~~0000070858bac:MeasurementInputUpfrontPointsMembersrt:MinimumMemberbac:~~0000070858us-gaap:FairValueInputsLevel3Memberbac:MeasurementInputUpfrontPointsMemberbac:ValuationTechniqueDiscountedCashFlowStochasticRecoveryCorrelationModelMemberus-gaap:~~FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CreditRiskContractMember2020-12-31~~CreditRiskContractMembersrt:WeightedAverageMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-31

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 ~~June~~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


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 ~~July 29,~~October 28, 2021, there were ~~8,414,903,881~~8,184,084,032 shares of Bank of America Corporation Common Stock outstanding.

Bank of America Corporation and Subsidiaries

~~June~~September 30, 2021

Form 10-Q

INDEX

Part I. Financial Information


Item 1. Financial Statements						Page
Consolidated Statement of Income						4849
Consolidated Statement of Comprehensive Income						4849
Consolidated Balance Sheet						4950
Consolidated Statement of Changes in Shareholders’ Equity						5051
Consolidated Statement of Cash Flows						5152
Notes to Consolidated Financial Statements						5253
Note 1 – Summary of Significant Accounting Principles						5253
Note 2 – Net Interest Income and Noninterest Income						5253
Note 3 – Derivatives						5455
Note 4 – Securities						6162
Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses						6465

Note 6 – Securitizations and Other Variable Interest Entities						7576
Note 7 – Goodwill and Intangible Assets						7980
Note 8 – Leases						7980
Note 9 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash						8081
Note 10 – Commitments and Contingencies						8283
Note 11 – Shareholders’ Equity						8586
Note 12 – Accumulated Other Comprehensive Income (Loss)						8586
Note 13 – Earnings Per Common Share						8687

Note 14 – Fair Value Measurements						8687
Note 15 – Fair Value Option						9394
Note 16 – Fair Value of Financial Instruments						9596
Note 17 – Business Segment Information						9596
Glossary						~~100~~101
Acronyms						~~101~~102



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						7
Business Segment Operations						11
Consumer Banking						11
Global Wealth & Investment Management						15
Global Banking						17
Global Markets						19

All Other						21
Off-Balance Sheet Arrangements and Contractual Obligations						22
Managing Risk						22

Capital Management						22
Liquidity Risk						26
Credit Risk Management						29
Consumer Portfolio Credit Risk Management						29
Commercial Portfolio Credit Risk Management						35
Non-U.S. Portfolio						4041

Allowance for Credit Losses						4142
Market Risk Management						4243
Trading Risk Management						4344
Interest Rate Risk Management for the Banking Book						4546
Mortgage Banking Risk Management						4546



Climate Risk Management						4647
Complex Accounting Estimates						4647
Non-GAAP Reconciliations						4748

Item 3. Quantitative and Qualitative Disclosures about Market Risk						4748
Item 4. Controls and Procedures						4748


1 Bank of America

Part II. Other Information


Item 1. Legal Proceedings						~~102~~103
Item 1A. Risk Factors						~~102~~103
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						~~102~~103
Item 5 . Other Information						103
Item 6. Exhibits						~~103~~104
Signature						~~103~~104

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 ~~June~~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 ~~June~~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 41 million active users, including approximately 32 million active mobile users. We offer industry-leading support to approximately three million small business households. Our GWIM businesses, with client balances of $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

OnIn June ~~24,~~ 2021, the Board of Governors of the Federal Reserve System (Federal Reserve) ~~announced the results~~notified BHCs of ~~our~~their 2021 Comprehensive Capital Analysis and Review (CCAR) stress test results, which included a preliminary stress capital ~~plan and related supervisory stress tests.~~buffer (SCB) that was finalized in August 2021. Based on our results, we ~~will be~~ are

subject to a ~~preliminary~~ 2.5 percent ~~stress capital buffer (SCB) beginning~~SCB effective October 1, 2021 through September 30, 2022, unchanged from the ~~current level, and our~~prior level. Our minimum Basel 3 Common equity tier 1 (CET1) capital ratio requirement ~~will~~ also ~~remain~~remained unchanged at 9.5 percent.

On ~~July 21,~~October 20, 2021, the ~~Corporation’s~~Corporation announced that the Board of Directors (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. As with the April authorization, the Board also authorized common stock repurchases to offset shares awarded under the Corporation’s equity-based compensation plans. The Board also declared a quarterly cash common stock dividend of $0.21 per share, ~~an increase of 17 percent compared to the prior~~

~~dividend rate,~~ payable on ~~September 24,~~December 31, 2021 to shareholders of record as of ~~September~~December 3, 2021.

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

~~U.K. Tax Law Change~~Organizational Changes

~~On June 10, 2021,~~During the ~~U.K. enacted the 2021 Finance Act, which increases the U.K. corporation income tax rate to 25 percent from 19 percent, effective April 1, 2023. As a result, during the second~~third quarter of 2021, we announced certain changes to the ~~Corporation recorded a write-up of U.K. net deferred tax assets of approximately $2.0 billion with a corresponding positive income tax adjustment.~~Corporation’s senior management team. For more information, see ~~Financial Highlights – Income Tax Expense~~the Corporation’s Current Reports on ~~page 6.~~Form 8-K filed on August 26, September 10, September 14 and October 20, 2021.

COVID-19 Pandemic

The ~~Corporation has been, and may continue to be, impacted by the~~ Coronavirus Disease 2019 (COVID-19) pandemic (the pandemic)~~. During~~ has impacted the ~~first half of 2021, the macroeconomic outlook improved in the U.S.~~Corporation and ~~several regions of the world,~~may continue to do so, as ~~COVID-19 cases decreased and vaccinations became more widely available. However,~~ uncertainty ~~still~~ remains about the duration of the pandemic and the timing and strength of the global economic recovery. As the pandemic ~~evolves,~~continues to evolve, we ~~continue to review~~regularly evaluate protocols and processes in place to execute our business continuity plans. In conjunction with our efforts to support clients affected by the pandemic, we have cumulatively originated $35.4 billion in loans under the Paycheck Protection Program (PPP) with amounts outstanding of $8.4 billion and $15.7 billion ~~and $21.1 billion~~ at ~~June~~September 30, 2021 and ~~March 31,~~June 30, 2021. For more information on PPP loans, see Commercial Portfolio Credit Risk Management on page 35.

~~Although the macroeconomic and public health outlooks improved in the U.S. and globally during the first half of 2021, the~~The future 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 ~~COVID-19 variants that are~~ more easily communicable ~~or resistant to currently available vaccines,~~variants of COVID-19, 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 (ARRs). Additionally, as previously disclosed, the FCA announced the dates ~~for the cessation of~~that all LIBOR benchmark settings currently published by the ICE Benchmark ~~Administration. In connection with~~Administration will cease or become no longer representative of the ~~transition, in April 2021,~~underlying market the ~~State of New York approved legislation for contracts that are governed by New York law by providing a statutory framework~~rates seek to ~~replace LIBOR with a benchmark rate based on the Secured~~measure (i.e., non-representative),


3 Bank of America

~~Overnight Financing Rate (SOFR)~~subject to the continued publication of certain non-representative LIBOR benchmark settings based on a modified calculation (i.e., ~~which~~on a “synthetic” basis).

The Corporation continues to execute its enterprise-wide IBOR transition program, and is ~~anticipated~~particularly focused on contracts that reference certain IBORs that are expected to ~~help~~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 ~~reduce legal~~is continuing to remediate the remaining exposure. For any residual exposure after the end of 2021, the Corporation is assessing and ~~economic uncertainty with regard~~planning to ~~certain LIBOR-based products~~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 ~~have~~a fallback ~~provisions that are~~provision based on LIBOR.

~~The Corporation continues to execute its enterprise-wide IBOR transition program. As~~ Additionally, as part of this transition program, 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 ~~U.S. dollar~~USD consumer and commercial lending products and contracts. ~~Additionally,~~As previously disclosed, the Corporation has ceased initiation of ~~most~~ GBP LIBOR-linked derivatives, subject to certain exceptions, and is prioritizing interdealer trading in ~~SOFR~~the Secured Overnight Financing Rate (SOFR) rather than LIBOR for certain ~~U.S. dollar~~USD interest rate swaps in accordance with recommendations by the Commodity

Futures Trading Commission (CFTC). The Corporation continues to update its operational models, systems, processes and internal infrastructure.

While the Corporation continues to work towards meeting the regulatory and industry-wide recommended milestones on cessation of 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. Furthermore, banking regulators in the U.S. and globally have increased regulatory scrutiny and 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 June 30						Six Months Ended June 30									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			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		$	10,233		$	10,848		$	20,430		$	22,978		Net interest income			$	11,094		$	10,129		$	31,524		$	33,107
Noninterest income	Noninterest income		11,233			11,478			23,857			22,115			Noninterest income			11,672			10,207			35,529			32,322
Total revenue, net of interest expense	Total revenue, net of interest expense		21,466			22,326			44,287			45,093			Total revenue, net of interest expense			22,766			20,336			67,053			65,429
Provision for credit losses	Provision for credit losses		(1,621)			5,117			(3,481)			9,878			Provision for credit losses			(624)			1,389			(4,105)			11,267
Noninterest expense	Noninterest expense		15,045			13,410			30,560			26,885			Noninterest expense			14,440			14,401			45,000			41,286
Income before income taxes	Income before income taxes		8,042			3,799			17,208			8,330			Income before income taxes			8,950			4,546			26,158			12,876
Income tax expense	Income tax expense		(1,182)			266			(66)			787			Income tax expense			1,259			(335)			1,193			452
Net income	Net income		9,224			3,533			17,274			7,543			Net income			7,691			4,881			24,965			12,424
Preferred stock dividends	Preferred stock dividends		260			249			750			718			Preferred stock dividends			431			441			1,181			1,159
Net income applicable to common shareholders	Net income applicable to common shareholders		$	8,964		$	3,284		$	16,524		$	6,825		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		$	1.04		$	0.38		$	1.91		$	0.78		Earnings			$	0.86		$	0.51		$	2.77		$	1.29
Diluted earnings	Diluted earnings		1.03			0.37			1.90			0.77			Diluted earnings			0.85			0.51			2.75			1.28
Dividends paid	Dividends paid		0.18			0.18			0.36			0.36			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)		1.23		%	0.53		%	1.18		%	0.58		%	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)		14.33			5.44			13.31			5.67			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)		19.90			7.63			18.51			7.97			Return on average tangible common shareholders’ equity (2)			15.85			10.16			17.61			8.71
Efficiency ratio (1)	Efficiency ratio (1)		70.09			60.06			69.00			59.62			Efficiency ratio (1)			63.43			70.81			67.11			63.10
									June 30 2021			December 31 2020												September 30 2021			December 31 2020

Balance sheet	Balance sheet																Balance sheet
Total loans and leases	Total loans and leases								$	918,928		$	927,861		Total loans and leases									$	927,736		$	927,861
Total assets	Total assets								3,029,894			2,819,627			Total assets									3,085,446			2,819,627
Total deposits	Total deposits								1,909,142			1,795,480			Total deposits									1,964,804			1,795,480
Total liabilities	Total liabilities								2,752,775			2,546,703			Total liabilities									2,812,982			2,546,703
Total common shareholders’ equity	Total common shareholders’ equity								253,678			248,414			Total common shareholders’ equity									249,023			248,414
Total shareholders’ equity	Total shareholders’ equity								277,119			272,924			Total shareholders’ equity									272,464			272,924

(1)For definitions, see Key Metrics on page ~~101.~~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 ~~47.~~48.


						Bank of America 4

Net income was ~~$9.2~~$7.7 billion and ~~$17.3~~$25.0 billion, or ~~$1.03~~$0.85 and ~~$1.90~~$2.75 per diluted share, for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$3.5~~$4.9 billion and ~~$7.5~~$12.4 billion, or ~~$0.37~~$0.51 and ~~$0.77~~$1.28 per diluted share, for the same periods in 2020. The increase in net income was ~~primarily~~ due to improvement in the provision for credit losses and ~~a positive income tax adjustment related to the revaluation of U.K. net deferred tax assets,~~higher revenue, partially offset by higher noninterest expense.

Total assets increased ~~$210.3~~$265.8 billion from December 31, 2020 to ~~$3.0~~$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 ~~$206.1~~$266.3 billion from December 31, 2020 to $2.8 trillion primarily driven by an increase in deposits due to ~~additional~~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 higher federal funds purchased and securities loaned or sold under agreements to repurchase due to client activity in Global Markets ~~and~~.~~an increase in trading account liabilities resulting from higher levels of short positions in~~ ~~Global Markets.~~

Shareholders’ equity ~~increased $4.2 billion~~decreased $460 million from December 31, 2020 primarily due to ~~net income, 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.~~derivatives, partially offset by net income.

Net Interest Income

Net interest income ~~decreased $615~~increased $965 million to ~~$10.2~~$11.1 billion, and ~~$2.5~~decreased $1.6 billion to ~~$20.4~~$31.5 billion for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same periods in 2020. Net interest yield on a fully taxable-equivalent (FTE) basis decreased 264 basis points (bps) to ~~1.61~~1.68 percent, and 4530 bps to ~~1.64~~1.66 percent for the same periods. The ~~decrease~~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 the nine-month period was primarily driven by lower interest rates and loan balances, partially offset by higher balances of debt securities. For more information on net interest yield and the FTE basis, see Supplemental Financial Data on page 7, and for more information on interest rate risk management, see Interest Rate Risk Management for the Banking Book on page ~~45.~~46.

Noninterest Income


Table 2	Table 2	Noninterest Income									Table 2	Noninterest Income

			Three Months Ended June 30				Six Months Ended June 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
Fees and commissions:	Fees and commissions:										Fees and commissions:
Card income	Card income		$	1,586	$	1,249	$	3,021	$	2,521	Card income		$	1,583	$	1,568	$	4,604	$	4,089
Service charges	Service charges		1,874		1,562		3,666		3,465		Service charges		1,928		1,817		5,594		5,282
Investment and brokerage services	Investment and brokerage services		4,123		3,422		8,186		7,180		Investment and brokerage services		4,236		3,623		12,422		10,803
Investment banking fees	Investment banking fees		2,122		2,159		4,368		3,547		Investment banking fees		2,168		1,769		6,536		5,316
Total fees and commissions	Total fees and commissions		9,705		8,392		19,241		16,713		Total fees and commissions		9,915		8,777		29,156		25,490
Market making and similar activities	Market making and similar activities		1,826		2,487		5,355		5,294		Market making and similar activities		2,005		1,689		7,360		6,983

Other income	Other income		(298)		599		(739)		108		Other income		(248)		(259)		(987)		(151)

Total noninterest income	Total noninterest income		$	11,233	$	11,478	$	23,857	$	22,115	Total noninterest income		$	11,672	$	10,207	$	35,529	$	32,322

Noninterest income ~~decreased~~increased $~~245 million~~1.5 billion to ~~$11.2~~$11.7 billion and increased ~~$1.7~~$3.2 billion to ~~$23.9~~$35.5 billion for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same periods in 2020. The following highlights the significant changes.

● Card income increased ~~$337~~$515 million ~~and $500 million~~for the nine-month period primarily driven by increased client activity and merchant services revenue.

● Service charges increased ~~$312~~$111 million and ~~$201~~$312 million primarily due to ~~higher treasury fees and~~ increased client activity in the three-month period and higher treasury and credit service charges in the nine-month period.

● Investment and brokerage services ~~income~~ increased ~~$701~~$613 million and ~~$1.0~~$1.6 billion primarily driven by higher market valuations and assets under management (AUM) flows, partially offset by declines in AUM pricing.

● Investment banking fees increased ~~$821~~$399 million ~~for the six-month period~~and $1.2 billion primarily ~~driven by~~due to higher ~~equity issuance fees as well as~~ advisory and debt issuance ~~fees.~~

fees and increased equity issuance fees in the nine-month period.

● Market making and similar activities ~~decreased $661~~increased $316 million ~~for the three-month period~~and $377 million primarily driven by ~~higher~~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 due to a more robust trading environment for macro products and market recoveries from the end of the first quarter of 2020.~~period.

● Other income decreased ~~$897~~$836 million ~~and $847 million~~for the nine-month period primarily due to a $704 million gain on sales of certain mortgage loans in the prior year, as well as higher partnership losses on tax credit investments.

Provision for Credit Losses

The provision for credit losses improved ~~$6.7~~$2.0 billion to a benefit of ~~$1.6 billion~~$624 million and ~~$13.4~~$15.4 billion to a benefit of ~~$3.5~~$4.1 billion for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same periods in ~~2020,~~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 ~~improvement~~improvements in the macroeconomic ~~outlook.~~outlook and credit quality. For more information on the provision for credit losses, see Allowance for Credit Losses on page ~~41.~~42.


5 Bank of America

Noninterest Expense


Table 3	Table 3	Noninterest Expense												Table 3	Noninterest Expense

			Three Months Ended June 30						Six Months Ended June 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
Compensation and benefits	Compensation and benefits		$	8,653		$	7,994		$	18,389		$	16,335	Compensation and benefits		$	8,714		$	8,200		$	27,103		$	24,535
Occupancy and equipment	Occupancy and equipment		1,759			1,802			3,589			3,504		Occupancy and equipment		1,764			1,798			5,353			5,302
Information processing and communications	Information processing and communications		1,448			1,265			2,873			2,474		Information processing and communications		1,416			1,333			4,289			3,807
Product delivery and transaction related	Product delivery and transaction related		976			811			1,953			1,588		Product delivery and transaction related		987			930			2,940			2,518
Marketing	Marketing		810			492			1,181			930		Marketing		347			308			1,528			1,238
Professional fees	Professional fees		426			381			829			756		Professional fees		434			450			1,263			1,206
Other general operating	Other general operating		973			665			1,746			1,298		Other general operating		778			1,382			2,524			2,680
Total noninterest expense	Total noninterest expense		$	15,045		$	13,410		$	30,560		$	26,885	Total noninterest expense		$	14,440		$	14,401		$	45,000		$	41,286

Noninterest expense increased ~~$1.6 billion~~$39 million to ~~$15.0~~$14.4 billion, and $3.7 billion to ~~$30.6~~$45.0 billion for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same 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 ~~three-month~~nine-month period was primarily due to higher compensation and benefits expense, a ~~$500 million~~ contribution to the Bank of America Foundation, ~~and approximately $300 million~~higher costs associated with processing

transactional card claims related to state unemployment benefits. The increase in the six-month period was primarily driven by the same factors as the three-month period as well as elevated net COVID-19 related costs, acceleration of expenses due to incentive compensation award changes,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 June 30								Six Months Ended June 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
Income before income taxes	Income before income taxes		$	8,042			$	3,799			$	17,208			$	8,330		Income before income taxes		$	8,950			$	4,546			$	26,158			$	12,876
Income tax expense	Income tax expense		(1,182)				266				(66)				787			Income tax expense		1,259				(335)				1,193				452
Effective tax rate	Effective tax rate		(14.7)		%		7.0		%		(0.4)		%		9.4		%	Effective tax rate		14.1		%		(7.4)		%		4.6		%		3.5		%

Changes in the effective tax rates for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same periods a year ago were driven by the impact of our recurring tax preference benefits 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 ESG investments in affordable housing and renewable energy, aligning with our responsible growth strategy to address global sustainability challenges. Absent these tax credits and the impact of the U.K. tax law ~~change,~~changes, the effective tax rate would have been approximately 25 ~~percent.~~percent for the 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 ~~increases~~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 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.


						Bank of America 6

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’ equity or common 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’ 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 ~~47.~~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 101.

~~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.~~


7~~Bank of America~~

Table 5 Selected Quarterly Financial Data
2021 Quarters 2020 Quarters Six Months Ended
June 30
(In millions, except per share information) Second First Fourth Third Second 2021 2020
Income statement
Net interest income $ 10,233 $ 10,197 $ 10,253 $ 10,129 $ 10,848 $ 20,430 $ 22,978
Noninterest income 11,233 12,624 9,846 10,207 11,478 23,857 22,115
Total revenue, net of interest expense 21,466 22,821 20,099 20,336 22,326 44,287 45,093
Provision for credit losses (1,621) (1,860) 53 1,389 5,117 (3,481) 9,878
Noninterest expense 15,045 15,515 13,927 14,401 13,410 30,560 26,885
Income before income taxes 8,042 9,166 6,119 4,546 3,799 17,208 8,330
Income tax expense (1,182) 1,116 649 (335) 266 (66) 787
Net income 9,224 8,050 5,470 4,881 3,533 17,274 7,543
Net income applicable to common shareholders 8,964 7,560 5,208 4,440 3,284 16,524 6,825
Average common shares issued and outstanding 8,620.8 8,700.1 8,724.9 8,732.9 8,739.9 8,660.4 8,777.6
Average diluted common shares issued and outstanding 8,735.5 8,755.6 8,785.0 8,777.5 8,768.1 8,776.2 8,813.3
Performance ratios
Return on average assets (1)
1.23 % 1.13 % 0.78 % 0.71 % 0.53 % 1.18 % 0.58 %
Four-quarter trailing return on average assets (2)
0.97 0.79 0.67 0.75 0.81 n/a n/a
Return on average common shareholders’ equity (1)
14.33 12.28 8.39 7.24 5.44 13.31 5.67
Return on average tangible common shareholders’ equity (3)
19.90 17.08 11.73 10.16 7.63 18.51 7.97
Return on average shareholders’ equity (1)
13.47 11.91 8.03 7.26 5.34 12.70 5.71
Return on average tangible shareholders’ equity (3)
18.11 16.01 10.84 9.84 7.23 17.07 7.76
Total ending equity to total ending assets 9.15 9.23 9.68 9.82 9.69 9.15 9.69
Total average equity to total average assets 9.11 9.52 9.71 9.76 9.85 9.31 10.21
Dividend payout 17.25 20.68 30.11 35.36 47.87 18.82 46.16
Per common share data
Earnings $ 1.04 $ 0.87 $ 0.60 $ 0.51 $ 0.38 $ 1.91 $ 0.78
Diluted earnings 1.03 0.86 0.59 0.51 0.37 1.90 0.77
Dividends paid 0.18 0.18 0.18 0.18 0.18 0.36 0.36
Book value (1)
29.89 29.07 28.72 28.33 27.96 29.89 27.96
Tangible book value (3)
21.61 20.90 20.60 20.23 19.90 21.61 19.90
Market capitalization $ 349,925 $ 332,337 $ 262,206 $ 208,656 $ 205,772 $ 349,925 $ 205,772
Average balance sheet
Total loans and leases $ 907,900 $ 907,723 $ 934,798 $ 974,018 $ 1,031,387
Total assets 3,015,113 2,879,221 2,791,874 2,739,684 2,704,186
Total deposits 1,888,834 1,805,747 1,737,139 1,695,488 1,658,197
Long-term debt 232,034 220,836 225,423 224,254 221,167
Common shareholders’ equity 250,948 249,648 246,840 243,896 242,889
Total shareholders’ equity 274,632 274,047 271,020 267,323 266,316
Asset quality
Allowance for credit losses (4)
$ 15,782 $ 17,997 $ 20,680 $ 21,506 $ 21,091
Nonperforming loans, leases and foreclosed properties (5)
5,031 5,299 5,116 4,730 4,611
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)
1.55 % 1.80 % 2.04 % 2.07 % 1.96 %
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)
287 313 380 431 441
Net charge-offs $ 595 $ 823 $ 881 $ 972 $ 1,146
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)
0.27 % 0.37 % 0.38 % 0.40 % 0.45 %
Capital ratios at period end (6)

Common equity tier 1 capital 11.5 % 11.8 % 11.9 % 11.9 % 11.4 %
Tier 1 capital 13.0 13.3 13.5 13.5 12.9
Total capital 15.1 15.6 16.1 16.1 14.8
Tier 1 leverage 6.9 7.2 7.4 7.4 7.4
Supplementary leverage ratio 5.9 7.0 7.2 6.9 7.1
Tangible equity (3)
7.0 7.0 7.4 7.4 7.3
Tangible common equity (3)
6.2 6.2 6.5 6.6 6.5
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets 27.7 % 26.8 % 27.4 % 26.9 % 26.0 %
Total loss-absorbing capacity to supplementary leverage exposure 12.5 14.1 14.5 13.7 14.2
Eligible long-term debt to risk-weighted assets 14.1 13.0 13.3 12.9 12.4
Eligible long-term debt to supplementary leverage exposure 6.3 6.8 7.1 6.6 6.7

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

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

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

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

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

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

~~n/a = not applicable~~


						~~Bank of America~~8

Table 6 Quarterly Average Balances and Interest Rates - FTE Basis
Average
Balance
Interest
Income/
Expense (1)
Yield/
Rate Average
Balance
Interest
Income/
Expense (1)
Yield/
Rate
(Dollars in millions) Second Quarter 2021 Second Quarter 2020
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central
banks and other banks
$ 247,673 $ 27 0.04 % $ 314,661 $ 33 0.04 %
Time deposits placed and other short-term investments 8,079 — 0.02 8,644 5 0.25
Federal funds sold and securities borrowed or purchased under
agreements to resell
270,443 (42) (0.06) 312,404 26 0.03
Trading account assets 152,307 967 2.55 143,370 1,021 2.86
Debt securities 895,902 2,834 1.27 476,060 2,462 2.10
Loans and leases (2)
Residential mortgage 214,096 1,498 2.80 241,486 1,880 3.11
Home equity 31,621 267 3.39 39,308 308 3.15
Credit card 73,399 1,876 10.25 86,191 2,140 9.99
Direct/Indirect and other consumer (3)
94,321 561 2.38 88,962 623 2.81
Total consumer 413,437 4,202 4.07 455,947 4,951 4.36
U.S. commercial (4)
322,633 2,049 2.55 374,965 2,526 2.71
Non-U.S. commercial (4)
96,343 429 1.78 116,040 578 2.00
Commercial real estate (5)
59,276 371 2.51 65,515 430 2.64
Commercial lease financing 16,211 108 2.67 18,920 128 2.71
Total commercial 494,463 2,957 2.40 575,440 3,662 2.56
Total loans and leases 907,900 7,159 3.16 1,031,387 8,613 3.35
Other earning assets 96,364 552 2.30 72,256 508 2.82
Total earning assets 2,578,668 11,497 1.79 2,358,782 12,668 2.16
Cash and due from banks 31,675 31,256
Other assets, less allowance for loan and lease losses 404,770 314,148
Total assets $ 3,015,113 $ 2,704,186
Interest-bearing liabilities
U.S. interest-bearing deposits
Savings $ 72,798 $ 1 0.01 % $ 56,931 $ 2 0.01 %
Demand and money market deposit accounts 915,420 78 0.03 850,274 152 0.07
Consumer CDs and IRAs 36,181 16 0.17 50,882 123 0.97
Negotiable CDs, public funds and other deposits 53,537 23 0.17 81,532 56 0.29
Total U.S. interest-bearing deposits 1,077,936 118 0.04 1,039,619 333 0.13
Non-U.S. interest-bearing deposits
Banks located in non-U.S. countries 1,191 — — 1,807 — 0.04
Governments and official institutions 204 — — 183 — —
Time, savings and other 80,747 10 0.05 74,158 40 0.21
Total non-U.S. interest-bearing deposits 82,142 10 0.05 76,148 40 0.21
Total interest-bearing deposits 1,160,078 128 0.04 1,115,767 373 0.13
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities 320,314 (85) (0.11) 295,465 (72) (0.10)
Trading account liabilities 58,823 293 2.01 40,717 223 2.20
Long-term debt 232,034 818 1.42 221,167 1,168 2.12
Total interest-bearing liabilities 1,771,249 1,154 0.26 1,673,116 1,692 0.41
Noninterest-bearing sources
Noninterest-bearing deposits 728,756 542,430
Other liabilities (6)
240,476 222,324
Shareholders’ equity 274,632 266,316
Total liabilities and shareholders’ equity $ 3,015,113 $ 2,704,186
Net interest spread 1.53 % 1.75 %
Impact of noninterest-bearing sources 0.08 0.12
Net interest income/yield on earning assets (7)
$ 10,343 1.61 % $ 10,976 1.87 %

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

~~(2)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.~~

~~(3)Includes non-U.S. consumer loans of $3.0 billion and $2.8 billion for the second quarter of 2021 and 2020.~~

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

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

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

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


9~~Bank of America~~

Table 7 Year-to-Date Average Balances and Interest Rates - FTE Basis
Average
Balance
Interest
Income/
Expense (1)
Yield/
Rate Average
Balance
Interest
Income/
Expense (1)
Yield/
Rate
Six Months Ended June 30
(Dollars in millions) 2021 2020
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central
   banks and other banks $ 262,802 $ 56 0.04 % $ 222,472 $ 301 0.27 %
Time deposits placed and other short-term investments 8,409 4 0.10 9,769 35 0.73
Federal funds sold and securities borrowed or purchased under
   agreements to resell 260,271 (49) (0.04) 295,599 845 0.57
Trading account assets 148,718 1,852 2.51 150,028 2,287 3.06
Debt securities 842,566 5,579 1.33 470,638 5,330 2.29
Loans and leases (2)

Residential mortgage 216,537 3,027 2.80 240,740 3,867 3.21
Home equity 32,622 548 3.39 39,674 729 3.69
Credit card 73,780 3,823 10.45 90,331 4,604 10.25
Direct/Indirect and other consumer (3)
92,883 1,120 2.43 89,958 1,369 3.06
Total consumer 415,822 8,518 4.12 460,703 10,569 4.60
U.S. commercial (4)
322,323 4,100 2.56 352,692 5,436 3.10
Non-U.S. commercial (4)
93,639 838 1.80 113,714 1,316 2.33
Commercial real estate (5)
59,505 736 2.49 64,467 1,013 3.16
Commercial lease financing 16,523 240 2.91 19,259 289 3.00
Total commercial 491,990 5,914 2.42 550,132 8,054 2.94
Total loans and leases 907,812 14,432 3.20 1,010,835 18,623 3.70
Other earning assets 99,985 1,129 2.28 80,065 1,489 3.74
Total earning assets 2,530,563 23,003 1.83 2,239,406 28,910 2.59
Cash and due from banks 32,794 29,626
Other assets, less allowance for loan and lease losses 384,185 330,525
Total assets $ 2,947,542 $ 2,599,557
Interest-bearing liabilities
U.S. interest-bearing deposits
Savings $ 70,207 $ 3 0.01 % $ 53,765 $ 3 0.01 %
Demand and money market deposit accounts 902,677 155 0.03 810,374 805 0.20
Consumer CDs and IRAs 37,188 42 0.23 52,123 274 1.06
Negotiable CDs, public funds and other deposits 53,162 46 0.18 74,759 265 0.72
Total U.S. interest-bearing deposits 1,063,234 246 0.05 991,021 1,347 0.27
Non-U.S. interest-bearing deposits
Banks located in non-U.S. countries 1,111 — 0.06 1,855 3 0.33
Governments and official institutions 201 — — 172 — 0.02
Time, savings and other 80,742 15 0.04 74,891 207 0.55
Total non-U.S. interest-bearing deposits 82,054 15 0.04 76,918 210 0.55
Total interest-bearing deposits 1,145,288 261 0.05 1,067,939 1,557 0.29
Federal funds purchased, securities loaned or sold under agreements to
   repurchase, short-term borrowings and other interest-bearing liabilities 306,850 (164) (0.11) 299,984 1,048 0.70
Trading account liabilities 50,917 539 2.14 44,430 552 2.50
Long-term debt 226,466 1,716 1.53 215,992 2,503 2.33
Total interest-bearing liabilities 1,729,521 2,352 0.27 1,628,345 5,660 0.70
Noninterest-bearing sources
Noninterest-bearing deposits 702,232 480,827
Other liabilities (6)
241,448 224,960
Shareholders’ equity 274,341 265,425
Total liabilities and shareholders’ equity $ 2,947,542 $ 2,599,557
Net interest spread 1.56 % 1.89 %
Impact of noninterest-bearing sources 0.08 0.20
Net interest income/yield on earning assets (7)
$ 20,651 1.64 % $ 23,250 2.09 %

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

~~(2)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.~~

~~(3)Includes non-U.S. consumer loans of $3.0 billion and $2.9 billion for the six months ended June 30, 2021 and 2020.~~

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

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

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

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


						~~Bank of America~~10

~~Business Segment Operations~~

~~Segment Description and Basis of Presentation~~

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

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

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

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

Key Performance Indicators

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.

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 June 30																					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	$	3,480		$	3,299		$	2,493		$	2,692		$	5,973		$	5,991		—	%	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	(7)			(4)			1,319			1,057			1,312			1,053			25		Card income	(7)			(4)			1,324			1,224			1,317			1,220			8
Service charges	Service charges	851			706			—			—			851			706			21		Service charges	935			837			—			—			935			837			12
All other income	All other income	21			62			29			40			50			102			(51)		All other income	56			84			37			8			93			92			1
Total noninterest income	Total noninterest income	865			764			1,348			1,097			2,213			1,861			19		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	4,345			4,063			3,841			3,789			8,186			7,852			4		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	47			154			(744)			2,870			(697)			3,024			(123)		Provision for credit losses	53			59			194			420			247			479			(48)
Noninterest expense	Noninterest expense	2,856			2,869			2,003			1,866			4,859			4,735			3		Noninterest expense	2,725			2,937			1,833			1,905			4,558			4,842			(6)
Income (loss) before income taxes		1,442			1,040			2,582			(947)			4,024			93			n/m
Income tax expense (benefit)		353			255			633			(232)			986			23			n/m
Net income (loss)		$	1,089		$	785		$	1,949		$	(715)		$	3,038		$	70		n/m
Income before income taxes																						Income before income taxes	1,937			1,166			2,096			1,552			4,033			2,718			48
Income tax expense																						Income tax expense	474			286			514			380			988			666			48
Net income																						Net income	$	1,463		$	880		$	1,582		$	1,172		$	3,045		$	2,052		48

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

Net interest yield	Net interest yield	1.44		%	1.66		%	3.60		%	3.42		%	2.37			2.85					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	36			26			30			(11)			32			1					Return on average allocated capital	48			29			24			18			31			21
Efficiency ratio	Efficiency ratio	65.73			70.62			52.16			49.25			59.36			60.31					Efficiency ratio	57.75			70.60			44.48			49.13			51.56			60.24

Balance Sheet	Balance Sheet																					Balance Sheet
		Three Months Ended June 30																					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	$	4,447		$	5,314		$	277,320		$	316,244		$	281,767		$	321,558		(12)	%	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)	968,491			801,391			277,742			316,622			1,012,364			845,236			20		Total earning assets (2)	991,186			849,190			277,491			314,079			1,034,471			896,867			15
Total assets (2)	Total assets (2)	1,005,237			837,367			283,148			320,978			1,054,516			885,568			19		Total assets (2)	1,026,811			886,406			283,631			316,107			1,076,236			936,112			15
Total deposits	Total deposits	972,016			804,418			7,056			6,282			979,072			810,700			21		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			—

(1)Estimated at the segment level only.

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

~~n/m - not meaningful~~


11 Bank of America


		Deposits						Consumer Lending						Total Consumer Banking									Deposits						Consumer Lending						Total Consumer Banking
		Six Months Ended June 30																					Nine 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	$	6,758		$	7,247		$	5,135		$	5,606		$	11,893		$	12,853		(7)	%	Net interest income	$	10,489		$	10,491		$	7,897		$	8,252		$	18,386		$	18,743		(2)	%
Noninterest income:	Noninterest income:																					Noninterest income:
Card income	Card income	(12)			(12)			2,513			2,175			2,501			2,163			16		Card income	(19)			(15)			3,837			3,399			3,818			3,384			13
Service charges	Service charges	1,681			1,700			1			1			1,682			1,701			(1)		Service charges	2,615			2,537			2			1			2,617			2,538			3
All other income	All other income	94			159			85			104			179			263			(32)		All other income	151			244			121			111			272			355			(23)
Total noninterest income	Total noninterest income	1,763			1,847			2,599			2,280			4,362			4,127			6		Total noninterest income	2,747			2,766			3,960			3,511			6,707			6,277			7
Total revenue, net of interest expense	Total revenue, net of interest expense	8,521			9,094			7,734			7,886			16,255			16,980			(4)		Total revenue, net of interest expense	13,236			13,257			11,857			11,763			25,093			25,020			—

Provision for credit losses	Provision for credit losses	121			269			(1,435)			5,013			(1,314)			5,282			(125)		Provision for credit losses	174			328			(1,241)			5,433			(1,067)			5,761			(119)
Noninterest expense	Noninterest expense	6,065			5,593			3,925			3,637			9,990			9,230			8		Noninterest expense	8,789			8,532			5,759			5,542			14,548			14,074			3
Income (loss) before income taxes		2,335			3,232			5,244			(764)			7,579			2,468			n/m
Income tax expense (benefit)		572			792			1,285			(187)			1,857			605			n/m
Net income (loss)		$	1,763		$	2,440		$	3,959		$	(577)		$	5,722		$	1,863		n/m
Income before income taxes																						Income before income taxes	4,273			4,397			7,339			788			11,612			5,185			124
Income tax expense																						Income tax expense	1,047			1,077			1,798			193			2,845			1,270			124
Net income																						Net income	$	3,226		$	3,320		$	5,541		$	595		$	8,767		$	3,915		124

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	1.45		%	1.90		%	3.67		%	3.59		%	2.44			3.19					Net interest yield	1.46		%	1.76		%	3.76		%	3.51		%	2.45			2.98
Return on average allocated capital	Return on average allocated capital	30			41			30			(4)			30			10					Return on average allocated capital	36			37			28			3			30			14
Efficiency ratio	Efficiency ratio	71.19			61.50			50.74			46.12			61.46			54.36					Efficiency ratio	66.40			64.36			48.57			47.11			57.97			56.25

Balance Sheet	Balance Sheet																					Balance Sheet
		Six Months Ended June 30																					Nine 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	$	4,527		$	5,374		$	281,777		$	313,878		$	286,304		$	319,252		(10)	%	Total loans and leases	$	4,479		$	5,264		$	280,165		$	313,820		$	284,644		$	319,084		(11)	%
Total earning assets (2)	Total earning assets (2)	940,469			766,660			282,206			314,375			984,891			809,436			22		Total earning assets (2)	957,561			794,371			280,617			314,275			1,001,590			838,792			19
Total assets (2)	Total assets (2)	978,170			800,742			286,908			319,279			1,027,294			848,422			21		Total assets (2)	994,562			829,505			285,813			318,214			1,043,787			877,866			19
Total deposits	Total deposits	944,819			767,848			6,938			5,837			951,757			773,685			23		Total deposits	961,266			796,591			7,006			6,411			968,272			803,002			21
Allocated capital	Allocated capital	12,000			12,000			26,500			26,500			38,500			38,500			—		Allocated capital	12,000			12,000			26,500			26,500			38,500			38,500			—

Period end	Period end	June 30 2021			December 31 2020			June 30 2021			December 31 2020			June 30 2021			December 31 2020			% Change		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	Total loans and leases	$	4,410		$	4,673		$	278,490		$	295,261		$	282,900		$	299,934		(6)	%	Total loans and leases	$	4,345		$	4,673		$	276,458		$	295,261		$	280,803		$	299,934		(6)	%
Total earning assets (2)	Total earning assets (2)	978,402			899,951			278,850			295,627			1,022,092			945,343			8		Total earning assets (2)	1,006,593			899,951			277,056			295,627			1,050,331			945,343			11
Total assets (2)	Total assets (2)	1,013,887			939,629			284,923			299,185			1,063,650			988,580			8		Total assets (2)	1,041,487			939,629			283,262			299,185			1,091,431			988,580			10
Total deposits	Total deposits	980,486			906,092			7,169			6,560			987,655			912,652			8		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 Banking ~~was~~increased $993 million to $3.0 billion ~~compared~~due to ~~$70~~higher revenue, lower noninterest expense and lower provision for credit losses. Net interest income increased $603 million ~~for the same period in 2020. The increase in net income was~~to $6.5 billion primarily due to ~~improvement in~~ the ~~provision for credit losses and~~benefit of higher revenue, partially offset by higher noninterest expense. Noninterest income increased $352 million to $2.2 billion driven by higher card income due to increased client activity and higher service charges, partially offset by lower other income due todeposit balances, the allocation of asset and liability management (ALM) ~~results.~~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 ~~improved $3.7 billion~~decreased $232 million to ~~a benefit of $697~~$247 million primarily due to ~~a reserve release, as the macroeconomic outlook improved and our~~ credit quality ~~remained strong.~~improvements. Noninterest expense ~~increased $124~~decreased $284 million to ~~$4.9~~$4.6 billion primarily driven by ~~the contribution to the Bank of America Foundation, cost of increased client activity and continued investments for business growth, including the merchant services platform, partially offset by~~ lower COVID-19 related ~~costs to support customers and employees.~~costs.

The return on average allocated capital was 3231 percent, up from ~~one~~21 percent, driven by higher net income. For more

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

~~Six-Month~~Nine-Month Comparison

Net income for Consumer Banking increased ~~$3.9~~$4.9 billion to ~~$5.7~~$8.8 billion primarily due to ~~improvement in the~~lower provision for credit losses, partially offset by ~~lower revenue and~~ higher noninterest expense. Net interest income decreased ~~$960~~$357 million to ~~$11.9~~$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.~~balances and the recognition of capitalized loan fees due to PPP loan forgiveness. Noninterest income increased ~~$235~~$430 million to ~~$4.4 billion driven by higher card income due to increased client activity, partially offset by lower other income due to the allocation of ALM results.~~

~~The provision for credit losses improved $6.6 billion to a benefit of $1.3~~$6.7 billion primarily ~~driven by~~due to the same factors as described in the three-month discussion.

The provision for credit losses improved $6.8 billion to a benefit of $1.1 billion primarily driven by reserve releases due to improvements in the macroeconomic outlook and credit quality. Noninterest expense increased ~~$760~~$474 million to ~~$10.0~~$14.5 billion primarily driven by an impairment charge ~~of $240 million~~ for real estate rationalization, the contribution to the Bank of America Foundation, cost of increased client activity and continued investments for business growth, including the merchant services platform, partially offset by lower COVID-19 related ~~costs to support customers and employees.~~costs.

The return on average allocated capital was 30 percent, up from 1014 percent, driven by higher net income.


						Bank of America 12

Deposits

Three-Month Comparison

Net income for Deposits increased ~~$304~~$583 million to ~~$1.1~~$1.5 billion primarily driven by higher ~~revenue.~~revenue and lower noninterest expense. Net interest income increased ~~$181~~$486 million to ~~$3.5~~$3.7 billion primarily due to the benefit of higher deposit ~~balances.~~balances and the allocation of ALM results. Noninterest income increased ~~$101~~$67 million to ~~$865~~$984 million primarily driven by higher service charges ~~partially offset by other income~~ due to ~~the allocation of ALM results.~~increased client activity.

