLPF&S' regulatory net capital was ~~$3.5~~$3.7 billion, which exceeded the minimum requirement of ~~$175~~$182 million.

Our European broker-dealers are regulated by non-U.S. regulators. MLI, a U.K. investment firm, is regulated by the Prudential Regulation Authority and the FCA and is subject to certain regulatory capital requirements. At ~~March 31,~~June 30, 2021, MLI’s capital resources were $33.9 billion, which exceeded the minimum Pillar 1 requirement of ~~$14.3~~$14.8 billion. BofASE, a French investment firm, is regulated by the Autorité de Contrôle Prudentiel et de Résolution and the Autorité des Marchés Financiers, and is subject to certain regulatory capital requirements. At ~~March 31,~~June 30, 2021, BofASE's capital resources were ~~$5.8~~$7.2 billion which exceeded the minimum Pillar 1 requirement of ~~$2.2~~$2.7 billion.

Liquidity Risk

Funding and Liquidity Risk Management

Our primary liquidity risk management objective is to meet expected or unexpected cash flow and collateral needs while continuing to support our businesses and customers under a range of economic conditions. To achieve that objective, we analyze and monitor our liquidity risk under expected and stressed conditions, maintain liquidity and access to diverse funding sources, including our stable deposit base, and seek to align liquidity-related incentives and risks. These liquidity risk management practices have allowed us to effectively manage the market stress from the pandemic that began in the first quarter of 2020. For more information on the effects of the pandemic, see Executive Summary – Recent Developments – COVID-19 Pandemic on page 3 herein and Item 1A. Risk Factors – Coronavirus Disease of the Corporation’s 2020 Annual Report on Form 10-K.


23~~Bank of America~~

We define liquidity as readily available assets, limited to cash and high-quality, liquid, unencumbered securities that we


						Bank of America26

can use to meet our contractual and contingent financial obligations as they arise. We manage our liquidity position through line-of-business and ALM activities, as well as through our legal entity funding strategy, on both a forward and current (including intraday) basis under both expected and stressed conditions. We believe that a centralized approach to funding and liquidity management enhances our ability to monitor liquidity requirements, maximizes access to funding sources, minimizes borrowing costs and facilitates timely responses to liquidity events. For more information regarding global funding and liquidity risk management, as well as liquidity sources, liquidity arrangements, contingency planning and credit ratings discussed below, see Liquidity Risk in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

NB Holdings Corporation

We have intercompany arrangements with certain key subsidiaries under which we transferred certain assets of Bank of America Corporation, as the parent company, which is a separate and distinct legal entity from our bank and nonbank subsidiaries, and agreed to transfer certain additional parent company assets not needed to satisfy anticipated near-term expenditures to NB Holdings Corporation, a wholly-owned holding company subsidiary (NB Holdings). The parent company is expected to continue to have access to the same flow of dividends, interest and other amounts of cash necessary to service its debt, pay dividends and perform other obligations as it would have had if it had not entered into these arrangements and transferred any assets. These arrangements support our preferred single point of entry resolution strategy, under which only the parent company would be resolved under the U.S. Bankruptcy Code.

Global Liquidity Sources and Other Unencumbered Assets

Table 1213 presents average Global Liquidity Sources (GLS) for the three months ended ~~March 31,~~June 30, 2021 and December 31, 2020.


Table 12		Average Global Liquidity Sources
Table 13							Table 13	Average Global Liquidity Sources

			Three Months Ended						Three Months Ended

(Dollars in billions)	(Dollars in billions)		March 31 2021		December 31 2020		(Dollars in billions)		June 30 2021		December 31 2020
Bank entities	Bank entities		$	858	$	773	Bank entities		$	909	$	773
Nonbank and other entities (1)	Nonbank and other entities (1)		145		170		Nonbank and other entities (1)		154		170
Total Average Global Liquidity Sources	Total Average Global Liquidity Sources		$	1,003	$	943	Total Average Global Liquidity Sources		$	1,063	$	943

(1) Nonbank includes Parent, NB Holdings and other regulated entities.

Our bank subsidiaries’ liquidity is primarily driven by deposit and lending activity, as well as securities valuation and net debt activity. Bank subsidiaries can also generate incremental liquidity by pledging a range of unencumbered loans and securities to certain Federal Home Loan Banks (FHLBs) and the Federal Reserve Discount Window. The cash we could have obtained by borrowing against this pool of specifically-identified eligible assets was ~~$294~~$300 billion and $306 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. We have established operational procedures to enable us to borrow against these assets, including regularly monitoring our total pool of eligible loans and securities collateral. Eligibility is defined in guidelines from the FHLBs and the Federal Reserve and is subject to change at their discretion. Due to regulatory restrictions, liquidity generated by the bank subsidiaries can generally be used only to fund obligations within the bank subsidiaries, and

transfers to the parent company or nonbank subsidiaries may be subject to prior regulatory approval.

Liquidity is also held in nonbank entities, including the Parent, NB Holdings and other regulated entities. Parent company and NB Holdings liquidity is typically in the form of cash deposited at BANA, which is excluded from the liquidity at bank subsidiaries, and high-quality, liquid, unencumbered securities. Liquidity held in other regulated entities, comprised primarily of broker-dealer subsidiaries, is primarily available to meet the obligations of that entity, and transfers to the parent company or to any other subsidiary may be subject to prior regulatory approval due to regulatory restrictions and minimum requirements. Our other regulated entities also hold unencumbered investment-grade securities and equities that we believe could be used to generate additional liquidity.

Table 1314 presents the composition of average GLS for the three months ended ~~March 31,~~June 30, 2021 and December 31, 2020.


Table 13		Average Global Liquidity Sources Composition
Table 14								Table 14	Average Global Liquidity Sources Composition

			Three Months Ended December 31						Three Months Ended

(Dollars in billions)	(Dollars in billions)				March 31 2021							December 31 2020	(Dollars in billions)		June 30 2021	December 31 2020
Cash on deposit	Cash on deposit		$	276		$	322	Cash on deposit		$	247		$	322
U.S. Treasury securities	U.S. Treasury securities		206			141		U.S. Treasury securities		227			141
U.S. agency securities, mortgage-backed securities, and other investment-grade securities	U.S. agency securities, mortgage-backed securities, and other investment-grade securities		502			462		U.S. agency securities, mortgage-backed securities, and other investment-grade securities		570			462
Non-U.S. government securities	Non-U.S. government securities		19			18		Non-U.S. government securities		19			18
Total Average Global Liquidity Sources	Total Average Global Liquidity Sources		$	1,003		$	943	Total Average Global Liquidity Sources		$	1,063		$	943

Our GLS are substantially the same in composition to what qualifies as High Quality Liquid Assets (HQLA) under the final U.S. Liquidity Coverage Ratio (LCR) rules. However, HQLA for purposes of calculating LCR is not reported at market value, but at a lower value that incorporates regulatory deductions and the exclusion of excess liquidity held at certain subsidiaries. The LCR is calculated as the amount of a financial institution’s unencumbered HQLA relative to the estimated net cash outflows the institution could encounter over a 30-day period of significant liquidity stress, expressed as a percentage. Our average consolidated HQLA, on a net basis, was ~~$577~~$602 billion and $584 billion for the three months ended ~~March 31,~~June 30, 2021 and December 31, 2020. For the same periods, the average consolidated LCR was 117 percent and 122 percent. Our LCR fluctuates due to normal business flows from customer activity.

Liquidity Stress Analysis

We utilize liquidity stress analysis to assist us in determining the appropriate amounts of liquidity to maintain at the parent company and our subsidiaries to meet contractual and contingent cash outflows under a range of scenarios. For more information on liquidity stress analysis, see Liquidity Risk – Liquidity Stress Analysis in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Net Stable Funding Ratio Final Rule

On October 20, 2020, the U.S. Agencies finalized the Net Stable Funding Ratio (NSFR), a rule requiring large banks to maintain a minimum level of stable funding over a one-year period. The final rule is intended to support the ability of banks to lend to households and businesses in both normal and adverse economic conditions and is complementary to the LCR rule, which focuses on short-term liquidity risks. The final rule iswas effective July 1, 2021. The U.S. NSFR ~~would apply~~applies to the Corporation on a consolidated basis and to our insured depository institutions. The Corporation is in compliance with

27Bank of America

~~depository institutions. The Corporation expects to be in compliance within~~ the final NSFR rule in the regulatory timeline provided, and ~~does~~there have not ~~expect~~been any significant impacts to the Corporation.

Diversified Funding Sources

We fund our assets primarily with a mix of deposits, and secured and unsecured liabilities through a centralized, globally coordinated funding approach diversified across products, programs, markets, currencies and investor groups. We fund a substantial portion of our lending activities through our deposits, which were ~~$1.88~~$1.91 trillion and $1.80 trillion at ~~March 31,~~June 30, 2021 and December 31, 2020.

Our trading activities in other regulated entities are primarily funded on a secured basis through securities lending and

repurchase agreements, and these amounts will vary based on customer activity and market conditions.

Long-term Debt

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, we issued ~~$13.1~~$48.2 billion of long-term debt consisting of ~~$8.1~~$36.9 billion of notes issued by Bank of America Corporation, substantially all of which was TLAC compliant, ~~$1.3~~$4.4 billion of notes issued by Bank of America, N.A. and ~~$3.7~~$6.9 billion of other debt.

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, we had total long-term debt maturities and redemptions in the aggregate of ~~$13.9~~$29.0 billion consisting of ~~$9.6~~$17.6 billion for Bank of America Corporation, ~~$922 million~~$5.4 billion for Bank of America, N.A. and ~~$3.4~~$6.0 billion of other debt. Table 1415 presents the carrying value of aggregate annual contractual maturities of long-term debt at ~~March 31,~~June 30, 2021.


Table 14		Long-term Debt by Maturity
Table 15																	Table 15	Long-term Debt by Maturity

(Dollars in millions)	(Dollars in millions)		Remainder of 2021		2022		2023		2024		2025		Thereafter		Total		(Dollars in millions)		Remainder of 2021		2022		2023		2024		2025		Thereafter		Total
Bank of America Corporation	Bank of America Corporation																Bank of America Corporation
Senior notes (1)	Senior notes (1)		$	7,920	$	9,298	$	23,670	$	21,148	$	15,365	$	105,467	$	182,868	Senior notes (1)		$	3,391	$	5,819	$	23,615	$	23,845	$	20,020	$	129,724	$	206,414
Senior structured notes	Senior structured notes		298		1,984		597		355		416		11,819		15,469		Senior structured notes		192		1,990		599		344		409		11,266		14,800
Subordinated notes	Subordinated notes		372		399		—		3,334		5,475		14,125		23,705		Subordinated notes		371		—		—		3,299		5,444		14,216		23,330
Junior subordinated notes	Junior subordinated notes		—		—		—		—		—		740		740		Junior subordinated notes		—		—		—		—		—		740		740
Total Bank of America Corporation	Total Bank of America Corporation		8,590		11,681		24,267		24,837		21,256		132,151		222,782		Total Bank of America Corporation		3,954		7,809		24,214		27,488		25,873		155,946		245,284
Bank of America, N.A.	Bank of America, N.A.																Bank of America, N.A.
Senior notes	Senior notes		750		2,275		510		—		—		8		3,543		Senior notes		—		2,945		507		—		—		3		3,455
Subordinated notes	Subordinated notes		—		—		—		—		—		1,739		1,739		Subordinated notes		—		—		—		—		—		1,794		1,794
Advances from Federal Home Loan Banks	Advances from Federal Home Loan Banks		500		3		1		—		17		74		595		Advances from Federal Home Loan Banks		500		3		1		—		17		73		594
Securitizations and other Bank VIEs (2)	Securitizations and other Bank VIEs (2)		2,461		1,258		975		4		—		56		4,754		Securitizations and other Bank VIEs (2)		1,250		1,249		999		999		—		74		4,571
Other	Other		63		17		160		1		22		59		322		Other		50		88		192		119		198		27		674
Total Bank of America, N.A.	Total Bank of America, N.A.		3,774		3,553		1,646		5		39		1,936		10,953		Total Bank of America, N.A.		1,800		4,285		1,699		1,118		215		1,971		11,088
Other debt	Other debt																Other debt
Structured Liabilities	Structured Liabilities		3,201		3,199		2,132		1,277		734		6,387		16,930		Structured Liabilities		2,872		3,964		2,273		1,563		615		6,379		17,666
Nonbank VIEs (2)	Nonbank VIEs (2)		1		—		—		—		—		531		532		Nonbank VIEs (2)		1		—		—		—		—		565		566
Other			—		—		—		—		—		14		14

Total other debt	Total other debt		3,202		3,199		2,132		1,277		734		6,932		17,476		Total other debt		2,873		3,964		2,273		1,563		615		6,944		18,232
Total long-term debt	Total long-term debt		$	15,566	$	18,433	$	28,045	$	26,119	$	22,029	$	141,019	$	251,211	Total long-term debt		$	8,627	$	16,058	$	28,186	$	30,169	$	26,703	$	164,861	$	274,604

(1) Total includes ~~$141.0~~$168.7 billion of outstanding notes that are both TLAC eligible and callable one year before their stated maturities, including ~~$6.0~~$2.5 billion during the remainder of 2021, and $15.2 billion, ~~$14.4~~$17.1 billion, ~~$11.5~~$16.1 billion and $12.9 billion during each year of 2022 through 2025, respectively, and ~~$81.0~~$104.9 billion thereafter. For more information on our TLAC eligible and callable outstanding notes, see Liquidity Risk – Diversified Funding Sources in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

(2) Represents liabilities of consolidated ~~VIEs~~variable interest entities (VIEs) included in total long-term debt on the Consolidated Balance Sheet.

Total long-term debt ~~decreased~~increased $11.7 billion to ~~$251.2~~$274.6 billion during the ~~three~~six months ended ~~March 31,~~June 30, 2021, primarily due to debt issuances, partially offset by debt maturities and redemptions and valuation ~~adjustments, partially offset by debt issuances.~~adjustments. We may, from time to time, purchase outstanding debt instruments in various transactions, depending on market conditions, liquidity and other factors. Our other regulated entities may also make markets in our debt instruments to provide liquidity for investors.

~~We may issue unsecured debt in the form of structured notes for client purposes, certain of which qualify as TLAC-eligible debt.~~ During the ~~three~~six months ended ~~March 31,~~June 30, 2021, we issued ~~$1.1~~$2.2 billion of structured notes, which are unsecured debt obligations that pay investors returns linked to other debt or equity securities, indices, currencies or commodities. These structured notes are typically issued to meet client demand, and notes with certain attributes may also be TLAC eligible. We typically hedge the returns we are obligated to pay on these liabilities with derivatives and/or investments in the underlying instruments, so that from a funding perspective, the cost is similar to our other unsecured long-term debt. We could be

required to settle certain structured note obligations for cash or other securities prior to maturity under certain circumstances, which we consider for liquidity planning purposes. We believe, however, that a portion of such borrowings will remain outstanding beyond the earliest put or redemption date.

Substantially all of our senior and subordinated debt obligations contain no provisions that could trigger a requirement for an early repayment, require additional collateral support, result in changes to terms, accelerate maturity or create additional financial obligations upon an adverse change in our credit ratings, financial ratios, earnings, cash flows or stock price. For more information on long-term debt funding, including issuances and maturities and redemptions, see Note 11 – Long-term Debt to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

We use derivative transactions to manage ~~the duration,~~ interest rate and currency risks of our borrowings, considering the characteristics of the assets they are funding. For more information on our ALM activities, see Interest Rate Risk Management for the Banking Book on page ~~41.~~45.


25~~Bank of America~~

Credit Ratings

Credit ratings and outlooks are opinions expressed by rating agencies on our creditworthiness and that of our obligations or securities, including long-term debt, short-term borrowings, preferred stock and other securities, including asset securitizations. Table 1516 presents the Corporation’s current long-term/short-term senior debt ratings and outlooks expressed by the rating agencies.


						Bank of America28

On May 24, 2021, Standard & Poor’s Global Ratings (S&P) affirmed the current ratings of the Corporation and its subsidiaries, while at the same time revising its rating outlook to Positive from Stable.

On June 7, 2021, Fitch Ratings (Fitch) upgraded the long-term senior debt ratings of the Corporation and its rated subsidiaries by one notch, to AA- and AA, respectively. Fitch also upgraded the Corporation’s short-term rating to F1+ which is now aligned with the short-term rating of its subsidiaries, including BANA. Following the upgrade, the rating outlook for the Corporation and its subsidiaries is Stable.

The current ratings and Stable outlooks for the Corporation and its subsidiaries from Moody's Investors Service ~~Standard &~~

~~Poor’s Global Ratings and Fitch Ratings~~ did not change from those disclosed in the Corporation's 2020 Annual Report on Form 10-K.

For more information on additional collateral and termination payments that could be required in connection with certain over-the-counter derivative contracts and other trading agreements in the event of a credit rating downgrade, see Note 3 – Derivatives to the Consolidated Financial Statements herein and Item 1A. Risk Factors of the Corporation’s 2020 Annual Report on Form 10-K.

Table 1516

Senior Debt Ratings

Moody’s Investors Service

Standard & Poor’s Global Ratings

Fitch Ratings

Long-term

Short-term

Outlook

Long-term

Short-term

Outlook

Long-term

Short-term

Outlook

Bank of America Corporation

P-1

Stable

A-

A-2

~~Stable~~Positive

A+ AA-

F1F1+

Stable

Bank of America, N.A.

Aa2

P-1

Stable

A+

A-1

~~Stable~~Positive

~~AA-~~AA

F1+

Stable

Bank of America Europe Designated Activity Company

A+

A-1

~~Stable~~Positive

~~AA-~~AA

F1+

Stable

Merrill Lynch, Pierce, Fenner & Smith Incorporated

A+

A-1

~~Stable~~Positive

~~AA-~~AA

F1+

Stable

BofA Securities, Inc.

A+

A-1

~~Stable~~Positive

~~AA-~~AA

F1+

Stable

Merrill Lynch International

A+

A-1

~~Stable~~Positive

~~AA-~~AA

F1+

Stable

BofA Securities Europe SA

A+

A-1

~~Stable~~Positive

~~AA-~~AA

F1+

Stable

NR = not rated

Finance Subsidiary Issuers and Parent Guarantor

BofA Finance LLC, a Delaware limited liability company, is a consolidated finance subsidiary of the Corporation that has issued and sold, and is expected to continue to issue and sell, its senior unsecured debt securities. In addition, each of BAC Capital Trust XIII and BAC Capital Trust XIV, Delaware statutory trusts, is a 100 percent owned finance subsidiary of the Corporation that has issued and sold trust preferred securities that remained outstanding at ~~March 31,~~June 30, 2021. The Corporation has fully and unconditionally guaranteed (or effectively provided for the full and unconditional guarantee of) all such securities issued by such finance subsidiaries. For more information regarding such guarantees by the Corporation, see Liquidity Risk – Finance Subsidiary Issuers and Parent Guarantor in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Credit Risk Management

For information on our credit risk management activities, see Consumer Portfolio Credit Risk Management below, Commercial Portfolio Credit Risk Management on page ~~31,~~35, Non-U.S. Portfolio on page ~~37,~~40, Allowance for Credit Losses on page ~~38,~~41, and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, the economy gained momentum as unemployment continued to decline from double-digit highs during 2020 and parts of the economy continued to open as vaccination rates increased, case levels showed improvements and restrictions generally began to ease. Individuals and businesses in the U.S. continue to receive various forms of support through economic stimulus packages enacted in 2020 and 2021. While there has been improvement, uncertainty remains about the timing and strength of the economy's recovery, which could lead to adverse impacts to credit quality metrics in future periods. For more information on how the pandemic may affect our operations, see Executive Summary – Recent Developments – COVID-19 Pandemic on page 3 and Item 1A. Risk Factors – Coronavirus Disease of the Corporation’s 2020 Annual Report on Form 10-K.

Consumer Portfolio Credit Risk Management

Credit risk management for the consumer portfolio begins with initial underwriting and continues throughout a borrower’s credit cycle. Statistical techniques in conjunction with experiential judgment are used in all aspects of portfolio management including underwriting, product pricing, risk appetite, setting credit limits, and establishing operating processes and metrics to quantify and balance risks and returns. Statistical models are built using detailed behavioral information from external sources such as credit bureaus and/or internal historical experience and are a component of our consumer credit risk management process. These models are used in part to assist in making both new and ongoing credit decisions, as well as portfolio management strategies, including authorizations and line management, collection practices and strategies, and determination of the allowance for loan and lease losses and allocated capital for credit risk.

Consumer Credit Portfolio

The economic environment improved during the ~~three~~six months ended ~~March 31,~~June 30, 2021, with the U.S. unemployment rate continuing to decline and home prices increasing. During the three and six months ended ~~March 31,~~June 30, 2021, ~~deferral activity led to an increase in nonperforming loans, while~~ net charge-offs decreased ~~$179~~$221 million and $400 million to ~~$693~~$513 million and $1.2 billion primarily due to lower credit card losses, as balance declines and the impact of government stimulus measures were partially offset by charge-offs associated with deferrals that expired in 2020. During the six months ended June 30, 2021, nonperforming loans increased due to deferral activity.

The consumer allowance for loan and lease losses decreased ~~$1.4~~$2.6 billion during the ~~three~~six months ended ~~March 31,~~June 30, 2021 to ~~$8.6~~$7.4 billion primarily due to an improved economic ~~outlook and loan balance declines.~~outlook. For more information, see Allowance for Credit Losses on page ~~38.~~41.

For more information on our accounting policies regarding delinquencies, nonperforming status, charge-offs and troubled debt restructurings (TDRs) for the consumer portfolio, as well as interest accrual policies and delinquency status for loan


29Bank of America

modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial


						~~Bank of America~~26

Statements of the Corporation’s 2020 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance

for Credit Losses to the Consolidated Financial Statements.

Table 1617 presents our outstanding consumer loans and leases, consumer nonperforming loans and accruing consumer loans past due 90 days or more.


Table 16		Consumer Credit Quality
Table 17																			Table 17	Consumer Credit Quality

			Outstandings (1)				Nonperforming						Accruing Past Due 90 Days or More								Outstandings (1)				Nonperforming						Accruing Past Due 90 Days or More

(Dollars in millions)	(Dollars in millions)		March 31 2021		December 31 2020		March 31 2021			December 31 2020			March 31 2021			December 31 2020			(Dollars in millions)		June 30 2021		December 31 2020		June 30 2021			December 31 2020			June 30 2021			December 31 2020
Residential mortgage (2)	Residential mortgage (2)		$	214,779	$	223,555	$	2,366		$	2,005		$	728		$	762		Residential mortgage (2)		$	214,324	$	223,555	$	2,343		$	2,005		$	687		$	762
Home equity	Home equity		32,078		34,311		669			649			—			—			Home equity		30,469		34,311		651			649			—			—
Credit card	Credit card		72,786		78,708		n/a			n/a			755			903			Credit card		75,599		78,708		n/a			n/a			533			903
Direct/Indirect consumer (3)	Direct/Indirect consumer (3)		91,737		91,363		56			71			25			33			Direct/Indirect consumer (3)		96,903		91,363		50			71			15			33
Other consumer	Other consumer		132		124		—			—			—			—			Other consumer		172		124		—			—			—			—
Consumer loans excluding loans accounted for under the fair value option	Consumer loans excluding loans accounted for under the fair value option		$	411,512	$	428,061	$	3,091		$	2,725		$	1,508		$	1,698		Consumer loans excluding loans accounted for under the fair value option		$	417,467	$	428,061	$	3,044		$	2,725		$	1,235		$	1,698
Loans accounted for under the fair value option (4)	Loans accounted for under the fair value option (4)		693		735														Loans accounted for under the fair value option (4)		654		735
Total consumer loans and leases	Total consumer loans and leases		$	412,205	$	428,796													Total consumer loans and leases		$	418,121	$	428,796
Percentage of outstanding consumer loans and leases (5)	Percentage of outstanding consumer loans and leases (5)		n/a		n/a		0.75		%	0.64		%	0.37		%	0.40		%	Percentage of outstanding consumer loans and leases (5)		n/a		n/a		0.73		%	0.64		%	0.30		%	0.40		%
Percentage of outstanding consumer loans and leases, excluding fully-insured loan portfolios (5)	Percentage of outstanding consumer loans and leases, excluding fully-insured loan portfolios (5)		n/a		n/a		0.77			0.65			0.20			0.22			Percentage of outstanding consumer loans and leases, excluding fully-insured loan portfolios (5)		n/a		n/a		0.75			0.65			0.14			0.22

(1)Outstandings include non-core residential mortgage of ~~$7.8~~$7.2 billion and $8.3 billion and home equity of ~~$3.8~~$3.6 billion and $4.0 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. For more information on non-core loans, see Consumer Credit Risk Management in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

(2)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At ~~March 31,~~June 30, 2021 and December 31, 2020, residential mortgage includes ~~$527~~$501 million and $537 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and ~~$201~~$186 million and $225 million of loans on which interest was still accruing.

(3)Outstandings primarily include auto and specialty lending loans and leases of ~~$45.4~~$46.4 billion and $46.4 billion, U.S. securities-based lending loans of ~~$42.4~~$46.4 billion and $41.1 billion and non-U.S. consumer loans of ~~$3.1~~$3.0 billion and $3.0 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

(4)Consumer loans accounted for under the fair value option include residential mortgage loans of ~~$275~~$257 million and $298 million and home equity loans of ~~$418~~$397 million and $437 million at ~~March 31,~~June 30, 2021 and December 31, 2020. For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.

(5)Excludes consumer loans accounted for under the fair value option. At ~~March 31,~~June 30, 2021 and December 31, 2020, ~~$12~~$13 million and $11 million of loans accounted for under the fair value option were past due 90 days or more and not accruing interest.

n/a = not applicable

Table 1718 presents net charge-offs and related ratios for consumer loans and leases.


Table 17		Consumer Net Charge-offs and Related Ratios
Table 18												Table 18	Consumer Net Charge-offs and Related Ratios

			Net Charge-offs				Net Charge-off Ratios (1)				Net Charge-offs							Net Charge-off Ratios (1)
			Three Months Ended March 31								Three Months Ended June 30			Six Months Ended June 30				Three Months Ended June 30				Six Months Ended June 30

(Dollars in millions)	(Dollars in millions)		2021		2020		2021		2020			(Dollars in millions)		2021		2020		2021		2020		2021		2020		2021		2020
Residential mortgage	Residential mortgage		$	(4)	$	(1)	(0.01)	%	—	%		Residential mortgage		$	(6)	$	(20)	$	(10)	$	(21)	(0.01)	%	(0.03)	%	(0.01)	%	(0.02)	%
Home equity	Home equity		(35)		(11)		(0.42)		(0.11)			Home equity		(24)		(14)		(59)		(25)		(0.31)		(0.14)		(0.37)		(0.13)
Credit card	Credit card		634		770		3.47		3.28			Credit card		488		665		1,122		1,435		2.67		3.10		3.07		3.19

Direct/Indirect consumer	Direct/Indirect consumer		31		40		0.14		0.18			Direct/Indirect consumer		(9)		26		22		66		(0.04)		0.12		0.05		0.15
Other consumer	Other consumer		67		74		n/m		n/m			Other consumer		64		77		131		151		n/m		n/m		n/m		n/m
Total	Total		$	693	$	872	0.67		0.75			Total		$	513	$	734	$	1,206	$	1,606	0.50		0.65		0.59		0.70

(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.

n/m = not meaningful

We believe that the presentation of information adjusted to exclude the impact of the fully-insured loan portfolio and loans accounted for under the fair value option is more representative of the ongoing operations and credit quality of the business. As a result, in the following tables and discussions of the residential mortgage and home equity portfolios, we exclude loans accounted for under the fair value option and provide information that excludes the impact of the fully-insured loan portfolio in certain credit quality statistics.

Residential Mortgage

The residential mortgage portfolio made up the largest percentage of our consumer loan portfolio at 5251 percent of consumer loans and leases at ~~March 31,~~June 30, 2021. Approximately 51 percent of the residential mortgage portfolio was in Consumer

Banking and 4142 percent was in GWIM. The remaining portion was in All Other and was comprised of loans used in our overall ALM activities, delinquent FHA loans repurchased

pursuant to our servicing agreements with the Government National Mortgage Association, as well as loans repurchased related to our representations and warranties.

Outstanding balances in the residential mortgage portfolio decreased ~~$8.8~~$9.2 billion during the ~~three~~six months ended ~~March 31,~~June 30, 2021 as paydowns were partially offset by originations.

At ~~March 31,~~June 30, 2021 and December 31, 2020, the residential mortgage portfolio included ~~$12.0~~$12.5 billion and $11.8 billion of outstanding fully-insured loans, of which ~~$2.6~~$2.5 billion and $2.8 billion had FHA insurance, with the remainder protected by Fannie Mae long-term standby agreements.


						Bank of America30

Table 1819 presents certain residential mortgage key credit statistics on both a reported basis and excluding the fully-insured loan portfolio. The following discussion presents the residential mortgage portfolio excluding the fully-insured loan portfolio.


27~~Bank of America~~


Table 18		Residential Mortgage – Key Credit Statistics
Table 19															Table 19	Residential Mortgage – Key Credit Statistics

			Reported Basis (1)						Excluding Fully-insured Loans (1)								Reported Basis (1)						Excluding Fully-insured Loans (1)

(Dollars in millions)	(Dollars in millions)		March 31 2021			December 31 2020			March 31 2021			December 31 2020			(Dollars in millions)		June 30 2021			December 31 2020			June 30 2021			December 31 2020
Outstandings	Outstandings		$	214,779		$	223,555		$	202,812		$	211,737		Outstandings		$	214,324		$	223,555		$	201,805		$	211,737
Accruing past due 30 days or more	Accruing past due 30 days or more		2,166			2,314			1,136			1,224			Accruing past due 30 days or more		1,906			2,314			909			1,224
Accruing past due 90 days or more	Accruing past due 90 days or more		728			762			—			—			Accruing past due 90 days or more		687			762			—			—
Nonperforming loans (2)	Nonperforming loans (2)		2,366			2,005			2,366			2,005			Nonperforming loans (2)		2,343			2,005			2,343			2,005
Percent of portfolio	Percent of portfolio														Percent of portfolio
Refreshed LTV greater than 90 but less than or equal to 100	Refreshed LTV greater than 90 but less than or equal to 100		1		%	2		%	1		%	1		%	Refreshed LTV greater than 90 but less than or equal to 100		1		%	2		%	1		%	1		%
Refreshed LTV greater than 100	Refreshed LTV greater than 100		1			1			1			1			Refreshed LTV greater than 100		—			1			—			1
Refreshed FICO below 620	Refreshed FICO below 620		2			2			1			1			Refreshed FICO below 620		2			2			1			1
2006 and 2007 vintages (3)	2006 and 2007 vintages (3)		3			3			3			3			2006 and 2007 vintages (3)		3			3			3			3

(1)Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option. For information on our interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(2)Includes loans that are contractually current which primarily consist of collateral-dependent TDRs, including those that have been discharged in Chapter 7 bankruptcy and loans that have not yet demonstrated a sustained period of payment performance following a TDR.

(3)These vintages of loans accounted for ~~$445~~$458 million, or 1920 percent, and $503 million, or 25 percent, of nonperforming residential mortgage loans at ~~March 31,~~June 30, 2021 and December 31, 2020.

Nonperforming outstanding balances in the residential mortgage portfolio increased ~~$361~~$338 million during the ~~three~~six months ended ~~March 31,~~June 30, 2021 primarily driven by deferral activity. Of the nonperforming residential mortgage loans at ~~March 31,~~June 30, 2021, ~~$1.3~~$1.2 billion, or 53 percent, were current on contractual payments. Loans accruing past due 30 days or more decreased ~~$88 million.~~$315 million driven by continued improvement in credit quality.

Net recoveries of $4$6 million and $10 million for the three and six months ended ~~March 31,~~June 30, 2021 remained relatively unchanged compared to the same ~~period~~periods in ~~2020.~~the prior year.

Of the ~~$202.8~~$201.8 billion in total residential mortgage loans outstanding at ~~March 31,~~June 30, 2021, as shown in Table ~~19,~~20, 28 percent were originated as interest-only loans. The outstanding balance of interest-only residential mortgage loans that have entered the amortization period was ~~$5.6~~$5.3 billion, or 10nine percent, at ~~March 31,~~June 30, 2021. Residential mortgage loans that have entered the amortization period generally ~~have~~ experienced a higher rate of early stage delinquencies and nonperforming status compared to the residential mortgage portfolio as a whole. At ~~March 31,~~June 30, 2021, ~~$113~~$66 million, or ~~two~~one percent, of outstanding interest-only residential mortgages that had entered the amortization period were accruing past due 30 days or more

compared to ~~$1.1 billion,~~$909 million, or less than one percent, for the

entire residential mortgage portfolio. In addition, at ~~March 31,~~June 30, 2021, ~~$302~~$314 million, or ~~five~~six percent, of outstanding interest-only residential mortgage loans that had entered the amortization period were nonperforming, of which $112 million were contractually current, compared to ~~$2.4~~$2.3 billion, or one percent, for the entire residential mortgage portfolio. Loans that have yet to enter the amortization period in our interest-only residential mortgage portfolio are primarily well-collateralized loans to our wealth management clients and have an interest-only period of three to ten years. Approximately 98 percent of these loans that have yet to enter the amortization period will not be required to make a fully-amortizing payment until 2022 or later.

Table 1920 presents outstandings, nonperforming loans and net charge-offs by certain state concentrations for the residential mortgage portfolio. The Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area (MSA) within California represented 15 percent and 16 percent of outstandings at ~~March 31,~~June 30, 2021 and December 31, 2020. In the New York area, the New York-Northern New Jersey-Long Island MSA made up 15 percent and 14 percent of outstandings at ~~March 31,~~June 30, 2021 and December 31, 2020.


Table 19		Residential Mortgage State Concentrations

			Outstandings (1)						Nonperforming (1)									Net Charge-offs
Table 20																											Table 20		Residential Mortgage State Concentrations

																														Outstandings (1)								Nonperforming (1)						Net Charge-offs
			March 31 2021		December 31 2020				March 31 2021				December 31 2020					Three Months Ended March 31									June 30 2021					December 31 2020				June 30 2021			December 31 2020			Three Months Ended June 30							Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)																2021			2020						(Dollars in millions)												December 31 2020				2021			2020				2021				2020
California	California		$	77,054			$	83,185			$	747			$	570				$	(2)			$	(3)						California			$	75,531				$	83,185		$	739				$	(5)			$	(8)			$	(7)			$	(11)
New York	New York		23,716		23,832				329				272					2				1						New York						23,996				23,832			361			272			—				—				2				1
Florida	Florida		12,900		13,017				193				175					(2)				(2)						Florida				13,080				13,017			173			175			(2)				(1)				(4)				(3)
Texas	Texas		8,662		8,868				92				78					—				—						Texas				8,648				8,868			86			78			—				—				—				—
New Jersey	New Jersey		8,454		8,806				112				98					—				—						New Jersey				8,415				8,806			110			98			—				—				—				—
Other	Other		72,026		74,029				893				812					(2)				3						Other				72,135				74,029			874			812			1				(11)				(1)				(8)
Residential mortgage loans	Residential mortgage loans		$	202,812	$	211,737			$	2,366			$	2,005				$	(4)			$	(1)					Residential mortgage loans				$	201,805			$	211,737		$	2,343		$	2,005		$	(6)			$	(20)			$	(10)			$	(21)
Fully-insured loan portfolio	Fully-insured loan portfolio		11,967		11,818																							Fully-insured loan portfolio				12,519				11,818

Total residential mortgage loan portfolio	Total residential mortgage loan portfolio		$	214,779	$	223,555																						Total residential mortgage loan portfolio				$	214,324			$	223,555

(1)Outstandings and nonperforming loans exclude loans accounted for under the fair value option.


31Bank of America

Home Equity

At ~~March 31,~~June 30, 2021, the home equity portfolio made up ~~eight~~seven percent of the consumer portfolio and was comprised of home equity lines of credit (HELOCs), home equity loans and reverse mortgages. HELOCs generally have an initial draw period of 10 years, and after the initial draw period ends, the loans generally

convert to 15- or 20-year amortizing loans. We no longer originate home equity loans or reverse mortgages.

At ~~March 31,~~June 30, 2021, 80 percent of the home equity portfolio was in Consumer Banking, 12 percent was in All Other and the remainder of the portfolio was primarily in GWIM. Outstanding balances in the home equity portfolio decreased ~~$2.2~~$3.8 billion


						~~Bank of America~~28

during the ~~three~~six months ended ~~March 31,~~June 30, 2021 primarily due to paydowns outpacing new originations and draws on existing

lines. Of the total home equity portfolio at ~~March 31,~~June 30, 2021 and December 31, 2020, ~~$13.2~~$12.8 billion, or 4142 percent, and $13.8 billion, or 40 percent, were in first-lien positions. At ~~March 31,~~June 30, 2021, outstanding balances in the home equity portfolio that were in a second-lien or more junior-lien position and where

we also held the first-lien loan totaled ~~$5.4~~$5.1 billion, or 17 percent of our total home equity portfolio.

Unused HELOCs totaled ~~$41.6~~$41.0 billion and $42.3 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. The HELOC utilization rate was 4241 percent and 43 percent at ~~March 31,~~June 30, 2021 and December 31, 2020.

Table 2021 presents certain home equity portfolio key credit statistics.


Table 20		Home Equity – Key Credit Statistics (1)
Table 21																Table 21		Home Equity – Key Credit Statistics (1)

(Dollars in millions)	(Dollars in millions)							March 31 2021			December 31 2020					(Dollars in millions)								June 30 2021		December 31 2020
Outstandings	Outstandings							$	32,078		$	34,311				Outstandings								$	30,469	$	34,311
Accruing past due 30 days or more (2)	Accruing past due 30 days or more (2)				169		186						Accruing past due 30 days or more (2)								167	186
Nonperforming loans (2, 3)	Nonperforming loans (2, 3)							669			649					Nonperforming loans (2, 3)								651		649
Percent of portfolio	Percent of portfolio															Percent of portfolio
Refreshed CLTV greater than 90 but less than or equal to 100	Refreshed CLTV greater than 90 but less than or equal to 100		1	%	1	%					Refreshed CLTV greater than 90 but less than or equal to 100				1		%		1	%
Refreshed CLTV greater than 100	Refreshed CLTV greater than 100				1		1						Refreshed CLTV greater than 100								1	1
Refreshed FICO below 620	Refreshed FICO below 620							3			3					Refreshed FICO below 620								3		3
2006 and 2007 vintages (4)	2006 and 2007 vintages (4)						16			16				2006 and 2007 vintages (4)									16	16

(1)Outstandings, accruing past due, nonperforming loans and percentages of the portfolio exclude loans accounted for under the fair value option. For information on our interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(2)Accruing past due 30 days or more include $21 million and $25 million and nonperforming loans include ~~$92~~$90 million and $88 million of loans where we serviced the underlying first lien at ~~March 31,~~June 30, 2021 and December 31, 2020.

(3)Includes loans that are contractually current which primarily consist of collateral-dependent TDRs, including those that have been discharged in Chapter 7 bankruptcy, junior-lien loans where the underlying first lien is 90 days or more past due, as well as loans that have not yet demonstrated a sustained period of payment performance following a TDR.

(4)These vintages of loans accounted for 35 percent and 36 percent of nonperforming home equity loans at ~~both March 31,~~June 30, 2021 and December 31, 2020.

Nonperforming outstanding balances in the home equity portfolio ~~increased $20~~remained relatively unchanged at $651 million ~~during the three months ended March 31, 2021 primarily driven by COVID-19 deferral activity~~.at June 30, 2021. Of the nonperforming home equity loans at ~~March 31,~~June 30, 2021, ~~$261~~$264 million, or 3941 percent were current on contractual payments. In addition, ~~$252~~$246 million, or 38 percent of nonperforming home equity loans were 180 days or more past due and had been written down to the estimated fair value of the collateral, less costs to sell. Accruing loans that were 30 days or more past due decreased ~~$17~~$19 million during the ~~three~~six months ended ~~March 31,~~June 30, 2021.

Net recoveries increased $10 million to $24 million and $34 million to ~~$35~~$59 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to the same ~~period~~periods in ~~2020~~2020. The increase was driven by favorable portfolio trends due ~~in part~~partly to improvement in home prices.

Of the ~~$32.1~~$30.5 billion in total home equity portfolio outstandings at ~~March 31,~~June 30, 2021, as shown in Table ~~20,~~21, 15 percent require interest-only payments. The outstanding balance of HELOCs that have reached the end of their draw period and have entered the amortization period was ~~$8.6~~$8.0 billion at ~~March 31,~~June 30, 2021. The HELOCs that have entered the amortization period have experienced a higher percentage of early stage delinquencies and nonperforming status when compared to the HELOC portfolio as a whole. At ~~March 31,~~June 30, 2021, ~~$109~~$107 million, or one percent, of outstanding HELOCs that had entered the amortization period were accruing past due 30

days or more. In addition, at ~~March 31,~~June 30, 2021, ~~$484~~$473 million, or six percent, were

nonperforming. Loans that have yet to enter the amortization period in our interest-only portfolio are primarily post-2008 vintages and generally have better credit quality than the previous vintages that had entered the amortization period. We communicate to contractually current customers more than a year prior to the end of their draw period to inform them of the potential change to the payment structure before entering the amortization period, and provide payment options to customers prior to the end of the draw period.

Although we do not actively track how many of our home equity customers pay only the minimum amount due on their home equity loans and lines, we can infer some of this information through a review of our HELOC portfolio that we service and that is still in its revolving period. During the three months ended ~~March 31,~~June 30, 2021, 1819 percent of these customers with an outstanding balance did not pay any principal on their HELOCs.

Table 2122 presents outstandings, nonperforming balances and net charge-offs by certain state concentrations for the home equity portfolio. In the New York area, the New York-Northern New Jersey-Long Island MSA made up 13 percent of the outstanding home equity portfolio at both ~~March 31,~~June 30, 2021 and December 31, 2020. The Los Angeles-Long Beach-Santa Ana MSA within California made up 11 percent of the outstanding home equity portfolio at both ~~March 31,~~June 30, 2021 and December 31, 2020.


29~~Bank of America~~


						Bank of America32


Table 21		Home Equity State Concentrations
Table 22																						Table 22	Home Equity State Concentrations

			Outstandings (1)						Nonperforming (1)					Net Charge-offs						Outstandings (1)				Nonperforming (1)							Net Charge-offs

			March 31 2021		December 31 2020				March 31 2021			December 31 2020		Three Months Ended March 31							June 30 2021			December 31 2020				June 30 2021			December 31 2020				Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)										2021			2020						(Dollars in millions)							December 31 2020						2021				2020				2021				2020
California	California		$	8,811			$	9,488				$	145	$	143	$	(12)	$	(5)						California			$	8,334		$	9,488			$	145					$	(10)			$	(4)			$	(22)			$	(9)
Florida	Florida		3,492		3,715				80			80		(6)		(3)							Florida			3,295				3,715				81				80				(5)				(2)				(11)				(5)
New Jersey	New Jersey		2,588		2,749				71			67		(2)		—						New Jersey		2,470					2,749			70				67				—				(1)				(2)				(1)
New York	New York		2,363		2,495				107			103		(3)		1						New York		2,263				2,495			100				103				2				—				(1)				1
Massachusetts	Massachusetts		1,601		1,719				34			32		1		1						Massachusetts		1,532				1,719			30				32				(1)				—				—				1
Other	Other		13,223		14,145				232			224		(13)		(5)						Other		12,575				14,145			225				224				(10)				(7)				(23)				(12)
Total home equity loan portfolio	Total home equity loan portfolio		$	32,078	$	34,311			$	669		$	649	$	(35)	$	(11)					Total home equity loan portfolio		$	30,469			$	34,311		$	651			$	649			$	(24)			$	(14)			$	(59)			$	(25)

(1)Outstandings and nonperforming loans exclude loans accounted for under the fair value option.

Credit Card

At ~~March 31,~~June 30, 2021, 97 percent of the credit card portfolio was managed in Consumer Banking with the remainder in GWIM. Outstandings in the credit card portfolio decreased ~~$5.9~~$3.1 billion during the six months ended June 30, 2021 to $75.6 billion as increased payments more than offset higher purchase volumes as spending continued to recover. Net charge-offs decreased $177 million to $488 million and $313 million to $1.1 billion during the three and six months ended ~~March 31, 2021 to $72.8 billion due to a seasonal decline in purchase volumes and higher payments. Net charge-offs decreased $136 million to $634 million during the three months ended March 31,~~June 30, 2021 compared to ~~net charge-offs of $770 million for~~ the same ~~period~~periods in 2020 asdue to balance declines and the impact of government stimulus measures, ~~were~~ partially offset by charge-offs of certain loans with deferrals that expired

~~associated with deferrals that expired~~ in 2020. Credit card loans 30 days or more past due and still accruing interest decreased ~~$372~~$713 million, and loans 90 days or more past due and still accruing interest decreased ~~$148~~$370 million primarily due to charge-offs ~~associated~~of certain loans with deferrals that expired in 2020 and the impact of government stimulus measures.

Unused lines of credit for credit card increased to ~~$346.7~~$351.1 billion at ~~March 31,~~June 30, 2021 from $342.4 billion at December 31, 2020.

Table 2223 presents certain state concentrations for the credit card portfolio.


Table 22		Credit Card State Concentrations
Table 23																										Table 23	Credit Card State Concentrations

			Outstandings						Accruing Past Due 90 Days or More (1)					Net Charge-offs										Outstandings				Accruing Past Due 90 Days or More (1)							Net Charge-offs

			March 31 2021		December 31 2020				March 31 2021			December 31 2020		Three Months Ended March 31										June 30 2021	December 31 2020			June 30 2021			December 31 2020				Three Months Ended June 30									Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)										2021							2020			(Dollars in millions)						June 30 2021						December 31 2020				2021					2020				2021					2020
California	California		$	11,632			$	12,543				$	141	$	166	$	119					$	136						California		$	12,055					$	12,543								$	94				$	119				$	213				$	255
Florida	Florida		7,144		7,666				111			135		91					101									Florida		7,321				7,666					78				135					68					85					159					186
Texas	Texas		6,112		6,499				71			87		58					65							Texas		6,327			6,499				52					87				44					56					102					121
New York	New York		4,254		4,654				57			76		54					60							New York		4,388			4,654				39					76				38					51					92					111
Washington	Washington		3,462		3,685				18			21		15					18							Washington		3,753			3,685				13					21				10					17					25					35
Other	Other		40,182		43,661				357			418		297					390							Other		41,755			43,661				253					418				234					337					531					727
Total credit card portfolio	Total credit card portfolio		$	72,786	$	78,708			$	755		$	903	$	634				$	770						Total credit card portfolio		$	75,599		$	78,708			$	533				$	903			$	488				$	665				$	1,122				$	1,435

(1)For information on our interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Direct/Indirect Consumer

At ~~March 31,~~June 30, 2021, 5048 percent of the direct/indirect portfolio was included in Consumer Banking (consumer auto and recreational vehicle lending) and 5052 percent was included in GWIM (principally securities-based lending loans). Outstandings

in the direct/indirect portfolio ~~remained relatively flat at March 31,~~increased by $5.5 billion during

the six months ended June 30, 2021 ~~at $91.7 billion.~~to $96.9 billion driven by client demand for liquidity and high asset values in the securities-based lending portfolio.

Table 2324 presents certain state concentrations for the direct/indirect consumer loan portfolio.


Table 23		Direct/Indirect State Concentrations
Table 24																													Table 24		Direct/Indirect State Concentrations

			Outstandings						Accruing Past Due 90 Days or More (1)										Net Charge-offs													Outstandings							Accruing Past Due 90 Days or More (1)								Net Charge-offs

			March 31 2021		December 31 2020				March 31 2021		December 31 2020						Three Months Ended March 31											June 30 2021				December 31 2020			June 30 2021				December 31 2020				Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)														2021			2020							(Dollars in millions)						December 31 2020						2021						2020				2021				2020

California	California		$	12,459			$	12,248					$	3	$	6							$	7		$	6							California			$	13,402			$	12,248			$	3			$	6			$	(2)			$	5			$	5	$	11
Florida	Florida		11,132		10,891				3		4								3		7									Florida			12,009			10,891				2				4				(1)				4				2				11
Texas	Texas		8,939		8,981				4		6								5		6								Texas			9,199			8,981				2				6				1				3				6				9
New York	New York		6,754		6,609				2		2								3		2								New York			7,668			6,609				—				2				—				2				3				4
New Jersey	New Jersey		3,563		3,572				1		—								—		—								New Jersey			3,841			3,572				—				—				(1)				1				(1)				1
Other	Other		48,890		49,062				12		15								13		19								Other			50,784			49,062				8				15				(6)				11				7				30
Total direct/indirect loan portfolio	Total direct/indirect loan portfolio		$	91,737	$	91,363			$	25	$	33							$	31	$	40							Total direct/indirect loan portfolio			$	96,903		$	91,363			$	15			$	33			$	(9)			$	26			$	22			$	66

33Bank of America

Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

Table 2425 presents nonperforming consumer loans, leases and foreclosed properties activity for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. During the ~~three~~six months ended ~~March 31,~~June 30, 2021, nonperforming consumer loans increased ~~$366~~$319 million to ~~$3.1~~$3.0 billion primarily driven by consumer real estate deferral activity.

At ~~March 31,~~June 30, 2021, ~~$841~~$823 million, or 27 percent of nonperforming loans were 180 days or more past due and had been written down to their estimated property value less costs to sell. In addition, at ~~March 31,~~June 30, 2021, $1.6 billion, or 51

percent of nonperforming consumer loans were modified and are now current after successful trial periods, or are current

loans classified as nonperforming loans in accordance with applicable policies.

Foreclosed properties decreased ~~$22~~$30 million during the ~~three~~six months ended ~~March 31,~~June 30, 2021 to ~~$101~~$93 million as the Corporation has ~~paused~~continued to pause formal loan foreclosure proceedings and foreclosure sales for occupied properties during 2021.

Nonperforming loans also include certain loans that have been modified in TDRs where economic concessions have been granted to borrowers experiencing financial difficulties. Nonperforming TDRs are included in Table ~~24. For more information on our loan modification programs offered in response to the pandemic, most of which are not TDRs, see~~ ~~Note 1 – Summary of Significant Accounting Principles~~ ~~to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.~~25.


Table 24		Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity
Table 25										Table 25	Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

			Three Months Ended March 31						Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021			2020				(Dollars in millions)		2021			2020			2021		2020
Nonperforming loans and leases, January 1			$	2,725		$	2,053
Nonperforming loans and leases, beginning of period										Nonperforming loans and leases, beginning of period		$	3,091		$	2,204		$	2,725	$	2,053
Additions	Additions		851			477				Additions		431			354			1,282		831
Reductions:	Reductions:									Reductions:
Paydowns and payoffs	Paydowns and payoffs		(123)			(106)				Paydowns and payoffs		(160)			(84)			(283)		(190)
Sales	Sales		(1)			(6)				Sales		(1)			(25)			(2)		(31)
Returns to performing status (1)	Returns to performing status (1)		(347)			(165)				Returns to performing status (1)		(291)			(233)			(638)		(398)
Charge-offs	Charge-offs		(12)			(27)				Charge-offs		(25)			(22)			(37)		(49)
Transfers to foreclosed properties	Transfers to foreclosed properties		(2)			(22)				Transfers to foreclosed properties		(1)			(3)			(3)		(25)

Total net additions to nonperforming loans and leases			366			151
Total nonperforming loans and leases, March 31			3,091			2,204
Foreclosed properties, March 31 (2)			101			226
Nonperforming consumer loans, leases and foreclosed properties, March 31			$	3,192		$	2,430
Total net additions/(reductions) to nonperforming loans and leases										Total net additions/(reductions) to nonperforming loans and leases		(47)			(13)			319		138
Total nonperforming loans and leases, June 30										Total nonperforming loans and leases, June 30		3,044			2,191			3,044		2,191
Foreclosed properties, June 30 (2)										Foreclosed properties, June 30 (2)		93			169			93		169
Nonperforming consumer loans, leases and foreclosed properties, June 30										Nonperforming consumer loans, leases and foreclosed properties, June 30		$	3,137		$	2,360		$	3,137	$	2,360
Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (3)	Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (3)		0.75		%	0.47		%		Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (3)		0.73		%	0.49		%
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties (3)	Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties (3)		0.78			0.52				Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties (3)		0.75			0.52

(1)Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection.

(2)Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally FHA-insured, of ~~$87~~$66 million and ~~$224~~$124 million at ~~March 31,~~June 30, 2021 and 2020.

(3)Outstanding consumer loans and leases exclude loans accounted for under the fair value option.

Table 2526 presents TDRs for the consumer real estate portfolio. Performing TDR balances are excluded from nonperforming loans and leases in Table ~~24. For more information on our loan modification programs offered in response to the pandemic, most of which are not TDRs, see~~ ~~Note 1 – Summary of Significant Accounting Principles~~ ~~to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.~~25.


Table 25		Consumer Real Estate Troubled Debt Restructurings
Table 26															Table 26	Consumer Real Estate Troubled Debt Restructurings

			March 31, 2021						December 31, 2020								June 30, 2021						December 31, 2020
(Dollars in millions)	(Dollars in millions)		Nonperforming		Performing		Total		Nonperforming		Performing		Total		(Dollars in millions)		Nonperforming		Performing		Total		Nonperforming		Performing		Total
Residential mortgage (1, 2)	Residential mortgage (1, 2)		$	1,560	$	2,752	$	4,312��	$	1,195	$	2,899	$	4,094	Residential mortgage (1, 2)		$	1,548	$	2,585	$	4,133	$	1,195	$	2,899	$	4,094
Home equity (3)	Home equity (3)		271		786		1,057		248		836		1,084		Home equity (3)		268		743		1,011		248		836		1,084
Total consumer real estate troubled debt restructurings	Total consumer real estate troubled debt restructurings		$	1,831	$	3,538	$	5,369	$	1,443	$	3,735	$	5,178	Total consumer real estate troubled debt restructurings		$	1,816	$	3,328	$	5,144	$	1,443	$	3,735	$	5,178

(1)At ~~March 31,~~June 30, 2021 and December 31, 2020, residential mortgage TDRs deemed collateral dependent totaled ~~$1.8~~$1.7 billion and $1.4 billion, and included $1.4 billion and $1.0 billion of loans classified as nonperforming and ~~$339~~$315 million and $361 million of loans classified as performing.

(2)At ~~March 31,~~June 30, 2021 and December 31, 2020, residential mortgage performing TDRs include $1.4 billion and $1.5 billion of loans that were fully-insured.

(3)At ~~March 31,~~June 30, 2021 and December 31, 2020, home equity TDRs deemed collateral dependent totaled ~~$417~~$405 million and $407 million, and include ~~$236~~$234 million and $216 million of loans classified as nonperforming and ~~$181~~$171 million and $191 million of loans classified as performing.

In addition to modifying consumer real estate loans, we work with customers who are experiencing financial difficulty by modifying credit card and other consumer loans. Credit card and other consumer loan modifications generally involve a reduction in the customer’s interest rate on the account and placing the customer on a fixed payment plan not exceeding 60 months.

Modifications of credit card and other consumer loans are made through programs utilizing direct customer contact, but may also utilize external programs. At ~~March 31,~~June 30, 2021 and December 31, 2020, our credit card and other consumer TDR portfolio was ~~$692~~$673 million and $701 million, of which ~~$609~~

$600 million and $614 million were current or less than 30 days past due under the modified terms.


						Bank of America34

Commercial Portfolio Credit Risk Management

Commercial credit risk is evaluated and managed with the goal that concentrations of credit exposure continue to be aligned with our risk appetite. We review, measure and manage concentrations of credit exposure by industry, product, geography, customer relationship and loan size. We also review, measure and manage commercial real estate loans by geographic location and property type. In addition, within our


31~~Bank of America~~

non-U.S. portfolio, we evaluate exposures by region and by country. Tables ~~30, 33~~31, 34 and 3637 summarize our concentrations. We also utilize syndications of exposure to third parties, loan sales, hedging and other risk mitigation techniques to manage the size and risk profile of the commercial credit portfolio. For more information on our industry concentrations, see Table 3334 and Commercial Portfolio Credit Risk Management – Industry Concentrations on page ~~35.~~38.

