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Large accelerated filer
ü
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Accelerated filer
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Non-accelerated filer
(do not check if a smaller
reporting company)
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Smaller reporting company
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Bank of America Corporation
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March 31, 2016
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Form 10-Q
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INDEX
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Executive Summary
|
|
Business Overview
|
First-Quarter 2016 Economic and Business Environment
|
Recent Events
|
Selected Financial Data
|
Table 1
|
|||||||
Selected Financial Data
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions, except per share information)
|
2016
|
|
2015
|
||||
Income statement
|
|
|
|
||||
Revenue, net of interest expense (FTE basis)
(1)
|
$
|
19,727
|
|
|
$
|
21,129
|
|
Net income
|
2,680
|
|
|
3,097
|
|
||
Diluted earnings per common share
|
0.21
|
|
|
0.25
|
|
||
Dividends paid per common share
|
0.05
|
|
|
0.05
|
|
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Performance ratios
|
|
|
|
||||
Return on average assets
|
0.50
|
%
|
|
0.59
|
%
|
||
Return on average tangible common shareholders' equity
(1)
|
5.41
|
|
|
7.19
|
|
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Efficiency ratio (FTE basis)
(1)
|
75.11
|
|
|
74.91
|
|
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|
|
|
|
||||
|
March 31
2016 |
|
December 31
2015 |
||||
Balance sheet
|
|
|
|
||||
Total loans and leases
(2)
|
$
|
901,113
|
|
|
$
|
896,983
|
|
Total assets
|
2,185,498
|
|
|
2,144,316
|
|
||
Total deposits
|
1,217,261
|
|
|
1,197,259
|
|
||
Total common shareholders' equity
|
238,434
|
|
|
233,932
|
|
||
Total shareholders' equity
|
262,776
|
|
|
256,205
|
|
(1)
|
Fully taxable-equivalent (FTE) basis, return on average tangible common shareholders' equity and the efficiency ratio are non-GAAP financial measures. Other companies may define or calculate these measures differently. For more information on these measures and ratios, and a corresponding reconciliation to GAAP financial measures, see
Supplemental Financial Data
on page
14
.
|
(2)
|
Beginning in the first quarter of 2016, the Corporation classifies certain leases in other assets. Previously these leases were classified in loans and leases. Prior periods were reclassified to conform to current period presentation.
|
Financial Highlights
|
Table 2
|
|
|
|
||||
Summary Income Statement
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Net interest income (FTE basis)
(1)
|
$
|
9,386
|
|
|
$
|
9,626
|
|
Noninterest income
|
10,341
|
|
|
11,503
|
|
||
Total revenue, net of interest expense (FTE basis)
(1)
|
19,727
|
|
|
21,129
|
|
||
Provision for credit losses
|
997
|
|
|
765
|
|
||
Noninterest expense
|
14,816
|
|
|
15,827
|
|
||
Income before income taxes (FTE basis)
(1)
|
3,914
|
|
|
4,537
|
|
||
Income tax expense (FTE basis)
(1)
|
1,234
|
|
|
1,440
|
|
||
Net income
|
2,680
|
|
|
3,097
|
|
||
Preferred stock dividends
|
457
|
|
|
382
|
|
||
Net income applicable to common shareholders
|
$
|
2,223
|
|
|
$
|
2,715
|
|
|
|
|
|
||||
Per common share information
|
|
|
|
||||
Earnings
|
$
|
0.21
|
|
|
$
|
0.26
|
|
Diluted earnings
|
0.21
|
|
|
0.25
|
|
(1)
|
FTE basis is a non-GAAP financial measure. Includes FTE adjustments of
$215 million
for both the
three months ended March 31, 2016 and 2015
. For more information on this measure and for a corresponding reconciliation to GAAP financial measures, see
Supplemental Financial Data
on page
14
.
|
Table 3
|
|||||||
Noninterest Income
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Card income
|
$
|
1,430
|
|
|
$
|
1,394
|
|
Service charges
|
1,837
|
|
|
1,764
|
|
||
Investment and brokerage services
|
3,182
|
|
|
3,378
|
|
||
Investment banking income
|
1,153
|
|
|
1,487
|
|
||
Trading account profits
|
1,662
|
|
|
2,247
|
|
||
Mortgage banking income
|
433
|
|
|
694
|
|
||
Gains on sales of debt securities
|
226
|
|
|
268
|
|
||
Other income
|
418
|
|
|
271
|
|
||
Total noninterest income
|
$
|
10,341
|
|
|
$
|
11,503
|
|
•
|
Investment and brokerage services income
decreased
$196 million
driven by lower market valuations and lower transactional revenue.
|
•
|
Investment banking income
decreased
$334 million
driven by lower debt and equity issuance fees, as well as lower advisory fees due to declines in market fee pools.
|
•
|
Trading account profits
decreased
$585 million
. Debit valuation adjustments (DVA) gains were
$184 million
in the
three months ended March 31, 2016
compared to losses of
$46 million
in the
same period in 2015
. Excluding DVA, trading account profits decreased $815 million driven by declines in credit-related products and equities due to challenging market conditions, and lower revenue in currencies which performed strongly in the
same period in 2015
. These decreases were partially offset by an improved performance in rates and client financing. For more information on trading account profits, see
Global Markets
on page
33
.
|
•
|
Mortgage banking income
decreased
$261 million
primarily due to declines in core production revenue, mortgage servicing rights (MSR) net-of-hedge performance and servicing fees, partially offset by gains on the sales of loans.
|
•
|
Other income
increased
$147 million
primarily due to an improvement of $325 million in DVA, partially offset by lower gains on asset sales. DVA losses were
$30 million
in the
three months ended March 31, 2016
compared to
$355 million
in the
same period in 2015
.
|
Table 4
|
|
|
|
||||
Credit Quality Data
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Provision for credit losses
|
|
|
|
||||
Consumer
|
$
|
402
|
|
|
$
|
619
|
|
Commercial
|
595
|
|
|
146
|
|
||
Total provision for credit losses
|
$
|
997
|
|
|
$
|
765
|
|
|
|
|
|
||||
Net charge-offs
(1)
|
$
|
1,068
|
|
|
$
|
1,194
|
|
Net charge-off ratio
(2)
|
0.48
|
%
|
|
0.56
|
%
|
(1)
|
Net charge-offs exclude write-offs in the purchased credit-impaired loan portfolio.
|
(2)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
|
Table 5
|
|
|
|
||||
Noninterest Expense
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Personnel
|
$
|
8,852
|
|
|
$
|
9,614
|
|
Occupancy
|
1,028
|
|
|
1,027
|
|
||
Equipment
|
463
|
|
|
512
|
|
||
Marketing
|
419
|
|
|
440
|
|
||
Professional fees
|
425
|
|
|
421
|
|
||
Amortization of intangibles
|
187
|
|
|
213
|
|
||
Data processing
|
838
|
|
|
852
|
|
||
Telecommunications
|
173
|
|
|
171
|
|
||
Other general operating
|
2,431
|
|
|
2,577
|
|
||
Total noninterest expense
|
$
|
14,816
|
|
|
$
|
15,827
|
|
Table 6
|
|
|
|
||||
Income Tax Expense
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Income before income taxes
|
$
|
3,699
|
|
|
$
|
4,322
|
|
Income tax expense
|
1,019
|
|
|
1,225
|
|
||
Effective tax rate
|
27.5
|
%
|
|
28.3
|
%
|
Balance Sheet Overview
|
|
|
|
|
|
|||||
|
||||||||||
Table 7
|
||||||||||
Selected Balance Sheet Data
|
||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
% Change
|
|||||
Assets
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
179,610
|
|
|
$
|
159,353
|
|
|
13
|
%
|
Federal funds sold and securities borrowed or purchased under agreements to resell
|
221,129
|
|
|
192,482
|
|
|
15
|
|
||
Trading account assets
|
178,987
|
|
|
176,527
|
|
|
1
|
|
||
Debt securities
|
400,311
|
|
|
407,005
|
|
|
(2
|
)
|
||
Loans and leases
|
901,113
|
|
|
896,983
|
|
|
<1
|
|
||
Allowance for loan and lease losses
|
(12,069
|
)
|
|
(12,234
|
)
|
|
(1
|
)
|
||
All other assets
|
316,417
|
|
|
324,200
|
|
|
(2
|
)
|
||
Total assets
|
$
|
2,185,498
|
|
|
$
|
2,144,316
|
|
|
2
|
|
Liabilities
|
|
|
|
|
|
|||||
Deposits
|
$
|
1,217,261
|
|
|
$
|
1,197,259
|
|
|
2
|
%
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
188,960
|
|
|
174,291
|
|
|
8
|
|
||
Trading account liabilities
|
74,003
|
|
|
66,963
|
|
|
11
|
|
||
Short-term borrowings
|
30,881
|
|
|
28,098
|
|
|
10
|
|
||
Long-term debt
|
232,849
|
|
|
236,764
|
|
|
(2
|
)
|
||
All other liabilities
|
178,768
|
|
|
184,736
|
|
|
(3
|
)
|
||
Total liabilities
|
1,922,722
|
|
|
1,888,111
|
|
|
2
|
|
||
Shareholders' equity
|
262,776
|
|
|
256,205
|
|
|
3
|
|
||
Total liabilities and shareholders' equity
|
$
|
2,185,498
|
|
|
$
|
2,144,316
|
|
|
2
|
|
Table 8
|
|
|
|
|
|||||||||||||||
Selected Quarterly Financial Data
|
|
|
|
|
|||||||||||||||
|
2016 Quarter
|
|
2015 Quarters
|
||||||||||||||||
(In millions, except per share information)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
Income statement
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
9,171
|
|
|
$
|
9,756
|
|
|
$
|
9,471
|
|
|
$
|
10,461
|
|
|
$
|
9,411
|
|
Noninterest income
|
10,341
|
|
|
9,911
|
|
|
11,042
|
|
|
11,495
|
|
|
11,503
|
|
|||||
Total revenue, net of interest expense
|
19,512
|
|
|
19,667
|
|
|
20,513
|
|
|
21,956
|
|
|
20,914
|
|
|||||
Provision for credit losses
|
997
|
|
|
810
|
|
|
806
|
|
|
780
|
|
|
765
|
|
|||||
Noninterest expense
|
14,816
|
|
|
14,010
|
|
|
13,940
|
|
|
13,958
|
|
|
15,827
|
|
|||||
Income before income taxes
|
3,699
|
|
|
4,847
|
|
|
5,767
|
|
|
7,218
|
|
|
4,322
|
|
|||||
Income tax expense
|
1,019
|
|
|
1,511
|
|
|
1,446
|
|
|
2,084
|
|
|
1,225
|
|
|||||
Net income
|
2,680
|
|
|
3,336
|
|
|
4,321
|
|
|
5,134
|
|
|
3,097
|
|
|||||
Net income applicable to common shareholders
|
2,223
|
|
|
3,006
|
|
|
3,880
|
|
|
4,804
|
|
|
2,715
|
|
|||||
Average common shares issued and outstanding
|
10,340
|
|
|
10,399
|
|
|
10,444
|
|
|
10,488
|
|
|
10,519
|
|
|||||
Average diluted common shares issued and outstanding
|
11,100
|
|
|
11,153
|
|
|
11,197
|
|
|
11,238
|
|
|
11,267
|
|
|||||
Performance ratios
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
0.50
|
%
|
|
0.61
|
%
|
|
0.79
|
%
|
|
0.96
|
%
|
|
0.59
|
%
|
|||||
Four quarter trailing return on average assets
(1)
|
0.71
|
|
|
0.74
|
|
|
0.73
|
|
|
0.52
|
|
|
0.38
|
|
|||||
Return on average common shareholders' equity
|
3.77
|
|
|
5.08
|
|
|
6.65
|
|
|
8.42
|
|
|
4.88
|
|
|||||
Return on average tangible common shareholders' equity
(2)
|
5.41
|
|
|
7.32
|
|
|
9.65
|
|
|
12.31
|
|
|
7.19
|
|
|||||
Return on average tangible shareholders' equity
(2)
|
5.72
|
|
|
7.15
|
|
|
9.43
|
|
|
11.51
|
|
|
7.24
|
|
|||||
Total ending equity to total ending assets
|
12.02
|
|
|
11.95
|
|
|
11.89
|
|
|
11.71
|
|
|
11.67
|
|
|||||
Total average equity to total average assets
|
11.98
|
|
|
11.79
|
|
|
11.71
|
|
|
11.67
|
|
|
11.49
|
|
|||||
Dividend payout
|
23.23
|
|
|
17.27
|
|
|
13.43
|
|
|
10.90
|
|
|
19.38
|
|
|||||
Per common share data
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings
|
$
|
0.21
|
|
|
$
|
0.29
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.26
|
|
Diluted earnings
|
0.21
|
|
|
0.28
|
|
|
0.35
|
|
|
0.43
|
|
|
0.25
|
|
|||||
Dividends paid
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
|||||
Book value
|
23.12
|
|
|
22.54
|
|
|
22.41
|
|
|
21.91
|
|
|
21.66
|
|
|||||
Tangible book value
(2)
|
16.17
|
|
|
15.62
|
|
|
15.50
|
|
|
15.02
|
|
|
14.79
|
|
|||||
Market price per share of common stock
|
|
|
|
|
|
|
|
|
|
||||||||||
Closing
|
$
|
13.52
|
|
|
$
|
16.83
|
|
|
$
|
15.58
|
|
|
$
|
17.02
|
|
|
$
|
15.39
|
|
High closing
|
16.43
|
|
|
17.95
|
|
|
18.45
|
|
|
17.67
|
|
|
17.90
|
|
|||||
Low closing
|
11.16
|
|
|
15.38
|
|
|
15.26
|
|
|
15.41
|
|
|
15.15
|
|
|||||
Market capitalization
|
$
|
139,427
|
|
|
$
|
174,700
|
|
|
$
|
162,457
|
|
|
$
|
178,231
|
|
|
$
|
161,909
|
|
(1)
|
Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.
|
(2)
|
Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. Other companies may define or calculate these measures differently. For more information on these ratios and for corresponding reconciliations to GAAP financial measures, see
Supplemental Financial Data
on page
14
.
|
(3)
|
For more information on the impact of the purchased credit-impaired loan portfolio (PCI) on asset quality, see
Consumer Portfolio Credit Risk Management
on page
60
.
|
(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
73
and corresponding Table
40
, and
Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
on page
82
and corresponding Table
49
.
|
(6)
|
Primarily includes amounts allocated to the U.S. credit card and unsecured consumer lending portfolios in
Consumer Banking
, PCI loans and the non-U.S. credit card portfolio in
All Other
.
|
(7)
|
Net charge-offs exclude
$105 million
,
$82 million
,
$148 million
,
$290 million
and
$288 million
of write-offs in the PCI loan portfolio in the
first
quarter of
2016
and in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively. For more information on purchased credit-impaired write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
70
.
|
(8)
|
Risk-based capital ratios reported under Basel 3 Advanced - Transition beginning in the fourth quarter of 2015. Prior to the fourth quarter of 2015, we were required to report risk-based capital ratios under Basel 3 Standardized - Transition only. For additional information, see
Capital Management
on page
45
.
|
Table 8
|
|
|
|
|
|||||||||||||||
Selected Quarterly Financial Data (continued)
|
|
|
|
|
|||||||||||||||
|
2016 Quarter
|
|
2015 Quarters
|
||||||||||||||||
(Dollars in millions)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
Average balance sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans and leases
|
$
|
892,984
|
|
|
$
|
886,156
|
|
|
$
|
877,429
|
|
|
$
|
876,178
|
|
|
$
|
867,169
|
|
Total assets
|
2,173,618
|
|
|
2,180,472
|
|
|
2,168,993
|
|
|
2,151,966
|
|
|
2,138,574
|
|
|||||
Total deposits
|
1,198,455
|
|
|
1,186,051
|
|
|
1,159,231
|
|
|
1,146,789
|
|
|
1,130,726
|
|
|||||
Long-term debt
|
233,654
|
|
|
237,384
|
|
|
240,520
|
|
|
242,230
|
|
|
240,127
|
|
|||||
Common shareholders' equity
|
237,123
|
|
|
234,851
|
|
|
231,620
|
|
|
228,780
|
|
|
225,357
|
|
|||||
Total shareholders' equity
|
260,317
|
|
|
257,125
|
|
|
253,893
|
|
|
251,054
|
|
|
245,744
|
|
|||||
Asset quality
(3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses
(4)
|
$
|
12,696
|
|
|
$
|
12,880
|
|
|
$
|
13,318
|
|
|
$
|
13,656
|
|
|
$
|
14,213
|
|
Nonperforming loans, leases and foreclosed properties
(5)
|
9,281
|
|
|
9,836
|
|
|
10,336
|
|
|
11,565
|
|
|
12,101
|
|
|||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding
(5)
|
1.35
|
%
|
|
1.37
|
%
|
|
1.45
|
%
|
|
1.50
|
%
|
|
1.58
|
%
|
|||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases
(5)
|
136
|
|
|
130
|
|
|
129
|
|
|
122
|
|
|
122
|
|
|||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the PCI loan portfolio
(5)
|
129
|
|
|
122
|
|
|
120
|
|
|
111
|
|
|
110
|
|
|||||
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases
(6)
|
$
|
4,138
|
|
|
$
|
4,518
|
|
|
$
|
4,682
|
|
|
$
|
5,050
|
|
|
$
|
5,492
|
|
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
(5, 6)
|
90
|
%
|
|
82
|
%
|
|
81
|
%
|
|
75
|
%
|
|
73
|
%
|
|||||
Net charge-offs
(7)
|
$
|
1,068
|
|
|
$
|
1,144
|
|
|
$
|
932
|
|
|
$
|
1,068
|
|
|
$
|
1,194
|
|
Annualized net charge-offs as a percentage of average loans and leases outstanding
(5, 7)
|
0.48
|
%
|
|
0.52
|
%
|
|
0.43
|
%
|
|
0.49
|
%
|
|
0.56
|
%
|
|||||
Annualized net charge-offs as a percentage of average loans and leases outstanding, excluding the PCI loan portfolio
(5)
|
0.49
|
|
|
0.53
|
|
|
0.43
|
|
|
0.50
|
|
|
0.58
|
|
|||||
Annualized net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding
(5)
|
0.53
|
|
|
0.55
|
|
|
0.49
|
|
|
0.63
|
|
|
0.70
|
|
|||||
Nonperforming loans and leases as a percentage of total loans and leases outstanding
(5)
|
0.99
|
|
|
1.05
|
|
|
1.12
|
|
|
1.23
|
|
|
1.30
|
|
|||||
Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties
(5)
|
1.04
|
|
|
1.10
|
|
|
1.18
|
|
|
1.32
|
|
|
1.40
|
|
|||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs
(7)
|
2.81
|
|
|
2.70
|
|
|
3.42
|
|
|
3.05
|
|
|
2.82
|
|
|||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs, excluding the PCI loan portfolio
|
2.67
|
|
|
2.52
|
|
|
3.18
|
|
|
2.79
|
|
|
2.55
|
|
|||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs and PCI write-offs
|
2.56
|
|
|
2.52
|
|
|
2.95
|
|
|
2.40
|
|
|
2.28
|
|
|||||
Capital ratios at period end
|
|||||||||||||||||||
Risk-based capital:
(8)
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity tier 1 capital
|
10.3
|
%
|
|
10.2
|
%
|
|
11.6
|
%
|
|
11.2
|
%
|
|
11.1
|
%
|
|||||
Tier 1 capital
|
11.5
|
|
|
11.3
|
|
|
12.9
|
|
|
12.5
|
|
|
12.3
|
|
|||||
Total capital
|
13.4
|
|
|
13.2
|
|
|
15.8
|
|
|
15.5
|
|
|
15.3
|
|
|||||
Tier 1 leverage
|
8.7
|
|
|
8.6
|
|
|
8.5
|
|
|
8.5
|
|
|
8.4
|
|
|||||
Tangible equity
(2)
|
9.0
|
|
|
8.9
|
|
|
8.8
|
|
|
8.6
|
|
|
8.6
|
|
|||||
Tangible common equity
(2)
|
7.9
|
|
|
7.8
|
|
|
7.8
|
|
|
7.6
|
|
|
7.5
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data
|
•
|
Return on average tangible common shareholders' equity measures our earnings contribution as a percentage of adjusted common shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities.
|
•
|
Return on average tangible shareholders' equity measures our earnings contribution as a percentage of adjusted average total shareholders' equity. The tangible equity ratio represents adjusted ending shareholders' equity divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities.
|
•
|
Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding.
|
Table 9
|
|
|
|
||||
Supplemental Financial Data
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Fully taxable-equivalent basis data
|
|
|
|
||||
Net interest income
|
$
|
9,386
|
|
|
$
|
9,626
|
|
Total revenue, net of interest expense
|
19,727
|
|
|
21,129
|
|
||
Net interest yield
|
2.05
|
%
|
|
2.16
|
%
|
||
Efficiency ratio
|
75.11
|
|
|
74.91
|
|
Table 10
|
|||||||||||||||||||||||
Quarterly Supplemental Financial Data and Reconciliations to GAAP Financial Measures
|
|||||||||||||||||||||||
|
Three Months Ended March 31
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
(Dollars in millions)
|
As Reported
|
|
Fully taxable-equivalent adjustment
|
|
Fully taxable-equivalent basis
|
|
As Reported
|
|
Fully taxable-equivalent adjustment
|
|
Fully taxable-equivalent basis
|
||||||||||||
Net interest income
|
$
|
9,171
|
|
|
$
|
215
|
|
|
$
|
9,386
|
|
|
$
|
9,411
|
|
|
$
|
215
|
|
|
$
|
9,626
|
|
Total revenue, net of interest expense
|
19,512
|
|
|
215
|
|
|
19,727
|
|
|
20,914
|
|
|
215
|
|
|
21,129
|
|
||||||
Income tax expense
|
1,019
|
|
|
215
|
|
|
1,234
|
|
|
1,225
|
|
|
215
|
|
|
1,440
|
|
Table 11
|
|
|
|
|
|
|
|
||||||||
Period-end and Average Supplemental Financial Data and Reconciliations to GAAP Financial Measures
|
|
|
|||||||||||||
|
|
|
|
|
Average
|
||||||||||
|
Period-end
|
|
Three Months Ended March 31
|
||||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
2016
|
|
2015
|
||||||||
Common shareholders' equity
|
$
|
238,434
|
|
|
$
|
233,932
|
|
|
$
|
237,123
|
|
|
$
|
225,357
|
|
Goodwill
|
(69,761
|
)
|
|
(69,761
|
)
|
|
(69,761
|
)
|
|
(69,776
|
)
|
||||
Intangible assets (excluding MSRs)
|
(3,578
|
)
|
|
(3,768
|
)
|
|
(3,687
|
)
|
|
(4,518
|
)
|
||||
Related deferred tax liabilities
|
1,667
|
|
|
1,716
|
|
|
1,707
|
|
|
1,959
|
|
||||
Tangible common shareholders' equity
|
$
|
166,762
|
|
|
$
|
162,119
|
|
|
$
|
165,382
|
|
|
$
|
153,022
|
|
|
|
|
|
|
|
|
|
||||||||
Shareholders' equity
|
$
|
262,776
|
|
|
$
|
256,205
|
|
|
$
|
260,317
|
|
|
$
|
245,744
|
|
Goodwill
|
(69,761
|
)
|
|
(69,761
|
)
|
|
(69,761
|
)
|
|
(69,776
|
)
|
||||
Intangible assets (excluding MSRs)
|
(3,578
|
)
|
|
(3,768
|
)
|
|
(3,687
|
)
|
|
(4,518
|
)
|
||||
Related deferred tax liabilities
|
1,667
|
|
|
1,716
|
|
|
1,707
|
|
|
1,959
|
|
||||
Tangible shareholders' equity
|
$
|
191,104
|
|
|
$
|
184,392
|
|
|
$
|
188,576
|
|
|
$
|
173,409
|
|
|
|
|
|
|
|
|
|
||||||||
Total assets
|
$
|
2,185,498
|
|
|
$
|
2,144,316
|
|
|
|
|
|
||||
Goodwill
|
(69,761
|
)
|
|
(69,761
|
)
|
|
|
|
|
||||||
Intangible assets (excluding MSRs)
|
(3,578
|
)
|
|
(3,768
|
)
|
|
|
|
|
||||||
Related deferred tax liabilities
|
1,667
|
|
|
1,716
|
|
|
|
|
|
||||||
Tangible Assets
|
$
|
2,113,826
|
|
|
$
|
2,072,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 12
|
|
|
|
||||
Segment Supplemental Financial Data Reconciliations to GAAP Financial Measures
(1)
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Consumer Banking
|
|
|
|
||||
Reported net income
|
$
|
1,785
|
|
|
$
|
1,461
|
|
Adjustment related to intangibles
(2)
|
1
|
|
|
1
|
|
||
Adjusted net income
|
$
|
1,786
|
|
|
$
|
1,462
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
60,261
|
|
|
$
|
59,295
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(30,261
|
)
|
|
(30,295
|
)
|
||
Average allocated capital
|
$
|
30,000
|
|
|
$
|
29,000
|
|
|
|
|
|
||||
Deposits
|
|
|
|
||||
Reported net income
|
$
|
814
|
|
|
$
|
536
|
|
Adjustment related to intangibles
(2)
|
—
|
|
|
—
|
|
||
Adjusted net income
|
$
|
814
|
|
|
$
|
536
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
30,417
|
|
|
$
|
30,424
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(18,417
|
)
|
|
(18,424
|
)
|
||
Average allocated capital
|
$
|
12,000
|
|
|
$
|
12,000
|
|
|
|
|
|
||||
Consumer Lending
|
|
|
|
||||
Reported net income
|
$
|
971
|
|
|
$
|
925
|
|
Adjustment related to intangibles
(2)
|
1
|
|
|
1
|
|
||
Adjusted net income
|
$
|
972
|
|
|
$
|
926
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
29,844
|
|
|
$
|
28,870
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(11,844
|
)
|
|
(11,870
|
)
|
||
Average allocated capital
|
$
|
18,000
|
|
|
$
|
17,000
|
|
|
|
|
|
||||
Global Wealth & Investment Management
|
|
|
|
||||
Reported net income
|
$
|
740
|
|
|
$
|
652
|
|
Adjustment related to intangibles
(2)
|
3
|
|
|
3
|
|
||
Adjusted net income
|
$
|
743
|
|
|
$
|
655
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
23,098
|
|
|
$
|
22,168
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(10,098
|
)
|
|
(10,168
|
)
|
||
Average allocated capital
|
$
|
13,000
|
|
|
$
|
12,000
|
|
|
|
|
|
||||
Global Banking
|
|
|
|
||||
Reported net income
|
$
|
1,066
|
|
|
$
|
1,367
|
|
Adjustment related to intangibles
(2)
|
—
|
|
|
—
|
|
||
Adjusted net income
|
$
|
1,066
|
|
|
$
|
1,367
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
60,937
|
|
|
$
|
58,877
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(23,937
|
)
|
|
(23,877
|
)
|
||
Average allocated capital
|
$
|
37,000
|
|
|
$
|
35,000
|
|
|
|
|
|
||||
Global Markets
|
|
|
|
||||
Reported net income
|
$
|
984
|
|
|
$
|
677
|
|
Adjustment related to intangibles
(2)
|
2
|
|
|
2
|
|
||
Adjusted net income
|
$
|
986
|
|
|
$
|
679
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
42,332
|
|
|
$
|
40,416
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(5,332
|
)
|
|
(5,416
|
)
|
||
Average allocated capital
|
$
|
37,000
|
|
|
$
|
35,000
|
|
(1)
|
There are no adjustments to reported net income (loss) or average allocated equity for
LAS
.
|
(2)
|
Represents cost of funds, earnings credits and certain expenses related to intangibles.
|
(3)
|
Average allocated equity is comprised of average allocated capital plus capital for the portion of goodwill and intangibles specifically assigned to the business segment. For more information on allocated capital, see
Business Segment Operations
on page
21
.
|
|
|
|
|
Net Interest Income Excluding Trading-related Net Interest Income
|
Table 13
|
|||||||
Net Interest Income Excluding Trading-related Net Interest Income
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Net interest income (FTE basis)
|
|
|
|
||||
As reported
|
$
|
9,386
|
|
|
$
|
9,626
|
|
Impact of trading-related net interest income
|
(1,059
|
)
|
|
(883
|
)
|
||
Net interest income excluding trading-related net interest income (FTE basis)
(1)
|
$
|
8,327
|
|
|
$
|
8,743
|
|
Average earning assets
|
|
|
|
||||
As reported
|
$
|
1,844,650
|
|
|
$
|
1,799,175
|
|
Impact of trading-related earning assets
|
(397,732
|
)
|
|
(415,193
|
)
|
||
Average earning assets excluding trading-related earning assets
(1)
|
$
|
1,446,918
|
|
|
$
|
1,383,982
|
|
Net interest yield contribution (FTE basis)
(2)
|
|
|
|
||||
As reported
|
2.05
|
%
|
|
2.16
|
%
|
||
Impact of trading-related activities
|
0.27
|
|
|
0.40
|
|
||
Net interest yield on earning assets excluding trading-related activities (FTE basis)
(1)
|
2.32
|
%
|
|
2.56
|
%
|
(1)
|
Represents a non-GAAP financial measure.
|
(2)
|
Calculated on an annualized basis.
|
Table 14
|
|||||||||||||||||||||
Quarterly Average Balances and Interest Rates – FTE Basis
|
|||||||||||||||||||||
|
First Quarter 2016
|
|
Fourth Quarter 2015
|
||||||||||||||||||
(Dollars in millions)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
||||||||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
|
$
|
138,574
|
|
|
$
|
155
|
|
|
0.45
|
%
|
|
$
|
148,102
|
|
|
$
|
108
|
|
|
0.29
|
%
|
Time deposits placed and other short-term investments
|
9,156
|
|
|
32
|
|
|
1.41
|
|
|
10,120
|
|
|
41
|
|
|
1.61
|
|
||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
209,183
|
|
|
276
|
|
|
0.53
|
|
|
207,585
|
|
|
214
|
|
|
0.41
|
|
||||
Trading account assets
|
136,306
|
|
|
1,212
|
|
|
3.57
|
|
|
134,797
|
|
|
1,141
|
|
|
3.37
|
|
||||
Debt securities
(1)
|
399,809
|
|
|
1,224
|
|
|
1.23
|
|
|
399,423
|
|
|
2,541
|
|
|
2.55
|
|
||||
Loans and leases
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
186,980
|
|
|
1,629
|
|
|
3.49
|
|
|
189,650
|
|
|
1,644
|
|
|
3.47
|
|
||||
Home equity
|
75,328
|
|
|
711
|
|
|
3.79
|
|
|
77,109
|
|
|
715
|
|
|
3.69
|
|
||||
U.S. credit card
|
87,163
|
|
|
2,021
|
|
|
9.32
|
|
|
88,623
|
|
|
2,045
|
|
|
9.15
|
|
||||
Non-U.S. credit card
|
9,822
|
|
|
253
|
|
|
10.36
|
|
|
10,155
|
|
|
258
|
|
|
10.07
|
|
||||
Direct/Indirect consumer
(3)
|
89,342
|
|
|
550
|
|
|
2.48
|
|
|
87,858
|
|
|
530
|
|
|
2.40
|
|
||||
Other consumer
(4)
|
2,138
|
|
|
16
|
|
|
3.03
|
|
|
2,039
|
|
|
11
|
|
|
2.09
|
|
||||
Total consumer
|
450,773
|
|
|
5,180
|
|
|
4.61
|
|
|
455,434
|
|
|
5,203
|
|
|
4.55
|
|
||||
U.S. commercial
|
270,511
|
|
|
1,936
|
|
|
2.88
|
|
|
261,727
|
|
|
1,790
|
|
|
2.72
|
|
||||
Commercial real estate
(5)
|
57,271
|
|
|
434
|
|
|
3.05
|
|
|
56,126
|
|
|
408
|
|
|
2.89
|
|
||||
Commercial lease financing
|
21,077
|
|
|
182
|
|
|
3.46
|
|
|
20,422
|
|
|
155
|
|
|
3.03
|
|
||||
Non-U.S. commercial
|
93,352
|
|
|
585
|
|
|
2.52
|
|
|
92,447
|
|
|
530
|
|
|
2.27
|
|
||||
Total commercial
|
442,211
|
|
|
3,137
|
|
|
2.85
|
|
|
430,722
|
|
|
2,883
|
|
|
2.66
|
|
||||
Total loans and leases
|
892,984
|
|
|
8,317
|
|
|
3.74
|
|
|
886,156
|
|
|
8,086
|
|
|
3.63
|
|
||||
Other earning assets
|
58,638
|
|
|
694
|
|
|
4.76
|
|
|
61,070
|
|
|
748
|
|
|
4.87
|
|
||||
Total earning assets
(6)
|
1,844,650
|
|
|
11,910
|
|
|
2.59
|
|
|
1,847,253
|
|
|
12,879
|
|
|
2.77
|
|
||||
Cash and due from banks
|
28,844
|
|
|
|
|
|
|
29,503
|
|
|
|
|
|
||||||||
Other assets, less allowance for loan and lease losses
|
300,124
|
|
|
|
|
|
|
303,716
|
|
|
|
|
|
||||||||
Total assets
|
$
|
2,173,618
|
|
|
|
|
|
|
$
|
2,180,472
|
|
|
|
|
|
(1)
|
Yields on debt securities excluding the impact of market-related adjustments was
2.45 percent
in the
first
quarter of
2016
, and
2.47 percent
,
2.50 percent
,
2.48 percent
and
2.54 percent
in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively. Yields on debt securities excluding the impact of market-related adjustments are a non-GAAP financial measure. The Corporation believes the use of this non-GAAP financial measure provides additional clarity in assessing its results.