~~The provision for credit losses~~Noninterest expense decreased ~~$107~~$212 million to ~~$47 million due to an improved macroeconomic outlook.~~$2.7 billion primarily driven by lower COVID-19 related costs.

Average deposits increased ~~$167.6~~$140.2 billion to ~~$972.0~~$993.6 billion primarily due to net inflows of ~~$94.4~~$74.7 billion in checking and time deposits and ~~$72.1~~$65.0 billion in traditional savings and money market savings driven by strong organic ~~growth and additional government stimulus measures.~~growth.

~~Six-Month~~Nine-Month Comparison

Net income for Deposits decreased ~~$677~~$94 million to ~~$1.8~~$3.2 billion ~~primarily driven by lower revenue and higher noninterest expense. Net interest income declined $489 million to $6.8 billion~~

primarily due to ~~lower interest rates,~~higher noninterest expense, partially offset by ~~the~~

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

The provision for credit losses decreased ~~$148~~$154 million to ~~$121~~$174 million due to an improved macroeconomic outlook. Noninterest expense increased ~~$472~~$257 million to ~~$6.1~~$8.8 billion primarily driven by an impairment charge for real estate rationalization, and the cost of increased client activity and continued investments for business growth, partially offset by lower COVID-19 related ~~costs to support customers and employees.~~costs.

Average deposits increased ~~$177.0~~$164.7 billion to ~~$944.8~~$961.3 billion primarily due to net inflows of ~~$103.4~~$93.8 billion in checking and time deposits and ~~$72.7~~$70.1 billion in traditional savings and money market savings driven by strong organic growth and ~~additional~~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 June 30		Six Months Ended June 30					Three Months Ended September 30		Nine Months Ended September 30
		2021	2020	2021		2020			2021	2020	2021		2020
Total deposit spreads (excludes noninterest costs) (1)	Total deposit spreads (excludes noninterest costs) (1)	1.71%	1.94%	1.72%		2.05%		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)			$	345,809	$	246,146	Consumer investment assets (in millions) (2)			$	353,280	$	266,733
Active digital banking users (units in thousands) (3)				40,512		39,294
Active mobile banking users (units in thousands) (4)				31,796		30,307
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			4,296		4,298		Financial centers			4,215		4,309
ATMs	ATMs			16,795		16,862		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 over the past ~~three months.~~90 days.

(4)~~Active mobile banking users represents~~Represents mobile active users over the past ~~three months.~~90 days.

Consumer investment assets increased ~~$99.7~~$86.5 billion to ~~$345.8~~$353.3 billion driven by market performance and client flows. Active mobile banking users increased approximately ~~one~~two million, reflecting continuing changes in our customers’ banking preferences. We had a net decrease of ~~two~~94 financial centers as we continue to optimize our consumer banking network.

Consumer Lending

Three-Month Comparison

Net income for Consumer Lending was ~~$1.9~~$1.6 billion, an increase of ~~$2.7 billion,~~$410 million, primarily due to ~~improvement in the~~higher revenue and lower provision for credit losses. Net interest income ~~decreased $199~~increased $117 million to ~~$2.5~~$2.8 billion primarily driven by the recognition of capitalized loan fees due to ~~lower~~PPP loan ~~balances.~~forgiveness. Noninterest income increased ~~$251~~$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 $3.6 billion~~decreased $226 million to ~~a benefit of $744~~$194 million primarily due to ~~a reserve release, as the macroeconomic outlook improved and our~~ credit quality ~~remained strong.~~improvements. Noninterest expense ~~increased $137~~decreased $72 million to ~~$2.0~~$1.8 billion primarily driven by ~~investments in the business.~~lower COVID-19 related costs.

Average loans decreased ~~$38.9~~$36.7 billion to ~~$277.3~~$277.0 billion primarily driven by a decline in residential mortgage, PPP and credit card loans.

~~cards.~~

~~Six-Month~~Nine-Month Comparison

Net income for Consumer Lending was ~~$4.0~~$5.5 billion, an increase of ~~$4.5~~$4.9 billion, primarily due to improvement in the provision for credit losses. Net interest income declined ~~$471~~$355 million to ~~$5.1~~$7.9 billion primarily due to lower interest rates and loan balances. Noninterest income increased ~~$319~~$449 million to ~~$2.6~~$4.0 billion primarily ~~driven by higher card income~~ due to ~~increased client activity.~~the same factor as described in the three-month discussion.

The provision for credit losses improved ~~$6.4~~$6.7 billion to a benefit of ~~$1.4~~$1.2 billion primarily driven by ~~the same factors as described~~reserve releases due to improvements in the ~~three-month discussion.~~macroeconomic outlook and credit quality. Noninterest expense increased ~~$288~~$217 million to ~~$3.9~~$5.8 billion primarily driven by ~~the same factors as described in the three-month discussion.~~continued investments for business growth, partially offset by lower COVID-19 related costs.

Average loans decreased ~~$32.1~~$33.7 billion to ~~$281.8~~$280.2 billion primarily driven by ~~the same factors as described~~a decline in ~~the three-month discussion.~~residential mortgage and credit card loans.


13 Bank 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 June 30						Six Months Ended June 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
Total credit card (1)	Total credit card (1)													Total credit card (1)
Gross interest yield (2)	Gross interest yield (2)	10.10		%	9.95		%	10.31		%	10.23		%	Gross interest yield (2)	10.10		%	10.16		%	10.24		%	10.21		%
Risk-adjusted margin (3)	Risk-adjusted margin (3)	9.76			8.49			9.53			8.20			Risk-adjusted margin (3)	10.70			9.66			9.93			8.66
New accounts (in thousands)	New accounts (in thousands)	931			449			1,605			1,504			New accounts (in thousands)	1,049			487			2,654			1,991
Purchase volumes	Purchase volumes	$	78,384		$	53,694		$	142,975		$	118,073		Purchase volumes	$	80,925		$	64,060		$	223,900		$	182,133
Debit card purchase volumes	Debit card purchase volumes	$	121,905		$	89,631		$	229,812		$	178,219		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 ~~six~~nine months ended ~~June~~September 30, 2021, the total risk-adjusted margin increased ~~127~~104 bps and ~~133~~127 bps primarily driven by lower net credit losses, higher net interest margin, and higher fee ~~income and lower net credit losses.~~income. During the three and ~~six~~nine months ended ~~June~~September 30, 2021, total credit card purchase volumes increased ~~$24.7~~$16.9 billion to ~~$78.4~~$80.9 billion, and ~~$24.9~~$41.8 billion to ~~$143.0~~$223.9 billion as spending continued to ~~recover, with~~

recover, with improvements across all categories, ~~with growth~~ primarily in retail and travel. During the three and ~~six~~nine months ended ~~June~~September 30, 2021, debit card purchase volumes increased ~~$32.3~~$17.7 billion to ~~$121.9~~$119.7 billion, and ~~$51.6~~$69.3 billion to ~~$229.8~~$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 June 30				Six Months Ended June 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
Consumer Banking:	Consumer Banking:									Consumer Banking:
First mortgage	First mortgage	$	11,502	$	15,049	$	20,684	$	27,930	First mortgage	$	12,510	$	7,298	$	33,194	$	35,228
Home equity	Home equity	907		3,176		1,317		5,817		Home equity	1,262		738		2,579		6,555
Total (2):	Total (2):									Total (2):
First mortgage	First mortgage	$	20,266	$	23,124	$	35,499	$	42,062	First mortgage	$	21,232	$	13,360	$	56,731	$	55,422
Home equity	Home equity	1,166		3,683		1,669		6,707		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 Consumer Banking and the total Corporation ~~decreased $3.5~~increased $5.2 billion and ~~$2.9~~$7.9 billion during the three months ended ~~June 30, 2021 and $7.2 billion and $6.6 billion during the six months ended June~~September 30, 2021 primarily due to higher demand driven by lower interest rates. During the nine months ended September 30, 2021, Consumer Banking decreased $2.0 billion and the total Corporation increased $1.3 billion, primarily driven by changes in demand.

Home equity production in Consumer Banking and for the total Corporation ~~decreased $2.3 billion~~increased $524 million and ~~$2.5 billion~~$539 million during the three months ended ~~June~~September 30, 2021 primarily driven by higher demand. Consumer Banking and the total Corporationdecreased $4.0 billion and $4.5 billion ~~and $5.0 billion~~ during the ~~six~~nine months ended ~~June~~September 30, 2021, primarily driven by lower ~~demand.~~demand due to increased borrower liquidity.


						Bank of America 14

Global Wealth & Investment Management


		Three Months Ended June 30								Six Months Ended June 30									Three Months Ended September 30								Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)	2021			2020			% Change		2021			2020			% Change		(Dollars in millions)	2021			2020			% Change		2021			2020			% Change
Net interest income	Net interest income	$	1,354		$	1,378		(2)	%	$	2,685		$	2,949		(9)	%	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	3,537			2,854			24		6,928			5,976			16		Investment and brokerage services	3,683			3,105			19		10,610			9,081			17
All other income	All other income	174			193			(10)		423			436			(3)		All other income	176			204			(14)		599			640			(6)
Total noninterest income	Total noninterest income	3,711			3,047			22		7,351			6,412			15		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	5,065			4,425			14		10,036			9,361			7		Total revenue, net of interest expense	5,310			4,546			17		15,346			13,907			10

Provision for credit losses	Provision for credit losses	(62)			136			(146)		(127)			325			(139)		Provision for credit losses	(58)			24			n/m		(185)			349			n/m
Noninterest expense	Noninterest expense	3,814			3,464			10		7,682			7,064			9		Noninterest expense	3,745			3,533			6		11,425			10,596			8
Income before income taxes	Income before income taxes	1,313			825			59		2,481			1,972			26		Income before income taxes	1,623			989			64		4,106			2,962			39
Income tax expense	Income tax expense	322			202			59		608			483			26		Income tax expense	398			242			64		1,006			726			39
Net income	Net income	$	991		$	623		59		$	1,873		$	1,489		26		Net income	$	1,225		$	747		64		$	3,100		$	2,236		39

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

Net interest yield	Net interest yield	1.48			1.76					1.49			1.96					Net interest yield	1.54			1.53					1.51			1.81
Return on average allocated capital	Return on average allocated capital	24			17					23			20					Return on average allocated capital	30			20					25			20

Efficiency ratio	Efficiency ratio	75.29			78.26					76.54			75.46					Efficiency ratio	70.51			77.70					74.45			76.19

Balance Sheet	Balance Sheet																	Balance Sheet

		Three Months Ended June 30								Six Months Ended June 30									Three Months Ended September 30								Nine Months Ended September 30
Average	Average	2021			2020			% Change		2021			2020			% Change		Average	2021			2020			% Change		2021			2020			% Change
Total loans and leases	Total loans and leases	$	193,988		$	182,150		6	%	$	191,257		$	180,395		6	%	Total loans and leases	$	199,664		$	185,587		8	%	$	194,090		$	182,138		7	%
Total earning assets	Total earning assets	367,778			315,258			17		363,960			303,089			20		Total earning assets	373,691			321,410			16		367,239			309,240			19
Total assets	Total assets	380,315			327,594			16		376,476			315,383			19		Total assets	386,346			333,794			16		379,802			321,565			18
Total deposits	Total deposits	333,487			287,109			16		329,948			275,260			20		Total deposits	339,357			291,845			16		333,119			280,828			19
Allocated capital	Allocated capital	16,500			15,000			10		16,500			15,000			10		Allocated capital	16,500			15,000			10		16,500			15,000			10

										June 30			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									$	198,361		$	188,562		5	%	Total loans and leases									$	202,268		$	188,562		7	%
Total earning assets	Total earning assets									365,496			356,873			2		Total earning assets									380,857			356,873			7
Total assets	Total assets									378,220			369,736			2		Total assets									393,708			369,736			6
Total deposits	Total deposits									330,624			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 increased ~~$368~~$478 million to ~~$991 million~~$1.2 billion primarily driven by higher revenue, ~~and improvement in the provision for credit losses,~~ partially offset by higher noninterest expense. The operating margin was 2631 percent compared to 1922 percent a year ago.

Net interest income ~~decreased $24~~increased $214 million to ~~$1.4~~$1.5 billion primarily due to ~~lower interest rates, partially offset by~~ the ~~benefit~~benefits of ~~strong~~loan and deposit ~~and loan~~ growth.

Noninterest income, which primarily includes investment and brokerage services income, increased ~~$664~~$550 million to ~~$3.7~~$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 ~~$198~~$82 million to a benefit of ~~$62~~$58 million primarily due to ~~an improved macroeconomic outlook.~~credit quality improvements. Noninterest expense increased ~~$350~~$212 million to ~~$3.8~~$3.7 billion primarily driven by higher revenue-related incentives.

The return on average allocated capital was 2430 percent, up from 1720 percent, due to ~~an increase in~~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 ~~$11.8~~$14.1 billion to ~~$194.0~~$199.7 billion primarily driven by securities-based lending, ~~and~~ custom ~~lending.~~lending and

residential mortgage. Average deposits increased ~~$46.4~~$47.5 billion to ~~$333.5~~$339.4 billion primarily driven by inflows from new accounts and client responses to market volatility.

MLGWM revenue of ~~$4.3~~$4.5 billion increased 1819 percent primarily driven by the benefits of higher market valuations and positive AUM flows.

Bank of America Private Bank revenue of ~~$805~~$839 million increased ~~one~~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.

~~Six-Month~~Nine-Month Comparison

Net income for GWIM increased ~~$384~~$864 million to ~~$1.9~~$3.1 billion due to the same factors as described in the three-month discussion. The operating margin was 2527 percent compared to 21 percent a year ago.

Net interest income decreased ~~$264~~$49 million to ~~$2.7~~$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.

~~Noninterest income, which primarily includes investment and brokerage services income, increased $939~~The provision for credit losses improved $534 million to ~~$7.4~~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 ~~factors~~factor as described in the three-month discussion.


15 Bank of America

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

~~The~~ return on average allocated capital was 2325 percent, up from 20 percent, ~~due to higher net income, partially offset by an increase in allocated capital.~~

~~Average loans increased $10.9 billion to $191.3 billion primarily~~ 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 ~~$54.7~~$52.3 billion to

~~$329.9 billion~~ $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 ~~$8.4~~$12.9 billion increased 1013 percent primarily driven by the benefits of higher market valuations, ~~and~~

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

Bank of America Private Bank revenue of ~~$1.6~~$2.4 billion decreased ~~four~~one percent primarily driven by the realignment of certain business results to MLGWM and lower interest rates, partially offset by the benefits of higher market valuations and AUM flows.


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

		Three Months Ended June 30				Six Months Ended June 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
Revenue by Business	Revenue by Business									Revenue by Business
Merrill Lynch Global Wealth Management	Merrill Lynch Global Wealth Management	$	4,260	$	3,625	$	8,445	$	7,698	Merrill Lynch Global Wealth Management	$	4,471	$	3,748	$	12,916	$	11,446
Bank of America Private Bank	Bank of America Private Bank	805		800		1,591		1,663		Bank of America Private Bank	839		798		2,430		2,461

Total revenue, net of interest expense	Total revenue, net of interest expense	$	5,065	$	4,425	$	10,036	$	9,361	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					$	3,073,252	$	2,449,305	Merrill Lynch Global Wealth Management					$	3,108,358	$	2,570,252
Bank of America Private Bank	Bank of America Private Bank					579,562		478,521		Bank of America Private Bank					584,475		496,369

Total client balances	Total client balances					$	3,652,814	$	2,927,826	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					$	1,549,069	$	1,219,748	Assets under management					$	1,578,630	$	1,286,145
Brokerage and other assets	Brokerage and other assets					1,619,246		1,282,044		Brokerage and other assets					1,612,472		1,344,538

Deposits	Deposits					330,624		291,740		Deposits					345,590		295,893
Loans and leases (1)	Loans and leases (1)					201,154		187,004		Loans and leases (1)					205,055		189,952
Less: Managed deposits in assets under management	Less: Managed deposits in assets under management					(47,279)		(52,710)		Less: Managed deposits in assets under management					(48,914)		(49,907)
Total client balances	Total client balances					$	3,652,814	$	2,927,826	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	$	1,467,487	$	1,092,482	$	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	11,714		3,573		29,922		10,608		Net client flows	14,776		1,385		44,698		11,993
Market valuation/other	Market valuation/other	69,868		123,693		110,682		(66,415)		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	$	1,549,069	$	1,219,748	$	1,549,069	$	1,219,748	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)					19,385		20,622		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 ~~$725.0~~$626.2 billion, or 2520 percent, to $3.7 trillion at ~~June~~September 30, 2021 compared to ~~June~~September 30, 2020. The increase in client balances was primarily due to higher market valuations and positive client flows.


						Bank of America 16

Global Banking


		Three Months Ended June 30								Six Months Ended June 30									Three Months Ended September 30								Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)	2021			2020			% Change		2021			2020			% Change		(Dollars in millions)	2021			2020			% Change		2021			2020			% Change
Net interest income	Net interest income	$	1,984		$	2,363		(16)	%	$	3,964		$	4,975		(20)	%	Net interest income	$	2,186		$	2,028		8	%	$	6,150		$	7,003		(12)	%
Noninterest income:	Noninterest income:																	Noninterest income:
Service charges	Service charges	900			738			22		1,747			1,533			14		Service charges	890			846			5		2,637			2,379			11
Investment banking fees	Investment banking fees	1,173			1,181			(1)		2,345			1,942			21		Investment banking fees	1,297			970			34		3,642			2,912			25
All other income	All other income	1,032			809			28		1,666			1,241			34		All other income	871			673			29		2,538			1,914			33
Total noninterest income	Total noninterest income	3,105			2,728			14		5,758			4,716			22		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	5,089			5,091			—		9,722			9,691			—		Total revenue, net of interest expense	5,244			4,517			16		14,967			14,208			5

Provision for credit losses	Provision for credit losses	(831)			1,873			(144)		(1,957)			3,966			(149)		Provision for credit losses	(781)			883			n/m		(2,738)			4,849			n/m
Noninterest expense	Noninterest expense	2,599			2,222			17		5,380			4,540			19		Noninterest expense	2,534			2,365			7		7,915			6,910			15
Income before income taxes	Income before income taxes	3,321			996			n/m		6,299			1,185			n/m		Income before income taxes	3,491			1,269			n/m		9,790			2,449			n/m
Income tax expense	Income tax expense	897			269			n/m		1,701			320			n/m		Income tax expense	942			343			n/m		2,643			661			n/m
Net income	Net income	$	2,424		$	727		n/m		$	4,598		$	865		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		%			27.0		%	27.0		%			Effective tax rate	27.0		%	27.0		%			27.0		%	27.0		%

Net interest yield	Net interest yield	1.49			1.82					1.52			2.15					Net interest yield	1.55			1.61					1.53			1.96
Return on average allocated capital	Return on average allocated capital	23			7					22			4					Return on average allocated capital	24			9					22			6
Efficiency ratio	Efficiency ratio	51.07			43.65					55.34			46.86					Efficiency ratio	48.31			52.36					52.88			48.63

Balance Sheet	Balance Sheet																	Balance Sheet

		Three Months Ended June 30								Six Months Ended June 30									Three Months Ended September 30								Nine Months Ended September 30
Average	Average	2021			2020			% Change		2021			2020			% Change		Average	2021			2020			% Change		2021			2020			% Change
Total loans and leases	Total loans and leases	$	325,110		$	423,625		(23)	%	$	327,595		$	405,054		(19)	%	Total loans and leases	$	324,736		$	373,118		(13)	%	$	326,632		$	394,331		(17)	%
Total earning assets	Total earning assets	534,680			521,930			2		525,332			465,491			13		Total earning assets	560,181			501,572			12		537,037			477,606			12
Total assets	Total assets	595,498			578,106			3		585,875			522,016			12		Total assets	621,699			557,889			11		597,947			534,061			12
Total deposits	Total deposits	506,618			493,918			3		496,880			438,145			13		Total deposits	534,166			471,288			13		509,445			449,273			13
Allocated capital	Allocated capital	42,500			42,500			—		42,500			42,500			—		Allocated capital	42,500			42,500			—		42,500			42,500			—

Period end	Period end									June 30 2021			December 31 2020			% Change		Period end									September 30 2021			December 31 2020			% Change
Total loans and leases	Total loans and leases									$	323,256		$	339,649		(5)	%	Total loans and leases									$	328,893		$	339,649		(3)	%
Total earning assets	Total earning assets									547,278			522,650			5		Total earning assets									561,239			522,650			7
Total assets	Total assets									607,969			580,561			5		Total assets									623,640			580,561			7
Total deposits	Total deposits									520,026			493,748			5		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 ~~$1.7~~$1.6 billion to ~~$2.4~~$2.5 billion ~~primarily~~ driven by improvement in the provision for credit losses and higher revenue, partially offset by higher noninterest expense.

Net interest income ~~decreased $379~~increased $158 million to ~~$2.0~~$2.2 billion primarily ~~driven~~due to the allocation of ALM results and the benefit of higher deposit balances, partially offset by ~~the impact of lower~~a decline in loan balances and lower deposit ~~spreads, partially offset by higher credit spreads and the impact of higher deposit balances.~~spreads.

Noninterest income increased ~~$377~~$569 million to $3.1 billion ~~driven by~~primarily due to higher ~~leasing-related revenue~~investment banking fees and ~~treasury and credit service charges as well as the addition of merchant services revenue, partially offset by lower valuation-driven adjustments on the fair value loan portfolio and leveraged loans.~~higher income from ESG investment activities.

The provision for credit losses improved ~~$2.7~~$1.7 billion to a benefit of ~~$831~~$781 million primarily driven by a reserve release due to ~~an improved macroeconomic outlook.~~credit quality improvements, whereas the reserve build in the prior-year period was driven by COVID-19 impacted industries, such as travel and entertainment.

Noninterest expense increased ~~$377~~$169 million primarily due to higher ~~operating costs and~~ compensation and benefits expense, as well as ~~the addition of merchant services~~higher operating costs.

The return on average allocated capital was 2324 percent, up from ~~seven~~nine percent, due to higher net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 11.

~~Six-Month~~Nine-Month Comparison

Net income for Global Banking increased ~~$3.7~~$5.4 billion to ~~$4.6~~$7.1 billion primarily due to the same factors as described in the three-month discussion.

Net interest income decreased ~~$1.0 billion~~$853 million to ~~$4.0~~$6.2 billion primarily due to the ~~same factors as described in~~impact of lower loan balances, lower deposit spreads and the ~~three-month discussion.~~allocation of ALM results, partially offset by the benefits of higher deposit balances and credit spreads.

Noninterest income increased ~~$1.0~~$1.6 billion to ~~$5.8~~$8.8 billion driven by higher investment banking fees, ~~treasury and credit service charges and~~ higher valuation-driven adjustments on the fair value loan portfolio, debt securities and leveraged loans, as well as ~~the addition of merchant services revenue.~~higher treasury and credit service charges.

The provision for credit losses improved ~~$5.9~~$7.6 billion to a benefit of ~~$2.0~~$2.7 billion primarily driven by a reserve release due to ~~an improved~~improvements in the macroeconomic ~~outlook.~~

outlook and credit quality.


17 Bank of America

Noninterest expense increased ~~$840 million~~$1.0 billion to ~~$5.4~~$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, including the addition of merchant services~~ costs.

The return on average allocated capital was 22 percent, up from ~~four~~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					Global Corporate Banking				Global Commercial Banking				Business Banking				Total
		Three Months Ended June 30																	Three 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	$	989	$	916	$	867	$	881	$	56	$	66	$	1,912	$	1,863	Business Lending	$	886	$	791	$	924	$	953	$	55	$	59	$	1,865	$	1,803
Global Transaction Services	Global Transaction Services	734		785		771		809		215		217		1,720		1,811		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	$	1,723	$	1,701	$	1,638	$	1,690	$	271	$	283	$	3,632	$	3,674	Total revenue, net of interest expense	$	1,707	$	1,449	$	1,743	$	1,698	$	282	$	268	$	3,732	$	3,415

Balance Sheet	Balance Sheet																	Balance Sheet
Average	Average																	Average
Total loans and leases	Total loans and leases	$	148,163	$	201,852	$	156,526	$	200,463	$	12,703	$	15,018	$	317,392	$	417,333	Total loans and leases	$	147,906	$	174,235	$	159,986	$	175,536	$	12,635	$	13,972	$	320,527	$	363,743
Total deposits	Total deposits	244,552		236,421		205,491		209,263		55,769		48,231		505,812		493,915		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
		Six Months Ended June 30																	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	$	1,643	$	1,867	$	1,765	$	1,862	$	111	$	148	$	3,519	$	3,877	Business Lending	$	2,529	$	2,658	$	2,689	$	2,815	$	166	$	207	$	5,384	$	5,680
Global Transaction Services	Global Transaction Services	1,424		1,656		1,515		1,687		426		473		3,365		3,816		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	$	3,067	$	3,523	$	3,280	$	3,549	$	537	$	621	$	6,884	$	7,693	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	$	148,200	$	192,278	$	158,407	$	194,522	$	12,851	$	15,100	$	319,458	$	401,900	Total loans and leases	$	148,101	$	186,220	$	158,939	$	188,147	$	12,778	$	14,721	$	319,818	$	389,088
Total deposits	Total deposits	237,112		212,170		204,573		181,572		54,538		44,401		496,223		438,143		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	$	148,210	$	182,374	$	157,248	$	183,869	$	12,678	$	14,378	$	318,136	$	380,621	Total loans and leases	$	150,797	$	165,498	$	162,371	$	168,385	$	12,640	$	13,665	$	325,808	$	347,548
Total deposits	Total deposits	255,710		238,862		207,003		210,853		56,285		51,195		518,998		500,910		Total deposits	255,981		212,564		220,738		200,591		57,766		51,889		534,485		465,044

Business Lending revenue increased ~~$49~~$62 million for the three months ended ~~June~~September 30, 2021 compared to the same period in 2020 primarily due to higher income from ESG investment activities and credit spreads, ~~and leasing equity investment income,~~ partially offset by the impact of lower loan balances. Business Lending revenue decreased ~~$358~~$296 million for the ~~six~~nine months ended ~~June~~September 30, 2021 primarily due to the impact of lower loan balances and interest rates, partially offset by higher credit spreads.

Global Transaction Services revenue ~~decreased $91 million and $451~~increased $255 million for the three ~~and six~~ months ended ~~June~~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 $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 2412 percent and 2118 percent for the three and ~~six~~nine months ended ~~June~~September 30, 2021 driven by client ~~paydowns.~~paydowns and lower demand.

Average deposits increased ~~two percent and~~ 13 percent for both the three and ~~six~~nine months ended ~~June~~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 presents total Corporation investment banking fees and the portion attributable to Global Banking.


						Bank of America 18


Investment Banking Fees	Investment Banking Fees																	Investment Banking Fees

		Global Banking				Total Corporation				Global Banking				Total Corporation					Global Banking				Total Corporation				Global Banking				Total Corporation
		Three Months Ended June 30								Six Months Ended June 30									Three Months Ended September 30								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
Products	Products																	Products
Advisory	Advisory	$	376	$	345	$	407	$	406	$	733	$	592	$	807	$	675	Advisory	$	608	$	356	$	654	$	397	$	1,341	$	948	$	1,461	$	1,072
Debt issuance	Debt issuance	482		503		1,110		1,058		905		927		2,098		1,985		Debt issuance	401		320		933		740		1,306		1,247		3,031		2,725
Equity issuance	Equity issuance	315		333		702		740		707		423		1,602		1,023		Equity issuance	288		294		637		664		995		717		2,239		1,687
Gross investment banking fees	Gross investment banking fees	1,173		1,181		2,219		2,204		2,345		1,942		4,507		3,683		Gross investment banking fees	1,297		970		2,224		1,801		3,642		2,912		6,731		5,484
Self-led deals	Self-led deals	(44)		(18)		(97)		(45)		(61)		(61)		(139)		(136)		Self-led deals	(23)		(13)		(56)		(32)		(85)		(73)		(195)		(168)
Total investment banking fees	Total investment banking fees	$	1,129	$	1,163	$	2,122	$	2,159	$	2,284	$	1,881	$	4,368	$	3,547	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, which are primarily included within Global Banking and Global Markets, were ~~$2.1~~$2.2 billion and ~~$4.4~~$6.5 billion for the three and ~~six~~nine months ended ~~June~~September 30, 2021. The three-month period ~~decreased two~~increased 23 percent compared to the same period in ~~2020.~~2020 primarily driven by higher advisory and debt issuance fees. The ~~six-month~~nine-month period increased 23 percent primarily driven by higher equity issuance fees as well as advisory and debt issuance fees.

Global Markets


		Three Months Ended June 30								Six Months Ended June 30									Three Months Ended September 30								Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)	2021			2020			% Change		2021			2020			% Change		(Dollars in millions)	2021			2020			% Change		2021			2020			% Change
Net interest income	Net interest income	$	991		$	1,297		(24)	%	$	1,981		$	2,449		(19)	%	Net interest income	$	1,000		$	1,108		(10)	%	$	2,980		$	3,558		(16)	%
Noninterest income:	Noninterest income:																	Noninterest income:
Investment and brokerage services	Investment and brokerage services	473			480			(1)		1,033			1,048			(1)		Investment and brokerage services	470			439			7		1,504			1,487			1
Investment banking fees	Investment banking fees	959			939			2		1,940			1,542			26		Investment banking fees	844			738			14		2,784			2,280			22
Market making and similar activities	Market making and similar activities	1,964			2,360			(17)		5,434			5,334			2		Market making and similar activities	2,014			1,725			17		7,448			7,059			6
All other income	All other income	333			274			22		530			202			n/m		All other income	191			273			(30)		721			475			52
Total noninterest income	Total noninterest income	3,729			4,053			(8)		8,937			8,126			10		Total noninterest income	3,519			3,175			11		12,457			11,301			10
Total revenue, net of interest expense	Total revenue, net of interest expense	4,720			5,350			(12)		10,918			10,575			3		Total revenue, net of interest expense	4,519			4,283			6		15,437			14,859			4

Provision for credit losses	Provision for credit losses	22			105			(79)		17			212			(92)		Provision for credit losses	16			21			(24)		33			233			(86)
Noninterest expense	Noninterest expense	3,471			2,684			29		6,898			5,498			25		Noninterest expense	3,252			3,102			5		10,150			8,598			18
Income before income taxes	Income before income taxes	1,227			2,561			(52)		4,003			4,865			(18)		Income before income taxes	1,251			1,160			8		5,254			6,028			(13)
Income tax expense	Income tax expense	319			666			(52)		1,041			1,265			(18)		Income tax expense	325			302			8		1,366			1,567			(13)
Net income	Net income	$	908		$	1,895		(52)		$	2,962		$	3,600		(18)		Net income	$	926		$	858		8		$	3,888		$	4,461		(13)

Effective tax rate	Effective tax rate	26.0		%	26.0		%			26.0		%	26.0		%			Effective tax rate	26.0		%	26.0		%			26.0		%	26.0		%

Return on average allocated capital	Return on average allocated capital	10			21					16			20					Return on average allocated capital	10			9					14			17
Efficiency ratio	Efficiency ratio	73.55			50.17					63.19			51.99					Efficiency ratio	71.94			72.42					65.75			57.86

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

Average	Average																	Average
Trading-related assets:	Trading-related assets:																	Trading-related assets:
Trading account securities	Trading account securities	$	304,760		$	216,157		41	%	$	285,081		$	236,704		20	%	Trading account securities	$	304,133		$	251,735		21	%	$	291,500		$	241,753		21	%
Reverse repurchases	Reverse repurchases	116,424			104,883			11		108,201			110,291			(2)		Reverse repurchases	117,486			100,395			17		111,330			106,968			4
Securities borrowed	Securities borrowed	101,144			96,448			5		95,231			89,860			6		Securities borrowed	101,086			86,508			17		97,205			88,734			10
Derivative assets	Derivative assets	44,514			49,502			(10)		45,983			48,199			(5)		Derivative assets	41,010			46,676			(12)		44,308			47,687			(7)
Total trading-related assets	Total trading-related assets	566,842			466,990			21		534,496			485,054			10		Total trading-related assets	563,715			485,314			16		544,343			485,142			12
Total loans and leases	Total loans and leases	87,826			74,131			18		82,649			72,896			13		Total loans and leases	97,148			72,319			34		87,535			72,702			20
Total earning assets	Total earning assets	531,000			478,648			11		513,261			490,132			5		Total earning assets	557,333			476,182			17		528,113			485,448			9
Total assets	Total assets	797,558			663,072			20		760,616			688,062			11		Total assets	804,938			680,983			18		775,552			685,685			13
Total deposits	Total deposits	55,584			45,083			23		54,723			39,203			40		Total deposits	54,650			56,475			(3)		54,699			45,002			22
Allocated capital	Allocated capital	38,000			36,000			6		38,000			36,000			6		Allocated capital	38,000			36,000			6		38,000			36,000			6

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

Total trading-related assets	Total trading-related assets									$	542,614		$	421,698		29	%	Total trading-related assets									$	536,125		$	421,698		27	%
Total loans and leases	Total loans and leases									96,105			78,415			23		Total loans and leases									98,892			78,415			26
Total earning assets	Total earning assets									527,983			447,350			18		Total earning assets									526,585			447,350			18
Total assets	Total assets									773,714			616,609			25		Total assets									776,929			616,609			26
Total deposits	Total deposits									57,297			53,925			6		Total deposits									54,941			53,925			2

~~n/m = not meaningful~~


19 Bank of America

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 7.

Three-Month Comparison

Net income for Global Markets ~~decreased $987~~increased $68 million to ~~$908 million.~~$926 million primarily due to higher revenue (net of lower net DVA losses), partially offset by higher noninterest expense. Net DVA losses were ~~$34~~$20 million compared to ~~losses of $261~~$116 million in the prior-year period. Excluding net DVA, net income decreased ~~$1.2 billion~~$5 million to ~~$934~~$941 million. ~~These decreases were~~The decrease was primarily driven by higher noninterest expense, ~~and lower revenue, partially~~largely offset by ~~lower provision for credit losses.~~higher revenue.

Revenue ~~decreased $630~~increased $236 million to ~~$4.7~~$4.5 billion primarily driven by ~~lower~~higher sales and trading ~~revenue.~~revenue and investment banking income. Sales and trading revenue ~~decreased $590~~increased $390 million, and excluding net DVA, ~~decreased $817~~increased $294 million. These ~~decreases~~increases were driven by higher revenue in Equities, partially offset by lower revenue in ~~Fixed Income, Currencies and Commodities (FICC), partially offset by higher revenue in Equities.~~

~~The provision for credit losses decreased $83 million primarily due to an improved macroeconomic outlook.~~FICC.

Noninterest expense increased ~~$787~~$150 million to ~~$3.5~~$3.3 billion driven by higher ~~costs associated with processing transactional card claims related to state unemployment benefits and activity-related~~activity-based expenses for sales and trading.

Average total assets increased ~~$134.5~~$124.0 billion to ~~$797.6~~$804.9 billion driven by higher client balances in ~~Global~~ Equities, and higher levels of inventory and loan growth in FICC.

The return on average allocated capital was 10 percent, ~~down~~up from 219 percent, reflecting ~~lower~~higher net income, ~~and~~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.

~~Six-Month~~Nine-Month Comparison

Net income for Global Markets decreased ~~$638~~$573 million to ~~$3.0~~$3.9 billion. Net DVA losses were ~~$36~~$56 million compared to ~~gains of $39~~$77 million in the prior-year period. Excluding net DVA, net income decreased ~~$581~~$589 million to ~~$3.0~~$3.9 billion. These decreases were primarily driven by higher noninterest expense.

Revenue increased ~~$343~~$578 million to ~~$10.9~~$15.4 billion primarily driven by higher investment banking ~~income.~~income and sales and trading revenue. Sales and trading revenue ~~decreased $147~~increased $243 million, and excluding net DVA, ~~decreased $72~~increased $222 million driven by higher revenue in Equities, partially offset by a decline in FICC ~~revenue, partially offset by higher revenue in Equities.~~revenue. Noninterest expense increased ~~$1.4~~$1.6 billion to ~~$6.9~~$10.2 billion, primarily driven by ~~the same factors as described in the three-month discussion, as well as~~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 ~~$195~~$200 million primarily due to an improved macroeconomic outlook.

Average total assets increased ~~$72.6~~$89.9 billion to ~~$760.6~~$775.6 billion, primarily due to higher client balances in ~~Global Equities.~~Equities and higher levels of inventory and loan growth in FICC. Period-end total assets increased ~~$157.1~~$160.3 billion since December 31, 2020 to ~~$773.7~~$776.9 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 1614 percent, down from 2017 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 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 June 30				Six Months Ended June 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
Sales and trading revenue	Sales and trading revenue									Sales and trading revenue
Fixed income, currencies and commodities	Fixed income, currencies and commodities	$	1,937	$	2,941	$	5,179	$	5,886	Fixed income, currencies and commodities	$	2,009	$	2,019	$	7,188	$	7,905
Equities	Equities	1,624		1,210		3,460		2,900		Equities	1,605		1,205		5,065		4,105
Total sales and trading revenue	Total sales and trading revenue	$	3,561	$	4,151	$	8,639	$	8,786	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	$	1,965	$	3,186	$	5,216	$	5,857	Fixed income, currencies and commodities	$	2,025	$	2,126	$	7,241	$	7,983
Equities	Equities	1,630		1,226		3,459		2,890		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	$	3,595	$	4,412	$	8,675	$	8,747	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 ~~$59~~$99 million and ~~$132~~$232 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to $38 million and ~~$100~~$138 million for the same periods in 2020.

(3) Includes Global Banking sales and trading revenue of ~~$170~~$138 million and ~~$274~~$412 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$65~~$85 million and ~~$294~~$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 ~~$28~~$16 million and ~~$37~~$53 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to losses of ~~$245~~$107 million and ~~gains of $29~~$78 million for the same periods in 2020. Equities net DVA losses were $6$4 million and ~~gains of $1~~$3 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to losses of ~~$16~~$9 million and gains of ~~$10~~$1 million for the same periods in 2020.


						Bank of America 20

Three-Month Comparison

FICC revenue decreased ~~$1.2 billion as the prior year benefited from~~$101 million driven by a ~~robust~~weaker trading environment for ~~macro~~mortgage and interest rate products, ~~and market recoveries from the end of the first quarter of 2020, whereas markets were more benign~~partially offset by improved client flows in ~~the current-year period and weak for agency mortgages.~~foreign exchange. Equities revenue increased ~~$404~~$395 million driven by growth in client financing activities, a stronger trading performance and increased client ~~activity in derivatives and Asia.~~activity.

~~Six-Month~~Nine-Month Comparison

FICC revenue decreased ~~$641~~$742 million driven by reduced activity in macro products, partially offset by stronger performance in credit and municipal products, and gains in commodities (partially offset by related losses in another segment) from market volatility driven by a weather-related event. Equities revenue increased ~~$569~~$964 million ~~driven by stronger trading performance and increased client activity.~~due to the same factors as described in the three-month discussion.

All Other


		Three Months Ended June 30						Six Months Ended June 30							Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)	2021		2020		% Change		2021		2020		% Change		(Dollars in millions)	2021		2020		% Change		2021		2020		% Change
Net interest income	Net interest income	$	41	$	(53)	n/m		$	128	$	24	n/m		Net interest income	$	65	$	(20)	n/m		$	193	$	3	n/m

Noninterest income (loss)	Noninterest income (loss)	(1,525)		(211)		n/m		(2,551)		(1,266)		102	%	Noninterest income (loss)	(1,109)		(915)		21	%	(3,661)		(2,182)		68	%
Total revenue, net of interest expense	Total revenue, net of interest expense	(1,484)		(264)		n/m		(2,423)		(1,242)		95		Total revenue, net of interest expense	(1,044)		(935)		12		(3,468)		(2,179)		59

Provision for credit losses	Provision for credit losses	(53)		(21)		n/m		(100)		93		n/m		Provision for credit losses	(48)		(18)		n/m		(148)		75		n/m

Noninterest expense	Noninterest expense	302		305		(1)	%	610		553		10		Noninterest expense	351		559		(37)		962		1,108		(13)
Loss before income taxes	Loss before income taxes	(1,733)		(548)		n/m		(2,933)		(1,888)		55		Loss before income taxes	(1,347)		(1,476)		(9)		(4,282)		(3,362)		27
Income tax benefit	Income tax benefit	(3,596)		(766)		n/m		(5,052)		(1,614)		n/m		Income tax benefit	(1,293)		(1,774)		(27)		(6,345)		(3,386)		87
Net income (loss)	Net income (loss)	$	1,863	$	218	n/m		$	2,119	$	(274)	n/m		Net income (loss)	$	(54)	$	298	(118)		$	2,063	$	24	n/m

Balance Sheet	Balance Sheet													Balance Sheet

		Three Months Ended June 30						Six Months Ended June 30							Three Months Ended September 30						Nine Months Ended September 30

Average	Average	2021		2020		% Change		2021		2020		% Change		Average	2021		2020		% Change		2021		2020		% Change
Total loans and leases	Total loans and leases	$	19,209	$	29,923	(36)	%	$	20,007	$	33,238	(40)	%	Total loans and leases	$	17,581	$	24,243	(27)	%	$	19,190	$	30,218	(36)	%
Total assets (1)	Total assets (1)	187,226		249,846		(25)		197,281		225,674		(13)		Total assets (1)	187,233		230,906		(19)		193,896		227,430		(15)
Total deposits	Total deposits	14,073		21,387		(34)		14,212		22,473		(37)		Total deposits	13,767		14,881		(7)		14,062		19,926		(29)

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

Total loans and leases	Total loans and leases							$	18,306	$	21,301	(14)	%	Total loans and leases							$	16,880	$	21,301	(21)	%

Total assets (1)	Total assets (1)							206,341		264,141		(22)		Total assets (1)							199,738		264,141		(24)
Total deposits	Total deposits							13,540		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 $1.1 trillion ~~and $1.0 trillion~~ for both the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$740.7~~$828.3 billion and ~~$656.5~~$714.2 billion for the same periods in 2020, and period-end allocated assets were ~~$1.1~~$1.2 trillion and $977.7 billion at ~~June~~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.

Three-Month Comparison

Net income ~~increased~~decreased $~~1.6 billion~~352 million to a loss of $~~1.9 billion~~54 million ~~primarily~~ driven by ~~an increase~~a decrease in the income tax benefit and lower revenue, partially offset by lower ~~revenue.~~noninterest expense.