For more information on our accounting policies regarding delinquencies, nonperforming status, net charge-offs and TDRs for the commercial portfolio as well as interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Commercial Credit Portfolio

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, commercial asset quality ~~reflected signs of stabilization~~improved as the economic recovery gained momentum amid COVID-19 containment and vaccination progress. Accordingly, charge-offs, nonperforming commercial loans and reservable criticized utilized exposure declined during this period. ~~While total commitments~~Outstanding commercial loans and leases increased ~~outstanding loans decreased driven~~$1.7 billion during the six months ended June 30, 2021 due to growth in commercial and industrial, primarily in Global Markets with most of the increase in investment grade exposures. This increase was largely offset by ~~paydowns given continued market liquidity. We had $21.1 billion of PPP loans outstanding with our small business clients at March 31, 2021, which are included in~~lower U.S. small business

commercial ~~in the tables in this section.~~loans due to PPP forgiveness. For more information on PPP loans, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Credit quality of commercial real estate borrowers has begun to stabilize in many sectors as economies have ~~reopened; however,~~reopened. However, certain sectors, including hospitality and retail, while showing signs of improvement, continue to be negatively impacted due to the pandemic. Moreover, many real estate markets, while improving, are still experiencing some disruptions in demand, supply chain challenges and tenant difficulties.

The commercial allowance for loan and lease losses decreased ~~$1.2~~$2.1 billion during the ~~three~~six months ended ~~March 31,~~June 30, 2021 to ~~$7.5~~$6.7 billion ~~due~~ primarily todriven by an improved macroeconomic ~~outlook and loan balance declines.~~outlook. For more information, see Allowance for Credit Losses on page ~~38.~~41.

Total commercial utilized credit exposure decreased ~~$12.2~~$7.3 billion during the ~~three~~six months ended ~~March 31,~~June 30, 2021 to ~~$608.1~~$613.0 billion primarily driven by lower ~~loans and leases.~~derivative assets. The utilization rate for loans and leases, standby letters of credit (SBLCs) and financial guarantees, and commercial letters of credit, in the aggregate, was 55 percent at ~~March 31,~~June 30, 2021 and 57 percent at December 31, 2020.

Table 2627 presents commercial credit exposure by type for utilized, unfunded and total binding committed credit exposure. Commercial utilized credit exposure includes SBLCs and financial guarantees and commercial letters of credit that have been issued and for which we are legally bound to advance funds under prescribed conditions during a specified time period, and excludes exposure related to trading account assets. Although funds have not yet been advanced, these exposure types are considered utilized for credit risk management purposes.


Table 26		Commercial Credit Exposure by Type
Table 27															Table 27	Commercial Credit Exposure by Type

			Commercial Utilized (1)				Commercial Unfunded (2, 3, 4)				Total Commercial Committed						Commercial Utilized (1)				Commercial Unfunded (2, 3, 4)				Total Commercial Committed

(Dollars in millions)	(Dollars in millions)		March 31 2021		December 31 2020		March 31 2021		December 31 2020		March 31 2021		December 31 2020		(Dollars in millions)		June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020
Loans and leases	Loans and leases		$	490,883	$	499,065	$	423,589	$	404,740	$	914,472	$	903,805	Loans and leases		$	500,807	$	499,065	$	433,822	$	404,740	$	934,629	$	903,805
Derivative assets (5)	Derivative assets (5)		45,898		47,179		—		—		45,898		47,179		Derivative assets (5)		41,498		47,179		—		—		41,498		47,179
Standby letters of credit and financial guarantees	Standby letters of credit and financial guarantees		34,088		34,616		745		538		34,833		35,154		Standby letters of credit and financial guarantees		33,864		34,616		452		538		34,316		35,154
Debt securities and other investments	Debt securities and other investments		21,981		22,618		4,845		4,827		26,826		27,445		Debt securities and other investments		21,593		22,618		5,506		4,827		27,099		27,445
Loans held-for-sale	Loans held-for-sale		6,776		8,378		14,818		9,556		21,594		17,934		Loans held-for-sale		6,784		8,378		21,411		9,556		28,195		17,934
Operating leases	Operating leases		6,292		6,424		—		—		6,292		6,424		Operating leases		6,020		6,424		—		—		6,020		6,424
Commercial letters of credit	Commercial letters of credit		1,030		855		297		280		1,327		1,135		Commercial letters of credit		1,235		855		742		280		1,977		1,135
Other	Other		1,166		1,168		—		—		1,166		1,168		Other		1,229		1,168		—		—		1,229		1,168
Total	Total		$	608,114	$	620,303	$	444,294	$	419,941	$	1,052,408	$	1,040,244	Total		$	613,030	$	620,303	$	461,933	$	419,941	$	1,074,963	$	1,040,244

(1)Commercial utilized exposure includes loans of $6.3 billion and $5.9 billion and issued letters of credit with a notional amount of ~~$79~~$80 million and $89 million accounted for under the fair value option at ~~March 31,~~June 30, 2021 and December 31, 2020.

(2)Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional amount of ~~$4.5~~$5.2 billion and $3.9 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

(3)Excludes unused business card lines, which are not legally binding.

(4)Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.9 billion and $10.5 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

(5)Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of ~~$35.3~~$32.3 billion and $42.5 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of ~~$39.0~~$37.1 billion and $39.3 billion at ~~March 31,~~June 30, 2021 and December 31, 2020, which consists primarily of other marketable securities.

35Bank of America

~~Outstanding commercial loans and leases decreased $8.2 billion during the three months ended March 31, 2021 primarily driven by repayments.~~ Nonperforming commercial loans decreased ~~$156~~$364 million and commercial reservable criticized

utilized exposure decreased ~~$4.4~~$9.8 billion, which was broad-based across

industries. Table 2728 presents our commercial loans and leases portfolio and related credit quality information at ~~March 31,~~June 30, 2021 and December 31, 2020.


Table 27		Commercial Credit Quality
Table 28															Table 28	Commercial Credit Quality

			Outstandings				Nonperforming				Accruing Past Due 90 Days or More						Outstandings				Nonperforming				Accruing Past Due 90 Days or More

(Dollars in millions)	(Dollars in millions)		March 31 2021		December 31 2020		March 31 2021		December 31 2020		March 31 2021		December 31 2020		(Dollars in millions)		June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020
Commercial and industrial:	Commercial and industrial:														Commercial and industrial:
U.S. commercial	U.S. commercial		$	283,229	$	288,728	$	1,228	$	1,243	$	99	$	228	U.S. commercial		$	291,120	$	288,728	$	1,060	$	1,243	$	172	$	228
Non-U.S. commercial	Non-U.S. commercial		91,335		90,460		342		418		4		10		Non-U.S. commercial		98,150		90,460		275		418		19		10
Total commercial and industrial	Total commercial and industrial		374,564		379,188		1,570		1,661		103		238		Total commercial and industrial		389,270		379,188		1,335		1,661		191		238
Commercial real estate	Commercial real estate		58,764		60,364		354		404		63		6		Commercial real estate		59,606		60,364		404		404		—		6
Commercial lease financing	Commercial lease financing		16,359		17,098		80		87		20		25		Commercial lease financing		15,768		17,098		81		87		24		25
			449,687		456,650		2,004		2,152		186		269				464,644		456,650		1,820		2,152		215		269
U.S. small business commercial (1)	U.S. small business commercial (1)		34,886		36,469		67		75		98		115		U.S. small business commercial (1)		29,867		36,469		43		75		69		115
Commercial loans excluding loans accounted for under the fair value option	Commercial loans excluding loans accounted for under the fair value option		484,573		493,119		$	2,071	$	2,227	$	284	$	384	Commercial loans excluding loans accounted for under the fair value option		494,511		493,119		$	1,863	$	2,227	$	284	$	384
Loans accounted for under the fair value option (2)	Loans accounted for under the fair value option (2)		6,310		5,946										Loans accounted for under the fair value option (2)		6,296		5,946
Total commercial loans and leases	Total commercial loans and leases		$	490,883	$	499,065									Total commercial loans and leases		$	500,807	$	499,065

(1)Includes card-related products.

(2)Commercial loans accounted for under the fair value option include U.S. commercial of ~~$4.2~~$4.4 billion and $2.9 billion and non-U.S. commercial of ~~$2.1~~$1.9 billion and $3.0 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.

Table 2829 presents net charge-offs and related ratios for our commercial loans and leases for the three and six months ended ~~March 31,~~June 30, 2021 and 2020.


Table 28		Commercial Net Charge-offs and Related Ratios
Table 29													Table 29	Commercial Net Charge-offs and Related Ratios

			Net Charge-offs				Net Charge-off Ratios (1)		Net Charge-offs						Net Charge-off Ratios (1)
			Three Months Ended March 31								Three Months Ended June 30	Six Months Ended June 30					Three Months Ended June 30				Six Months Ended June 30

(Dollars in millions)	(Dollars in millions)		2021		2020			2021		2020			(Dollars in millions)		2021		2020		2021		2020		2021		2020		2021		2020
Commercial and industrial:	Commercial and industrial:												Commercial and industrial:
U.S. commercial	U.S. commercial		$	12	$	163		0.02	%	0.21	%		U.S. commercial		$	(31)	$	219	$	(19)	$	382	(0.04)	%	0.26	%	(0.01)	%	0.24	%
Non-U.S. commercial	Non-U.S. commercial		26		1			0.12		—			Non-U.S. commercial		14		32		40		33		0.06		0.12		0.09		0.06
Total commercial and industrial	Total commercial and industrial		38		164			0.04		0.16			Total commercial and industrial		(17)		251		21		415		(0.02)		0.22		0.01		0.19
Commercial real estate	Commercial real estate		11		6			0.07		0.04			Commercial real estate		17		57		28		63		0.11		0.35		0.09		0.20
Commercial lease financing	Commercial lease financing		—		5			—		0.10			Commercial lease financing		—		31		—		36		—		0.66		—		0.38
			49		175			0.04		0.14					—		339		49		514		—		0.25		0.02		0.20
U.S. small business commercial	U.S. small business commercial		81		75			0.89		1.95			U.S. small business commercial		82		73		163		148		0.98		0.96		0.93		1.29
Total commercial	Total commercial		$	130	$	250		0.11		0.19			Total commercial		$	82	$	412	$	212	$	662	0.07		0.29		0.09		0.25

(1)Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.

Table 2930 presents commercial reservable criticized utilized exposure by loan type. Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories as defined by regulatory authorities. Total commercial reservable criticized utilized exposure decreased ~~$4.4~~$9.8 billion during the ~~three~~six months ended ~~March 31,~~June 30, 2021, which was broad-based across industries. At ~~March 31,~~June 30, 2021 and December 31, 2020, 8284 percent and 79 percent of commercial reservable criticized utilized exposure was secured.


Table 29		Commercial Reservable Criticized Utilized Exposure (1, 2)
Table 30											Table 30	Commercial Reservable Criticized Utilized Exposure (1, 2)

(Dollars in millions)	(Dollars in millions)		March 31, 2021				December 31, 2020				(Dollars in millions)		June 30, 2021				December 31, 2020
Commercial and industrial:	Commercial and industrial:										Commercial and industrial:
U.S. commercial	U.S. commercial		$	18,208	5.85	%	$	21,388	6.83	%	U.S. commercial		$	14,903	4.66	%	$	21,388	6.83	%
Non-U.S. commercial	Non-U.S. commercial		4,384		4.53		5,051		5.03		Non-U.S. commercial		3,559		3.44		5,051		5.03
Total commercial and industrial	Total commercial and industrial		22,592		5.53		26,439		6.40		Total commercial and industrial		18,462		4.36		26,439		6.40
Commercial real estate	Commercial real estate		9,959		16.43		10,213		16.42		Commercial real estate		8,898		14.51		10,213		16.42
Commercial lease financing	Commercial lease financing		693		4.24		714		4.18		Commercial lease financing		733		4.65		714		4.18
			33,244		6.85		37,366		7.59				28,093		5.61		37,366		7.59
U.S. small business commercial	U.S. small business commercial		1,039		2.98		1,300		3.56		U.S. small business commercial		785		2.63		1,300		3.56
Total commercial reservable criticized utilized exposure	Total commercial reservable criticized utilized exposure		$	34,283	6.59		$	38,666	7.31		Total commercial reservable criticized utilized exposure		$	28,878	5.45		$	38,666	7.31

(1)Total commercial reservable criticized utilized exposure includes loans and leases of ~~$32.6~~$27.4 billion and $36.6 billion and commercial letters of credit of ~~$1.7~~$1.5 billion and $2.1 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

(2)Percentages are calculated as commercial reservable criticized utilized exposure divided by total commercial reservable utilized exposure for each exposure category.


33~~Bank of America~~


						Bank of America36

Commercial and Industrial

Commercial and industrial loans include U.S. commercial and non-U.S. commercial portfolios.

U.S. Commercial

At ~~March 31,~~June 30, 2021, 6361 percent of the U.S. commercial loan portfolio, excluding small business, was managed in Global Banking, 2021 percent in Global Markets, 1516 percent in GWIM (loans that provide financing for asset purchases, business investments and other liquidity needs for high net worth clients) and the remainder primarily in Consumer Banking. U.S. commercial loans ~~including fair value option loans, decreased $4.2~~increased $2.4 billion during the ~~three~~six months ended ~~March 31,~~June 30, 2021 driven by Global ~~Banking~~Markets. Reservable criticized utilized exposure decreased ~~$3.2~~$6.5 billion, which was broad-based across industries.

Non-U.S. Commercial

At ~~March 31,~~June 30, 2021, 7772 percent of the non-U.S. commercial loan portfolio was managed in Global Banking and 2328 percent in Global Markets. Non-U.S. commercial loans ~~including fair value option loans, was relatively flat~~increased $7.7 billion during the ~~three~~six months ended ~~March 31, 2021.~~June 30, 2021 primarily in Global Markets. For information on the non-U.S. commercial portfolio, see Non-U.S. Portfolio on page ~~37.~~40.

Commercial Real Estate

Commercial real estate primarily includes commercial loans secured by non-owner-occupied real estate and is dependent on the sale or lease of the real estate as the primary source of repayment. Outstanding loans declined by ~~$1.6 billion~~$758 million during the ~~three~~six months ended ~~March 31,~~June 30, 2021 as paydowns exceeded new originations. The portfolio remains diversified across property types and geographic regions. California represented the largest state concentration at 24 percent and 23 percent of the commercial real estate portfolio at ~~both March 31,~~June 30, 2021 and December 31, 2020. The commercial real estate portfolio is predominantly managed in Global Banking and consists of loans made primarily to public and private developers, and commercial real estate firms.

For the three and six months ended ~~March 31,~~June 30, 2021 and 2020, we continued to see low default rates and varying degrees of improvement in the portfolio. We use a number of proactive risk mitigation initiatives to reduce adversely rated exposure in the commercial real estate portfolio, including transfers of deteriorating exposures tofor management by independent special asset officers and the pursuit of loan restructurings or asset sales to achieve the best results for our customers and the Corporation.

Table 3031 presents outstanding commercial real estate loans by geographic region, based on the geographic location of the collateral, and by property type.


Table 30		Outstanding Commercial Real Estate Loans
Table 31							Table 31	Outstanding Commercial Real Estate Loans

(Dollars in millions)	(Dollars in millions)		March 31 2021		December 31 2020		(Dollars in millions)		June 30 2021		December 31 2020
By Geographic Region	By Geographic Region						By Geographic Region
California	California		$	13,671	$	14,028	California		$	14,178	$	14,028
Northeast	Northeast		11,579		11,628		Northeast		11,949		11,628
Southwest	Southwest		7,824		8,551		Southwest		7,715		8,551
Southeast	Southeast		6,637		6,588		Southeast		6,434		6,588
Florida	Florida		4,401		4,294		Florida		4,455		4,294
Illinois							Illinois		2,675		2,594
Midwest	Midwest		2,921		3,483		Midwest		2,569		3,483
Illinois			2,676		2,594
Midsouth	Midsouth		2,308		2,370		Midsouth		2,367		2,370
Northwest	Northwest		1,697		1,634		Northwest		1,588		1,634
Non-U.S.	Non-U.S.		2,976		3,187		Non-U.S.		3,764		3,187
Other ~~(1)~~	Other ~~(1)~~		2,074		2,007		Other ~~(1)~~		1,912		2,007
Total outstanding commercial real estate loans	Total outstanding commercial real estate loans		$	58,764	$	60,364	Total outstanding commercial real estate loans		$	59,606	$	60,364
By Property Type	By Property Type						By Property Type
Non-residential	Non-residential						Non-residential
Office	Office		$	17,333	$	17,667	Office		$	17,517	$	17,667
Industrial / Warehouse	Industrial / Warehouse		8,312		8,330		Industrial / Warehouse		8,903		8,330
Multi-family rental	Multi-family rental		7,178		7,051		Multi-family rental		7,649		7,051
Hotels / Motels	Hotels / Motels		7,100		7,226		Hotels / Motels		6,725		7,226
Shopping centers / Retail	Shopping centers / Retail		7,057		7,931		Shopping centers / Retail		6,624		7,931
Unsecured	Unsecured		2,310		2,336		Unsecured		2,694		2,336
Multi-use	Multi-use		1,428		1,460		Multi-use		1,442		1,460

Other	Other		6,635		7,146		Other		6,643		7,146
Total non-residential	Total non-residential		57,353		59,147		Total non-residential		58,197		59,147
Residential	Residential		1,411		1,217		Residential		1,409		1,217
Total outstanding commercial real estate loans	Total outstanding commercial real estate loans		$	58,764	$	60,364	Total outstanding commercial real estate loans		$	59,606	$	60,364

~~(1)~~Includes unsecured loans to real estate investment trusts and national home builders whose portfolios of properties span multiple geographic regions and properties in the states of Colorado, Utah, Hawaii, Wyoming and Montana.

U.S. Small Business Commercial

The U.S. small business commercial loan portfolio is comprised of small business card loans and small business loans primarily managed in Consumer Banking, and includes ~~$21.1~~$15.7 billion and $22.7 billion of PPP loans outstanding at ~~March 31,~~June 30, 2021 and December 31, 2020. The decline of $7.0 billion in PPP loans during the six months ended June 30, 2021 was due to repayment of the loans by the Small Business Administration under the terms of the program. Excluding PPP, credit card-related products were 51 percent and 50 percent of the U.S.

small business commercial portfolio at ~~both March 31,~~June 30, 2021 and December 31, 2020. Of the U.S. small business commercial net charge-offs, 90100 percent and 95 percent were

credit card-related products for ~~both of~~ the three and six months ended ~~March 31,~~June 30, 2021 compared to 95 percent and 92 percent for the same periods in 2020.

Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity

Table 3132 presents the nonperforming commercial loans, leases and foreclosed properties activity during the three and six


37Bank of America

months ended ~~March 31,~~June 30, 2021 and 2020. Nonperforming loans do not include loans accounted for under the fair value option. During the ~~three~~six months ended ~~March 31,~~June 30, 2021, nonperforming commercial loans and leases decreased ~~$156~~$364 million to ~~$2.1~~


						~~Bank of America~~34

$1.9 billion. At ~~March 31,~~June 30, 2021, 8278 percent of commercial nonperforming loans, leases and foreclosed properties were

secured and 5659 percent were contractually current. Commercial nonperforming loans were carried at approximately 8588 percent

of their unpaid principal balance, as the carrying value of these loans has been reduced to the estimated collateral value less costs to sell.


Table 31		Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2)
Table 32										Table 32	Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2)

			Three Months Ended March 31						Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021			2020				(Dollars in millions)		2021			2020			2021		2020
Nonperforming loans and leases, January 1			$	2,227		$	1,499
Nonperforming loans and leases, beginning of period										Nonperforming loans and leases, beginning of period		$	2,071		$	1,852		$	2,227	$	1,499
Additions	Additions		472			781				Additions		503			889			975		1,670

Reductions:	Reductions:									Reductions:
Paydowns	Paydowns		(312)			(212)				Paydowns		(264)			(177)			(576)		(389)
Sales	Sales		(22)			(16)				Sales		(77)			(10)			(99)		(26)
Returns to performing status (3)	Returns to performing status (3)		(28)			(16)				Returns to performing status (3)		(59)			(8)			(87)		(24)
Charge-offs	Charge-offs		(78)			(184)				Charge-offs		(108)			(344)			(186)		(528)

Transfers to loans held-for-sale	Transfers to loans held-for-sale		(188)			—				Transfers to loans held-for-sale		(203)			—			(391)		—
Total net additions (decreases) to nonperforming loans and leases			(156)			353
Total nonperforming loans and leases, March 31			2,071			1,852
Total net additions (reductions) to nonperforming loans and leases										Total net additions (reductions) to nonperforming loans and leases		(208)			350			(364)		703
Total nonperforming loans and leases, June 30										Total nonperforming loans and leases, June 30		1,863			2,202			1,863		2,202

Foreclosed properties, March 31			36			49
Nonperforming commercial loans, leases and foreclosed properties, March 31			$	2,107		$	1,901
Foreclosed properties, June 30										Foreclosed properties, June 30		31			49			31		49
Nonperforming commercial loans, leases and foreclosed properties, June 30										Nonperforming commercial loans, leases and foreclosed properties, June 30		$	1,894		$	2,251		$	1,894	$	2,251
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)	Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)		0.43		%	0.32		%		Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)		0.38		%	0.41		%
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)	Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)		0.43			0.33				Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)		0.38			0.42

(1)Balances do not include nonperforming loans held-for-sale of ~~$384~~$348 million and ~~$223~~$151 million at ~~March 31,~~June 30, 2021 and 2020.

(2)Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.

(3)Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. TDRs are generally classified as performing after a sustained period of demonstrated payment performance.

(4)Outstanding commercial loans exclude loans accounted for under the fair value option.

Table 3233 presents our commercial TDRs by product type and performing status. U.S. small business commercial TDRs are comprised of renegotiated small business card loans and small business loans. The renegotiated small business card loans are

not classified as nonperforming as they are charged off no later than the end of the month in which the loan becomes 180 days

past due. ~~For more information on our loan modification programs offered in response to the pandemic, most of which are not TDRs, see~~ ~~Note 1 – Summary of Significant Accounting Principles~~ ~~to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.~~


Table 32		Commercial Troubled Debt Restructurings
Table 33															Table 33	Commercial Troubled Debt Restructurings

			March 31, 2021						December 31, 2020								June 30, 2021						December 31, 2020
(Dollars in millions)	(Dollars in millions)		Nonperforming		Performing		Total		Nonperforming		Performing		Total		(Dollars in millions)		Nonperforming		Performing		Total		Nonperforming		Performing		Total
Commercial and industrial:	Commercial and industrial:														Commercial and industrial:
U.S. commercial	U.S. commercial		$	484	$	694	$	1,178	$	509	$	850	$	1,359	U.S. commercial		$	483	$	702	$	1,185	$	509	$	850	$	1,359
Non-U.S. commercial	Non-U.S. commercial		106		464		570		49		119		168		Non-U.S. commercial		72		37		109		49		119		168
Total commercial and industrial	Total commercial and industrial		590		1,158		1,748		558		969		1,527		Total commercial and industrial		555		739		1,294		558		969		1,527
Commercial real estate	Commercial real estate		156		—		156		137		—		137		Commercial real estate		121		453		574		137		—		137
Commercial lease financing	Commercial lease financing		17		1		18		42		2		44		Commercial lease financing		37		—		37		42		2		44
			763		1,159		1,922		737		971		1,708				713		1,192		1,905		737		971		1,708
U.S. small business commercial	U.S. small business commercial		—		33		33		—		29		29		U.S. small business commercial		—		35		35		—		29		29
Total commercial troubled debt restructurings	Total commercial troubled debt restructurings		$	763	$	1,192	$	1,955	$	737	$	1,000	$	1,737	Total commercial troubled debt restructurings		$	713	$	1,227	$	1,940	$	737	$	1,000	$	1,737

Industry Concentrations

Table 3334 presents commercial committed and utilized credit exposure by industry. For information on net notional credit protection purchased to hedge funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures, see Commercial Portfolio Credit Risk Management – Risk Mitigation.

Our commercial credit exposure is diversified across a broad range of industries. Total commercial committed exposure increased ~~$12.2~~$34.7 billion, or ~~one~~three percent, during the ~~three~~six months ended ~~March 31,~~June 30, 2021 to $1.1 trillion. The increase in commercial committed exposure was concentrated in ~~the Telecommunication services, Finance companies,~~ Asset managers and funds, ~~and Software~~Finance companies, Healthcare equipment and services and Media industry sectors. Increases were partially offset by decreased exposure to the Government and public education and ~~Capital goods~~Vehicle dealers industry sectors.

For information on industry limits, see Commercial Portfolio Credit Risk Management – Industry Concentrations in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Asset managers and funds, our largest industry concentration with committed exposure of ~~$106.7~~$118.6 billion, increased ~~$5.1~~$18.3 billion, or ~~five~~18 percent, during the ~~three~~six months ended ~~March 31,~~June 30, 2021.

Real estate, our second largest industry concentration with committed exposure of ~~$90.6~~$92.9 billion, ~~decreased $1.8~~increased $1.2 billion, or ~~two~~one percent, during the ~~three~~six months ended ~~March 31,~~June 30, 2021. For more information on the commercial real estate and related portfolios, see Commercial Portfolio Credit Risk Management – Commercial Real Estate on page ~~34.~~37.

Capital goods, our third largest industry concentration with committed exposure of ~~$78.4~~$84.2 billion, ~~decreased $2.6~~increased $3.4 billion, or ~~three~~four percent, during the ~~three~~six months ended ~~March 31,~~June 30, 2021.


						Bank of America38

Given the widespread impact of the pandemic on the U.S. and global economy, a number of industries have been and may


35~~Bank of America~~

continue to be adversely impacted. We continue to monitor all industries, particularly higher risk industries that are

experiencing or could experience a more significant impact to their financial condition. The impact of the pandemic has also placed significant stress on global demand for oil, resulting in a steep decline in prices for much of 2020. However, oil prices rebounded late in the fourth quarter of 2020 and early in the

first quarter of 2021. Our energy-related committed exposure decreased $558 million, or two percent, during the three months ended March 31, 2021 to $32.4 billion, driven by declines in energy equipment and services as well as oil, gas and consumable fuels. For more information on the pandemic, see Executive Summary – Recent Developments – COVID-19 Pandemic on page 3.


Table 33		Commercial Credit Exposure by Industry (1)
Table 34											Table 34	Commercial Credit Exposure by Industry (1)

			Commercial Utilized				Total Commercial Committed (2)						Commercial Utilized				Total Commercial Committed (2)

(Dollars in millions)	(Dollars in millions)		March 31 2021		December 31 2020		March 31 2021		December 31 2020		(Dollars in millions)		June 30 2021		December 31 2020		June 30 2021		December 31 2020
Asset managers and funds	Asset managers and funds		$	68,863	$	68,093	$	106,681	$	101,540	Asset managers and funds		$	78,769	$	67,360	$	118,559	$	100,296
Real estate (3)	Real estate (3)		66,477		69,267		90,604		92,414		Real estate (3)		66,707		68,967		92,913		91,730
Capital goods	Capital goods		37,231		39,911		78,372		80,959		Capital goods		38,906		39,807		84,180		80,815
Finance companies	Finance companies		49,483		46,948		76,246		70,004		Finance companies		52,314		46,948		78,342		70,004
Healthcare equipment and services	Healthcare equipment and services		32,022		33,759		56,458		57,880		Healthcare equipment and services		32,112		33,488		62,851		57,540
Materials											Materials		23,641		24,516		50,630		50,757
Government and public education	Government and public education		39,093		41,669		51,381		56,212		Government and public education		38,295		41,669		50,468		56,212
Materials			23,506		24,548		50,739		50,792
Retailing	Retailing		24,843		24,749		48,962		49,710		Retailing		23,388		23,700		48,318		48,306
Consumer services	Consumer services		29,881		32,000		47,503		48,026		Consumer services		28,438		31,993		48,055		47,997
Food, beverage and tobacco	Food, beverage and tobacco		22,701		22,871		44,861		44,628		Food, beverage and tobacco		22,569		22,755		46,276		44,417
Commercial services and supplies	Commercial services and supplies		21,187		21,154		37,830		38,149		Commercial services and supplies		20,027		21,107		39,836		38,092
Individuals and trusts											Individuals and trusts		28,785		24,727		38,329		34,036
Transportation											Transportation		21,842		23,126		32,210		33,082
Energy	Energy		13,602		13,936		32,425		32,983		Energy		13,223		13,930		31,830		32,974
Transportation			22,044		23,426		32,394		33,444
Utilities	Utilities		11,681		12,387		29,481		29,234		Utilities		13,044		12,387		31,777		29,234
Individuals and trusts			22,029		18,784		29,150		25,881
Software and services			11,690		11,709		27,198		23,647
Media	Media		12,906		13,144		25,832		24,677		Media		12,318		12,632		29,157		24,120
Technology hardware and equipment	Technology hardware and equipment		9,846		10,515		25,034		24,796		Technology hardware and equipment		9,446		9,935		25,208		24,196
Software and services											Software and services		8,213		10,853		21,991		22,524
Global commercial banks											Global commercial banks		20,143		20,544		21,791		22,595
Consumer durables and apparel											Consumer durables and apparel		8,587		9,232		19,731		20,223
Telecommunication services	Telecommunication services		8,752		9,411		24,422		15,605		Telecommunication services		8,983		9,411		18,456		15,605
Global commercial banks			21,232		20,751		23,380		22,922
Automobiles and components	Automobiles and components		11,858		10,956		20,528		20,765		Automobiles and components		9,340		10,792		17,022		20,575
Consumer durables and apparel			8,507		9,232		19,484		20,223
Pharmaceuticals and biotechnology	Pharmaceuticals and biotechnology		4,617		5,217		17,410		16,349		Pharmaceuticals and biotechnology		4,934		4,830		16,099		15,901
Vehicle dealers	Vehicle dealers		13,487		15,028		16,877		18,696		Vehicle dealers		10,821		15,028		14,852		18,696
Insurance	Insurance		6,208		5,921		14,783		13,491		Insurance		5,123		5,772		13,759		13,277
Food and staples retailing	Food and staples retailing		5,499		5,209		10,585		11,810		Food and staples retailing		5,354		5,209		10,716		11,795
Religious and social organizations											Religious and social organizations		4,042		4,646		5,828		6,597
Financial markets infrastructure (clearinghouses)	Financial markets infrastructure (clearinghouses)		4,271		4,939		7,275		8,648		Financial markets infrastructure (clearinghouses)		3,666		4,939		5,779		8,648
Religious and social organizations			4,598		4,769		6,513		6,759

Total commercial credit exposure by industry	Total commercial credit exposure by industry		$	608,114	$	620,303	$	1,052,408	$	1,040,244	Total commercial credit exposure by industry		$	613,030	$	620,303	$	1,074,963	$	1,040,244

(1)Includes U.S. small business commercial exposure.

(2)Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.9 billion and $10.5 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

(3)Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the primary business activity of the borrowers or counterparties using operating cash flows and primary source of repayment as key factors.

Risk Mitigation

We purchase credit protection to cover the funded portion as well as the unfunded portion of certain credit exposures. To lower the cost of obtaining our desired credit protection levels, we may add credit exposure within an industry, borrower or counterparty group by selling protection.

At ~~March 31,~~June 30, 2021 and December 31, 2020, net notional credit default protection purchased in our credit derivatives portfolio to hedge our funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures, was ~~$4.3~~$3.6 billion and $4.2 billion. WeFor these same positions, we recorded net losses of ~~$36~~$32 million and $68 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to net ~~gains~~losses of ~~$229~~$231 million and $2 million for the same ~~period~~periods in ~~2020 for these same positions.~~2020. The gains and losses on these instruments were offset by gains and losses on the related

~~related~~ exposures. The Value-at-Risk (VaR) results for these exposures are included in the fair value option portfolio information in Table ~~39.~~40. For more information, see Trading Risk Management on page ~~40.~~43.

Tables 3435 and 3536 present the maturity profiles and the credit exposure debt ratings of the net credit default protection portfolio at ~~March 31,~~June 30, 2021 and December 31, 2020.


Table 34		Net Credit Default Protection by Maturity
Table 35							Table 35	Net Credit Default Protection by Maturity

			March 31 2021		December 31 2020				June 30 2021		December 31 2020
Less than or equal to one year	Less than or equal to one year		62	%	65	%	Less than or equal to one year		47	%	65	%
Greater than one year and less than or equal to five years	Greater than one year and less than or equal to five years		37		34		Greater than one year and less than or equal to five years		51		34
Greater than five years	Greater than five years		1		1		Greater than five years		2		1
Total net credit default protection	Total net credit default protection		100	%	100	%	Total net credit default protection		100	%	100	%

39Bank of America


Table 35		Net Credit Default Protection by Credit Exposure Debt Rating
Table 36											Table 36	Net Credit Default Protection by Credit Exposure Debt Rating

			Net Notional (1)		Percent of Total		Net Notional (1)		Percent of Total				Net Notional (1)		Percent of Total		Net Notional (1)		Percent of Total

(Dollars in millions)	(Dollars in millions)		March 31, 2021				December 31, 2020				(Dollars in millions)		June 30, 2021				December 31, 2020
Ratings (2, 3)	Ratings (2, 3)										Ratings (2, 3)

A	A		$	(315)	7.3	%	$	(250)	6.0	%	A		$	(345)	9.5	%	$	(250)	6.0	%
BBB	BBB		(1,815)		42.1		(1,856)		44.5		BBB		(1,329)		36.7		(1,856)		44.5
BB	BB		(1,327)		30.8		(1,363)		32.7		BB		(1,133)		31.3		(1,363)		32.7
B	B		(656)		15.2		(465)		11.2		B		(603)		16.7		(465)		11.2
CCC and below	CCC and below		(163)		3.8		(182)		4.4		CCC and below		(157)		4.3		(182)		4.4
NR (4)	NR (4)		(33)		0.8		(54)		1.2		NR (4)		(52)		1.5		(54)		1.2
Total net credit default protection	Total net credit default protection		$	(4,309)	100.0	%	$	(4,170)	100.0	%	Total net credit default protection		$	(3,619)	100.0	%	$	(4,170)	100.0	%

(1)Represents net credit default protection purchased.

(2)Ratings are refreshed on a quarterly basis.

(3)Ratings of BBB- or higher are considered to meet the definition of investment grade.

(4)NR is comprised of index positions held and any names that have not been rated.

For more information on credit derivatives and counterparty credit risk valuation adjustments, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Non-U.S. Portfolio

Our non-U.S. credit and trading portfolios are subject to country risk. We define country risk as the risk of loss from unfavorable economic and political conditions, currency fluctuations, social instability and changes in government policies. A risk management framework is in place to measure, monitor and manage non-U.S. risk and exposures. In addition to the direct risk of doing business in a country, we also are exposed to indirect country risks (e.g., related to the collateral received on secured financing transactions or related to client clearing activities). These indirect exposures are managed in the normal course of business through credit, market and operational risk governance rather than through country risk governance. For more information on our non-U.S. credit and trading portfolios, see Non-U.S. Portfolio in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Table 3637 presents our 20 largest non-U.S. country exposures at ~~March 31,~~June 30, 2021. These exposures accounted for 91 percent and 90 percent of our total non-U.S. exposure at ~~March 31,~~June 30, 2021 and December 31, 2020. Net country exposure for these 20 countries increased ~~$23.1~~$37.9 billion ~~during~~in the ~~three~~six months ended ~~March 31,~~June 30, 2021. The majority of the increase was due to higher deposits with central banks in Japan, Switzerland and Ireland, increased exposure with central clearing counterparts in the ~~central bank of Japan~~U.K. and increased corporate exposure in Canada.


Table 36		Top 20 Non-U.S. Countries Exposure
Table 37																			Table 37	Top 20 Non-U.S. Countries Exposure

(Dollars in millions)	(Dollars in millions)		Funded Loans and Loan Equivalents		Unfunded Loan Commitments		Net Counterparty Exposure		Securities/ Other Investments		Country Exposure at March 31 2021		Hedges and Credit Default Protection		Net Country Exposure at March 31 2021		Increase (Decrease) from December 31 2020		(Dollars in millions)		Funded Loans and Loan Equivalents		Unfunded Loan Commitments		Net Counterparty Exposure		Securities/ Other Investments		Country Exposure at June 30 2021		Hedges and Credit Default Protection		Net Country Exposure at June 30 2021		Increase (Decrease) from December 31 2020
United Kingdom	United Kingdom		$	32,750	$	17,379	$	6,245	$	3,585	$	59,959	$	(1,172)	$	58,787	$	(685)	United Kingdom		$	33,009	$	19,674	$	8,601	$	4,733	$	66,017	$	(1,105)	$	64,912	$	5,440
Germany	Germany		30,236		9,504		2,020		3,296		45,056		(1,543)		43,513		(1,390)		Germany		27,174		10,533		1,914		2,351		41,972		(1,336)		40,636		(4,267)
Canada	Canada		8,071		16,428		1,725		2,743		28,967		(376)		28,591		7,457		Canada		8,804		12,903		1,931		4,140		27,778		(387)		27,391		6,257
Japan	Japan		19,846		1,228		2,688		1,852		25,614		(632)		24,982		7,486		Japan		19,776		1,121		1,971		4,847		27,715		(503)		27,212		9,716
France	France		12,356		8,806		1,256		3,013		25,431		(1,025)		24,406		3,615		France		12,078		9,455		1,149		2,225		24,907		(856)		24,051		3,260
Australia	Australia		6,764		5,378		485		2,603		15,230		(323)		14,907		1,820		Australia		7,726		4,709		739		2,800		15,974		(281)		15,693		2,606
China	China		10,315		269		1,152		1,322		13,058		(311)		12,747		(673)		China		10,895		591		1,233		1,698		14,417		(427)		13,990		570
Switzerland																			Switzerland		8,976		3,382		395		320		13,073		(186)		12,887		5,992
Brazil	Brazil		5,707		780		411		4,231		11,129		(291)		10,838		545		Brazil		5,949		786		887		3,980		11,602		(180)		11,422		1,129
Netherlands	Netherlands		5,498		4,042		671		803		11,014		(424)		10,590		906		Netherlands		5,637		3,857		815		800		11,109		(434)		10,675		991
Singapore	Singapore		4,844		335		431		4,057		9,667		(54)		9,613		331		Singapore		4,154		250		338		4,518		9,260		(62)		9,198		(84)
India	India		5,427		180		493		2,649		8,749		(173)		8,576		765		India		5,559		174		450		2,448		8,631		(163)		8,468		657
Ireland																			Ireland		5,830		2,184		94		260		8,368		(24)		8,344		4,179
South Korea	South Korea		5,253		883		448		2,075		8,659		(154)		8,505		(46)		South Korea		5,313		873		521		1,655		8,362		(124)		8,238		(313)
Switzerland			4,922		2,921		436		267		8,546		(271)		8,275		1,380
Spain																			Spain		2,648		2,995		277		1,072		6,992		(271)		6,721		1,905
Hong Kong	Hong Kong		4,791		565		534		1,154		7,044		(27)		7,017		480		Hong Kong		4,708		235		388		1,161		6,492		(59)		6,433		(104)
Mexico																			Mexico		3,715		1,682		172		802		6,371		(285)		6,086		(201)
Italy	Italy		2,325		1,415		540		2,746		7,026		(711)		6,315		623		Italy		2,508		1,540		544		2,120		6,712		(629)		6,083		391
Ireland			4,416		1,035		113		343		5,907		(19)		5,888		1,723
Mexico			3,264		1,268		174		1,179		5,885		(360)		5,525		(762)
Belgium	Belgium		2,906		1,303		297		615		5,121		(144)		4,977		10		Belgium		2,725		1,454		299		282		4,760		(204)		4,556		(411)
Spain			2,655		1,009		248		702		4,614		(290)		4,324		(492)
Sweden			1,190		903		217		434		2,744		(159)		2,585		29
United Arab Emirates																			United Arab Emirates		2,414		116		46		306		2,882		(12)		2,870		183
Total top 20 non-U.S. countries exposure	Total top 20 non-U.S. countries exposure		$	173,536	$	75,631	$	20,584	$	39,669	$	309,420	$	(8,459)	$	300,961	$	23,122	Total top 20 non-U.S. countries exposure		$	179,598	$	78,514	$	22,764	$	42,518	$	323,394	$	(7,528)	$	315,866	$	37,896

Our largest non-U.S. country exposure at ~~March 31,~~June 30, 2021 was the U.K. with net exposure of ~~$58.8~~$64.9 billion, which represents a ~~$685 million decrease~~$5.4 billion increase from December 31, 2020. Our second largest non-U.S. country exposure was Germany with net exposure of ~~$43.5~~$40.6 billion at ~~March 31,~~June 30, 2021, a ~~$1.4~~$4.3 billion decrease from December 31, 2020.

In light of the global pandemic, we are monitoring our non-U.S. exposure closely, particularly in countries where restrictions on certain activities, in an attempt to contain the spread and impact of the virus, have affected and will likely continue to adversely affect economic activity. We are managing the impact to our international business operations as part of our overall

response framework and are taking actions to manage exposure


						Bank of America40

carefully in impacted regions while supporting the needs of our clients. While vaccines have become more widely available in certain countries, the magnitude and duration of the pandemic and its full impact on the global economy continue to be highly uncertain. The impact of the pandemic could have an adverse impact on the global economy for a prolonged period of time. For more information on the pandemic, see Item 1A. Risk Factors – Coronavirus Disease and Executive Summary – Recent Developments – COVID-19 Pandemic of the Corporation’s 2020 Annual Report on Form 10-K.


37~~Bank of America~~

Allowance for Credit Losses

The allowance for credit losses decreased by ~~$2.7~~$4.9 billion from December 31, 2020 to ~~$18.0~~$15.8 billion at ~~March 31,~~June 30, 2021, which included a ~~$1.2~~$2.2 billion reserve decrease related to the commercial portfolio and a ~~$1.4~~$2.7 billion reserve decrease related to the consumer portfolio. The decreases were primarily driven

by an improved macroeconomic ~~outlook and loan balance declines.~~outlook.

~~The table below~~Table 38 presents an allocation of the allowance for credit losses by product type for ~~March 31,~~June 30, 2021 and December 31, 2020.


Table 37		Allocation of the Allowance for Credit Losses by Product Type
Table 38																	Table 38	Allocation of the Allowance for Credit Losses by Product Type

			Amount		Percent of Total		Percent of Loans and Leases Outstanding (1)			Amount			Percent of Total		Percent of Loans and Leases Outstanding (1)				Amount		Percent of Total		Percent of Loans and Leases Outstanding (1)		Amount		Percent of Total		Percent of Loans and Leases Outstanding (1)
(Dollars in millions)	(Dollars in millions)		March 31, 2021						December 31, 2020			(Dollars in millions)		June 30, 2021									December 31, 2020
Allowance for loan and lease losses	Allowance for loan and lease losses																Allowance for loan and lease losses
Residential mortgage	Residential mortgage		$	428	2.65	%	0.20	%		$	459		2.44	%	0.21	%	Residential mortgage		$	394	2.80	%	0.18	%	$	459	2.44	%	0.21	%
Home equity	Home equity		261		1.61		0.81			399			2.12		1.16		Home equity		203		1.44		0.67		399		2.12		1.16
Credit card	Credit card		7,278		45.00		10.00			8,420			44.79		10.70		Credit card		6,234		44.22		8.25		8,420		44.79		10.70

Direct/Indirect consumer	Direct/Indirect consumer		617		3.82		0.67			752			4.00		0.82		Direct/Indirect consumer		555		3.93		0.57		752		4.00		0.82
Other consumer	Other consumer		51		0.32		n/m			41			0.22		n/m		Other consumer		46		0.33		n/m		41		0.22		n/m
Total consumer	Total consumer		8,635		53.40		2.10			10,071			53.57		2.35		Total consumer		7,432		52.72		1.78		10,071		53.57		2.35
U.S. commercial (2)	U.S. commercial (2)		4,131		25.55		1.30			5,043			26.82		1.55		U.S. commercial (2)		3,529		25.04		1.10		5,043		26.82		1.55
Non-U.S. commercial	Non-U.S. commercial		1,154		7.14		1.26			1,241			6.60		1.37		Non-U.S. commercial		1,091		7.74		1.11		1,241		6.60		1.37
Commercial real estate	Commercial real estate		2,148		13.29		3.66			2,285			12.15		3.79		Commercial real estate		1,956		13.88		3.28		2,285		12.15		3.79
Commercial lease financing	Commercial lease financing		100		0.62		0.61			162			0.86		0.95		Commercial lease financing		87		0.62		0.55		162		0.86		0.95
Total commercial	Total commercial		7,533		46.60		1.55			8,731			46.43		1.77		Total commercial		6,663		47.28		1.35		8,731		46.43		1.77
Allowance for loan and lease losses	Allowance for loan and lease losses		16,168		100.00	%	1.80			18,802			100.00	%	2.04		Allowance for loan and lease losses		14,095		100.00	%	1.55		18,802		100.00	%	2.04

Reserve for unfunded lending commitments	Reserve for unfunded lending commitments		1,829							1,878							Reserve for unfunded lending commitments		1,687						1,878
Allowance for credit losses	Allowance for credit losses		$	17,997						$	20,680						Allowance for credit losses		$	15,782					$	20,680

(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.

(2)Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.4 billion and $1.5 billion at ~~both March 31,~~June 30, 2021 and December 31, 2020.

n/m = not meaningful

Net charge-offs for the three and six months ended ~~March 31,~~June 30, 2021 were ~~$823~~$595 million and $1.4 billion compared to $1.1 billion and $2.3 billion for the same ~~period~~periods in 2020 driven by ~~a decrease in credit card and commercial losses.~~decreases across most products. The provision for credit losses decreased ~~$6.6~~$6.7 billion ~~reflecting~~to a ~~$1.9~~$1.6 billion ~~provision~~benefit, and $13.4 billion to a $3.5 billion benefit, for the three and six months ended ~~March 31,~~June 30, 2021 compared to the same ~~period~~periods in 2020. The allowance for credit losses ~~included~~had a reserve release of ~~$2.7~~$4.9 billion for the ~~three~~six months ended ~~March 31,~~June 30, 2021, primarily driven by an improved macroeconomic ~~outlook and loan balance declines.~~outlook. The provision for credit losses for the consumer portfolio, including unfunded lending commitments, decreased ~~$2.8~~$3.3 billion to a ~~$756~~$707 million ~~provision~~benefit and $6.2 billion to a $1.5 billion benefit for the three and six months ended ~~March 31,~~June 30, 2021 compared to the ~~same~~

~~period~~same periods in 2020. The provision for credit losses for the commercial portfolio, including unfunded lending commitments, decreased ~~$3.8~~$3.4 billion to a ~~$1.1~~$914 million benefit and $7.2 billion ~~provision~~to a $2.0 billion benefit for the three and six months ended ~~March 31,~~June 30, 2021 compared to the same ~~period~~periods in 2020.

~~The following table~~Table 39 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. For more information on the Corporation’s credit loss accounting policies and activity related to the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles of the Corporation's 2020 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

41Bank of America


Table 38		Allowance for Credit Losses
Table 39										Table 39	Allowance for Credit Losses

			Three Months Ended March 31						Three Months Ended June 30			Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021			2020				(Dollars in millions)		2021			2020			2021			2020

Allowance for loan and lease losses, January 1	Allowance for loan and lease losses, January 1		$	18,802		$	12,358			Allowance for loan and lease losses, January 1		$	16,168		$	15,766		$	18,802		$	12,358
Loans and leases charged off	Loans and leases charged off									Loans and leases charged off
Residential mortgage	Residential mortgage		(9)			(11)				Residential mortgage		(11)			(12)			(20)			(23)
Home equity	Home equity		(6)			(24)				Home equity		(19)			(15)			(25)			(39)
Credit card	Credit card		(800)			(924)				Credit card		(661)			(818)			(1,461)			(1,742)
Direct/Indirect consumer	Direct/Indirect consumer		(102)			(116)				Direct/Indirect consumer		(68)			(86)			(170)			(202)
Other consumer	Other consumer		(75)			(81)				Other consumer		(70)			(81)			(145)			(162)
Total consumer charge-offs	Total consumer charge-offs		(992)			(1,156)				Total consumer charge-offs		(829)			(1,012)			(1,821)			(2,168)
U.S. commercial (1)	U.S. commercial (1)		(156)			(267)				U.S. commercial (1)		(194)			(324)			(350)			(591)
Non-U.S. commercial	Non-U.S. commercial		(26)			(1)				Non-U.S. commercial		(16)			(33)			(42)			(34)
Commercial real estate	Commercial real estate		(12)			(7)				Commercial real estate		(22)			(57)			(34)			(64)
Commercial lease financing	Commercial lease financing		—			(7)				Commercial lease financing		—			(33)			—			(40)
Total commercial charge-offs	Total commercial charge-offs		(194)			(282)				Total commercial charge-offs		(232)			(447)			(426)			(729)
Total loans and leases charged off	Total loans and leases charged off		(1,186)			(1,438)				Total loans and leases charged off		(1,061)			(1,459)			(2,247)			(2,897)
Recoveries of loans and leases previously charged off	Recoveries of loans and leases previously charged off									Recoveries of loans and leases previously charged off
Residential mortgage	Residential mortgage		13			12				Residential mortgage		17			32			30			44
Home equity	Home equity		41			35				Home equity		43			29			84			64
Credit card	Credit card		166			154				Credit card		173			153			339			307
Direct/Indirect consumer	Direct/Indirect consumer		71			76				Direct/Indirect consumer		77			60			148			136
Other consumer	Other consumer		8			7				Other consumer		6			4			14			11
Total consumer recoveries	Total consumer recoveries		299			284				Total consumer recoveries		316			278			615			562
U.S. commercial (2)	U.S. commercial (2)		63			29				U.S. commercial (2)		143			32			206			61

Non-U.S. commercial										Non-U.S. commercial		2			1			2			1
Commercial real estate	Commercial real estate		1			1				Commercial real estate		5			—			6			1
Commercial lease financing	Commercial lease financing		—			2				Commercial lease financing		—			2			—			4
Total commercial recoveries	Total commercial recoveries		64			32				Total commercial recoveries		150			35			214			67
Total recoveries of loans and leases previously charged off	Total recoveries of loans and leases previously charged off		363			316				Total recoveries of loans and leases previously charged off		466			313			829			629
Net charge-offs	Net charge-offs		(823)			(1,122)				Net charge-offs		(595)			(1,146)			(1,418)			(2,268)

Provision for loan and lease losses	Provision for loan and lease losses		(1,811)			4,525				Provision for loan and lease losses		(1,480)			4,775			(3,291)			9,300
Other	Other		—			5				Other		2			(6)			2			(1)

Allowance for loan and lease losses, March 31			16,168			15,766
Allowance for loan and lease losses, June 30										Allowance for loan and lease losses, June 30		14,095			19,389			14,095			19,389

Reserve for unfunded lending commitments, January 1	Reserve for unfunded lending commitments, January 1		1,878			1,123				Reserve for unfunded lending commitments, January 1		1,829			1,360			1,878			1,123
Provision for unfunded lending commitments	Provision for unfunded lending commitments		(49)			236				Provision for unfunded lending commitments		(141)			342			(190)			578
Other	Other		—			1				Other		(1)			—			(1)			1
Reserve for unfunded lending commitments, March 31			1,829			1,360
Allowance for credit losses, March 31			$	17,997		$	17,126
Reserve for unfunded lending commitments, June 30										Reserve for unfunded lending commitments, June 30		1,687			1,702			1,687			1,702
Allowance for credit losses, June 30										Allowance for credit losses, June 30		$	15,782		$	21,091		$	15,782		$	21,091

Loan and allowance ratios (3):	Loan and allowance ratios (3):									Loan and allowance ratios (3):
Loans and leases outstanding at March 31			$	896,085		$	1,041,769
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at March 31			1.80		%	1.51		%
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at March 31			2.10			1.95
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at March 31			1.55			1.16
Loans and leases outstanding at June 30										Loans and leases outstanding at June 30		$	911,978		$	989,768		$	911,978		$	989,768
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at June 30										Allowance for loan and lease losses as a percentage of total loans and leases outstanding at June 30		1.55		%	1.96		%	1.55		%	1.96		%
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at June 30										Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at June 30		1.78			2.43			1.78			2.43
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at June 30										Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at June 30		1.35			1.57			1.35			1.57
Average loans and leases outstanding	Average loans and leases outstanding		$	901,587		$	981,652			Average loans and leases outstanding		$	900,863		$	1,022,294		$	901,223		$	1,001,972
Annualized net charge-offs as a percentage of average loans and leases outstanding	Annualized net charge-offs as a percentage of average loans and leases outstanding		0.37		%	0.46		%		Annualized net charge-offs as a percentage of average loans and leases outstanding		0.27		%	0.45		%	0.32		%	0.46		%

Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at March 31			313			389
Ratio of the allowance for loan and lease losses at March 31 to net charge-offs			4.85			3.49
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at June 30										Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at June 30		287			441			287			441
Ratio of the allowance for loan and lease losses at June 30 to net charge-offs										Ratio of the allowance for loan and lease losses at June 30 to net charge-offs		5.90			4.21			4.93			4.25

Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31 (4)			$	8,710		$	8,552
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31 (4)			144		%	178		%
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4)										Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4)		$	7,532		$	10,517		$	7,532		$	10,517
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4)										Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4)		134		%	202		%	134		%	202		%

(1)Includes U.S. small business commercial charge-offs of ~~$101~~$102 million and ~~$86~~$203 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to $84 million and $170 million for the same periods in 2020.

(2)Includes U.S. small business commercial recoveries of $20 million and ~~$11~~$40 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to $11 million and $22 million for the same periods in 2020.

(3)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.

(4)Primarily includes amounts related to credit card and unsecured consumer lending portfolios in Consumer Banking.

Market Risk Management

For more information on our market risk management process, see Market Risk Management in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Market risk is the risk that changes in market conditions may adversely impact the value of assets or liabilities, or

otherwise negatively impact earnings. This risk is inherent in the financial instruments associated with our operations, primarily


39~~Bank of America~~

within our Global Markets segment. We are also exposed to these risks in other areas of the Corporation (e.g., our ALM activities). In the event of market stress, these risks could have a material impact on our results.


						Bank of America42

We have been affected, and may continue to be affected, by market stress resulting from the pandemic that began in the first quarter of 2020. For more information, see Executive Summary – Recent Developments – COVID-19 Pandemic on page 3.3 and Item 1A. Risk Factors – Coronavirus Disease of the Corporation’s 2020 Annual Report on Form 10-K.

Trading Risk Management

To evaluate risks in our trading activities, we focus on the actual and potential volatility of revenues generated by individual positions as well as portfolios of positions. VaR is a common statistic used to measure market risk. Our primary VaR statistic is equivalent to a 99 percent confidence level, which means that for a VaR with a one-day holding period, there should not be losses in excess of VaR, on average, 99 out of 100 trading days.

Table 3940 presents the total market-based portfolio VaR, which is the combination of the total covered positions (and less liquid trading positions) portfolio and the fair value option

portfolio. For more information on the market risk VaR for trading activities, see Trading Risk Management in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

The total market-based portfolio VaR results in Table 3940 include market risk to which we are exposed from all business segments, excluding credit valuation adjustment (CVA), DVA and related hedges. The majority of this portfolio is within the Global Markets segment.

Table 3940 presents period-end, average, high and low daily trading VaR for the three months ended June 30, 2021, March 31, 2021 ~~December 31, 2020~~ and ~~March 31,~~June 30, 2020 using a 99 percent confidence ~~level.~~level, as well as average daily trading VaR for the six months ended June 30, 2021 and 2020. The amounts disclosed in Table 3940 and Table 4041 align to the view of covered positions used in the Basel 3 capital calculations. Foreign exchange and commodity positions are always considered covered positions, regardless of trading or banking treatment for the trade, except for structural foreign currency positions that are excluded with prior regulatory approval.

The average of total covered positions and less liquid trading positions portfolio VaR ~~decreased~~increased for the three months ended ~~March 31,~~June 30, 2021 compared to the prior quarter primarily due to an increase in interest rate risk, partially offset by an increased diversification benefit between asset classes.


