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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,~~September 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
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrQ	New York Stock Exchange
4.250% Non-Cumulative Preferred Stock, Series QQ

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~~October 28, 2021, there were ~~8,569,317,603~~8,184,084,032 shares of Bank of America Corporation Common Stock outstanding.


						~~Bank of America~~2

Bank of America Corporation and Subsidiaries

~~March 31,~~September 30, 2021

Form 10-Q

INDEX

Part I. Financial Information


Item 1. Financial Statements						Page
Consolidated Statement of Income						4449
Consolidated Statement of Comprehensive Income						4449
Consolidated Balance Sheet						4550
Consolidated Statement of Changes in Shareholders’ Equity						4651
Consolidated Statement of Cash Flows						4752
Notes to Consolidated Financial Statements						4853
Note 1 – Summary of Significant Accounting Principles						4853
Note 2 – Net Interest Income and Noninterest Income						4853
Note 3 – Derivatives						4955
Note 4 – Securities						5662
Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses						5965

Note 6 – Securitizations and Other Variable Interest Entities						6976
Note 7 – Goodwill and Intangible Assets						7380
Note 8 – Leases						7380
Note 9 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash						7481
Note 10 – Commitments and Contingencies						7583
Note 11 – Shareholders’ Equity						7886
Note 12 – Accumulated Other Comprehensive Income (Loss)						7886
Note 13 – Earnings Per Common Share						7987

Note 14 – Fair Value Measurements						7987
Note 15 – Fair Value Option						8594
Note 16 – Fair Value of Financial Instruments						8696
Note 17 – Business Segment Information						8796
Glossary						90101
Acronyms						91102



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						3741

Allowance for Credit Losses						3842
Market Risk Management						3943
Trading Risk Management						4044
Interest Rate Risk Management for the Banking Book						4146
Mortgage Banking Risk Management						4246



Climate Risk Management						4347
Complex Accounting Estimates						4347
Non-GAAP Reconciliations						4348

Item 3. Quantitative and Qualitative Disclosures about Market Risk						4348
Item 4. Controls and Procedures						4348


1 Bank of America

Part II. Other Information


Item 1. Legal Proceedings						92103
Item 1A. Risk Factors						92103
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						92103
Item 5 . Other Information						103
Item 6. Exhibits						93104
Signature						93104

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 and inflationary 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;~~uncertainties, including the impact of supply chain disruptions and inflationary pressures on the economic recovery; the Corporation’s concentration of ~~credit~~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 ability to achieve environmental, social and governance goals and commitments; 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

Throughout the MD&A, the Corporation uses certain acronyms and abbreviations which are defined in the Glossary.

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,~~September 30, 2021, the Corporation had ~~$3.0~~$3.1 trillion in assets and a headcount of approximately ~~212,000~~209,000 employees.

As of ~~March 31,~~September 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~~4,200 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. Notwithstanding the foregoing, the information contained on our website as referenced in this paragraph is not incorporated by reference into this Quarterly Report on Form 10-Q.

Recent Developments

Capital Management

~~On March 19,~~In June 2021, the Board of Governors of the Federal Reserve System (Federal Reserve)~~, the Federal Deposit Insurance Corporation (FDIC),~~ notified BHCs of their 2021 Comprehensive Capital Analysis and the Office of the Comptroller of the Currency (OCC, and together with the Federal Reserve and the FDIC, the U.S. banking regulators) announced that the temporary change to the supplementary leverage 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, 2021, the Corporation’s SLR was 7.0 percent. Excluding the temporary relief, the SLR would have been approximately 6.1 percent,Review (CCAR) stress test results, 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’sincluded a preliminary stress capital buffer (SCB) ~~framework.~~that was finalized in August 2021. Based on our results, we are

subject to a 2.5 percent SCB effective October 1, 2021 through September 30, 2022, unchanged from the prior level. Our minimum Basel 3 Common equity tier 1 (CET1) capital ratio requirement also remained unchanged at 9.5 percent.

On ~~April 15,~~October 20, 2021, the Corporation announced that the Board ~~authorized~~of Directors (the Board) renewed the ~~repurchase of up to~~Corporation’s $25 billion of common stock ~~over time.~~repurchase program previously announced in April 2021. The Board’s authorization replaces the previous program. As with the April authorization, the Board also authorized common stock repurchases to offset shares awarded under the Corporation’s 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~~The Board also declared a quarterly cash common stock dividend of ~~$0.18~~$0.21 per share, payable on ~~June 25,~~December 31, 2021 to shareholders of record as of ~~June 4,~~December 3, 2021.

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

Organizational Changes

During the third quarter of 2021, we announced certain changes to the Corporation’s senior management team. For more information, see the Corporation’s Current Reports on Form 8-K filed on August 26, September 10, September 14 and October 20, 2021.

COVID-19 Pandemic

The ~~Corporation~~Coronavirus Disease 2019 (COVID-19) pandemic (the pandemic) has ~~been,~~impacted the Corporation and may continue to ~~be, impacted by the pandemic. In recent months, COVID-19 vaccination rates have been increasing and restrictive measures have eased in certain areas. However,~~do so, as uncertainty 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,~~continues to evolve, we ~~continue to~~regularly evaluate 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 ~~March 31,~~$8.4 billion and $15.7 billion at September 30, 2021 ~~we had approximately 278,000~~and June 30, 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. during the first quarter of 2021, the~~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 due to various factors, including ~~as the result of~~through the spread of ~~the~~ more easily communicable variants of COVID-19, ~~this macroeconomic environment~~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~~that all LIBOR benchmark settings currently published by the ICE Benchmark ~~Administration. The FCA confirmed that publication of all Euro and Swiss Franc LIBOR settings and most British Pound Sterling and Japanese Yen LIBOR settings~~Administration will cease 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~~,


3Bank of America

subject to the continued publication of certain non-representative LIBOR benchmark settings ~~will become non-representative immediately after June 30, 2023.~~based on a modified calculation (i.e., on a “synthetic” basis).

The Corporation continues to execute its enterprise-wide IBOR transition ~~program.~~program, and is particularly focused on contracts that reference certain IBORs that are expected to cease or become non-representative immediately after December 31, 2021. As of September 30, 2021, a significant majority of the Corporation’s notional contractual exposure to LIBOR currencies that will cease or become non-representative on December 31, 2021 has been remediated, and the Corporation is continuing to remediate the remaining exposure. For any residual exposure after the end of 2021, the Corporation is assessing and planning to leverage relevant contractual and statutory solutions to transition such exposure to ARRs, including the previously disclosed New York legislation adopted in April 2021 for contracts that are governed by New York law and have no fallback provisions or a fallback provision based on LIBOR. Additionally, as part of this transition program, ~~in March 2021,~~ the Corporation continues to decrease initiation of new U.S. dollar (USD) LIBOR-linked consumer and commercial loans that mature after June 30, 2023, subject to certain exceptions, and continues to increase the usage of ARRs in its USD consumer and commercial lending products and contracts. As previously disclosed, the Corporation has ceased ~~offering adjustable-rate mortgages linked~~initiation of GBP LIBOR-linked derivatives, subject to ~~LIBOR~~certain exceptions, and ~~began offering~~is prioritizing interdealer trading in the Secured Overnight Financing Rate (SOFR)~~-linked adjustable-rate consumer mortgages. On April 1, 2021,~~ rather than LIBOR for certain USD interest rate swaps in accordance with recommendations by the Corporation ceased the initiation of new GBP LIBOR-linked loans, bonds, securitizations and linear derivatives that expire after the end of 2021, subject to certain exceptions. Additionally, in April 2021, the Corporation issued a $1 billion six-month floating-rate bank note referencing 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.~~readiness, including the use of credit-sensitive rates.

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 September 30						Nine Months Ended September 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		$	11,094		$	10,129		$	31,524				$	33,107
Noninterest income	Noninterest income		12,624			10,637							Noninterest income		11,672			10,207			35,529					32,322
Total revenue, net of interest expense	Total revenue, net of interest expense		22,821			22,767							Total revenue, net of interest expense		22,766			20,336			67,053					65,429
Provision for credit losses	Provision for credit losses		(1,860)			4,761							Provision for credit losses		(624)			1,389			(4,105)					11,267
Noninterest expense	Noninterest expense		15,515			13,475							Noninterest expense		14,440			14,401			45,000					41,286
Income before income taxes	Income before income taxes		9,166			4,531							Income before income taxes		8,950			4,546			26,158					12,876
Income tax expense	Income tax expense		1,116			521							Income tax expense		1,259			(335)			1,193					452
Net income	Net income		8,050			4,010							Net income		7,691			4,881			24,965					12,424
Preferred stock dividends	Preferred stock dividends		490			469							Preferred stock dividends		431			441			1,181					1,159
Net income applicable to common shareholders	Net income applicable to common shareholders		$	7,560		$	3,541						Net income applicable to common shareholders		$	7,260		$	4,440		$	23,784				$	11,265

Per common share information	Per common share information												Per common share information
Earnings	Earnings		$	0.87		$	0.40						Earnings		$	0.86		$	0.51		$	2.77				$	1.29
Diluted earnings	Diluted earnings		0.86			0.40							Diluted earnings		0.85			0.51			2.75					1.28
Dividends paid	Dividends paid		0.18			0.18							Dividends paid		0.21			0.18			0.57					0.54
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)		0.99		%	0.71		%	1.12		%			0.63		%
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)		11.43			7.24			12.67					6.20
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)		15.85			10.16			17.61					8.71
Efficiency ratio (1)	Efficiency ratio (1)		67.98			59.19							Efficiency ratio (1)		63.43			70.81			67.11					63.10
			March 31 2021			December 31 2020															September 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										$	927,736				$	927,861
Total assets	Total assets		2,969,992			2,819,627							Total assets								3,085,446					2,819,627
Total deposits	Total deposits		1,884,938			1,795,480							Total deposits								1,964,804					1,795,480
Total liabilities	Total liabilities		2,695,992			2,546,703							Total liabilities								2,812,982					2,546,703
Total common shareholders’ equity	Total common shareholders’ equity		249,681			248,414							Total common shareholders’ equity								249,023					248,414
Total shareholders’ equity	Total shareholders’ equity		274,000			272,924							Total shareholders’ equity								272,464					272,924

(1)For definitions, see Key Metrics on page ~~91.~~102.

(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.~~48.

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 $7.7 billion and $25.0 billion, or $0.85 and $2.75 per diluted share, for the three and nine months ended September 30, 2021 compared to $4.9 billion and $12.4 billion, or $0.51 and $1.28 per diluted share, for the same periods in 2020. The increase in net income was due to improvement in the provision for credit losses and higher revenue, partially offset by higher noninterest expense.

Total assets increased $265.8 billion from December 31, 2020 to $3.1 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 Global Markets.

Total liabilities increased $266.3 billion from December 31, 2020 to $2.8 trillion primarily driven by an increase in deposits due to continued government stimulus measures as well as seasonally higher deposits, an increase in trading account liabilities resulting from higher levels of short positions in Global Markets and ~~and~~ higher federal funds purchased and securities loaned or sold under agreements to repurchase ~~driven by~~due to client activity in Global Markets.

Shareholders’ equity ~~increased $1.1 billion~~decreased $460 million 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 debt securities and derivatives, ~~and debt securities.~~partially offset by net income.

Net Interest Income

Net interest income increased $965 million to $11.1 billion, and decreased ~~$1.9~~$1.6 billion to ~~$10.2~~$31.5 billion for the three and nine months ended ~~March 31,~~September 30, 2021 compared to the same ~~period~~periods in 2020. Net interest yield on a fully taxable-equivalent (FTE) basis decreased 654 basis points (bps) to 1.68 ~~percent.~~percent, and 30 bps to 1.66 percent for the same periods. The increase in net interest income for the three-month period was primarily due to deposit growth and related investment of liquidity and the accelerated recognition of capitalized loan fees due to PPP loan forgiveness, partially offset by lower loan balances. The decrease in ~~net interest income~~the nine-month period 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.~~46.

Noninterest Income


Table 2	Table 2	Noninterest Income						Table 2	Noninterest Income

			Three Months Ended March 31
							Three Months Ended September 30					Nine Months Ended September 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		$	1,583		$	1,568	$	4,604	$	4,089
Service charges	Service charges		1,792		1,903			Service charges		1,928			1,817		5,594		5,282
Investment and brokerage services	Investment and brokerage services		4,063		3,758			Investment and brokerage services		4,236			3,623		12,422		10,803
Investment banking fees	Investment banking fees		2,246		1,388			Investment banking fees		2,168			1,769		6,536		5,316
Total fees and commissions	Total fees and commissions		9,536		8,321			Total fees and commissions		9,915			8,777		29,156		25,490
Market making and similar activities	Market making and similar activities		3,529		2,807			Market making and similar activities		2,005			1,689		7,360		6,983

Other income	Other income		(441)		(491)			Other income		(248)			(259)		(987)		(151)

Total noninterest income	Total noninterest income		$	12,624	$	10,637		Total noninterest income		$	11,672		$	10,207	$	35,529	$	32,322

Noninterest income increased $~~2.0~~1.5 billion to ~~$12.6~~$11.7 billion and increased $3.2 billion to $35.5 billion for the three and nine months ended ~~March 31,~~September 30, 2021 compared to the same ~~period~~periods in 2020. The following highlights the significant changes.

● Card income increased ~~$163~~$515 million for the nine-month period primarily driven by increased client activity and merchant services ~~and higher income related to the processing of unemployment insurance.~~revenue.

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

● Investment and brokerage services ~~income~~ increased ~~$305~~$613 million and $1.6 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~~$399 million and $1.2 billion primarily ~~driven by~~due to higher advisory and debt issuance fees and increased equity issuance ~~and advisory fees.~~fees in the nine-month period.

● Market making and similar activities increased ~~$722~~$316 million and $377 million primarily driven by strong sales and trading performance in Equities. The increase in the nine-month period was partially offset by a weaker performance in Fixed Income, Currencies and Commodities (FICC), which benefited from market-related gains in the prior-year period.

● Other income decreased $836 million for the nine-month period 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~~$2.0 billion to a benefit of ~~$1.9~~$624 million and $15.4 billion to a benefit of $4.1 billion for the three and nine months ended ~~March 31,~~September 30, 2021 compared to the same periods in 2020. The benefit in the three-month period was primarily due to credit quality improvements. The benefit in ~~2020,~~the nine-month period was primarily driven by ~~improvement~~improvements in the macroeconomic outlook and ~~lower loan balances.~~credit quality. For more information on the provision for credit losses, see Allowance for Credit Losses on page ~~38.~~42.


5Bank of America

Noninterest Expense


Table 3	Table 3	Noninterest Expense						Table 3	Noninterest Expense

			Three Months Ended March 31
							Three Months Ended September 30					Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)		2021		2020			(Dollars in millions)		2021			2020		2021		2020
Compensation and benefits	Compensation and benefits		$	9,736	$	8,341		Compensation and benefits		$	8,714		$	8,200	$	27,103	$	24,535
Occupancy and equipment	Occupancy and equipment		1,830		1,702			Occupancy and equipment		1,764			1,798		5,353		5,302
Information processing and communications	Information processing and communications		1,425		1,209			Information processing and communications		1,416			1,333		4,289		3,807
Product delivery and transaction related	Product delivery and transaction related		977		777			Product delivery and transaction related		987			930		2,940		2,518
Marketing	Marketing		371		438			Marketing		347			308		1,528		1,238
Professional fees	Professional fees		403		375			Professional fees		434			450		1,263		1,206
Other general operating	Other general operating		773		633			Other general operating		778			1,382		2,524		2,680
Total noninterest expense	Total noninterest expense		$	15,515	$	13,475		Total noninterest expense		$	14,440		$	14,401	$	45,000	$	41,286

Noninterest expense increased ~~$2.0~~$39 million to $14.4 billion, and $3.7 billion to ~~$15.5~~$45.0 billion for the three and nine months ended ~~March 31,~~September 30, 2021 compared to the same ~~period~~periods in 2020. Noninterest expense in the three-month period was relatively flat, as higher revenue-related expenses were largely offset by lower litigation expense and COVID-19 related costs.

The increase in the nine-month period was primarily due to ~~elevated net COVID-19~~higher compensation and benefits expense, a contribution to the Bank of America Foundation, higher costs ~~acceleration of expenses due~~associated with processing transactional card claims related to ~~incentive compensation award changes,~~state unemployment benefits and an impairment charge for real estate ~~rationalization, higher revenue-related expenses and higher severance costs.~~rationalization.

Income Tax Expense


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

			Three Months Ended March 31
									Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)		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		$	8,950			$	4,546		$	26,158		$	12,876
Income tax expense	Income tax expense		1,116			521				Income tax expense		1,259				(335)			1,193			452
Effective tax rate	Effective tax rate		12.2		%	11.5		%		Effective tax rate		14.1		%		(7.4)		%	4.6		%	3.5		%

~~The~~

Changes in the effective tax rates for the three and nine months ended ~~March 31,~~September 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 2020 U.K. tax law change. Also included in the nine months ended September 30, 2021 was the impact of the 2021 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)~~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 changes, the effective tax rate would have been 23approximately 25 percent for the ~~first quarter~~three and nine months ended September 30, 2021 compared to 27 percent and 26 percent for the same periods a year ago.

On June 10, 2021, the U.K. enacted the 2021 Finance Act, which included an increase in 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, during the nine months ended September 30, 2021, the Corporation recorded a write-up of ~~2021.~~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 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 5.5 on page 8.

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.~~48.

~~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						Nine Months Ended September 30
(In millions, except per share information)		Third			Second			First			Fourth			Third			2021			2020
Income statement
Net interest income		$	11,094		$	10,233		$	10,197		$	10,253		$	10,129		$	31,524		$	33,107
Noninterest income		11,672			11,233			12,624			9,846			10,207			35,529			32,322
Total revenue, net of interest expense		22,766			21,466			22,821			20,099			20,336			67,053			65,429
Provision for credit losses		(624)			(1,621)			(1,860)			53			1,389			(4,105)			11,267
Noninterest expense		14,440			15,045			15,515			13,927			14,401			45,000			41,286
Income before income taxes		8,950			8,042			9,166			6,119			4,546			26,158			12,876
Income tax expense		1,259			(1,182)			1,116			649			(335)			1,193			452
Net income		7,691			9,224			8,050			5,470			4,881			24,965			12,424
Net income applicable to common shareholders		7,260			8,964			7,560			5,208			4,440			23,784			11,265
Average common shares issued and outstanding		8,430.7			8,620.8			8,700.1			8,724.9			8,732.9			8,583.1			8,762.6
Average diluted common shares issued and outstanding		8,492.8			8,735.5			8,755.6			8,785.0			8,777.5			8,702.2			8,800.5
Performance ratios
Return on average assets (1)		0.99		%	1.23		%	1.13		%	0.78		%	0.71		%	1.12		%	0.63		%
Four-quarter trailing return on average assets (2)		1.04			0.97			0.79			0.67			0.75			n/a			n/a
Return on average common shareholders’ equity (1)		11.43			14.33			12.28			8.39			7.24			12.67			6.20
Return on average tangible common shareholders’ equity (3)		15.85			19.90			17.08			11.73			10.16			17.61			8.71
Return on average shareholders’ equity (1)		11.08			13.47			11.91			8.03			7.26			12.15			6.24
Return on average tangible shareholders’ equity (3)		14.87			18.11			16.01			10.84			9.84			16.33			8.46
Total ending equity to total ending assets		8.83			9.15			9.23			9.68			9.82			8.83			9.82
Total average equity to total average assets		8.95			9.11			9.52			9.71			9.76			9.19			10.05
Dividend payout		24.10			17.25			20.68			30.11			35.36			20.43			41.90
Per common share data
Earnings		$	0.86		$	1.04		$	0.87		$	0.60		$	0.51		$	2.77		$	1.29
Diluted earnings		0.85			1.03			0.86			0.59			0.51			2.75			1.28
Dividends paid		0.21			0.18			0.18			0.18			0.18			0.57			0.54
Book value (1)		30.22			29.89			29.07			28.72			28.33			30.22			28.33
Tangible book value (3)		21.69			21.61			20.90			20.60			20.23			21.69			20.23




Market capitalization		$	349,841		$	349,925		$	332,337		$	262,206		$	208,656		$	349,841		$	208,656
Average balance sheet
Total loans and leases		$	920,509		$	907,900		$	907,723		$	934,798		$	974,018
Total assets		3,076,452			3,015,113			2,879,221			2,791,874			2,739,684
Total deposits		1,942,705			1,888,834			1,805,747			1,737,139			1,695,488
Long-term debt		248,988			232,034			220,836			225,423			224,254
Common shareholders’ equity		252,043			250,948			249,648			246,840			243,896
Total shareholders’ equity		275,484			274,632			274,047			271,020			267,323
Asset quality
Allowance for credit losses (4)		$	14,693		$	15,782		$	17,997		$	20,680		$	21,506
Nonperforming loans, leases and foreclosed properties (5)		4,831			5,031			5,299			5,116			4,730
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)		1.43		%	1.55		%	1.80		%	2.04		%	2.07		%
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)		279			287			313			380			431
Net charge-offs		$	463		$	595		$	823		$	881		$	972
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)		0.20		%	0.27		%	0.37		%	0.38		%	0.40		%







Capital ratios at period end (6)

Common equity tier 1 capital		11.1		%	11.5		%	11.8		%	11.9		%	11.9		%

Tier 1 capital		12.6			13.0			13.3			13.5			13.5
Total capital		14.7			15.1			15.6			16.1			16.1
Tier 1 leverage		6.6			6.9			7.2			7.4			7.4
Supplementary leverage ratio		5.6			5.9			7.0			7.2			6.9
Tangible equity (3)		6.7			7.0			7.0			7.4			7.4
Tangible common equity (3)		5.9			6.2			6.2			6.5			6.6
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets		27.7		%	27.7		%	26.8		%	27.4		%	26.9		%
Total loss-absorbing capacity to supplementary leverage exposure		12.4			12.5			14.1			14.5			13.7
Eligible long-term debt to risk-weighted assets		14.4			14.1			13.0			13.3			12.9
Eligible long-term debt to supplementary leverage exposure		6.4			6.3			6.8			7.1			6.6

(1)For definitions, see Key Metrics on page 102.

(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 48.

(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 39 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)		Third Quarter 2021						Third Quarter 2020
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	240,054	$	50	0.08	%	$	245,682	$	10	0.02	%
Time deposits placed and other short-term investments		6,419		4		0.24		7,686		(4)		(0.25)
Federal funds sold and securities borrowed or purchased under agreements to resell		270,094		6		0.01		384,221		55		0.06
Trading account assets		147,196		979		2.64		146,972		960		2.60
Debt securities		949,009		3,296		1.39		533,261		2,147		1.63
Loans and leases (2)
Residential mortgage		215,652		1,487		2.76		237,414		1,811		3.05
Home equity		30,069		263		3.47		37,897		284		2.99
Credit card		75,569		1,952		10.25		81,309		2,086		10.20

Direct/Indirect and other consumer (3)		98,148		578		2.34		89,559		593		2.63

Total consumer		419,438		4,280		4.06		446,179		4,774		4.26
U.S. commercial		323,659		2,315		2.84		343,533		2,165		2.51
Non-U.S. commercial		101,967		446		1.73		102,938		465		1.80
Commercial real estate (4)		59,881		378		2.51		63,262		393		2.47
Commercial lease financing		15,564		116		2.98		18,106		138		3.04
Total commercial		501,071		3,255		2.58		527,839		3,161		2.38
Total loans and leases		920,509		7,535		3.25		974,018		7,935		3.25
Other earning assets		120,734		567		1.86		83,086		497		2.39
Total earning assets		2,654,015		12,437		1.86		2,374,926		11,600		1.95
Cash and due from banks		30,101						32,714
Other assets, less allowance for loan and lease losses		392,336						332,044
Total assets		$	3,076,452					$	2,739,684
Interest-bearing liabilities
U.S. interest-bearing deposits

Demand and money market deposits		$	931,964	$	79	0.03	%	$	842,987	$	93	0.04	%

Time and savings deposits		162,337		41		0.10		164,648		116		0.28
Total U.S. interest-bearing deposits		1,094,301		120		0.04		1,007,635		209		0.08




Non-U.S. interest-bearing deposits		84,098		13		0.06		75,485		18		0.09
Total interest-bearing deposits		1,178,399		133		0.04		1,083,120		227		0.08
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities		324,582		(41)		(0.05)		286,582		(24)		(0.03)
Trading account liabilities		56,496		285		2.00		39,689		212		2.13
Long-term debt		248,988		865		1.37		224,254		942		1.67
Total interest-bearing liabilities		1,808,465		1,242		0.27		1,633,645		1,357		0.33
Noninterest-bearing sources
Noninterest-bearing deposits		764,306						612,368
Other liabilities (5)		228,197						226,348
Shareholders’ equity		275,484						267,323
Total liabilities and shareholders’ equity		$	3,076,452					$	2,739,684
Net interest spread						1.59	%					1.62	%
Impact of noninterest-bearing sources						0.09						0.10
Net interest income/yield on earning assets (6)				$	11,195	1.68	%			$	10,243	1.72	%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 46.

(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 $2.9 billion for both the third quarter of 2021 and 2020.

(4)Includes U.S. commercial real estate loans of $56.0 billion and $59.6 billion, and non-U.S. commercial real estate loans of $3.9 billion and $3.7 billion for the third quarter of 2021 and 2020.

(5)Includes $29.6 billion and $34.2 billion of structured notes and liabilities for the third quarter of 2021 and 2020.

(6)Net interest income includes FTE adjustments of $101 million and $114 million for the third 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
		Nine Months Ended September 30
(Dollars in millions)		2021						2020
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	255,136	$	106	0.06	%	$	230,265	$	311	0.18	%
Time deposits placed and other short-term investments		7,738		8		0.14		9,070		31		0.45
Federal funds sold and securities borrowed or purchased under agreements to resell		263,581		(43)		(0.02)		325,356		900		0.37
Trading account assets		148,205		2,831		2.55		149,002		3,247		2.91
Debt securities		878,437		8,875		1.36		491,664		7,477		2.05
Loans and leases (2)
Residential mortgage		216,239		4,514		2.78		239,623		5,678		3.16
Home equity		31,761		811		3.41		39,078		1,013		3.46
Credit card		74,383		5,775		10.38		87,302		6,690		10.24

Direct/Indirect and other consumer (3)		94,658		1,698		2.40		89,824		1,962		2.92

Total consumer		417,041		12,798		4.10		455,827		15,343		4.49
U.S. commercial (4)		322,773		6,415		2.66		349,616		7,601		2.90
Non-U.S. commercial (4)		96,445		1,284		1.78		110,096		1,781		2.16
Commercial real estate (5)		59,632		1,114		2.50		64,062		1,406		2.93
Commercial lease financing		16,200		356		2.94		18,872		427		3.02
Total commercial		495,050		9,169		2.48		542,646		11,215		2.76
Total loans and leases		912,091		21,967		3.22		998,473		26,558		3.55
Other earning assets		106,978		1,696		2.12		81,079		1,986		3.27
Total earning assets		2,572,166		35,440		1.84		2,284,909		40,510		2.37
Cash and due from banks		31,886						30,663
Other assets, less allowance for loan and lease losses		386,932						331,035
Total assets		$	2,990,984					$	2,646,607
Interest-bearing liabilities
U.S. interest-bearing deposits

Demand and money market deposits		$	912,547	$	234	0.03	%	$	821,324	$	898	0.15	%

Time and savings deposits		161,156		132		0.11		175,275		658		0.50
Total U.S. interest-bearing deposits		1,073,703		366		0.05		996,599		1,556		0.21




Non-U.S. interest-bearing deposits		82,743		28		0.04		76,438		228		0.40
Total interest-bearing deposits		1,156,446		394		0.05		1,073,037		1,784		0.22
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities		312,826		(205)		(0.09)		295,483		1,024		0.46
Trading account liabilities		52,797		824		2.09		42,838		764		2.38
Long-term debt		234,056		2,581		1.48		218,766		3,445		2.10
Total interest-bearing liabilities		1,756,125		3,594		0.27		1,630,124		7,017		0.58
Noninterest-bearing sources
Noninterest-bearing deposits		723,151						524,994
Other liabilities (6)		236,982						225,427
Shareholders’ equity		274,726						266,062
Total liabilities and shareholders’ equity		$	2,990,984					$	2,646,607
Net interest spread						1.57	%					1.79	%
Impact of noninterest-bearing sources						0.09						0.17
Net interest income/yield on earning assets (7)				$	31,846	1.66	%			$	33,493	1.96	%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 46.

(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 nine months ended September 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 $56.2 billion and $60.4 billion, and non-U.S. commercial real estate loans of $3.4 billion and $3.7 billion for the nine months ended September 30, 2021 and 2020.

(6)Includes $30.5 billion and $35.1 billion of structured notes and liabilities for the nine months ended September 30, 2021 and 2020.

(7)Net interest income includes FTE adjustments of $322 million and $386 million for the nine months ended September 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 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 September 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	$	3,731		$	3,245		$	2,762		$	2,645		$	6,493		$	5,890		10	%
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)			1,324			1,224			1,317			1,220			8
Service charges	Service charges	830			995			1			—			831			995			(16)		Service charges	935			837			—			—			935			837			12
All other income	All other income	73			97			56			65			129			162			(20)		All other income	56			84			37			8			93			92			1
Total noninterest income	Total noninterest income	898			1,084			1,251			1,183			2,149			2,267			(5)		Total noninterest income	984			917			1,361			1,232			2,345			2,149			9
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	4,715			4,162			4,123			3,877			8,838			8,039			10

Provision for credit losses	Provision for credit losses	74			115			(691)			2,143			(617)			2,258			(127)		Provision for credit losses	53			59			194			420			247			479			(48)
Noninterest expense	Noninterest expense	3,209			2,725			1,922			1,771			5,131			4,496			14		Noninterest expense	2,725			2,937			1,833			1,905			4,558			4,842			(6)
Income before income taxes	Income before income taxes	893			2,192			2,662			183			3,555			2,375			50		Income before income taxes	1,937			1,166			2,096			1,552			4,033			2,718			48
Income tax expense	Income tax expense	219			537			652			45			871			582			50		Income tax expense	474			286			514			380			988			666			48
Net income	Net income	$	674		$	1,655		$	2,010		$	138		$	2,684		$	1,793		50		Net income	$	1,463		$	880		$	1,582		$	1,172		$	3,045		$	2,052		48

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

Net interest yield	Net interest yield	1.46		%	2.17		%	3.74		%	3.76		%	2.51			3.57					Net interest yield	1.49		%	1.52		%	3.95		%	3.35		%	2.49			2.61
Return on average allocated capital	Return on average allocated capital	23			55			31			2			28			19					Return on average allocated capital	48			29			24			18			31			21
Efficiency ratio	Efficiency ratio	76.87			54.14			49.34			43.23			63.59			49.24					Efficiency ratio	57.75			70.60			44.48			49.13			51.56			60.24

Balance Sheet	Balance Sheet																					Balance Sheet
		Three Months Ended March 31																					Three Months Ended September 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	$	4,387		$	5,046		$	276,993		$	313,705		$	281,380		$	318,751		(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)	991,186			849,190			277,491			314,079			1,034,471			896,867			15
Total assets (2)	Total assets (2)	950,803			764,117			290,709			317,580			999,769			811,277			23		Total assets (2)	1,026,811			886,406			283,631			316,107			1,076,236			936,112			15
Total deposits	Total deposits	917,319			731,277			6,818			5,392			924,137			736,669			25		Total deposits	993,624			853,452			7,141			7,547			1,000,765			860,999			16
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.


911 Bank of America



	Deposits						Consumer Lending						Total Consumer Banking
	Nine Months Ended September 30
(Dollars in millions)	2021			2020			2021			2020			2021			2020			% Change
Net interest income	$	10,489		$	10,491		$	7,897		$	8,252		$	18,386		$	18,743		(2)	%
Noninterest income:
Card income	(19)			(15)			3,837			3,399			3,818			3,384			13
Service charges	2,615			2,537			2			1			2,617			2,538			3
All other income	151			244			121			111			272			355			(23)
Total noninterest income	2,747			2,766			3,960			3,511			6,707			6,277			7
Total revenue, net of interest expense	13,236			13,257			11,857			11,763			25,093			25,020			—

Provision for credit losses	174			328			(1,241)			5,433			(1,067)			5,761			(119)
Noninterest expense	8,789			8,532			5,759			5,542			14,548			14,074			3
Income before income taxes	4,273			4,397			7,339			788			11,612			5,185			124
Income tax expense	1,047			1,077			1,798			193			2,845			1,270			124
Net income	$	3,226		$	3,320		$	5,541		$	595		$	8,767		$	3,915		124

Effective tax rate (1)													24.5		%	24.5		%

Net interest yield	1.46		%	1.76		%	3.76		%	3.51		%	2.45			2.98
Return on average allocated capital	36			37			28			3			30			14
Efficiency ratio	66.40			64.36			48.57			47.11			57.97			56.25

Balance Sheet
	Nine Months Ended September 30
Average	2021			2020			2021			2020			2021			2020			% Change


Total loans and leases	$	4,479		$	5,264		$	280,165		$	313,820		$	284,644		$	319,084		(11)	%
Total earning assets (2)	957,561			794,371			280,617			314,275			1,001,590			838,792			19
Total assets (2)	994,562			829,505			285,813			318,214			1,043,787			877,866			19
Total deposits	961,266			796,591			7,006			6,411			968,272			803,002			21
Allocated capital	12,000			12,000			26,500			26,500			38,500			38,500			—


Period end	September 30 2021			December 31 2020			September 30 2021			December 31 2020			September 30 2021			December 31 2020			% Change
Total loans and leases	$	4,345		$	4,673		$	276,458		$	295,261		$	280,803		$	299,934		(6)	%
Total earning assets (2)	1,006,593			899,951			277,056			295,627			1,050,331			945,343			11
Total assets (2)	1,041,487			939,629			283,262			299,185			1,091,431			988,580			10
Total deposits	1,008,051			906,092			7,225			6,560			1,015,276			912,652			11

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 Bankingincreased ~~$891~~$993 million to ~~$2.7~~$3.0 billion ~~during the three months ended March 31, 2021 compared to the same period in 2020 primarily~~ due to ~~an improvement in the~~higher revenue, lower noninterest expense and lower provision for credit ~~losses, partially offset by lower revenue and higher noninterest expense.~~losses. Net interest income ~~decreased $942~~increased $603 million to ~~$5.9~~$6.5 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 billion driven by a decline in service charges primarily due to higher deposit~~ balances, ~~and lower other income due to~~ the allocation of asset and liability management (ALM) results and the recognition of capitalized loan fees due to PPP loan forgiveness, partially offset by lower residential mortgage and card balances. Noninterest income increased $196 million to $2.3 billion driven by higher service charges and card income due to increased client activity.

The provision for credit losses decreased $232 million to $247 million primarily due to credit quality improvements. Noninterest expense decreased $284 million to $4.6 billion primarily driven by lower COVID-19 related costs.

The return on average allocated capital was 31 percent, up from 21 percent, driven by higher net income. For more

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

Nine-Month Comparison

Net income for Consumer Banking increased $4.9 billion to $8.8 billion primarily due to lower provision for credit losses, partially offset by higher noninterest expense. Net interest income decreased $357 million to $18.4 billion primarily due to lower interest rates and loan balances and the allocation of ALM results, partially offset by the benefit of higher deposit balances and the recognition of capitalized loan fees due to PPP loan forgiveness. Noninterest income increased $430 million to $6.7 billion primarily due to the same factors as described in the three-month discussion.

The provision for credit losses improved ~~$2.9~~$6.8 billion to a benefit of ~~$617 million~~$1.1 billion primarily driven by reserve releases due to ~~a reserve release, as~~improvements in the macroeconomic outlook ~~improved~~ and ~~our~~ credit ~~quality remained strong.~~quality. Noninterest expense increased ~~$635~~$474 million to ~~$5.1~~$14.5 billion primarily driven by an impairment charge ~~of $240 million~~ for real estate rationalization, ~~incremental expense~~the contribution to ~~support customers and employees during~~ the ~~pandemic, the~~Bank of 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.

The return on average allocated capital was 2830 percent, up from 1914 percent, driven by higher net income. ~~For more information on capital allocated to the business segments, see Business Segment Operations on page 9.~~


						Bank of America12

Deposits

Three-Month Comparison

Net income for Deposits increased $583 million to $1.5 billion primarily driven by higher revenue and lower noninterest expense. Net interest income increased $486 million to $3.7 billion primarily due to the benefit of higher deposit balances and the allocation of ALM results. Noninterest income increased $67 million to $984 million primarily driven by higher service charges due to increased client activity.

Noninterest expense decreased $212 million to $2.7 billion primarily driven by lower COVID-19 related costs.

Average deposits increased $140.2 billion to $993.6 billion primarily due to net inflows of $74.7 billion in checking and time deposits and $65.0 billion in traditional savings and money market savings driven by strong organic growth.

Nine-Month Comparison

Net income for Deposits decreased ~~$1.0 billion to $674 million primarily driven by lower revenue and higher noninterest expense. Net interest income declined $670~~$94 million to ~~$3.3~~$3.2 billion

primarily due to ~~lower interest rates,~~higher noninterest expense, partially offset by ~~the benefit of growth in deposits. Noninterest income decreased $186 million to $898 million primarily driven by~~ lower ~~service charges due to higher deposit balances, as well as lower other income due to the allocation of ALM results.~~provision for credit losses.

The provision for credit losses decreased ~~$41~~$154 million to ~~$74~~$174 million due to an improved macroeconomic outlook. Noninterest expense increased ~~$484~~$257 million to ~~$3.2~~$8.8 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 to support customers and employees during the pandemic.~~growth, partially offset by lower COVID-19 related costs.

Average deposits increased ~~$186.0~~$164.7 billion to ~~$917.3~~$961.3 billion ~~driven by strong organic growth and additional government stimulus measures~~primarily due to net inflows of ~~$112.1~~$93.8 billion in checking and time deposits and ~~$73.1~~$70.1 billion in traditional savings and money market ~~savings.~~savings driven by strong organic growth and continued government stimulus 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 September 30					Nine Months Ended September 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)	1.68%	1.87%	1.70%		1.98%

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)			$	353,280	$	266,733
Active digital banking users (units in thousands) (3)			40,286			39,075
Active mobile banking users (units in thousands) (4)			31,487			29,820
Active digital banking users (in thousands) (3)								Active digital banking users (in thousands) (3)			40,911		39,267
Active mobile banking users (in thousands) (4)								Active mobile banking users (in thousands) (4)			32,455		30,601
Financial centers	Financial centers		4,324			4,297		Financial centers			4,215		4,309
ATMs	ATMs		16,905			16,855		ATMs			16,513		16,962

(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~~Represents mobile and/or online active users ~~at period end.~~over the past 90 days.