Revenue decreased $~~1.2 billion~~109 million primarily due to ~~a $704~~higher partnership losses for ESG investments.

Noninterest expense decreased $208 million ~~gain on sales of certain mortgage loans in the prior-year period and~~primarily due to lower ~~market making and similar activities.~~litigation expense.

The income tax benefit ~~increased $2.8 billion~~decreased $481 million primarily due to the impact of the 2020 U.K. tax law change ~~and a higher level of income tax credits associated with increased ESG investment~~

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

~~Six-Month~~

Nine-Month Comparison

Net income increased $~~2.4~~2.0 billion to $2.1 billion primarily due to ~~an increase in the~~a higher income tax benefit, partially offset by lower revenue.

Revenue decreased $~~1.2~~1.3 billion primarily due to ~~the same factors as described~~a $704 million gain on sales of certain mortgage loans in the ~~three-month discussion.~~prior-year period, higher partnership losses for ESG investments and lower market making and similar activities.

The provision for credit losses improved ~~$193~~$223 million to a benefit of ~~$100~~$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 ~~$3.4~~$3.0 billion primarily due to the ~~same factors as described~~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 inNote 1 – Summary of Significant Accounting Principles to the ~~three-month discussion~~Consolidated Financial Statements. Both periods included income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking.


21 Bank 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 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 CCAR capital plan. ~~We submitted~~Based on the results of our 2021 CCAR capital plan and related supervisory stress tests submitted in ~~April~~the second quarter of 2021, ~~and received our results on June 24, 2021. Based on our results,~~ we ~~will be~~are subject to a ~~preliminary~~ 2.5 percent SCB, unchanged from the ~~current~~prior level, effective October 1, 2021 to September 30, 2022. Our CET1 capital ratio under the Standardized approach must remain above 9.5 percent during this period in order to avoid restrictions on capital distributions and discretionary bonus payments.

Due to uncertainty resulting from the pandemic, the Federal Reserve imposed various restrictions on share repurchase programs and dividends. In conjunction with its release of 2021 CCAR supervisory stress test results, the Federal Reserve announced those restrictions would end as of July 1, 2021 for large banks, including the Corporation, and large banks would be subject to the normal restrictions under the Federal Reserve's SCB framework.

On Pursuant to the Board’s authorization on April 15, 2021, during the Corporation announced that the Board authorized the repurchase of up to $25 billion of common stock over time. The Board also authorized repurchases to offset shares awarded under equity-based compensation plans. During the secondthird quarter of 2021, we repurchased ~~$4.2~~$9.9 billion of common stock, including repurchases to offset shares awarded under equity-based compensation plans during the period. On October 20, 2021, the Corporation announced that 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. As with the April authorization, the Board also authorized common stock repurchases to offset shares awarded under the Corporation’s equity-based compensation plans.

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 ~~June~~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 global systemically important bank (G-SIB) ~~surcharge. The buffers and surcharge must be comprised solely~~


						Bank of America 22

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


Table 8	Table 8	Bank of America Corporation Regulatory Capital under Basel 3							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)		June 30, 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		$	178,818		$	178,818							Common equity tier 1 capital		$	174,407		$	174,407
Tier 1 capital	Tier 1 capital		202,245			202,245								Tier 1 capital		197,842			197,842
Total capital (3)	Total capital (3)		234,486			227,736								Total capital (3)		230,506			223,997
Risk-weighted assets (in billions)	Risk-weighted assets (in billions)		1,552			1,380								Risk-weighted assets (in billions)		1,568			1,380
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio		11.5		%	13.0		%			9.5	%		Common equity tier 1 capital ratio		11.1		%	12.6		%	9.5	%
Tier 1 capital ratio	Tier 1 capital ratio		13.0			14.7					11.0			Tier 1 capital ratio		12.6			14.3			11.0
Total capital ratio	Total capital ratio		15.1			16.5					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)		$	2,938		$	2,938							Adjusted quarterly average assets (in billions) (4)		$	3,000		$	3,000
Tier 1 leverage ratio	Tier 1 leverage ratio		6.9		%	6.9		%			4.0			Tier 1 leverage ratio		6.6		%	6.6		%	4.0

Supplementary leverage exposure (in billions) (5)	Supplementary leverage exposure (in billions) (5)					$	3,444							Supplementary leverage exposure (in billions) (5)					$	3,516
Supplementary leverage ratio	Supplementary leverage ratio					5.9		%			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 ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020. At ~~June~~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. The temporary relief expired after March 31, 2021 and is not reflected in supplementary leverage exposure at ~~June~~September 30, 2021.

At June 30, 2021, CET1 capital was $178.8 billion, an increase of $2.2 billion from December 31, 2020, driven by earnings, partially offset by common stock repurchases, dividends, the increase in deferred tax assets due to the change in U.K. tax law and lower net unrealized gains on available-for-sale (AFS) debt securities included in accumulated other comprehensive income (OCI). Tier 1 capital increased $2.1 billion primarily driven by the same factors as CET1 capital. Total capital under the Standardized approach decreased $3.5 billion primarily driven by a decrease in the adjusted allowance for credit losses included in Tier 2 capital, partially offset by

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


23 Bank of America

At September 30, 2021, CET1 capital was $174.4 billion, a decrease of $2.3 billion from December 31, 2020, driven 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 $7.4 billion primarily 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. RWA under the Standardized approach, which yielded the lower CET1 capital ratio at September 30, 2021,

increased $88.3 billion during the nine months ended September 30, 2021 to $1,568 billion primarily due to strong client activity in Global Markets and an increase in debt securities resulting from the deployment of 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.

Table 9 shows the capital composition at ~~June~~September 30, 2021 and December 31, 2020.


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

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

Total common shareholders’ equity	Total common shareholders’ equity		$	253,678	$	248,414	Total common shareholders’ equity		$	249,023	$	248,414
CECL transitional amount (1)	CECL transitional amount (1)		2,994		4,213		CECL transitional amount (1)		2,722		4,213
Goodwill, net of related deferred tax liabilities	Goodwill, net of related deferred tax liabilities		(68,638)		(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		(7,641)		(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		(1,662)		(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		(1,196)		(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		1,499		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		(216)		(601)		Other		328		(601)
Common equity tier 1 capital	Common equity tier 1 capital		178,818		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		(13)		(1)		Other		(5)		(1)
Tier 1 capital	Tier 1 capital		202,245		200,096		Tier 1 capital		197,842		200,096
Tier 2 capital instruments	Tier 2 capital instruments		20,674		22,213		Tier 2 capital instruments		21,756		22,213
Qualifying allowance for credit losses (2)	Qualifying allowance for credit losses (2)		11,993		15,649		Qualifying allowance for credit losses (2)		11,177		15,649
Other	Other		(426)		(22)		Other		(269)		(22)
Total capital under the Standardized approach	Total capital under the Standardized approach		234,486		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)		(6,750)		(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		$	227,736	$	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 10 shows the components of RWA as measured under Basel 3 at ~~June~~September 30, 2021 and December 31, 2020.


Table 10	Table 10	Risk-weighted Assets under Basel 3									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)		June 30, 2021				December 31, 2020				(Dollars in billions)		September 30, 2021				December 31, 2020
Credit risk	Credit risk		$	1,486	$	898	$	1,420	$	896	Credit risk		$	1,506	$	901	$	1,420	$	896
Market risk	Market risk		66		65		60		60		Market risk		62		62		60		60
Operational risk	Operational risk		n/a		373		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		44		n/a		43		Risks related to credit valuation adjustments		n/a		42		n/a		43
Total risk-weighted assets	Total risk-weighted assets		$	1,552	$	1,380	$	1,480	$	1,371	Total risk-weighted assets		$	1,568	$	1,380	$	1,480	$	1,371

n/a = not applicable


						Bank of America 24

Bank of America, N.A. Regulatory Capital

Table 11 presents regulatory capital information for BANA in accordance with Basel 3 Standardized and Advanced approaches as measured at ~~June~~September 30, 2021 and December 31, 2020. BANA met the definition of well capitalized under the PCA framework for both periods.


Table 11	Table 11	Bank of America, N.A. Regulatory Capital under Basel 3							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)		June 30, 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		$	170,512		$	170,512						Common equity tier 1 capital	$	173,710		$	173,710
Tier 1 capital	Tier 1 capital		170,512			170,512							Tier 1 capital	173,710			173,710
Total capital (3)	Total capital (3)		184,226			176,693							Total capital (3)	186,588			179,901
Risk-weighted assets (in billions)	Risk-weighted assets (in billions)		1,270			1,009							Risk-weighted assets (in billions)	1,288			1,012
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio		13.4		%	16.9		%			7.0	%	Common equity tier 1 capital ratio	13.5		%	17.2		%	7.0	%
Tier 1 capital ratio	Tier 1 capital ratio		13.4			16.9					8.5		Tier 1 capital ratio	13.5			17.2			8.5
Total capital ratio	Total capital ratio		14.5			17.5					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)		$	2,269		$	2,269						Adjusted quarterly average assets (in billions) (4)	$	2,329		$	2,329
Tier 1 leverage ratio	Tier 1 leverage ratio		7.5		%	7.5		%			5.0		Tier 1 leverage ratio	7.5		%	7.5		%	5.0

Supplementary leverage exposure (in billions)	Supplementary leverage exposure (in billions)					$	2,664						Supplementary leverage exposure (in billions)				$	2,736
Supplementary leverage ratio	Supplementary leverage ratio					6.4		%			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 ~~June~~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 ~~June~~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 12 presents the Corporation's TLAC and long-term debt ratios and related information as of ~~June~~September 30, 2021 and December 31, 2020.


25 Bank of America


Table 12	Table 12	Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt									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)		June 30, 2021								(Dollars in millions)			September 30, 2021
Total eligible balance	Total eligible balance		$	429,120				$	218,484						Total eligible balance	$	434,224				$	226,431
Percentage of risk-weighted assets (4)	Percentage of risk-weighted assets (4)		27.7		%	22.0	%	14.1		%			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)		12.5			9.5		6.3					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 ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020.

(5)Supplementary leverage exposure at December 31, 2020 reflects the temporary exclusion of U.S. Treasury Securities and deposits at Federal Reserve Banks. The temporary relief expired after March 31, 2021 and is not reflected in supplementary leverage exposure at ~~June~~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 ~~June~~September 30, 2021, the Corporation’s SLR ~~reflecting the expiration of the temporary relief,~~ was ~~5.9~~5.6 percent, which ~~is 0.9 percent, or $30 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 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 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 ~~June~~September 30, 2021, BofAS had

tentative net capital of ~~$18.0~~$19.2 billion. BofAS also had regulatory net capital of ~~$15.2~~$16.6 billion, which exceeded the minimum requirement of ~~$3.0~~$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 ~~June~~September 30, 2021, MLPCC’s regulatory net capital of ~~$5.7~~$5.0 billion exceeded the minimum requirement of $1.5 billion.

MLPF&S provides retail services. At ~~June~~September 30, 2021, MLPF&S' regulatory net capital was ~~$3.7~~$4.8 billion, which exceeded the minimum requirement of ~~$182~~$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 ~~June~~September 30, 2021, MLI’s capital resources were ~~$33.9~~$33.7 billion, which exceeded the minimum Pillar 1 requirement of ~~$14.8~~$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 ~~June~~September 30, 2021, BofASE's capital resources were ~~$7.2~~$7.0 billion, which exceeded the minimum Pillar 1 requirement of ~~$2.7~~$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.

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 America 26

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

NB Holdings Corporation

~~We have intercompany arrangements with certain key subsidiaries under which we transferred certain assets of Bank of America Corporation, as the~~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 13 presents average Global Liquidity Sources (GLS) for the three months ended ~~June~~September 30, 2021 and December 31, 2020.


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

			Three Months Ended						Three Months Ended

(Dollars in billions)	(Dollars in billions)		June 30 2021		December 31 2020		(Dollars in billions)		September 30 2021		December 31 2020
Bank entities	Bank entities		$	909	$	773	Bank entities		$	960	$	773
Nonbank and other entities (1)	Nonbank and other entities (1)		154		170		Nonbank and other entities (1)		160		170
Total Average Global Liquidity Sources	Total Average Global Liquidity Sources		$	1,063	$	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 ~~$300~~$318 billion and $306 billion at ~~June~~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 14 presents the composition of average GLS for the three months ended ~~June~~September 30, 2021 and December 31, 2020.


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

			Three Months Ended							Three Months Ended

(Dollars in billions)	(Dollars in billions)				June 30 2021								December 31 2020	(Dollars in billions)		September 30 2021	December 31 2020
Cash on deposit	Cash on deposit		$	247		$	322		Cash on deposit		$	241		$	322
U.S. Treasury securities	U.S. Treasury securities		227			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		570			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		$	1,063		$	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 ~~$602~~$612 billion and $584 billion for the three months ended ~~June~~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 was effective July 1, 2021. The U.S. NSFR applies to the Corporation on a consolidated basis and to our insured depository institutions. The Corporation is in compliance with


27 Bank of America

the final NSFR rule in the regulatory timeline provided, and there have not 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 ~~$1.91~~$1.96 trillion and $1.80 trillion at ~~June~~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 ~~six~~nine months ended ~~June~~September 30, 2021, we issued ~~$48.2~~$65.5 billion of long-term debt consisting of ~~$36.9~~$49.8 billion of notes issued by Bank of America Corporation, substantially all of which was TLAC compliant, ~~$4.4~~$6.2 billion of notes issued by Bank of America, N.A. and ~~$6.9~~$9.5 billion of other debt.

During the ~~six~~nine months ended ~~June~~September 30, 2021, we had total long-term debt maturities and redemptions in the aggregate of ~~$29.0~~$38.5 billion consisting of ~~$17.6~~$21.3 billion for Bank of America Corporation, ~~$5.4~~$8.0 billion for Bank of America, N.A. and ~~$6.0~~$9.2 billion of other debt. Table 15 presents the carrying value of aggregate annual contractual maturities of long-term debt at ~~June~~September 30, 2021.


Table 15	Table 15	Long-term Debt by Maturity															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)		$	3,391	$	5,819	$	23,615	$	23,845	$	20,020	$	129,724	$	206,414	Senior notes (1)		$	—	$	5,759	$	23,451	$	23,642	$	19,800	$	138,303	$	210,955
Senior structured notes	Senior structured notes		192		1,990		599		344		409		11,266		14,800		Senior structured notes		80		1,937		594		292		412		11,384		14,699
Subordinated notes	Subordinated notes		371		—		—		3,299		5,444		14,216		23,330		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		3,954		7,809		24,214		27,488		25,873		155,946		245,284		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		—		2,945		507		—		—		3		3,455		Senior notes		—		3,245		504		—		—		1		3,750
Subordinated notes	Subordinated notes		—		—		—		—		—		1,794		1,794		Subordinated notes		—		—		—		—		—		1,775		1,775
Advances from Federal Home Loan Banks	Advances from Federal Home Loan Banks		500		3		1		—		17		73		594		Advances from Federal Home Loan Banks		500		203		1		—		16		72		792
Securitizations and other Bank VIEs (2)	Securitizations and other Bank VIEs (2)		1,250		1,249		999		999		—		74		4,571		Securitizations and other Bank VIEs (2)		—		1,249		999		999		—		84		3,331
Other	Other		50		88		192		119		198		27		674		Other		7		67		316		66		153		21		630
Total Bank of America, N.A.	Total Bank of America, N.A.		1,800		4,285		1,699		1,118		215		1,971		11,088		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		2,872		3,964		2,273		1,563		615		6,379		17,666		Structured Liabilities		1,105		3,777		2,507		1,733		671		6,503		16,296
Nonbank VIEs (2)	Nonbank VIEs (2)		1		—		—		—		—		565		566		Nonbank VIEs (2)		1		—		—		—		—		499		500

Total other debt	Total other debt		2,873		3,964		2,273		1,563		615		6,944		18,232		Total other debt		1,106		3,777		2,507		1,733		671		7,002		16,796
Total long-term debt	Total long-term debt		$	8,627	$	16,058	$	28,186	$	30,169	$	26,703	$	164,861	$	274,604	Total long-term debt		$	2,047	$	16,237	$	28,372	$	30,032	$	26,486	$	175,447	$	278,621

(1) Total includes ~~$168.7~~$177.2 billion of outstanding notes that are both TLAC eligible and callable one year before their stated maturities, including $2.5 billion during the remainder of 2021, and ~~$15.2~~$15.1 billion, ~~$17.1~~$17.0 billion, ~~$16.1~~$16.0 billion and ~~$12.9~~$15.2 billion during each year of 2022 through 2025, respectively, and ~~$104.9~~$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 variable interest entities (VIEs) included in total long-term debt on the Consolidated Balance Sheet.

Total long-term debt increased ~~$11.7~~$15.7 billion to ~~$274.6~~$278.6 billion during the ~~six~~nine months ended ~~June~~September 30, 2021, primarily due to debt issuances, partially offset by debt maturities and redemptions and valuation 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.

During the ~~six~~nine months ended ~~June~~September 30, 2021, we issued ~~$2.2~~$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 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 ~~45.~~46.

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 16 presents the Corporation’s current long-term/short-term senior debt ratings and outlooks expressed by the rating agencies.


						Bank of America 28

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

~~On June 7, 2021,~~ Fitch Ratings (Fitch) upgraded the long-term senior debt ratings of the Corporation and its rated subsidiaries by one notch, to AA- and AA, respectively. Fitch also upgraded the Corporation’s short-term rating to F1+ which is now aligned with the short-term rating of its subsidiaries, including BANA. Following the upgrade, the rating outlook for the Corporation and its subsidiaries ~~is Stable.~~have not changed from those disclosed in the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.

The ~~current~~ ratings ~~and Stable outlooks~~from Moody's Investors Service for the Corporation and its subsidiaries ~~from Moody's Investors Service did~~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 16

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

Positive

AA-

F1+

Stable

Bank of America, N.A.

Aa2

P-1

Stable

A+

A-1

Positive

F1+

Stable

Bank of America Europe Designated Activity Company

A+

A-1

Positive

F1+

Stable

Merrill Lynch, Pierce, Fenner & Smith Incorporated

A+

A-1

Positive

F1+

Stable

BofA Securities, Inc.

A+

A-1

Positive

F1+

Stable

Merrill Lynch International

A+

A-1

Positive

F1+

Stable

BofA Securities Europe SA

A+

A-1

Positive

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 ~~June~~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 35, Non-U.S. Portfolio on page ~~40,~~41, Allowance for Credit Losses on page ~~41,~~42, and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

During the ~~six~~nine months ended ~~June~~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 ~~six~~nine months ended ~~June~~September 30, 2021, with the U.S. unemployment rate continuing to decline and home prices increasing. During the three and ~~six~~nine months ended ~~June~~September 30, 2021, net charge-offs decreased ~~$221~~$235 million and ~~$400~~$635 million to ~~$513~~$329 million and ~~$1.2~~$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 ~~six~~nine months ended ~~June~~September 30, 2021, nonperforming loans increased due to deferral activity.

The consumer allowance for loan and lease losses decreased ~~$2.6~~$2.9 billion during the ~~six~~nine months ended ~~June~~September 30, 2021 to ~~$7.4~~$7.2 billion primarily due to ~~an improved~~improvements in the economic ~~outlook.~~outlook and credit quality. For ~~more information, see Allowance for Credit Losses on page 41.~~


29 Bank of America

more information, see Allowance for Credit Losses on page 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

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


Table 17	Table 17	Consumer Credit Quality																	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)		June 30 2021		December 31 2020		June 30 2021			December 31 2020			June 30 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)		$	214,324	$	223,555	$	2,343		$	2,005		$	687		$	762		Residential mortgage (2)		$	216,940	$	223,555	$	2,296		$	2,005		$	648		$	762
Home equity	Home equity		30,469		34,311		651			649			—			—			Home equity		29,000		34,311		676			649			—			—
Credit card	Credit card		75,599		78,708		n/a			n/a			533			903			Credit card		76,869		78,708		n/a			n/a			450			903
Direct/Indirect consumer (3)	Direct/Indirect consumer (3)		96,903		91,363		50			71			15			33			Direct/Indirect consumer (3)		99,845		91,363		45			71			8			33
Other consumer	Other consumer		172		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		$	417,467	$	428,061	$	3,044		$	2,725		$	1,235		$	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)		654		735														Loans accounted for under the fair value option (4)		616		735
Total consumer loans and leases	Total consumer loans and leases		$	418,121	$	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		0.73		%	0.64		%	0.30		%	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		0.75			0.65			0.14			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 ~~$7.2~~$6.7 billion and $8.3 billion and home equity of ~~$3.6~~$3.4 billion and $4.0 billion at ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020, residential mortgage includes ~~$501~~$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 ~~$186~~$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 ~~$46.4~~$47.2 billion and $46.4 billion, U.S. securities-based lending loans of ~~$46.4~~$48.7 billion and $41.1 billion and non-U.S. consumer loans of $3.0 billion and $3.0 billion at ~~June~~September 30, 2021 and December 31, 2020.

(4)Consumer loans accounted for under the fair value option include residential mortgage loans of ~~$257~~$241 million and $298 million and home equity loans of ~~$397~~$375 million and $437 million at ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020, $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 18 presents net charge-offs and related ratios for consumer loans and leases.


Table 18	Table 18	Consumer Net Charge-offs and Related Ratios																	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 June 30				Six Months Ended June 30				Three Months Ended June 30				Six Months Ended June 30						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		2021		2020		2021		2020		(Dollars in millions)		2021		2020		2021		2020		2021		2020		2021		2020
Residential mortgage	Residential mortgage		$	(6)	$	(20)	$	(10)	$	(21)	(0.01)	%	(0.03)	%	(0.01)	%	(0.02)	%	Residential mortgage		$	(7)	$	(6)	$	(17)	$	(27)	(0.01)	%	(0.01)	%	(0.01)	%	(0.02)	%
Home equity	Home equity		(24)		(14)		(59)		(25)		(0.31)		(0.14)		(0.37)		(0.13)		Home equity		(34)		(20)		(93)		(45)		(0.46)		(0.21)		(0.40)		(0.16)
Credit card	Credit card		488		665		1,122		1,435		2.67		3.10		3.07		3.19		Credit card		321		509		1,443		1,944		1.69		2.49		2.59		2.97

Direct/Indirect consumer	Direct/Indirect consumer		(9)		26		22		66		(0.04)		0.12		0.05		0.15		Direct/Indirect consumer		(18)		18		4		84		(0.07)		0.08		0.01		0.13
Other consumer	Other consumer		64		77		131		151		n/m		n/m		n/m		n/m		Other consumer		67		63		198		214		n/m		n/m		n/m		n/m
Total	Total		$	513	$	734	$	1,206	$	1,606	0.50		0.65		0.59		0.70		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 51 percent of consumer loans and leases at ~~June~~September 30, 2021. Approximately 51 percent of the residential mortgage portfolio

was in Consumer

Banking and 42 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 ~~$9.2~~$6.6 billion during the ~~six~~nine months ended ~~June~~September 30, 2021 as paydowns were partially offset by originations.

At ~~June~~September 30, 2021 and December 31, 2020, the residential mortgage portfolio included ~~$12.5~~$12.6 billion and $11.8 billion of outstanding fully-insured loans, of which ~~$2.5~~$2.3 billion and $2.8 billion had FHA insurance, with the remainder protected by Fannie Mae long-term standby agreements.


						Bank of America 30

Table 19 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.


Table 19	Table 19	Residential Mortgage – Key Credit Statistics										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)		June 30 2021			December 31 2020			June 30 2021					December 31 2020			(Dollars in millions)	September 30 2021			December 31 2020			September 30 2021			December 31 2020
Outstandings	Outstandings		$	214,324		$	223,555		$	201,805				$	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		1,906			2,314			909					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		687			762			—					—			Accruing past due 90 days or more	648			762			—			—
Nonperforming loans (2)	Nonperforming loans (2)		2,343			2,005			2,343					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			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 $458 million, or 20 percent, and $503 million, or 25 percent, of nonperforming residential mortgage loans at June 30, 2021 and December 31, 2020.~~

Nonperforming outstanding balances in the residential mortgage portfolio increased ~~$338~~$291 million during the ~~six~~nine months ended ~~June~~September 30, 2021 primarily driven by deferral activity. Of the nonperforming residential mortgage loans at ~~June~~September 30, 2021, ~~$1.2~~$1.3 billion, or 5355 percent, were current on contractual payments. Loans accruing past due 30 days or more decreased ~~$315~~$402 million driven by continued improvement in credit quality.

Net recoveries of $6$7 million and ~~$10~~$17 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 remained relatively unchanged compared to the same periods in the prior year.

Of the ~~$201.8~~$204.3 billion in total residential mortgage loans outstanding at ~~June~~September 30, 2021, as shown in Table 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 ~~$5.3~~$5.1 billion, or nine percent, at ~~June~~September 30, 2021. Residential mortgage loans that have entered the amortization period generally experienced a higher rate of early stage delinquencies and nonperforming status compared to the residential mortgage portfolio as a whole. At ~~June~~September 30, 2021, ~~$66~~$61 million, or one percent, of outstanding interest-only residential mortgages that had entered the amortization period were accruing past due 30 days or more

compared to ~~$909~~$822 million, or less than one percent, for the entire residential mortgage portfolio. In addition, at ~~June~~September 30, 2021, ~~$314~~$287 million, or 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 $2.3 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 20 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 ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020.


Table 20	Table 20	Residential Mortgage State Concentrations																							Table 20	Residential Mortgage State Concentrations

			Outstandings (1)						Nonperforming (1)					Net Charge-offs													Outstandings (1)							Nonperforming (1)								Net Charge-offs
			June 30 2021		December 31 2020				June 30 2021			December 31 2020		Three Months Ended June 30				Six Months Ended June 30									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		2021		2020						(Dollars in millions)									2021								2020				2021				2020
California	California		$	75,531			$	83,185				$	739	$	570	$	(5)	$	(8)	$	(7)	$	(11)						California			$	75,884			$	83,185			$	708			$	570			$	(3)			$	(5)			$	(10)	$	(16)
New York	New York		23,996		23,832				361			272		—		—		2		1					New York			24,402			23,832				351				272				—				1				2				2
Florida	Florida		13,080		13,017				173			175		(2)		(1)		(4)		(3)					Florida		13,524			13,017				160				175				(1)				(1)				(5)				(4)
Texas	Texas		8,648		8,868				86			78		—		—		—		—					Texas		8,810			8,868				91				78				—				—				—				—
New Jersey	New Jersey		8,415		8,806				110			98		—		—		—		—					New Jersey		8,526			8,806				108				98				—				(1)				—				(1)
Other	Other		72,135		74,029				874			812		1		(11)		(1)		(8)					Other		73,170			74,029				878				812				(3)				—				(4)				(8)
Residential mortgage loans	Residential mortgage loans		$	201,805	$	211,737			$	2,343		$	2,005	$	(6)	$	(20)	$	(10)	$	(21)				Residential mortgage loans		$	204,316		$	211,737			$	2,296			$	2,005			$	(7)			$	(6)			$	(17)			$	(27)
Fully-insured loan portfolio	Fully-insured loan portfolio		12,519		11,818																				Fully-insured loan portfolio		12,624			11,818

Total residential mortgage loan portfolio	Total residential mortgage loan portfolio		$	214,324	$	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.


31 Bank of America

Home Equity

At ~~June~~September 30, 2021, the home equity portfolio made up 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 ~~June~~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 ~~$3.8~~$5.3 billion during the ~~six~~nine months ended ~~June~~September 30, 2021 primarily due to paydowns outpacing new

originations and draws on existing

lines. Of the total home equity portfolio at ~~June~~September 30, 2021 and December 31, 2020, ~~$12.8~~$12.4 billion, or 4243 percent, and $13.8 billion, or 40 percent, were in first-lien positions. At ~~June~~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 ~~$5.1~~$4.8 billion, or 17 percent of our total home equity portfolio.

Unused HELOCs totaled ~~$41.0~~$40.8 billion and $42.3 billion at ~~June~~September 30, 2021 and December 31, 2020. The HELOC utilization rate was 4140 percent and 43 percent at ~~June~~September 30, 2021 and December 31, 2020.

Table 21 presents certain home equity portfolio key credit statistics.


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

(Dollars in millions)	(Dollars in millions)									June 30 2021			December 31 2020				(Dollars in millions)						September 30 2021		December 31 2020
Outstandings	Outstandings									$	30,469		$	34,311			Outstandings						$	29,000	$	34,311
Accruing past due 30 days or more (2)	Accruing past due 30 days or more (2)						167		186						Accruing past due 30 days or more (2)						165	186
Nonperforming loans (2, 3)	Nonperforming loans (2, 3)									651			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 ~~$90~~$86 million and $88 million of loans where we serviced the underlying first lien at ~~June~~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 35 percent and 36 percent of nonperforming home equity loans at June 30, 2021 and December 31, 2020.~~

Nonperforming outstanding balances in the home equity portfolio ~~remained relatively unchanged at $651~~increased $27 million ~~at June~~during the nine months ended September 30, ~~2021.~~2021, as new additions outpaced returns to performing status and paydowns. Of the nonperforming home equity loans at ~~June~~September 30, 2021, ~~$264~~$273 million, or 4140 percent were current on contractual payments. In addition, ~~$246~~$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 ~~$19~~$21 million during the ~~six~~nine months ended ~~June~~September 30, 2021.

Net recoveries increased ~~$10~~$14 million to ~~$24~~$34 million and ~~$34~~$48 million to ~~$59~~$93 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same periods in 2020. The increase was driven by favorable portfolio trends due ~~partly~~in part to improvement in home prices.

Of the ~~$30.5~~$29.0 billion in total home equity portfolio outstandings at ~~June~~September 30, 2021, as shown in Table 21, 1514 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 ~~$8.0~~$7.4 billion at ~~June~~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 ~~June~~September 30, 2021, ~~$107~~$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 ~~June~~September 30, 2021, ~~$473~~$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 ~~June~~September 30, 2021, 1920 percent of these customers with an outstanding balance did not pay any principal on their HELOCs.

Table 22 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 ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020.


						Bank of America 32


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

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

			June 30 2021		December 31 2020				June 30 2021			December 31 2020		Three Months Ended June 30				Six Months Ended June 30									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		2021		2020		(Dollars in millions)												2021								2020				2021				2020
California	California		$	8,334			$	9,488				$	145	$	143	$	(10)	$	(4)		$	(22)			$	(9)			California			$	7,886			$	9,488			$	149			$	143			$	(9)			$	(8)			$	(31)	$	(17)
Florida	Florida		3,295		3,715				81			80		(5)		(2)		(11)			(5)		Florida				3,113			3,715				83				80				(5)				(2)				(16)				(7)
New Jersey	New Jersey		2,470		2,749				70			67		—		(1)		(2)			(1)		New Jersey				2,346			2,749				72				67				(1)				—				(3)				(1)
New York	New York		2,263		2,495				100			103		2		—		(1)			1		New York				2,157			2,495				101				103				(2)				(1)				(3)				—
Massachusetts	Massachusetts		1,532		1,719				30			32		(1)		—		—			1		Massachusetts				1,484			1,719				33				32				(2)				—				(2)				1
Other	Other		12,575		14,145				225			224		(10)		(7)		(23)			(12)		Other				12,014			14,145				238				224				(15)				(9)				(38)				(21)
Total home equity loan portfolio	Total home equity loan portfolio		$	30,469	$	34,311			$	651		$	649	$	(24)	$	(14)	$	(59)		$	(25)	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 ~~June~~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 ~~$3.1~~$1.8 billion during the ~~six~~nine months ended ~~June~~September 30, 2021 to ~~$75.6~~$76.9 billion as increased payments more than offset higher purchase volumes as spending continued to recover. Net charge-offs decreased ~~$177~~$188 million to ~~$488~~$321 million and ~~$313~~$501 million to ~~$1.1~~$1.4 billion during the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same periods in 2020 due to balance declines and the impact of government stimulus

measures, partially offset by charge-offs of certain loans with deferrals that expired

in 2020. Credit card loans 30 days or more past due and still accruing interest decreased ~~$713~~$755 million, and loans 90 days or more past due and still accruing interest decreased ~~$370~~$453 million primarily due to charge-offs 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 ~~$351.1~~$359.0 billion at ~~June~~September 30, 2021 from $342.4 billion at December 31, 2020.

Table 23 presents certain state concentrations for the credit card portfolio.


Table 23	Table 23	Credit Card State Concentrations																					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

			June 30 2021		December 31 2020				June 30 2021			December 31 2020		Three Months Ended June 30				Six Months Ended June 30									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		2021		2020		(Dollars in millions)												2021								2020				2021				2020
California	California		$	12,055			$	12,543				$	98	$	166	$	94	$	119		$	213			$	255			California			$	12,248			$	12,543			$	81			$	166			$	60			$	92			$	273	$	347
Florida	Florida		7,321		7,666				78			135		68		85		159			186		Florida				7,504			7,666				64				135				46				66				205				252
Texas	Texas		6,327		6,499				52			87		44		56		102			121		Texas				6,483			6,499				44				87				30				45				132				166
New York	New York		4,388		4,654				39			76		38		51		92			111		New York				4,488			4,654				32				76				24				43				116				154
Washington	Washington		3,753		3,685				13			21		10		17		25			35		Washington				3,840			3,685				12				21				7				12				32				47
Other	Other		41,755		43,661				253			418		234		337		531			727		Other				42,306			43,661				217				418				154				251				685				978
Total credit card portfolio	Total credit card portfolio		$	75,599	$	78,708			$	533		$	903	$	488	$	665	$	1,122		$	1,435	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 ~~June~~September 30, 2021, 48 percent of the direct/indirect portfolio was included in Consumer Banking (consumer auto and recreational vehicle lending) and 52 percent was included in GWIM (principally securities-based lending loans). Outstandings

in the direct/indirect portfolio increased by ~~$5.5~~$8.5 billion during

the ~~six~~nine months ended ~~June~~September 30, 2021 to ~~$96.9~~$99.8 billion driven by client demand for liquidity and high asset values in the securities-based lending portfolio.


33Bank of America

Table 24 presents certain state concentrations for the direct/indirect consumer loan portfolio.


Table 24	Table 24	Direct/Indirect State Concentrations																							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

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

California	California		$	13,402			$	12,248				$	3	$	6	$	(2)	$	5	$	5	$	11					California	$	14,225		$	12,248	$	1		$	6		$	(2)		$	2	$	3	$	13
Florida	Florida		12,009		10,891				2			4		(1)		4		2		11					Florida		12,590		10,891			1		4			(2)			3			—		14
Texas	Texas		9,199		8,981				2			6		1		3		6		9					Texas		9,402		8,981			1		6			(4)			4			2		13
New York	New York		7,668		6,609				—			2		—		2		3		4					New York		7,511		6,609			1		2			1			2			4		6
New Jersey	New Jersey		3,841		3,572				—			—		(1)		1		(1)		1					New Jersey		3,988		3,572			—		—			—			—			(1)		1
Other	Other		50,784		49,062				8			15		(6)		11		7		30					Other		52,129		49,062			4		15			(11)			7			(4)		37
Total direct/indirect loan portfolio	Total direct/indirect loan portfolio		$	96,903	$	91,363			$	15		$	33	$	(9)	$	26	$	22	$	66				Total direct/indirect loan portfolio		$	99,845	$	91,363		$	8	$	33		$	(18)		$	18		$	4	$	84


33~~Bank of America~~

Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

Table 25 presents nonperforming consumer loans, leases and foreclosed properties activity for the three and ~~six~~nine months ended ~~June~~September 30, 2021 and 2020. During the ~~six~~nine months ended ~~June~~September 30, 2021, nonperforming consumer loans increased ~~$319~~$292 million to $3.0 billion primarily driven by consumer real estate deferral activity.

At ~~June~~September 30, 2021, ~~$823~~$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 ~~June~~September 30, 2021, $1.6 billion, or 51

52 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 ~~$30~~$36 million during the ~~six~~nine months ended ~~June~~September 30, 2021 to ~~$93 million as the Corporation has continued to pause 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 25.


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

			Three Months Ended June 30						Six Months Ended June 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
Nonperforming loans and leases, beginning of period	Nonperforming loans and leases, beginning of period		$	3,091		$	2,204		$	2,725	$	2,053	Nonperforming loans and leases, beginning of period		$	3,044		$	2,191		$	2,725	$	2,053
Additions	Additions		431			354			1,282		831		Additions		353			587			1,635		1,418
Reductions:	Reductions:												Reductions:
Paydowns and payoffs	Paydowns and payoffs		(160)			(84)			(283)		(190)		Paydowns and payoffs		(163)			(113)			(446)		(303)
Sales	Sales		(1)			(25)			(2)		(31)		Sales		(1)			—			(3)		(31)
Returns to performing status (1)	Returns to performing status (1)		(291)			(233)			(638)		(398)		Returns to performing status (1)		(201)			(291)			(839)		(689)
Charge-offs	Charge-offs		(25)			(22)			(37)		(49)		Charge-offs		(12)			(13)			(49)		(62)
Transfers to foreclosed properties	Transfers to foreclosed properties		(1)			(3)			(3)		(25)		Transfers to foreclosed properties		(3)			(4)			(6)		(29)

Total net additions/(reductions) to nonperforming loans and leases	Total net additions/(reductions) to nonperforming loans and leases		(47)			(13)			319		138		Total net additions/(reductions) to nonperforming loans and leases		(27)			166			292		304
Total nonperforming loans and leases, June 30			3,044			2,191			3,044		2,191
Foreclosed properties, June 30 (2)			93			169			93		169
Nonperforming consumer loans, leases and foreclosed properties, June 30			$	3,137		$	2,360		$	3,137	$	2,360
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)		0.73		%	0.49		%					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)		0.75			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 ~~$66~~$55 million and ~~$124~~$131 million at ~~June~~September 30, 2021 and 2020.

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


						Bank of America34

Table 26 presents TDRs for the consumer real estate portfolio. Performing TDR balances are excluded from nonperforming loans and leases in Table 25.


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

			June 30, 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)		$	1,548	$	2,585	$	4,133	$	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)		268		743		1,011		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		$	1,816	$	3,328	$	5,144	$	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 ~~June~~September 30, 2021 and December 31, 2020, residential mortgage TDRs deemed collateral dependent totaled $1.7 billion and $1.4 billion, and included $1.4 billion and $1.0 billion of loans classified as nonperforming and ~~$315~~$297 million and $361 million of loans classified as performing.

(2)At ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020, home equity TDRs deemed collateral dependent totaled ~~$405~~$390 million and $407 million, and include ~~$234~~$232 million and $216 million of loans classified as nonperforming and ~~$171~~$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 ~~June~~September 30, 2021 and December 31, 2020, our credit card and other consumer TDR portfolio was ~~$673~~$654 million and $701 million, of which ~~$600~~$590 million and $614 million were current or less than 30 days past due under the modified terms.


						~~Bank of America~~34

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 non-U.S. portfolio, we evaluate exposures by region and by country. Tables 31, 34 and 37 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 34 and Commercial Portfolio Credit Risk Management – Industry Concentrations on page ~~38.~~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 ~~six~~nine months ended ~~June~~September 30, 2021, commercial ~~asset~~credit quality 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. Outstanding commercial loans and leases increased ~~$1.7~~$5.2 billion during the ~~six~~nine months ended ~~June~~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 lower U.S. small ~~business~~

business commercial 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, 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 ~~$2.1~~$2.8 billion during the ~~six~~nine months ended ~~June~~September 30, 2021 to ~~$6.7~~$6.0 billion ~~primarily~~ driven by ~~an improved~~improvements in the macroeconomic ~~outlook.~~outlook and credit quality. For more information, see Allowance for Credit Losses on page ~~41.~~42.

Total commercial utilized credit exposure decreased ~~$7.3~~$4.9 billion during the ~~six~~nine months ended ~~June~~September 30, 2021 to ~~$613.0~~$615.4 billion primarily driven by lower 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 ~~June~~September 30, 2021 and 57 percent at December 31, 2020.

Table 27 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 27 Commercial Credit Exposure by Type

Commercial Utilized (1)
Commercial Unfunded (2, 3, 4)
Total Commercial Committed
(Dollars in millions) June 30
2021 December 31
2020 June 30
2021 December 31
2020 June 30
2021 December 31
2020
Loans and leases $ 500,807 $ 499,065 $ 433,822 $ 404,740 $ 934,629 $ 903,805
Derivative assets (5)
41,498 47,179 — — 41,498 47,179
Standby letters of credit and financial guarantees 33,864 34,616 452 538 34,316 35,154
Debt securities and other investments 21,593 22,618 5,506 4,827 27,099 27,445
Loans held-for-sale 6,784 8,378 21,411 9,556 28,195 17,934
Operating leases 6,020 6,424 — — 6,020 6,424
Commercial letters of credit 1,235 855 742 280 1,977 1,135
Other 1,229 1,168 — — 1,229 1,168
Total $ 613,030 $ 620,303 $ 461,933 $ 419,941 $ 1,074,963 $ 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 ~~$80~~$86 million and $89 million accounted for under the fair value option at ~~June~~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 ~~$5.2~~$4.9 billion and $3.9 billion at ~~June~~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 ~~June~~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 ~~$32.3~~$31.2 billion and $42.5 billion at ~~June~~September 30, 2021 and December 31, 2020. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of ~~$37.1~~$39.9 billion and $39.3 billion at ~~June~~September 30, 2021 and December 31, 2020, which consists primarily of other marketable securities.


35~~Bank of America~~

Nonperforming commercial loans decreased ~~$364~~$530 million and commercial reservable criticized utilized exposure decreased ~~$9.8~~$14.5 billion, which was broad-based across

industries. Table 28 presents our commercial loans and leases portfolio and related credit quality information at ~~June~~September 30, 2021 and December 31, 2020.


Table 28	Table 28	Commercial Credit Quality													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)		June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 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		$	291,120	$	288,728	$	1,060	$	1,243	$	172	$	228	U.S. commercial		$	295,927	$	288,728	$	909	$	1,243	$	84	$	228
Non-U.S. commercial	Non-U.S. commercial		98,150		90,460		275		418		19		10		Non-U.S. commercial		102,850		90,460		272		418		60		10
Total commercial and industrial	Total commercial and industrial		389,270		379,188		1,335		1,661		191		238		Total commercial and industrial		398,777		379,188		1,181		1,661		144		238
Commercial real estate	Commercial real estate		59,606		60,364		404		404		—		6		Commercial real estate		60,723		60,364		414		404		5		6
Commercial lease financing	Commercial lease financing		15,768		17,098		81		87		24		25		Commercial lease financing		15,044		17,098		70		87		11		25
			464,644		456,650		1,820		2,152		215		269				474,544		456,650		1,665		2,152		160		269
U.S. small business commercial (1)	U.S. small business commercial (1)		29,867		36,469		43		75		69		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		494,511		493,119		$	1,863	$	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)		6,296		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		$	500,807	$	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 ~~$4.4~~$4.5 billion and $2.9 billion and non-U.S. commercial of ~~$1.9~~$2.4 billion and $3.0 billion at ~~June~~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 29 presents net charge-offs and related ratios for our commercial loans and leases for the three and ~~six~~nine months ended ~~June~~September 30, 2021 and 2020.