Table 39		Market Risk VaR for Trading Activities
Table 40																									Table 40		Market Risk VaR for Trading Activities

			Three Months Ended																											Three Months Ended																									Six Months Ended June 30
									Six Months Ended June 30
			March 31, 2021											December 31, 2020							March 31, 2020										June 30, 2021								March 31, 2021									June 30, 2020															Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		Period End		Average		High (1)							Period End	Average		High (1)		Low (1)		Period End		Average			High (1)		Low (1)				(Dollars in millions)	Period End		Average		High (1)			Low (1)		Period End		Average		High (1)			Low (1)		Period End		Average						High (1)			Low (1)					2021 Average				2020 Average
Foreign exchange	Foreign exchange		$	13	$	10	$	17		$	5	$	8		$	6	$	10	$	4	$	8	$	5		$	11	$	2			Foreign exchange	$	15	$	16	$	20		$	10	$	13	$	10	$	17		$	5	$	5	$	7			$	11		$	4			$	13			$	7
Interest rate	Interest rate		53		35		53			18		30			20		31		11		13		21			39		13				Interest rate	37		58		80			30		53		35		53			18		17		15			23						7					47				18
Credit	Credit		58		64		82			53		79			68		84		52		86		35			86		25				Credit	77		73		84			58		58		64		82			53		64		65			91						48				69				50
Equity	Equity		22		24		35			19		20			19		33		14		26		36			162		19				Equity	23		23		27			20		22		24		35			19		16		24			43						15			24				30
Commodities	Commodities		4		9		28			4		4			6		9		3		8		6			10		4				Commodities	9		8		12			4		4		9		28			4		7		7			12						5			9				7
Portfolio diversification	Portfolio diversification		(96)		(90)		—			—		(72)			(68)		—		—		(82)		(57)			—		—				Portfolio diversification	(106)		(119)		—			—		(96)		(90)		—			—		(39)		(60)			—						—			(106)				(59)
Total covered positions portfolio	Total covered positions portfolio		54		52		85			34		69			51		84		31		59		46			171		27				Total covered positions portfolio	55		59		73			47		54		52		85			34		70		58			85						28			56				53
Impact from less liquid exposures	Impact from less liquid exposures		9		22		—			—		52			30		—		—		39		2			—		—				Impact from less liquid exposures	23		18		—			—		9		22		—			—		30		23			—						—			20				12
Total covered positions and less liquid trading positions portfolio	Total covered positions and less liquid trading positions portfolio		63		74		125			47		121			81		129		49		98		48			169		30				Total covered positions and less liquid trading positions portfolio	78		77		119			52		63		74		125			47		100		81			111						47			76				65
Fair value option loans	Fair value option loans		48		56		64			37		52			62		70		51		75		16			78		7				Fair value option loans	50		50		55			42		48		56		64			37		56		67			84						55			53				42
Fair value option hedges	Fair value option hedges		15		13		16			11		11			12		13		11		13		11			16		9				Fair value option hedges	14		16		17			14		15		13		16			11		15		15			17						12			15				13
Fair value option portfolio diversification	Fair value option portfolio diversification		(33)		(24)		—			—		(17)			(19)		—		—		(13)		(11)			—		—				Fair value option portfolio diversification	(34)		(37)		—			—		(33)		(24)		—			—		(36)		(31)			—						—			(31)				(21)
Total fair value option portfolio	Total fair value option portfolio		30		45		53			30		46			55		64		46		75		16			75		9				Total fair value option portfolio	30		29		31			24		30		45		53			30		35		51			86						34			37				34
Portfolio diversification	Portfolio diversification		(19)		(1)		—			—		(4)			(18)		—		—		(21)		(11)			—		—				Portfolio diversification	(14)		(9)		—			—		(19)		(1)		—			—		(16)		(12)			—						—			(5)				(12)
Total market-based portfolio	Total market-based portfolio		$	74	$	118	169			62		$	163		$	118	164		92		$	152	$	53		171		32				Total market-based portfolio	$	94	$	97	146			64		$	74	$	118	169			62		$	119	$	120		159						76			$	108			$	87

(1)The high and low for each portfolio may have occurred on different trading days than the high and low for the components. Therefore the impact from less liquid exposures and the amount of portfolio diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant.

The graph below presents the daily covered positions and less liquid trading positions portfolio VaR for the previous five quarters, corresponding to the data in Table ~~39.~~40.

43Bank of America

Additional VaR statistics produced within our single VaR model are provided in Table 4041 at the same level of detail as in Table ~~39.~~40. Evaluating VaR with additional statistics allows for an increased understanding of the risks in the portfolio as the historical market data used in the VaR calculation does not

necessarily follow a predefined statistical distribution. Table 4041 presents average trading VaR statistics at 99 percent and 95

percent confidence levels for the three months ended June 30, 2021, March 31, 2021 ~~December 31, 2020~~ and March 31, 2020. The increase in VaR for the 99 percent confidence level for the three months ended March 31, 2021 was primarily due to pandemic-related market volatility, which impacted the 99 percent VaR average more severely than the 95 percent VaR average compared to the same period inJune 30, 2020.


Table 40		Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics
Table 41															Table 41	Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics

			Three Months Ended														Three Months Ended
			March 31, 2021				December 31, 2020				March 31, 2020						June 30, 2021				March 31, 2021				June 30, 2020
(Dollars in millions)	(Dollars in millions)		99 percent		95 percent		99 percent		95 percent		99 percent		95 percent		(Dollars in millions)		99 percent		95 percent		99 percent		95 percent		99 percent		95 percent
Foreign exchange	Foreign exchange		$	10	$	6	$	6	$	4	$	5	$	4	Foreign exchange		$	16	$	9	$	10	$	6	$	7	$	4
Interest rate	Interest rate		35		17		20		10		21		13		Interest rate		58		28		35		17		15		6
Credit	Credit		64		18		68		19		35		18		Credit		73		21		64		18		65		18
Equity	Equity		24		12		19		9		36		21		Equity		23		12		24		12		24		12
Commodities	Commodities		9		4		6		2		6		4		Commodities		8		4		9		4		7		4
Portfolio diversification	Portfolio diversification		(90)		(34)		(68)		(24)		(57)		(34)		Portfolio diversification		(119)		(44)		(90)		(34)		(60)		(25)
Total covered positions portfolio	Total covered positions portfolio		52		23		51		20		46		26		Total covered positions portfolio		59		30		52		23		58		19
Impact from less liquid exposures	Impact from less liquid exposures		22		3		30		3		2		1		Impact from less liquid exposures		18		2		22		3		23		2
Total covered positions and less liquid trading positions portfolio	Total covered positions and less liquid trading positions portfolio		74		26		81		23		48		27		Total covered positions and less liquid trading positions portfolio		77		32		74		26		81		21
Fair value option loans	Fair value option loans		56		14		62		16		16		7		Fair value option loans		50		11		56		14		67		15
Fair value option hedges	Fair value option hedges		13		7		12		6		11		7		Fair value option hedges		16		9		13		7		15		8
Fair value option portfolio diversification	Fair value option portfolio diversification		(24)		(6)		(19)		(5)		(11)		(7)		Fair value option portfolio diversification		(37)		(10)		(24)		(6)		(31)		(12)
Total fair value option portfolio	Total fair value option portfolio		45		15		55		17		16		7		Total fair value option portfolio		29		10		45		15		51		11
Portfolio diversification	Portfolio diversification		(1)		(8)		(18)		(7)		(11)		(6)		Portfolio diversification		(9)		(6)		(1)		(8)		(12)		(7)
Total market-based portfolio	Total market-based portfolio		$	118	$	33	$	118	$	33	$	53	$	28	Total market-based portfolio		$	97	$	36	$	118	$	33	$	120	$	25

Backtesting

The accuracy of the VaR methodology is evaluated by backtesting, which compares the daily VaR results, utilizing a one-day holding period, against a comparable subset of trading revenue. For more information on our backtesting process, see Trading Risk Management – Backtesting in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

During the three and six months ended ~~March 31,~~June 30, 2021, there were no days where this subset of trading revenue had losses that exceeded our total covered portfolio VaR, utilizing a one-day holding period.

Total Trading-related Revenue

Total trading-related revenue, excluding brokerage fees, and CVA, DVA and funding valuation adjustment gains (losses), represents the total amount earned from trading positions, including market-based net interest income, which are taken in a diverse range of financial instruments and markets. For more information, see Trading Risk Management – Total Trading-related Revenue in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

The following histogram is a graphic depiction of trading volatility and illustrates the daily level of trading-related revenue for the three months ended ~~March 31,~~June 30, 2021 compared to the three months ended ~~December~~March 31, ~~2020.~~2021. During the three months ended June 30, 2021, positive trading-related revenue was recorded for 100 percent of the trading days, of which 77 percent were daily trading gains of over $25 million. This

compares to the three months ended March 31, 2021 where positive trading-related revenue was recorded for 98 percent of the trading days, of which 94 percent were daily trading gains of over $25 million, and the largest loss was $24 million. This compares to the three months ended December 31, 2020 where positive trading-related revenue was recorded for 97 percent of the trading days, of which 74 percent were daily trading gains of over $25 million, and the largest loss was $6 million.

Trading Portfolio Stress Testing

Because the very nature of a VaR model suggests results can exceed our estimates and it is dependent on a limited historical window, we also stress test our portfolio using scenario analysis. This analysis estimates the change in the value of our trading portfolio that may result from abnormal market movements. For more information, see Trading Risk Management – Trading Portfolio Stress Testing in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.


						Bank of America44

Interest Rate Risk Management for the Banking Book

The following discussion presents net interest income for banking book activities. For more information, see Interest Rate Risk Management for the Banking Book in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

Table 4142 presents the spot and 12-month forward rates used in our baseline forecasts at ~~March 31,~~June 30, 2021 and December 31, 2020.


41~~Bank of America~~


Table 41		Forward Rates
Table 42									Table 42	Forward Rates

			March 31, 2021								June 30, 2021
			Federal Funds		Three-month LIBOR		10-Year Swap				Federal Funds		Three-month LIBOR		10-Year Swap
Spot rates	Spot rates		0.25	%	0.19	%	1.78	%	Spot rates		0.25	%	0.15	%	1.44	%
12-month forward rates	12-month forward rates		0.25		0.24		1.95		12-month forward rates		0.25		0.27		1.65

			December 31, 2020								December 31, 2020
Spot rates	Spot rates		0.25	%	0.24	%	0.93	%	Spot rates		0.25	%	0.24	%	0.93	%
12-month forward rates	12-month forward rates		0.25		0.19		1.06		12-month forward rates		0.25		0.19		1.06

Table 4243 shows the pretax impact to forecasted net interest income over the next 12 months from ~~March 31,~~June 30, 2021 and December 31, 2020 resulting from instantaneous parallel and non-parallel shocks to the market-based forward curve. Periodically we evaluate the scenarios presented so that they are meaningful in the context of the current rate environment. The interest rate scenarios also assume U.S. dollar rates are floored at zero.

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, the decrease in asset sensitivity of our balance sheet to Up-rate and Down-rate scenarios was primarily due to ALM activity and an increase in long-end rates. We continue to be asset sensitive to a parallel upward move in interest rates with the majority of that impact coming from the short end of the yield curve. Additionally, higher interest rates impact the fair value of debt securities and, accordingly, for debt securities classified as AFS, may adversely affect accumulated OCI and thus capital levels under the Basel 3 capital rules. Under instantaneous upward parallel shifts, the near-term adverse impact to Basel 3 capital is reduced over time by offsetting positive impacts to net interest income. For more information on Basel 3, see Capital Management – Regulatory Capital on page ~~19.~~22.


Table 42		Estimated Banking Book Net Interest Income Sensitivity to Curve Changes
Table 43												Table 43		Estimated Banking Book Net Interest Income Sensitivity to Curve Changes

			Short Rate (bps)	Long Rate (bps)													Short Rate (bps)				Long Rate (bps)
									Short Rate (bps)		Long Rate (bps)
(Dollars in millions)	(Dollars in millions)				March 31 2021		December 31 2020							(Dollars in millions)					June 30 2021						December 31 2020

Parallel Shifts	Parallel Shifts														Parallel Shifts
+100 bps instantaneous shift	+100 bps instantaneous shift		+100		+100		$	8,324											$	10,468	+100 bps instantaneous shift			+100				+100				$	8,035	$	10,468
-25 bps instantaneous shift	-25 bps instantaneous shift		-25		-25		(1,963)						(2,766)			-25 bps instantaneous shift				-25			-25				(2,255)				(2,766)
Flatteners	Flatteners											Flatteners
Short-end instantaneous change	Short-end instantaneous change		+100	—		6,281				6,321		Short-end instantaneous change						+100				—				5,556				6,321
Long-end instantaneous change	Long-end instantaneous change		—	-25		(829)				(1,686)		Long-end instantaneous change					—				-25				(1,219)				(1,686)
Steepeners	Steepeners											Steepeners
Short-end instantaneous change	Short-end instantaneous change		-25	—		(1,135)				(1,084)		Short-end instantaneous change					-25				—				(1,014)				(1,084)
Long-end instantaneous change	Long-end instantaneous change		—	+100		2,079				4,333		Long-end instantaneous change					—				+100				2,651				4,333

The sensitivity analysis in Table 4243 assumes that we take no action in response to these rate shocks and does not assume any change in other macroeconomic variables normally correlated with changes in interest rates. As part of our ALM 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 baseline forecast and in alternate interest rate scenarios is a key assumption in our projected estimates of net interest income.

The sensitivity analysis in Table 4243 assumes no change in deposit portfolio size or mix from the baseline forecast in alternate rate environments. In higher rate scenarios, any customer activity resulting in the replacement of low-cost or non-interest-bearing deposits with higher yielding deposits or market-based funding would reduce our benefit in those scenarios.

Interest Rate and Foreign Exchange Derivative Contracts

We use interest rate and foreign exchange derivative contracts in our ALM activities to manage our interest rate and foreign exchange risks. Specifically, we use those derivatives to manage both the variability in cash flows and changes in fair value of various assets and liabilities arising from those risks. Our interest rate derivative contracts are generally non-leveraged swaps tied to various benchmark interest rates and foreign exchange basis swaps, options, futures and forwards, and our foreign exchange contracts include cross-currency interest rate swaps, foreign currency futures contracts, foreign currency forward contracts and options.

The derivatives used in our ALM activities can be split into two broad categories: designated accounting hedges and other risk management derivatives. Designated accounting hedges are primarily used to manage our exposure to interest rates as described in the Interest Rate Risk Management for the Banking Book section and are included in the sensitivities presented in Table ~~42.~~43. The Corporation also uses foreign currency derivatives in accounting hedges to manage substantially all of the foreign exchange risk of our foreign operations. By hedging the foreign exchange risk of our foreign operations, the Corporation's market risk exposure in this area is insignificant.

Risk management derivatives are predominantly used to hedge foreign exchange risks related to various foreign currency-denominated assets and liabilities and eliminate substantially all foreign currency exposures in the cash flows of the Corporation’s non-trading foreign currency-denominated financial instruments. These foreign exchange derivatives are sensitive to other market risk exposures such as cross-currency basis spreads and interest rate risk. However, as these features are not a significant component of these foreign exchange derivatives, the market risk related to this exposure is insignificant. For more information on the accounting for derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements.

Mortgage Banking Risk Management

We originate, fund and service mortgage loans, which subject us to credit, liquidity and interest rate risks, among others. We determine whether loans will be held for investment or held for sale at the time of commitment and manage credit and liquidity risks by selling or securitizing a portion of the loans we originate.


45Bank of America

Changes in interest rates impact the value of interest rate lock commitments (IRLCs) and the related residential first mortgage loans held-for-sale (LHFS), as well as the value of the MSRs. Because the interest rate risks of these hedged items offset, we combine them into one overall hedged item with one combined economic hedge portfolio consisting of derivative contracts and securities. For more information on IRLCs and the related residential mortgage LHFS, see Mortgage Banking Risk Management in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K.

During the three and six months ended ~~March 31,~~June 30, 2021, ~~and 2020,~~ we recorded gains of ~~$13~~$9 million and ~~$163~~$22 million related to the change in fair value of the MSRs, IRLCs and LHFS, net of


						~~Bank of America~~42

gains and losses on the hedge ~~portfolio.~~portfolio, compared to gains of $65 million and $228 million for the same periods in 2020. For more information on MSRs, see Note 14 – Fair Value Measurements to the Consolidated Financial Statements.

Climate Risk Management

Climate-related risks are divided into two major categories: (1) risks related to the transition to a low-carbon economy, and (2) risks related to the physical impacts of climate change. The financial impacts of transition risk can lead to and amplify credit risk. Physical risk can also lead to increased credit risk by diminishing borrowers’ repayment capacity or collateral values. As climate risk is interconnected with all key risk types, we have developed and continue to enhance processes to embed climate risk considerations into our Risk Framework and risk management programs established for strategic, credit, market, liquidity, compliance, operational and reputational risks. For more information on our governance framework and climate risk

management process, see the Managing Risk and the Climate Risk Management sections in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K. For additional information on climate risk, see Item 1A. Risk Factors – Other of the Corporation’s 2020 Annual Report on Form 10-K.

Complex Accounting Estimates

Our significant accounting principles are essential in understanding the MD&A. Many of our significant accounting principles require complex judgments to estimate the values of assets and liabilities. We have procedures and processes in place to facilitate making these judgments. For more

information, see Complex Accounting Estimates in the MD&A of the Corporation’s 2020 Annual Report on Form 10-K and Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Goodwill and Intangible Assets

The nature of and accounting for goodwill and intangible assets are discussed in Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements herein and Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K. Table 44 presents goodwill recorded on our consolidated balance sheet as of the periods presented.



Table 44	Goodwill by Reporting Unit


(Dollars in millions)		June 30 2021		December 31 2020
Consumer Banking
Consumer Lending		$	11,723	$	11,709
Deposits		18,414		18,414
Global Wealth and Investment Management
Private Bank		2,918		2,918
Merrill Lynch Global Wealth Management		6,759		6,759
Global Banking
Global Commercial Banking		16,204		16,146
Global Corporate and Investment Banking (1)		6,277		6,277
Business Banking		1,546		1,546
Global Markets		5,182		5,182


Total		$	69,023	$	68,951

(1) Prior period has been revised to conform to current-period presentation.

We completed our annual goodwill impairment test as of June 30, 2021 by using a qualitative assessment to determine whether it is more likely than not that the fair value of each reporting unit is less than its respective carrying value. Factors considered in the qualitative assessment include, among other things, macroeconomic conditions, industry and market considerations, financial performance of the respective reporting unit and other relevant entity- and reporting-unit specific considerations. Based on our qualitative assessment, we have concluded that it was not “more likely than not” that the reporting units’ fair values were less than their carrying values.


						Bank of America46

Non-GAAP Reconciliations

Table 4345 provides reconciliations of certain non-GAAP financial measures to the most closely related GAAP financial measures.


Table 43		Period-end and Average Supplemental Financial Data and Reconciliations to GAAP Financial Measures (1)
Table 45																				Table 45	Period-end and Average Supplemental Financial Data and Reconciliations to GAAP Financial Measures (1)

			Period-end						Average								Period-end						Average

			March 31 2021		December 31 2020				Three Months Ended March 31										June 30 2021				December 31 2020			Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)						2021				2020							(Dollars in millions)							December 31 2020			2021			2020			2021			2020

Shareholders’ equity	Shareholders’ equity		$	274,000			$	272,924			$	274,047			$	264,534						Shareholders’ equity				$	277,119		$	272,924		$	274,632		$	266,316		$	274,341	$	265,425
Goodwill	Goodwill		(68,951)		(68,951)				(68,951)				(68,951)							Goodwill			(69,023)			(68,951)			(69,023)			(68,951)			(68,987)			(68,951)
Intangible assets (excluding MSRs)	Intangible assets (excluding MSRs)		(2,134)		(2,151)				(2,146)				(1,655)							Intangible assets (excluding MSRs)			(2,192)			(2,151)			(2,212)			(1,640)			(2,179)			(1,648)
Related deferred tax liabilities	Related deferred tax liabilities		915		920				920				728							Related deferred tax liabilities			915			920			915			790			917			759
Tangible shareholders’ equity	Tangible shareholders’ equity		$	203,830	$	202,742			$	203,870			$	194,656						Tangible shareholders’ equity			$	206,819		$	202,742		$	204,312		$	196,515		$	204,092		$	195,585
Preferred stock	Preferred stock		(24,319)		(24,510)				(24,399)				(23,456)							Preferred stock			(23,441)			(24,510)			(23,684)			(23,427)			(24,039)			(23,442)
Tangible common shareholders’ equity	Tangible common shareholders’ equity		$	179,511	$	178,232			$	179,471			$	171,200						Tangible common shareholders’ equity			$	183,378		$	178,232		$	180,628		$	173,088		$	180,053		$	172,143

Total assets	Total assets		$	2,969,992	$	2,819,627														Total assets			$	3,029,894		$	2,819,627
Goodwill	Goodwill		(68,951)		(68,951)															Goodwill			(69,023)			(68,951)
Intangible assets (excluding MSRs)	Intangible assets (excluding MSRs)		(2,134)		(2,151)															Intangible assets (excluding MSRs)			(2,192)			(2,151)
Related deferred tax liabilities	Related deferred tax liabilities		915		920															Related deferred tax liabilities			915			920
Tangible assets	Tangible assets		$	2,899,822	$	2,749,445														Tangible assets			$	2,959,594		$	2,749,445

(1)For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 6.7.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

See Market Risk Management on page 3942 in the MD&A and the sections referenced therein for Quantitative and Qualitative Disclosures about Market Risk.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of the end of the period covered by this report, the Corporation’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness and design of the Corporation’s disclosure controls and procedures (as that term is defined in Rule 13a-15(e) of the Exchange Act). Based upon that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective, as of the end of the period covered by this report.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the three months ended ~~March 31,~~June 30, 2021, that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.


4347 Bank of America

Part I. Financial Information

Item 1. Financial Statements

Bank of America Corporation and Subsidiaries

																Consolidated Statement of Income
		Three Months Ended March 31				Three Months Ended June 30				Six Months Ended June 30
(In millions, except per share information)	(In millions, except per share information)	2021		2020			(In millions, except per share information)	2021		2020		2021		2020
Net interest income	Net interest income						Net interest income
Interest income	Interest income	$	11,395	$	16,098		Interest income	$	11,387	$	12,540	$	22,782	$	28,638
Interest expense	Interest expense	1,198		3,968			Interest expense	1,154		1,692		2,352		5,660
Net interest income	Net interest income	10,197		12,130			Net interest income	10,233		10,848		20,430		22,978

Noninterest income	Noninterest income						Noninterest income
Fees and commissions	Fees and commissions	9,536		8,321			Fees and commissions	9,705		8,392		19,241		16,713
Market making and similar activities	Market making and similar activities	3,529		2,807			Market making and similar activities	1,826		2,487		5,355		5,294
Other income	Other income	(441)		(491)			Other income	(298)		599		(739)		108
Total noninterest income	Total noninterest income	12,624		10,637			Total noninterest income	11,233		11,478		23,857		22,115
Total revenue, net of interest expense	Total revenue, net of interest expense	22,821		22,767			Total revenue, net of interest expense	21,466		22,326		44,287		45,093

Provision for credit losses	Provision for credit losses	(1,860)		4,761			Provision for credit losses	(1,621)		5,117		(3,481)		9,878

Noninterest expense	Noninterest expense						Noninterest expense
Compensation and benefits	Compensation and benefits	9,736		8,341			Compensation and benefits	8,653		7,994		18,389		16,335
Occupancy and equipment	Occupancy and equipment	1,830		1,702			Occupancy and equipment	1,759		1,802		3,589		3,504
Information processing and communications	Information processing and communications	1,425		1,209			Information processing and communications	1,448		1,265		2,873		2,474
Product delivery and transaction related	Product delivery and transaction related	977		777			Product delivery and transaction related	976		811		1,953		1,588
Marketing	Marketing	371		438			Marketing	810		492		1,181		930
Professional fees	Professional fees	403		375			Professional fees	426		381		829		756
Other general operating	Other general operating	773		633			Other general operating	973		665		1,746		1,298

Total noninterest expense	Total noninterest expense	15,515		13,475			Total noninterest expense	15,045		13,410		30,560		26,885
Income before income taxes	Income before income taxes	9,166		4,531			Income before income taxes	8,042		3,799		17,208		8,330
Income tax expense	Income tax expense	1,116		521			Income tax expense	(1,182)		266		(66)		787
Net income	Net income	$	8,050	$	4,010		Net income	$	9,224	$	3,533	$	17,274	$	7,543
Preferred stock dividends	Preferred stock dividends	490		469			Preferred stock dividends	260		249		750		718
Net income applicable to common shareholders	Net income applicable to common shareholders	$	7,560	$	3,541		Net income applicable to common shareholders	$	8,964	$	3,284	$	16,524	$	6,825

Per common share information	Per common share information						Per common share information
Earnings	Earnings	$	0.87	$	0.40		Earnings	$	1.04	$	0.38	$	1.91	$	0.78
Diluted earnings	Diluted earnings	0.86		0.40			Diluted earnings	1.03		0.37		1.90		0.77

Average common shares issued and outstanding	Average common shares issued and outstanding	8,700.1		8,815.6			Average common shares issued and outstanding	8,620.8		8,739.9		8,660.4		8,777.6
Average diluted common shares issued and outstanding	Average diluted common shares issued and outstanding	8,755.6		8,862.7			Average diluted common shares issued and outstanding	8,735.5		8,768.1		8,776.2		8,813.3


Consolidated Statement of Comprehensive Income	Consolidated Statement of Comprehensive Income					Consolidated Statement of Comprehensive Income

		Three Months Ended March 31					Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020				(Dollars in millions)	2021		2020		2021		2020
Net income	Net income	$	8,050	$	4,010			Net income	$	9,224	$	3,533	$	17,274	$	7,543
Other comprehensive income (loss), net-of-tax:	Other comprehensive income (loss), net-of-tax:							Other comprehensive income (loss), net-of-tax:
Net change in debt securities	Net change in debt securities	(840)		4,795				Net change in debt securities	(250)		(102)		(1,090)		4,693
Net change in debit valuation adjustments	Net change in debit valuation adjustments	116		1,346				Net change in debit valuation adjustments	149		(1,293)		265		53
Net change in derivatives	Net change in derivatives	(1,114)		417				Net change in derivatives	415		315		(699)		732
Employee benefit plan adjustments	Employee benefit plan adjustments	51		43				Employee benefit plan adjustments	69		57		120		100
Net change in foreign currency translation adjustments	Net change in foreign currency translation adjustments	(29)		(88)				Net change in foreign currency translation adjustments	26		(19)		(3)		(107)
Other comprehensive income (loss)	Other comprehensive income (loss)	(1,816)		6,513				Other comprehensive income (loss)	409		(1,042)		(1,407)		5,471
Comprehensive income	Comprehensive income	$	6,234	$	10,523			Comprehensive income	$	9,633	$	2,491	$	15,867	$	13,014

See accompanying Notes to Consolidated Financial Statements.


						Bank of America 4448

Bank of America Corporation and Subsidiaries

													Consolidated Balance Sheet
			March 31		December 31				June 30		December 31
(Dollars in millions)	(Dollars in millions)		2021		2020		(Dollars in millions)		2021		2020
Assets	Assets						Assets
Cash and due from banks	Cash and due from banks		$	33,560	$	36,430	Cash and due from banks		$	30,327	$	36,430
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks	Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		292,541		344,033		Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		229,703		344,033
Cash and cash equivalents	Cash and cash equivalents		326,101		380,463		Cash and cash equivalents		260,030		380,463
Time deposits placed and other short-term investments	Time deposits placed and other short-term investments		7,859		6,546		Time deposits placed and other short-term investments		7,356		6,546
Federal funds sold and securities borrowed or purchased under agreements to resell (includes $153,387 and $108,856 measured at fair value)			259,147		304,058
Trading account assets (includes $104,445 and $91,510 pledged as collateral)			276,881		198,854
Federal funds sold and securities borrowed or purchased under agreements to resell (includes $163,344 and $108,856 measured at fair value)							Federal funds sold and securities borrowed or purchased under agreements to resell (includes $163,344 and $108,856 measured at fair value)		268,594		304,058
Trading account assets (includes $114,268 and $91,510 pledged as collateral)							Trading account assets (includes $114,268 and $91,510 pledged as collateral)		291,733		198,854
Derivative assets	Derivative assets		45,898		47,179		Derivative assets		41,498		47,179
Debt securities:	Debt securities:						Debt securities:
Carried at fair value	Carried at fair value		280,912		246,601		Carried at fair value		288,913		246,601
Held-to-maturity, at cost (fair value – $569,258 and $448,180)			576,000		438,249
Held-to-maturity, at cost (fair value – $650,025 and $448,180)							Held-to-maturity, at cost (fair value – $650,025 and $448,180)		651,401		438,249
Total debt securities	Total debt securities		856,912		684,850		Total debt securities		940,314		684,850
Loans and leases (includes $7,003 and $6,681 measured at fair value)			903,088		927,861
Loans and leases (includes $6,950 and $6,681 measured at fair value)							Loans and leases (includes $6,950 and $6,681 measured at fair value)		918,928		927,861
Allowance for loan and lease losses	Allowance for loan and lease losses		(16,168)		(18,802)		Allowance for loan and lease losses		(14,095)		(18,802)
Loans and leases, net of allowance	Loans and leases, net of allowance		886,920		909,059		Loans and leases, net of allowance		904,833		909,059
Premises and equipment, net	Premises and equipment, net		10,803		11,000		Premises and equipment, net		10,747		11,000
Goodwill	Goodwill		68,951		68,951		Goodwill		69,023		68,951
Loans held-for-sale (includes $1,680 and $1,585 measured at fair value)			7,895		9,243
Loans held-for-sale (includes $2,207 and $1,585 measured at fair value)							Loans held-for-sale (includes $2,207 and $1,585 measured at fair value)		8,277		9,243
Customer and other receivables	Customer and other receivables		66,404		64,221		Customer and other receivables		67,967		64,221
Other assets (includes $17,212 and $15,718 measured at fair value)			156,221		135,203
Other assets (includes $14,928 and $15,718 measured at fair value)							Other assets (includes $14,928 and $15,718 measured at fair value)		159,522		135,203
Total assets	Total assets		$	2,969,992	$	2,819,627	Total assets		$	3,029,894	$	2,819,627

Liabilities	Liabilities						Liabilities
Deposits in U.S. offices:	Deposits in U.S. offices:						Deposits in U.S. offices:
Noninterest-bearing	Noninterest-bearing		$	703,822	$	650,674	Noninterest-bearing		$	719,481	$	650,674
Interest-bearing (includes $504 and $481 measured at fair value)			1,079,551		1,038,341
Interest-bearing (includes $515 and $481 measured at fair value)							Interest-bearing (includes $515 and $481 measured at fair value)		1,076,355		1,038,341
Deposits in non-U.S. offices:	Deposits in non-U.S. offices:						Deposits in non-U.S. offices:
Noninterest-bearing	Noninterest-bearing		22,423		17,698		Noninterest-bearing		25,190		17,698
Interest-bearing	Interest-bearing		79,142		88,767		Interest-bearing		88,116		88,767
Total deposits	Total deposits		1,884,938		1,795,480		Total deposits		1,909,142		1,795,480
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $154,865 and $135,391 measured at fair value)			199,443		170,323
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $165,781 and $135,391 measured at fair value)							Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $165,781 and $135,391 measured at fair value)		213,787		170,323
Trading account liabilities	Trading account liabilities		102,788		71,320		Trading account liabilities		110,084		71,320
Derivative liabilities	Derivative liabilities		42,325		45,526		Derivative liabilities		38,916		45,526
Short-term borrowings (includes $4,503 and $5,874 measured at fair value)			21,724		19,321
Accrued expenses and other liabilities (includes $17,571 and $16,311 measured at fair value and $1,829 and $1,878 of reserve for unfunded lending commitments)			193,563		181,799
Long-term debt (includes $30,514 and $32,200 measured at fair value)			251,211		262,934
Short-term borrowings (includes $4,490 and $5,874 measured at fair value)							Short-term borrowings (includes $4,490 and $5,874 measured at fair value)		21,635		19,321
Accrued expenses and other liabilities (includes $15,174 and $16,311 measured at fair value and $1,687 and $1,878 of reserve for unfunded lending commitments)							Accrued expenses and other liabilities (includes $15,174 and $16,311 measured at fair value and $1,687 and $1,878 of reserve for unfunded lending commitments)		184,607		181,799
Long-term debt (includes $30,361 and $32,200 measured at fair value)							Long-term debt (includes $30,361 and $32,200 measured at fair value)		274,604		262,934
Total liabilities	Total liabilities		2,695,992		2,546,703		Total liabilities		2,752,775		2,546,703
Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)	Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)		0		0		Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)		0		0
Shareholders’ equity	Shareholders’ equity						Shareholders’ equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,923,686 and 3,931,440 shares			24,319		24,510
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 8,589,731,470 and 8,650,814,105 shares			83,071		85,982
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,887,686 and 3,931,440 shares							Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,887,686 and 3,931,440 shares		23,441		24,510
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 8,487,151,465 and 8,650,814,105 shares							Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 8,487,151,465 and 8,650,814,105 shares		79,242		85,982
Retained earnings	Retained earnings		170,082		164,088		Retained earnings		177,499		164,088
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)		(3,472)		(1,656)		Accumulated other comprehensive income (loss)		(3,063)		(1,656)

Total shareholders’ equity	Total shareholders’ equity		274,000		272,924		Total shareholders’ equity		277,119		272,924
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity		$	2,969,992	$	2,819,627	Total liabilities and shareholders’ equity		$	3,029,894	$	2,819,627

		Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)						Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
		Trading account assets	$	4,530	$	5,225		Trading account assets	$	4,418	$	5,225

		Loans and leases	19,346		23,636			Loans and leases	16,970		23,636
		Allowance for loan and lease losses	(1,261)		(1,693)			Allowance for loan and lease losses	(1,047)		(1,693)
		Loans and leases, net of allowance	18,085		21,943			Loans and leases, net of allowance	15,923		21,943

		All other assets	1,387		1,387			All other assets	1,134		1,387
		Total assets of consolidated variable interest entities	$	24,002	$	28,555		Total assets of consolidated variable interest entities	$	21,475	$	28,555
		Liabilities of consolidated variable interest entities included in total liabilities above						Liabilities of consolidated variable interest entities included in total liabilities above
		Short-term borrowings (includes $37 and $22 of non-recourse short-term borrowings)	$	338	$	454		Short-term borrowings (includes $37 and $22 of non-recourse short-term borrowings)	$	324	$	454
		Long-term debt (includes $5,286 and $7,053 of non-recourse debt)	5,286		7,053			Long-term debt (includes $5,137 and $7,053 of non-recourse debt)	5,137		7,053
		All other liabilities (includes $11 and $16 of non-recourse liabilities)	11		16			All other liabilities (includes $15 and $16 of non-recourse liabilities)	15		16
		Total liabilities of consolidated variable interest entities	$	5,635	$	7,523		Total liabilities of consolidated variable interest entities	$	5,476	$	7,523

See accompanying Notes to Consolidated Financial Statements.


4549 Bank of America

Bank of America Corporation and Subsidiaries


Consolidated Statement of Changes in Shareholders’ Equity	Consolidated Statement of Changes in Shareholders’ Equity															Consolidated Statement of Changes in Shareholders’ Equity

		Preferred Stock		Common Stock and Additional Paid-in Capital			Retained Earnings				Accumulated Other Comprehensive Income (Loss)							Total Shareholders’ Equity				Preferred Stock				Common Stock and Additional Paid-in Capital								Retained Earnings				Accumulated Other Comprehensive Income (Loss)							Total Shareholders’ Equity
(In millions)	(In millions)			Shares	Amount										Total Shareholders’ Equity	Preferred Stock	Shares							Amount				Retained Earnings	Accumulated Other Comprehensive Income (Loss)								Total Shareholders’ Equity
Balance, March 31, 2021																				$	24,319				8,589.7							$	83,071	$	170,082			$	(3,472)				$	274,000

Net income																					Net income														9,224											9,224
Net change in debt securities																					Net change in debt securities																	(250)							(250)
Net change in debit valuation adjustments																					Net change in debit valuation adjustments																	149							149
Net change in derivatives																					Net change in derivatives																	415							415
Employee benefit plan adjustments																					Employee benefit plan adjustments																	69							69
Net change in foreign currency translation adjustments																					Net change in foreign currency translation adjustments																	26							26
Dividends declared:																					Dividends declared:
Common																					Common													(1,547)											(1,547)
Preferred																					Preferred													(260)											(260)

Redemption of preferred stock																					Redemption of preferred stock	(878)																							(878)
Common stock issued under employee plans, net, and other																					Common stock issued under employee plans, net, and other					0.2			380																380
Common stock repurchased																					Common stock repurchased					(102.7)			(4,209)																(4,209)
Balance, June 30, 2021																					Balance, June 30, 2021	$	23,441			8,487.2			$	79,242				$	177,499			$	(3,063)						$	277,119
Balance, December 31, 2020																					Balance, December 31, 2020	$	24,510			8,650.8			$	85,982				$	164,088			$	(1,656)						$	272,924

Net income																					Net income													17,274											17,274
Net change in debt securities																					Net change in debt securities																	(1,090)							(1,090)
Net change in debit valuation adjustments																					Net change in debit valuation adjustments																	265							265
Net change in derivatives																					Net change in derivatives																	(699)							(699)
Employee benefit plan adjustments																					Employee benefit plan adjustments																	120							120
Net change in foreign currency translation adjustments																					Net change in foreign currency translation adjustments																	(3)							(3)
Dividends declared:																					Dividends declared:
Common																					Common													(3,110)											(3,110)
Preferred																					Preferred													(750)											(750)
Issuance of preferred stock																					Issuance of preferred stock	902																							902
Redemption of preferred stock																					Redemption of preferred stock	(1,971)																							(1,971)

Common stock issued under employee plans, net, and other																					Common stock issued under employee plans, net, and other					40.1			939					(3)											936
Common stock repurchased																					Common stock repurchased					(203.7)			(7,679)																(7,679)
Balance, June 30, 2021																					Balance, June 30, 2021	$	23,441			8,487.2			$	79,242				$	177,499			$	(3,063)						$	277,119

Balance, March 31, 2020																					Balance, March 31, 2020	$	23,427			8,675.5			$	85,745				$	155,866			$	(120)						$	264,918

Net income																					Net income													3,533											3,533
Net change in debt securities																					Net change in debt securities																	(102)							(102)
Net change in debit valuation adjustments																					Net change in debit valuation adjustments																	(1,293)							(1,293)
Net change in derivatives																					Net change in derivatives																	315							315
Employee benefit plan adjustments																					Employee benefit plan adjustments																	57							57
Net change in foreign currency translation adjustments																					Net change in foreign currency translation adjustments																	(19)							(19)
Dividends declared:																					Dividends declared:
Common																					Common													(1,572)											(1,572)
Preferred																					Preferred													(249)											(249)

Common stock issued under employee plans, net, and other																					Common stock issued under employee plans, net, and other					0.1			335																335
Common stock repurchased																					Common stock repurchased					(11.5)			(286)																(286)
Balance, June 30, 2020																					Balance, June 30, 2020	$	23,427			8,664.1			$	85,794				$	157,578			$	(1,162)						$	265,637

Balance, December 31, 2019	Balance, December 31, 2019	$	23,401	8,836.1	$	91,723			$	156,319			$	(6,633)										$	264,810	Balance, December 31, 2019	$	23,401			8,836.1					$	91,723			$	156,319	$	(6,633)				$	264,810
Cumulative adjustment for adoption of credit loss accounting standard	Cumulative adjustment for adoption of credit loss accounting standard						(2,406)											(2,406)			Cumulative adjustment for adoption of credit loss accounting standard													(2,406)											(2,406)
Net income	Net income						4,010											4,010			Net income													7,543											7,543
Net change in debt securities	Net change in debt securities										4,795							4,795			Net change in debt securities																	4,693							4,693
Net change in debit valuation adjustments	Net change in debit valuation adjustments										1,346							1,346			Net change in debit valuation adjustments																	53							53
Net change in derivatives	Net change in derivatives										417							417			Net change in derivatives																	732							732
Employee benefit plan adjustments	Employee benefit plan adjustments										43							43			Employee benefit plan adjustments																	100							100
Net change in foreign currency translation adjustments	Net change in foreign currency translation adjustments										(88)							(88)			Net change in foreign currency translation adjustments																	(107)							(107)
Dividends declared:	Dividends declared:																				Dividends declared:
Common	Common						(1,579)											(1,579)			Common													(3,151)											(3,151)
Preferred	Preferred						(469)											(469)			Preferred													(718)											(718)
Issuance of preferred stock	Issuance of preferred stock	1,098																1,098			Issuance of preferred stock	1,098																							1,098
Redemption of preferred stock	Redemption of preferred stock	(1,072)																(1,072)			Redemption of preferred stock	(1,072)																							(1,072)
Common stock issued under employee plans, net, and other	Common stock issued under employee plans, net, and other			39.7	384		(9)											375			Common stock issued under employee plans, net, and other					39.8			719					(9)											710
Common stock repurchased	Common stock repurchased			(200.3)	(6,362)													(6,362)			Common stock repurchased					(211.8)			(6,648)																(6,648)
Balance, March 31, 2020		$	23,427	8,675.5	$	85,745	$	155,866			$	(120)						$	264,918

Balance, December 31, 2020		$	24,510	8,650.8	$	85,982	$	164,088			$	(1,656)						$	272,924

Net income							8,050											8,050
Net change in debt securities											(840)							(840)
Net change in debit valuation adjustments											116							116
Net change in derivatives											(1,114)							(1,114)
Employee benefit plan adjustments											51							51
Net change in foreign currency translation adjustments											(29)							(29)
Dividends declared:
Common							(1,563)											(1,563)
Preferred							(490)											(490)
Issuance of preferred stock		902																902
Redemption of preferred stock		(1,093)																(1,093)
Common stock issued under employee plans, net, and other				40.0	559		(3)											556
Common stock repurchased				(101.1)	(3,470)													(3,470)
Balance, March 31, 2021		$	24,319	8,589.7	$	83,071	$	170,082			$	(3,472)						$	274,000
Balance, June 30, 2020																					Balance, June 30, 2020	$	23,427			8,664.1			$	85,794				$	157,578			$	(1,162)						$	265,637

See accompanying Notes to Consolidated Financial Statements.


						Bank of America 4650

Bank of America Corporation and Subsidiaries


Consolidated Statement of Cash Flows	Consolidated Statement of Cash Flows	Consolidated Statement of Cash Flows

			Three Months Ended March 31					Six Months Ended June 30

(Dollars in millions)	(Dollars in millions)		2021		2020		(Dollars in millions)	2021		2020
Operating activities	Operating activities						Operating activities
Net income	Net income		$	8,050	$	4,010	Net income	$	17,274	$	7,543
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:						Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	Provision for credit losses		(1,860)		4,761		Provision for credit losses	(3,481)		9,878
Gains on sales of debt securities	Gains on sales of debt securities		0		(315)		Gains on sales of debt securities	0		(377)
Depreciation and amortization	Depreciation and amortization		461		432		Depreciation and amortization	930		880

Net amortization of premium/discount on debt securities	Net amortization of premium/discount on debt securities		1,530		482		Net amortization of premium/discount on debt securities	3,113		1,364
Deferred income taxes	Deferred income taxes		566		(229)		Deferred income taxes	(1,457)		(686)
Stock-based compensation	Stock-based compensation		853		543		Stock-based compensation	1,463		1,077

Loans held-for-sale:	Loans held-for-sale:						Loans held-for-sale:
Originations and purchases	Originations and purchases		(8,253)		(6,078)		Originations and purchases	(17,031)		(9,151)
Proceeds from sales and paydowns of loans originally classified as held for sale and instruments from related securitization activities	Proceeds from sales and paydowns of loans originally classified as held for sale and instruments from related securitization activities		9,383		7,397		Proceeds from sales and paydowns of loans originally classified as held for sale and instruments from related securitization activities	16,708		10,963
Net change in:	Net change in:						Net change in:
Trading and derivative assets/liabilities	Trading and derivative assets/liabilities		(53,756)		29,615		Trading and derivative assets/liabilities	(58,372)		1,065
Other assets	Other assets		(23,477)		(21,022)		Other assets	(26,080)		611
Accrued expenses and other liabilities	Accrued expenses and other liabilities		12,186		(588)		Accrued expenses and other liabilities	2,300		(9,297)
Other operating activities, net	Other operating activities, net		1,989		35		Other operating activities, net	2,994		2,167
Net cash provided by (used in) operating activities	Net cash provided by (used in) operating activities		(52,328)		19,043		Net cash provided by (used in) operating activities	(61,639)		16,037
Investing activities	Investing activities						Investing activities
Net change in:	Net change in:						Net change in:
Time deposits placed and other short-term investments	Time deposits placed and other short-term investments		(1,313)		(5,176)		Time deposits placed and other short-term investments	(810)		1,036
Federal funds sold and securities borrowed or purchased under agreements to resell	Federal funds sold and securities borrowed or purchased under agreements to resell		44,911		(27,372)		Federal funds sold and securities borrowed or purchased under agreements to resell	35,464		(176,582)
Debt securities carried at fair value:	Debt securities carried at fair value:						Debt securities carried at fair value:
Proceeds from sales	Proceeds from sales		491		9,977		Proceeds from sales	1,809		18,945
Proceeds from paydowns and maturities	Proceeds from paydowns and maturities		37,105		16,708		Proceeds from paydowns and maturities	76,371		37,132
Purchases	Purchases		(79,075)		(18,131)		Purchases	(126,653)		(38,656)
Held-to-maturity debt securities:	Held-to-maturity debt securities:						Held-to-maturity debt securities:
Proceeds from paydowns and maturities	Proceeds from paydowns and maturities		31,703		11,933		Proceeds from paydowns and maturities	64,192		33,847
Purchases	Purchases		(169,930)		(7,132)		Purchases	(277,949)		(27,587)
Loans and leases:	Loans and leases:						Loans and leases:
Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities	Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities		2,263		2,050		Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities	4,913		8,118
Purchases	Purchases		(1,053)		(1,982)		Purchases	(2,097)		(2,961)
Other changes in loans and leases, net	Other changes in loans and leases, net		22,585		(69,667)		Other changes in loans and leases, net	4,723		(30,066)
Other investing activities, net	Other investing activities, net		(767)		(1,619)		Other investing activities, net	(1,649)		(1,986)
Net cash used in investing activities	Net cash used in investing activities		(113,080)		(90,411)		Net cash used in investing activities	(221,686)		(178,760)
Financing activities	Financing activities						Financing activities
Net change in:	Net change in:						Net change in:
Deposits	Deposits		89,458		148,522		Deposits	113,662		283,863
Federal funds purchased and securities loaned or sold under agreements to repurchase	Federal funds purchased and securities loaned or sold under agreements to repurchase		29,120		4,934		Federal funds purchased and securities loaned or sold under agreements to repurchase	43,464		13,915
Short-term borrowings	Short-term borrowings		2,403		5,904		Short-term borrowings	2,314		(6,216)
Long-term debt:	Long-term debt:						Long-term debt:
Proceeds from issuance	Proceeds from issuance		13,132		18,728		Proceeds from issuance	48,177		30,704
Retirement	Retirement		(13,991)		(7,843)		Retirement	(29,240)		(20,876)
Preferred stock:	Preferred stock:						Preferred stock:
Proceeds from issuance	Proceeds from issuance		902		1,098		Proceeds from issuance	902		1,098
Redemption	Redemption		(1,093)		(1,072)		Redemption	(1,971)		(1,072)
Common stock repurchased	Common stock repurchased		(3,470)		(6,362)		Common stock repurchased	(7,679)		(6,648)
Cash dividends paid	Cash dividends paid		(2,114)		(2,083)		Cash dividends paid	(3,945)		(3,916)
Other financing activities, net	Other financing activities, net		(720)		(679)		Other financing activities, net	(737)		(573)
Net cash provided by financing activities	Net cash provided by financing activities		113,627		161,147		Net cash provided by financing activities	164,947		290,279
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents		(2,581)		(949)		Effect of exchange rate changes on cash and cash equivalents	(2,055)		230
Net increase (decrease) in cash and cash equivalents	Net increase (decrease) in cash and cash equivalents		(54,362)		88,830		Net increase (decrease) in cash and cash equivalents	(120,433)		127,786
Cash and cash equivalents at January 1	Cash and cash equivalents at January 1		380,463		161,560		Cash and cash equivalents at January 1	380,463		161,560
Cash and cash equivalents at March 31			$	326,101	$	250,390
Cash and cash equivalents at June 30							Cash and cash equivalents at June 30	$	260,030	$	289,346

See accompanying Notes to Consolidated Financial Statements.


4751 Bank of America

Bank of America Corporation and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 1 Summary of Significant Accounting Principles

Bank of America Corporation, a bank holding company and a financial holding company, provides a diverse range of financial services and products throughout the U.S. and in certain international markets. The term “the Corporation” as used herein may refer to Bank of America Corporation, individually, Bank of America Corporation and its subsidiaries, or certain of Bank of America Corporation’s subsidiaries or affiliates.

Principles of Consolidation and Basis of Presentation

The Consolidated Financial Statements include the accounts of the Corporation and its majority-owned subsidiaries and those variable interest entities (VIEs) where the Corporation is the primary beneficiary. Intercompany accounts and transactions have been eliminated. Results of operations of acquired companies are included from the dates of acquisition, and for VIEs, from the dates that the Corporation became the primary beneficiary. Assets held in an agency or fiduciary capacity are not included in the Consolidated Financial Statements. The Corporation accounts for investments in companies for which it owns a voting interest and for which it has the ability to exercise significant influence over operating and financing decisions using the equity method of accounting. These investments are included in other assets. Equity method investments are subject to impairment testing, and the Corporation’s proportionate share of income or loss is included in other income.

The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could materially differ from those estimates and assumptions.

These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, of the Corporation’s 2020 Annual Report on Form 10-K.

The nature of the Corporation’s business is such that the results of any interim period are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period results, have been made. The Corporation evaluates subsequent events through the date of filing with the Securities and Exchange Commission. Certain prior-period amounts have been reclassified to conform to current-period presentation.

U.K. Tax Law Change

NOTE 2 Net Interest Income and Noninterest Income

The following table ~~below~~ presents the Corporation’s net interest income and noninterest income disaggregated by revenue source for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K. For a disaggregation of noninterest income by business segment and All Other, see Note 17 – Business Segment Information.

Three Months Ended March 31
(Dollars in millions) 2021 2020
Net interest income
Interest income
Loans and leases $ 7,234 $ 9,963
Debt securities 2,730 2,843
Federal funds sold and securities borrowed or purchased under agreements to resell (7) 819
Trading account assets 872 1,247
Other interest income 566 1,226
Total interest income 11,395 16,098
Interest expense
Deposits 133 1,184
Short-term borrowings (79) 1,120
Trading account liabilities 246 329
Long-term debt 898 1,335
Total interest expense 1,198 3,968
Net interest income $ 10,197 $ 12,130
Noninterest income
Fees and commissions
Card income
Interchange fees (1)
$ 1,067 $ 792
Other card income 368 480
Total card income 1,435 1,272
Service charges
Deposit-related fees 1,495 1,627
Lending-related fees 297 276
Total service charges 1,792 1,903
Investment and brokerage services
Asset management fees 3,002 2,682
Brokerage fees 1,061 1,076
Total investment and brokerage services 4,063 3,758
Investment banking fees
Underwriting income 1,546 848
Syndication fees 300 271
Financial advisory services 400 269
Total investment banking fees 2,246 1,388
Total fees and commissions 9,536 8,321
Market making and similar activities 3,529 2,807
Other income (loss) (441) (491)
Total noninterest income $ 12,624 $ 10,637


						Bank of America52



	Three Months Ended June 30	Six Months Ended June 30
(Dollars in millions)		2021		2020		2021		2020
Net interest income
Interest income
Loans and leases		$	7,123	$	8,569	$	14,357	$	18,532
Debt securities		2,820		2,440		5,550		5,283
Federal funds sold and securities borrowed or purchased under agreements to resell		(42)		26		(49)		845
Trading account assets		954		1,008		1,826		2,255
Other interest income		532		497		1,098		1,723
Total interest income		11,387		12,540		22,782		28,638

Interest expense
Deposits		128		373		261		1,557
Short-term borrowings		(85)		(72)		(164)		1,048
Trading account liabilities		293		223		539		552
Long-term debt		818		1,168		1,716		2,503
Total interest expense		1,154		1,692		2,352		5,660
Net interest income		$	10,233	$	10,848	$	20,430	$	22,978

Noninterest income
Fees and commissions
Card income
Interchange fees (1)		$	1,210	$	830	$	2,277	$	1,622
Other card income		376		419		744		899
Total card income		1,586		1,249		3,021		2,521
Service charges
Deposit-related fees		1,557		1,299		3,052		2,926
Lending-related fees		317		263		614		539
Total service charges		1,874		1,562		3,666		3,465
Investment and brokerage services
Asset management fees		3,156		2,483		6,158		5,165
Brokerage fees		967		939		2,028		2,015
Total investment and brokerage services		4,123		3,422		8,186		7,180
Investment banking fees
Underwriting income		1,314		1,523		2,860		2,371
Syndication fees		401		230		701		501
Financial advisory services		407		406		807		675
Total investment banking fees		2,122		2,159		4,368		3,547
Total fees and commissions		9,705		8,392		19,241		16,713
Market making and similar activities		1,826		2,487		5,355		5,294
Other income (loss)		(298)		599		(739)		108
Total noninterest income		$	11,233	$	11,478	$	23,857	$	22,115

(1)Gross interchange fees and merchant income were ~~$2.5~~$2.9 billion and ~~$2.3~~$2.0 billion for the three months ended ~~March 31,~~June 30, 2021 and 2020 and are presented net of ~~$1.4~~$1.7 billion and ~~$1.5~~$1.2 billion of expenses for rewards and partner payments as well as certain other card costs for the same periods. Gross interchange fees and merchant income were $5.4 billion and $4.3 billion for the six months ended June 30, 2021 and 2020 and are presented net of $3.1 billion and $2.7 billion of expenses for rewards and partner payments as well as certain other card costs for the same periods.

53Bank of America

NOTE 3 Derivatives

Derivative Balances

Derivatives are entered into on behalf of customers, for trading or to support risk management activities. Derivatives used in risk management activities include derivatives that may or may not be designated in qualifying hedge accounting relationships. Derivatives that are not designated in qualifying hedge accounting relationships are referred to as other risk management derivatives. For more information on the Corporation’s derivatives and hedging activities, see Note 1 – Summary of Significant Accounting Principles and Note 3 –

Derivatives to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K. The following tables present derivative instruments included on the Consolidated Balance Sheet in derivative assets and liabilities at ~~March 31,~~June 30, 2021 and December 31, 2020. Balances are presented on a gross basis, prior to the application of counterparty and cash collateral netting. Total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and have been reduced by cash collateral received or paid.