|
(2)
|
Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. PCI loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.
|
(3)
|
Includes non-U.S. consumer loans of
$3.8 billion
in the
first
quarter of
2016
, and
$4.0 billion
for each of the quarters of
2015
.
|
(4)
|
Includes consumer finance loans of
$551 million
in the
first
quarter of
2016
, and
$578 million
,
$605 million
,
$632 million
and
$661 million
in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively; consumer leases of
$1.4 billion
in the
first
quarter of
2016
, and
$1.3 billion
,
$1.2 billion
,
$1.1 billion
and
$1.0 billion
in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively; and consumer overdrafts of
$161 million
in the
first
quarter of
2016
, and
$174 million
,
$177 million
,
$131 million
and
$141 million
in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively.
|
(5)
|
Includes U.S. commercial real estate loans of
$53.8 billion
in the
first
quarter of
2016
, and
$52.8 billion
,
$49.8 billion
,
$47.6 billion
and
$45.6 billion
in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively; and non-U.S. commercial real estate loans of
$3.4 billion
in the
first
quarter of
2016
, and
$3.3 billion
,
$3.8 billion
,
$2.8 billion
and
$2.7 billion
in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively.
|
(6)
|
Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by
$35 million
in the
first
quarter of
2016
, and
$32 million
,
$8 million
,
$8 million
and
$11 million
in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities by
$565 million
in the
first
quarter of
2016
, and
$681 million
,
$590 million
,
$509 million
and
$582 million
in the
fourth
,
third
,
second
and
first
quarters of
2015
, respectively. For additional information, see Interest Rate Risk Management for Non-trading Activities on page
99
.
|
(7)
|
The yield on long-term debt excluding the
$612 million
adjustment on certain trust preferred securities was
2.15 percent
for the
fourth
quarter of
2015
. For more information, see
Note 11 – Long-term Debt
to the Consolidated Financial Statements of the Corporation's 2015 Annual Report on Form 10-K
. The yield on long-term debt excluding the adjustment is a non-GAAP financial measure.
|
Table 14
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Quarterly Average Balances and Interest Rates – FTE Basis (continued)
|
||||||||||||||||||||||||||||||||
|
Third Quarter 2015
|
|
Second Quarter 2015
|
|
First Quarter 2015
|
|||||||||||||||||||||||||||
(Dollars in millions)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|||||||||||||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
|
$
|
145,174
|
|
|
$
|
96
|
|
|
0.26
|
%
|
|
$
|
125,762
|
|
|
$
|
81
|
|
|
0.26
|
%
|
|
$
|
126,189
|
|
|
$
|
84
|
|
|
0.27
|
%
|
Time deposits placed and other short-term investments
|
11,503
|
|
|
38
|
|
|
1.32
|
|
|
8,183
|
|
|
34
|
|
|
1.64
|
|
|
8,379
|
|
|
33
|
|
|
1.61
|
|
||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
210,127
|
|
|
275
|
|
|
0.52
|
|
|
214,326
|
|
|
268
|
|
|
0.50
|
|
|
213,931
|
|
|
231
|
|
|
0.44
|
|
||||||
Trading account assets
|
140,484
|
|
|
1,170
|
|
|
3.31
|
|
|
137,137
|
|
|
1,114
|
|
|
3.25
|
|
|
138,946
|
|
|
1,122
|
|
|
3.26
|
|
||||||
Debt securities
(1)
|
394,420
|
|
|
1,853
|
|
|
1.88
|
|
|
386,357
|
|
|
3,082
|
|
|
3.21
|
|
|
383,120
|
|
|
1,898
|
|
|
2.01
|
|
||||||
Loans and leases
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage
|
193,791
|
|
|
1,690
|
|
|
3.49
|
|
|
207,356
|
|
|
1,782
|
|
|
3.44
|
|
|
215,030
|
|
|
1,851
|
|
|
3.45
|
|
||||||
Home equity
|
79,715
|
|
|
730
|
|
|
3.64
|
|
|
82,640
|
|
|
769
|
|
|
3.73
|
|
|
84,915
|
|
|
770
|
|
|
3.66
|
|
||||||
U.S. credit card
|
88,201
|
|
|
2,033
|
|
|
9.15
|
|
|
87,460
|
|
|
1,980
|
|
|
9.08
|
|
|
88,695
|
|
|
2,027
|
|
|
9.27
|
|
||||||
Non-U.S. credit card
|
10,244
|
|
|
267
|
|
|
10.34
|
|
|
10,012
|
|
|
264
|
|
|
10.56
|
|
|
10,002
|
|
|
262
|
|
|
10.64
|
|
||||||
Direct/Indirect consumer
(3)
|
85,975
|
|
|
515
|
|
|
2.38
|
|
|
83,698
|
|
|
504
|
|
|
2.42
|
|
|
80,713
|
|
|
491
|
|
|
2.47
|
|
||||||
Other consumer
(4)
|
1,980
|
|
|
15
|
|
|
3.01
|
|
|
1,885
|
|
|
15
|
|
|
3.14
|
|
|
1,847
|
|
|
15
|
|
|
3.29
|
|
||||||
Total consumer
|
459,906
|
|
|
5,250
|
|
|
4.54
|
|
|
473,051
|
|
|
5,314
|
|
|
4.50
|
|
|
481,202
|
|
|
5,416
|
|
|
4.54
|
|
||||||
U.S. commercial
|
251,908
|
|
|
1,744
|
|
|
2.75
|
|
|
244,540
|
|
|
1,704
|
|
|
2.80
|
|
|
234,907
|
|
|
1,645
|
|
|
2.84
|
|
||||||
Commercial real estate
(5)
|
53,605
|
|
|
384
|
|
|
2.84
|
|
|
50,478
|
|
|
382
|
|
|
3.03
|
|
|
48,234
|
|
|
347
|
|
|
2.92
|
|
||||||
Commercial lease financing
|
20,013
|
|
|
153
|
|
|
3.07
|
|
|
19,486
|
|
|
149
|
|
|
3.05
|
|
|
19,271
|
|
|
171
|
|
|
3.55
|
|
||||||
Non-U.S. commercial
|
91,997
|
|
|
514
|
|
|
2.22
|
|
|
88,623
|
|
|
479
|
|
|
2.17
|
|
|
83,555
|
|
|
485
|
|
|
2.35
|
|
||||||
Total commercial
|
417,523
|
|
|
2,795
|
|
|
2.66
|
|
|
403,127
|
|
|
2,714
|
|
|
2.70
|
|
|
385,967
|
|
|
2,648
|
|
|
2.78
|
|
||||||
Total loans and leases
|
877,429
|
|
|
8,045
|
|
|
3.65
|
|
|
876,178
|
|
|
8,028
|
|
|
3.67
|
|
|
867,169
|
|
|
8,064
|
|
|
3.76
|
|
||||||
Other earning assets
|
62,847
|
|
|
716
|
|
|
4.52
|
|
|
62,712
|
|
|
721
|
|
|
4.60
|
|
|
61,441
|
|
|
706
|
|
|
4.66
|
|
||||||
Total earning assets
(6)
|
1,841,984
|
|
|
12,193
|
|
|
2.63
|
|
|
1,810,655
|
|
|
13,328
|
|
|
2.95
|
|
|
1,799,175
|
|
|
12,138
|
|
|
2.72
|
|
||||||
Cash and due from banks
|
27,730
|
|
|
|
|
|
|
30,751
|
|
|
|
|
|
|
27,695
|
|
|
|
|
|
||||||||||||
Other assets, less allowance for loan and lease losses
|
299,279
|
|
|
|
|
|
|
310,560
|
|
|
|
|
|
|
311,704
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
2,168,993
|
|
|
|
|
|
|
$
|
2,151,966
|
|
|
|
|
|
|
|
$
|
2,138,574
|
|
|
|
|
|
Table 14
|
|||||||||||||||||||||
Quarterly Average Balances and Interest Rates – FTE Basis (continued)
|
|||||||||||||||||||||
|
First Quarter 2016
|
|
Fourth Quarter 2015
|
||||||||||||||||||
(Dollars in millions)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings
|
$
|
47,845
|
|
|
$
|
1
|
|
|
0.01
|
%
|
|
$
|
46,094
|
|
|
$
|
1
|
|
|
0.01
|
%
|
NOW and money market deposit accounts
|
577,779
|
|
|
71
|
|
|
0.05
|
|
|
558,441
|
|
|
68
|
|
|
0.05
|
|
||||
Consumer CDs and IRAs
|
49,617
|
|
|
35
|
|
|
0.28
|
|
|
51,107
|
|
|
37
|
|
|
0.29
|
|
||||
Negotiable CDs, public funds and other deposits
|
31,739
|
|
|
29
|
|
|
0.37
|
|
|
30,546
|
|
|
25
|
|
|
0.32
|
|
||||
Total U.S. interest-bearing deposits
|
706,980
|
|
|
136
|
|
|
0.08
|
|
|
686,188
|
|
|
131
|
|
|
0.08
|
|
||||
Non-U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Banks located in non-U.S. countries
|
4,123
|
|
|
9
|
|
|
0.84
|
|
|
3,997
|
|
|
7
|
|
|
0.69
|
|
||||
Governments and official institutions
|
1,472
|
|
|
2
|
|
|
0.53
|
|
|
1,687
|
|
|
2
|
|
|
0.37
|
|
||||
Time, savings and other
|
56,943
|
|
|
78
|
|
|
0.55
|
|
|
55,965
|
|
|
71
|
|
|
0.51
|
|
||||
Total non-U.S. interest-bearing deposits
|
62,538
|
|
|
89
|
|
|
0.57
|
|
|
61,649
|
|
|
80
|
|
|
0.52
|
|
||||
Total interest-bearing deposits
|
769,518
|
|
|
225
|
|
|
0.12
|
|
|
747,837
|
|
|
211
|
|
|
0.11
|
|
||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings
|
221,990
|
|
|
614
|
|
|
1.11
|
|
|
231,650
|
|
|
519
|
|
|
0.89
|
|
||||
Trading account liabilities
|
72,299
|
|
|
292
|
|
|
1.63
|
|
|
73,139
|
|
|
272
|
|
|
1.48
|
|
||||
Long-term debt
(7)
|
233,654
|
|
|
1,393
|
|
|
2.39
|
|
|
237,384
|
|
|
1,895
|
|
|
3.18
|
|
||||
Total interest-bearing liabilities
(6)
|
1,297,461
|
|
|
2,524
|
|
|
0.78
|
|
|
1,290,010
|
|
|
2,897
|
|
|
0.89
|
|
||||
Noninterest-bearing sources:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
428,937
|
|
|
|
|
|
|
438,214
|
|
|
|
|
|
||||||||
Other liabilities
|
186,903
|
|
|
|
|
|
|
195,123
|
|
|
|
|
|
||||||||
Shareholders' equity
|
260,317
|
|
|
|
|
|
|
257,125
|
|
|
|
|
|
||||||||
Total liabilities and shareholders' equity
|
$
|
2,173,618
|
|
|
|
|
|
|
$
|
2,180,472
|
|
|
|
|
|
||||||
Net interest spread
|
|
|
|
|
1.81
|
%
|
|
|
|
|
|
1.88
|
%
|
||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
0.24
|
|
|
|
|
|
|
0.27
|
|
||||||||
Net interest income/yield on earning assets
|
|
|
$
|
9,386
|
|
|
2.05
|
%
|
|
|
|
$
|
9,982
|
|
|
2.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 14
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Quarterly Average Balances and Interest Rates – FTE Basis (continued)
|
||||||||||||||||||||||||||||||||
|
Third Quarter 2015
|
|
Second Quarter 2015
|
|
First Quarter 2015
|
|||||||||||||||||||||||||||
(Dollars in millions)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|||||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings
|
$
|
46,297
|
|
|
$
|
2
|
|
|
0.02
|
%
|
|
$
|
47,381
|
|
|
$
|
2
|
|
|
0.02
|
%
|
|
$
|
46,224
|
|
|
$
|
2
|
|
|
0.02
|
%
|
NOW and money market deposit accounts
|
545,741
|
|
|
67
|
|
|
0.05
|
|
|
536,201
|
|
|
71
|
|
|
0.05
|
|
|
531,827
|
|
|
67
|
|
|
0.05
|
|
||||||
Consumer CDs and IRAs
|
53,174
|
|
|
38
|
|
|
0.29
|
|
|
55,832
|
|
|
42
|
|
|
0.30
|
|
|
58,704
|
|
|
45
|
|
|
0.31
|
|
||||||
Negotiable CDs, public funds and other deposits
|
30,631
|
|
|
26
|
|
|
0.33
|
|
|
29,904
|
|
|
22
|
|
|
0.30
|
|
|
28,796
|
|
|
22
|
|
|
0.31
|
|
||||||
Total U.S. interest-bearing deposits
|
675,843
|
|
|
133
|
|
|
0.08
|
|
|
669,318
|
|
|
137
|
|
|
0.08
|
|
|
665,551
|
|
|
136
|
|
|
0.08
|
|
||||||
Non-U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Banks located in non-U.S. countries
|
4,196
|
|
|
7
|
|
|
0.71
|
|
|
5,162
|
|
|
9
|
|
|
0.67
|
|
|
4,544
|
|
|
8
|
|
|
0.74
|
|
||||||
Governments and official institutions
|
1,654
|
|
|
1
|
|
|
0.33
|
|
|
1,239
|
|
|
1
|
|
|
0.38
|
|
|
1,382
|
|
|
1
|
|
|
0.21
|
|
||||||
Time, savings and other
|
53,793
|
|
|
73
|
|
|
0.53
|
|
|
55,030
|
|
|
69
|
|
|
0.51
|
|
|
54,276
|
|
|
75
|
|
|
0.55
|
|
||||||
Total non-U.S. interest-bearing deposits
|
59,643
|
|
|
81
|
|
|
0.54
|
|
|
61,431
|
|
|
79
|
|
|
0.52
|
|
|
60,202
|
|
|
84
|
|
|
0.56
|
|
||||||
Total interest-bearing deposits
|
735,486
|
|
|
214
|
|
|
0.12
|
|
|
730,749
|
|
|
216
|
|
|
0.12
|
|
|
725,753
|
|
|
220
|
|
|
0.12
|
|
||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings
|
257,323
|
|
|
597
|
|
|
0.92
|
|
|
252,088
|
|
|
686
|
|
|
1.09
|
|
|
244,134
|
|
|
585
|
|
|
0.97
|
|
||||||
Trading account liabilities
|
77,443
|
|
|
342
|
|
|
1.75
|
|
|
77,772
|
|
|
335
|
|
|
1.73
|
|
|
78,787
|
|
|
394
|
|
|
2.03
|
|
||||||
Long-term debt
(7)
|
240,520
|
|
|
1,343
|
|
|
2.22
|
|
|
242,230
|
|
|
1,407
|
|
|
2.33
|
|
|
240,127
|
|
|
1,313
|
|
|
2.20
|
|
||||||
Total interest-bearing liabilities
(6)
|
1,310,772
|
|
|
2,496
|
|
|
0.76
|
|
|
1,302,839
|
|
|
2,644
|
|
|
0.81
|
|
|
1,288,801
|
|
|
2,512
|
|
|
0.79
|
|
||||||
Noninterest-bearing sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits
|
423,745
|
|
|
|
|
|
|
416,040
|
|
|
|
|
|
|
|
404,973
|
|
|
|
|
|
|||||||||||
Other liabilities
|
180,583
|
|
|
|
|
|
|
182,033
|
|
|
|
|
|
|
|
199,056
|
|
|
|
|
|
|||||||||||
Shareholders' equity
|
253,893
|
|
|
|
|
|
|
251,054
|
|
|
|
|
|
|
|
245,744
|
|
|
|
|
|
|||||||||||
Total liabilities and shareholders' equity
|
$
|
2,168,993
|
|
|
|
|
|
|
$
|
2,151,966
|
|
|
|
|
|
|
$
|
2,138,574
|
|
|
|
|
|
|||||||||
Net interest spread
|
|
|
|
|
1.87
|
%
|
|
|
|
|
|
2.14
|
%
|
|
|
|
|
|
1.93
|
%
|
||||||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
0.23
|
|
|
|
|
|
|
0.23
|
|
|
|
|
|
|
0.23
|
|
||||||||||||
Net interest income/yield on earning assets
|
|
|
$
|
9,697
|
|
|
2.10
|
%
|
|
|
|
$
|
10,684
|
|
|
2.37
|
%
|
|
|
|
$
|
9,626
|
|
|
2.16
|
%
|
Business Segment Operations
|
|
Segment Description and Basis of Presentation
|
Consumer Banking
|
|
Three Months Ended March 31
|
|
|
|||||||||||||||||||||||
|
Deposits
|
|
Consumer
Lending
|
|
Total Consumer Banking
|
|
|
|||||||||||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
% Change
|
|||||||||||||
Net interest income (FTE basis)
|
$
|
2,659
|
|
|
$
|
2,297
|
|
|
$
|
2,526
|
|
|
$
|
2,575
|
|
|
$
|
5,185
|
|
|
$
|
4,872
|
|
|
6
|
%
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Card income
|
3
|
|
|
3
|
|
|
1,208
|
|
|
1,165
|
|
|
1,211
|
|
|
1,168
|
|
|
4
|
|
||||||
Service charges
|
997
|
|
|
966
|
|
|
—
|
|
|
—
|
|
|
997
|
|
|
966
|
|
|
3
|
|
||||||
Mortgage banking income
|
—
|
|
|
—
|
|
|
122
|
|
|
288
|
|
|
122
|
|
|
288
|
|
|
(58
|
)
|
||||||
All other income
|
116
|
|
|
102
|
|
|
17
|
|
|
10
|
|
|
133
|
|
|
112
|
|
|
19
|
|
||||||
Total noninterest income
|
1,116
|
|
|
1,071
|
|
|
1,347
|
|
|
1,463
|
|
|
2,463
|
|
|
2,534
|
|
|
(3
|
)
|
||||||
Total revenue, net of interest expense (FTE basis)
|
3,775
|
|
|
3,368
|
|
|
3,873
|
|
|
4,038
|
|
|
7,648
|
|
|
7,406
|
|
|
3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Provision for credit losses
|
48
|
|
|
63
|
|
|
512
|
|
|
653
|
|
|
560
|
|
|
716
|
|
|
(22
|
)
|
||||||
Noninterest expense
|
2,440
|
|
|
2,452
|
|
|
1,826
|
|
|
1,915
|
|
|
4,266
|
|
|
4,367
|
|
|
(2
|
)
|
||||||
Income before income taxes (FTE basis)
|
1,287
|
|
|
853
|
|
|
1,535
|
|
|
1,470
|
|
|
2,822
|
|
|
2,323
|
|
|
21
|
|
||||||
Income tax expense (FTE basis)
|
473
|
|
|
317
|
|
|
564
|
|
|
545
|
|
|
1,037
|
|
|
862
|
|
|
20
|
|
||||||
Net income
|
$
|
814
|
|
|
$
|
536
|
|
|
$
|
971
|
|
|
$
|
925
|
|
|
$
|
1,785
|
|
|
$
|
1,461
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest yield (FTE basis)
|
1.85
|
%
|
|
1.74
|
%
|
|
4.84
|
%
|
|
5.34
|
%
|
|
3.47
|
%
|
|
3.54
|
%
|
|
|
|||||||
Return on average allocated capital
|
27
|
|
|
18
|
|
|
22
|
|
|
22
|
|
|
24
|
|
|
20
|
|
|
|
|||||||
Efficiency ratio (FTE basis)
|
64.63
|
|
|
72.80
|
|
|
47.16
|
|
|
47.43
|
|
|
55.78
|
|
|
58.97
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended March 31
|
|
|
|||||||||||||||||||||||
Average
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
% Change
|
|||||||||||||
Total loans and leases
|
$
|
5,963
|
|
|
$
|
5,879
|
|
|
$
|
208,858
|
|
|
$
|
193,702
|
|
|
$
|
214,821
|
|
|
$
|
199,581
|
|
|
8
|
%
|
Total earning assets
(1)
|
576,770
|
|
|
535,412
|
|
|
210,044
|
|
|
195,548
|
|
|
601,048
|
|
|
558,713
|
|
|
8
|
|
||||||
Total assets
(1)
|
603,565
|
|
|
562,195
|
|
|
219,196
|
|
|
204,632
|
|
|
636,995
|
|
|
594,580
|
|
|
7
|
|
||||||
Total deposits
|
571,461
|
|
|
530,291
|
|
|
n/m
|
|
|
n/m
|
|
|
572,660
|
|
|
531,365
|
|
|
8
|
|
||||||
Allocated capital
|
12,000
|
|
|
12,000
|
|
|
18,000
|
|
|
17,000
|
|
|
30,000
|
|
|
29,000
|
|
|
3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Period end
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
% Change
|
|||||||||||||
Total loans and leases
|
$
|
6,010
|
|
|
$
|
5,927
|
|
|
$
|
211,610
|
|
|
$
|
208,478
|
|
|
$
|
217,620
|
|
|
$
|
214,405
|
|
|
1
|
%
|
Total earning assets
(1)
|
596,196
|
|
|
576,241
|
|
|
212,718
|
|
|
209,858
|
|
|
620,286
|
|
|
599,491
|
|
|
3
|
|
||||||
Total assets
(1)
|
622,922
|
|
|
603,580
|
|
|
222,321
|
|
|
219,307
|
|
|
656,615
|
|
|
636,279
|
|
|
3
|
|
||||||
Total deposits
|
590,829
|
|
|
571,467
|
|
|
n/m
|
|
|
n/m
|
|
|
592,118
|
|
|
572,738
|
|
|
3
|
|
(1)
|
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
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Statistics
–
Deposits
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
|
2016
|
|
2015
|
||||
Total deposit spreads (excludes noninterest costs)
|
1.66
|
%
|
|
1.62
|
%
|
||
|
|
|
|
||||
Period end
|
|
|
|
||||
Client brokerage assets (in millions)
|
$
|
126,921
|
|
|
$
|
118,492
|
|
Online banking active accounts (units in thousands)
|
32,647
|
|
|
31,523
|
|
||
Mobile banking active users (units in thousands)
|
19,595
|
|
|
17,092
|
|
||
Financial centers
|
4,689
|
|
|
4,835
|
|
||
ATMs
|
16,003
|
|
|
15,903
|
|
Key Statistics
–
Consumer Lending
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Total U.S. credit card
(1)
|
|
|
|
||||
Gross interest yield
|
9.32
|
%
|
|
9.27
|
%
|
||
Risk-adjusted margin
|
9.05
|
|
|
9.02
|
|
||
New accounts (in thousands)
|
1,208
|
|
|
1,161
|
|
||
Purchase volumes
|
$
|
51,154
|
|
|
$
|
50,178
|
|
Debit card purchase volumes
|
$
|
69,147
|
|
|
$
|
66,898
|
|
(1)
|
In addition to the U.S. credit card portfolio in
Consumer Banking
, the remaining U.S. credit card portfolio is in
GWIM
.
|
Mortgage Banking Income
|
Mortgage Banking Income
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Consumer Lending:
|
|
|
|
||||
Core production revenue
|
$
|
137
|
|
|
$
|
300
|
|
Representations and warranties provision
|
2
|
|
|
6
|
|
||
Other consumer mortgage banking income
(1)
|
(17
|
)
|
|
(18
|
)
|
||
Total Consumer Lending mortgage banking income
|
122
|
|
|
288
|
|
||
LAS
mortgage banking income
(2)
|
372
|
|
|
461
|
|
||
Eliminations
(3)
|
(61
|
)
|
|
(55
|
)
|
||
Total consolidated mortgage banking income
|
$
|
433
|
|
|
$
|
694
|
|
(1)
|
Primarily intercompany charges for loan servicing activities provided by
LAS
.
|
(2)
|
Amounts for
LAS
are included in this
Consumer Banking
table to show the components of consolidated mortgage banking income.
|
(3)
|
Includes the effect of transfers of mortgage loans from
Consumer Banking
to the asset and liability management (ALM) portfolio included in
All Other,
intercompany charges for loan servicing and net gains or losses on intercompany trades related to mortgage servicing rights risk management.
|
Key Statistics
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Loan production
(1)
:
|
|
|
|
||||
Total
(2)
:
|
|
|
|
||||
First mortgage
|
$
|
12,623
|
|
|
$
|
13,713
|
|
Home equity
|
3,805
|
|
|
3,217
|
|
||
Consumer Banking:
|
|
|
|
||||
First mortgage
|
$
|
9,078
|
|
|
$
|
9,854
|
|
Home equity
|
3,515
|
|
|
3,017
|
|
(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
.
|
Global Wealth & Investment Management
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
1,489
|
|
|
$
|
1,351
|
|
|
10
|
%
|
Noninterest income:
|
|
|
|
|
|
|||||
Investment and brokerage services
|
2,536
|
|
|
2,723
|
|
|
(7
|
)
|
||
All other income
|
420
|
|
|
443
|
|
|
(5
|
)
|
||
Total noninterest income
|
2,956
|
|
|
3,166
|
|
|
(7
|
)
|
||
Total revenue, net of interest expense (FTE basis)
|
4,445
|
|
|
4,517
|
|
|
(2
|
)
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
25
|
|
|
23
|
|
|
9
|
|
||
Noninterest expense
|
3,250
|
|
|
3,458
|
|
|
(6
|
)
|
||
Income before income taxes (FTE basis)
|
1,170
|
|
|
1,036
|
|
|
13
|
|
||
Income tax expense (FTE basis)
|
430
|
|
|
384
|
|
|
12
|
|
||
Net income
|
$
|
740
|
|
|
$
|
652
|
|
|
13
|
|
|
|
|
|
|
|
|||||
Net interest yield (FTE basis)
|
2.14
|
%
|
|
2.13
|
%
|
|
|
|||
Return on average allocated capital
|
23
|
|
|
22
|
|
|
|
|||
Efficiency ratio (FTE basis)
|
73.12
|
|
|
76.56
|
|
|
|
|||
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
Three Months Ended March 31
|
|
|
|||||||
Average
|
2016
|
|
2015
|
|
% Change
|
|||||
Total loans and leases
|
$
|
137,868
|
|
|
$
|
126,129
|
|
|
9
|
%
|
Total earning assets
|
279,471
|
|
|
257,625
|
|
|
8
|
|
||
Total assets
|
295,576
|
|
|
275,130
|
|
|
7
|
|
||
Total deposits
|
260,482
|
|
|
243,561
|
|
|
7
|
|
||
Allocated capital
|
13,000
|
|
|
12,000
|
|
|
8
|
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2016 |
|
December 31
2015 |
|
% Change
|
|||||
Total loans and leases
|
$
|
138,418
|
|
|
$
|
137,847
|
|
|
<1%
|
|
Total earning assets
|
279,980
|
|
|
279,465
|
|
|
<1
|
|
||
Total assets
|
296,062
|
|
|
296,139
|
|
|
<(1)
|
|
||
Total deposits
|
260,565
|
|
|
260,893
|
|
|
<(1)
|
|
Key Indicators and Metrics
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions, except as noted)
|
2016
|
|
2015
|
||||
|
|
|
|
||||
Revenue by Business
|
|
|
|
||||
Merrill Lynch Global Wealth Management
|
$
|
3,647
|
|
|
$
|
3,748
|
|
U.S. Trust
|
773
|
|
|
751
|
|
||
Other
(1)
|
25
|
|
|
18
|
|
||
Total revenue, net of interest expense (FTE basis)
|
$
|
4,445
|
|
|
$
|
4,517
|
|
|
|
|
|
||||
Client Balances by Business, at period end
|
|
|
|
||||
Merrill Lynch Global Wealth Management
|
$
|
1,996,872
|
|
|
$
|
2,043,447
|
|
U.S. Trust
|
390,262
|
|
|
391,105
|
|
||
Other
(1)
|
77,751
|
|
|
75,295
|
|
||
Total client balances
|
$
|
2,464,885
|
|
|
$
|
2,509,847
|
|
|
|
|
|
||||
Client Balances by Type, at period end
|
|
|
|
||||
Long-term assets under management
|
$
|
812,916
|
|
|
$
|
841,966
|
|
Liquidity assets under management
|
77,747
|
|
|
75,291
|
|
||
Assets under management
|
890,663
|
|
|
917,257
|
|
||
Brokerage assets
|
1,056,752
|
|
|
1,076,277
|
|
||
Assets in custody
|
115,537
|
|
|
141,273
|
|
||
Deposits
|
260,565
|
|
|
244,080
|
|
||
Loans and leases
(2)
|
141,368
|
|
|
130,960
|
|
||
Total client balances
|
$
|
2,464,885
|
|
|
$
|
2,509,847
|
|
|
|
|
|
||||
Assets Under Management Rollforward
|
|
|
|
||||
Assets under management, beginning balance
|
$
|
900,863
|
|
|
$
|
902,872
|
|
Net long-term client flows
|
(599
|
)
|
|
14,654
|
|
||
Net liquidity client flows
|
(3,820
|
)
|
|
(1,493
|
)
|
||
Market valuation/other
|
(5,781
|
)
|
|
1,224
|
|
||
Total assets under management, ending balance
|
$
|
890,663
|
|
|
$
|
917,257
|
|
|
|
|
|
||||
Associates, at period end
(3, 4)
|
|
|
|
||||
Number of financial advisors
|
16,672
|
|
|
16,163
|
|
||
Total wealth advisors, including financial advisors
|
18,111
|
|
|
17,593
|
|
||
Total client-facing professionals, including financial advisors and wealth advisors
|
20,569
|
|
|
20,110
|
|
||
|
|
|
|
||||
Merrill Lynch Global Wealth Management Metric
(4)
|
|
|
|
||||
Financial advisor productivity
(5)
(in thousands)
|
$
|
983
|
|
|
$
|
1,041
|
|
|
|
|
|
||||
U.S. Trust Metric, at period end
(4)
|
|
|
|
||||
Client-facing professionals
|
2,184
|
|
|
2,176
|
|
(1)
|
Includes the results of BofA Global Capital Management, the cash management division of Bank of America, and certain administrative items.
|
(2)
|
Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
|
(3)
|
Includes financial advisors in the
Consumer Banking
segment of
2,259
and
1,978
at
March 31, 2016 and 2015
.
|
(4)
|
Headcount computation is based upon full-time equivalents.
|
(5)
|
Financial advisor productivity is defined as annualized Merrill Lynch Global Wealth Management total revenue, excluding the allocation of certain ALM activities, divided by the total number of financial advisors (excluding financial advisors in the
Consumer Banking
segment).