(4)~~Active mobile banking users represents~~Represents mobile active users ~~at period end.~~over the past 90 days.


						~~Bank of America~~10

Consumer investment assets increased ~~$112.3~~$86.5 billion to ~~$324.5~~$353.3 billion driven by market performance and client flows. Active mobile banking users increased approximately two million, reflecting continuing changes in our customers’ banking preferences. We had a net ~~increase~~decrease of 2794 financial centers as we continue to optimize our consumer banking network.

Consumer Lending

Three-Month Comparison

Net income for Consumer Lending was ~~$2.0~~$1.6 billion, an increase of ~~$1.9 billion,~~$410 million, primarily due to ~~improvement in the~~higher revenue and lower provision for credit losses. Net interest income ~~declined $272~~increased $117 million to ~~$2.6~~$2.8 billion primarily driven by the recognition of capitalized loan fees due to ~~lower interest rates and~~PPP loan ~~balances.~~forgiveness. Noninterest income increased ~~$68~~$129 million to ~~$1.3~~$1.4 billion primarily driven by higher card income due to increased client activity.

The provision for credit losses ~~improved $2.8 billion~~decreased $226 million to ~~a benefit of $691~~$194 million primarily due to ~~a reserve release, as the macroeconomic outlook improved and our~~ credit quality ~~remained strong.~~improvements. Noninterest expense ~~increased $151~~decreased $72 million to ~~$1.9~~$1.8 billion primarily driven by ~~investments in the business and incremental expense to support customers and employees during the pandemic.~~lower COVID-19 related costs.

Average loans decreased ~~$25.2~~$36.7 billion to ~~$286.3~~$277.0 billion primarily driven by a decline in residential mortgage, PPP and credit ~~cards and residential mortgage. In addition, the prior-year period excluded PPP loans, which we began originating~~card loans.

Nine-Month Comparison

Net income for Consumer Lending was $5.5 billion, an increase of $4.9 billion, primarily due to improvement in the ~~second quarter~~provision for credit losses. Net interest income declined $355 million to $7.9 billion primarily due to lower interest rates and loan balances. Noninterest income increased $449 million to $4.0 billion primarily due to the same factor as described in the three-month discussion.

The provision for credit losses improved $6.7 billion to a benefit of ~~2020.~~$1.2 billion primarily driven by reserve releases due to improvements in the macroeconomic outlook and credit quality. Noninterest expense increased $217 million to $5.8 billion primarily driven by continued investments for business growth, partially offset by lower COVID-19 related costs.

Average loans decreased $33.7 billion to $280.2 billion primarily driven by a decline in residential mortgage and credit card loans.


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 September 30								Nine Months Ended September 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		%	10.16		%	10.24		%	10.21		%
Risk-adjusted margin (3)	Risk-adjusted margin (3)			9.29				7.94			Risk-adjusted margin (3)	10.70			9.66			9.93			8.66
New accounts (in thousands)	New accounts (in thousands)			674				1,055			New accounts (in thousands)	1,049			487			2,654			1,991
Purchase volumes	Purchase volumes			$	64,591			$	64,379		Purchase volumes	$	80,925		$	64,060		$	223,900		$	182,133
Debit card purchase volumes	Debit card purchase volumes			$	107,907			$	88,588		Debit card purchase volumes	$	119,680		$	102,004		$	349,492		$	280,222

(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 nine months ended ~~March 31,~~September 30, 2021, the total risk-adjusted margin increased ~~135~~104 bps ~~compared to the same period in 2020,~~and 127 bps primarily driven by lower net credit losses, higher net interest margin, and higher fee income. ~~Total~~During the three and nine months ended September 30, 2021, total credit card purchase volumes increased ~~$212 million~~$16.9 billion to ~~$64.6~~$80.9 billion, and $41.8 billion to $223.9 billion as spending ~~began~~continued to

recover, with improvements across all categories, primarily in retail ~~warehouse~~ and ~~services, while travel remained suppressed. Debit~~travel. During the three and nine months ended September 30, 2021, debit card purchase volumes increased ~~$19.3~~$17.7 billion to ~~$107.9~~$119.7 billion, and $69.3 billion to $349.5 billion due to ~~the impacts of government stimulus measures, tax refunds and~~ continued retail growth from the pandemic ~~recovery.~~recovery, as well as the impact of government stimulus measures, and tax refunds.


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 September 30						Nine Months Ended September 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	$	12,510	$	7,298	$	33,194	$	35,228
Home equity	Home equity			410			2,641		Home equity	1,262		738		2,579		6,555
Total (2):	Total (2):								Total (2):
First mortgage	First mortgage			$	15,233		$	18,938	First mortgage	$	21,232	$	13,360	$	56,731	$	55,422
Home equity	Home equity			503			3,024		Home equity	1,523		984		3,192		7,691

(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~~increased $5.2 billion and $7.9 billion during the three months ended ~~March 31,~~September 30, 2021 ~~compared~~primarily due to higher demand driven by lower interest rates. During the ~~same period in 2020~~nine months ended September 30, 2021, Consumer Banking decreased $2.0 billion and the total Corporation increased $1.3 billion, primarily driven by ~~lower~~changes in demand.

Home equity production in Consumer Banking and for the total Corporation ~~decreased $2.2 billion~~increased $524 million and ~~$2.5 billion,~~$539 million during the three months ended September 30, 2021 primarily driven by ~~a decline in originations.~~higher demand. Consumer Banking and the total Corporationdecreased $4.0 billion and $4.5 billion during the nine months ended September 30, 2021, primarily driven by lower demand due to increased borrower liquidity.


11~~Bank of America~~


						Bank of America14

Global Wealth & Investment Management


		Three Months Ended March 31								Three Months Ended September 30								Nine Months Ended September 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	$	1,451		$	1,237		17	%	$	4,137		$	4,186		(1)	%
Noninterest income:	Noninterest income:										Noninterest income:
Investment and brokerage services	Investment and brokerage services		3,391			3,122			9		Investment and brokerage services	3,683			3,105			19		10,610			9,081			17
All other income	All other income		249			243			2		All other income	176			204			(14)		599			640			(6)
Total noninterest income	Total noninterest income		3,640			3,365			8		Total noninterest income	3,859			3,309			17		11,209			9,721			15
Total revenue, net of interest expense	Total revenue, net of interest expense		4,971			4,936			1		Total revenue, net of interest expense	5,310			4,546			17		15,346			13,907			10

Provision for credit losses	Provision for credit losses		(65)			189			(134)		Provision for credit losses	(58)			24			n/m		(185)			349			n/m
Noninterest expense	Noninterest expense		3,869			3,606			7		Noninterest expense	3,745			3,533			6		11,425			10,596			8
Income before income taxes	Income before income taxes		1,167			1,141			2		Income before income taxes	1,623			989			64		4,106			2,962			39
Income tax expense	Income tax expense		286			280			2		Income tax expense	398			242			64		1,006			726			39
Net income	Net income		$	881		$	861		2		Net income	$	1,225		$	747		64		$	3,100		$	2,236		39

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	1.54			1.53					1.51			1.81
Return on average allocated capital	Return on average allocated capital		22			23					Return on average allocated capital	30			20					25			20

Efficiency ratio	Efficiency ratio		77.85			73.06					Efficiency ratio	70.51			77.70					74.45			76.19

Balance Sheet	Balance Sheet										Balance Sheet

		Three Months Ended March 31								Three Months Ended September 30								Nine Months Ended September 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	$	199,664		$	185,587		8	%	$	194,090		$	182,138		7	%
Total earning assets	Total earning assets		360,099			290,919			24		Total earning assets	373,691			321,410			16		367,239			309,240			19
Total assets	Total assets		372,594			303,173			23		Total assets	386,346			333,794			16		379,802			321,565			18
Total deposits	Total deposits		326,370			263,411			24		Total deposits	339,357			291,845			16		333,119			280,828			19
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														September 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									$	202,268		$	188,562		7	%
Total earning assets	Total earning assets		365,854			356,874			3		Total earning assets									380,857			356,873			7
Total assets	Total assets		378,655			369,738			2		Total assets									393,708			369,736			6
Total deposits	Total deposits		333,254			322,157			3		Total deposits									345,590			322,157			7

n/m = not meaningful

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 $478 million ~~remained relatively unchanged for the three months ended March 31, 2021 compared~~ to ~~the same period in 2020, as~~$1.2 billion primarily driven by higher ~~noninterest income and improvement in the provision for credit losses were largely~~revenue, partially offset by higher noninterest ~~expense and lower net interest income.~~expense. The operating margin ~~remained relatively unchanged at 23~~was 31 percent compared to 22 percent a year ago.

Net interest income ~~decreased $240~~increased $214 million to ~~$1.3~~$1.5 billion primarily due to the ~~impact~~benefits of ~~lower interest rates, partially offset by the benefit of strong~~loan and deposit ~~and loan~~ growth.

Noninterest income, which primarily includes investment and brokerage services income, increased ~~$275~~$550 million to ~~$3.6~~$3.9 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~~$82 million to a benefit of ~~$65~~$58 million primarily due to ~~an improved macroeconomic outlook.~~credit quality improvements. Noninterest expense increased ~~$263~~$212 million to ~~$3.9~~$3.7 billion primarily driven by higher revenue-related ~~incentives and investments in primary sales professionals.~~incentives.

The return on average allocated capital was 2230 percent, ~~down~~up from 2320 percent, due to higher 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 ~~$9.9~~$14.1 billion to ~~$188.5~~$199.7 billion primarily driven by securities-based lending, custom lending and

residential mortgage. Average deposits increased ~~$63.0~~$47.5 billion to ~~$326.4~~$339.4 billion primarily driven by inflows ~~resulting~~ from new accounts and client responses to market ~~volatility and lower spending.~~volatility.

MLGWM revenue of ~~$4.2~~$4.5 billion increased ~~three~~19 percent primarily driven by the benefits of higher market valuations and positive AUM flows.

Bank of America Private Bank revenue of $839 million increased five percent primarily driven by the benefits of higher market valuations and AUM flows, partially offset by the realignment of certain business results to MLGWM.

Nine-Month Comparison

Net income for GWIM increased $864 million to $3.1 billion due to the same factors as described in the three-month discussion. The operating margin was 27 percent compared to 21 percent a year ago.

Net interest income decreased $49 million to $4.1 billion due to lower interest rates, partially offset by the benefits of deposit and loan growth.

Noninterest income, which primarily includes investment and brokerage services income, increased $1.5 billion to $11.2 billion due to the same factors as described in the three-month discussion.

The provision for credit losses improved $534 million to a benefit of $185 million primarily due to improvements in the macroeconomic outlook and credit quality. Noninterest expense increased $829 million to $11.4 billion, primarily due to the same factor as described in the three-month discussion.


15Bank of America

The return on average allocated capital was 25 percent, up from 20 percent, due to the same factors as described in the three-month discussion.

Average loans increased $12.0 billion to $194.1 billion, and average deposits increased $52.3 billion to $333.1 billion. The changes in average loans and deposits were both primarily due to the same factors as described in the three-month discussion.

MLGWM revenue of $12.9 billion increased 13 percent primarily driven by the benefits of higher market valuations,

positive AUM flows and loan and deposit growth, partially offset by the impact of lower interest rates.

Bank of America Private Bank revenue of ~~$786 million~~$2.4 billion decreased ~~nine~~one 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 September 30						Nine Months Ended September 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	$	4,471	$	3,748	$	12,916	$	11,446
Bank of America Private Bank	Bank of America Private Bank		786			863		Bank of America Private Bank	839		798		2,430		2,461

Total revenue, net of interest expense	Total revenue, net of interest expense		$	4,971		$	4,936	Total revenue, net of interest expense	$	5,310	$	4,546	$	15,346	$	13,907

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					$	3,108,358	$	2,570,252
Bank of America Private Bank	Bank of America Private Bank		557,569			443,080		Bank of America Private Bank					584,475		496,369

Total client balances	Total client balances		$	3,480,339		$	2,658,611	Total client balances					$	3,692,833	$	3,066,621

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					$	1,578,630	$	1,286,145
Brokerage and other assets	Brokerage and other assets		1,535,424			1,155,461		Brokerage and other assets					1,612,472		1,344,538

Deposits	Deposits		333,254			282,395		Deposits					345,590		295,893
Loans and leases (1)	Loans and leases (1)		192,725			184,011		Loans and leases (1)					205,055		189,952
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					(48,914)		(49,907)
Total client balances	Total client balances		$	3,480,339		$	2,658,611	Total client balances					$	3,692,833	$	3,066,621

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	$	1,549,069	$	1,219,748	$	1,408,465	$	1,275,555

Net client flows	Net client flows		18,208			7,035		Net client flows	14,776		1,385		44,698		11,993
Market valuation/other	Market valuation/other		40,814			(190,108)		Market valuation/other	14,785		65,012		125,467		(1,403)
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	$	1,578,630	$	1,286,145	$	1,578,630	$	1,286,145

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)					18,855		20,487

(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~~$626.2 billion, or 3120 percent, to ~~$3.5~~$3.7 trillion at ~~March 31,~~September 30, 2021 compared to ~~March 31,~~September 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 September 30								Nine Months Ended September 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	$	2,186		$	2,028		8	%	$	6,150		$	7,003		(12)	%
Noninterest income:	Noninterest income:										Noninterest income:
Service charges	Service charges	847			796			6			Service charges	890			846			5		2,637			2,379			11
Investment banking fees	Investment banking fees	1,172			761			54			Investment banking fees	1,297			970			34		3,642			2,912			25
All other income	All other income	634			431			47			All other income	871			673			29		2,538			1,914			33
Total noninterest income	Total noninterest income	2,653			1,988			33			Total noninterest income	3,058			2,489			23		8,817			7,205			22
Total revenue, net of interest expense	Total revenue, net of interest expense	4,633			4,600			1			Total revenue, net of interest expense	5,244			4,517			16		14,967			14,208			5

Provision for credit losses	Provision for credit losses	(1,126)			2,093			n/m			Provision for credit losses	(781)			883			n/m		(2,738)			4,849			n/m
Noninterest expense	Noninterest expense	2,781			2,318			20			Noninterest expense	2,534			2,365			7		7,915			6,910			15
Income before income taxes	Income before income taxes	2,978			189			n/m			Income before income taxes	3,491			1,269			n/m		9,790			2,449			n/m
Income tax expense	Income tax expense	804			51			n/m			Income tax expense	942			343			n/m		2,643			661			n/m
Net income	Net income	$	2,174		$	138		n/m			Net income	$	2,549		$	926		n/m		$	7,147		$	1,788		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	1.55			1.61					1.53			1.96
Return on average allocated capital	Return on average allocated capital	21			1						Return on average allocated capital	24			9					22			6
Efficiency ratio	Efficiency ratio	60.03			50.40						Efficiency ratio	48.31			52.36					52.88			48.63

Balance Sheet	Balance Sheet										Balance Sheet

		Three Months Ended March 31								Three Months Ended September 30								Nine Months Ended September 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	$	324,736		$	373,118		(13)	%	$	326,632		$	394,331		(17)	%
Total earning assets	Total earning assets	515,880			409,052			26			Total earning assets	560,181			501,572			12		537,037			477,606			12
Total assets	Total assets	576,145			465,926			24			Total assets	621,699			557,889			11		597,947			534,061			12
Total deposits	Total deposits	487,034			382,373			27			Total deposits	534,166			471,288			13		509,445			449,273			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									September 30 2021			December 31 2020			% Change
Total loans and leases	Total loans and leases	$	325,996		$	339,649		(4)	%		Total loans and leases									$	328,893		$	339,649		(3)	%
Total earning assets	Total earning assets	533,852			522,650			2			Total earning assets									561,239			522,650			7
Total assets	Total assets	594,235			580,561			2			Total assets									623,640			580,561			7
Total deposits	Total deposits	506,012			493,748			2			Total deposits									536,476			493,748			9

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~~$1.6 billion to ~~$2.2~~$2.5 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,~~revenue, 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~~increased $158 million to ~~$2.0~~$2.2 billion primarily ~~driven by lower interest rates~~due to the allocation of ALM results and ~~loan~~the benefit of higher deposit balances, partially offset by ~~higher deposit~~a decline in loan balances and ~~credit~~lower deposit spreads.

Noninterest income increased ~~$665~~$569 million to ~~$2.7~~$3.1 billion ~~driven by~~primarily due to higher investment banking fees and higher ~~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.~~income from ESG investment activities.

The provision for credit losses improved ~~$3.2~~$1.7 billion to a benefit of ~~$1.1 billion~~$781 million primarily driven by a reserve release due to credit quality improvements, whereas the ~~improved macroeconomic outlook.~~reserve build in the prior-year period was driven by COVID-19 impacted industries, such as travel and entertainment.

Noninterest expense increased ~~$463~~$169 million ~~reflecting~~primarily due to higher ~~revenue-related incentives,~~compensation and benefits expense, as well as ~~an acceleration in expenses from incentive compensation award changes.~~higher operating costs.

The return on average allocated capital was 2124 percent, up from ~~one~~nine percent, due to higher net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 9.11.

Nine-Month Comparison

Net income for Global Banking increased $5.4 billion to $7.1 billion primarily due to the same factors as described in the three-month discussion.

Net interest income decreased $853 million to $6.2 billion primarily due to the impact of lower loan balances, lower deposit spreads and the allocation of ALM results, partially offset by the benefits of higher deposit balances and credit spreads.

Noninterest income increased $1.6 billion to $8.8 billion driven by higher investment banking fees, higher valuation-driven adjustments on the fair value loan portfolio, debt securities and leveraged loans, as well as higher treasury and credit service charges.

The provision for credit losses improved $7.6 billion to a benefit of $2.7 billion primarily driven by a reserve release due to improvements in the macroeconomic outlook and credit quality.

17Bank of America

Noninterest expense increased $1.0 billion to $7.9 billion, primarily due to higher revenue-related incentives and an acceleration in expenses from incentive compensation award changes, as well as higher operating costs.

The return on average allocated capital was 22 percent, up from six 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 September 30
(Dollars in millions)																					(Dollars in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Revenue																					Revenue
Business Lending																					Business Lending	$	886	$	791	$	924	$	953	$	55	$	59	$	1,865	$	1,803
Global Transaction Services																					Global Transaction Services	821		658		819		745		227		209		1,867		1,612
Total revenue, net of interest expense																					Total revenue, net of interest expense	$	1,707	$	1,449	$	1,743	$	1,698	$	282	$	268	$	3,732	$	3,415

Balance Sheet																					Balance Sheet
Average																					Average
Total loans and leases																					Total loans and leases	$	147,906	$	174,235	$	159,986	$	175,536	$	12,635	$	13,972	$	320,527	$	363,743
Total deposits																					Total deposits	261,951		218,593		213,319		201,523		56,891		50,946		532,161		471,062

		Global Corporate Banking					Global Commercial Banking				Business Banking					Total						Global Corporate Banking				Global Commercial Banking				Business Banking				Total
		Three Months Ended March 31																				Nine Months Ended September 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	$	2,529	$	2,658	$	2,689	$	2,815	$	166	$	207	$	5,384	$	5,680
Global Transaction Services	Global Transaction Services	690		871			744		878		211			256		1,645			2,005		Global Transaction Services	2,245		2,314		2,334		2,432		653		682		5,232		5,428
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	$	4,774	$	4,972	$	5,023	$	5,247	$	819	$	889	$	10,616	$	11,108

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	$	148,101	$	186,220	$	158,939	$	188,147	$	12,778	$	14,721	$	319,818	$	389,088
Total deposits	Total deposits	229,590		187,920			203,645		153,880		53,293			40,571		486,528			382,371		Total deposits	245,483		214,327		207,520		188,271		55,331		46,599		508,334		449,197

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	$	150,797	$	165,498	$	162,371	$	168,385	$	12,640	$	13,665	$	325,808	$	347,548
Total deposits	Total deposits	242,524		246,237			207,580		189,584		55,222			41,286		505,326			477,107		Total deposits	255,981		212,564		220,738		200,591		57,766		51,889		534,485		465,044

Business Lending revenue ~~decreased $407~~increased $62 million for the three months ended ~~March 31,~~September 30, 2021 compared to the same period in ~~2020. The decrease was~~2020 primarily ~~driven~~due to higher income from ESG investment activities and credit spreads, partially offset by the impact of lower loan balances. Business Lending revenue decreased $296 million for the nine months ended September 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 increased $255 million for the three months ended September 30, 2021 driven by the allocation of ALM results and the benefit of higher deposit balances, partially offset by lower deposit spreads. Global Transaction Services revenue decreased ~~$360~~$196 million for the nine months ended September 30, 2021 driven by lower interest rates, partially offset by the ~~impact~~benefit of higher deposit balances.

Average loans and leases decreased 1712 percent and 18 percent for the three and nine months ended September 30, 2021 driven by client paydowns and ~~decreased new originations due to~~ lower demand.

Average deposits increased 2713 percent for both the three and nine months ended September 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 September 30								Nine Months Ended September 30

(Dollars in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Products
Advisory	$	608	$	356	$	654	$	397	$	1,341	$	948	$	1,461	$	1,072
Debt issuance	401		320		933		740		1,306		1,247		3,031		2,725
Equity issuance	288		294		637		664		995		717		2,239		1,687
Gross investment banking fees	1,297		970		2,224		1,801		3,642		2,912		6,731		5,484
Self-led deals	(23)		(13)		(56)		(32)		(85)		(73)		(195)		(168)
Total investment banking fees	$	1,274	$	957	$	2,168	$	1,769	$	3,557	$	2,839	$	6,536	$	5,316

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 $2.2 billion and $6.5 billion for the three and nine months ended ~~March 31, 2021~~September 30, 2021. The three-month period increased 23 percent compared to the same period in 2020 primarily driven by higher advisory and debt issuance fees. The nine-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 September 30								Nine Months Ended September 30
(Dollars in millions)	2021			2020			% Change		2021			2020			% Change
Net interest income	$	1,000		$	1,108		(10)	%	$	2,980		$	3,558		(16)	%
Noninterest income:
Investment and brokerage services	470			439			7		1,504			1,487			1
Investment banking fees	844			738			14		2,784			2,280			22
Market making and similar activities	2,014			1,725			17		7,448			7,059			6
All other income	191			273			(30)		721			475			52
Total noninterest income	3,519			3,175			11		12,457			11,301			10
Total revenue, net of interest expense	4,519			4,283			6		15,437			14,859			4

Provision for credit losses	16			21			(24)		33			233			(86)
Noninterest expense	3,252			3,102			5		10,150			8,598			18
Income before income taxes	1,251			1,160			8		5,254			6,028			(13)
Income tax expense	325			302			8		1,366			1,567			(13)
Net income	$	926		$	858		8		$	3,888		$	4,461		(13)

Effective tax rate	26.0		%	26.0		%			26.0		%	26.0		%

Return on average allocated capital	10			9					14			17
Efficiency ratio	71.94			72.42					65.75			57.86

Balance Sheet
	Three Months Ended September 30								Nine Months Ended September 30
	2021			2020			% Change		2021			2020			% Change

Average
Trading-related assets:
Trading account securities	$	304,133		$	251,735		21	%	$	291,500		$	241,753		21	%
Reverse repurchases	117,486			100,395			17		111,330			106,968			4
Securities borrowed	101,086			86,508			17		97,205			88,734			10
Derivative assets	41,010			46,676			(12)		44,308			47,687			(7)
Total trading-related assets	563,715			485,314			16		544,343			485,142			12
Total loans and leases	97,148			72,319			34		87,535			72,702			20
Total earning assets	557,333			476,182			17		528,113			485,448			9
Total assets	804,938			680,983			18		775,552			685,685			13
Total deposits	54,650			56,475			(3)		54,699			45,002			22
Allocated capital	38,000			36,000			6		38,000			36,000			6

Period end									September 30 2021			December 31 2020			% Change


Total trading-related assets									$	536,125		$	421,698		27	%
Total loans and leases									98,892			78,415			26
Total earning assets									526,585			447,350			18
Total assets									776,929			616,609			26
Total deposits									54,941			53,925			2


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~~$68 million to ~~$2.1 billion for the three months ended March 31, 2021 compared~~$926 million primarily due to ~~the same period in 2020.~~higher revenue (net of lower net DVA losses), partially offset by higher noninterest expense. Net DVA losses were $2$20 million compared to ~~gains of $300~~$116 million ~~during~~in the ~~same period in 2020.~~prior-year period. Excluding net DVA, net income ~~increased $579~~decreased $5 million to ~~$2.1 billion. These increases were~~$941 million. The decrease was primarily driven by

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

Revenue increased ~~$1.0 billion~~$236 million to ~~$6.2~~$4.5 billion primarily driven by higher sales and trading revenue and investment banking ~~fees.~~income. Sales and trading revenue increased ~~$443~~$390 million, and excluding net DVA, increased ~~$745~~$294 million. These increases were driven by higher revenue in ~~Fixed Income, Currencies and Commodities (FICC) and Equities.~~

~~The provision for credit losses improved $112 million to a benefit of $5 million primarily due to the improved macroeconomic outlook.~~Equities, partially offset by lower revenue in FICC.

Noninterest expense increased ~~$612~~$150 million to ~~$3.4~~$3.3 billion driven by ~~volume-related~~higher activity-based expenses ~~in both card and~~for sales and ~~trading, as well as an acceleration in expenses from incentive compensation award changes.~~trading.

Average total assets increased ~~$10.2~~$124.0 billion to $723.3 billion for the three months ended March 31, 2021 compared 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 billion from December 31, 2020


						~~Bank of America~~16

~~to $745.7~~$804.9 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 2210 percent, up from 199 percent, reflecting higher 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 9.

11.

Nine-Month Comparison

Net income for Global Markets decreased $573 million to $3.9 billion. Net DVA losses were $56 million compared to $77 million in the prior-year period. Excluding net DVA, net income decreased $589 million to $3.9 billion. These decreases were primarily driven by higher noninterest expense.

Revenue increased $578 million to $15.4 billion primarily driven by higher investment banking income and sales and trading revenue. Sales and trading revenue increased $243 million, and excluding net DVA, increased $222 million driven by higher revenue in Equities, partially offset by a decline in FICC revenue. Noninterest expense increased $1.6 billion to $10.2 billion, primarily driven by higher costs associated with processing transactional card claims related to state unemployment benefits, activity-based expenses for sales and trading, and an acceleration in expenses from incentive compensation award changes.

The provision for credit losses decreased $200 million primarily due to an improved macroeconomic outlook.

Average total assets increased $89.9 billion to $775.6 billion, primarily due to higher client balances in Equities and higher levels of inventory and loan growth in FICC. Period-end total assets increased $160.3 billion since December 31, 2020 to $776.9 billion driven by higher client balances and increased hedging of client activity with stock positions relative to derivatives in Equities, and higher levels of inventory and loan growth in FICC.

The return on average allocated capital was 14 percent, down from 17 percent, reflecting lower net income and an increase in allocated capital.

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 September 30				Nine Months Ended September 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	$	2,009	$	2,019	$	7,188	$	7,905
Equities	Equities	1,836		1,690				Equities	1,605		1,205		5,065		4,105
Total sales and trading revenue	Total sales and trading revenue	$	5,078	$	4,635			Total sales and trading revenue	$	3,614	$	3,224	$	12,253	$	12,010

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	$	2,025	$	2,126	$	7,241	$	7,983
Equities	Equities	1,829		1,664				Equities	1,609		1,214		5,068		4,104
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	$	3,634	$	3,340	$	12,309	$	12,087

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

(2)Includes FTE adjustments of ~~$73~~$99 million and ~~$62~~$232 million for the three and nine months ended ~~March 31,~~September 30, 2021 compared to $38 million and $138 million for the same periods in 2020.

(3) Includes Global Banking sales and trading revenue of ~~$104~~$138 million and ~~$227~~$412 million for the three and nine months ended ~~March 31,~~September 30, 2021 compared to $85 million and $378 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 $16 million and $53 million for the three and nine months ended September 30, 2021 compared to losses of $107 million and $78 million for the same periods in 2020. Equities net DVA losses were $4 million and $3 million for the three and nine months ended September 30, 2021 compared to losses of $9 million and gains ~~were $274~~of $1 million for the ~~three months ended March 31, 2021 and~~same periods in 2020. ~~Equities net DVA gains were $7 million and $26 million for the three months ended March 31, 2021 and 2020.~~


						Bank of America20

Three-Month Comparison

FICC revenue decreased $101 million driven by a weaker trading environment for mortgage and interest rate products, partially offset by improved client flows in foreign exchange. Equities revenue increased ~~$580~~$395 million ~~for the three months ended March 31, 2021 compared to the same period~~driven by growth in ~~2020 reflecting~~client financing activities, a ~~strong~~stronger trading performance and increased client activity.

Nine-Month Comparison

FICC revenue decreased $742 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~~$964 million ~~driven by a strong trading performance~~due to the same factors as described in ~~cash.~~the three-month discussion.

All Other


		Three Months Ended March 31						Three Months Ended September 30						Nine Months Ended September 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	$	65	$	(20)	n/m		$	193	$	3	n/m

Noninterest income (loss)	Noninterest income (loss)	(1,026)		(1,056)		(3)			Noninterest income (loss)	(1,109)		(915)		21	%	(3,661)		(2,182)		68	%
Total revenue, net of interest expense	Total revenue, net of interest expense	(939)		(980)		(4)			Total revenue, net of interest expense	(1,044)		(935)		12		(3,468)		(2,179)		59

Provision for credit losses	Provision for credit losses	(47)		114		(141)			Provision for credit losses	(48)		(18)		n/m		(148)		75		n/m

Noninterest expense	Noninterest expense	307		240		28			Noninterest expense	351		559		(37)		962		1,108		(13)
Loss before income taxes	Loss before income taxes	(1,199)		(1,334)		(10)			Loss before income taxes	(1,347)		(1,476)		(9)		(4,282)		(3,362)		27
Income tax benefit	Income tax benefit	(1,456)		(847)		72			Income tax benefit	(1,293)		(1,774)		(27)		(6,345)		(3,386)		87
Net income (loss)	Net income (loss)	$	257	$	(487)	n/m			Net income (loss)	$	(54)	$	298	(118)		$	2,063	$	24	n/m

Balance Sheet	Balance Sheet								Balance Sheet

		Three Months Ended March 31						Three Months Ended September 30						Nine Months Ended September 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	$	17,581	$	24,243	(27)	%	$	19,190	$	30,218	(36)	%
Total assets (1)	Total assets (1)	207,449		201,501		3			Total assets (1)	187,233		230,906		(19)		193,896		227,430		(15)
Total deposits	Total deposits	14,354		23,560		(39)			Total deposits	13,767		14,881		(7)		14,062		19,926		(29)

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

Total loans and leases	Total loans and leases	$	19,850	$	21,301	(7)	%		Total loans and leases							$	16,880	$	21,301	(21)	%

Total assets (1)	Total assets (1)	204,008		264,139		(23)			Total assets (1)							199,738		264,141		(24)
Total deposits	Total deposits	12,513		12,998		(4)			Total deposits							12,521		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 ~~$1.0~~$1.1 trillion for both the three and ~~$572.2~~nine months ended September 30, 2021 compared to $828.3 billion and $714.2 billion for the ~~three months ended March 31, 2021 and~~same periods in 2020, and period-end allocated assets were ~~$1.1~~$1.2 trillion and $977.7 billion at ~~March 31,~~September 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

~~Results for~~Net income decreased ~~All Other~~$352 million ~~improved $744 million~~ to ~~net income of $257 million from~~ a ~~net~~ loss of ~~$487~~$54 million driven by a decrease in the ~~prior-year period, driven by improvement in provision for credit losses~~income tax benefit and lower revenue, partially offset by ~~higher~~lower noninterest expense.

~~The provision~~Revenue decreased $109 millionprimarily due to higher partnership losses for ~~credit losses improved $161 million to a benefit of $47~~ESG investments.

Noninterest expense decreased $208 million primarily due to ~~an improved macroeconomic outlook.~~

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

The income tax benefit ~~increased $609~~decreased $481 million ~~reflecting a higher level~~primarily due to the impact of ~~income~~the 2020 U.K. tax ~~credits associated with increased ESG investment activities.~~law change in the prior year. Both periods included income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking.

Nine-Month Comparison

Net income increased $2.0 billion to $2.1 billion primarily due to a higher income tax benefit, partially offset by lower revenue.

Revenue decreased $1.3 billionprimarily due to a $704 million gain on sales of certain mortgage loans in the prior-year period, higher partnership losses for ESG investments and lower market making and similar activities.

The provision for credit losses improved $223 million to a benefit of $148 million primarily due to an improved macroeconomic outlook.

Noninterest expense decreased $146 million primarily due to the same factor as described in the three-month discussion.

The income tax benefit increased $3.0 billion primarily due to the impact of the U.K. tax law changes, and higher levels of income tax credits from increased ESG investment activities. For more information on U.K. tax law changes, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements. 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 our ~~2020~~2021 CCAR capital plan and related supervisory stress tests submitted in the second quarter of 2021, we are subject to a 2.5 percent ~~stress capital buffer (SCB)~~SCB, unchanged from the prior 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~~those restrictions would end as of July 1, 2021 for large banks, including the ~~first quarter of 2021,~~Corporation, and large banks would be ~~permitted~~subject to ~~pay common stock dividends at existing rates and~~the normal restrictions under the Federal Reserve's SCB framework. Pursuant 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,~~Board’s authorization on April 15, 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~~third quarter of 2021, we repurchased ~~$3.5~~$9.9 billion of common stock, including repurchases to offset shares awarded under equity-based compensation plans during the period.

~~On April 15,~~October 20, 2021, the Corporation announced that the Board ~~authorized~~renewed the ~~repurchase of up to~~Corporation’s $25 billion of common stock ~~over time.~~repurchase program previously announced in April 2021. The Board’s authorization replaces the previous program. As with the April authorization, the Board also authorized common stock repurchases to offset shares awarded under the Corporation’s 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.

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,~~September 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)


						Bank of America22

surcharge. The buffers and surcharge must be comprised solely 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,~~September 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)			September 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			$	174,407		$	174,407
Tier 1 capital	Tier 1 capital		201,224			201,224						Tier 1 capital			197,842			197,842
Total capital (3)	Total capital (3)		236,000			227,693						Total capital (3)			230,506			223,997
Risk-weighted assets (in billions)	Risk-weighted assets (in billions)		1,508			1,365						Risk-weighted assets (in billions)			1,568			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			11.1		%	12.6		%	9.5	%
Tier 1 capital ratio	Tier 1 capital ratio		13.3			14.7			11.0			Tier 1 capital ratio			12.6			14.3			11.0
Total capital ratio	Total capital ratio		15.6			16.7			13.0			Total capital ratio			14.7			16.2			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)			$	3,000		$	3,000
Tier 1 leverage ratio	Tier 1 leverage ratio		7.2		%	7.2		%	4.0			Tier 1 leverage ratio			6.6		%	6.6		%	4.0

Supplementary leverage exposure (in billions) (5)	Supplementary leverage exposure (in billions) (5)					$	2,868					Supplementary leverage exposure (in billions) (5)						$	3,516
Supplementary leverage ratio	Supplementary leverage ratio					7.0		%	5.0			Supplementary leverage ratio						5.6		%	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,~~September 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,~~September 30, 2021 and December 31, 2020. At ~~March 31,~~September 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 September 30, 2021.


23Bank of America

At ~~March 31,~~September 30, 2021, CET1 capital was ~~$177.8~~$174.4 billion, ~~an increase~~a decrease of ~~$1.1~~$2.3 billion from December 31, 2020, driven ~~by earnings, partially offset~~ by common stock repurchases, dividends and lower net unrealized gains on available-for-sale (AFS) debt securities included in accumulated other comprehensive income (OCI)., partially offset by earnings. Tier 1 capital decreased $2.3 billion primarily driven by the same factors as CET1 capital. Total capital under the Standardized approach decreased ~~$1.9~~$7.4 billion primarily ~~driven by~~due to the same factors driving the decrease in CET1 capital, and 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,~~September 30, 2021,

increased ~~$28.3~~$88.3 billion during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 to ~~$1,508~~$1,568 billion primarily due to strong client activity in Global Marketsand ~~investments~~an increase in debt securities resulting from the deployment of ~~excess liquidity.~~cash received from deposit inflows. Supplementary leverage exposure at September 30, 2021 increased $729.9 billion during the nine months ended September 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 and an increase in debt securities resulting from the deployment of cash received from deposit inflows.