				March 31, 2021															June 30, 2021
				Gross Derivative Assets						Gross Derivative Liabilities									Gross Derivative Assets						Gross Derivative Liabilities
(Dollars in billions)	(Dollars in billions)	Contract/ Notional (1)		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total		(Dollars in billions)	Contract/ Notional (1)		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total
Interest rate contracts	Interest rate contracts															Interest rate contracts
Swaps	Swaps	$	17,024.6	$	153.6	$	11.0	$	164.6	$	159.1	$	4.1	$	163.2	Swaps	$	18,092.6	$	150.2	$	11.7	$	161.9	$	157.9	$	2.0	$	159.9
Futures and forwards	Futures and forwards	5,241.6		4.9		0		4.9		4.8		0		4.8		Futures and forwards	4,488.2		1.5		0		1.5		1.4		0		1.4
Written options	Written options	1,690.7		0		0		0		34.4		0		34.4		Written options	1,687.0		0		0		0		31.1		0		31.1
Purchased options	Purchased options	1,728.2		37.5		0		37.5		0		0		0		Purchased options	1,725.1		35.0		0		35.0		0		0		0
Foreign exchange contracts	Foreign exchange contracts															Foreign exchange contracts
Swaps	Swaps	1,457.9		33.6		0.5		34.1		35.0		0.6		35.6		Swaps	1,459.6		27.7		0.4		28.1		30.5		0.5		31.0
Spot, futures and forwards	Spot, futures and forwards	4,861.4		45.5		0.5		46.0		44.9		0.1		45.0		Spot, futures and forwards	4,548.5		36.7		0.6		37.3		35.0		0.1		35.1
Written options	Written options	335.0		0		0		0		4.2		0		4.2		Written options	331.4		0		0		0		3.7		0		3.7
Purchased options	Purchased options	326.1		4.4		0		4.4		0		0		0		Purchased options	312.9		3.8		0		3.8		0		0		0
Equity contracts	Equity contracts															Equity contracts
Swaps	Swaps	339.4		13.0		0		13.0		13.7		0		13.7		Swaps	388.6		12.0		0		12.0		14.6		0		14.6
Futures and forwards	Futures and forwards	136.3		0.2		0		0.2		1.8		0		1.8		Futures and forwards	160.0		0.4		0		0.4		1.9		0		1.9
Written options	Written options	620.2		0		0		0		52.2		0		52.2		Written options	624.3		0		0		0		56.3		0		56.3
Purchased options	Purchased options	550.1		55.8		0		55.8		0		0		0		Purchased options	562.5		55.8		0		55.8		0		0		0
Commodity contracts	Commodity contracts															Commodity contracts
Swaps	Swaps	40.3		2.0		0		2.0		4.1		0		4.1		Swaps	45.2		2.9		0		2.9		5.8		0		5.8
Futures and forwards	Futures and forwards	68.8		2.0		0		2.0		1.0		0.1		1.1		Futures and forwards	78.9		2.3		0		2.3		1.4		0		1.4
Written options	Written options	33.9		0		0		0		1.7		0		1.7		Written options	36.6		0		0		0		2.7		0		2.7
Purchased options	Purchased options	29.5		1.8		0		1.8		0		0		0		Purchased options	30.7		3.0		0		3.0		0		0		0
Credit derivatives (2)	Credit derivatives (2)															Credit derivatives (2)
Purchased credit derivatives:	Purchased credit derivatives:															Purchased credit derivatives:
Credit default swaps	Credit default swaps	362.2		2.1		0		2.1		5.4		0		5.4		Credit default swaps	356.4		1.7		0		1.7		5.2		0		5.2
Total return swaps/options	Total return swaps/options	79.2		0.4		0		0.4		1.3		0		1.3		Total return swaps/options	71.1		0.2		0		0.2		1.1		0		1.1
Written credit derivatives:	Written credit derivatives:															Written credit derivatives:
Credit default swaps	Credit default swaps	340.6		5.3		0		5.3		1.9		0		1.9		Credit default swaps	333.4		5.0		0		5.0		1.5		0		1.5
Total return swaps/options	Total return swaps/options	79.5		1.6		0		1.6		0.4		0		0.4		Total return swaps/options	79.0		1.2		0		1.2		0.5		0		0.5
Gross derivative assets/liabilities	Gross derivative assets/liabilities			$	363.7	$	12.0	$	375.7	$	365.9	$	4.9	$	370.8	Gross derivative assets/liabilities			$	339.4	$	12.7	$	352.1	$	350.6	$	2.6	$	353.2
Less: Legally enforceable master netting agreements	Less: Legally enforceable master netting agreements							(294.5)						(294.5)		Less: Legally enforceable master netting agreements							(278.3)						(278.3)
Less: Cash collateral received/paid	Less: Cash collateral received/paid							(35.3)						(34.0)		Less: Cash collateral received/paid							(32.3)						(36.0)
Total derivative assets/liabilities	Total derivative assets/liabilities							$	45.9					$	42.3	Total derivative assets/liabilities							$	41.5					$	38.9

(1)Represents the total contract/notional amount of derivative assets and liabilities outstanding.

(2)The net derivative asset and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were ~~$3.1~~$3.2 billion and ~~$313.1~~$304.9 billion at ~~March 31,~~June 30, 2021.


49~~Bank of America~~


						Bank of America54



			December 31, 2020
			Gross Derivative Assets						Gross Derivative Liabilities
(Dollars in billions)	Contract/ Notional (1)		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total
Interest rate contracts
Swaps	$	13,242.8	$	199.9	$	10.9	$	210.8	$	209.3	$	1.3	$	210.6
Futures and forwards	3,222.2		3.5		0.1		3.6		3.6		0		3.6
Written options	1,530.5		0		0		0		40.5		0		40.5
Purchased options	1,545.8		45.3		0		45.3		0		0		0
Foreign exchange contracts
Swaps	1,475.8		37.1		0.3		37.4		39.7		0.6		40.3
Spot, futures and forwards	3,710.7		53.4		0		53.4		54.5		0.5		55.0
Written options	289.6		0		0		0		4.8		0		4.8
Purchased options	279.3		5.0		0		5.0		0		0		0
Equity contracts
Swaps	320.2		13.3		0		13.3		14.5		0		14.5
Futures and forwards	106.2		0.3		0		0.3		1.4		0		1.4
Written options	599.1		0		0		0		48.8		0		48.8
Purchased options	541.2		52.6		0		52.6		0		0		0
Commodity contracts
Swaps	36.4		1.9		0		1.9		4.4		0		4.4
Futures and forwards	63.6		2.0		0		2.0		1.0		0		1.0
Written options	24.6		0		0		0		1.4		0		1.4
Purchased options	24.7		1.5		0		1.5		0		0		0
Credit derivatives (2)
Purchased credit derivatives:
Credit default swaps	322.7		2.3		0		2.3		4.4		0		4.4
Total return swaps/options	63.6		0.2		0		0.2		1.0		0		1.0
Written credit derivatives:
Credit default swaps	301.5		4.4		0		4.4		1.9		0		1.9
Total return swaps/options	68.6		0.6		0		0.6		0.4		0		0.4
Gross derivative assets/liabilities			$	423.3	$	11.3	$	434.6	$	431.6	$	2.4	$	434.0
Less: Legally enforceable master netting agreements							(344.9)						(344.9)
Less: Cash collateral received/paid							(42.5)						(43.6)
Total derivative assets/liabilities							$	47.2					$	45.5

(1)Represents the total contract/notional amount of derivative assets and liabilities outstanding.

(2)The net derivative asset and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $2.2 billion and $269.8 billion at December 31, 2020.

Offsetting of Derivatives

The Corporation enters into International Swaps and Derivatives Association, Inc. (ISDA) master netting agreements or similar agreements with substantially all of the Corporation’s derivative counterparties. For more information, see Note 3 – Derivatives to the Consolidated Financial Statementsof the Corporation’s 2020 Annual Report on Form 10-K.

The following table presents derivative instruments included in derivative assets and liabilities on the Consolidated Balance Sheet at ~~March 31,~~June 30, 2021 and December 31, 2020 by primary risk (e.g., interest rate risk) and the platform, where applicable,

on which these derivatives are transacted. Balances are presented on a gross basis, prior to the application of counterparty and cash collateral netting. Total gross derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements, which include reducing the balance for counterparty netting and cash collateral received or paid.

For more information on offsetting of securities financing agreements, see Note 9 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash.

55Bank of America


Offsetting of Derivatives (1)	Offsetting of Derivatives (1)									Offsetting of Derivatives (1)

		Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities			Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
(Dollars in billions)	(Dollars in billions)	March 31, 2021				December 31, 2020				(Dollars in billions)	June 30, 2021				December 31, 2020
Interest rate contracts	Interest rate contracts									Interest rate contracts
Over-the-counter	Over-the-counter	$	196.7	$	190.4	$	247.7	$	243.5	Over-the-counter	$	189.4	$	182.8	$	247.7	$	243.5
Exchange-traded	Exchange-traded	0.1		0.1		0		0		Exchange-traded	0.1		0		0		0
Over-the-counter cleared	Over-the-counter cleared	9.1		9.8		10.2		9.1		Over-the-counter cleared	7.3		6.9		10.2		9.1
Foreign exchange contracts	Foreign exchange contracts									Foreign exchange contracts
Over-the-counter	Over-the-counter	80.7		81.7		92.2		96.5		Over-the-counter	66.6		67.4		92.2		96.5
Over-the-counter cleared	Over-the-counter cleared	1.2		1.2		1.4		1.3		Over-the-counter cleared	1.0		0.9		1.4		1.3
Equity contracts	Equity contracts									Equity contracts
Over-the-counter	Over-the-counter	33.1		29.4		31.3		28.3		Over-the-counter	29.9		31.0		31.3		28.3
Exchange-traded	Exchange-traded	33.2		32.2		32.3		31.0		Exchange-traded	35.6		35.0		32.3		31.0
Commodity contracts	Commodity contracts									Commodity contracts
Over-the-counter	Over-the-counter	3.9		4.9		3.5		5.0		Over-the-counter	5.6		7.1		3.5		5.0
Exchange-traded	Exchange-traded	0.8		1.0		0.7		0.7		Exchange-traded	1.3		1.6		0.7		0.7
Over-the-counter cleared	Over-the-counter cleared	0.1		0.1		0		0		Over-the-counter cleared	0.1		0.1		0		0
Credit derivatives	Credit derivatives									Credit derivatives
Over-the-counter	Over-the-counter	6.4		6.0		5.2		5.6		Over-the-counter	5.6		5.5		5.2		5.6
Over-the-counter cleared	Over-the-counter cleared	2.8		2.7		2.2		1.9		Over-the-counter cleared	2.4		2.4		2.2		1.9
Total gross derivative assets/liabilities, before netting	Total gross derivative assets/liabilities, before netting									Total gross derivative assets/liabilities, before netting
Over-the-counter	Over-the-counter	320.8		312.4		379.9		378.9		Over-the-counter	297.1		293.8		379.9		378.9
Exchange-traded	Exchange-traded	34.1		33.3		33.0		31.7		Exchange-traded	37.0		36.6		33.0		31.7
Over-the-counter cleared	Over-the-counter cleared	13.2		13.8		13.8		12.3		Over-the-counter cleared	10.8		10.3		13.8		12.3
Less: Legally enforceable master netting agreements and cash collateral received/paid	Less: Legally enforceable master netting agreements and cash collateral received/paid									Less: Legally enforceable master netting agreements and cash collateral received/paid
Over-the-counter	Over-the-counter	(285.9)		(284.6)		(345.7)		(347.2)		Over-the-counter	(265.1)		(268.8)		(345.7)		(347.2)
Exchange-traded	Exchange-traded	(32.1)		(32.1)		(29.5)		(29.5)		Exchange-traded	(35.4)		(35.4)		(29.5)		(29.5)
Over-the-counter cleared	Over-the-counter cleared	(11.8)		(11.8)		(12.2)		(11.8)		Over-the-counter cleared	(10.1)		(10.1)		(12.2)		(11.8)
Derivative assets/liabilities, after netting	Derivative assets/liabilities, after netting	38.3		31.0		39.3		34.4		Derivative assets/liabilities, after netting	34.3		26.4		39.3		34.4
Other gross derivative assets/liabilities (2)	Other gross derivative assets/liabilities (2)	7.6		11.3		7.9		11.1		Other gross derivative assets/liabilities (2)	7.2		12.5		7.9		11.1
Total derivative assets/liabilities	Total derivative assets/liabilities	45.9		42.3		47.2		45.5		Total derivative assets/liabilities	41.5		38.9		47.2		45.5
Less: Financial instruments collateral (3)	Less: Financial instruments collateral (3)	(17.0)		(14.5)		(16.1)		(16.6)		Less: Financial instruments collateral (3)	(14.2)		(13.3)		(16.1)		(16.6)
Total net derivative assets/liabilities	Total net derivative assets/liabilities	$	28.9	$	27.8	$	31.1	$	28.9	Total net derivative assets/liabilities	$	27.3	$	25.6	$	31.1	$	28.9

(1)Over-the-counter derivatives include bilateral transactions between the Corporation and a particular counterparty. Over-the-counter cleared derivatives include bilateral transactions between the Corporation and a counterparty where the transaction is cleared through a clearinghouse. Exchange-traded derivatives include listed options transacted on an exchange.

(2)Consists of derivatives entered into under master netting agreements where the enforceability of these agreements is uncertain under bankruptcy laws in some countries or industries.

(3)Amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. Financial instruments collateral includes securities collateral received or pledged and cash securities held and posted at third-party custodians that are not offset on the Consolidated Balance Sheet but shown as a reduction to derive net derivative assets and liabilities.

Derivatives Designated as Accounting Hedges

The Corporation uses various types of interest rate and foreign exchange derivative contracts to protect against changes in the fair value of its assets and liabilities due to fluctuations in interest rates and exchange rates (fair value hedges). The Corporation also uses these types of contracts to protect against changes in the cash flows of its assets and liabilities, and other forecasted transactions (cash flow hedges). The Corporation hedges its net investment in consolidated non-U.S.

operations determined to have functional currencies other than the U.S. dollar using forward exchange contracts and cross-currency basis swaps, and by issuing foreign currency-denominated debt (net investment hedges).

Fair Value Hedges

The table below summarizes information related to fair value hedges for the three and six months ended ~~March 31,~~June 30, 2021 and 2020.


Gains and Losses on Derivatives Designated as Fair Value Hedges	Gains and Losses on Derivatives Designated as Fair Value Hedges									Gains and Losses on Derivatives Designated as Fair Value Hedges

		Three Months Ended March 31
		2021				2020													Three Months Ended June 30, 2021								Three Months Ended June 30, 2020
(Dollars in millions)	(Dollars in millions)	Derivative		Hedged Item		Derivative		Hedged Item		(Dollars in millions)	Derivative	Hedged Item			Derivative				Hedged Item

Interest rate risk on long-term debt (1)	Interest rate risk on long-term debt (1)	$	(8,063)	$	8,002	$	10,334	$	(10,276)								Interest rate risk on long-term debt (1)		$	3,484			$	(3,454)			$	475		$	(600)
Interest rate and foreign currency risk on long-term debt (2)	Interest rate and foreign currency risk on long-term debt (2)	(28)		26		505		(491)									Interest rate and foreign currency risk on long-term debt (2)		5				(5)				60			(60)
Interest rate risk on available-for-sale securities (3)	Interest rate risk on available-for-sale securities (3)	5,241		(5,150)		(350)		342									Interest rate risk on available-for-sale securities (3)		(1,863)				1,825				(361)			356

Total	Total	$	(2,850)	$	2,878	$	10,489	$	(10,425)								Total		$	1,626			$	(1,634)			$	174		$	(304)

`																`		Six Months Ended June 30, 2021								Six Months Ended June 30, 2020
													Derivative	Hedged Item							Derivative				Hedged Item
Interest rate risk on long-term debt (1)																Interest rate risk on long-term debt (1)		$	(4,579)			$	4,548			$	10,809		$	(10,876)
Interest rate and foreign currency risk on long-term debt (2)																Interest rate and foreign currency risk on long-term debt (2)		(23)				21				565			(551)
Interest rate risk on available-for-sale securities (3)																Interest rate risk on available-for-sale securities (3)		3,378				(3,325)				(711)			698

Total																Total		$	(1,224)			$	1,244			$	10,663		$	(10,729)

(1)Amounts are recorded in interest expense in the Consolidated Statement of Income.

(2)For the three and six months ended ~~March 31,~~June 30, 2021, the derivative amount includes gains (losses) of $(17) million and $(51) million in interest expense, $23 million and $31 million in market making and similar activities, and $(1) million and $(3) million in accumulated other comprehensive income (OCI). For the same periods in 2020, the derivative amount includes gains (losses) of ~~$(34)~~$(3) million and ~~$734~~$731 million in interest expense, $8$63 million and ~~$(241)~~$(178) million in market making and similar activities, and ~~$(2) million~~$0 and $12 million in accumulated ~~other comprehensive income (OCI), respectively.~~OCI. Line item totals are in the Consolidated Statement of Income and on the Consolidated Balance Sheet.

(3)Amounts are recorded in interest income in the Consolidated Statement of Income.


51~~Bank of America~~


						Bank of America56

The table below summarizes the carrying value of hedged assets and liabilities that are designated and qualifying in fair value hedging relationships along with the cumulative amount of fair value hedging adjustments included in the carrying value that have been recorded in the current hedging relationships. These fair value hedging adjustments are open basis adjustments that are not subject to amortization as long as the hedging relationship remains designated.


Designated Fair Value Hedged Assets and Liabilities	Designated Fair Value Hedged Assets and Liabilities									Designated Fair Value Hedged Assets and Liabilities

		March 31, 2021				December 31, 2020						June 30, 2021				December 31, 2020
(Dollars in millions)	(Dollars in millions)	Carrying Value		Cumulative Fair Value Adjustments (1)		Carrying Value		Cumulative Fair Value Adjustments (1)			(Dollars in millions)	Carrying Value		Cumulative Fair Value Adjustments (1)		Carrying Value		Cumulative Fair Value Adjustments (1)

Long-term debt (2)	Long-term debt (2)	$	143,897	$	2,304	$	150,556	$	8,910		Long-term debt (2)	$	171,872	$	6,742	$	150,556	$	8,910
Available-for-sale debt securities (2, 3, 4)	Available-for-sale debt securities (2, 3, 4)	152,388		(4,881)		116,252		114			Available-for-sale debt securities (2, 3, 4)	152,348		(2,876)		116,252		114
Trading account assets (5)	Trading account assets (5)	660		0		427		15			Trading account assets (5)	366		0		427		15

(1)Increase (decrease) to carrying value.

(2)At ~~March 31,~~June 30, 2021 and December 31, 2020, the cumulative fair value adjustments remaining on long-term debt and available-for-sale debt securities from discontinued hedging relationships resulted in an increase in the related liability of ~~$2.1~~$1.0 billion and $3.7 billion and a decrease in the related asset of ~~$71~~$68 million and $69 million, which are being amortized over the remaining contractual life of the de-designated hedged items.

(3)These amounts include the amortized cost of the prepayable financial assets used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship (i.e. last-of-layer hedging relationship). At ~~March 31,~~June 30, 2021 and December 31, 2020, the amortized cost of the closed portfolios used in these hedging relationships was ~~$30.5~~$26.8 billion and $34.6 billion, of which $7.0 billion was designated in the last-of-layer hedging relationship at both dates. At ~~March 31,~~June 30, 2021, the cumulative adjustment associated with these hedging relationships was a decrease of ~~$115~~$99 million. At December 31, 2020, the cumulative adjustment was insignificant.

(4)Carrying value represents amortized cost.

(5)Represents hedging activities related to ~~precious metals~~certain commodities inventory.

Cash Flow and Net Investment Hedges

The table below summarizes certain information related to cash flow hedges and net investment hedges for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. Of the ~~$688~~$273 million after-tax net loss ($~~917~~365 million pretax) on derivatives in accumulated OCI at ~~March 31,~~June 30, 2021, gains of ~~$220~~$244 million after-tax ($~~294~~330 million pretax) related to both open and terminated cash flow hedges are expected to be reclassified into earnings ~~in the next~~

in the next 12 months. These net gains reclassified into earnings are expected to primarily increase net interest income related to the respective hedged items. For terminated cash flow hedges, the time period over which the majority of the forecasted transactions are hedged is approximately 3 years, with a maximum length of time for certain forecasted transactions of 15 years.


Gains and Losses on Derivatives Designated as Cash Flow and Net Investment Hedges	Gains and Losses on Derivatives Designated as Cash Flow and Net Investment Hedges		Gains and Losses on Derivatives Designated as Cash Flow and Net Investment Hedges

							Three Months Ended March 31
							2021				2020
																Gains (Losses) Recognized in Accumulated OCI on Derivatives	Gains (Losses) in Income Reclassified from Accumulated OCI	Gains (Losses) Recognized in Accumulated OCI on Derivatives	Gains (Losses) in Income Reclassified from Accumulated OCI
(Dollars in millions, amounts pretax)	(Dollars in millions, amounts pretax)	Gains (Losses) Recognized in Accumulated OCI on Derivatives	Gains (Losses) in Income Reclassified from Accumulated OCI	Gains (Losses) Recognized in Accumulated OCI on Derivatives	Gains (Losses) in Income Reclassified from Accumulated OCI	(Dollars in millions, amounts pretax)										Three Months Ended June 30, 2021		Six Months Ended June 30, 2021

Cash flow hedges	Cash flow hedges														Cash flow hedges
Interest rate risk on variable-rate assets (1)	Interest rate risk on variable-rate assets (1)						$	(1,057)	$	37	$	591	$	(26)	Interest rate risk on variable-rate assets (1)					$	481	$	36	$	(576)	$	73
Price risk on forecasted MBS purchases (1)	Price risk on forecasted MBS purchases (1)						(393)		9		0		0		Price risk on forecasted MBS purchases (1)					92		6		(301)		15
Price risk on certain compensation plans (2)	Price risk on certain compensation plans (2)						24		12		(82)		0		Price risk on certain compensation plans (2)					35		14		59		26
Total	Total						$	(1,426)	$	58	$	509	$	(26)	Total					$	608	$	56	$	(818)	$	114
Net investment hedges	Net investment hedges														Net investment hedges
Foreign exchange risk (3)	Foreign exchange risk (3)						$	727	$	0	$	1,368	$	0	Foreign exchange risk (3)					$	(224)	$	0	$	503	$	0

																		Three Months Ended June 30, 2020		Six Months Ended June 30, 2020

Cash flow hedges															Cash flow hedges
Interest rate risk on variable-rate assets (1)															Interest rate risk on variable-rate assets (1)					$	320	$	(23)	$	911	$	(49)
Price risk on certain compensation plans (2)															Price risk on certain compensation plans (2)					73		0		(9)		0
Total															Total					$	393	$	(23)	$	902	$	(49)
Net investment hedges															Net investment hedges
Foreign exchange risk (3)															Foreign exchange risk (3)					$	(400)	$	1	$	968	$	1

(1)Amounts reclassified from accumulated OCI are recorded in interest income in the Consolidated Statement of Income.

(2)Amounts reclassified from accumulated OCI are recorded in compensation and benefits expense in the Consolidated Statement of Income.

(3)Amounts reclassified from accumulated OCI are recorded in other income in the Consolidated Statement of Income. For the three and six months ended ~~March 31,~~June 30, 2021, ~~and 2020,~~ amounts excluded from effectiveness testing and recognized in market making and similar activities were ~~gains (losses)~~losses of ~~$(2)~~$48 million and ~~$30~~$50 million. For the same periods in 2020 amounts excluded from effectiveness testing and recognized in other income were gains of $75 million and $105 million.

57Bank of America

Other Risk Management Derivatives

Other risk management derivatives are used by the Corporation to reduce certain risk exposures by economically hedging various assets and liabilities. The table below presents gains (losses) on these derivatives for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. These gains (losses) are largely offset by the income or expense recorded on the hedged item.


Gains and Losses on Other Risk Management Derivatives	Gains and Losses on Other Risk Management Derivatives					Gains and Losses on Other Risk Management Derivatives

		Three Months Ended March 31						Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020			(Dollars in millions)	2021		2020		2021		2020
Interest rate risk on mortgage activities (1, 2)	Interest rate risk on mortgage activities (1, 2)	$	(190)	$	379		Interest rate risk on mortgage activities (1, 2)	$	85	$	62	$	(105)	$	441
Credit risk on loans (2)	Credit risk on loans (2)	(17)		88			Credit risk on loans (2)	(14)		(66)		(31)		22
Interest rate and foreign currency risk on asset and liability management activities (3)	Interest rate and foreign currency risk on asset and liability management activities (3)	1,261		1,528			Interest rate and foreign currency risk on asset and liability management activities (3)	(318)		(1,017)		943		511
Price risk on certain compensation plans (4)	Price risk on certain compensation plans (4)	280		(757)			Price risk on certain compensation plans (4)	318		603		598		(154)

(1)Primarily related to hedges of interest rate risk on mortgage servicing rights (MSRs) and interest rate lock commitments (IRLCs) to originate mortgage loans that will be held for sale. The net gains on IRLCs, which are not included in the table but are considered derivative instruments, were ~~$19~~$27 million and ~~$48~~$46 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to $39 million and $87 million for the same periods in 2020.

(2)Gains (losses) on these derivatives are recorded in other income.

(3)Gains (losses) on these derivatives are recorded in market making and similar activities.

(4)Gains (losses) on these derivatives are recorded in compensation and benefits expense.

Transfers of Financial Assets with Risk Retained through Derivatives

The Corporation enters into certain transactions involving the transfer of financial assets that are accounted for as sales where substantially all of the economic exposure to the transferred financial assets is retained through derivatives (e.g., interest rate and/or credit), but the Corporation does not retain control over the assets transferred. At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation had transferred ~~$5.1~~$4.9 billion and $5.2 billion of non-U.S. government-guaranteed mortgage-backed securities (MBS) to a third-party trust and retained economic exposure to the transferred assets through derivative contracts. In connection with these transfers, the Corporation received gross cash proceeds of ~~$5.1~~$5.0 billion and $5.2 billion at the transfer dates. At ~~March 31,~~June 30, 2021 and December 31, 2020, the fair value of the transferred securities was ~~$5.4~~$5.3 billion and $5.5 billion.

Sales and Trading Revenue

The Corporation enters into trading derivatives to facilitate client

transactions and to manage risk exposures arising from trading account assets and liabilities. It is the Corporation’s policy to include these derivative instruments in its trading activities, which include derivatives and non-derivative cash instruments. The resulting risk from these derivatives is managed on a portfolio basis as part of the Corporation’s Global Markets business segment. For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

The table below, which includes both derivatives and non-derivative cash instruments, identifies the amounts in the respective income statement line items attributable to the Corporation’s sales and trading revenue in Global Markets, categorized by primary risk, for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. This table includes debit valuation adjustment (DVA) and funding valuation adjustment (FVA) gains (losses). Global Markets results in Note 17 – Business Segment Information are presented on a fully taxable-equivalent (FTE) basis. The table below is not presented on an FTE basis.


Sales and Trading Revenue	Sales and Trading Revenue									Sales and Trading Revenue

		Market making and similar activities		Net Interest Income		Other (1)		Total						Market making and similar activities		Net Interest Income		Other (1)		Total		Market making and similar activities		Net Interest Income		Other (1)		Total
(Dollars in millions)	(Dollars in millions)	Three Months Ended March 31, 2021									(Dollars in millions)	Three Months Ended June 30, 2021				Six Months Ended June 30, 2021
Interest rate risk	Interest rate risk	$	372	$	463	$	57	$	892				Interest rate risk	$	44	$	463	$	40	$	547	$	416	$	926	$	97	$	1,439
Foreign exchange risk	Foreign exchange risk	407		(18)		2		391					Foreign exchange risk	330		(22)		2		310		736		(40)		6		702
Equity risk	Equity risk	1,282		36		516		1,834					Equity risk	1,178		(1)		442		1,619		2,460		35		957		3,452
Credit risk	Credit risk	802		363		114		1,279					Credit risk	435		424		175		1,034		1,237		787		289		2,313
Other risk (2)	Other risk (2)	607		(18)		20		609					Other risk (2)	(24)		(10)		26		(8)		584		(28)		45		601
Total sales and trading revenue	Total sales and trading revenue	$	3,470	$	826	$	709	$	5,005				Total sales and trading revenue	$	1,963	$	854	$	685	$	3,502	$	5,433	$	1,680	$	1,394	$	8,507

		Three Months Ended March 31, 2020										Three Months Ended June 30, 2020				Six Months Ended June 30, 2020
Interest rate risk	Interest rate risk	$	1,495	$	617	$	73	$	2,185				Interest rate risk	$	670	$	658	$	48	$	1,376	$	2,164	$	1,276	$	120	$	3,560
Foreign exchange risk	Foreign exchange risk	465		5		5		475					Foreign exchange risk	351		(3)		(12)		336		815		1		(5)		811
Equity risk	Equity risk	1,259		(123)		519		1,655					Equity risk	730		31		451		1,212		1,989		(91)		969		2,867
Credit risk	Credit risk	(379)		443		34		98					Credit risk	536		426		142		1,104		157		869		176		1,202
Other risk (2)	Other risk (2)	133		21		6		160					Other risk (2)	73		8		4		85		207		28		11		246
Total sales and trading revenue	Total sales and trading revenue	$	2,973	$	963	$	637	$	4,573				Total sales and trading revenue	$	2,360	$	1,120	$	633	$	4,113	$	5,332	$	2,083	$	1,271	$	8,686

(1)Represents amounts in investment and brokerage services and other income that are recorded in Global Markets and included in the definition of sales and trading revenue. Includes investment and brokerage services revenue of ~~$548~~$462 million and ~~$557 million~~$1.0 billion for the three and six months ended ~~March 31,~~June 30, 2021 compared to $470 million and $1.0 billion for the same periods in 2020.

(2)Includes commodity risk.


						Bank of America58

Credit Derivatives

The Corporation enters into credit derivatives primarily to facilitate client transactions and to manage credit risk exposures. Credit derivatives are classified as investment and non-investment grade based on the credit quality of the underlying referenced obligation. The Corporation considers ratings of BBB- or higher as investment grade. Non-investment grade includes non-rated credit derivative instruments. The Corporation discloses internal categorizations of investment

grade and non-investment grade consistent with how risk is managed for these instruments. For more information on credit derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.


53~~Bank of America~~

Credit derivative instruments where the Corporation is the seller of credit protection and their expiration at ~~March 31,~~June 30, 2021 and December 31, 2020 are summarized in the table below.


Credit Derivative Instruments	Credit Derivative Instruments											Credit Derivative Instruments

		Less than One Year		One to Three Years		Three to Five Years		Over Five Years		Total			Less than One Year		One to Three Years		Three to Five Years		Over Five Years		Total
		March 31, 2021											June 30, 2021
(Dollars in millions)	(Dollars in millions)	Carrying Value										(Dollars in millions)	Carrying Value
Credit default swaps:	Credit default swaps:											Credit default swaps:
Investment grade	Investment grade	$	0	$	3	$	52	$	47	$	102	Investment grade	$	0	$	0	$	44	$	42	$	86
Non-investment grade	Non-investment grade	43		153		474		1,084		1,754		Non-investment grade	11		130		406		894		1,441
Total	Total	43		156		526		1,131		1,856		Total	11		130		450		936		1,527
Total return swaps/options:	Total return swaps/options:											Total return swaps/options:
Investment grade	Investment grade	32		0		0		0		32		Investment grade	31		0		0		0		31
Non-investment grade	Non-investment grade	129		266		0		0		395		Non-investment grade	134		333		0		0		467
Total	Total	161		266		0		0		427		Total	165		333		0		0		498
Total credit derivatives	Total credit derivatives	$	204	$	422	$	526	$	1,131	$	2,283	Total credit derivatives	$	176	$	463	$	450	$	936	$	2,025
Credit-related notes:	Credit-related notes:											Credit-related notes:
Investment grade	Investment grade	$	0	$	0	$	0	$	341	$	341	Investment grade	$	0	$	0	$	1	$	519	$	520
Non-investment grade	Non-investment grade	7		1		10		1,329		1,347		Non-investment grade	5		1		23		1,153		1,182
Total credit-related notes	Total credit-related notes	$	7	$	1	$	10	$	1,670	$	1,688	Total credit-related notes	$	5	$	1	$	24	$	1,672	$	1,702
		Maximum Payout/Notional											Maximum Payout/Notional
Credit default swaps:	Credit default swaps:											Credit default swaps:
Investment grade	Investment grade	$	33,138	$	74,361	$	99,302	$	27,974	$	234,775	Investment grade	$	32,739	$	75,590	$	107,799	$	16,141	$	232,269
Non-investment grade	Non-investment grade	13,206		29,761		47,496		15,366		105,829		Non-investment grade	11,961		31,595		48,833		8,750		101,139
Total	Total	46,344		104,122		146,798		43,340		340,604		Total	44,700		107,185		156,632		24,891		333,408
Total return swaps/options:	Total return swaps/options:											Total return swaps/options:
Investment grade	Investment grade	48,002		64		128		0		48,194		Investment grade	46,566		65		79		0		46,710
Non-investment grade	Non-investment grade	16,047		15,217		28		5		31,297		Non-investment grade	20,032		12,268		10		16		32,326
Total	Total	64,049		15,281		156		5		79,491		Total	66,598		12,333		89		16		79,036
Total credit derivatives	Total credit derivatives	$	110,393	$	119,403	$	146,954	$	43,345	$	420,095	Total credit derivatives	$	111,298	$	119,518	$	156,721	$	24,907	$	412,444

		December 31, 2020											December 31, 2020
		Carrying Value											Carrying Value
Credit default swaps:	Credit default swaps:											Credit default swaps:
Investment grade	Investment grade	$	0	$	1	$	35	$	94	$	130	Investment grade	$	0	$	1	$	35	$	94	$	130
Non-investment grade	Non-investment grade	26		233		364		1,163		1,786		Non-investment grade	26		233		364		1,163		1,786
Total	Total	26		234		399		1,257		1,916		Total	26		234		399		1,257		1,916
Total return swaps/options:	Total return swaps/options:											Total return swaps/options:
Investment grade	Investment grade	21		4		0		0		25		Investment grade	21		4		0		0		25
Non-investment grade	Non-investment grade	345		0		0		0		345		Non-investment grade	345		0		0		0		345
Total	Total	366		4		0		0		370		Total	366		4		0		0		370
Total credit derivatives	Total credit derivatives	$	392	$	238	$	399	$	1,257	$	2,286	Total credit derivatives	$	392	$	238	$	399	$	1,257	$	2,286
Credit-related notes:	Credit-related notes:											Credit-related notes:
Investment grade	Investment grade	$	0	$	0	$	0	$	572	$	572	Investment grade	$	0	$	0	$	0	$	572	$	572
Non-investment grade	Non-investment grade	64		2		10		947		1,023		Non-investment grade	64		2		10		947		1,023
Total credit-related notes	Total credit-related notes	$	64	$	2	$	10	$	1,519	$	1,595	Total credit-related notes	$	64	$	2	$	10	$	1,519	$	1,595
		Maximum Payout/Notional											Maximum Payout/Notional
Credit default swaps:	Credit default swaps:											Credit default swaps:
Investment grade	Investment grade	$	33,474	$	75,731	$	87,218	$	16,822	$	213,245	Investment grade	$	33,474	$	75,731	$	87,218	$	16,822	$	213,245
Non-investment grade	Non-investment grade	13,664		28,770		35,978		9,852		88,264		Non-investment grade	13,664		28,770		35,978		9,852		88,264
Total	Total	47,138		104,501		123,196		26,674		301,509		Total	47,138		104,501		123,196		26,674		301,509
Total return swaps/options:	Total return swaps/options:											Total return swaps/options:
Investment grade	Investment grade	30,961		1,061		77		0		32,099		Investment grade	30,961		1,061		77		0		32,099
Non-investment grade	Non-investment grade	36,128		364		27		5		36,524		Non-investment grade	36,128		364		27		5		36,524
Total	Total	67,089		1,425		104		5		68,623		Total	67,089		1,425		104		5		68,623
Total credit derivatives	Total credit derivatives	$	114,227	$	105,926	$	123,300	$	26,679	$	370,132	Total credit derivatives	$	114,227	$	105,926	$	123,300	$	26,679	$	370,132


59Bank of America

The notional amount represents the maximum amount payable by the Corporation for most credit derivatives. However, the Corporation does not monitor its exposure to credit derivatives based solely on the notional amount because this measure does not take into consideration the probability of occurrence. As such, the notional amount is not a reliable indicator of the Corporation’s exposure to these contracts. Instead, a risk framework is used to define risk tolerances and establish limits so that certain credit risk-related losses occur within acceptable, predefined limits.

Credit-related notes in the table above include investments in securities issued by collateralized debt obligation (CDO), collateralized loan obligation (CLO) and credit-linked note vehicles. These instruments are primarily classified as trading securities. The carrying value of these instruments equals the Corporation’s maximum exposure to loss. The Corporation is not obligated to make any payments to the entities under the terms of the securities owned.


						~~Bank of America~~54

Credit-related Contingent Features and Collateral

Certain of the Corporation’s derivative contracts contain credit risk-related contingent features, primarily in the form of ISDA master netting agreements and credit support documentation that enhance the creditworthiness of these instruments compared to other obligations of the respective counterparty with whom the Corporation has transacted. These contingent features may be for the benefit of the Corporation as well as its counterparties with respect to changes in the Corporation’s creditworthiness and the mark-to-market exposure under the derivative transactions. At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation held cash and securities collateral of ~~$89.3~~$85.8 billion and $96.5 billion and posted cash and securities collateral of ~~$72.7~~$76.9 billion and $88.6 billion in the normal course of business under derivative agreements, excluding cross-product margining agreements where clients are permitted to margin on a net basis for both derivative and secured financing arrangements.

In connection with certain over-the-counter derivative contracts and other trading agreements, the Corporation can be required to provide additional collateral or to terminate transactions with certain counterparties in the event of a downgrade of the senior debt ratings of the Corporation or certain subsidiaries. The amount of additional collateral required depends on the contract and is usually a fixed incremental amount and/or the market value of the exposure. For more information on credit-related contingent features and collateral, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

At ~~March 31,~~June 30, 2021, the amount of collateral, calculated based on the terms of the contracts, that the Corporation and certain subsidiaries could be required to post to counterparties but had not yet posted to counterparties was ~~$3.0~~$2.6 billion, including ~~$1.9~~$1.4 billion for Bank of America, National Association.

Some counterparties are currently able to unilaterally terminate certain contracts, or the Corporation or certain

subsidiaries may be required to take other action such as find a suitable replacement or obtain a guarantee. At ~~March 31,~~June 30, 2021 and December 31, 2020, the liability recorded for these derivative contracts was not significant.

The ~~following~~ table below presents the amount of additional collateral that would have been contractually required by derivative contracts and other trading agreements at ~~March 31,~~June 30, 2021 if the rating agencies had downgraded their long-term senior debt ratings for the Corporation or certain subsidiaries by

one incremental notch and by an additional second incremental notch. The table also presents derivative liabilities that would be subject to unilateral termination by counterparties upon downgrade of the Corporation's or certain subsidiaries' long-term senior debt ratings.


Additional Collateral Required to be Posted Upon Downgrade at March 31, 2021
Additional Collateral Required to be Posted and Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at June 30, 2021						Additional Collateral Required to be Posted and Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at June 30, 2021

(Dollars in millions)	(Dollars in millions)	One incremental notch		Second incremental notch		(Dollars in millions)	One incremental notch		Second incremental notch
Additional collateral required to be posted upon downgrade						Additional collateral required to be posted upon downgrade
Bank of America Corporation	Bank of America Corporation	$	241	$	724	Bank of America Corporation	$	318	$	786
Bank of America, N.A. and subsidiaries (1)	Bank of America, N.A. and subsidiaries (1)	66		584		Bank of America, N.A. and subsidiaries (1)	69		589

Derivative liabilities subject to unilateral termination upon downgrade						Derivative liabilities subject to unilateral termination upon downgrade
Derivative liabilities						Derivative liabilities	$	26	$	480
Collateral posted						Collateral posted	11		313

(1)Included in Bank of America Corporation collateral requirements in this table.

The table below presents the derivative liabilities that would be subject to unilateral termination by counterparties and the amounts of collateral that would have been contractually required at March 31, 2021 if the long-term senior debt ratings for the Corporation or certain subsidiaries had been lower by one incremental notch and by an additional second incremental notch.

Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at March 31, 2021
(Dollars in millions) One
incremental notch Second
incremental notch
Derivative liabilities $ 32 $ 585
Collateral posted 19 339

Valuation Adjustments on Derivatives

The table below presents credit valuation adjustment (CVA), DVA and FVA gains (losses) on derivatives (excluding the effect of any related hedge activities), which are recorded in market making and similar activities, for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. For more information on the valuation adjustments on derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.


Valuation Adjustments Gains (Losses) on Derivatives (1)	Valuation Adjustments Gains (Losses) on Derivatives (1)					Valuation Adjustments Gains (Losses) on Derivatives (1)

		Three Months Ended March 31							Three Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020				(Dollars in millions)	2021		2020
Derivative assets (CVA)	Derivative assets (CVA)	$	155	$	(784)			Derivative assets (CVA)	$	3	$	276
Derivative assets/liabilities (FVA)	Derivative assets/liabilities (FVA)	48		(156)				Derivative assets/liabilities (FVA)	(33)		69
Derivative liabilities (DVA)	Derivative liabilities (DVA)	23		414				Derivative liabilities (DVA)	(31)		(256)

							Six Months Ended June 30
(Dollars in millions)								(Dollars in millions)	2021		2020
Derivative assets (CVA)								Derivative assets (CVA)	$	158	$	(508)
Derivative assets/liabilities (FVA)								Derivative assets/liabilities (FVA)	15		(87)
Derivative liabilities (DVA)								Derivative liabilities (DVA)	(8)		158

(1)At ~~March 31,~~June 30, 2021 and December 31, 2020, cumulative CVA reduced the derivative assets balance by ~~$491~~$488 million and $646 million, cumulative FVA reduced the net derivatives balance by ~~$129~~$162 million and $177 million, and cumulative DVA reduced the derivative liabilities balance by ~~$332~~$301 million and $309 million.


55~~Bank of America~~


						Bank of America60

NOTE 4 Securities

The table below presents the amortized cost, gross unrealized gains and losses, and fair value of available-for-sale (AFS) debt securities, other debt securities carried at fair value and held-to-maturity (HTM) debt securities at ~~March 31,~~June 30, 2021 and December 31, 2020.


Debt Securities	Debt Securities									Debt Securities

		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in millions)	(Dollars in millions)	March 31, 2021								(Dollars in millions)	June 30, 2021
Available-for-sale debt securities	Available-for-sale debt securities									Available-for-sale debt securities
Mortgage-backed securities:	Mortgage-backed securities:									Mortgage-backed securities:
Agency	Agency	$	52,395	$	2,169	$	(30)	$	54,534	Agency	$	56,258	$	1,696	$	(65)	$	57,889
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	4,618		132		(17)		4,733		Agency-collateralized mortgage obligations	4,111		123		(8)		4,226
Commercial	Commercial	16,013		840		(53)		16,800		Commercial	18,062		882		(25)		18,919
Non-agency residential (1)	Non-agency residential (1)	871		30		(43)		858		Non-agency residential (1)	829		33		(10)		852
Total mortgage-backed securities	Total mortgage-backed securities	73,897		3,171		(143)		76,925		Total mortgage-backed securities	79,260		2,734		(108)		81,886
U.S. Treasury and agency securities	U.S. Treasury and agency securities	158,352		2,161		(492)		160,021		U.S. Treasury and agency securities	158,691		1,906		(264)		160,333
Non-U.S. securities	Non-U.S. securities	14,767		7		(6)		14,768		Non-U.S. securities	17,165		4		(2)		17,167

Other taxable securities, substantially all asset-backed securities		2,519		43		(4)		2,558
Other taxable securities										Other taxable securities	2,873		48		0		2,921
Total taxable securities	Total taxable securities	249,535		5,382		(645)		254,272		Total taxable securities	257,989		4,692		(374)		262,307
Tax-exempt securities	Tax-exempt securities	16,023		328		(10)		16,341		Tax-exempt securities	15,529		347		(2)		15,874
Total available-for-sale debt securities	Total available-for-sale debt securities	265,558		5,710		(655)		270,613		Total available-for-sale debt securities	273,518		5,039		(376)		278,181
Other debt securities carried at fair value (2)	Other debt securities carried at fair value (2)	10,322		143		(166)		10,299		Other debt securities carried at fair value (2)	10,713		113		(94)		10,732
Total debt securities carried at fair value	Total debt securities carried at fair value	275,880		5,853		(821)		280,912		Total debt securities carried at fair value	284,231		5,152		(470)		288,913
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities		576,031		6,895		(13,668)		569,258
Held-to-maturity debt securities										Held-to-maturity debt securities

Agency mortgage-backed securities										Agency mortgage-backed securities	547,508		6,040		(5,849)		547,699

U.S. Treasury and agency securities										U.S. Treasury and agency securities	94,353		327		(2,017)		92,663

Other taxable securities										Other taxable securities	9,573		246		(156)		9,663

Total held-to-maturity debt securities										Total held-to-maturity debt securities	651,434		6,613		(8,022)		650,025
Total debt securities (3,4)	Total debt securities (3,4)	$	851,911	$	12,748	$	(14,489)	$	850,170	Total debt securities (3,4)	$	935,665	$	11,765	$	(8,492)	$	938,938

		December 31, 2020									December 31, 2020
Available-for-sale debt securities	Available-for-sale debt securities									Available-for-sale debt securities
Mortgage-backed securities:	Mortgage-backed securities:									Mortgage-backed securities:
Agency	Agency	$	59,518	$	2,370	$	(39)	$	61,849	Agency	$	59,518	$	2,370	$	(39)	$	61,849
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	5,112		161		(13)		5,260		Agency-collateralized mortgage obligations	5,112		161		(13)		5,260
Commercial	Commercial	15,470		1,025		(4)		16,491		Commercial	15,470		1,025		(4)		16,491
Non-agency residential (1)	Non-agency residential (1)	899		127		(17)		1,009		Non-agency residential (1)	899		127		(17)		1,009
Total mortgage-backed securities	Total mortgage-backed securities	80,999		3,683		(73)		84,609		Total mortgage-backed securities	80,999		3,683		(73)		84,609
U.S. Treasury and agency securities	U.S. Treasury and agency securities	114,157		2,236		(13)		116,380		U.S. Treasury and agency securities	114,157		2,236		(13)		116,380
Non-U.S. securities	Non-U.S. securities	14,009		15		(7)		14,017		Non-U.S. securities	14,009		15		(7)		14,017

Other taxable securities, substantially all asset-backed securities		2,656		61		(6)		2,711
Other taxable securities										Other taxable securities	2,656		61		(6)		2,711
Total taxable securities	Total taxable securities	211,821		5,995		(99)		217,717		Total taxable securities	211,821		5,995		(99)		217,717
Tax-exempt securities	Tax-exempt securities	16,417		389		(32)		16,774		Tax-exempt securities	16,417		389		(32)		16,774
Total available-for-sale debt securities	Total available-for-sale debt securities	228,238		6,384		(131)		234,491		Total available-for-sale debt securities	228,238		6,384		(131)		234,491
Other debt securities carried at fair value (2)	Other debt securities carried at fair value (2)	11,720		429		(39)		12,110		Other debt securities carried at fair value (2)	11,720		429		(39)		12,110
Total debt securities carried at fair value	Total debt securities carried at fair value	239,958		6,813		(170)		246,601		Total debt securities carried at fair value	239,958		6,813		(170)		246,601
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities		438,279		10,095		(194)		448,180
Held-to-maturity debt securities										Held-to-maturity debt securities

Agency mortgage-backed securities										Agency mortgage-backed securities	414,289		9,768		(36)		424,021

U.S. Treasury and agency securities										U.S. Treasury and agency securities	16,084		0		(71)		16,013

Other taxable securities										Other taxable securities	7,906		327		(87)		8,146

Total held-to-maturity debt securities										Total held-to-maturity debt securities	438,279		10,095		(194)		448,180
Total debt securities (3, 4)	Total debt securities (3, 4)	$	678,237	$	16,908	$	(364)	$	694,781	Total debt securities (3, 4)	$	678,237	$	16,908	$	(364)	$	694,781

(1)At ~~March 31,~~both June 30, 2021 and December 31, 2020, the underlying collateral type included approximately 37 percent prime, ~~as of both dates, 1 percent and~~ 2 percent Alt-A ~~and 62 percent~~ and 61 percent subprime.

(2)Primarily includes non-U.S. securities used to satisfy certain international regulatory requirements. Any changes in value are reported in market making and similar activities. For detail on the components, see Note 14 – Fair Value Measurements.

(3)Includes securities pledged as collateral of ~~$78.0~~$82.8 billion and $65.5 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

(4)The Corporation held debt securities from Fannie Mae (FNMA) and Freddie Mac (FHLMC) that each exceeded 10 percent of shareholders’ equity, with an amortized cost of ~~$312.6~~$338.3 billion and ~~$164.2~~$197.8 billion, and a fair value of ~~$312.1~~$339.7 billion and ~~$162.1~~$197.3 billion at ~~March 31,~~June 30, 2021, and an amortized cost of $260.1 billion and $118.1 billion, and a fair value of $267.5 billion and $120.7 billion at December 31, 2020.

At ~~March 31,~~June 30, 2021, the accumulated net unrealized gain on AFS debt securities, excluding the amount related to debt securities previously transferred to held to maturity, included in accumulated OCI was ~~$3.8~~$3.5 billion, net of the related income tax expense of ~~$1.3~~$1.2 billion. The Corporation had nonperforming AFS debt securities of $19 million and $20 million at ~~both March 31,~~June 30, 2021 and December 31, 2020.

At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation had ~~$236.1~~$241.4 billion and $200.0 billion in AFS debt securities, which were primarily U.S. agency and U.S. Treasury securities that have a zero credit loss assumption. For the remaining $36.8 billion and $34.5 billion in AFS debt securities at ~~both March 31,~~June 30, 2021 and December 31, 2020, the amount of expected credit

losses was insignificant. Substantially all of the


61Bank of America

Corporation's HTM debt securities ~~are~~consist of U.S. agency ~~MBS~~and U.S. Treasury securities and have a zero credit loss assumption.

At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation held equity securities at an aggregate fair value of ~~$758~~$616 million and $769 million and other equity securities, as valued under the measurement alternative, at a carrying value of ~~$255~~$270 million and $240 million, both of which are included in other assets. At ~~both March 31,~~June 30, 2021 and December 31, 2020, the Corporation also held money market investments at a fair value of $1.5 billion and $1.6 billion, which are included in time deposits placed and other short-term investments.


						~~Bank of America~~56

~~During~~In the three months ended ~~March 31,~~June 30, 2021, sales of AFS securities were not significant. In the six months ended June 30, 2021, the Corporation recorded gross realized gains on the

sales of AFS debt securities of $15 million and gross realized losses of $15 million. For the same ~~period~~periods in 2020, the Corporation recorded gross realized gains of ~~$316~~$63 million and $379 million and gross realized losses of $1 million and $2 million, resulting in a net ~~gain~~gains of ~~$315~~$62 million and $377 million, with ~~$79~~$15 million and $94 million of income taxes attributable to the realized net gains on sales of these AFS debt securities.

The table below presents the fair value and the associated gross unrealized losses on AFS debt securities and whether these securities have had gross unrealized losses for less than 12 months or for 12 months or longer at ~~March 31,~~June 30, 2021 and December 31, 2020.


Total AFS Debt Securities in a Continuous Unrealized Loss Position	Total AFS Debt Securities in a Continuous Unrealized Loss Position													Total AFS Debt Securities in a Continuous Unrealized Loss Position

		Less than Twelve Months				Twelve Months or Longer				Total					Less than Twelve Months				Twelve Months or Longer				Total
		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(Dollars in millions)	(Dollars in millions)	March 31, 2021												(Dollars in millions)	June 30, 2021
Continuously unrealized loss-positioned AFS debt securities	Continuously unrealized loss-positioned AFS debt securities													Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:	Mortgage-backed securities:													Mortgage-backed securities:
Agency	Agency	$	2,111	$	(30)	$	0	$	0	$	2,111	$	(30)	Agency	$	11,555	$	(41)	$	1,114	$	(24)	$	12,669	$	(65)
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	1,864		(10)		316		(7)		2,180		(17)		Agency-collateralized mortgage obligations	1,661		0		301		(8)		1,962		(8)
Commercial	Commercial	1,177		(53)		2		0		1,179		(53)		Commercial	1,535		(25)		2		0		1,537		(25)
Non-agency residential	Non-agency residential	540		(28)		175		(15)		715		(43)		Non-agency residential	498		0		158		(10)		656		(10)
Total mortgage-backed securities	Total mortgage-backed securities	5,692		(121)		493		(22)		6,185		(143)		Total mortgage-backed securities	15,249		(66)		1,575		(42)		16,824		(108)
U.S. Treasury and agency securities	U.S. Treasury and agency securities	39,989		(488)		689		(4)		40,678		(492)		U.S. Treasury and agency securities	56,061		(259)		695		(5)		56,756		(264)
Non-U.S. securities	Non-U.S. securities	66		(1)		625		(5)		691		(6)		Non-U.S. securities	0		0		105		(2)		105		(2)

Other taxable securities, substantially all asset-backed securities		253		(2)		203		(2)		456		(4)
Other taxable securities														Other taxable securities	291		0		56		0		347		0
Total taxable securities	Total taxable securities	46,000		(612)		2,010		(33)		48,010		(645)		Total taxable securities	71,601		(325)		2,431		(49)		74,032		(374)
Tax-exempt securities	Tax-exempt securities	0		0		208		(10)		208		(10)		Tax-exempt securities	11		0		185		(2)		196		(2)

Total AFS debt securities in a continuous unrealized loss position	Total AFS debt securities in a continuous unrealized loss position	$	46,000	$	(612)	$	2,218	$	(43)	$	48,218	$	(655)	Total AFS debt securities in a continuous unrealized loss position	$	71,612	$	(325)	$	2,616	$	(51)	$	74,228	$	(376)

		December 31, 2020													December 31, 2020
Continuously unrealized loss-positioned AFS debt securities	Continuously unrealized loss-positioned AFS debt securities													Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:	Mortgage-backed securities:													Mortgage-backed securities:
Agency	Agency	$	2,841	$	(39)	$	2	$	0	$	2,843	$	(39)	Agency	$	2,841	$	(39)	$	2	$	0	$	2,843	$	(39)
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	187		(2)		364		(11)		551		(13)		Agency-collateralized mortgage obligations	187		(2)		364		(11)		551		(13)
Commercial	Commercial	566		(4)		9		0		575		(4)		Commercial	566		(4)		9		0		575		(4)
Non-agency residential	Non-agency residential	342		(9)		56		(8)		398		(17)		Non-agency residential	342		(9)		56		(8)		398		(17)
Total mortgage-backed securities	Total mortgage-backed securities	3,936		(54)		431		(19)		4,367		(73)		Total mortgage-backed securities	3,936		(54)		431		(19)		4,367		(73)
U.S. Treasury and agency securities	U.S. Treasury and agency securities	8,282		(9)		498		(4)		8,780		(13)		U.S. Treasury and agency securities	8,282		(9)		498		(4)		8,780		(13)
Non-U.S. securities	Non-U.S. securities	1,861		(6)		135		(1)		1,996		(7)		Non-U.S. securities	1,861		(6)		135		(1)		1,996		(7)

Other taxable securities, substantially all asset-backed securities		576		(2)		396		(4)		972		(6)
Other taxable securities														Other taxable securities	576		(2)		396		(4)		972		(6)
Total taxable securities	Total taxable securities	14,655		(71)		1,460		(28)		16,115		(99)		Total taxable securities	14,655		(71)		1,460		(28)		16,115		(99)
Tax-exempt securities	Tax-exempt securities	4,108		(29)		617		(3)		4,725		(32)		Tax-exempt securities	4,108		(29)		617		(3)		4,725		(32)

Total AFS debt securities in a continuous unrealized loss position	Total AFS debt securities in a continuous unrealized loss position	$	18,763	$	(100)	$	2,077	$	(31)	$	20,840	$	(131)	Total AFS debt securities in a continuous unrealized loss position	$	18,763	$	(100)	$	2,077	$	(31)	$	20,840	$	(131)


57~~Bank of America~~


						Bank of America62

The remaining contractual maturity distribution and yields of the Corporation’s debt securities carried at fair value and HTM debt securities at ~~March 31,~~June 30, 2021 are summarized in the table below. Actual duration and yields may differ as prepayments on the loans underlying the MBS or other ~~asset backed~~asset-backed securities (ABS) are passed through to the Corporation.