Table 29	Table 29	Commercial Net Charge-offs and Related Ratios																	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 June 30				Six Months Ended June 30				Three Months Ended June 30				Six Months Ended June 30						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		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		$	(31)	$	219	$	(19)	$	382	(0.04)	%	0.26	%	(0.01)	%	0.24	%	U.S. commercial		$	15	$	154	$	(4)	$	536	0.02	%	0.20	%	—	%	0.23	%
Non-U.S. commercial	Non-U.S. commercial		14		32		40		33		0.06		0.12		0.09		0.06		Non-U.S. commercial		1		57		41		90		—		0.23		0.06		0.11
Total commercial and industrial	Total commercial and industrial		(17)		251		21		415		(0.02)		0.22		0.01		0.19		Total commercial and industrial		16		211		37		626		0.02		0.21		0.01		0.20
Commercial real estate	Commercial real estate		17		57		28		63		0.11		0.35		0.09		0.20		Commercial real estate		—		106		28		169		—		0.66		0.06		0.35
Commercial lease financing	Commercial lease financing		—		31		—		36		—		0.66		—		0.38		Commercial lease financing		(1)		24		(1)		60		—		0.53		—		0.43
			—		339		49		514		—		0.25		0.02		0.20				15		341		64		855		0.01		0.28		0.02		0.23
U.S. small business commercial	U.S. small business commercial		82		73		163		148		0.98		0.96		0.93		1.29		U.S. small business commercial		119		67		282		215		1.76		0.69		1.16		1.01
Total commercial	Total commercial		$	82	$	412	$	212	$	662	0.07		0.29		0.09		0.25		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 30 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 ~~$9.8~~$14.5 billion during the ~~six~~nine months ended ~~June~~September 30, 2021, which was broad-based across industries. At ~~June~~September 30, 2021 and December 31, 2020, 8485 percent and 79 percent of commercial reservable criticized utilized exposure was secured.


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

(Dollars in millions)	(Dollars in millions)		June 30, 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		$	14,903	4.66	%	$	21,388	6.83	%	U.S. commercial		$	12,275	3.78	%	$	21,388	6.83	%
Non-U.S. commercial	Non-U.S. commercial		3,559		3.44		5,051		5.03		Non-U.S. commercial		2,904		2.69		5,051		5.03
Total commercial and industrial	Total commercial and industrial		18,462		4.36		26,439		6.40		Total commercial and industrial		15,179		3.51		26,439		6.40
Commercial real estate	Commercial real estate		8,898		14.51		10,213		16.42		Commercial real estate		7,933		12.70		10,213		16.42
Commercial lease financing	Commercial lease financing		733		4.65		714		4.18		Commercial lease financing		404		2.68		714		4.18
			28,093		5.61		37,366		7.59				23,516		4.61		37,366		7.59
U.S. small business commercial	U.S. small business commercial		785		2.63		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		$	28,878	5.45		$	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 ~~$27.4~~$22.9 billion and $36.6 billion and commercial letters of credit of ~~$1.5~~$1.2 billion and $2.1 billion at ~~June~~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.


						~~Bank of America~~36

Commercial and Industrial

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

U.S. Commercial

At ~~June~~September 30, 2021, 6162 percent of the U.S. commercial loan portfolio, excluding small business, was managed in Global Banking, 21 percent in Global Markets, 16 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 increased ~~$2.4~~$7.2 billion during the ~~six~~nine months ended ~~June~~September 30, 2021 driven by Global Markets. Reservable criticized utilized exposure decreased ~~$6.5~~$9.1 billion, which was broad-based across industries.

Non-U.S. Commercial

At ~~June~~September 30, 2021, 7271 percent of the non-U.S. commercial loan portfolio was managed in Global Banking and 2829 percent in Global Markets. Non-U.S. commercial loans increased ~~$7.7~~$12.4 billion during the ~~six~~nine months ended ~~June~~September 30, 2021 primarily in Global Markets. For information on the non-U.S. commercial portfolio, see Non-U.S. Portfolio on page ~~40.~~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 $758 million during the six months ended June~~remained relatively unchanged at $60.7 billion as of September 30, ~~2021 as paydowns exceeded new originations.~~2021. The portfolio remains diversified across property types and geographic regions. California represented the largest state concentration at 2422 percent and 23 percent of the commercial real estate portfolio at ~~June~~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 ~~six~~nine months ended ~~June~~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 for management by independent special asset officers and the pursuit of loan restructurings or asset sales to achieve the best results for our customers and the Corporation.

~~Table 31 presents outstanding commercial real estate loans by geographic region, based on the geographic location of the collateral, and by property type.~~

Table 31 Outstanding Commercial Real Estate Loans
(Dollars in millions) June 30
2021 December 31
2020
By Geographic Region
California $ 14,178 $ 14,028
Northeast 11,949 11,628
Southwest 7,715 8,551
Southeast 6,434 6,588
Florida 4,455 4,294
Illinois 2,675 2,594
Midwest 2,569 3,483
Midsouth 2,367 2,370
Northwest 1,588 1,634
Non-U.S. 3,764 3,187
Other 1,912 2,007
Total outstanding commercial real estate loans $ 59,606 $ 60,364
By Property Type
Non-residential
Office $ 17,517 $ 17,667
Industrial / Warehouse 8,903 8,330
Multi-family rental 7,649 7,051
Hotels / Motels 6,725 7,226
Shopping centers / Retail 6,624 7,931
Unsecured 2,694 2,336
Multi-use 1,442 1,460
Other 6,643 7,146
Total non-residential 58,197 59,147
Residential 1,409 1,217
Total outstanding commercial real estate loans $ 59,606 $ 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 $15.7 billion and $22.7 billion of PPP loans outstanding at June 30, 2021 and December 31, 2020. The decline of $7.0 billion in PPP loans during the six months ended June 30, 2021 was due to repayment of the loans by the Small Business Administration under the terms of the program. Excluding PPP, credit card-related products were 51 percent and 50 percent of the U.S.

small business commercial portfolio at June 30, 2021 and December 31, 2020. Of the U.S. small business commercial net charge-offs, 100 percent and 95 percent were credit card-related products for the three and six months ended June 30, 2021 compared to 95 percent and 92 percent for the same periods in 2020.

~~Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity~~

~~Table 32 presents the nonperforming commercial loans, leases and foreclosed properties activity during the three and six~~


37 Bank of America

Table 31 presents outstanding commercial real estate loans by geographic region, based on the geographic location of the collateral, and by property type.



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

Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity

Table 32 presents the nonperforming commercial loans, leases and foreclosed properties activity during the three and nine months ended September 30, 2021 and 2020. Nonperforming loans do not include loans accounted for under the fair value option. During the ~~six~~nine months ended ~~June~~September 30, 2021, nonperforming commercial loans and leases decreased ~~$364~~$530 million to ~~$1.9~~$1.7 billion. At ~~June~~September 30, 2021, 7882 percent of commercial nonperforming loans, leases and foreclosed properties were

secured and 5965 percent were contractually current. Commercial nonperforming loans were carried at ~~approximately 88~~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 32
Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2)
Three Months Ended
June 30 Six Months Ended
June 30
(Dollars in millions) 2021 2020 2021 2020
Nonperforming loans and leases, beginning of period $ 2,071 $ 1,852 $ 2,227 $ 1,499
Additions 503 889 975 1,670
Reductions:
Paydowns (264) (177) (576) (389)
Sales (77) (10) (99) (26)
Returns to performing status (3)
(59) (8) (87) (24)
Charge-offs (108) (344) (186) (528)
Transfers to loans held-for-sale (203) — (391) —
Total net additions (reductions) to nonperforming loans and leases (208) 350 (364) 703
Total nonperforming loans and leases, June 30 1,863 2,202 1,863 2,202
Foreclosed properties, June 30 31 49 31 49
Nonperforming commercial loans, leases and foreclosed properties, June 30 $ 1,894 $ 2,251 $ 1,894 $ 2,251
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)
0.38 % 0.41 %
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)
0.38 0.42


						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 ~~$348~~$279 million and ~~$151~~$184 million at ~~June~~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 33 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.


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

			June 30, 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		$	483	$	702	$	1,185	$	509	$	850	$	1,359	U.S. commercial		$	377	$	776	$	1,153	$	509	$	850	$	1,359
Non-U.S. commercial	Non-U.S. commercial		72		37		109		49		119		168		Non-U.S. commercial		65		30		95		49		119		168
Total commercial and industrial	Total commercial and industrial		555		739		1,294		558		969		1,527		Total commercial and industrial		442		806		1,248		558		969		1,527
Commercial real estate	Commercial real estate		121		453		574		137		—		137		Commercial real estate		158		440		598		137		—		137
Commercial lease financing	Commercial lease financing		37		—		37		42		2		44		Commercial lease financing		34		8		42		42		2		44
			713		1,192		1,905		737		971		1,708				634		1,254		1,888		737		971		1,708
U.S. small business commercial	U.S. small business commercial		—		35		35		—		29		29		U.S. small business commercial		—		35		35		—		29		29
Total commercial troubled debt restructurings	Total commercial troubled debt restructurings		$	713	$	1,227	$	1,940	$	737	$	1,000	$	1,737	Total commercial troubled debt restructurings		$	634	$	1,289	$	1,923	$	737	$	1,000	$	1,737

Industry Concentrations

Table 34 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 ~~$34.7~~$53.5 billion, or ~~three~~five percent, during the ~~six~~nine months ended ~~June~~September 30, 2021 to $1.1 trillion. The increase in commercial committed exposure was concentrated in Asset managers and funds, Finance companies, ~~Healthcare equipment~~Capital goods and ~~services~~Individuals and ~~Media~~trusts industry sectors. Increases were partially offset by decreased exposure to the Government and public education and ~~Vehicle dealers~~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 ~~$118.6~~$132.2 billion, increased ~~$18.3~~$31.9 billion, or 1832 percent, during the ~~six~~nine months

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

Real estate, our second largest industry concentration with committed exposure of ~~$92.9~~$94.5 billion, increased ~~$1.2~~$2.7 billion, or ~~one~~three percent, during the ~~six~~nine months ended ~~June~~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 37.

Capital goods, our third largest industry concentration with committed exposure of ~~$84.2~~$87.0 billion, increased ~~$3.4~~$6.2 billion, or ~~four~~eight percent, during the ~~six~~nine months ended ~~June~~September 30, ~~2021.~~


						~~Bank of America~~382021 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 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. For more information on the pandemic, see Executive Summary – Recent Developments – COVID-19 Pandemic on page 3.

Table 34
Commercial Credit Exposure by Industry (1)
Commercial
Utilized
Total Commercial
Committed (2)
(Dollars in millions) June 30
2021 December 31
2020 June 30
2021 December 31
2020
Asset managers and funds $ 78,769 $ 67,360 $ 118,559 $ 100,296
Real estate (3)
66,707 68,967 92,913 91,730
Capital goods 38,906 39,807 84,180 80,815
Finance companies 52,314 46,948 78,342 70,004
Healthcare equipment and services 32,112 33,488 62,851 57,540
Materials 23,641 24,516 50,630 50,757
Government and public education 38,295 41,669 50,468 56,212
Retailing 23,388 23,700 48,318 48,306
Consumer services 28,438 31,993 48,055 47,997
Food, beverage and tobacco 22,569 22,755 46,276 44,417
Commercial services and supplies 20,027 21,107 39,836 38,092
Individuals and trusts 28,785 24,727 38,329 34,036
Transportation 21,842 23,126 32,210 33,082
Energy 13,223 13,930 31,830 32,974
Utilities 13,044 12,387 31,777 29,234
Media 12,318 12,632 29,157 24,120
Technology hardware and equipment 9,446 9,935 25,208 24,196
Software and services 8,213 10,853 21,991 22,524
Global commercial banks 20,143 20,544 21,791 22,595
Consumer durables and apparel 8,587 9,232 19,731 20,223
Telecommunication services 8,983 9,411 18,456 15,605
Automobiles and components 9,340 10,792 17,022 20,575
Pharmaceuticals and biotechnology 4,934 4,830 16,099 15,901
Vehicle dealers 10,821 15,028 14,852 18,696
Insurance 5,123 5,772 13,759 13,277
Food and staples retailing 5,354 5,209 10,716 11,795
Religious and social organizations 4,042 4,646 5,828 6,597
Financial markets infrastructure (clearinghouses) 3,666 4,939 5,779 8,648
Total commercial credit exposure by industry $ 613,030 $ 620,303 $ 1,074,963 $ 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 ~~June~~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 ~~June~~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 ~~$3.6~~$3.7 billion and $4.2 billion. For these same positions, we recorded net losses of ~~$32~~$18 million and ~~$68~~$86 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to net losses of ~~$231~~$104 million and $2$106 million for the same periods in 2020. The gains and losses on these instruments were offset by gains and

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 40. For more information, see Trading Risk Management on page ~~43.~~44.

Tables 35 and 36 present the maturity profiles and the credit exposure debt ratings of the net credit default protection portfolio at ~~June~~September 30, 2021 and December 31, 2020.


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

			June 30 2021		December 31 2020				September 30 2021		December 31 2020
Less than or equal to one year	Less than or equal to one year		47	%	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		51		34		Greater than one year and less than or equal to five years		60		34
Greater than five years	Greater than five years		2		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	%

39Bank of America


Table 36	Table 36	Net Credit Default Protection by Credit Exposure Debt Rating									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)		June 30, 2021				December 31, 2020				(Dollars in millions)		September 30, 2021				December 31, 2020
Ratings (2, 3)	Ratings (2, 3)										Ratings (2, 3)

A	A		$	(345)	9.5	%	$	(250)	6.0	%	A		$	(350)	9.4	%	$	(250)	6.0	%
BBB	BBB		(1,329)		36.7		(1,856)		44.5		BBB		(1,423)		38.3		(1,856)		44.5
BB	BB		(1,133)		31.3		(1,363)		32.7		BB		(854)		23.0		(1,363)		32.7
B	B		(603)		16.7		(465)		11.2		B		(650)		17.5		(465)		11.2
CCC and below	CCC and below		(157)		4.3		(182)		4.4		CCC and below		(138)		3.7		(182)		4.4
NR (4)	NR (4)		(52)		1.5		(54)		1.2		NR (4)		(303)		8.1		(54)		1.2
Total net credit default protection	Total net credit default protection		$	(3,619)	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 37 presents our 20 largest non-U.S. country exposures at ~~June~~September 30, 2021. These exposures accounted for 91 percent and 90 percent of our total non-U.S. exposure at ~~June~~September 30, 2021 and December 31, 2020. Net country exposure for these 20 countries increased ~~$37.9~~$26.1 billion induring the ~~six~~nine months ended ~~June~~September 30, 2021. The majority of the increase was due to higher deposits with central banks in Japan ~~Switzerland~~ and Ireland, ~~increased exposure with central clearing counterparts in the U.K.~~ and increased corporate exposure in ~~Canada.~~Canada, Spain and Sweden.


Table 37	Table 37	Top 20 Non-U.S. Countries Exposure																	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 June 30 2021		Hedges and Credit Default Protection		Net Country Exposure at June 30 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		$	33,009	$	19,674	$	8,601	$	4,733	$	66,017	$	(1,105)	$	64,912	$	5,440	United Kingdom		$	31,193	$	17,767	$	6,891	$	2,903	$	58,754	$	(1,135)	$	57,619	$	(1,853)
Germany	Germany		27,174		10,533		1,914		2,351		41,972		(1,336)		40,636		(4,267)		Germany		23,506		11,439		1,404		1,704		38,053		(1,775)		36,278		(8,625)
Canada	Canada		8,804		12,903		1,931		4,140		27,778		(387)		27,391		6,257		Canada		8,249		12,936		1,853		3,641		26,679		(363)		26,316		5,182
Japan	Japan		19,776		1,121		1,971		4,847		27,715		(503)		27,212		9,716		Japan		19,811		1,412		2,663		1,921		25,807		(704)		25,103		7,607
France	France		12,078		9,455		1,149		2,225		24,907		(856)		24,051		3,260		France		12,673		8,668		1,211		3,012		25,564		(871)		24,693		3,902
Australia	Australia		7,726		4,709		739		2,800		15,974		(281)		15,693		2,606		Australia		8,139		6,462		717		2,767		18,085		(176)		17,909		4,822
China	China		10,895		591		1,233		1,698		14,417		(427)		13,990		570		China		10,103		225		954		1,009		12,291		(372)		11,919		(1,501)
Switzerland			8,976		3,382		395		320		13,073		(186)		12,887		5,992
Brazil	Brazil		5,949		786		887		3,980		11,602		(180)		11,422		1,129		Brazil		6,188		1,005		446		4,123		11,762		(180)		11,582		1,289
Netherlands	Netherlands		5,637		3,857		815		800		11,109		(434)		10,675		991		Netherlands		6,006		3,412		861		1,007		11,286		(446)		10,840		1,156
Singapore	Singapore		4,154		250		338		4,518		9,260		(62)		9,198		(84)		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		5,559		174		450		2,448		8,631		(163)		8,468		657		India		5,596		171		464		1,739		7,970		(190)		7,780		(31)
Ireland			5,830		2,184		94		260		8,368		(24)		8,344		4,179
South Korea			5,313		873		521		1,655		8,362		(124)		8,238		(313)
Spain			2,648		2,995		277		1,072		6,992		(271)		6,721		1,905
Hong Kong	Hong Kong		4,708		235		388		1,161		6,492		(59)		6,433		(104)		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		3,715		1,682		172		802		6,371		(285)		6,086		(201)		Mexico		4,247		1,374		119		778		6,518		(296)		6,222		(65)
Italy	Italy		2,508		1,540		544		2,120		6,712		(629)		6,083		391		Italy		2,564		1,688		515		1,492		6,259		(563)		5,696		4
Belgium	Belgium		2,725		1,454		299		282		4,760		(204)		4,556		(411)		Belgium		2,643		1,291		355		364		4,653		(202)		4,451		(516)
United Arab Emirates			2,414		116		46		306		2,882		(12)		2,870		183
Total top 20 non-U.S. countries exposure	Total top 20 non-U.S. countries exposure		$	179,598	$	78,514	$	22,764	$	42,518	$	323,394	$	(7,528)	$	315,866	$	37,896	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 June 30, 2021 was the U.K. with net exposure of $64.9 billion, which represents a $5.4 billion increase from December 31, 2020. Our second largest non-U.S. country exposure was Germany with net exposure of $40.6 billion at June 30, 2021, a $4.3 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


						~~Bank of America~~40

~~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.


41Bank of America

Allowance for Credit Losses

The allowance for credit losses decreased ~~by $4.9~~$6.0 billion from December 31, 2020 to ~~$15.8~~$14.7 billion at ~~June~~September 30, 2021, which included a ~~$2.2~~$3.1 billion reserve decrease related to the commercial portfolio and a ~~$2.7~~$2.9 billion reserve decrease related to the consumer portfolio. The decreases were primarily driven

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

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


Table 38	Table 38	Allocation of the Allowance for Credit Losses by Product Type								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)		June 30, 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		$	394	2.80	%	0.18	%				$	459		2.44	%	0.21	%	Residential mortgage	$	353	2.68	%	0.16	%	$	459	2.44	%	0.21	%
Home equity	Home equity		203		1.44		0.67					399			2.12		1.16		Home equity	202		1.54		0.70		399		2.12		1.16
Credit card	Credit card		6,234		44.22		8.25					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		555		3.93		0.57					752			4.00		0.82		Direct/Indirect consumer	541		4.11		0.54		752		4.00		0.82
Other consumer	Other consumer		46		0.33		n/m					41			0.22		n/m		Other consumer	43		0.33		n/m		41		0.22		n/m
Total consumer	Total consumer		7,432		52.72		1.78					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)		3,529		25.04		1.10					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		1,091		7.74		1.11					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		1,956		13.88		3.28					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		87		0.62		0.55					162			0.86		0.95		Commercial lease financing	73		0.55		0.48		162		0.86		0.95
Total commercial	Total commercial		6,663		47.28		1.35					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		14,095		100.00	%	1.55					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		1,687									1,878							Reserve for unfunded lending commitments	1,538						1,878
Allowance for credit losses	Allowance for credit losses		$	15,782								$	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 ~~June~~September 30, 2021 and December 31, 2020.

n/m = not meaningful

Net charge-offs for the three and ~~six~~nine months ended ~~June~~September 30, 2021 were ~~$595~~$463 million and ~~$1.4~~$1.9 billion compared to ~~$1.1 billion~~$972 million and ~~$2.3~~$3.2 billion for the same periods in 2020 driven by decreases across most products. The provision for credit losses decreased ~~$6.7~~$2.0 billion to a ~~$1.6 billion~~$624 million benefit, and ~~$13.4~~$15.4 billion to a ~~$3.5~~$4.1 billion benefit, for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same periods in 2020. The allowance for credit losses had a reserve release of ~~$4.9~~$6.0 billion for the ~~six~~nine months ended ~~June~~September 30, 2021, primarily driven by ~~an improved~~improvements in the macroeconomic ~~outlook.~~outlook and credit quality. The provision for credit losses for the consumer portfolio, including unfunded lending commitments, decreased ~~$3.3~~$214 million to an expense of $81 million and $6.4 billion to a ~~$707 million~~ benefit ~~and $6.2~~of $1.4 billion ~~to a $1.5 billion benefit~~ for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared ~~to the~~

to the same periods in 2020. The provision for credit losses for the commercial portfolio, including unfunded lending commitments, decreased ~~$3.4~~$1.8 billion to a ~~$914~~$705 million benefit and ~~$7.2~~$9.0 billion to a ~~$2.0~~$2.7 billion benefit for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to the same periods in 2020.

Table 39 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for the three and ~~six~~nine months ended ~~June~~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.

41Bank of America


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

			Three Months Ended June 30						Six Months Ended June 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

Allowance for loan and lease losses, January 1	Allowance for loan and lease losses, January 1		$	16,168		$	15,766		$	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		(11)			(12)			(20)			(23)			Residential mortgage		(7)			(5)			(27)			(28)
Home equity	Home equity		(19)			(15)			(25)			(39)			Home equity		(8)			(8)			(33)			(47)
Credit card	Credit card		(661)			(818)			(1,461)			(1,742)			Credit card		(495)			(665)			(1,956)			(2,407)
Direct/Indirect consumer	Direct/Indirect consumer		(68)			(86)			(170)			(202)			Direct/Indirect consumer		(59)			(75)			(229)			(277)
Other consumer	Other consumer		(70)			(81)			(145)			(162)			Other consumer		(72)			(70)			(217)			(232)
Total consumer charge-offs	Total consumer charge-offs		(829)			(1,012)			(1,821)			(2,168)			Total consumer charge-offs		(641)			(823)			(2,462)			(2,991)
U.S. commercial (1)	U.S. commercial (1)		(194)			(324)			(350)			(591)			U.S. commercial (1)		(159)			(279)			(509)			(870)
Non-U.S. commercial	Non-U.S. commercial		(16)			(33)			(42)			(34)			Non-U.S. commercial		(2)			(57)			(44)			(91)
Commercial real estate	Commercial real estate		(22)			(57)			(34)			(64)			Commercial real estate		(4)			(106)			(38)			(170)
Commercial lease financing	Commercial lease financing		—			(33)			—			(40)			Commercial lease financing		—			(28)			—			(68)
Total commercial charge-offs	Total commercial charge-offs		(232)			(447)			(426)			(729)			Total commercial charge-offs		(165)			(470)			(591)			(1,199)
Total loans and leases charged off	Total loans and leases charged off		(1,061)			(1,459)			(2,247)			(2,897)			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		17			32			30			44			Residential mortgage		14			11			44			55
Home equity	Home equity		43			29			84			64			Home equity		42			28			126			92
Credit card	Credit card		173			153			339			307			Credit card		174			156			513			463
Direct/Indirect consumer	Direct/Indirect consumer		77			60			148			136			Direct/Indirect consumer		77			57			225			193
Other consumer	Other consumer		6			4			14			11			Other consumer		5			7			19			18
Total consumer recoveries	Total consumer recoveries		316			278			615			562			Total consumer recoveries		312			259			927			821
U.S. commercial (2)	U.S. commercial (2)		143			32			206			61			U.S. commercial (2)		25			58			231			119
Non-U.S. commercial	Non-U.S. commercial		2			1			2			1			Non-U.S. commercial		1			—			3			1
Commercial real estate	Commercial real estate		5			—			6			1			Commercial real estate		4			—			10			1
Commercial lease financing	Commercial lease financing		—			2			—			4			Commercial lease financing		1			4			1			8
Total commercial recoveries	Total commercial recoveries		150			35			214			67			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		466			313			829			629			Total recoveries of loans and leases previously charged off		343			321			1,172			950
Net charge-offs	Net charge-offs		(595)			(1,146)			(1,418)			(2,268)			Net charge-offs		(463)			(972)			(1,881)			(3,240)

Provision for loan and lease losses	Provision for loan and lease losses		(1,480)			4,775			(3,291)			9,300			Provision for loan and lease losses		(475)			1,180			(3,766)			10,480
Other	Other		2			(6)			2			(1)			Other		(2)			(1)			—			(2)

Allowance for loan and lease losses, June 30			14,095			19,389			14,095			19,389
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		1,829			1,360			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		(141)			342			(190)			578			Provision for unfunded lending commitments		(149)			209			(339)			787
Other	Other		(1)			—			(1)			1			Other		—			(1)			(1)			—
Reserve for unfunded lending commitments, June 30			1,687			1,702			1,687			1,702
Allowance for credit losses, June 30			$	15,782		$	21,091		$	15,782		$	21,091
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 June 30			$	911,978		$	989,768		$	911,978		$	989,768
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at June 30			1.55		%	1.96		%	1.55		%	1.96		%
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at June 30			1.78			2.43			1.78			2.43
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at June 30			1.35			1.57			1.35			1.57
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		$	900,863		$	1,022,294		$	901,223		$	1,001,972		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		0.27		%	0.45		%	0.32		%	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 June 30			287			441			287			441
Ratio of the allowance for loan and lease losses at June 30 to net charge-offs			5.90			4.21			4.93			4.25
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 June 30 (4)			$	7,532		$	10,517		$	7,532		$	10,517
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4)			134		%	202		%	134		%	202		%
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 ~~$102~~$137 million and ~~$203~~$343 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$84~~$77 million and ~~$170~~$247 million for the same periods in 2020.

(2)Includes U.S. small business commercial recoveries of ~~$20~~$18 million and ~~$40~~$61 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$11~~$10 million and ~~$22~~$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

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 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 40 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 40 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 40 presents period-end, average, high and low daily trading VaR for the three months ended September 30, 2021, June 30, 2021 ~~March 31, 2021~~ and ~~June~~September 30, 2020 using a 99 percent confidence level, as well as average daily trading VaR for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020. The amounts disclosed in Table 40 and Table 41 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 ~~increased~~decreased for the three months ended ~~June~~September 30, 2021 compared to the ~~prior quarter~~prior-year period primarily due to an increase in ~~interest rate risk, partially offset by an increased~~ diversification benefit between asset classes.


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

			Three Months Ended																																																			Six Months Ended June 30													Three Months Ended																																																																	Nine Months Ended September 30
					Six Months Ended June 30											Nine Months Ended September 30
			June 30, 2021								March 31, 2021														June 30, 2020																																						September 30, 2021																					June 30, 2021																								September 30, 2020
(Dollars in millions)	(Dollars in millions)		Period End							Low (1)			Period End	High (1)											Low (1)						Period End						Average						High (1)						Low (1)						2021 Average						2020 Average			(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		$	15				$	16		$	20		$	10						$	13					$	10					$	17					$	5					$	5					$	7					$	11					$	4				$	13				$	7	Foreign exchange					$	12					$	13					$	21					$	9					$	15					$	16					$	20					$	10					$	7					$	7					$	25					$	5				$	13	$	7
Interest rate	Interest rate		37				58			80			30				53			35						53						18						17						15						23						7						47					18			Interest rate				33					32						48						20						37						58						80						30						14						18						27						13						42					18
Credit	Credit		77		73			84			58			58					64					82						53						64						65						91						48						69						50		Credit				72					66						80						54						77						73						84						58						61						62						68						54						68						54
Equity	Equity		23		23			27			20			22				24					35						19						16						24						43						15						24						30		Equity				32					24						32						19						23						23						27						20						16						17						22						12						24						26
Commodities	Commodities		9		8			12			4			4				9					28						4						7						7						12						5						9						7		Commodities				6					8						11						5						9						8						12						4						4						6						10						4						8						6
Portfolio diversification	Portfolio diversification		(106)		(119)			—			—			(96)				(90)					—						—						(39)						(60)						—						—						(106)						(59)		Portfolio diversification				(94)					(91)						—						—						(106)						(119)						—						—						(71)						(56)						—						—						(101)						(58)
Total covered positions portfolio	Total covered positions portfolio		55		59			73			47			54				52					85						34						70						58						85						28						56						53		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		23		18			—			—			9				22					—						—						30						23						—						—						20						12		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		78		77			119			52			63				74					125						47						100						81						111						47						76						65		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		50		50			55			42			48				56					64						37						56						67						84						55						53						42		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		14		16			17			14			15				13					16						11						15						15						17						12						15						13		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		(34)		(37)			—			—			(33)				(24)					—						—						(36)						(31)						—						—						(31)						(21)		Fair value option portfolio diversification				(44)					(36)						—						—						(34)						(37)						—						—						(27)						(32)						—						—						(32)						(24)
Total fair value option portfolio	Total fair value option portfolio		30		29			31			24			30				45					53						30						35						51						86						34						37						34		Total fair value option portfolio				24					26						33						23						30						29						31						24						55						43						58						34						33						37
Portfolio diversification	Portfolio diversification		(14)		(9)			—			—			(19)				(1)					—						—						(16)						(12)						—						—						(5)						(12)		Portfolio diversification				(21)					(12)						—						—						(14)						(9)						—						—						(10)						(18)						—						—						(7)						(14)
Total market-based portfolio	Total market-based portfolio		$	94	$	97		146			64			$	74			$	118				169						62						$	119					$	120					159						76						$	108					$	87	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 40.

43Bank of America

Additional VaR statistics produced within our single VaR model are provided in Table 41 at the same level of detail as in Table 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 41 presents average trading VaR statistics at 99 percent and 95

percent confidence levels for the three months ended September 30, 2021, June 30, 2021 ~~March 31, 2021~~ and ~~June~~September 30, 2020.


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

			Three Months Ended														Three Months Ended
			June 30, 2021				March 31, 2021				June 30, 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		$	16	$	9	$	10	$	6	$	7	$	4	Foreign exchange		$	13	$	9	$	16	$	9	$	7	$	4
Interest rate	Interest rate		58		28		35		17		15		6		Interest rate		32		16		58		28		18		8
Credit	Credit		73		21		64		18		65		18		Credit		66		20		73		21		62		18
Equity	Equity		23		12		24		12		24		12		Equity		24		11		23		12		17		9
Commodities	Commodities		8		4		9		4		7		4		Commodities		8		4		8		4		6		3
Portfolio diversification	Portfolio diversification		(119)		(44)		(90)		(34)		(60)		(25)		Portfolio diversification		(91)		(35)		(119)		(44)		(56)		(25)
Total covered positions portfolio	Total covered positions portfolio		59		30		52		23		58		19		Total covered positions portfolio		52		25		59		30		54		17
Impact from less liquid exposures	Impact from less liquid exposures		18		2		22		3		23		2		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		77		32		74		26		81		21		Total covered positions and less liquid trading positions portfolio		78		28		77		32		109		22
Fair value option loans	Fair value option loans		50		11		56		14		67		15		Fair value option loans		45		10		50		11		62		14
Fair value option hedges	Fair value option hedges		16		9		13		7		15		8		Fair value option hedges		17		9		16		9		13		6
Fair value option portfolio diversification	Fair value option portfolio diversification		(37)		(10)		(24)		(6)		(31)		(12)		Fair value option portfolio diversification		(36)		(9)		(37)		(10)		(32)		(7)
Total fair value option portfolio	Total fair value option portfolio		29		10		45		15		51		11		Total fair value option portfolio		26		10		29		10		43		13
Portfolio diversification	Portfolio diversification		(9)		(6)		(1)		(8)		(12)		(7)		Portfolio diversification		(12)		(6)		(9)		(6)		(18)		(7)
Total market-based portfolio	Total market-based portfolio		$	97	$	36	$	118	$	33	$	120	$	25	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 ~~six~~nine months ended ~~June~~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 ~~June~~September 30, 2021 compared to the three months ended June 30, 2021 and March 31, 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. ~~This~~

~~compares to~~During the three months ended March 31, 2021, ~~where~~ positive trading-related revenue was recorded for 98 percent of the trading days, of which 94 percent were daily trading gains of over $25 million.

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


Table 42	Table 42	Forward Rates							Table 42	Forward Rates

			June 30, 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	%	0.15	%	1.44	%	Spot rates		0.25	%	0.13	%	1.51	%
12-month forward rates	12-month forward rates		0.25		0.27		1.65		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 43 shows the pretax impact to forecasted net interest income over the next 12 months from ~~June~~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 ~~six~~nine months ended ~~June~~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 22.


Table 43	Table 43	Estimated Banking Book Net Interest Income Sensitivity to Curve Changes										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)				June 30 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		$	8,035											$	10,468	+100 bps instantaneous shift			+100				+100				$	7,163	$	10,468
-25 bps instantaneous shift	-25 bps instantaneous shift		-25		-25		(2,255)						(2,766)			-25 bps instantaneous shift				-25			-25				(2,031)				(2,766)
Flatteners	Flatteners											Flatteners
Short-end instantaneous change	Short-end instantaneous change		+100	—		5,556				6,321		Short-end instantaneous change						+100				—				4,931				6,321
Long-end instantaneous change	Long-end instantaneous change		—	-25		(1,219)				(1,686)		Long-end instantaneous change					—				-25				(1,064)				(1,686)
Steepeners	Steepeners											Steepeners
Short-end instantaneous change	Short-end instantaneous change		-25	—		(1,014)				(1,084)		Short-end instantaneous change					-25				—				(942)				(1,084)
Long-end instantaneous change	Long-end instantaneous change		—	+100		2,651				4,333		Long-end instantaneous change					—				+100				2,440				4,333

The sensitivity analysis in Table 43 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 43 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 43. The Corporation also uses foreign currency derivatives in accounting hedges to manage substantially all of the foreign exchange risk of our foreign operations. By hedging the foreign exchange risk of our foreign operations, the Corporation's market risk exposure in this area is insignificant.

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

Mortgage Banking Risk Management

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

45Bank of America

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

During the three and ~~six~~nine months ended ~~June~~September 30, 2021, we recorded gains of $9$13 million and ~~$22~~$35 million related to the change in fair value of the MSRs, IRLCs and LHFS, net of gains and losses on the hedge portfolio, compared to gains of ~~$65~~$85 million and ~~$228~~$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.

~~Goodwill and Intangible Assets~~

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

Table 44 Goodwill by Reporting Unit
(Dollars in millions) June 30
2021 December 31
2020
Consumer Banking
   Consumer Lending $ 11,723 $ 11,709
   Deposits 18,414 18,414
Global Wealth and Investment Management
   Private Bank 2,918 2,918
   Merrill Lynch Global Wealth Management 6,759 6,759
Global Banking
   Global Commercial Banking 16,204 16,146
   Global Corporate and Investment Banking (1)
6,277 6,277
   Business Banking 1,546 1,546
Global Markets 5,182 5,182
Total $ 69,023 $ 68,951

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

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

47Bank of America

Non-GAAP Reconciliations

Table 4544 provides reconciliations of certain non-GAAP financial measures to the most closely related GAAP financial measures.


Table 45		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

			June 30 2021		December 31 2020				Three Months Ended June 30								Six Months Ended June 30												September 30 2021				December 31 2020				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

Shareholders’ equity	Shareholders’ equity		$	277,119			$	272,924			$	274,632			$	266,316			$	274,341			$	265,425				Shareholders’ equity			$	272,464			$	272,924			$	275,484			$	267,323			$	274,726			$	266,062
Goodwill	Goodwill		(69,023)		(68,951)				(69,023)				(68,951)				(68,987)				(68,951)					Goodwill					(69,023)				(68,951)				(69,023)				(68,951)				(68,999)				(68,951)
Intangible assets (excluding MSRs)	Intangible assets (excluding MSRs)		(2,192)		(2,151)				(2,212)				(1,640)				(2,179)				(1,648)					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				915				790				917				759					Related deferred tax liabilities			913				920				915				855				916				791
Tangible shareholders’ equity	Tangible shareholders’ equity		$	206,819	$	202,742			$	204,312			$	196,515			$	204,092			$	195,585				Tangible shareholders’ equity			$	202,182			$	202,742			$	205,191			$	197,251			$	204,462			$	196,144
Preferred stock	Preferred stock		(23,441)		(24,510)				(23,684)				(23,427)				(24,039)				(23,442)					Preferred stock			(23,441)				(24,510)				(23,441)				(23,427)				(23,837)				(23,437)
Tangible common shareholders’ equity	Tangible common shareholders’ equity		$	183,378	$	178,232			$	180,628			$	173,088			$	180,053			$	172,143				Tangible common shareholders’ equity			$	178,741			$	178,232			$	181,750			$	173,824			$	180,625			$	172,707

Total assets	Total assets		$	3,029,894	$	2,819,627																				Total assets			$	3,085,446			$	2,819,627
Goodwill	Goodwill		(69,023)		(68,951)																					Goodwill			(69,023)				(68,951)
Intangible assets (excluding MSRs)	Intangible assets (excluding MSRs)		(2,192)		(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		$	2,959,594	$	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 7.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

See Market Risk Management on page 4243 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 ~~June~~September 30, 2021, that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

47Bank of America

Part I. Financial Information

Item 1. Financial Statements

Bank of America Corporation and Subsidiaries

																			Consolidated Statement of Income
		Three Months Ended June 30				Six Months Ended June 30					Three Months Ended September 30				Nine Months Ended September 30
(In millions, except per share information)	(In millions, except per share information)	2021		2020		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	$	11,387	$	12,540	$	22,782	$	28,638	Interest income	$	12,336	$	11,486	$	35,118	$	40,124
Interest expense	Interest expense	1,154		1,692		2,352		5,660		Interest expense	1,242		1,357		3,594		7,017
Net interest income	Net interest income	10,233		10,848		20,430		22,978		Net interest income	11,094		10,129		31,524		33,107

Noninterest income	Noninterest income									Noninterest income
Fees and commissions	Fees and commissions	9,705		8,392		19,241		16,713		Fees and commissions	9,915		8,777		29,156		25,490
Market making and similar activities	Market making and similar activities	1,826		2,487		5,355		5,294		Market making and similar activities	2,005		1,689		7,360		6,983
Other income	Other income	(298)		599		(739)		108		Other income	(248)		(259)		(987)		(151)
Total noninterest income	Total noninterest income	11,233		11,478		23,857		22,115		Total noninterest income	11,672		10,207		35,529		32,322
Total revenue, net of interest expense	Total revenue, net of interest expense	21,466		22,326		44,287		45,093		Total revenue, net of interest expense	22,766		20,336		67,053		65,429

Provision for credit losses	Provision for credit losses	(1,621)		5,117		(3,481)		9,878		Provision for credit losses	(624)		1,389		(4,105)		11,267

Noninterest expense	Noninterest expense									Noninterest expense
Compensation and benefits	Compensation and benefits	8,653		7,994		18,389		16,335		Compensation and benefits	8,714		8,200		27,103		24,535
Occupancy and equipment	Occupancy and equipment	1,759		1,802		3,589		3,504		Occupancy and equipment	1,764		1,798		5,353		5,302
Information processing and communications	Information processing and communications	1,448		1,265		2,873		2,474		Information processing and communications	1,416		1,333		4,289		3,807
Product delivery and transaction related	Product delivery and transaction related	976		811		1,953		1,588		Product delivery and transaction related	987		930		2,940		2,518
Marketing	Marketing	810		492		1,181		930		Marketing	347		308		1,528		1,238
Professional fees	Professional fees	426		381		829		756		Professional fees	434		450		1,263		1,206
Other general operating	Other general operating	973		665		1,746		1,298		Other general operating	778		1,382		2,524		2,680

Total noninterest expense	Total noninterest expense	15,045		13,410		30,560		26,885		Total noninterest expense	14,440		14,401		45,000		41,286
Income before income taxes	Income before income taxes	8,042		3,799		17,208		8,330		Income before income taxes	8,950		4,546		26,158		12,876
Income tax expense	Income tax expense	(1,182)		266		(66)		787		Income tax expense	1,259		(335)		1,193		452
Net income	Net income	$	9,224	$	3,533	$	17,274	$	7,543	Net income	$	7,691	$	4,881	$	24,965	$	12,424
Preferred stock dividends	Preferred stock dividends	260		249		750		718		Preferred stock dividends	431		441		1,181		1,159
Net income applicable to common shareholders	Net income applicable to common shareholders	$	8,964	$	3,284	$	16,524	$	6,825	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	$	1.04	$	0.38	$	1.91	$	0.78	Earnings	$	0.86	$	0.51	$	2.77	$	1.29
Diluted earnings	Diluted earnings	1.03		0.37		1.90		0.77		Diluted earnings	0.85		0.51		2.75		1.28

Average common shares issued and outstanding	Average common shares issued and outstanding	8,620.8		8,739.9		8,660.4		8,777.6		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	8,735.5		8,768.1		8,776.2		8,813.3		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 June 30				Six Months Ended June 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
Net income	Net income	$	9,224	$	3,533	$	17,274	$	7,543	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	(250)		(102)		(1,090)		4,693		Net change in debt securities	(153)		101		(1,243)		4,794
Net change in debit valuation adjustments	Net change in debit valuation adjustments	149		(1,293)		265		53		Net change in debit valuation adjustments	27		(58)		292		(5)
Net change in derivatives	Net change in derivatives	415		315		(699)		732		Net change in derivatives	(431)		76		(1,130)		808
Employee benefit plan adjustments	Employee benefit plan adjustments	69		57		120		100		Employee benefit plan adjustments	50		44		170		144
Net change in foreign currency translation adjustments	Net change in foreign currency translation adjustments	26		(19)		(3)		(107)		Net change in foreign currency translation adjustments	(26)		21		(29)		(86)
Other comprehensive income (loss)	Other comprehensive income (loss)	409		(1,042)		(1,407)		5,471		Other comprehensive income (loss)	(533)		184		(1,940)		5,655
Comprehensive income	Comprehensive income	$	9,633	$	2,491	$	15,867	$	13,014	Comprehensive income	$	7,158	$	5,065	$	23,025	$	18,079

See accompanying Notes to Consolidated Financial Statements.