						~~Bank of America~~20

Table 89 shows the capital composition at ~~March 31,~~September 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)		September 30 2021		December 31 2020

Total common shareholders’ equity	Total common shareholders’ equity		$	249,681	$	248,414	Total common shareholders’ equity		$	249,023	$	248,414
CECL transitional amount (1)	CECL transitional amount (1)		3,544		4,213		CECL transitional amount (1)		2,722		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		(7,638)		(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		(1,644)		(1,617)
Defined benefit pension plan net assets	Defined benefit pension plan net assets		(1,181)		(1,164)		Defined benefit pension plan net assets		(1,223)		(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		1,477		1,753
Other	Other		193		(601)		Other		328		(601)
Common equity tier 1 capital	Common equity tier 1 capital		177,789		176,660		Common equity tier 1 capital		174,407		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		(5)		(1)
Tier 1 capital	Tier 1 capital		201,224		200,096		Tier 1 capital		197,842		200,096
Tier 2 capital instruments	Tier 2 capital instruments		21,137		22,213		Tier 2 capital instruments		21,756		22,213
Qualifying allowance for credit losses(2)	Qualifying allowance for credit losses(2)		13,642		15,649		Qualifying allowance for credit losses(2)		11,177		15,649
Other	Other		(3)		(22)		Other		(269)		(22)
Total capital under the Standardized approach	Total capital under the Standardized approach		236,000		237,936		Total capital under the Standardized approach		230,506		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)		(6,509)		(10,251)
Total capital under the Advanced approaches	Total capital under the Advanced approaches		$	227,693	$	227,685	Total capital under the Advanced approaches		$	223,997	$	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,~~September 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)		September 30, 2021				December 31, 2020
Credit risk	Credit risk		$	1,444	$	888	$	1,420	$	896	Credit risk		$	1,506	$	901	$	1,420	$	896
Market risk	Market risk		64		63		60		60		Market risk		62		62		60		60
Operational risk	Operational risk		n/a		372		n/a		372		Operational risk		n/a		375		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		42		n/a		43
Total risk-weighted assets	Total risk-weighted assets		$	1,508	$	1,365	$	1,480	$	1,371	Total risk-weighted assets		$	1,568	$	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,~~September 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)		September 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		$	173,710		$	173,710
Tier 1 capital	Tier 1 capital		166,685			166,685						Tier 1 capital		173,710			173,710
Total capital (3)	Total capital (3)		181,994			172,785						Total capital (3)		186,588			179,901
Risk-weighted assets (in billions)	Risk-weighted assets (in billions)		1,230			1,002						Risk-weighted assets (in billions)		1,288			1,012
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio		13.5		%	16.6		%		7.0	%	Common equity tier 1 capital ratio		13.5		%	17.2		%	7.0	%
Tier 1 capital ratio	Tier 1 capital ratio		13.5			16.6				8.5		Tier 1 capital ratio		13.5			17.2			8.5
Total capital ratio	Total capital ratio		14.8			17.2				10.5		Total capital ratio		14.5			17.8			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)		$	2,329		$	2,329
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)					$	2,736
Supplementary leverage ratio	Supplementary leverage ratio					6.5		%		6.0		Supplementary leverage ratio					6.3		%	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			170,922
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,~~September 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,~~September 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,~~September 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)		September 30, 2021
Total eligible balance	Total eligible balance		$	404,440				$	195,323					Total eligible balance		$	434,224				$	226,431
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	%	14.4		%	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)		12.4			9.5		6.4			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,~~September 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,~~September 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 September 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.~~Office of the Comptroller of the Currency. At ~~March 31,~~September 30, 2021, the Corporation’s SLR was ~~7.0 percent. Excluding the temporary relief, the SLR would have been approximately 6.1~~5.6 percent, which ~~is 1.1 percent, or $35 billion, in excess of~~exceeds the 5.0 percent minimum 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,~~September 30, 2021, BofAS had

tentative net capital of ~~$15.2~~$19.2 billion. BofAS also had regulatory net capital of ~~$12.2~~$16.6 billion, which exceeded the minimum requirement of ~~$2.9~~$3.1 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,~~September 30, 2021, MLPCC’s regulatory net capital of ~~$5.9~~$5.0 billion exceeded the minimum requirement of ~~$1.4~~$1.5 billion.

MLPF&S provides retail services. At ~~March 31,~~September 30, 2021, MLPF&S' regulatory net capital was ~~$3.5~~$4.8 billion, which exceeded the minimum requirement of ~~$175~~$189 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,~~September 30, 2021, MLI’s capital resources were ~~$33.9~~$33.7 billion, which exceeded the minimum Pillar 1 requirement of ~~$14.3~~$14.2 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,~~September 30, 2021, BofASE's capital resources were ~~$5.8~~$7.0 billion, which exceeded the minimum Pillar 1 requirement of ~~$2.2~~$3.1 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 can use to meet our contractual and contingent financial


						Bank of America26

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~~The parent company, which is a separate and distinct legal entity from our bank and nonbank subsidiaries, has an intercompany arrangement with our wholly-owned holding company subsidiary, NB Holdings Corporation (NB Holdings). We have transferred, and agreed to transfer, ~~certain~~ additional parent company assets not ~~needed~~required to satisfy anticipated near-term expenditures to NB ~~Holdings Corporation, a wholly-owned holding company subsidiary (NB Holdings).~~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~~our debt, pay dividends and perform other obligations as it would have had ~~if it had~~we 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,~~September 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)		September 30 2021		December 31 2020
Bank entities	Bank entities		$	858	$	773	Bank entities		$	960	$	773
Nonbank and other entities (1)	Nonbank and other entities (1)		145		170		Nonbank and other entities (1)		160		170
Total Average Global Liquidity Sources	Total Average Global Liquidity Sources		$	1,003	$	943	Total Average Global Liquidity Sources		$	1,120	$	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~~$318 billion and $306 billion at ~~March 31,~~September 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,~~September 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)		September 30 2021	December 31 2020
Cash on deposit	Cash on deposit		$	276		$	322	Cash on deposit		$	241		$	322
U.S. Treasury securities	U.S. Treasury securities		206			141		U.S. Treasury securities		265			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		596			462
Non-U.S. government securities	Non-U.S. government securities		19			18		Non-U.S. government securities		18			18
Total Average Global Liquidity Sources	Total Average Global Liquidity Sources		$	1,003		$	943	Total Average Global Liquidity Sources		$	1,120		$	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~~$612 billion and $584 billion for the three months ended ~~March 31,~~September 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~~$1.96 trillion and $1.80 trillion at ~~March 31,~~September 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~~nine months ended ~~March 31,~~September 30, 2021, we issued ~~$13.1~~$65.5 billion of long-term debt consisting of ~~$8.1~~$49.8 billion of notes issued by Bank of America Corporation, substantially all of which was TLAC compliant, ~~$1.3~~$6.2 billion of notes issued by Bank of America, N.A. and ~~$3.7~~$9.5 billion of other debt.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2021, we had total long-term debt maturities and redemptions in the aggregate of ~~$13.9~~$38.5 billion consisting of ~~$9.6~~$21.3 billion for Bank of America Corporation, ~~$922 million~~$8.0 billion for Bank of America, N.A. and ~~$3.4~~$9.2 billion of other debt. Table 1415 presents the carrying value of aggregate annual contractual maturities of long-term debt at ~~March 31,~~September 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)		$	—	$	5,759	$	23,451	$	23,642	$	19,800	$	138,303	$	210,955
Senior structured notes	Senior structured notes		298		1,984		597		355		416		11,819		15,469		Senior structured notes		80		1,937		594		292		412		11,384		14,699
Subordinated notes	Subordinated notes		372		399		—		3,334		5,475		14,125		23,705		Subordinated notes		354		—		—		3,300		5,434		16,064		25,152
Junior subordinated notes	Junior subordinated notes		—		—		—		—		—		740		740		Junior subordinated notes		—		—		—		—		—		741		741
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		434		7,696		24,045		27,234		25,646		166,492		251,547
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		—		3,245		504		—		—		1		3,750
Subordinated notes	Subordinated notes		—		—		—		—		—		1,739		1,739		Subordinated notes		—		—		—		—		—		1,775		1,775
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		203		1		—		16		72		792
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)		—		1,249		999		999		—		84		3,331
Other	Other		63		17		160		1		22		59		322		Other		7		67		316		66		153		21		630
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.		507		4,764		1,820		1,065		169		1,953		10,278
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		1,105		3,777		2,507		1,733		671		6,503		16,296
Nonbank VIEs (2)	Nonbank VIEs (2)		1		—		—		—		—		531		532		Nonbank VIEs (2)		1		—		—		—		—		499		500
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		1,106		3,777		2,507		1,733		671		7,002		16,796
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		$	2,047	$	16,237	$	28,372	$	30,032	$	26,486	$	175,447	$	278,621

(1) Total includes ~~$141.0~~$177.2 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~~$15.1 billion, ~~$14.4~~$17.0 billion, ~~$11.5~~$16.0 billion and ~~$12.9~~$15.2 billion during each year of 2022 through 2025, respectively, and ~~$81.0~~$111.4 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 $11.7~~increased $15.7 billion to ~~$251.2~~$278.6 billion during the ~~three~~nine months ended ~~March 31,~~September 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~~nine months ended ~~March 31,~~September 30, 2021, we issued ~~$1.1~~$4.3 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.~~46.


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

The ~~current~~ ratings from Standard & Poor’s Global Ratings (S&P) and ~~Stable outlooks~~Fitch Ratings (Fitch) for the Corporation and its subsidiaries have not changed from those disclosed in the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.

The ratings from Moody's Investors Service ~~Standard &~~

~~Poor’s Global Ratings~~for the Corporation and ~~Fitch Ratings did~~its subsidiaries have not ~~change~~changed 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, BAC Capital Trust XIV and BAC Capital Trust ~~XIV,~~XV, Delaware statutory trusts, is a 100 percent owned finance subsidiary of the Corporation that has issued and sold trust preferred securities or capital securities, as applicable, that remained outstanding at ~~March 31,~~September 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. For purposes of the discussion in such section in the Corporation’s 2020 Annual Report on Form 10-K, the term “Trusts” shall be deemed to include BAC Capital Trust XV, and the term “Trust Preferred Securities” shall be deemed to include the capital securities issued and sold by BAC Capital Trust XV that remained outstanding at September 30, 2021.

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,~~41, Allowance for Credit Losses on page ~~38,~~42, and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

During the ~~three~~nine months ended ~~March 31,~~September 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~~have benefited from various forms of government support through economic stimulus packages enacted in 2020 and 2021. While there has been significant economic improvement in comparison to 2020, uncertainty remains about the timing and strength of the economy's recovery, which may also be hampered by supply chain disruptions and inflationary pressures

that 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~~nine months ended ~~March 31,~~September 30, 2021, with the U.S. unemployment rate continuing to decline and home prices increasing. During the three and nine months ended ~~March 31,~~September 30, 2021, ~~deferral activity led to an increase in nonperforming loans, while~~ net charge-offs decreased ~~$179~~$235 million and $635 million to ~~$693~~$329 million and $1.5 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 nine months ended September 30, 2021, nonperforming loans increased due to deferral activity.

The consumer allowance for loan and lease losses decreased ~~$1.4~~$2.9 billion during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 to ~~$8.6~~$7.2 billion primarily due to ~~an improved~~improvements in the economic outlook and ~~loan balance declines.~~credit quality. For


29Bank of America

more information, see Allowance for Credit Losses on page ~~38.~~42.

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 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)		September 30 2021		December 31 2020		September 30 2021			December 31 2020			September 30 2021			December 31 2020
Residential mortgage (2)	Residential mortgage (2)		$	214,779	$	223,555	$	2,366		$	2,005		$	728		$	762		Residential mortgage (2)		$	216,940	$	223,555	$	2,296		$	2,005		$	648		$	762
Home equity	Home equity		32,078		34,311		669			649			—			—			Home equity		29,000		34,311		676			649			—			—
Credit card	Credit card		72,786		78,708		n/a			n/a			755			903			Credit card		76,869		78,708		n/a			n/a			450			903
Direct/Indirect consumer (3)	Direct/Indirect consumer (3)		91,737		91,363		56			71			25			33			Direct/Indirect consumer (3)		99,845		91,363		45			71			8			33
Other consumer	Other consumer		132		124		—			—			—			—			Other consumer		202		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		$	422,856	$	428,061	$	3,017		$	2,725		$	1,106		$	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)		616		735
Total consumer loans and leases	Total consumer loans and leases		$	412,205	$	428,796													Total consumer loans and leases		$	423,472	$	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		0.71		%	0.64		%	0.26		%	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		0.74			0.65			0.11			0.22

(1)Outstandings include non-core residential mortgage of ~~$7.8~~$6.7 billion and $8.3 billion and home equity of ~~$3.8~~$3.4 billion and $4.0 billion at ~~March 31,~~September 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,~~September 30, 2021 and December 31, 2020, residential mortgage includes ~~$527~~$466 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~~$182 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~~$47.2 billion and $46.4 billion, U.S. securities-based lending loans of ~~$42.4~~$48.7 billion and $41.1 billion and non-U.S. consumer loans of ~~$3.1~~$3.0 billion and $3.0 billion at ~~March 31,~~September 30, 2021 and December 31, 2020.

(4)Consumer loans accounted for under the fair value option include residential mortgage loans of ~~$275~~$241 million and $298 million and home equity loans of ~~$418~~$375 million and $437 million at ~~March 31,~~September 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,~~September 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 September 30			Nine Months Ended September 30				Three Months Ended September 30				Nine Months Ended September 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		$	(7)	$	(6)	$	(17)	$	(27)	(0.01)	%	(0.01)	%	(0.01)	%	(0.02)	%
Home equity	Home equity		(35)		(11)		(0.42)		(0.11)			Home equity		(34)		(20)		(93)		(45)		(0.46)		(0.21)		(0.40)		(0.16)
Credit card	Credit card		634		770		3.47		3.28			Credit card		321		509		1,443		1,944		1.69		2.49		2.59		2.97

Direct/Indirect consumer	Direct/Indirect consumer		31		40		0.14		0.18			Direct/Indirect consumer		(18)		18		4		84		(0.07)		0.08		0.01		0.13
Other consumer	Other consumer		67		74		n/m		n/m			Other consumer		67		63		198		214		n/m		n/m		n/m		n/m
Total	Total		$	693	$	872	0.67		0.75			Total		$	329	$	564	$	1,535	$	2,170	0.31		0.50		0.49		0.64

(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,~~September 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~~$6.6 billion during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 as paydowns were partially offset by originations.

At ~~March 31,~~September 30, 2021 and December 31, 2020, the residential mortgage portfolio included ~~$12.0~~$12.6 billion and $11.8 billion of outstanding fully-insured loans, of which ~~$2.6~~$2.3 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)		September 30 2021			December 31 2020			September 30 2021			December 31 2020
Outstandings	Outstandings		$	214,779		$	223,555		$	202,812		$	211,737		Outstandings		$	216,940		$	223,555		$	204,316		$	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		1,752			2,314			822			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		648			762			—			—
Nonperforming loans (2)	Nonperforming loans (2)		2,366			2,005			2,366			2,005			Nonperforming loans (2)		2,296			2,005			2,296			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)			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 million, or 19 percent, and $503 million, or 25 percent, of nonperforming residential mortgage loans at March 31, 2021 and December 31, 2020.~~

Nonperforming outstanding balances in the residential mortgage portfolio increased ~~$361~~$291 million during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 primarily driven by deferral activity. Of the nonperforming residential mortgage loans at ~~March 31,~~September 30, 2021, $1.3 billion, or 5355 percent, were current on contractual payments. Loans accruing past due 30 days or more decreased ~~$88 million.~~$402 million driven by continued improvement in credit quality.

Net recoveries of $4$7 million and $17 million for the three and nine months ended ~~March 31,~~September 30, 2021 remained relatively unchanged compared to the same ~~period~~periods in ~~2020.~~the prior year.

Of the ~~$202.8~~$204.3 billion in total residential mortgage loans outstanding at ~~March 31,~~September 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~~$5.1 billion, or 10nine percent, at ~~March 31,~~September 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,~~September 30, 2021, ~~$113~~$61 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,~~$822 million, or less than one percent, for the

entire residential mortgage portfolio. In addition, at ~~March 31,~~September 30, 2021, ~~$302~~$287 million, or ~~five~~six percent, of outstanding interest-only residential mortgage loans that had entered the amortization period were nonperforming, of which ~~$112~~$107 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 9897 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,~~September 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,~~September 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									September 30 2021					December 31 2020				September 30 2021			December 31 2020			Three Months Ended September 30							Nine Months Ended September 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			$	75,884				$	83,185		$	708				$	(3)			$	(5)			$	(10)			$	(16)
New York	New York		23,716		23,832				329				272					2				1						New York						24,402				23,832			351			272			—				1				2				2
Florida	Florida		12,900		13,017				193				175					(2)				(2)						Florida				13,524				13,017			160			175			(1)				(1)				(5)				(4)
Texas	Texas		8,662		8,868				92				78					—				—						Texas				8,810				8,868			91			78			—				—				—				—
New Jersey	New Jersey		8,454		8,806				112				98					—				—						New Jersey				8,526				8,806			108			98			—				(1)				—				(1)
Other	Other		72,026		74,029				893				812					(2)				3						Other				73,170				74,029			878			812			(3)				—				(4)				(8)
Residential mortgage loans	Residential mortgage loans		$	202,812	$	211,737			$	2,366			$	2,005				$	(4)			$	(1)					Residential mortgage loans				$	204,316			$	211,737		$	2,296		$	2,005		$	(7)			$	(6)			$	(17)			$	(27)
Fully-insured loan portfolio	Fully-insured loan portfolio		11,967		11,818																							Fully-insured loan portfolio				12,624				11,818

Total residential mortgage loan portfolio	Total residential mortgage loan portfolio		$	214,779	$	223,555																						Total residential mortgage loan portfolio				$	216,940			$	223,555

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


31Bank of America

Home Equity

At ~~March 31,~~September 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,~~September 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~~$5.3 billion


						~~Bank of America~~28

during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 primarily due to paydowns outpacing new

originations and draws on existing lines. Of the total home equity portfolio at ~~March 31,~~September 30, 2021 and December 31, 2020, ~~$13.2~~$12.4 billion, or 4143 percent, and $13.8 billion, or 40 percent, were in first-lien positions. At ~~March 31,~~September 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~~$4.8 billion, or 17 percent of our total home equity portfolio.

Unused HELOCs totaled ~~$41.6~~$40.8 billion and $42.3 billion at ~~March 31,~~September 30, 2021 and December 31, 2020. The HELOC utilization rate was 4240 percent and 43 percent at ~~March 31,~~September 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)							September 30 2021		December 31 2020
Outstandings	Outstandings							$	32,078		$	34,311			Outstandings							$	29,000	$	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)							165	186
Nonperforming loans (2, 3)	Nonperforming loans (2, 3)							669			649				Nonperforming loans (2, 3)							676		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)							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~~$26 million and $25 million and nonperforming loans include ~~$92~~$86 million and $88 million of loans where we serviced the underlying first lien at ~~March 31,~~September 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 36 percent of nonperforming home equity loans at both March 31, 2021 and December 31, 2020.~~

Nonperforming outstanding balances in the home equity portfolio increased ~~$20~~$27 million during the ~~three~~nine months ended ~~March 31,~~September 30, 2021, ~~primarily driven by COVID-19 deferral activity~~.as new additions outpaced returns to performing status and paydowns. Of the nonperforming home equity loans at ~~March 31,~~September 30, 2021, ~~$261~~$273 million, or 3940 percent were current on contractual payments. In addition, ~~$252~~$256 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~~$21 million during the ~~three~~nine months ended ~~March 31,~~September 30, 2021.

Net recoveries increased ~~$24~~$14 million to ~~$35~~$34 million and $48 million to $93 million for the three and nine months ended ~~March 31,~~September 30, 2021 compared to the same ~~period~~periods in ~~2020~~2020. The increase was driven by favorable portfolio trends due in part to improvement in home prices.

Of the ~~$32.1~~$29.0 billion in total home equity portfolio outstandings at ~~March 31,~~September 30, 2021, as shown in Table ~~20, 15~~21, 14 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~~$7.4 billion at ~~March 31,~~September 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,~~September 30, 2021, ~~$109~~$103 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,~~September 30, 2021, $484 million, or ~~six~~seven 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,~~September 30, 2021, 1820 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,~~September 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,~~September 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							September 30 2021			December 31 2020				September 30 2021			December 31 2020				Three Months Ended September 30								Nine Months Ended September 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			$	7,886		$	9,488			$	149					$	(9)			$	(8)			$	(31)			$	(17)
Florida	Florida		3,492		3,715				80			80		(6)		(3)							Florida			3,113				3,715				83				80				(5)				(2)				(16)				(7)
New Jersey	New Jersey		2,588		2,749				71			67		(2)		—						New Jersey		2,346					2,749			72				67				(1)				—				(3)				(1)
New York	New York		2,363		2,495				107			103		(3)		1						New York		2,157				2,495			101				103				(2)				(1)				(3)				—
Massachusetts	Massachusetts		1,601		1,719				34			32		1		1						Massachusetts		1,484				1,719			33				32				(2)				—				(2)				1
Other	Other		13,223		14,145				232			224		(13)		(5)						Other		12,014				14,145			238				224				(15)				(9)				(38)				(21)
Total home equity loan portfolio	Total home equity loan portfolio		$	32,078	$	34,311			$	669		$	649	$	(35)	$	(11)					Total home equity loan portfolio		$	29,000			$	34,311		$	676			$	649			$	(34)			$	(20)			$	(93)			$	(45)

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

Credit Card

At ~~March 31,~~September 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~~$1.8 billion during the nine months ended September 30, 2021 to $76.9 billion as increased payments more than offset higher purchase volumes as spending continued to recover. Net charge-offs decreased $188 million to $321 million and $501 million to $1.4 billion during the three and nine 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,~~September 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

~~associated~~ of certain loans with deferrals that expired in 2020. Credit card loans 30 days or more past due and still accruing interest decreased ~~$372~~$755 million, and loans 90 days or more past due and still accruing interest decreased ~~$148~~$453 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~~$359.0 billion at ~~March 31,~~September 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										September 30 2021	December 31 2020			September 30 2021			December 31 2020				Three Months Ended September 30									Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)										2021							2020			(Dollars in millions)						September 30 2021						December 31 2020				2021					2020				2021					2020
California	California		$	11,632			$	12,543				$	141	$	166	$	119					$	136						California		$	12,248					$	12,543								$	60				$	92				$	273				$	347
Florida	Florida		7,144		7,666				111			135		91					101									Florida		7,504				7,666					64				135					46					66					205					252
Texas	Texas		6,112		6,499				71			87		58					65							Texas		6,483			6,499				44					87				30					45					132					166
New York	New York		4,254		4,654				57			76		54					60							New York		4,488			4,654				32					76				24					43					116					154
Washington	Washington		3,462		3,685				18			21		15					18							Washington		3,840			3,685				12					21				7					12					32					47
Other	Other		40,182		43,661				357			418		297					390							Other		42,306			43,661				217					418				154					251					685					978
Total credit card portfolio	Total credit card portfolio		$	72,786	$	78,708			$	755		$	903	$	634				$	770						Total credit card portfolio		$	76,869		$	78,708			$	450				$	903			$	321				$	509				$	1,443				$	1,944

(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,~~September 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 $8.5 billion during the nine months ended September 30, 2021 ~~at $91.7 billion.~~to $99.8 billion driven by client demand for liquidity and high asset values in the securities-based lending portfolio.


33Bank of America

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											September 30 2021				December 31 2020			September 30 2021				December 31 2020				Three Months Ended September 30								Nine Months Ended September 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			$	14,225			$	12,248			$	1			$	6			$	(2)			$	2			$	3	$	13
Florida	Florida		11,132		10,891				3		4								3		7									Florida			12,590			10,891				1				4				(2)				3				—				14
Texas	Texas		8,939		8,981				4		6								5		6								Texas			9,402			8,981				1				6				(4)				4				2				13
New York	New York		6,754		6,609				2		2								3		2								New York			7,511			6,609				1				2				1				2				4				6
New Jersey	New Jersey		3,563		3,572				1		—								—		—								New Jersey			3,988			3,572				—				—				—				—				(1)				1
Other	Other		48,890		49,062				12		15								13		19								Other			52,129			49,062				4				15				(11)				7				(4)				37
Total direct/indirect loan portfolio	Total direct/indirect loan portfolio		$	91,737	$	91,363			$	25	$	33							$	31	$	40							Total direct/indirect loan portfolio			$	99,845		$	91,363			$	8			$	33			$	(18)			$	18			$	4			$	84


						~~Bank of America~~30

Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

Table 2425 presents nonperforming consumer loans, leases and foreclosed properties activity for the three and nine months ended ~~March 31,~~September 30, 2021 and 2020. During the ~~three~~nine months ended ~~March 31,~~September 30, 2021, nonperforming consumer loans increased ~~$366~~$292 million to ~~$3.1~~$3.0 billion primarily driven by consumer real estate deferral activity.

At ~~March 31,~~September 30, 2021, ~~$841~~$857 million, or 2728 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,~~September 30, 2021, $1.6 billion, or 5152 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~~$36 million during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 to ~~$101 million as the Corporation has paused formal loan foreclosure proceedings and foreclosure sales for occupied properties during 2021.~~

$87 million. 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 September 30						Nine Months Ended September 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		$	3,044		$	2,191		$	2,725	$	2,053
Additions	Additions		851			477				Additions		353			587			1,635		1,418
Reductions:	Reductions:									Reductions:
Paydowns and payoffs	Paydowns and payoffs		(123)			(106)				Paydowns and payoffs		(163)			(113)			(446)		(303)
Sales	Sales		(1)			(6)				Sales		(1)			—			(3)		(31)
Returns to performing status (1)	Returns to performing status (1)		(347)			(165)				Returns to performing status (1)		(201)			(291)			(839)		(689)
Charge-offs	Charge-offs		(12)			(27)				Charge-offs		(12)			(13)			(49)		(62)
Transfers to foreclosed properties	Transfers to foreclosed properties		(2)			(22)				Transfers to foreclosed properties		(3)			(4)			(6)		(29)

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		(27)			166			292		304
Total nonperforming loans and leases, September 30										Total nonperforming loans and leases, September 30		3,017			2,357			3,017		2,357
Foreclosed properties, September 30 (2)										Foreclosed properties, September 30 (2)		87			135			87		135
Nonperforming consumer loans, leases and foreclosed properties, September 30										Nonperforming consumer loans, leases and foreclosed properties, September 30		$	3,104		$	2,492		$	3,104	$	2,492
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)		0.71		%	0.54		%
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)		0.73			0.57

(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~~$55 million and ~~$224~~$131 million at ~~March 31,~~September 30, 2021 and 2020.

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


						Bank of America34

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								September 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)		$	1,530	$	2,422	$	3,952	$	1,195	$	2,899	$	4,094
Home equity (3)	Home equity (3)		271		786		1,057		248		836		1,084		Home equity (3)		265		692		957		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		$	1,795	$	3,114	$	4,909	$	1,443	$	3,735	$	5,178

(1)At ~~March 31,~~September 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~~$297 million and $361 million of loans classified as performing.

(2)At ~~March 31,~~September 30, 2021 and December 31, 2020, residential mortgage performing TDRs include ~~$1.4~~$1.3 billion and $1.5 billion of loans that were fully-insured.

(3)At ~~March 31,~~September 30, 2021 and December 31, 2020, home equity TDRs deemed collateral dependent totaled ~~$417~~$390 million and $407 million, and include ~~$236~~$232 million and $216 million of loans classified as nonperforming and ~~$181~~$158 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,~~September 30, 2021 and December 31, 2020, our credit card and other consumer TDR portfolio was ~~$692~~$654 million and $701 million, of which ~~$609~~

$590 million and $614 million were current or less than 30 days past due under the modified terms.

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.~~39.

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~~nine months ended ~~March 31,~~September 30, 2021, commercial ~~asset~~credit 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~~$5.2 billion during the nine months ended September 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. Current and future office demand is uncertain as companies evaluate space needs with employment models that utilize a mix of remote and conventional office use.

The commercial allowance for loan and lease losses decreased ~~$1.2~~$2.8 billion during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 to ~~$7.5~~$6.0 billion ~~due primarily to an improved~~driven by improvements in the macroeconomic outlook and ~~loan balance declines.~~credit quality. For more information, see Allowance for Credit Losses on page ~~38.~~42.

Total commercial utilized credit exposure decreased ~~$12.2~~$4.9 billion during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 to ~~$608.1~~$615.4 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,~~September 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

Commercial Utilized (1)
Commercial Unfunded (2, 3, 4)
Total Commercial Committed
(Dollars in millions) March 31
2021 December 31
2020 March 31
2021 December 31
2020 March 31
2021 December 31
2020
Loans and leases $ 490,883 $ 499,065 $ 423,589 $ 404,740 $ 914,472 $ 903,805
Derivative assets (5)
45,898 47,179 — — 45,898 47,179
Standby letters of credit and financial guarantees 34,088 34,616 745 538 34,833 35,154
Debt securities and other investments 21,981 22,618 4,845 4,827 26,826 27,445
Loans held-for-sale 6,776 8,378 14,818 9,556 21,594 17,934
Operating leases 6,292 6,424 — — 6,292 6,424
Commercial letters of credit 1,030 855 297 280 1,327 1,135
Other 1,166 1,168 — — 1,166 1,168
Total $ 608,114 $ 620,303 $ 444,294 $ 419,941 $ 1,052,408 $ 1,040,244


35Bank of America



Table 27	Commercial Credit Exposure by Type

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

(Dollars in millions)		September 30 2021		December 31 2020		September 30 2021		December 31 2020		September 30 2021		December 31 2020
Loans and leases		$	504,264	$	499,065	$	446,891	$	404,740	$	951,155	$	903,805
Derivative assets (5)		40,829		47,179		—		—		40,829		47,179
Standby letters of credit and financial guarantees		33,766		34,616		829		538		34,595		35,154
Debt securities and other investments		20,738		22,618		5,448		4,827		26,186		27,445
Loans held-for-sale		7,440		8,378		24,674		9,556		32,114		17,934
Operating leases		5,885		6,424		—		—		5,885		6,424
Commercial letters of credit		1,299		855		511		280		1,810		1,135
Other		1,146		1,168		—		—		1,146		1,168
Total		$	615,367	$	620,303	$	478,353	$	419,941	$	1,093,720	$	1,040,244

(1)Commercial utilized exposure includes loans of ~~$6.3~~$7.0 billion and $5.9 billion and issued letters of credit with a notional amount of ~~$79~~$86 million and $89 million accounted for under the fair value option at ~~March 31,~~September 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~~$4.9 billion and $3.9 billion at ~~March 31,~~September 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~~$10.3 billion and $10.5 billion at ~~March 31,~~September 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~~$31.2 billion and $42.5 billion at ~~March 31,~~September 30, 2021 and December 31, 2020. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of ~~$39.0~~$39.9 billion and $39.3 billion at ~~March 31,~~September 30, 2021 and December 31, 2020, which consists primarily of other marketable securities.


						~~Bank of America~~32

~~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~~$530 million and commercial reservable criticized

utilized exposure decreased ~~$4.4~~$14.5 billion, which was broad-based across industries. Table 2728 presents our commercial loans and leases portfolio and related credit quality information at ~~March 31,~~September 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)		September 30 2021		December 31 2020		September 30 2021		December 31 2020		September 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		$	295,927	$	288,728	$	909	$	1,243	$	84	$	228
Non-U.S. commercial	Non-U.S. commercial		91,335		90,460		342		418		4		10		Non-U.S. commercial		102,850		90,460		272		418		60		10
Total commercial and industrial	Total commercial and industrial		374,564		379,188		1,570		1,661		103		238		Total commercial and industrial		398,777		379,188		1,181		1,661		144		238
Commercial real estate	Commercial real estate		58,764		60,364		354		404		63		6		Commercial real estate		60,723		60,364		414		404		5		6
Commercial lease financing	Commercial lease financing		16,359		17,098		80		87		20		25		Commercial lease financing		15,044		17,098		70		87		11		25
			449,687		456,650		2,004		2,152		186		269				474,544		456,650		1,665		2,152		160		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)		22,770		36,469		32		75		64		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		497,314		493,119		$	1,697	$	2,227	$	224	$	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)		6,950		5,946
Total commercial loans and leases	Total commercial loans and leases		$	490,883	$	499,065									Total commercial loans and leases		$	504,264	$	499,065

(1)Includes card-related products.

(2)Commercial loans accounted for under the fair value option include U.S. commercial of ~~$4.2~~$4.5 billion and $2.9 billion and non-U.S. commercial of ~~$2.1~~$2.4 billion and $3.0 billion at ~~March 31,~~September 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 nine months ended ~~March 31,~~September 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 September 30	Nine Months Ended September 30					Three Months Ended September 30				Nine Months Ended September 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		$	15	$	154	$	(4)	$	536	0.02	%	0.20	%	—	%	0.23	%
Non-U.S. commercial	Non-U.S. commercial		26		1			0.12		—			Non-U.S. commercial		1		57		41		90		—		0.23		0.06		0.11
Total commercial and industrial	Total commercial and industrial		38		164			0.04		0.16			Total commercial and industrial		16		211		37		626		0.02		0.21		0.01		0.20
Commercial real estate	Commercial real estate		11		6			0.07		0.04			Commercial real estate		—		106		28		169		—		0.66		0.06		0.35
Commercial lease financing	Commercial lease financing		—		5			—		0.10			Commercial lease financing		(1)		24		(1)		60		—		0.53		—		0.43
			49		175			0.04		0.14					15		341		64		855		0.01		0.28		0.02		0.23
U.S. small business commercial	U.S. small business commercial		81		75			0.89		1.95			U.S. small business commercial		119		67		282		215		1.76		0.69		1.16		1.01
Total commercial	Total commercial		$	130	$	250		0.11		0.19			Total commercial		$	134	$	408	$	346	$	1,070	0.11		0.31		0.09		0.27

(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.


						Bank of America36

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~~$14.5 billion during the ~~three~~nine months ended ~~March 31,~~September 30, 2021, which was broad-based across industries. At ~~March 31,~~September 30, 2021 and December 31, 2020, 8285 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)		September 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		$	12,275	3.78	%	$	21,388	6.83	%
Non-U.S. commercial	Non-U.S. commercial		4,384		4.53		5,051		5.03		Non-U.S. commercial		2,904		2.69		5,051		5.03
Total commercial and industrial	Total commercial and industrial		22,592		5.53		26,439		6.40		Total commercial and industrial		15,179		3.51		26,439		6.40
Commercial real estate	Commercial real estate		9,959		16.43		10,213		16.42		Commercial real estate		7,933		12.70		10,213		16.42
Commercial lease financing	Commercial lease financing		693		4.24		714		4.18		Commercial lease financing		404		2.68		714		4.18
			33,244		6.85		37,366		7.59				23,516		4.61		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		626		2.75		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		$	24,142	4.53		$	38,666	7.31

(1)Total commercial reservable criticized utilized exposure includes loans and leases of ~~$32.6~~$22.9 billion and $36.6 billion and commercial letters of credit of ~~$1.7~~$1.2 billion and $2.1 billion at ~~March 31,~~September 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~~

Commercial and Industrial

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

U.S. Commercial

At ~~March 31,~~September 30, 2021, 6362 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 $7.2 billion during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 driven by Global ~~Banking~~Markets. Reservable criticized utilized exposure decreased ~~$3.2~~$9.1 billion, which was broad-based across industries.

Non-U.S. Commercial

At ~~March 31,~~September 30, 2021, 7771 percent of the non-U.S. commercial loan portfolio was managed in Global Banking and 2329 percent in Global Markets. Non-U.S. commercial loans ~~including fair value option loans, was relatively flat~~increased $12.4 billion during the ~~three~~nine months ended ~~March 31, 2021.~~September 30, 2021 primarily in Global Markets. For information on the non-U.S. commercial portfolio, see Non-U.S. Portfolio on page ~~37.~~41.

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~~remained relatively unchanged at $60.7 billion ~~during the three months ended March 31, 2021~~ as ~~paydowns exceeded new originations.~~of September 30, 2021. The portfolio remains diversified across property types and geographic regions. California represented the largest state concentration at 22 percent and 23 percent of the commercial real estate portfolio at ~~both March 31,~~September 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 nine months ended ~~March 31,~~September 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.


37Bank of America

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
(Dollars in millions) March 31
2021 December 31
2020
By Geographic Region
California $ 13,671 $ 14,028
Northeast 11,579 11,628
Southwest 7,824 8,551
Southeast 6,637 6,588
Florida 4,401 4,294
Midwest 2,921 3,483
Illinois 2,676 2,594
Midsouth 2,308 2,370
Northwest 1,697 1,634
Non-U.S. 2,976 3,187
Other (1)
2,074 2,007
Total outstanding commercial real estate loans $ 58,764 $ 60,364
By Property Type
Non-residential
Office $ 17,333 $ 17,667
Industrial / Warehouse 8,312 8,330
Multi-family rental 7,178 7,051
Hotels / Motels 7,100 7,226
Shopping centers / Retail 7,057 7,931
Unsecured 2,310 2,336
Multi-use 1,428 1,460
Other 6,635 7,146
Total non-residential 57,353 59,147
Residential 1,411 1,217
Total outstanding commercial real estate loans $ 58,764 $ 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.



Table 31	Outstanding Commercial Real Estate Loans


(Dollars in millions)		September 30 2021		December 31 2020
By Geographic Region
California		$	13,559	$	14,028
Northeast		13,057		11,628
Southwest		7,762		8,551
Southeast		6,630		6,588
Florida		4,316		4,294
Illinois		2,906		2,594
Midwest		2,487		3,483
Midsouth		2,265		2,370
Northwest		1,574		1,634
Non-U.S.		4,101		3,187
Other		2,066		2,007
Total outstanding commercial real estate loans		$	60,723	$	60,364
By Property Type
Non-residential
Office		$	18,327	$	17,667
Industrial / Warehouse		9,292		8,330
Multi-family rental		7,780		7,051
Shopping centers /Retail		6,642		7,931
Hotel / Motels		6,364		7,226
Unsecured		3,137		2,336
Multi-use		1,294		1,460

Other		6,700		7,146
Total non-residential		59,536		59,147
Residential		1,187		1,217
Total outstanding commercial real estate loans		$	60,723	$	60,364

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~~$8.4 billion and $22.7 billion of PPP loans outstanding at ~~March 31,~~September 30, 2021 and December 31, 2020. The decline of $14.3 billion in PPP loans during the nine months ended September 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,~~September 30, 2021 and December 31, ~~2020. Of the U.S. small business commercial~~2020 and represented 100 percent and 96 percent of net charge-offs 90for the three and nine months ended September 30, 2021 compared to 93 percent ~~were~~for the three and nine months ended September 30, 2020.