|
Net Migration Summary
|
Net Migration Summary
(1)
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Total deposits, net – to (from) GWIM
|
$
|
(391
|
)
|
|
$
|
(483
|
)
|
Total loans, net – to (from) GWIM
|
9
|
|
|
(26
|
)
|
||
Total brokerage, net – to (from)
GWIM
|
(240
|
)
|
|
(582
|
)
|
Global Banking
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
2,489
|
|
|
$
|
2,215
|
|
|
12
|
%
|
Noninterest income:
|
|
|
|
|
|
|||||
Service charges
|
745
|
|
|
710
|
|
|
5
|
|
||
Investment banking fees
|
636
|
|
|
852
|
|
|
(25
|
)
|
||
All other income
|
528
|
|
|
625
|
|
|
(16
|
)
|
||
Total noninterest income
|
1,909
|
|
|
2,187
|
|
|
(13
|
)
|
||
Total revenue, net of interest expense (FTE basis)
|
4,398
|
|
|
4,402
|
|
|
<(1)
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
553
|
|
|
96
|
|
|
n/m
|
|
||
Noninterest expense
|
2,159
|
|
|
2,132
|
|
|
1
|
|
||
Income before income taxes (FTE basis)
|
1,686
|
|
|
2,174
|
|
|
(22
|
)
|
||
Income tax expense (FTE basis)
|
620
|
|
|
807
|
|
|
(23
|
)
|
||
Net income
|
$
|
1,066
|
|
|
$
|
1,367
|
|
|
(22
|
)
|
|
|
|
|
|
|
|||||
Net interest yield (FTE basis)
|
2.97
|
%
|
|
2.88
|
%
|
|
|
|||
Return on average allocated capital
|
12
|
|
|
16
|
|
|
|
|||
Efficiency ratio (FTE basis)
|
49.09
|
|
|
48.45
|
|
|
|
|||
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
Three Months Ended March 31
|
|
|
|||||||
Average
|
2016
|
|
2015
|
|
% Change
|
|||||
Total loans and leases
|
$
|
324,552
|
|
|
$
|
284,298
|
|
|
14
|
%
|
Total earning assets
|
337,296
|
|
|
311,724
|
|
|
8
|
|
||
Total assets
|
387,661
|
|
|
361,771
|
|
|
7
|
|
||
Total deposits
|
297,134
|
|
|
286,434
|
|
|
4
|
|
||
Allocated capital
|
37,000
|
|
|
35,000
|
|
|
6
|
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2016 |
|
December 31
2015 |
|
% Change
|
|||||
Total loans and leases
|
$
|
329,543
|
|
|
$
|
319,658
|
|
|
3
|
%
|
Total earning assets
|
341,294
|
|
|
330,737
|
|
|
3
|
|
||
Total assets
|
390,643
|
|
|
382,053
|
|
|
2
|
|
||
Total deposits
|
298,072
|
|
|
296,162
|
|
|
1
|
|
Global Corporate, Global Commercial and Business Banking
|
Global Investment Banking
|
Investment Banking Fees
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31
|
||||||||||||||
|
Global Banking
|
|
Total Corporation
|
||||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Products
|
|
|
|
|
|
|
|
||||||||
Advisory
|
$
|
305
|
|
|
$
|
387
|
|
|
$
|
346
|
|
|
$
|
428
|
|
Debt issuance
|
265
|
|
|
335
|
|
|
669
|
|
|
781
|
|
||||
Equity issuance
|
66
|
|
|
130
|
|
|
188
|
|
|
345
|
|
||||
Gross investment banking fees
|
636
|
|
|
852
|
|
|
1,203
|
|
|
1,554
|
|
||||
Self-led deals
|
(11
|
)
|
|
(22
|
)
|
|
(50
|
)
|
|
(67
|
)
|
||||
Total investment banking fees
|
$
|
625
|
|
|
$
|
830
|
|
|
$
|
1,153
|
|
|
$
|
1,487
|
|
Global Markets
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
1,189
|
|
|
$
|
981
|
|
|
21
|
%
|
Noninterest income:
|
|
|
|
|
|
|||||
Investment and brokerage services
|
568
|
|
|
573
|
|
|
(1
|
)
|
||
Investment banking fees
|
494
|
|
|
630
|
|
|
(22
|
)
|
||
Trading account profits
|
1,592
|
|
|
2,131
|
|
|
(25
|
)
|
||
All other income (loss)
|
108
|
|
|
(124
|
)
|
|
n/m
|
|
||
Total noninterest income
|
2,762
|
|
|
3,210
|
|
|
(14
|
)
|
||
Total revenue, net of interest expense (FTE basis)
|
3,951
|
|
|
4,191
|
|
|
(6
|
)
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
9
|
|
|
21
|
|
|
(57
|
)
|
||
Noninterest expense
|
2,432
|
|
|
3,140
|
|
|
(23
|
)
|
||
Income before income taxes (FTE basis)
|
1,510
|
|
|
1,030
|
|
|
47
|
|
||
Income tax expense (FTE basis)
|
526
|
|
|
353
|
|
|
49
|
|
||
Net income
|
$
|
984
|
|
|
$
|
677
|
|
|
45
|
|
|
|
|
|
|
|
|||||
Return on average allocated capital
|
11
|
%
|
|
8
|
%
|
|
|
|||
Efficiency ratio (FTE basis)
|
61.56
|
|
|
74.92
|
|
|
|
|||
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
Three Months Ended March 31
|
|
|
|||||||
Average
|
2016
|
|
2015
|
|
% Change
|
|||||
Trading-related assets:
|
|
|
|
|
|
|||||
Trading account securities
|
$
|
187,930
|
|
|
$
|
193,491
|
|
|
(3
|
)%
|
Reverse repurchases
|
85,501
|
|
|
115,309
|
|
|
(26
|
)
|
||
Securities borrowed
|
80,807
|
|
|
78,713
|
|
|
3
|
|
||
Derivative assets
|
53,514
|
|
|
56,417
|
|
|
(5
|
)
|
||
Total trading-related assets
(1)
|
407,752
|
|
|
443,930
|
|
|
(8
|
)
|
||
Total loans and leases
|
69,283
|
|
|
56,601
|
|
|
22
|
|
||
Total earning assets
(1)
|
419,144
|
|
|
433,061
|
|
|
(3
|
)
|
||
Total assets
|
582,226
|
|
|
596,806
|
|
|
(2
|
)
|
||
Total deposits
|
36,173
|
|
|
39,587
|
|
|
(9
|
)
|
||
Allocated capital
|
37,000
|
|
|
35,000
|
|
|
6
|
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2016 |
|
December 31
2015 |
|
% Change
|
|||||
Total trading-related assets
(1)
|
$
|
408,309
|
|
|
$
|
373,950
|
|
|
9
|
%
|
Total loans and leases
|
73,446
|
|
|
73,208
|
|
|
<1
|
|
||
Total earning assets
(1)
|
423,118
|
|
|
385,157
|
|
|
10
|
|
||
Total assets
|
582,048
|
|
|
549,952
|
|
|
6
|
|
||
Total deposits
|
34,486
|
|
|
37,256
|
|
|
(7
|
)
|
(1)
|
Trading-related assets include derivative assets, which are considered non-earning assets.
|
Sales and Trading Revenue
|
Sales and Trading Revenue
(1, 2)
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Sales and trading revenue
|
|
|
|
||||
Fixed-income, currencies and commodities
|
$
|
2,404
|
|
|
$
|
2,352
|
|
Equities
|
1,037
|
|
|
1,137
|
|
||
Total sales and trading revenue
|
$
|
3,441
|
|
|
$
|
3,489
|
|
|
|
|
|
||||
Sales and trading revenue, excluding net DVA
(3)
|
|
|
|
||||
Fixed-income, currencies and commodities
|
$
|
2,264
|
|
|
$
|
2,744
|
|
Equities
|
1,023
|
|
|
1,146
|
|
||
Total sales and trading revenue, excluding net DVA
(3)
|
$
|
3,287
|
|
|
$
|
3,890
|
|
(1)
|
Includes FTE adjustments of
$44 million
and
$48 million
for the
three months ended March 31, 2016 and 2015
. For more information on sales and trading revenue, see
Note 2 – Derivatives
to the Consolidated Financial Statements
.
|
(2)
|
Includes
Global Banking
sales and trading revenue of
$160 million
and
$75 million
for the
three months ended March 31, 2016 and 2015
.
|
(3)
|
FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA gains were
$140 million
for the
three months ended March 31, 2016
compared to net DVA losses of
$392 million
for the
same period in 2015
. Equities net DVA gains were
$14 million
for the
three months ended March 31, 2016
compared to net DVA losses of
$9 million
for the
same period in 2015
.
|
Legacy Assets & Servicing
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
314
|
|
|
$
|
428
|
|
|
(27
|
)%
|
Noninterest income:
|
|
|
|
|
|
|||||
Mortgage banking income
|
372
|
|
|
461
|
|
|
(19
|
)
|
||
All other income (loss)
|
(7
|
)
|
|
25
|
|
|
n/m
|
|
||
Total noninterest income
|
365
|
|
|
486
|
|
|
(25
|
)
|
||
Total revenue, net of interest expense (FTE basis)
|
679
|
|
|
914
|
|
|
(26
|
)
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
(118
|
)
|
|
91
|
|
|
n/m
|
|
||
Noninterest expense
|
860
|
|
|
1,200
|
|
|
(28
|
)
|
||
Loss before income taxes (FTE basis)
|
(63
|
)
|
|
(377
|
)
|
|
(83
|
)
|
||
Income tax benefit (FTE basis)
|
(23
|
)
|
|
(140
|
)
|
|
(84
|
)
|
||
Net loss
|
$
|
(40
|
)
|
|
$
|
(237
|
)
|
|
(83
|
)
|
|
|
|
|
|
|
|||||
Net interest yield (FTE basis)
|
3.82
|
%
|
|
4.19
|
%
|
|
|
|||
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
Three Months Ended March 31
|
|
|
|||||||
Average
|
2016
|
|
2015
|
|
% Change
|
|||||
Total loans and leases
|
$
|
25,878
|
|
|
$
|
32,411
|
|
|
(20
|
)%
|
Total earning assets
|
33,080
|
|
|
41,468
|
|
|
(20
|
)
|
||
Total assets
|
41,821
|
|
|
52,713
|
|
|
(21
|
)
|
||
Allocated capital
|
23,000
|
|
|
24,000
|
|
|
(4
|
)
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2016 |
|
December 31
2015 |
|
% Change
|
|||||
Total loans and leases
|
$
|
25,115
|
|
|
$
|
26,521
|
|
|
(5
|
)%
|
Total earning assets
|
30,560
|
|
|
37,783
|
|
|
(19
|
)
|
||
Total assets
|
38,928
|
|
|
47,292
|
|
|
(18
|
)
|
(1)
|
Excludes
$26 billion
and
$32 billion
of home equity loans and home equity lines of credit (HELOCs) at
March 31, 2016 and 2015
.
|
(1)
|
Excludes
$46 billion
and
$49 billion
of home equity loans and HELOCs at
March 31, 2016 and 2015
.
|
LAS Mortgage Banking Income
|
LAS Mortgage Banking Income
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Servicing income:
|
|
|
|
||||
Servicing fees
|
$
|
330
|
|
|
$
|
430
|
|
Amortization of expected cash flows
(1)
|
(171
|
)
|
|
(198
|
)
|
||
Fair value changes of MSRs, net of risk management activities used to hedge certain market risks
(2)
|
126
|
|
|
250
|
|
||
Total net servicing income
|
285
|
|
|
482
|
|
||
Representations and warranties provision
|
(44
|
)
|
|
(90
|
)
|
||
Other mortgage banking income
(3)
|
131
|
|
|
69
|
|
||
Total
LAS
mortgage banking income
|
$
|
372
|
|
|
$
|
461
|
|
(1)
|
Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows.
|
(2)
|
Includes gains (losses) on sales of MSRs.
|
(3)
|
Consists primarily of revenue from sales of repurchased loans that had returned to performing status.
|
Key Statistics
|
|
|
|
|
|
||||
(Dollars in millions, except as noted)
|
March 31
2016 |
|
December 31
2015 |
||||||
Mortgage serviced portfolio (in billions)
(1, 2)
|
$
|
551
|
|
|
|
$
|
565
|
|
|
Mortgage loans serviced for investors (in billions)
(1)
|
368
|
|
|
|
378
|
|
|
||
Mortgage servicing rights:
|
|
|
|
|
|
||||
Balance
(3)
|
2,152
|
|
|
|
2,680
|
|
|
||
Capitalized mortgage servicing rights (% of loans serviced for investors)
|
58
|
|
bps
|
|
71
|
|
bps
|
(1)
|
The servicing portfolio and mortgage loans serviced for investors represent the unpaid principal balance of loans. At
March 31, 2016
and
December 31, 2015
, the balance excludes
$18 billion
and
$16 billion
of non-U.S. consumer mortgage loans serviced for investors.
|
(2)
|
Servicing of residential mortgage loans, HELOCs and home equity loans by
LAS
.
|
(3)
|
At
March 31, 2016
and
December 31, 2015
, excludes
$479 million
and
$407 million
of certain non-U.S. residential mortgage MSR balances that are recorded in
Global Markets
.
|
All Other
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
(1,280
|
)
|
|
$
|
(221
|
)
|
|
n/m
|
|
Noninterest income:
|
|
|
|
|
|
|||||
Card income
|
44
|
|
|
68
|
|
|
(35
|
)%
|
||
Gains on sales of debt securities
|
226
|
|
|
263
|
|
|
(14
|
)
|
||
All other loss
|
(384
|
)
|
|
(411
|
)
|
|
(7
|
)
|
||
Total noninterest income
|
(114
|
)
|
|
(80
|
)
|
|
43
|
|
||
Total revenue, net of interest expense (FTE basis)
|
(1,394
|
)
|
|
(301
|
)
|
|
n/m
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
(32
|
)
|
|
(182
|
)
|
|
(82
|
)
|
||
Noninterest expense
|
1,849
|
|
|
1,530
|
|
|
21
|
|
||
Loss before income taxes (FTE basis)
|
(3,211
|
)
|
|
(1,649
|
)
|
|
95
|
|
||
Income tax benefit (FTE basis)
|
(1,356
|
)
|
|
(826
|
)
|
|
64
|
|
||
Net loss
|
$
|
(1,855
|
)
|
|
$
|
(823
|
)
|
|
125
|
|
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
Three Months Ended March 31
|
|
|
|||||||
Average
|
2016
|
|
2015
|
|
% Change
|
|||||
Loans and leases:
|
|
|
|
|
|
|||||
Residential mortgage
|
$
|
104,395
|
|
|
$
|
151,305
|
|
|
(31
|
)%
|
Non-U.S. credit card
|
9,822
|
|
|
10,002
|
|
|
(2
|
)
|
||
Other
|
6,365
|
|
|
6,842
|
|
|
(7
|
)
|
||
Total loans and leases
|
120,582
|
|
|
168,149
|
|
|
(28
|
)
|
||
Total assets
(1)
|
229,339
|
|
|
257,574
|
|
|
(11
|
)
|
||
Total deposits
|
23,964
|
|
|
19,518
|
|
|
23
|
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2016 |
|
December 31
2015 |
|
% Change
|
|||||
Loans and leases:
|
|
|
|
|
|
|||||
Residential mortgage
|
$
|
100,524
|
|
|
$
|
109,030
|
|
|
(8
|
)%
|
Non-U.S. credit card
|
9,977
|
|
|
9,975
|
|
|
<1
|
|
||
Other
|
6,470
|
|
|
6,339
|
|
|
2
|
|
||
Total loans and leases
|
116,971
|
|
|
125,344
|
|
|
(7
|
)
|
||
Total equity investments
|
4,205
|
|
|
4,297
|
|
|
(2
|
)
|
||
Total assets
(1)
|
221,202
|
|
|
232,601
|
|
|
(5
|
)
|
||
Total deposits
|
23,885
|
|
|
22,919
|
|
|
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. Such allocated assets were
$517.9 billion
and
$502.2 billion
for the
three months ended March 31, 2016 and 2015
, and
$531.6 billion
and
$519.1 billion
at
March 31, 2016
and
December 31, 2015
.
|
|
|
|
|
Off-Balance Sheet Arrangements and Contractual Obligations
|
Representations and Warranties
|
Managing Risk
|
Capital Management
|
CCAR and Capital Planning
|
Regulatory Capital
|
Table 15
|
|||||||||
Summary of Certain Basel 3 Regulatory Capital Transition Provisions
|
|||||||||
Beginning on January 1 of each year
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
Common equity tier 1 capital
|
|
|
|
|
|
|
|
|
|
Percent of total amount deducted from Common equity tier 1 capital includes:
|
20%
|
|
40%
|
|
60%
|
|
80%
|
|
100%
|
Deferred tax assets arising from net operating loss and tax credit carryforwards; intangibles, other than mortgage servicing rights and goodwill; defined benefit pension fund net assets; net unrealized cumulative gains (losses) related to changes in own credit risk on liabilities, including derivatives, measured at fair value; direct and indirect investments in our own Common equity tier 1 capital instruments; certain amounts exceeding the threshold by 10 percent individually and 15 percent in aggregate
|
|||||||||
Percent of total amount used to adjust Common equity tier 1 capital includes
(1)
:
|
80%
|
|
60%
|
|
40%
|
|
20%
|
|
0%
|
Net unrealized gains (losses) on debt and certain marketable equity securities recorded in accumulated OCI; employee benefit plan adjustments recorded in accumulated OCI
|
|||||||||
Tier 1 capital
|
|
|
|
|
|
|
|
|
|
Percent of total amount deducted from Tier 1 capital includes:
|
80%
|
|
60%
|
|
40%
|
|
20%
|
|
0%
|
Deferred tax assets arising from net operating loss and tax credit carryforwards; defined benefit pension fund net assets; net unrealized cumulative gains (losses) related to changes in own credit risk on liabilities, including derivatives, measured at fair value
|
(1)
|
Represents the phase-out percentage of the exclusion by year (e.g., 60 percent of net unrealized gains (losses) on debt and certain marketable equity securities recorded in accumulated OCI will be included in 2016).
|
Table 16
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank of America Corporation Regulatory Capital under Basel 3
(1)
|
|
|
|
|
|
|
|||||||||||||||
|
March 31, 2016
|
||||||||||||||||||||
|
Transition
|
|
Fully Phased-in
|
||||||||||||||||||
(Dollars in millions)
|
Standardized Approach
|
|
Advanced Approaches
|
|
Regulatory Minimum
(2, 3)
|
|
Standardized Approach
|
|
Advanced Approaches
(4)
|
|
Regulatory Minimum
(5)
|
||||||||||
Risk-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity tier 1 capital
|
$
|
162,732
|
|
|
$
|
162,732
|
|
|
|
|
$
|
157,509
|
|
|
$
|
157,509
|
|
|
|
||
Tier 1 capital
|
182,550
|
|
|
182,550
|
|
|
|
|
181,393
|
|
|
181,393
|
|
|
|
||||||
Total capital
(6)
|
223,020
|
|
|
213,434
|
|
|
|
|
218,414
|
|
|
208,828
|
|
|
|
||||||
Risk-weighted assets (in billions)
|
1,406
|
|
|
1,587
|
|
|
|
|
1,426
|
|
|
1,557
|
|
|
|
||||||
Common equity tier 1 capital ratio
|
11.6
|
%
|
|
10.3
|
%
|
|
5.875
|
%
|
|
11.0
|
%
|
|
10.1
|
%
|
|
10.0
|
%
|
||||
Tier 1 capital ratio
|
13.0
|
|
|
11.5
|
|
|
7.375
|
|
|
12.7
|
|
|
11.6
|
|
|
11.5
|
|
||||
Total capital ratio
|
15.9
|
|
|
13.4
|
|
|
9.375
|
|
|
15.3
|
|
|
13.4
|
|
|
13.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage-based metrics:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted quarterly average assets (in billions)
(7)
|
$
|
2,095
|
|
|
$
|
2,095
|
|
|
|
|
$
|
2,095
|
|
|
$
|
2,095
|
|
|
|
||
Tier 1 leverage ratio
|
8.7
|
%
|
|
8.7
|
%
|
|
4.0
|
|
|
8.7
|
%
|
|
8.7
|
%
|
|
4.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SLR leverage exposure (in billions)
|
|
|
$
|
2,687
|
|
|
|
|
|
|
$
|
2,686
|
|
|
|
||||||
SLR
|
|
|
6.8
|
%
|
|
n/a
|
|
|
|
|
6.8
|
%
|
|
5.0
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2015
|
||||||||||||||||||||
Risk-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity tier 1 capital
|
$
|
163,026
|
|
|
$
|
163,026
|
|
|
|
|
$
|
154,084
|
|
|
$
|
154,084
|
|
|
|
||
Tier 1 capital
|
180,778
|
|
|
180,778
|
|
|
|
|
175,814
|
|
|
175,814
|
|
|
|
||||||
Total capital
(6)
|
220,676
|
|
|
210,912
|
|
|
|
|
211,167
|
|
|
201,403
|
|
|
|
||||||
Risk-weighted assets (in billions)
|
1,403
|
|
|
1,602
|
|
|
|
|
1,427
|
|
|
1,575
|
|
|
|
||||||
Common equity tier 1 capital ratio
|
11.6
|
%
|
|
10.2
|
%
|
|
4.5
|
%
|
|
10.8
|
%
|
|
9.8
|
%
|
|
10.0
|
%
|
||||
Tier 1 capital ratio
|
12.9
|
|
|
11.3
|
|
|
6.0
|
|
|
12.3
|
|
|
11.2
|
|
|
11.5
|
|
||||
Total capital ratio
|
15.7
|
|
|
13.2
|
|
|
8.0
|
|
|
14.8
|
|
|
12.8
|
|
|
13.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage-based metrics:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted quarterly average assets (in billions)
(7)
|
$
|
2,103
|
|
|
$
|
2,103
|
|
|
|
|
$
|
2,102
|
|
|
$
|
2,102
|
|
|
|
||
Tier 1 leverage ratio
|
8.6
|
%
|
|
8.6
|
%
|
|
4.0
|
|
|
8.4
|
%
|
|
8.4
|
%
|
|
4.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SLR leverage exposure (in billions)
|
|
|
$
|
2,728
|
|
|
|
|
|
|
$
|
2,727
|
|
|
|
||||||
SLR
|
|
|
6.6
|
%
|
|
n/a
|
|
|
|
|
6.4
|
%
|
|
5.0
|
|
(1)
|
As an Advanced approaches institution, we are required to report regulatory capital risk-weighted assets and ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is to be used to assess capital adequacy, and was the Advanced approaches at
March 31, 2016
and
December 31, 2015
.
|
(2)
|
The
March 31, 2016
amount includes a transition capital conservation buffer of 0.625 percent and a transition G-SIB surcharge of 0.75 percent. The 2016 countercyclical capital buffer is zero.
|
(3)
|
To be "well capitalized" under the current U.S. banking regulatory agency definitions, we must maintain a higher Total capital ratio of 10 percent.
|
(4)
|
Basel 3 fully phased-in Advanced approaches estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology (IMM). As of
March 31, 2016
, we did not have regulatory approval for the IMM model.
|
(5)
|
Fully phased-in regulatory capital minimums assume a capital conservation buffer of
2.5 percent
and estimated G-SIB surcharge of
3.0 percent
. The estimated fully phased-in countercyclical capital buffer is
zero
. We will be subject to fully phased-in regulatory minimums on January 1, 2019. The fully phased-in SLR minimum assumes a leverage buffer of 2.0 percent and is applicable on January 1, 2018.
|
(6)
|
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.
|
(7)
|
Reflects adjusted average total assets for the
three months ended March 31, 2016
and
December 31, 2015
.
|
Table 17
|
|||||||
Capital Composition under Basel 3 – Transition
(1)
|
|||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
Total common shareholders' equity
|
$
|
238,434
|
|
|
$
|
233,932
|
|
Goodwill
|
(69,214
|
)
|
|
(69,215
|
)
|
||
Deferred tax assets arising from net operating loss and tax credit carryforwards
|
(5,645
|
)
|
|
(3,434
|
)
|
||
Unamortized net periodic benefit costs recorded in accumulated OCI, net-of-tax
|
1,178
|
|
|
1,774
|
|
||
Net unrealized (gains) losses on debt and equity securities and net (gains) losses on derivatives recorded in accumulated OCI, net-of-tax
|
(8
|
)
|
|
1,220
|
|
||
Intangibles, other than mortgage servicing rights and goodwill
|
(1,475
|
)
|
|
(1,039
|
)
|
||
DVA related to liabilities and derivatives
|
115
|
|
|
204
|
|
||
Other
|
(653
|
)
|
|
(416
|
)
|
||
Common equity tier 1 capital
|
162,732
|
|
|
163,026
|
|
||
Qualifying preferred stock, net of issuance cost
|
24,341
|
|
|
22,273
|
|
||
Deferred tax assets arising from net operating loss and tax credit carryforwards
|
(3,764
|
)
|
|
(5,151
|
)
|
||
Trust preferred securities
|
—
|
|
|
1,430
|
|
||
Defined benefit pension fund assets
|
(381
|
)
|
|
(568
|
)
|
||
DVA related to liabilities and derivatives under transition
|
76
|
|
|
307
|
|
||
Other
|
(454
|
)
|
|
(539
|
)
|
||
Total Tier 1 capital
|
182,550
|
|
|
180,778
|
|
||
Long-term debt qualifying as Tier 2 capital
|
24,385
|
|
|
22,579
|
|
||
Eligible credit reserves included in Tier 2 capital
|
3,110
|
|
|
3,116
|
|
||
Nonqualifying capital instruments subject to phase out from Tier 2 capital
|
3,409
|
|
|
4,448
|
|
||
Other
|
(20
|
)
|
|
(9
|
)
|
||
Total Basel 3 capital
|
$
|
213,434
|
|
|
$
|
210,912
|
|
(1)
|
As an Advanced approaches institution, we are required to report regulatory capital risk-weighted assets and ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is to be used to assess capital adequacy, and was the Advanced approaches at
March 31, 2016
and
December 31, 2015
.
|
Table 18
|
|
|
|
|
|||||||||||
Risk-weighted assets under Basel 3
–
Transition
|
|
|
|
|
|||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
(Dollars in billions)
|
Standardized Approach
|
|
Advanced Approaches
|
|
Standardized Approach
|
|
Advanced Approaches
|
||||||||
Credit risk
|
$
|
1,317
|
|
|
$
|
924
|
|
|
$
|
1,314
|
|
|
$
|
940
|
|
Market risk
|
89
|
|
|
86
|
|
|
89
|
|
|
86
|
|
||||
Operational risk
|
n/a
|
|
|
500
|
|
|
n/a
|
|
|
500
|
|
||||
Risks related to CVA
|
n/a
|
|
|
77
|
|
|
n/a
|
|
|
76
|
|
||||
Total risk-weighted assets
|
$
|
1,406
|
|
|
$
|
1,587
|
|
|
$
|
1,403
|
|
|
$
|
1,602
|
|
Table 19
|
|||||||
Regulatory Capital Reconciliations between Basel 3 Transition to Fully Phased-in
(1)
|
|||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
Common equity tier 1 capital (transition)
|
$
|
162,732
|
|
|
$
|
163,026
|
|
Deferred tax assets arising from net operating loss and tax credit carryforwards phased in during transition
|
(3,764
|
)
|
|
(5,151
|
)
|
||
Accumulated OCI phased in during transition
|
(117
|
)
|
|
(1,917
|
)
|
||
Intangibles phased in during transition
|
(983
|
)
|
|
(1,559
|
)
|
||
Defined benefit pension fund assets phased in during transition
|
(381
|
)
|
|
(568
|
)
|
||
DVA related to liabilities and derivatives phased in during transition
|
76
|
|
|
307
|
|
||
Other adjustments and deductions phased in during transition
|
(54
|
)
|
|
(54
|
)
|
||
Common equity tier 1 capital (fully phased-in)
|
157,509
|
|
|
154,084
|
|
||
Additional Tier 1 capital (transition)
|
19,818
|
|
|
17,752
|
|
||
Deferred tax assets arising from net operating loss and tax credit carryforwards phased out during transition
|
3,764
|
|
|
5,151
|
|
||
Trust preferred securities phased out during transition
|
—
|
|
|
(1,430
|
)
|
||
Defined benefit pension fund assets phased out during transition
|
381
|
|
|
568
|
|
||
DVA related to liabilities and derivatives phased out during transition
|
(76
|
)
|
|
(307
|
)
|
||
Other transition adjustments to additional Tier 1 capital
|
(3
|
)
|
|
(4
|
)
|
||
Additional Tier 1 capital (fully phased-in)
|
23,884
|
|
|
21,730
|
|
||
Tier 1 capital (fully phased-in)
|
181,393
|
|
|
175,814
|
|
||
Tier 2 capital (transition)
|
30,884
|
|
|
30,134
|
|
||
Nonqualifying capital instruments phased out during transition
|
(3,409
|
)
|
|
(4,448
|
)
|
||
Changes in Tier 2 qualifying allowance for credit losses and others
|
9,546
|
|
|
9,667
|
|
||
Tier 2 capital (fully phased-in)
|
37,021
|
|
|
35,353
|
|
||
Basel 3 Standardized approach Total capital (fully phased-in)
|
218,414
|
|
|
211,167
|
|
||
Change in Tier 2 qualifying allowance for credit losses
|
(9,586
|
)
|
|
(9,764
|
)
|
||
Basel 3 Advanced approaches Total capital (fully phased-in)
|
$
|
208,828
|
|
|
$
|
201,403
|
|
|
|
|
|
||||
Risk-weighted assets – As reported to Basel 3 (fully phased-in)
|
|
|
|
||||
Basel 3 Standardized approach risk-weighted assets as reported
|
$
|
1,405,748
|
|
|
$
|
1,403,293
|
|
Changes in risk-weighted assets from reported to fully phased-in
|
20,104
|
|
|
24,089
|
|
||
Basel 3 Standardized approach risk-weighted assets (fully phased-in)
|
$
|
1,425,852
|
|
|
$
|
1,427,382
|
|
|
|
|
|
||||
Basel 3 Advanced approaches risk-weighted assets as reported
|
$
|
1,586,993
|
|
|
$
|
1,602,373
|
|
Changes in risk-weighted assets from reported to fully phased-in
|
(29,710
|
)
|
|
(27,690
|
)
|
||
Basel 3 Advanced approaches risk-weighted assets (fully phased-in)
(2)
|
$
|
1,557,283
|
|
|
$
|
1,574,683
|
|
(1)
|
As an Advanced approaches institution, we are required to report regulatory capital risk-weighted assets and ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is to be used to assess capital adequacy, and was the Advanced approaches at
March 31, 2016
and
December 31, 2015
.
|
(2)
|
Basel 3 fully phased-in Advanced approaches estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology (IMM). As of
March 31, 2016
, we did not have regulatory approval for the IMM model.
|
Table 20
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Bank of America, N.A. Regulatory Capital under Basel 3
|
|||||||||||||||||||
|
March 31, 2016
|
||||||||||||||||||
|
Standardized Approach
|
|
Advanced Approaches
|
||||||||||||||||
(Dollars in millions)
|
Ratio
|
|
Amount
|
|
Minimum
Required
(1)
|
|
Ratio
|
|
Amount
|
|
Minimum
Required
(1)
|
||||||||
Common equity tier 1 capital
|
12.6
|
%
|
|
$
|
149,537
|
|
|
6.5
|
%
|
|
13.7
|
%
|
|
$
|
149,537
|
|
|
6.5
|
%
|
Tier 1 capital
|
12.6
|
|
|
149,537
|
|
|
8.0
|
|
|
13.7
|
|
|
149,537
|
|
|
8.0
|
|
||
Total capital
|
13.8
|
|
|
164,043
|
|
|
10.0
|
|
|
14.2
|
|
|
154,912
|
|
|
10.0
|
|
||
Tier 1 leverage
|
9.5
|
|
|
149,537
|
|
|
5.0
|
|
|
9.5
|
|
|
149,537
|
|
|
5.0
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2015
|
||||||||||||||||||
Common equity tier 1 capital
|
12.2
|
%
|
|
$
|
144,869
|
|
|
6.5
|
%
|
|
13.1
|
%
|
|
$
|
144,869
|
|
|
6.5
|
%
|
Tier 1 capital
|
12.2
|
|
|
144,869
|
|
|
8.0
|
|
|
13.1
|
|
|
144,869
|
|
|
8.0
|
|
||
Total capital
|
13.5
|
|
|
159,871
|
|
|
10.0
|
|
|
13.6
|
|
|
150,624
|
|
|
10.0
|
|
||
Tier 1 leverage
|
9.2
|
|
|
144,869
|
|
|
5.0
|
|
|
9.2
|
|
|
144,869
|
|
|
5.0
|
|
(1)
|
Percent required to meet guidelines to be considered "well capitalized" under the Prompt Corrective Action framework.