						~~Bank of America~~48

~~Bank of America Corporation and Subsidiaries~~

Consolidated Balance Sheet
June 30 December 31
(Dollars in millions) 2021 2020
Assets
Cash and due from banks $ 30,327 $ 36,430
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks 229,703 344,033
Cash and cash equivalents 260,030 380,463
Time deposits placed and other short-term investments 7,356 6,546
Federal funds sold and securities borrowed or purchased under agreements to resell
   (includes $163,344 and $108,856 measured at fair value)
268,594 304,058
Trading account assets (includes $114,268 and $91,510 pledged as collateral)
291,733 198,854
Derivative assets 41,498 47,179
Debt securities:
Carried at fair value 288,913 246,601
Held-to-maturity, at cost (fair value – $650,025 and $448,180)
651,401 438,249
Total debt securities 940,314 684,850
Loans and leases (includes $6,950 and $6,681 measured at fair value)
918,928 927,861
Allowance for loan and lease losses (14,095) (18,802)
Loans and leases, net of allowance 904,833 909,059
Premises and equipment, net 10,747 11,000
Goodwill 69,023 68,951
Loans held-for-sale (includes $2,207 and $1,585 measured at fair value)
8,277 9,243
Customer and other receivables 67,967 64,221
Other assets (includes $14,928 and $15,718 measured at fair value)
159,522 135,203
Total assets $ 3,029,894 $ 2,819,627
Liabilities
Deposits in U.S. offices:
Noninterest-bearing $ 719,481 $ 650,674
Interest-bearing (includes $515 and $481 measured at fair value)
1,076,355 1,038,341
Deposits in non-U.S. offices:
Noninterest-bearing 25,190 17,698
Interest-bearing 88,116 88,767
Total deposits 1,909,142 1,795,480
Federal funds purchased and securities loaned or sold under agreements to repurchase
   (includes $165,781 and $135,391 measured at fair value)
213,787 170,323
Trading account liabilities 110,084 71,320
Derivative liabilities 38,916 45,526
Short-term borrowings (includes $4,490 and $5,874 measured at fair value)
21,635 19,321
Accrued expenses and other liabilities (includes $15,174 and $16,311 measured at fair value
   and $1,687 and $1,878 of reserve for unfunded lending commitments)
184,607 181,799
Long-term debt (includes $30,361 and $32,200 measured at fair value)
274,604 262,934
Total liabilities 2,752,775 2,546,703
Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities
   and Note 10 – Commitments and Contingencies)
0 0
Shareholders’ equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,887,686 and 3,931,440 shares
23,441 24,510
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares;
   issued and outstanding – 8,487,151,465 and 8,650,814,105 shares
79,242 85,982
Retained earnings 177,499 164,088
Accumulated other comprehensive income (loss) (3,063) (1,656)
Total shareholders’ equity 277,119 272,924
Total liabilities and shareholders’ equity $ 3,029,894 $ 2,819,627
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets $ 4,418 $ 5,225
Loans and leases 16,970 23,636
Allowance for loan and lease losses (1,047) (1,693)
Loans and leases, net of allowance 15,923 21,943
All other assets 1,134 1,387
Total assets of consolidated variable interest entities $ 21,475 $ 28,555
Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings (includes $37 and $22 of non-recourse short-term borrowings)
$ 324 $ 454
Long-term debt (includes $5,137 and $7,053 of non-recourse debt)
5,137 7,053
All other liabilities (includes $15 and $16 of non-recourse liabilities)
15 16
Total liabilities of consolidated variable interest entities $ 5,476 $ 7,523

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


49 Bank of America

Bank of America Corporation and Subsidiaries

Consolidated Statement of Changes in Shareholders’ Equity
Preferred
Stock Common Stock and
Additional Paid-in Capital Retained
Earnings Accumulated
Other
Comprehensive
Income (Loss) Total
Shareholders’
Equity
(In millions) Shares Amount
Balance, March 31, 2021 $ 24,319 8,589.7 $ 83,071 $ 170,082 $ (3,472) $ 274,000
Net income 9,224 9,224
Net change in debt securities (250) (250)
Net change in debit valuation adjustments 149 149
Net change in derivatives 415 415
Employee benefit plan adjustments 69 69
Net change in foreign currency translation adjustments 26 26
Dividends declared:
Common (1,547) (1,547)
Preferred (260) (260)
Redemption of preferred stock (878) (878)
Common stock issued under employee plans, net, and other 0.2 380 380
Common stock repurchased (102.7) (4,209) (4,209)
Balance, June 30, 2021 $ 23,441 8,487.2 $ 79,242 $ 177,499 $ (3,063) $ 277,119
Balance, December 31, 2020 $ 24,510 8,650.8 $ 85,982 $ 164,088 $ (1,656) $ 272,924
Net income 17,274 17,274
Net change in debt securities (1,090) (1,090)
Net change in debit valuation adjustments 265 265
Net change in derivatives (699) (699)
Employee benefit plan adjustments 120 120
Net change in foreign currency translation adjustments (3) (3)
Dividends declared:
Common (3,110) (3,110)
Preferred (750) (750)
Issuance of preferred stock 902 902
Redemption of preferred stock (1,971) (1,971)
Common stock issued under employee plans, net, and other 40.1 939 (3) 936
Common stock repurchased (203.7) (7,679) (7,679)
Balance, June 30, 2021 $ 23,441 8,487.2 $ 79,242 $ 177,499 $ (3,063) $ 277,119
Balance, March 31, 2020 $ 23,427 8,675.5 $ 85,745 $ 155,866 $ (120) $ 264,918
Net income 3,533 3,533
Net change in debt securities (102) (102)
Net change in debit valuation adjustments (1,293) (1,293)
Net change in derivatives 315 315
Employee benefit plan adjustments 57 57
Net change in foreign currency translation adjustments (19) (19)
Dividends declared:
Common (1,572) (1,572)
Preferred (249) (249)
Common stock issued under employee plans, net, and other 0.1 335 335
Common stock repurchased (11.5) (286) (286)
Balance, June 30, 2020 $ 23,427 8,664.1 $ 85,794 $ 157,578 $ (1,162) $ 265,637
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 (2,406) (2,406)
Net income 7,543 7,543
Net change in debt securities 4,693 4,693
Net change in debit valuation adjustments 53 53
Net change in derivatives 732 732
Employee benefit plan adjustments 100 100
Net change in foreign currency translation adjustments (107) (107)
Dividends declared:
Common (3,151) (3,151)
Preferred (718) (718)
Issuance of preferred stock 1,098 1,098
Redemption of preferred stock (1,072) (1,072)
Common stock issued under employee plans, net, and other 39.8 719 (9) 710
Common stock repurchased (211.8) (6,648) (6,648)
Balance, June 30, 2020 $ 23,427 8,664.1 $ 85,794 $ 157,578 $ (1,162) $ 265,637



Consolidated Balance Sheet


		September 30		December 31
(Dollars in millions)		2021		2020
Assets
Cash and due from banks		$	28,689	$	36,430
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		251,165		344,033
Cash and cash equivalents		279,854		380,463
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 $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)		288,566		198,854
Derivative assets		40,829		47,179
Debt securities:
Carried at fair value		285,377		246,601
Held-to-maturity, at cost (fair value – $678,333 and $448,180)		683,240		438,249
Total debt securities		968,617		684,850
Loans and leases (includes $7,566 and $6,681 measured at fair value)		927,736		927,861
Allowance for loan and lease losses		(13,155)		(18,802)
Loans and leases, net of allowance		914,581		909,059
Premises and equipment, net		10,684		11,000
Goodwill		69,023		68,951
Loans held-for-sale (includes $3,982 and $1,585 measured at fair value)		9,415		9,243
Customer and other receivables		74,998		64,221
Other assets (includes $11,031 and $15,718 measured at fair value)		160,427		135,203
Total assets		$	3,085,446	$	2,819,627

Liabilities
Deposits in U.S. offices:
Noninterest-bearing		$	753,107	$	650,674
Interest-bearing (includes $542 and $481 measured at fair value)		1,108,490		1,038,341
Deposits in non-U.S. offices:
Noninterest-bearing		25,336		17,698
Interest-bearing		77,871		88,767
Total deposits		1,964,804		1,795,480
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		112,217		71,320
Derivative liabilities		38,062		45,526
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)		191,572		181,799
Long-term debt (includes $28,696 and $32,200 measured at fair value)		278,621		262,934
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)		0		0
Shareholders’ equity
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		69,612		85,982
Retained earnings		183,007		164,088
Accumulated other comprehensive income (loss)		(3,596)		(1,656)

Total shareholders’ equity		272,464		272,924
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)
	Trading account assets	$	4,432	$	5,225


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

	All other assets	136		1,387
	Total assets of consolidated variable interest entities	$	20,431	$	28,555
	Liabilities of consolidated variable interest entities included in total liabilities above
	Short-term borrowings (includes $50 and $22 of non-recourse short-term borrowings)	$	330	$	454
	Long-term debt (includes $3,830 and $7,053 of non-recourse debt)	3,830		7,053
	All other liabilities (includes $10 and $16 of non-recourse liabilities)	10		16
	Total liabilities of consolidated variable interest entities	$	4,170	$	7,523

See accompanying Notes to Consolidated Financial Statements.


						Bank of America 50

Bank of America Corporation and Subsidiaries

Consolidated Statement of Cash Flows
Six Months Ended June 30
(Dollars in millions) 2021 2020
Operating activities
Net income $ 17,274 $ 7,543
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses (3,481) 9,878
Gains on sales of debt securities 0 (377)
Depreciation and amortization 930 880
Net amortization of premium/discount on debt securities 3,113 1,364
Deferred income taxes (1,457) (686)
Stock-based compensation 1,463 1,077
Loans held-for-sale:
Originations and purchases (17,031) (9,151)
Proceeds from sales and paydowns of loans originally classified as held for sale and instruments
from related securitization activities
16,708 10,963
Net change in:
Trading and derivative assets/liabilities (58,372) 1,065
Other assets (26,080) 611
Accrued expenses and other liabilities 2,300 (9,297)
Other operating activities, net 2,994 2,167
Net cash provided by (used in) operating activities (61,639) 16,037
Investing activities
Net change in:
Time deposits placed and other short-term investments (810) 1,036
Federal funds sold and securities borrowed or purchased under agreements to resell 35,464 (176,582)
Debt securities carried at fair value:
Proceeds from sales 1,809 18,945
Proceeds from paydowns and maturities 76,371 37,132
Purchases (126,653) (38,656)
Held-to-maturity debt securities:
Proceeds from paydowns and maturities 64,192 33,847
Purchases (277,949) (27,587)
Loans and leases:
Proceeds from sales of loans originally classified as held for investment and instruments
from related securitization activities
4,913 8,118
Purchases (2,097) (2,961)
Other changes in loans and leases, net 4,723 (30,066)
Other investing activities, net (1,649) (1,986)
Net cash used in investing activities (221,686) (178,760)
Financing activities
Net change in:
Deposits 113,662 283,863
Federal funds purchased and securities loaned or sold under agreements to repurchase 43,464 13,915
Short-term borrowings 2,314 (6,216)
Long-term debt:
Proceeds from issuance 48,177 30,704
Retirement (29,240) (20,876)
Preferred stock:
Proceeds from issuance 902 1,098
Redemption (1,971) (1,072)
Common stock repurchased (7,679) (6,648)
Cash dividends paid (3,945) (3,916)
Other financing activities, net (737) (573)
Net cash provided by financing activities 164,947 290,279
Effect of exchange rate changes on cash and cash equivalents (2,055) 230
Net increase (decrease) in cash and cash equivalents (120,433) 127,786
Cash and cash equivalents at January 1 380,463 161,560
Cash and cash equivalents at June 30 $ 260,030 $ 289,346



Consolidated Statement of Changes in Shareholders’ Equity

	Preferred Stock		Common Stock and Additional Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
(In millions)			Shares	Amount
Balance, June 30, 2021	$	23,441	8,487.2	$	79,242	$	177,499	$	(3,063)	$	277,119


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


Common stock issued under employee plans, net, and other			2.0	284		(3)				281
Common stock repurchased			(248.0)	(9,914)						(9,914)
Balance, September 30, 2021	$	23,441	8,241.2	$	69,612	$	183,007	$	(3,596)	$	272,464
Balance, December 31, 2020	$	24,510	8,650.8	$	85,982	$	164,088	$	(1,656)	$	272,924

Net income						24,965				24,965
Net change in debt securities								(1,243)		(1,243)
Net change in debit valuation adjustments								292		292
Net change in derivatives								(1,130)		(1,130)
Employee benefit plan adjustments								170		170
Net change in foreign currency translation adjustments								(29)		(29)
Dividends declared:
Common						(4,859)				(4,859)
Preferred						(1,181)				(1,181)
Issuance of preferred stock	902									902
Redemption of preferred stock	(1,971)									(1,971)

Common stock issued under employee plans, net, and other			42.2	1,223		(6)				1,217
Common stock repurchased			(451.8)	(17,593)						(17,593)
Balance, September 30, 2021	$	23,441	8,241.2	$	69,612	$	183,007	$	(3,596)	$	272,464

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

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


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

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						(2,406)				(2,406)
Net income						12,424				12,424
Net change in debt securities								4,794		4,794
Net change in debit valuation adjustments								(5)		(5)
Net change in derivatives								808		808
Employee benefit plan adjustments								144		144
Net change in foreign currency translation adjustments								(86)		(86)
Dividends declared:
Common						(4,722)				(4,722)
Preferred						(1,159)				(1,159)
Issuance of preferred stock	1,098									1,098
Redemption of preferred stock	(1,072)									(1,072)
Common stock issued under employee plans, net, and other			41.6	993		(9)				984
Common stock repurchased			(216.2)	(6,762)						(6,762)
Balance, September 30, 2020	$	23,427	8,661.5	$	85,954	$	160,447	$	(978)	$	268,850

See accompanying Notes to Consolidated Financial Statements.


51 Bank 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 America52

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.~~U.K. Tax Law ~~Change~~Changes

OnIn June ~~10,~~ 2021, the U.K. enacted the 2021 Finance Act, which increases the U.K. corporation income tax rate to 25 percent from 19 percent, effective April 1, 2023. 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 ~~second quarter of~~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 a corresponding positive income tax ~~adjustment.~~adjustments.

NOTE 2 Net Interest Income and Noninterest Income

The following table presents the Corporation’s net interest income and noninterest income disaggregated by revenue source for the three and ~~six~~nine months ended ~~June~~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.

53Bank of America


		Three Months Ended June 30	Six Months Ended June 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
Net interest income	Net interest income										Net interest income
Interest income	Interest income										Interest income
Loans and leases	Loans and leases		$	7,123	$	8,569	$	14,357	$	18,532	Loans and leases			$	7,502	$	7,894	$	21,859	$	26,426
Debt securities	Debt securities		2,820		2,440		5,550		5,283		Debt securities			3,282		2,130		8,832		7,413
Federal funds sold and securities borrowed or purchased under agreements to resell	Federal funds sold and securities borrowed or purchased under agreements to resell		(42)		26		(49)		845		Federal funds sold and securities borrowed or purchased under agreements to resell			6		55		(43)		900
Trading account assets	Trading account assets		954		1,008		1,826		2,255		Trading account assets			967		948		2,793		3,203
Other interest income	Other interest income		532		497		1,098		1,723		Other interest income			579		459		1,677		2,182
Total interest income	Total interest income		11,387		12,540		22,782		28,638		Total interest income			12,336		11,486		35,118		40,124

Interest expense	Interest expense										Interest expense
Deposits	Deposits		128		373		261		1,557		Deposits			133		227		394		1,784
Short-term borrowings	Short-term borrowings		(85)		(72)		(164)		1,048		Short-term borrowings			(41)		(24)		(205)		1,024
Trading account liabilities	Trading account liabilities		293		223		539		552		Trading account liabilities			285		212		824		764
Long-term debt	Long-term debt		818		1,168		1,716		2,503		Long-term debt			865		942		2,581		3,445
Total interest expense	Total interest expense		1,154		1,692		2,352		5,660		Total interest expense			1,242		1,357		3,594		7,017
Net interest income	Net interest income		$	10,233	$	10,848	$	20,430	$	22,978	Net interest income			$	11,094	$	10,129	$	31,524	$	33,107

Noninterest income	Noninterest income										Noninterest income
Fees and commissions	Fees and commissions										Fees and commissions
Card income	Card income										Card income
Interchange fees (1)	Interchange fees (1)		$	1,210	$	830	$	2,277	$	1,622	Interchange fees (1)			$	1,154	$	1,172	$	3,431	$	2,794
Other card income	Other card income		376		419		744		899		Other card income			429		396		1,173		1,295
Total card income	Total card income		1,586		1,249		3,021		2,521		Total card income			1,583		1,568		4,604		4,089
Service charges	Service charges										Service charges
Deposit-related fees	Deposit-related fees		1,557		1,299		3,052		2,926		Deposit-related fees			1,619		1,515		4,671		4,441
Lending-related fees	Lending-related fees		317		263		614		539		Lending-related fees			309		302		923		841
Total service charges	Total service charges		1,874		1,562		3,666		3,465		Total service charges			1,928		1,817		5,594		5,282
Investment and brokerage services	Investment and brokerage services										Investment and brokerage services
Asset management fees	Asset management fees		3,156		2,483		6,158		5,165		Asset management fees			3,276		2,740		9,434		7,905
Brokerage fees	Brokerage fees		967		939		2,028		2,015		Brokerage fees			960		883		2,988		2,898
Total investment and brokerage services	Total investment and brokerage services		4,123		3,422		8,186		7,180		Total investment and brokerage services			4,236		3,623		12,422		10,803
Investment banking fees	Investment banking fees										Investment banking fees
Underwriting income	Underwriting income		1,314		1,523		2,860		2,371		Underwriting income			1,168		1,239		4,028		3,610
Syndication fees	Syndication fees		401		230		701		501		Syndication fees			346		133		1,047		634
Financial advisory services	Financial advisory services		407		406		807		675		Financial advisory services			654		397		1,461		1,072
Total investment banking fees	Total investment banking fees		2,122		2,159		4,368		3,547		Total investment banking fees			2,168		1,769		6,536		5,316
Total fees and commissions	Total fees and commissions		9,705		8,392		19,241		16,713		Total fees and commissions			9,915		8,777		29,156		25,490
Market making and similar activities	Market making and similar activities		1,826		2,487		5,355		5,294		Market making and similar activities			2,005		1,689		7,360		6,983
Other income (loss)	Other income (loss)		(298)		599		(739)		108		Other income (loss)			(248)		(259)		(987)		(151)
Total noninterest income	Total noninterest income		$	11,233	$	11,478	$	23,857	$	22,115	Total noninterest income			$	11,672	$	10,207	$	35,529	$	32,322

(1)Gross interchange fees and merchant income were ~~$2.9~~$3.0 billion and ~~$2.0~~$2.4 billion for the three months ended ~~June~~September 30, 2021 and 2020 and are presented net of ~~$1.7~~$1.8 billion and ~~$1.2~~$1.4 billion of expenses for rewards and partner payments as well as certain other card costs for the same periods. Gross interchange fees and merchant income were ~~$5.4~~$8.3 billion and ~~$4.3~~$6.7 billion for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020 and are presented net of ~~$3.1~~$4.9 billion and ~~$2.7~~$4.1 billion of expenses for rewards and partner payments as well as certain other card costs for the same periods.

53Bank of America

NOTE 3 Derivatives

Derivative Balances

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

Derivatives to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K. The following tables present derivative instruments included on the Consolidated Balance Sheet in derivative assets and liabilities at ~~June~~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.


				June 30, 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	$	18,092.6	$	150.2	$	11.7	$	161.9	$	157.9	$	2.0	$	159.9	Swaps	$	19,675.2	$	141.9	$	9.4	$	151.3	$	148.6	$	2.4	$	151.0
Futures and forwards	Futures and forwards	4,488.2		1.5		0		1.5		1.4		0		1.4		Futures and forwards	4,142.2		2.8		—		2.8		2.7		—		2.7
Written options	Written options	1,687.0		0		0		0		31.1		0		31.1		Written options	1,746.8		—		—		—		29.5		—		29.5
Purchased options	Purchased options	1,725.1		35.0		0		35.0		0		0		0		Purchased options	1,637.3		33.4		—		33.4		—		—		—
Foreign exchange contracts	Foreign exchange contracts															Foreign exchange contracts
Swaps	Swaps	1,459.6		27.7		0.4		28.1		30.5		0.5		31.0		Swaps	1,433.9		27.6		0.4		28.0		30.7		0.3		31.0
Spot, futures and forwards	Spot, futures and forwards	4,548.5		36.7		0.6		37.3		35.0		0.1		35.1		Spot, futures and forwards	4,628.5		37.1		0.5		37.6		35.1		0.1		35.2
Written options	Written options	331.4		0		0		0		3.7		0		3.7		Written options	338.1		—		—		—		3.9		—		3.9
Purchased options	Purchased options	312.9		3.8		0		3.8		0		0		0		Purchased options	310.6		3.9		—		3.9		—		—		—
Equity contracts	Equity contracts															Equity contracts
Swaps	Swaps	388.6		12.0		0		12.0		14.6		0		14.6		Swaps	431.7		13.6		—		13.6		16.0		—		16.0
Futures and forwards	Futures and forwards	160.0		0.4		0		0.4		1.9		0		1.9		Futures and forwards	131.0		0.4		—		0.4		1.6		—		1.6
Written options	Written options	624.3		0		0		0		56.3		0		56.3		Written options	738.8		—		—		—		60.3		—		60.3
Purchased options	Purchased options	562.5		55.8		0		55.8		0		0		0		Purchased options	654.4		60.6		—		60.6		—		—		—
Commodity contracts	Commodity contracts															Commodity contracts
Swaps	Swaps	45.2		2.9		0		2.9		5.8		0		5.8		Swaps	50.2		4.5		—		4.5		7.7		—		7.7
Futures and forwards	Futures and forwards	78.9		2.3		0		2.3		1.4		0		1.4		Futures and forwards	91.7		2.3		0.3		2.6		1.1		0.6		1.7
Written options	Written options	36.6		0		0		0		2.7		0		2.7		Written options	41.9		—		—		—		4.0		—		4.0
Purchased options	Purchased options	30.7		3.0		0		3.0		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	356.4		1.7		0		1.7		5.2		0		5.2		Credit default swaps	375.2		1.8		—		1.8		5.0		—		5.0
Total return swaps/options	Total return swaps/options	71.1		0.2		0		0.2		1.1		0		1.1		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	333.4		5.0		0		5.0		1.5		0		1.5		Credit default swaps	358.3		5.0		—		5.0		1.5		—		1.5
Total return swaps/options	Total return swaps/options	79.0		1.2		0		1.2		0.5		0		0.5		Total return swaps/options	59.3		1.3		—		1.3		0.5		—		0.5
Gross derivative assets/liabilities	Gross derivative assets/liabilities			$	339.4	$	12.7	$	352.1	$	350.6	$	2.6	$	353.2	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							(278.3)						(278.3)		Less: Legally enforceable master netting agreements							(279.7)						(279.7)
Less: Cash collateral received/paid	Less: Cash collateral received/paid							(32.3)						(36.0)		Less: Cash collateral received/paid							(31.2)						(35.2)
Total derivative assets/liabilities	Total derivative assets/liabilities							$	41.5					$	38.9	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 $3.2 billion and ~~$304.9~~$326.9 billion at ~~June~~September 30, 2021.

55Bank 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 Statements of 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 ~~June~~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.

55Bank of America


Offsetting of Derivatives (1)	Offsetting of Derivatives (1)									Offsetting of Derivatives (1)

		Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities			Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
(Dollars in billions)	(Dollars in billions)	June 30, 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	$	189.4	$	182.8	$	247.7	$	243.5	Over-the-counter	$	177.6	$	171.7	$	247.7	$	243.5
Exchange-traded	Exchange-traded	0.1		0		0		0		Exchange-traded	0.1		—		—		—
Over-the-counter cleared	Over-the-counter cleared	7.3		6.9		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	66.6		67.4		92.2		96.5		Over-the-counter	67.2		68.3		92.2		96.5
Over-the-counter cleared	Over-the-counter cleared	1.0		0.9		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	29.9		31.0		31.3		28.3		Over-the-counter	30.7		32.5		31.3		28.3
Exchange-traded	Exchange-traded	35.6		35.0		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	5.6		7.1		3.5		5.0		Over-the-counter	8.4		9.5		3.5		5.0
Exchange-traded	Exchange-traded	1.3		1.6		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	5.6		5.5		5.2		5.6		Over-the-counter	5.8		5.5		5.2		5.6
Over-the-counter cleared	Over-the-counter cleared	2.4		2.4		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	297.1		293.8		379.9		378.9		Over-the-counter	289.7		287.5		379.9		378.9
Exchange-traded	Exchange-traded	37.0		36.6		33.0		31.7		Exchange-traded	44.9		44.5		33.0		31.7
Over-the-counter cleared	Over-the-counter cleared	10.8		10.3		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	(265.1)		(268.8)		(345.7)		(347.2)		Over-the-counter	(255.5)		(259.4)		(345.7)		(347.2)
Exchange-traded	Exchange-traded	(35.4)		(35.4)		(29.5)		(29.5)		Exchange-traded	(42.9)		(42.9)		(29.5)		(29.5)
Over-the-counter cleared	Over-the-counter cleared	(10.1)		(10.1)		(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	34.3		26.4		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)	7.2		12.5		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	41.5		38.9		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)	(14.2)		(13.3)		(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	$	27.3	$	25.6	$	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 ~~six~~nine months ended ~~June~~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 June 30, 2021				Three Months Ended June 30, 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)	$	3,484	$	(3,454)	$	475	$	(600)							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)	5		(5)		60		(60)								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)	(1,863)		1,825		(361)		356								Interest rate risk on available-for-sale securities (3)	867		(859)			139		(139)

Total	Total	$	1,626	$	(1,634)	$	174	$	(304)							Total	$	(840)	$	847		$	(1,305)	$	1,247

`	`	Six Months Ended June 30, 2021				Six Months Ended June 30, 2020								`	Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
		Derivative		Hedged Item		Derivative		Hedged Item									Derivative		Hedged Item			Derivative		Hedged Item
Interest rate risk on long-term debt (1)	Interest rate risk on long-term debt (1)	$	(4,579)	$	4,548	$	10,809	$	(10,876)							Interest rate 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)	(23)		21		565		(551)								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)	3,378		(3,325)		(711)		698								Interest rate risk on available-for-sale securities (3)	4,245		(4,184)			(572)		559

Total	Total	$	(1,224)	$	1,244	$	10,663	$	(10,729)							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 ~~six~~nine months ended ~~June~~September 30, 2021, the derivative amount includes gains (losses) of ~~$(17)~~$(11) million and ~~$(51)~~$(62) million in interest expense, ~~$23~~$(33) million and ~~$31~~$(2) million in market making and similar activities, and ~~$(1)~~$(5) million and ~~$(3)~~$(8) million in accumulated other comprehensive income (OCI). For the same periods in 2020, the derivative amount includes gains (losses) of ~~$(3)~~$(13) million and ~~$731~~$718 million in interest expense, ~~$63~~$95 million and ~~$(178)~~$(83) million in market making and similar activities, and $0$(3) million and ~~$12~~$9 million in accumulated 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.

57Bank 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

		June 30, 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)	$	171,872	$	6,742	$	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)	152,348		(2,876)		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)	366		0		427		15			Trading account assets (5)	590		—		427		15

(1)Increase (decrease) to carrying value.

(2)At ~~June~~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 ~~$1.0~~$1.2 billion and $3.7 billion and a decrease in the related asset of ~~$68~~$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 ~~June~~September 30, 2021 and December 31, 2020, the amortized cost of the closed portfolios used in these hedging relationships was ~~$26.8~~$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 ~~June~~September 30, 2021, the cumulative adjustment associated with these hedging relationships was a decrease of ~~$99~~$103 million. At December 31, 2020, the cumulative adjustment was insignificant.

(4)Carrying value represents amortized cost.

(5)Represents hedging activities related to certain commodities inventory.

Cash Flow and Net Investment Hedges

The table below summarizes certain information related to cash flow hedges and net investment hedges for the three and ~~six~~nine months ended ~~June~~September 30, 2021 and 2020. Of the ~~$273~~$704 million after-tax net loss ($~~365~~938 million pretax) on derivatives in accumulated OCI at ~~June~~September 30, 2021, gains of ~~$244~~$858 million after-tax ($~~330 million~~1.1 billion pretax) related to both open and terminated cash flow hedges are expected to be reclassified ~~into earnings~~

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

		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							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)					Three Months Ended June 30, 2021				Six Months Ended June 30, 2021						(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)					$	481	$	36	$	(576)		$	73		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)					92		6		(301)			15			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)					35		14		59			26			Price risk on certain compensation plans (2)			(2)		14		57		40
Total	Total					$	608	$	56	$	(818)		$	114		Total			$	(512)	$	57	$	(1,330)	$	171
Net investment hedges	Net investment hedges															Net investment hedges
Foreign exchange risk (3)	Foreign exchange risk (3)					$	(224)	$	0	$	503		$	0		Foreign exchange risk (3)			$	642	$	—	$	1,145	$	—

						Three Months Ended June 30, 2020				Six Months Ended June 30, 2020									Three Months Ended September 30, 2020				Nine Months Ended September 30, 2020
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)					$	320	$	(23)	$	911		$	(49)		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)					73		0		(9)			0			Price risk on certain compensation plans (2)			32		5		23		5
Total	Total					$	393	$	(23)	$	902		$	(49)		Total			$	115	$	13	$	1,017	$	(36)
Net investment hedges	Net investment hedges															Net investment hedges
Foreign exchange risk (3)	Foreign exchange risk (3)					$	(400)	$	1	$	968		$	1		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 ~~six~~nine months ended ~~June~~September 30, 2021, amounts excluded from effectiveness testing and recognized in market making and similar activities were losses of ~~$48~~$36 million and ~~$50~~$86 million. For the same periods in 2020 amounts excluded from effectiveness testing and recognized in other income were gains of ~~$75~~$10 million and ~~$105~~$115 million.

57Bank of America

Other Risk Management Derivatives

Other risk management derivatives are used by the Corporation to reduce certain risk exposures by economically hedging various assets and liabilities. The table below presents gains (losses) on these derivatives for the three and ~~six~~nine months ended ~~June~~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 June 30				Six Months Ended June 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
Interest rate risk on mortgage activities (1, 2)	Interest rate risk on mortgage activities (1, 2)	$	85	$	62	$	(105)	$	441		Interest rate risk on mortgage activities (1, 2)	$	10	$	73	$	(49)	$	601
Credit risk on loans (2)	Credit risk on loans (2)	(14)		(66)		(31)		22			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)	(318)		(1,017)		943		511			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)	318		603		598		(154)			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 $27 million and $46 million for the three and six months ended June 30, 2021 compared to $39 million and $87 million for the same periods in 2020.

(2)Gains (losses) on these derivatives are recorded in other income.

(3)Gains (losses) on these derivatives are recorded in market making and similar activities.

(4)Gains (losses) on these derivatives are recorded in compensation and benefits expense.

Transfers of Financial Assets with Risk Retained through Derivatives

The Corporation enters into certain transactions involving the transfer of financial assets that are accounted for as sales where substantially all of the economic exposure to the transferred financial assets is retained through derivatives (e.g., interest rate and/or credit), but the Corporation does not retain control over the assets transferred. At ~~June~~September 30, 2021 and December 31, 2020, the Corporation had transferred $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 ~~$5.0~~$4.9 billion and $5.2 billion at the transfer dates. At ~~June~~September 30, 2021 and December 31, 2020, the fair value of the transferred securities was ~~$5.3~~$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 ~~six~~nine months ended ~~June~~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		Market making and similar activities		Net Interest Income		Other (1)		Total
(Dollars in millions)	(Dollars in millions)	Three Months Ended June 30, 2021								Six Months Ended June 30, 2021								(Dollars in millions)	Three Months Ended September 30, 2021								Nine Months Ended September 30, 2021
Interest rate risk	Interest rate risk	$	44	$	463	$	40	$	547	$	416	$	926	$	97	$	1,439	Interest rate risk	$	180	$	442	$	43	$	665	$	590	$	1,350	$	141	$	2,081
Foreign exchange risk	Foreign exchange risk	330		(22)		2		310		736		(40)		6		702		Foreign exchange risk	345		(22)		2		325		1,082		(62)		7		1,027
Equity risk	Equity risk	1,178		(1)		442		1,619		2,460		35		957		3,452		Equity risk	1,196		(28)		433		1,601		3,657		7		1,389		5,053
Credit risk	Credit risk	435		424		175		1,034		1,237		787		289		2,313		Credit risk	248		458		158		864		1,491		1,263		446		3,200
Other risk (2)	Other risk (2)	(24)		(10)		26		(8)		584		(28)		45		601		Other risk (2)	45		(30)		45		60		627		(58)		91		660
Total sales and trading revenue	Total sales and trading revenue	$	1,963	$	854	$	685	$	3,502	$	5,433	$	1,680	$	1,394	$	8,507	Total sales and trading revenue	$	2,014	$	820	$	681	$	3,515	$	7,447	$	2,500	$	2,074	$	12,021

		Three Months Ended June 30, 2020								Six Months Ended June 30, 2020									Three Months Ended September 30, 2020								Nine Months Ended September 30, 2020
Interest rate risk	Interest rate risk	$	670	$	658	$	48	$	1,376	$	2,164	$	1,276	$	120	$	3,560	Interest rate risk	$	85	$	545	$	57	$	687	$	2,249	$	1,754	$	175	$	4,178
Foreign exchange risk	Foreign exchange risk	351		(3)		(12)		336		815		1		(5)		811		Foreign exchange risk	338		(10)		4		332		1,153		(8)		(2)		1,143
Equity risk	Equity risk	730		31		451		1,212		1,989		(91)		969		2,867		Equity risk	816		(7)		391		1,200		2,805		(99)		1,361		4,067
Credit risk	Credit risk	536		426		142		1,104		157		869		176		1,202		Credit risk	413		401		73		887		570		1,336		253		2,159
Other risk (2)	Other risk (2)	73		8		4		85		207		28		11		246		Other risk (2)	73		(7)		14		80		280		21		24		325
Total sales and trading revenue	Total sales and trading revenue	$	2,360	$	1,120	$	633	$	4,113	$	5,332	$	2,083	$	1,271	$	8,686	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 ~~$462~~$460 million and ~~$1.0~~$1.5 billion for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$470~~$430 million and ~~$1.0~~$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.

Credit derivative instruments where the Corporation is the seller of credit protection and their expiration at ~~June~~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
		June 30, 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	$	0	$	44	$	42	$	86	Investment grade	$	—	$	1	$	40	$	73	$	114
Non-investment grade	Non-investment grade	11		130		406		894		1,441		Non-investment grade	8		119		426		859		1,412
Total	Total	11		130		450		936		1,527		Total	8		120		466		932		1,526
Total return swaps/options:	Total return swaps/options:											Total return swaps/options:
Investment grade	Investment grade	31		0		0		0		31		Investment grade	18		—		—		—		18
Non-investment grade	Non-investment grade	134		333		0		0		467		Non-investment grade	88		353		5		—		446
Total	Total	165		333		0		0		498		Total	106		353		5		—		464
Total credit derivatives	Total credit derivatives	$	176	$	463	$	450	$	936	$	2,025	Total credit derivatives	$	114	$	473	$	471	$	932	$	1,990
Credit-related notes:	Credit-related notes:											Credit-related notes:
Investment grade	Investment grade	$	0	$	0	$	1	$	519	$	520	Investment grade	$	—	$	—	$	42	$	274	$	316
Non-investment grade	Non-investment grade	5		1		23		1,153		1,182		Non-investment grade	5		—		14		1,328		1,347
Total credit-related notes	Total credit-related notes	$	5	$	1	$	24	$	1,672	$	1,702	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	$	32,739	$	75,590	$	107,799	$	16,141	$	232,269	Investment grade	$	33,007	$	74,896	$	110,525	$	37,271	$	255,699
Non-investment grade	Non-investment grade	11,961		31,595		48,833		8,750		101,139		Non-investment grade	11,254		30,197		45,994		15,197		102,642
Total	Total	44,700		107,185		156,632		24,891		333,408		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	46,566		65		79		0		46,710		Investment grade	26,711		64		78		—		26,853
Non-investment grade	Non-investment grade	20,032		12,268		10		16		32,326		Non-investment grade	18,900		13,015		536		16		32,467
Total	Total	66,598		12,333		89		16		79,036		Total	45,611		13,079		614		16		59,320
Total credit derivatives	Total credit derivatives	$	111,298	$	119,518	$	156,721	$	24,907	$	412,444	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

59Bank of America

The notional amount represents the maximum amount payable by the Corporation for most credit derivatives. However, the Corporation does not monitor its exposure to credit derivatives based solely on the notional amount because this measure does not take into consideration the probability of occurrence. As such, the notional amount is not a reliable indicator of the Corporation’s exposure to these contracts. Instead, a risk framework is used to define risk tolerances and establish limits so that certain credit risk-related losses occur within acceptable, predefined limits.

Credit-related notes in the table above include investments in securities issued by collateralized debt obligation (CDO), collateralized loan obligation (CLO) and credit-linked note vehicles. These instruments are primarily classified as trading securities. The carrying value of these instruments equals the Corporation’s maximum exposure to loss. The Corporation is not obligated to make any payments to the entities under the terms of the securities owned.

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 ~~June~~September 30, 2021 and December 31, 2020, the Corporation held cash and securities collateral of ~~$85.8~~$87.2 billion and $96.5 billion and posted cash and securities collateral of ~~$76.9~~$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 ~~June~~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 ~~$2.6~~$2.4 billion, including ~~$1.4~~$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 ~~June~~September 30, 2021 and December 31, 2020, the liability recorded for these derivative contracts was not significant.

The table below presents the amount of additional collateral that would have been contractually required by derivative contracts and other trading agreements at ~~June~~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 and Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at June 30, 2021
Additional Collateral Required to be Posted and Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at 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					Additional collateral required to be posted upon downgrade
Bank of America Corporation	Bank of America Corporation	$	318	$	786	Bank of America Corporation	$	342	$	802
Bank of America, N.A. and subsidiaries (1)	Bank of America, N.A. and subsidiaries (1)	69		589		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 subject to unilateral termination upon downgrade
Derivative liabilities	Derivative liabilities	$	26	$	480	Derivative liabilities	$	22	$	764
Collateral posted	Collateral posted	11		313		Collateral posted	9		559

(1)Included in Bank of America Corporation collateral requirements in this table.

Valuation Adjustments on Derivatives

The table below presents credit valuation adjustment (CVA), DVA and FVA gains (losses) on derivatives (excluding the effect of any related hedge activities), which are recorded in market making and similar activities, for the three and ~~six~~nine months ended ~~June~~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 June 30						Three Months Ended September 30
(Dollars in millions)	(Dollars in millions)	2021		2020			(Dollars in millions)	2021		2020
Derivative assets (CVA)	Derivative assets (CVA)	$	3	$	276		Derivative assets (CVA)	$	54	$	174
Derivative assets/liabilities (FVA)	Derivative assets/liabilities (FVA)	(33)		69			Derivative assets/liabilities (FVA)	19		27
Derivative liabilities (DVA)	Derivative liabilities (DVA)	(31)		(256)			Derivative liabilities (DVA)	(5)		(105)

		Six Months Ended June 30						Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)	2021		2020			(Dollars in millions)	2021		2020
Derivative assets (CVA)	Derivative assets (CVA)	$	158	$	(508)		Derivative assets (CVA)	$	212	$	(334)
Derivative assets/liabilities (FVA)	Derivative assets/liabilities (FVA)	15		(87)			Derivative assets/liabilities (FVA)	34		(60)
Derivative liabilities (DVA)	Derivative liabilities (DVA)	(8)		158			Derivative liabilities (DVA)	(13)		53

(1)At ~~June~~September 30, 2021 and December 31, 2020, cumulative CVA reduced the derivative assets balance by ~~$488~~$434 million and $646 million, cumulative FVA reduced the net derivatives balance by ~~$162~~$143 million and $177 million, and cumulative DVA reduced the derivative liabilities balance by ~~$301~~$296 million and $309 million.

61Bank 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 ~~June~~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)	June 30, 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	$	56,258	$	1,696	$	(65)	$	57,889	Agency	$	50,756	$	1,631	$	(90)	$	52,297	$	59,518	$	2,370	$	(39)	$	61,849
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	4,111		123		(8)		4,226		Agency-collateralized mortgage obligations	3,684		103		(11)		3,776		5,112		161		(13)		5,260
Commercial	Commercial	18,062		882		(25)		18,919		Commercial	18,091		778		(50)		18,819		15,470		1,025		(4)		16,491
Non-agency residential (1)	Non-agency residential (1)	829		33		(10)		852		Non-agency residential (1)	799		39		(35)		803		899		127		(17)		1,009
Total mortgage-backed securities	Total mortgage-backed securities	79,260		2,734		(108)		81,886		Total mortgage-backed securities	73,330		2,551		(186)		75,695		80,999		3,683		(73)		84,609
U.S. Treasury and agency securities		158,691		1,906		(264)		160,333
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	17,165		4		(2)		17,167		Non-U.S. securities	12,289		4		—		12,293		14,009		15		(7)		14,017

Other taxable securities	Other taxable securities	2,873		48		0		2,921		Other taxable securities	2,589		45		(1)		2,633		2,656		61		(6)		2,711
Total taxable securities		257,989		4,692		(374)		262,307

Tax-exempt securities	Tax-exempt securities	15,529		347		(2)		15,874		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	273,518		5,039		(376)		278,181		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)	10,713		113		(94)		10,732		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	284,231		5,152		(470)		288,913		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	Held-to-maturity debt securities									Held-to-maturity debt securities

Agency mortgage-backed securities	Agency mortgage-backed securities	547,508		6,040		(5,849)		547,699		Agency mortgage-backed securities	562,124		5,497		(8,031)		559,590		414,289		9,768		(36)		424,021

U.S. Treasury and agency securities		94,353		327		(2,017)		92,663
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	9,573		246		(156)		9,663		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	651,434		6,613		(8,022)		650,025		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)	$	935,665	$	11,765	$	(8,492)	$	938,938	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		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

Agency mortgage-backed securities		414,289		9,768		(36)		424,021

U.S. Treasury and agency securities		16,084		0		(71)		16,013

Other taxable securities		7,906		327		(87)		8,146

Total held-to-maturity debt securities		438,279		10,095		(194)		448,180
Total debt securities (3, 4)		$	678,237	$	16,908	$	(364)	$	694,781

(1)At both ~~June~~September 30, 2021 and December 31, 2020, the underlying collateral type included approximately 37 percent prime, 2 percent Alt-A 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 ~~$82.8~~$76.4 billion and $65.5 billion at ~~June~~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 ~~$338.3~~$348.6 billion and ~~$197.8~~$205.7 billion, and a fair value of ~~$339.7~~$348.4 billion and ~~$197.3~~$204.1 billion at ~~June~~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 ~~June~~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 ~~$3.5~~$3.3 billion, net of the related income tax expense of ~~$1.2~~$1.1 billion. The Corporation had nonperforming AFS debt securities of ~~$19~~$18 million and $20 million at ~~June~~September 30, 2021 and December 31, 2020.