~~credit card-related products for both of the three months ended March 31, 2021 and 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 nine months ended ~~March 31,~~September 30, 2021 and 2020. Nonperforming loans do not include loans accounted for under the fair value option. During the ~~three~~nine months ended ~~March 31,~~September 30, 2021, nonperforming commercial loans and leases decreased ~~$156~~$530 million to ~~$2.1~~


						~~Bank of America~~34

$1.7 billion. At ~~March 31,~~September 30, 2021, 82 percent of commercial nonperforming loans, leases and foreclosed properties were secured and 5665 percent were contractually current. Commercial nonperforming loans were carried at ~~approximately 85~~87 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)
Three Months Ended March 31
(Dollars in millions) 2021 2020
Nonperforming loans and leases, January 1 $ 2,227 $ 1,499
Additions 472 781
Reductions:
Paydowns (312) (212)
Sales (22) (16)
Returns to performing status (3)
(28) (16)
Charge-offs (78) (184)
Transfers to loans held-for-sale (188) —
Total net additions (decreases) to nonperforming loans and leases (156) 353
Total nonperforming loans and leases, March 31 2,071 1,852
Foreclosed properties, March 31 36 49
Nonperforming commercial loans, leases and foreclosed properties, March 31 $ 2,107 $ 1,901
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)
0.43 % 0.32 %
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)
0.43 0.33


						Bank of America38



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

		Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)		2021			2020			2021		2020
Nonperforming loans and leases, beginning of period		$	1,863		$	2,202		$	2,227	$	1,499
Additions		275			656			1,250		2,326


Reductions:
Paydowns		(297)			(216)			(873)		(605)
Sales		(29)			(50)			(128)		(76)
Returns to performing status (3)		(82)			(21)			(169)		(45)
Charge-offs		(33)			(367)			(219)		(895)

Transfers to loans held-for-sale		—			(11)			(391)		(11)
Total net additions (reductions) to nonperforming loans and leases		(166)			(9)			(530)		694
Total nonperforming loans and leases, September 30		1,697			2,193			1,697		2,193






Foreclosed properties, September 30		30			45			30		45
Nonperforming commercial loans, leases and foreclosed properties, September 30		$	1,727		$	2,238		$	1,727	$	2,238
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)		0.34		%	0.43		%
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)		0.35			0.44

(1)Balances do not include nonperforming loans held-for-sale of ~~$384~~$279 million and ~~$223~~$184 million at ~~March 31,~~September 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								September 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		$	377	$	776	$	1,153	$	509	$	850	$	1,359
Non-U.S. commercial	Non-U.S. commercial		106		464		570		49		119		168		Non-U.S. commercial		65		30		95		49		119		168
Total commercial and industrial	Total commercial and industrial		590		1,158		1,748		558		969		1,527		Total commercial and industrial		442		806		1,248		558		969		1,527
Commercial real estate	Commercial real estate		156		—		156		137		—		137		Commercial real estate		158		440		598		137		—		137
Commercial lease financing	Commercial lease financing		17		1		18		42		2		44		Commercial lease financing		34		8		42		42		2		44
			763		1,159		1,922		737		971		1,708				634		1,254		1,888		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		$	634	$	1,289	$	1,923	$	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~~$53.5 billion, or ~~one~~five percent, during the ~~three~~nine months ended ~~March 31,~~September 30, 2021 to $1.1 trillion. The increase in commercial committed exposure was concentrated in ~~the Telecommunication services, Finance companies,~~ Asset managers and funds, Finance companies, Capital goods and ~~Software~~Individuals and ~~services~~trusts industry sectors. Increases were partially offset by decreased exposure to the Government and public education and ~~Capital goods~~Automobiles and components 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~~$132.2 billion, increased ~~$5.1~~$31.9 billion, or ~~five~~32 percent, during the ~~three~~nine months

ended ~~March 31, 2021.~~September 30, 2021, which was primarily driven by secured investment grade exposures.

Real estate, our second largest industry concentration with committed exposure of ~~$90.6~~$94.5 billion, ~~decreased $1.8~~increased $2.7 billion, or ~~two~~three percent, during the ~~three~~nine months ended ~~March 31,~~September 30, 2021. For more information on the commercial real ~~estate~~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~~$87.0 billion, ~~decreased $2.6~~increased $6.2 billion, or ~~three~~eight percent, during the ~~three~~nine months ended ~~March 31, 2021.~~September 30, 2021 with the growth largely occurring in building products, machinery and trading companies and distributors.

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)
Commercial
Utilized
Total Commercial
Committed (2)
(Dollars in millions) March 31
2021 December 31
2020 March 31
2021 December 31
2020
Asset managers and funds $ 68,863 $ 68,093 $ 106,681 $ 101,540
Real estate (3)
66,477 69,267 90,604 92,414
Capital goods 37,231 39,911 78,372 80,959
Finance companies 49,483 46,948 76,246 70,004
Healthcare equipment and services 32,022 33,759 56,458 57,880
Government and public education 39,093 41,669 51,381 56,212
Materials 23,506 24,548 50,739 50,792
Retailing 24,843 24,749 48,962 49,710
Consumer services 29,881 32,000 47,503 48,026
Food, beverage and tobacco 22,701 22,871 44,861 44,628
Commercial services and supplies 21,187 21,154 37,830 38,149
Energy 13,602 13,936 32,425 32,983
Transportation 22,044 23,426 32,394 33,444
Utilities 11,681 12,387 29,481 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 12,906 13,144 25,832 24,677
Technology hardware and equipment 9,846 10,515 25,034 24,796
Telecommunication services 8,752 9,411 24,422 15,605
Global commercial banks 21,232 20,751 23,380 22,922
Automobiles and components 11,858 10,956 20,528 20,765
Consumer durables and apparel 8,507 9,232 19,484 20,223
Pharmaceuticals and biotechnology 4,617 5,217 17,410 16,349
Vehicle dealers 13,487 15,028 16,877 18,696
Insurance 6,208 5,921 14,783 13,491
Food and staples retailing 5,499 5,209 10,585 11,810
Financial markets infrastructure (clearinghouses) 4,271 4,939 7,275 8,648
Religious and social organizations 4,598 4,769 6,513 6,759
Total commercial credit exposure by industry $ 608,114 $ 620,303 $ 1,052,408 $ 1,040,244


39Bank of America



Table 34	Commercial Credit Exposure by Industry (1)

		Commercial Utilized				Total Commercial Committed (2)

(Dollars in millions)		September 30 2021		December 31 2020		September 30 2021		December 31 2020
Asset managers & funds		$	84,420	$	67,360	$	132,205	$	100,296
Real estate (3)		67,925		68,967		94,462		91,730
Capital goods		40,501		39,807		87,011		80,815
Finance companies		49,979		46,948		78,110		70,004
Healthcare equipment and services		30,442		33,488		59,632		57,540
Materials		24,629		24,516		53,967		50,757
Government & public education		37,468		41,669		49,730		56,212
Consumer services		27,856		31,993		48,559		47,997
Retailing		22,882		23,700		47,037		48,306
Food, beverage and tobacco		21,813		22,755		44,508		44,417
Commercial Services And Supplies		19,192		21,107		38,222		38,092
Individuals And Trusts		28,379		24,727		38,119		34,036
Energy		14,850		13,930		33,378		32,974
Utilities		14,475		12,387		32,975		29,234
Transportation		21,862		23,126		32,753		33,082
Media		12,450		12,632		26,521		24,120
Technology hardware and equipment		9,866		9,935		25,520		24,196
Software and services		9,553		10,853		24,549		22,524
Global commercial banks		19,017		20,544		21,168		22,595
Consumer durables and apparel		9,028		9,232		20,243		20,223
Telecommunication services		8,435		9,411		19,072		15,605
Pharmaceuticals and biotechnology		4,534		4,830		17,672		15,901
Automobiles and components		9,104		10,792		16,967		20,575
Vehicle dealers		9,282		15,028		15,247		18,696
Insurance		4,977		5,772		13,381		13,277
Food and staples retailing		5,322		5,209		11,424		11,795
Financial markets infrastructure (clearinghouses)		3,680		4,939		5,905		8,648
Religious and social organizations		3,446		4,646		5,383		6,597

Total commercial credit exposure by industry		$	615,367	$	620,303	$	1,093,720	$	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~~$10.3 billion and $10.5 billion at ~~March 31,~~September 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,~~September 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~~$3.7 billion and $4.2 billion. WeFor these same positions, we recorded net losses of ~~$36~~$18 million and $86 million for the three and nine months ended ~~March 31,~~September 30, 2021 compared to net ~~gains~~losses of ~~$229~~$104 million and $106 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~~

losses on the 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.~~44.

Tables 3435 and 3536 present the maturity profiles and the credit exposure debt ratings of the net credit default protection portfolio at ~~March 31,~~September 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				September 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		37	%	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		60		34
Greater than five years	Greater than five years		1		1		Greater than five years		3		1
Total net credit default protection	Total net credit default protection		100	%	100	%	Total net credit default protection		100	%	100	%


						Bank of America 3640


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)		September 30, 2021				December 31, 2020
Ratings (2, 3)	Ratings (2, 3)										Ratings (2, 3)

A	A		$	(315)	7.3	%	$	(250)	6.0	%	A		$	(350)	9.4	%	$	(250)	6.0	%
BBB	BBB		(1,815)		42.1		(1,856)		44.5		BBB		(1,423)		38.3		(1,856)		44.5
BB	BB		(1,327)		30.8		(1,363)		32.7		BB		(854)		23.0		(1,363)		32.7
B	B		(656)		15.2		(465)		11.2		B		(650)		17.5		(465)		11.2
CCC and below	CCC and below		(163)		3.8		(182)		4.4		CCC and below		(138)		3.7		(182)		4.4
NR (4)	NR (4)		(33)		0.8		(54)		1.2		NR (4)		(303)		8.1		(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		$	(3,718)	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,~~September 30, 2021. These exposures accounted for 91 percent and 90 percent of our total non-U.S. exposure at ~~March 31,~~September 30, 2021 and December 31, 2020. Net country exposure for these 20 countries increased ~~$23.1~~$26.1 billion during the ~~three~~nine months ended ~~March 31,~~September 30, 2021. The majority of the increase was due to higher deposits with ~~the~~ central ~~bank of~~banks in Japan and Ireland, and increased corporate exposure in ~~Canada.~~Canada, Spain and Sweden.


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 September 30 2021		Hedges and Credit Default Protection		Net Country Exposure at September 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		$	31,193	$	17,767	$	6,891	$	2,903	$	58,754	$	(1,135)	$	57,619	$	(1,853)
Germany	Germany		30,236		9,504		2,020		3,296		45,056		(1,543)		43,513		(1,390)		Germany		23,506		11,439		1,404		1,704		38,053		(1,775)		36,278		(8,625)
Canada	Canada		8,071		16,428		1,725		2,743		28,967		(376)		28,591		7,457		Canada		8,249		12,936		1,853		3,641		26,679		(363)		26,316		5,182
Japan	Japan		19,846		1,228		2,688		1,852		25,614		(632)		24,982		7,486		Japan		19,811		1,412		2,663		1,921		25,807		(704)		25,103		7,607
France	France		12,356		8,806		1,256		3,013		25,431		(1,025)		24,406		3,615		France		12,673		8,668		1,211		3,012		25,564		(871)		24,693		3,902
Australia	Australia		6,764		5,378		485		2,603		15,230		(323)		14,907		1,820		Australia		8,139		6,462		717		2,767		18,085		(176)		17,909		4,822
China	China		10,315		269		1,152		1,322		13,058		(311)		12,747		(673)		China		10,103		225		954		1,009		12,291		(372)		11,919		(1,501)
Brazil	Brazil		5,707		780		411		4,231		11,129		(291)		10,838		545		Brazil		6,188		1,005		446		4,123		11,762		(180)		11,582		1,289
Netherlands	Netherlands		5,498		4,042		671		803		11,014		(424)		10,590		906		Netherlands		6,006		3,412		861		1,007		11,286		(446)		10,840		1,156
Singapore	Singapore		4,844		335		431		4,057		9,667		(54)		9,613		331		Singapore		3,923		503		302		5,443		10,171		(54)		10,117		835
Switzerland																			Switzerland		5,167		3,084		240		392		8,883		(258)		8,625		1,730
South Korea																			South Korea		5,536		861		678		1,414		8,489		(141)		8,348		(203)
Ireland																			Ireland		6,765		1,021		152		191		8,129		(45)		8,084		3,919
Spain																			Spain		2,715		4,233		461		931		8,340		(393)		7,947		3,131
India	India		5,427		180		493		2,649		8,749		(173)		8,576		765		India		5,596		171		464		1,739		7,970		(190)		7,780		(31)
South Korea			5,253		883		448		2,075		8,659		(154)		8,505		(46)
Switzerland			4,922		2,921		436		267		8,546		(271)		8,275		1,380
Hong Kong	Hong Kong		4,791		565		534		1,154		7,044		(27)		7,017		480		Hong Kong		5,656		225		450		1,143		7,474		(18)		7,456		919
Sweden																			Sweden		1,163		5,355		212		322		7,052		(142)		6,910		4,354
Mexico																			Mexico		4,247		1,374		119		778		6,518		(296)		6,222		(65)
Italy	Italy		2,325		1,415		540		2,746		7,026		(711)		6,315		623		Italy		2,564		1,688		515		1,492		6,259		(563)		5,696		4
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		2,643		1,291		355		364		4,653		(202)		4,451		(516)
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
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		$	171,843	$	83,132	$	20,948	$	36,296	$	312,219	$	(8,324)	$	303,895	$	26,056

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

In light of the global pandemic and considerations related to the ongoing economic recovery, including supply chain disruptions and inflationary pressures, we ~~are monitoring~~continue to manage 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 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.


3741 Bank of America

Allowance for Credit Losses

The allowance for credit losses decreased ~~by $2.7~~$6.0 billion from December 31, 2020 to ~~$18.0~~$14.7 billion at ~~March 31,~~September 30, 2021, which included a ~~$1.2~~$3.1 billion reserve decrease related to the commercial portfolio and a ~~$1.4~~$2.9 billion reserve decrease related to the consumer portfolio. The decreases were primarily driven

by ~~an improved~~improvements in the macroeconomic outlook and ~~loan balance declines.~~credit quality.

~~The table below~~Table 38 presents an allocation of the allowance for credit losses by product type for ~~March 31,~~September 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)		September 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		$	353	2.68	%	0.16	%	$	459	2.44	%	0.21	%
Home equity	Home equity		261		1.61		0.81			399			2.12		1.16		Home equity		202		1.54		0.70		399		2.12		1.16
Credit card	Credit card		7,278		45.00		10.00			8,420			44.79		10.70		Credit card		6,055		46.04		7.88		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		541		4.11		0.54		752		4.00		0.82
Other consumer	Other consumer		51		0.32		n/m			41			0.22		n/m		Other consumer		43		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		7,194		54.70		1.70		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)		3,235		24.59		1.02		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		1,032		7.84		1.00		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		1,621		12.32		2.67		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		73		0.55		0.48		162		0.86		0.95
Total commercial	Total commercial		7,533		46.60		1.55			8,731			46.43		1.77		Total commercial		5,961		45.30		1.20		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		13,155		100.00	%	1.43		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		1,538						1,878
Allowance for credit losses	Allowance for credit losses		$	17,997						$	20,680						Allowance for credit losses		$	14,693					$	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,~~September 30, 2021 and December 31, 2020.

n/m = not meaningful

Net charge-offs for the three and nine months ended ~~March 31,~~September 30, 2021 were ~~$823~~$463 million and $1.9 billion compared to ~~$1.1~~$972 million and $3.2 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~~$2.0 billion ~~reflecting~~to a ~~$1.9~~$624 million benefit, and $15.4 billion ~~provision~~to a $4.1 billion benefit, for the three and nine months ended ~~March 31,~~September 30, 2021 compared to the same ~~period~~periods in 2020. The allowance for credit losses ~~included~~had a reserve release of ~~$2.7~~$6.0 billion for the ~~three~~nine months ended ~~March 31,~~September 30, 2021, primarily driven by ~~an improved~~improvements in the macroeconomic outlook and ~~loan balance declines.~~credit quality. The provision for credit losses for the consumer portfolio, including unfunded lending commitments, decreased ~~$2.8~~$214 million to an expense of $81 million and $6.4 billion to a ~~$756 million provision~~ benefit of $1.4 billion for the three and nine months ended ~~March 31,~~September 30, 2021 compared ~~to the same~~

~~period~~to the same periods in 2020. The provision for credit losses for the commercial portfolio, including unfunded lending commitments, decreased ~~$3.8~~$1.8 billion to a ~~$1.1~~$705 million benefit and $9.0 billion ~~provision~~to a $2.7 billion benefit for the three and nine months ended ~~March 31,~~September 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 nine months ended ~~March 31,~~September 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.


						Bank of America 3842


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

			Three Months Ended March 31						Three Months Ended September 30			Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)		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		$	14,095		$	19,389		$	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		(7)			(5)			(27)			(28)
Home equity	Home equity		(6)			(24)				Home equity		(8)			(8)			(33)			(47)
Credit card	Credit card		(800)			(924)				Credit card		(495)			(665)			(1,956)			(2,407)
Direct/Indirect consumer	Direct/Indirect consumer		(102)			(116)				Direct/Indirect consumer		(59)			(75)			(229)			(277)
Other consumer	Other consumer		(75)			(81)				Other consumer		(72)			(70)			(217)			(232)
Total consumer charge-offs	Total consumer charge-offs		(992)			(1,156)				Total consumer charge-offs		(641)			(823)			(2,462)			(2,991)
U.S. commercial (1)	U.S. commercial (1)		(156)			(267)				U.S. commercial (1)		(159)			(279)			(509)			(870)
Non-U.S. commercial	Non-U.S. commercial		(26)			(1)				Non-U.S. commercial		(2)			(57)			(44)			(91)
Commercial real estate	Commercial real estate		(12)			(7)				Commercial real estate		(4)			(106)			(38)			(170)
Commercial lease financing	Commercial lease financing		—			(7)				Commercial lease financing		—			(28)			—			(68)
Total commercial charge-offs	Total commercial charge-offs		(194)			(282)				Total commercial charge-offs		(165)			(470)			(591)			(1,199)
Total loans and leases charged off	Total loans and leases charged off		(1,186)			(1,438)				Total loans and leases charged off		(806)			(1,293)			(3,053)			(4,190)
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		14			11			44			55
Home equity	Home equity		41			35				Home equity		42			28			126			92
Credit card	Credit card		166			154				Credit card		174			156			513			463
Direct/Indirect consumer	Direct/Indirect consumer		71			76				Direct/Indirect consumer		77			57			225			193
Other consumer	Other consumer		8			7				Other consumer		5			7			19			18
Total consumer recoveries	Total consumer recoveries		299			284				Total consumer recoveries		312			259			927			821
U.S. commercial (2)	U.S. commercial (2)		63			29				U.S. commercial (2)		25			58			231			119

Non-U.S. commercial										Non-U.S. commercial		1			—			3			1
Commercial real estate	Commercial real estate		1			1				Commercial real estate		4			—			10			1
Commercial lease financing	Commercial lease financing		—			2				Commercial lease financing		1			4			1			8
Total commercial recoveries	Total commercial recoveries		64			32				Total commercial recoveries		31			62			245			129
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		343			321			1,172			950
Net charge-offs	Net charge-offs		(823)			(1,122)				Net charge-offs		(463)			(972)			(1,881)			(3,240)

Provision for loan and lease losses	Provision for loan and lease losses		(1,811)			4,525				Provision for loan and lease losses		(475)			1,180			(3,766)			10,480
Other	Other		—			5				Other		(2)			(1)			—			(2)

Allowance for loan and lease losses, March 31			16,168			15,766
Allowance for loan and lease losses, September 30										Allowance for loan and lease losses, September 30		13,155			19,596			13,155			19,596

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		1,687			1,702			1,878			1,123
Provision for unfunded lending commitments	Provision for unfunded lending commitments		(49)			236				Provision for unfunded lending commitments		(149)			209			(339)			787
Other	Other		—			1				Other		—			(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, September 30										Reserve for unfunded lending commitments, September 30		1,538			1,910			1,538			1,910
Allowance for credit losses, September 30										Allowance for credit losses, September 30		$	14,693		$	21,506		$	14,693		$	21,506

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 September 30										Loans and leases outstanding at September 30		$	920,170		$	947,938		$	920,170		$	947,938
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at September 30										Allowance for loan and lease losses as a percentage of total loans and leases outstanding at September 30		1.43		%	2.07		%	1.43		%	2.07		%
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at September 30										Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at September 30		1.70			2.43			1.70			2.43
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at September 30										Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at September 30		1.20			1.75			1.20			1.75
Average loans and leases outstanding	Average loans and leases outstanding		$	901,587		$	981,652			Average loans and leases outstanding		$	913,113		$	965,836		$	905,214		$	989,839
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		0.20		%	0.40		%	0.28		%	0.44		%

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 September 30										Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at September 30		279			431			279			431
Ratio of the allowance for loan and lease losses at September 30 to net charge-offs										Ratio of the allowance for loan and lease losses at September 30 to net charge-offs		7.16			5.07			5.23			4.53

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 September 30 (4)										Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at September 30 (4)		$	7,375		$	10,331		$	7,375		$	10,331
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at September 30 (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 September 30 (4)		123		%	204		%	123		%	204		%

(1)Includes U.S. small business commercial charge-offs of ~~$101~~$137 million and ~~$86~~$343 million for the three and nine months ended ~~March 31,~~September 30, 2021 compared to $77 million and $247 million for the same periods in 2020.

(2)Includes U.S. small business commercial recoveries of ~~$20~~$18 million and ~~$11~~$61 million for the three and nine months ended ~~March 31,~~September 30, 2021 compared to $10 million and $32 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.


43Bank of America

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 ~~March 31,~~September 30, 2021, ~~December 31, 2020~~June 30, 2021 and ~~March 31,~~September 30, 2020 using a 99 percent confidence ~~level.~~level, as well as average daily trading VaR for the nine months ended September 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 for the three months ended ~~March 31,~~September 30, 2021 compared to the ~~prior quarter~~prior-year period primarily due to an increase in 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																									Nine Months Ended September 30
									Nine Months Ended September 30
			March 31, 2021											December 31, 2020							March 31, 2020										September 30, 2021								June 30, 2021									September 30, 2020															Nine Months Ended September 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	$	12	$	13	$	21		$	9	$	15	$	16	$	20		$	10	$	7	$	7			$	25		$	5			$	13			$	7
Interest rate	Interest rate		53		35		53			18		30			20		31		11		13		21			39		13				Interest rate	33		32		48			20		37		58		80			30		14		18			27						13					42				18
Credit	Credit		58		64		82			53		79			68		84		52		86		35			86		25				Credit	72		66		80			54		77		73		84			58		61		62			68						54				68				54
Equity	Equity		22		24		35			19		20			19		33		14		26		36			162		19				Equity	32		24		32			19		23		23		27			20		16		17			22						12			24				26
Commodities	Commodities		4		9		28			4		4			6		9		3		8		6			10		4				Commodities	6		8		11			5		9		8		12			4		4		6			10						4			8				6
Portfolio diversification	Portfolio diversification		(96)		(90)		—			—		(72)			(68)		—		—		(82)		(57)			—		—				Portfolio diversification	(94)		(91)		—			—		(106)		(119)		—			—		(71)		(56)			—						—			(101)				(58)
Total covered positions portfolio	Total covered positions portfolio		54		52		85			34		69			51		84		31		59		46			171		27				Total covered positions portfolio	61		52		71			41		55		59		73			47		31		54			96						31			54				53
Impact from less liquid exposures	Impact from less liquid exposures		9		22		—			—		52			30		—		—		39		2			—		—				Impact from less liquid exposures	40		26		—			—		23		18		—			—		50		55			—						—			22				26
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	101		78		123			51		78		77		119			52		81		109			149						55			76				79
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		45		54			31		50		50		55			42		71		62			72						54			50				48
Fair value option hedges	Fair value option hedges		15		13		16			11		11			12		13		11		13		11			16		9				Fair value option hedges	18		17		20			14		14		16		17			14		11		13			15						11			15				13
Fair value option portfolio diversification	Fair value option portfolio diversification		(33)		(24)		—			—		(17)			(19)		—		—		(13)		(11)			—		—				Fair value option portfolio diversification	(44)		(36)		—			—		(34)		(37)		—			—		(27)		(32)			—						—			(32)				(24)
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	24		26		33			23		30		29		31			24		55		43			58						34			33				37
Portfolio diversification	Portfolio diversification		(19)		(1)		—			—		(4)			(18)		—		—		(21)		(11)			—		—				Portfolio diversification	(21)		(12)		—			—		(14)		(9)		—			—		(10)		(18)			—						—			(7)				(14)
Total market-based portfolio	Total market-based portfolio		$	74	$	118	169			62		$	163		$	118	164		92		$	152	$	53		171		32				Total market-based portfolio	$	104	$	92	141			60		$	94	$	97	146			64		$	126	$	134		160						99			$	102			$	102

(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.


						Bank of America 4044

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 ~~March 31,~~September 30, 2021, ~~December 31, 2020~~June 30, 2021 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 inSeptember 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						September 30, 2021				June 30, 2021				September 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		$	13	$	9	$	16	$	9	$	7	$	4
Interest rate	Interest rate		35		17		20		10		21		13		Interest rate		32		16		58		28		18		8
Credit	Credit		64		18		68		19		35		18		Credit		66		20		73		21		62		18
Equity	Equity		24		12		19		9		36		21		Equity		24		11		23		12		17		9
Commodities	Commodities		9		4		6		2		6		4		Commodities		8		4		8		4		6		3
Portfolio diversification	Portfolio diversification		(90)		(34)		(68)		(24)		(57)		(34)		Portfolio diversification		(91)		(35)		(119)		(44)		(56)		(25)
Total covered positions portfolio	Total covered positions portfolio		52		23		51		20		46		26		Total covered positions portfolio		52		25		59		30		54		17
Impact from less liquid exposures	Impact from less liquid exposures		22		3		30		3		2		1		Impact from less liquid exposures		26		3		18		2		55		5
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		78		28		77		32		109		22
Fair value option loans	Fair value option loans		56		14		62		16		16		7		Fair value option loans		45		10		50		11		62		14
Fair value option hedges	Fair value option hedges		13		7		12		6		11		7		Fair value option hedges		17		9		16		9		13		6
Fair value option portfolio diversification	Fair value option portfolio diversification		(24)		(6)		(19)		(5)		(11)		(7)		Fair value option portfolio diversification		(36)		(9)		(37)		(10)		(32)		(7)
Total fair value option portfolio	Total fair value option portfolio		45		15		55		17		16		7		Total fair value option portfolio		26		10		29		10		43		13
Portfolio diversification	Portfolio diversification		(1)		(8)		(18)		(7)		(11)		(6)		Portfolio diversification		(12)		(6)		(9)		(6)		(18)		(7)
Total market-based portfolio	Total market-based portfolio		$	118	$	33	$	118	$	33	$	53	$	28	Total market-based portfolio		$	92	$	32	$	97	$	36	$	134	$	28

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 nine months ended ~~March 31,~~September 30, 2021, there ~~were no days~~was one day 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,~~September 30, 2021 compared to the three months ended ~~December~~June 30, 2021 and March 31, ~~2020.~~2021. During the three months ended September 30, 2021, positive trading-related revenue was recorded for 95 percent of the trading days, of which 82 percent were daily trading gains of over $25 million. This compares to the three months ended June 30, 2021 where 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. During the three months ended March 31, 2021, 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.


45Bank of America

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,~~September 30, 2021 and December 31, 2020.


41~~Bank of America~~


Table 41		Forward Rates
Table 42									Table 42	Forward Rates

			March 31, 2021								September 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	%	0.13	%	1.51	%
12-month forward rates	12-month forward rates		0.25		0.24		1.95		12-month forward rates		0.25		0.30		1.67

			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,~~September 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~~nine months ended ~~March 31,~~September 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)					September 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				$	7,163	$	10,468
-25 bps instantaneous shift	-25 bps instantaneous shift		-25		-25		(1,963)						(2,766)			-25 bps instantaneous shift				-25			-25				(2,031)				(2,766)
Flatteners	Flatteners											Flatteners
Short-end instantaneous change	Short-end instantaneous change		+100	—		6,281				6,321		Short-end instantaneous change						+100				—				4,931				6,321
Long-end instantaneous change	Long-end instantaneous change		—	-25		(829)				(1,686)		Long-end instantaneous change					—				-25				(1,064)				(1,686)
Steepeners	Steepeners											Steepeners
Short-end instantaneous change	Short-end instantaneous change		-25	—		(1,135)				(1,084)		Short-end instantaneous change					-25				—				(942)				(1,084)
Long-end instantaneous change	Long-end instantaneous change		—	+100		2,079				4,333		Long-end instantaneous change					—				+100				2,440				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~~noninterest-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.


						Bank of America46

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 nine months ended ~~March 31,~~September 30, 2021, ~~and 2020,~~ we recorded gains of $13 million and ~~$163~~$35 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 $85 million and $313 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~~consist of 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~~effects 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. For information on our climate-related metrics that align with Stakeholder Capitalism Metrics published by the International Business Council of the World Economic Forum, see our Annual Report 2020 on the Bank of America website (the content of which is not incorporated by reference into this Quarterly Report on Form 10-Q).

Our Environmental and Social Risk Policy (ESRP) Framework aligns with our Risk Framework and provides additional clarity and transparency regarding our approach to environmental and social risks, inclusive of climate risk. Effective management of

climate risk requires coordinated governance, clearly defined roles and responsibilities, and well-developed processes to identify, measure, monitor and control that risk appropriately and in a timely manner, all of which remain key areas of focus, as we continue to build out and enhance our capabilities in this area.

As outlined in our ESRP Framework, we are focused on supporting and financing areas critical to the transition to a low-carbon society. Accordingly, we have a goal, publicly announced in early 2021, to achieve net-zero greenhouse gas emissions in our financing activities, operations and supply chain before 2050. More broadly, achieving this goal will require technological advances, clearly defined roadmaps for industry sectors, public policies, including those that improve cost of capital for net-zero transition and better emissions data reporting, as well as ongoing, strong and active engagement with clients, suppliers, investors, government officials and other stakeholders. In 2021, we also announced a goal to deploy and mobilize $1 trillion by 2030 to accelerate the transition to a low-carbon, sustainable economy by providing lending, capital raising, advisory and investment services, and by developing other client driven financial solutions. This latter commitment anchors a broader $1.5 trillion sustainable finance goal to support both environmental transition and social inclusive development, which spans business activities across the globe. These goals are intended to help drive business opportunities and enhance risk management related to the transition to a low-carbon economy. Given the extended period of these goals, our initiatives have not resulted in a significant effect on our results of operations or financial condition in the relevant periods presented herein, and are not expected to have a significant effect in the near term.

The foregoing discussion regarding our goals and commitments with respect to climate risk management, including environmental transition considerations, includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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.

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.


47Bank of America

Non-GAAP Reconciliations

Table 4344 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 44																				Table 44	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										September 30 2021				December 31 2020			Three Months Ended September 30						Nine Months Ended September 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				$	272,464		$	272,924		$	275,484		$	267,323		$	274,726	$	266,062
Goodwill	Goodwill		(68,951)		(68,951)				(68,951)				(68,951)							Goodwill			(69,023)			(68,951)			(69,023)			(68,951)			(68,999)			(68,951)
Intangible assets (excluding MSRs)	Intangible assets (excluding MSRs)		(2,134)		(2,151)				(2,146)				(1,655)							Intangible assets (excluding MSRs)			(2,172)			(2,151)			(2,185)			(1,976)			(2,181)			(1,758)
Related deferred tax liabilities	Related deferred tax liabilities		915		920				920				728							Related deferred tax liabilities			913			920			915			855			916			791
Tangible shareholders’ equity	Tangible shareholders’ equity		$	203,830	$	202,742			$	203,870			$	194,656						Tangible shareholders’ equity			$	202,182		$	202,742		$	205,191		$	197,251		$	204,462		$	196,144
Preferred stock	Preferred stock		(24,319)		(24,510)				(24,399)				(23,456)							Preferred stock			(23,441)			(24,510)			(23,441)			(23,427)			(23,837)			(23,437)
Tangible common shareholders’ equity	Tangible common shareholders’ equity		$	179,511	$	178,232			$	179,471			$	171,200						Tangible common shareholders’ equity			$	178,741		$	178,232		$	181,750		$	173,824		$	180,625		$	172,707

Total assets	Total assets		$	2,969,992	$	2,819,627														Total assets			$	3,085,446		$	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)			(2,172)			(2,151)
Related deferred tax liabilities	Related deferred tax liabilities		915		920															Related deferred tax liabilities			913			920
Tangible assets	Tangible assets		$	2,899,822	$	2,749,445														Tangible assets			$	3,015,164		$	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 3943 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,~~September 30, 2021, that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.


43~~Bank of America~~


						Bank of America48

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 September 30				Nine Months Ended September 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	$	12,336	$	11,486	$	35,118	$	40,124
Interest expense	Interest expense	1,198		3,968			Interest expense	1,242		1,357		3,594		7,017
Net interest income	Net interest income	10,197		12,130			Net interest income	11,094		10,129		31,524		33,107

Noninterest income	Noninterest income						Noninterest income
Fees and commissions	Fees and commissions	9,536		8,321			Fees and commissions	9,915		8,777		29,156		25,490
Market making and similar activities	Market making and similar activities	3,529		2,807			Market making and similar activities	2,005		1,689		7,360		6,983
Other income	Other income	(441)		(491)			Other income	(248)		(259)		(987)		(151)
Total noninterest income	Total noninterest income	12,624		10,637			Total noninterest income	11,672		10,207		35,529		32,322
Total revenue, net of interest expense	Total revenue, net of interest expense	22,821		22,767			Total revenue, net of interest expense	22,766		20,336		67,053		65,429

Provision for credit losses	Provision for credit losses	(1,860)		4,761			Provision for credit losses	(624)		1,389		(4,105)		11,267

Noninterest expense	Noninterest expense						Noninterest expense
Compensation and benefits	Compensation and benefits	9,736		8,341			Compensation and benefits	8,714		8,200		27,103		24,535
Occupancy and equipment	Occupancy and equipment	1,830		1,702			Occupancy and equipment	1,764		1,798		5,353		5,302
Information processing and communications	Information processing and communications	1,425		1,209			Information processing and communications	1,416		1,333		4,289		3,807
Product delivery and transaction related	Product delivery and transaction related	977		777			Product delivery and transaction related	987		930		2,940		2,518
Marketing	Marketing	371		438			Marketing	347		308		1,528		1,238
Professional fees	Professional fees	403		375			Professional fees	434		450		1,263		1,206
Other general operating	Other general operating	773		633			Other general operating	778		1,382		2,524		2,680

Total noninterest expense	Total noninterest expense	15,515		13,475			Total noninterest expense	14,440		14,401		45,000		41,286
Income before income taxes	Income before income taxes	9,166		4,531			Income before income taxes	8,950		4,546		26,158		12,876
Income tax expense	Income tax expense	1,116		521			Income tax expense	1,259		(335)		1,193		452
Net income	Net income	$	8,050	$	4,010		Net income	$	7,691	$	4,881	$	24,965	$	12,424
Preferred stock dividends	Preferred stock dividends	490		469			Preferred stock dividends	431		441		1,181		1,159
Net income applicable to common shareholders	Net income applicable to common shareholders	$	7,560	$	3,541		Net income applicable to common shareholders	$	7,260	$	4,440	$	23,784	$	11,265

Per common share information	Per common share information						Per common share information
Earnings	Earnings	$	0.87	$	0.40		Earnings	$	0.86	$	0.51	$	2.77	$	1.29
Diluted earnings	Diluted earnings	0.86		0.40			Diluted earnings	0.85		0.51		2.75		1.28

Average common shares issued and outstanding	Average common shares issued and outstanding	8,700.1		8,815.6			Average common shares issued and outstanding	8,430.7		8,732.9		8,583.1		8,762.6
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	8,492.8		8,777.5		8,702.2		8,800.5


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

		Three Months Ended March 31					Three Months Ended September 30				Nine Months Ended September 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	$	7,691	$	4,881	$	24,965	$	12,424
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	(153)		101		(1,243)		4,794
Net change in debit valuation adjustments	Net change in debit valuation adjustments	116		1,346				Net change in debit valuation adjustments	27		(58)		292		(5)
Net change in derivatives	Net change in derivatives	(1,114)		417				Net change in derivatives	(431)		76		(1,130)		808
Employee benefit plan adjustments	Employee benefit plan adjustments	51		43				Employee benefit plan adjustments	50		44		170		144
Net change in foreign currency translation adjustments	Net change in foreign currency translation adjustments	(29)		(88)				Net change in foreign currency translation adjustments	(26)		21		(29)		(86)
Other comprehensive income (loss)	Other comprehensive income (loss)	(1,816)		6,513				Other comprehensive income (loss)	(533)		184		(1,940)		5,655
Comprehensive income	Comprehensive income	$	6,234	$	10,523			Comprehensive income	$	7,158	$	5,065	$	23,025	$	18,079

See accompanying Notes to Consolidated Financial Statements.