|
Common and Preferred Stock Dividends
|
Table 21
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred Stock Cash Dividend Summary
|
||||||||||||||||
Preferred Stock
|
Outstanding
Notional
Amount
(in millions)
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Per Annum
Dividend Rate
|
|
Dividend Per
Share
|
|||||
Series B
(1)
|
$
|
1
|
|
|
January 21, 2016
|
|
April 11, 2016
|
|
April 25, 2016
|
|
7.00
|
%
|
|
$
|
1.75
|
|
|
|
|
April 27, 2016
|
|
July 11, 2016
|
|
July 25, 2016
|
|
7.00
|
|
|
1.75
|
|
|||
Series D
(2)
|
$
|
654
|
|
|
January 11, 2016
|
|
February 29, 2016
|
|
March 14, 2016
|
|
6.204
|
%
|
|
$
|
0.38775
|
|
|
|
|
April 15, 2016
|
|
May 31, 2016
|
|
June 14, 2016
|
|
6.204
|
|
|
0.38775
|
|
|||
Series E
(2)
|
$
|
317
|
|
|
January 11, 2016
|
|
January 29, 2016
|
|
February 16, 2016
|
|
Floating
|
|
|
$
|
0.25556
|
|
|
|
|
April 15, 2016
|
|
April 29, 2016
|
|
May 16, 2016
|
|
Floating
|
|
|
0.25000
|
|
|||
Series F
|
$
|
141
|
|
|
January 11, 2016
|
|
February 29, 2016
|
|
March 15, 2016
|
|
Floating
|
|
|
$
|
1,011.11111
|
|
|
|
|
April 15, 2016
|
|
May 31, 2016
|
|
June 15, 2016
|
|
Floating
|
|
|
1,022.22222
|
|
|||
Series G
|
$
|
493
|
|
|
January 11, 2016
|
|
February 29, 2016
|
|
March 15, 2016
|
|
Adjustable
|
|
|
$
|
1,011.11111
|
|
|
|
|
April 15, 2016
|
|
May 31, 2016
|
|
June 15, 2016
|
|
Adjustable
|
|
|
1,022.22222
|
|
|||
Series I
(2)
|
$
|
365
|
|
|
January 11, 2016
|
|
March 15, 2016
|
|
April 1, 2016
|
|
6.625
|
%
|
|
$
|
0.4140625
|
|
|
|
|
April 15, 2016
|
|
June 15, 2016
|
|
July 1, 2016
|
|
6.625
|
|
|
0.4140625
|
|
|||
Series K (3, 4)
|
$
|
1,544
|
|
|
January 11, 2016
|
|
January 15, 2016
|
|
February 1, 2016
|
|
Fixed-to-floating
|
|
|
$
|
40.00
|
|
Series L
|
$
|
3,080
|
|
|
March 18, 2016
|
|
April 1, 2016
|
|
May 2, 2016
|
|
7.25
|
%
|
|
$
|
18.125
|
|
Series M
(3, 4)
|
$
|
1,310
|
|
|
April 15, 2016
|
|
April 30, 2016
|
|
May 16, 2016
|
|
Fixed-to-floating
|
|
|
$
|
40.625
|
|
Series T
|
$
|
5,000
|
|
|
January 21, 2016
|
|
March 26, 2016
|
|
April 11, 2016
|
|
6.00
|
%
|
|
$
|
1,500.00
|
|
|
|
|
April 27, 2016
|
|
June 25, 2016
|
|
July 11, 2016
|
|
6.00
|
|
|
1,500.00
|
|
|||
Series U
(3, 4)
|
$
|
1,000
|
|
|
April 15, 2016
|
|
May 15, 2016
|
|
June 1, 2016
|
|
Fixed-to-floating
|
|
|
$
|
26.00
|
|
Series V
(3, 4)
|
$
|
1,500
|
|
|
April 15, 2016
|
|
June 1, 2016
|
|
June 17, 2016
|
|
Fixed-to-floating
|
|
|
$
|
25.625
|
|
Series W
(2)
|
$
|
1,100
|
|
|
January 11, 2016
|
|
February 15, 2016
|
|
March 9, 2016
|
|
6.625
|
%
|
|
$
|
0.4140625
|
|
|
|
|
April 15, 2016
|
|
May 15, 2016
|
|
June 9, 2016
|
|
6.625
|
|
|
0.4140625
|
|
|||
Series X
(3, 4)
|
$
|
2,000
|
|
|
January 11, 2016
|
|
February 15, 2016
|
|
March 7, 2016
|
|
Fixed-to-floating
|
|
|
$
|
31.25
|
|
Series Y
(2)
|
$
|
1,100
|
|
|
March 18, 2016
|
|
April 1, 2016
|
|
April 27, 2016
|
|
6.50
|
%
|
|
$
|
0.40625
|
|
Series Z
(3, 4)
|
$
|
1,400
|
|
|
March 18, 2016
|
|
April 1, 2016
|
|
April 25, 2016
|
|
Fixed-to-floating
|
|
|
$
|
32.50
|
|
Series AA
(3, 4)
|
$
|
1,900
|
|
|
January 11, 2016
|
|
March 1, 2016
|
|
March 17, 2016
|
|
Fixed-to-floating
|
|
|
$
|
30.50
|
|
Series CC
(2)
|
$
|
1,100
|
|
|
March 18, 2016
|
|
April 1, 2016
|
|
April 29, 2016
|
|
6.20
|
%
|
|
$
|
0.3875
|
|
(1)
|
Dividends are cumulative.
|
(2)
|
Dividends per depositary share, each representing a 1/1,000
th
interest in a share of preferred stock.
|
(3)
|
Initially pays dividends semi-annually.
|
(4)
|
Dividends per depositary share, each representing a 1/25
th
interest in a share of preferred stock.
|
Table 21
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred Stock Cash Dividend Summary (continued)
|
||||||||||||||||
Preferred Stock
|
Outstanding
Notional
Amount
(in millions)
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Per Annum
Dividend Rate
|
|
Dividend Per
Share
|
|||||
Series 1
(5)
|
$
|
98
|
|
|
January 11, 2016
|
|
February 15, 2016
|
|
February 29, 2016
|
|
Floating
|
|
|
$
|
0.18750
|
|
|
|
|
April 15, 2016
|
|
May 15, 2016
|
|
May 31, 2016
|
|
Floating
|
|
|
0.18750
|
|
|||
Series 2
(5)
|
$
|
299
|
|
|
January 11, 2016
|
|
February 15, 2016
|
|
February 29, 2016
|
|
Floating
|
|
|
$
|
0.19167
|
|
|
|
|
April 15, 2016
|
|
May 15, 2016
|
|
May 31, 2016
|
|
Floating
|
|
|
0.18750
|
|
|||
Series 3
(5)
|
$
|
653
|
|
|
January 11, 2016
|
|
February 15, 2016
|
|
February 29, 2016
|
|
6.375
|
%
|
|
$
|
0.3984375
|
|
|
|
|
April 15, 2016
|
|
May 15, 2016
|
|
May 31, 2016
|
|
6.375
|
|
|
0.3984375
|
|
|||
Series 4
(5)
|
$
|
210
|
|
|
January 11, 2016
|
|
February 15, 2016
|
|
February 29, 2016
|
|
Floating
|
|
|
$
|
0.25556
|
|
|
|
|
April 15, 2016
|
|
May 15, 2016
|
|
May 31, 2016
|
|
Floating
|
|
|
0.25000
|
|
|||
Series 5
(5)
|
$
|
422
|
|
|
January 11, 2016
|
|
February 1, 2016
|
|
February 22, 2016
|
|
Floating
|
|
|
$
|
0.25556
|
|
|
|
|
April 15, 2016
|
|
May 1, 2016
|
|
May 23, 2016
|
|
Floating
|
|
|
0.25000
|
|
(5)
|
Dividends per depositary share, each representing a 1/1,200
th
interest in a share of preferred stock.
|
Liquidity Risk
|
|
Funding and Liquidity Risk Management
|
Table 22
|
|||||||||||
Global Excess Liquidity Sources
|
|||||||||||
(Dollars in billions)
|
March 31
2016 |
|
December 31
2015 |
|
Average for Three Months Ended March 31, 2016
|
||||||
Parent company
|
$
|
85
|
|
|
$
|
96
|
|
|
$
|
89
|
|
Bank subsidiaries
|
394
|
|
|
361
|
|
|
374
|
|
|||
Other regulated entities
|
46
|
|
|
47
|
|
|
45
|
|
|||
Total Global Excess Liquidity Sources
|
$
|
525
|
|
|
$
|
504
|
|
|
$
|
508
|
|
Table 23
|
|||||||
Global Excess Liquidity Sources Composition
|
|||||||
(Dollars in billions)
|
March 31
2016 |
|
December 31
2015 |
||||
Cash on deposit
|
$
|
145
|
|
|
$
|
119
|
|
U.S. Treasury securities
|
34
|
|
|
38
|
|
||
U.S. agency securities and mortgage-backed securities
|
322
|
|
|
327
|
|
||
Non-U.S. government and supranational securities
|
24
|
|
|
20
|
|
||
Total Global Excess Liquidity Sources
|
$
|
525
|
|
|
$
|
504
|
|
Table 24
|
|||||||||||||||||||||||||||
Long-term Debt By Maturity
|
|||||||||||||||||||||||||||
|
Remainder of
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
Total
|
||||||||||||||
Bank of America Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes
|
$
|
13,401
|
|
|
$
|
18,511
|
|
|
$
|
20,306
|
|
|
$
|
17,084
|
|
|
$
|
11,678
|
|
|
$
|
42,497
|
|
|
$
|
123,477
|
|
Senior structured notes
|
2,973
|
|
|
3,145
|
|
|
2,367
|
|
|
1,431
|
|
|
969
|
|
|
7,400
|
|
|
18,285
|
|
|||||||
Subordinated notes
|
4,830
|
|
|
5,012
|
|
|
2,816
|
|
|
1,485
|
|
|
3
|
|
|
21,144
|
|
|
35,290
|
|
|||||||
Junior subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,841
|
|
|
5,841
|
|
|||||||
Total Bank of America Corporation
|
21,204
|
|
|
26,668
|
|
|
25,489
|
|
|
20,000
|
|
|
12,650
|
|
|
76,882
|
|
|
182,893
|
|
|||||||
Bank of America, N.A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes
|
3,049
|
|
|
3,646
|
|
|
5,812
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
12,528
|
|
|||||||
Subordinated notes
|
1,053
|
|
|
3,423
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1,792
|
|
|
6,269
|
|
|||||||
Advances from Federal Home Loan Banks
|
1,501
|
|
|
9
|
|
|
10
|
|
|
15
|
|
|
12
|
|
|
121
|
|
|
1,668
|
|
|||||||
Securitizations and other Bank VIEs
(1)
|
42
|
|
|
3,550
|
|
|
2,300
|
|
|
2,443
|
|
|
—
|
|
|
154
|
|
|
8,489
|
|
|||||||
Other
|
3
|
|
|
2,705
|
|
|
117
|
|
|
87
|
|
|
53
|
|
|
20
|
|
|
2,985
|
|
|||||||
Total Bank of America, N.A.
|
5,648
|
|
|
13,333
|
|
|
8,239
|
|
|
2,546
|
|
|
65
|
|
|
2,108
|
|
|
31,939
|
|
|||||||
Other debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
18
|
|
|||||||
Structured liabilities
|
2,294
|
|
|
2,852
|
|
|
1,040
|
|
|
1,015
|
|
|
990
|
|
|
7,050
|
|
|
15,241
|
|
|||||||
Nonbank VIEs
(1)
|
464
|
|
|
241
|
|
|
28
|
|
|
15
|
|
|
—
|
|
|
1,620
|
|
|
2,368
|
|
|||||||
Other
|
300
|
|
|
22
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
390
|
|
|||||||
Total other debt
|
3,058
|
|
|
3,116
|
|
|
1,108
|
|
|
1,030
|
|
|
990
|
|
|
8,715
|
|
|
18,017
|
|
|||||||
Total long-term debt
|
$
|
29,910
|
|
|
$
|
43,117
|
|
|
$
|
34,836
|
|
|
$
|
23,576
|
|
|
$
|
13,705
|
|
|
$
|
87,705
|
|
|
$
|
232,849
|
|
(1)
|
Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet.
|
Table 25
|
|||||||
Long-term Debt By Major Currency
|
|||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
U.S. Dollar
|
$
|
184,708
|
|
|
$
|
190,381
|
|
Euro
|
31,288
|
|
|
29,797
|
|
||
British Pound
|
7,111
|
|
|
7,080
|
|
||
Japanese Yen
|
2,939
|
|
|
3,099
|
|
||
Australian Dollar
|
2,647
|
|
|
2,534
|
|
||
Canadian Dollar
|
1,509
|
|
|
1,428
|
|
||
Swiss Franc
|
902
|
|
|
872
|
|
||
Other
|
1,745
|
|
|
1,573
|
|
||
Total long-term debt
|
$
|
232,849
|
|
|
$
|
236,764
|
|
Table 26
|
||||||||||||||||||
Senior Debt Ratings
|
||||||||||||||||||
|
|
Moody's Investors Service
|
|
Standard & Poor's
|
|
Fitch Ratings
|
||||||||||||
|
Long-term
|
|
Short-term
|
|
Outlook
|
|
Long-term
|
|
Short-term
(1)
|
|
Outlook
|
|
Long-term
|
|
Short-term
|
|
Outlook
|
|
Bank of America Corporation
|
Baa1
|
|
P-2
|
|
Stable
|
|
BBB+
|
|
A-2
|
|
Stable
|
|
A
|
|
F1
|
|
Stable
|
|
Bank of America, N.A.
|
A1
|
|
P-1
|
|
Stable
|
|
A
|
|
A-1
|
|
CreditWatch Positive
|
|
A+
|
|
F1
|
|
Stable
|
|
Merrill Lynch, Pierce, Fenner &
Smith, Inc. |
NR
|
|
NR
|
|
NR
|
|
A
|
|
A-1
|
|
CreditWatch Positive
|
|
A+
|
|
F1
|
|
Stable
|
|
Merrill Lynch International
|
NR
|
|
NR
|
|
NR
|
|
A
|
|
A-1
|
|
CreditWatch Positive
|
|
A
|
|
F1
|
|
Positive
|
(1)
|
Standard & Poor's Ratings Services short-term ratings are not on CreditWatch.
|
Credit Risk Management
|
Consumer Portfolio Credit Risk Management
|
Consumer Credit Portfolio
|
Table 27
|
|||||||||||||||
Consumer Loans and Leases
|
|||||||||||||||
|
Outstandings
|
|
Purchased Credit-impaired Loan Portfolio
|
||||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||
Residential mortgage
(1)
|
$
|
184,440
|
|
|
$
|
187,911
|
|
|
$
|
11,603
|
|
|
$
|
12,066
|
|
Home equity
|
73,771
|
|
|
75,948
|
|
|
4,368
|
|
|
4,619
|
|
||||
U.S. credit card
|
86,403
|
|
|
89,602
|
|
|
n/a
|
|
|
n/a
|
|
||||
Non-U.S. credit card
|
9,977
|
|
|
9,975
|
|
|
n/a
|
|
|
n/a
|
|
||||
Direct/Indirect consumer
(2)
|
90,609
|
|
|
88,795
|
|
|
n/a
|
|
|
n/a
|
|
||||
Other consumer
(3)
|
2,176
|
|
|
2,067
|
|
|
n/a
|
|
|
n/a
|
|
||||
Consumer loans excluding loans accounted for under the fair value option
|
447,376
|
|
|
454,298
|
|
|
15,971
|
|
|
16,685
|
|
||||
Loans accounted for under the fair value option
(4)
|
1,946
|
|
|
1,871
|
|
|
n/a
|
|
|
n/a
|
|
||||
Total consumer loans and leases
|
$
|
449,322
|
|
|
$
|
456,169
|
|
|
$
|
15,971
|
|
|
$
|
16,685
|
|
(1)
|
Outstandings include pay option loans of
$2.2 billion
and
$2.3 billion
at
March 31, 2016
and
December 31, 2015
. We no longer originate pay option loans.
|
(2)
|
Outstandings include auto and specialty lending loans of
$45.4 billion
and
$42.6 billion
, unsecured consumer lending loans of
$774 million
and
$886 million
, U.S. securities-based lending loans of
$39.2 billion
and
$39.8 billion
, non-U.S. consumer loans of
$3.7 billion
and
$3.9 billion
, student loans of
$547 million
and
$564 million
and other consumer loans of
$1.0 billion
and
$1.0 billion
at
March 31, 2016
and
December 31, 2015
.
|
(3)
|
Outstandings include consumer finance loans of
$538 million
and
$564 million
, consumer leases of
$1.5 billion
and
$1.4 billion
and consumer overdrafts of
$154 million
and
$146 million
at
March 31, 2016
and
December 31, 2015
.
|
(4)
|
Consumer loans accounted for under the fair value option include residential mortgage loans of
$1.6 billion
and
$1.6 billion
and home equity loans of
$348 million
and
$250 million
at
March 31, 2016
and
December 31, 2015
. For more information on the fair value option, see
Note 15 – Fair Value Option
to the Consolidated Financial Statements
.
|
Table 28
|
|||||||||||||||
Consumer Credit Quality
|
|||||||||||||||
|
Nonperforming
|
|
Accruing Past Due 90 Days or More
|
||||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||
Residential mortgage
(1)
|
$
|
3,976
|
|
|
$
|
4,803
|
|
|
$
|
6,334
|
|
|
$
|
7,150
|
|
Home equity
|
3,244
|
|
|
3,337
|
|
|
—
|
|
|
—
|
|
||||
U.S. credit card
|
n/a
|
|
|
n/a
|
|
|
743
|
|
|
789
|
|
||||
Non-U.S. credit card
|
n/a
|
|
|
n/a
|
|
|
77
|
|
|
76
|
|
||||
Direct/Indirect consumer
|
26
|
|
|
24
|
|
|
31
|
|
|
39
|
|
||||
Other consumer
|
1
|
|
|
1
|
|
|
2
|
|
|
3
|
|
||||
Total
(2)
|
$
|
7,247
|
|
|
$
|
8,165
|
|
|
$
|
7,187
|
|
|
$
|
8,057
|
|
Consumer loans and leases as a percentage of outstanding consumer loans and leases
(2)
|
1.62
|
%
|
|
1.80
|
%
|
|
1.61
|
%
|
|
1.77
|
%
|
||||
Consumer loans and leases as a percentage of outstanding loans and leases, excluding PCI and fully-insured loan portfolios
(2)
|
1.82
|
|
|
2.04
|
|
|
0.21
|
|
|
0.23
|
|
(1)
|
Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At
March 31, 2016
and
December 31, 2015
, residential mortgage included
$3.4 billion
and
$4.3 billion
of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and
$2.9 billion
and
$2.9 billion
of loans on which interest was still accruing.
|
(2)
|
Balances exclude consumer loans accounted for under the fair value option. At
March 31, 2016
and
December 31, 2015
,
$272 million
and
$293 million
of loans accounted for under the fair value option were past due 90 days or more and not accruing interest.
|
Table 29
|
|
|
|
|
|||||||||
Consumer Net Charge-offs and Related Ratios
|
|
|
|
|
|||||||||
|
Three Months Ended March 31
|
||||||||||||
|
Net Charge-offs
(1)
|
|
Net Charge-off Ratios
(1, 2)
|
||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Residential mortgage
|
$
|
91
|
|
|
$
|
197
|
|
|
0.20
|
%
|
|
0.37
|
%
|
Home equity
|
112
|
|
|
172
|
|
|
0.60
|
|
|
0.82
|
|
||
U.S. credit card
|
587
|
|
|
621
|
|
|
2.71
|
|
|
2.84
|
|
||
Non-U.S. credit card
|
45
|
|
|
44
|
|
|
1.85
|
|
|
1.80
|
|
||
Direct/Indirect consumer
|
34
|
|
|
34
|
|
|
0.15
|
|
|
0.17
|
|
||
Other consumer
|
48
|
|
|
49
|
|
|
9.07
|
|
|
10.88
|
|
||
Total
|
$
|
917
|
|
|
$
|
1,117
|
|
|
0.82
|
|
|
0.95
|
|
(1)
|
Net charge-offs exclude write-offs in the PCI loan portfolio. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
70
.
|
(2)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
|
Table 30
|
|||||||||||||||||||||||
Consumer Real Estate Portfolio
(1)
|
|||||||||||||||||||||||
|
Outstandings
|
|
Nonperforming
|
|
Net Charge-offs
(2)
|
||||||||||||||||||
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2016
|
|
2015
|
||||||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
$
|
145,322
|
|
|
$
|
145,845
|
|
|
$
|
1,616
|
|
|
$
|
1,845
|
|
|
$
|
19
|
|
|
$
|
51
|
|
Home equity
|
47,473
|
|
|
48,264
|
|
|
1,310
|
|
|
1,354
|
|
|
45
|
|
|
51
|
|
||||||
Total Core portfolio
|
192,795
|
|
|
194,109
|
|
|
2,926
|
|
|
3,199
|
|
|
64
|
|
|
102
|
|
||||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
39,118
|
|
|
42,066
|
|
|
2,360
|
|
|
2,958
|
|
|
72
|
|
|
146
|
|
||||||
Home equity
|
26,298
|
|
|
27,684
|
|
|
1,934
|
|
|
1,983
|
|
|
67
|
|
|
121
|
|
||||||
Total Legacy Assets & Servicing portfolio
|
65,416
|
|
|
69,750
|
|
|
4,294
|
|
|
4,941
|
|
|
139
|
|
|
267
|
|
||||||
Consumer real estate portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
184,440
|
|
|
187,911
|
|
|
3,976
|
|
|
4,803
|
|
|
91
|
|
|
197
|
|
||||||
Home equity
|
73,771
|
|
|
75,948
|
|
|
3,244
|
|
|
3,337
|
|
|
112
|
|
|
172
|
|
||||||
Total consumer real estate portfolio
|
$
|
258,211
|
|
|
$
|
263,859
|
|
|
$
|
7,220
|
|
|
$
|
8,140
|
|
|
$
|
203
|
|
|
$
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
Allowance for Loan
and Lease Losses
|
|
Provision for Loan
and Lease Losses
|
||||||||||||||||
|
|
|
|
|
March 31
2016 |
|
December 31
2015 |
|
Three Months Ended
March 31 |
||||||||||||||
|
|
|
|
|
|
|
2016
|
|
2015
|
||||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
|
|
|
|
$
|
382
|
|
|
$
|
418
|
|
|
$
|
(14
|
)
|
|
$
|
5
|
|
||||
Home equity
|
|
|
|
|
619
|
|
|
639
|
|
|
25
|
|
|
48
|
|
||||||||
Total Core portfolio
|
|
|
|
|
1,001
|
|
|
1,057
|
|
|
11
|
|
|
53
|
|
||||||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
|
|
|
|
930
|
|
|
1,082
|
|
|
(43
|
)
|
|
(94
|
)
|
||||||||
Home equity
|
|
|
|
|
1,525
|
|
|
1,775
|
|
|
(118
|
)
|
|
13
|
|
||||||||
Total Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
2,455
|
|
|
2,857
|
|
|
(161
|
)
|
|
(81
|
)
|
||||||
Consumer real estate portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
|
|
|
|
1,312
|
|
|
1,500
|
|
|
(57
|
)
|
|
(89
|
)
|
||||||||
Home equity
|
|
|
|
|
2,144
|
|
|
2,414
|
|
|
(93
|
)
|
|
61
|
|
||||||||
Total consumer real estate portfolio
|
|
|
|
|
$
|
3,456
|
|
|
$
|
3,914
|
|
|
$
|
(150
|
)
|
|
$
|
(28
|
)
|
(1)
|
Outstandings and nonperforming loans exclude loans accounted for under the fair value option. Consumer loans accounted for under the fair value option include residential mortgage loans of
$1.6 billion
and
$1.6 billion
and home equity loans of
$348 million
and
$250 million
at
March 31, 2016
and
December 31, 2015
. For more information on the fair value option, see
Note 15 – Fair Value Option
to the Consolidated Financial Statements
.
|
(2)
|
Net charge-offs exclude write-offs in the PCI loan portfolio. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
70
.
|
Table 31
|
||||||||||||||||
Residential Mortgage – Key Credit Statistics
|
||||||||||||||||
|
|
Reported Basis
(1)
|
|
Excluding Purchased
Credit-impaired and
Fully-insured Loans
|
||||||||||||
(Dollars in millions)
|
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||
Outstandings
|
|
$
|
184,440
|
|
|
$
|
187,911
|
|
|
$
|
139,998
|
|
|
$
|
138,768
|
|
Accruing past due 30 days or more
|
|
9,578
|
|
|
11,423
|
|
|
1,371
|
|
|
1,568
|
|
||||
Accruing past due 90 days or more
|
|
6,334
|
|
|
7,150
|
|
|
—
|
|
|
—
|
|
||||
Nonperforming loans
|
|
3,976
|
|
|
4,803
|
|
|
3,976
|
|
|
4,803
|
|
||||
Percent of portfolio
|
|
|
|
|
|
|
|
|
||||||||
Refreshed LTV greater than 90 but less than or equal to 100
|
|
7
|
%
|
|
7
|
%
|
|
4
|
%
|
|
5
|
%
|
||||
Refreshed LTV greater than 100
|
|
7
|
|
|
8
|
|
|
4
|
|
|
4
|
|
||||
Refreshed FICO below 620
|
|
11
|
|
|
13
|
|
|
5
|
|
|
6
|
|
||||
2006 and 2007 vintages
(2)
|
|
17
|
|
|
17
|
|
|
16
|
|
|
17
|
|
||||
|
|
Three Months Ended March 31
|
||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net charge-off ratio
(3)
|
|
0.20
|
%
|
|
0.37
|
%
|
|
0.26
|
%
|
|
0.59
|
%
|
(1)
|
Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option.
|
(2)
|
These vintages of loans account for $1.3 billion, or
34 percent
, and $1.6 billion, or
34 percent
of nonperforming residential mortgage loans at
March 31, 2016
and
December 31, 2015
. For the
three months ended March 31, 2016 and 2015
, these vintages accounted for
$7 million
, or
eight percent
, and
$47 million
, or
24 percent
of total residential mortgage net charge-offs.
|
(3)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
|
Table 32
|
|||||||||||||||||||||||
Residential Mortgage State Concentrations
|
|||||||||||||||||||||||
|
Outstandings
(1)
|
|
Nonperforming
(1)
|
|
Net Charge-offs
(2)
|
||||||||||||||||||
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2016
|
|
2015
|
||||||||||||||||
California
|
$
|
50,505
|
|
|
$
|
48,865
|
|
|
$
|
779
|
|
|
$
|
977
|
|
|
$
|
(23
|
)
|
|
$
|
(9
|
)
|
New York
(3)
|
12,825
|
|
|
12,696
|
|
|
341
|
|
|
399
|
|
|
14
|
|
|
13
|
|
||||||
Florida
(3)
|
9,940
|
|
|
10,001
|
|
|
428
|
|
|
534
|
|
|
15
|
|
|
24
|
|
||||||
Texas
|
6,218
|
|
|
6,208
|
|
|
159
|
|
|
185
|
|
|
6
|
|
|
5
|
|
||||||
Massachusetts
|
4,814
|
|
|
4,799
|
|
|
95
|
|
|
118
|
|
|
3
|
|
|
3
|
|
||||||
Other U.S./Non-U.S.
|
55,696
|
|
|
56,199
|
|
|
2,174
|
|
|
2,590
|
|
|
76
|
|
|
161
|
|
||||||
Residential mortgage loans
(4)
|
$
|
139,998
|
|
|
$
|
138,768
|
|
|
$
|
3,976
|
|
|
$
|
4,803
|
|
|
$
|
91
|
|
|
$
|
197
|
|
Fully-insured loan portfolio
|
32,839
|
|
|
37,077
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased credit-impaired residential mortgage loan portfolio
(5)
|
11,603
|
|
|
12,066
|
|
|
|
|
|
|
|
|
|
||||||||||
Total residential mortgage loan portfolio
|
$
|
184,440
|
|
|
$
|
187,911
|
|
|
|
|
|
|
|
|
|
(1)
|
Outstandings and nonperforming loans exclude loans accounted for under the fair value option.
|
(2)
|
Net charge-offs exclude
$39 million
and
$188 million
of write-offs in the residential mortgage PCI loan portfolio for the
three months ended March 31, 2016 and 2015
. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
70
.
|
(3)
|
In these states, foreclosure requires a court order following a legal proceeding (judicial states).
|
(4)
|
Amounts exclude the PCI residential mortgage and fully-insured loan portfolios.
|
(5)
|
At
March 31, 2016
and
December 31, 2015
, 48 percent and 47 percent of PCI residential mortgage loans were in California. There were no other significant single state concentrations.
|
Table 33
|
||||||||||||||||
Home Equity – Key Credit Statistics
|
||||||||||||||||
|
|
Reported Basis
(1)
|
|
Excluding Purchased
Credit-impaired Loans |
||||||||||||
(Dollars in millions)
|
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||
Outstandings
|
|
$
|
73,771
|
|
|
$
|
75,948
|
|
|
$
|
69,403
|
|
|
$
|
71,329
|
|
Accruing past due 30 days or more
(2)
|
|
555
|
|
|
613
|
|
|
555
|
|
|
613
|
|
||||
Nonperforming loans
(2)
|
|
3,244
|
|
|
3,337
|
|
|
3,244
|
|
|
3,337
|
|
||||
Percent of portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Refreshed CLTV greater than 90 but less than or equal to 100
|
|
6
|
%
|
|
6
|
%
|
|
6
|
%
|
|
6
|
%
|
||||
Refreshed CLTV greater than 100
|
|
12
|
|
|
12
|
|
|
10
|
|
|
11
|
|
||||
Refreshed FICO below 620
|
|
7
|
|
|
7
|
|
|
6
|
|
|
7
|
|
||||
2006 and 2007 vintages
(3)
|
|
42
|
|
|
43
|
|
|
40
|
|
|
41
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended March 31
|
||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net charge-off ratio
(4)
|
|
0.60
|
%
|
|
0.82
|
%
|
|
0.64
|
%
|
|
0.88
|
%
|
(1)
|
Outstandings, accruing past due, nonperforming loans and percentages of the portfolio exclude loans accounted for under the fair value option.
|
(2)
|
Accruing past due 30 days or more includes
$74 million
and
$89 million
and nonperforming loans include
$370 million
and
$396 million
of loans where we serviced the underlying first-lien at
March 31, 2016
and
December 31, 2015
.
|
(3)
|
These vintages of loans have higher refreshed combined LTV ratios and accounted for
45 percent
of nonperforming home equity loans at both
March 31, 2016
and
December 31, 2015
, and
41 percent
and
59 percent
of net charge-offs for the
three months ended March 31, 2016 and 2015
.
|
(4)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
|
Table 34
|
|||||||||||||||||||||||
Home Equity State Concentrations
|
|||||||||||||||||||||||
|
Outstandings
(1)
|
|
Nonperforming
(1)
|
|
Net Charge-offs
(2)
|
||||||||||||||||||
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2016
|
|
2015
|
||||||||||||||||
California
|
$
|
19,760
|
|
|
$
|
20,356
|
|
|
$
|
899
|
|
|
$
|
902
|
|
|
$
|
10
|
|
|
$
|
24
|
|
Florida
(3)
|
8,187
|
|
|
8,474
|
|
|
499
|
|
|
518
|
|
|
17
|
|
|
30
|
|
||||||
New Jersey
(3)
|
5,475
|
|
|
5,570
|
|
|
220
|
|
|
230
|
|
|
11
|
|
|
13
|
|
||||||
New York
(3)
|
5,141
|
|
|
5,249
|
|
|
298
|
|
|
316
|
|
|
10
|
|
|
12
|
|
||||||
Massachusetts
|
3,305
|
|
|
3,378
|
|
|
112
|
|
|
115
|
|
|
3
|
|
|
5
|
|
||||||
Other U.S./Non-U.S.
|
27,535
|
|
|
28,302
|
|
|
1,216
|
|
|
1,256
|
|
|
61
|
|
|
88
|
|
||||||
Home equity loans
(4)
|
$
|
69,403
|
|
|
$
|
71,329
|
|
|
$
|
3,244
|
|
|
$
|
3,337
|
|
|
$
|
112
|
|
|
$
|
172
|
|
Purchased credit-impaired home equity portfolio
(5)
|
4,368
|
|
|
4,619
|
|
|
|
|
|
|
|
|
|
||||||||||
Total home equity loan portfolio
|
$
|
73,771
|
|
|
$
|
75,948
|
|
|
|
|
|
|
|
|
|
(1)
|
Outstandings and nonperforming loans exclude loans accounted for under the fair value option.
|
(2)
|
Net charge-offs exclude
$66 million
and
$100 million
of write-offs in the home equity PCI loan portfolio for the
three months ended March 31, 2016 and 2015
. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
70
.