Maturities of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities	Maturities of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities																					Maturities of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities

		Due in One Year or Less				Due after One Year through Five Years				Due after Five Years through Ten Years				Due after Ten Years				Total					Due in One Year or Less				Due after One Year through Five Years				Due after Five Years through Ten Years				Due after Ten Years				Total
(Dollars in millions)	(Dollars in millions)	Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)		(Dollars in millions)	Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)
Amortized cost of debt securities carried at fair value	Amortized cost of debt securities carried at fair value																					Amortized cost of debt securities carried at fair value
Mortgage-backed securities:	Mortgage-backed securities:																					Mortgage-backed securities:
Agency	Agency	$	0	0	%	$	6	5.14	%	$	54	4.46	%	$	52,335	3.36	%	$	52,395	3.36	%	Agency	$	0	0	%	$	7	5.39	%	$	54	4.48	%	$	56,197	3.14	%	$	56,258	3.14	%
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	0		0		0		0		23		2.48		4,595		2.93		4,618		2.93		Agency-collateralized mortgage obligations	0		0		0		0		21		2.50		4,090		2.92		4,111		2.92
Commercial	Commercial	26		3.12		7,859		2.51		6,984		2.18		1,157		2.53		16,026		2.37		Commercial	364		2.31		8,408		2.50		6,765		1.94		2,538		2.16		18,075		2.24
Non-agency residential	Non-agency residential	0		0		0		0		0		0		1,573		6.55		1,573		6.55		Non-agency residential	0		0		0		0		0		0		1,500		6.55		1,500		6.55
Total mortgage-backed securities	Total mortgage-backed securities	26		3.12		7,865		2.51		7,061		2.20		59,660		3.39		74,612		3.18		Total mortgage-backed securities	364		2.31		8,415		2.50		6,840		1.96		64,325		3.17		79,944		2.99
U.S. Treasury and agency securities	U.S. Treasury and agency securities	6,886		1.19		28,191		1.88		123,796		0.79		32		2.54		158,905		1.00		U.S. Treasury and agency securities	4,558		1.11		29,528		1.85		125,093		0.81		32		2.53		159,211		1.02
Non-U.S. securities	Non-U.S. securities	22,288		0.34		1,365		1.51		1		3.56		167		5.29		23,821		0.44		Non-U.S. securities	24,990		0.31		1,291		1.75		330		1.12		65		20.09		26,676		0.44

Other taxable securities, substantially all asset-backed securities		990		1.19		903		2.98		370		2.20		256		1.66		2,519		2.03
Other taxable securities																						Other taxable securities	869		1.37		1,401		2.24		352		1.85		251		1.63		2,873		1.88
Total taxable securities	Total taxable securities	30,190		0.56		38,324		2.03		131,228		0.87		60,115		3.39		259,857		1.60		Total taxable securities	30,781		0.48		40,635		1.99		132,615		0.88		64,673		3.18		268,704		1.55
Tax-exempt securities	Tax-exempt securities	1,302		0.92		8,131		1.28		4,038		1.73		2,552		1.32		16,023		1.37		Tax-exempt securities	1,426		1.04		8,124		1.31		3,414		1.68		2,563		1.32		15,527		1.37
Total amortized cost of debt securities carried at fair value	Total amortized cost of debt securities carried at fair value	$	31,492	0.57		$	46,455	1.89		$	135,266	0.90		$	62,667	3.31		$	275,880	1.57		Total amortized cost of debt securities carried at fair value	$	32,207	0.51		$	48,759	1.88		$	136,029	0.90		$	67,236	3.11		$	284,231	1.55
Amortized cost of HTM debt securities ~~(2)~~	Amortized cost of HTM debt securities ~~(2)~~	$	49	2.02		$	625	2.42		$	61,566	1.27		$	513,791	2.23		$	576,031	2.13		Amortized cost of HTM debt securities ~~(2)~~

Agency mortgage-backed securities																						Agency mortgage-backed securities	$	0	0	%	$	0	0	%	$	0	0	%	$	547,508	2.18	%	$	547,508	2.18	%

U.S. Treasury and agency securities																						U.S. Treasury and agency securities	0		0		0		0		94,353		1.37		0		0		94,353		1.37

Other taxable securities																						Other taxable securities	54		2.71		715		2.42		401		2.85		8,403		2.55		9,573		2.55

Total amortized cost of HTM debt securities																						Total amortized cost of HTM debt securities	$	54	2.71		$	715	2.42		$	94,754	1.38		$	555,911	2.19		$	651,434	2.07

Debt securities carried at fair value	Debt securities carried at fair value																					Debt securities carried at fair value
Mortgage-backed securities:	Mortgage-backed securities:																					Mortgage-backed securities:
Agency	Agency	$	0			$	6			$	58			$	54,470			$	54,534			Agency	$	0			$	6			$	60			$	57,823			$	57,889
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	0				0				24				4,709				4,733				Agency-collateralized mortgage obligations	0				0				21				4,205				4,226
Commercial	Commercial	27				8,294				7,300				1,192				16,813				Commercial	369				8,884				7,050				2,629				18,932
Non-agency residential	Non-agency residential	0				0				6				1,605				1,611				Non-agency residential	0				0				6				1,579				1,585
Total mortgage-backed securities	Total mortgage-backed securities	27				8,300				7,388				61,976				77,691				Total mortgage-backed securities	369				8,890				7,137				66,236				82,632
U.S. Treasury and agency securities	U.S. Treasury and agency securities	6,918				29,464				124,159				33				160,574				U.S. Treasury and agency securities	4,582				30,758				125,479				33				160,852
Non-U.S. securities	Non-U.S. securities	22,209				1,373				1				162				23,745				Non-U.S. securities	24,930				1,304				334				66				26,634

Other taxable securities, substantially all asset-backed securities		992				937				375				257				2,561
Other taxable securities																						Other taxable securities	873				1,431				361				256				2,921
Total taxable securities	Total taxable securities	30,146				40,074				131,923				62,428				264,571				Total taxable securities	30,754				42,383				133,311				66,591				273,039
Tax-exempt securities	Tax-exempt securities	1,306				8,252				4,191				2,592				16,341				Tax-exempt securities	1,431				8,284				3,552				2,607				15,874
Total debt securities carried at fair value	Total debt securities carried at fair value	$	31,452			$	48,326			$	136,114			$	65,020			$	280,912			Total debt securities carried at fair value	$	32,185			$	50,667			$	136,863			$	69,198			$	288,913
Fair value of HTM debt securities (2)		$	49			$	656			$	58,043			$	510,510			$	569,258
Fair value of HTM debt securities																						Fair value of HTM debt securities

Agency mortgage-backed securities																						Agency mortgage-backed securities	$	0			$	0			$	0			$	547,699			$	547,699

U.S. Treasury and agency securities																						U.S. Treasury and agency securities	0				0				92,663				0				92,663

Other taxable securities																						Other taxable securities	53				753				422				8,435				9,663

Total fair value of HTM debt securities																						Total fair value of HTM debt securities	$	53			$	753			$	93,085			$	556,134			$	650,025

(1)The weighted-average yield is computed based on a constant effective interest rate over the contractual life of each security. The average yield considers the contractual coupon and the amortization of premiums and accretion of discounts, excluding the effect of related hedging derivatives.

~~(2)Substantially all U.S. agency MBS.~~

63Bank of America

NOTE 5 Outstanding Loans and Leases and Allowance for Credit Losses

The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at ~~March 31,~~June 30, 2021 and December 31, 2020.


		30-59 Days Past Due (1)			60-89 Days Past Due (1)			90 Days or More Past Due (1)			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due (1)			Loans Accounted for Under the Fair Value Option					Total Outstandings				30-59 Days Past Due (1)			60-89 Days Past Due (1)			90 Days or More Past Due (1)			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due (1)			Loans Accounted for Under the Fair Value Option			Total Outstandings
(Dollars in millions)	(Dollars in millions)	March 31, 2021																		(Dollars in millions)	June 30, 2021
Consumer real estate	Consumer real estate																								Consumer real estate

Residential mortgage	Residential mortgage	$	1,230		$	414		$	1,635		$	3,279		$	211,500							$	214,779		Residential mortgage	$	1,130		$	330		$	1,549		$	3,009		$	211,315					$	214,324
Home equity	Home equity	139			75			362			576			31,502								32,078			Home equity	141			70			343			554			29,915						30,469
Credit card and other consumer	Credit card and other consumer																								Credit card and other consumer
Credit card	Credit card	316			246			755			1,317			71,469								72,786			Credit card	266			177			533			976			74,623						75,599

Direct/Indirect consumer (2)	Direct/Indirect consumer (2)	143			44			27			214			91,523								91,737			Direct/Indirect consumer (2)	125			45			17			187			96,716						96,903
Other consumer	Other consumer	0			0			0			0			132								132			Other consumer	0			0			0			0			172						172
Total consumer	Total consumer	1,828			779			2,779			5,386			406,126								411,512			Total consumer	1,662			622			2,442			4,726			412,741						417,467
Consumer loans accounted for under the fair value option (3)	Consumer loans accounted for under the fair value option (3)																$	693				693			Consumer loans accounted for under the fair value option (3)																$	654		654
Total consumer loans and leases	Total consumer loans and leases	1,828			779			2,779			5,386			406,126			693					412,205			Total consumer loans and leases	1,662			622			2,442			4,726			412,741			654			418,121
Commercial	Commercial																								Commercial

U.S. commercial	U.S. commercial	1,201			220			349			1,770			281,459								283,229			U.S. commercial	224			564			349			1,137			289,983						291,120
Non-U.S. commercial	Non-U.S. commercial	112			26			105			243			91,092								91,335			Non-U.S. commercial	87			24			107			218			97,932						98,150
Commercial real estate (4)	Commercial real estate (4)	44			141			230			415			58,349								58,764			Commercial real estate (4)	107			32			192			331			59,275						59,606
Commercial lease financing	Commercial lease financing	138			25			48			211			16,148								16,359			Commercial lease financing	87			27			53			167			15,601						15,768
U.S. small business commercial (5)	U.S. small business commercial (5)	65			41			107			213			34,673								34,886			U.S. small business commercial (5)	56			29			71			156			29,711						29,867
Total commercial	Total commercial	1,560			453			839			2,852			481,721								484,573			Total commercial	561			676			772			2,009			492,502						494,511
Commercial loans accounted for under the fair value option (3)	Commercial loans accounted for under the fair value option (3)																6,310					6,310			Commercial loans accounted for under the fair value option (3)																6,296			6,296
Total commercial loans and leases	Total commercial loans and leases	1,560			453			839			2,852			481,721			6,310					490,883			Total commercial loans and leases	561			676			772			2,009			492,502			6,296			500,807
Total loans and leases (6)	Total loans and leases (6)	$	3,388		$	1,232		$	3,618		$	8,238		$	887,847		$	7,003				$	903,088		Total loans and leases (6)	$	2,223		$	1,298		$	3,214		$	6,735		$	905,243		$	6,950		$	918,928
Percentage of outstandings	Percentage of outstandings	0.37		%	0.14		%	0.40		%	0.91		%	98.31		%	0.78		%			100.00		%	Percentage of outstandings	0.24		%	0.14		%	0.35		%	0.73		%	98.51		%	0.76		%	100.00		%

(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of ~~$203~~$213 million and nonperforming loans of ~~$128~~$157 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of ~~$100~~$97 million and nonperforming loans of ~~$124~~$129 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of ~~$728~~$687 million. Consumer real estate loans current or less than 30 days past due includes $1.5 billion and direct/indirect consumer includes ~~$53~~$48 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(2)Total outstandings primarily includes auto and specialty lending loans and leases of ~~$45.4~~$46.4 billion, U.S. securities-based lending loans of ~~$42.4~~$46.4 billion and non-U.S. consumer loans of ~~$3.1~~$3.0 billion.

(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of ~~$275~~$257 million and home equity loans of ~~$418~~$397 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of ~~$4.2~~$4.4 billion and non-U.S. commercial loans of ~~$2.1~~$1.9 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.

(4)Total outstandings includes U.S. commercial real estate loans of $55.8 billion and non-U.S. commercial real estate loans of ~~$3.0~~$3.8 billion.

(5)Includes Paycheck Protection Program loans.

(6)Total outstandings includes loans and leases pledged as collateral of ~~$15.3~~$12.8 billion. The Corporation also pledged ~~$145.5~~$153.0 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.


59~~Bank of America~~


						Bank of America64


		30-59 Days Past Due (1)			60-89 Days Past Due (1)			90 Days or More Past Due (1)			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due (1)			Loans Accounted for Under the Fair Value Option					Total Outstandings				30-59 Days Past Due (1)			60-89 Days Past Due (1)			90 Days or More Past Due (1)			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due (1)			Loans Accounted for Under the Fair Value Option			Total Outstandings
(Dollars in millions)	(Dollars in millions)	December 31, 2020																		(Dollars in millions)	December 31, 2020
Consumer real estate	Consumer real estate																								Consumer real estate

Residential mortgage	Residential mortgage	$	1,430		$	297		$	1,699		$	3,426		$	220,129							$	223,555		Residential mortgage	$	1,430		$	297		$	1,699		$	3,426		$	220,129					$	223,555
Home equity	Home equity	154			78			345			577			33,734								34,311			Home equity	154			78			345			577			33,734						34,311
Credit card and other consumer	Credit card and other consumer																								Credit card and other consumer
Credit card	Credit card	445			341			903			1,689			77,019								78,708			Credit card	445			341			903			1,689			77,019						78,708

Direct/Indirect consumer (2)	Direct/Indirect consumer (2)	209			67			37			313			91,050								91,363			Direct/Indirect consumer (2)	209			67			37			313			91,050						91,363
Other consumer	Other consumer	0			0			0			0			124								124			Other consumer	0			0			0			0			124						124
Total consumer	Total consumer	2,238			783			2,984			6,005			422,056								428,061			Total consumer	2,238			783			2,984			6,005			422,056						428,061
Consumer loans accounted for under the fair value option (3)	Consumer loans accounted for under the fair value option (3)																$	735				735			Consumer loans accounted for under the fair value option (3)																$	735		735
Total consumer loans and leases	Total consumer loans and leases	2,238			783			2,984			6,005			422,056			735					428,796			Total consumer loans and leases	2,238			783			2,984			6,005			422,056			735			428,796
Commercial	Commercial																								Commercial

U.S. commercial	U.S. commercial	561			214			512			1,287			287,441								288,728			U.S. commercial	561			214			512			1,287			287,441						288,728
Non-U.S. commercial	Non-U.S. commercial	61			44			11			116			90,344								90,460			Non-U.S. commercial	61			44			11			116			90,344						90,460
Commercial real estate (4)	Commercial real estate (4)	128			113			226			467			59,897								60,364			Commercial real estate (4)	128			113			226			467			59,897						60,364
Commercial lease financing	Commercial lease financing	86			20			57			163			16,935								17,098			Commercial lease financing	86			20			57			163			16,935						17,098
U.S. small business commercial (5)	U.S. small business commercial (5)	84			56			123			263			36,206								36,469			U.S. small business commercial (5)	84			56			123			263			36,206						36,469
Total commercial	Total commercial	920			447			929			2,296			490,823								493,119			Total commercial	920			447			929			2,296			490,823						493,119
Commercial loans accounted for under the fair value option (3)	Commercial loans accounted for under the fair value option (3)																5,946					5,946			Commercial loans accounted for under the fair value option (3)																5,946			5,946
Total commercial loans and leases	Total commercial loans and leases	920			447			929			2,296			490,823			5,946					499,065			Total commercial loans and leases	920			447			929			2,296			490,823			5,946			499,065

Total loans and leases (6)	Total loans and leases (6)	$	3,158		$	1,230		$	3,913		$	8,301		$	912,879		$	6,681				$	927,861		Total loans and leases (6)	$	3,158		$	1,230		$	3,913		$	8,301		$	912,879		$	6,681		$	927,861
Percentage of outstandings	Percentage of outstandings	0.34		%	0.13		%	0.42		%	0.89		%	98.39		%	0.72		%			100.00		%	Percentage of outstandings	0.34		%	0.13		%	0.42		%	0.89		%	98.39		%	0.72		%	100.00		%

(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $225 million and nonperforming loans of $126 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $103 million and nonperforming loans of $95 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $762 million. Consumer real estate loans current or less than 30 days past due includes $1.2 billion and direct/indirect consumer includes $66 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(2)Total outstandings primarily includes auto and specialty lending loans and leases of $46.4 billion, U.S. securities-based lending loans of $41.1 billion and non-U .S. consumer loans of $3.0 billion.

(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $298 million and home equity loans of $437 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.9 billion and non-U.S. commercial loans of $3.0 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.

(4)Total outstandings includes U.S. commercial real estate loans of $57.2 billion and non-U.S. commercial real estate loans of $3.2 billion.

(5)Includes Paycheck Protection Program loans.

(6)Total outstandings includes loans and leases pledged as collateral of $15.5 billion. The Corporation also pledged $153.1 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.

The Corporation has entered into long-term credit protection agreements with FNMA and FHLMC on loans totaling ~~$9.4~~$10.0 billion and $9.0 billion at ~~March 31,~~June 30, 2021 and December 31, 2020, providing full credit protection on residential mortgage loans that become severely delinquent. All of these loans are individually insured, and therefore the Corporation does not record an allowance for credit losses related to these loans.

Nonperforming Loans and Leases

Commercial nonperforming loans decreased to ~~$2.1~~$1.9 billion at ~~March 31,~~June 30, 2021 from $2.2 billion at December 31, 2020. Consumer nonperforming loans increased to ~~$3.1~~$3.0 billion at ~~March 31,~~June 30, 2021 from $2.7 billion at December 31, 2020 driven by consumer real estate deferral activity.

The following table presents the Corporation’s nonperforming loans and leases including nonperforming troubled debt restructurings (TDRs), and loans accruing past due 90 days or more at ~~March 31,~~June 30, 2021 and December 31, 2020. Nonperforming loans held-for-sale (LHFS) are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. For more information on ~~the Corporation's interest accrual policies, delinquency status for loan modifications related to the pandemic and~~ the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

65Bank of America


Credit Quality	Credit Quality													Credit Quality

		Nonperforming Loans and Leases						Accruing Past Due 90 Days or More (1)							Nonperforming Loans and Leases						Accruing Past Due 90 Days or More (1)

(Dollars in millions)	(Dollars in millions)	March 31 2021			December 31 2020			March 31 2021			December 31 2020			(Dollars in millions)	June 30 2021			December 31 2020			June 30 2021			December 31 2020
Residential mortgage (2)	Residential mortgage (2)	$	2,366		$	2,005		$	728		$	762		Residential mortgage (2)	$	2,343		$	2,005		$	687		$	762
With no related allowance (3)	With no related allowance (3)	1,413			1,378			0			0			With no related allowance (3)	2,019			1,378			0			0
Home equity (2)	Home equity (2)	669			649			0			0			Home equity (2)	651			649			0			0
With no related allowance (3)	With no related allowance (3)	326			347			0			0			With no related allowance (3)	423			347			0			0
Credit Card	Credit Card	n/a			n/a			755			903			Credit Card	n/a			n/a			533			903
Direct/indirect consumer	Direct/indirect consumer	56			71			25			33			Direct/indirect consumer	50			71			15			33

Total consumer	Total consumer	3,091			2,725			1,508			1,698			Total consumer	3,044			2,725			1,235			1,698
U.S. commercial	U.S. commercial	1,228			1,243			99			228			U.S. commercial	1,060			1,243			172			228
Non-U.S. commercial	Non-U.S. commercial	342			418			4			10			Non-U.S. commercial	275			418			19			10
Commercial real estate	Commercial real estate	354			404			63			6			Commercial real estate	404			404			0			6
Commercial lease financing	Commercial lease financing	80			87			20			25			Commercial lease financing	81			87			24			25
U.S. small business commercial	U.S. small business commercial	67			75			98			115			U.S. small business commercial	43			75			69			115
Total commercial	Total commercial	2,071			2,227			284			384			Total commercial	1,863			2,227			284			384
Total nonperforming loans	Total nonperforming loans	$	5,162		$	4,952		$	1,792		$	2,082		Total nonperforming loans	$	4,907		$	4,952		$	1,519		$	2,082
Percentage of outstanding loans and leases	Percentage of outstanding loans and leases	0.58		%	0.54		%	0.20		%	0.23		%	Percentage of outstanding loans and leases	0.54		%	0.54		%	0.17		%	0.23		%

(1)For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(2)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At ~~March 31,~~June 30, 2021 and December 31, 2020 residential mortgage includes ~~$527~~$501 million and $537 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and ~~$201~~$186 million and $225 million of loans on which interest was still accruing.

(3)Primarily relates to loans for which the estimated fair value of the underlying collateral less any costs to sell is greater than the amortized cost of the loans as of the reporting date.

n/a = not applicable

Credit Quality Indicators

The Corporation monitors credit quality within its Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments based on primary credit quality indicators. For more information on the portfolio segments, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K. Within the Consumer Real Estate portfolio segment, the primary credit quality indicators are refreshed loan-to-value (LTV) and refreshed Fair Isaac Corporation (FICO) score. Refreshed LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan, refreshed quarterly. Home equity loans are evaluated using combined loan-to-value (CLTV), which measures the carrying value of the Corporation’s loan and available line of credit combined with any outstanding senior liens against the property as a percentage of the value of the property securing the loan, refreshed quarterly. FICO score measures the creditworthiness of the borrower based on the financial obligations of the borrower and the borrower’s credit history. FICO scores are typically refreshed quarterly or more frequently. Certain borrowers (e.g., borrowers that have had debts discharged in a

bankruptcy proceeding) may not have their FICO scores updated. FICO scores are also a primary credit quality indicator for the Credit Card and Other Consumer portfolio segment and the business card portfolio within U.S. small business commercial. Within the Commercial portfolio segment, loans are evaluated using the internal classifications of pass rated or reservable criticized as the primary credit quality indicators. The term reservable criticized refers to those commercial loans that are internally classified or listed by the Corporation as Special Mention, Substandard or Doubtful, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not considered reservable criticized. In addition to these primary credit quality indicators, the Corporation uses other credit quality indicators for certain types of loans.

The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by class of financing receivables and year of origination for term loan balances at ~~March 31,~~June 30, 2021, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.


61~~Bank of America~~


						Bank of America66

																															Residential Mortgage – Credit Quality Indicators By Vintage
				Term Loans by Origination Year													Term Loans by Origination Year
(Dollars in millions)	(Dollars in millions)	Total as of March 31, 2021		2021		2020		2019		2018		2017		Prior		(Dollars in millions)	Total as of June 30, 2021		2021		2020		2019		2018		2017		Prior
Total Residential Mortgage	Total Residential Mortgage															Total Residential Mortgage
Refreshed LTV	Refreshed LTV															Refreshed LTV
Less than or equal to 90 percent	Less than or equal to 90 percent	$	198,785	$	24,600	$	61,767	$	34,753	$	11,133	$	16,831	$	49,701	Less than or equal to 90 percent	$	198,103	$	44,858	$	55,361	$	30,311	$	9,583	$	14,423	$	43,567
Greater than 90 percent but less than or equal to 100 percent	Greater than 90 percent but less than or equal to 100 percent	2,966		544		1,576		497		75		48		226		Greater than 90 percent but less than or equal to 100 percent	2,790		1,021		1,238		275		46		33		177
Greater than 100 percent	Greater than 100 percent	1,061		265		416		127		34		25		194		Greater than 100 percent	912		385		260		84		22		17		144
Fully-insured loans	Fully-insured loans	11,967		722		4,122		1,693		316		302		4,812		Fully-insured loans	12,519		2,134		3,913		1,512		279		280		4,401
Total Residential Mortgage	Total Residential Mortgage	$	214,779	$	26,131	$	67,881	$	37,070	$	11,558	$	17,206	$	54,933	Total Residential Mortgage	$	214,324	$	48,398	$	60,772	$	32,182	$	9,930	$	14,753	$	48,289

Total Residential Mortgage	Total Residential Mortgage															Total Residential Mortgage
Refreshed FICO score	Refreshed FICO score															Refreshed FICO score
Less than 620	Less than 620	$	2,601	$	316	$	550	$	162	$	131	$	139	$	1,303	Less than 620	$	2,539	$	438	$	507	$	152	$	121	$	137	$	1,184
Greater than or equal to 620 and less than 680	Greater than or equal to 620 and less than 680	5,167		522		1,374		640		405		352		1,874		Greater than or equal to 620 and less than 680	5,002		791		1,277		565		338		333		1,698
Greater than or equal to 680 and less than 740	Greater than or equal to 680 and less than 740	23,267		2,345		6,998		3,670		1,570		1,993		6,691		Greater than or equal to 680 and less than 740	23,440		4,246		6,688		3,267		1,398		1,763		6,078
Greater than or equal to 740	Greater than or equal to 740	171,777		22,226		54,837		30,905		9,136		14,420		40,253		Greater than or equal to 740	170,824		40,789		48,387		26,686		7,794		12,240		34,928
Fully-insured loans	Fully-insured loans	11,967		722		4,122		1,693		316		302		4,812		Fully-insured loans	12,519		2,134		3,913		1,512		279		280		4,401
Total Residential Mortgage	Total Residential Mortgage	$	214,779	$	26,131	$	67,881	$	37,070	$	11,558	$	17,206	$	54,933	Total Residential Mortgage	$	214,324	$	48,398	$	60,772	$	32,182	$	9,930	$	14,753	$	48,289


Home Equity - Credit Quality Indicators	Home Equity - Credit Quality Indicators									Home Equity - Credit Quality Indicators

		Total		Home Equity Loans and Reverse Mortgages (1)		Revolving Loans		Revolving Loans Converted to Term Loans						Total		Home Equity Loans and Reverse Mortgages (1)		Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	(Dollars in millions)	March 31, 2021									(Dollars in millions)	June 30, 2021
Total Home Equity	Total Home Equity												Total Home Equity
Refreshed LTV	Refreshed LTV												Refreshed LTV
Less than or equal to 90 percent	Less than or equal to 90 percent	$	31,330	$	1,885	$	21,131	$	8,314				Less than or equal to 90 percent	$	29,884	$	1,857	$	20,266	$	7,761
Greater than 90 percent but less than or equal to 100 percent	Greater than 90 percent but less than or equal to 100 percent	307		116		82		109					Greater than 90 percent but less than or equal to 100 percent	236		98		62		76
Greater than 100 percent	Greater than 100 percent	441		156		104		181					Greater than 100 percent	349		125		86		138
Total Home Equity	Total Home Equity	$	32,078	$	2,157	$	21,317	$	8,604				Total Home Equity	$	30,469	$	2,080	$	20,414	$	7,975

Total Home Equity	Total Home Equity												Total Home Equity
Refreshed FICO score	Refreshed FICO score												Refreshed FICO score
Less than 620	Less than 620	$	1,046	$	251	$	237	$	558				Less than 620	$	974	$	246	$	217	$	511
Greater than or equal to 620 and less than 680	Greater than or equal to 620 and less than 680	1,686		247		541		898					Greater than or equal to 620 and less than 680	1,574		243		509		822
Greater than or equal to 680 and less than 740	Greater than or equal to 680 and less than 740	5,308		540		2,649		2,119					Greater than or equal to 680 and less than 740	5,027		517		2,559		1,951
Greater than or equal to 740	Greater than or equal to 740	24,038		1,119		17,890		5,029					Greater than or equal to 740	22,894		1,074		17,129		4,691
Total Home Equity	Total Home Equity	$	32,078	$	2,157	$	21,317	$	8,604				Total Home Equity	$	30,469	$	2,080	$	20,414	$	7,975

(1)~~At March 31, 2021, includes~~Includes reverse mortgages of $1.4 billion and home equity loans of ~~$800~~$717 million which are no longer originated.


Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage	Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage																							Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage

		Direct/Indirect																									Direct/Indirect
						Term Loans by Origination Year												Credit Card															Term Loans by Origination Year																		Credit Card
(Dollars in millions)	(Dollars in millions)	Total Direct/Indirect as of March 31, 2021		Revolving Loans		2021		2020		2019		2018		2017		Prior		Total Credit Card as of March 31, 2021		Revolving Loans		Revolving Loans Converted to Term Loans (3)			(Dollars in millions)		Total Direct/ Indirect as of June 30, 2021			Revolving Loans			2021			2020			2019			2018			2017			Prior			Total Credit Card as of June 30, 2021			Revolving Loans			Revolving Loans Converted to Term Loans (1)
Refreshed FICO score	Refreshed FICO score																								Refreshed FICO score
Less than 620	Less than 620	$	830	$	17	$	16	$	120	$	185	$	146	$	192	$	154	$	3,416	$	3,235	$	181		Less than 620		$	704		$	15		$	54		$	107		$	152		$	115		$	149		$	112		$	2,859		$	2,692		$	167
Greater than or equal to 620 and less than 680	Greater than or equal to 620 and less than 680	2,003		18		191		585		476		273		243		217		8,482		8,267		215			Greater than or equal to 620 and less than 680		2,031			16			528			502			402			212			201			170			8,293			8,087			206
Greater than or equal to 680 and less than 740	Greater than or equal to 680 and less than 740	7,230		71		958		2,462		1,722		853		597		567		25,592		25,392		200			Greater than or equal to 680 and less than 740		7,646			67			2,315			2,145			1,484			693			483			459			26,228			26,024			204
Greater than or equal to 740	Greater than or equal to 740	35,592		106		3,750		11,521		9,507		4,982		2,885		2,841		35,296		35,249		47			Greater than or equal to 740		36,196			101			8,352			10,544			8,439			4,046			2,384			2,330			38,219			38,170			49
Other internal credit metrics (1, 2)		46,082		45,490		46		79		119		87		65		196		0		0		0
Other internal credit metrics (2,3)																								Other internal credit metrics (2,3)		50,326			49,307			519			79			96			83			65			177			0			0			0
Total credit card and other consumer	Total credit card and other consumer	$	91,737	$	45,702	$	4,961	$	14,767	$	12,009	$	6,341	$	3,982	$	3,975	$	72,786	$	72,143	$	643		Total credit card and other consumer		$	96,903		$	49,506		$	11,768		$	13,377		$	10,573		$	5,149		$	3,282		$	3,248		$	75,599		$	74,973		$	626

(1)Represents TDRs that were modified into term loans.

(2)Other internal credit metrics may include delinquency status, geography or other factors.

~~(2)~~(3)Direct/indirect consumer includes ~~$45.5~~$49.3 billion of securities-based lending which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at ~~March 31,~~June 30, 2021.


67Bank of America



Commercial – Credit Quality Indicators By Vintage (1, 2)
			Term Loans
			Amortized Cost Basis by Origination Year

(Dollars in millions)	Total as of June 30, 2021		2021		2020		2019		2018		2017		Prior		Revolving Loans
U.S. Commercial
Risk ratings
Pass rated	$	277,504	$	25,307	$	25,782	$	28,019	$	13,523	$	12,219	$	27,464	$	145,190
Reservable criticized	13,616		294		1,342		1,696		2,192		661		1,485		5,946
Total U.S. Commercial	$	291,120	$	25,601	$	27,124	$	29,715	$	15,715	$	12,880	$	28,949	$	151,136

Non-U.S. Commercial
Risk ratings
Pass rated	$	94,717	$	11,442	$	11,854	$	8,529	$	5,739	$	3,445	$	3,071	$	50,637
Reservable criticized	3,433		285		395		644		397		331		367		1,014
Total Non-U.S. Commercial	$	98,150	$	11,727	$	12,249	$	9,173	$	6,136	$	3,776	$	3,438	$	51,651

Commercial Real Estate
Risk ratings
Pass rated	$	50,781	$	4,669	$	7,940	$	13,339	$	7,356	$	4,183	$	8,528	$	4,766
Reservable criticized	8,825		162		1,025		2,403		2,030		1,179		1,481		545
Total Commercial Real Estate	$	59,606	$	4,831	$	8,965	$	15,742	$	9,386	$	5,362	$	10,009	$	5,311

Commercial Lease Financing
Risk ratings
Pass rated	$	15,035	$	1,090	$	2,793	$	2,896	$	2,396	$	2,194	$	3,666	$	0
Reservable criticized	733		122		71		155		106		72		207		0
Total Commercial Lease Financing	$	15,768	$	1,212	$	2,864	$	3,051	$	2,502	$	2,266	$	3,873	$	0

U.S. Small Business Commercial (3)
Risk ratings
Pass rated	$	22,235	$	9,756	$	8,245	$	1,124	$	816	$	702	$	1,438	$	154
Reservable criticized	696		4		49		145		131		98		264		5
Total U.S. Small Business Commercial	$	22,931	$	9,760	$	8,294	$	1,269	$	947	$	800	$	1,702	$	159
Total	$	487,575	$	53,131	$	59,496	$	58,950	$	34,686	$	25,084	$	47,971	$	208,257

(1) Excludes $6.3 billion of loans accounted for under the fair value option at June 30, 2021.

(2) Includes $40 million of loans that converted from revolving to term loans.

(3)~~Represents TDRs that were modified into term loans.~~ Excludes U.S. Small Business Card loans of $6.9 billion. Refreshed FICO scores for this portfolio are $193 million for less than 620; $555 million for greater than or equal to 620 and less than 680; $1.8 billion for greater than or equal to 680 and less than 740; and $4.4 billion greater than or equal to 740.


						Bank of America 6268

Commercial – Credit Quality Indicators By Vintage (1, 2)
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in millions) Total as of March 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans
U.S. Commercial
Risk ratings
Pass rated $ 266,387 $ 9,884 $ 29,264 $ 31,405 $ 15,382 $ 13,010 $ 28,776 $ 138,666
Reservable criticized 16,842 72 1,512 2,339 2,594 793 1,844 7,688
Total U.S. Commercial $ 283,229 $ 9,956 $ 30,776 $ 33,744 $ 17,976 $ 13,803 $ 30,620 $ 146,354
Non-U.S. Commercial
Risk ratings
Pass rated $ 87,089 $ 4,618 $ 13,801 $ 9,692 $ 6,189 $ 3,595 $ 3,165 $ 46,029
Reservable criticized 4,246 272 809 736 498 395 397 1,139
Total Non-U.S. Commercial $ 91,335 $ 4,890 $ 14,610 $ 10,428 $ 6,687 $ 3,990 $ 3,562 $ 47,168
Commercial Real Estate
Risk ratings
Pass rated $ 49,019 $ 1,535 $ 8,053 $ 13,295 $ 7,503 $ 4,590 $ 9,241 $ 4,802
Reservable criticized 9,745 143 794 2,688 2,225 1,356 1,910 629
Total Commercial Real Estate $ 58,764 $ 1,678 $ 8,847 $ 15,983 $ 9,728 $ 5,946 $ 11,151 $ 5,431
Commercial Lease Financing
Risk ratings
Pass rated $ 15,666 $ 437 $ 2,938 $ 3,123 $ 2,597 $ 2,331 $ 4,240 $ 0
Reservable criticized 693 28 110 148 112 70 225 0
Total Commercial Lease Financing $ 16,359 $ 465 $ 3,048 $ 3,271 $ 2,709 $ 2,401 $ 4,465 $ 0
U.S. Small Business Commercial (3)
Risk ratings
Pass rated $ 27,410 $ 8,323 $ 15,411 $ 1,118 $ 829 $ 729 $ 838 $ 162
Reservable criticized 911 2 60 201 173 131 335 9
Total U.S. Small Business Commercial $ 28,321 $ 8,325 $ 15,471 $ 1,319 $ 1,002 $ 860 $ 1,173 $ 171
Total $ 478,008 $ 25,314 $ 72,752 $ 64,745 $ 38,102 $ 27,000 $ 50,971 $ 199,124

~~(1)~~ ~~Excludes $6.3 billion of loans accounted for under the fair value option at March 31, 2021.~~

~~(2)~~ ~~Includes $41 million of loans that converted from revolving to term loans.~~

~~(3)~~ Excludes U.S. Small Business Card loans of $6.6 billion. Refreshed FICO scores for this portfolio are $230 million for less than 620; $553 million for greater than or equal to 620 and less than 680; $1.7 billion for greater than or equal to 680 and less than 740; and $4.1 billion greater than or equal to 740.


63~~Bank of America~~

The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by class of financing receivables and year of origination for term loan balances at December 31, 2020, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.

																															Residential Mortgage – Credit Quality Indicators By Vintage
				Term Loans by Origination Year													Term Loans by Origination Year
(Dollars in millions)	(Dollars in millions)	Total as of December 31, 2020		2020		2019		2018		2017		2016		Prior		(Dollars in millions)	Total as of December 31, 2020		2020		2019		2018		2017		2016		Prior
Total Residential Mortgage	Total Residential Mortgage															Total Residential Mortgage
Refreshed LTV	Refreshed LTV															Refreshed LTV
Less than or equal to 90 percent	Less than or equal to 90 percent	$	207,389	$	68,907	$	43,771	$	14,658	$	21,589	$	22,967	$	35,497	Less than or equal to 90 percent	$	207,389	$	68,907	$	43,771	$	14,658	$	21,589	$	22,967	$	35,497
Greater than 90 percent but less than or equal to 100 percent	Greater than 90 percent but less than or equal to 100 percent	3,138		1,970		684		128		70		96		190		Greater than 90 percent but less than or equal to 100 percent	3,138		1,970		684		128		70		96		190
Greater than 100 percent	Greater than 100 percent	1,210		702		174		47		39		37		211		Greater than 100 percent	1,210		702		174		47		39		37		211
Fully-insured loans	Fully-insured loans	11,818		3,826		2,014		370		342		1,970		3,296		Fully-insured loans	11,818		3,826		2,014		370		342		1,970		3,296
Total Residential Mortgage	Total Residential Mortgage	$	223,555	$	75,405	$	46,643	$	15,203	$	22,040	$	25,070	$	39,194	Total Residential Mortgage	$	223,555	$	75,405	$	46,643	$	15,203	$	22,040	$	25,070	$	39,194

Total Residential Mortgage	Total Residential Mortgage															Total Residential Mortgage
Refreshed FICO score	Refreshed FICO score															Refreshed FICO score
Less than 620	Less than 620	$	2,717	$	823	$	177	$	139	$	170	$	150	$	1,258	Less than 620	$	2,717	$	823	$	177	$	139	$	170	$	150	$	1,258
Greater than or equal to 620 and less than 680	Greater than or equal to 620 and less than 680	5,462		1,804		666		468		385		368		1,771		Greater than or equal to 620 and less than 680	5,462		1,804		666		468		385		368		1,771
Greater than or equal to 680 and less than 740	Greater than or equal to 680 and less than 740	25,349		8,533		4,679		1,972		2,427		2,307		5,431		Greater than or equal to 680 and less than 740	25,349		8,533		4,679		1,972		2,427		2,307		5,431
Greater than or equal to 740	Greater than or equal to 740	178,209		60,419		39,107		12,254		18,716		20,275		27,438		Greater than or equal to 740	178,209		60,419		39,107		12,254		18,716		20,275		27,438
Fully-insured loans	Fully-insured loans	11,818		3,826		2,014		370		342		1,970		3,296		Fully-insured loans	11,818		3,826		2,014		370		342		1,970		3,296
Total Residential Mortgage	Total Residential Mortgage	$	223,555	$	75,405	$	46,643	$	15,203	$	22,040	$	25,070	$	39,194	Total Residential Mortgage	$	223,555	$	75,405	$	46,643	$	15,203	$	22,040	$	25,070	$	39,194



Home Equity - Credit Quality Indicators

		Total		Home Equity Loans and Reverse Mortgages (1)		Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	December 31, 2020
Total Home Equity
Refreshed LTV
Less than or equal to 90 percent		$	33,447	$	1,919	$	22,639	$	8,889
Greater than 90 percent but less than or equal to 100 percent		351		126		94		131
Greater than 100 percent		513		172		118		223
Total Home Equity		$	34,311	$	2,217	$	22,851	$	9,243

Total Home Equity
Refreshed FICO score
Less than 620		$	1,082	$	250	$	244	$	588
Greater than or equal to 620 and less than 680		1,798		263		568		967
Greater than or equal to 680 and less than 740		5,762		556		2,905		2,301
Greater than or equal to 740		25,669		1,148		19,134		5,387
Total Home Equity		$	34,311	$	2,217	$	22,851	$	9,243

(1)~~At December 31, 2020, includes~~Includes reverse mortgages of $1.3 billion and home equity loans of $885 million which are no longer originated.

69Bank of America


Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage	Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage																							Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage

		Direct/Indirect																									Direct/Indirect
						Term Loans by Origination Year												Credit Card															Term Loans by Origination Year																		Credit Card
(Dollars in millions)	(Dollars in millions)	Total Direct/Indirect as of December 31, 2020		Revolving Loans		2020		2019		2018		2017		2016		Prior		Total Credit Card as of December 31, 2020		Revolving Loans		Revolving Loans Converted to Term Loans (3)			(Dollars in millions)		Total Direct/Indirect as of December 31, 2020			Revolving Loans			2020			2019			2018			2017			2016			Prior			Total Credit Card as of December 31, 2020			Revolving Loans			Revolving Loans Converted to Term Loans (1)
Refreshed FICO score	Refreshed FICO score																								Refreshed FICO score
Less than 620	Less than 620	$	959	$	19	$	111	$	200	$	175	$	243	$	148	$	63	$	4,018	$	3,832	$	186		Less than 620		$	959		$	19		$	111		$	200		$	175		$	243		$	148		$	63		$	4,018		$	3,832		$	186
Greater than or equal to 620 and less than 680	Greater than or equal to 620 and less than 680	2,143		20		653		559		329		301		176		105		9,419		9,201		218			Greater than or equal to 620 and less than 680		2,143			20			653			559			329			301			176			105			9,419			9,201			218
Greater than or equal to 680 and less than 740	Greater than or equal to 680 and less than 740	7,431		80		2,848		2,015		1,033		739		400		316		27,585		27,392		193			Greater than or equal to 680 and less than 740		7,431			80			2,848			2,015			1,033			739			400			316			27,585			27,392			193
Greater than or equal to 740	Greater than or equal to 740	36,064		120		12,540		10,588		5,869		3,495		1,781		1,671		37,686		37,642		44			Greater than or equal to 740		36,064			120			12,540			10,588			5,869			3,495			1,781			1,671			37,686			37,642			44
Other internal credit metrics (1, 2)		44,766		44,098		74		115		84		67		52		276		0		0		0
Other internal credit metrics (2, 3)																								Other internal credit metrics (2, 3)		44,766			44,098			74			115			84			67			52			276			0			0			0
Total credit card and other consumer	Total credit card and other consumer	$	91,363	$	44,337	$	16,226	$	13,477	$	7,490	$	4,845	$	2,557	$	2,431	$	78,708	$	78,067	$	641		Total credit card and other consumer		$	91,363		$	44,337		$	16,226		$	13,477		$	7,490		$	4,845		$	2,557		$	2,431		$	78,708		$	78,067		$	641

(1)Represents TDRs that were modified into term loans.

(2)Other internal credit metrics may include delinquency status, geography or other factors.

~~(2)~~(3)Direct/indirect consumer includes $44.1 billion of securities-based lending which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at December 31, 2020.

~~(3)Represents TDRs that were modified into term loans.~~



Commercial – Credit Quality Indicators By Vintage (1, 2)
			Term Loans
			Amortized Cost Basis by Origination Year

(Dollars in millions)	Total as of December 31, 2020		2020		2019		2018		2017		2016		Prior		Revolving Loans
U.S. Commercial
Risk ratings
Pass rated	$	268,812	$	33,456	$	33,305	$	17,363	$	14,102	$	7,420	$	21,784	$	141,382
Reservable criticized	19,916		2,524		2,542		2,689		854		698		1,402		9,207
Total U.S. Commercial	$	288,728	$	35,980	$	35,847	$	20,052	$	14,956	$	8,118	$	23,186	$	150,589

Non-U.S. Commercial
Risk ratings
Pass rated	$	85,914	$	16,301	$	11,396	$	7,451	$	5,037	$	1,674	$	2,194	$	41,861
Reservable criticized	4,546		914		572		492		436		138		259		1,735
Total Non-U.S. Commercial	$	90,460	$	17,215	$	11,968	$	7,943	$	5,473	$	1,812	$	2,453	$	43,596

Commercial Real Estate
Risk ratings
Pass rated	$	50,260	$	8,429	$	14,126	$	8,228	$	4,599	$	3,299	$	6,542	$	5,037
Reservable criticized	10,104		933		2,558		2,115		1,582		606		1,436		874
Total Commercial Real Estate	$	60,364	$	9,362	$	16,684	$	10,343	$	6,181	$	3,905	$	7,978	$	5,911

Commercial Lease Financing
Risk ratings
Pass rated	$	16,384	$	3,083	$	3,242	$	2,956	$	2,532	$	1,703	$	2,868	$	0
Reservable criticized	714		117		117		132		81		88		179		0
Total Commercial Lease Financing	$	17,098	$	3,200	$	3,359	$	3,088	$	2,613	$	1,791	$	3,047	$	0

U.S. Small Business Commercial (3)
Risk ratings
Pass rated	$	28,786	$	24,539	$	1,121	$	837	$	735	$	527	$	855	$	172
Reservable criticized	1,148		76		239		210		175		113		322		13
Total U.S. Small Business Commercial	$	29,934	$	24,615	$	1,360	$	1,047	$	910	$	640	$	1,177	$	185
Total	$	486,584	$	90,372	$	69,218	$	42,473	$	30,133	$	16,266	$	37,841	$	200,281

(1) Excludes $5.9 billion of loans accounted for under the fair value option at December 31, 2020.

(2) Includes $58 million of loans that converted from revolving to term loans.

(3) Excludes U.S. Small Business Card loans of $6.5 billion. Refreshed FICO scores for this portfolio are $265 million for less than 620; $582 million for greater than or equal to 620 and less than 680; $1.7 billion for greater than or equal to 680 and less than 740; and $3.9 billion greater than or equal to 740.


						Bank of America70

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, commercial asset quality showed signs of stabilization as economic recovery gained momentum. Commercial reservable criticized utilized exposure decreased to ~~$34.3~~$28.9 billion at ~~March 31,~~June 30, 2021 from $38.7 billion (to ~~6.59~~5.45 percent from 7.31 percent of total commercial reservable utilized exposure) at December 31, 2020, which was broad-based across industries.

Troubled Debt Restructurings

The Corporation has been entering into loan modifications with borrowers in response to the pandemic, most of which are not classified as TDRs, and therefore are not included in the following discussion. For more information on the criteria for classifying loans as TDRs, see Note 1 – Summary of Significant


65~~Bank of America~~

Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Consumer Real Estate

Modifications of consumer real estate loans are classified as TDRs when the borrower is experiencing financial difficulties and a concession has been granted. Concessions may include reductions in interest rates, capitalization of past due amounts, principal and/or interest forbearance, payment extensions, principal and/or interest forgiveness, or combinations thereof. Prior to permanently modifying a loan, the Corporation may enter into trial modifications with certain borrowers under both government and proprietary programs. Trial modifications generally represent a three- to four-month period during which the borrower makes monthly payments under the anticipated modified payment terms. Upon successful completion of the trial period, the Corporation and the borrower enter into a permanent modification. Binding trial modifications are classified as TDRs when the trial offer is made and continue to be classified as TDRs regardless of whether the borrower enters into a permanent modification.

Consumer real estate loans of ~~$358~~$343 million that have been discharged in Chapter 7 bankruptcy with no change in repayment terms and not reaffirmed by the borrower were included in TDRs at ~~March 31,~~June 30, 2021, of which ~~$103~~$99 million were classified as nonperforming and ~~$65~~$61 million were loans fully insured.

Consumer real estate TDRs are measured primarily based on the net present value of the estimated cash flows discounted at the loan’s original effective interest rate. If the carrying value of a TDR exceeds this amount, a specific allowance is recorded as

a component of the allowance for loan and lease losses. Alternatively, consumer real estate TDRs that are considered to be dependent solely on the collateral for repayment (e.g., due to the lack of income verification) are measured based on the estimated fair value of the collateral, and a charge-off is recorded if the carrying value exceeds the fair value of the collateral. Consumer real estate loans that reach 180 days past

due prior to modification are charged off to their net realizable value, less costs to sell, before they are modified as TDRs in accordance with established policy. Subsequent declines in the fair value of the collateral after a loan has reached 180 days past due are recorded as charge-offs. Fully-insured loans are protected against principal loss, and therefore, the Corporation does not record an allowance for loan and lease losses on the outstanding principal balance, even after they have been modified in a TDR.

At ~~March 31,~~June 30, 2021 and December 31, 2020, remaining commitments to lend additional funds to debtors whose terms have been modified in a consumer real estate TDR were not significant. Consumer real estate foreclosed properties totaled ~~$101~~$93 million and $123 million at ~~March 31,~~June 30, 2021 and December 31, 2020. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at ~~March 31,~~June 30, 2021 was $1.1 billion. Although the Corporation has ~~paused~~continued to pause formal loan foreclosure proceedings and foreclosure sales for occupied properties, during the ~~three~~six months ended ~~March 31,~~June 30, 2021, the Corporation reclassified ~~$10~~$20 million of consumer real estate loans completed or which were in process prior to the pause in foreclosures, to foreclosed properties or, for properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans), to other assets. The reclassifications represent non-cash investing activities and, accordingly, are not reflected in the Consolidated Statement of Cash Flows.

The table below presents the ~~March 31,~~June 30, 2021 and 2020 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during the three and six months ended ~~March 31,~~June 30, 2021 and 2020. The following Consumer Real Estate portfolio segment tables include loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period.


Consumer Real Estate – TDRs Entered into During the Three Months Ended March 31, 2021 and 2020 (1)
Consumer Real Estate – TDRs Entered into During the Three and Six Months Ended June 30, 2021 and 2020												Consumer Real Estate – TDRs Entered into During the Three and Six Months Ended June 30, 2021 and 2020

		Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate (2)					Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate (1)		Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate (1)
(Dollars in millions)	(Dollars in millions)	March 31, 2021								(Dollars in millions)	Three Months Ended June 30, 2021				Six Months Ended June 30, 2021

Residential mortgage	Residential mortgage	$	519	$	464	3.50	%	3.48	%			Residential mortgage	$	522	$	466	3.53	%	3.51	%	$	744	$	667	3.51	%	3.49	%
Home equity	Home equity	62		49		3.43		3.44				Home equity	62		47		3.58		3.61		83		63		3.55		3.58
Total	Total	$	581	$	513	3.49		3.48				Total	$	584	$	513	3.53		3.52		$	827	$	730	3.52		3.50

													Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
		March 31, 2020
Residential mortgage	Residential mortgage	$	122	$	103	4.04	%	3.94	%			Residential mortgage	$	120	$	103	4.22	%	4.19	%	$	219	$	185	4.10	%	4.01	%
Home equity	Home equity	23		20		4.69		4.68				Home equity	22		18		3.68		3.65		45		38		3.99		3.92
Total	Total	$	145	$	123	4.15		4.06				Total	$	142	$	121	4.14		4.11		$	264	$	223	4.08		3.99

(1)~~For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see~~ ~~Note 1 – Summary of Significant Accounting Principles~~ ~~to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.~~

~~(2)~~The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.


71Bank of America

The ~~following~~ table below presents the ~~March 31,~~June 30, 2021 and 2020 carrying value for consumer real estate loans that were modified in a TDR during the three and six months ended ~~March 31,~~June 30, 2021 and 2020, by type of modification.


						~~Bank of America~~66


Consumer Real Estate – Modification Programs ~~(1)~~	Consumer Real Estate – Modification Programs ~~(1)~~							Consumer Real Estate – Modification Programs ~~(1)~~

		TDRs Entered into During the Three Months Ended March 31				TDRs Entered into During the
							Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020				(Dollars in millions)	2021		2020			2021		2020
Modifications under government programs	Modifications under government programs	$	1	$	1			Modifications under government programs	$	1	$	0		$	3	$	3

Modifications under proprietary programs	Modifications under proprietary programs	472		28				Modifications under proprietary programs	479		20			665		59

Loans discharged in Chapter 7 bankruptcy ~~(2)~~(1)	Loans discharged in Chapter 7 bankruptcy ~~(2)~~(1)	11		15				Loans discharged in Chapter 7 bankruptcy ~~(2)~~(1)	12		21			22		32
Trial modifications	Trial modifications	29		79				Trial modifications	21		80			40		129
Total modifications	Total modifications	$	513	$	123			Total modifications	$	513	$	121		$	730	$	223

~~(2)~~Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.

The table below presents the carrying value of consumer real estate loans that entered into payment default during the three and six months ended ~~March 31,~~June 30, 2021 and 2020 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate TDRs is recognized when a borrower has missed 3 monthly payments (not necessarily consecutively) since modification.


Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months ~~(1)~~	Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months ~~(1)~~					Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months ~~(1)~~

		Three Months Ended March 31					Three Months Ended June 30	Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020					(Dollars in millions)	2021		2020		2021		2020
Modifications under government programs	Modifications under government programs	$	1	$	6						Modifications under government programs	$	1	$	2	$	2	$	8
Modifications under proprietary programs	Modifications under proprietary programs	12		14							Modifications under proprietary programs	33		5		45		19
Loans discharged in Chapter 7 bankruptcy ~~(2)~~(1)	Loans discharged in Chapter 7 bankruptcy ~~(2)~~(1)	3		7							Loans discharged in Chapter 7 bankruptcy ~~(2)~~(1)	2		4		5		11
Trial modifications ~~(3)~~(2)	Trial modifications ~~(3)~~(2)	6		18							Trial modifications ~~(3)~~(2)	6		12		12		30
Total modifications	Total modifications	$	22	$	45						Total modifications	$	42	$	23	$	64	$	68

~~(2)~~Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.

~~(3)~~(2)Includes trial modification offers to which the customer did not respond.

Credit Card and Other Consumer

The Corporation seeks to assist customers that are experiencing financial difficulty by modifying loans while ensuring compliance with federal and local laws and guidelines. Credit card and other consumer loan modifications generally involve reducing the interest rate on the account, placing the customer on a fixed payment plan not exceeding 60 months and canceling the customer’s available line of credit, all of which are considered TDRs. The Corporation makes loan modifications directly with borrowers for debt held only by the Corporation (internal programs). Additionally, the Corporation makes loan modifications for borrowers working with third-party renegotiation

agencies that provide solutions to customers’ entire unsecured debt structures (external programs). The Corporation classifies other secured consumer loans that have been discharged in Chapter 7 bankruptcy as TDRs, which are written down to collateral value and placed on nonaccrual status no later than the time of discharge.

The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the ~~March 31,~~June 30, 2021 and 2020 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during the three and six months ended ~~March 31,~~June 30, 2021 and 2020.


Credit Card and Other Consumer – TDRs Entered into During the Three Months Ended March 31, 2021 and 2020 (1)

Credit Card and Other Consumer – TDRs Entered into During the Three and Six Months Ended June 30, 2021 and 2020																Credit Card and Other Consumer – TDRs Entered into During the Three and Six Months Ended June 30, 2021 and 2020
		Unpaid Principal Balance		Carrying Value (2)		Pre-Modification Interest Rate		Post-Modification Interest Rate
										Unpaid Principal Balance			Carrying Value (1)	Pre-Modification Interest Rate	Post-Modification Interest Rate				Unpaid Principal Balance			Carrying Value (1)			Pre-Modification Interest Rate			Post-Modification Interest Rate
(Dollars in millions)	(Dollars in millions)	March 31, 2021									(Dollars in millions)	Three Months Ended June 30, 2021								Six Months Ended June 30, 2021

Credit card	Credit card	$	82	$	90	18.55	%	4.97	%							Credit card	$	62		$	68		18.44	%		4.24	%		$	137	$	147	18.48	%	4.53	%

Direct/Indirect consumer	Direct/Indirect consumer	8		5		5.64		5.64								Direct/Indirect consumer	6			4			5.64			5.64			11		7		5.62		5.62

Total	Total	$	90	$	95	17.85		5.01								Total	$	68		$	72		17.75			4.31			$	148	$	154	17.87		4.58

		March 31, 2020										Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
Credit card	Credit card	$	94	$	101	18.52	%	5.30	%							Credit card	$	57		$	61		18.08	%		5.15	%		$	144	$	152	18.02	%	5.24	%

Direct/Indirect consumer	Direct/Indirect consumer	17		9		5.34		5.34								Direct/Indirect consumer	14			8			5.26			5.26			23		12		5.31		5.31

Total	Total	$	111	$	110	17.40		5.30								Total	$	71		$	69		16.61			5.16			$	167	$	164	17.07		5.25

~~(2)~~Includes accrued interest and fees.


						Bank of America72

The ~~following~~ table below presents the ~~March 31,~~June 30, 2021 and 2020 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three and six months ended ~~March 31,~~June 30, 2021 and 2020, by program type.


67~~Bank of America~~

Credit Card and Other Consumer – TDRs by Program Type (1)
TDRs Entered into During the Three Months Ended March 31
(Dollars in millions) 2021 2020
Internal programs $ 74 $ 74
External programs 17 27
Other 4 9
Total $ 95 $ 110

~~(1)Includes accrued interest and fees. For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see~~ ~~Note 1 – Summary of Significant Accounting Principles~~ ~~to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.~~



Credit Card and Other Consumer – TDRs by Program Type




	TDRs Entered into During the Three Months Ended June 30				TDRs Entered into During the Six Months Ended June 30
(Dollars in millions)	2021		2020		2021		2020
Internal programs	$	57	$	43	$	121	$	109
External programs	13		18		29		43
Other	2		8		4		12
Total	$	72	$	69	$	154	$	164

Credit card and other consumer loans are deemed to be in payment default during the quarter in which a borrower misses the second of 2 consecutive payments. Payment defaults are one of the factors considered when projecting future cash flows in the calculation of the allowance for loan and lease losses for credit card and other consumer. Based on historical experience, the Corporation estimates that 1211 percent of new credit card TDRs and 20 percent of new direct/indirect consumer TDRs may be in payment default within 12 months after modification.

Commercial Loans

Modifications of loans to commercial borrowers that are experiencing financial difficulty are designed to reduce the Corporation’s loss exposure while providing the borrower with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Each modification is unique and reflects the individual circumstances of the borrower. Modifications that result in a TDR may include extensions of maturity at a concessionary (below market) rate of interest, payment forbearances or other actions designed to benefit the borrower while mitigating the Corporation’s risk exposure. Reductions in interest rates are rare. Instead, the interest rates are typically increased, although the increased rate may not represent a market rate of interest. Infrequently, concessions may also include principal forgiveness in connection with foreclosure, short sale or other settlement agreements leading to termination or sale of the loan.

At the time of restructuring, the loans are remeasured to reflect the impact, if any, on projected cash flows resulting from the modified terms. If a portion of the loan is deemed to be uncollectible, a charge-off may be recorded at the time of restructuring. Alternatively, a charge-off may have already been recorded in a previous period such that no charge-off is required at the time of modification.