49Bank of America

Bank of America Corporation and Subsidiaries

													Consolidated Balance Sheet
			March 31		December 31				September 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		$	28,689	$	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		251,165		344,033
Cash and cash equivalents	Cash and cash equivalents		326,101		380,463		Cash and cash equivalents		279,854		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		6,518		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 $154,137 and $108,856 measured at fair value)							Federal funds sold and securities borrowed or purchased under agreements to resell (includes $154,137 and $108,856 measured at fair value)		261,934		304,058
Trading account assets (includes $121,259 and $91,510 pledged as collateral)							Trading account assets (includes $121,259 and $91,510 pledged as collateral)		288,566		198,854
Derivative assets	Derivative assets		45,898		47,179		Derivative assets		40,829		47,179
Debt securities:	Debt securities:						Debt securities:
Carried at fair value	Carried at fair value		280,912		246,601		Carried at fair value		285,377		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 – $678,333 and $448,180)							Held-to-maturity, at cost (fair value – $678,333 and $448,180)		683,240		438,249
Total debt securities	Total debt securities		856,912		684,850		Total debt securities		968,617		684,850
Loans and leases (includes $7,003 and $6,681 measured at fair value)			903,088		927,861
Loans and leases (includes $7,566 and $6,681 measured at fair value)							Loans and leases (includes $7,566 and $6,681 measured at fair value)		927,736		927,861
Allowance for loan and lease losses	Allowance for loan and lease losses		(16,168)		(18,802)		Allowance for loan and lease losses		(13,155)		(18,802)
Loans and leases, net of allowance	Loans and leases, net of allowance		886,920		909,059		Loans and leases, net of allowance		914,581		909,059
Premises and equipment, net	Premises and equipment, net		10,803		11,000		Premises and equipment, net		10,684		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 $3,982 and $1,585 measured at fair value)							Loans held-for-sale (includes $3,982 and $1,585 measured at fair value)		9,415		9,243
Customer and other receivables	Customer and other receivables		66,404		64,221		Customer and other receivables		74,998		64,221
Other assets (includes $17,212 and $15,718 measured at fair value)			156,221		135,203
Other assets (includes $11,031 and $15,718 measured at fair value)							Other assets (includes $11,031 and $15,718 measured at fair value)		160,427		135,203
Total assets	Total assets		$	2,969,992	$	2,819,627	Total assets		$	3,085,446	$	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		$	753,107	$	650,674
Interest-bearing (includes $504 and $481 measured at fair value)			1,079,551		1,038,341
Interest-bearing (includes $542 and $481 measured at fair value)							Interest-bearing (includes $542 and $481 measured at fair value)		1,108,490		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		25,336		17,698
Interest-bearing	Interest-bearing		79,142		88,767		Interest-bearing		77,871		88,767
Total deposits	Total deposits		1,884,938		1,795,480		Total deposits		1,964,804		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 $155,151 and $135,391 measured at fair value)							Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $155,151 and $135,391 measured at fair value)		207,428		170,323
Trading account liabilities	Trading account liabilities		102,788		71,320		Trading account liabilities		112,217		71,320
Derivative liabilities	Derivative liabilities		42,325		45,526		Derivative liabilities		38,062		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 $4,128 and $5,874 measured at fair value)							Short-term borrowings (includes $4,128 and $5,874 measured at fair value)		20,278		19,321
Accrued expenses and other liabilities (includes $10,261 and $16,311 measured at fair value and $1,538 and $1,878 of reserve for unfunded lending commitments)							Accrued expenses and other liabilities (includes $10,261 and $16,311 measured at fair value and $1,538 and $1,878 of reserve for unfunded lending commitments)		191,572		181,799
Long-term debt (includes $28,696 and $32,200 measured at fair value)							Long-term debt (includes $28,696 and $32,200 measured at fair value)		278,621		262,934
Total liabilities	Total liabilities		2,695,992		2,546,703		Total liabilities		2,812,982		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 – 8,241,243,911 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 – 8,241,243,911 and 8,650,814,105 shares		69,612		85,982
Retained earnings	Retained earnings		170,082		164,088		Retained earnings		183,007		164,088
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)		(3,472)		(1,656)		Accumulated other comprehensive income (loss)		(3,596)		(1,656)

Total shareholders’ equity	Total shareholders’ equity		274,000		272,924		Total shareholders’ equity		272,464		272,924
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity		$	2,969,992	$	2,819,627	Total liabilities and shareholders’ equity		$	3,085,446	$	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	$	4,432	$	5,225

		Loans and leases	19,346		23,636			Loans and leases	16,857		23,636
		Allowance for loan and lease losses	(1,261)		(1,693)			Allowance for loan and lease losses	(994)		(1,693)
		Loans and leases, net of allowance	18,085		21,943			Loans and leases, net of allowance	15,863		21,943

		All other assets	1,387		1,387			All other assets	136		1,387
		Total assets of consolidated variable interest entities	$	24,002	$	28,555		Total assets of consolidated variable interest entities	$	20,431	$	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 $50 and $22 of non-recourse short-term borrowings)	$	330	$	454
		Long-term debt (includes $5,286 and $7,053 of non-recourse debt)	5,286		7,053			Long-term debt (includes $3,830 and $7,053 of non-recourse debt)	3,830		7,053
		All other liabilities (includes $11 and $16 of non-recourse liabilities)	11		16			All other liabilities (includes $10 and $16 of non-recourse liabilities)	10		16
		Total liabilities of consolidated variable interest entities	$	5,635	$	7,523		Total liabilities of consolidated variable interest entities	$	4,170	$	7,523

See accompanying Notes to Consolidated Financial Statements.


45~~Bank of America~~


						Bank of America50

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, June 30, 2021																				$	23,441				8,487.2							$	79,242	$	177,499			$	(3,063)				$	277,119

Net income																					Net income														7,691											7,691
Net change in debt securities																					Net change in debt securities																	(153)							(153)
Net change in debit valuation adjustments																					Net change in debit valuation adjustments																	27							27
Net change in derivatives																					Net change in derivatives																	(431)							(431)
Employee benefit plan adjustments																					Employee benefit plan adjustments																	50							50
Net change in foreign currency translation adjustments																					Net change in foreign currency translation adjustments																	(26)							(26)
Dividends declared:																					Dividends declared:
Common																					Common													(1,749)											(1,749)
Preferred																					Preferred													(431)											(431)

Common stock issued under employee plans, net, and other																					Common stock issued under employee plans, net, and other					2.0			284					(3)											281
Common stock repurchased																					Common stock repurchased					(248.0)			(9,914)																(9,914)
Balance, September 30, 2021																					Balance, September 30, 2021	$	23,441			8,241.2			$	69,612				$	183,007			$	(3,596)						$	272,464
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													24,965											24,965
Net change in debt securities																					Net change in debt securities																	(1,243)							(1,243)
Net change in debit valuation adjustments																					Net change in debit valuation adjustments																	292							292
Net change in derivatives																					Net change in derivatives																	(1,130)							(1,130)
Employee benefit plan adjustments																					Employee benefit plan adjustments																	170							170
Net change in foreign currency translation adjustments																					Net change in foreign currency translation adjustments																	(29)							(29)
Dividends declared:																					Dividends declared:
Common																					Common													(4,859)											(4,859)
Preferred																					Preferred													(1,181)											(1,181)
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					42.2			1,223					(6)											1,217
Common stock repurchased																					Common stock repurchased					(451.8)			(17,593)																(17,593)
Balance, September 30, 2021																					Balance, September 30, 2021	$	23,441			8,241.2			$	69,612				$	183,007			$	(3,596)						$	272,464

Balance, June 30, 2020																					Balance, June 30, 2020	$	23,427			8,664.1			$	85,794				$	157,578			$	(1,162)						$	265,637

Net income																					Net income													4,881											4,881
Net change in debt securities																					Net change in debt securities																	101							101
Net change in debit valuation adjustments																					Net change in debit valuation adjustments																	(58)							(58)
Net change in derivatives																					Net change in derivatives																	76							76
Employee benefit plan adjustments																					Employee benefit plan adjustments																	44							44
Net change in foreign currency translation adjustments																					Net change in foreign currency translation adjustments																	21							21
Dividends declared:																					Dividends declared:
Common																					Common													(1,571)											(1,571)
Preferred																					Preferred													(441)											(441)

Common stock issued under employee plans, net, and other																					Common stock issued under employee plans, net, and other					1.8			274																274
Common stock repurchased																					Common stock repurchased					(4.4)			(114)																(114)
Balance, September 30, 2020																					Balance, September 30, 2020	$	23,427			8,661.5			$	85,954				$	160,447			$	(978)						$	268,850

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													12,424											12,424
Net change in debt securities	Net change in debt securities										4,795							4,795			Net change in debt securities																	4,794							4,794
Net change in debit valuation adjustments	Net change in debit valuation adjustments										1,346							1,346			Net change in debit valuation adjustments																	(5)							(5)
Net change in derivatives	Net change in derivatives										417							417			Net change in derivatives																	808							808
Employee benefit plan adjustments	Employee benefit plan adjustments										43							43			Employee benefit plan adjustments																	144							144
Net change in foreign currency translation adjustments	Net change in foreign currency translation adjustments										(88)							(88)			Net change in foreign currency translation adjustments																	(86)							(86)
Dividends declared:	Dividends declared:																				Dividends declared:
Common	Common						(1,579)											(1,579)			Common													(4,722)											(4,722)
Preferred	Preferred						(469)											(469)			Preferred													(1,159)											(1,159)
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					41.6			993					(9)											984
Common stock repurchased	Common stock repurchased			(200.3)	(6,362)													(6,362)			Common stock repurchased					(216.2)			(6,762)																(6,762)
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, September 30, 2020																					Balance, September 30, 2020	$	23,427			8,661.5			$	85,954				$	160,447			$	(978)						$	268,850

See accompanying Notes to Consolidated Financial Statements.


51Bank of America

Bank of America Corporation and Subsidiaries



Consolidated Statement of Cash Flows

	Nine Months Ended September 30

(Dollars in millions)	2021		2020
Operating activities
Net income	$	24,965	$	12,424
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	(4,105)		11,267
Gains on sales of debt securities	(4)		(379)
Depreciation and amortization	1,403		1,356

Net amortization of premium/discount on debt securities	4,534		2,636
Deferred income taxes	(1,151)		(1,994)
Stock-based compensation	2,031		1,597

Loans held-for-sale:
Originations and purchases	(27,003)		(11,093)
Proceeds from sales and paydowns of loans originally classified as held for sale and instruments from related securitization activities	24,852		15,654
Net change in:
Trading and derivative assets/liabilities	(55,310)		(25,503)
Other assets	(34,337)		(15,078)
Accrued expenses and other liabilities	8,713		(9,495)
Other operating activities, net	3,568		2,007
Net cash used in operating activities	(51,844)		(16,601)
Investing activities
Net change in:
Time deposits placed and other short-term investments	28		2,019
Federal funds sold and securities borrowed or purchased under agreements to resell	42,124		(52,148)
Debt securities carried at fair value:
Proceeds from sales	3,732		61,485
Proceeds from paydowns and maturities	124,149		61,973
Purchases	(174,517)		(148,905)
Held-to-maturity debt securities:
Proceeds from paydowns and maturities	94,437		63,097
Purchases	(340,425)		(126,710)
Loans and leases:
Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities	7,767		10,041
Purchases	(3,363)		(3,972)
Other changes in loans and leases, net	(5,866)		11,810
Other investing activities, net	(2,450)		(2,473)
Net cash used in investing activities	(254,384)		(123,783)
Financing activities
Net change in:
Deposits	169,324		268,077
Federal funds purchased and securities loaned or sold under agreements to repurchase	37,105		25,660
Short-term borrowings	957		(6,353)
Long-term debt:
Proceeds from issuance	65,459		40,858
Retirement	(38,787)		(37,123)
Preferred stock:
Proceeds from issuance	902		1,098
Redemption	(1,971)		(1,072)
Common stock repurchased	(17,593)		(6,762)
Cash dividends paid	(6,090)		(5,899)
Other financing activities, net	(696)		(603)
Net cash provided by financing activities	208,610		277,881
Effect of exchange rate changes on cash and cash equivalents	(2,991)		1,949
Net increase (decrease) in cash and cash equivalents	(100,609)		139,446
Cash and cash equivalents at January 1	380,463		161,560
Cash and cash equivalents at September 30	$	279,854	$	301,006

See accompanying Notes to Consolidated Financial Statements.


						Bank of America 4652

~~Bank of America Corporation and Subsidiaries~~

Consolidated Statement of Cash Flows
Three Months Ended March 31
(Dollars in millions) 2021 2020
Operating activities
Net income $ 8,050 $ 4,010
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses (1,860) 4,761
Gains on sales of debt securities 0 (315)
Depreciation and amortization 461 432
Net amortization of premium/discount on debt securities 1,530 482
Deferred income taxes 566 (229)
Stock-based compensation 853 543
Loans held-for-sale:
Originations and purchases (8,253) (6,078)
Proceeds from sales and paydowns of loans originally classified as held for sale and instruments
from related securitization activities
9,383 7,397
Net change in:
Trading and derivative assets/liabilities (53,756) 29,615
Other assets (23,477) (21,022)
Accrued expenses and other liabilities 12,186 (588)
Other operating activities, net 1,989 35
Net cash provided by (used in) operating activities (52,328) 19,043
Investing activities
Net change in:
Time deposits placed and other short-term investments (1,313) (5,176)
Federal funds sold and securities borrowed or purchased under agreements to resell 44,911 (27,372)
Debt securities carried at fair value:
Proceeds from sales 491 9,977
Proceeds from paydowns and maturities 37,105 16,708
Purchases (79,075) (18,131)
Held-to-maturity debt securities:
Proceeds from paydowns and maturities 31,703 11,933
Purchases (169,930) (7,132)
Loans and leases:
Proceeds from sales of loans originally classified as held for investment and instruments
from related securitization activities
2,263 2,050
Purchases (1,053) (1,982)
Other changes in loans and leases, net 22,585 (69,667)
Other investing activities, net (767) (1,619)
Net cash used in investing activities (113,080) (90,411)
Financing activities
Net change in:
Deposits 89,458 148,522
Federal funds purchased and securities loaned or sold under agreements to repurchase 29,120 4,934
Short-term borrowings 2,403 5,904
Long-term debt:
Proceeds from issuance 13,132 18,728
Retirement (13,991) (7,843)
Preferred stock:
Proceeds from issuance 902 1,098
Redemption (1,093) (1,072)
Common stock repurchased (3,470) (6,362)
Cash dividends paid (2,114) (2,083)
Other financing activities, net (720) (679)
Net cash provided by financing activities 113,627 161,147
Effect of exchange rate changes on cash and cash equivalents (2,581) (949)
Net increase (decrease) in cash and cash equivalents (54,362) 88,830
Cash and cash equivalents at January 1 380,463 161,560
Cash and cash equivalents at March 31 $ 326,101 $ 250,390

~~See accompanying Notes to Consolidated Financial Statements.~~


47~~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 Changes

In June 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. In addition, in July 2020, the U.K. enacted a reversal of the final two percent of scheduled decreases in the U.K. corporation income tax rate. As a result, during the nine months ended September 30, 2021 and 2020, the Corporation recorded a write-up of U.K. net deferred tax assets of approximately $2.0 billion and $700 million with corresponding positive income tax adjustments.

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 nine months ended ~~March 31,~~September 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


53Bank of America



	Three Months Ended September 30	Nine Months Ended September 30
(Dollars in millions)		2021		2020		2021		2020
Net interest income
Interest income
Loans and leases		$	7,502	$	7,894	$	21,859	$	26,426
Debt securities		3,282		2,130		8,832		7,413
Federal funds sold and securities borrowed or purchased under agreements to resell		6		55		(43)		900
Trading account assets		967		948		2,793		3,203
Other interest income		579		459		1,677		2,182
Total interest income		12,336		11,486		35,118		40,124

Interest expense
Deposits		133		227		394		1,784
Short-term borrowings		(41)		(24)		(205)		1,024
Trading account liabilities		285		212		824		764
Long-term debt		865		942		2,581		3,445
Total interest expense		1,242		1,357		3,594		7,017
Net interest income		$	11,094	$	10,129	$	31,524	$	33,107

Noninterest income
Fees and commissions
Card income
Interchange fees (1)		$	1,154	$	1,172	$	3,431	$	2,794
Other card income		429		396		1,173		1,295
Total card income		1,583		1,568		4,604		4,089
Service charges
Deposit-related fees		1,619		1,515		4,671		4,441
Lending-related fees		309		302		923		841
Total service charges		1,928		1,817		5,594		5,282
Investment and brokerage services
Asset management fees		3,276		2,740		9,434		7,905
Brokerage fees		960		883		2,988		2,898
Total investment and brokerage services		4,236		3,623		12,422		10,803
Investment banking fees
Underwriting income		1,168		1,239		4,028		3,610
Syndication fees		346		133		1,047		634
Financial advisory services		654		397		1,461		1,072
Total investment banking fees		2,168		1,769		6,536		5,316
Total fees and commissions		9,915		8,777		29,156		25,490
Market making and similar activities		2,005		1,689		7,360		6,983
Other income (loss)		(248)		(259)		(987)		(151)
Total noninterest income		$	11,672	$	10,207	$	35,529	$	32,322

(1)Gross interchange fees and merchant income were ~~$2.5~~$3.0 billion and ~~$2.3~~$2.4 billion for the three months ended ~~March 31,~~September 30, 2021 and 2020 and are presented net of $1.8 billion and $1.4 billion of expenses for rewards and ~~$1.5~~partner payments as well as certain other card costs for the same periods. Gross interchange fees and merchant income were $8.3 billion and $6.7 billion for the nine months ended September 30, 2021 and 2020 and are presented net of $4.9 billion and $4.1 billion of expenses for rewards and partner payments as well as certain other card costs for the same periods.


						Bank of America 4854

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,~~September 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															September 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	$	19,675.2	$	141.9	$	9.4	$	151.3	$	148.6	$	2.4	$	151.0
Futures and forwards	Futures and forwards	5,241.6		4.9		0		4.9		4.8		0		4.8		Futures and forwards	4,142.2		2.8		—		2.8		2.7		—		2.7
Written options	Written options	1,690.7		0		0		0		34.4		0		34.4		Written options	1,746.8		—		—		—		29.5		—		29.5
Purchased options	Purchased options	1,728.2		37.5		0		37.5		0		0		0		Purchased options	1,637.3		33.4		—		33.4		—		—		—
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	1,433.9		27.6		0.4		28.0		30.7		0.3		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	4,628.5		37.1		0.5		37.6		35.1		0.1		35.2
Written options	Written options	335.0		0		0		0		4.2		0		4.2		Written options	338.1		—		—		—		3.9		—		3.9
Purchased options	Purchased options	326.1		4.4		0		4.4		0		0		0		Purchased options	310.6		3.9		—		3.9		—		—		—
Equity contracts	Equity contracts															Equity contracts
Swaps	Swaps	339.4		13.0		0		13.0		13.7		0		13.7		Swaps	431.7		13.6		—		13.6		16.0		—		16.0
Futures and forwards	Futures and forwards	136.3		0.2		0		0.2		1.8		0		1.8		Futures and forwards	131.0		0.4		—		0.4		1.6		—		1.6
Written options	Written options	620.2		0		0		0		52.2		0		52.2		Written options	738.8		—		—		—		60.3		—		60.3
Purchased options	Purchased options	550.1		55.8		0		55.8		0		0		0		Purchased options	654.4		60.6		—		60.6		—		—		—
Commodity contracts	Commodity contracts															Commodity contracts
Swaps	Swaps	40.3		2.0		0		2.0		4.1		0		4.1		Swaps	50.2		4.5		—		4.5		7.7		—		7.7
Futures and forwards	Futures and forwards	68.8		2.0		0		2.0		1.0		0.1		1.1		Futures and forwards	91.7		2.3		0.3		2.6		1.1		0.6		1.7
Written options	Written options	33.9		0		0		0		1.7		0		1.7		Written options	41.9		—		—		—		4.0		—		4.0
Purchased options	Purchased options	29.5		1.8		0		1.8		0		0		0		Purchased options	34.0		4.6		—		4.6		—		—		—
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	375.2		1.8		—		1.8		5.0		—		5.0
Total return swaps/options	Total return swaps/options	79.2		0.4		0		0.4		1.3		0		1.3		Total return swaps/options	52.6		0.3		—		0.3		1.4		—		1.4
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	358.3		5.0		—		5.0		1.5		—		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	59.3		1.3		—		1.3		0.5		—		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			$	341.1	$	10.6	$	351.7	$	349.6	$	3.4	$	353.0
Less: Legally enforceable master netting agreements	Less: Legally enforceable master netting agreements							(294.5)						(294.5)		Less: Legally enforceable master netting agreements							(279.7)						(279.7)
Less: Cash collateral received/paid	Less: Cash collateral received/paid							(35.3)						(34.0)		Less: Cash collateral received/paid							(31.2)						(35.2)
Total derivative assets/liabilities	Total derivative assets/liabilities							$	45.9					$	42.3	Total derivative assets/liabilities							$	40.8					$	38.1

(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~~$326.9 billion at ~~March 31,~~September 30, 2021.


4955 Bank of America


				December 31, 2020															December 31, 2020
				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	$	13,242.8	$	199.9	$	10.9	$	210.8	$	209.3	$	1.3	$	210.6	Swaps	$	13,242.8	$	199.9	$	10.9	$	210.8	$	209.3	$	1.3	$	210.6
Futures and forwards	Futures and forwards	3,222.2		3.5		0.1		3.6		3.6		0		3.6		Futures and forwards	3,222.2		3.5		0.1		3.6		3.6		—		3.6
Written options	Written options	1,530.5		0		0		0		40.5		0		40.5		Written options	1,530.5		—		—		—		40.5		—		40.5
Purchased options	Purchased options	1,545.8		45.3		0		45.3		0		0		0		Purchased options	1,545.8		45.3		—		45.3		—		—		—
Foreign exchange contracts	Foreign exchange contracts															Foreign exchange contracts
Swaps	Swaps	1,475.8		37.1		0.3		37.4		39.7		0.6		40.3		Swaps	1,475.8		37.1		0.3		37.4		39.7		0.6		40.3
Spot, futures and forwards	Spot, futures and forwards	3,710.7		53.4		0		53.4		54.5		0.5		55.0		Spot, futures and forwards	3,710.7		53.4		—		53.4		54.5		0.5		55.0
Written options	Written options	289.6		0		0		0		4.8		0		4.8		Written options	289.6		—		—		—		4.8		—		4.8
Purchased options	Purchased options	279.3		5.0		0		5.0		0		0		0		Purchased options	279.3		5.0		—		5.0		—		—		—
Equity contracts	Equity contracts															Equity contracts
Swaps	Swaps	320.2		13.3		0		13.3		14.5		0		14.5		Swaps	320.2		13.3		—		13.3		14.5		—		14.5
Futures and forwards	Futures and forwards	106.2		0.3		0		0.3		1.4		0		1.4		Futures and forwards	106.2		0.3		—		0.3		1.4		—		1.4
Written options	Written options	599.1		0		0		0		48.8		0		48.8		Written options	599.1		—		—		—		48.8		—		48.8
Purchased options	Purchased options	541.2		52.6		0		52.6		0		0		0		Purchased options	541.2		52.6		—		52.6		—		—		—
Commodity contracts	Commodity contracts															Commodity contracts
Swaps	Swaps	36.4		1.9		0		1.9		4.4		0		4.4		Swaps	36.4		1.9		—		1.9		4.4		—		4.4
Futures and forwards	Futures and forwards	63.6		2.0		0		2.0		1.0		0		1.0		Futures and forwards	63.6		2.0		—		2.0		1.0		—		1.0
Written options	Written options	24.6		0		0		0		1.4		0		1.4		Written options	24.6		—		—		—		1.4		—		1.4
Purchased options	Purchased options	24.7		1.5		0		1.5		0		0		0		Purchased options	24.7		1.5		—		1.5		—		—		—
Credit derivatives (2)	Credit derivatives (2)															Credit derivatives (2)
Purchased credit derivatives:	Purchased credit derivatives:															Purchased credit derivatives:
Credit default swaps	Credit default swaps	322.7		2.3		0		2.3		4.4		0		4.4		Credit default swaps	322.7		2.3		—		2.3		4.4		—		4.4
Total return swaps/options	Total return swaps/options	63.6		0.2		0		0.2		1.0		0		1.0		Total return swaps/options	63.6		0.2		—		0.2		1.0		—		1.0
Written credit derivatives:	Written credit derivatives:															Written credit derivatives:
Credit default swaps	Credit default swaps	301.5		4.4		0		4.4		1.9		0		1.9		Credit default swaps	301.5		4.4		—		4.4		1.9		—		1.9
Total return swaps/options	Total return swaps/options	68.6		0.6		0		0.6		0.4		0		0.4		Total return swaps/options	68.6		0.6		—		0.6		0.4		—		0.4
Gross derivative assets/liabilities	Gross derivative assets/liabilities			$	423.3	$	11.3	$	434.6	$	431.6	$	2.4	$	434.0	Gross derivative assets/liabilities			$	423.3	$	11.3	$	434.6	$	431.6	$	2.4	$	434.0
Less: Legally enforceable master netting agreements	Less: Legally enforceable master netting agreements							(344.9)						(344.9)		Less: Legally enforceable master netting agreements							(344.9)						(344.9)
Less: Cash collateral received/paid	Less: Cash collateral received/paid							(42.5)						(43.6)		Less: Cash collateral received/paid							(42.5)						(43.6)
Total derivative assets/liabilities	Total derivative assets/liabilities							$	47.2					$	45.5	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,~~September 30, 2021 and December 31, 2020 by primary risk (e.g., interest rate risk) and the platform, where ~~applicable,~~

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.


						Bank of America 5056


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)	September 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	$	177.6	$	171.7	$	247.7	$	243.5
Exchange-traded	Exchange-traded	0.1		0.1		0		0		Exchange-traded	0.1		—		—		—
Over-the-counter cleared	Over-the-counter cleared	9.1		9.8		10.2		9.1		Over-the-counter cleared	9.6		9.8		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	67.2		68.3		92.2		96.5
Over-the-counter cleared	Over-the-counter cleared	1.2		1.2		1.4		1.3		Over-the-counter cleared	0.8		0.8		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	30.7		32.5		31.3		28.3
Exchange-traded	Exchange-traded	33.2		32.2		32.3		31.0		Exchange-traded	42.9		42.1		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	8.4		9.5		3.5		5.0
Exchange-traded	Exchange-traded	0.8		1.0		0.7		0.7		Exchange-traded	1.9		2.4		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		—		—
Credit derivatives	Credit derivatives									Credit derivatives
Over-the-counter	Over-the-counter	6.4		6.0		5.2		5.6		Over-the-counter	5.8		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		2.5		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	289.7		287.5		379.9		378.9
Exchange-traded	Exchange-traded	34.1		33.3		33.0		31.7		Exchange-traded	44.9		44.5		33.0		31.7
Over-the-counter cleared	Over-the-counter cleared	13.2		13.8		13.8		12.3		Over-the-counter cleared	12.9		13.2		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	(255.5)		(259.4)		(345.7)		(347.2)
Exchange-traded	Exchange-traded	(32.1)		(32.1)		(29.5)		(29.5)		Exchange-traded	(42.9)		(42.9)		(29.5)		(29.5)
Over-the-counter cleared	Over-the-counter cleared	(11.8)		(11.8)		(12.2)		(11.8)		Over-the-counter cleared	(12.5)		(12.6)		(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	36.6		30.3		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)	4.2		7.8		7.9		11.1
Total derivative assets/liabilities	Total derivative assets/liabilities	45.9		42.3		47.2		45.5		Total derivative assets/liabilities	40.8		38.1		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)	(13.1)		(11.4)		(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	$	27.7	$	26.7	$	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 nine months ended ~~March 31,~~September 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 September 30, 2021								Three Months Ended September 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)		$	(1,658)			$	1,660			$	(1,523)		$	1,473
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)		(49)				46				79			(87)
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)		867				(859)				139			(139)

Total	Total	$	(2,850)	$	2,878	$	10,489	$	(10,425)								Total		$	(840)			$	847			$	(1,305)		$	1,247

`																`		Nine Months Ended September 30, 2021								Nine Months Ended September 30, 2020
													Derivative	Hedged Item							Derivative				Hedged Item
Interest rate risk on long-term debt (1)																Interest rate risk on long-term debt (1)		$	(6,237)			$	6,208			$	9,286		$	(9,403)
Interest rate and foreign currency risk on long-term debt (2)																Interest rate and foreign currency risk on long-term debt (2)		(72)				67				644			(638)
Interest rate risk on available-for-sale securities (3)																Interest rate risk on available-for-sale securities (3)		4,245				(4,184)				(572)			559

Total																Total		$	(2,064)			$	2,091			$	9,358		$	(9,482)

(1)Amounts are recorded in interest expense in the Consolidated Statement of Income.

(2)For the three and nine months ended ~~March 31,~~September 30, 2021, the derivative amount includes gains (losses) of $(11) million and $(62) million in interest expense, $(33) million and $(2) million in market making and similar activities, and $(5) million and $(8) million in accumulated other comprehensive income (OCI). For the same periods in 2020, the derivative amount includes gains (losses) of ~~$(34)~~$(13) million and ~~$734~~$718 million in interest expense, $8$95 million and ~~$(241)~~$(83) million in market making and similar activities, and ~~$(2)~~$(3) million and ~~$12~~$9 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.


5157 Bank of America

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						September 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)	$	177,111	$	4,933	$	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)	178,130		(2,120)		116,252		114
Trading account assets (5)	Trading account assets (5)	660		0		427		15			Trading account assets (5)	590		—		427		15

(1)Increase (decrease) to carrying value.

(2)At ~~March 31,~~September 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~~$1.2 billion and $3.7 billion and a decrease in the related asset of ~~$71~~$240 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,~~September 30, 2021 and December 31, 2020, the amortized cost of the closed portfolios used in these hedging relationships was ~~$30.5~~$23.7 billion and $34.6 billion, of which $6.9 billion and $7.0 billion was designated in the last-of-layer hedging ~~relationship at both dates.~~relationship. At ~~March 31,~~September 30, 2021, the cumulative adjustment associated with these hedging relationships was a decrease of ~~$115~~$103 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 nine months ended ~~March 31,~~September 30, 2021 and 2020. Of the ~~$688~~$704 million after-tax net loss ($~~917~~938 million pretax) on derivatives in accumulated OCI at ~~March 31,~~September 30, 2021, gains of ~~$220~~$858 million after-tax ($~~294 million~~1.1 billion pretax) related to both open and terminated cash flow hedges are expected to be reclassified

into earnings 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 September 30, 2021		Nine Months Ended September 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)					$	(539)	$	38	$	(1,115)	$	111
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)					29		5		(272)		20
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)					(2)		14		57		40
Total	Total						$	(1,426)	$	58	$	509	$	(26)	Total					$	(512)	$	57	$	(1,330)	$	171
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)					$	642	$	—	$	1,145	$	—

																		Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020

Cash flow hedges															Cash flow hedges
Interest rate risk on variable-rate assets (1)															Interest rate risk on variable-rate assets (1)					$	(101)	$	5	$	810	$	(44)
Price risk on forecasted MBS purchases (1)															Price risk on forecasted MBS purchases (1)					184		3		184		3
Price risk on certain compensation plans (2)															Price risk on certain compensation plans (2)					32		5		23		5
Total															Total					$	115	$	13	$	1,017	$	(36)
Net investment hedges															Net investment hedges
Foreign exchange risk (3)															Foreign exchange risk (3)					$	(703)	$	—	$	265	$	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 nine months ended ~~March 31,~~September 30, 2021, ~~and 2020,~~ amounts excluded from effectiveness testing and recognized in market making and similar activities were ~~gains (losses)~~losses of ~~$(2)~~$36 million and ~~$30~~$86 million. For the same periods in 2020 amounts excluded from effectiveness testing and recognized in other income were gains of $10 million and $115 million.


						Bank of America 5258

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 nine months ended ~~March 31,~~September 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 September 30				Nine Months Ended September 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)	$	10	$	73	$	(49)	$	601
Credit risk on loans (2)	Credit risk on loans (2)	(17)		88			Credit risk on loans (2)	(9)		(28)		(40)		(6)
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)	552		(2,571)		1,495		(2,060)
Price risk on certain compensation plans (4)	Price risk on certain compensation plans (4)	280		(757)			Price risk on certain compensation plans (4)	(23)		263		575		109

(1)~~Primarily related to~~Includes 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 million and $48 million for the three months ended March 31, 2021 and 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,~~September 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~~$4.9 billion and $5.2 billion at the transfer dates. At ~~March 31,~~September 30, 2021 and December 31, 2020, the fair value of the transferred securities was ~~$5.4~~$5.1 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 nine months ended ~~March 31,~~September 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 September 30, 2021				Nine Months Ended September 30, 2021
Interest rate risk	Interest rate risk	$	372	$	463	$	57	$	892				Interest rate risk	$	180	$	442	$	43	$	665	$	590	$	1,350	$	141	$	2,081
Foreign exchange risk	Foreign exchange risk	407		(18)		2		391					Foreign exchange risk	345		(22)		2		325		1,082		(62)		7		1,027
Equity risk	Equity risk	1,282		36		516		1,834					Equity risk	1,196		(28)		433		1,601		3,657		7		1,389		5,053
Credit risk	Credit risk	802		363		114		1,279					Credit risk	248		458		158		864		1,491		1,263		446		3,200
Other risk (2)	Other risk (2)	607		(18)		20		609					Other risk (2)	45		(30)		45		60		627		(58)		91		660
Total sales and trading revenue	Total sales and trading revenue	$	3,470	$	826	$	709	$	5,005				Total sales and trading revenue	$	2,014	$	820	$	681	$	3,515	$	7,447	$	2,500	$	2,074	$	12,021

		Three Months Ended March 31, 2020										Three Months Ended September 30, 2020				Nine Months Ended September 30, 2020
Interest rate risk	Interest rate risk	$	1,495	$	617	$	73	$	2,185				Interest rate risk	$	85	$	545	$	57	$	687	$	2,249	$	1,754	$	175	$	4,178
Foreign exchange risk	Foreign exchange risk	465		5		5		475					Foreign exchange risk	338		(10)		4		332		1,153		(8)		(2)		1,143
Equity risk	Equity risk	1,259		(123)		519		1,655					Equity risk	816		(7)		391		1,200		2,805		(99)		1,361		4,067
Credit risk	Credit risk	(379)		443		34		98					Credit risk	413		401		73		887		570		1,336		253		2,159
Other risk (2)	Other risk (2)	133		21		6		160					Other risk (2)	73		(7)		14		80		280		21		24		325
Total sales and trading revenue	Total sales and trading revenue	$	2,973	$	963	$	637	$	4,573				Total sales and trading revenue	$	1,725	$	922	$	539	$	3,186	$	7,057	$	3,004	$	1,811	$	11,872

(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~~$460 million and ~~$557 million~~$1.5 billion for the three and nine months ended ~~March 31,~~September 30, 2021 compared to $430 million and $1.5 billion for the same periods in 2020.

(2)Includes commodity risk.


59Bank of America

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,~~September 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											September 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	$	—	$	1	$	40	$	73	$	114
Non-investment grade	Non-investment grade	43		153		474		1,084		1,754		Non-investment grade	8		119		426		859		1,412
Total	Total	43		156		526		1,131		1,856		Total	8		120		466		932		1,526
Total return swaps/options:	Total return swaps/options:											Total return swaps/options:
Investment grade	Investment grade	32		0		0		0		32		Investment grade	18		—		—		—		18
Non-investment grade	Non-investment grade	129		266		0		0		395		Non-investment grade	88		353		5		—		446
Total	Total	161		266		0		0		427		Total	106		353		5		—		464
Total credit derivatives	Total credit derivatives	$	204	$	422	$	526	$	1,131	$	2,283	Total credit derivatives	$	114	$	473	$	471	$	932	$	1,990
Credit-related notes:	Credit-related notes:											Credit-related notes:
Investment grade	Investment grade	$	0	$	0	$	0	$	341	$	341	Investment grade	$	—	$	—	$	42	$	274	$	316
Non-investment grade	Non-investment grade	7		1		10		1,329		1,347		Non-investment grade	5		—		14		1,328		1,347
Total credit-related notes	Total credit-related notes	$	7	$	1	$	10	$	1,670	$	1,688	Total credit-related notes	$	5	$	—	$	56	$	1,602	$	1,663
		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	$	33,007	$	74,896	$	110,525	$	37,271	$	255,699
Non-investment grade	Non-investment grade	13,206		29,761		47,496		15,366		105,829		Non-investment grade	11,254		30,197		45,994		15,197		102,642
Total	Total	46,344		104,122		146,798		43,340		340,604		Total	44,261		105,093		156,519		52,468		358,341
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	26,711		64		78		—		26,853
Non-investment grade	Non-investment grade	16,047		15,217		28		5		31,297		Non-investment grade	18,900		13,015		536		16		32,467
Total	Total	64,049		15,281		156		5		79,491		Total	45,611		13,079		614		16		59,320
Total credit derivatives	Total credit derivatives	$	110,393	$	119,403	$	146,954	$	43,345	$	420,095	Total credit derivatives	$	89,872	$	118,172	$	157,133	$	52,484	$	417,661

		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	$	—	$	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		—		—		25
Non-investment grade	Non-investment grade	345		0		0		0		345		Non-investment grade	345		—		—		—		345
Total	Total	366		4		0		0		370		Total	366		4		—		—		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	$	—	$	—	$	—	$	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		—		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


						Bank of America60

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,~~September 30, 2021 and December 31, 2020, the Corporation held cash and securities collateral of ~~$89.3~~$87.2 billion and $96.5 billion and posted cash and securities collateral of ~~$72.7~~$73.7 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,~~September 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~~$2.4 billion, including ~~$1.9~~$1.1 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,~~September 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,~~September 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 September 30, 2021						Additional Collateral Required to be Posted and Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at September 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	$	342	$	802
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		610

Derivative liabilities subject to unilateral termination upon downgrade						Derivative liabilities subject to unilateral termination upon downgrade
Derivative liabilities						Derivative liabilities	$	22	$	764
Collateral posted						Collateral posted	9		559

(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 nine months ended ~~March 31,~~September 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 September 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)	$	54	$	174
Derivative assets/liabilities (FVA)	Derivative assets/liabilities (FVA)	48		(156)				Derivative assets/liabilities (FVA)	19		27
Derivative liabilities (DVA)	Derivative liabilities (DVA)	23		414				Derivative liabilities (DVA)	(5)		(105)

							Nine Months Ended September 30
(Dollars in millions)								(Dollars in millions)	2021		2020
Derivative assets (CVA)								Derivative assets (CVA)	$	212	$	(334)
Derivative assets/liabilities (FVA)								Derivative assets/liabilities (FVA)	34		(60)
Derivative liabilities (DVA)								Derivative liabilities (DVA)	(13)		53

(1)At ~~March 31,~~September 30, 2021 and December 31, 2020, cumulative CVA reduced the derivative assets balance by ~~$491~~$434 million and $646 million, cumulative FVA reduced the net derivatives balance by ~~$129~~$143 million and $177 million, and cumulative DVA reduced the derivative liabilities balance by ~~$332~~$296 million and $309 million.