|
(3)
|
In these states, foreclosure requires a court order following a legal proceeding (judicial states).
|
(4)
|
Amount excludes the PCI home equity portfolio.
|
(5)
|
At both
March 31, 2016
and
December 31, 2015
, 29 percent of PCI home equity loans were in California. There were no other significant single state concentrations.
|
Table 35
|
||||||||||||||||||
Purchased Credit-impaired Loan Portfolio
|
||||||||||||||||||
|
March 31, 2016
|
|||||||||||||||||
(Dollars in millions)
|
Unpaid
Principal
Balance
|
|
Gross Carrying
Value
|
|
Related
Valuation
Allowance
|
|
Carrying
Value Net of Valuation
Allowance
|
|
Percent of Unpaid
Principal
Balance
|
|||||||||
Residential mortgage
|
$
|
11,862
|
|
|
$
|
11,603
|
|
|
$
|
281
|
|
|
$
|
11,322
|
|
|
95.45
|
%
|
Home equity
|
4,435
|
|
|
4,368
|
|
|
341
|
|
|
4,027
|
|
|
90.80
|
|
||||
Total purchased credit-impaired loan portfolio
|
$
|
16,297
|
|
|
$
|
15,971
|
|
|
$
|
622
|
|
|
$
|
15,349
|
|
|
94.18
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
December 31, 2015
|
|||||||||||||||||
Residential mortgage
|
$
|
12,350
|
|
|
$
|
12,066
|
|
|
$
|
338
|
|
|
$
|
11,728
|
|
|
94.96
|
%
|
Home equity
|
4,650
|
|
|
4,619
|
|
|
466
|
|
|
4,153
|
|
|
89.31
|
|
||||
Total purchased credit-impaired loan portfolio
|
$
|
17,000
|
|
|
$
|
16,685
|
|
|
$
|
804
|
|
|
$
|
15,881
|
|
|
93.42
|
|
|
|
|
|
|
|
|
|
Table 36
|
|
|
|
||||
U.S. Credit Card – Key Credit Statistics
|
|||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
Outstandings
|
$
|
86,403
|
|
|
$
|
89,602
|
|
Accruing past due 30 days or more
|
1,448
|
|
|
1,575
|
|
||
Accruing past due 90 days or more
|
743
|
|
|
789
|
|
||
|
|
|
|
||||
|
Three Months Ended
March 31 |
||||||
|
2016
|
|
2015
|
||||
Net charge-offs
|
$
|
587
|
|
|
$
|
621
|
|
Net charge-off ratios
(1)
|
2.71
|
%
|
|
2.84
|
%
|
(1)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans.
|
Table 37
|
|||||||||||||||||||||||
U.S. Credit Card State Concentrations
|
|||||||||||||||||||||||
|
Outstandings
|
|
Accruing Past Due
90 Days or More
|
|
Net Charge-offs
|
||||||||||||||||||
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2016
|
|
2015
|
||||||||||||||||
California
|
$
|
13,239
|
|
|
$
|
13,658
|
|
|
$
|
109
|
|
|
$
|
115
|
|
|
$
|
92
|
|
|
$
|
94
|
|
Florida
|
7,199
|
|
|
7,420
|
|
|
76
|
|
|
81
|
|
|
64
|
|
|
67
|
|
||||||
Texas
|
6,466
|
|
|
6,620
|
|
|
56
|
|
|
58
|
|
|
41
|
|
|
41
|
|
||||||
New York
|
5,343
|
|
|
5,547
|
|
|
54
|
|
|
57
|
|
|
40
|
|
|
42
|
|
||||||
Washington
|
3,778
|
|
|
3,907
|
|
|
19
|
|
|
19
|
|
|
14
|
|
|
16
|
|
||||||
Other U.S.
|
50,378
|
|
|
52,450
|
|
|
429
|
|
|
459
|
|
|
336
|
|
|
361
|
|
||||||
Total U.S. credit card portfolio
|
$
|
86,403
|
|
|
$
|
89,602
|
|
|
$
|
743
|
|
|
$
|
789
|
|
|
$
|
587
|
|
|
$
|
621
|
|
Table 38
|
|
|
|
||||
Non-U.S. Credit Card – Key Credit Statistics
|
|||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
Outstandings
|
$
|
9,977
|
|
|
$
|
9,975
|
|
Accruing past due 30 days or more
|
142
|
|
|
146
|
|
||
Accruing past due 90 days or more
|
77
|
|
|
76
|
|
||
|
|
|
|
||||
|
Three Months Ended
March 31 |
||||||
|
2016
|
|
2015
|
||||
Net charge-offs
|
$
|
45
|
|
|
$
|
44
|
|
Net charge-off ratios
(1)
|
1.85
|
%
|
|
1.80
|
%
|
(1)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans.
|
Table 39
|
|||||||||||||||||||||||
Direct/Indirect State Concentrations
|
|||||||||||||||||||||||
|
Outstandings
|
|
Accruing Past Due
90 Days or More
|
|
Net Charge-offs
|
||||||||||||||||||
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2016
|
|
2015
|
||||||||||||||||
California
|
$
|
10,981
|
|
|
$
|
10,735
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
3
|
|
Florida
|
8,979
|
|
|
8,835
|
|
|
3
|
|
|
3
|
|
|
7
|
|
|
4
|
|
||||||
Texas
|
8,876
|
|
|
8,514
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
4
|
|
||||||
New York
|
5,152
|
|
|
5,077
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||||
Illinois
|
2,981
|
|
|
2,906
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||||
Other U.S./Non-U.S.
|
53,640
|
|
|
52,728
|
|
|
21
|
|
|
27
|
|
|
17
|
|
|
21
|
|
||||||
Total direct/indirect loan portfolio
|
$
|
90,609
|
|
|
$
|
88,795
|
|
|
$
|
31
|
|
|
$
|
39
|
|
|
$
|
34
|
|
|
$
|
34
|
|
Table 40
|
|||||||
Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity
(1)
|
|||||||
|
Three Months Ended
March 31 |
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Nonperforming loans and leases, January 1
|
$
|
8,165
|
|
|
$
|
10,819
|
|
Additions to nonperforming loans and leases:
|
|
|
|
||||
New nonperforming loans and leases
|
951
|
|
|
1,469
|
|
||
Reductions to nonperforming loans and leases:
|
|
|
|
||||
Paydowns and payoffs
|
(133
|
)
|
|
(253
|
)
|
||
Sales
|
(823
|
)
|
|
(371
|
)
|
||
Returns to performing status
(2)
|
(441
|
)
|
|
(867
|
)
|
||
Charge-offs
|
(395
|
)
|
|
(460
|
)
|
||
Transfers to foreclosed properties
(3)
|
(77
|
)
|
|
(128
|
)
|
||
Total net reductions to nonperforming loans and leases
|
(918
|
)
|
|
(610
|
)
|
||
Total nonperforming loans and leases, March 31
(4)
|
7,247
|
|
|
10,209
|
|
||
Foreclosed properties, January 1
|
444
|
|
|
630
|
|
||
Additions to foreclosed properties:
|
|
|
|
||||
New foreclosed properties
(3)
|
110
|
|
|
196
|
|
||
Reductions to foreclosed properties:
|
|
|
|
||||
Sales
|
(119
|
)
|
|
(168
|
)
|
||
Write-downs
|
(14
|
)
|
|
(26
|
)
|
||
Total net additions (reductions) to foreclosed properties
|
(23
|
)
|
|
2
|
|
||
Total foreclosed properties, March 31
(5)
|
421
|
|
|
632
|
|
||
Nonperforming consumer loans, leases and foreclosed properties, March 31
|
$
|
7,668
|
|
|
$
|
10,841
|
|
Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases
(6)
|
1.62
|
%
|
|
2.16
|
%
|
||
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties
(6)
|
1.71
|
|
|
2.29
|
|
(1)
|
Balances do not include nonperforming LHFS of
$5 million
and
$10 million
and nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of
$36 million
and
$86 million
at
March 31, 2016 and 2015
as well as loans accruing past due 90 days or more as presented in
Table 28
and
Note 4 – Outstanding Loans and Leases
to the Consolidated Financial Statements
.
|
(2)
|
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.
|
(3)
|
New foreclosed properties represents transfers of nonperforming loans to foreclosed properties net of charge-offs taken during the first 90 days after transfer of a loan to foreclosed properties. New foreclosed properties also includes properties obtained upon foreclosure of delinquent PCI loans, properties repurchased due to representations and warranties exposure and properties acquired with newly consolidated subsidiaries.
|
(4)
|
At
March 31, 2016
,
42 percent
of nonperforming loans were 180 days or more past due.
|
(5)
|
Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally FHA-insured loans, of
$1.4 billion
and
$1.2 billion
at
March 31, 2016 and 2015
.
|
(6)
|
Outstanding consumer loans and leases exclude loans accounted for under the fair value option.
|
Table 41
|
|||||||||||||||||||||||
Consumer Real Estate Troubled Debt Restructurings
|
|||||||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(Dollars in millions)
|
Total
|
|
Nonperforming
|
|
Performing
|
|
Total
|
|
Nonperforming
|
|
Performing
|
||||||||||||
Residential mortgage
(1, 2)
|
$
|
16,256
|
|
|
$
|
2,618
|
|
|
$
|
13,638
|
|
|
$
|
18,372
|
|
|
$
|
3,284
|
|
|
$
|
15,088
|
|
Home equity
(3)
|
2,719
|
|
|
1,675
|
|
|
1,044
|
|
|
2,686
|
|
|
1,649
|
|
|
1,037
|
|
||||||
Total consumer real estate troubled debt restructurings
|
$
|
18,975
|
|
|
$
|
4,293
|
|
|
$
|
14,682
|
|
|
$
|
21,058
|
|
|
$
|
4,933
|
|
|
$
|
16,125
|
|
(1)
|
Residential mortgage TDRs deemed collateral dependent totaled
$4.2 billion
and
$4.9 billion
, and included
$2.1 billion
and
$2.7 billion
of loans classified as nonperforming and
$2.1 billion
and
$2.2 billion
of loans classified as performing at
March 31, 2016
and
December 31, 2015
.
|
(2)
|
Residential mortgage performing TDRs included
$7.5 billion
and
$8.7 billion
of loans that were fully-insured at
March 31, 2016
and
December 31, 2015
.
|
(3)
|
Home equity TDRs deemed collateral dependent totaled
$1.6 billion
, and included
$1.3 billion
of loans classified as nonperforming and
$290 million
of loans classified as performing at both
March 31, 2016
and
December 31, 2015
.
|
Commercial Portfolio Credit Risk Management
|
Commercial Credit Portfolio
|
Table 42
|
|||||||||||||||||||||||
Commercial Loans and Leases
|
|||||||||||||||||||||||
|
Outstandings
|
|
Nonperforming
|
|
Accruing Past Due 90
Days or More |
||||||||||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||||||
U.S. commercial
|
$
|
260,702
|
|
|
$
|
252,771
|
|
|
$
|
1,236
|
|
|
$
|
867
|
|
|
$
|
85
|
|
|
$
|
113
|
|
Commercial real estate
(1)
|
58,060
|
|
|
57,199
|
|
|
91
|
|
|
93
|
|
|
—
|
|
|
3
|
|
||||||
Commercial lease financing
|
20,957
|
|
|
21,352
|
|
|
29
|
|
|
12
|
|
|
13
|
|
|
15
|
|
||||||
Non-U.S. commercial
|
92,872
|
|
|
91,549
|
|
|
165
|
|
|
158
|
|
|
2
|
|
|
1
|
|
||||||
|
432,591
|
|
|
422,871
|
|
|
1,521
|
|
|
1,130
|
|
|
100
|
|
|
132
|
|
||||||
U.S. small business commercial
(2)
|
12,934
|
|
|
12,876
|
|
|
82
|
|
|
82
|
|
|
60
|
|
|
61
|
|
||||||
Commercial loans excluding loans accounted for under the fair value option
|
445,525
|
|
|
435,747
|
|
|
1,603
|
|
|
1,212
|
|
|
160
|
|
|
193
|
|
||||||
Loans accounted for under the fair value option
(3)
|
6,266
|
|
|
5,067
|
|
|
40
|
|
|
13
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial loans and leases
|
$
|
451,791
|
|
|
$
|
440,814
|
|
|
$
|
1,643
|
|
|
$
|
1,225
|
|
|
$
|
160
|
|
|
$
|
193
|
|
(1)
|
Includes U.S. commercial real estate loans of
$54.5 billion
and
$53.6 billion
and non-U.S. commercial real estate loans of
$3.5 billion
at both
March 31, 2016
and
December 31, 2015
.
|
(2)
|
Includes card-related products.
|
(3)
|
Commercial loans accounted for under the fair value option include U.S. commercial loans of
$2.6 billion
and
$2.3 billion
and non-U.S. commercial loans of
$3.7 billion
and
$2.8 billion
at
March 31, 2016
and
December 31, 2015
. For more information on the fair value option, see
Note 15 – Fair Value Option
to the Consolidated Financial Statements
.
|
Table 43
|
|
|
|
|
|||||||||
Commercial Net Charge-offs and Related Ratios
|
|
|
|
|
|||||||||
|
Three Months Ended March 31
|
||||||||||||
|
Net Charge-offs
|
|
Net Charge-off Ratios
(1)
|
||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
U.S. commercial
|
$
|
65
|
|
|
$
|
7
|
|
|
0.10
|
%
|
|
0.01
|
%
|
Commercial real estate
|
(6
|
)
|
|
5
|
|
|
(0.04
|
)
|
|
0.04
|
|
||
Commercial lease financing
|
(2
|
)
|
|
5
|
|
|
(0.05
|
)
|
|
0.11
|
|
||
Non-U.S. commercial
|
42
|
|
|
(2
|
)
|
|
0.19
|
|
|
(0.01
|
)
|
||
|
99
|
|
|
15
|
|
|
0.09
|
|
|
0.02
|
|
||
U.S. small business commercial
|
52
|
|
|
62
|
|
|
1.64
|
|
|
1.90
|
|
||
Total commercial
|
$
|
151
|
|
|
$
|
77
|
|
|
0.14
|
|
|
0.08
|
|
(1)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
|
Table 44
|
|||||||||||||||||||||||
Commercial Credit Exposure by Type
|
|||||||||||||||||||||||
|
Commercial Utilized
(1)
|
|
Commercial Unfunded
(2, 3, 4)
|
|
Total Commercial Committed
|
||||||||||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||||||
Loans and leases
(5)
|
$
|
457,295
|
|
|
$
|
446,832
|
|
|
$
|
362,052
|
|
|
$
|
376,478
|
|
|
$
|
819,347
|
|
|
$
|
823,310
|
|
Derivative assets
(6)
|
52,255
|
|
|
49,990
|
|
|
—
|
|
|
—
|
|
|
52,255
|
|
|
49,990
|
|
||||||
Standby letters of credit and financial guarantees
|
33,267
|
|
|
33,236
|
|
|
1,035
|
|
|
690
|
|
|
34,302
|
|
|
33,926
|
|
||||||
Debt securities and other investments
|
22,027
|
|
|
21,709
|
|
|
4,953
|
|
|
4,173
|
|
|
26,980
|
|
|
25,882
|
|
||||||
Loans held-for-sale
|
4,822
|
|
|
5,456
|
|
|
365
|
|
|
1,203
|
|
|
5,187
|
|
|
6,659
|
|
||||||
Commercial letters of credit
|
1,486
|
|
|
1,725
|
|
|
156
|
|
|
390
|
|
|
1,642
|
|
|
2,115
|
|
||||||
Bankers' acceptances
|
284
|
|
|
298
|
|
|
—
|
|
|
—
|
|
|
284
|
|
|
298
|
|
||||||
Other
|
311
|
|
|
317
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|
317
|
|
||||||
Total
|
$
|
571,747
|
|
|
$
|
559,563
|
|
|
$
|
368,561
|
|
|
$
|
382,934
|
|
|
$
|
940,308
|
|
|
$
|
942,497
|
|
(1)
|
Total commercial utilized exposure includes loans of
$6.3 billion
and
$5.1 billion
and issued letters of credit with a notional amount of
$303 million
and
$290 million
accounted for under the fair value option at
March 31, 2016
and
December 31, 2015
.
|
(2)
|
Total commercial unfunded exposure includes loan commitments accounted for under the fair value option with a notional amount of
$9.3 billion
and
$10.6 billion
at
March 31, 2016
and
December 31, 2015
.
|
(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 (e.g., syndicated or participated) to other financial institutions of
$13.0 billion
and
$14.3 billion
at
March 31, 2016
and
December 31, 2015
.
|
(5)
|
Includes credit risk exposure associated with operating leases of $5.5 billion and $6.0 billion at
March 31, 2016
and
December 31, 2015
.
|
(6)
|
Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of
$44.0 billion
and
$41.9 billion
at
March 31, 2016
and
December 31, 2015
. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of
$22.0 billion
and $23.3 billion which consists primarily of other marketable securities.
|
Table 45
|
|||||||||||||
Commercial Utilized Reservable Criticized Exposure
|
|||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||
(Dollars in millions)
|
Amount
(1)
|
|
Percent
(2)
|
|
Amount
(1)
|
|
Percent
(2)
|
||||||
U.S. commercial
|
$
|
12,507
|
|
|
4.35
|
%
|
|
$
|
9,965
|
|
|
3.56
|
%
|
Commercial real estate
|
478
|
|
|
0.80
|
|
|
513
|
|
|
0.87
|
|
||
Commercial lease financing
|
803
|
|
|
3.83
|
|
|
708
|
|
|
3.31
|
|
||
Non-U.S. commercial
|
4,021
|
|
|
4.06
|
|
|
3,944
|
|
|
4.04
|
|
||
|
17,809
|
|
|
3.81
|
|
|
15,130
|
|
|
3.30
|
|
||
U.S. small business commercial
|
768
|
|
|
5.93
|
|
|
766
|
|
|
5.95
|
|
||
Total commercial utilized reservable criticized exposure
|
$
|
18,577
|
|
|
3.87
|
|
|
$
|
15,896
|
|
|
3.38
|
|
(1)
|
Total commercial utilized reservable criticized exposure includes loans and leases of
$17.1 billion
and
$14.5 billion
and commercial letters of credit of
$1.5 billion
and
$1.4 billion
at
March 31, 2016
and
December 31, 2015
.
|
(2)
|
Percentages are calculated as commercial utilized reservable criticized exposure divided by total commercial utilized reservable exposure for each exposure category.
|
Table 46
|
|||||||
Outstanding Commercial Real Estate Loans
|
|||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
By Geographic Region
|
|
|
|
||||
California
|
$
|
13,173
|
|
|
$
|
12,063
|
|
Northeast
|
10,323
|
|
|
10,292
|
|
||
Southwest
|
7,328
|
|
|
7,789
|
|
||
Southeast
|
5,751
|
|
|
6,066
|
|
||
Midwest
|
4,215
|
|
|
3,780
|
|
||
Florida
|
3,194
|
|
|
3,330
|
|
||
Illinois
|
3,113
|
|
|
2,536
|
|
||
Midsouth
|
2,500
|
|
|
2,435
|
|
||
Northwest
|
2,209
|
|
|
2,327
|
|
||
Non-U.S.
|
3,522
|
|
|
3,549
|
|
||
Other
(1)
|
2,732
|
|
|
3,032
|
|
||
Total outstanding commercial real estate loans
|
$
|
58,060
|
|
|
$
|
57,199
|
|
By Property Type
|
|
|
|
||||
Non-residential
|
|
|
|
||||
Office
|
$
|
15,618
|
|
|
$
|
15,246
|
|
Shopping centers/retail
|
9,401
|
|
|
8,594
|
|
||
Multi-family rental
|
9,287
|
|
|
8,956
|
|
||
Hotels/motels
|
5,451
|
|
|
5,415
|
|
||
Industrial/warehouse
|
5,320
|
|
|
5,501
|
|
||
Multi-use
|
3,006
|
|
|
3,003
|
|
||
Unsecured
|
1,701
|
|
|
2,056
|
|
||
Land and land development
|
441
|
|
|
539
|
|
||
Other
|
5,788
|
|
|
5,791
|
|
||
Total non-residential
|
56,013
|
|
|
55,101
|
|
||
Residential
|
2,047
|
|
|
2,098
|
|
||
Total outstanding commercial real estate loans
|
$
|
58,060
|
|
|
$
|
57,199
|
|
(1)
|
Includes unsecured loans to real estate investment trusts and national home builders whose portfolios of properties span multiple geographic regions and properties in the states of Colorado, Utah, Hawaii, Wyoming and Montana.
|
Table 47
|
|||||||||||||||
Commercial Real Estate Credit Quality Data
|
|||||||||||||||
|
Nonperforming Loans and
Foreclosed Properties
(1)
|
|
Utilized Reservable
Criticized Exposure
(2)
|
||||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||
Non-residential
|
|
|
|
|
|
|
|
||||||||
Office
|
$
|
20
|
|
|
$
|
14
|
|
|
$
|
149
|
|
|
$
|
110
|
|
Shopping centers/retail
|
9
|
|
|
12
|
|
|
120
|
|
|
183
|
|
||||
Multi-family rental
|
19
|
|
|
18
|
|
|
61
|
|
|
69
|
|
||||
Hotels/motels
|
17
|
|
|
18
|
|
|
45
|
|
|
16
|
|
||||
Industrial/warehouse
|
5
|
|
|
6
|
|
|
10
|
|
|
16
|
|
||||
Multi-use
|
13
|
|
|
15
|
|
|
39
|
|
|
42
|
|
||||
Unsecured
|
1
|
|
|
1
|
|
|
4
|
|
|
4
|
|
||||
Land and land development
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Other
|
2
|
|
|
8
|
|
|
36
|
|
|
59
|
|
||||
Total non-residential
|
88
|
|
|
94
|
|
|
467
|
|
|
502
|
|
||||
Residential
|
13
|
|
|
14
|
|
|
11
|
|
|
11
|
|
||||
Total commercial real estate
|
$
|
101
|
|
|
$
|
108
|
|
|
$
|
478
|
|
|
$
|
513
|
|
(1)
|
Includes commercial foreclosed properties of
$10 million
and
$15 million
at
March 31, 2016
and
December 31, 2015
.
|
(2)
|
Includes loans, SBLCs and bankers' acceptances and excludes loans accounted for under the fair value option.
|
Table 48
|
|||||||||||||
Commercial Real Estate Net Charge-offs and Related Ratios
|
|||||||||||||
|
Three Months Ended March 31
|
||||||||||||
|
Net Charge-offs
|
|
Net Charge-off Ratios
(1)
|
||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Non-residential
|
|
|
|
|
|
|
|
||||||
Office
|
$
|
—
|
|
|
$
|
4
|
|
|
—
|
%
|
|
0.12
|
%
|
Shopping centers/retail
|
1
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
||
Hotels/motels
|
1
|
|
|
5
|
|
|
0.10
|
|
|
0.58
|
|
||
Industrial/warehouse
|
2
|
|
|
(2
|
)
|
|
0.13
|
|
|
(0.17
|
)
|
||
Multi-use
|
(9
|
)
|
|
(1
|
)
|
|
(1.16
|
)
|
|
(0.24
|
)
|
||
Unsecured
|
(1
|
)
|
|
(2
|
)
|
|
(0.20
|
)
|
|
(0.45
|
)
|
||
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
0.08
|
|
||
Total non-residential
|
(6
|
)
|
|
5
|
|
|
(0.04
|
)
|
|
0.04
|
|
||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total commercial real estate
|
$
|
(6
|
)
|
|
$
|
5
|
|
|
(0.04
|
)
|
|
0.04
|
|
(1)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
|
Table 49
|
|
|
|
||||
Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
(1, 2)
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Nonperforming loans and leases, January 1
|
$
|
1,212
|
|
|
$
|
1,113
|
|
Additions to nonperforming loans and leases:
|
|
|
|
||||
New nonperforming loans and leases
|
697
|
|
|
287
|
|
||
Advances
|
9
|
|
|
2
|
|
||
Reductions to nonperforming loans and leases:
|
|
|
|
||||
Paydowns
|
(120
|
)
|
|
(110
|
)
|
||
Sales
|
(6
|
)
|
|
(16
|
)
|
||
Returns to performing status
(3)
|
(47
|
)
|
|
(24
|
)
|
||
Charge-offs
|
(142
|
)
|
|
(51
|
)
|
||
Transfers to foreclosed properties
(4)
|
—
|
|
|
(205
|
)
|
||
Total net additions (reductions) to nonperforming loans and leases
|
391
|
|
|
(117
|
)
|
||
Total nonperforming loans and leases, March 31
|
1,603
|
|
|
996
|
|
||
Foreclosed properties, January 1
|
15
|
|
|
67
|
|
||
Additions to foreclosed properties:
|
|
|
|
||||
New foreclosed properties
(4)
|
—
|
|
|
200
|
|
||
Reductions to foreclosed properties:
|
|
|
|
||||
Sales
|
(5
|
)
|
|
(2
|
)
|
||
Write-downs
|
—
|
|
|
(1
|
)
|
||
Total net additions (reductions) to foreclosed properties
|
(5
|
)
|
|
197
|
|
||
Total foreclosed properties, March 31
|
10
|
|
|
264
|
|
||
Nonperforming commercial loans, leases and foreclosed properties, March 31
|
$
|
1,613
|
|
|
$
|
1,260
|
|
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases
(5)
|
0.36
|
%
|
|
0.25
|
%
|
||
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties
(5)
|
0.36
|
|
|
0.32
|
|
(1)
|
Balances do not include nonperforming LHFS of $260 million and $334 million at
March 31, 2016
and
2015
.
|
(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)
|
New foreclosed properties represents transfers of nonperforming loans to foreclosed properties net of charge-offs recorded during the first 90 days after transfer of a loan to foreclosed properties.
|
(5)
|
Outstanding commercial loans exclude loans accounted for under the fair value option.
|
Table 50
|
|||||||||||||||||||||||
Commercial Troubled Debt Restructurings
|
|||||||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(Dollars in millions)
|
Total
|
|
Non-performing
|
|
Performing
|
|
Total
|
|
Non-performing
|
|
Performing
|
||||||||||||
U.S. commercial
|
$
|
1,568
|
|
|
$
|
532
|
|
|
$
|
1,036
|
|
|
$
|
1,225
|
|
|
$
|
394
|
|
|
$
|
831
|
|
Commercial real estate
|
113
|
|
|
30
|
|
|
83
|
|
|
118
|
|
|
27
|
|
|
91
|
|
||||||
Non-U.S. commercial
|
261
|
|
|
67
|
|
|
194
|
|
|
363
|
|
|
136
|
|
|
227
|
|
||||||
U.S. small business commercial
|
27
|
|
|
11
|
|
|
16
|
|
|
29
|
|
|
10
|
|
|
19
|
|
||||||
Total commercial troubled debt restructurings
|
$
|
1,969
|
|
|
$
|
640
|
|
|
$
|
1,329
|
|
|
$
|
1,735
|
|
|
$
|
567
|
|
|
$
|
1,168
|
|
Industry Concentrations
|
Table 51
|
|||||||||||||||
Commercial Credit Exposure by Industry
(1)
|
|||||||||||||||
|
Commercial
Utilized
|
|
Total Commercial
Committed (2) |
||||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||
Diversified financials
|
$
|
77,650
|
|
|
$
|
79,496
|
|
|
$
|
124,704
|
|
|
$
|
128,436
|
|
Real estate
(3)
|
62,867
|
|
|
61,759
|
|
|
87,438
|
|
|
87,650
|
|
||||
Retailing
|
39,392
|
|
|
37,675
|
|
|
63,687
|
|
|
63,975
|
|
||||
Capital goods
|
33,571
|
|
|
30,790
|
|
|
63,036
|
|
|
58,583
|
|
||||
Healthcare equipment and services
|
37,555
|
|
|
35,134
|
|
|
62,650
|
|
|
57,901
|
|
||||
Government and public education
|
46,030
|
|
|
44,835
|
|
|
54,303
|
|
|
53,133
|
|
||||
Banking
|
44,939
|
|
|
45,952
|
|
|
51,163
|
|
|
53,825
|
|
||||
Materials
|
23,511
|
|
|
24,012
|
|
|
45,321
|
|
|
46,013
|
|
||||
Energy
|
21,849
|
|
|
21,257
|
|
|
43,494
|
|
|
43,811
|
|
||||
Food, beverage and tobacco
|
19,561
|
|
|
18,316
|
|
|
39,535
|
|
|
43,164
|
|
||||
Consumer services
|
25,381
|
|
|
24,084
|
|
|
39,232
|
|
|
37,058
|
|
||||
Commercial services and supplies
|
21,643
|
|
|
19,552
|
|
|
33,761
|
|
|
32,045
|
|
||||
Utilities
|
12,372
|
|
|
11,396
|
|
|
28,864
|
|
|
27,849
|
|
||||
Transportation
|
19,753
|
|
|
19,369
|
|
|
27,355
|
|
|
27,371
|
|
||||
Media
|
12,852
|
|
|
12,833
|
|
|
25,759
|
|
|
24,194
|
|
||||
Technology hardware and equipment
|
6,362
|
|
|
6,337
|
|
|
23,777
|
|
|
24,734
|
|
||||
Individuals and trusts
|
16,152
|
|
|
17,992
|
|
|
21,134
|
|
|
23,176
|
|
||||
Pharmaceuticals and biotechnology
|
6,067
|
|
|
6,302
|
|
|
17,607
|
|
|
16,472
|
|
||||
Software and services
|
8,256
|
|
|
6,617
|
|
|
16,882
|
|
|
18,362
|
|
||||
Automobiles and components
|
4,952
|
|
|
4,804
|
|
|
11,317
|
|
|
11,329
|
|
||||
Telecommunication services
|
5,038
|
|
|
4,717
|
|
|
11,290
|
|
|
10,645
|
|
||||
Consumer durables and apparel
|
6,289
|
|
|
6,053
|
|
|
11,033
|
|
|
11,165
|
|
||||
Insurance, including monolines
|
4,941
|
|
|
5,095
|
|
|
10,592
|
|
|
10,728
|
|
||||
Food and staples retailing
|
4,504
|
|
|
4,351
|
|
|
9,330
|
|
|
9,439
|
|
||||
Religious and social organizations
|
4,440
|
|
|
4,526
|
|
|
6,073
|
|
|
5,929
|
|
||||
Other
|
5,820
|
|
|
6,309
|
|
|
10,971
|
|
|
15,510
|
|
||||
Total commercial credit exposure by industry
|
$
|
571,747
|
|
|
$
|
559,563
|
|
|
$
|
940,308
|
|
|
$
|
942,497
|
|
Net credit default protection purchased on total commitments
(4)
|
|
|
|
|
$
|
(7,078
|
)
|
|
$
|
(6,677
|
)
|
(1)
|
Includes U.S. small business commercial exposure.
|
(2)
|
Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (e.g., syndicated or participated) to other financial institutions of
$13.0 billion
and
$14.3 billion
at
March 31, 2016
and
December 31, 2015
.
|
(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 borrowers' or counterparties' primary business activity using operating cash flows and primary source of repayment as key factors.
|
(4)
|
Represents net notional credit protection purchased. For additional information, see
Commercial Portfolio Credit Risk Management – Risk Mitigation
on page
85
.
|
Risk Mitigation
|
Table 52
|
|||||
Net Credit Default Protection by Maturity
|
|||||
|
March 31
2016 |
|
December 31
2015 |
||
Less than or equal to one year
|
40
|
%
|
|
39
|
%
|
Greater than one year and less than or equal to five years
|
58
|
|
|
59
|
|
Greater than five years
|
2
|
|
|
2
|
|
Total net credit default protection
|
100
|
%
|
|
100
|
%
|
Table 53
|
|||||||||||||
Net Credit Default Protection by Credit Exposure Debt Rating
|
|||||||||||||
(Dollars in millions)
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||
Ratings
(1, 2)
|
Net
Notional
(3)
|
|
Percent of
Total
|
|
Net
Notional
(3)
|
|
Percent of
Total
|
||||||
A
|
$
|
(810
|
)
|
|
11.4
|
%
|
|
$
|
(752
|
)
|
|
11.3
|
%
|
BBB
|
(3,272
|
)
|
|
46.2
|
|
|
(3,030
|
)
|
|
45.4
|
|
||
BB
|
(1,863
|
)
|
|
26.3
|
|
|
(2,090
|
)
|
|
31.3
|
|
||
B
|
(1,052
|
)
|
|
14.9
|
|
|
(634
|
)
|
|
9.5
|
|
||
CCC and below
|
(45
|
)
|
|
0.6
|
|
|
(139
|
)
|
|
2.1
|
|
||
NR
(4)
|
(36
|
)
|
|
0.6
|
|
|
(32
|
)
|
|
0.4
|
|
||
Total net credit default protection
|
$
|
(7,078
|
)
|
|
100.0
|
%
|
|
$
|
(6,677
|
)
|
|
100.0
|
%
|
(1)
|
Ratings are refreshed on a quarterly basis.