At ~~June~~September 30, 2021 and December 31, 2020, the Corporation had ~~$241.4~~$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 ~~$36.8~~$31.3 billion and $34.5 billion in AFS debt securities at ~~June~~September 30, 2021 and December 31, 2020, the amount of expected credit losses was insignificant. Substantially all of the


61~~Bank of America~~

Corporation's HTM debt securities consist of U.S. agency and U.S. Treasury securities and have a zero credit loss assumption.

At ~~June~~September 30, 2021 and December 31, 2020, the Corporation held equity securities at an aggregate fair value of ~~$616~~$611 million and $769 million and other equity securities, as valued under the measurement alternative, at a carrying value of ~~$270~~$268 million and $240 million, both of which are included in other assets. At ~~June~~September 30, 2021 and December 31, 2020, the Corporation also held money market investments at a fair value of ~~$1.5 billion~~$336 million and $1.6 billion, which are included in time deposits placed and other short-term investments.

InDuring the three and nine months ended ~~June~~September 30, 2021, sales of AFS securities were not significant. ~~In the six months ended June 30, 2021, the Corporation recorded gross realized gains on the~~

~~sales of AFS debt securities of $15 million and gross realized losses of $15 million.~~ For the same periods in 2020, the Corporation recorded gross realized gains of ~~$63~~$4 million and ~~$379~~$383 million and gross realized losses of $1$2 million and $2$4 million, resulting in net gains of ~~$62~~$2 million and ~~$377~~$379 million, with ~~$15~~$1 million and ~~$94~~$95 million of income taxes attributable to the realized net gains on sales of these AFS debt securities.


						Bank of America62

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 ~~June~~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)	June 30, 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	$	11,555	$	(41)	$	1,114	$	(24)	$	12,669	$	(65)	Agency	$	10,421	$	(72)	$	1,037	$	(18)	$	11,458	$	(90)
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	1,661		0		301		(8)		1,962		(8)		Agency-collateralized mortgage obligations	1,528		(6)		192		(5)		1,720		(11)
Commercial	Commercial	1,535		(25)		2		0		1,537		(25)		Commercial	2,517		(35)		322		(15)		2,839		(50)
Non-agency residential	Non-agency residential	498		0		158		(10)		656		(10)		Non-agency residential	479		(25)		113		(10)		592		(35)
Total mortgage-backed securities	Total mortgage-backed securities	15,249		(66)		1,575		(42)		16,824		(108)		Total mortgage-backed securities	14,945		(138)		1,664		(48)		16,609		(186)
U.S. Treasury and agency securities		56,061		(259)		695		(5)		56,756		(264)
Non-U.S. securities		0		0		105		(2)		105		(2)
U.S. Treasury and government agencies														U.S. Treasury and government agencies	45,297		(151)		944		(12)		46,241		(163)

Other taxable securities	Other taxable securities	291		0		56		0		347		0		Other taxable securities	336		(1)		—		—		336		(1)
Total taxable securities		71,601		(325)		2,431		(49)		74,032		(374)

Tax-exempt securities	Tax-exempt securities	11		0		185		(2)		196		(2)		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	$	71,612	$	(325)	$	2,616	$	(51)	$	74,228	$	(376)	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	Other taxable securities	576		(2)		396		(4)		972		(6)		Other taxable securities	576		(2)		396		(4)		972		(6)
Total taxable securities		14,655		(71)		1,460		(28)		16,115		(99)

Tax-exempt securities	Tax-exempt securities	4,108		(29)		617		(3)		4,725		(32)		Tax-exempt securities	4,108		(29)		617		(3)		4,725		(32)

Total AFS debt securities in a continuous unrealized loss position	Total AFS debt securities in a continuous unrealized loss position	$	18,763	$	(100)	$	2,077	$	(31)	$	20,840	$	(131)	Total AFS debt securities in a continuous unrealized loss position	$	18,763	$	(100)	$	2,077	$	(31)	$	20,840	$	(131)

63Bank of America

The remaining contractual maturity distribution and yields of the Corporation’s debt securities carried at fair value and HTM debt securities at ~~June~~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 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	%	$	7	5.39	%	$	54	4.48	%	$	56,197	3.14	%	$	56,258	3.14	%	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		21		2.50		4,090		2.92		4,111		2.92		Agency-collateralized mortgage obligations	—		—		—		—		21		2.52		3,663		2.91		3,684		2.91
Commercial	Commercial	364		2.31		8,408		2.50		6,765		1.94		2,538		2.16		18,075		2.24		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		1,500		6.55		1,500		6.55		Non-agency residential	—		—		—		—		—		—		1,442		6.59		1,442		6.59
Total mortgage-backed securities	Total mortgage-backed securities	364		2.31		8,415		2.50		6,840		1.96		64,325		3.17		79,944		2.99		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		4,558		1.11		29,528		1.85		125,093		0.81		32		2.53		159,211		1.02
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	24,990		0.31		1,291		1.75		330		1.12		65		20.09		26,676		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	Other taxable securities	869		1.37		1,401		2.24		352		1.85		251		1.63		2,873		1.88		Other taxable securities	666		1.53		1,336		2.27		341		2.44		246		1.63		2,589		2.04
Total taxable securities		30,781		0.48		40,635		1.99		132,615		0.88		64,673		3.18		268,704		1.55

Tax-exempt securities	Tax-exempt securities	1,426		1.04		8,124		1.31		3,414		1.68		2,563		1.32		15,527		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	$	32,207	0.51		$	48,759	1.88		$	136,029	0.90		$	67,236	3.11		$	284,231	1.55		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	Amortized cost of HTM debt securities																					Amortized cost of HTM debt securities

Agency mortgage-backed securities	Agency mortgage-backed securities	$	0	0	%	$	0	0	%	$	0	0	%	$	547,508	2.18	%	$	547,508	2.18	%	Agency mortgage-backed securities	$	—	—	%	$	—	—	%	$	4	2.33	%	$	562,120	2.15	%	$	562,124	2.15	%

U.S. Treasury and agency securities		0		0		0		0		94,353		1.37		0		0		94,353		1.37
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	54		2.71		715		2.42		401		2.85		8,403		2.55		9,573		2.55		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	$	54	2.71		$	715	2.42		$	94,754	1.38		$	555,911	2.19		$	651,434	2.07		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			$	60			$	57,823			$	57,889			Agency	$	—			$	5			$	57			$	52,235			$	52,297
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	0				0				21				4,205				4,226				Agency-collateralized mortgage obligations	—				—				21				3,755				3,776
Commercial	Commercial	369				8,884				7,050				2,629				18,932				Commercial	358				10,798				5,998				1,678				18,832
Non-agency residential	Non-agency residential	0				0				6				1,579				1,585				Non-agency residential	—				—				4				1,506				1,510
Total mortgage-backed securities	Total mortgage-backed securities	369				8,890				7,137				66,236				82,632				Total mortgage-backed securities	358				10,803				6,080				59,174				76,415
U.S. Treasury and agency securities		4,582				30,758				125,479				33				160,852
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	24,930				1,304				334				66				26,634				Non-U.S. securities	20,534				373				347				59				21,313

Other taxable securities	Other taxable securities	873				1,431				361				256				2,921				Other taxable securities	671				1,368				346				251				2,636
Total taxable securities		30,754				42,383				133,311				66,591				273,039

Tax-exempt securities	Tax-exempt securities	1,431				8,284				3,552				2,607				15,874				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	$	32,185			$	50,667			$	136,863			$	69,198			$	288,913			Total debt securities carried at fair value	$	28,131			$	55,109			$	139,813			$	62,324			$	285,377
Fair value of HTM debt securities	Fair value of HTM debt securities																					Fair value of HTM debt securities

Agency mortgage-backed securities	Agency mortgage-backed securities	$	0			$	0			$	0			$	547,699			$	547,699			Agency mortgage-backed securities	$	—			$	—			$	4			$	559,586			$	559,590

U.S. Treasury and agency securities		0				0				92,663				0				92,663
U.S. Treasury and government agencies																						U.S. Treasury and government agencies	—				—				109,408				—				109,408

Other taxable securities	Other taxable securities	53				753				422				8,435				9,663				Other taxable securities	234				863				326				7,912				9,335

Total fair value of HTM debt securities	Total fair value of HTM debt securities	$	53			$	753			$	93,085			$	556,134			$	650,025			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.

63Bank of America

NOTE 5 Outstanding Loans and Leases and Allowance for Credit Losses

The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at ~~June~~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)	June 30, 2021																		(Dollars in millions)	September 30, 2021
Consumer real estate	Consumer real estate																								Consumer real estate

Residential mortgage	Residential mortgage	$	1,130		$	330		$	1,549		$	3,009		$	211,315							$	214,324		Residential mortgage	$	1,010		$	276		$	1,504		$	2,790		$	214,150					$	216,940
Home equity	Home equity	141			70			343			554			29,915								30,469			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	266			177			533			976			74,623								75,599			Credit card	286			198			450			934			75,935						76,869

Direct/Indirect consumer (2)	Direct/Indirect consumer (2)	125			45			17			187			96,716								96,903			Direct/Indirect consumer (2)	119			31			16			166			99,679						99,845
Other consumer	Other consumer	0			0			0			0			172								172			Other consumer	—			—			—			—			202						202
Total consumer	Total consumer	1,662			622			2,442			4,726			412,741								417,467			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)																$	654				654			Consumer loans accounted for under the fair value option (3)																$	616		616
Total consumer loans and leases	Total consumer loans and leases	1,662			622			2,442			4,726			412,741			654					418,121			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	224			564			349			1,137			289,983								291,120			U.S. commercial	640			234			238			1,112			294,815						295,927
Non-U.S. commercial	Non-U.S. commercial	87			24			107			218			97,932								98,150			Non-U.S. commercial	77			48			130			255			102,595						102,850
Commercial real estate (4)	Commercial real estate (4)	107			32			192			331			59,275								59,606			Commercial real estate (4)	138			—			208			346			60,377						60,723
Commercial lease financing	Commercial lease financing	87			27			53			167			15,601								15,768			Commercial lease financing	32			33			15			80			14,964						15,044
U.S. small business commercial (5)	U.S. small business commercial (5)	56			29			71			156			29,711								29,867			U.S. small business commercial (5)	70			43			66			179			22,591						22,770
Total commercial	Total commercial	561			676			772			2,009			492,502								494,511			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)																6,296					6,296			Commercial loans accounted for under the fair value option (3)																6,950			6,950
Total commercial loans and leases	Total commercial loans and leases	561			676			772			2,009			492,502			6,296					500,807			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)	$	2,223		$	1,298		$	3,214		$	6,735		$	905,243		$	6,950				$	918,928		Total loans and leases (6)	$	2,504		$	932		$	2,993		$	6,429		$	913,741		$	7,566		$	927,736
Percentage of outstandings	Percentage of outstandings	0.24		%	0.14		%	0.35		%	0.73		%	98.51		%	0.76		%			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 ~~$213~~$185 million and nonperforming loans of ~~$157~~$116 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $97 million and nonperforming loans of ~~$129~~$102 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of ~~$687~~$648 million. Consumer real estate loans current or less than 30 days past due includes $1.5 billion and direct/indirect consumer includes ~~$48~~$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 ~~$46.4~~$47.2 billion, U.S. securities-based lending loans of ~~$46.4~~$48.7 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 ~~$257~~$241 million and home equity loans of ~~$397~~$375 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of ~~$4.4~~$4.5 billion and non-U.S. commercial loans of ~~$1.9~~$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 ~~$3.8~~$4.1 billion.

(5)Includes Paycheck Protection Program loans.

(6)Total outstandings includes loans and leases pledged as collateral of $12.8 billion. The Corporation also pledged ~~$153.0~~$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.

65Bank 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 ~~$10.0~~$10.3 billion and $9.0 billion at ~~June~~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 ~~$1.9~~$1.7 billion at ~~June~~September 30, 2021 from $2.2 billion at December 31, 2020. Consumer nonperforming loans increased to $3.0 billion at ~~June~~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 ~~June~~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 criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

65Bank of America


Credit Quality	Credit Quality													Credit Quality

		Nonperforming Loans and Leases						Accruing Past Due 90 Days or More (1)							Nonperforming Loans and Leases					Accruing Past Due 90 Days or More (1)

(Dollars in millions)	(Dollars in millions)	June 30 2021			December 31 2020			June 30 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)	$	2,343		$	2,005		$	687		$	762		Residential mortgage (2)	$	2,296	$	2,005		$	648	$	762
With no related allowance (3)	With no related allowance (3)	2,019			1,378			0			0			With no related allowance (3)	1,984		1,378			—		—
Home equity (2)	Home equity (2)	651			649			0			0			Home equity (2)	676		649			—		—
With no related allowance (3)	With no related allowance (3)	423			347			0			0			With no related allowance (3)	419		347			—		—
Credit Card	Credit Card	n/a			n/a			533			903			Credit Card	n/a		n/a			450		903
Direct/indirect consumer	Direct/indirect consumer	50			71			15			33			Direct/indirect consumer	45		71			8		33

Total consumer	Total consumer	3,044			2,725			1,235			1,698			Total consumer	3,017		2,725			1,106		1,698
U.S. commercial	U.S. commercial	1,060			1,243			172			228			U.S. commercial	909		1,243			84		228
Non-U.S. commercial	Non-U.S. commercial	275			418			19			10			Non-U.S. commercial	272		418			60		10
Commercial real estate	Commercial real estate	404			404			0			6			Commercial real estate	414		404			5		6
Commercial lease financing	Commercial lease financing	81			87			24			25			Commercial lease financing	70		87			11		25
U.S. small business commercial	U.S. small business commercial	43			75			69			115			U.S. small business commercial	32		75			64		115
Total commercial	Total commercial	1,863			2,227			284			384			Total commercial	1,697		2,227			224		384
Total nonperforming loans	Total nonperforming loans	$	4,907		$	4,952		$	1,519		$	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	0.54		%	0.54		%	0.17		%	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 ~~June~~September 30, 2021 and December 31, 2020 residential mortgage includes ~~$501~~$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 ~~$186~~$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 ~~June~~September 30, 2021, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.

67Bank 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 June 30, 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	$	198,103	$	44,858	$	55,361	$	30,311	$	9,583	$	14,423	$	43,567	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	2,790		1,021		1,238		275		46		33		177		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	912		385		260		84		22		17		144		Greater than 100 percent	801		451		155		57		16		14		108
Fully-insured loans	Fully-insured loans	12,519		2,134		3,913		1,512		279		280		4,401		Fully-insured loans	12,624		2,945		3,698		1,370		253		259		4,099
Total Residential Mortgage	Total Residential Mortgage	$	214,324	$	48,398	$	60,772	$	32,182	$	9,930	$	14,753	$	48,289	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	$	2,539	$	438	$	507	$	152	$	121	$	137	$	1,184	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	5,002		791		1,277		565		338		333		1,698		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	23,440		4,246		6,688		3,267		1,398		1,763		6,078		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	170,824		40,789		48,387		26,686		7,794		12,240		34,928		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	12,519		2,134		3,913		1,512		279		280		4,401		Fully-insured loans	12,624		2,945		3,698		1,370		253		259		4,099
Total Residential Mortgage	Total Residential Mortgage	$	214,324	$	48,398	$	60,772	$	32,182	$	9,930	$	14,753	$	48,289	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)	June 30, 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	$	29,884	$	1,857	$	20,266	$	7,761				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	236		98		62		76					Greater than 90 percent but less than or equal to 100 percent	192		83		47		62
Greater than 100 percent	Greater than 100 percent	349		125		86		138					Greater than 100 percent	279		105		70		104
Total Home Equity	Total Home Equity	$	30,469	$	2,080	$	20,414	$	7,975				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	$	974	$	246	$	217	$	511				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	1,574		243		509		822					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	5,027		517		2,559		1,951					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	22,894		1,074		17,129		4,691					Greater than or equal to 740	21,780		1,020		16,423		4,337
Total Home Equity	Total Home Equity	$	30,469	$	2,080	$	20,414	$	7,975				Total Home Equity	$	29,000	$	1,977	$	19,643	$	7,380

(1)Includes reverse mortgages of ~~$1.4~~$1.3 billion and home equity loans of ~~$717~~$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 June 30, 2021		Revolving Loans		2021		2020		2019		2018		2017		Prior		Total Credit Card as of June 30, 2021		Revolving Loans		Revolving Loans Converted to Term Loans (1)			(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	$	704	$	15	$	54	$	107	$	152	$	115	$	149	$	112	$	2,859	$	2,692	$	167		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	2,031		16		528		502		402		212		201		170		8,293		8,087		206			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	7,646		67		2,315		2,145		1,484		693		483		459		26,228		26,024		204			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	36,196		101		8,352		10,544		8,439		4,046		2,384		2,330		38,219		38,170		49			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 (2,3)	Other internal credit metrics (2,3)	50,326		49,307		519		79		96		83		65		177		0		0		0			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	$	96,903	$	49,506	$	11,768	$	13,377	$	10,573	$	5,149	$	3,282	$	3,248	$	75,599	$	74,973	$	626		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.

(3)Direct/indirect consumer includes ~~$49.3~~$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 ~~June~~September 30, 2021.


67~~Bank of America~~

Commercial – Credit Quality Indicators By Vintage (1, 2)
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in millions) Total as of
June 30,
2021 2021 2020 2019 2018 2017 Prior Revolving Loans
U.S. Commercial
Risk ratings
Pass rated $ 277,504 $ 25,307 $ 25,782 $ 28,019 $ 13,523 $ 12,219 $ 27,464 $ 145,190
Reservable criticized 13,616 294 1,342 1,696 2,192 661 1,485 5,946
Total U.S. Commercial $ 291,120 $ 25,601 $ 27,124 $ 29,715 $ 15,715 $ 12,880 $ 28,949 $ 151,136
Non-U.S. Commercial
Risk ratings
Pass rated $ 94,717 $ 11,442 $ 11,854 $ 8,529 $ 5,739 $ 3,445 $ 3,071 $ 50,637
Reservable criticized 3,433 285 395 644 397 331 367 1,014
Total Non-U.S. Commercial $ 98,150 $ 11,727 $ 12,249 $ 9,173 $ 6,136 $ 3,776 $ 3,438 $ 51,651
Commercial Real Estate
Risk ratings
Pass rated $ 50,781 $ 4,669 $ 7,940 $ 13,339 $ 7,356 $ 4,183 $ 8,528 $ 4,766
Reservable criticized 8,825 162 1,025 2,403 2,030 1,179 1,481 545
Total Commercial Real Estate $ 59,606 $ 4,831 $ 8,965 $ 15,742 $ 9,386 $ 5,362 $ 10,009 $ 5,311
Commercial Lease Financing
Risk ratings
Pass rated $ 15,035 $ 1,090 $ 2,793 $ 2,896 $ 2,396 $ 2,194 $ 3,666 $ 0
Reservable criticized 733 122 71 155 106 72 207 0
Total Commercial Lease Financing $ 15,768 $ 1,212 $ 2,864 $ 3,051 $ 2,502 $ 2,266 $ 3,873 $ 0
U.S. Small Business Commercial (3)
Risk ratings
Pass rated $ 22,235 $ 9,756 $ 8,245 $ 1,124 $ 816 $ 702 $ 1,438 $ 154
Reservable criticized 696 4 49 145 131 98 264 5
Total U.S. Small Business Commercial $ 22,931 $ 9,760 $ 8,294 $ 1,269 $ 947 $ 800 $ 1,702 $ 159
Total $ 487,575 $ 53,131 $ 59,496 $ 58,950 $ 34,686 $ 25,084 $ 47,971 $ 208,257

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

~~(2)~~ ~~Includes $40 million of loans that converted from revolving to term loans.~~

~~(3)~~ Excludes U.S. Small Business Card loans of $6.9 billion. Refreshed FICO scores for this portfolio are $193 million for less than 620; $555 million for greater than or equal to 620 and less than 680; $1.8 billion for greater than or equal to 680 and less than 740; and $4.4 billion greater than or equal to 740.


						Bank of America 68



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

(Dollars in millions)	Total as of September 30, 2021		2021		2020		2019		2018		2017		Prior		Revolving Loans
U.S. Commercial
Risk ratings
Pass rated	$	284,704	$	39,184	$	24,933	$	25,500	$	11,900	$	11,207	$	23,764	$	148,216
Reservable criticized	11,223		461		1,082		1,491		1,730		583		1,191		4,685
Total U.S. Commercial	$	295,927	$	39,645	$	26,015	$	26,991	$	13,630	$	11,790	$	24,955	$	152,901

Non-U.S. Commercial
Risk ratings
Pass rated	$	100,057	$	17,768	$	10,213	$	7,795	$	4,775	$	3,633	$	3,000	$	52,873
Reservable criticized	2,793		188		341		616		378		200		285		785
Total Non-U.S. Commercial	$	102,850	$	17,956	$	10,554	$	8,411	$	5,153	$	3,833	$	3,285	$	53,658

Commercial Real Estate
Risk ratings
Pass rated	$	52,861	$	8,993	$	7,653	$	12,445	$	7,021	$	3,742	$	7,669	$	5,338
Reservable criticized	7,862		209		993		1,972		1,856		996		1,339		497
Total Commercial Real Estate	$	60,723	$	9,202	$	8,646	$	14,417	$	8,877	$	4,738	$	9,008	$	5,835

Commercial Lease Financing
Risk ratings
Pass rated	$	14,640	$	1,515	$	2,641	$	2,921	$	2,203	$	2,020	$	3,340	$	—
Reservable criticized	404		27		11		96		71		52		147		—
Total Commercial Lease Financing	$	15,044	$	1,542	$	2,652	$	3,017	$	2,274	$	2,072	$	3,487	$	—

U.S. Small Business Commercial (3)
Risk ratings
Pass rated	$	15,149	$	6,414	$	4,524	$	1,101	$	800	$	665	$	1,504	$	141
Reservable criticized	546		7		32		111		99		78		216		3
Total U.S. Small Business Commercial	$	15,695	$	6,421	$	4,556	$	1,212	$	899	$	743	$	1,720	$	144
Total	$	490,239	$	74,766	$	52,423	$	54,048	$	30,833	$	23,176	$	42,455	$	212,538

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

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

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


69Bank 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
(Dollars in millions)	Total as of December 31, 2020		2020		2019		2018		2017		2016		Prior
Total Residential Mortgage
Refreshed LTV
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	3,138		1,970		684		128		70		96		190
Greater than 100 percent	1,210		702		174		47		39		37		211
Fully-insured loans	11,818		3,826		2,014		370		342		1,970		3,296
Total Residential Mortgage	$	223,555	$	75,405	$	46,643	$	15,203	$	22,040	$	25,070	$	39,194

Total Residential Mortgage
Refreshed FICO score
Less than 620	$	2,717	$	823	$	177	$	139	$	170	$	150	$	1,258
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	25,349		8,533		4,679		1,972		2,427		2,307		5,431
Greater than or equal to 740	178,209		60,419		39,107		12,254		18,716		20,275		27,438
Fully-insured loans	11,818		3,826		2,014		370		342		1,970		3,296
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)Includes reverse mortgages of $1.3 billion and home equity loans of $885 million which are no longer originated.

69Bank of America


Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage	Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage																							Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage

		Direct/Indirect																								Direct/Indirect
						Term Loans by Origination Year												Credit Card												Term Loans by Origination Year												Credit Card
(Dollars in millions)	(Dollars in millions)	Total Direct/Indirect as of December 31, 2020		Revolving Loans		2020		2019		2018		2017		2016		Prior		Total Credit Card as of December 31, 2020		Revolving Loans		Revolving Loans Converted to Term Loans (1)			(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 (2, 3)	Other internal credit metrics (2, 3)	44,766		44,098		74		115		84		67		52		276		0		0		0			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.

(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.


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 ~~six~~nine months ended ~~June~~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 ~~$28.9~~$24.1 billion at ~~June~~September 30, 2021 from $38.7 billion (to ~~5.45~~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 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 ~~$343~~$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 ~~June~~September 30, 2021, of which ~~$99~~$95 million were classified as nonperforming and ~~$61~~$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 ~~June~~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 ~~$93~~$87 million and $123 million at ~~June~~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 ~~June~~September 30, 2021 was $1.1 billion. ~~Although~~During the ~~Corporation has continued to pause formal loan foreclosure proceedings and foreclosure sales for occupied properties, during the six~~nine months ended ~~June~~September 30, 2021, the Corporation reclassified ~~$20~~$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 ~~June~~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 ~~six~~nine months ended ~~June~~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 and Six Months Ended June 30, 2021 and 2020
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 (1)		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)		Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate (1)
(Dollars in millions)	(Dollars in millions)	Three Months Ended June 30, 2021								Six Months Ended June 30, 2021								(Dollars in millions)	Three Months Ended September 30, 2021								Nine Months Ended September 30, 2021

Residential mortgage	Residential mortgage	$	522	$	466	3.53	%	3.51	%	$	744	$	667	3.51	%	3.49	%	Residential mortgage	$	451	$	399	3.52	%	3.49	%	$	832	$	742	3.49	%	3.44	%
Home equity	Home equity	62		47		3.58		3.61		83		63		3.55		3.58		Home equity	61		45		3.51		3.51		97		73		3.56		3.58
Total	Total	$	584	$	513	3.53		3.52		$	827	$	730	3.52		3.50		Total	$	512	$	444	3.52		3.49		$	929	$	815	3.50		3.46

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

Residential mortgage	Residential mortgage	$	120	$	103	4.22	%	4.19	%	$	219	$	185	4.10	%	4.01	%	Residential mortgage	$	103	$	88	4.06	%	3.99	%	$	294	$	244	4.07	%	3.90	%
Home equity	Home equity	22		18		3.68		3.65		45		38		3.99		3.92		Home equity	12		10		4.25		4.08		56		45		3.85		3.73
Total	Total	$	142	$	121	4.14		4.11		$	264	$	223	4.08		3.99		Total	$	115	$	98	4.08		4.00		$	350	$	289	4.03		3.87

(1)The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.

71Bank of America

The table below presents the ~~June~~September 30, 2021 and 2020 carrying value for consumer real estate loans that were modified in a TDR during the three and ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, by type of modification.


Consumer Real Estate – Modification Programs	Consumer Real Estate – Modification Programs										Consumer Real Estate – Modification Programs

		TDRs Entered into During the						TDRs Entered into During the
		Three Months Ended June 30				Six Months Ended June 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
Modifications under government programs	Modifications under government programs	$	1	$	0	$	3		$	3	Modifications under government programs	$	—	$	—	$	4	$	8

Modifications under proprietary programs	Modifications under proprietary programs	479		20		665			59		Modifications under proprietary programs	417		50		740		136

Loans discharged in Chapter 7 bankruptcy (1)	Loans discharged in Chapter 7 bankruptcy (1)	12		21		22			32		Loans discharged in Chapter 7 bankruptcy (1)	9		15		29		44
Trial modifications	Trial modifications	21		80		40			129		Trial modifications	18		33		42		101
Total modifications	Total modifications	$	513	$	121	$	730		$	223	Total modifications	$	444	$	98	$	815	$	289

(1)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.

The table below presents the carrying value of consumer real estate loans that entered into payment default during the three and ~~six~~nine months ended ~~June~~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	Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months									Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months

		Three Months Ended June 30				Six Months Ended June 30					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
Modifications under government programs	Modifications under government programs	$	1	$	2	$	2	$	8					Modifications under government programs	$	1	$	6	$	3	$	14
Modifications under proprietary programs	Modifications under proprietary programs	33		5		45		19						Modifications under proprietary programs	35		8		80		27
Loans discharged in Chapter 7 bankruptcy (1)	Loans discharged in Chapter 7 bankruptcy (1)	2		4		5		11						Loans discharged in Chapter 7 bankruptcy (1)	1		4		6		15
Trial modifications (2)	Trial modifications (2)	6		12		12		30						Trial modifications (2)	3		15		15		45
Total modifications	Total modifications	$	42	$	23	$	64	$	68					Total modifications	$	40	$	33	$	104	$	101

(1)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.

(2)Includes trial modification offers to which the customer did not respond.

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 ~~June~~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 ~~six~~nine months ended ~~June~~September 30, 2021 and 2020.


Credit Card and Other Consumer – TDRs Entered into During the Three and Six Months Ended June 30, 2021 and 2020
Credit Card and Other Consumer – TDRs Entered into During the Three and 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 (1)		Pre-Modification Interest Rate		Post-Modification Interest Rate		Unpaid Principal Balance		Carrying Value (1)		Pre-Modification Interest Rate		Post-Modification Interest Rate					Unpaid Principal Balance		Carrying Value (1)		Pre-Modification Interest Rate		Post-Modification Interest Rate			Unpaid Principal Balance		Carrying Value (1)		Pre-Modification Interest Rate		Post-Modification Interest Rate
(Dollars in millions)	(Dollars in millions)	Three Months Ended June 30, 2021								Six Months Ended June 30, 2021								(Dollars in millions)	Three Months Ended September 30, 2021										Nine Months Ended September 30, 2021

Credit card	Credit card	$	62	$	68	18.44	%	4.24	%	$	137	$	147	18.48	%	4.53	%			Credit card	$	66	$	71	18.48	%	3.71	%		$	189	$	200	18.47	%	4.26 %

Direct/Indirect consumer	Direct/Indirect consumer	6		4		5.64		5.64		11		7		5.62		5.62				Direct/Indirect consumer	4		2		5.20		5.20			13		8		5.53		5.53

Total	Total	$	68	$	72	17.75		4.31		$	148	$	154	17.87		4.58				Total	$	70	$	73	18.06		3.76			$	202	$	208	17.99		4.31

		Three Months Ended June 30, 2020								Six Months Ended June 30, 2020											Three Months Ended September 30, 2020									Nine Months Ended September 30, 2020
Credit card	Credit card	$	57	$	61	18.08	%	5.15	%	$	144	$	152	18.02	%	5.24	%			Credit card	$	71	$	77	18.19	%	6.86	%		$	203	$	214	18.06	%	5.82	%

Direct/Indirect consumer	Direct/Indirect consumer	14		8		5.26		5.26		23		12		5.31		5.31				Direct/Indirect consumer	35		29		6.02		6.02			50		37		5.87		5.87

Total	Total	$	71	$	69	16.61		5.16		$	167	$	164	17.07		5.25				Total	$	106	$	106	14.85		6.63			$	253	$	251	16.29		5.83

(1)Includes accrued interest and fees.

73Bank of America

The table below presents the ~~June~~September 30, 2021 and 2020 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three and ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, by program type.


Credit Card and Other Consumer – TDRs by Program Type	Credit Card and Other Consumer – TDRs by Program Type									Credit Card and Other Consumer – TDRs by Program Type

		TDRs Entered into During the Three Months Ended June 30				TDRs Entered into During the Six Months Ended June 30						TDRs Entered into During the Three Months Ended September 30				TDRs Entered into During the Nine Months Ended September 30
(Dollars in millions)	(Dollars in millions)	2021		2020		2021		2020			(Dollars in millions)	2021		2020		2021		2020
Internal programs	Internal programs	$	57	$	43	$	121	$	109		Internal programs	$	60	$	80	$	166	$	178
External programs	External programs	13		18		29		43			External programs	11		19		37		59
Other	Other	2		8		4		12			Other	2		7		5		14
Total	Total	$	72	$	69	$	154	$	164		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 1110 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 ~~six~~nine months ended ~~June~~September 30, 2021, the carrying value of the Corporation’s commercial loans that were modified as TDRs was ~~$320~~$213 million and ~~$865 million~~$1.1 billion compared to ~~$789~~$588 million and ~~$1.3~~$1.5 billion for the same periods in 2020. At ~~June~~September 30, 2021 and December 31, 2020, the Corporation had ~~$1.9 billion~~commitments to lend $272 million and ~~$1.7 billion of~~$402 million to commercial ~~TDRs with remaining~~borrowers whose loans are classified as

~~commitments to lend additional funds to debtors of $343 million and $402 million.~~TDRs. The balance of commercial TDRs in payment default was ~~$149~~$168 million and $218 million at ~~June~~September 30, 2021 and December 31, 2020.

Loans Held-for-sale

The Corporation had LHFS of ~~$8.3~~$9.4 billion and $9.2 billion at ~~June~~September 30, 2021 and December 31, 2020. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were ~~$18.2~~$27.0 billion and ~~$11.1~~$16.1 billion for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020. Cash used for originations and purchases of LHFS totaled approximately ~~$17.0~~$27.0 billion and ~~$9.2~~$11.1 billion for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020.

Accrued Interest Receivable

Accrued interest receivable for loans and leases and loans held-for-sale at ~~June~~September 30, 2021 and December 31, 2020 was ~~$2.3~~$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 ~~six~~nine months ended ~~June~~September 30, 2021, the Corporation reversed ~~$124~~$87 million and ~~$282~~$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 ~~six~~nine months ended ~~June~~September 30, 2021, ~~the Corporation reversed $9 million and $17 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.

73Bank of America

Allowance for Credit Losses

The allowance for credit losses is estimated using quantitative and qualitative methods that consider a variety of factors, such as historical loss experience, the current credit quality of the portfolio and an economic outlook over the life of the loan. Qualitative reserves cover losses that are expected but, in the Corporation's assessment, may not be adequately reflected in the quantitative methods or the economic assumptions. The Corporation incorporates forward-looking information through the use of several macroeconomic scenarios in determining the weighted economic outlook over the forecasted life of the assets. These scenarios include key macroeconomic variables such as gross domestic product, unemployment rate, real estate prices and corporate bond spreads. The scenarios that are chosen each quarter and the weighting given to each scenario depend on a variety of factors including recent economic events, leading economic indicators, internal and third-party economist views, and industry trends. For more information on the Corporation's credit loss accounting policies including the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

The ~~June~~September 30, 2021 estimate for allowance for credit losses was based on various economic outlooks that included consensus estimates, a downside scenario that 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 the level as of June 2021, which was approximately 6 percent, and continue to decline to slightly~~just above 5 percent by the ~~end~~fourth quarters of ~~2022.~~2022 and 2023, which includes the impacts of the downside scenarios noted above. Additionally, in this economic outlook, ~~year-over-year~~ U.S. gross

domestic product is forecasted to grow at ~~4.5~~1.8 percent and 1.9 percent ~~and 2.1 percent~~year-over-year in the fourth quarters of ~~2021,~~ 2022 and ~~2023, respectively.~~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 ~~June~~September 30, 2021 was ~~$15.8~~$14.7 billion, a decrease of ~~$4.9~~$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.~~outlook and credit quality. The ~~decrease~~change in the allowance for credit losses was comprised of a net decrease of ~~$4.7~~$5.6 billion in the allowance for loan and lease losses and a ~~$191~~$340 million decrease in the reserve for unfunded lending commitments. The decrease in the allowance for credit losses was attributed to ~~$291~~$342 million in the consumer real estate portfolio, ~~$2.4~~$2.6 billion in the credit card and other consumer portfolio, and ~~$2.2~~$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 ~~$9.2~~$1.0 billion in the ~~six~~nine months ended ~~June~~September 30, 2021 driven by consumer loans, which decreased ~~$10.6~~$5.2 billion primarily due to a decline in consumer real estate due to prepayments in a low rate environment. However, outstanding commercial loans and leases, excluding small business, increased ~~$8.0~~$17.9 billion during the ~~six~~nine months ended ~~June~~September 30, 2021, primarily driven by Global ~~Markets~~ ~~with most of the increase in investment grade exposures.~~Markets.

The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the following table.

75Bank of America


		Consumer Real Estate		Credit Card and Other Consumer		Commercial		Total			Consumer Real Estate		Credit Card and Other Consumer		Commercial		Total
(Dollars in millions)	(Dollars in millions)	Three Months Ended June 30, 2021								(Dollars in millions)	Three Months Ended September 30, 2021
Allowance for loan and lease losses, April 1		$	689	$	7,946	$	7,533	$	16,168
Allowance for loan and lease losses, July 1										Allowance for loan and lease losses, July 1	$	597	$	6,835	$	6,663	$	14,095
Loans and leases charged off	Loans and leases charged off	(30)		(799)		(232)		(1,061)		Loans and leases charged off	(15)		(626)		(165)		(806)
Recoveries of loans and leases previously charged off	Recoveries of loans and leases previously charged off	60		256		150		466		Recoveries of loans and leases previously charged off	56		256		31		343
Net charge-offs	Net charge-offs	30		(543)		(82)		(595)		Net charge-offs	41		(370)		(134)		(463)

Provision for loan and lease losses	Provision for loan and lease losses	(122)		(568)		(790)		(1,480)		Provision for loan and lease losses	(85)		175		(565)		(475)
Other	Other	0		0		2		2		Other	2		(1)		(3)		(2)
Allowance for loan and lease losses, June 30		597		6,835		6,663		14,095
Reserve for unfunded lending commitments, April 1		124		0		1,705		1,829
Allowance for loan and lease losses, September 30										Allowance for loan and lease losses, September 30	555		6,639		5,961		13,155
Reserve for unfunded lending commitments, July 1										Reserve for unfunded lending commitments, July 1	107		—		1,580		1,687
Provision for unfunded lending commitments	Provision for unfunded lending commitments	(17)		0		(124)		(141)		Provision for unfunded lending commitments	(9)		—		(140)		(149)
Other		0		0		(1)		(1)
Reserve for unfunded lending commitments, June 30		107		0		1,580		1,687
Allowance for credit losses, June 30		$	704	$	6,835	$	8,243	$	15,782

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

		Three Months Ended June 30, 2020									Three Months Ended September 30, 2020
Allowance for loan and lease losses, April 1		$	808	$	8,258	$	6,700	$	15,766
Allowance for loan and lease losses, July 1										Allowance for loan and lease losses, July 1	$	833	$	10,122	$	8,434	$	19,389
Loans and leases charged off	Loans and leases charged off	(27)		(985)		(447)		(1,459)		Loans and leases charged off	(13)		(810)		(470)		(1,293)
Recoveries of loans and leases previously charged off	Recoveries of loans and leases previously charged off	61		217		35		313		Recoveries of loans and leases previously charged off	39		220		62		321
Net charge-offs	Net charge-offs	34		(768)		(412)		(1,146)		Net charge-offs	26		(590)		(408)		(972)

Provision for loan and lease losses	Provision for loan and lease losses	(9)		2,632		2,152		4,775		Provision for loan and lease losses	(6)		304		882		1,180
Other	Other	0		0		(6)		(6)		Other	2		—		(3)		(1)
Allowance for loan and lease losses, June 30		833		10,122		8,434		19,389
Allowance for loan and lease losses, September 30										Allowance for loan and lease losses, September 30	855		9,836		8,905		19,596

Reserve for unfunded lending commitments, April 1		149		0		1,211		1,360
Reserve for unfunded lending commitments, July 1										Reserve for unfunded lending commitments, July 1	141		—		1,561		1,702
Provision for unfunded lending commitments	Provision for unfunded lending commitments	(8)		0		350		342		Provision for unfunded lending commitments	(3)		—		212		209

Reserve for unfunded lending commitments, June 30		141		0		1,561		1,702
Allowance for credit losses, June 30		$	974	$	10,122	$	9,995	$	21,091
Other										Other	—		—		(1)		(1)
Reserve for unfunded lending commitments, September 30										Reserve for unfunded lending commitments, September 30	138		—		1,772		1,910
Allowance for credit losses, September 30										Allowance for credit losses, September 30	$	993	$	9,836	$	10,677	$	21,506

(Dollars in millions)	(Dollars in millions)	Six Months Ended June 30, 2021								(Dollars in millions)	Nine Months Ended September 30, 2021
Allowance for loan and lease losses, January 1	Allowance for loan and lease losses, January 1	$	858	$	9,213	$	8,731	$	18,802	Allowance for loan and lease losses, January 1	$	858	$	9,213	$	8,731	$	18,802
Loans and leases charged off	Loans and leases charged off	(45)		(1,776)		(426)		(2,247)		Loans and leases charged off	(60)		(2,402)		(591)		(3,053)
Recoveries of loans and leases previously charged off	Recoveries of loans and leases previously charged off	114		501		214		829		Recoveries of loans and leases previously charged off	170		757		245		1,172
Net charge-offs	Net charge-offs	69		(1,275)		(212)		(1,418)		Net charge-offs	110		(1,645)		(346)		(1,881)
Provision for loan and lease losses	Provision for loan and lease losses	(329)		(1,104)		(1,858)		(3,291)		Provision for loan and lease losses	(414)		(929)		(2,423)		(3,766)
Other	Other	(1)		1		2		2		Other	1		—		(1)		—
Allowance for loan and lease losses, June 30		597		6,835		6,663		14,095
Allowance for loan and lease losses, September 30										Allowance for loan and lease losses, September 30	555		6,639		5,961		13,155
Reserve for unfunded lending commitments, January 1	Reserve for unfunded lending commitments, January 1	137		0		1,741		1,878		Reserve for unfunded lending commitments, January 1	137		—		1,741		1,878
Provision for unfunded lending commitments	Provision for unfunded lending commitments	(30)		0		(160)		(190)		Provision for unfunded lending commitments	(39)		—		(300)		(339)
Other	Other	0		0		(1)		(1)		Other	—		—		(1)		(1)
Reserve for unfunded lending commitments, June 30		107		0		1,580		1,687
Allowance for credit losses, June 30		$	704	$	6,835	$	8,243	$	15,782
Reserve for unfunded lending commitments, September 30										Reserve for unfunded lending commitments, September 30	98		—		1,440		1,538
Allowance for credit losses, September 30										Allowance for credit losses, September 30	$	653	$	6,639	$	7,401	$	14,693

		Six Months Ended June 30, 2020									Nine Months Ended September 30, 2020
Allowance for loan and lease losses, January 1	Allowance for loan and lease losses, January 1	$	440	$	7,430	$	4,488	$	12,358	Allowance for loan and lease losses, January 1	$	440	$	7,430	$	4,488	$	12,358
Loans and leases charged off	Loans and leases charged off	(62)		(2,106)		(729)		(2,897)		Loans and leases charged off	(75)		(2,916)		(1,199)		(4,190)
Recoveries of loans and leases previously charged off	Recoveries of loans and leases previously charged off	108		454		67		629		Recoveries of loans and leases previously charged off	147		674		129		950
Net charge-offs	Net charge-offs	46		(1,652)		(662)		(2,268)		Net charge-offs	72		(2,242)		(1,070)		(3,240)
Provision for loan and lease losses	Provision for loan and lease losses	342		4,344		4,614		9,300		Provision for loan and lease losses	336		4,648		5,496		10,480
Other	Other	5		0		(6)		(1)		Other	7		—		(9)		(2)
Allowance for loan and lease losses, June 30		833		10,122		8,434		19,389
Allowance for loan and lease losses, September 30										Allowance for loan and lease losses, September 30	855		9,836		8,905		19,596
Reserve for unfunded lending commitments, January 1	Reserve for unfunded lending commitments, January 1	119		0		1,004		1,123		Reserve for unfunded lending commitments, January 1	119		—		1,004		1,123
Provision for unfunded lending commitments	Provision for unfunded lending commitments	22		0		556		578		Provision for unfunded lending commitments	19		—		768		787
Other		0		0		1		1
Reserve for unfunded lending commitments, June 30		141		0		1,561		1,702
Allowance for credit losses, June 30		$	974	$	10,122	$	9,995	$	21,091

Reserve for unfunded lending commitments, September 30										Reserve for unfunded lending commitments, September 30	138		—		1,772		1,910
Allowance for credit losses, September 30										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 ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020 resulting from its involvement with consolidated and ~~unconsolidated VIEs~~

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 orNote 5 – Outstanding Loans and Leases and Allowance for Credit

75Bank of America

~~Note 5 – Outstanding Loans and Leases and Allowance for Credit~~ Losses. In addition, the Corporation has used VIEs in connection with its funding activities.