During the three and six months ended ~~March 31,~~June 30, 2021, ~~and 2020,~~ the carrying value of the Corporation’s commercial loans that were modified as TDRs was ~~$680~~$320 million and ~~$876 million.~~$865 million compared to $789 million and $1.3 billion for the same periods in 2020. At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation had ~~$2.0~~$1.9 billion and $1.7 billion of commercial TDRs with remaining

commitments to lend additional funds to debtors of ~~$364~~$343 million and $402 million. The balance of commercial TDRs in payment default was ~~$198~~$149 million and $218 million at ~~March 31,~~June 30, 2021 and December 31, 2020.

Loans Held-for-sale

The Corporation had LHFS of ~~$7.9~~$8.3 billion and $9.2 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were ~~$9.9~~$18.2 billion and ~~$7.5~~$11.1 billion for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020. Cash used for originations and purchases of LHFS totaled approximately ~~$8.3~~$17.0 billion and ~~$6.1~~$9.2 billion for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020.

Accrued Interest Receivable

Accrued interest receivable for loans and leases and loans held-for-sale at ~~both March 31,~~June 30, 2021 and December 31, 2020 was $2.3 billion and $2.4 billion and is reported in customer and other receivables on the Consolidated Balance Sheet.

Outstanding credit card loan balances include unpaid principal, interest and fees. Credit card loans are not classified as nonperforming but are charged off no later than the end of the month in which the account becomes 180 days past due, within 60 days after receipt of notification of death or bankruptcy, or upon confirmation of fraud. During the three and six months ended ~~March 31,~~June 30, 2021, the Corporation reversed ~~$158~~$124 million and $282 million of interest and fee income against the income statement line item in which it was originally recorded upon charge-off of the principal balance of the loan.

For the outstanding residential mortgage, home equity, direct/indirect consumer and commercial loan balances classified as nonperforming during the three and six months ended ~~March 31,~~June 30, 2021, the Corporation reversed $8$9 million and $17 million of interest and fee income at the time the loans were classified as nonperforming against the income statement line item in which it was originally recorded. For more information on the Corporation's nonperforming loan policies, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.


73Bank of America

Allowance for Credit Losses

The allowance for credit losses is estimated using quantitative and qualitative methods that consider a variety of factors, such as historical loss experience, the current credit quality of the portfolio and an economic outlook over the life of the loan. Qualitative reserves cover losses that are expected but, in the Corporation's assessment, may not be adequately reflected in the quantitative methods or the economic assumptions. The Corporation incorporates forward-looking information through the use of several macroeconomic scenarios in determining the weighted economic outlook over the forecasted life of the assets. These scenarios include key macroeconomic variables such as gross domestic product, unemployment rate, real estate prices and corporate bond spreads. The scenarios that are chosen each quarter and the weighting given to each scenario depend on a variety of factors including recent economic events, leading economic indicators, internal and third-party economist views, and industry trends. For more information on the Corporation's credit loss accounting policies including the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

The ~~March 31,~~June 30, 2021 estimate for allowance for credit losses was based on various economic outlooks that included consensus estimates, ~~multiple~~a downside ~~scenarios~~scenario that


						~~Bank of America~~68

assumed a significantly longer period until economic recovery, a tail risk scenario similar to the severely adverse scenario used in stress testing, a scenario to account for inflationary risk and higher interest rates and an upside scenario to reflect the continued improvement in the consensus outlooks. The weighted economic outlook assumed that the U.S. unemployment rate at the end of 2021 will be relatively consistent with the level as of ~~March~~June 2021, which was approximately 6 percent, and continue to decline to slightly above ~~six percent.~~5 percent by the end of 2022. Additionally, in this economic outlook, year-over-year U.S. gross

domestic product ~~was assumed~~is forecasted to ~~return to pre-pandemic levels~~grow at 4.5 percent, 1.9 percent and 2.1 percent in the ~~end~~fourth quarters of ~~2021.~~2021, 2022 and 2023, respectively. The allowance for credit losses considered the impact of enacted government stimulus measures and continued to factor in the uncertainty resulting from the unprecedented nature of the current health crisis and risks that may prevent a full economic recovery.

The Corporation also factored into its allowance for credit losses an estimated impact from higher-risk segments that included leveraged loans and industries such as travel and entertainment, which have been adversely impacted by the effects of the pandemic, as well as the energy sector.

The allowance for credit losses at ~~March 31,~~June 30, 2021 was ~~$18.0~~$15.8 billion, a decrease of ~~$2.7~~$4.9 billion compared to

December 31, 2020. The decrease in the allowance for credit losses was primarily driven by an improved macroeconomic ~~outlook and loan balance declines.~~outlook. The decrease in the allowance for credit losses was comprised of a net decrease of ~~$2.6~~$4.7 billion in the allowance for loan and lease losses and a ~~$49~~$191 million decrease in the reserve for unfunded lending commitments. The decrease in the allowance for credit losses was attributed to ~~$182~~$291 million in the consumer real estate portfolio, ~~$1.3~~$2.4 billion in the credit card and other consumer portfolio, and ~~$1.2~~$2.2 billion in the commercial portfolio.

Outstanding loans and leases excluding loans accounted for under the fair value option decreased ~~$25.1~~$9.2 billion in the ~~three~~six months ended ~~March 31,~~June 30, 2021, driven by consumer loans, which decreased ~~$16.5~~$10.6 billion primarily due to a decline in consumer real estate due to prepayments in a low rate ~~environment~~environment. However, outstanding commercial loans and ~~a decline~~leases, excluding small business, increased $8.0 billion during the six months ended June 30, 2021, primarily driven by Global Markets with most of the increase in ~~credit card loans from seasonality and higher payments.~~investment grade exposures.

The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the ~~table below.~~following table.

Consumer
Real Estate Credit Card and
Other Consumer Commercial Total
(Dollars in millions) Three Months Ended March 31, 2021
Allowance for loan and lease losses, January 1 $ 858 $ 9,213 $ 8,731 $ 18,802
Loans and leases charged off (15) (977) (194) (1,186)
Recoveries of loans and leases previously charged off 54 245 64 363
Net charge-offs 39 (732) (130) (823)
Provision for loan and lease losses (207) (536) (1,068) (1,811)
Other (1) 1 0 0
Allowance for loan and lease losses, March 31 689 7,946 7,533 16,168
Reserve for unfunded lending commitments, January 1 137 0 1,741 1,878
Provision for unfunded lending commitments (13) 0 (36) (49)
Reserve for unfunded lending commitments, March 31 124 0 1,705 1,829
Allowance for credit losses, March 31 $ 813 $ 7,946 $ 9,238 $ 17,997
Three Months Ended March 31, 2020
Allowance for loan and lease losses, January 1 $ 440 $ 7,430 $ 4,488 $ 12,358
Loans and leases charged off (35) (1,121) (282) (1,438)
Recoveries of loans and leases previously charged off 47 237 32 316
Net charge-offs 12 (884) (250) (1,122)
Provision for loan and lease losses 351 1,712 2,462 4,525
Other 5 0 0 5
Allowance for loan and lease losses, March 31 808 8,258 6,700 15,766
Reserve for unfunded lending commitments, January 1 119 0 1,004 1,123
Provision for unfunded lending commitments 30 0 206 236
Other 0 0 1 1
Reserve for unfunded lending commitments, March 31 149 0 1,211 1,360
Allowance for credit losses, March 31 $ 957 $ 8,258 $ 7,911 $ 17,126


						Bank of America74



	Consumer Real Estate		Credit Card and Other Consumer		Commercial		Total
(Dollars in millions)	Three Months Ended June 30, 2021
Allowance for loan and lease losses, April 1	$	689	$	7,946	$	7,533	$	16,168
Loans and leases charged off	(30)		(799)		(232)		(1,061)
Recoveries of loans and leases previously charged off	60		256		150		466
Net charge-offs	30		(543)		(82)		(595)

Provision for loan and lease losses	(122)		(568)		(790)		(1,480)
Other	0		0		2		2
Allowance for loan and lease losses, June 30	597		6,835		6,663		14,095
Reserve for unfunded lending commitments, April 1	124		0		1,705		1,829
Provision for unfunded lending commitments	(17)		0		(124)		(141)
Other	0		0		(1)		(1)
Reserve for unfunded lending commitments, June 30	107		0		1,580		1,687
Allowance for credit losses, June 30	$	704	$	6,835	$	8,243	$	15,782

	Three Months Ended June 30, 2020
Allowance for loan and lease losses, April 1	$	808	$	8,258	$	6,700	$	15,766
Loans and leases charged off	(27)		(985)		(447)		(1,459)
Recoveries of loans and leases previously charged off	61		217		35		313
Net charge-offs	34		(768)		(412)		(1,146)

Provision for loan and lease losses	(9)		2,632		2,152		4,775
Other	0		0		(6)		(6)
Allowance for loan and lease losses, June 30	833		10,122		8,434		19,389


Reserve for unfunded lending commitments, April 1	149		0		1,211		1,360
Provision for unfunded lending commitments	(8)		0		350		342

Reserve for unfunded lending commitments, June 30	141		0		1,561		1,702
Allowance for credit losses, June 30	$	974	$	10,122	$	9,995	$	21,091

(Dollars in millions)	Six Months Ended June 30, 2021
Allowance for loan and lease losses, January 1	$	858	$	9,213	$	8,731	$	18,802
Loans and leases charged off	(45)		(1,776)		(426)		(2,247)
Recoveries of loans and leases previously charged off	114		501		214		829
Net charge-offs	69		(1,275)		(212)		(1,418)
Provision for loan and lease losses	(329)		(1,104)		(1,858)		(3,291)
Other	(1)		1		2		2
Allowance for loan and lease losses, June 30	597		6,835		6,663		14,095
Reserve for unfunded lending commitments, January 1	137		0		1,741		1,878
Provision for unfunded lending commitments	(30)		0		(160)		(190)
Other	0		0		(1)		(1)
Reserve for unfunded lending commitments, June 30	107		0		1,580		1,687
Allowance for credit losses, June 30	$	704	$	6,835	$	8,243	$	15,782

	Six Months Ended June 30, 2020
Allowance for loan and lease losses, January 1	$	440	$	7,430	$	4,488	$	12,358
Loans and leases charged off	(62)		(2,106)		(729)		(2,897)
Recoveries of loans and leases previously charged off	108		454		67		629
Net charge-offs	46		(1,652)		(662)		(2,268)
Provision for loan and lease losses	342		4,344		4,614		9,300
Other	5		0		(6)		(1)
Allowance for loan and lease losses, June 30	833		10,122		8,434		19,389
Reserve for unfunded lending commitments, January 1	119		0		1,004		1,123
Provision for unfunded lending commitments	22		0		556		578
Other	0		0		1		1
Reserve for unfunded lending commitments, June 30	141		0		1,561		1,702
Allowance for credit losses, June 30	$	974	$	10,122	$	9,995	$	21,091

NOTE 6 Securitizations and Other Variable Interest Entities

The Corporation utilizes VIEs in the ordinary course of business to support its own and its customers’ financing and investing needs. The tables in this Note present the assets and liabilities of consolidated and unconsolidated VIEs at ~~March 31,~~June 30, 2021 and December 31, 2020 in situations where the Corporation has continuing involvement with transferred assets or if the Corporation otherwise has a variable interest in the VIE. The tables also present the Corporation's maximum loss exposure at ~~March 31,~~June 30, 2021 and December 31, 2020 resulting from its involvement with consolidated and unconsolidated VIEs

in which the Corporation holds a variable interest. For more information on the Corporation's use of VIEs and related maximum loss exposure, see Note 1 – Summary of Significant

Accounting Principles and Note 6 – Securitizations and Other Variable Interest Entities to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

The Corporation invests in ABS issued by third-party VIEs with which it has no other form of involvement and enters into certain commercial lending arrangements that may also incorporate the use of VIEs, for example to hold collateral. These securities and loans are included in Note 4 – Securities or


75Bank of America

Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses. In addition, the Corporation has used VIEs in connection with its funding activities.

The Corporation did not provide financial support to consolidated or unconsolidated VIEs during the ~~three~~six months ended ~~March 31,~~June 30, 2021 or the year ended December 31, 2020


69~~Bank of America~~

that it was not previously contractually required to provide, nor does it intend to do so.

The Corporation had liquidity commitments, including written put options and collateral value guarantees, with certain unconsolidated VIEs of ~~$942~~$968 million and $929 million at ~~March 31,~~June 30, 2021 and December 31, 2020.

First-lien Mortgage Securitizations

As part of its mortgage banking activities, the Corporation securitizes a portion of the first-lien residential mortgage loans

it originates or purchases from third parties. Except as described in Note 10 – Commitments and Contingencies, the Corporation does not provide guarantees or recourse to the securitization trusts other than standard representations and warranties.

The table below summarizes select information related to first-lien mortgage securitizations for the three and six months ended ~~March 31,~~June 30, 2021 and 2020.


First-lien Mortgage Securitizations	First-lien Mortgage Securitizations					First-lien Mortgage Securitizations

		Residential Mortgage - Agency						Commercial Mortgage				Residential Mortgage - Agency						Commercial Mortgage
		Three Months Ended March 31					Three Months Ended June 30					Six Months Ended June 30		Three Months Ended June 30				Six Months Ended June 30

(Dollars in millions)	(Dollars in millions)	2021		2020				2021		2020			(Dollars in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Proceeds from loan sales (1)	Proceeds from loan sales (1)	$	1,243	$	1,552			$	665	$	2,072		Proceeds from loan sales (1)	$	1,652	$	11,375	$	2,895	$	12,927	$	2,175	$	220	$	2,840	$	2,292
Gains on securitizations (2)	Gains on securitizations (2)	2		6				33		41			Gains on securitizations (2)	3		715		5		721		31		(1)		64		40
Repurchases from securitization trusts (3)	Repurchases from securitization trusts (3)	80		128				0		0			Repurchases from securitization trusts (3)	98		167		178		295		0		0		0		0

(1)The Corporation transfers residential mortgage loans to securitizations sponsored primarily by the Government-sponsored enterprise (GSEs) or Government National Mortgage Association (GNMA) in the normal course of business and primarily receives RMBS in exchange. Substantially all of these securities are classified as Level 2 within the fair value hierarchy and are typically sold shortly after receipt.

(2)A majority of the first-lien residential mortgage loans securitized are initially classified as LHFS and accounted for under the fair value option. Gains recognized on these LHFS prior to securitization, which totaled ~~$33~~$40 million and ~~$27~~$73 million, net of hedges, during the three and six months ended ~~March 31,~~June 30, 2021 compared to $34 million and $61 million for the same periods in 2020, ~~respectively,~~ are not included in the table above.

(3)The Corporation may have the option to repurchase delinquent loans out of securitization trusts, which reduces the amount of servicing advances it is required to make. The Corporation may also repurchase loans from securitization trusts to perform modifications. Repurchased loans include FHA-insured mortgages collateralizing GNMA securities.

The Corporation recognizes consumer MSRs from the sale or securitization of consumer real estate loans. The unpaid principal balance of loans serviced for investors, including residential mortgage and home equity loans, totaled ~~$149.7~~$138.7 billion and ~~$182.9~~$183.4 billion at ~~March 31,~~June 30, 2021 and 2020. Servicing fee and ancillary fee income on serviced loans was ~~$113~~$104 million and ~~$128~~$217 million during the three and six months ended ~~March 31,~~June 30, 2021 compared to $124 million and $252 million for the same periods in 2020. Servicing advances on serviced

loans, including loans serviced for others and loans held for investment, were $2.1 billion and $2.2 billion at ~~both March 31,~~June 30, 2021 and December 31, 2020. For more information on MSRs, see Note 14 – Fair Value Measurements.

During the six months ended June 30, 2020, the Corporation completed the sale of $9.3 billion of consumer real estate loans through GNMA loan securitizations. As part of the securitizations, the Corporation retained $8.4 billion of mortgage-backed securities, which are classified as debt securities carried at fair value on the Consolidated Balance Sheet. Total gains on loan sales of $704 million were recorded in other income in the Consolidated Statement of Income.

The following table ~~below~~ summarizes select information related to first-lien mortgage securitization trusts in which the Corporation held a variable interest at ~~March 31,~~June 30, 2021 and December 31, 2020.

First-lien Mortgage VIEs
Residential Mortgage
Non-agency
Agency Prime Subprime Alt-A Commercial Mortgage
(Dollars in millions) March 31
2021 December 31
2020 March 31
2021 December 31
2020 March 31
2021 December 31
2020 March 31
2021 December 31
2020 March 31
2021 December 31
2020
Unconsolidated VIEs
Maximum loss exposure (1)
$ 12,823 $ 13,477 $ 230 $ 250 $ 1,021 $ 1,031 $ 54 $ 46 $ 1,210 $ 1,169
On-balance sheet assets
Senior securities:
Trading account assets $ 193 $ 152 $ 2 $ 2 $ 20 $ 8 $ 21 $ 12 $ 6 $ 60
Debt securities carried at fair value 6,925 7,588 95 103 658 676 32 33 0 0
Held-to-maturity securities 5,705 5,737 0 0 0 0 0 0 981 925
All other assets 0 0 6 6 27 26 1 1 77 50
Total retained positions $ 12,823 $ 13,477 $ 103 $ 111 $ 705 $ 710 $ 54 $ 46 $ 1,064 $ 1,035
Principal balance outstanding (2)
$ 123,941 $ 133,497 $ 5,723 $ 6,081 $ 6,369 $ 6,691 $ 15,884 $ 16,554 $ 71,605 $ 59,268
Consolidated VIEs
Maximum loss exposure (1)
$ 1,018 $ 1,328 $ 6 $ 66 $ 53 $ 53 $ 0 $ 0 $ 0 $ 0
On-balance sheet assets
Trading account assets $ 1,018 $ 1,328 $ 88 $ 350 $ 253 $ 260 $ 0 $ 0 $ 0 $ 0
All other assets 0 0 0 0 1 0 0 0 0 0
Total assets $ 1,018 $ 1,328 $ 88 $ 350 $ 254 $ 260 $ 0 $ 0 $ 0 $ 0
Total liabilities $ 0 $ 0 $ 82 $ 284 $ 201 $ 207 $ 0 $ 0 $ 0 $ 0


						Bank of America76



First-lien Mortgage VIEs

	Residential Mortgage
					Non-agency
	Agency				Prime				Subprime				Alt-A				Commercial Mortgage

(Dollars in millions)	June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020
Unconsolidated VIEs
Maximum loss exposure (1)	$	12,573	$	13,477	$	219	$	250	$	1,015	$	1,031	$	55	$	46	$	1,252	$	1,169
On-balance sheet assets
Senior securities:
Trading account assets	$	195	$	152	$	5	$	2	$	25	$	8	$	24	$	12	$	7	$	60
Debt securities carried at fair value	6,260		7,588		87		103		651		676		31		33		0		0
Held-to-maturity securities	6,118		5,737		0		0		0		0		0		0		1,016		925
All other assets	0		0		6		6		28		26		0		1		57		50
Total retained positions	$	12,573	$	13,477	$	98	$	111	$	704	$	710	$	55	$	46	$	1,080	$	1,035
Principal balance outstanding (2)	$	114,769	$	133,497	$	5,400	$	6,081	$	6,409	$	6,691	$	15,181	$	16,554	$	70,340	$	59,268

Consolidated VIEs
Maximum loss exposure (1)	$	1,080	$	1,328	$	17	$	66	$	23	$	53	$	0	$	0	$	0	$	0
On-balance sheet assets
Trading account assets	$	1,080	$	1,328	$	122	$	350	$	226	$	260	$	0	$	0	$	0	$	0



All other assets	0		0		0		0		0		0		0		0		0		0
Total assets	$	1,080	$	1,328	$	122	$	350	$	226	$	260	$	0	$	0	$	0	$	0




Total liabilities	$	0	$	0	$	105	$	284	$	203	$	207	$	0	$	0	$	0	$	0

(1)Maximum loss exposure includes obligations under loss-sharing reinsurance and other arrangements for non-agency residential mortgage and commercial mortgage securitizations, but excludes the reserve for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations. For more information, see Note 10 – Commitments and Contingencies and Note 14 – Fair Value Measurements.

(2)Principal balance outstanding includes loans where the Corporation was the transferor to securitization VIEs with which it has continuing involvement, which may include servicing the loans.

Other Asset-backed Securitizations

The ~~following~~ table below summarizes select information related to home equity, credit card and other asset-backed VIEs in which the Corporation held a variable interest at ~~March 31,~~June 30, 2021 and December 31, 2020.


						~~Bank of America~~70


Home Equity Loan, Credit Card and Other Asset-backed VIEs	Home Equity Loan, Credit Card and Other Asset-backed VIEs																		Home Equity Loan, Credit Card and Other Asset-backed VIEs

		Home Equity (1)				Credit Card (2)				Resecuritization Trusts				Municipal Bond Trusts				Home Equity (1)						Credit Card (2)					Resecuritization Trusts					Municipal Bond Trusts

(Dollars in millions)	(Dollars in millions)	March 31 2021		December 31 2020		March 31 2021		December 31 2020		March 31 2021		December 31 2020		March 31 2021		December 31 2020			(Dollars in millions)	June 30 2021		December 31 2020			June 30 2021		December 31 2020			June 30 2021		December 31 2020			June 30 2021		December 31 2020
Unconsolidated VIEs	Unconsolidated VIEs																		Unconsolidated VIEs
Maximum loss exposure	Maximum loss exposure	$	193	$	206	$	0	$	0	$	7,532	$	8,543	$	3,569	$	3,507		Maximum loss exposure	$	179	$	206		$	0	$	0		$	6,788	$	8,543		$	3,736	$	3,507
On-balance sheet assets	On-balance sheet assets																		On-balance sheet assets
Securities (3):	Securities (3):																		Securities (3):
Trading account assets	Trading account assets	$	0	$	0	$	0	$	0	$	638	$	948	$	0	$	0		Trading account assets	$	0	$	0		$	0	$	0		$	617	$	948		$	0	$	0
Debt securities carried at fair value	Debt securities carried at fair value	2		2		0		0		2,500		2,727		0		0			Debt securities carried at fair value	1		2			0		0			2,282		2,727			0		0
Held-to-maturity securities	Held-to-maturity securities	0		0		0		0		4,394		4,868		0		0			Held-to-maturity securities	0		0			0		0			3,889		4,868			0		0

Total retained positions	Total retained positions	$	2	$	2	$	0	$	0	$	7,532	$	8,543	$	0	$	0		Total retained positions	$	1	$	2		$	0	$	0		$	6,788	$	8,543		$	0	$	0
Total assets of VIEs	Total assets of VIEs	$	557	$	609	$	0	$	0	$	16,056	$	17,250	$	4,115	$	4,042		Total assets of VIEs	$	501	$	609		$	0	$	0		$	15,535	$	17,250		$	4,305	$	4,042

Consolidated VIEs	Consolidated VIEs																		Consolidated VIEs
Maximum loss exposure	Maximum loss exposure	$	55	$	58	$	12,111	$	14,606	$	377	$	217	$	565	$	1,030		Maximum loss exposure	$	52	$	58		$	9,960	$	14,606		$	281	$	217		$	309	$	1,030
On-balance sheet assets	On-balance sheet assets																		On-balance sheet assets
Trading account assets	Trading account assets	$	0	$	0	$	0	$	0	$	381	$	217	$	525	$	990		Trading account assets	$	0	$	0		$	0	$	0		$	284	$	217		$	269	$	990

Loans and leases	Loans and leases	201		218		16,798		21,310		0		0		0		0			Loans and leases	183		218			14,468		21,310			0		0			0		0
Allowance for loan and lease losses	Allowance for loan and lease losses	15		14		(1,273)		(1,704)		0		0		0		0			Allowance for loan and lease losses	15		14			(1,059)		(1,704)			0		0			0		0

All other assets	All other assets	4		4		1,295		1,289		0		0		40		40			All other assets	3		4			1,063		1,289			0		0			40		40
Total assets	Total assets	$	220	$	236	$	16,820	$	20,895	$	381	$	217	$	565	$	1,030		Total assets	$	201	$	236		$	14,472	$	20,895		$	284	$	217		$	309	$	1,030
On-balance sheet liabilities	On-balance sheet liabilities																		On-balance sheet liabilities
Short-term borrowings	Short-term borrowings	$	0	$	0	$	0	$	0	$	0	$	0	$	301	$	432		Short-term borrowings	$	0	$	0		$	0	$	0		$	0	$	0		$	287	$	432
Long-term debt	Long-term debt	165		178		4,698		6,273		4		0		0		0			Long-term debt	150		178			4,497		6,273			3		0			0		0
All other liabilities	All other liabilities	0		0		11		16		0		0		0		0			All other liabilities	0		0			15		16			0		0			0		0
Total liabilities	Total liabilities	$	165	$	178	$	4,709	$	6,289	$	4	$	0	$	301	$	432		Total liabilities	$	150	$	178		$	4,512	$	6,289		$	3	$	0		$	287	$	432

(1)For unconsolidated home equity loan VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves. For both consolidated and unconsolidated home equity loan VIEs, the maximum loss exposure excludes the reserve for representations and warranties obligations and corporate guarantees. For more information, see Note 10 – Commitments and Contingencies.

(2)At ~~March 31,~~June 30, 2021 and December 31, 2020, loans and leases in the consolidated credit card trust included ~~$5.0~~$3.0 billion and $7.6 billion of seller’s interest.

(3)The retained senior securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy).

Home Equity Loans

The Corporation retains interests, primarily senior securities, in home equity securitization trusts to which it transferred home equity loans. In addition, the Corporation may be obligated to provide subordinate funding to the trusts during a rapid

amortization event. This obligation is included in the maximum loss exposure in the table above. The charges that will ultimately be recorded as a result of the rapid amortization events depend on the undrawn portion of the home equity lines


77Bank of America

of credit, performance of the loans, the amount of subsequent draws and the timing of related cash flows.

Credit Card Securitizations

The Corporation securitizes originated and purchased credit card loans. The Corporation’s continuing involvement with the securitization trust includes servicing the receivables, retaining an undivided interest (seller’s interest) in the receivables, and holding certain retained interests, including subordinate interests, in accrued interest and fees on the securitized receivables and cash reserve accounts.

During the six months ended June 30, 2021, there were $1.0 billion of new senior debt securities issued to third-party investors from the credit card securitization trust. No new senior debt securities were issued to third-party investors from the credit card securitization trust during the ~~three~~six months ended ~~March 31, 2021 and~~June 30, 2020.

At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation held subordinate securities issued by the credit card securitization trust with a notional principal amount of $6.6 billion and $6.8 billion. These securities serve as a form of credit enhancement to the senior debt securities and have a stated interest rate of 0 percent. There were $161 million of these subordinate securities issued by the credit card securitization trust during the six months ended June 30, 2021. No subordinate securities were issued by the credit card securitization trust during the ~~three~~six months ended ~~March 31, 2021 and~~June 30, 2020.

Resecuritization Trusts

The Corporation transfers securities, typically MBS, into resecuritization VIEs generally at the request of customers seeking securities with specific characteristics. Generally, there are no significant ongoing activities performed in a resecuritization trust, and no single investor has the unilateral ability to liquidate the trust.

The Corporation resecuritized ~~$1.0~~$5.9 billion and ~~$7.4~~$14.7 billion of securities during the three and six months ended ~~March 31,~~June 30, 2021 compared to $10.7 billion and $18.1 billion for the same periods in 2020. Securities transferred into resecuritization VIEs were measured at fair value with changes in fair value recorded

in market making and similar activities prior to the resecuritization and, accordingly, no gain or loss on sale was recorded. During the three and six months ended ~~March 31,~~June 30, 2021 and 2020, resecuritization proceeds included securities with an initial fair value of ~~$178~~$233 million and ~~$526 million.~~$519 million compared to $4.4 billion and $4.9 billion, of which substantially all of the securities in the current-year period were classified as trading account assets. Of the securities received as resecuritization proceeds during the three months ended June 30, 2020, $654 million, $2.1 billion and $1.7 billion were classified as trading account assets, debt securities carried at fair value and HTM securities, respectively. Of the securities received as resecuritization proceeds during the six months ended June 30, 2020, $1.2 billion, $2.1 billion and $1.7 billion were classified as trading account assets, debt securities carried at fair value and HTM securities, respectively. Substantially all of the trading account securities carried at fair value were categorized as Level 2 within the fair value hierarchy.

Municipal Bond Trusts

The Corporation administers municipal bond trusts that hold highly-rated, long-term, fixed-rate municipal bonds. The trusts obtain financing by issuing floating-rate trust certificates that reprice on a weekly or other short-term basis to third-party investors.

The Corporation’s liquidity commitments to unconsolidated municipal bond trusts, including those for which the Corporation was transferor, totaled ~~$3.6~~$3.7 billion and $3.5 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. The weighted-average remaining life of bonds held in the trusts at ~~March 31,~~June 30, 2021 was 6.5 years. There were no significant write-downs or downgrades of assets or issuers during the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020.


71~~Bank of America~~

Other Variable Interest Entities

The table below summarizes select information related to other VIEs in which the Corporation held a variable interest at ~~March 31,~~June 30, 2021 and December 31, 2020.

Other VIEs
Consolidated Unconsolidated Total Consolidated Unconsolidated Total
(Dollars in millions) March 31, 2021 December 31, 2020
Maximum loss exposure $ 4,483 $ 24,276 $ 28,759 $ 4,106 $ 23,870 $ 27,976
On-balance sheet assets
Trading account assets $ 2,265 $ 611 $ 2,876 $ 2,080 $ 623 $ 2,703
Debt securities carried at fair value 0 9 9 0 9 9
Loans and leases 2,347 225 2,572 2,108 184 2,292
Allowance for loan and lease losses (3) (10) (13) (3) (3) (6)
All other assets 47 22,948 22,995 54 22,553 22,607
Total $ 4,656 $ 23,783 $ 28,439 $ 4,239 $ 23,366 $ 27,605
On-balance sheet liabilities
Short-term borrowings $ 37 $ 0 $ 37 $ 22 $ 0 $ 22
Long-term debt 136 0 136 111 0 111
All other liabilities 0 5,616 5,616 0 5,658 5,658
Total $ 173 $ 5,616 $ 5,789 $ 133 $ 5,658 $ 5,791
Total assets of VIEs $ 4,656 $ 80,929 $ 85,585 $ 4,239 $ 77,984 $ 82,223



Other VIEs


	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total

(Dollars in millions)	June 30, 2021						December 31, 2020
Maximum loss exposure	$	4,565	$	24,829	$	29,394	$	4,106	$	23,870	$	27,976
On-balance sheet assets
Trading account assets	$	2,437	$	606	$	3,043	$	2,080	$	623	$	2,703
Debt securities carried at fair value	0		8		8		0		9		9
Loans and leases	2,319		182		2,501		2,108		184		2,292
Allowance for loan and lease losses	(3)		(8)		(11)		(3)		(3)		(6)


All other assets	28		23,541		23,569		54		22,553		22,607
Total	$	4,781	$	24,329	$	29,110	$	4,239	$	23,366	$	27,605
On-balance sheet liabilities

Short-term borrowings	$	37	$	0	$	37	$	22	$	0	$	22
Long-term debt	179		0		179		111		0		111
All other liabilities	0		5,972		5,972		0		5,658		5,658
Total	$	216	$	5,972	$	6,188	$	133	$	5,658	$	5,791
Total assets of VIEs	$	4,781	$	83,221	$	88,002	$	4,239	$	77,984	$	82,223

Customer VIEs

Customer VIEs include credit-linked, equity-linked and commodity-linked note VIEs, repackaging VIEs and asset acquisition VIEs, which are typically created on behalf of customers who wish to obtain market or credit exposure to a specific company, index, commodity or financial instrument.

The Corporation’s maximum loss exposure to consolidated and unconsolidated customer VIEs totaled ~~$2.5~~$2.7 billion and $2.3 billion at ~~March 31,~~June 30, 2021 and December 31, 2020, including the notional amount of derivatives to which the Corporation is a counterparty, net of losses previously recorded, and the Corporation’s investment, if any, in securities issued by the VIEs.


						Bank of America78

Collateralized Debt Obligation VIEs

The Corporation receives fees for structuring CDO VIEs, which hold diversified pools of fixed-income securities, typically corporate debt or ABS, which the CDO VIEs fund by issuing multiple tranches of debt and equity securities. CDOs are generally managed by third-party portfolio managers. The Corporation typically transfers assets to these CDOs, holds securities issued by the CDOs and may be a derivative counterparty to the CDOs. The Corporation’s maximum loss exposure to consolidated and unconsolidated CDOs totaled ~~$288~~$256 million and $298 million at ~~March 31,~~June 30, 2021 and December 31, 2020.

Investment VIEs

The Corporation sponsors, invests in or provides financing, which may be in connection with the sale of assets, to a variety of investment VIEs that hold loans, real estate, debt securities or other financial instruments and are designed to provide the desired investment profile to investors or the Corporation. At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation’s consolidated investment VIEs had total assets of ~~$780~~$764 million and $494 million. The Corporation also held investments in unconsolidated VIEs with total assets of ~~$5.9~~$6.6 billion and $5.4 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. The Corporation’s maximum loss exposure associated with both consolidated and unconsolidated investment VIEs totaled $1.9 billion and $1.5 billion at ~~March 31,~~June 30, 2021 and December 31, 2020 comprised primarily of on-balance sheet assets less non-recourse liabilities.

Leveraged Lease Trusts

The Corporation’s net investment in consolidated leveraged lease trusts totaled $1.6 billion and $1.7 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. The trusts hold long-lived equipment such as rail cars, power generation and distribution equipment, and commercial aircraft. The Corporation structures the trusts and holds a significant residual interest. The net investment represents the Corporation’s maximum loss exposure to the trusts in the unlikely event that the leveraged lease investments become worthless. Debt issued by the leveraged lease trusts is non-recourse to the Corporation.

Tax Credit VIEs

The Corporation holds investments in unconsolidated limited partnerships and similar entities that construct, own and operate affordable housing, wind and solar projects. An unrelated third party is typically the general partner or managing member and has control over the significant activities of the VIE. The Corporation earns a return primarily through the receipt of tax credits allocated to the projects. The maximum loss exposure included in the Other VIEs table was ~~$22.4~~$22.8 billion and $22.0 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. The Corporation’s risk of loss is generally mitigated by policies requiring that the project qualify for the expected tax credits prior to making its investment.

The Corporation’s investments in affordable housing partnerships, which are reported in other assets on the Consolidated Balance Sheet, totaled $11.7 billion and $11.2 billion, including unfunded commitments to provide capital contributions of $5.3 billion and $5.0 billion, at ~~both March 31,~~June 30, 2021 and December 31, 2020. The unfunded commitments are expected to be paid over the next five years. ~~During the three months ended March 31, 2021 and 2020, the~~The Corporation recognized tax credits and other tax benefits from investments in affordable housing partnerships of ~~$393~~$334 million and ~~$268~~$727 million and reported pretax losses in other income of ~~$276~~ $279

million and ~~$272~~$555 million for the three and six months ended June 30, 2021. For the same periods in 2020, the Corporation recognized tax credits and other tax benefits of $342 million and $610 million and reported pretax losses in other income of $255 million and $527 million. These tax credits are recognized as part of the Corporation’s annual effective tax rate used to determine tax expense in a given quarter. The Corporation may be asked to invest additional amounts to support a troubled affordable housing project. Such additional investments have not been and are not expected to be significant.


						~~Bank of America~~72

NOTE 7 Goodwill and Intangible Assets

Goodwill

The table below presents goodwill balances by business segment ~~and~~ ~~All Other~~at ~~March 31,~~June 30, 2021 and December 31, 2020. The reporting units utilized for goodwill impairment testing are the operating segments or one level below. The Corporation completed its annual goodwill impairment test as of June 30, 2021 and determined there was 0 impairment. For more information regarding the nature and accounting for the Corporation's annual goodwill impairment testing, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation's 2020 Annual Report on Form 10-K.


Goodwill	Goodwill					Goodwill

		March 31		December 31			June 30		December 31
(Dollars in millions)	(Dollars in millions)	March 31 2021		December 31 2020		(Dollars in millions)	2021		2020

Consumer Banking	Consumer Banking	$	30,123	$	30,123	Consumer Banking	$	30,137	$	30,123

Global Wealth & Investment Management	Global Wealth & Investment Management	9,677		9,677		Global Wealth & Investment Management	9,677		9,677

Global Banking(1)	Global Banking(1)	23,923		23,923		Global Banking(1)	24,027		23,969
Global Markets	Global Markets	5,182		5,182		Global Markets	5,182		5,182
All Other		46		46

Total goodwill	Total goodwill	$	68,951	$	68,951	Total goodwill	$	69,023	$	68,951

(1) Prior period has been revised to conform to current-period presentation.

Intangible Assets

At ~~March 31,~~both June 30, 2021 and December 31, 2020, the net carrying value of intangible assets was ~~$2.1 billion and~~ $2.2 billion. At both ~~March 31,~~June 30, 2021 and December 31, 2020, intangible assets included $1.6 billion of intangible assets associated with trade names, substantially all of which had an indefinite life and, accordingly, are not being amortized. Amortization of intangibles expense was ~~$17~~$20 million and ~~$16~~$37 million for the three and six months ended ~~March 31,~~June 30, 2021 compared to $16 million and $32 million for the same periods in 2020.

NOTE 8 Leases

The Corporation enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 – Summary of Significant Accounting Principles and Note 8 – Leases to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K. For more information on lease financing receivables, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses.

Lessor Arrangements

The Corporation’s lessor arrangements primarily consist of operating, sales-type and direct financing leases for equipment. Lease agreements may include options to renew and for the

lessee to purchase the leased equipment at the end of the lease term.


79Bank of America

The table below presents the net investment in sales-type and direct financing leases at ~~March 31,~~June 30, 2021 and December 31, 2020.


Net Investment (1)	Net Investment (1)					Net Investment (1)

		March 31		December 31			June 30		December 31
(Dollars in millions)	(Dollars in millions)	2021		2020		(Dollars in millions)	2021		2020
Lease receivables	Lease receivables	$	17,158	$	17,627	Lease receivables	$	16,852	$	17,627
Unguaranteed residuals	Unguaranteed residuals	2,243		2,303		Unguaranteed residuals	2,191		2,303
Total net investment in sales-type and direct financing leases	Total net investment in sales-type and direct financing leases	$	19,401	$	19,930	Total net investment in sales-type and direct financing leases	$	19,043	$	19,930

(1) In certain cases, the Corporation obtains third-party residual value insurance to reduce its residual asset risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was ~~$7.0~~$7.2 billion and $6.9 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

The table below presents lease income for the three and six months ended ~~March 31,~~June 30, 2021 and 2020.


Lease Income	Lease Income					Lease Income

		Three Months Ended March 31
							Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020		(Dollars in millions)	2021		2020		2021		2020
Sales-type and direct financing leases	Sales-type and direct financing leases	$	164	$	197	Sales-type and direct financing leases	$	152	$	175	$	316	$	372
Operating leases	Operating leases	231		243		Operating leases	223		236		454		479
Total lease income	Total lease income	$	395	$	440	Total lease income	$	375	$	411	$	770	$	851

Lessee Arrangements

The Corporation's lessee arrangements predominantly consist of operating leases for premises and equipment; the Corporation's financing leases are not significant.

The table below provides information on the right-of-use assets and lease liabilities at ~~March 31,~~June 30, 2021 and December 31, 2020.

Lessee Arrangements
March 31 December 31
(Dollars in millions) 2021 2020
Right-of-use asset $ 9,673 $ 10,000
Lease liabilities 10,275 10,474



Lessee Arrangements

	June 30		December 31
(Dollars in millions)	2021		2020
Right-of-use asset	$	10,030	$	10,000
Lease liabilities	10,653		10,474


73~~Bank of America~~

NOTE 9 Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash

The table below presents federal funds sold or purchased, securities financing agreements (which include securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase) and short-term borrowings. The Corporation elects to account for certain securities financing agreements and short-term borrowings under the fair value option. For more information on the fair value option, see Note 15 – Fair Value Option.


				Amount			Rate				Amount		Rate			Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
		Three Months Ended March 31				Three Months Ended June 30												Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021	2020					(Dollars in millions)	2021						2020				2021				2020
Federal funds sold and securities borrowed or purchased under agreements to resell	Federal funds sold and securities borrowed or purchased under agreements to resell														Federal funds sold and securities borrowed or purchased under agreements to resell

Average during period	Average during period			$	249,985		(0.01)	%			$	278,794	1.18	%	Average during period	$	270,443	(0.06)	%	$	312,404	0.03	%	$	260,271	(0.04)	%	$	295,599	0.57	%
Maximum month-end balance during period	Maximum month-end balance during period			259,147			n/a				301,969		n/a		Maximum month-end balance during period	278,300		n/a		451,179		n/a		278,300		n/a		451,179		n/a

Federal funds purchased and securities loaned or sold under agreements to repurchase	Federal funds purchased and securities loaned or sold under agreements to repurchase														Federal funds purchased and securities loaned or sold under agreements to repurchase

Average during period	Average during period			$	197,105		0.26	%			$	199,539	1.60	%	Average during period	$	218,535	0.25	%	$	187,180	0.38	%	$	207,880	0.25	%	$	193,359	1.01	%
Maximum month-end balance during period	Maximum month-end balance during period			199,443			n/a				206,493		n/a		Maximum month-end balance during period	218,628		n/a		194,870		n/a		218,628		n/a		206,493		n/a

Short-term borrowings	Short-term borrowings														Short-term borrowings

Average during period	Average during period			19,667			(0.12)				26,430		1.62		Average during period	21,600		(0.11)		25,901		0.12		20,639		(0.12)		26,166		0.88
Maximum month-end balance during period	Maximum month-end balance during period			21,724			n/a				30,118		n/a		Maximum month-end balance during period	23,333		n/a		27,315		n/a		23,333		n/a		30,118		n/a

n/a = not applicable

Offsetting of Securities Financing Agreements

The Corporation enters into securities financing agreements to accommodate customers (also referred to as “matched-book transactions”), obtain securities to cover short positions and finance inventory positions. For more information on the securities financing agreements and the offsetting of securities financing transactions, see Note 10 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

The Securities Financing Agreements table presents securities financing agreements included on the Consolidated Balance Sheet in federal funds sold and securities borrowed or purchased under agreements to resell, and in federal funds purchased and securities loaned or sold under agreements to repurchase at ~~March 31,~~June 30, 2021 and December 31, 2020. Balances are presented on a gross basis, prior to the application of counterparty netting. Gross assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements. For more information on the offsetting of derivatives, see Note 3 – Derivatives.

Securities Financing Agreements
Gross Assets/Liabilities (1)
Amounts Offset Net Balance Sheet Amount
Financial Instruments (2)
Net Assets/Liabilities
(Dollars in millions) March 31, 2021
Securities borrowed or purchased under agreements to resell (3)
$ 464,227 $ (205,080) $ 259,147 $ (226,657) $ 32,490
Securities loaned or sold under agreements to repurchase $ 404,523 $ (205,080) $ 199,443 $ (188,867) $ 10,576
Other (4)
17,482 0 17,482 (17,482) 0
Total $ 422,005 $ (205,080) $ 216,925 $ (206,349) $ 10,576
December 31, 2020
Securities borrowed or purchased under agreements to resell (3)
$ 492,387 $ (188,329) $ 304,058 $ (272,351) $ 31,707
Securities loaned or sold under agreements to repurchase $ 358,652 $ (188,329) $ 170,323 $ (158,867) $ 11,456
Other (4)
16,210 0 16,210 (16,210) 0
Total $ 374,862 $ (188,329) $ 186,533 $ (175,077) $ 11,456


						Bank of America80



Securities Financing Agreements

	Gross Assets/Liabilities (1)		Amounts Offset		Net Balance Sheet Amount		Financial Instruments (2)		Net Assets/Liabilities
(Dollars in millions)	June 30, 2021
Securities borrowed or purchased under agreements to resell (3)	$	524,946	$	(256,352)	$	268,594	$	(241,909)	$	26,685

Securities loaned or sold under agreements to repurchase	$	470,139	$	(256,352)	$	213,787	$	(202,435)	$	11,352
Other (4)	15,071		0		15,071		(15,071)		0
Total	$	485,210	$	(256,352)	$	228,858	$	(217,506)	$	11,352

	December 31, 2020
Securities borrowed or purchased under agreements to resell (3)	$	492,387	$	(188,329)	$	304,058	$	(272,351)	$	31,707

Securities loaned or sold under agreements to repurchase	$	358,652	$	(188,329)	$	170,323	$	(158,867)	$	11,456
Other (4)	16,210		0		16,210		(16,210)		0
Total	$	374,862	$	(188,329)	$	186,533	$	(175,077)	$	11,456

(1)Includes activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries.

(2)Includes securities collateral received or pledged under repurchase or securities lending agreements where there is a legally enforceable master netting agreement. These amounts are not offset on the Consolidated Balance Sheet, but are shown as a reduction to derive a net asset or liability. Securities collateral received or pledged where the legal enforceability of the master netting agreements is uncertain is excluded from the table.

(3)Excludes repurchase activity of ~~$17.9~~$20.1 billion and $14.7 billion reported in loans and leases on the Consolidated Balance Sheet at ~~March 31,~~June 30, 2021 and December 31, 2020.

(4)Balance is reported in accrued expenses and other liabilities on the Consolidated Balance Sheet and relates to transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. In these transactions, the Corporation recognizes an asset at fair value, representing the securities received, and a liability, representing the obligation to return those securities.

Repurchase Agreements and Securities Loaned Transactions Accounted for as Secured Borrowings

The following tables present securities sold under agreements to repurchase and securities loaned by remaining contractual term to maturity and class of collateral pledged. Included in “Other” are transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. Certain agreements contain a right to substitute collateral and/or terminate the

agreement prior to maturity at the option of the Corporation or the counterparty. Such agreements are included in the table below based on the remaining contractual term to maturity. For more information on collateral requirements, see Note 10 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.



Remaining Contractual Maturity


	Overnight and Continuous		30 Days or Less		After 30 Days Through 90 Days		Greater than 90 Days (1)		Total
(Dollars in millions)	June 30, 2021
Securities sold under agreements to repurchase	$	187,994	$	164,693	$	33,069	$	44,846	$	430,602
Securities loaned	34,167		11		1,226		4,133		39,537
Other	15,071		0		0		0		15,071
Total	$	237,232	$	164,704	$	34,295	$	48,979	$	485,210

	December 31, 2020
Securities sold under agreements to repurchase	$	158,400	$	122,448	$	32,149	$	22,684	$	335,681
Securities loaned	19,140		271		1,029		2,531		22,971
Other	16,210		0		0		0		16,210
Total	$	193,750	$	122,719	$	33,178	$	25,215	$	374,862

(1)NaN agreements have maturities greater than three years.

81Bank of America

Remaining Contractual Maturity
Overnight and Continuous 30 Days or Less After 30 Days Through 90 Days
Greater than
90 Days (1)
Total
(Dollars in millions) March 31, 2021
Securities sold under agreements to repurchase $ 164,476 $ 139,397 $ 31,238 $ 39,523 $ 374,634
Securities loaned 24,836 323 913 3,817 29,889
Other 17,482 0 0 0 17,482
Total $ 206,794 $ 139,720 $ 32,151 $ 43,340 $ 422,005
December 31, 2020
Securities sold under agreements to repurchase $ 158,400 $ 122,448 $ 32,149 $ 22,684 $ 335,681
Securities loaned 19,140 271 1,029 2,531 22,971
Other 16,210 0 0 0 16,210
Total $ 193,750 $ 122,719 $ 33,178 $ 25,215 $ 374,862

~~(1)NaN agreements have maturities greater than three years.~~


Class of Collateral Pledged	Class of Collateral Pledged									Class of Collateral Pledged

		Securities Sold Under Agreements to Repurchase		Securities Loaned		Other		Total			Securities Sold Under Agreements to Repurchase		Securities Loaned		Other		Total
(Dollars in millions)	(Dollars in millions)	March 31, 2021								(Dollars in millions)	June 30, 2021
U.S. government and agency securities	U.S. government and agency securities	$	209,204	$	0	$	0	$	209,204	U.S. government and agency securities	$	231,210	$	0	$	0	$	231,210
Corporate securities, trading loans and other	Corporate securities, trading loans and other	14,280		1,523		951		16,754		Corporate securities, trading loans and other	15,674		2,843		1,160		19,677
Equity securities	Equity securities	17,103		28,334		16,462		61,899		Equity securities	20,633		36,121		13,852		70,606
Non-U.S. sovereign debt	Non-U.S. sovereign debt	132,000		32		69		132,101		Non-U.S. sovereign debt	161,345		573		59		161,977
Mortgage trading loans and ABS	Mortgage trading loans and ABS	2,047		0		0		2,047		Mortgage trading loans and ABS	1,740		0		0		1,740
Total	Total	$	374,634	$	29,889	$	17,482	$	422,005	Total	$	430,602	$	39,537	$	15,071	$	485,210

		December 31, 2020									December 31, 2020
U.S. government and agency securities	U.S. government and agency securities	$	195,167	$	5	$	0	$	195,172	U.S. government and agency securities	$	195,167	$	5	$	0	$	195,172
Corporate securities, trading loans and other	Corporate securities, trading loans and other	8,633		1,628		1,217		11,478		Corporate securities, trading loans and other	8,633		1,628		1,217		11,478
Equity securities	Equity securities	14,752		21,125		14,931		50,808		Equity securities	14,752		21,125		14,931		50,808
Non-U.S. sovereign debt	Non-U.S. sovereign debt	113,142		213		62		113,417		Non-U.S. sovereign debt	113,142		213		62		113,417
Mortgage trading loans and ABS	Mortgage trading loans and ABS	3,987		0		0		3,987		Mortgage trading loans and ABS	3,987		0		0		3,987
Total	Total	$	335,681	$	22,971	$	16,210	$	374,862	Total	$	335,681	$	22,971	$	16,210	$	374,862

Restricted Cash

At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of ~~$6.5~~$6.0 billion and $7.0 billion, predominantly related to cash segregated in compliance with securities regulations and cash held on deposit with central banks to meet reserve requirements.

NOTE 10 Commitments and Contingencies

In the normal course of business, the Corporation enters into a number of off-balance sheet commitments. These commitments expose the Corporation to varying degrees of credit and market risk and are subject to the same credit and market risk limitation reviews as those instruments recorded on the Consolidated Balance Sheet. For more information on commitments and contingencies, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Credit Extension Commitments

The Corporation enters into commitments to extend credit such as loan commitments, standby letters of credit (SBLCs) and commercial letters of credit to meet the financing needs of its customers. The following table includes the notional amount of

unfunded legally binding lending commitments net of amounts

distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.9 billion and $10.5 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. The carrying value of these commitments at ~~March 31,~~June 30, 2021 and December 31, 2020, excluding commitments accounted for under the fair value option, was ~~$1.8~~$1.7 billion and $1.9 billion, which primarily related to the reserve for unfunded lending commitments. The carrying value of these commitments is classified in accrued expenses and other liabilities on the Consolidated Balance Sheet.

Legally binding commitments to extend credit generally have specified rates and maturities. Certain of these commitments have adverse change clauses that help to protect the Corporation against deterioration in the borrower’s ability to pay.

The following table includes the notional amount of commitments of ~~$4.6~~$5.3 billion and $4.0 billion at ~~March 31,~~June 30, 2021 and December 31, 2020 that are accounted for under the fair value option. However, the table excludes the cumulative net fair value for these commitments of ~~$91~~$103 million and $99 million at ~~March 31,~~June 30, 2021 and December 31, 2020, ~~on these commitments,~~ which is classified in accrued expenses and other liabilities. For more information regarding the Corporation’s loan commitments accounted for under the fair value option, see Note 15 – Fair Value Option.


75~~Bank of America~~


						Bank of America82


Credit Extension Commitments	Credit Extension Commitments											Credit Extension Commitments

		Expire in One Year or Less		Expire After One Year Through Three Years		Expire After Three Years Through Five Years		Expire After Five Years		Total			Expire in One Year or Less		Expire After One Year Through Three Years		Expire After Three Years Through Five Years		Expire After Five Years		Total
(Dollars in millions)	(Dollars in millions)	March 31, 2021										(Dollars in millions)	June 30, 2021
Notional amount of credit extension commitments	Notional amount of credit extension commitments											Notional amount of credit extension commitments
Loan commitments (1)	Loan commitments (1)	$	105,390	$	193,141	$	142,512	$	21,027	$	462,070	Loan commitments (1)	$	103,361	$	193,656	$	155,834	$	27,247	$	480,098
Home equity lines of credit	Home equity lines of credit	733		3,354		9,451		28,109		41,647		Home equity lines of credit	762		3,807		10,119		26,286		40,974
Standby letters of credit and financial guarantees (2)	Standby letters of credit and financial guarantees (2)	21,989		9,960		2,097		1,268		35,314		Standby letters of credit and financial guarantees (2)	20,853		11,634		1,766		539		34,792
Letters of credit (3)	Letters of credit (3)	1,097		176		32		22		1,327		Letters of credit (3)	1,609		309		30		29		1,977
Legally binding commitments	Legally binding commitments	129,209		206,631		154,092		50,426		540,358		Legally binding commitments	126,585		209,406		167,749		54,101		557,841
Credit card lines (4)	Credit card lines (4)	388,922		0		0		0		388,922		Credit card lines (4)	394,052		0		0		0		394,052
Total credit extension commitments	Total credit extension commitments	$	518,131	$	206,631	$	154,092	$	50,426	$	929,280	Total credit extension commitments	$	520,637	$	209,406	$	167,749	$	54,101	$	951,893

		December 31, 2020											December 31, 2020
Notional amount of credit extension commitments	Notional amount of credit extension commitments											Notional amount of credit extension commitments
Loan commitments (1)	Loan commitments (1)	$	109,406	$	171,887	$	139,508	$	16,091	$	436,892	Loan commitments (1)	$	109,406	$	171,887	$	139,508	$	16,091	$	436,892
Home equity lines of credit	Home equity lines of credit	710		2,992		8,738		29,892		42,332		Home equity lines of credit	710		2,992		8,738		29,892		42,332
Standby letters of credit and financial guarantees (2)	Standby letters of credit and financial guarantees (2)	19,962		12,038		2,397		1,257		35,654		Standby letters of credit and financial guarantees (2)	19,962		12,038		2,397		1,257		35,654
Letters of credit (3)	Letters of credit (3)	886		197		25		27		1,135		Letters of credit (3)	886		197		25		27		1,135
Legally binding commitments	Legally binding commitments	130,964		187,114		150,668		47,267		516,013		Legally binding commitments	130,964		187,114		150,668		47,267		516,013
Credit card lines (4)	Credit card lines (4)	384,955		0		0		0		384,955		Credit card lines (4)	384,955		0		0		0		384,955
Total credit extension commitments	Total credit extension commitments	$	515,919	$	187,114	$	150,668	$	47,267	$	900,968	Total credit extension commitments	$	515,919	$	187,114	$	150,668	$	47,267	$	900,968

(1) At ~~both March 31,~~June 30, 2021 and December 31, 2020, $5.5 billion and $4.8 billion of these loan commitments were held in the form of a security.

(2) The notional amounts of SBLCs and financial guarantees classified as investment grade and non-investment grade based on the credit quality of the underlying reference name within the instrument were ~~$25.2~~$25.3 billion and ~~$9.6~~$9.1 billion at ~~March 31,~~June 30, 2021, and $25.0 billion and $10.2 billion at December 31, 2020. Amounts in the table include consumer SBLCs of ~~$481~~$476 million and $500 million at ~~March 31,~~June 30, 2021 and December 31, 2020.

(3) At ~~both March 31,~~June 30, 2021 and December 31, 2020, included are letters of credit of $1.9 billion and $1.8 billion related to certain liquidity commitments of VIEs. For more information, see Note 6 – Securitizations and Other Variable Interest Entities.

(4) Includes business card unused lines of credit.

Other Commitments

At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation had commitments to purchase loans (e.g., residential mortgage and commercial real estate) of ~~$138~~$64 million and $93 million, which upon settlement will be included in trading account assets, loans or LHFS, and commitments to purchase commercial loans of ~~$726~~$430 million and $645 million, which upon settlement will be included in trading account assets.

At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation had commitments to purchase commodities, primarily liquefied natural gas, of ~~$430~~$616 million and $582 million, which upon settlement will be included in trading account assets.

At ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation had commitments to enter into resale and forward-dated resale and securities borrowing agreements of ~~$119.0~~$127.8 billion and $66.5 billion, and commitments to enter into forward-dated repurchase and securities lending agreements of ~~$60.6~~$67.5 billion and $32.1 billion. These commitments generally expire within the next 12 months.