|
(2)
|
Ratings of BBB- or higher are considered to meet the definition of investment grade.
|
(3)
|
Represents net credit default protection (purchased) sold.
|
(4)
|
NR is comprised of index positions held and any names that have not been rated.
|
Table 54
|
|||||||||||||||
Credit Derivatives
|
|||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
(Dollars in millions)
|
Contract/
Notional
|
|
Credit Risk
|
|
Contract/
Notional
|
|
Credit Risk
|
||||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
944,118
|
|
|
$
|
4,379
|
|
|
$
|
928,300
|
|
|
$
|
3,677
|
|
Total return swaps/other
|
35,014
|
|
|
911
|
|
|
26,427
|
|
|
1,596
|
|
||||
Total purchased credit derivatives
|
$
|
979,132
|
|
|
$
|
5,290
|
|
|
$
|
954,727
|
|
|
$
|
5,273
|
|
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|||||||
Credit default swaps
|
$
|
931,652
|
|
|
n/a
|
|
|
$
|
924,143
|
|
|
n/a
|
|
||
Total return swaps/other
|
54,129
|
|
|
n/a
|
|
|
39,658
|
|
|
n/a
|
|
||||
Total written credit derivatives
|
$
|
985,781
|
|
|
n/a
|
|
|
$
|
963,801
|
|
|
n/a
|
|
Counterparty Credit Risk Valuation Adjustments
|
Table 55
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit Valuation Gains and Losses
|
|||||||||||||||||||||||
Gains (Losses)
|
Three Months Ended March 31
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
(Dollars in millions)
|
Gross
|
|
Hedge
|
|
Net
|
|
Gross
|
|
|
Hedge
|
|
|
Net
|
||||||||||
Credit valuation
|
$
|
(209
|
)
|
|
$
|
261
|
|
|
$
|
52
|
|
|
$
|
8
|
|
|
$
|
116
|
|
|
$
|
124
|
|
Non-U.S. Portfolio
|
Table 56
|
|||||||||||||||||||||||||||||||
Top 20 Non-U.S. Countries Exposure
|
|||||||||||||||||||||||||||||||
(Dollars in millions)
|
Funded Loans and Loan Equivalents
|
|
Unfunded Loan Commitments
|
|
Net Counterparty Exposure
|
|
Securities/
Other
Investments
|
|
Country Exposure at March 31
2016 |
|
Hedges and Credit Default Protection
|
|
Net Country Exposure at March 31
2016 |
|
Increase (Decrease) from December 31
2015 |
||||||||||||||||
United Kingdom
|
$
|
30,687
|
|
|
$
|
14,715
|
|
|
$
|
7,171
|
|
|
$
|
4,020
|
|
|
$
|
56,593
|
|
|
$
|
(5,126
|
)
|
|
$
|
51,467
|
|
|
$
|
(1,779
|
)
|
Canada
|
5,917
|
|
|
6,720
|
|
|
2,159
|
|
|
3,054
|
|
|
17,850
|
|
|
(1,126
|
)
|
|
16,724
|
|
|
1,992
|
|
||||||||
Brazil
|
9,669
|
|
|
404
|
|
|
1,003
|
|
|
4,349
|
|
|
15,425
|
|
|
(213
|
)
|
|
15,212
|
|
|
(438
|
)
|
||||||||
Japan
|
14,259
|
|
|
570
|
|
|
1,842
|
|
|
1,175
|
|
|
17,846
|
|
|
(3,207
|
)
|
|
14,639
|
|
|
275
|
|
||||||||
Germany
|
9,252
|
|
|
5,344
|
|
|
2,597
|
|
|
2,760
|
|
|
19,953
|
|
|
(5,769
|
)
|
|
14,184
|
|
|
780
|
|
||||||||
France
|
3,171
|
|
|
4,536
|
|
|
2,106
|
|
|
5,807
|
|
|
15,620
|
|
|
(4,869
|
)
|
|
10,751
|
|
|
2,065
|
|
||||||||
India
|
6,688
|
|
|
245
|
|
|
471
|
|
|
3,588
|
|
|
10,992
|
|
|
(253
|
)
|
|
10,739
|
|
|
385
|
|
||||||||
Australia
|
5,216
|
|
|
2,184
|
|
|
1,020
|
|
|
2,096
|
|
|
10,516
|
|
|
(309
|
)
|
|
10,207
|
|
|
662
|
|
||||||||
China
|
7,906
|
|
|
616
|
|
|
1,049
|
|
|
1,093
|
|
|
10,664
|
|
|
(627
|
)
|
|
10,037
|
|
|
(437
|
)
|
||||||||
Hong Kong
|
5,828
|
|
|
255
|
|
|
871
|
|
|
577
|
|
|
7,531
|
|
|
(21
|
)
|
|
7,510
|
|
|
(79
|
)
|
||||||||
South Korea
|
4,281
|
|
|
757
|
|
|
939
|
|
|
1,837
|
|
|
7,814
|
|
|
(628
|
)
|
|
7,186
|
|
|
328
|
|
||||||||
Netherlands
|
3,403
|
|
|
2,797
|
|
|
789
|
|
|
1,423
|
|
|
8,412
|
|
|
(1,697
|
)
|
|
6,715
|
|
|
(919
|
)
|
||||||||
Switzerland
|
3,293
|
|
|
2,969
|
|
|
412
|
|
|
705
|
|
|
7,379
|
|
|
(1,425
|
)
|
|
5,954
|
|
|
(309
|
)
|
||||||||
Mexico
|
3,283
|
|
|
1,102
|
|
|
246
|
|
|
1,061
|
|
|
5,692
|
|
|
(258
|
)
|
|
5,434
|
|
|
380
|
|
||||||||
Italy
|
3,470
|
|
|
967
|
|
|
875
|
|
|
976
|
|
|
6,288
|
|
|
(1,231
|
)
|
|
5,057
|
|
|
(251
|
)
|
||||||||
Singapore
|
1,955
|
|
|
216
|
|
|
632
|
|
|
1,726
|
|
|
4,529
|
|
|
(36
|
)
|
|
4,493
|
|
|
(236
|
)
|
||||||||
Turkey
|
3,297
|
|
|
117
|
|
|
83
|
|
|
31
|
|
|
3,528
|
|
|
(260
|
)
|
|
3,268
|
|
|
128
|
|
||||||||
United Arab Emirates
|
2,001
|
|
|
204
|
|
|
1,039
|
|
|
43
|
|
|
3,287
|
|
|
(64
|
)
|
|
3,223
|
|
|
197
|
|
||||||||
Israel
|
172
|
|
|
2,499
|
|
|
91
|
|
|
237
|
|
|
2,999
|
|
|
—
|
|
|
2,999
|
|
|
249
|
|
||||||||
Spain
|
1,589
|
|
|
532
|
|
|
275
|
|
|
1,091
|
|
|
3,487
|
|
|
(766
|
)
|
|
2,721
|
|
|
(342
|
)
|
||||||||
Total top 20 non-U.S. countries exposure
|
$
|
125,337
|
|
|
$
|
47,749
|
|
|
$
|
25,670
|
|
|
$
|
37,649
|
|
|
$
|
236,405
|
|
|
$
|
(27,885
|
)
|
|
$
|
208,520
|
|
|
$
|
2,651
|
|
Provision for Credit Losses
|
Allowance for Credit Losses
|
|
Allowance for Loan and Lease Losses
|
Table 57
|
|
|
|
||||
Allowance for Credit Losses
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Allowance for loan and lease losses, January 1
|
$
|
12,234
|
|
|
$
|
14,419
|
|
Loans and leases charged off
|
|
|
|
||||
Residential mortgage
|
(185
|
)
|
|
(300
|
)
|
||
Home equity
|
(193
|
)
|
|
(252
|
)
|
||
U.S. credit card
|
(693
|
)
|
|
(729
|
)
|
||
Non-U.S. credit card
|
(61
|
)
|
|
(70
|
)
|
||
Direct/Indirect consumer
|
(101
|
)
|
|
(106
|
)
|
||
Other consumer
|
(57
|
)
|
|
(59
|
)
|
||
Total consumer charge-offs
|
(1,290
|
)
|
|
(1,516
|
)
|
||
U.S. commercial
(1)
|
(158
|
)
|
|
(109
|
)
|
||
Commercial real estate
|
(5
|
)
|
|
(13
|
)
|
||
Commercial lease financing
|
—
|
|
|
(7
|
)
|
||
Non-U.S. commercial
|
(43
|
)
|
|
—
|
|
||
Total commercial charge-offs
|
(206
|
)
|
|
(129
|
)
|
||
Total loans and leases charged off
|
(1,496
|
)
|
|
(1,645
|
)
|
||
Recoveries of loans and leases previously charged off
|
|
|
|
||||
Residential mortgage
|
94
|
|
|
103
|
|
||
Home equity
|
81
|
|
|
80
|
|
||
U.S. credit card
|
106
|
|
|
108
|
|
||
Non-U.S. credit card
|
16
|
|
|
26
|
|
||
Direct/Indirect consumer
|
67
|
|
|
72
|
|
||
Other consumer
|
9
|
|
|
10
|
|
||
Total consumer recoveries
|
373
|
|
|
399
|
|
||
U.S. commercial
(2)
|
41
|
|
|
40
|
|
||
Commercial real estate
|
11
|
|
|
8
|
|
||
Commercial lease financing
|
2
|
|
|
2
|
|
||
Non-U.S. commercial
|
1
|
|
|
2
|
|
||
Total commercial recoveries
|
55
|
|
|
52
|
|
||
Total recoveries of loans and leases previously charged off
|
428
|
|
|
451
|
|
||
Net charge-offs
|
(1,068
|
)
|
|
(1,194
|
)
|
||
Write-offs of PCI loans
|
(105
|
)
|
|
(288
|
)
|
||
Provision for loan and lease losses
|
1,016
|
|
|
756
|
|
||
Other
(3)
|
(8
|
)
|
|
(17
|
)
|
||
Allowance for loan and lease losses, March 31
|
12,069
|
|
|
13,676
|
|
||
Reserve for unfunded lending commitments, January 1
|
646
|
|
|
528
|
|
||
Provision for unfunded lending commitments
|
(19
|
)
|
|
9
|
|
||
Reserve for unfunded lending commitments, March 31
|
627
|
|
|
537
|
|
||
Allowance for credit losses, March 31
|
$
|
12,696
|
|
|
$
|
14,213
|
|
(1)
|
Includes U.S. small business commercial charge-offs of
$62 million
and
$78 million
for the
three months ended March 31, 2016 and 2015
.
|
(2)
|
Includes U.S. small business commercial recoveries of
$10 million
and
$16 million
for the
three months ended March 31, 2016 and 2015
.
|
(3)
|
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments.
|
Table 57
|
|
|
|
||||
Allowance for Credit Losses (continued)
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Loan and allowance ratios:
|
|
|
|
||||
Loans and leases outstanding at March 31
(4)
|
$
|
892,901
|
|
|
$
|
864,284
|
|
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at March 31
(4)
|
1.35
|
%
|
|
1.58
|
%
|
||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at March 31
(5)
|
1.51
|
|
|
1.94
|
|
||
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at March 31
(6)
|
1.19
|
|
|
1.15
|
|
||
Average loans and leases outstanding
(4)
|
$
|
885,655
|
|
|
$
|
858,312
|
|
Annualized net charge-offs as a percentage of average loans and leases outstanding
(4, 7)
|
0.48
|
%
|
|
0.56
|
%
|
||
Annualized net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding
(4)
|
0.53
|
|
|
0.70
|
|
||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at March 31
(4, 8)
|
136
|
|
|
122
|
|
||
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs
(7)
|
2.81
|
|
|
2.82
|
|
||
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs and PCI write-offs
|
2.56
|
|
|
2.28
|
|
||
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31
(9)
|
$
|
4,138
|
|
|
$
|
5,492
|
|
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31
(4, 9)
|
90
|
%
|
|
73
|
%
|
||
Loan and allowance ratios excluding PCI loans and the related valuation allowance:
(10)
|
|
|
|
||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at March 31
(4)
|
1.31
|
%
|
|
1.46
|
%
|
||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at March 31
(5)
|
1.42
|
|
|
1.74
|
|
||
Annualized net charge-offs as a percentage of average loans and leases outstanding
(4)
|
0.49
|
|
|
0.58
|
|
||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at March 31
(4, 8)
|
129
|
|
|
110
|
|
||
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs
|
2.67
|
|
|
2.55
|
|
(4)
|
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of
$8.2 billion
and
$8.5 billion
at
March 31, 2016 and 2015
. Average loans accounted for under the fair value option were
$7.3 billion
and
$8.9 billion
for the
three months ended March 31, 2016 and 2015
.
|
(5)
|
Excludes consumer loans accounted for under the fair value option of
$1.9 billion
and
$2.1 billion
at
March 31, 2016 and 2015
.
|
(6)
|
Excludes commercial loans accounted for under the fair value option of
$6.3 billion
and
$6.4 billion
at
March 31, 2016 and 2015
.
|
(7)
|
Net charge-offs exclude
$105 million
and
$288 million
of write-offs in the PCI loan portfolio for the
three months ended March 31, 2016 and 2015
. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
70
.
|
(8)
|
For more information on our definition of nonperforming loans, see pages
73
and
82
.
|
(9)
|
Primarily includes amounts allocated to U.S. credit card and unsecured consumer lending portfolios in
Consumer Banking
, PCI loans and the non-U.S. credit card portfolio in
All Other
.
|
(10)
|
For more information on the PCI loan portfolio and the valuation allowance for PCI loans, see
Note 4 – Outstanding Loans and Leases
and
Note 5 – Allowance for Credit Losses
to the Consolidated Financial Statements
.
|
Table 58
|
|||||||||||||||||||
Allocation of the Allowance for Credit Losses by Product Type
|
|||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||
(Dollars in millions)
|
Amount
|
|
Percent of
Total |
|
Percent of
Loans and Leases Outstanding (1) |
|
Amount
|
|
Percent of
Total |
|
Percent of
Loans and Leases Outstanding (1) |
||||||||
Allowance for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage
|
$
|
1,312
|
|
|
10.87
|
%
|
|
0.71
|
%
|
|
$
|
1,500
|
|
|
12.26
|
%
|
|
0.80
|
%
|
Home equity
|
2,144
|
|
|
17.76
|
|
|
2.91
|
|
|
2,414
|
|
|
19.73
|
|
|
3.18
|
|
||
U.S. credit card
|
2,800
|
|
|
23.20
|
|
|
3.24
|
|
|
2,927
|
|
|
23.93
|
|
|
3.27
|
|
||
Non-U.S. credit card
|
253
|
|
|
2.10
|
|
|
2.54
|
|
|
274
|
|
|
2.24
|
|
|
2.75
|
|
||
Direct/Indirect consumer
|
200
|
|
|
1.66
|
|
|
0.22
|
|
|
223
|
|
|
1.82
|
|
|
0.25
|
|
||
Other consumer
|
49
|
|
|
0.40
|
|
|
2.24
|
|
|
47
|
|
|
0.38
|
|
|
2.27
|
|
||
Total consumer
|
6,758
|
|
|
55.99
|
|
|
1.51
|
|
|
7,385
|
|
|
60.36
|
|
|
1.63
|
|
||
U.S. commercial
(2)
|
3,423
|
|
|
28.36
|
|
|
1.25
|
|
|
2,964
|
|
|
24.23
|
|
|
1.12
|
|
||
Commercial real estate
|
924
|
|
|
7.66
|
|
|
1.59
|
|
|
967
|
|
|
7.90
|
|
|
1.69
|
|
||
Commercial lease financing
|
133
|
|
|
1.10
|
|
|
0.63
|
|
|
164
|
|
|
1.34
|
|
|
0.60
|
|
||
Non-U.S. commercial
|
831
|
|
|
6.89
|
|
|
0.89
|
|
|
754
|
|
|
6.17
|
|
|
0.82
|
|
||
Total commercial
(3)
|
5,311
|
|
|
44.01
|
|
|
1.19
|
|
|
4,849
|
|
|
39.64
|
|
|
1.11
|
|
||
Allowance for loan and lease losses
(4)
|
12,069
|
|
|
100.00
|
%
|
|
1.35
|
|
|
12,234
|
|
|
100.00
|
%
|
|
1.37
|
|
||
Reserve for unfunded lending commitments
|
627
|
|
|
|
|
|
|
646
|
|
|
|
|
|
||||||
Allowance for credit losses
|
$
|
12,696
|
|
|
|
|
|
|
$
|
12,880
|
|
|
|
|
|
(1)
|
Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of
$1.6 billion
and
$1.6 billion
and home equity loans of
$348 million
and
$250 million
at
March 31, 2016
and
December 31, 2015
. Commercial loans accounted for under the fair value option included U.S. commercial loans of
$2.6 billion
and
$2.3 billion
and non-U.S. commercial loans of
$3.7 billion
and
$2.8 billion
at
March 31, 2016
and
December 31, 2015
.
|
(2)
|
Includes allowance for loan and lease losses for U.S. small business commercial loans of
$480 million
and
$507 million
at
March 31, 2016
and
December 31, 2015
.
|
(3)
|
Includes allowance for loan and lease losses for impaired commercial loans of
$285 million
and
$217 million
at
March 31, 2016
and
December 31, 2015
.
|
(4)
|
Includes
$622 million
and
$804 million
of valuation allowance presented with the allowance for loan and lease losses related to PCI loans at
March 31, 2016
and
December 31, 2015
.
|
Reserve for Unfunded Lending Commitments
|
Market Risk Management
|
Trading Risk Management
|
Table 59
|
||||||||||||||||||||||||||||||||||||||
Market Risk VaR for Trading Activities
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Period End
|
Average
|
High
(1)
|
Low
(1)
|
|
Period End
|
Average
|
High
(1)
|
Low
(1)
|
|
Period End
|
Average
|
High
(1)
|
Low
(1)
|
||||||||||||||||||||||||
Foreign exchange
|
$
|
10
|
|
$
|
11
|
|
$
|
16
|
|
$
|
7
|
|
|
$
|
10
|
|
$
|
11
|
|
$
|
42
|
|
$
|
5
|
|
|
$
|
10
|
|
$
|
10
|
|
$
|
17
|
|
$
|
6
|
|
Interest rate
|
18
|
|
23
|
|
30
|
|
16
|
|
|
17
|
|
20
|
|
33
|
|
14
|
|
|
32
|
|
30
|
|
42
|
|
22
|
|
||||||||||||
Credit
|
31
|
|
31
|
|
35
|
|
27
|
|
|
32
|
|
30
|
|
39
|
|
27
|
|
|
44
|
|
41
|
|
46
|
|
37
|
|
||||||||||||
Equity
|
15
|
|
19
|
|
27
|
|
13
|
|
|
18
|
|
21
|
|
29
|
|
14
|
|
|
10
|
|
13
|
|
22
|
|
9
|
|
||||||||||||
Commodity
|
5
|
|
5
|
|
7
|
|
3
|
|
|
4
|
|
4
|
|
6
|
|
3
|
|
|
6
|
|
6
|
|
8
|
|
5
|
|
||||||||||||
Portfolio diversification
|
(44
|
)
|
(50
|
)
|
—
|
|
—
|
|
|
(36
|
)
|
(46
|
)
|
—
|
|
—
|
|
|
(40
|
)
|
(46
|
)
|
—
|
|
—
|
|
||||||||||||
Total covered positions trading portfolio
|
35
|
|
39
|
|
50
|
|
29
|
|
|
45
|
|
40
|
|
55
|
|
26
|
|
|
62
|
|
54
|
|
66
|
|
40
|
|
||||||||||||
Impact from less liquid exposures
|
5
|
|
3
|
|
—
|
|
—
|
|
|
3
|
|
4
|
|
—
|
|
—
|
|
|
9
|
|
8
|
|
—
|
|
—
|
|
||||||||||||
Total market-based trading portfolio
|
40
|
|
42
|
|
58
|
|
34
|
|
|
48
|
|
44
|
|
57
|
|
31
|
|
|
71
|
|
62
|
|
74
|
|
52
|
|
||||||||||||
Fair value option loans
|
28
|
|
35
|
|
40
|
|
28
|
|
|
35
|
|
30
|
|
35
|
|
23
|
|
|
28
|
|
31
|
|
36
|
|
26
|
|
||||||||||||
Fair value option hedges
|
15
|
|
18
|
|
22
|
|
14
|
|
|
17
|
|
16
|
|
18
|
|
14
|
|
|
14
|
|
17
|
|
22
|
|
11
|
|
||||||||||||
Fair value option portfolio diversification
|
(31
|
)
|
(38
|
)
|
—
|
|
—
|
|
|
(35
|
)
|
(32
|
)
|
—
|
|
—
|
|
|
(27
|
)
|
(31
|
)
|
—
|
|
—
|
|
||||||||||||
Total fair value option portfolio
|
12
|
|
15
|
|
20
|
|
11
|
|
|
17
|
|
14
|
|
17
|
|
11
|
|
|
15
|
|
17
|
|
19
|
|
15
|
|
||||||||||||
Portfolio diversification
|
(4
|
)
|
(7
|
)
|
—
|
|
—
|
|
|
(4
|
)
|
(5
|
)
|
—
|
|
—
|
|
|
(8
|
)
|
(8
|
)
|
—
|
|
—
|
|
||||||||||||
Total market-based portfolio
|
$
|
48
|
|
$
|
50
|
|
$
|
69
|
|
$
|
40
|
|
|
$
|
61
|
|
$
|
53
|
|
$
|
66
|
|
$
|
41
|
|
|
$
|
78
|
|
$
|
71
|
|
$
|
85
|
|
$
|
60
|
|
(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, are not relevant.
|
Table 60
|
||||||||||||||||||||
Average Market Risk VaR for Trading Activities – 99 Percent and 95 Percent VaR Statistics
|
||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|||||||||||||||
(Dollars in millions)
|
99 percent
|
95 percent
|
|
99 percent
|
95 percent
|
|
99 percent
|
95 percent
|
||||||||||||
Foreign exchange
|
$
|
11
|
|
$
|
6
|
|
|
$
|
11
|
|
$
|
6
|
|
|
$
|
10
|
|
$
|
6
|
|
Interest rate
|
23
|
|
14
|
|
|
20
|
|
12
|
|
|
30
|
|
20
|
|
||||||
Credit
|
31
|
|
18
|
|
|
30
|
|
18
|
|
|
41
|
|
22
|
|
||||||
Equity
|
19
|
|
12
|
|
|
21
|
|
11
|
|
|
13
|
|
7
|
|
||||||
Commodity
|
5
|
|
2
|
|
|
4
|
|
2
|
|
|
6
|
|
4
|
|
||||||
Portfolio diversification
|
(50
|
)
|
(31
|
)
|
|
(46
|
)
|
(29
|
)
|
|
(46
|
)
|
(31
|
)
|
||||||
Total covered positions trading portfolio
|
39
|
|
21
|
|
|
40
|
|
20
|
|
|
54
|
|
28
|
|
||||||
Impact from less liquid exposures
|
3
|
|
2
|
|
|
4
|
|
2
|
|
|
8
|
|
2
|
|
||||||
Total market-based trading portfolio
|
42
|
|
23
|
|
|
44
|
|
22
|
|
|
62
|
|
30
|
|
||||||
Fair value option loans
|
35
|
|
19
|
|
|
30
|
|
16
|
|
|
31
|
|
18
|
|
||||||
Fair value option hedges
|
18
|
|
11
|
|
|
16
|
|
10
|
|
|
17
|
|
11
|
|
||||||
Fair value option portfolio diversification
|
(38
|
)
|
(21
|
)
|
|
(32
|
)
|
(18
|
)
|
|
(31
|
)
|
(19
|
)
|
||||||
Total fair value option portfolio
|
15
|
|
9
|
|
|
14
|
|
8
|
|
|
17
|
|
10
|
|
||||||
Portfolio diversification
|
(7
|
)
|
(5
|
)
|
|
(5
|
)
|
(4
|
)
|
|
(8
|
)
|
(7
|
)
|
||||||
Total market-based portfolio
|
$
|
50
|
|
$
|
27
|
|
|
$
|
53
|
|
$
|
26
|
|
|
$
|
71
|
|
$
|
33
|
|
Backtesting
|
Total Trading-related Revenue
|
Trading Portfolio Stress Testing
|
Interest Rate Risk Management for Non-trading Activities
|
Table 61
|
|||||||||||||||||
Forward Rates
|
|||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||
|
Federal Funds
|
|
Three-month
LIBOR |
|
10-Year Swap
|
|
Federal Funds
|
|
Three-month
LIBOR |
|
10-Year Swap
|
||||||
Spot rates
|
0.50
|
%
|
|
0.63
|
%
|
|
1.64
|
%
|
|
0.50
|
%
|
|
0.61
|
%
|
|
2.19
|
%
|
12-month forward rates
|
0.75
|
|
|
0.86
|
|
|
1.81
|
|
|
1.00
|
|
|
1.22
|
|
|
2.39
|
|
Table 62
|
|
|
|
|
|
|
|
||||||
Estimated Net Interest Income Excluding Trading-related Net Interest Income
|
|||||||||||||
(Dollars in millions)
Curve Change
|
Short Rate (bps)
|
|
Long Rate (bps)
|
|
March 31
2016 |
|
December 31
2015 |
||||||
Parallel shifts
|
|
|
|
|
|
|
|
||||||
+100 bps instantaneous shift
|
+100
|
|
|
+100
|
|
|
$
|
5,958
|
|
|
$
|
4,306
|
|
-50 bps instantaneous shift
|
-50
|
|
|
-50
|
|
|
(4,749
|
)
|
|
(3,903
|
)
|
||
Flatteners
|
|
|
|
|
|
|
|
|
|||||
Short-end instantaneous change
|
+100
|
|
|
—
|
|
|
2,643
|
|
|
2,417
|
|
||
Long-end instantaneous change
|
—
|
|
|
-50
|
|
|
(2,362
|
)
|
|
(2,212
|
)
|
||
Steepeners
|
|
|
|
|
|
|
|
|
|||||
Short-end instantaneous change
|
-50
|
|
|
—
|
|
|
(2,352
|
)
|
|
(1,671
|
)
|
||
Long-end instantaneous change
|
—
|
|
|
+100
|
|
|
3,391
|
|
|
1,919
|
|
Interest Rate and Foreign Exchange Derivative Contracts
|
Table 63
|
||||||||||||||||||||||||||||||||||
Asset and Liability Management Interest Rate and Foreign Exchange Contracts
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
March 31, 2016
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
Expected Maturity
|
|
|
|||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years)
|
Fair
Value
|
|
Total
|
|
Remainder of 2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
Average
Estimated
Duration
|
|||||||||||||||||
Receive-fixed interest rate swaps
(1)
|
$
|
8,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.23
|
|
|||||||
Notional amount
|
|
|
|
$
|
113,825
|
|
|
$
|
12,811
|
|
|
$
|
21,453
|
|
|
$
|
21,850
|
|
|
$
|
9,783
|
|
|
$
|
7,015
|
|
|
$
|
40,913
|
|
|
|
|
|
Weighted-average fixed-rate
|
|
|
|
3.13
|
%
|
|
3.41
|
%
|
|
3.64
|
%
|
|
3.20
|
%
|
|
2.37
|
%
|
|
2.13
|
%
|
|
3.08
|
%
|
|
|
|
||||||||
Pay-fixed interest rate swaps
(1)
|
(343
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.86
|
|
||||||||
Notional amount
|
|
|
|
$
|
13,946
|
|
|
$
|
417
|
|
|
$
|
1,527
|
|
|
$
|
5,668
|
|
|
$
|
600
|
|
|
$
|
50
|
|
|
$
|
5,684
|
|
|
|
|
|
Weighted-average fixed-rate
|
|
|
|
1.71
|
%
|
|
2.13
|
%
|
|
1.84
|
%
|
|
1.41
|
%
|
|
1.59
|
%
|
|
3.68
|
%
|
|
1.94
|
%
|
|
|
|
||||||||
Same-currency basis swaps
(2)
|
(36
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
|
|
|
|
$
|
69,773
|
|
|
$
|
10,143
|
|
|
$
|
20,930
|
|
|
$
|
11,028
|
|
|
$
|
6,791
|
|
|
$
|
1,180
|
|
|
$
|
19,701
|
|
|
|
|
|
Foreign exchange basis swaps
(1, 3, 4)
|
(3,417
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
|
|
|
|
141,452
|
|
|
18,912
|
|
|
28,098
|
|
|
19,170
|
|
|
11,778
|
|
|
10,855
|
|
|
52,639
|
|
|
|
|
||||||||
Option products
(5)
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
(6)
|
|
|
|
883
|
|
|
868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
|
|
||||||||
Foreign exchange contracts
(1, 4, 7)
|
1,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
(6)
|
|
|
|
(30,380
|
)
|
|
(41,927
|
)
|
|
5,624
|
|
|
(2,136
|
)
|
|
2,173
|
|
|
23
|
|
|
5,863
|
|
|
|
|
||||||||
Futures and forward rate contracts
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
(6)
|
|
|
|
300
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
||||||||
Net ALM contracts
|
$
|
5,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
December 31, 2015
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
Expected Maturity
|
|
|
|||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years)
|
Fair
Value
|
|
Total
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
Average
Estimated
Duration
|
|||||||||||||||||
Receive-fixed interest rate swaps
(1)
|
$
|
6,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.98
|
|
||||||||||||||
Notional amount
|
|
|
$
|
114,354
|
|
|
$
|
15,339
|
|
|
$
|
21,453
|
|
|
$
|
21,850
|
|
|
$
|
9,783
|
|
|
$
|
7,015
|
|
|
$
|
38,914
|
|
|
|
|||
Weighted-average fixed-rate
|
|
|
3.12
|
%
|
|
3.12
|
%
|
|
3.64
|
%
|
|
3.20
|
%
|
|
2.37
|
%
|
|
2.13
|
%
|
|
3.16
|
%
|
|
|
||||||||||
Pay-fixed interest rate swaps
(1)
|
(81
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.98
|
|
|||||||||||||||
Notional amount
|
|
|
$
|
12,131
|
|
|
$
|
1,025
|
|
|
$
|
1,527
|
|
|
$
|
5,668
|
|
|
$
|
600
|
|
|
$
|
51
|
|
|
$
|
3,260
|
|
|
|
|||
Weighted-average fixed-rate
|
|
|
1.70
|
%
|
|
1.65
|
%
|
|
1.84
|
%
|
|
1.41
|
%
|
|
1.59
|
%
|
|
3.64
|
%
|
|
2.15
|
%
|
|
|
||||||||||
Same-currency basis swaps
(2)
|
(70
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
|
|
|
$
|
75,224
|
|
|
$
|
15,692
|
|
|
$
|
20,833
|
|
|
$
|
11,026
|
|
|
$
|
6,786
|
|
|
$
|
1,180
|
|
|
$
|
19,707
|
|
|
|
|||
Foreign exchange basis swaps
(1, 3, 4)
|
(3,968
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
|
|
|
144,446
|
|
|
25,762
|
|
|
27,441
|
|
|
19,319
|
|
|
12,226
|
|
|
10,572
|
|
|
49,126
|
|
|
|
||||||||||
Option products
(5)
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
(6)
|
|
|
752
|
|
|
737
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
|
||||||||||
Foreign exchange contracts
(1, 4, 7)
|
2,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
(6)
|
|
|
(25,405
|
)
|
|
(36,504
|
)
|
|
5,380
|
|
|
(2,228
|
)
|
|
2,123
|
|
|
52
|
|
|
5,772
|
|
|
|
||||||||||
Futures and forward rate contracts
|
(5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
(6)
|
|
|
200
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||
Net ALM contracts
|
$
|
4,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Does not include basis adjustments on either fixed-rate debt issued by the Corporation or AFS debt securities, which are hedged using derivatives designated as fair value hedging instruments, that substantially offset the fair values of these derivatives.
|
(2)
|
At
March 31, 2016
and
December 31, 2015
, the notional amount of same-currency basis swaps included
$69.8 billion
and
$75.2 billion
in both foreign currency and U.S. Dollar-denominated basis swaps in which both sides of the swap are in the same currency.