5561 Bank of America

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,~~September 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		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in millions)	(Dollars in millions)	March 31, 2021								(Dollars in millions)	September 30, 2021								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	$	52,395	$	2,169	$	(30)	$	54,534	Agency	$	50,756	$	1,631	$	(90)	$	52,297	$	59,518	$	2,370	$	(39)	$	61,849
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	4,618		132		(17)		4,733		Agency-collateralized mortgage obligations	3,684		103		(11)		3,776		5,112		161		(13)		5,260
Commercial	Commercial	16,013		840		(53)		16,800		Commercial	18,091		778		(50)		18,819		15,470		1,025		(4)		16,491
Non-agency residential (1)	Non-agency residential (1)	871		30		(43)		858		Non-agency residential (1)	799		39		(35)		803		899		127		(17)		1,009
Total mortgage-backed securities	Total mortgage-backed securities	73,897		3,171		(143)		76,925		Total mortgage-backed securities	73,330		2,551		(186)		75,695		80,999		3,683		(73)		84,609
U.S. Treasury and agency securities		158,352		2,161		(492)		160,021
U.S. Treasury and government agencies										U.S. Treasury and government agencies	167,419		1,869		(163)		169,125		114,157		2,236		(13)		116,380
Non-U.S. securities	Non-U.S. securities	14,767		7		(6)		14,768		Non-U.S. securities	12,289		4		—		12,293		14,009		15		(7)		14,017

Other taxable securities, substantially all asset-backed securities		2,519		43		(4)		2,558
Total taxable securities		249,535		5,382		(645)		254,272
Other taxable securities										Other taxable securities	2,589		45		(1)		2,633		2,656		61		(6)		2,711

Tax-exempt securities	Tax-exempt securities	16,023		328		(10)		16,341		Tax-exempt securities	15,312		321		(21)		15,612		16,417		389		(32)		16,774
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	270,939		4,790		(371)		275,358		228,238		6,384		(131)		234,491
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)	10,076		101		(158)		10,019		11,720		429		(39)		12,110
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	281,015		4,891		(529)		285,377		239,958		6,813		(170)		246,601
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	562,124		5,497		(8,031)		559,590		414,289		9,768		(36)		424,021

U.S. Treasury and government agencies										U.S. Treasury and government agencies	111,855		167		(2,614)		109,408		16,084		—		(71)		16,013

Other taxable securities										Other taxable securities	9,295		197		(157)		9,335		7,906		327		(87)		8,146

Total held-to-maturity debt securities										Total held-to-maturity debt securities	683,274		5,861		(10,802)		678,333		438,279		10,095		(194)		448,180
Total debt securities (3,4)	Total debt securities (3,4)	$	851,911	$	12,748	$	(14,489)	$	850,170	Total debt securities (3,4)	$	964,289	$	10,752	$	(11,331)	$	963,710	$	678,237	$	16,908	$	(364)	$	694,781

		December 31, 2020
Available-for-sale debt securities
Mortgage-backed securities:
Agency		$	59,518	$	2,370	$	(39)	$	61,849
Agency-collateralized mortgage obligations		5,112		161		(13)		5,260
Commercial		15,470		1,025		(4)		16,491
Non-agency residential (1)		899		127		(17)		1,009
Total mortgage-backed securities		80,999		3,683		(73)		84,609
U.S. Treasury and agency securities		114,157		2,236		(13)		116,380
Non-U.S. securities		14,009		15		(7)		14,017

Other taxable securities, substantially all asset-backed securities		2,656		61		(6)		2,711
Total taxable securities		211,821		5,995		(99)		217,717
Tax-exempt securities		16,417		389		(32)		16,774
Total available-for-sale debt securities		228,238		6,384		(131)		234,491
Other debt securities carried at fair value (2)		11,720		429		(39)		12,110
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
Total debt securities (3, 4)		$	678,237	$	16,908	$	(364)	$	694,781

(1)At ~~March 31,~~both September 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~~$76.4 billion and $65.5 billion at ~~March 31,~~September 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~~$348.6 billion and ~~$164.2~~$205.7 billion, and a fair value of ~~$312.1~~$348.4 billion and ~~$162.1~~$204.1 billion at ~~March 31,~~September 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,~~September 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~~$3.3 billion, net of the related income tax expense of ~~$1.3~~$1.1 billion. The Corporation had nonperforming AFS debt securities of $18 million and $20 million at ~~both March 31,~~September 30, 2021 and December 31, 2020.

At ~~March 31,~~September 30, 2021 and December 31, 2020, the Corporation had ~~$236.1~~$244.0 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 $31.3 billion and $34.5 billion in AFS debt securities at ~~both March 31,~~September 30, 2021 and December 31, 2020, the amount of expected credit

losses was insignificant. Substantially all of the 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,~~September 30, 2021 and December 31, 2020, the Corporation held equity securities at an aggregate fair value of ~~$758~~$611 million and $769 million and other equity securities, as valued under the measurement alternative, at a carrying value of ~~$255~~$268 million and $240 million, both of which are included in other assets. At ~~both March 31,~~September 30, 2021 and December 31, 2020, the Corporation also held money market investments at a fair value of $336 million and $1.6 billion, which are included in time deposits placed and other short-term investments.

During the three and nine months ended September 30, 2021, sales of AFS securities were not significant. For the same periods in 2020, the Corporation recorded gross realized gains of $4 million and $383 million and gross realized losses of $2 million and $4 million, resulting in net gains of $2 million and $379 million, with $1 million and $95 million of income taxes attributable to the realized net gains on sales of these AFS debt securities.


						Bank of America 5662

During the three months ended March 31, 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 in 2020, the Corporation recorded gross realized gains of $316 million and gross realized losses of $1 million, resulting in a net gain of $315 million, with $79 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,~~September 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)	September 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	$	10,421	$	(72)	$	1,037	$	(18)	$	11,458	$	(90)
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	1,864		(10)		316		(7)		2,180		(17)		Agency-collateralized mortgage obligations	1,528		(6)		192		(5)		1,720		(11)
Commercial	Commercial	1,177		(53)		2		0		1,179		(53)		Commercial	2,517		(35)		322		(15)		2,839		(50)
Non-agency residential	Non-agency residential	540		(28)		175		(15)		715		(43)		Non-agency residential	479		(25)		113		(10)		592		(35)
Total mortgage-backed securities	Total mortgage-backed securities	5,692		(121)		493		(22)		6,185		(143)		Total mortgage-backed securities	14,945		(138)		1,664		(48)		16,609		(186)
U.S. Treasury and agency securities		39,989		(488)		689		(4)		40,678		(492)
Non-U.S. securities		66		(1)		625		(5)		691		(6)
U.S. Treasury and government agencies														U.S. Treasury and government agencies	45,297		(151)		944		(12)		46,241		(163)

Other taxable securities, substantially all asset-backed securities		253		(2)		203		(2)		456		(4)
Total taxable securities		46,000		(612)		2,010		(33)		48,010		(645)

Other taxable securities														Other taxable securities	336		(1)		—		—		336		(1)

Tax-exempt securities	Tax-exempt securities	0		0		208		(10)		208		(10)		Tax-exempt securities	373		(9)		422		(12)		795		(21)

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	$	60,951	$	(299)	$	3,030	$	(72)	$	63,981	$	(371)

		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	$	—	$	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		—		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		8,282		(9)		498		(4)		8,780		(13)
U.S. Treasury and government agencies														U.S. Treasury and government agencies	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)
Total taxable securities		14,655		(71)		1,460		(28)		16,115		(99)
Other taxable securities														Other taxable securities	576		(2)		396		(4)		972		(6)

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)


5763 Bank of America

The remaining contractual maturity distribution and yields of the Corporation’s debt securities carried at fair value and HTM debt securities at ~~March 31,~~September 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	$	—	—	%	$	5	4.73	%	$	53	4.51	%	$	50,698	3.12	%	$	50,756	3.12	%
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	—		—		—		—		21		2.52		3,663		2.91		3,684		2.91
Commercial	Commercial	26		3.12		7,859		2.51		6,984		2.18		1,157		2.53		16,026		2.37		Commercial	354		2.32		10,257		2.48		5,857		1.75		1,636		2.18		18,104		2.21
Non-agency residential	Non-agency residential	0		0		0		0		0		0		1,573		6.55		1,573		6.55		Non-agency residential	—		—		—		—		—		—		1,442		6.59		1,442		6.59
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	354		2.32		10,262		2.48		5,931		1.78		57,439		3.17		73,986		2.96
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 government agencies																						U.S. Treasury and government agencies	4,988		1.25		33,785		1.65		128,893		1.07		29		2.57		167,695		1.20
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	20,658		0.30		370		3.01		344		1.03		61		51.33		21,433		0.51

Other taxable securities, substantially all asset-backed securities		990		1.19		903		2.98		370		2.20		256		1.66		2,519		2.03
Total taxable securities		30,190		0.56		38,324		2.03		131,228		0.87		60,115		3.39		259,857		1.60
Other taxable securities																						Other taxable securities	666		1.53		1,336		2.27		341		2.44		246		1.63		2,589		2.04

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	1,542		1.07		7,539		1.35		3,445		1.65		2,786		1.40		15,312		1.40
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	$	28,208	0.57		$	53,292	1.79		$	138,954	1.12		$	60,561	3.13		$	281,015	1.62
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	$	—	—	%	$	—	—	%	$	4	2.33	%	$	562,120	2.15	%	$	562,124	2.15	%

U.S. Treasury and government agencies																						U.S. Treasury and government agencies	—		—		—		—		111,855		1.35		—		—		111,855		1.35

Other taxable securities																						Other taxable securities	234		6.51		824		2.36		314		3.05		7,923		2.52		9,295		2.63

Total amortized cost of HTM debt securities																						Total amortized cost of HTM debt securities	$	234	6.51		$	824	2.36		$	112,173	1.35		$	570,043	2.16		$	683,274	2.03

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	$	—			$	5			$	57			$	52,235			$	52,297
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	0				0				24				4,709				4,733				Agency-collateralized mortgage obligations	—				—				21				3,755				3,776
Commercial	Commercial	27				8,294				7,300				1,192				16,813				Commercial	358				10,798				5,998				1,678				18,832
Non-agency residential	Non-agency residential	0				0				6				1,605				1,611				Non-agency residential	—				—				4				1,506				1,510
Total mortgage-backed securities	Total mortgage-backed securities	27				8,300				7,388				61,976				77,691				Total mortgage-backed securities	358				10,803				6,080				59,174				76,415
U.S. Treasury and agency securities		6,918				29,464				124,159				33				160,574
U.S. Treasury and government agencies																						U.S. Treasury and government agencies	5,024				34,884				129,463				30				169,401
Non-U.S. securities	Non-U.S. securities	22,209				1,373				1				162				23,745				Non-U.S. securities	20,534				373				347				59				21,313

Other taxable securities, substantially all asset-backed securities		992				937				375				257				2,561
Total taxable securities		30,146				40,074				131,923				62,428				264,571
Other taxable securities																						Other taxable securities	671				1,368				346				251				2,636

Tax-exempt securities	Tax-exempt securities	1,306				8,252				4,191				2,592				16,341				Tax-exempt securities	1,544				7,681				3,577				2,810				15,612
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	$	28,131			$	55,109			$	139,813			$	62,324			$	285,377
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	$	—			$	—			$	4			$	559,586			$	559,590

U.S. Treasury and government agencies																						U.S. Treasury and government agencies	—				—				109,408				—				109,408

Other taxable securities																						Other taxable securities	234				863				326				7,912				9,335

Total fair value of HTM debt securities																						Total fair value of HTM debt securities	$	234			$	863			$	109,738			$	567,498			$	678,333

(1)The weighted-average yield is computed based on a constant effective interest rate over the contractual life of each security. The average yield considers the contractual coupon and the amortization of premiums and accretion of discounts, excluding the effect of related hedging derivatives.

~~(2)Substantially all U.S. agency MBS.~~


						Bank of America 5864

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,~~September 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)	September 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	$	1,010		$	276		$	1,504		$	2,790		$	214,150					$	216,940
Home equity	Home equity	139			75			362			576			31,502								32,078			Home equity	132			69			366			567			28,433						29,000
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	286			198			450			934			75,935						76,869

Direct/Indirect consumer (2)	Direct/Indirect consumer (2)	143			44			27			214			91,523								91,737			Direct/Indirect consumer (2)	119			31			16			166			99,679						99,845
Other consumer	Other consumer	0			0			0			0			132								132			Other consumer	—			—			—			—			202						202
Total consumer	Total consumer	1,828			779			2,779			5,386			406,126								411,512			Total consumer	1,547			574			2,336			4,457			418,399						422,856
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)																$	616		616
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	1,547			574			2,336			4,457			418,399			616			423,472
Commercial	Commercial																								Commercial

U.S. commercial	U.S. commercial	1,201			220			349			1,770			281,459								283,229			U.S. commercial	640			234			238			1,112			294,815						295,927
Non-U.S. commercial	Non-U.S. commercial	112			26			105			243			91,092								91,335			Non-U.S. commercial	77			48			130			255			102,595						102,850
Commercial real estate (4)	Commercial real estate (4)	44			141			230			415			58,349								58,764			Commercial real estate (4)	138			—			208			346			60,377						60,723
Commercial lease financing	Commercial lease financing	138			25			48			211			16,148								16,359			Commercial lease financing	32			33			15			80			14,964						15,044
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)	70			43			66			179			22,591						22,770
Total commercial	Total commercial	1,560			453			839			2,852			481,721								484,573			Total commercial	957			358			657			1,972			495,342						497,314
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)																6,950			6,950
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	957			358			657			1,972			495,342			6,950			504,264
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)	$	2,504		$	932		$	2,993		$	6,429		$	913,741		$	7,566		$	927,736
Percentage of outstandings	Percentage of outstandings	0.37		%	0.14		%	0.40		%	0.91		%	98.31		%	0.78		%			100.00		%	Percentage of outstandings	0.27		%	0.10		%	0.32		%	0.69		%	98.49		%	0.82		%	100.00		%

(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of ~~$203~~$185 million and nonperforming loans of ~~$128~~$116 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of ~~$100~~$97 million and nonperforming loans of ~~$124~~$102 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of ~~$728~~$648 million. Consumer real estate loans current or less than 30 days past due includes $1.5 billion and direct/indirect consumer includes ~~$53~~$29 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~~$47.2 billion, U.S. securities-based lending loans of ~~$42.4~~$48.7 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~~$241 million and home equity loans of ~~$418~~$375 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of ~~$4.2~~$4.5 billion and non-U.S. commercial loans of ~~$2.1~~$2.4 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~~$56.6 billion and non-U.S. commercial real estate loans of ~~$3.0~~$4.1 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~~$150.2 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.


5965 Bank of America


		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	—			—			—			—			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~~$10.3 billion and $9.0 billion at ~~March 31,~~September 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~~$1.7 billion at ~~March 31,~~September 30, 2021 from $2.2 billion at December 31, 2020. Consumer nonperforming loans increased to ~~$3.1~~$3.0 billion at ~~March 31,~~September 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,~~September 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.


						Bank of America 6066


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)	September 30 2021		December 31 2020			September 30 2021		December 31 2020
Residential mortgage (2)	Residential mortgage (2)	$	2,366		$	2,005		$	728		$	762		Residential mortgage (2)	$	2,296	$	2,005		$	648	$	762
With no related allowance (3)	With no related allowance (3)	1,413			1,378			0			0			With no related allowance (3)	1,984		1,378			—		—
Home equity (2)	Home equity (2)	669			649			0			0			Home equity (2)	676		649			—		—
With no related allowance (3)	With no related allowance (3)	326			347			0			0			With no related allowance (3)	419		347			—		—
Credit Card	Credit Card	n/a			n/a			755			903			Credit Card	n/a		n/a			450		903
Direct/indirect consumer	Direct/indirect consumer	56			71			25			33			Direct/indirect consumer	45		71			8		33

Total consumer	Total consumer	3,091			2,725			1,508			1,698			Total consumer	3,017		2,725			1,106		1,698
U.S. commercial	U.S. commercial	1,228			1,243			99			228			U.S. commercial	909		1,243			84		228
Non-U.S. commercial	Non-U.S. commercial	342			418			4			10			Non-U.S. commercial	272		418			60		10
Commercial real estate	Commercial real estate	354			404			63			6			Commercial real estate	414		404			5		6
Commercial lease financing	Commercial lease financing	80			87			20			25			Commercial lease financing	70		87			11		25
U.S. small business commercial	U.S. small business commercial	67			75			98			115			U.S. small business commercial	32		75			64		115
Total commercial	Total commercial	2,071			2,227			284			384			Total commercial	1,697		2,227			224		384
Total nonperforming loans	Total nonperforming loans	$	5,162		$	4,952		$	1,792		$	2,082		Total nonperforming loans	$	4,714	$	4,952		$	1,330	$	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	0.51 %		0.54		%	0.14 %		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,~~September 30, 2021 and December 31, 2020 residential mortgage includes ~~$527~~$466 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~~$182 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,~~September 30, 2021, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.


6167 Bank of America

																															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 September 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	$	201,127	$	66,702	$	48,549	$	26,414	$	8,448	$	12,487	$	38,527
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	2,388		1,327		704		169		31		24		133
Greater than 100 percent	Greater than 100 percent	1,061		265		416		127		34		25		194		Greater than 100 percent	801		451		155		57		16		14		108
Fully-insured loans	Fully-insured loans	11,967		722		4,122		1,693		316		302		4,812		Fully-insured loans	12,624		2,945		3,698		1,370		253		259		4,099
Total Residential Mortgage	Total Residential Mortgage	$	214,779	$	26,131	$	67,881	$	37,070	$	11,558	$	17,206	$	54,933	Total Residential Mortgage	$	216,940	$	71,425	$	53,106	$	28,010	$	8,748	$	12,784	$	42,867

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	$	2,499	$	517	$	480	$	151	$	123	$	124	$	1,104
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	4,932		1,057		1,162		525		318		310		1,560
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	23,689		6,536		5,973		2,935		1,225		1,563		5,457
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	173,196		60,370		41,793		23,029		6,829		10,528		30,647
Fully-insured loans	Fully-insured loans	11,967		722		4,122		1,693		316		302		4,812		Fully-insured loans	12,624		2,945		3,698		1,370		253		259		4,099
Total Residential Mortgage	Total Residential Mortgage	$	214,779	$	26,131	$	67,881	$	37,070	$	11,558	$	17,206	$	54,933	Total Residential Mortgage	$	216,940	$	71,425	$	53,106	$	28,010	$	8,748	$	12,784	$	42,867


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)	September 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	$	28,529	$	1,789	$	19,526	$	7,214
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	192		83		47		62
Greater than 100 percent	Greater than 100 percent	441		156		104		181					Greater than 100 percent	279		105		70		104
Total Home Equity	Total Home Equity	$	32,078	$	2,157	$	21,317	$	8,604				Total Home Equity	$	29,000	$	1,977	$	19,643	$	7,380

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	$	930	$	240	$	214	$	476
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	1,483		230		497		756
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	4,807		487		2,509		1,811
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	21,780		1,020		16,423		4,337
Total Home Equity	Total Home Equity	$	32,078	$	2,157	$	21,317	$	8,604				Total Home Equity	$	29,000	$	1,977	$	19,643	$	7,380

(1)~~At March 31, 2021, includes~~Includes reverse mortgages of ~~$1.4~~$1.3 billion and home equity loans of ~~$800~~$646 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 September 30, 2021			Revolving Loans			2021			2020			2019			2018			2017			Prior			Total Credit Card as of September 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		$	677		$	14		$	117		$	110		$	139		$	95		$	122		$	80		$	2,846		$	2,686		$	160
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		2,194			15			890			464			355			173			165			132			8,665			8,460			205
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		8,083			63			3,544			1,869			1,290			565			390			362			26,939			26,740			199
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		36,456			97			12,248			9,572			7,425			3,284			1,940			1,890			38,419			38,370			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)		52,435			51,699			283			67			91			84			61			150			—			—			—
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		$	99,845		$	51,888		$	17,082		$	12,082		$	9,300		$	4,201		$	2,678		$	2,614		$	76,869		$	76,256		$	613

(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~~$51.7 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,~~September 30, 2021.

~~(3)Represents TDRs that were modified into term loans.~~


						Bank of America 6268


Commercial – Credit Quality Indicators By Vintage (1, 2)	Commercial – Credit Quality Indicators By Vintage (1, 2)																	Commercial – Credit Quality Indicators By Vintage (1, 2)
				Term Loans																	Term Loans
				Amortized Cost Basis by Origination Year																	Amortized Cost Basis by Origination Year

(Dollars in millions)	(Dollars in millions)	Total as of March 31, 2021		2021		2020		2019		2018		2017		Prior		Revolving Loans		(Dollars in millions)	Total as of September 30, 2021		2021		2020		2019		2018		2017		Prior		Revolving Loans
U.S. Commercial	U.S. Commercial																	U.S. Commercial
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	266,387	$	9,884	$	29,264	$	31,405	$	15,382	$	13,010	$	28,776	$	138,666	Pass rated	$	284,704	$	39,184	$	24,933	$	25,500	$	11,900	$	11,207	$	23,764	$	148,216
Reservable criticized	Reservable criticized	16,842		72		1,512		2,339		2,594		793		1,844		7,688		Reservable criticized	11,223		461		1,082		1,491		1,730		583		1,191		4,685
Total U.S. Commercial	Total U.S. Commercial	$	283,229	$	9,956	$	30,776	$	33,744	$	17,976	$	13,803	$	30,620	$	146,354	Total U.S. Commercial	$	295,927	$	39,645	$	26,015	$	26,991	$	13,630	$	11,790	$	24,955	$	152,901

Non-U.S. Commercial	Non-U.S. Commercial																	Non-U.S. Commercial
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	87,089	$	4,618	$	13,801	$	9,692	$	6,189	$	3,595	$	3,165	$	46,029	Pass rated	$	100,057	$	17,768	$	10,213	$	7,795	$	4,775	$	3,633	$	3,000	$	52,873
Reservable criticized	Reservable criticized	4,246		272		809		736		498		395		397		1,139		Reservable criticized	2,793		188		341		616		378		200		285		785
Total Non-U.S. Commercial	Total Non-U.S. Commercial	$	91,335	$	4,890	$	14,610	$	10,428	$	6,687	$	3,990	$	3,562	$	47,168	Total Non-U.S. Commercial	$	102,850	$	17,956	$	10,554	$	8,411	$	5,153	$	3,833	$	3,285	$	53,658

Commercial Real Estate	Commercial Real Estate																	Commercial Real Estate
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	49,019	$	1,535	$	8,053	$	13,295	$	7,503	$	4,590	$	9,241	$	4,802	Pass rated	$	52,861	$	8,993	$	7,653	$	12,445	$	7,021	$	3,742	$	7,669	$	5,338
Reservable criticized	Reservable criticized	9,745		143		794		2,688		2,225		1,356		1,910		629		Reservable criticized	7,862		209		993		1,972		1,856		996		1,339		497
Total Commercial Real Estate	Total Commercial Real Estate	$	58,764	$	1,678	$	8,847	$	15,983	$	9,728	$	5,946	$	11,151	$	5,431	Total Commercial Real Estate	$	60,723	$	9,202	$	8,646	$	14,417	$	8,877	$	4,738	$	9,008	$	5,835

Commercial Lease Financing	Commercial Lease Financing																	Commercial Lease Financing
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	15,666	$	437	$	2,938	$	3,123	$	2,597	$	2,331	$	4,240	$	0	Pass rated	$	14,640	$	1,515	$	2,641	$	2,921	$	2,203	$	2,020	$	3,340	$	—
Reservable criticized	Reservable criticized	693		28		110		148		112		70		225		0		Reservable criticized	404		27		11		96		71		52		147		—
Total Commercial Lease Financing	Total Commercial Lease Financing	$	16,359	$	465	$	3,048	$	3,271	$	2,709	$	2,401	$	4,465	$	0	Total Commercial Lease Financing	$	15,044	$	1,542	$	2,652	$	3,017	$	2,274	$	2,072	$	3,487	$	—

U.S. Small Business Commercial (3)	U.S. Small Business Commercial (3)																	U.S. Small Business Commercial (3)
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	27,410	$	8,323	$	15,411	$	1,118	$	829	$	729	$	838	$	162	Pass rated	$	15,149	$	6,414	$	4,524	$	1,101	$	800	$	665	$	1,504	$	141
Reservable criticized	Reservable criticized	911		2		60		201		173		131		335		9		Reservable criticized	546		7		32		111		99		78		216		3
Total U.S. Small Business Commercial	Total U.S. Small Business Commercial	$	28,321	$	8,325	$	15,471	$	1,319	$	1,002	$	860	$	1,173	$	171	Total U.S. Small Business Commercial	$	15,695	$	6,421	$	4,556	$	1,212	$	899	$	743	$	1,720	$	144
Total	Total	$	478,008	$	25,314	$	72,752	$	64,745	$	38,102	$	27,000	$	50,971	$	199,124	Total	$	490,239	$	74,766	$	52,423	$	54,048	$	30,833	$	23,176	$	42,455	$	212,538

(1) Excludes ~~$6.3~~$7.0 billion of loans accounted for under the fair value option at ~~March 31,~~September 30, 2021.

(2) Includes ~~$41~~$18 million of loans that converted from revolving to term loans.

(3) Excludes U.S. Small Business Card loans of ~~$6.6~~$7.1 billion. Refreshed FICO scores for this portfolio are ~~$230~~$188 million for less than 620; ~~$553~~$572 million for greater than or equal to 620 and less than 680; ~~$1.7~~$1.8 billion for greater than or equal to 680 and less than 740; and ~~$4.1~~$4.5 billion greater than or equal to 740.


6369 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.


						Bank of America 6470


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			—			—			—
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)	Commercial – Credit Quality Indicators By Vintage (1, 2)																	Commercial – Credit Quality Indicators By Vintage (1, 2)
				Term Loans																	Term Loans
				Amortized Cost Basis by Origination Year																	Amortized Cost Basis by Origination Year

(Dollars in millions)	(Dollars in millions)	Total as of December 31, 2020		2020		2019		2018		2017		2016		Prior		Revolving Loans		(Dollars in millions)	Total as of December 31, 2020		2020		2019		2018		2017		2016		Prior		Revolving Loans
U.S. Commercial	U.S. Commercial																	U.S. Commercial
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	268,812	$	33,456	$	33,305	$	17,363	$	14,102	$	7,420	$	21,784	$	141,382	Pass rated	$	268,812	$	33,456	$	33,305	$	17,363	$	14,102	$	7,420	$	21,784	$	141,382
Reservable criticized	Reservable criticized	19,916		2,524		2,542		2,689		854		698		1,402		9,207		Reservable criticized	19,916		2,524		2,542		2,689		854		698		1,402		9,207
Total U.S. Commercial	Total U.S. Commercial	$	288,728	$	35,980	$	35,847	$	20,052	$	14,956	$	8,118	$	23,186	$	150,589	Total U.S. Commercial	$	288,728	$	35,980	$	35,847	$	20,052	$	14,956	$	8,118	$	23,186	$	150,589

Non-U.S. Commercial	Non-U.S. Commercial																	Non-U.S. Commercial
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	85,914	$	16,301	$	11,396	$	7,451	$	5,037	$	1,674	$	2,194	$	41,861	Pass rated	$	85,914	$	16,301	$	11,396	$	7,451	$	5,037	$	1,674	$	2,194	$	41,861
Reservable criticized	Reservable criticized	4,546		914		572		492		436		138		259		1,735		Reservable criticized	4,546		914		572		492		436		138		259		1,735
Total Non-U.S. Commercial	Total Non-U.S. Commercial	$	90,460	$	17,215	$	11,968	$	7,943	$	5,473	$	1,812	$	2,453	$	43,596	Total Non-U.S. Commercial	$	90,460	$	17,215	$	11,968	$	7,943	$	5,473	$	1,812	$	2,453	$	43,596

Commercial Real Estate	Commercial Real Estate																	Commercial Real Estate
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	50,260	$	8,429	$	14,126	$	8,228	$	4,599	$	3,299	$	6,542	$	5,037	Pass rated	$	50,260	$	8,429	$	14,126	$	8,228	$	4,599	$	3,299	$	6,542	$	5,037
Reservable criticized	Reservable criticized	10,104		933		2,558		2,115		1,582		606		1,436		874		Reservable criticized	10,104		933		2,558		2,115		1,582		606		1,436		874
Total Commercial Real Estate	Total Commercial Real Estate	$	60,364	$	9,362	$	16,684	$	10,343	$	6,181	$	3,905	$	7,978	$	5,911	Total Commercial Real Estate	$	60,364	$	9,362	$	16,684	$	10,343	$	6,181	$	3,905	$	7,978	$	5,911

Commercial Lease Financing	Commercial Lease Financing																	Commercial Lease Financing
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	16,384	$	3,083	$	3,242	$	2,956	$	2,532	$	1,703	$	2,868	$	0	Pass rated	$	16,384	$	3,083	$	3,242	$	2,956	$	2,532	$	1,703	$	2,868	$	—
Reservable criticized	Reservable criticized	714		117		117		132		81		88		179		0		Reservable criticized	714		117		117		132		81		88		179		—
Total Commercial Lease Financing	Total Commercial Lease Financing	$	17,098	$	3,200	$	3,359	$	3,088	$	2,613	$	1,791	$	3,047	$	0	Total Commercial Lease Financing	$	17,098	$	3,200	$	3,359	$	3,088	$	2,613	$	1,791	$	3,047	$	—

U.S. Small Business Commercial (3)	U.S. Small Business Commercial (3)																	U.S. Small Business Commercial (3)
Risk ratings	Risk ratings																	Risk ratings
Pass rated	Pass rated	$	28,786	$	24,539	$	1,121	$	837	$	735	$	527	$	855	$	172	Pass rated	$	28,786	$	24,539	$	1,121	$	837	$	735	$	527	$	855	$	172
Reservable criticized	Reservable criticized	1,148		76		239		210		175		113		322		13		Reservable criticized	1,148		76		239		210		175		113		322		13
Total U.S. Small Business Commercial	Total U.S. Small Business Commercial	$	29,934	$	24,615	$	1,360	$	1,047	$	910	$	640	$	1,177	$	185	Total U.S. Small Business Commercial	$	29,934	$	24,615	$	1,360	$	1,047	$	910	$	640	$	1,177	$	185
Total	Total	$	486,584	$	90,372	$	69,218	$	42,473	$	30,133	$	16,266	$	37,841	$	200,281	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.


71Bank of America

During the ~~three~~nine months ended ~~March 31,~~September 30, 2021, commercial ~~asset~~credit quality showed signs of stabilization as ~~economic recovery gained momentum.~~the economy continued to recover. Commercial reservable criticized utilized exposure decreased to ~~$34.3~~$24.1 billion at ~~March 31,~~September 30, 2021 from $38.7 billion (to ~~6.59~~4.53 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~~$323 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,~~September 30, 2021, of which ~~$103~~$95 million were classified as nonperforming and ~~$65~~$57 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,~~September 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~~$87 million and $123 million at ~~March 31,~~September 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,~~September 30, 2021 was $1.1 billion. ~~Although~~During the ~~Corporation has paused formal loan foreclosure proceedings and foreclosure sales for occupied properties, during the three~~nine months ended ~~March 31,~~September 30, 2021, the Corporation reclassified ~~$10~~$33 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,~~September 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 nine months ended ~~March 31,~~September 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 Nine Months Ended September 30, 2021 and 2020												Consumer Real Estate – TDRs Entered into During the Three and Nine Months Ended September 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 September 30, 2021				Nine Months Ended September 30, 2021

Residential mortgage	Residential mortgage	$	519	$	464	3.50	%	3.48	%			Residential mortgage	$	451	$	399	3.52	%	3.49	%	$	832	$	742	3.49	%	3.44	%
Home equity	Home equity	62		49		3.43		3.44				Home equity	61		45		3.51		3.51		97		73		3.56		3.58
Total	Total	$	581	$	513	3.49		3.48				Total	$	512	$	444	3.52		3.49		$	929	$	815	3.50		3.46

													Three Months Ended September 30, 2020								Nine Months Ended September 30, 2020
		March 31, 2020
Residential mortgage	Residential mortgage	$	122	$	103	4.04	%	3.94	%			Residential mortgage	$	103	$	88	4.06	%	3.99	%	$	294	$	244	4.07	%	3.90	%
Home equity	Home equity	23		20		4.69		4.68				Home equity	12		10		4.25		4.08		56		45		3.85		3.73
Total	Total	$	145	$	123	4.15		4.06				Total	$	115	$	98	4.08		4.00		$	350	$	289	4.03		3.87

(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.

The following table presents the March 31, 2021 and 2020 carrying value for consumer real estate loans that were modified in a TDR during the three months ended March 31, 2021 and 2020, by type of modification.


						Bank of America 6672

Consumer Real Estate – Modification Programs (1)
TDRs Entered into During the
Three Months Ended March 31
(Dollars in millions) 2021 2020
Modifications under government programs $ 1 $ 1
Modifications under proprietary programs 472 28
Loans discharged in Chapter 7 bankruptcy (2)
11 15
Trial modifications 29 79
Total modifications $ 513 $ 123
The table below presents the September 30, 2021 and 2020 carrying value for consumer real estate loans that were modified in a TDR during the three and nine months ended September 30, 2021 and 2020, by type of modification.



Consumer Real Estate – Modification Programs

	TDRs Entered into During the
	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2021		2020		2021		2020
Modifications under government programs	$	—	$	—	$	4	$	8




Modifications under proprietary programs	417		50		740		136





Loans discharged in Chapter 7 bankruptcy (1)	9		15		29		44
Trial modifications	18		33		42		101
Total modifications	$	444	$	98	$	815	$	289

~~(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 nine months ended ~~March 31,~~September 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 September 30	Nine Months Ended September 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	$	6	$	3	$	14
Modifications under proprietary programs	Modifications under proprietary programs	12		14							Modifications under proprietary programs	35		8		80		27
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)	1		4		6		15
Trial modifications ~~(3)~~(2)	Trial modifications ~~(3)~~(2)	6		18							Trial modifications ~~(3)~~(2)	3		15		15		45
Total modifications	Total modifications	$	22	$	45						Total modifications	$	40	$	33	$	104	$	101

~~(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~~who 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,~~September 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 nine months ended ~~March 31,~~September 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 Nine Months Ended September 30, 2021 and 2020																Credit Card and Other Consumer – TDRs Entered into During the Three and Nine Months Ended September 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 September 30, 2021								Nine Months Ended September 30, 2021

Credit card	Credit card	$	82	$	90	18.55	%	4.97	%							Credit card	$	66		$	71		18.48	%		3.71	%		$	189	$	200	18.47	%	4.26 %

Direct/Indirect consumer	Direct/Indirect consumer	8		5		5.64		5.64								Direct/Indirect consumer	4			2			5.20			5.20			13		8		5.53		5.53

Total	Total	$	90	$	95	17.85		5.01								Total	$	70		$	73		18.06			3.76			$	202	$	208	17.99		4.31

		March 31, 2020										Three Months Ended September 30, 2020								Nine Months Ended September 30, 2020
Credit card	Credit card	$	94	$	101	18.52	%	5.30	%							Credit card	$	71		$	77		18.19	%		6.86	%		$	203	$	214	18.06	%	5.82	%

Direct/Indirect consumer	Direct/Indirect consumer	17		9		5.34		5.34								Direct/Indirect consumer	35			29			6.02			6.02			50		37		5.87		5.87

Total	Total	$	111	$	110	17.40		5.30								Total	$	106		$	106		14.85			6.63			$	253	$	251	16.29		5.83

~~(2)~~Includes accrued interest and fees.


73Bank of America

The ~~following~~ table below presents the ~~March 31,~~September 30, 2021 and 2020 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three and nine months ended ~~March 31,~~September 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 September 30				TDRs Entered into During the Nine Months Ended September 30
(Dollars in millions)	2021		2020		2021		2020
Internal programs	$	60	$	80	$	166	$	178
External programs	11		19		37		59
Other	2		7		5		14
Total	$	73	$	106	$	208	$	251

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 1210 percent of new credit card TDRs and 2016 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 nine months ended ~~March 31,~~September 30, 2021, ~~and 2020,~~ the carrying value of the Corporation’s commercial loans that were modified as TDRs was ~~$680~~$213 million and ~~$876 million.~~$1.1 billion compared to $588 million and $1.5 billion for the same periods in 2020. At ~~March 31,~~September 30, 2021 and December 31, 2020, the Corporation had ~~$2.0 billion and $1.7 billion of commercial TDRs with remaining~~ commitments to lend ~~additional funds to debtors of $364~~$272 million and $402 ~~million.~~million to commercial borrowers whose loans are classified as

TDRs. The balance of commercial TDRs in payment default was ~~$198~~$168 million and $218 million at ~~March 31,~~September 30, 2021 and December 31, 2020.

Loans Held-for-sale

The Corporation had LHFS of ~~$7.9~~$9.4 billion and $9.2 billion at ~~March 31,~~September 30, 2021 and December 31, 2020. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were ~~$9.9~~$27.0 billion and ~~$7.5~~$16.1 billion for the ~~three~~nine months ended ~~March 31,~~September 30, 2021 and 2020. Cash used for originations and purchases of LHFS totaled approximately ~~$8.3~~$27.0 billion and ~~$6.1~~$11.1 billion for the ~~three~~nine months ended ~~March 31,~~September 30, 2021 and 2020.

Accrued Interest Receivable

Accrued interest receivable for loans and leases and loans held-for-sale at ~~both March 31,~~September 30, 2021 and December 31, 2020 was $2.2 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 nine months ended ~~March 31,~~September 30, 2021, the Corporation reversed ~~$158~~$87 million and $369 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 nine months ended ~~March 31,~~September 30, 2021, ~~the Corporation reversed $8 million of~~ interest and fee income reversed at the time the loans were classified as nonperforming ~~against the income statement line item in which it~~ was ~~originally recorded.~~not significant. 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.


						Bank of America74

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,~~September 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~~consider the ~~continued~~potential for improvement in the consensus outlooks. The weighted economic outlook ~~assumed~~assumes that the U.S. unemployment rate ~~at the end of 2021~~ will be ~~relatively consistent with~~just above 5 percent by the ~~level as~~fourth quarters of ~~March 2021,~~2022 and 2023, which ~~was slightly above six percent.~~includes the impacts of the downside scenarios noted above. Additionally, in this economic outlook, U.S. gross domestic product ~~was assumed~~is forecasted to ~~return to pre-pandemic levels~~grow at 1.8 percent and 1.9 percent year-over-year in the ~~end~~fourth quarters of ~~2021.~~2022 and 2023. 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~~While there has been improvement across the economy, the Corporation ~~also factored~~continues to factor 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.~~pandemic.

The allowance for credit losses at ~~March 31,~~September 30, 2021 was ~~$18.0~~$14.7 billion, a decrease of ~~$2.7~~$6.0 billion compared to

December 31, 2020. The decrease in the allowance for credit losses was primarily driven by ~~an improved~~improvements in the macroeconomic outlook and ~~loan balance declines.~~credit quality. The ~~decrease~~change in the allowance for credit losses was comprised of a net decrease of ~~$2.6~~$5.6 billion in the allowance for loan and lease losses and a ~~$49~~$340 million decrease in the reserve for unfunded lending commitments. The decrease in the allowance for credit losses was attributed to ~~$182~~$342 million in the consumer real estate portfolio, ~~$1.3~~$2.6 billion in the credit card and other consumer portfolio, and ~~$1.2~~$3.1 billion in the commercial portfolio. Similarly, the provision for credit losses improved $2.0 billion to a benefit of $624 million and $15.4 billion to a benefit of $4.1 billion for the three and nine months ended September 30, 2021 compared to the same periods in 2020. The benefit in the three-month period was primarily due to credit quality improvements. The benefit in the nine-month period was primarily driven by improvements in the macroeconomic outlook and credit quality.

Outstanding loans and leases excluding loans accounted for under the fair value option decreased ~~$25.1~~$1.0 billion in the ~~three~~nine months ended ~~March 31,~~September 30, 2021 driven by consumer loans, which decreased ~~$16.5~~$5.2 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 in credit card loans from seasonality and higher payments.~~leases, excluding small business, increased $17.9 billion during the nine months ended September 30, 2021, primarily driven by Global Markets.