At ~~both March 31,~~June 30, 2021 and December 31, 2020, the Corporation had a commitment to originate or purchase up to $4.0 billion and $3.9 billion on a rolling 12-month basis, of auto loans and leases from a strategic partner. This commitment extends through November 2022 and can be terminated with 12 months prior notice.

Other Guarantees

Bank-owned Life Insurance Book Value Protection

The Corporation sells products that offer book value protection to insurance carriers who offer group life insurance policies to corporations, primarily banks. At both ~~March 31,~~June 30, 2021 and December 31, 2020, the notional amount of these guarantees totaled $6.3 billion and $7.1 billion. At both ~~March 31,~~June 30, 2021 and December 31, 2020, the Corporation’s maximum exposure related to these

guarantees totaled $934 million and $1.1 billion, with estimated maturity dates between 2033 and 2039.

Merchant Services

The Corporation in its role as merchant acquirer or as a sponsor of other merchant acquirers may be held liable for any reversed charges that cannot be collected from the merchants, due to, among other things, merchant fraud or insolvency. If charges are properly reversed after a purchase and cannot be collected from either the merchants or merchant acquirers, the Corporation may be held liable for these reversed charges. The ability to reverse a charge is primarily governed by the applicable regulatory and card network rules, which include, but are not limited to, the type of charge, type of payment used and time limits. For the ~~three~~six months ended ~~March 31,~~June 30, 2021, the Corporation processed an aggregate purchase volume of ~~$301.1~~$411.8 billion. The Corporation’s risk in this area primarily relates to circumstances where a cardholder has purchased goods or services for future delivery. The Corporation mitigates this risk by requiring cash deposits, guarantees, letters of credit or other types of collateral from certain merchants. The Corporation’s reserves for contingent losses and the losses incurred related to the merchant processing activity were not significant. The Corporation continues to monitor its exposure in this area due to the potential economic impacts of the pandemic.

Representations and Warranties Obligations and Corporate Guarantees

For more information on representations and warranties obligations and corporate guarantees, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

The reserve for representations and warranties obligations and corporate guarantees was $1.2 billion and $1.3 billion at ~~both March 31,~~June 30, 2021 and December 31, 2020 and is included in accrued expenses and other liabilities on the Consolidated Balance Sheet and the related provision is included in other

83Bank of America

~~expenses and other liabilities on the Consolidated Balance Sheet and the related provision is included in other~~ income in the Consolidated Statement of Income. The representations and warranties reserve represents the Corporation’s best estimate of probable incurred losses, is based on its experience in previous negotiations, and is subject to judgment, a variety of assumptions, and known or unknown uncertainties. Future representations and warranties losses may occur in excess of the amounts recorded for these exposures; however, the Corporation does not expect such amounts to be material to the Corporation's financial condition and liquidity. See Litigation and Regulatory Matters below for the Corporation's combined range of possible loss in excess of the reserve for representations and warranties and the accrued liability for litigation.

Fixed Income Clearing Corporation Sponsored Member Repo Program

The Corporation acts as a sponsoring member in a repo program whereby the Corporation clears certain eligible resale and repurchase agreements through the Government Securities Division of the Fixed Income Clearing Corporation on behalf of clients that are sponsored members in accordance with the Fixed Income Clearing Corporation’s rules. As part of this program, the Corporation guarantees the payment and performance of its sponsored members to the Fixed Income Clearing Corporation. The Corporation’s guarantee obligation is secured by a security interest in cash or high-quality securities collateral placed by clients with the clearinghouse and therefore, the potential for the Corporation to incur significant losses under this arrangement is remote. The Corporation’s maximum potential exposure, without taking into consideration the related collateral, was ~~$3.4~~$13.6 billion and $22.5 billion at ~~March 31,~~June 30, 2021 and December 31, 2020.

Other Guarantees

The Corporation has entered into additional guarantee agreements and commitments, including sold risk participation swaps, liquidity facilities, lease-end obligation agreements, partial credit guarantees on certain leases, real estate joint venture guarantees, divested business commitments and sold put options that require gross settlement. The maximum potential future payments under these agreements are approximately $9.2 billion and $8.8 billion at ~~March 31,~~June 30, 2021 and December 31, 2020. The estimated maturity dates of these obligations extend up to 2049. The Corporation has made no material payments under these guarantees. For more information on maximum potential future payments under VIE-related liquidity commitments, see Note 6 – Securitizations and Other Variable Interest Entities.

In the normal course of business, the Corporation periodically guarantees the obligations of its affiliates in a variety of transactions including ISDA-related transactions and non-ISDA related transactions such as commodities trading, repurchase agreements, prime brokerage agreements and other transactions.

Guarantees of Certain Long-term Debt

The Corporation, as the parent company, fully and unconditionally guarantees the securities issued by BofA Finance LLC, a consolidated finance subsidiary of the Corporation, and effectively provides for the full and unconditional guarantee of trust securities issued by certain statutory trust companies that are 100 percent owned finance subsidiaries of the Corporation.

Litigation and Regulatory Matters

The following disclosures supplement the disclosure in Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K (the prior commitments and contingencies disclosure).

In the ordinary course of business, the Corporation and its subsidiaries are routinely defendants in or parties to many pending and threatened legal, regulatory and governmental actions and proceedings. In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Corporation generally cannot predict the eventual outcome of the pending matters, timing of the ultimate resolution of these matters, or eventual loss, fines or penalties related to each pending matter.

As a matter develops, the Corporation, in conjunction with any outside counsel handling the matter, evaluates whether such matter presents a loss contingency that is probable and estimable, and, for the matter described below and the matters disclosed in the prior commitments and contingencies disclosure, whether a loss in excess of any accrued liability is reasonably possible in future periods. Once the loss contingency is deemed to be both probable and estimable, the Corporation will establish an accrued liability and record a corresponding amount of litigation-related expense. The Corporation continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established.Excluding expenses of internal and external legal service providers, litigation-related expense of ~~$34~~$55 million and ~~$24~~$89 million was recognized for the three and six months ended ~~March 31,~~June 30, 2021 compared to $57 million and $81 million for the same periods in 2020.

For any matter disclosed in this Note and in the prior commitments and contingencies disclosure, for which a loss in future periods is reasonably possible and estimable (whether in excess of an accrued liability or where there is no accrued liability) and for representations and warranties exposures, the Corporation’s estimated range of possible loss is $0 to $1.3 billion in excess of the accrued liability, if any, as of ~~March 31,~~June 30, 2021.

The accrued liability and estimated range of possible loss are based upon currently available information and subject to significant judgment, a variety of assumptions and known and


						Bank of America84

unknown uncertainties. The matters underlying the accrued liability and estimated range of possible loss are unpredictable and may change from time to time, and actual losses may vary significantly from the current estimate and accrual. The estimated range of possible loss does not represent the Corporation’s maximum loss exposure.

Information is provided below, or in the prior commitments and contingencies disclosure regarding the nature of the litigation and, where specified, associated claimed damages. Based on current knowledge, and taking into account accrued liabilities, management does not believe that loss contingencies arising from pending matters, including the ~~matter~~matters described below, and in the prior commitments and contingencies disclosure, will have a material adverse effect on the consolidated financial condition or liquidity of the Corporation. However, in light of the significant judgment, variety of assumptions and uncertainties involved in those matters, some of which are beyond the Corporation’s control, and the very large or indeterminate damages sought in some of those matters, an adverse outcome in one or more of these matters could be


77~~Bank of America~~

material to the Corporation’s business or results of operations for any particular reporting period, or cause significant reputational harm.

Ambac Bond Insurance Litigation

Ambac v. Countrywide I

On May 11, 2021, the First Department, a New York State appellate court, affirmed the dismissal of Ambac’s fraudulent inducement claim.

LIBOR, Other Reference Rates, Foreign Exchange and Bond Trading Matters

On April 28, 2021, the European Commission concluded its investigation regarding trading by various financial institutions in sovereign, supranational, and agency bonds by issuing a fine in an amount not material to the Corporation.

On May 20, 2021, the European Commission concluded its investigation regarding trading by various financial institutions in European government bonds. Although it found that the respondent financial institutions violated European competition rules, it did not fine the Corporation because the conduct at issue occurred beyond the statute of limitations.

NOTE 11 Shareholders’ Equity

Common Stock

Declared Quarterly Cash Dividends on Common Stock (1)

Declaration Date

Record Date

Payment Date

Dividend Per Share

July 21, 2021

September 3, 2021

September 24, 2021

0.21

April 22, 2021

June 4, 2021

June 25, 2021

0.18

January 19, 2021

March 5, 2021

March 26, 2021

0.18

(1)In 2021, and through ~~April 29,~~July 30, 2021.

During the three and six months ended ~~March 31,~~June 30, 2021, the Corporation repurchased and retired ~~101~~103 million and 204 million shares of common stock, which reduced shareholders’ equity by ~~$3.5~~$4.2 billion and $7.7 billion.

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, in connection with employee stock plans, the Corporation issued 63 million shares of its common stock and, to satisfy tax withholding obligations, repurchased 24 million shares of its common stock.At ~~March 31,~~June 30, 2021, the Corporation had reserved ~~451~~566 million unissued shares of common stock for future issuances under employee stock plans, convertible notes and preferred stock.

On ~~April 22,~~July 21, 2021, the Board of Directors declared a quarterly common stock dividend ~~at the current rate~~ of ~~$0.18~~$0.21 per share.

Preferred Stock

~~During the three months ended March 31, 2021, the Corporation declared $490 million of cash dividends on~~

preferred stock. On January 28, 2021, the Corporation issued approximately 37,000 shares of 4.125% Non-Cumulative Preferred Stock, Series PP for $915 million, with quarterly dividends commencing in May 2021. The Series PP preferred stock has a liquidation preference of 25,000 per share and is subject to certain restrictions in the event the Corporation fails to declare and pay full dividends.

During the three months ended March 31, 2021 and June 30, 2021, the Corporation ~~fully redeemed Series CC~~declared $490 million and ~~Series T~~$260 million of cash dividends on preferred stock, ~~for~~or a total of ~~$1.1 billion.~~$750 million for the six months ended June 30, 2021. Additionally, on April 25, 2021, the Corporation fully redeemed Series EE ~~preferred stock~~Preferred Stock for $900 million. For more information on the Corporation's preferred stock, including liquidation preference, dividend requirements and redemption period, see Note 13 – Shareholders’ Equity to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

~~Restricted Stock Units~~

During the three months ended March 31, 2021, the Corporation granted 98 million restricted stock unit (RSU) awards to certain employees under the Bank of America Key Employee Equity Plan. Other than an insignificant amount that are settled in cash, the RSUs will be settled in shares of common stock of the Corporation. NaN of the RSU awards will vest over three years, and the remainder will generally vest over four years, provided that the employee remains continuously employed with the Corporation during that time. The RSUs will be expensed ratably over the life of the awards, net of estimated forfeitures, based on the grant-date fair value of the shares, except for awards that contain a retirement-eligibility provision and were issued to retirement-eligible employees, as these awards are generally expensed in the year preceding the grant date. Certain RSU awards granted during the three months ended March 31, 2021 were subsequently modified to include a retirement-eligibility provision, resulting in additional compensation and benefits expense of $269 million during the three months ended March 31, 2021. For more information, see ~~Note 18 – Stock-based Compensation Plans~~ ~~to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.~~

NOTE 12 Accumulated Other Comprehensive Income (Loss)

The table below presents the changes in accumulated OCI after-tax for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020.


(Dollars in millions)	(Dollars in millions)	Debt Securities		Debit Valuation Adjustments		Derivatives		Employee Benefit Plans		Foreign Currency		Total		(Dollars in millions)	Debt Securities		Debit Valuation Adjustments		Derivatives		Employee Benefit Plans		Foreign Currency		Total

Balance, December 31, 2019	Balance, December 31, 2019	$	323	$	(1,494)	$	(400)	$	(4,168)	$	(894)	$	(6,633)	Balance, December 31, 2019	$	323	$	(1,494)	$	(400)	$	(4,168)	$	(894)	$	(6,633)
Net change	Net change	4,795		1,346		417		43		(88)		6,513		Net change	4,693		53		732		100		(107)		5,471
Balance, March 31, 2020		$	5,118	$	(148)	$	17	$	(4,125)	$	(982)	$	(120)
Balance, June 30, 2020														Balance, June 30, 2020	$	5,016	$	(1,441)	$	332	$	(4,068)	$	(1,001)	$	(1,162)

Balance, December 31, 2020	Balance, December 31, 2020	$	5,122	$	(1,992)	$	426	$	(4,266)	$	(946)	$	(1,656)	Balance, December 31, 2020	$	5,122	$	(1,992)	$	426	$	(4,266)	$	(946)	$	(1,656)
Net change	Net change	(840)		116		(1,114)		51		(29)		(1,816)		Net change	(1,090)		265		(699)		120		(3)		(1,407)
Balance, March 31, 2021		$	4,282	$	(1,876)	$	(688)	$	(4,215)	$	(975)	$	(3,472)
Balance, June 30, 2021														Balance, June 30, 2021	$	4,032	$	(1,727)	$	(273)	$	(4,146)	$	(949)	$	(3,063)

The following table presents the net change in fair value recorded in accumulated OCI, net realized gains and losses reclassified into earnings and other changes for each component of OCI pre- and after-tax for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020.

85Bank of America


		Pretax		Tax effect		After- tax		Pretax		Tax effect		After- tax					Pretax		Tax effect		After- tax		Pretax		Tax effect		After- tax
		Three Months Ended March 31															Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021						2020						(Dollars in millions)	2021				2020
Debt securities:	Debt securities:															Debt securities:

Net increase (decrease) in fair value	Net increase (decrease) in fair value	$	(1,110)	$	270	$	(840)	$	6,701	$	(1,670)	$	5,031			Net increase (decrease) in fair value	$	(1,445)	$	355	$	(1,090)	$	6,628	$	(1,652)	$	4,976

Net realized gains reclassified into earnings (1)	Net realized gains reclassified into earnings (1)	0		0		0		(315)		79		(236)				Net realized gains reclassified into earnings (1)	0		0		0		(377)		94		(283)
Net change	Net change	(1,110)		270		(840)		6,386		(1,591)		4,795				Net change	(1,445)		355		(1,090)		6,251		(1,558)		4,693

Debit valuation adjustments:	Debit valuation adjustments:															Debit valuation adjustments:
Net increase in fair value	Net increase in fair value	140		(29)		111		1,751		(408)		1,343				Net increase in fair value	336		(76)		260		63		(13)		50
Net realized losses reclassified into earnings (1)	Net realized losses reclassified into earnings (1)	6		(1)		5		4		(1)		3				Net realized losses reclassified into earnings (1)	7		(2)		5		4		(1)		3

Net change	Net change	146		(30)		116		1,755		(409)		1,346				Net change	343		(78)		265		67		(14)		53
Derivatives:	Derivatives:															Derivatives:
Net increase (decrease) in fair value	Net increase (decrease) in fair value	(1,429)		356		(1,073)		520		(125)		395				Net increase (decrease) in fair value	(820)		205		(615)		914		(222)		692
Reclassifications into earnings:	Reclassifications into earnings:															Reclassifications into earnings:
Net interest income	Net interest income	(42)		10		(32)		29		(7)		22				Net interest income	(84)		20		(64)		53		(13)		40

Compensation and benefits expense	Compensation and benefits expense	(12)		3		(9)		0		0		0				Compensation and benefits expense	(26)		6		(20)		0		0		0
Net realized (gains) losses reclassified into earnings	Net realized (gains) losses reclassified into earnings	(54)		13		(41)		29		(7)		22				Net realized (gains) losses reclassified into earnings	(110)		26		(84)		53		(13)		40

Net change	Net change	(1,483)		369		(1,114)		549		(132)		417				Net change	(930)		231		(699)		967		(235)		732
Employee benefit plans:	Employee benefit plans:															Employee benefit plans:

Net actuarial losses and other reclassified into earnings (2)	Net actuarial losses and other reclassified into earnings (2)	67		(16)		51		57		(14)		43				Net actuarial losses and other reclassified into earnings (2)	142		(22)		120		133		(33)		100

Net change	Net change	67		(16)		51		57		(14)		43				Net change	142		(22)		120		133		(33)		100
Foreign currency:	Foreign currency:															Foreign currency:
Net decrease in fair value	Net decrease in fair value	144		(173)		(29)		228		(316)		(88)				Net decrease in fair value	116		(119)		(3)		115		(222)		(107)

Net change	Net change	144		(173)		(29)		228		(316)		(88)				Net change	116		(119)		(3)		115		(222)		(107)
Total other comprehensive income (loss)	Total other comprehensive income (loss)	$	(2,236)	$	420	$	(1,816)	$	8,975	$	(2,462)	$	6,513			Total other comprehensive income (loss)	$	(1,774)	$	367	$	(1,407)	$	7,533	$	(2,062)	$	5,471

(1) Reclassifications of pretax debt securities, DVA and foreign currency (gains) losses are recorded in other income in the Consolidated Statement of Income.

(2) Reclassifications of pretax employee benefit plan costs are recorded in other general operating expense in the Consolidated Statement of Income.

NOTE 13 Earnings Per Common Share

The calculation of earnings per common share (EPS) and diluted EPS for the three and six months ended ~~March 31,~~June 30, 2021 and 2020 is presented below. For more information on the calculation of EPS, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.


		Three Months Ended March 31				Three Months Ended June 30						Six Months Ended June 30
(In millions, except per share information)	(In millions, except per share information)	2021		2020			(In millions, except per share information)	2021		2020			2021		2020
Earnings per common share	Earnings per common share						Earnings per common share
Net income	Net income	$	8,050	$	4,010		Net income	$	9,224	$	3,533		$	17,274	$	7,543
Preferred stock dividends	Preferred stock dividends	(490)		(469)			Preferred stock dividends	(260)		(249)			(750)		(718)
Net income applicable to common shareholders	Net income applicable to common shareholders	$	7,560	$	3,541		Net income applicable to common shareholders	$	8,964	$	3,284		$	16,524	$	6,825

Average common shares issued and outstanding	Average common shares issued and outstanding	8,700.1		8,815.6			Average common shares issued and outstanding	8,620.8		8,739.9			8,660.4		8,777.6
Earnings per common share	Earnings per common share	$	0.87	$	0.40		Earnings per common share	$	1.04	$	0.38		$	1.91	$	0.78

Diluted earnings per common share	Diluted earnings per common share						Diluted earnings per common share

Net income applicable to common shareholders	Net income applicable to common shareholders	$	7,560	$	3,541		Net income applicable to common shareholders	$	8,964	$	3,284		$	16,524	$	6,825

Add preferred stock dividends due to assumed conversions							Add preferred stock dividends due to assumed conversions	56		0			112		0
Net income allocated to common shareholders							Net income allocated to common shareholders	$	9,020	$	3,284		$	16,636	$	6,825
Average common shares issued and outstanding	Average common shares issued and outstanding	8,700.1		8,815.6			Average common shares issued and outstanding	8,620.8		8,739.9			8,660.4		8,777.6
Dilutive potential common shares (1)	Dilutive potential common shares (1)	55.5		47.1			Dilutive potential common shares (1)	114.7		28.2			115.8		35.7
Total diluted average common shares issued and outstanding	Total diluted average common shares issued and outstanding	8,755.6		8,862.7			Total diluted average common shares issued and outstanding	8,735.5		8,768.1			8,776.2		8,813.3
Diluted earnings per common share	Diluted earnings per common share	$	0.86	$	0.40		Diluted earnings per common share	$	1.03	$	0.37		$	1.90	$	0.77

(1)Includes incremental dilutive shares from ~~RSUs,~~preferred stock, restricted stock units, restricted stock and warrants.

For ~~both~~ the three and six months ended ~~March 31,~~June 30, 2021, ~~and 2020,~~ 62 million average dilutive potential common shares associated with the Series L preferred stock were ~~not~~ included in the diluted share count ~~because the result would have been antidilutive~~ under the “if-converted” ~~method.~~method, whereas they were antidilutive for the three and six months ended June 30, 2020.

NOTE 14 Fair Value Measurements

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement

date. The Corporation determines the fair values of its financial

instruments under applicable accounting standards and conducts a review of fair value hierarchy classifications on a quarterly basis. Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair values of the assets and liabilities become unobservable or observable in the current marketplace. During the ~~three~~six months ended ~~March 31,~~June 30, 2021, there were no changes to valuation approaches or techniques that had, or are expected to have, a material impact on the Corporation’s consolidated financial position or results of operations.


79~~Bank of America~~


						Bank of America86

For more information regarding the fair value hierarchy, how the Corporation measures fair value and valuation techniques, see Note 1 – Summary of Significant Accounting Principles and Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K. The Corporation accounts for certain financial instruments under the fair value option. For more information, see Note 15 – Fair Value Option.

Recurring Fair Value

Assets and liabilities carried at fair value on a recurring basis at ~~March 31,~~June 30, 2021 and December 31, 2020, including financial instruments that the Corporation accounts for under the fair value option, are summarized in the following tables.


		March 31, 2021											June 30, 2021
		Fair Value Measurements											Fair Value Measurements
(Dollars in millions)	(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments (1)		Assets/Liabilities at Fair Value		(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments (1)		Assets/Liabilities at Fair Value
Assets	Assets											Assets
Time deposits placed and other short-term investments	Time deposits placed and other short-term investments	$	1,613	$	0	$	0	$	—	$	1,613	Time deposits placed and other short-term investments	$	1,450	$	0	$	0	$	—	$	1,450
Federal funds sold and securities borrowed or purchased under agreements to resell	Federal funds sold and securities borrowed or purchased under agreements to resell	0		153,387		0		—		153,387		Federal funds sold and securities borrowed or purchased under agreements to resell	0		163,344		0		—		163,344
Trading account assets:	Trading account assets:											Trading account assets:
U.S. Treasury and agency securities (2)	U.S. Treasury and agency securities (2)	32,709		2,653		0		—		35,362		U.S. Treasury and agency securities (2)	40,733		1,299		0		—		42,032
Corporate securities, trading loans and other	Corporate securities, trading loans and other	0		29,847		1,516		—		31,363		Corporate securities, trading loans and other	0		36,707		1,764		—		38,471
Equity securities	Equity securities	108,394		32,455		273		—		141,122		Equity securities	104,218		39,316		260		—		143,794
Non-U.S. sovereign debt	Non-U.S. sovereign debt	12,470		21,085		334		—		33,889		Non-U.S. sovereign debt	10,621		20,919		414		—		31,954
Mortgage trading loans, MBS and ABS:	Mortgage trading loans, MBS and ABS:											Mortgage trading loans, MBS and ABS:
U.S. government-sponsored agency guaranteed (2)	U.S. government-sponsored agency guaranteed (2)	0		25,375		62		—		25,437		U.S. government-sponsored agency guaranteed (2)	0		23,567		97		—		23,664
Mortgage trading loans, ABS and other MBS	Mortgage trading loans, ABS and other MBS	0		8,209		1,499		—		9,708		Mortgage trading loans, ABS and other MBS	0		10,417		1,401		—		11,818
Total trading account assets (3)	Total trading account assets (3)	153,573		119,624		3,684		—		276,881		Total trading account assets (3)	155,572		132,225		3,936		—		291,733
Derivative assets	Derivative assets	15,044		357,851		2,805		(329,802)		45,898		Derivative assets	17,487		331,302		3,312		(310,603)		41,498
AFS debt securities:	AFS debt securities:											AFS debt securities:
U.S. Treasury and agency securities	U.S. Treasury and agency securities	158,911		1,110		0		—		160,021		U.S. Treasury and agency securities	159,245		1,088		0		—		160,333
Mortgage-backed securities:	Mortgage-backed securities:											Mortgage-backed securities:
Agency	Agency	0		54,534		0		—		54,534		Agency	0		57,889		0		—		57,889
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	0		4,733		0		—		4,733		Agency-collateralized mortgage obligations	0		4,226		0		—		4,226
Non-agency residential	Non-agency residential	0		574		284		—		858		Non-agency residential	0		647		205		—		852
Commercial	Commercial	0		16,800		0		—		16,800		Commercial	0		18,919		0		—		18,919
Non-U.S. securities	Non-U.S. securities	0		14,755		13		—		14,768		Non-U.S. securities	0		17,156		11		—		17,167

Other taxable securities	Other taxable securities	0		2,485		73		—		2,558		Other taxable securities	0		2,847		74		—		2,921
Tax-exempt securities	Tax-exempt securities	0		16,243		98		—		16,341		Tax-exempt securities	0		15,823		51		—		15,874
Total AFS debt securities	Total AFS debt securities	158,911		111,234		468		—		270,613		Total AFS debt securities	159,245		118,595		341		—		278,181
Other debt securities carried at fair value:	Other debt securities carried at fair value:											Other debt securities carried at fair value:
U.S. Treasury and agency securities	U.S. Treasury and agency securities	553		0		0		—		553		U.S. Treasury and agency securities	518		0		0		—		518

Non-agency residential MBS	Non-agency residential MBS	0		492		260		—		752		Non-agency residential MBS	0		451		281		—		732

Non-U.S. and other securities	Non-U.S. and other securities	4,020		4,974		0		—		8,994		Non-U.S. and other securities	3,491		5,991		0		—		9,482
Total other debt securities carried at fair value	Total other debt securities carried at fair value	4,573		5,466		260		—		10,299		Total other debt securities carried at fair value	4,009		6,442		281		—		10,732
Loans and leases	Loans and leases	0		6,210		793		—		7,003		Loans and leases	0		6,093		857		—		6,950
Loans held-for-sale	Loans held-for-sale	0		1,460		220		—		1,680		Loans held-for-sale	0		1,944		263		—		2,207

Other assets (4)	Other assets (4)	12,086		3,036		2,090		—		17,212		Other assets (4)	10,034		3,119		1,775		—		14,928

Total assets (5)	Total assets (5)	$	345,800	$	758,268	$	10,320	$	(329,802)	$	784,586	Total assets (5)	$	347,797	$	763,064	$	10,765	$	(310,603)	$	811,023

Liabilities	Liabilities											Liabilities
Interest-bearing deposits in U.S. offices	Interest-bearing deposits in U.S. offices	$	0	$	504	$	0	$	—	$	504	Interest-bearing deposits in U.S. offices	$	0	$	515	$	0	$	—	$	515
Federal funds purchased and securities loaned or sold under agreements to repurchase	Federal funds purchased and securities loaned or sold under agreements to repurchase	0		154,865		0		—		154,865		Federal funds purchased and securities loaned or sold under agreements to repurchase	0		165,781		0		—		165,781
Trading account liabilities:	Trading account liabilities:											Trading account liabilities:
U.S. Treasury and agency securities	U.S. Treasury and agency securities	17,622		1,017		0		—		18,639		U.S. Treasury and agency securities	22,888		289		0		—		23,177
Equity securities	Equity securities	47,480		3,949		0		—		51,429		Equity securities	47,288		4,358		0		—		51,646
Non-U.S. sovereign debt	Non-U.S. sovereign debt	14,600		9,318		0		—		23,918		Non-U.S. sovereign debt	17,404		9,074		0		—		26,478
Corporate securities and other	Corporate securities and other	0		8,786		16		—		8,802		Corporate securities and other	0		8,766		17		—		8,783

Total trading account liabilities	Total trading account liabilities	79,702		23,070		16		—		102,788		Total trading account liabilities	87,580		22,487		17		—		110,084
Derivative liabilities	Derivative liabilities	14,647		350,213		6,011		(328,546)		42,325		Derivative liabilities	16,945		330,062		6,196		(314,287)		38,916
Short-term borrowings	Short-term borrowings	0		4,503		0		—		4,503		Short-term borrowings	0		4,490		0		—		4,490
Accrued expenses and other liabilities	Accrued expenses and other liabilities	14,367		3,204		0		—		17,571		Accrued expenses and other liabilities	11,899		3,275		0		—		15,174
Long-term debt	Long-term debt	0		29,486		1,028		—		30,514		Long-term debt	0		29,301		1,060		—		30,361
Total liabilities (5)	Total liabilities (5)	$	108,716	$	565,845	$	7,055	$	(328,546)	$	353,070	Total liabilities (5)	$	116,424	$	555,911	$	7,273	$	(314,287)	$	365,321

(1)Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.

(2)Includes ~~$26.3~~$23.7 billion of GSE obligations.

(3)Includes securities with a fair value of ~~$11.4~~$8.6 billion that were segregated in compliance with securities regulations or deposited with clearing organizations. This amount is included in the parenthetical disclosure on the Consolidated Balance Sheet. Trading account assets also includes ~~precious metal inventories~~certain commodities inventory of ~~$431 million~~$2.1 billion that are accounted for at the lower of cost or net realizable value, which is the current selling price less any costs to sell.

(4)Includes MSRs of ~~$1.2 billion~~$976 million which are classified as Level 3 assets.

(5)Total recurring Level 3 assets were ~~0.35~~0.36 percent of total consolidated assets, and total recurring Level 3 liabilities were 0.26 percent of total consolidated liabilities.

87Bank of America



	December 31, 2020
	Fair Value Measurements
(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments (1)		Assets/Liabilities at Fair Value
Assets
Time deposits placed and other short-term investments	$	1,649	$	0	$	0	$	—	$	1,649
Federal funds sold and securities borrowed or purchased under agreements to resell	0		108,856		0		—		108,856
Trading account assets:
U.S. Treasury and agency securities (2)	45,219		3,051		0		—		48,270
Corporate securities, trading loans and other	0		22,817		1,359		—		24,176
Equity securities	36,372		31,372		227		—		67,971
Non-U.S. sovereign debt	5,753		20,884		354		—		26,991
Mortgage trading loans, MBS and ABS:
U.S. government-sponsored agency guaranteed (2)	0		21,566		75		—		21,641
Mortgage trading loans, ABS and other MBS	0		8,440		1,365		—		9,805
Total trading account assets (3)	87,344		108,130		3,380		—		198,854
Derivative assets	15,624		416,175		2,751		(387,371)		47,179
AFS debt securities:
U.S. Treasury and agency securities	115,266		1,114		0		—		116,380
Mortgage-backed securities:
Agency	0		61,849		0		—		61,849
Agency-collateralized mortgage obligations	0		5,260		0		—		5,260
Non-agency residential	0		631		378		—		1,009
Commercial	0		16,491		0		—		16,491
Non-U.S. securities	0		13,999		18		—		14,017

Other taxable securities	0		2,640		71		—		2,711
Tax-exempt securities	0		16,598		176		—		16,774
Total AFS debt securities	115,266		118,582		643		—		234,491
Other debt securities carried at fair value:
U.S. Treasury and agency securities	93		0		0		—		93


Non-agency residential MBS	0		506		267		—		773



Non-U.S. and other securities	2,619		8,625		0		—		11,244
Total other debt securities carried at fair value	2,712		9,131		267		—		12,110
Loans and leases	0		5,964		717		—		6,681
Loans held-for-sale	0		1,349		236		—		1,585
Other assets (4)	9,898		3,850		1,970		—		15,718

Total assets (5)	$	232,493	$	772,037	$	9,964	$	(387,371)	$	627,123

Liabilities
Interest-bearing deposits in U.S. offices	$	0	$	481	$	0	$	—	$	481
Federal funds purchased and securities loaned or sold under agreements to repurchase	0		135,391		0		—		135,391
Trading account liabilities:
U.S. Treasury and agency securities	9,425		139		0		—		9,564
Equity securities	38,189		4,235		0		—		42,424
Non-U.S. sovereign debt	5,853		8,043		0		—		13,896
Corporate securities and other	0		5,420		16		—		5,436
Total trading account liabilities	53,467		17,837		16		—		71,320
Derivative liabilities	14,907		412,881		6,219		(388,481)		45,526
Short-term borrowings	0		5,874		0		—		5,874
Accrued expenses and other liabilities	12,297		4,014		0		—		16,311
Long-term debt	0		31,036		1,164		—		32,200
Total liabilities (5)	$	80,671	$	607,514	$	7,399	$	(388,481)	$	307,103

(1)Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.

(2)Includes $22.2 billion of GSE obligations.

(3)Includes securities with a fair value of $16.8 billion that were segregated in compliance with securities regulations or deposited with clearing organizations. This amount is included in the parenthetical disclosure on the Consolidated Balance Sheet. Trading account assets also includes ~~precious metal inventories~~certain commodities inventory of $576 million that are accounted for at the lower of cost or net realizable value, which is the current selling price less any costs to sell.

(4)Includes MSRs of $1.0 billion which are classified as Level 3 assets.

(5)Total recurring Level 3 assets were 0.35 percent of total consolidated assets, and total recurring Level 3 liabilities were 0.29 percent of total consolidated liabilities.


81~~Bank of America~~


						Bank of America88

The ~~table below presents~~following tables present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended ~~March 31,~~June 30, 2021 and 2020, including net realized and unrealized gains (losses) included in earnings and accumulated OCI. Transfers into Level 3 occur primarily due to

decreased price observability, and transfers out of Level 3 occur primarily due to increased price observability. Transfers occur on a regular basis for long-term debt instruments due to changes in the impact of unobservable inputs on the value of the embedded derivative in relation to the instrument as a whole.


Level 3 – Fair Value Measurements (1)	Level 3 – Fair Value Measurements (1)																					Level 3 – Fair Value Measurements (1)

		Balance January 1		Total Realized/Unrealized Gains (Losses) in Net Income (2)		Gains (Losses) in OCI (3)		Gross								Gross Transfers into Level 3		Gross Transfers out of Level 3		Balance March 31		Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2)			Balance April 1		Total Realized/Unrealized Gains (Losses) in Net Income (2)		Gains (Losses) in OCI (3)		Gross								Gross Transfers into Level 3		Gross Transfers out of Level 3		Balance June 30		Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2)
(Dollars in millions)	(Dollars in millions)							Purchases		Sales		Issuances		Settlements										(Dollars in millions)							Purchases		Sales		Issuances		Settlements
Three Months Ended March 31, 2021
Three Months Ended June 30, 2021																								Three Months Ended June 30, 2021
Trading account assets:	Trading account assets:																							Trading account assets:

Corporate securities, trading loans and other	Corporate securities, trading loans and other	$	1,359	$	(13)	$	0	$	241	$	(147)	$	0	$	(17)	$	152	$	(59)	$	1,516	$	(19)	Corporate securities, trading loans and other	$	1,516	$	38	$	0	$	185	$	(110)	$	0	$	(116)	$	306	$	(55)	$	1,764	$	16
Equity securities	Equity securities	227		(10)		0		45		(23)		0		0		52		(18)		273		(10)		Equity securities	273		32		0		8		(26)		0		0		26		(53)		260		23
Non-U.S. sovereign debt	Non-U.S. sovereign debt	354		0		(22)		2		0		0		0		0		0		334		3		Non-U.S. sovereign debt	334		20		34		0		0		0		0		26		0		414		20
Mortgage trading loans, MBS and ABS	Mortgage trading loans, MBS and ABS	1,440		49		0		128		(221)		1		(36)		256		(56)		1,561		32		Mortgage trading loans, MBS and ABS	1,561		(10)		0		119		(274)		0		(28)		188		(58)		1,498		(10)
Total trading account assets	Total trading account assets	3,380		26		(22)		416		(391)		1		(53)		460		(133)		3,684		6		Total trading account assets	3,684		80		34		312		(410)		0		(144)		546		(166)		3,936		49
Net derivative assets (liabilities) (4)	Net derivative assets (liabilities) (4)	(3,468)		286		0		138		(261)		0		147		(108)		60		(3,206)		272		Net derivative assets (liabilities) (4)	(3,206)		5		0		211		(88)		0		36		(83)		241		(2,884)		(19)
AFS debt securities:	AFS debt securities:																							AFS debt securities:

Non-agency residential MBS	Non-agency residential MBS	378		(16)		(97)		0		0		0		(17)		36		0		284		(16)		Non-agency residential MBS	284		1		3		0		0		0		(8)		0		(75)		205		0

Non-U.S. securities	Non-U.S. securities	18		0		0		0		0		0		(5)		0		0		13		0		Non-U.S. securities	13		(1)		0		0		0		0		(1)		0		0		11		0

Other taxable securities	Other taxable securities	71		0		(6)		8		0		0		0		0		0		73		0		Other taxable securities	73		0		1		0		0		0		0		0		0		74		0
Tax-exempt securities	Tax-exempt securities	176		14		0		0		0		0		0		0		(92)		98		13		Tax-exempt securities	98		3		0		0		0		0		0		0		(50)		51		3
Total AFS debt securities	Total AFS debt securities	643		(2)		(103)		8		0		0		(22)		36		(92)		468		(3)		Total AFS debt securities	468		3		4		0		0		0		(9)		0		(125)		341		3
Other debt securities carried at fair value – Non-agency residential MBS	Other debt securities carried at fair value – Non-agency residential MBS	267		(1)		0		0		0		0		(6)		0		0		260		(1)		Other debt securities carried at fair value – Non-agency residential MBS	260		3		0		0		0		0		(14)		32		0		281		3
Loans and leases (5,6)	Loans and leases (5,6)	717		70		0		0		0		10		(34)		30		0		793		71		Loans and leases (5,6)	793		34		0		0		0		60		(46)		16		0		857		34

Loans held-for-sale (5,6)	Loans held-for-sale (5,6)	236		(6)		(8)		0		0		0		(17)		19		(4)		220		(9)		Loans held-for-sale (5,6)	220		10		11		38		0		0		(23)		7		0		263		4
Other assets (6,7)	Other assets (6,7)	1,970		174		4		0		(1)		41		(105)		7		0		2,090		163		Other assets (6,7)	2,090		(153)		4		55		(144)		23		(100)		0		0		1,775		(117)

Trading account liabilities – Corporate securities and other	Trading account liabilities – Corporate securities and other	(16)		0		0		0		0		0		0		0		0		(16)		0		Trading account liabilities – Corporate securities and other	(16)		0		0		0		0		(1)		0		0		0		(17)		0

Long-term debt (5)	Long-term debt (5)	(1,164)		49		(13)		0		0		0		18		(32)		114		(1,028)		50		Long-term debt (5)	(1,028)		(67)		15		2		0		(2)		19		0		1		(1,060)		(66)

Three Months Ended March 31, 2020
Three Months Ended June 30, 2020																								Three Months Ended June 30, 2020
Trading account assets:	Trading account assets:																							Trading account assets:

Corporate securities, trading loans and other	Corporate securities, trading loans and other	$	1,507	$	(103)	$	(1)	$	216	$	(90)	$	8	$	(32)	$	237	$	(102)	$	1,640	$	(108)	Corporate securities, trading loans and other	$	1,640	$	(27)	$	0	$	64	$	(42)	$	0	$	(42)	$	147	$	(192)	$	1,548	$	(27)
Equity securities	Equity securities	239		(26)		0		26		(11)		0		0		25		(4)		249		(27)		Equity securities	249		1		0		3		(23)		0		0		0		(36)		194		0
Non-U.S. sovereign debt	Non-U.S. sovereign debt	482		2		(53)		73		(48)		0		(10)		17		(213)		250		3		Non-U.S. sovereign debt	250		26		(10)		2		(11)		0		(9)		0		0		248		26
Mortgage trading loans, MBS and ABS	Mortgage trading loans, MBS and ABS	1,553		(125)		(2)		362		(245)		0		(19)		233		(24)		1,733		(129)		Mortgage trading loans, MBS and ABS	1,733		(22)		(1)		104		(229)		0		(21)		259		(87)		1,736		(36)
Total trading account assets	Total trading account assets	3,781		(252)		(56)		677		(394)		8		(61)		512		(343)		3,872		(261)		Total trading account assets	3,872		(22)		(11)		173		(305)		0		(72)		406		(315)		3,726		(37)
Net derivative assets (liabilities) (4)	Net derivative assets (liabilities) (4)	(2,538)		346		0		40		(148)		0		12		(528)		(93)		(2,909)		279		Net derivative assets (liabilities) (4)	(2,909)		(463)		0		137		(233)		0		(178)		252		51		(3,343)		(558)
AFS debt securities:	AFS debt securities:																							AFS debt securities:

Non-agency residential MBS	Non-agency residential MBS	424		(3)		(13)		0		0		0		(12)		128		0		524		0		Non-agency residential MBS	524		(2)		4		23		0		0		(10)		5		(82)		462		(2)

Non-U.S. securities	Non-U.S. securities	2		0		0		0		(1)		0		0		0		0		1		0		Non-U.S. securities	1		0		0		0		0		0		0		4		0		5		0

Other taxable securities	Other taxable securities	65		0		0		3		0		0		0		0		0		68		0		Other taxable securities	68		0		0		0		(4)		0		0		1		0		65		0
Tax-exempt securities	Tax-exempt securities	108		(10)		2		0		0		0		0		0		0		100		0		Tax-exempt securities	100		(24)		1		0		0		0		0		265		(5)		337		(24)
Total AFS debt securities	Total AFS debt securities	599		(13)		(11)		3		(1)		0		(12)		128		0		693		0		Total AFS debt securities	693		(26)		5		23		(4)		0		(10)		275		(87)		869		(26)
Other debt securities carried at fair value – Non-agency residential MBS	Other debt securities carried at fair value – Non-agency residential MBS	299		(49)		0		0		0		0		(4)		26		(3)		269		(49)		Other debt securities carried at fair value – Non-agency residential MBS	269		43		0		0		0		0		(4)		150		(9)		449		43
Loans and leases (5,6)	Loans and leases (5,6)	693		(119)		0		0		0		0		(16)		0		0		558		(107)		Loans and leases (5,6)	558		47		0		32		(1)		22		(15)		98		0		741		46

Loans held-for-sale (5,6)	Loans held-for-sale (5,6)	375		(9)		(28)		0		0		691		(45)		93		0		1,077		(15)		Loans held-for-sale (5,6)	1,077		9		(5)		0		(81)		0		(30)		0		0		970		5
Other assets (6,7)	Other assets (6,7)	2,360		(251)		(30)		0		1		20		(142)		2		0		1,960		(287)		Other assets (6,7)	1,960		(68)		13		0		0		133		(128)		3		(2)		1,911		(91)
Trading account liabilities – Equity securities	Trading account liabilities – Equity securities	(2)		1		0		0		0		0		0		0		0		(1)		1		Trading account liabilities – Equity securities	(1)		0		0		0		0		0		0		0		0		(1)		0
Trading account liabilities – Corporate securities and other	Trading account liabilities – Corporate securities and other	(15)		1		0		(6)		0		0		0		0		0		(20)		1		Trading account liabilities – Corporate securities and other	(20)		4		0		(1)		0		0		1		0		0		(16)		0

Long-term debt (5)	Long-term debt (5)	(1,149)		127		187		8		0		(13)		141		(23)		1		(721)		126		Long-term debt (5)	(721)		(72)		(127)		0		0		(32)		14		(29)		11		(956)		(74)

(1)Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.

(2)Includes gains (losses) reported in earnings in the following income statement line items: Trading account assets/liabilities - predominantly market making and similar activities; Net derivative assets (liabilities) - market making and similar activities and other income; AFS debt securities - other income; Other debt securities carried at fair value - other income; Loans and leases - market making and similar activities and other income; Loans held-for-sale - other income; Other assets - primarily other income related to MSRs; Long-term debt - market making and similar activities.

(3)Includes unrealized gains (losses) in OCI on AFS debt securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. Amounts include net unrealized gains (losses) of ~~$(136)~~$67 million and ~~$67~~$(126) million related to financial instruments still held at ~~March 31,~~June 30, 2021 and 2020.

(4)Net derivative assets (liabilities) include derivative assets of ~~$2.8~~$3.3 billion and ~~$1.9~~$2.6 billion and derivative liabilities of ~~$6.0~~$6.2 billion and ~~$4.8~~$5.9 billion at ~~March 31,~~June 30, 2021 and 2020.

(5)Amounts represent instruments that are accounted for under the fair value option.

(6)Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales.

(7)Settlements primarily represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.


89Bank of America



Level 3 – Fair Value Measurements (1)

	Balance January 1		Total Realized/Unrealized Gains (Losses) in Net Income (2)		Gains (Losses) in OCI (3)		Gross								Gross Transfers into Level 3		Gross Transfers out of Level 3		Balance June 30		Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2)
(Dollars in millions)							Purchases		Sales		Issuances		Settlements
Six Months Ended June 30, 2021
Trading account assets:

Corporate securities, trading loans and other	$	1,359	$	25	$	0	$	426	$	(257)	$	0	$	(133)	$	458	$	(114)	$	1,764	$	(5)
Equity securities	227		22		0		53		(49)		0		0		78		(71)		260		14
Non-U.S. sovereign debt	354		20		12		2		0		0		0		26		0		414		23
Mortgage trading loans, ABS and other MBS	1,440		39		0		247		(495)		1		(64)		444		(114)		1,498		16
Total trading account assets	3,380		106		12		728		(801)		1		(197)		1,006		(299)		3,936		48
Net derivative assets (liabilities) (4)	(3,468)		291		0		349		(349)		0		183		(191)		301		(2,884)		192
AFS debt securities:



Non-agency residential MBS	378		(15)		(94)		0		0		0		(25)		36		(75)		205		(2)

Non-U.S. securities	18		(1)		0		0		0		0		(6)		0		0		11		0

Other taxable securities	71		0		(5)		8		0		0		0		0		0		74		0
Tax-exempt securities	176		17		0		0		0		0		0		0		(142)		51		16
Total AFS debt securities	643		1		(99)		8		0		0		(31)		36		(217)		341		14
Other debt securities carried at fair value – Non-agency residential MBS	267		2		0		0		0		0		(20)		32		0		281		2
Loans and leases (5,6)	717		104		0		0		0		70		(80)		46		0		857		111
Loans held-for-sale (5,6)	236		4		3		38		0		0		(40)		26		(4)		263		(5)
Other assets (6,7)	1,970		21		8		55		(145)		64		(205)		7		0		1,775		46



Trading account liabilities – Corporate securities and other	(16)		0		0		0		0		(1)		0		0		0		(17)		1


Long-term debt (5)	(1,164)		(18)		2		2		0		(2)		37		(32)		115		(1,060)		(34)

Six Months Ended June 30, 2020
Trading account assets:

Corporate securities, trading loans and other	$	1,507	$	(130)	$	(1)	$	280	$	(132)	$	8	$	(74)	$	384	$	(294)	$	1,548	$	(122)
Equity securities	239		(25)		0		29		(34)		0		0		25		(40)		194		(23)
Non-U.S. sovereign debt	482		28		(63)		75		(59)		0		(19)		17		(213)		248		28
Mortgage trading loans, ABS and other MBS	1,553		(147)		(3)		466		(474)		0		(40)		492		(111)		1,736		(139)
Total trading account assets	3,781		(274)		(67)		850		(699)		8		(133)		918		(658)		3,726		(256)
Net derivative assets (liabilities) (4)	(2,538)		(117)		0		177		(381)		0		(166)		(276)		(42)		(3,343)		(500)
AFS debt securities:




Non-agency residential MBS	424		(5)		(9)		23		0		0		(22)		133		(82)		462		(5)
Non-U.S. securities	2		0		0		0		(1)		0		0		4		0		5		0

Other taxable securities	65		0		0		3		(4)		0		0		1		0		65		0
Tax-exempt securities	108		(34)		3		0		0		0		0		265		(5)		337		(33)
Total AFS debt securities	599		(39)		(6)		26		(5)		0		(22)		403		(87)		869		(38)
Other debt securities carried at fair value – Non-agency residential MBS	299		(6)		0		0		0		0		(8)		176		(12)		449		(29)
Loans and leases (5,6)	693		(72)		0		32		(1)		22		(31)		98		0		741		(36)
Loans held-for-sale (5,6)	375		0		(33)		0		(81)		691		(75)		93		0		970		(10)
Other assets (6,7)	2,360		(319)		(17)		0		1		153		(270)		5		(2)		1,911		(376)

Trading account liabilities – Equity securities	(2)		1		0		0		0		0		0		0		0		(1)		1
Trading account liabilities – Corporate securities and other	(15)		5		0		(7)		0		0		1		0		0		(16)		1


Long-term debt (5)	(1,149)		55		60		8		0		(45)		155		(52)		12		(956)		37

(1)Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.

(3)Includes unrealized gains (losses) in OCI on AFS debt securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. Amounts include net unrealized gains (losses) of $(5) million and $(40) million related to financial instruments still held at June 30, 2021 and 2020.

(4)Net derivative assets (liabilities) include derivative assets of $3.3 billion and $2.6 billion and derivative liabilities of $6.2 billion and $5.9 billion at June 30, 2021 and 2020.

(5)Amounts represent instruments that are accounted for under the fair value option.

(6)Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales.

(7)Settlements primarily represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.


						Bank of America 8290

The following tables present information about significant unobservable inputs related to the Corporation’s material categories of Level 3 financial assets and liabilities at ~~March 31,~~June 30, 2021 and December 31, 2020.

Quantitative Information about Level 3 Fair Value Measurements at March 31, 2021

Quantitative Information about Level 3 Fair Value Measurements at June 30, 2021

(Dollars in millions)

Inputs

(Dollars in millions)

Inputs

Financial Instrument

Fair
Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted Average (1)

Financial Instrument

Fair
Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted Average (1)

Loans and Securities (2)

Instruments backed by residential real estate assets

1,403

Discounted cash flow, Market comparables

Yield

0% to 25%

Instruments backed by residential real estate assets

1,237

Discounted cash flow, Market comparables

Yield

0% to 25%

Trading account assets – Mortgage trading loans, ABS and other MBS

433

Prepayment speed

7% to 35% CPR

16% CPR

Trading account assets – Mortgage trading loans, ABS and other MBS

368

Prepayment speed

1% to 37% CPR

18% CPR

Loans and leases

426

Default rate

0% to 3% CDR

1% CDR

Loans and leases

383

Default rate

0% to 3% CDR

1% CDR

AFS debt securities – Non-agency residential

284

Price

$0 to td52

$96

AFS debt securities – Non-agency residential

205

Price

$0 to td55

$96

Other debt securities carried at fair value – Non-agency residential

260

Loss severity

14% to 37%

Other debt securities carried at fair value – Non-agency residential

281

Loss severity

0% to 42%

Instruments backed by commercial real estate assets

481

Discounted cash
flow

Yield

0% to 25%

Instruments backed by commercial real estate assets

440

Discounted cash
flow

Yield

0% to 25%

Trading account assets – Corporate securities, trading loans and other

326

Price

$0 to td01

$62

Trading account assets – Corporate securities, trading loans and other

266

Price

$0 to td01

$60

Trading account assets – Mortgage trading loans, ABS and other MBS

AFS debt securities, primarily other taxable securities

Loans held-for-sale

Commercial loans, debt securities and other

3,268

Discounted cash flow, Market comparables

Yield

0% to 25%

Commercial loans, debt securities and other

3,741

Discounted cash flow, Market comparables

Yield

0% to 17%

Trading account assets – Corporate securities, trading loans and other

1,190

Prepayment speed

10% to 20%

Trading account assets – Corporate securities, trading loans and other

1,498

Prepayment speed

10% to 20%

Trading account assets – Non-U.S. sovereign debt

334

Default rate

3% to 4%

Trading account assets – Non-U.S. sovereign debt

414

Default rate

3% to 4%

Trading account assets – Mortgage trading loans, ABS and other MBS

1,067

Loss severity

35% to 40%

Trading account assets – Mortgage trading loans, ABS and other MBS

1,050

Loss severity

35% to 40%

AFS debt securities – Tax-exempt securities

Price

$0 to td70

$67

AFS debt securities – Tax-exempt securities

Price

$0 to td56

$71

Loans and leases

367

Long-dated equity volatilities

50%

n/a

Loans and leases

474

Long-dated equity volatilities

44%

n/a

Loans held-for-sale

212

Loans held-for-sale

254

Other assets, primarily auction rate securities

936

Discounted cash flow, Market comparables

Price

td0 to $97

$94

Other assets, primarily auction rate securities

799

Discounted cash flow, Market comparables

Price

td0 to $96

$93

Discount rate

n/a

Discount rate

n/a

MSRs

1,154

Discounted cash
flow

Weighted-average life, fixed rate (5)

0 to 14 years

5 years

MSRs

976

Discounted cash
flow

Weighted-average life, fixed rate (5)

0 to 14 years

4 years

Weighted-average life, variable rate (5)

0 to 10 years

3 years

Weighted-average life, variable rate (5)

0 to 10 years

3 years

Option-adjusted spread, fixed rate

7% to 14%

Option-adjusted spread, fixed rate

7% to 14%

Option-adjusted spread, variable rate

9% to 15%

Option-adjusted spread, variable rate

9% to 15%

Structured liabilities

Long-term debt

(1,028)

Discounted cash flow, Market comparables, Industry standard derivative pricing (3)

Yield

0% to 13%

Long-term debt

(1,060)

Discounted cash flow, Market comparables, Industry standard derivative pricing (3)

Yield

0% to 14%

Equity correlation

2% to 99%

Equity correlation

3% to 99%

Long-dated equity volatilities

4% to 64%

Long-dated equity volatilities

4% to 61%

Price

$0 to td20

$84

Price

$0 to td24

$87

Natural gas forward price

td/MMBtu to $5/MMBtu

$3 /MMBtu

Natural gas forward price

td/MMBtu to $6/MMBtu

$3 /MMBtu

Net derivative assets (liabilities)

Credit derivatives

(39)

Discounted cash flow, Stochastic recovery correlation model

Yield

n/a

Credit derivatives

(108)

Discounted cash flow, Stochastic recovery correlation model

Credit spreads

1 to 375 bps

85 bps

Credit spreads

0 to 191 bps

65 bps

Upfront points

16 to 100 points

74 points

Upfront points

16 to 100 points

74 points

Prepayment speed

15% to 100% CPR

17%

Prepayment speed

15% CPR

n/a

Default rate

2% CDR

n/a

Default rate

2% CDR

n/a

Credit correlation

20% to 22%

Credit correlation

21% to 60%

Price

$0 to td22

$62

Discounted cash flow, Stochastic recovery correlation model

Price

$0 to td22

$63

Equity derivatives

(1,924)

Industry standard derivative pricing (3)

Equity correlation

2% to 99%

Equity derivatives

(1,440)

Equity correlation

3% to 99%

Long-dated equity volatilities

4% to 64%

Long-dated equity volatilities

4% to 60%

Commodity derivatives

(1,278)

Discounted cash flow, Industry standard derivative pricing (3)

Natural gas forward price

td/MMBtu to $5/MMBtu

$3 /MMBtu

Commodity derivatives

(1,259)

Natural gas forward price

td/MMBtu to $6/MMBtu

$3 /MMBtu

Correlation

39% to 79%

Correlation

54% to 85%

Volatilities

24% to 47%

Volatilities

27% to 51%

Interest rate derivatives

Industry standard derivative pricing (4)

Correlation (IR/IR)

15% to 90%

Interest rate derivatives

(77)

Correlation (IR/IR)

(1)% to 90%

Correlation (FX/IR)

0% to 46%

Correlation (FX/IR)

0% to 58%

Long-dated inflation rates

(3)% to 36%

Industry standard derivative pricing (4)

Long-dated inflation rates

(8)% to 15%

Long-dated inflation volatilities

0% to 1%

Long-dated inflation volatilities

0% to 1%

Interest rate volatilities

0% to 2%

Interest rate volatilities

0% to 2%

Total net derivative assets (liabilities)

(3,206)

Total net derivative assets (liabilities)

(2,884)

(1)For loans and securities, structured liabilities and net derivative assets (liabilities), the weighted average is calculated based upon the absolute fair value of the instruments.

(2)The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page ~~80:~~87: Trading account assets – Corporate securities, trading loans and other of ~~$1.5~~$1.8 billion, Trading account assets – Non-U.S. sovereign debt of ~~$334~~$414 million, Trading account assets – Mortgage trading loans, MBS and ABS of ~~$1.6~~$1.5 billion, AFS debt securities of ~~$468~~$341 million, Other debt securities carried at fair value - Non-agency residential of ~~$260~~$281 million, Other assets, including MSRs, of ~~$2.1~~$1.8 billion, Loans and leases of ~~$793~~$857 million and LHFS of ~~$220~~$263 million.

(3)Includes models such as Monte Carlo simulation and Black-Scholes.

(4)Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.

(5)The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions.