|
(3)
|
Foreign exchange basis swaps consisted of cross-currency variable interest rate swaps used separately or in conjunction with receive-fixed interest rate swaps.
|
(4)
|
Does not include foreign currency translation adjustments on certain non-U.S. debt issued by the Corporation, that substantially offset the fair values of these derivatives.
|
(5)
|
The notional amount of option products of
$883 million
at
March 31, 2016
was comprised of
$868 million
in foreign exchange options and
$15 million
in purchased caps/floors. Option products of
$752 million
at
December 31, 2015
were comprised of
$737 million
in foreign exchange options and
$15 million
in purchased caps/floors.
|
(6)
|
Reflects the net of long and short positions. Amounts shown as negative reflect a net short position.
|
(7)
|
The notional amount of foreign exchange contracts of
$(30.4) billion
at
March 31, 2016
was comprised of
$21.9 billion
in foreign currency-denominated and cross-currency receive-fixed swaps,
$(46.1) billion
in net foreign currency forward rate contracts,
$(7.6) billion
in foreign currency-denominated pay-fixed swaps and
$1.4 billion
in net foreign currency futures contracts. Foreign exchange contracts of
$(25.4) billion
at
December 31, 2015
were comprised of
$21.3 billion
in foreign currency-denominated and cross-currency receive-fixed swaps,
$(40.3) billion
in net foreign currency forward rate contracts,
$(7.6) billion
in foreign currency-denominated pay-fixed swaps and
$1.2 billion
in foreign currency futures contracts.
|
Mortgage Banking Risk Management
|
Complex Accounting Estimates
|
Fair Value of Financial Instruments
|
Level 3 Assets and Liabilities
|
Table 64
|
|||||||||||||||||||
Recurring Level 3 Asset and Liability Summary
|
|||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||
(Dollars in millions)
|
Level 3
Fair Value
|
|
As a %
of Total Level 3
Assets
|
|
As a %
of Total
Assets
|
|
Level 3
Fair Value
|
|
As a %
of Total Level 3
Assets
|
|
As a %
of Total
Assets
|
||||||||
Trading account assets
|
$
|
5,557
|
|
|
31.12
|
%
|
|
0.25
|
%
|
|
$
|
5,634
|
|
|
31.13
|
%
|
|
0.26
|
%
|
Derivative assets
|
5,459
|
|
|
30.57
|
|
|
0.25
|
|
|
5,134
|
|
|
28.37
|
|
|
0.24
|
|
||
AFS debt securities
|
1,451
|
|
|
8.12
|
|
|
0.07
|
|
|
1,432
|
|
|
7.91
|
|
|
0.07
|
|
||
Loans and leases
|
1,697
|
|
|
9.50
|
|
|
0.08
|
|
|
1,620
|
|
|
8.95
|
|
|
0.08
|
|
||
Mortgage servicing rights
|
2,631
|
|
|
14.73
|
|
|
0.12
|
|
|
3,087
|
|
|
17.06
|
|
|
0.14
|
|
||
All other Level 3 assets at fair value
|
1,064
|
|
|
5.96
|
|
|
0.05
|
|
|
1,191
|
|
|
6.58
|
|
|
0.05
|
|
||
Total Level 3 assets at fair value
(1)
|
$
|
17,859
|
|
|
100.00
|
%
|
|
0.82
|
%
|
|
$
|
18,098
|
|
|
100.00
|
%
|
|
0.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Level 3
Fair Value
|
|
As a %
of Total Level 3
Liabilities
|
|
As a %
of Total
Liabilities
|
|
Level 3
Fair Value
|
|
As a %
of Total Level 3
Liabilities
|
|
As a %
of Total
Liabilities
|
||||||||
Derivative liabilities
|
$
|
5,774
|
|
|
72.45
|
%
|
|
0.30
|
%
|
|
$
|
5,575
|
|
|
74.50
|
%
|
|
0.30
|
%
|
Long-term debt
|
1,814
|
|
|
22.76
|
|
|
0.09
|
|
|
1,513
|
|
|
20.22
|
|
|
0.08
|
|
||
All other Level 3 liabilities at fair value
|
382
|
|
|
4.79
|
|
|
0.02
|
|
|
395
|
|
|
5.28
|
|
|
0.02
|
|
||
Total Level 3 liabilities at fair value
(1)
|
$
|
7,970
|
|
|
100.00
|
%
|
|
0.41
|
%
|
|
$
|
7,483
|
|
|
100.00
|
%
|
|
0.40
|
%
|
(1)
|
Level 3 total assets and liabilities are shown before the impact of cash collateral and counterparty netting related to derivative positions.
|
Glossary
|
Acronyms
|
||
|
|
|
ABS
|
|
Asset-backed securities
|
AFS
|
|
Available-for-sale
|
ALM
|
|
Asset and liability management
|
AUM
|
|
Assets under management
|
BHC
|
|
Bank holding company
|
CCAR
|
|
Comprehensive Capital Analysis and Review
|
CDO
|
|
Collateralized debt obligation
|
CLO
|
|
Collateralized loan obligation
|
CRA
|
|
Community Reinvestment Act
|
CVA
|
|
Credit valuation adjustment
|
DVA
|
|
Debit valuation adjustment
|
EAD
|
|
Exposure at default
|
ERC
|
|
Enterprise Risk Committee
|
FDIC
|
|
Federal Deposit Insurance Corporation
|
FHA
|
|
Federal Housing Administration
|
FHLMC
|
|
Freddie Mac
|
FICC
|
|
Fixed-income, currencies and commodities
|
FICO
|
|
Fair Isaac Corporation (credit score)
|
FNMA
|
|
Fannie Mae
|
FTE
|
|
Fully taxable-equivalent
|
FVA
|
|
Funding valuation adjustment
|
GAAP
|
|
Accounting principles generally accepted in the United States of America
|
GNMA
|
|
Government National Mortgage Association
|
GSE
|
|
Government-sponsored enterprise
|
HELOC
|
|
Home equity lines of credit
|
HFI
|
|
Held-for-investment
|
|
|
|
|
|
|
HQLA
|
|
High Quality Liquid Assets
|
LCR
|
|
Liquidity Coverage Ratio
|
LGD
|
|
Loss-given default
|
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
|
MI
|
|
Mortgage insurance
|
MRC
|
|
Management Risk Committee
|
MSA
|
|
Metropolitan statistical area
|
MSR
|
|
Mortgage servicing right
|
NSFR
|
|
Net Stable Funding Ratio
|
OCI
|
|
Other comprehensive income
|
OTC
|
|
Over-the-counter
|
OTTI
|
|
Other-than-temporary impairment
|
PCA
|
|
Prompt Corrective Action
|
PCI
|
|
Purchased credit-impaired
|
PPI
|
|
Payment protection insurance
|
RMBS
|
|
Residential mortgage-backed securities
|
SBLCs
|
|
Standby letters of credit
|
SEC
|
|
Securities and Exchange Commission
|
SLR
|
|
Supplementary leverage ratio
|
TDR
|
|
Troubled debt restructurings
|
TLAC
|
|
Total Loss-Absorbing Capacity
|
VIE
|
|
Variable interest entity
|
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4. CONTROLS AND PROCEDURES
|
|
Disclosure Controls and Procedures
|
Changes in Internal Control Over Financial Reporting
|
Part I. FINANCIAL INFORMATION
|
|
|
|
||||
Item 1. FINANCIAL STATEMENTS
|
|
|
|
||||
Bank of America Corporation and Subsidiaries
|
|
|
|
||||
Consolidated Statement of Income
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions, except per share information)
|
2016
|
|
2015
|
||||
Interest income
|
|
|
|
||||
Loans and leases
|
$
|
8,260
|
|
|
$
|
7,996
|
|
Debt securities
|
1,204
|
|
|
1,887
|
|
||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
276
|
|
|
231
|
|
||
Trading account assets
|
1,179
|
|
|
1,083
|
|
||
Other interest income
|
776
|
|
|
726
|
|
||
Total interest income
|
11,695
|
|
|
11,923
|
|
||
|
|
|
|
||||
Interest expense
|
|
|
|
||||
Deposits
|
225
|
|
|
220
|
|
||
Short-term borrowings
|
614
|
|
|
585
|
|
||
Trading account liabilities
|
292
|
|
|
394
|
|
||
Long-term debt
|
1,393
|
|
|
1,313
|
|
||
Total interest expense
|
2,524
|
|
|
2,512
|
|
||
Net interest income
|
9,171
|
|
|
9,411
|
|
||
|
|
|
|
||||
Noninterest income
|
|
|
|
||||
Card income
|
1,430
|
|
|
1,394
|
|
||
Service charges
|
1,837
|
|
|
1,764
|
|
||
Investment and brokerage services
|
3,182
|
|
|
3,378
|
|
||
Investment banking income
|
1,153
|
|
|
1,487
|
|
||
Trading account profits
|
1,662
|
|
|
2,247
|
|
||
Mortgage banking income
|
433
|
|
|
694
|
|
||
Gains on sales of debt securities
|
226
|
|
|
268
|
|
||
Other income
|
418
|
|
|
271
|
|
||
Total noninterest income
|
10,341
|
|
|
11,503
|
|
||
Total revenue, net of interest expense
|
19,512
|
|
|
20,914
|
|
||
|
|
|
|
||||
Provision for credit losses
|
997
|
|
|
765
|
|
||
|
|
|
|
||||
Noninterest expense
|
|
|
|
||||
Personnel
|
8,852
|
|
|
9,614
|
|
||
Occupancy
|
1,028
|
|
|
1,027
|
|
||
Equipment
|
463
|
|
|
512
|
|
||
Marketing
|
419
|
|
|
440
|
|
||
Professional fees
|
425
|
|
|
421
|
|
||
Amortization of intangibles
|
187
|
|
|
213
|
|
||
Data processing
|
838
|
|
|
852
|
|
||
Telecommunications
|
173
|
|
|
171
|
|
||
Other general operating
|
2,431
|
|
|
2,577
|
|
||
Total noninterest expense
|
14,816
|
|
|
15,827
|
|
||
Income before income taxes
|
3,699
|
|
|
4,322
|
|
||
Income tax expense
|
1,019
|
|
|
1,225
|
|
||
Net income
|
$
|
2,680
|
|
|
$
|
3,097
|
|
Preferred stock dividends
|
457
|
|
|
382
|
|
||
Net income applicable to common shareholders
|
$
|
2,223
|
|
|
$
|
2,715
|
|
|
|
|
|
||||
Per common share information
|
|
|
|
||||
Earnings
|
$
|
0.21
|
|
|
$
|
0.26
|
|
Diluted earnings
|
0.21
|
|
|
0.25
|
|
||
Dividends paid
|
0.05
|
|
|
0.05
|
|
||
Average common shares issued and outstanding (in thousands)
|
10,339,731
|
|
|
10,518,790
|
|
||
Average diluted common shares issued and outstanding (in thousands)
|
11,100,067
|
|
|
11,266,511
|
|
Bank of America Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Net income
|
$
|
2,680
|
|
|
$
|
3,097
|
|
Other comprehensive income, net-of-tax:
|
|
|
|
||||
Net change in debt and marketable equity securities
|
2,891
|
|
|
1,336
|
|
||
Net change in debit valuation adjustments
|
127
|
|
|
260
|
|
||
Net change in derivatives
|
24
|
|
|
43
|
|
||
Employee benefit plan adjustments
|
10
|
|
|
25
|
|
||
Net change in foreign currency translation adjustments
|
12
|
|
|
(51
|
)
|
||
Other comprehensive income
|
3,064
|
|
|
1,613
|
|
||
Comprehensive income
|
$
|
5,744
|
|
|
$
|
4,710
|
|
Bank of America Corporation and Subsidiaries
Consolidated Balance Sheet (continued)
|
|||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
Liabilities
|
|
|
|
||||
Deposits in U.S. offices:
|
|
|
|
||||
Noninterest-bearing
|
$
|
424,319
|
|
|
$
|
422,237
|
|
Interest-bearing (includes
$1,038
and $1,116 measured at fair value)
|
718,579
|
|
|
703,761
|
|
||
Deposits in non-U.S. offices:
|
|
|
|
||||
Noninterest-bearing
|
11,230
|
|
|
9,916
|
|
||
Interest-bearing
|
63,133
|
|
|
61,345
|
|
||
Total deposits
|
1,217,261
|
|
|
1,197,259
|
|
||
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes
$24,369
and $24,574 measured at fair value)
|
188,960
|
|
|
174,291
|
|
||
Trading account liabilities
|
74,003
|
|
|
66,963
|
|
||
Derivative liabilities
|
41,063
|
|
|
38,450
|
|
||
Short-term borrowings (includes
$1,482
and $1,325 measured at fair value)
|
30,881
|
|
|
28,098
|
|
||
Accrued expenses and other liabilities (includes
$12,876
and $13,899 measured at fair value and
$627
and $646 of reserve for unfunded lending commitments)
|
137,705
|
|
|
146,286
|
|
||
Long-term debt (includes
$31,261
and $30,097 measured at fair value)
|
232,849
|
|
|
236,764
|
|
||
Total liabilities
|
1,922,722
|
|
|
1,888,111
|
|
||
Commitments and contingencies
(Note 6 – Securitizations and Other Variable Interest Entities, Note 7 – Representations
and Warranties Obligations and Corporate Guarantees
and
Note 10 – Commitments and Contingencies)
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholders' equity
|
|
|
|
||||
Preferred stock, $0.01 par value; authorized –
100,000,000
shares; issued and outstanding –
3,851,790
and 3,767,790 shares
|
24,342
|
|
|
22,273
|
|
||
Common stock and additional paid-in capital, $0.01 par value; authorized –
12,800,000,000
shares; issued and outstanding –
10,312,660,252
and 10,380,265,063 shares
|
150,774
|
|
|
151,042
|
|
||
Retained earnings
|
90,270
|
|
|
88,564
|
|
||
Accumulated other comprehensive income (loss)
|
(2,610
|
)
|
|
(5,674
|
)
|
||
Total shareholders' equity
|
262,776
|
|
|
256,205
|
|
||
Total liabilities and shareholders' equity
|
$
|
2,185,498
|
|
|
$
|
2,144,316
|
|
|
|
|
|
||||
Liabilities of consolidated variable interest entities included in total liabilities above
|
|
|
|
||||
Short-term borrowings
|
$
|
665
|
|
|
$
|
681
|
|
Long-term debt (includes
$10,137
and $11,304 of non-recourse debt)
|
10,857
|
|
|
14,073
|
|
||
All other liabilities (includes
$12
and $20 of non-recourse liabilities)
|
17
|
|
|
21
|
|
||
Total liabilities of consolidated variable interest entities
|
$
|
11,539
|
|
|
$
|
14,775
|
|
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 |
||||||||||||
(Dollars in millions, shares in thousands)
|
Shares
|
Amount
|
|||||||||||||||
Balance, December 31, 2014
|
$
|
19,309
|
|
10,516,542
|
|
$
|
153,458
|
|
$
|
75,024
|
|
$
|
(4,320
|
)
|
$
|
243,471
|
|
Cumulative adjustment for accounting change related to debit valuation adjustments
|
|
|
|
1,226
|
|
(1,226
|
)
|
—
|
|
||||||||
Net income
|
|
|
|
3,097
|
|
|
3,097
|
|
|||||||||
Net change in debt and marketable equity securities
|
|
|
|
|
1,336
|
|
1,336
|
|
|||||||||
Net change in debit valuation adjustments
|
|
|
|
|
260
|
|
260
|
|
|||||||||
Net change in derivatives
|
|
|
|
|
43
|
|
43
|
|
|||||||||
Employee benefit plan adjustments
|
|
|
|
|
25
|
|
25
|
|
|||||||||
Net change in foreign currency translation adjustments
|
|
|
|
|
(51
|
)
|
(51
|
)
|
|||||||||
Dividends paid:
|
|
|
|
|
|
|
|||||||||||
Common
|
|
|
|
(527
|
)
|
|
(527
|
)
|
|||||||||
Preferred
|
|
|
|
(382
|
)
|
|
(382
|
)
|
|||||||||
Issuance of preferred stock
|
2,964
|
|
|
|
|
|
2,964
|
|
|||||||||
Common stock issued under employee plans and related tax effects
|
|
3,859
|
|
(48
|
)
|
|
|
(48
|
)
|
||||||||
Balance, March 31, 2015
|
$
|
22,273
|
|
10,520,401
|
|
$
|
153,410
|
|
$
|
78,438
|
|
$
|
(3,933
|
)
|
$
|
250,188
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2015
|
$
|
22,273
|
|
10,380,265
|
|
$
|
151,042
|
|
$
|
88,564
|
|
$
|
(5,674
|
)
|
$
|
256,205
|
|
Net income
|
|
|
|
2,680
|
|
|
2,680
|
|
|||||||||
Net change in debt and marketable equity securities
|
|
|
|
|
2,891
|
|
2,891
|
|
|||||||||
Net change in debit valuation adjustments
|
|
|
|
|
127
|
|
127
|
|
|||||||||
Net change in derivatives
|
|
|
|
|
24
|
|
24
|
|
|||||||||
Employee benefit plan adjustments
|
|
|
|
|
10
|
|
10
|
|
|||||||||
Net change in foreign currency translation adjustments
|
|
|
|
|
12
|
|
12
|
|
|||||||||
Dividends paid:
|
|
|
|
|
|
|
|||||||||||
Common
|
|
|
|
(517
|
)
|
|
(517
|
)
|
|||||||||
Preferred
|
|
|
|
(457
|
)
|
|
(457
|
)
|
|||||||||
Issuance of preferred stock
|
2,069
|
|
|
|
|
|
2,069
|
|
|||||||||
Common stock issued under employee plans and related tax effects
|
|
4,936
|
|
732
|
|
|
|
732
|
|
||||||||
Common stock repurchased
|
|
(72,541
|
)
|
(1,000
|
)
|
|
|
(1,000
|
)
|
||||||||
Balance, March 31, 2016
|
$
|
24,342
|
|
10,312,660
|
|
$
|
150,774
|
|
$
|
90,270
|
|
$
|
(2,610
|
)
|
$
|
262,776
|
|
Bank of America Corporation and Subsidiaries
Consolidated Statement of Cash Flows
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
2,680
|
|
|
$
|
3,097
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for credit losses
|
997
|
|
|
765
|
|
||
Gains on sales of debt securities
|
(226
|
)
|
|
(268
|
)
|
||
Realized debit valuation adjustments on structured liabilities
|
7
|
|
|
335
|
|
||
Depreciation and amortization of premises and equipment
|
379
|
|
|
395
|
|
||
Amortization of intangibles
|
187
|
|
|
213
|
|
||
Net amortization of premium/discount on debt securities
|
1,802
|
|
|
978
|
|
||
Deferred income taxes
|
1,218
|
|
|
68
|
|
||
Stock-based compensation
|
831
|
|
|
14
|
|
||
Loans held-for-sale:
|
|
|
|
||||
Originations and purchases
|
(5,728
|
)
|
|
(10,587
|
)
|
||
Proceeds from sales and paydowns of loans originally classified as held-for-sale
|
6,675
|
|
|
10,975
|
|
||
Net change in:
|
|
|
|
||||
Trading and derivative instruments
|
8,135
|
|
|
3,222
|
|
||
Other assets
|
2,361
|
|
|
12
|
|
||
Accrued expenses and other liabilities
|
(8,556
|
)
|
|
(7,232
|
)
|
||
Other operating activities, net
|
81
|
|
|
(1,742
|
)
|
||
Net cash provided by operating activities
|
10,843
|
|
|
245
|
|
||
Investing activities
|
|
|
|
||||
Net change in:
|
|
|
|
||||
Time deposits placed and other short-term investments
|
1,853
|
|
|
92
|
|
||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
(28,647
|
)
|
|
(14,885
|
)
|
||
Debt securities carried at fair value:
|
|
|
|
||||
Proceeds from sales
|
19,651
|
|
|
30,021
|
|
||
Proceeds from paydowns and maturities
|
23,243
|
|
|
16,446
|
|
||
Purchases
|
(30,988
|
)
|
|
(43,429
|
)
|
||
Held-to-maturity debt securities:
|
|
|
|
||||
Proceeds from paydowns and maturities
|
2,768
|
|
|
2,973
|
|
||
Purchases
|
(4,334
|
)
|
|
(3,354
|
)
|
||
Loans and leases:
|
|
|
|
||||
Proceeds from sales
|
8,021
|
|
|
5,781
|
|
||
Purchases
|
(4,224
|
)
|
|
(3,582
|
)
|
||
Other changes in loans and leases, net
|
(9,309
|
)
|
|
(3,482
|
)
|
||
Other investing activities, net
|
592
|
|
|
(93
|
)
|
||
Net cash used in investing activities
|
(21,374
|
)
|
|
(13,512
|
)
|
||
Financing activities
|
|
|
|
||||
Net change in:
|
|
|
|
||||
Deposits
|
20,002
|
|
|
34,232
|
|
||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
14,669
|
|
|
2,481
|
|
||
Short-term borrowings
|
2,783
|
|
|
2,098
|
|
||
Long-term debt:
|
|
|
|
||||
Proceeds from issuance
|
6,260
|
|
|
9,254
|
|
||
Retirement of long-term debt
|
(14,404
|
)
|
|
(11,678
|
)
|
||
Proceeds from issuance of preferred stock
|
2,069
|
|
|
2,964
|
|
||
Common stock repurchased
|
(1,000
|
)
|
|
—
|
|
||
Cash dividends paid
|
(974
|
)
|
|
(846
|
)
|
||
Excess tax benefits on share-based payments
|
5
|
|
|
16
|
|
||
Other financing activities, net
|
(28
|
)
|
|
(9
|
)
|
||
Net cash provided by financing activities
|
29,382
|
|
|
38,512
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
1,406
|
|
|
(1,291
|
)
|
||
Net increase in cash and cash equivalents
|
20,257
|
|
|
23,954
|
|
||
Cash and cash equivalents at January 1
|
159,353
|
|
|
138,589
|
|
||
Cash and cash equivalents at March 31
|
$
|
179,610
|
|
|
$
|
162,543
|
|
NOTE 1 – Summary of Significant Accounting Principles
|
Principles of Consolidation and Basis of Presentation
|
New Accounting Pronouncements
|
NOTE 2 – Derivatives
|
|
Derivative Balances
|
|
March 31, 2016
|
||||||||||||||||||||||||||
|
|
|
Gross Derivative Assets
|
|
Gross Derivative Liabilities
|
||||||||||||||||||||||
(Dollars in billions)
|
Contract/
Notional
(1)
|
|
Trading and Other Risk Management Derivatives
|
|
Qualifying
Accounting
Hedges
|
|
Total
|
|
Trading and Other Risk Management Derivatives
|
|
Qualifying
Accounting
Hedges
|
|
Total
|
||||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
$
|
21,540.3
|
|
|
$
|
573.5
|
|
|
$
|
9.8
|
|
|
$
|
583.3
|
|
|
$
|
572.1
|
|
|
$
|
0.7
|
|
|
$
|
572.8
|
|
Futures and forwards
|
8,148.6
|
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|||||||
Written options
|
1,364.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73.5
|
|
|
—
|
|
|
73.5
|
|
|||||||
Purchased options
|
1,433.7
|
|
|
75.4
|
|
|
—
|
|
|
75.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Swaps
|
2,116.2
|
|
|
57.0
|
|
|
0.8
|
|
|
57.8
|
|
|
57.7
|
|
|
2.8
|
|
|
60.5
|
|
|||||||
Spot, futures and forwards
|
4,496.6
|
|
|
56.9
|
|
|
0.8
|
|
|
57.7
|
|
|
60.9
|
|
|
0.9
|
|
|
61.8
|
|
|||||||
Written options
|
500.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.1
|
|
|
—
|
|
|
10.1
|
|
|||||||
Purchased options
|
464.1
|
|
|
9.9
|
|
|
—
|
|
|
9.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Swaps
|
186.5
|
|
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|
4.5
|
|
|
—
|
|
|
4.5
|
|
|||||||
Futures and forwards
|
71.4
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|||||||
Written options
|
406.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.2
|
|
|
—
|
|
|
23.2
|
|
|||||||
Purchased options
|
375.1
|
|
|
25.4
|
|
|
—
|
|
|
25.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Swaps
|
47.2
|
|
|
3.9
|
|
|
—
|
|
|
3.9
|
|
|
6.4
|
|
|
—
|
|
|
6.4
|
|
|||||||
Futures and forwards
|
285.3
|
|
|
3.9
|
|
|
—
|
|
|
3.9
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|||||||
Written options
|
56.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
|
—
|
|
|
4.6
|
|
|||||||
Purchased options
|
63.0
|
|
|
4.7
|
|
|
—
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Credit derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Credit default swaps
|
944.1
|
|
|
12.7
|
|
|
—
|
|
|
12.7
|
|
|
14.1
|
|
|
—
|
|
|
14.1
|
|
|||||||
Total return swaps/other
|
35.0
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|||||||
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Credit default swaps
|
931.7
|
|
|
14.4
|
|
|
—
|
|
|
14.4
|
|
|
11.5
|
|
|
—
|
|
|
11.5
|
|
|||||||
Total return swaps/other
|
54.1
|
|
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|
1.8
|
|
|
—
|
|
|
1.8
|
|
|||||||
Gross derivative assets/liabilities
|
|
|
$
|
848.9
|
|
|
$
|
11.4
|
|
|
$
|
860.3
|
|
|
$
|
846.3
|
|
|
$
|
4.4
|
|
|
$
|
850.7
|
|
||
Less: Legally enforceable master netting agreements
|
|
|
|
(764.0
|
)
|
|
|
|
|
|
(764.0
|
)
|
|||||||||||||||
Less: Cash collateral received/paid
|
|
|
|
|
|
|
(44.0
|
)
|
|
|
|
|
|
(45.6
|
)
|
||||||||||||
Total derivative assets/liabilities
|
|
|
|
|
|
$
|
52.3
|
|
|
|
|
|
|
$
|
41.1
|
|
(1)
|
Represents the total contract/notional amount of derivative assets and liabilities outstanding.
|
|
December 31, 2015
|
||||||||||||||||||||||||||
|
|
|
Gross Derivative Assets
|
|
Gross Derivative Liabilities
|
||||||||||||||||||||||
(Dollars in billions)
|
Contract/
Notional
(1)
|
|
Trading and Other Risk Management Derivatives
|
|
Qualifying
Accounting
Hedges
|
|
Total
|
|
Trading and Other Risk Management Derivatives
|
|
Qualifying
Accounting
Hedges
|
|
Total
|
||||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
$
|
21,706.8
|
|
|
$
|
439.6
|
|
|
$
|
7.4
|
|
|
$
|
447.0
|
|
|
$
|
440.7
|
|
|
$
|
1.2
|
|
|
$
|
441.9
|
|
Futures and forwards
|
7,259.7
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|||||||
Written options
|
1,322.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57.7
|
|
|
—
|
|
|
57.7
|
|
|||||||
Purchased options
|
1,403.3
|
|
|
58.9
|
|
|
—
|
|
|
58.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
2,149.9
|
|
|
49.2
|
|
|
0.9
|
|
|
50.1
|
|
|
52.2
|
|
|
2.8
|
|
|
55.0
|
|
|||||||
Spot, futures and forwards
|
4,104.4
|
|
|
46.0
|
|
|
1.2
|
|
|
47.2
|
|
|
45.8
|
|
|
0.3
|
|
|
46.1
|
|
|||||||
Written options
|
467.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.6
|
|
|
—
|
|
|
10.6
|
|
|||||||
Purchased options
|
439.9
|
|
|
10.2
|
|
|
—
|
|
|
10.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
201.2
|
|
|
3.3
|
|
|
—
|
|
|
3.3
|
|
|
3.8
|
|
|
—
|
|
|
3.8
|
|
|||||||
Futures and forwards
|
74.0
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|||||||
Written options
|
352.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.1
|
|
|
—
|
|
|
21.1
|
|
|||||||
Purchased options
|
325.4
|
|
|
23.8
|
|
|
—
|
|
|
23.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
47.0
|
|
|
4.7
|
|
|
—
|
|
|
4.7
|
|
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|||||||
Futures and forwards
|
268.7
|
|
|
3.8
|
|
|
—
|
|
|
3.8
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|||||||
Written options
|
58.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|||||||
Purchased options
|
65.7
|
|
|
5.3
|
|
|
—
|
|
|
5.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Credit derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Credit default swaps
|
928.3
|
|
|
14.4
|
|
|
—
|
|
|
14.4
|
|
|
14.8
|
|
|
—
|
|
|
14.8
|
|
|||||||
Total return swaps/other
|
26.4
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|||||||
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Credit default swaps
|
924.1
|
|
|
15.3
|
|
|
—
|
|
|
15.3
|
|
|
13.1
|
|
|
—
|
|
|
13.1
|
|
|||||||
Total return swaps/other
|
39.7
|
|
|
2.3
|
|
|
—
|
|
|
2.3
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||||||
Gross derivative assets/liabilities
|
|
|
$
|
680.2
|
|
|
$
|
9.5
|
|
|
$
|
689.7
|
|
|
$
|
677.9
|
|
|
$
|
4.3
|
|
|
$
|
682.2
|
|
||
Less: Legally enforceable master netting agreements
|
|
|
|
(597.8
|
)
|
|
|
|
|
|
(597.8
|
)
|
|||||||||||||||
Less: Cash collateral received/paid
|
|
|
|
|
|
|
(41.9
|
)
|
|
|
|
|
|
(45.9
|
)
|
||||||||||||
Total derivative assets/liabilities
|
|
|
|
|
|
$
|
50.0
|
|
|
|
|
|
|
$
|
38.5
|
|
(1)
|
Represents the total contract/notional amount of derivative assets and liabilities outstanding.
|
Offsetting of Derivatives
|
Offsetting of Derivatives
|
|
|
|
|
|
|
|
||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
(Dollars in billions)
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
$
|
371.3
|
|
|
$
|
357.8
|
|
|
$
|
309.3
|
|
|
$
|
297.2
|
|
Exchange-traded
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Over-the-counter cleared
|
287.3
|
|
|
288.3
|
|
|
197.0
|
|
|
201.7
|
|
||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
120.6
|
|
|
127.3
|
|
|
103.2
|
|
|
107.5
|
|
||||
Over-the-counter cleared
|
0.2
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
||||||
Over-the-counter
|
17.3
|
|
|
14.3
|
|
|
16.6
|
|
|
14.0
|
|
||||
Exchange-traded
|
11.7
|
|
|
10.6
|
|
|
10.0
|
|
|
9.2
|
|
||||
Commodity contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
6.1
|
|
|
7.5
|
|
|
7.3
|
|
|
8.9
|
|
||||
Exchange-traded
|
2.7
|
|
|
2.6
|
|
|
2.9
|
|
|
2.9
|
|
||||
Over-the-counter cleared
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
Credit derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Over-the-counter
|
23.0
|
|
|
22.3
|
|
|
24.6
|
|
|
22.9
|
|
||||
Over-the-counter cleared
|
6.1
|
|
|
6.2
|
|
|
6.5
|
|
|
6.4
|
|
||||
Total gross derivative assets/liabilities, before netting
|
|
|
|
|
|
|
|
|
|
||||||
Over-the-counter
|
538.3
|
|
|
529.2
|
|
|
461.0
|
|
|
450.5
|
|
||||
Exchange-traded
|
14.5
|
|
|
13.2
|
|
|
12.9
|
|
|
12.1
|
|
||||
Over-the-counter cleared
|
293.7
|
|
|
294.8
|
|
|
203.7
|
|
|
208.3
|
|
||||
Less: Legally enforceable master netting agreements and cash collateral received/paid
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
(503.4
|
)
|
|
(503.7
|
)
|
|
(426.6
|
)
|
|
(425.7
|
)
|
||||
Exchange-traded
|
(11.2
|
)
|
|
(11.2
|
)
|
|
(9.8
|
)
|
|
(9.8
|
)
|
||||
Over-the-counter cleared
|
(293.4
|
)
|
|
(294.7
|
)
|
|
(203.3
|
)
|
|
(208.2
|
)
|
||||
Derivative assets/liabilities, after netting
|
38.5
|
|
|
27.6
|
|
|
37.9
|
|
|
27.2
|
|
||||
Other gross derivative assets/liabilities
|
13.8
|
|
|
13.5
|
|
|
12.1
|
|
|
11.3
|
|
||||
Total derivative assets/liabilities
|
52.3
|
|
|
41.1
|
|
|
50.0
|
|
|
38.5
|
|
||||
Less: Financial instruments collateral
(1)
|
(14.3
|
)
|
|
(8.5
|
)
|
|
(13.9
|
)
|
|
(6.5
|
)
|
||||
Total net derivative assets/liabilities
|
$
|
38.0
|
|
|
$
|
32.6
|
|
|
$
|
36.1
|
|
|
$
|
32.0
|
|
(1)
|
These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged.