The Corporation did not provide financial support to consolidated or unconsolidated VIEs during the ~~six~~nine months ended ~~June~~September 30, 2021 or the year ended December 31, 2020 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 $968 million and $929 million at ~~June~~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 ~~six~~nine months ended ~~June~~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 June 30				Six Months Ended June 30				Three Months Ended June 30				Six Months Ended June 30							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		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)	$	1,652	$	11,375	$	2,895	$	12,927	$	2,175	$	220	$	2,840	$	2,292			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)	3		715		5		721		31		(1)		64		40				Gains on securitizations (2)	3		3		8		724			41		17		105		57
Repurchases from securitization trusts (3)	Repurchases from securitization trusts (3)	98		167		178		295		0		0		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 ~~$40~~$24 million and ~~$73~~$97 million, net of hedges, during the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$34~~$44 million and ~~$61~~$105 million for the same periods in 2020, 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 ~~$138.7~~$129.6 billion and ~~$183.4~~$172.5 billion at ~~June~~September 30, 2021 and 2020. Servicing fee and ancillary fee income on serviced loans was ~~$104~~$101 million and ~~$217~~$318 million during the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$124~~$101 million and ~~$252~~$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 ~~June~~September 30, 2021 and December 31, 2020. For more information on MSRs, see Note 14 – Fair Value Measurements.

During the ~~six~~nine months ended ~~June~~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 summarizes select information related to first-lien mortgage securitization trusts in which the Corporation held a variable interest at ~~June~~September 30, 2021 and December 31, 2020.

77Bank of America


First-lien Mortgage VIEs	First-lien Mortgage VIEs																					First-lien Mortgage VIEs

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

(Dollars in millions)	(Dollars in millions)	June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020		(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	Unconsolidated VIEs																					Unconsolidated VIEs
Maximum loss exposure (1)	Maximum loss exposure (1)	$	12,573	$	13,477	$	219	$	250	$	1,015	$	1,031	$	55	$	46	$	1,252	$	1,169	Maximum loss exposure (1)	$	12,308	$	13,477	$	219	$	250	$	992	$	1,031	$	51	$	46	$	1,343	$	1,169
On-balance sheet assets	On-balance sheet assets																					On-balance sheet assets
Senior securities:	Senior securities:																					Senior securities:
Trading account assets	Trading account assets	$	195	$	152	$	5	$	2	$	25	$	8	$	24	$	12	$	7	$	60	Trading account assets	$	230	$	152	$	18	$	2	$	26	$	8	$	20	$	12	$	53	$	60
Debt securities carried at fair value	Debt securities carried at fair value	6,260		7,588		87		103		651		676		31		33		0		0		Debt securities carried at fair value	5,738		7,588		80		103		638		676		30		33		—		—
Held-to-maturity securities	Held-to-maturity securities	6,118		5,737		0		0		0		0		0		0		1,016		925		Held-to-maturity securities	6,340		5,737		—		—		—		—		—		—		1,047		925
All other assets	All other assets	0		0		6		6		28		26		0		1		57		50		All other assets	—		—		6		6		26		26		1		1		68		50
Total retained positions	Total retained positions	$	12,573	$	13,477	$	98	$	111	$	704	$	710	$	55	$	46	$	1,080	$	1,035	Total retained positions	$	12,308	$	13,477	$	104	$	111	$	690	$	710	$	51	$	46	$	1,168	$	1,035
Principal balance outstanding (2)	Principal balance outstanding (2)	$	114,769	$	133,497	$	5,400	$	6,081	$	6,409	$	6,691	$	15,181	$	16,554	$	70,340	$	59,268	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	Consolidated VIEs																					Consolidated VIEs
Maximum loss exposure (1)	Maximum loss exposure (1)	$	1,080	$	1,328	$	17	$	66	$	23	$	53	$	0	$	0	$	0	$	0	Maximum loss exposure (1)	$	1,174	$	1,328	$	10	$	66	$	23	$	53	$	—	$	—	$	—	$	—
On-balance sheet assets	On-balance sheet assets																					On-balance sheet assets
Trading account assets	Trading account assets	$	1,080	$	1,328	$	122	$	350	$	226	$	260	$	0	$	0	$	0	$	0	Trading account assets	$	1,174	$	1,328	$	38	$	350	$	217	$	260	$	—	$	—	$	—	$	—

All other assets		0		0		0		0		0		0		0		0		0		0

Total assets	Total assets	$	1,080	$	1,328	$	122	$	350	$	226	$	260	$	0	$	0	$	0	$	0	Total assets	$	1,174	$	1,328	$	38	$	350	$	217	$	260	$	—	$	—	$	—	$	—

Total liabilities	Total liabilities	$	0	$	0	$	105	$	284	$	203	$	207	$	0	$	0	$	0	$	0	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 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 ~~June~~September 30, 2021 and December 31, 2020.


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)	June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 2021		December 31 2020		June 30 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	$	179	$	206	$	0	$	0	$	6,788	$	8,543	$	3,736	$	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	$	617	$	948	$	0	$	0		Trading account assets	$	—	$	—		$	—	$	—		$	1,306	$	948		$	—	$	—
Debt securities carried at fair value	Debt securities carried at fair value	1		2		0		0		2,282		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		3,889		4,868		0		0			Held-to-maturity securities	—		—			—		—			3,503		4,868			—		—

Total retained positions	Total retained positions	$	1	$	2	$	0	$	0	$	6,788	$	8,543	$	0	$	0		Total retained positions	$	1	$	2		$	—	$	—		$	6,896	$	8,543		$	—	$	—
Total assets of VIEs	Total assets of VIEs	$	501	$	609	$	0	$	0	$	15,535	$	17,250	$	4,305	$	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	$	52	$	58	$	9,960	$	14,606	$	281	$	217	$	309	$	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	$	284	$	217	$	269	$	990		Trading account assets	$	—	$	—		$	—	$	—		$	219	$	217		$	261	$	990

Loans and leases	Loans and leases	183		218		14,468		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		(1,059)		(1,704)		0		0		0		0			Allowance for loan and lease losses	14		14			(1,005)		(1,704)			—		—			—		—

All other assets	All other assets	3		4		1,063		1,289		0		0		40		40			All other assets	3		4			67		1,289			—		—			40		40
Total assets	Total assets	$	201	$	236	$	14,472	$	20,895	$	284	$	217	$	309	$	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	$	287	$	432		Short-term borrowings	$	—	$	—		$	—	$	—		$	—	$	—		$	280	$	432
Long-term debt	Long-term debt	150		178		4,497		6,273		3		0		0		0			Long-term debt	138		178			3,247		6,273			8		—			—		—
All other liabilities	All other liabilities	0		0		15		16		0		0		0		0			All other liabilities	—		—			10		16			—		—			—		—
Total liabilities	Total liabilities	$	150	$	178	$	4,512	$	6,289	$	3	$	0	$	287	$	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 ~~June~~September 30, 2021 and December 31, 2020, loans and leases in the consolidated credit card trust included ~~$3.0~~$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


77~~Bank of America~~

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 ~~six~~nine months ended ~~June~~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 ~~six~~nine months ended ~~June~~September 30, 2020.

At ~~June~~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 ~~six~~nine months ended ~~June~~September 30, 2021. No subordinate securities were issued by the credit card securitization trust during the ~~six~~nine months ended ~~June~~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 $5.9 billion and ~~$14.7~~$20.6 billion of securities during the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$10.7~~$8.3 billion and ~~$18.1~~$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 ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, resecuritization proceeds included securities with an initial fair value of ~~$233~~$1.0 billion and $1.6 billion compared to $598 million and ~~$519 million compared to $4.4 billion and $4.9~~$5.5 billion, of which substantially all of the securities in the current-year period were classified as trading account assets. OfAll of the securities received as resecuritization proceeds during the three months ended ~~June~~September 30, 2020 ~~$654 million, $2.1 billion and $1.7 billion~~ were classified as trading account ~~assets, debt securities carried at fair value and HTM securities, respectively.~~assets. Of the securities received as resecuritization proceeds during the ~~six~~nine months ended ~~June~~September 30, 2020, ~~$1.2~~$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 ~~$3.7~~$3.9 billion and $3.5 billion at ~~June~~September 30, 2021 and December 31, 2020. The weighted-average remaining life of bonds held in the trusts at ~~June~~September 30, 2021 was ~~6.5~~6.4 years. There were no significant write-downs or downgrades of assets or issuers during the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020.

Other Variable Interest Entities

The table below summarizes select information related to other VIEs in which the Corporation held a variable interest at ~~June~~September 30, 2021 and December 31, 2020.


Other VIEs	Other VIEs													Other VIEs

		Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total			Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total

(Dollars in millions)	(Dollars in millions)	June 30, 2021						December 31, 2020						(Dollars in millions)	September 30, 2021						December 31, 2020
Maximum loss exposure	Maximum loss exposure	$	4,565	$	24,829	$	29,394	$	4,106	$	23,870	$	27,976	Maximum loss exposure	$	4,831	$	25,409	$	30,240	$	4,106	$	23,870	$	27,976
On-balance sheet assets	On-balance sheet assets													On-balance sheet assets
Trading account assets	Trading account assets	$	2,437	$	606	$	3,043	$	2,080	$	623	$	2,703	Trading account assets	$	2,523	$	577	$	3,100	$	2,080	$	623	$	2,703
Debt securities carried at fair value	Debt securities carried at fair value	0		8		8		0		9		9		Debt securities carried at fair value	—		7		7		—		9		9
Loans and leases	Loans and leases	2,319		182		2,501		2,108		184		2,292		Loans and leases	2,550		39		2,589		2,108		184		2,292
Allowance for loan and lease losses	Allowance for loan and lease losses	(3)		(8)		(11)		(3)		(3)		(6)		Allowance for loan and lease losses	(3)		(5)		(8)		(3)		(3)		(6)

All other assets	All other assets	28		23,541		23,569		54		22,553		22,607		All other assets	26		24,302		24,328		54		22,553		22,607
Total	Total	$	4,781	$	24,329	$	29,110	$	4,239	$	23,366	$	27,605	Total	$	5,096	$	24,920	$	30,016	$	4,239	$	23,366	$	27,605
On-balance sheet liabilities	On-balance sheet liabilities													On-balance sheet liabilities

Short-term borrowings	Short-term borrowings	$	37	$	0	$	37	$	22	$	0	$	22	Short-term borrowings	$	50	$	—	$	50	$	22	$	—	$	22
Long-term debt	Long-term debt	179		0		179		111		0		111		Long-term debt	215		—		215		111		—		111
All other liabilities	All other liabilities	0		5,972		5,972		0		5,658		5,658		All other liabilities	—		6,109		6,109		—		5,658		5,658
Total	Total	$	216	$	5,972	$	6,188	$	133	$	5,658	$	5,791	Total	$	265	$	6,109	$	6,374	$	133	$	5,658	$	5,791
Total assets of VIEs	Total assets of VIEs	$	4,781	$	83,221	$	88,002	$	4,239	$	77,984	$	82,223	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 ~~$2.7~~$2.8 billion and $2.3 billion at ~~June~~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 ~~$256~~$258 million and $298 million at ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020, the Corporation’s consolidated investment VIEs had total assets of ~~$764 million~~$1.0 billion and $494 million. The Corporation also held investments in unconsolidated VIEs with total assets of $6.6 billion and $5.4 billion at ~~June~~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 ~~June~~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 ~~June~~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 ~~$22.8~~$23.5 billion and $22.0 billion at ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020. The unfunded commitments are

expected to be paid over the next five years. The Corporation recognized tax credits and other tax benefits from investments in affordable housing partnerships of ~~$334~~$350 million and ~~$727 million~~$1.1 billion and reported pretax losses in other income of ~~$279~~

$282 million and ~~$555~~$837 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021. For the same periods in 2020, the Corporation recognized tax credits and other tax benefits of ~~$342~~$376 million and ~~$610~~$986 million and reported pretax losses in other income of ~~$255~~$272 million and ~~$527~~$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.

NOTE 7 Goodwill and Intangible Assets

Goodwill

The table below presents goodwill balances by business segment at ~~June~~September 30, 2021 and December 31, 2020. The reporting units utilized for goodwill impairment testing are the operating segments or one level below. The Corporation completed its annual goodwill impairment test as of June 30, 2021 and determined there was 0 impairment. For more information regarding the nature and accounting for the Corporation's annual goodwill impairment testing, see ~~Note 1 – Summary of Significant Accounting Principles~~ ~~to the Consolidated Financial Statements of the Corporation's 2020 Annual Report on Form 10-K.~~


Goodwill	Goodwill					Goodwill

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

Consumer Banking	Consumer Banking	$	30,137	$	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)	24,027		23,969		Global Banking (1)	24,027		23,969
Global Markets	Global Markets	5,182		5,182		Global Markets	5,182		5,182

Total goodwill	Total goodwill	$	69,023	$	68,951	Total goodwill	$	69,023	$	68,951

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

Intangible Assets

At both ~~June~~September 30, 2021 and December 31, 2020, the net carrying value of intangible assets was $2.2 billion. At both ~~June~~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 ~~$20~~$19 million and ~~$37~~$56 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$16~~$30 million and ~~$32~~$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.

79Bank of America

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


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

		June 30		December 31			September 30		December 31
(Dollars in millions)	(Dollars in millions)	2021		2020		(Dollars in millions)	2021		2020
Lease receivables	Lease receivables	$	16,852	$	17,627	Lease receivables	$	16,458	$	17,627
Unguaranteed residuals	Unguaranteed residuals	2,191		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	$	19,043	$	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 $7.2 billion and $6.9 billion at ~~June~~September 30, 2021 and December 31, 2020.

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


Lease Income	Lease Income									Lease Income

		Three Months Ended June 30				Six Months Ended June 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
Sales-type and direct financing leases	Sales-type and direct financing leases	$	152	$	175	$	316	$	372	Sales-type and direct financing leases	$	152	$	167	$	468	$	539
Operating leases	Operating leases	223		236		454		479		Operating leases	235		224		689		703
Total lease income	Total lease income	$	375	$	411	$	770	$	851	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 ~~June~~September 30, 2021 and December 31, 2020.


Lessee Arrangements	Lessee Arrangements					Lessee Arrangements

		June 30		December 31			September 30		December 31
(Dollars in millions)	(Dollars in millions)	2021		2020		(Dollars in millions)	2021		2020
Right-of-use asset	Right-of-use asset	$	10,030	$	10,000	Right-of-use asset	$	10,091	$	10,000
Lease liabilities	Lease liabilities	10,653		10,474		Lease liabilities	10,707		10,474

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		Amount		Rate		Amount		Rate
		Three Months Ended June 30								Six Months Ended June 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
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	$	270,443	(0.06)	%	$	312,404	0.03	%	$	260,271	(0.04)	%	$	295,599	0.57	%	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	278,300		n/a		451,179		n/a		278,300		n/a		451,179		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	$	218,535	0.25	%	$	187,180	0.38	%	$	207,880	0.25	%	$	193,359	1.01	%	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	218,628		n/a		194,870		n/a		218,628		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	21,600		(0.11)		25,901		0.12		20,639		(0.12)		26,166		0.88		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	23,333		n/a		27,315		n/a		23,333		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 ~~June~~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.

81Bank of America


Securities Financing Agreements	Securities Financing Agreements											Securities Financing Agreements

		Gross Assets/Liabilities (1)		Amounts Offset		Net Balance Sheet Amount		Financial Instruments (2)		Net Assets/Liabilities			Gross Assets/Liabilities (1)		Amounts Offset		Net Balance Sheet Amount		Financial Instruments (2)		Net Assets/Liabilities
(Dollars in millions)	(Dollars in millions)	June 30, 2021										(Dollars in millions)	September 30, 2021
Securities borrowed or purchased under agreements to resell (3)	Securities borrowed or purchased under agreements to resell (3)	$	524,946	$	(256,352)	$	268,594	$	(241,909)	$	26,685	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	Securities loaned or sold under agreements to repurchase	$	470,139	$	(256,352)	$	213,787	$	(202,435)	$	11,352	Securities loaned or sold under agreements to repurchase	$	479,459	$	(272,031)	$	207,428	$	(195,260)	$	12,168
Other (4)	Other (4)	15,071		0		15,071		(15,071)		0		Other (4)	10,167		—		10,167		(10,167)		—
Total	Total	$	485,210	$	(256,352)	$	228,858	$	(217,506)	$	11,352	Total	$	489,626	$	(272,031)	$	217,595	$	(205,427)	$	12,168

		December 31, 2020											December 31, 2020
Securities borrowed or purchased under agreements to resell (3)	Securities borrowed or purchased under agreements to resell (3)	$	492,387	$	(188,329)	$	304,058	$	(272,351)	$	31,707	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	Securities loaned or sold under agreements to repurchase	$	358,652	$	(188,329)	$	170,323	$	(158,867)	$	11,456	Securities loaned or sold under agreements to repurchase	$	358,652	$	(188,329)	$	170,323	$	(158,867)	$	11,456
Other (4)	Other (4)	16,210		0		16,210		(16,210)		0		Other (4)	16,210		—		16,210		(16,210)		—
Total	Total	$	374,862	$	(188,329)	$	186,533	$	(175,077)	$	11,456	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 ~~$20.1~~$18.8 billion and $14.7 billion reported in loans and leases on the Consolidated Balance Sheet at ~~June~~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	Remaining Contractual Maturity											Remaining Contractual Maturity

		Overnight and Continuous		30 Days or Less		After 30 Days Through 90 Days		Greater than 90 Days (1)		Total			Overnight and Continuous		30 Days or Less		After 30 Days Through 90 Days		Greater than 90 Days (1)		Total
(Dollars in millions)	(Dollars in millions)	June 30, 2021										(Dollars in millions)	September 30, 2021
Securities sold under agreements to repurchase	Securities sold under agreements to repurchase	$	187,994	$	164,693	$	33,069	$	44,846	$	430,602	Securities sold under agreements to repurchase	$	211,770	$	142,591	$	32,455	$	42,678	$	429,494
Securities loaned	Securities loaned	34,167		11		1,226		4,133		39,537		Securities loaned	43,780		87		428		5,670		49,965
Other	Other	15,071		0		0		0		15,071		Other	10,167		—		—		—		10,167
Total	Total	$	237,232	$	164,704	$	34,295	$	48,979	$	485,210	Total	$	265,717	$	142,678	$	32,883	$	48,348	$	489,626

		December 31, 2020											December 31, 2020
Securities sold under agreements to repurchase	Securities sold under agreements to repurchase	$	158,400	$	122,448	$	32,149	$	22,684	$	335,681	Securities sold under agreements to repurchase	$	158,400	$	122,448	$	32,149	$	22,684	$	335,681
Securities loaned	Securities loaned	19,140		271		1,029		2,531		22,971		Securities loaned	19,140		271		1,029		2,531		22,971
Other	Other	16,210		0		0		0		16,210		Other	16,210		—		—		—		16,210
Total	Total	$	193,750	$	122,719	$	33,178	$	25,215	$	374,862	Total	$	193,750	$	122,719	$	33,178	$	25,215	$	374,862

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

81Bank of America


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)	June 30, 2021								(Dollars in millions)	September 30, 2021
U.S. government and agency securities	U.S. government and agency securities	$	231,210	$	0	$	0	$	231,210	U.S. government and agency securities	$	223,197	$	—	$	—	$	223,197
Corporate securities, trading loans and other	Corporate securities, trading loans and other	15,674		2,843		1,160		19,677		Corporate securities, trading loans and other	13,003		2,809		1,053		16,865
Equity securities	Equity securities	20,633		36,121		13,852		70,606		Equity securities	22,221		47,016		9,060		78,297
Non-U.S. sovereign debt	Non-U.S. sovereign debt	161,345		573		59		161,977		Non-U.S. sovereign debt	166,678		140		54		166,872
Mortgage trading loans and ABS	Mortgage trading loans and ABS	1,740		0		0		1,740		Mortgage trading loans and ABS	4,395		—		—		4,395
Total	Total	$	430,602	$	39,537	$	15,071	$	485,210	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 ~~June~~September 30, 2021 and December 31, 2020, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of ~~$6.0~~$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 ~~June~~September 30, 2021 and December 31, 2020. The carrying value of these commitments at ~~June~~September 30, 2021 and December 31, 2020, excluding commitments accounted for under the fair value option, was ~~$1.7~~$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 ~~$5.3~~$4.9 billion and $4.0 billion at ~~June~~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 ~~$103~~$95 million and $99 million at ~~June~~September 30, 2021 and December 31, 2020, 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.

83Bank 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)	June 30, 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)	$	103,361	$	193,656	$	155,834	$	27,247	$	480,098	Loan commitments (1)	$	105,772	$	196,782	$	162,919	$	32,030	$	497,503
Home equity lines of credit	Home equity lines of credit	762		3,807		10,119		26,286		40,974		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)	20,853		11,634		1,766		539		34,792		Standby letters of credit and financial guarantees (2)	21,850		11,127		1,689		424		35,090
Letters of credit (3)		1,609		309		30		29		1,977
Letters of credit												Letters of credit	1,574		162		32		43		1,811
Legally binding commitments	Legally binding commitments	126,585		209,406		167,749		54,101		557,841		Legally binding commitments	130,037		212,510		174,877		57,754		575,178
Credit card lines (4)		394,052		0		0		0		394,052
Credit card lines (3)												Credit card lines (3)	402,382		—		—		—		402,382
Total credit extension commitments	Total credit extension commitments	$	520,637	$	209,406	$	167,749	$	54,101	$	951,893	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 ~~June~~September 30, 2021 and December 31, 2020, ~~$5.5~~$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 ~~$25.3~~$25.7 billion and ~~$9.1~~$8.9 billion at ~~June~~September 30, 2021, and $25.0 billion and $10.2 billion at December 31, 2020. Amounts in the table include consumer SBLCs of ~~$476~~$495 million and $500 million at ~~June~~September 30, 2021 and December 31, 2020.

(3) ~~At June 30, 2021 and December 31, 2020, included are letters of credit of $1.9 billion and $1.8 billion related to certain liquidity commitments of VIEs. For more information, see~~ ~~Note 6 – Securitizations and Other Variable Interest Entities~~.

~~(4)~~Includes business card unused lines of credit.

Other Commitments

At ~~June~~September 30, 2021 and December 31, 2020, the Corporation had commitments to purchase loans (e.g., residential mortgage and commercial real estate) of ~~$64~~$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 ~~$430~~$484 million and $645 million, which upon settlement will be included in trading account assets.

At ~~June~~September 30, 2021 and December 31, 2020, the Corporation had commitments to purchase commodities, primarily liquefied natural gas, of ~~$616 million~~$1.1 billion and $582 million, which upon settlement will be included in trading account assets.

At ~~June~~September 30, 2021 and December 31, 2020, the Corporation had commitments to enter into resale and forward-dated resale and securities borrowing agreements of ~~$127.8~~$129.9 billion and $66.5 billion, and commitments to enter into forward-dated repurchase and securities lending agreements of ~~$67.5~~$68.9 billion and $32.1 billion. These commitments generally expire within the next 12 months.

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

totaled $6.3 billion and $7.1 billion. At ~~both June~~September 30, 2021 and December 31, 2020, the Corporation’s maximum exposure related to these guarantees totaled ~~$934~~$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 ~~six months ended June~~preceding six-month period, which was $450.7 billion, is an estimate of the Corporation’s maximum potential exposure as of September 30, ~~2021, the Corporation processed an aggregate purchase volume of $411.8 billion.~~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.


						Bank of America84

The reserve for representations and warranties obligations and corporate guarantees was $1.2 billion and $1.3 billion at ~~June~~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


83~~Bank of America~~

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 ~~$13.6~~$34.7 billion and $22.5 billion at ~~June~~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 ~~June~~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 ~~$55~~$66 million and ~~$89~~$155 million was recognized for the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to ~~$57~~$636 million and ~~$81~~$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 ~~June~~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 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 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 ~~July 30, 2021.~~October 29, 2021

During the three and ~~six~~nine months ended ~~June~~September 30, 2021, the Corporation repurchased and retired ~~103~~248 million and ~~204~~452 million shares of common stock, which reduced shareholders’ equity by ~~$4.2~~$9.9 billion and ~~$7.7~~$17.6 billion.

During the ~~six~~nine months ended ~~June~~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 ~~June~~September 30, 2021, the Corporation had reserved ~~566~~562 million unissued shares of common stock for future issuances under employee stock plans, convertible notes and preferred stock.

On ~~July 21,~~October 20, 2021, the Board of Directors declared a quarterly common stock dividend of $0.21 per share.

Preferred Stock

During the three months ended March 31, 2021, June 30, 2021 and ~~June~~September 30, 2021, the Corporation declared $490 million, $260 million and ~~$260~~$431 million of cash dividends on preferred stock, or a total of ~~$750 million~~$1.2 billion for the ~~six~~nine months ended ~~June~~September 30, 2021. ~~Additionally, on April 25, 2021, the Corporation fully redeemed Series EE Preferred Stock for $900 million.~~ For more information on the Corporation's preferred stock, including liquidation preference, dividend requirements and redemption period, see Note 13 – Shareholders’ Equity to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

On October 26, 2021, the Corporation 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 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.

NOTE 12 Accumulated Other Comprehensive Income (Loss)

The table below presents the changes in accumulated OCI after-tax for the ~~six~~nine months ended ~~June~~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	4,693		53		732		100		(107)		5,471		Net change	4,794		(5)		808		144		(86)		5,655
Balance, June 30, 2020		$	5,016	$	(1,441)	$	332	$	(4,068)	$	(1,001)	$	(1,162)
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	(1,090)		265		(699)		120		(3)		(1,407)		Net change	(1,243)		292		(1,130)		170		(29)		(1,940)
Balance, June 30, 2021		$	4,032	$	(1,727)	$	(273)	$	(4,146)	$	(949)	$	(3,063)
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 ~~six~~nine months ended ~~June~~September 30, 2021 and 2020.

85Bank of America


		Pretax		Tax effect		After- tax		Pretax		Tax effect		After- tax					Pretax		Tax effect		After- tax		Pretax		Tax effect		After- tax
		Six Months Ended June 30															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	$	(1,445)	$	355	$	(1,090)	$	6,628	$	(1,652)	$	4,976			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		(377)		94		(283)				Net realized gains reclassified into earnings (1)	(4)		1		(3)		(379)		95		(284)
Net change	Net change	(1,445)		355		(1,090)		6,251		(1,558)		4,693				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		336		(76)		260		63		(13)		50
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)	7		(2)		5		4		(1)		3				Net realized losses reclassified into earnings (1)	12		(3)		9		4		(1)		3

Net change	Net change	343		(78)		265		67		(14)		53				Net change	377		(85)		292		(9)		4		(5)
Derivatives:	Derivatives:															Derivatives:
Net increase (decrease) in fair value	Net increase (decrease) in fair value	(820)		205		(615)		914		(222)		692				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	(84)		20		(64)		53		(13)		40				Net interest income	(125)		30		(95)		96		(23)		73

Compensation and benefits expense	Compensation and benefits expense	(26)		6		(20)		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	(110)		26		(84)		53		(13)		40				Net realized (gains) losses reclassified into earnings	(165)		40		(125)		91		(22)		69

Net change	Net change	(930)		231		(699)		967		(235)		732				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)	142		(22)		120		133		(33)		100				Net actuarial losses and other reclassified into earnings (2)	209		(39)		170		191		(47)		144

Net change	Net change	142		(22)		120		133		(33)		100				Net change	209		(39)		170		191		(47)		144
Foreign currency:	Foreign currency:															Foreign currency:
Net decrease in fair value	Net decrease in fair value	116		(119)		(3)		115		(222)		(107)				Net decrease in fair value	240		(269)		(29)		(29)		(57)		(86)

Net change	Net change	116		(119)		(3)		115		(222)		(107)				Net change	240		(269)		(29)		(29)		(57)		(86)
Total other comprehensive income (loss)	Total other comprehensive income (loss)	$	(1,774)	$	367	$	(1,407)	$	7,533	$	(2,062)	$	5,471			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 ~~six~~nine months ended ~~June~~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 June 30				Six Months Ended June 30					Three Months Ended September 30				Nine Months Ended September 30
(In millions, except per share information)	(In millions, except per share information)	2021		2020		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	$	9,224	$	3,533	$	17,274	$	7,543	Net income	$	7,691	$	4,881	$	24,965	$	12,424
Preferred stock dividends	Preferred stock dividends	(260)		(249)		(750)		(718)		Preferred stock dividends	(431)		(441)		(1,181)		(1,159)
Net income applicable to common shareholders	Net income applicable to common shareholders	$	8,964	$	3,284	$	16,524	$	6,825	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	8,620.8		8,739.9		8,660.4		8,777.6		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	$	1.04	$	0.38	$	1.91	$	0.78	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	$	8,964	$	3,284	$	16,524	$	6,825	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	56		0		112		0		Add preferred stock dividends due to assumed conversions	—		—		168		—
Net income allocated to common shareholders	Net income allocated to common shareholders	$	9,020	$	3,284	$	16,636	$	6,825	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	8,620.8		8,739.9		8,660.4		8,777.6		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)	114.7		28.2		115.8		35.7		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	8,735.5		8,768.1		8,776.2		8,813.3		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	$	1.03	$	0.37	$	1.90	$	0.77	Diluted earnings per common share	$	0.85	$	0.51	$	2.75	$	1.28

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

For the ~~three and six~~nine months ended ~~June~~September 30, 2021, 62 million average dilutive potential common shares associated with the Series L preferred stock were included in the diluted share count under the “if-converted” method, whereas they were antidilutive for the three ~~and six~~ months ended ~~June~~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 ~~six~~nine months ended ~~June~~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.

87Bank 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 ~~June~~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.


		June 30, 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	$	1,450	$	0	$	0	$	—	$	1,450	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		163,344		0		—		163,344		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)		40,733		1,299		0		—		42,032
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		36,707		1,764		—		38,471		Corporate securities, trading loans and other	—		36,895		1,634		—		38,529
Equity securities	Equity securities	104,218		39,316		260		—		143,794		Equity securities	96,266		39,577		209		—		136,052
Non-U.S. sovereign debt	Non-U.S. sovereign debt	10,621		20,919		414		—		31,954		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		23,567		97		—		23,664		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		10,417		1,401		—		11,818		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)	155,572		132,225		3,936		—		291,733		Total trading account assets ~~(3)~~(2)	152,224		132,526		3,816		—		288,566
Derivative assets	Derivative assets	17,487		331,302		3,312		(310,603)		41,498		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		159,245		1,088		0		—		160,333
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		57,889		0		—		57,889		Agency	—		52,297		—		—		52,297
Agency-collateralized mortgage obligations	Agency-collateralized mortgage obligations	0		4,226		0		—		4,226		Agency-collateralized mortgage obligations	—		3,776		—		—		3,776
Non-agency residential	Non-agency residential	0		647		205		—		852		Non-agency residential	—		405		398		—		803
Commercial	Commercial	0		18,919		0		—		18,919		Commercial	—		18,819		—		—		18,819
Non-U.S. securities	Non-U.S. securities	0		17,156		11		—		17,167		Non-U.S. securities	—		12,283		10		—		12,293

Other taxable securities	Other taxable securities	0		2,847		74		—		2,921		Other taxable securities	—		2,560		73		—		2,633
Tax-exempt securities	Tax-exempt securities	0		15,823		51		—		15,874		Tax-exempt securities	—		15,559		53		—		15,612
Total AFS debt securities	Total AFS debt securities	159,245		118,595		341		—		278,181		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		518		0		0		—		518
U.S. Treasury and government agencies												U.S. Treasury and government agencies	276		—		—		—		276

Non-agency residential MBS	Non-agency residential MBS	0		451		281		—		732		Non-agency residential MBS	—		411		296		—		707

Non-U.S. and other securities	Non-U.S. and other securities	3,491		5,991		0		—		9,482		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	4,009		6,442		281		—		10,732		Total other debt securities carried at fair value	4,127		5,596		296		—		10,019
Loans and leases	Loans and leases	0		6,093		857		—		6,950		Loans and leases	—		6,848		718		—		7,566
Loans held-for-sale	Loans held-for-sale	0		1,944		263		—		2,207		Loans held-for-sale	—		3,642		340		—		3,982

Other assets ~~(4)~~(3)	Other assets ~~(4)~~(3)	10,034		3,119		1,775		—		14,928		Other assets ~~(4)~~(3)	6,659		2,628		1,744		—		11,031

Total assets ~~(5)~~(4)	Total assets ~~(5)~~(4)	$	347,797	$	763,064	$	10,765	$	(310,603)	$	811,023	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	$	515	$	0	$	—	$	515	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		165,781		0		—		165,781		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		22,888		289		0		—		23,177
U.S. Treasury and government agencies												U.S. Treasury and government agencies	20,967		1,105		—		—		22,072
Equity securities	Equity securities	47,288		4,358		0		—		51,646		Equity securities	47,035		5,472		—		—		52,507
Non-U.S. sovereign debt	Non-U.S. sovereign debt	17,404		9,074		0		—		26,478		Non-U.S. sovereign debt	17,766		10,511		—		—		28,277
Corporate securities and other	Corporate securities and other	0		8,766		17		—		8,783		Corporate securities and other	—		9,350		11		—		9,361

Total trading account liabilities	Total trading account liabilities	87,580		22,487		17		—		110,084		Total trading account liabilities	85,768		26,438		11		—		112,217
Derivative liabilities	Derivative liabilities	16,945		330,062		6,196		(314,287)		38,916		Derivative liabilities	18,341		328,506		6,152		(314,937)		38,062
Short-term borrowings	Short-term borrowings	0		4,490		0		—		4,490		Short-term borrowings	—		4,128		—		—		4,128
Accrued expenses and other liabilities	Accrued expenses and other liabilities	11,899		3,275		0		—		15,174		Accrued expenses and other liabilities	7,471		2,790		—		—		10,261
Long-term debt	Long-term debt	0		29,301		1,060		—		30,361		Long-term debt	—		27,570		1,126		—		28,696
Total liabilities ~~(5)~~(4)	Total liabilities ~~(5)~~(4)	$	116,424	$	555,911	$	7,273	$	(314,287)	$	365,321	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 ~~$23.7 billion of GSE obligations.~~

~~(3)Includes~~ securities with a fair value of ~~$8.6~~$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 certain commodities inventory of ~~$2.1~~$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 ~~$976~~$940 million which are classified as Level 3 assets.

~~(5)~~(4)Total recurring Level 3 assets were ~~0.36~~0.37 percent of total consolidated assets, and total recurring Level 3 liabilities were 0.26 percent of total consolidated liabilities.

87Bank of America


		December 31, 2020											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 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.

89Bank of America

The following tables present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and ~~six~~nine months ended ~~June~~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 April 1		Total Realized/Unrealized Gains (Losses) in Net Income (2)		Gains (Losses) in OCI (3)		Gross								Gross Transfers into Level 3		Gross Transfers out of Level 3		Balance June 30		Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2)			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 June 30, 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	$	1,516	$	38	$	0	$	185	$	(110)	$	0	$	(116)	$	306	$	(55)	$	1,764	$	16	Corporate securities, trading loans and other	$	1,764	$	(2)	$	—	$	89	$	(43)	$	—	$	(118)	$	239	$	(295)	$	1,634	$	(20)
Equity securities	Equity securities	273		32		0		8		(26)		0		0		26		(53)		260		23		Equity securities	260		(2)		—		18		(11)		—		—		20		(76)		209		(2)
Non-U.S. sovereign debt	Non-U.S. sovereign debt	334		20		34		0		0		0		0		26		0		414		20		Non-U.S. sovereign debt	414		4		(26)		16		—		—		(9)		—		—		399		4
Mortgage trading loans, MBS and ABS	Mortgage trading loans, MBS and ABS	1,561		(10)		0		119		(274)		0		(28)		188		(58)		1,498		(10)		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	3,684		80		34		312		(410)		0		(144)		546		(166)		3,936		49		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)	(3,206)		5		0		211		(88)		0		36		(83)		241		(2,884)		(19)		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	284		1		3		0		0		0		(8)		0		(75)		205		0		Non-agency residential MBS	205		(1)		(2)		—		—		—		(12)		208		—		398		(4)

Non-U.S. securities	Non-U.S. securities	13		(1)		0		0		0		0		(1)		0		0		11		0		Non-U.S. securities	11		(3)		—		—		—		—		2		—		—		10		—

Other taxable securities	Other taxable securities	73		0		1		0		0		0		0		0		0		74		0		Other taxable securities	74		—		(1)		—		—		—		—		—		—		73		—
Tax-exempt securities	Tax-exempt securities	98		3		0		0		0		0		0		0		(50)		51		3		Tax-exempt securities	51		2		—		—		—		—		—		—		—		53		2
Total AFS debt securities	Total AFS debt securities	468		3		4		0		0		0		(9)		0		(125)		341		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	260		3		0		0		0		0		(14)		32		0		281		3		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)	793		34		0		0		0		60		(46)		16		0		857		34		Loans and leases (5,6)	857		(59)		—		—		—		—		(67)		—		(13)		718		(59)

Loans held-for-sale (5,6)	Loans held-for-sale (5,6)	220		10		11		38		0		0		(23)		7		0		263		4		Loans held-for-sale (5,6)	263		13		(7)		94		(1)		—		(22)		—		—		340		10
Other assets (6,7)	Other assets (6,7)	2,090		(153)		4		55		(144)		23		(100)		0		0		1,775		(117)		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		(1)		0		0		0		(17)		0		Trading account liabilities – Corporate securities and other	(17)		6		—		—		—		—		—		—		—		(11)		(1)

Long-term debt (5)	Long-term debt (5)	(1,028)		(67)		15		2		0		(2)		19		0		1		(1,060)		(66)		Long-term debt (5)	(1,060)		(65)		2		—		—		(9)		30		(25)		1		(1,126)		(65)

Three Months Ended June 30, 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	$	1,640	$	(27)	$	0	$	64	$	(42)	$	0	$	(42)	$	147	$	(192)	$	1,548	$	(27)	Corporate securities, trading loans and other	$	1,548	$	(20)	$	—	$	—	$	(49)	$	—	$	(91)	$	136	$	(54)	$	1,470	$	(34)
Equity securities	Equity securities	249		1		0		3		(23)		0		0		0		(36)		194		0		Equity securities	194		8		—		4		(3)		—		—		7		(3)		207		3
Non-U.S. sovereign debt	Non-U.S. sovereign debt	250		26		(10)		2		(11)		0		(9)		0		0		248		26		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	1,733		(22)		(1)		104		(229)		0		(21)		259		(87)		1,736		(36)		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	3,872		(22)		(11)		173		(305)		0		(72)		406		(315)		3,726		(37)		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)	(2,909)		(463)		0		137		(233)		0		(178)		252		51		(3,343)		(558)		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	524		(2)		4		23		0		0		(10)		5		(82)		462		(2)		Non-agency residential MBS	462		—		5		—		—		—		(10)		25		(42)		440		—

Non-U.S. securities	Non-U.S. securities	1		0		0		0		0		0		0		4		0		5		0		Non-U.S. securities	5		—		—		—		—		—		(1)		10		—		14		—

Other taxable securities	Other taxable securities	68		0		0		0		(4)		0		0		1		0		65		0		Other taxable securities	65		—		—		3		—		—		—		—		—		68		—
Tax-exempt securities	Tax-exempt securities	100		(24)		1		0		0		0		0		265		(5)		337		(24)		Tax-exempt securities	337		15		—		—		—		—		(167)		—		(5)		180		15
Total AFS debt securities	Total AFS debt securities	693		(26)		5		23		(4)		0		(10)		275		(87)		869		(26)		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	269		43		0		0		0		0		(4)		150		(9)		449		43		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)	558		47		0		32		(1)		22		(15)		98		0		741		46		Loans and leases (5,6)	741		(2)		—		—		(25)		—		(89)		—		—		625		(5)

Loans held-for-sale (5,6)	Loans held-for-sale (5,6)	1,077		9		(5)		0		(81)		0		(30)		0		0		970		5		Loans held-for-sale (5,6)	970		(7)		(2)		—		(25)		—		(14)		—		—		922		(10)
Other assets (6,7)	Other assets (6,7)	1,960		(68)		13		0		0		133		(128)		3		(2)		1,911		(91)		Other assets (6,7)	1,911		25		6		—		1		53		(121)		—		—		1,875		4
Trading account liabilities – Equity securities	Trading account liabilities – Equity securities	(1)		0		0		0		0		0		0		0		0		(1)		0		Trading account liabilities – Equity securities	(1)		—		—		—		—		—		—		—		—		(1)		—
Trading account liabilities – Corporate securities and other	Trading account liabilities – Corporate securities and other	(20)		4		0		(1)		0		0		1		0		0		(16)		0		Trading account liabilities – Corporate securities and other	(16)		2		—		—		(2)		—		—		—		—		(16)		—

Long-term debt (5)	Long-term debt (5)	(721)		(72)		(127)		0		0		(32)		14		(29)		11		(956)		(74)		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 ~~$67~~$38 million and ~~$(126)~~$8 million related to financial instruments still held at ~~June~~September 30, 2021 and 2020.