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


75Bank of America



	Consumer Real Estate		Credit Card and Other Consumer		Commercial		Total
(Dollars in millions)	Three Months Ended September 30, 2021
Allowance for loan and lease losses, July 1	$	597	$	6,835	$	6,663	$	14,095
Loans and leases charged off	(15)		(626)		(165)		(806)
Recoveries of loans and leases previously charged off	56		256		31		343
Net charge-offs	41		(370)		(134)		(463)

Provision for loan and lease losses	(85)		175		(565)		(475)
Other	2		(1)		(3)		(2)
Allowance for loan and lease losses, September 30	555		6,639		5,961		13,155
Reserve for unfunded lending commitments, July 1	107		—		1,580		1,687
Provision for unfunded lending commitments	(9)		—		(140)		(149)

Reserve for unfunded lending commitments, September 30	98		—		1,440		1,538
Allowance for credit losses, September 30	$	653	$	6,639	$	7,401	$	14,693

	Three Months Ended September 30, 2020
Allowance for loan and lease losses, July 1	$	833	$	10,122	$	8,434	$	19,389
Loans and leases charged off	(13)		(810)		(470)		(1,293)
Recoveries of loans and leases previously charged off	39		220		62		321
Net charge-offs	26		(590)		(408)		(972)

Provision for loan and lease losses	(6)		304		882		1,180
Other	2		—		(3)		(1)
Allowance for loan and lease losses, September 30	855		9,836		8,905		19,596


Reserve for unfunded lending commitments, July 1	141		—		1,561		1,702
Provision for unfunded lending commitments	(3)		—		212		209
Other	—		—		(1)		(1)
Reserve for unfunded lending commitments, September 30	138		—		1,772		1,910
Allowance for credit losses, September 30	$	993	$	9,836	$	10,677	$	21,506

(Dollars in millions)	Nine Months Ended September 30, 2021
Allowance for loan and lease losses, January 1	$	858	$	9,213	$	8,731	$	18,802
Loans and leases charged off	(60)		(2,402)		(591)		(3,053)
Recoveries of loans and leases previously charged off	170		757		245		1,172
Net charge-offs	110		(1,645)		(346)		(1,881)
Provision for loan and lease losses	(414)		(929)		(2,423)		(3,766)
Other	1		—		(1)		—
Allowance for loan and lease losses, September 30	555		6,639		5,961		13,155
Reserve for unfunded lending commitments, January 1	137		—		1,741		1,878
Provision for unfunded lending commitments	(39)		—		(300)		(339)
Other	—		—		(1)		(1)
Reserve for unfunded lending commitments, September 30	98		—		1,440		1,538
Allowance for credit losses, September 30	$	653	$	6,639	$	7,401	$	14,693

	Nine Months Ended September 30, 2020
Allowance for loan and lease losses, January 1	$	440	$	7,430	$	4,488	$	12,358
Loans and leases charged off	(75)		(2,916)		(1,199)		(4,190)
Recoveries of loans and leases previously charged off	147		674		129		950
Net charge-offs	72		(2,242)		(1,070)		(3,240)
Provision for loan and lease losses	336		4,648		5,496		10,480
Other	7		—		(9)		(2)
Allowance for loan and lease losses, September 30	855		9,836		8,905		19,596
Reserve for unfunded lending commitments, January 1	119		—		1,004		1,123
Provision for unfunded lending commitments	19		—		768		787

Reserve for unfunded lending commitments, September 30	138		—		1,772		1,910
Allowance for credit losses, September 30	$	993	$	9,836	$	10,677	$	21,506

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,~~September 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,~~September 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 Note 5 – Outstanding Loans and Leases and Allowance for Credit


						Bank of America76

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~~nine months ended ~~March 31,~~September 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,~~September 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 nine months ended ~~March 31,~~September 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 September 30					Nine Months Ended September 30		Three Months Ended September 30				Nine Months Ended September 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)	$	2,153	$	1,698	$	5,047	$	14,625	$	3,122	$	945	$	5,961	$	3,237
Gains on securitizations (2)	Gains on securitizations (2)	2		6				33		41			Gains on securitizations (2)	3		3		8		724		41		17		105		57
Repurchases from securitization trusts (3)	Repurchases from securitization trusts (3)	80		128				0		0			Repurchases from securitization trusts (3)	156		68		512		363		—		—		—		—

(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~~$24 million and ~~$27~~$97 million, net of hedges, during the three and nine months ended ~~March 31,~~September 30, 2021 compared to $44 million and $105 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~~$129.6 billion and ~~$182.9~~$172.5 billion at ~~March 31,~~September 30, 2021 and 2020. Servicing fee and ancillary fee income on serviced loans was ~~$113~~$101 million and ~~$128~~$318 million during the three and nine months ended ~~March 31,~~September 30, 2021 compared to $101 million and $353 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,~~September 30, 2021 and December 31, 2020. For more information on MSRs, see Note 14 – Fair Value Measurements.

During the nine months ended September 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,~~September 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


77Bank of America



First-lien Mortgage VIEs

	Residential Mortgage
					Non-agency
	Agency				Prime				Subprime				Alt-A				Commercial Mortgage

(Dollars in millions)	Sep 30 2021		December 31 2020		Sep 30 2021		December 31 2020		Sep 30 2021		December 31 2020		Sep 30 2021		December 31 2020		Sep 30 2021		December 31 2020
Unconsolidated VIEs
Maximum loss exposure (1)	$	12,308	$	13,477	$	219	$	250	$	992	$	1,031	$	51	$	46	$	1,343	$	1,169
On-balance sheet assets
Senior securities:
Trading account assets	$	230	$	152	$	18	$	2	$	26	$	8	$	20	$	12	$	53	$	60
Debt securities carried at fair value	5,738		7,588		80		103		638		676		30		33		—		—
Held-to-maturity securities	6,340		5,737		—		—		—		—		—		—		1,047		925
All other assets	—		—		6		6		26		26		1		1		68		50
Total retained positions	$	12,308	$	13,477	$	104	$	111	$	690	$	710	$	51	$	46	$	1,168	$	1,035
Principal balance outstanding (2)	$	106,969	$	133,497	$	5,059	$	6,081	$	5,995	$	6,691	$	14,404	$	16,554	$	70,864	$	59,268

Consolidated VIEs
Maximum loss exposure (1)	$	1,174	$	1,328	$	10	$	66	$	23	$	53	$	—	$	—	$	—	$	—
On-balance sheet assets
Trading account assets	$	1,174	$	1,328	$	38	$	350	$	217	$	260	$	—	$	—	$	—	$	—




Total assets	$	1,174	$	1,328	$	38	$	350	$	217	$	260	$	—	$	—	$	—	$	—




Total liabilities	$	—	$	—	$	28	$	284	$	194	$	207	$	—	$	—	$	—	$	—

(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,~~September 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)	Sep 30 2021		December 31 2020			Sep 30 2021		December 31 2020			Sep 30 2021		December 31 2020			Sep 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	$	167	$	206		$	—	$	—		$	6,896	$	8,543		$	3,862	$	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	$	—	$	—		$	—	$	—		$	1,306	$	948		$	—	$	—
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			—		—			2,087		2,727			—		—
Held-to-maturity securities	Held-to-maturity securities	0		0		0		0		4,394		4,868		0		0			Held-to-maturity securities	—		—			—		—			3,503		4,868			—		—

Total retained positions	Total retained positions	$	2	$	2	$	0	$	0	$	7,532	$	8,543	$	0	$	0		Total retained positions	$	1	$	2		$	—	$	—		$	6,896	$	8,543		$	—	$	—
Total assets of VIEs	Total assets of VIEs	$	557	$	609	$	0	$	0	$	16,056	$	17,250	$	4,115	$	4,042		Total assets of VIEs	$	455	$	609		$	—	$	—		$	16,665	$	17,250		$	4,417	$	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	$	48	$	58		$	9,944	$	14,606		$	211	$	217		$	301	$	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	$	—	$	—		$	—	$	—		$	219	$	217		$	261	$	990

Loans and leases	Loans and leases	201		218		16,798		21,310		0		0		0		0			Loans and leases	168		218			14,139		21,310			—		—			—		—
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	14		14			(1,005)		(1,704)			—		—			—		—

All other assets	All other assets	4		4		1,295		1,289		0		0		40		40			All other assets	3		4			67		1,289			—		—			40		40
Total assets	Total assets	$	220	$	236	$	16,820	$	20,895	$	381	$	217	$	565	$	1,030		Total assets	$	185	$	236		$	13,201	$	20,895		$	219	$	217		$	301	$	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	$	—	$	—		$	—	$	—		$	—	$	—		$	280	$	432
Long-term debt	Long-term debt	165		178		4,698		6,273		4		0		0		0			Long-term debt	138		178			3,247		6,273			8		—			—		—
All other liabilities	All other liabilities	0		0		11		16		0		0		0		0			All other liabilities	—		—			10		16			—		—			—		—
Total liabilities	Total liabilities	$	165	$	178	$	4,709	$	6,289	$	4	$	0	$	301	$	432		Total liabilities	$	138	$	178		$	3,257	$	6,289		$	8	$	—		$	280	$	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,~~September 30, 2021 and December 31, 2020, loans and leases in the consolidated credit card trust included ~~$5.0~~$4.0 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 of credit, performance of the loans, the amount of subsequent draws and the timing of related cash flows.


						Bank of America78

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 nine months ended September 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~~nine months ended ~~March 31, 2021 and~~September 30, 2020.

At ~~March 31,~~September 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~~$6.5 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 0zero percent. There were $161 million of these subordinate securities issued by the credit card securitization trust during the nine months ended September 30, 2021. No subordinate securities were issued by the credit card securitization trust during the ~~three~~nine months ended ~~March 31, 2021 and~~September 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~~$20.6 billion of securities during the three and nine months ended ~~March 31,~~September 30, 2021 compared to $8.3 billion and $26.4 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 nine months ended ~~March 31,~~September 30, 2021 and 2020, resecuritization proceeds included securities with an initial fair value of ~~$178~~$1.0 billion and $1.6 billion compared to $598 million and ~~$526 million.~~$5.5 billion, of which substantially all of the securities in the current-year period were classified as trading account assets. All of the securities received as resecuritization proceeds during the three months ended September 30, 2020 were classified as trading account assets. Of the securities received as resecuritization proceeds during the nine months ended September 30, 2020, $1.8 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~~$3.9 billion and $3.5 billion at ~~March 31,~~September 30, 2021 and December 31, 2020. The weighted-average remaining life of bonds held in the trusts at ~~March 31,~~September 30, 2021 was ~~6.5~~6.4 years. There were no significant write-downs or downgrades of assets or issuers during the ~~three~~nine months ended ~~March 31,~~September 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,~~September 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)	September 30, 2021						December 31, 2020
Maximum loss exposure	$	4,831	$	25,409	$	30,240	$	4,106	$	23,870	$	27,976
On-balance sheet assets
Trading account assets	$	2,523	$	577	$	3,100	$	2,080	$	623	$	2,703
Debt securities carried at fair value	—		7		7		—		9		9
Loans and leases	2,550		39		2,589		2,108		184		2,292
Allowance for loan and lease losses	(3)		(5)		(8)		(3)		(3)		(6)


All other assets	26		24,302		24,328		54		22,553		22,607
Total	$	5,096	$	24,920	$	30,016	$	4,239	$	23,366	$	27,605
On-balance sheet liabilities

Short-term borrowings	$	50	$	—	$	50	$	22	$	—	$	22
Long-term debt	215		—		215		111		—		111
All other liabilities	—		6,109		6,109		—		5,658		5,658
Total	$	265	$	6,109	$	6,374	$	133	$	5,658	$	5,791
Total assets of VIEs	$	5,096	$	86,035	$	91,131	$	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~~$2.8 billion and $2.3 billion at ~~March 31,~~September 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.


79Bank of America

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~~$258 million and $298 million at ~~March 31,~~September 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,~~September 30, 2021 and December 31, 2020, the Corporation’s consolidated investment VIEs had total assets of ~~$780 million~~$1.0 billion 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,~~September 30, 2021 and December 31, 2020. The Corporation’s maximum loss exposure associated with both consolidated and unconsolidated investment VIEs totaled ~~$1.9~~$2.0 billion and $1.5 billion at ~~March 31,~~September 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~~$1.5 billion and $1.7 billion at ~~March 31,~~September 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~~$23.5 billion and $22.0 billion at ~~March 31,~~September 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,~~September 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~~$350 million and ~~$268~~$1.1 billion and reported pretax losses in other income of $282 million and $837 million for the three and nine months ended September 30, 2021. For the same periods in 2020, the Corporation recognized tax credits and other tax benefits of $376 million and $986 million and reported pretax losses in other income of ~~$276~~$272 million and ~~$272~~$799 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,~~September 30, 2021 and December 31, 2020. The reporting units utilized for goodwill impairment testing are the operating segments or one level below.


Goodwill	Goodwill					Goodwill

		March 31		December 31			September 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 September 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,~~September 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~~$19 million and ~~$16~~$56 million for the three and nine months ended ~~March 31,~~September 30, 2021 compared to $30 million and $62 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.


						Bank of America80

The table below presents the net investment in sales-type and direct financing leases at ~~March 31,~~September 30, 2021 and December 31, 2020.


Net Investment (1)	Net Investment (1)					Net Investment (1)

		March 31		December 31			September 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	$	16,458	$	17,627
Unguaranteed residuals	Unguaranteed residuals	2,243		2,303		Unguaranteed residuals	2,137		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	$	18,595	$	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,~~September 30, 2021 and December 31, 2020.

The table below presents lease income for the three and nine months ended ~~March 31,~~September 30, 2021 and 2020.


Lease Income	Lease Income					Lease Income

		Three Months Ended March 31
							Three Months Ended September 30				Nine Months Ended September 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	$	167	$	468	$	539
Operating leases	Operating leases	231		243		Operating leases	235		224		689		703
Total lease income	Total lease income	$	395	$	440	Total lease income	$	387	$	391	$	1,157	$	1,242

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,~~September 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

	September 30		December 31
(Dollars in millions)	2021		2020
Right-of-use asset	$	10,091	$	10,000
Lease liabilities	10,707		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 September 30												Nine Months Ended September 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	$	270,094	0.01	%	$	384,221	0.06	%	$	263,581	(0.02)	%	$	325,356	0.37	%
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	278,684		n/a		420,830		n/a		278,684		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	$	220,741	0.29	%	$	192,376	0.41	%	$	212,214	0.26	%	$	193,029	0.81	%
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	217,825		n/a		195,028		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	20,862		(0.19)		17,770		0.08		20,714		(0.14)		23,347		0.68
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	21,293		n/a		19,530		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,~~September 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


81Bank of America



Securities Financing Agreements

	Gross Assets/Liabilities (1)		Amounts Offset		Net Balance Sheet Amount		Financial Instruments (2)		Net Assets/Liabilities
(Dollars in millions)	September 30, 2021
Securities borrowed or purchased under agreements to resell (3)	$	533,965	$	(272,031)	$	261,934	$	(240,436)	$	21,498

Securities loaned or sold under agreements to repurchase	$	479,459	$	(272,031)	$	207,428	$	(195,260)	$	12,168
Other (4)	10,167		—		10,167		(10,167)		—
Total	$	489,626	$	(272,031)	$	217,595	$	(205,427)	$	12,168

	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		—		16,210		(16,210)		—
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~~$18.8 billion and $14.7 billion reported in loans and leases on the Consolidated Balance Sheet at ~~March 31,~~September 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)	September 30, 2021
Securities sold under agreements to repurchase	$	211,770	$	142,591	$	32,455	$	42,678	$	429,494
Securities loaned	43,780		87		428		5,670		49,965
Other	10,167		—		—		—		10,167
Total	$	265,717	$	142,678	$	32,883	$	48,348	$	489,626

	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		—		—		—		16,210
Total	$	193,750	$	122,719	$	33,178	$	25,215	$	374,862

(1)No agreements have maturities greater than three years.


						Bank of America 7482

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)	September 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	$	223,197	$	—	$	—	$	223,197
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	13,003		2,809		1,053		16,865
Equity securities	Equity securities	17,103		28,334		16,462		61,899		Equity securities	22,221		47,016		9,060		78,297
Non-U.S. sovereign debt	Non-U.S. sovereign debt	132,000		32		69		132,101		Non-U.S. sovereign debt	166,678		140		54		166,872
Mortgage trading loans and ABS	Mortgage trading loans and ABS	2,047		0		0		2,047		Mortgage trading loans and ABS	4,395		—		—		4,395
Total	Total	$	374,634	$	29,889	$	17,482	$	422,005	Total	$	429,494	$	49,965	$	10,167	$	489,626

		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	$	—	$	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		—		—		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,~~September 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~~$5.6 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~~$10.3 billion and $10.5 billion at ~~March 31,~~September 30, 2021 and December 31, 2020. The carrying value of these commitments at ~~March 31,~~September 30, 2021 and December 31, 2020, excluding commitments accounted for under the fair value option, was ~~$1.8~~$1.5 billion and $1.9 billion, which ~~primarily~~predominantly 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~~$4.9 billion and $4.0 billion at ~~March 31,~~September 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~~$95 million and $99 million at ~~March 31,~~September 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.


7583 Bank of America


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)	September 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)	$	105,772	$	196,782	$	162,919	$	32,030	$	497,503
Home equity lines of credit	Home equity lines of credit	733		3,354		9,451		28,109		41,647		Home equity lines of credit	841		4,439		10,237		25,257		40,774
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)	21,850		11,127		1,689		424		35,090
Letters of credit (3)		1,097		176		32		22		1,327
Letters of credit												Letters of credit	1,574		162		32		43		1,811
Legally binding commitments	Legally binding commitments	129,209		206,631		154,092		50,426		540,358		Legally binding commitments	130,037		212,510		174,877		57,754		575,178
Credit card lines (4)		388,922		0		0		0		388,922
Credit card lines (3)												Credit card lines (3)	402,382		—		—		—		402,382
Total credit extension commitments	Total credit extension commitments	$	518,131	$	206,631	$	154,092	$	50,426	$	929,280	Total credit extension commitments	$	532,419	$	212,510	$	174,877	$	57,754	$	977,560

		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)		886		197		25		27		1,135
Letters of credit												Letters of credit	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)		384,955		0		0		0		384,955
Credit card lines (3)												Credit card lines (3)	384,955		—		—		—		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,~~September 30, 2021 and December 31, 2020, $5.4 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~~$25.7 billion and ~~$9.6~~$8.9 billion at ~~March 31,~~September 30, 2021, and $25.0 billion and $10.2 billion at December 31, 2020. Amounts in the table include consumer SBLCs of ~~$481~~$495 million and $500 million at ~~March 31,~~September 30, 2021 and December 31, 2020.

(3) ~~At both March 31, 2021 and December 31, 2020, included are letters of credit of $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,~~September 30, 2021 and December 31, 2020, the Corporation had commitments to purchase loans (e.g., residential mortgage and commercial real estate) of ~~$138~~$102 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~~$484 million and $645 million, which upon settlement will be included in trading account assets.

At ~~March 31,~~September 30, 2021 and December 31, 2020, the Corporation had commitments to purchase commodities, primarily liquefied natural gas, of ~~$430 million~~$1.1 billion and $582 million, which upon settlement will be included in trading account assets.

At ~~March 31,~~September 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~~$129.9 billion and $66.5 billion, and commitments to enter into forward-dated repurchase and securities lending agreements of ~~$60.6~~$68.9 billion and $32.1 billion. These commitments generally expire within the next 12 months.

At ~~both March 31,~~September 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.

At September 30, 2021 and December 31, 2020, the Corporation had unfunded equity investment commitments of $392 million and $213 million.

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,~~September 30, 2021 and December 31, 2020, the notional amount of these guarantees

totaled $6.3 billion and $7.1 billion. At ~~both March 31,~~September 30, 2021 and December 31, 2020, the Corporation’s maximum exposure related to these

guarantees totaled $927 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 total amount of transactions processed for the ~~three months ended March 31, 2021,~~preceding six-month period, which was $450.7 billion, is an estimate of the ~~Corporation processed an aggregate purchase volume~~Corporation’s maximum potential exposure as of ~~$301.1 billion.~~September 30, 2021. 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 $1.3 billion at both March 31, 2021 and December 31, 2020 and is included in accrued~~


						Bank of America 7684

The reserve for representations and warranties obligations and corporate guarantees was $1.2 billion and $1.3 billion at September 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 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~~$34.7 billion and $22.5 billion at ~~March 31,~~September 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~~$10.5 billion and $8.8 billion at ~~March 31,~~September 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~~matters 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~~$66 million and ~~$24~~$155 million was recognized for the three and nine months ended ~~March 31,~~September 30, 2021 compared to $636 million and $717 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~~$1.1 billion in excess of the accrued liability, if any, as of ~~March 31,~~September 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


85Bank of America

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. On August 2, 2021, the Corporation filed an appeal seeking an annulment of the European Commission’s decision as it relates to the Corporation.

NOTE 11 Shareholders’ Equity

Common Stock

Declared Quarterly Cash Dividends on Common Stock (1)

Declaration Date

Record Date

Payment Date

Dividend Per Share

October 20, 2021

December 3, 2021

December 31, 2021

0.21

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~~October 29, ~~2021.~~2021

During the three and nine months ended ~~March 31,~~September 30, 2021, the Corporation repurchased and retired ~~101~~248 million and 452 million shares of common stock, which reduced shareholders’ equity by ~~$3.5~~$9.9 billion and $17.6 billion.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2021, in connection with employee stock plans, the Corporation issued 6366 million shares of its common stock and, to satisfy tax withholding obligations, repurchased 2426 million shares of its common stock.At ~~March 31,~~September 30, 2021, the Corporation had reserved ~~451~~562 million unissued shares of common stock for future issuances under employee stock plans, convertible notes and preferred stock.

On ~~April 22,~~October 20, 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, June 30, 2021 and September 30, 2021, the Corporation ~~fully redeemed Series CC~~declared $490 million, $260 million and ~~Series T~~$431 million of cash dividends on preferred stock, ~~for~~or a total of ~~$1.1 billion. Additionally, on April 25, 2021,~~$1.2 billion for the ~~Corporation fully redeemed Series EE preferred stock for $900 million.~~nine months ended September 30, 2021. 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,~~On October 26, 2021, the Corporation ~~granted 98 million restricted~~issued 52,000 shares of 4.250% Non-Cumulative Preferred Stock, Series QQ for $1.3 billion, with quarterly dividends commencing in February 2022. The Series QQ preferred stock ~~unit (RSU) awards~~has a liquidation preference of $25,000 per share and is subject to certain ~~employees under~~restrictions in 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 withevent 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 provisionfails to declare 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.~~pay full dividends.

NOTE 12 Accumulated Other Comprehensive Income (Loss)

The table below presents the changes in accumulated OCI after-tax for the ~~three~~nine months ended ~~March 31,~~September 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	4,794		(5)		808		144		(86)		5,655
Balance, March 31, 2020		$	5,118	$	(148)	$	17	$	(4,125)	$	(982)	$	(120)
Balance, September 30, 2020														Balance, September 30, 2020	$	5,117	$	(1,499)	$	408	$	(4,024)	$	(980)	$	(978)

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	(1,243)		292		(1,130)		170		(29)		(1,940)
Balance, March 31, 2021		$	4,282	$	(1,876)	$	(688)	$	(4,215)	$	(975)	$	(3,472)
Balance, September 30, 2021														Balance, September 30, 2021	$	3,879	$	(1,700)	$	(704)	$	(4,096)	$	(975)	$	(3,596)

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~~nine months ended ~~March 31,~~September 30, 2021 and 2020.


						Bank of America 7886


		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															Nine Months Ended September 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	$	(1,650)	$	410	$	(1,240)	$	6,763	$	(1,685)	$	5,078

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)	(4)		1		(3)		(379)		95		(284)
Net change	Net change	(1,110)		270		(840)		6,386		(1,591)		4,795				Net change	(1,654)		411		(1,243)		6,384		(1,590)		4,794

Debit valuation adjustments:	Debit valuation adjustments:															Debit valuation adjustments:
Net increase in fair value		140		(29)		111		1,751		(408)		1,343
Net increase (decrease) in fair value																Net increase (decrease) in fair value	365		(82)		283		(13)		5		(8)
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)	12		(3)		9		4		(1)		3

Net change	Net change	146		(30)		116		1,755		(409)		1,346				Net change	377		(85)		292		(9)		4		(5)
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	(1,339)		334		(1,005)		977		(238)		739
Reclassifications into earnings:	Reclassifications into earnings:															Reclassifications into earnings:
Net interest income	Net interest income	(42)		10		(32)		29		(7)		22				Net interest income	(125)		30		(95)		96		(23)		73

Compensation and benefits expense	Compensation and benefits expense	(12)		3		(9)		0		0		0				Compensation and benefits expense	(40)		10		(30)		(5)		1		(4)
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	(165)		40		(125)		91		(22)		69

Net change	Net change	(1,483)		369		(1,114)		549		(132)		417				Net change	(1,504)		374		(1,130)		1,068		(260)		808
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)	209		(39)		170		191		(47)		144

Net change	Net change	67		(16)		51		57		(14)		43				Net change	209		(39)		170		191		(47)		144
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	240		(269)		(29)		(29)		(57)		(86)

Net change	Net change	144		(173)		(29)		228		(316)		(88)				Net change	240		(269)		(29)		(29)		(57)		(86)
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)	$	(2,332)	$	392	$	(1,940)	$	7,605	$	(1,950)	$	5,655

(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 nine months ended ~~March 31,~~September 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 September 30						Nine Months Ended September 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	$	7,691	$	4,881		$	24,965	$	12,424
Preferred stock dividends	Preferred stock dividends	(490)		(469)			Preferred stock dividends	(431)		(441)			(1,181)		(1,159)
Net income applicable to common shareholders	Net income applicable to common shareholders	$	7,560	$	3,541		Net income applicable to common shareholders	$	7,260	$	4,440		$	23,784	$	11,265

Average common shares issued and outstanding	Average common shares issued and outstanding	8,700.1		8,815.6			Average common shares issued and outstanding	8,430.7		8,732.9			8,583.1		8,762.6
Earnings per common share	Earnings per common share	$	0.87	$	0.40		Earnings per common share	$	0.86	$	0.51		$	2.77	$	1.29

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	$	7,260	$	4,440		$	23,784	$	11,265

Add preferred stock dividends due to assumed conversions							Add preferred stock dividends due to assumed conversions	—		—			168		—
Net income allocated to common shareholders							Net income allocated to common shareholders	$	7,260	$	4,440		$	23,952	$	11,265
Average common shares issued and outstanding	Average common shares issued and outstanding	8,700.1		8,815.6			Average common shares issued and outstanding	8,430.7		8,732.9			8,583.1		8,762.6
Dilutive potential common shares (1)	Dilutive potential common shares (1)	55.5		47.1			Dilutive potential common shares (1)	62.1		44.6			119.1		37.9
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	8,492.8		8,777.5			8,702.2		8,800.5
Diluted earnings per common share	Diluted earnings per common share	$	0.86	$	0.40		Diluted earnings per common share	$	0.85	$	0.51		$	2.75	$	1.28

(1)Includes incremental dilutive shares from ~~RSUs,~~preferred stock, restricted stock units, restricted stock and warrants.

For ~~both~~ the ~~three~~nine months ended ~~March 31,~~September 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 months ended September 30, 2021 and the three and nine months ended September 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~~nine months ended ~~March 31,~~September 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.


7987 Bank of America

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,~~September 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											September 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	$	336	$	—	$	—	$	—	$	336
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	—		154,137		—		—		154,137
Trading account assets:	Trading account assets:											Trading account assets:
U.S. Treasury and agency securities (2)		32,709		2,653		0		—		35,362
U.S. Treasury and government agencies												U.S. Treasury and government agencies	46,195		668		—		—		46,863
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	—		36,895		1,634		—		38,529
Equity securities	Equity securities	108,394		32,455		273		—		141,122		Equity securities	96,266		39,577		209		—		136,052
Non-U.S. sovereign debt	Non-U.S. sovereign debt	12,470		21,085		334		—		33,889		Non-U.S. sovereign debt	9,763		23,176		399		—		33,338
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)~~	—		21,825		84		—		21,909
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	—		10,385		1,490		—		11,875
Total trading account assets ~~(3)~~(2)	Total trading account assets ~~(3)~~(2)	153,573		119,624		3,684		—		276,881		Total trading account assets ~~(3)~~(2)	152,224		132,526		3,816		—		288,566
Derivative assets	Derivative assets	15,044		357,851		2,805		(329,802)		45,898		Derivative assets	17,376		330,477		3,827		(310,851)		40,829
AFS debt securities:	AFS debt securities:											AFS debt securities:
U.S. Treasury and agency securities		158,911		1,110		0		—		160,021
U.S. Treasury and government agencies												U.S. Treasury and government agencies	168,030		1,095		—		—		169,125
Mortgage-backed securities:	Mortgage-backed securities:											Mortgage-backed securities:
Agency	Agency	0		54,534		0		—		54,534		Agency	—		52,297		—		—		52,297
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	0		4,733		0		—		4,733		Agency-collateralized mortgage obligations	—		3,776		—		—		3,776
Non-agency residential	Non-agency residential	0		574		284		—		858		Non-agency residential	—		405		398		—		803
Commercial	Commercial	0		16,800		0		—		16,800		Commercial	—		18,819		—		—		18,819
Non-U.S. securities	Non-U.S. securities	0		14,755		13		—		14,768		Non-U.S. securities	—		12,283		10		—		12,293

Other taxable securities	Other taxable securities	0		2,485		73		—		2,558		Other taxable securities	—		2,560		73		—		2,633
Tax-exempt securities	Tax-exempt securities	0		16,243		98		—		16,341		Tax-exempt securities	—		15,559		53		—		15,612
Total AFS debt securities	Total AFS debt securities	158,911		111,234		468		—		270,613		Total AFS debt securities	168,030		106,794		534		—		275,358
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		553		0		0		—		553
U.S. Treasury and government agencies												U.S. Treasury and government agencies	276		—		—		—		276

Non-agency residential MBS	Non-agency residential MBS	0		492		260		—		752		Non-agency residential MBS	—		411		296		—		707

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	3,851		5,185		—		—		9,036
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	4,127		5,596		296		—		10,019
Loans and leases	Loans and leases	0		6,210		793		—		7,003		Loans and leases	—		6,848		718		—		7,566
Loans held-for-sale	Loans held-for-sale	0		1,460		220		—		1,680		Loans held-for-sale	—		3,642		340		—		3,982

Other assets ~~(4)~~(3)	Other assets ~~(4)~~(3)	12,086		3,036		2,090		—		17,212		Other assets ~~(4)~~(3)	6,659		2,628		1,744		—		11,031

Total assets ~~(5)~~(4)	Total assets ~~(5)~~(4)	$	345,800	$	758,268	$	10,320	$	(329,802)	$	784,586	Total assets ~~(5)~~(4)	$	348,752	$	742,648	$	11,275	$	(310,851)	$	791,824

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	$	—	$	542	$	—	$	—	$	542
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	—		155,151		—		—		155,151
Trading account liabilities:	Trading account liabilities:											Trading account liabilities:
U.S. Treasury and agency securities		17,622		1,017		0		—		18,639
U.S. Treasury and government agencies												U.S. Treasury and government agencies	20,967		1,105		—		—		22,072
Equity securities	Equity securities	47,480		3,949		0		—		51,429		Equity securities	47,035		5,472		—		—		52,507
Non-U.S. sovereign debt	Non-U.S. sovereign debt	14,600		9,318		0		—		23,918		Non-U.S. sovereign debt	17,766		10,511		—		—		28,277
Corporate securities and other	Corporate securities and other	0		8,786		16		—		8,802		Corporate securities and other	—		9,350		11		—		9,361

Total trading account liabilities	Total trading account liabilities	79,702		23,070		16		—		102,788		Total trading account liabilities	85,768		26,438		11		—		112,217
Derivative liabilities	Derivative liabilities	14,647		350,213		6,011		(328,546)		42,325		Derivative liabilities	18,341		328,506		6,152		(314,937)		38,062
Short-term borrowings	Short-term borrowings	0		4,503		0		—		4,503		Short-term borrowings	—		4,128		—		—		4,128
Accrued expenses and other liabilities	Accrued expenses and other liabilities	14,367		3,204		0		—		17,571		Accrued expenses and other liabilities	7,471		2,790		—		—		10,261
Long-term debt	Long-term debt	0		29,486		1,028		—		30,514		Long-term debt	—		27,570		1,126		—		28,696
Total liabilities ~~(5)~~(4)	Total liabilities ~~(5)~~(4)	$	108,716	$	565,845	$	7,055	$	(328,546)	$	353,070	Total liabilities ~~(5)~~(4)	$	111,580	$	545,125	$	7,289	$	(314,937)	$	349,057

(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 billion of GSE obligations.~~

~~(3)Includes~~ securities with a fair value of ~~$11.4~~$10.8 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 ~~$431 million~~$1.6 billion that ~~are~~is accounted for at the lower of cost or net realizable value, which is the current selling price less any costs to sell.

~~(4)~~(3)Includes MSRs of ~~$1.2 billion~~$940 million which are classified as Level 3 assets.

~~(5)~~(4)Total recurring Level 3 assets were ~~0.35~~0.37 percent of total consolidated assets, and total recurring Level 3 liabilities were 0.26 percent of total consolidated liabilities.


						Bank of America 8088


		December 31, 2020											December 31, 2020
		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	$	1,649	$	0	$	0	$	—	$	1,649	Time deposits placed and other short-term investments	$	1,649	$	—	$	—	$	—	$	1,649
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		108,856		0		—		108,856		Federal funds sold and securities borrowed or purchased under agreements to resell	—		108,856		—		—		108,856
Trading account assets:	Trading account assets:											Trading account assets:
U.S. Treasury and agency securities (2)		45,219		3,051		0		—		48,270
U.S. Treasury and government agencies												U.S. Treasury and government agencies	45,219		3,051		—		—		48,270
Corporate securities, trading loans and other	Corporate securities, trading loans and other	0		22,817		1,359		—		24,176		Corporate securities, trading loans and other	—		22,817		1,359		—		24,176
Equity securities	Equity securities	36,372		31,372		227		—		67,971		Equity securities	36,372		31,372		227		—		67,971
Non-U.S. sovereign debt	Non-U.S. sovereign debt	5,753		20,884		354		—		26,991		Non-U.S. sovereign debt	5,753		20,884		354		—		26,991
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		21,566		75		—		21,641		U.S. government-sponsored agency guaranteed ~~(2)~~	—		21,566		75		—		21,641
Mortgage trading loans, ABS and other MBS	Mortgage trading loans, ABS and other MBS	0		8,440		1,365		—		9,805		Mortgage trading loans, ABS and other MBS	—		8,440		1,365		—		9,805
Total trading account assets ~~(3)~~(2)	Total trading account assets ~~(3)~~(2)	87,344		108,130		3,380		—		198,854		Total trading account assets ~~(3)~~(2)	87,344		108,130		3,380		—		198,854
Derivative assets	Derivative assets	15,624		416,175		2,751		(387,371)		47,179		Derivative assets	15,624		416,175		2,751		(387,371)		47,179
AFS debt securities:	AFS debt securities:											AFS debt securities:
U.S. Treasury and agency securities		115,266		1,114		0		—		116,380
U.S. Treasury and government agencies												U.S. Treasury and government agencies	115,266		1,114		—		—		116,380
Mortgage-backed securities:	Mortgage-backed securities:											Mortgage-backed securities:
Agency	Agency	0		61,849		0		—		61,849		Agency	—		61,849		—		—		61,849
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	0		5,260		0		—		5,260		Agency-collateralized mortgage obligations	—		5,260		—		—		5,260
Non-agency residential	Non-agency residential	0		631		378		—		1,009		Non-agency residential	—		631		378		—		1,009
Commercial	Commercial	0		16,491		0		—		16,491		Commercial	—		16,491		—		—		16,491
Non-U.S. securities	Non-U.S. securities	0		13,999		18		—		14,017		Non-U.S. securities	—		13,999		18		—		14,017

Other taxable securities	Other taxable securities	0		2,640		71		—		2,711		Other taxable securities	—		2,640		71		—		2,711
Tax-exempt securities	Tax-exempt securities	0		16,598		176		—		16,774		Tax-exempt securities	—		16,598		176		—		16,774
Total AFS debt securities	Total AFS debt securities	115,266		118,582		643		—		234,491		Total AFS debt securities	115,266		118,582		643		—		234,491
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		93		0		0		—		93
U.S. Treasury and government agencies												U.S. Treasury and government agencies	93		—		—		—		93

Non-agency residential MBS	Non-agency residential MBS	0		506		267		—		773		Non-agency residential MBS	—		506		267		—		773

Non-U.S. and other securities	Non-U.S. and other securities	2,619		8,625		0		—		11,244		Non-U.S. and other securities	2,619		8,625		—		—		11,244
Total other debt securities carried at fair value	Total other debt securities carried at fair value	2,712		9,131		267		—		12,110		Total other debt securities carried at fair value	2,712		9,131		267		—		12,110
Loans and leases	Loans and leases	0		5,964		717		—		6,681		Loans and leases	—		5,964		717		—		6,681
Loans held-for-sale	Loans held-for-sale	0		1,349		236		—		1,585		Loans held-for-sale	—		1,349		236		—		1,585
Other assets ~~(4)~~(3)	Other assets ~~(4)~~(3)	9,898		3,850		1,970		—		15,718		Other assets ~~(4)~~(3)	9,898		3,850		1,970		—		15,718

Total assets ~~(5)~~(4)	Total assets ~~(5)~~(4)	$	232,493	$	772,037	$	9,964	$	(387,371)	$	627,123	Total assets ~~(5)~~(4)	$	232,493	$	772,037	$	9,964	$	(387,371)	$	627,123

Liabilities	Liabilities											Liabilities
Interest-bearing deposits in U.S. offices	Interest-bearing deposits in U.S. offices	$	0	$	481	$	0	$	—	$	481	Interest-bearing deposits in U.S. offices	$	—	$	481	$	—	$	—	$	481
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		135,391		0		—		135,391		Federal funds purchased and securities loaned or sold under agreements to repurchase	—		135,391		—		—		135,391
Trading account liabilities:	Trading account liabilities:											Trading account liabilities:
U.S. Treasury and agency securities		9,425		139		0		—		9,564
U.S. Treasury and government agencies												U.S. Treasury and government agencies	9,425		139		—		—		9,564
Equity securities	Equity securities	38,189		4,235		0		—		42,424		Equity securities	38,189		4,235		—		—		42,424
Non-U.S. sovereign debt	Non-U.S. sovereign debt	5,853		8,043		0		—		13,896		Non-U.S. sovereign debt	5,853		8,043		—		—		13,896
Corporate securities and other	Corporate securities and other	0		5,420		16		—		5,436		Corporate securities and other	—		5,420		16		—		5,436
Total trading account liabilities	Total trading account liabilities	53,467		17,837		16		—		71,320		Total trading account liabilities	53,467		17,837		16		—		71,320
Derivative liabilities	Derivative liabilities	14,907		412,881		6,219		(388,481)		45,526		Derivative liabilities	14,907		412,881		6,219		(388,481)		45,526
Short-term borrowings	Short-term borrowings	0		5,874		0		—		5,874		Short-term borrowings	—		5,874		—		—		5,874
Accrued expenses and other liabilities	Accrued expenses and other liabilities	12,297		4,014		0		—		16,311		Accrued expenses and other liabilities	12,297		4,014		—		—		16,311
Long-term debt	Long-term debt	0		31,036		1,164		—		32,200		Long-term debt	—		31,036		1,164		—		32,200
Total liabilities (5)	Total liabilities (5)	$	80,671	$	607,514	$	7,399	$	(388,481)	$	307,103	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~~is accounted for at the lower of cost or net realizable value, which is the current selling price less any costs to sell.