CPR = Constant Prepayment Rate

CDR = Constant Default Rate

MMBtu = Million British thermal units

IR = Interest Rate

FX = Foreign Exchange

n/a = not applicable


8391 Bank of America

Quantitative Information about Level 3 Fair Value Measurements at December 31, 2020

(Dollars in millions)

Inputs

Financial Instrument

Fair
Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted Average (1)

Loans and Securities (2)

Instruments backed by residential real estate assets

1,543

Discounted cash
flow, Market comparables

Yield

(3)% to 25%

Trading account assets – Mortgage trading loans, ABS and other MBS

467

Prepayment speed

1% to 56% CPR

20% CPR

Loans and leases

431

Default rate

0% to 3% CDR

1% CDR

AFS debt securities - Non-agency residential

378

Price

$0 to $168

$110

Other debt securities carried at fair value - Non-agency residential

267

Loss severity

0% to 47%

Instruments backed by commercial real estate assets

407

Discounted cash
flow

Yield

0% to 25%

Trading account assets – Corporate securities, trading loans and other

262

Price

$0 to $100

$52

Trading account assets – Mortgage trading loans, ABS and other MBS

AFS debt securities, primarily other taxable securities

Loans held-for-sale

Commercial loans, debt securities and other

3,066

Discounted cash flow, Market comparables

Yield

0% to 26%

Trading account assets – Corporate securities, trading loans and other

1,097

Prepayment speed

10% to 20%

Trading account assets – Non-U.S. sovereign debt

354

Default rate

3% to 4%

Trading account assets – Mortgage trading loans, ABS and other MBS

930

Loss severity

35% to 40%

AFS debt securities – Tax-exempt securities

176

Price

$0 to $142

$66

Loans and leases

286

Long-dated equity volatilities

77%

n/a

Loans held-for-sale

223

Other assets, primarily auction rate securities

937

Discounted cash flow, Market comparables

Price

$10 to $97

$91

Discount rate

n/a

MSRs

1,033

Discounted cash
flow

Weighted-average life, fixed rate (5)

0 to 13 years

4 years

Weighted-average life, variable rate (5)

0 to 10 years

3 years

Option-adjusted spread, fixed rate

7% to 14%

Option-adjusted spread, variable rate

9% to 15%

Structured liabilities

Long-term debt

(1,164)

Discounted cash flow, Market comparables, Industry standard derivative pricing (3)

Yield

0% to 11%

Equity correlation

2% to 100%

Long-dated equity volatilities

7% to 64%

Price

$0 to $124

$86

Natural gas forward price

$1/MMBtu to $4/MMBtu

$3/MMBtu

Net derivative assets (liabilities)

Credit derivatives

(112)

Discounted cash flow, Stochastic recovery correlation model

Yield

n/a

Upfront points

0 to 100 points

75 points

Prepayment speed

15% to 100% CPR

22% CPR

Default rate

2% CDR

n/a

Credit correlation

21% to 64%

Price

$0 to $122

$69

Equity derivatives

(1,904)

Industry standard derivative pricing (3)

Equity correlation

2% to 100%

Long-dated equity volatilities

7% to 64%

Commodity derivatives

(1,426)

Discounted cash flow, Industry standard derivative pricing (3)

Natural gas forward price

$1/MMBtu to $4/MMBtu

$3/MMBtu

Correlation

39% to 85%

Volatilities

23% to 70%

Interest rate derivatives

(26)

Industry standard derivative pricing (4)

Correlation (IR/IR)

15% to 96%

Correlation (FX/IR)

0% to 46%

Long-dated inflation rates

G(7)% to 84%

Long-dated inflation volatilities

0% to 1%

Interest rates volatilities

0% to 2%

Total net derivative assets (liabilities)

(3,468)

(1)For loans and securities, structured liabilities and net derivative assets (liabilities), the weighted average is calculated based upon the absolute fair value of the instruments.

(2)The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page ~~81:~~88: Trading account assets – Corporate securities, trading loans and other of $1.4 billion, Trading account assets – Non-U.S. sovereign debt of $354 million, Trading account assets – Mortgage trading loans, MBS and ABS of $1.4 billion, AFS debt securities of $643 million, Other debt securities carried at fair value - Non-agency residential of $267 million, Other assets, including MSRs, of $2.0 billion, Loans and leases of $717 million and LHFS of $236 million.

(3)Includes models such as Monte Carlo simulation and Black-Scholes.

(4)Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.

(5)The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions.

CPR = Constant Prepayment Rate

CDR = Constant Default Rate

MMBtu = Million British thermal units

IR = Interest Rate

FX = Foreign Exchange

n/a = not applicable

Uncertainty of Fair Value Measurements from Unobservable Inputs

For information on the types of instruments, valuation approaches and the impact of changes in unobservable inputs used in Level 3 measurements, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.


						Bank of America 8492

Nonrecurring Fair Value

The Corporation holds certain assets that are measured at fair value only in certain situations (e.g., the impairment of an asset), and these measurements are referred to herein as nonrecurring. The amounts below represent assets still held as of the reporting date for which a nonrecurring fair value adjustment was recorded during the three and six months ended ~~March 31,~~June 30, 2021 and 2020.

																		Assets Measured at Fair Value on a Nonrecurring Basis
		March 31, 2021				Three Months Ended March 31, 2021		June 30, 2021				Three Months Ended June 30, 2021		Six Months Ended June 30, 2021
(Dollars in millions)	(Dollars in millions)	Level 2		Level 3		Gains (Losses)			(Dollars in millions)	Level 2		Level 3		Gains (Losses)
Assets	Assets								Assets
Loans held-for-sale	Loans held-for-sale	$	2,116	$	66	$	5		Loans held-for-sale	$	1,105	$	52	$	9	$	9
Loans and leases (1)	Loans and leases (1)	0		85		(14)			Loans and leases (1)	0		142		(24)		(37)
Foreclosed properties (2, 3)	Foreclosed properties (2, 3)	0		3		(1)			Foreclosed properties (2, 3)	0		3		0		(1)
Other assets	Other assets	49		2,155		(403)			Other assets	322		2,172		(67)		(470)

		March 31, 2020				Three Months Ended March 31, 2020		June 30, 2020				Three Months Ended June 30, 2020		Six Months Ended June 30, 2020

Assets	Assets								Assets
Loans held-for-sale	Loans held-for-sale	$	1,017	$	628	$	(78)		Loans held-for-sale	$	505	$	1,119	$	(37)	$	(113)
Loans and leases (1)	Loans and leases (1)	0		117		(27)			Loans and leases (1)	0		186		(22)		(45)
Foreclosed properties (2, 3)	Foreclosed properties (2, 3)	0		15		(6)			Foreclosed properties (2, 3)	0		16		(5)		(8)
Other assets	Other assets	27		24		(2)			Other assets	187		6		(26)		(27)

(1)Includes $3$15 million and ~~$12~~$18 million of losses on loans that were written down to a collateral value of zero during the three and six months ended ~~March 31,~~June 30, 2021 compared to losses of $9 million and $18 million for the same periods in 2020.

(2)Amounts are included in other assets on the Consolidated Balance Sheet and represent the carrying value of foreclosed properties that were written down subsequent to their initial classification as foreclosed properties. Losses on foreclosed properties include losses recorded during the first 90 days after transfer of a loan to foreclosed properties.

(3)Excludes ~~$87~~$66 million and ~~$224~~$124 million of properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans) at ~~March 31,~~June 30, 2021 and 2020.

The table below presents information about significant unobservable inputs utilized in the Corporation's nonrecurring Level 3 fair value measurements at ~~March 31,~~June 30, 2021 and December 31, 2020.

Quantitative Information about Nonrecurring Level 3 Fair Value Measurements

Inputs

Financial Instrument

Fair Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted

Average (1)

Financial Instrument

Fair Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted

Average (1)

(Dollars in millions)

Three Months Ended March 31, 2021

(Dollars in millions)

Six Months Ended June 30, 2021

Loans held-for-sale

Discounted cash flow

Price

$73 to $99

$84

Loans and leases (2)

Market comparables

OREO discount

13% to 59%

Loans and leases (2)

142

Market comparables

OREO discount

13% to 59%

Costs to sell

8% to 26%

Costs to sell

8% to 26%

Other assets (3)

1,955

Discounted cash flow

Discount rate

n/a

Other assets (3)

1,955

Discounted cash flow

Discount rate

n/a

194

Market comparables

Estimated appraisal value

n/a

211

Market comparables

Estimated appraisal value

n/a

Year Ended December 31, 2020

Loans held-for-sale

792

Discounted cash flow

Price

$8 to $99

$95

Loans held-for-sale

792

Discounted cash flow

Price

$8 to $99

$95

Loans and leases (2)

301

Market comparables

OREO discount

13% to 59%

Loans and leases (2)

301

Market comparables

OREO discount

13% to 59%

Costs to sell

8% to 26%

Costs to sell

8% to 26%

Other assets (4)

576

Discounted cash flow

Revenue attrition

2% to 19%

Other assets (4)

576

Discounted cash flow

Revenue attrition

2% to 19%

Discount rate

11% to 14%

Discount rate

11% to 14%

(1)The weighted average is calculated based upon the fair value of the loans.

(2)Represents residential mortgages where the loan has been written down to the fair value of the underlying collateral.

(3)Represents the fair value of certain impaired renewable energy investments and impaired assets related to the Corporation’s real estate rationalization.

(4)Represents the fair value of the intangible asset related to the merchant contracts received from the dissolution of the Corporation's merchant services joint venture.

n/a = not applicable

NOTE 15 Fair Value Option

The Corporation elects to account for certain financial instruments under the fair value option. For more information on the primary financial instruments for which the fair value option elections have been made, see Note 21 – Fair Value Option to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K. The following tables provide information about the fair value carrying amount and the

contractual principal outstanding of assets and liabilities accounted for under the fair value option at ~~March 31,~~June 30, 2021 and December 31, 2020, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three and six months ended ~~March 31,~~June 30, 2021 and 2020.


8593 Bank of America

																											Fair Value Option Elections
		March 31, 2021						December 31, 2020							June 30, 2021						December 31, 2020
(Dollars in millions)	(Dollars in millions)	Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal		Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal		(Dollars in millions)	Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal		Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell	Federal funds sold and securities borrowed or purchased under agreements to resell	$	153,387	$	153,358	$	29	$	108,856	$	108,811	$	45	Federal funds sold and securities borrowed or purchased under agreements to resell	$	163,344	$	163,314	$	30	$	108,856	$	108,811	$	45
Loans reported as trading account assets (1)	Loans reported as trading account assets (1)	8,213		16,630		(8,417)		7,967		17,372		(9,405)		Loans reported as trading account assets (1)	9,818		18,392		(8,574)		7,967		17,372		(9,405)
Trading inventory – other	Trading inventory – other	21,710		n/a		n/a		22,790		n/a		n/a		Trading inventory – other	24,322		n/a		n/a		22,790		n/a		n/a
Consumer and commercial loans	Consumer and commercial loans	7,003		7,059		(56)		6,681		6,778		(97)		Consumer and commercial loans	6,950		7,000		(50)		6,681		6,778		(97)
Loans held-for-sale (1)	Loans held-for-sale (1)	1,680		2,571		(891)		1,585		2,521		(936)		Loans held-for-sale (1)	2,207		3,128		(921)		1,585		2,521		(936)

Other assets	Other assets	172		n/a		n/a		200		n/a		n/a		Other assets	183		n/a		n/a		200		n/a		n/a
Long-term deposits	Long-term deposits	504		488		16		481		448		33		Long-term deposits	515		501		14		481		448		33
Federal funds purchased and securities loaned or sold under agreements to repurchase	Federal funds purchased and securities loaned or sold under agreements to repurchase	154,865		154,873		(8)		135,391		135,390		1		Federal funds purchased and securities loaned or sold under agreements to repurchase	165,781		165,790		(9)		135,391		135,390		1
Short-term borrowings	Short-term borrowings	4,503		4,286		217		5,874		5,178		696		Short-term borrowings	4,490		4,497		(7)		5,874		5,178		696
Unfunded loan commitments	Unfunded loan commitments	91		n/a		n/a		99		n/a		n/a		Unfunded loan commitments	103		n/a		n/a		99		n/a		n/a

Long-term debt	Long-term debt	30,514		31,683		(1,169)		32,200		33,470		(1,270)		Long-term debt	30,361		31,436		(1,075)		32,200		33,470		(1,270)

(1)A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.

n/a = not applicable


Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option
Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option														Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option

		Three Months Ended March 31													Three Months Ended June 30
		2021						2020							2021						2020
(Dollars in millions)	(Dollars in millions)	Market making and similar activities		Other Income		Total		Market making and similar activities		Other Income		Total		(Dollars in millions)	Market making and similar activities		Other Income		Total		Market making and similar activities		Other Income		Total

Loans reported as trading account assets	Loans reported as trading account assets	$	112	$	0	$	112	$	(387)	$	0	$	(387)	Loans reported as trading account assets	$	171	$	0	$	171	$	314	$	0	$	314
Trading inventory – other (1)	Trading inventory – other (1)	(730)		0		(730)		(2,793)		0		(2,793)		Trading inventory – other (1)	2,304		0		2,304		3,343		0		3,343
Consumer and commercial loans	Consumer and commercial loans	71		19		90		(83)		(358)		(441)		Consumer and commercial loans	43		26		69		36		171		207

Loans held-for-sale (2)														Loans held-for-sale (2)	0		23		23		0		58		58

Short-term borrowings	Short-term borrowings	413		0		413		517		0		517		Short-term borrowings	61		0		61		(283)		0		(283)
Unfunded loan commitments	Unfunded loan commitments	0		5		5		0		(116)		(116)		Unfunded loan commitments	0		(11)		(11)		0		46		46

Long-term debt (2)		386		(16)		370		916		(16)		900
Other (3)		12		10		22		13		(51)		(38)
Long-term debt (3)														Long-term debt (3)	(1,047)		(8)		(1,055)		(1,869)		(9)		(1,878)
Other (4)														Other (4)	(1)		(46)		(47)		(4)		0		(4)
Total														Total	$	1,531	$	(16)	$	1,515	$	1,537	$	266	$	1,803

															Six Months Ended June 30
															2021						2020

Loans reported as trading account assets														Loans reported as trading account assets	$	283	$	0	$	283	$	(73)	$	0	$	(73)
Trading inventory – other (1)														Trading inventory – other (1)	1,574		0		1,574		550		0		550
Consumer and commercial loans														Consumer and commercial loans	114		45		159		(47)		(187)		(234)
Loans held-for-sale (2)														Loans held-for-sale (2)	0		11		11		0		45		45

Short-term borrowings														Short-term borrowings	474		0		474		234		0		234
Unfunded loan commitments														Unfunded loan commitments	0		(6)		(6)		0		(70)		(70)

Long-term debt (3)														Long-term debt (3)	(661)		(24)		(685)		(953)		(25)		(978)
Other (4)														Other (4)	11		(24)		(13)		9		(38)		(29)
Total	Total	$	264	$	18	$	282	$	(1,817)	$	(541)	$	(2,358)	Total	$	1,795	$	2	$	1,797	$	(280)	$	(275)	$	(555)

(1) The gains ~~(losses)~~ in market making and similar activities are primarily offset by ~~(losses) gains~~losses on trading liabilities that hedge these assets.

(2) Includes the value of IRLCs on funded loans, including those sold during the period.

(3)The net ~~gains~~losses in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by ~~losses~~gains on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

~~(3)~~(4) Includes gains (losses) on federal funds sold and securities borrowed or purchased under agreements to resell, ~~LHFS,~~other assets, long-term deposits and federal funds purchased and securities loaned or sold under agreements to repurchase.

																	Gains (Losses) Related to Borrower-specific Credit Risk for Assets and Liabilities Accounted for Under the Fair Value Option
		Three Months Ended March 31					Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	(Dollars in millions)		2021		2020			(Dollars in millions)	2021		2020		2021		2020
Loans reported as trading account assets	Loans reported as trading account assets		$	66	$	(389)		Loans reported as trading account assets	$	121	$	153	$	187	$	(236)
Consumer and commercial loans	Consumer and commercial loans		13		(349)			Consumer and commercial loans	19		153		32		(196)
Loans held-for-sale	Loans held-for-sale		(6)		(74)			Loans held-for-sale	4		(19)		(2)		(93)
Unfunded loan commitments	Unfunded loan commitments		5		(116)			Unfunded loan commitments	(11)		46		(6)		(70)


						Bank of America94

NOTE 16 Fair Value of Financial Instruments

The following disclosures include financial instruments that are not carried at fair value or only a portion of the ending balance is carried at fair value on the Consolidated Balance Sheet. Certain loans, deposits, long-term debt, unfunded lending commitments and other financial instruments are accounted for under the fair value option. For more information, see Note 21 – Fair Value Option to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Fair Value of Financial Instruments

The carrying values and fair values by fair value hierarchy of certain financial instruments where only a portion of the ending balance was carried at fair value at ~~March 31,~~June 30, 2021 and December 31, 2020 are presented in the following table.


						~~Bank of America~~86

																			Fair Value of Financial Instruments
				Fair Value									Fair Value
		Carrying Value		Level 2		Level 3		Total			Carrying Value		Level 2		Level 3		Total
(Dollars in millions)	(Dollars in millions)	March 31, 2021								(Dollars in millions)	June 30, 2021
Financial assets	Financial assets									Financial assets
Loans	Loans	$	865,652	$	48,960	$	862,801	$	911,761	Loans	$	883,938	$	50,383	$	875,364	$	925,747
Loans held-for-sale	Loans held-for-sale	7,895		7,173		722		7,895		Loans held-for-sale	8,277		7,489		788		8,277
Financial liabilities	Financial liabilities									Financial liabilities
Deposits (1)	Deposits (1)	1,884,938		1,884,934		0		1,884,934		Deposits (1)	1,909,142		1,909,132		0		1,909,132
Long-term debt	Long-term debt	251,211		258,936		1,028		259,964		Long-term debt	274,604		282,903		1,060		283,963
Commercial unfunded lending commitments (2)	Commercial unfunded lending commitments (2)	1,920		91		5,234		5,325		Commercial unfunded lending commitments (2)	1,790		103		6,259		6,362

		December 31, 2020									December 31, 2020
Financial assets	Financial assets									Financial assets
Loans	Loans	$	887,289	$	49,372	$	877,682	$	927,054	Loans	$	887,289	$	49,372	$	877,682	$	927,054
Loans held-for-sale	Loans held-for-sale	9,243		7,864		1,379		9,243		Loans held-for-sale	9,243		7,864		1,379		9,243
Financial liabilities	Financial liabilities									Financial liabilities
Deposits (1)	Deposits (1)	1,795,480		1,795,545		0		1,795,545		Deposits (1)	1,795,480		1,795,545		0		1,795,545
Long-term debt	Long-term debt	262,934		271,315		1,164		272,479		Long-term debt	262,934		271,315		1,164		272,479
Commercial unfunded lending commitments (2)	Commercial unfunded lending commitments (2)	1,977		99		5,159		5,258		Commercial unfunded lending commitments (2)	1,977		99		5,159		5,258

(1) Includes demand deposits of ~~$914.3~~$936.2 billion and $799.0 billion with 0 stated maturities at ~~March 31,~~June 30, 2021 and December 31, 2020.

(2) The carrying value of commercial unfunded lending commitments is included in accrued expenses and other liabilities on the Consolidated Balance Sheet. The Corporation does not estimate the fair value of consumer unfunded lending commitments because, in many instances, the Corporation can reduce or cancel these commitments by providing notice to the borrower. For more information on commitments, see Note 10 – Commitments and Contingencies.

NOTE 17 Business Segment Information

The Corporation reports its results of operations through the following 4 business segments: Consumer Banking, Global Wealth & Investment Management, Global Banking and Global Markets, with the remaining operations recorded in All Other. For more information see Note 23 – Business Segment Information to the Consolidated Financial Statements of the Corporation’s

2020 Annual Report on Form 10-K. The following tables present net income ~~(loss)~~ and the components thereto (with net interest

income on an FTE basis for the business segments, All Other and the total Corporation) for the three and six months ended ~~March 31,~~June 30, 2021 and 2020, and total assets at ~~March 31,~~June 30, 2021 and 2020 for each business segment, as well as All ~~Other,~~Other. including a reconciliation of the 4 business segments' total revenue, net of interest expense, on an FTE basis, and net income to the Consolidated Statement of Income, and total assets to the Consolidated Balance Sheet.

Results of Business Segments and All Other
At and for the three months ended March 31
Total Corporation (1)
Consumer Banking Global Wealth & Investment Management
(Dollars in millions) 2021 2020 2021 2020 2021 2020
Net interest income $ 10,308 $ 12,274 $ 5,920 $ 6,862 $ 1,331 $ 1,571
Noninterest income 12,624 10,637 2,149 2,267 3,640 3,365
Total revenue, net of interest expense 22,932 22,911 8,069 9,129 4,971 4,936
Provision for credit losses (1,860) 4,761 (617) 2,258 (65) 189
Noninterest expense 15,515 13,475 5,131 4,496 3,869 3,606
Income before income taxes 9,277 4,675 3,555 2,375 1,167 1,141
Income tax expense 1,227 665 871 582 286 280
Net income $ 8,050 $ 4,010 $ 2,684 $ 1,793 $ 881 $ 861
Period-end total assets $ 2,969,992 $ 2,619,954 $ 1,047,413 $ 837,522 $ 378,655 $ 323,867
Global Banking Global Markets All Other
2021 2020 2021 2020 2021 2020
Net interest income $ 1,980 $ 2,612 $ 990 $ 1,153 $ 87 $ 76
Noninterest income 2,653 1,988 5,208 4,073 (1,026) (1,056)
Total revenue, net of interest expense 4,633 4,600 6,198 5,226 (939) (980)
Provision for credit losses (1,126) 2,093 (5) 107 (47) 114
Noninterest expense 2,781 2,318 3,427 2,815 307 240
Income before income taxes 2,978 189 2,776 2,304 (1,199) (1,334)
Income tax expense 804 51 722 599 (1,456) (847)
Net income $ 2,174 $ 138 $ 2,054 $ 1,705 $ 257 $ (487)
Period-end total assets $ 594,235 $ 562,529 $ 745,681 $ 654,939 $ 204,008 $ 241,097

~~(1)There were no material intersegment revenues.~~


8795 Bank of America



Results of Business Segments and All Other

At and for the three months ended June 30	Total Corporation (1)			Consumer Banking		Global Wealth & Investment Management
(Dollars in millions)		2021		2020		2021		2020		2021		2020
Net interest income		$	10,343	$	10,976	$	5,973	$	5,991	$	1,354	$	1,378
Noninterest income		11,233		11,478		2,213		1,861		3,711		3,047
Total revenue, net of interest expense		21,576		22,454		8,186		7,852		5,065		4,425
Provision for credit losses		(1,621)		5,117		(697)		3,024		(62)		136
Noninterest expense		15,045		13,410		4,859		4,735		3,814		3,464
Income before income taxes		8,152		3,927		4,024		93		1,313		825
Income tax expense		(1,072)		394		986		23		322		202
Net income		$	9,224	$	3,533	$	3,038	$	70	$	991	$	623
Period-end total assets		$	3,029,894	$	2,741,688	$	1,063,650	$	929,193	$	378,220	$	334,190

	Global Banking			Global Markets		All Other
		2021		2020		2021		2020		2021		2020
Net interest income		$	1,984	$	2,363	$	991	$	1,297	$	41	$	(53)
Noninterest income		3,105		2,728		3,729		4,053		(1,525)		(211)
Total revenue, net of interest expense		5,089		5,091		4,720		5,350		(1,484)		(264)
Provision for credit losses		(831)		1,873		22		105		(53)		(21)
Noninterest expense		2,599		2,222		3,471		2,684		302		305
Income before income taxes		3,321		996		1,227		2,561		(1,733)		(548)
Income tax expense		897		269		319		666		(3,596)		(766)
Net income		$	2,424	$	727	$	908	$	1,895	$	1,863	$	218
Period-end total assets		$	607,969	$	586,078	$	773,714	$	652,068	$	206,341	$	240,159

(1)There were no material intersegment revenues.



Results of Business Segments and All Other

At and for the six months ended June 30	Total Corporation (1)					Consumer Banking			Global Wealth & Investment Management
(Dollars in millions)		2021		2020			2021		2020		2021		2020
Net interest income		$	20,651	$	23,250		$	11,893	$	12,853	$	2,685	$	2,949
Noninterest income		23,857		22,115			4,362		4,127		7,351		6,412
Total revenue, net of interest expense		44,508		45,365			16,255		16,980		10,036		9,361
Provision for credit losses		(3,481)		9,878			(1,314)		5,282		(127)		325
Noninterest expense		30,560		26,885			9,990		9,230		7,682		7,064
Income before income taxes		17,429		8,602			7,579		2,468		2,481		1,972
Income tax expense		155		1,059			1,857		605		608		483
Net income		$	17,274	$	7,543		$	5,722	$	1,863	$	1,873	$	1,489
Period-end total assets		$	3,029,894	$	2,741,688		$	1,063,650	$	929,193	$	378,220	$	334,190

	Global Banking					Global Markets			All Other
		2021		2020			2021		2020		2021		2020
Net interest income		$	3,964	$	4,975		$	1,981	$	2,449	$	128	$	24
Noninterest income		5,758		4,716			8,937		8,126		(2,551)		(1,266)
Total revenue, net of interest expense		9,722		9,691			10,918		10,575		(2,423)		(1,242)
Provision for credit losses		(1,957)		3,966			17		212		(100)		93
Noninterest expense		5,380		4,540			6,898		5,498		610		553
Income before income taxes		6,299		1,185			4,003		4,865		(2,933)		(1,888)
Income tax expense		1,701		320			1,041		1,265		(5,052)		(1,614)
Net income		$	4,598	$	865		$	2,962	$	3,600	$	2,119	$	(274)
Period-end total assets		$	607,969	$	586,078		$	773,714	$	652,068	$	206,341	$	240,159

(1)There were no material intersegment revenues


						Bank of America96

The ~~table~~tables below ~~presents~~present noninterest income and the associated components for the three and six months ended ~~March 31,~~June 30, 2021 and 2020 for each business segment, All Other and the total Corporation. For more information, see Note 2 – Net Interest Income and Noninterest Income.


Noninterest Income by Business Segment and All Other	Noninterest Income by Business Segment and All Other																Noninterest Income by Business Segment and All Other

		Total Corporation				Consumer Banking			Global Wealth & Investment Management		Total Corporation							Consumer Banking				Global Wealth & Investment Management
		Three Months Ended March 31												Three Months Ended June 30
(Dollars in millions)	(Dollars in millions)	2021		2020			2021		2020			2021			2020				(Dollars in millions)	2021		2020		2021		2020		2021		2020
Fees and commissions:	Fees and commissions:																		Fees and commissions:
Card income	Card income																		Card income
Interchange fees	Interchange fees	$	1,067	$	792		$	835	$	644		$	10		$	8			Interchange fees	$	1,210	$	830	$	945	$	645	$	12	$	8
Other card income	Other card income	368		480			354		466			9			9				Other card income	376		419		367		408		9		10
Total card income	Total card income	1,435		1,272			1,189		1,110			19			17				Total card income	1,586		1,249		1,312		1,053		21		18
Service charges	Service charges																		Service charges
Deposit-related fees	Deposit-related fees	1,495		1,627			831		995			18			17				Deposit-related fees	1,557		1,299		851		706		18		14
Lending-related fees	Lending-related fees	297		276			0		0			0			0				Lending-related fees	317		263		0		0		0		0
Total service charges	Total service charges	1,792		1,903			831		995			18			17				Total service charges	1,874		1,562		851		706		18		14
Investment and brokerage services	Investment and brokerage services																		Investment and brokerage services
Asset management fees	Asset management fees	3,002		2,682			41		38			2,961			2,652				Asset management fees	3,156		2,483		45		34		3,110		2,454
Brokerage fees	Brokerage fees	1,061		1,076			36		32			430			470				Brokerage fees	967		939		33		32		427		400
Total investment and brokerage services	Total investment and brokerage services	4,063		3,758			77		70			3,391			3,122				Total investment and brokerage services	4,123		3,422		78		66		3,537		2,854
Investment banking fees	Investment banking fees																		Investment banking fees
Underwriting income	Underwriting income	1,546		848			0		0			135			115				Underwriting income	1,314		1,523		0		0		88		84
Syndication fees	Syndication fees	300		271			0		0			0			0				Syndication fees	401		230		0		0		0		0
Financial advisory services	Financial advisory services	400		269			0		0			0			0				Financial advisory services	407		406		0		0		0		0
Total investment banking fees	Total investment banking fees	2,246		1,388			0		0			135			115				Total investment banking fees	2,122		2,159		0		0		88		84
Total fees and commissions	Total fees and commissions	9,536		8,321			2,097		2,175			3,563			3,271				Total fees and commissions	9,705		8,392		2,241		1,825		3,664		2,970
Market making and similar activities	Market making and similar activities	3,529		2,807			0		1			11			21				Market making and similar activities	1,826		2,487		0		1		11		18
Other income (loss)	Other income (loss)	(441)		(491)			52		91			66			73				Other income (loss)	(298)		599		(28)		35		36		59
Total noninterest income	Total noninterest income	$	12,624	$	10,637		$	2,149	$	2,267		$	3,640		$	3,365			Total noninterest income	$	11,233	$	11,478	$	2,213	$	1,861	$	3,711	$	3,047

		Global Banking				Global Markets			All Other (1)		Global Banking							Global Markets				All Other (1)
		Three Months Ended March 31												Three Months Ended June 30
		2021		2020			2021		2020			2021			2020					2021		2020		2021		2020		2021		2020
Fees and commissions:	Fees and commissions:																		Fees and commissions:
Card income	Card income																		Card income
Interchange fees	Interchange fees	$	146	$	119		$	76	$	21		$	0		$	0			Interchange fees	$	178	$	65	$	74	$	111	$	1	$	1
Other card income	Other card income	4		4			0		0			1			1				Other card income	2		3		0		0		(2)		(2)
Total card income	Total card income	150		123			76		21			1			1				Total card income	180		68		74		111		(1)		(1)
Service charges	Service charges																		Service charges
Deposit-related fees	Deposit-related fees	602		572			42		35			2			8				Deposit-related fees	641		524		45		45		2		10
Lending-related fees	Lending-related fees	245		224			52		52			0			0				Lending-related fees	259		214		58		50		0		(1)
Total service charges	Total service charges	847		796			94		87			2			8				Total service charges	900		738		103		95		2		9
Investment and brokerage services	Investment and brokerage services																		Investment and brokerage services
Asset management fees	Asset management fees	0		0			0		0			0			(8)				Asset management fees	0		0		0		0		1		(5)
Brokerage fees	Brokerage fees	41		7			560		567			(6)			0				Brokerage fees	40		23		473		480		(6)		4
Total investment and brokerage services	Total investment and brokerage services	41		7			560		567			(6)			(8)				Total investment and brokerage services	40		23		473		480		(5)		(1)
Investment banking fees	Investment banking fees																		Investment banking fees
Underwriting income	Underwriting income	654		368			799		455			(42)			(90)				Underwriting income	587		703		737		781		(98)		(45)
Syndication fees	Syndication fees	161		146			139		125			0			0				Syndication fees	210		133		191		97		0		0
Financial advisory services	Financial advisory services	357		247			43		22			0			0				Financial advisory services	376		345		31		61		0		0
Total investment banking fees	Total investment banking fees	1,172		761			981		602			(42)			(90)				Total investment banking fees	1,173		1,181		959		939		(98)		(45)
Total fees and commissions	Total fees and commissions	2,210		1,687			1,711		1,277			(45)			(89)				Total fees and commissions	2,293		2,010		1,609		1,625		(102)		(38)
Market making and similar activities	Market making and similar activities	31		87			3,470		2,973			17			(275)				Market making and similar activities	28		(15)		1,964		2,360		(177)		123
Other income (loss)	Other income (loss)	412		214			27		(177)			(998)			(692)				Other income (loss)	784		733		156		68		(1,246)		(296)
Total noninterest income	Total noninterest income	$	2,653	$	1,988		$	5,208	$	4,073		$	(1,026)		$	(1,056)			Total noninterest income	$	3,105	$	2,728	$	3,729	$	4,053	$	(1,525)	$	(211)

(1)All Other includes eliminations of intercompany transactions.


97Bank of America



Noninterest Income by Business Segment and All Other

	Total Corporation				Consumer Banking				Global Wealth & Investment Management
	Six Months Ended June 30
(Dollars in millions)	2021		2020		2021		2020		2021		2020
Fees and commissions:
Card income
Interchange fees	$	2,277	$	1,622	$	1,781	$	1,289	$	22	$	16
Other card income	744		899		720		874		18		19
Total card income	3,021		2,521		2,501		2,163		40		35
Service charges
Deposit-related fees	3,052		2,926		1,682		1,701		36		32
Lending-related fees	614		539		0		0		0		0
Total service charges	3,666		3,465		1,682		1,701		36		32
Investment and brokerage services
Asset management fees	6,158		5,165		87		72		6,071		5,106
Brokerage fees	2,028		2,015		68		65		857		870
Total investment and brokerage services	8,186		7,180		155		137		6,928		5,976
Investment banking fees
Underwriting income	2,860		2,371		0		0		223		199
Syndication fees	701		501		0		0		0		0
Financial advisory services	807		675		0		0		0		0
Total investment banking fees	4,368		3,547		0		0		223		199
Total fees and commissions	19,241		16,713		4,338		4,001		7,227		6,242
Market making and similar activities	5,355		5,294		0		2		22		39
Other income (loss)	(739)		108		24		124		102		131
Total noninterest income	$	23,857	$	22,115	$	4,362	$	4,127	$	7,351	$	6,412


	Global Banking				Global Markets				All Other (1)
	Six Months Ended June 30
	2021		2020		2021		2020		2021		2020
Fees and commissions:
Card income
Interchange fees	$	324	$	184	$	150	$	132	$	0	$	1
Other card income	6		7		0		0		0		(1)
Total card income	330		191		150		132		0		0
Service charges
Deposit-related fees	1,243		1,095		87		80		4		18
Lending-related fees	504		438		110		102		0		(1)
Total service charges	1,747		1,533		197		182		4		17
Investment and brokerage services
Asset management fees	0		0		0		0		0		(13)
Brokerage fees	81		31		1,033		1,048		(11)		1
Total investment and brokerage services	81		31		1,033		1,048		(11)		(12)
Investment banking fees
Underwriting income	1,241		1,071		1,536		1,237		(140)		(136)
Syndication fees	371		279		330		222		0		0
Financial advisory services	733		592		74		83		0		0
Total investment banking fees	2,345		1,942		1,940		1,542		(140)		(136)
Total fees and commissions	4,503		3,697		3,320		2,904		(147)		(131)
Market making and similar activities	59		72		5,434		5,334		(160)		(153)
Other income (loss)	1,196		947		183		(112)		(2,244)		(982)
Total noninterest income	$	5,758	$	4,716	$	8,937	$	8,126	$	(2,551)	$	(1,266)

(1)All Other includes eliminations of intercompany transactions.


						Bank of America 8898

Business Segment Reconciliations
Three Months Ended March 31
(Dollars in millions) 2021 2020
Segments’ total revenue, net of interest expense $ 23,871 $ 23,891
Adjustments (1):

Asset and liability management activities 109 (85)
Liquidating businesses, eliminations and other (1,048) (895)
FTE basis adjustment (111) (144)
Consolidated revenue, net of interest expense $ 22,821 $ 22,767
Segments’ total net income 7,793 4,497
Adjustments, net-of-tax (1):

Asset and liability management activities 83 (77)
Liquidating businesses, eliminations and other 174 (410)
Consolidated net income $ 8,050 $ 4,010
March 31
2021 2020
Segments’ total assets $ 2,765,984 $ 2,378,857
Adjustments (1):

Asset and liability management activities, including securities portfolio 1,226,930 840,187
Elimination of segment asset allocations to match liabilities (1,086,268) (665,802)
Other 63,346 66,712
Consolidated total assets $ 2,969,992 $ 2,619,954
The table below presents a reconciliation of the 4 business segments' total revenue, net of interest expense, on an FTE basis, and net income to the Consolidated Statement of Income, and total assets to the Consolidated Balance Sheet.



Business Segment Reconciliations

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	2021		2020		2021		2020
Segments’ total revenue, net of interest expense	$	23,060	$	22,718	$	46,931	$	46,607
Adjustments (1):
Asset and liability management activities	(154)		677		(44)		592
Liquidating businesses, eliminations and other	(1,330)		(941)		(2,379)		(1,834)
FTE basis adjustment	(110)		(128)		(221)		(272)
Consolidated revenue, net of interest expense	$	21,466	$	22,326	$	44,287	$	45,093
Segments’ total net income	7,361		3,315		15,155		7,817
Adjustments, net-of-tax (1):
Asset and liability management activities	(113)		521		(30)		444
Liquidating businesses, eliminations and other	1,976		(303)		2,149		(718)
Consolidated net income	$	9,224	$	3,533	$	17,274	$	7,543

					June 30
					2021		2020
Segments’ total assets					$	2,823,553	$	2,501,529
Adjustments (1):
Asset and liability management activities, including securities portfolio					1,250,633		1,002,652
Elimination of segment asset allocations to match liabilities					(1,111,500)		(829,129)

Other					67,208		66,636
Consolidated total assets					$	3,029,894	$	2,741,688

(1)Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.


8999 Bank of America

Glossary

Alt-A Mortgage – A type of U.S. mortgage that is considered riskier than A-paper, or “prime,” and less risky than “subprime,” the riskiest category. Typically, Alt-A mortgages are characterized by borrowers with less than full documentation, lower credit scores and higher LTVs.

Assets Under Management (AUM) – The total market value of assets under the investment advisory and/or discretion of GWIM which generate asset management fees based on a percentage of the assets’ market values. AUM reflects assets that are generally managed for institutional, high net worth and retail clients, and are distributed through various investment products including mutual funds, other commingled vehicles and separate accounts.

Banking Book – All on- and off-balance sheet financial instruments of the Corporation except for those positions that are held for trading purposes.

Brokerage and Other Assets – Non-discretionary client assets which are held in brokerage accounts or held for safekeeping.

Committed Credit Exposure – Any funded portion of a facility plus the unfunded portion of a facility on which the lender is legally bound to advance funds during a specified period under prescribed conditions.

Credit Derivatives – Contractual agreements that provide protection against a specified credit event on one or more referenced obligations.

Credit Valuation Adjustment (CVA) – A portfolio adjustment required to properly reflect the counterparty credit risk exposure as part of the fair value of derivative instruments.

Debit Valuation Adjustment (DVA) – A portfolio adjustment required to properly reflect the Corporation’s own credit risk exposure as part of the fair value of derivative instruments and/or structured liabilities.

Funding Valuation Adjustment (FVA) – A portfolio adjustment required to include funding costs on uncollateralized derivatives and derivatives where the Corporation is not permitted to use the collateral it receives.

Interest Rate Lock Commitment (IRLC) – Commitment with a loan applicant in which the loan terms are guaranteed for a designated period of time subject to credit approval.

Letter of Credit – A document issued on behalf of a customer to a third party promising to pay the third party upon presentation of specified documents. A letter of credit effectively substitutes the issuer’s credit for that of the customer.

Loan-to-value (LTV) – A commonly used credit quality metric. LTV is calculated as the outstanding carrying value of the loan divided by the estimated value of the property securing the loan.

Margin Receivable – An extension of credit secured by eligible securities in certain brokerage accounts.

Matched Book – Repurchase and resale agreements or securities borrowed and loaned transactions where the overall asset and liability position is similar in size and/or maturity. Generally, these are entered into to accommodate customers where the Corporation earns the interest rate spread.

Mortgage Servicing Rights (MSR) – The right to service a mortgage loan when the underlying loan is sold or securitized. Servicing includes collections for principal, interest and escrow payments from borrowers and accounting for and remitting principal and interest payments to investors.

Nonperforming Loans and Leases – Includes loans and leases that have been placed on nonaccrual status, including nonaccruing loans whose contractual terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

Prompt Corrective Action (PCA) – A framework established by the U.S. banking regulators requiring banks to maintain certain levels of regulatory capital ratios, comprised of five categories of capitalization: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.” Insured depository institutions that fail to meet certain of these capital levels are subject to increasingly strict limits on their activities, including their ability to make capital distributions, pay management compensation, grow assets and take other actions.

Subprime Loans – Although a standard industry definition for subprime loans (including subprime mortgage loans) does not exist, the Corporation defines subprime loans as specific product offerings for higher risk borrowers.

Troubled Debt Restructurings (TDRs) – Loans whose contractual terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties. Certain consumer loans for which a binding offer to restructure has been extended are also classified as TDRs.

Value-at-Risk (VaR) – VaR is a model that simulates the value of a portfolio under a range of hypothetical scenarios in order to generate a distribution of potential gains and losses. VaR represents the loss the portfolio is expected to experience with a given confidence level based on historical data. A VaR model is an effective tool in estimating ranges of potential gains and losses on our trading portfolios.


						Bank of America 90100

Key Metrics

Active Digital Banking Users – Mobile and/or online users with activity at period end.

Active Mobile Banking Users – Mobile users with activity at period end.

Book Value – Ending common ~~shareholders'~~shareholders’ equity divided by ending common shares outstanding.

Deposit Spread – Annualized net interest income divided by average deposits.

Efficiency Ratio – Noninterest expense divided by total revenue, net of interest expense.

Gross Interest Yield – Effective annual percentage rate divided by average loans.

Net Interest Yield – Net interest income divided by average total interest-earning assets.

Operating Margin – Income before income taxes divided by total revenue, net of interest expense.

~~Risk-adjusted Margi~~n ~~– Difference between total revenue, net of interest expense, and net credit losses divided by average loans.~~

Return on Average Allocated Capital – Adjusted net income divided by allocated capital.

Return on Average Assets – Net income divided by total average assets.

Return on Average Common ~~Shareholders'~~Shareholders’ Equity – Net income applicable to common shareholders divided by average common ~~shareholders'~~shareholders’ equity.

Return on Average ~~Shareholders'~~Shareholders’ Equity – Net income divided by average ~~shareholders'~~shareholders’ equity.

Risk-adjusted Margin – Difference between total revenue, net of interest expense, and net credit losses divided by average loans.

Acronyms


ABS			Asset-backed securities
AFS			Available-for-sale

ALM			Asset and liability management
ARR			Alternative reference rates
AUM			Assets under management


BANA			Bank of America, National Association
BHC			Bank holding company

BofAS			BofA Securities, Inc.
BofASE			BofA Securities Europe SA
bps			basis points


CCAR			Comprehensive Capital Analysis and Review
CDO			Collateralized debt obligation

CECL			Current expected credit losses
CET1			Common equity tier 1

CFTC			Commodity Futures Trading Commission


CLTV			Combined loan-to-value

CVA			Credit valuation adjustment

DVA			Debit valuation adjustment



EPS			Earnings per common share







ESG			Environmental, social and governance
FHA			Federal Housing Administration

FHLB			Federal Home Loan Bank
FHLMC			Freddie Mac
FICC			Fixed income, currencies and commodities
FICO			Fair Isaac Corporation (credit score)

FNMA			Fannie Mae
FTE			Fully taxable-equivalent
FVA			Funding valuation adjustment
GAAP			Accounting principles generally accepted in the United States of America

GLS			Global Liquidity Sources
GNMA			Government National Mortgage Association
GSE			Government-sponsored enterprise
G-SIB			Global systemically important bank
GWIM			Global Wealth & Investment Management











HELOC			Home equity line of credit
HQLA			High Quality Liquid Assets
HTM			Held-to-maturity
IBOR			Interbank Offered Rates

IRLC			Interest rate lock commitment

ISDA			International Swaps and Derivatives Association, Inc.
LCR			Liquidity Coverage Ratio

LHFS			Loans held-for-sale
LIBOR			London Interbank Offered Rate
LTV			Loan-to-value

MBS			Mortgage-backed securities
MD&A			Management’s Discussion and Analysis of Financial Condition and Results of Operations

MLGWM			Merrill Lynch Global Wealth Management
MLI			Merrill Lynch International
MLPCC			Merrill Lynch Professional Clearing Corp
MLPF&S			Merrill Lynch, Pierce, Fenner & Smith Incorporated

MSA			Metropolitan Statistical Area
MSR			Mortgage servicing right




OCI			Other comprehensive income
OREO			Other real estate owned


PCA			Prompt Corrective Action



PPP			Paycheck Protection Program


RWA			~~Risk -weighted~~Risk-weighted assets

SBA			Small Business Administration
SBLC			Standby letter of credit

SCB			Stress capital buffer

SEC			Securities and Exchange Commission
SLR			Supplementary leverage ratio


TDR			Troubled debt restructurings
TLAC			Total loss-absorbing capacity


VaR			Value-at-Risk
VIE			Variable interest entity


91101 Bank of America

Part II. Other Information

Bank of America Corporation and Subsidiaries

Item 1. Legal Proceedings

See Litigation and Regulatory Matters in Note 10 – Commitments and Contingencies to the Consolidated Financial Statements, which is incorporated by reference in this Item 1, for litigation and regulatory disclosure that supplements the disclosure in Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part 1, Item 1A. Risk Factors of the Corporation’s 2020 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The table below presents share repurchase activity for the three months ended ~~March 31,~~June 30, 2021. The primary source of funds for cash distributions by the Corporation to its shareholders is dividends received from its banking subsidiaries. Each of the banking subsidiaries is subject to various regulatory policies and requirements relating to the payment of dividends, including requirements to maintain capital above regulatory minimums. All of the Corporation’s preferred stock outstanding has preference over the Corporation’s common stock with respect to payment of dividends.

(Dollars in millions, except per share information; shares in thousands)
Total Common Shares Repurchased (1,2)
Weighted-Average Per Share Price Total Shares
Purchased as
Part of Publicly
Announced Programs
Remaining Buyback
Authority Amounts (2,3)
January 1 - 31, 2021 14,254 $ 31.56 14,237 $ 3,021
February 1 - 28, 2021 68,348 32.69 45,777 1,531
March 1 - 31, 2021 42,547 37.20 41,089 —
Three months ended March 31, 2021 125,149 34.09 101,103



(Dollars in millions, except per share information; shares in thousands)	Total Common Shares Repurchased (1,2)	Weighted-Average Per Share Price		Total Shares Purchased as Part of Publicly Announced Programs (2)	Remaining Buyback Authority Amounts (3)
April 1 - 30, 2021	24,756	$	38.99	24,747	$	24,102
May 1 - 31, 2021	35,799	41.76		35,798	22,703
June 1 - 30, 2021	42,129	41.52		42,128	21,067
Three months ended June 30, 2021	102,684	40.99		102,673

(1)Includes ~~24 million~~10 thousand shares of the Corporation’s common stock acquired by the Corporation in connection with satisfaction of tax withholding obligations on vested restricted stock or restricted stock units and certain forfeitures and terminations of employment-related awards and for potential re-issuance to certain employees under equity incentive plans.

(2)On January 19, 2021, the Corporation announced that the Board of Directors (Board) has authorized the repurchase of $2.9 billion in common stock through March 31, 2021, plus repurchases to offset shares awarded under equity-based compensation plans during the same period. During the three months ended March 31, 2021, the Corporation repurchased 101 million shares, or $3.5 billion, of its common stock, including to offset shares awarded under equity-based compensation plans. For more information, see Capital Management - CCAR and Capital Planning in the MD&A on page 18 and ~~Note 11 – Shareholders’ Equity~~ ~~to the Consolidated Financial Statements.~~

~~(3)~~On April 15, 2021, the Corporation announced the Board has authorized the repurchase of up to $25 billion of common stock over time. The Board also authorized repurchases to offset shares awarded under equity-based compensation plans. During the three months ended June 30, 2021, the Corporation repurchased 103 million shares, or $4.2 billion, of its common stock, including to offset shares awarded under the equity-based compensation plans. For more information, see Capital Management - CCAR and Capital Planning in the MD&A on page 1822 and Note 11 – Shareholders’ Equity to the Consolidated Financial Statements.

(3)Excludes repurchases to offset shares awarded under equity-based compensation plans.

The Corporation did not have any unregistered sales of equity securities during the three months ended ~~March 31,~~June 30, 2021.


						Bank of America 92102

Item 6. Exhibits


Exhibit No.	Exhibit No.	Description	Notes	Form	Exhibit	Filing Date	File No.	Exhibit No.	Description	Notes	Form	Exhibit	Filing Date	File No.

3.1	3.1	Restated Certificate of Incorporation, as amended and in effect on the date hereof		10-K	3.1	2/24/21	1-6523	3.1	Restated Certificate of Incorporation, as amended and in effect on the date hereof		10-K	3.1	2/24/21	1-6523

3.2	3.2	Amended and Restated Bylaws of the Corporation as in effect on the date hereof		10-Q	3.2	10/30/20	1-6523	3.2	Amended and Restated Bylaws of the Corporation as in effect on the date hereof		10-Q	3.2	10/30/20	1-6523

10.1	10.1	Form of Time-Based Restricted Stock Units Award Agreement (February 2021) between the Corporation and certain executive officers of the Corporation, including certain Named Executive Officers	1,2					10.1	Bank of America Corporation Equity Plan (formerly known as the Key Employee Equity Plan), as amended and restated effective April 20, 2021	1	8-K	10.1	4/22/21	1-6523

10.2		Form of Performance Restricted Stock Units Award Agreement (February 2021) between the Corporation and certain executive officers of the Corporation, including certain Named Executive Officers	1,2

22	22	Subsidiary Issuers of Guaranteed Securities		10-K	22	2/24/21	1-6523	22	Subsidiary Issuers of Guaranteed Securities		10-K	22	2/24/21	1-6523

31.1	31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	1					31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	2

31.2	31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	1					31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	2

32.1	32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	1					32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	2

32.2	32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	1					32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	2

101.INS	101.INS	Inline XBRL Instance Document	3					101.INS	Inline XBRL Instance Document	3

101.SCH	101.SCH	Inline XBRL Taxonomy Extension Schema Document	1					101.SCH	Inline XBRL Taxonomy Extension Schema Document	2

101.CAL	101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	1					101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	2

101.LAB	101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	1					101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	2

101.PRE	101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	1					101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	2

101.DEF	101.DEF	Inline XBRL Taxonomy Extension Definitions Linkbase Document	1					101.DEF	Inline XBRL Taxonomy Extension Definitions Linkbase Document	2

104	104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)						104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1)~~Filed herewith.~~

~~(2)~~ Exhibit is a management contract or compensatory plan or arrangement.

(2) Filed herewith.

(3) The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Bank of America Corporation

Registrant

Date:

~~April 29,~~July 30, 2021

/s/ Rudolf A. Bless

Rudolf A. Bless
Chief Accounting Officer


93103 Bank of America




Table 5	Selected Quarterly Financial Data

		2021 Quarter			2020 Quarters
(In millions, except per share information)		First			Fourth			Third			Second			First
Income statement
Net interest income		$	10,197		$	10,253		$	10,129		$	10,848		$	12,130
Noninterest income		12,624			9,846			10,207			11,478			10,637
Total revenue, net of interest expense		22,821			20,099			20,336			22,326			22,767
Provision for credit losses		(1,860)			53			1,389			5,117			4,761
Noninterest expense		15,515			13,927			14,401			13,410			13,475
Income before income taxes		9,166			6,119			4,546			3,799			4,531
Income tax expense		1,116			649			(335)			266			521
Net income		8,050			5,470			4,881			3,533			4,010
Net income applicable to common shareholders		7,560			5,208			4,440			3,284			3,541
Average common shares issued and outstanding		8,700.1			8,724.9			8,732.9			8,739.9			8,815.6
Average diluted common shares issued and outstanding		8,755.6			8,785.0			8,777.5			8,768.1			8,862.7
Performance ratios
Return on average assets (1)		1.13		%	0.78		%	0.71		%	0.53		%	0.65		%
Four-quarter trailing return on average assets (2)		0.79			0.67			0.75			0.81			0.99
Return on average common shareholders’ equity (1)		12.28			8.39			7.24			5.44			5.91
Return on average tangible common shareholders’ equity (3)		17.08			11.73			10.16			7.63			8.32
Return on average shareholders’ equity (1)		11.91			8.03			7.26			5.34			6.10
Return on average tangible shareholders’ equity (3)		16.01			10.84			9.84			7.23			8.29
Total ending equity to total ending assets		9.23			9.68			9.82			9.69			10.11
Total average equity to total average assets		9.52			9.71			9.76			9.85			10.60
Dividend payout		20.68			30.11			35.36			47.87			44.57
Per common share data
Earnings		$	0.87		$	0.60		$	0.51		$	0.38		$	0.40
Diluted earnings		0.86			0.59			0.51			0.37			0.40
Dividends paid		0.18			0.18			0.18			0.18			0.18
Book value (1)		29.07			28.72			28.33			27.96			27.84
Tangible book value (3)		20.90			20.60			20.23			19.90			19.79




Market capitalization		$	332,337		$	262,206		$	208,656		$	205,772		$	184,181
Average balance sheet
Total loans and leases		$	907,723		$	934,798		$	974,018		$	1,031,387		$	990,283
Total assets		2,879,221			2,791,874			2,739,684			2,704,186			2,494,928
Total deposits		1,805,747			1,737,139			1,695,488			1,658,197			1,439,336
Long-term debt		220,836			225,423			224,254			221,167			210,816
Common shareholders’ equity		249,648			246,840			243,896			242,889			241,078
Total shareholders’ equity		274,047			271,020			267,323			266,316			264,534
Asset quality
Allowance for credit losses (4)		$	17,997		$	20,680		$	21,506		$	21,091		$	17,126
Nonperforming loans, leases and foreclosed properties (5)		5,299			5,116			4,730			4,611			4,331
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)		1.80		%	2.04		%	2.07		%	1.96		%	1.51		%
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)		313			380			431			441			389
Net charge-offs		$	823		$	881		$	972		$	1,146		$	1,122
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)		0.37		%	0.38		%	0.40		%	0.45		%	0.46		%







Capital ratios at period end (6)

Common equity tier 1 capital		11.8		%	11.9		%	11.9		%	11.4		%	10.8		%

Tier 1 capital		13.3			13.5			13.5			12.9			12.3
Total capital		15.6			16.1			16.1			14.8			14.6
Tier 1 leverage		7.2			7.4			7.4			7.4			7.9
Supplementary leverage ratio		7.0			7.2			6.9			7.1			6.4
Tangible equity (3)		7.0			7.4			7.4			7.3			7.7
Tangible common equity (3)		6.2			6.5			6.6			6.5			6.7
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets		26.8		%	27.4		%	26.9		%	26.0		%	24.6		%
Total loss-absorbing capacity to supplementary leverage exposure		14.1			14.5			13.7			14.2			12.8
Eligible long-term debt to risk-weighted assets		13.0			13.3			12.9			12.4			11.6
Eligible long-term debt to supplementary leverage exposure		6.8			7.1			6.6			6.7			6.1



Credit Card and Other Consumer – TDRs by Program Type (1)




	TDRs Entered into During the Three Months Ended March 31
(Dollars in millions)	2021		2020
Internal programs	$	74	$	74
External programs	17		27
Other	4		9
Total	$	95	$	110



Results of Business Segments and All Other

At and for the three months ended March 31	Total Corporation (1)			Consumer Banking		Global Wealth & Investment Management
(Dollars in millions)		2021		2020		2021		2020		2021		2020
Net interest income		$	10,308	$	12,274	$	5,920	$	6,862	$	1,331	$	1,571
Noninterest income		12,624		10,637		2,149		2,267		3,640		3,365
Total revenue, net of interest expense		22,932		22,911		8,069		9,129		4,971		4,936
Provision for credit losses		(1,860)		4,761		(617)		2,258		(65)		189
Noninterest expense		15,515		13,475		5,131		4,496		3,869		3,606
Income before income taxes		9,277		4,675		3,555		2,375		1,167		1,141
Income tax expense		1,227		665		871		582		286		280
Net income		$	8,050	$	4,010	$	2,684	$	1,793	$	881	$	861
Period-end total assets		$	2,969,992	$	2,619,954	$	1,047,413	$	837,522	$	378,655	$	323,867

	Global Banking			Global Markets		All Other
		2021		2020		2021		2020		2021		2020
Net interest income		$	1,980	$	2,612	$	990	$	1,153	$	87	$	76
Noninterest income		2,653		1,988		5,208		4,073		(1,026)		(1,056)
Total revenue, net of interest expense		4,633		4,600		6,198		5,226		(939)		(980)
Provision for credit losses		(1,126)		2,093		(5)		107		(47)		114
Noninterest expense		2,781		2,318		3,427		2,815		307		240
Income before income taxes		2,978		189		2,776		2,304		(1,199)		(1,334)
Income tax expense		804		51		722		599		(1,456)		(847)
Net income		$	2,174	$	138	$	2,054	$	1,705	$	257	$	(487)
Period-end total assets		$	594,235	$	562,529	$	745,681	$	654,939	$	204,008	$	241,097