(4)Net derivative assets (liabilities) include derivative assets of ~~$3.3~~$3.8 billion and ~~$2.6~~$2.5 billion and derivative liabilities of $6.2 billion and ~~$5.9~~$6.0 billion at ~~June~~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.

89Bank of America


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 June 30		Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2)			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)	(Dollars in millions)							Purchases		Sales		Issuances		Settlements										(Dollars in millions)							Purchases		Sales		Issuances		Settlements
Six Months Ended June 30, 2021
Nine Months Ended September 30, 2021																								Nine 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	$	25	$	0	$	426	$	(257)	$	0	$	(133)	$	458	$	(114)	$	1,764	$	(5)	Corporate securities, trading loans and other	$	1,359	$	23	$	—	$	515	$	(300)	$	—	$	(251)	$	697	$	(409)	$	1,634	$	(42)
Equity securities	Equity securities	227		22		0		53		(49)		0		0		78		(71)		260		14		Equity securities	227		20		—		71		(60)		—		—		98		(147)		209		(17)
Non-U.S. sovereign debt	Non-U.S. sovereign debt	354		20		12		2		0		0		0		26		0		414		23		Non-U.S. sovereign debt	354		24		(14)		18		—		—		(9)		26		—		399		27
Mortgage trading loans, ABS and other MBS	Mortgage trading loans, ABS and other MBS	1,440		39		0		247		(495)		1		(64)		444		(114)		1,498		16		Mortgage trading loans, ABS and other MBS	1,440		(4)		—		344		(584)		1		(125)		624		(122)		1,574		(65)
Total trading account assets	Total trading account assets	3,380		106		12		728		(801)		1		(197)		1,006		(299)		3,936		48		Total trading account assets	3,380		63		(14)		948		(944)		1		(385)		1,445		(678)		3,816		(97)
Net derivative assets (liabilities) (4)	Net derivative assets (liabilities) (4)	(3,468)		291		0		349		(349)		0		183		(191)		301		(2,884)		192		Net derivative assets (liabilities) (4)	(3,468)		855		—		473		(517)		—		206		(18)		144		(2,325)		579
AFS debt securities:	AFS debt securities:																							AFS debt securities:

Non-agency residential MBS	Non-agency residential MBS	378		(15)		(94)		0		0		0		(25)		36		(75)		205		(2)		Non-agency residential MBS	378		(16)		(96)		—		—		—		(37)		244		(75)		398		(7)

Non-U.S. securities	Non-U.S. securities	18		(1)		0		0		0		0		(6)		0		0		11		0		Non-U.S. securities	18		(4)		—		—		—		—		(4)		—		—		10		—

Other taxable securities	Other taxable securities	71		0		(5)		8		0		0		0		0		0		74		0		Other taxable securities	71		—		(6)		8		—		—		—		—		—		73		—
Tax-exempt securities	Tax-exempt securities	176		17		0		0		0		0		0		0		(142)		51		16		Tax-exempt securities	176		19		—		—		—		—		—		—		(142)		53		18
Total AFS debt securities	Total AFS debt securities	643		1		(99)		8		0		0		(31)		36		(217)		341		14		Total AFS debt securities	643		(1)		(102)		8		—		—		(41)		244		(217)		534		11
Other debt securities carried at fair value – Non-agency residential MBS	Other debt securities carried at fair value – Non-agency residential MBS	267		2		0		0		0		0		(20)		32		0		281		2		Other debt securities carried at fair value – Non-agency residential MBS	267		—		—		—		—		—		(29)		58		—		296		—
Loans and leases (5,6)	Loans and leases (5,6)	717		104		0		0		0		70		(80)		46		0		857		111		Loans and leases (5,6)	717		45		—		—		—		70		(147)		46		(13)		718		52
Loans held-for-sale (5,6)	Loans held-for-sale (5,6)	236		4		3		38		0		0		(40)		26		(4)		263		(5)		Loans held-for-sale (5,6)	236		17		(4)		132		(1)		—		(62)		26		(4)		340		40
Other assets (6,7)	Other assets (6,7)	1,970		21		8		55		(145)		64		(205)		7		0		1,775		46		Other assets (6,7)	1,970		36		2		56		(144)		115		(300)		9		—		1,744		92

Trading account liabilities – Corporate securities and other	Trading account liabilities – Corporate securities and other	(16)		0		0		0		0		(1)		0		0		0		(17)		1		Trading account liabilities – Corporate securities and other	(16)		6		—		—		—		(1)		—		—		—		(11)		—

Long-term debt (5)	Long-term debt (5)	(1,164)		(18)		2		2		0		(2)		37		(32)		115		(1,060)		(34)		Long-term debt (5)	(1,164)		(83)		4		2		—		(11)		67		(57)		116		(1,126)		(54)

Six Months Ended June 30, 2020
Nine Months Ended September 30, 2020																								Nine 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	$	(130)	$	(1)	$	280	$	(132)	$	8	$	(74)	$	384	$	(294)	$	1,548	$	(122)	Corporate securities, trading loans and other	$	1,507	$	(150)	$	(1)	$	280	$	(181)	$	8	$	(165)	$	520	$	(348)	$	1,470	$	(128)
Equity securities	Equity securities	239		(25)		0		29		(34)		0		0		25		(40)		194		(23)		Equity securities	239		(17)		—		33		(37)		—		—		32		(43)		207		(20)
Non-U.S. sovereign debt	Non-U.S. sovereign debt	482		28		(63)		75		(59)		0		(19)		17		(213)		248		28		Non-U.S. sovereign debt	482		35		(69)		76		(61)		—		(20)		100		(253)		290		33
Mortgage trading loans, ABS and other MBS	Mortgage trading loans, ABS and other MBS	1,553		(147)		(3)		466		(474)		0		(40)		492		(111)		1,736		(139)		Mortgage trading loans, ABS and other MBS	1,553		(145)		(3)		502		(582)		11		(52)		659		(173)		1,770		(135)
Total trading account assets	Total trading account assets	3,781		(274)		(67)		850		(699)		8		(133)		918		(658)		3,726		(256)		Total trading account assets	3,781		(277)		(73)		891		(861)		19		(237)		1,311		(817)		3,737		(250)
Net derivative assets (liabilities) (4)	Net derivative assets (liabilities) (4)	(2,538)		(117)		0		177		(381)		0		(166)		(276)		(42)		(3,343)		(500)		Net derivative assets (liabilities) (4)	(2,538)		111		—		216		(558)		—		(224)		(273)		(265)		(3,531)		(356)
AFS debt securities:	AFS debt securities:																							AFS debt securities:

Non-agency residential MBS	Non-agency residential MBS	424		(5)		(9)		23		0		0		(22)		133		(82)		462		(5)		Non-agency residential MBS	424		(5)		(4)		23		—		—		(32)		158		(124)		440		(5)
Non-U.S. securities	Non-U.S. securities	2		0		0		0		(1)		0		0		4		0		5		0		Non-U.S. securities	2		—		—		—		(1)		—		(1)		14		—		14		—

Other taxable securities	Other taxable securities	65		0		0		3		(4)		0		0		1		0		65		0		Other taxable securities	65		—		—		6		(4)		—		—		1		—		68		—
Tax-exempt securities	Tax-exempt securities	108		(34)		3		0		0		0		0		265		(5)		337		(33)		Tax-exempt securities	108		(19)		3		—		—		—		(167)		265		(10)		180		(18)
Total AFS debt securities	Total AFS debt securities	599		(39)		(6)		26		(5)		0		(22)		403		(87)		869		(38)		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	Other debt securities carried at fair value – Non-agency residential MBS	299		(6)		0		0		0		0		(8)		176		(12)		449		(29)		Other debt securities carried at fair value – Non-agency residential MBS	299		12		—		—		—		—		(19)		178		(12)		458		(12)
Loans and leases (5,6)	Loans and leases (5,6)	693		(72)		0		32		(1)		22		(31)		98		0		741		(36)		Loans and leases (5,6)	693		(74)		—		32		(26)		22		(120)		98		—		625		(61)
Loans held-for-sale (5,6)	Loans held-for-sale (5,6)	375		0		(33)		0		(81)		691		(75)		93		0		970		(10)		Loans held-for-sale (5,6)	375		(7)		(35)		—		(106)		691		(89)		93		—		922		(19)
Other assets (6,7)	Other assets (6,7)	2,360		(319)		(17)		0		1		153		(270)		5		(2)		1,911		(376)		Other assets (6,7)	2,360		(294)		(11)		—		2		206		(391)		5		(2)		1,875		(373)

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	(2)		1		—		—		—		—		—		—		—		(1)		1
Trading account liabilities – Corporate securities and other	Trading account liabilities – Corporate securities and other	(15)		5		0		(7)		0		0		1		0		0		(16)		1		Trading account liabilities – Corporate securities and other	(15)		7		—		(7)		(2)		—		1		—		—		(16)		—

Long-term debt (5)	Long-term debt (5)	(1,149)		55		60		8		0		(45)		155		(52)		12		(956)		37		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 ~~gains (losses)~~losses of ~~$(5)~~$45 million and ~~$(40)~~$47 million related to financial instruments still held at ~~June~~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 ~~June~~September 30, 2021 and December 31, 2020.

Quantitative Information about Level 3 Fair Value Measurements at June 30, 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

1,237

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

368

Prepayment speed

1% to 37% CPR

18% CPR

Trading account assets – Mortgage trading loans, ABS and other MBS

306

Prepayment speed

1% to 42% CPR

19% CPR

Loans and leases

383

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

205

Price

$0 to td55

$96

AFS debt securities – Non-agency residential

398

Price

$0 to td60

$91

Other debt securities carried at fair value – Non-agency residential

281

Loss severity

0% to 42%

Other debt securities carried at fair value – Non-agency residential

296

Loss severity

0% to 44%

Instruments backed by commercial real estate assets

440

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

266

Price

$0 to td01

$60

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

3,741

Discounted cash flow, Market comparables

Yield

0% to 17%

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

1,498

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

414

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

1,050

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 td56

$71

AFS debt securities – Tax-exempt securities

Price

$0 to td86

$67

Loans and leases

474

Long-dated equity volatilities

44%

n/a

Loans and leases

359

Long-dated equity volatilities

45%

n/a

Loans held-for-sale

254

Loans held-for-sale

332

Other assets, primarily auction rate securities

799

Discounted cash flow, Market comparables

Price

td0 to $96

$93

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

976

Discounted cash
flow

Weighted-average life, fixed rate (5)

0 to 14 years

4 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

(1,060)

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

Yield

0% to 14%

Long-term debt

(1,126)

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

Yield

0% to 16%

Equity correlation

3% to 99%

Equity correlation

3% to 99%

Long-dated equity volatilities

4% to 61%

Long-dated equity volatilities

4% to 67%

Price

$0 to td24

$87

Price

$0 to td21

$85

Natural gas forward price

td/MMBtu to $6/MMBtu

$3 /MMBtu

Natural gas forward price

td/MMBtu to td2/MMBtu

$4 /MMBtu

Net derivative assets (liabilities)

Credit derivatives

(108)

Discounted cash flow, Stochastic recovery correlation model

Credit spreads

1 to 375 bps

85 bps

Credit derivatives

(109)

Discounted cash flow, Stochastic recovery correlation model

Credit spreads

1 to 611 bps

62 bps

Upfront points

16 to 100 points

74 points

Upfront points

16 to 100 points

68 points

Prepayment speed

15% CPR

n/a

Prepayment speed

15% CPR

n/a

Default rate

2% CDR

n/a

Default rate

2% CDR

n/a

Credit correlation

21% to 60%

Credit correlation

24% to 60%

Price

$0 to td22

$63

Price

$0 to td22

$66

Equity derivatives

(1,440)

Industry standard derivative pricing (3)

Equity correlation

3% to 99%

Equity derivatives

(1,442)

Industry standard derivative pricing (3)

Equity correlation

3% to 99%

Long-dated equity volatilities

4% to 60%

Long-dated equity volatilities

4% to 67%

Commodity derivatives

(1,259)

Discounted cash flow, Industry standard derivative pricing (3)

Natural gas forward price

td/MMBtu to $6/MMBtu

$3 /MMBtu

Commodity derivatives

(942)

Discounted cash flow, Industry standard derivative pricing (3)

Natural gas forward price

td/MMBtu to td2/MMBtu

$4 /MMBtu

Correlation

54% to 85%

Correlation

64% to 82%

Volatilities

27% to 51%

Power forward price

td2 to $74

td8

Volatilities

41% to 113%

Interest rate derivatives

(77)

Industry standard derivative pricing (4)

Correlation (IR/IR)

(1)% to 90%

Interest rate derivatives

168

Industry standard derivative pricing (4)

Correlation (IR/IR)

(1)% to 90%

Correlation (FX/IR)

0% to 58%

Correlation (FX/IR)

0% to 58%

Long-dated inflation rates

(8)% to 15%

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)

(2,884)

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 ~~87:~~88: Trading account assets – Corporate securities, trading loans and other of ~~$1.8~~$1.6 billion, Trading account assets – Non-U.S. sovereign debt of ~~$414~~$399 million, Trading account assets – Mortgage trading loans, MBS and ABS of ~~$1.5~~$1.6 billion, AFS debt securities of ~~$341~~$534 million, Other debt securities carried at fair value - Non-agency residential of ~~$281~~$296 million, Other assets, including MSRs, of ~~$1.8~~$1.7 billion, Loans and leases of ~~$857~~$718 million and LHFS of ~~$263~~$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

91Bank of America

Quantitative Information about Level 3 Fair Value Measurements at December 31, 2020

(Dollars in millions)

Inputs

Financial Instrument

Fair
Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted Average (1)

Loans and Securities (2)

Instruments backed by residential real estate assets

1,543

Discounted cash
flow, Market comparables

Yield

(3)% to 25%

Trading account assets – Mortgage trading loans, ABS and other MBS

467

Prepayment speed

1% to 56% CPR

20% CPR

Loans and leases

431

Default rate

0% to 3% CDR

1% CDR

AFS debt securities - Non-agency residential

378

Price

$0 to $168

$110

Other debt securities carried at fair value - Non-agency residential

267

Loss severity

0% to 47%

Instruments backed by commercial real estate assets

407

Discounted cash
flow

Yield

0% to 25%

Trading account assets – Corporate securities, trading loans and other

262

Price

$0 to $100

$52

Trading account assets – Mortgage trading loans, ABS and other MBS

AFS debt securities, primarily other taxable securities

Loans held-for-sale

Commercial loans, debt securities and other

3,066

Discounted cash flow, Market comparables

Yield

0% to 26%

Trading account assets – Corporate securities, trading loans and other

1,097

Prepayment speed

10% to 20%

Trading account assets – Non-U.S. sovereign debt

354

Default rate

3% to 4%

Trading account assets – Mortgage trading loans, ABS and other MBS

930

Loss severity

35% to 40%

AFS debt securities – Tax-exempt securities

176

Price

$0 to $142

$66

Loans and leases

286

Long-dated equity volatilities

77%

n/a

Loans held-for-sale

223

Other assets, primarily auction rate securities

937

Discounted cash flow, Market comparables

Price

$10 to $97

$91

Discount rate

n/a

MSRs

1,033

Discounted cash
flow

Weighted-average life, fixed rate (5)

0 to 13 years

4 years

Weighted-average life, variable rate (5)

0 to 10 years

3 years

Option-adjusted spread, fixed rate

7% to 14%

Option-adjusted spread, variable rate

9% to 15%

Structured liabilities

Long-term debt

(1,164)

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

Yield

0% to 11%

Equity correlation

2% to 100%

Long-dated equity volatilities

7% to 64%

Price

$0 to $124

$86

Natural gas forward price

$1/MMBtu to $4/MMBtu

$3/MMBtu

Net derivative assets (liabilities)

Credit derivatives

(112)

Discounted cash flow, Stochastic recovery correlation model

Yield

n/a

Upfront points

0 to 100 points

75 points

Prepayment speed

15% to 100% CPR

22% CPR

Default rate

2% CDR

n/a

Credit correlation

21% to 64%

Price

$0 to $122

$69

Equity derivatives

(1,904)

Industry standard derivative pricing (3)

Equity correlation

2% to 100%

Long-dated equity volatilities

7% to 64%

Commodity derivatives

(1,426)

Discounted cash flow, Industry standard derivative pricing (3)

Natural gas forward price

$1/MMBtu to $4/MMBtu

$3/MMBtu

Correlation

39% to 85%

Volatilities

23% to 70%

Interest rate derivatives

(26)

Industry standard derivative pricing (4)

Correlation (IR/IR)

15% to 96%

Correlation (FX/IR)

0% to 46%

Long-dated inflation rates

G(7)% to 84%

Long-dated inflation volatilities

0% to 1%

Interest rates volatilities

0% to 2%

Total net derivative assets (liabilities)

(3,468)

(1)For loans and securities, structured liabilities and net derivative assets (liabilities), the weighted average is calculated based upon the absolute fair value of the instruments.

(2)The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page ~~88:~~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 ~~six~~nine months ended ~~June~~September 30, 2021 and 2020.

																				Assets Measured at Fair Value on a Nonrecurring Basis
		June 30, 2021				Three Months Ended June 30, 2021		Six Months Ended June 30, 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	$	1,105	$	52	$	9	$	9		Loans held-for-sale	$	124	$	20	$	(2)	$	4
Loans and leases (1)	Loans and leases (1)	0		142		(24)		(37)			Loans and leases (1)	—		182		(16)		(47)
Foreclosed properties (2, 3)	Foreclosed properties (2, 3)	0		3		0		(1)			Foreclosed properties (2, 3)	—		17		(3)		(4)
Other assets	Other assets	322		2,172		(67)		(470)			Other assets	354		2,101		(35)		(494)

		June 30, 2020				Three Months Ended June 30, 2020		Six Months Ended June 30, 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	$	505	$	1,119	$	(37)	$	(113)		Loans held-for-sale	$	630	$	903	$	(14)	$	(121)
Loans and leases (1)	Loans and leases (1)	0		186		(22)		(45)			Loans and leases (1)	—		226		(19)		(59)
Foreclosed properties (2, 3)	Foreclosed properties (2, 3)	0		16		(5)		(8)			Foreclosed properties (2, 3)	—		27		(7)		(11)
Other assets	Other assets	187		6		(26)		(27)			Other assets	209		576		(32)		(58)

(1)Includes ~~$15~~$7 million and $18 million of losses on loans that were written down to a collateral value of zero during the three and ~~six~~nine months ended ~~June~~September 30, 2021 compared to losses of $9 million and ~~$18~~$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 ~~$66~~$55 million and ~~$124~~$131 million of properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans) at ~~June~~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 ~~June~~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)

Six Months Ended June 30, 2021

(Dollars in millions)

Nine Months Ended September 30, 2021

Loans and leases (2)

142

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

211

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 ~~June~~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 ~~six~~nine months ended ~~June~~September 30, 2021 and 2020.

93Bank of America

																											Fair Value Option Elections
		June 30, 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	$	163,344	$	163,314	$	30	$	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)	9,818		18,392		(8,574)		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	24,322		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	6,950		7,000		(50)		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)	2,207		3,128		(921)		1,585		2,521		(936)		Loans held-for-sale (1)	3,982		4,884		(902)		1,585		2,521		(936)

Other assets	Other assets	183		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	515		501		14		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	165,781		165,790		(9)		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	4,490		4,497		(7)		5,874		5,178		696		Short-term borrowings	4,128		4,341		(213)		5,874		5,178		696
Unfunded loan commitments	Unfunded loan commitments	103		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	30,361		31,436		(1,075)		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) 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													Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option

		Three Months Ended June 30													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	$	171	$	0	$	171	$	314	$	0	$	314	Loans reported as trading account assets	$	5	$	—	$	5	$	58	$	—	$	58
Trading inventory – other (1)	Trading inventory – other (1)	2,304		0		2,304		3,343		0		3,343		Trading inventory – other (1)	(1,155)		—		(1,155)		709		—		709
Consumer and commercial loans	Consumer and commercial loans	43		26		69		36		171		207		Consumer and commercial loans	(56)		(11)		(67)		(2)		102		100
Loans held-for-sale (2)	Loans held-for-sale (2)	0		23		23		0		58		58		Loans held-for-sale (2)	—		53		53		—		22		22

Short-term borrowings	Short-term borrowings	61		0		61		(283)		0		(283)		Short-term borrowings	548		—		548		(38)		—		(38)
Unfunded loan commitments	Unfunded loan commitments	0		(11)		(11)		0		46		46		Unfunded loan commitments	—		8		8		—		(18)		(18)

Long-term debt (3)	Long-term debt (3)	(1,047)		(8)		(1,055)		(1,869)		(9)		(1,878)		Long-term debt (3)	225		(9)		216		(347)		(6)		(353)
Other (4)	Other (4)	(1)		(46)		(47)		(4)		0		(4)		Other (4)	7		—		7		19		7		26
Total	Total	$	1,531	$	(16)	$	1,515	$	1,537	$	266	$	1,803	Total	$	(426)	$	41	$	(385)	$	399	$	107	$	506

		Six Months Ended June 30													Nine Months Ended September 30
		2021						2020							2021						2020

Loans reported as trading account assets	Loans reported as trading account assets	$	283	$	0	$	283	$	(73)	$	0	$	(73)	Loans reported as trading account assets	$	288	$	—	$	288	$	(15)	$	—	$	(15)
Trading inventory – other (1)	Trading inventory – other (1)	1,574		0		1,574		550		0		550		Trading inventory – other (1)	419		—		419		1,259		—		1,259
Consumer and commercial loans	Consumer and commercial loans	114		45		159		(47)		(187)		(234)		Consumer and commercial loans	58		34		92		(49)		(85)		(134)
Loans held-for-sale (2)	Loans held-for-sale (2)	0		11		11		0		45		45		Loans held-for-sale (2)	—		64		64		—		67		67

Short-term borrowings	Short-term borrowings	474		0		474		234		0		234		Short-term borrowings	1,022		—		1,022		196		—		196
Unfunded loan commitments	Unfunded loan commitments	0		(6)		(6)		0		(70)		(70)		Unfunded loan commitments	—		2		2		—		(88)		(88)

Long-term debt (3)	Long-term debt (3)	(661)		(24)		(685)		(953)		(25)		(978)		Long-term debt (3)	(436)		(33)		(469)		(1,300)		(31)		(1,331)
Other (4)	Other (4)	11		(24)		(13)		9		(38)		(29)		Other (4)	18		(24)		(6)		28		(31)		(3)
Total	Total	$	1,795	$	2	$	1,797	$	(280)	$	(275)	$	(555)	Total	$	1,369	$	43	$	1,412	$	119	$	(168)	$	(49)

(1) The gains (losses) in market making and similar activities are primarily offset by ~~losses~~(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 ~~losses~~gains (losses) in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by (losses) gains on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(4) Includes gains (losses) on federal funds sold and securities borrowed or purchased under agreements to resell, 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 June 30				Six Months Ended June 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
Loans reported as trading account assets	Loans reported as trading account assets	$	121	$	153	$	187	$	(236)	Loans reported as trading account assets	$	(21)	$	11	$	166	$	(225)
Consumer and commercial loans	Consumer and commercial loans	19		153		32		(196)		Consumer and commercial loans	(22)		100		10		(96)
Loans held-for-sale	Loans held-for-sale	4		(19)		(2)		(93)		Loans held-for-sale	37		(24)		35		(117)
Unfunded loan commitments	Unfunded loan commitments	(11)		46		(6)		(70)		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 ~~June~~September 30, 2021 and December 31, 2020 are presented in the ~~following table.~~table below.

																			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)	June 30, 2021								(Dollars in millions)	September 30, 2021
Financial assets	Financial assets									Financial assets
Loans	Loans	$	883,938	$	50,383	$	875,364	$	925,747	Loans	$	894,158	$	52,330	$	880,083	$	932,413
Loans held-for-sale	Loans held-for-sale	8,277		7,489		788		8,277		Loans held-for-sale	9,415		8,601		823		9,424
Financial liabilities	Financial liabilities									Financial liabilities
Deposits (1)	Deposits (1)	1,909,142		1,909,132		0		1,909,132		Deposits (1)	1,964,804		1,964,794		—		1,964,794
Long-term debt	Long-term debt	274,604		282,903		1,060		283,963		Long-term debt	278,621		286,414		1,293		287,707
Commercial unfunded lending commitments (2)	Commercial unfunded lending commitments (2)	1,790		103		6,259		6,362		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 ~~$936.2~~$962.9 billion and $799.0 billion with 0no stated maturities at ~~June~~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 and the components thereto (with net interest income on an FTE basis for the business segments, All Other and the total Corporation) for the three and ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, and total assets at ~~June~~September 30, 2021 and 2020 for each business segment, as well as All Other.


95~~Bank of America~~

Results of Business Segments and All Other
At and for the three months ended June 30
Total Corporation (1)
Consumer Banking Global Wealth & Investment Management
(Dollars in millions) 2021 2020 2021 2020 2021 2020
Net interest income $ 10,343 $ 10,976 $ 5,973 $ 5,991 $ 1,354 $ 1,378
Noninterest income 11,233 11,478 2,213 1,861 3,711 3,047
Total revenue, net of interest expense 21,576 22,454 8,186 7,852 5,065 4,425
Provision for credit losses (1,621) 5,117 (697) 3,024 (62) 136
Noninterest expense 15,045 13,410 4,859 4,735 3,814 3,464
Income before income taxes 8,152 3,927 4,024 93 1,313 825
Income tax expense (1,072) 394 986 23 322 202
Net income $ 9,224 $ 3,533 $ 3,038 $ 70 $ 991 $ 623
Period-end total assets $ 3,029,894 $ 2,741,688 $ 1,063,650 $ 929,193 $ 378,220 $ 334,190
Global Banking Global Markets All Other
2021 2020 2021 2020 2021 2020
Net interest income $ 1,984 $ 2,363 $ 991 $ 1,297 $ 41 $ (53)
Noninterest income 3,105 2,728 3,729 4,053 (1,525) (211)
Total revenue, net of interest expense 5,089 5,091 4,720 5,350 (1,484) (264)
Provision for credit losses (831) 1,873 22 105 (53) (21)
Noninterest expense 2,599 2,222 3,471 2,684 302 305
Income before income taxes 3,321 996 1,227 2,561 (1,733) (548)
Income tax expense 897 269 319 666 (3,596) (766)
Net income $ 2,424 $ 727 $ 908 $ 1,895 $ 1,863 $ 218
Period-end total assets $ 607,969 $ 586,078 $ 773,714 $ 652,068 $ 206,341 $ 240,159

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

Results of Business Segments and All Other
At and for the six months ended June 30
Total Corporation (1)
Consumer Banking Global Wealth & Investment Management
(Dollars in millions) 2021 2020 2021 2020 2021 2020
Net interest income $ 20,651 $ 23,250 $ 11,893 $ 12,853 $ 2,685 $ 2,949
Noninterest income 23,857 22,115 4,362 4,127 7,351 6,412
Total revenue, net of interest expense 44,508 45,365 16,255 16,980 10,036 9,361
Provision for credit losses (3,481) 9,878 (1,314) 5,282 (127) 325
Noninterest expense 30,560 26,885 9,990 9,230 7,682 7,064
Income before income taxes 17,429 8,602 7,579 2,468 2,481 1,972
Income tax expense 155 1,059 1,857 605 608 483
Net income $ 17,274 $ 7,543 $ 5,722 $ 1,863 $ 1,873 $ 1,489
Period-end total assets $ 3,029,894 $ 2,741,688 $ 1,063,650 $ 929,193 $ 378,220 $ 334,190
Global Banking Global Markets All Other
2021 2020 2021 2020 2021 2020
Net interest income $ 3,964 $ 4,975 $ 1,981 $ 2,449 $ 128 $ 24
Noninterest income 5,758 4,716 8,937 8,126 (2,551) (1,266)
Total revenue, net of interest expense 9,722 9,691 10,918 10,575 (2,423) (1,242)
Provision for credit losses (1,957) 3,966 17 212 (100) 93
Noninterest expense 5,380 4,540 6,898 5,498 610 553
Income before income taxes 6,299 1,185 4,003 4,865 (2,933) (1,888)
Income tax expense 1,701 320 1,041 1,265 (5,052) (1,614)
Net income $ 4,598 $ 865 $ 2,962 $ 3,600 $ 2,119 $ (274)
Period-end total assets $ 607,969 $ 586,078 $ 773,714 $ 652,068 $ 206,341 $ 240,159

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


						Bank of America 96

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

Noninterest Income by Business Segment and All Other
Total Corporation Consumer Banking Global Wealth &
Investment Management
Three Months Ended June 30
(Dollars in millions) 2021 2020 2021 2020 2021 2020
Fees and commissions:
Card income
Interchange fees $ 1,210 $ 830 $ 945 $ 645 $ 12 $ 8
Other card income 376 419 367 408 9 10
Total card income 1,586 1,249 1,312 1,053 21 18
Service charges
Deposit-related fees 1,557 1,299 851 706 18 14
Lending-related fees 317 263 0 0 0 0
Total service charges 1,874 1,562 851 706 18 14
Investment and brokerage services
Asset management fees 3,156 2,483 45 34 3,110 2,454
Brokerage fees 967 939 33 32 427 400
Total investment and brokerage services 4,123 3,422 78 66 3,537 2,854
Investment banking fees
Underwriting income 1,314 1,523 0 0 88 84
Syndication fees 401 230 0 0 0 0
Financial advisory services 407 406 0 0 0 0
Total investment banking fees 2,122 2,159 0 0 88 84
Total fees and commissions 9,705 8,392 2,241 1,825 3,664 2,970
Market making and similar activities 1,826 2,487 0 1 11 18
Other income (loss) (298) 599 (28) 35 36 59
Total noninterest income $ 11,233 $ 11,478 $ 2,213 $ 1,861 $ 3,711 $ 3,047
Global Banking Global Markets
All Other (1)
Three Months Ended June 30
2021 2020 2021 2020 2021 2020
Fees and commissions:
Card income
Interchange fees $ 178 $ 65 $ 74 $ 111 $ 1 $ 1
Other card income 2 3 0 0 (2) (2)
Total card income 180 68 74 111 (1) (1)
Service charges
Deposit-related fees 641 524 45 45 2 10
Lending-related fees 259 214 58 50 0 (1)
Total service charges 900 738 103 95 2 9
Investment and brokerage services
Asset management fees 0 0 0 0 1 (5)
Brokerage fees 40 23 473 480 (6) 4
Total investment and brokerage services 40 23 473 480 (5) (1)
Investment banking fees
Underwriting income 587 703 737 781 (98) (45)
Syndication fees 210 133 191 97 0 0
Financial advisory services 376 345 31 61 0 0
Total investment banking fees 1,173 1,181 959 939 (98) (45)
Total fees and commissions 2,293 2,010 1,609 1,625 (102) (38)
Market making and similar activities 28 (15) 1,964 2,360 (177) 123
Other income (loss) 784 733 156 68 (1,246) (296)
Total noninterest income $ 3,105 $ 2,728 $ 3,729 $ 4,053 $ (1,525) $ (211)



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)~~All Other~~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) ~~includes eliminations of intercompany transactions.~~There were no material intersegment revenues


97 Bank of America

Noninterest Income by Business Segment and All Other
Total Corporation Consumer Banking Global Wealth &
Investment Management
Six Months Ended June 30
(Dollars in millions) 2021 2020 2021 2020 2021 2020
Fees and commissions:
Card income
Interchange fees $ 2,277 $ 1,622 $ 1,781 $ 1,289 $ 22 $ 16
Other card income 744 899 720 874 18 19
Total card income 3,021 2,521 2,501 2,163 40 35
Service charges
Deposit-related fees 3,052 2,926 1,682 1,701 36 32
Lending-related fees 614 539 0 0 0 0
Total service charges 3,666 3,465 1,682 1,701 36 32
Investment and brokerage services
Asset management fees 6,158 5,165 87 72 6,071 5,106
Brokerage fees 2,028 2,015 68 65 857 870
Total investment and brokerage services 8,186 7,180 155 137 6,928 5,976
Investment banking fees
Underwriting income 2,860 2,371 0 0 223 199
Syndication fees 701 501 0 0 0 0
Financial advisory services 807 675 0 0 0 0
Total investment banking fees 4,368 3,547 0 0 223 199
Total fees and commissions 19,241 16,713 4,338 4,001 7,227 6,242
Market making and similar activities 5,355 5,294 0 2 22 39
Other income (loss) (739) 108 24 124 102 131
Total noninterest income $ 23,857 $ 22,115 $ 4,362 $ 4,127 $ 7,351 $ 6,412
Global Banking Global Markets
All Other (1)
Six Months Ended June 30
2021 2020 2021 2020 2021 2020
Fees and commissions:
Card income
Interchange fees $ 324 $ 184 $ 150 $ 132 $ 0 $ 1
Other card income 6 7 0 0 0 (1)
Total card income 330 191 150 132 0 0
Service charges
Deposit-related fees 1,243 1,095 87 80 4 18
Lending-related fees 504 438 110 102 0 (1)
Total service charges 1,747 1,533 197 182 4 17
Investment and brokerage services
Asset management fees 0 0 0 0 0 (13)
Brokerage fees 81 31 1,033 1,048 (11) 1
Total investment and brokerage services 81 31 1,033 1,048 (11) (12)
Investment banking fees
Underwriting income 1,241 1,071 1,536 1,237 (140) (136)
Syndication fees 371 279 330 222 0 0
Financial advisory services 733 592 74 83 0 0
Total investment banking fees 2,345 1,942 1,940 1,542 (140) (136)
Total fees and commissions 4,503 3,697 3,320 2,904 (147) (131)
Market making and similar activities 59 72 5,434 5,334 (160) (153)
Other income (loss) 1,196 947 183 (112) (2,244) (982)
Total noninterest income $ 5,758 $ 4,716 $ 8,937 $ 8,126 $ (2,551) $ (1,266)
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 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.


Business Segment Reconciliations	Business Segment Reconciliations									Business Segment Reconciliations

		Three Months Ended June 30				Six Months Ended June 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
Segments’ total revenue, net of interest expense	Segments’ total revenue, net of interest expense	$	23,060	$	22,718	$	46,931	$	46,607	Segments’ total revenue, net of interest expense	$	23,911	$	21,385	$	70,843	$	67,994
Adjustments (1):	Adjustments (1):									Adjustments (1):
Asset and liability management activities	Asset and liability management activities	(154)		677		(44)		592		Asset and liability management activities	3		(168)		(41)		425
Liquidating businesses, eliminations and other	Liquidating businesses, eliminations and other	(1,330)		(941)		(2,379)		(1,834)		Liquidating businesses, eliminations and other	(1,047)		(767)		(3,427)		(2,604)
FTE basis adjustment	FTE basis adjustment	(110)		(128)		(221)		(272)		FTE basis adjustment	(101)		(114)		(322)		(386)
Consolidated revenue, net of interest expense	Consolidated revenue, net of interest expense	$	21,466	$	22,326	$	44,287	$	45,093	Consolidated revenue, net of interest expense	$	22,766	$	20,336	$	67,053	$	65,429
Segments’ total net income	Segments’ total net income	7,361		3,315		15,155		7,817		Segments’ total net income	7,745		4,583		22,902		12,400
Adjustments, net-of-tax (1):	Adjustments, net-of-tax (1):									Adjustments, net-of-tax (1):
Asset and liability management activities	Asset and liability management activities	(113)		521		(30)		444		Asset and liability management activities	10		(127)		(20)		316
Liquidating businesses, eliminations and other	Liquidating businesses, eliminations and other	1,976		(303)		2,149		(718)		Liquidating businesses, eliminations and other	(64)		425		2,083		(292)
Consolidated net income	Consolidated net income	$	9,224	$	3,533	$	17,274	$	7,543	Consolidated net income	$	7,691	$	4,881	$	24,965	$	12,424

						June 30									September 30
						2021		2020							2021		2020
Segments’ total assets	Segments’ total assets					$	2,823,553	$	2,501,529	Segments’ total assets					$	2,885,708	$	2,515,107
Adjustments (1):	Adjustments (1):									Adjustments (1):
Asset and liability management activities, including securities portfolio	Asset and liability management activities, including securities portfolio					1,250,633		1,002,652		Asset and liability management activities, including securities portfolio					1,296,026		1,018,385
Elimination of segment asset allocations to match liabilities	Elimination of segment asset allocations to match liabilities					(1,111,500)		(829,129)		Elimination of segment asset allocations to match liabilities					(1,162,175)		(857,788)

Other	Other					67,208		66,636		Other					65,887		62,748
Consolidated total assets	Consolidated total assets					$	3,029,894	$	2,741,688	Consolidated total assets					$	3,085,446	$	2,738,452

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

99Bank of America

100

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

~~100~~

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’ 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.

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’ Equity – Net income applicable to common shareholders divided by average common shareholders’ equity.

Return on Average Shareholders’ Equity – Net income divided by average 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 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

~~101~~Bank of America

102

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 ~~June~~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 (2)
Remaining Buyback
Authority Amounts (3)
April 1 - 30, 2021 24,756 $ 38.99 24,747 $ 24,102
May 1 - 31, 2021 35,799 41.76 35,798 22,703
June 1 - 30, 2021 42,129 41.52 42,128 21,067
Three months ended June 30, 2021 102,684 40.99 102,673



(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 ~~10 thousand~~1.7 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 April 15, 2021, the Corporation announced the Board has authorized the repurchase of up to $25 billion of common stock over time. The Board also authorized repurchases to offset shares awarded under equity-based compensation plans. During the three months ended ~~June~~September 30, 2021, the Corporation repurchased ~~103~~248 million shares, or ~~$4.2~~$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 22 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 ~~June~~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

~~102~~

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		Bank of America Corporation Equity Plan (formerly known as the Key Employee Equity Plan), as amended and restated effective April 20, 2021	1	8-K	10.1	4/22/21	1-6523

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	2					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	2					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	2					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	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

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	2					101.SCH	Inline XBRL Taxonomy Extension Schema Document	1

101.CAL	101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	2					101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	1

101.LAB	101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	2					101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	1

101.PRE	101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	2					101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	1

101.DEF	101.DEF	Inline XBRL Taxonomy Extension Definitions Linkbase Document	2					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)~~Exhibit is a management contract or compensatory plan or arrangement.~~

~~(2)~~ Filed herewith.

~~(3)~~(2) 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:

~~July 30,~~October 29, 2021

/s/ Rudolf A. Bless

Rudolf A. Bless
Chief Accounting Officer

~~103~~Bank of America

104



Table 44	Goodwill by Reporting Unit


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


Total		$	69,023	$	68,951



Results of Business Segments and All Other

At and for the three months ended June 30	Total Corporation (1)			Consumer Banking		Global Wealth & Investment Management
(Dollars in millions)		2021		2020		2021		2020		2021		2020
Net interest income		$	10,343	$	10,976	$	5,973	$	5,991	$	1,354	$	1,378
Noninterest income		11,233		11,478		2,213		1,861		3,711		3,047
Total revenue, net of interest expense		21,576		22,454		8,186		7,852		5,065		4,425
Provision for credit losses		(1,621)		5,117		(697)		3,024		(62)		136
Noninterest expense		15,045		13,410		4,859		4,735		3,814		3,464
Income before income taxes		8,152		3,927		4,024		93		1,313		825
Income tax expense		(1,072)		394		986		23		322		202
Net income		$	9,224	$	3,533	$	3,038	$	70	$	991	$	623
Period-end total assets		$	3,029,894	$	2,741,688	$	1,063,650	$	929,193	$	378,220	$	334,190

	Global Banking			Global Markets		All Other
		2021		2020		2021		2020		2021		2020
Net interest income		$	1,984	$	2,363	$	991	$	1,297	$	41	$	(53)
Noninterest income		3,105		2,728		3,729		4,053		(1,525)		(211)
Total revenue, net of interest expense		5,089		5,091		4,720		5,350		(1,484)		(264)
Provision for credit losses		(831)		1,873		22		105		(53)		(21)
Noninterest expense		2,599		2,222		3,471		2,684		302		305
Income before income taxes		3,321		996		1,227		2,561		(1,733)		(548)
Income tax expense		897		269		319		666		(3,596)		(766)
Net income		$	2,424	$	727	$	908	$	1,895	$	1,863	$	218
Period-end total assets		$	607,969	$	586,078	$	773,714	$	652,068	$	206,341	$	240,159



Results of Business Segments and All Other

At and for the six months ended June 30	Total Corporation (1)					Consumer Banking			Global Wealth & Investment Management
(Dollars in millions)		2021		2020			2021		2020		2021		2020
Net interest income		$	20,651	$	23,250		$	11,893	$	12,853	$	2,685	$	2,949
Noninterest income		23,857		22,115			4,362		4,127		7,351		6,412
Total revenue, net of interest expense		44,508		45,365			16,255		16,980		10,036		9,361
Provision for credit losses		(3,481)		9,878			(1,314)		5,282		(127)		325
Noninterest expense		30,560		26,885			9,990		9,230		7,682		7,064
Income before income taxes		17,429		8,602			7,579		2,468		2,481		1,972
Income tax expense		155		1,059			1,857		605		608		483
Net income		$	17,274	$	7,543		$	5,722	$	1,863	$	1,873	$	1,489
Period-end total assets		$	3,029,894	$	2,741,688		$	1,063,650	$	929,193	$	378,220	$	334,190

	Global Banking					Global Markets			All Other
		2021		2020			2021		2020		2021		2020
Net interest income		$	3,964	$	4,975		$	1,981	$	2,449	$	128	$	24
Noninterest income		5,758		4,716			8,937		8,126		(2,551)		(1,266)
Total revenue, net of interest expense		9,722		9,691			10,918		10,575		(2,423)		(1,242)
Provision for credit losses		(1,957)		3,966			17		212		(100)		93
Noninterest expense		5,380		4,540			6,898		5,498		610		553
Income before income taxes		6,299		1,185			4,003		4,865		(2,933)		(1,888)
Income tax expense		1,701		320			1,041		1,265		(5,052)		(1,614)
Net income		$	4,598	$	865		$	2,962	$	3,600	$	2,119	$	(274)
Period-end total assets		$	607,969	$	586,078		$	773,714	$	652,068	$	206,341	$	240,159