~~(4)~~(3)Includes MSRs of $1.0 billion which are classified as Level 3 assets.

~~(5)~~(4)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.


8189 Bank of America

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 nine months ended ~~March 31,~~September 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

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 July 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 September 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 September 30, 2021																								Three Months Ended September 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	$	1,764	$	(2)	$	—	$	89	$	(43)	$	—	$	(118)	$	239	$	(295)	$	1,634	$	(20)
Equity securities	Equity securities	227		(10)		0		45		(23)		0		0		52		(18)		273		(10)		Equity securities	260		(2)		—		18		(11)		—		—		20		(76)		209		(2)
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	414		4		(26)		16		—		—		(9)		—		—		399		4
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	1,498		(43)		—		97		(89)		—		(61)		180		(8)		1,574		(41)
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	3,936		(43)		(26)		220		(143)		—		(188)		439		(379)		3,816		(59)
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)	(2,884)		564		—		124		(168)		—		23		173		(157)		(2,325)		512
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	205		(1)		(2)		—		—		—		(12)		208		—		398		(4)

Non-U.S. securities	Non-U.S. securities	18		0		0		0		0		0		(5)		0		0		13		0		Non-U.S. securities	11		(3)		—		—		—		—		2		—		—		10		—

Other taxable securities	Other taxable securities	71		0		(6)		8		0		0		0		0		0		73		0		Other taxable securities	74		—		(1)		—		—		—		—		—		—		73		—
Tax-exempt securities	Tax-exempt securities	176		14		0		0		0		0		0		0		(92)		98		13		Tax-exempt securities	51		2		—		—		—		—		—		—		—		53		2
Total AFS debt securities	Total AFS debt securities	643		(2)		(103)		8		0		0		(22)		36		(92)		468		(3)		Total AFS debt securities	341		(2)		(3)		—		—		—		(10)		208		—		534		(2)
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	281		(2)		—		—		—		—		(9)		26		—		296		(2)
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)	857		(59)		—		—		—		—		(67)		—		(13)		718		(59)

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)	263		13		(7)		94		(1)		—		(22)		—		—		340		10
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)	1,775		15		(6)		1		1		51		(95)		2		—		1,744		49

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	(17)		6		—		—		—		—		—		—		—		(11)		(1)

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)	(1,060)		(65)		2		—		—		(9)		30		(25)		1		(1,126)		(65)

Three Months Ended March 31, 2020
Three Months Ended September 30, 2020																								Three Months Ended September 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	$	1,548	$	(20)	$	—	$	—	$	(49)	$	—	$	(91)	$	136	$	(54)	$	1,470	$	(34)
Equity securities	Equity securities	239		(26)		0		26		(11)		0		0		25		(4)		249		(27)		Equity securities	194		8		—		4		(3)		—		—		7		(3)		207		3
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	248		7		(6)		1		(2)		—		(1)		83		(40)		290		6
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	1,736		2		—		36		(108)		11		(12)		167		(62)		1,770		10
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	3,726		(3)		(6)		41		(162)		11		(104)		393		(159)		3,737		(15)
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)	(3,343)		228		—		39		(177)		—		(58)		3		(223)		(3,531)		196
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	462		—		5		—		—		—		(10)		25		(42)		440		—

Non-U.S. securities	Non-U.S. securities	2		0		0		0		(1)		0		0		0		0		1		0		Non-U.S. securities	5		—		—		—		—		—		(1)		10		—		14		—

Other taxable securities	Other taxable securities	65		0		0		3		0		0		0		0		0		68		0		Other taxable securities	65		—		—		3		—		—		—		—		—		68		—
Tax-exempt securities	Tax-exempt securities	108		(10)		2		0		0		0		0		0		0		100		0		Tax-exempt securities	337		15		—		—		—		—		(167)		—		(5)		180		15
Total AFS debt securities	Total AFS debt securities	599		(13)		(11)		3		(1)		0		(12)		128		0		693		0		Total AFS debt securities	869		15		5		3		—		—		(178)		35		(47)		702		15
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	449		18		—		—		—		—		(11)		2		—		458		17
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)	741		(2)		—		—		(25)		—		(89)		—		—		625		(5)

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)	970		(7)		(2)		—		(25)		—		(14)		—		—		922		(10)
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)	1,911		25		6		—		1		53		(121)		—		—		1,875		4
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)		—		—		—		—		—		—		—		—		(1)		—
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	(16)		2		—		—		(2)		—		—		—		—		(16)		—

Long-term debt (5)	Long-term debt (5)	(1,149)		127		187		8		0		(13)		141		(23)		1		(721)		126		Long-term debt (5)	(956)		(50)		(10)		—		—		—		46		—		—		(970)		(50)

(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 market making and similar activities and 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)~~losses of ~~$(136)~~$38 million and ~~$67~~$8 million related to financial instruments still held at ~~March 31,~~September 30, 2021 and 2020.

(4)Net derivative assets (liabilities) include derivative assets of ~~$2.8~~$3.8 billion and ~~$1.9~~$2.5 billion and derivative liabilities of $6.2 billion and $6.0 billion ~~and $4.8 billion~~ at ~~March 31,~~September 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



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 September 30		Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2)
(Dollars in millions)							Purchases		Sales		Issuances		Settlements
Nine Months Ended September 30, 2021
Trading account assets:

Corporate securities, trading loans and other	$	1,359	$	23	$	—	$	515	$	(300)	$	—	$	(251)	$	697	$	(409)	$	1,634	$	(42)
Equity securities	227		20		—		71		(60)		—		—		98		(147)		209		(17)
Non-U.S. sovereign debt	354		24		(14)		18		—		—		(9)		26		—		399		27
Mortgage trading loans, ABS and other MBS	1,440		(4)		—		344		(584)		1		(125)		624		(122)		1,574		(65)
Total trading account assets	3,380		63		(14)		948		(944)		1		(385)		1,445		(678)		3,816		(97)
Net derivative assets (liabilities) (4)	(3,468)		855		—		473		(517)		—		206		(18)		144		(2,325)		579
AFS debt securities:



Non-agency residential MBS	378		(16)		(96)		—		—		—		(37)		244		(75)		398		(7)

Non-U.S. securities	18		(4)		—		—		—		—		(4)		—		—		10		—

Other taxable securities	71		—		(6)		8		—		—		—		—		—		73		—
Tax-exempt securities	176		19		—		—		—		—		—		—		(142)		53		18
Total AFS debt securities	643		(1)		(102)		8		—		—		(41)		244		(217)		534		11
Other debt securities carried at fair value – Non-agency residential MBS	267		—		—		—		—		—		(29)		58		—		296		—
Loans and leases (5,6)	717		45		—		—		—		70		(147)		46		(13)		718		52
Loans held-for-sale (5,6)	236		17		(4)		132		(1)		—		(62)		26		(4)		340		40
Other assets (6,7)	1,970		36		2		56		(144)		115		(300)		9		—		1,744		92



Trading account liabilities – Corporate securities and other	(16)		6		—		—		—		(1)		—		—		—		(11)		—


Long-term debt (5)	(1,164)		(83)		4		2		—		(11)		67		(57)		116		(1,126)		(54)

Nine Months Ended September 30, 2020
Trading account assets:

Corporate securities, trading loans and other	$	1,507	$	(150)	$	(1)	$	280	$	(181)	$	8	$	(165)	$	520	$	(348)	$	1,470	$	(128)
Equity securities	239		(17)		—		33		(37)		—		—		32		(43)		207		(20)
Non-U.S. sovereign debt	482		35		(69)		76		(61)		—		(20)		100		(253)		290		33
Mortgage trading loans, ABS and other MBS	1,553		(145)		(3)		502		(582)		11		(52)		659		(173)		1,770		(135)
Total trading account assets	3,781		(277)		(73)		891		(861)		19		(237)		1,311		(817)		3,737		(250)
Net derivative assets (liabilities) (4)	(2,538)		111		—		216		(558)		—		(224)		(273)		(265)		(3,531)		(356)
AFS debt securities:




Non-agency residential MBS	424		(5)		(4)		23		—		—		(32)		158		(124)		440		(5)
Non-U.S. securities	2		—		—		—		(1)		—		(1)		14		—		14		—

Other taxable securities	65		—		—		6		(4)		—		—		1		—		68		—
Tax-exempt securities	108		(19)		3		—		—		—		(167)		265		(10)		180		(18)
Total AFS debt securities	599		(24)		(1)		29		(5)		—		(200)		438		(134)		702		(23)
Other debt securities carried at fair value – Non-agency residential MBS	299		12		—		—		—		—		(19)		178		(12)		458		(12)
Loans and leases (5,6)	693		(74)		—		32		(26)		22		(120)		98		—		625		(61)
Loans held-for-sale (5,6)	375		(7)		(35)		—		(106)		691		(89)		93		—		922		(19)
Other assets (6,7)	2,360		(294)		(11)		—		2		206		(391)		5		(2)		1,875		(373)

Trading account liabilities – Equity securities	(2)		1		—		—		—		—		—		—		—		(1)		1
Trading account liabilities – Corporate securities and other	(15)		7		—		(7)		(2)		—		1		—		—		(16)		—


Long-term debt (5)	(1,149)		5		50		8		—		(45)		201		(52)		12		(970)		(10)

(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 losses of $45 million and $47 million related to financial instruments still held at September 30, 2021 and 2020.

(4)Net derivative assets (liabilities) include derivative assets of $3.8 billion and $2.5 billion and derivative liabilities of $6.2 billion and $6.0 billion at September 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.


91Bank of America

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,~~September 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 September 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

1,359

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

306

Prepayment speed

1% to 42% CPR

19% CPR

Loans and leases

426

Default rate

0% to 3% CDR

1% CDR

Loans and leases

359

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

398

Price

$0 to td60

$91

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

296

Loss severity

0% to 44%

Instruments backed by commercial real estate assets

481

Discounted cash
flow

Yield

0% to 25%

Instruments backed by commercial real estate assets

458

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

286

Price

$0 to td00

$62

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

3,678

Discounted cash flow, Market comparables

Yield

0% to 20%

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

1,348

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

399

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

1,187

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 td86

$67

Loans and leases

367

Long-dated equity volatilities

50%

n/a

Loans and leases

359

Long-dated equity volatilities

45%

n/a

Loans held-for-sale

212

Loans held-for-sale

332

Other assets, primarily auction rate securities

936

Discounted cash flow, Market comparables

Price

td0 to $97

$94

Other assets, primarily auction rate securities

804

Discounted cash flow, Market comparables

Price

td0 to $96

$92

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

940

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 11 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

(1,126)

Discounted cash flow, Market comparables, Industry standard derivative pricing (3)

Yield

0% to 16%

Equity correlation

2% to 99%

Equity correlation

3% to 99%

Long-dated equity volatilities

4% to 64%

Long-dated equity volatilities

4% to 67%

Price

$0 to td20

$84

Price

$0 to td21

$85

Natural gas forward price

td/MMBtu to $5/MMBtu

$3 /MMBtu

Natural gas forward price

td/MMBtu to td2/MMBtu

$4 /MMBtu

Net derivative assets (liabilities)

Credit derivatives

(39)

Discounted cash flow, Stochastic recovery correlation model

Yield

n/a

Credit derivatives

(109)

Discounted cash flow, Stochastic recovery correlation model

Credit spreads

1 to 611 bps

62 bps

Credit spreads

0 to 191 bps

65 bps

Upfront points

16 to 100 points

74 points

Upfront points

16 to 100 points

68 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

24% to 60%

Price

$0 to td22

$62

Discounted cash flow, Stochastic recovery correlation model

Price

$0 to td22

$66

Equity derivatives

(1,924)

Industry standard derivative pricing (3)

Equity correlation

2% to 99%

Equity derivatives

(1,442)

Equity correlation

3% to 99%

Long-dated equity volatilities

4% to 64%

Long-dated equity volatilities

4% to 67%

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

(942)

Natural gas forward price

td/MMBtu to td2/MMBtu

$4 /MMBtu

Correlation

39% to 79%

Correlation

64% to 82%

Volatilities

24% to 47%

Power forward price

td2 to $74

td8

Volatilities

41% to 113%

Interest rate derivatives

Industry standard derivative pricing (4)

Correlation (IR/IR)

15% to 90%

Interest rate derivatives

168

Correlation (IR/IR)

(1)% to 90%

Correlation (FX/IR)

0% to 46%

Industry standard derivative pricing (4)

Correlation (FX/IR)

0% to 58%

Long-dated inflation rates

(3)% to 36%

Long-dated inflation rates

(7)% to 12%

Long-dated inflation volatilities

0% to 1%

Long-dated inflation volatilities

0% to 2%

Interest rate volatilities

0% to 2%

Interest rate volatilities

0% to 3%

Total net derivative assets (liabilities)

(3,206)

Total net derivative assets (liabilities)

(2,325)

(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:~~88: Trading account assets – Corporate securities, trading loans and other of ~~$1.5~~$1.6 billion, Trading account assets – Non-U.S. sovereign debt of ~~$334~~$399 million, Trading account assets – Mortgage trading loans, MBS and ABS of $1.6 billion, AFS debt securities of ~~$468~~$534 million, Other debt securities carried at fair value - Non-agency residential of ~~$260~~$296 million, Other assets, including MSRs, of ~~$2.1~~$1.7 billion, Loans and leases of ~~$793~~$718 million and LHFS of ~~$220~~$340 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


83~~Bank of America~~


						Bank of America92

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:~~89: 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.

93Bank of America

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 nine months ended ~~March 31,~~September 30, 2021 and 2020.

																		Assets Measured at Fair Value on a Nonrecurring Basis
		March 31, 2021				Three Months Ended March 31, 2021		September 30, 2021				Three Months Ended September 30, 2021		Nine Months Ended September 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	$	124	$	20	$	(2)	$	4
Loans and leases (1)	Loans and leases (1)	0		85		(14)			Loans and leases (1)	—		182		(16)		(47)
Foreclosed properties (2, 3)	Foreclosed properties (2, 3)	0		3		(1)			Foreclosed properties (2, 3)	—		17		(3)		(4)
Other assets	Other assets	49		2,155		(403)			Other assets	354		2,101		(35)		(494)

		March 31, 2020				Three Months Ended March 31, 2020		September 30, 2020				Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020

Assets	Assets								Assets
Loans held-for-sale	Loans held-for-sale	$	1,017	$	628	$	(78)		Loans held-for-sale	$	630	$	903	$	(14)	$	(121)
Loans and leases (1)	Loans and leases (1)	0		117		(27)			Loans and leases (1)	—		226		(19)		(59)
Foreclosed properties (2, 3)	Foreclosed properties (2, 3)	0		15		(6)			Foreclosed properties (2, 3)	—		27		(7)		(11)
Other assets	Other assets	27		24		(2)			Other assets	209		576		(32)		(58)

(1)Includes $3$7 million and ~~$12~~$18 million of losses on loans that were written down to a collateral value of zero during the three and nine months ended ~~March 31,~~September 30, 2021 compared to losses of $9 million and $26 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~~$55 million and ~~$224~~$131 million of properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans) at ~~March 31,~~September 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,~~September 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)

Nine Months Ended September 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)

182

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)

1,926

Discounted cash flow

Discount rate

n/a

194

Market comparables

Estimated appraisal value

n/a

170

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,~~September 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 nine months ended ~~March 31,~~September 30, 2021 and 2020.


85~~Bank of America~~


						Bank of America94

																											Fair Value Option Elections
		March 31, 2021						December 31, 2020							September 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	$	154,137	$	154,135	$	2	$	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)	9,410		17,534		(8,124)		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	22,962		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	7,566		7,628		(62)		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)	3,982		4,884		(902)		1,585		2,521		(936)

Other assets	Other assets	172		n/a		n/a		200		n/a		n/a		Other assets	194		n/a		n/a		200		n/a		n/a
Long-term deposits	Long-term deposits	504		488		16		481		448		33		Long-term deposits	542		530		12		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	155,151		155,187		(36)		135,391		135,390		1
Short-term borrowings	Short-term borrowings	4,503		4,286		217		5,874		5,178		696		Short-term borrowings	4,128		4,341		(213)		5,874		5,178		696
Unfunded loan commitments	Unfunded loan commitments	91		n/a		n/a		99		n/a		n/a		Unfunded loan commitments	95		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	28,696		29,783		(1,087)		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 September 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	$	5	$	—	$	5	$	58	$	—	$	58
Trading inventory – other (1)	Trading inventory – other (1)	(730)		0		(730)		(2,793)		0		(2,793)		Trading inventory – other (1)	(1,155)		—		(1,155)		709		—		709
Consumer and commercial loans	Consumer and commercial loans	71		19		90		(83)		(358)		(441)		Consumer and commercial loans	(56)		(11)		(67)		(2)		102		100

Loans held-for-sale (2)														Loans held-for-sale (2)	—		53		53		—		22		22

Short-term borrowings	Short-term borrowings	413		0		413		517		0		517		Short-term borrowings	548		—		548		(38)		—		(38)
Unfunded loan commitments	Unfunded loan commitments	0		5		5		0		(116)		(116)		Unfunded loan commitments	—		8		8		—		(18)		(18)

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)	225		(9)		216		(347)		(6)		(353)
Other (4)														Other (4)	7		—		7		19		7		26
Total														Total	$	(426)	$	41	$	(385)	$	399	$	107	$	506

															Nine Months Ended September 30
															2021						2020

Loans reported as trading account assets														Loans reported as trading account assets	$	288	$	—	$	288	$	(15)	$	—	$	(15)
Trading inventory – other (1)														Trading inventory – other (1)	419		—		419		1,259		—		1,259
Consumer and commercial loans														Consumer and commercial loans	58		34		92		(49)		(85)		(134)
Loans held-for-sale (2)														Loans held-for-sale (2)	—		64		64		—		67		67

Short-term borrowings														Short-term borrowings	1,022		—		1,022		196		—		196
Unfunded loan commitments														Unfunded loan commitments	—		2		2		—		(88)		(88)

Long-term debt (3)														Long-term debt (3)	(436)		(33)		(469)		(1,300)		(31)		(1,331)
Other (4)														Other (4)	18		(24)		(6)		28		(31)		(3)
Total	Total	$	264	$	18	$	282	$	(1,817)	$	(541)	$	(2,358)	Total	$	1,369	$	43	$	1,412	$	119	$	(168)	$	(49)

(1) The gains (losses) in market making and similar activities are primarily offset by (losses) gains 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~~(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 September 30				Nine Months Ended September 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	$	(21)	$	11	$	166	$	(225)
Consumer and commercial loans	Consumer and commercial loans		13		(349)			Consumer and commercial loans	(22)		100		10		(96)
Loans held-for-sale	Loans held-for-sale		(6)		(74)			Loans held-for-sale	37		(24)		35		(117)
Unfunded loan commitments	Unfunded loan commitments		5		(116)			Unfunded loan commitments	8		(18)		2		(88)


95Bank of America

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,~~September 30, 2021 and December 31, 2020 are presented in the ~~following table.~~table below.


						~~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)	September 30, 2021
Financial assets	Financial assets									Financial assets
Loans	Loans	$	865,652	$	48,960	$	862,801	$	911,761	Loans	$	894,158	$	52,330	$	880,083	$	932,413
Loans held-for-sale	Loans held-for-sale	7,895		7,173		722		7,895		Loans held-for-sale	9,415		8,601		823		9,424
Financial liabilities	Financial liabilities									Financial liabilities
Deposits (1)	Deposits (1)	1,884,938		1,884,934		0		1,884,934		Deposits (1)	1,964,804		1,964,794		—		1,964,794
Long-term debt	Long-term debt	251,211		258,936		1,028		259,964		Long-term debt	278,621		286,414		1,293		287,707
Commercial unfunded lending commitments (2)	Commercial unfunded lending commitments (2)	1,920		91		5,234		5,325		Commercial unfunded lending commitments (2)	1,633		95		6,542		6,637

		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		—		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~~$962.9 billion and $799.0 billion with 0no stated maturities at ~~March 31,~~September 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 nine months ended ~~March 31,~~September 30, 2021 and 2020, and total assets at ~~March 31,~~September 30, 2021 and 2020 for each business segment, as well as All Other.


						Bank of America96



Results of Business Segments and All Other

At and for the three months ended September 30	Total Corporation (1)			Consumer Banking		Global Wealth & Investment Management
(Dollars in millions)		2021		2020		2021		2020		2021		2020
Net interest income		$	11,195	$	10,243	$	6,493	$	5,890	$	1,451	$	1,237
Noninterest income		11,672		10,207		2,345		2,149		3,859		3,309
Total revenue, net of interest expense		22,867		20,450		8,838		8,039		5,310		4,546
Provision for credit losses		(624)		1,389		247		479		(58)		24
Noninterest expense		14,440		14,401		4,558		4,842		3,745		3,533
Income before income taxes		9,051		4,660		4,033		2,718		1,623		989
Income tax expense		1,360		(221)		988		666		398		242
Net income		$	7,691	$	4,881	$	3,045	$	2,052	$	1,225	$	747
Period-end total assets		$	3,085,446	$	2,738,452	$	1,091,431	$	947,513	$	393,708	$	337,576

	Global Banking			Global Markets		All Other
		2021		2020		2021		2020		2021		2020
Net interest income		$	2,186	$	2,028	$	1,000	$	1,108	$	65	$	(20)
Noninterest income		3,058		2,489		3,519		3,175		(1,109)		(915)
Total revenue, net of interest expense		5,244		4,517		4,519		4,283		(1,044)		(935)
Provision for credit losses		(781)		883		16		21		(48)		(18)
Noninterest expense		2,534		2,365		3,252		3,102		351		559
Income before income taxes		3,491		1,269		1,251		1,160		(1,347)		(1,476)
Income tax expense		942		343		325		302		(1,293)		(1,774)
Net income		$	2,549	$	926	$	926	$	858	$	(54)	$	298
Period-end total assets		$	623,640	$	553,776	$	776,929	$	676,242	$	199,738	$	223,345

(1)There were no material intersegment revenues.



Results of Business Segments and All Other

At and for the nine months ended September 30	Total Corporation (1)					Consumer Banking			Global Wealth & Investment Management
(Dollars in millions)		2021		2020			2021		2020		2021		2020
Net interest income		$	31,846	$	33,493		$	18,386	$	18,743	$	4,137	$	4,186
Noninterest income		35,529		32,322			6,707		6,277		11,209		9,721
Total revenue, net of interest expense		67,375		65,815			25,093		25,020		15,346		13,907
Provision for credit losses		(4,105)		11,267			(1,067)		5,761		(185)		349
Noninterest expense		45,000		41,286			14,548		14,074		11,425		10,596
Income before income taxes		26,480		13,262			11,612		5,185		4,106		2,962
Income tax expense		1,515		838			2,845		1,270		1,006		726
Net income		$	24,965	$	12,424		$	8,767	$	3,915	$	3,100	$	2,236
Period-end total assets		$	3,085,446	$	2,738,452		$	1,091,431	$	947,513	$	393,708	$	337,576

	Global Banking					Global Markets			All Other
		2021		2020			2021		2020		2021		2020
Net interest income		$	6,150	$	7,003		$	2,980	$	3,558	$	193	$	3
Noninterest income		8,817		7,205			12,457		11,301		(3,661)		(2,182)
Total revenue, net of interest expense		14,967		14,208			15,437		14,859		(3,468)		(2,179)
Provision for credit losses		(2,738)		4,849			33		233		(148)		75
Noninterest expense		7,915		6,910			10,150		8,598		962		1,108
Income before income taxes		9,790		2,449			5,254		6,028		(4,282)		(3,362)
Income tax expense		2,643		661			1,366		1,567		(6,345)		(3,386)
Net income		$	7,147	$	1,788		$	3,888	$	4,461	$	2,063	$	24
Period-end total assets		$	623,640	$	553,776		$	776,929	$	676,242	$	199,738	$	223,345

(1)There were no material intersegment revenues


97Bank of America

The tables below present noninterest income and the associated components for the three and nine months ended September 30, 2021 and 2020 for each business segment, All Other ~~including~~and the total Corporation. For more information, see Note 2 – Net Interest Income and Noninterest Income.



Noninterest Income by Business Segment and All Other

	Total Corporation				Consumer Banking			Global Wealth & Investment Management
	Three Months Ended September 30
(Dollars in millions)	2021		2020			2021		2020		2021		2020
Fees and commissions:
Card income
Interchange fees	$	1,154	$	1,172		$	905	$	840	$	11	$	10
Other card income	429		396			412		380		11		11
Total card income	1,583		1,568			1,317		1,220		22		21
Service charges
Deposit-related fees	1,619		1,515			935		837		18		17
Lending-related fees	309		302			—		—		—		—
Total service charges	1,928		1,817			935		837		18		17
Investment and brokerage services
Asset management fees	3,276		2,740			49		36		3,228		2,706
Brokerage fees	960		883			32		32		455		399
Total investment and brokerage services	4,236		3,623			81		68		3,683		3,105
Investment banking fees
Underwriting income	1,168		1,239			—		—		82		93
Syndication fees	346		133			—		—		—		—
Financial advisory services	654		397			—		—		—		—
Total investment banking fees	2,168		1,769			—		—		82		93
Total fees and commissions	9,915		8,777			2,333		2,125		3,805		3,236
Market making and similar activities	2,005		1,689			1		—		9		14
Other income (loss)	(248)		(259)			11		24		45		59
Total noninterest income	$	11,672	$	10,207		$	2,345	$	2,149	$	3,859	$	3,309


	Global Banking				Global Markets			All Other (1)
	Three Months Ended September 30
	2021		2020			2021		2020		2021		2020
Fees and commissions:
Card income
Interchange fees	$	180	$	153		$	59	$	170	$	(1)	$	(1)
Other card income	5		3			—		—		1		2
Total card income	185		156			59		170		—		1
Service charges
Deposit-related fees	633		597			30		54		3		10
Lending-related fees	257		249			53		54		(1)		(1)
Total service charges	890		846			83		108		2		9
Investment and brokerage services
Asset management fees	—		—			—		—		(1)		(2)
Brokerage fees	9		14			470		439		(6)		(1)
Total investment and brokerage services	9		14			470		439		(7)		(3)
Investment banking fees
Underwriting income	512		536			629		643		(55)		(33)
Syndication fees	177		78			170		55		(1)		—
Financial advisory services	608		356			45		40		1		1
Total investment banking fees	1,297		970			844		738		(55)		(32)
Total fees and commissions	2,381		1,986			1,456		1,455		(60)		(25)
Market making and similar activities	40		16			2,014		1,725		(59)		(66)
Other income (loss)	637		487			49		(5)		(990)		(824)
Total noninterest income	$	3,058	$	2,489		$	3,519	$	3,175	$	(1,109)	$	(915)

(1)All Other includes eliminations of intercompany transactions.


						Bank of America98



Noninterest Income by Business Segment and All Other

	Total Corporation				Consumer Banking				Global Wealth & Investment Management
	Nine Months Ended September 30
(Dollars in millions)	2021		2020		2021		2020		2021		2020
Fees and commissions:
Card income
Interchange fees	$	3,431	$	2,794	$	2,687	$	2,129	$	33	$	26
Other card income	1,173		1,295		1,131		1,255		29		30
Total card income	4,604		4,089		3,818		3,384		62		56
Service charges
Deposit-related fees	4,671		4,441		2,617		2,538		54		49
Lending-related fees	923		841		—		—		—		—
Total service charges	5,594		5,282		2,617		2,538		54		49
Investment and brokerage services
Asset management fees	9,434		7,905		136		108		9,298		7,811
Brokerage fees	2,988		2,898		100		96		1,312		1,270
Total investment and brokerage services	12,422		10,803		236		204		10,610		9,081
Investment banking fees
Underwriting income	4,028		3,610		—		—		305		292
Syndication fees	1,047		634		—		—		—		—
Financial advisory services	1,461		1,072		—		—		—		—
Total investment banking fees	6,536		5,316		—		—		305		292
Total fees and commissions	29,156		25,490		6,671		6,126		11,031		9,478
Market making and similar activities	7,360		6,983		1		2		31		52
Other income (loss)	(987)		(151)		35		149		147		191
Total noninterest income	$	35,529	$	32,322	$	6,707	$	6,277	$	11,209	$	9,721


	Global Banking				Global Markets				All Other (1)
	Nine Months Ended September 30
	2021		2020		2021		2020		2021		2020
Fees and commissions:
Card income
Interchange fees	$	503	$	337	$	208	$	301	$	—	$	1
Other card income	12		10		—		—		1		—
Total card income	515		347		208		301		1		1
Service charges
Deposit-related fees	1,877		1,693		117		134		6		27
Lending-related fees	760		686		163		156		—		(1)
Total service charges	2,637		2,379		280		290		6		26
Investment and brokerage services
Asset management fees	—		—		—		—		—		(14)
Brokerage fees	90		45		1,504		1,487		(18)		—
Total investment and brokerage services	90		45		1,504		1,487		(18)		(14)
Investment banking fees
Underwriting income	1,754		1,607		2,165		1,879		(196)		(168)
Syndication fees	547		357		500		278		—		(1)
Financial advisory services	1,341		948		119		123		1		1
Total investment banking fees	3,642		2,912		2,784		2,280		(195)		(168)
Total fees and commissions	6,884		5,683		4,776		4,358		(206)		(155)
Market making and similar activities	99		88		7,448		7,059		(219)		(218)
Other income (loss)	1,834		1,434		233		(116)		(3,236)		(1,809)
Total noninterest income	$	8,817	$	7,205	$	12,457	$	11,301	$	(3,661)	$	(2,182)

(1)All Other includes eliminations of intercompany transactions.


99Bank of America

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.

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



Business Segment Reconciliations

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2021		2020		2021		2020
Segments’ total revenue, net of interest expense	$	23,911	$	21,385	$	70,843	$	67,994
Adjustments (1):
Asset and liability management activities	3		(168)		(41)		425
Liquidating businesses, eliminations and other	(1,047)		(767)		(3,427)		(2,604)
FTE basis adjustment	(101)		(114)		(322)		(386)
Consolidated revenue, net of interest expense	$	22,766	$	20,336	$	67,053	$	65,429
Segments’ total net income	7,745		4,583		22,902		12,400
Adjustments, net-of-tax (1):
Asset and liability management activities	10		(127)		(20)		316
Liquidating businesses, eliminations and other	(64)		425		2,083		(292)
Consolidated net income	$	7,691	$	4,881	$	24,965	$	12,424

					September 30
					2021		2020
Segments’ total assets					$	2,885,708	$	2,515,107
Adjustments (1):
Asset and liability management activities, including securities portfolio					1,296,026		1,018,385
Elimination of segment asset allocations to match liabilities					(1,162,175)		(857,788)

Other					65,887		62,748
Consolidated total assets					$	3,085,446	$	2,738,452

(1)~~There were no material intersegment revenues.~~


87~~Bank of America~~

~~The table below presents noninterest~~Adjustments include consolidated income, expense and ~~the associated components for the three months ended March 31, 2021 and 2020 for each~~asset amounts not specifically allocated to individual 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
Total Corporation Consumer Banking Global Wealth &
Investment Management
Three Months Ended March 31
(Dollars in millions) 2021 2020 2021 2020 2021 2020
Fees and commissions:
Card income
Interchange fees $ 1,067 $ 792 $ 835 $ 644 $ 10 $ 8
Other card income 368 480 354 466 9 9
Total card income 1,435 1,272 1,189 1,110 19 17
Service charges
Deposit-related fees 1,495 1,627 831 995 18 17
Lending-related fees 297 276 0 0 0 0
Total service charges 1,792 1,903 831 995 18 17
Investment and brokerage services
Asset management fees 3,002 2,682 41 38 2,961 2,652
Brokerage fees 1,061 1,076 36 32 430 470
Total investment and brokerage services 4,063 3,758 77 70 3,391 3,122
Investment banking fees
Underwriting income 1,546 848 0 0 135 115
Syndication fees 300 271 0 0 0 0
Financial advisory services 400 269 0 0 0 0
Total investment banking fees 2,246 1,388 0 0 135 115
Total fees and commissions 9,536 8,321 2,097 2,175 3,563 3,271
Market making and similar activities 3,529 2,807 0 1 11 21
Other income (loss) (441) (491) 52 91 66 73
Total noninterest income $ 12,624 $ 10,637 $ 2,149 $ 2,267 $ 3,640 $ 3,365
Global Banking Global Markets
All Other (1)
Three Months Ended March 31
2021 2020 2021 2020 2021 2020
Fees and commissions:
Card income
Interchange fees $ 146 $ 119 $ 76 $ 21 $ 0 $ 0
Other card income 4 4 0 0 1 1
Total card income 150 123 76 21 1 1
Service charges
Deposit-related fees 602 572 42 35 2 8
Lending-related fees 245 224 52 52 0 0
Total service charges 847 796 94 87 2 8
Investment and brokerage services
Asset management fees 0 0 0 0 0 (8)
Brokerage fees 41 7 560 567 (6) 0
Total investment and brokerage services 41 7 560 567 (6) (8)
Investment banking fees
Underwriting income 654 368 799 455 (42) (90)
Syndication fees 161 146 139 125 0 0
Financial advisory services 357 247 43 22 0 0
Total investment banking fees 1,172 761 981 602 (42) (90)
Total fees and commissions 2,210 1,687 1,711 1,277 (45) (89)
Market making and similar activities 31 87 3,470 2,973 17 (275)
Other income (loss) 412 214 27 (177) (998) (692)
Total noninterest income $ 2,653 $ 1,988 $ 5,208 $ 4,073 $ (1,026) $ (1,056)

~~(1)All Other~~ ~~includes eliminations of intercompany transactions.~~

segments.


						Bank of America 88100

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

~~(1)Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.~~


89~~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.

101Bank of America

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~~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
FCA			Financial Conduct Authority
FHA			Federal Housing Administration

FHLB			Federal Home Loan Bank
FHLMC			Freddie Mac
FICC			Fixed income, currencies and commodities
FICO			Fair Isaac Corporation (credit score)

FINRA			Financial Industry Regulatory Authority, Inc.
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~~











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




NSFR			Net Stable Funding Ratio
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


SOFR			Secured Overnight Financing Rate
TDR			Troubled debt restructurings
TLAC			Total loss-absorbing capacity


VaR			Value-at-Risk
VIE			Variable interest entity


91~~Bank of America~~


						Bank of America102

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,~~September 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)
July 1 - 31, 2021	77,529	$	38.66	77,529	$	17,892
August 1 - 31, 2021	133,677	40.55		131,990	12,709
September 1 - 30, 2021	38,045	41.18		38,043	11,191
Three months ended September 30, 2021	249,251	40.06		247,562

(1)Includes 241.7 million 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 September 30, 2021, the Corporation repurchased 248 million shares, or $9.9 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. On October 20, 2021, the Board renewed the Corporation’s $25 billion common stock repurchase program previously announced in April 2021. The Board’s authorization replaces the previous program.

The Corporation did not have any unregistered sales of equity securities during the three months ended ~~March 31,~~September 30, 2021.

Item 5. Other Information

Pursuant to Section 13(r) of the Securities Exchange Act of 1934, as amended (Exchange Act), an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure may be required even where the activities, transactions or dealings were conducted in compliance with applicable law. Except as set forth below, as of the date of this Quarterly Report on Form 10-Q, the Corporation is not aware of any other activity, transaction or dealing by any of its affiliates during the quarter ended September 30, 2021 that requires disclosure under Section 13(r) of the Exchange Act.

Pursuant to a specific license from the U.S. Treasury Department’s Office of Foreign Assets Control issued on May 28, 2021, during the third quarter of 2021, Bank of America, National Association (BANA), a U.S. subsidiary of Bank of America Corporation, processed four authorized wire deposits totaling $1.2 million on behalf of a U.S. client into its account at BANA. The wire deposits settled invoices owed to the U.S. client and were unblocked funds belonging to Jammal Trust Bank, which at the time of the deposits was designated pursuant to Executive Order 13224. There was no measurable gross revenue or net profit to the Corporation relating to these transactions. The Corporation may in the future engage in similar transactions for its clients to the extent permitted by U.S. law.

103Bank of America

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	1

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		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

10.2		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	1

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	1

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	1

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	1

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	1

101.INS	101.INS	Inline XBRL Instance Document	3					101.INS	Inline XBRL Instance Document	2

101.SCH	101.SCH	Inline XBRL Taxonomy Extension Schema Document	1					101.SCH	Inline XBRL Taxonomy Extension Schema Document	1

101.CAL	101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	1					101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	1

101.LAB	101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	1					101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	1

101.PRE	101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	1					101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	1

101.DEF	101.DEF	Inline XBRL Taxonomy Extension Definitions Linkbase Document	1					101.DEF	Inline XBRL Taxonomy Extension Definitions Linkbase Document	1

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.~~

~~(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~~October 29, 2021

/s/ Rudolf A. Bless

Rudolf A. Bless
Chief Accounting Officer


93~~Bank of America~~


						Bank of America104




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