|
ALM and Risk Management Derivatives
|
Derivatives Designated as Accounting Hedges
|
Derivatives Designated as Fair Value Hedges
|
|||||||||||
Gains (Losses)
|
Three Months Ended March 31
|
||||||||||
|
2016
|
||||||||||
(Dollars in millions)
|
Derivative
|
|
Hedged
Item
|
|
Hedge
Ineffectiveness
|
||||||
Interest rate risk on long-term debt
(1)
|
$
|
2,661
|
|
|
$
|
(2,854
|
)
|
|
$
|
(193
|
)
|
Interest rate and foreign currency risk on long-term debt
(1)
|
839
|
|
|
(846
|
)
|
|
(7
|
)
|
|||
Interest rate risk on available-for-sale securities
(2)
|
(151
|
)
|
|
132
|
|
|
(19
|
)
|
|||
Price risk on commodity inventory
(3)
|
2
|
|
|
(2
|
)
|
|
—
|
|
|||
Total
|
$
|
3,351
|
|
|
$
|
(3,570
|
)
|
|
$
|
(219
|
)
|
|
|
|
|
|
|
||||||
|
2015
|
||||||||||
Interest rate risk on long-term debt
(1)
|
$
|
1,096
|
|
|
$
|
(1,292
|
)
|
|
$
|
(196
|
)
|
Interest rate and foreign currency risk on long-term debt
(1)
|
(1,644
|
)
|
|
1,588
|
|
|
(56
|
)
|
|||
Interest rate risk on available-for-sale securities
(2)
|
43
|
|
|
(45
|
)
|
|
(2
|
)
|
|||
Price risk on commodity inventory
(3)
|
11
|
|
|
(7
|
)
|
|
4
|
|
|||
Total
|
$
|
(494
|
)
|
|
$
|
244
|
|
|
$
|
(250
|
)
|
(1)
|
Amounts are recorded in interest expense on long-term debt and in other income.
|
(2)
|
Amounts are recorded in interest income on debt securities.
|
(3)
|
Amounts relating to commodity inventory are recorded in trading account profits.
|
(1)
|
Amounts related to cash flow hedges represent hedge ineffectiveness and amounts related to net investment hedges represent amounts excluded from effectiveness testing.
|
(2)
|
The hedge gain (loss) recognized in accumulated OCI is primarily related to the change in the Corporation's stock price for the period.
|
Other Risk Management Derivatives
|
Other Risk Management Derivatives
|
|||||||
Gains (Losses)
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Interest rate risk on mortgage banking income
(1)
|
$
|
546
|
|
|
$
|
296
|
|
Credit risk on loans
(2)
|
(65
|
)
|
|
(27
|
)
|
||
Interest rate and foreign currency risk on ALM activities
(3)
|
(884
|
)
|
|
(319
|
)
|
||
Price risk on restricted stock awards
(4)
|
(741
|
)
|
|
(470
|
)
|
||
Other
|
26
|
|
|
13
|
|
(1)
|
Net gains (losses) on these derivatives are recorded in mortgage banking income as they are used to mitigate the interest rate risk related to MSRs, IRLCs and mortgage loans held-for-sale, all of which are measured at fair value with changes in fair value recorded in mortgage banking income. The net gains on IRLCs related to the origination of mortgage loans that are held-for-sale, which are not included in the table but are considered derivative instruments, were
$151 million
and
$260 million
for the
three months ended March 31, 2016 and 2015
.
|
(2)
|
Primarily related to derivatives that are economic hedges of credit risk on loans. Net gains (losses) on these derivatives are recorded in other income.
|
(3)
|
Primarily related to hedges of debt securities carried at fair value and hedges of foreign currency-denominated debt. Gains (losses) on these derivatives and the related hedged items are recorded in other income.
|
(4)
|
Gains (losses) on these derivatives are recorded in personnel expense.
|
Transfers of Financial Assets with Risk Retained through Derivatives
|
Sales and Trading Revenue
|
Sales and Trading Revenue
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31
|
||||||||||||||
|
2016
|
||||||||||||||
(Dollars in millions)
|
Trading
Account
Profits
|
|
Net Interest Income
|
|
Other
(1)
|
|
Total
|
||||||||
Interest rate risk
|
$
|
496
|
|
|
$
|
429
|
|
|
$
|
52
|
|
|
$
|
977
|
|
Foreign exchange risk
|
340
|
|
|
(1
|
)
|
|
(36
|
)
|
|
303
|
|
||||
Equity risk
|
433
|
|
|
1
|
|
|
597
|
|
|
1,031
|
|
||||
Credit risk
|
202
|
|
|
625
|
|
|
139
|
|
|
966
|
|
||||
Other risk
|
121
|
|
|
(16
|
)
|
|
15
|
|
|
120
|
|
||||
Total sales and trading revenue
|
$
|
1,592
|
|
|
$
|
1,038
|
|
|
$
|
767
|
|
|
$
|
3,397
|
|
|
|
|
|
|
|
|
|
||||||||
|
2015
|
||||||||||||||
Interest rate risk
|
$
|
515
|
|
|
$
|
291
|
|
|
$
|
(270
|
)
|
|
$
|
536
|
|
Foreign exchange risk
|
446
|
|
|
(2
|
)
|
|
(31
|
)
|
|
413
|
|
||||
Equity risk
|
570
|
|
|
13
|
|
|
549
|
|
|
1,132
|
|
||||
Credit risk
|
444
|
|
|
571
|
|
|
184
|
|
|
1,199
|
|
||||
Other risk
|
156
|
|
|
(21
|
)
|
|
26
|
|
|
161
|
|
||||
Total sales and trading revenue
|
$
|
2,131
|
|
|
$
|
852
|
|
|
$
|
458
|
|
|
$
|
3,441
|
|
(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
$559 million
and
$567 million
for the
three months ended March 31, 2016 and 2015
.
|
Credit Derivatives
|
Credit Derivative Instruments
|
|
|
|||||||||||||||||
|
March 31, 2016
|
||||||||||||||||||
|
Carrying Value
|
||||||||||||||||||
(Dollars in millions)
|
Less than
One Year
|
|
One to
Three Years
|
|
Three to
Five Years
|
|
Over Five
Years
|
|
Total
|
||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
27
|
|
|
$
|
204
|
|
|
$
|
1,012
|
|
|
$
|
843
|
|
|
$
|
2,086
|
|
Non-investment grade
|
545
|
|
|
2,586
|
|
|
2,382
|
|
|
3,889
|
|
|
9,402
|
|
|||||
Total
|
572
|
|
|
2,790
|
|
|
3,394
|
|
|
4,732
|
|
|
11,488
|
|
|||||
Total return swaps/other:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||
Non-investment grade
|
1,644
|
|
|
75
|
|
|
25
|
|
|
3
|
|
|
1,747
|
|
|||||
Total
|
1,656
|
|
|
75
|
|
|
25
|
|
|
3
|
|
|
1,759
|
|
|||||
Total credit derivatives
|
$
|
2,228
|
|
|
$
|
2,865
|
|
|
$
|
3,419
|
|
|
$
|
4,735
|
|
|
$
|
13,247
|
|
Credit-related notes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
324
|
|
|
$
|
27
|
|
|
$
|
577
|
|
|
$
|
1,975
|
|
|
$
|
2,903
|
|
Non-investment grade
|
93
|
|
|
75
|
|
|
106
|
|
|
1,169
|
|
|
1,443
|
|
|||||
Total credit-related notes
|
$
|
417
|
|
|
$
|
102
|
|
|
$
|
683
|
|
|
$
|
3,144
|
|
|
$
|
4,346
|
|
|
Maximum Payout/Notional
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
153,421
|
|
|
$
|
258,645
|
|
|
$
|
171,041
|
|
|
$
|
37,517
|
|
|
$
|
620,624
|
|
Non-investment grade
|
86,272
|
|
|
137,244
|
|
|
63,801
|
|
|
23,711
|
|
|
311,028
|
|
|||||
Total
|
239,693
|
|
|
395,889
|
|
|
234,842
|
|
|
61,228
|
|
|
931,652
|
|
|||||
Total return swaps/other:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
18,090
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,090
|
|
|||||
Non-investment grade
|
28,101
|
|
|
6,502
|
|
|
1,182
|
|
|
254
|
|
|
36,039
|
|
|||||
Total
|
46,191
|
|
|
6,502
|
|
|
1,182
|
|
|
254
|
|
|
54,129
|
|
|||||
Total credit derivatives
|
$
|
285,884
|
|
|
$
|
402,391
|
|
|
$
|
236,024
|
|
|
$
|
61,482
|
|
|
$
|
985,781
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2015
|
||||||||||||||||||
|
Carrying Value
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
84
|
|
|
$
|
481
|
|
|
$
|
2,203
|
|
|
$
|
680
|
|
|
$
|
3,448
|
|
Non-investment grade
|
672
|
|
|
3,035
|
|
|
2,386
|
|
|
3,583
|
|
|
9,676
|
|
|||||
Total
|
756
|
|
|
3,516
|
|
|
4,589
|
|
|
4,263
|
|
|
13,124
|
|
|||||
Total return swaps/other:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Non-investment grade
|
171
|
|
|
236
|
|
|
8
|
|
|
2
|
|
|
417
|
|
|||||
Total
|
176
|
|
|
236
|
|
|
8
|
|
|
2
|
|
|
422
|
|
|||||
Total credit derivatives
|
$
|
932
|
|
|
$
|
3,752
|
|
|
$
|
4,597
|
|
|
$
|
4,265
|
|
|
$
|
13,546
|
|
Credit-related notes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
267
|
|
|
$
|
57
|
|
|
$
|
444
|
|
|
$
|
2,203
|
|
|
$
|
2,971
|
|
Non-investment grade
|
61
|
|
|
118
|
|
|
117
|
|
|
1,264
|
|
|
1,560
|
|
|||||
Total credit-related notes
|
$
|
328
|
|
|
$
|
175
|
|
|
$
|
561
|
|
|
$
|
3,467
|
|
|
$
|
4,531
|
|
|
Maximum Payout/Notional
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
149,177
|
|
|
$
|
280,658
|
|
|
$
|
178,990
|
|
|
$
|
26,352
|
|
|
$
|
635,177
|
|
Non-investment grade
|
81,596
|
|
|
135,850
|
|
|
53,299
|
|
|
18,221
|
|
|
288,966
|
|
|||||
Total
|
230,773
|
|
|
416,508
|
|
|
232,289
|
|
|
44,573
|
|
|
924,143
|
|
|||||
Total return swaps/other:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
9,758
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,758
|
|
|||||
Non-investment grade
|
20,917
|
|
|
6,989
|
|
|
1,371
|
|
|
623
|
|
|
29,900
|
|
|||||
Total
|
30,675
|
|
|
6,989
|
|
|
1,371
|
|
|
623
|
|
|
39,658
|
|
|||||
Total credit derivatives
|
$
|
261,448
|
|
|
$
|
423,497
|
|
|
$
|
233,660
|
|
|
$
|
45,196
|
|
|
$
|
963,801
|
|
Credit-related Contingent Features and Collateral
|
(1)
|
Included in Bank of America Corporation collateral requirements in this table.
|
Valuation Adjustments on Derivatives
|
(1)
|
At
March 31, 2016
and
December 31, 2015
, the cumulative CVA changed the derivative assets balance to
$1.6 billion
and
$1.4 billion
.
|
(2)
|
At
March 31, 2016
and
December 31, 2015
, the cumulative FVA changed the net derivatives balances to
$537 million
and
$481 million
.
|
(3)
|
At
March 31, 2016
and
December 31, 2015
, the cumulative DVA changed the derivative liabilities balance to
$1.1 billion
and
$750 million
.
|
NOTE 3 – Securities
|
Debt Securities and Available-for-Sale Marketable Equity Securities
|
|||||||||||||||
|
March 31, 2016
|
||||||||||||||
(Dollars in millions)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Agency
|
$
|
204,557
|
|
|
$
|
3,257
|
|
|
$
|
(78
|
)
|
|
$
|
207,736
|
|
Agency-collateralized mortgage obligations
|
10,294
|
|
|
277
|
|
|
(13
|
)
|
|
10,558
|
|
||||
Commercial
|
9,989
|
|
|
245
|
|
|
(1
|
)
|
|
10,233
|
|
||||
Non-agency residential
(1)
|
2,104
|
|
|
202
|
|
|
(77
|
)
|
|
2,229
|
|
||||
Total mortgage-backed securities
|
226,944
|
|
|
3,981
|
|
|
(169
|
)
|
|
230,756
|
|
||||
U.S. Treasury and agency securities
|
21,732
|
|
|
484
|
|
|
—
|
|
|
22,216
|
|
||||
Non-U.S. securities
|
6,059
|
|
|
26
|
|
|
(5
|
)
|
|
6,080
|
|
||||
Other taxable securities, substantially all asset-backed securities
|
10,526
|
|
|
53
|
|
|
(99
|
)
|
|
10,480
|
|
||||
Total taxable securities
|
265,261
|
|
|
4,544
|
|
|
(273
|
)
|
|
269,532
|
|
||||
Tax-exempt securities
|
14,551
|
|
|
72
|
|
|
(35
|
)
|
|
14,588
|
|
||||
Total available-for-sale debt securities
|
279,812
|
|
|
4,616
|
|
|
(308
|
)
|
|
284,120
|
|
||||
Other debt securities carried at fair value
|
18,378
|
|
|
87
|
|
|
(252
|
)
|
|
18,213
|
|
||||
Total debt securities carried at fair value
(2)
|
298,190
|
|
|
4,703
|
|
|
(560
|
)
|
|
302,333
|
|
||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities
|
97,978
|
|
|
1,244
|
|
|
(147
|
)
|
|
99,075
|
|
||||
Total debt securities
|
$
|
396,168
|
|
|
$
|
5,947
|
|
|
$
|
(707
|
)
|
|
$
|
401,408
|
|
Available-for-sale marketable equity securities
(3)
|
$
|
326
|
|
|
$
|
56
|
|
|
$
|
(11
|
)
|
|
$
|
371
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2015
|
||||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Agency
|
$
|
229,847
|
|
|
$
|
788
|
|
|
$
|
(1,688
|
)
|
|
$
|
228,947
|
|
Agency-collateralized mortgage obligations
|
10,930
|
|
|
126
|
|
|
(71
|
)
|
|
10,985
|
|
||||
Commercial
|
7,176
|
|
|
50
|
|
|
(61
|
)
|
|
7,165
|
|
||||
Non-agency residential
(1)
|
3,031
|
|
|
218
|
|
|
(70
|
)
|
|
3,179
|
|
||||
Total mortgage-backed securities
|
250,984
|
|
|
1,182
|
|
|
(1,890
|
)
|
|
250,276
|
|
||||
U.S. Treasury and agency securities
|
25,075
|
|
|
211
|
|
|
(9
|
)
|
|
25,277
|
|
||||
Non-U.S. securities
|
5,743
|
|
|
27
|
|
|
(3
|
)
|
|
5,767
|
|
||||
Other taxable securities, substantially all asset-backed securities
|
10,481
|
|
|
53
|
|
|
(89
|
)
|
|
10,445
|
|
||||
Total taxable securities
|
292,283
|
|
|
1,473
|
|
|
(1,991
|
)
|
|
291,765
|
|
||||
Tax-exempt securities
|
13,978
|
|
|
63
|
|
|
(33
|
)
|
|
14,008
|
|
||||
Total available-for-sale debt securities
|
306,261
|
|
|
1,536
|
|
|
(2,024
|
)
|
|
305,773
|
|
||||
Other debt securities carried at fair value
|
16,678
|
|
|
103
|
|
|
(174
|
)
|
|
16,607
|
|
||||
Total debt securities carried at fair value
(2)
|
322,939
|
|
|
1,639
|
|
|
(2,198
|
)
|
|
322,380
|
|
||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities
|
84,625
|
|
|
271
|
|
|
(850
|
)
|
|
84,046
|
|
||||
Total debt securities
|
$
|
407,564
|
|
|
$
|
1,910
|
|
|
$
|
(3,048
|
)
|
|
$
|
406,426
|
|
Available-for-sale marketable equity securities
(3)
|
$
|
326
|
|
|
$
|
99
|
|
|
$
|
—
|
|
|
$
|
425
|
|
(1)
|
At
March 31, 2016
and
December 31, 2015
, the underlying collateral type included approximately
57 percent
and
71 percent
prime,
23 percent
and
15 percent
Alt-A, and
20 percent
and
14 percent
subprime.
|
(2)
|
The Corporation had debt securities from Fannie Mae (FNMA) and Freddie Mac (FHLMC) that each exceeded 10 percent of shareholders' equity, with an amortized cost of
$144.1 billion
and
$53.7 billion
, and a fair value of
$146.4 billion
and
$54.6 billion
at
March 31, 2016
. Debt securities from FNMA and FHLMC that exceeded 10 percent of shareholders' equity had an amortized cost of
$146.2 billion
and
$53.4 billion
, and a fair value of
$145.5 billion
and
$53.2 billion
at
December 31, 2015
.
|
(3)
|
Classified in other assets on the Consolidated Balance Sheet.
|
Other Debt Securities Carried at Fair Value
|
|
|
|
||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
Mortgage-backed securities:
|
|
|
|
||||
Agency-collateralized mortgage obligations
|
$
|
6
|
|
|
$
|
7
|
|
Non-agency residential
|
3,323
|
|
|
3,490
|
|
||
Total mortgage-backed securities
|
3,329
|
|
|
3,497
|
|
||
Non-U.S. securities
(1)
|
14,628
|
|
|
12,843
|
|
||
Other taxable securities, substantially all asset-backed securities
|
256
|
|
|
267
|
|
||
Total
|
$
|
18,213
|
|
|
$
|
16,607
|
|
(1)
|
These securities are primarily used to satisfy certain international regulatory liquidity requirements.
|
Gains and Losses on Sales of AFS Debt Securities
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Gross gains
|
$
|
237
|
|
|
$
|
275
|
|
Gross losses
|
(11
|
)
|
|
(7
|
)
|
||
Net gains on sales of AFS debt securities
|
$
|
226
|
|
|
$
|
268
|
|
Income tax expense attributable to realized net gains on sales of AFS debt securities
|
$
|
86
|
|
|
$
|
102
|
|
(1)
|
Includes other-than-temporarily impaired AFS debt securities on which an OTTI loss, primarily related to changes in interest rates, remains in accumulated OCI.
|
Net Credit-related Impairment Losses Recognized in Earnings
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Total OTTI losses
|
$
|
(30
|
)
|
|
$
|
(74
|
)
|
Less: non-credit portion of total OTTI losses recognized in OCI
|
23
|
|
|
4
|
|
||
Net credit-related impairment losses recognized in earnings
|
$
|
(7
|
)
|
|
$
|
(70
|
)
|
Rollforward of OTTI Credit Losses Recognized
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Balance, beginning of period
|
$
|
266
|
|
|
$
|
200
|
|
Additions for credit losses recognized on AFS debt securities that had no previous impairment losses
|
1
|
|
|
14
|
|
||
Additions for credit losses recognized on AFS debt securities that had previously incurred impairment losses
|
6
|
|
|
56
|
|
||
Reductions for AFS debt securities matured, sold or intended to be sold
|
(4
|
)
|
|
(14
|
)
|
||
Balance, March 31
|
$
|
269
|
|
|
$
|
256
|
|
Significant Assumptions
|
||||||||
|
|
|
Range
(1)
|
|||||
|
Weighted-
average
|
|
10th
Percentile
(2)
|
|
90th
Percentile
(2)
|
|||
Annual prepayment speed
|
13.1
|
%
|
|
4.2
|
%
|
|
26.4
|
%
|
Loss severity
|
29.9
|
|
|
12.2
|
|
|
30.5
|
|
Life default rate
|
23.1
|
|
|
0.7
|
|
|
81.7
|
|
(1)
|
Represents the range of inputs/assumptions based upon the underlying collateral.
|
(2)
|
The value of a variable below which the indicated percentile of observations will fall.
|
(1)
|
Average yield is computed using the effective yield of each security at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and excludes the effect of related hedging derivatives.
|
(2)
|
Substantially all U.S. agency MBS.
|
Certain Corporate and Strategic Investments
|
NOTE 4 – Outstanding Loans and Leases
|
|
March 31, 2016
|
|||||||||||||||||||||||
(Dollars in millions)
|
30-59 Days
Past Due (1) |
60-89 Days
Past Due (1) |
90 Days or
More
Past Due
(2)
|
Total Past
Due 30 Days or More
|
Total Current or Less Than 30 Days Past Due
(3)
|
Purchased
Credit - impaired (4) |
Loans Accounted for Under the Fair Value Option
|
Total
Outstandings |
||||||||||||||||
Consumer real estate
|
|
|
|
|
|
|
|
|
||||||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
|
$
|
1,264
|
|
$
|
494
|
|
$
|
3,364
|
|
$
|
5,122
|
|
$
|
140,200
|
|
|
|
$
|
145,322
|
|
||||
Home equity
|
209
|
|
97
|
|
629
|
|
935
|
|
46,538
|
|
|
|
47,473
|
|
||||||||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
(5)
|
1,240
|
|
678
|
|
5,337
|
|
7,255
|
|
20,260
|
|
$
|
11,603
|
|
|
39,118
|
|
||||||||
Home equity
|
296
|
|
140
|
|
929
|
|
1,365
|
|
20,565
|
|
4,368
|
|
|
26,298
|
|
|||||||||
Credit card and other consumer
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. credit card
|
416
|
|
289
|
|
743
|
|
1,448
|
|
84,955
|
|
|
|
86,403
|
|
||||||||||
Non-U.S. credit card
|
38
|
|
27
|
|
77
|
|
142
|
|
9,835
|
|
|
|
9,977
|
|
||||||||||
Direct/Indirect consumer
(6)
|
182
|
|
54
|
|
38
|
|
274
|
|
90,335
|
|
|
|
90,609
|
|
||||||||||
Other consumer
(7)
|
15
|
|
3
|
|
3
|
|
21
|
|
2,155
|
|
|
|
2,176
|
|
||||||||||
Total consumer
|
3,660
|
|
1,782
|
|
11,120
|
|
16,562
|
|
414,843
|
|
15,971
|
|
|
447,376
|
|
|||||||||
Consumer loans accounted for under the fair value option
(8)
|
|
|
|
|
|
|
$
|
1,946
|
|
1,946
|
|
|||||||||||||
Total consumer loans and leases
|
3,660
|
|
1,782
|
|
11,120
|
|
16,562
|
|
414,843
|
|
15,971
|
|
1,946
|
|
449,322
|
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. commercial
|
412
|
|
175
|
|
320
|
|
907
|
|
259,795
|
|
|
|
260,702
|
|
||||||||||
Commercial real estate
(9)
|
55
|
|
9
|
|
69
|
|
133
|
|
57,927
|
|
|
|
58,060
|
|
||||||||||
Commercial lease financing
|
195
|
|
10
|
|
19
|
|
224
|
|
20,733
|
|
|
|
20,957
|
|
||||||||||
Non-U.S. commercial
|
14
|
|
14
|
|
2
|
|
30
|
|
92,842
|
|
|
|
92,872
|
|
||||||||||
U.S. small business commercial
|
74
|
|
32
|
|
81
|
|
187
|
|
12,747
|
|
|
|
12,934
|
|
||||||||||
Total commercial
|
750
|
|
240
|
|
491
|
|
1,481
|
|
444,044
|
|
|
|
445,525
|
|
||||||||||
Commercial loans accounted for under the fair value option
(8)
|
|
|
|
|
|
|
6,266
|
|
6,266
|
|
||||||||||||||
Total commercial loans and leases
|
750
|
|
240
|
|
491
|
|
1,481
|
|
444,044
|
|
|
6,266
|
|
451,791
|
|
|||||||||
Total loans and leases
(10)
|
$
|
4,410
|
|
$
|
2,022
|
|
$
|
11,611
|
|
$
|
18,043
|
|
$
|
858,887
|
|
$
|
15,971
|
|
$
|
8,212
|
|
$
|
901,113
|
|
Percentage of outstandings
|
0.49
|
%
|
0.22
|
%
|
1.29
|
%
|
2.00
|
%
|
95.32
|
%
|
1.77
|
%
|
0.91
|
%
|
100.00
|
%
|
(1)
|
Consumer real estate loans 30-59 days past due includes fully-insured loans of
$1.1 billion
and nonperforming loans of
$320 million
. Consumer real estate loans 60-89 days past due includes fully-insured loans of
$728 million
and nonperforming loans of
$265 million
.
|
(2)
|
Consumer real estate includes fully-insured loans of
$6.3 billion
.
|
(3)
|
Consumer real estate includes
$2.7 billion
and direct/indirect consumer includes
$20 million
of nonperforming loans.
|
(4)
|
PCI loan amounts are shown gross of the valuation allowance.
|
(5)
|
Total outstandings includes pay option loans of
$2.2 billion
. The Corporation no longer originates this product.
|
(6)
|
Total outstandings includes auto and specialty lending loans of
$45.4 billion
, unsecured consumer lending loans of
$774 million
, U.S. securities-based lending loans of
$39.2 billion
, non-U.S. consumer loans of
$3.7 billion
, student loans of
$547 million
and other consumer loans of
$1.0 billion
.
|
(7)
|
Total outstandings includes consumer finance loans of
$538 million
, consumer leases of
$1.5 billion
and consumer overdrafts of
$154 million
.
|
(8)
|
Consumer loans accounted for under the fair value option were residential mortgage loans of
$1.6 billion
and home equity loans of
$348 million
. Commercial loans accounted for under the fair value option were U.S. commercial loans of
$2.6 billion
and non-U.S. commercial loans of
$3.7 billion
. For additional information, see
Note 14 – Fair Value Measurements
and
Note 15 – Fair Value Option
.
|
(9)
|
Total outstandings includes U.S. commercial real estate loans of
$54.5 billion
and non-U.S. commercial real estate loans of
$3.5 billion
.
|
(10)
|
The Corporation pledged
$150.4 billion
of loans to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Banks. This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.
|
|
December 31, 2015
|
|||||||||||||||||||||||
(Dollars in millions)
|
30-59 Days
Past Due (1) |
60-89 Days
Past Due (1) |
90 Days or
More
Past Due
(2)
|
Total Past
Due 30 Days or More
|
Total Current or Less Than 30 Days Past Due
(3)
|
Purchased
Credit - impaired (4) |
Loans
Accounted
for Under
the Fair
Value Option |
Total
Outstandings |
||||||||||||||||
Consumer real estate
|
|
|
|
|
|
|
|
|
||||||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
|
$
|
1,603
|
|
$
|
645
|
|
$
|
3,834
|
|
$
|
6,082
|
|
$
|
139,763
|
|
|
|
$
|
145,845
|
|
||||
Home equity
|
225
|
|
104
|
|
719
|
|
1,048
|
|
47,216
|
|
|
|
48,264
|
|
||||||||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
(5)
|
1,656
|
|
890
|
|
6,019
|
|
8,565
|
|
21,435
|
|
$
|
12,066
|
|
|
42,066
|
|
||||||||
Home equity
|
310
|
|
163
|
|
1,030
|
|
1,503
|
|
21,562
|
|
4,619
|
|
|
27,684
|
|
|||||||||
Credit card and other consumer
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. credit card
|
454
|
|
332
|
|
789
|
|
1,575
|
|
88,027
|
|
|
|
89,602
|
|
||||||||||
Non-U.S. credit card
|
39
|
|
31
|
|
76
|
|
146
|
|
9,829
|
|
|
|
9,975
|
|
||||||||||
Direct/Indirect consumer
(6)
|
227
|
|
62
|
|
42
|
|
331
|
|
88,464
|
|
|
|
88,795
|
|
||||||||||
Other consumer
(7)
|
18
|
|
3
|
|
4
|
|
25
|
|
2,042
|
|
|
|
2,067
|
|
||||||||||
Total consumer
|
4,532
|
|
2,230
|
|
12,513
|
|
19,275
|
|
418,338
|
|
16,685
|
|
|
454,298
|
|
|||||||||
Consumer loans accounted for under the fair value option
(8)
|
|
|
|
|
|
|
$
|
1,871
|
|
1,871
|
|
|||||||||||||
Total consumer loans and leases
|
4,532
|
|
2,230
|
|
12,513
|
|
19,275
|
|
418,338
|
|
16,685
|
|
1,871
|
|
456,169
|
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. commercial
|
444
|
|
148
|
|
332
|
|
924
|
|
251,847
|
|
|
|
252,771
|
|
||||||||||
Commercial real estate
(9)
|
36
|
|
11
|
|
82
|
|
129
|
|
57,070
|
|
|
|
57,199
|
|
||||||||||
Commercial lease financing
|
150
|
|
29
|
|
20
|
|
199
|
|
21,153
|
|
|
|
21,352
|
|
||||||||||
Non-U.S. commercial
|
6
|
|
1
|
|
1
|
|
8
|
|
91,541
|
|
|
|
91,549
|
|
||||||||||
U.S. small business commercial
|
83
|
|
41
|
|
72
|
|
196
|
|
12,680
|
|
|
|
12,876
|
|
||||||||||
Total commercial
|
719
|
|
230
|
|
507
|
|
1,456
|
|
434,291
|
|
|
|
435,747
|
|
||||||||||
Commercial loans accounted for under the fair value option
(8)
|
|
|
|
|
|
|
5,067
|
|
5,067
|
|
||||||||||||||
Total commercial loans and leases
|
719
|
|
230
|
|
507
|
|
1,456
|
|
434,291
|
|
|
5,067
|
|
440,814
|
|
|||||||||
Total loans and leases
(10)
|
$
|
5,251
|
|
$
|
2,460
|
|
$
|
13,020
|
|
$
|
20,731
|
|
$
|
852,629
|
|
$
|
16,685
|
|
$
|
6,938
|
|
$
|
896,983
|
|
Percentage of outstandings
|
0.59
|
%
|
0.27
|
%
|
1.45
|
%
|
2.31
|
%
|
95.06
|
%
|
1.86
|
%
|
0.77
|
%
|
100.00
|
%
|
(1)
|
Consumer real estate loans 30-59 days past due includes fully-insured loans of
$1.7 billion
and nonperforming loans of
$379 million
. Consumer real estate loans 60-89 days past due includes fully-insured loans of
$1.0 billion
and nonperforming loans of
$297 million
.
|
(2)
|
Consumer real estate includes fully-insured loans of
$7.2 billion
.
|
(3)
|
Consumer real estate includes
$3.0 billion
and direct/indirect consumer includes
$21 million
of nonperforming loans.
|
(4)
|
PCI loan amounts are shown gross of the valuation allowance.
|
(5)
|
Total outstandings includes pay option loans of
$2.3 billion
. The Corporation no longer originates this product.
|
(6)
|
Total outstandings includes auto and specialty lending loans of
$42.6 billion
, unsecured consumer lending loans of
$886 million
, U.S. securities-based lending loans of
$39.8 billion
, non-U.S. consumer loans of
$3.9 billion
, student loans of
$564 million
and other consumer loans of
$1.0 billion
.
|
(7)
|
Total outstandings includes consumer finance loans of
$564 million
, consumer leases of
$1.4 billion
and consumer overdrafts of
$146 million
.
|
(8)
|
Consumer loans accounted for under the fair value option were residential mortgage loans of
$1.6 billion
and home equity loans of
$250 million
. Commercial loans accounted for under the fair value option were U.S. commercial loans of
$2.3 billion
and non-U.S. commercial loans of
$2.8 billion
. For additional information, see
Note 14 – Fair Value Measurements
and
Note 15 – Fair Value Option
.
|
(9)
|
Total outstandings includes U.S. commercial real estate loans of
$53.6 billion
and non-U.S. commercial real estate loans of
$3.5 billion
.
|
(10)
|
The Corporation pledged
$149.4 billion
of loans to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Banks. This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.
|
Nonperforming Loans and Leases
|
Credit Quality
|
|
|
|
|
|
|
|
||||||||
|
Nonperforming Loans and Leases
|
|
Accruing Past Due 90 Days or More
|
||||||||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
|
March 31
2016 |
|
December 31
2015 |
||||||||
Consumer real estate
|
|
|
|
|
|
|
|
||||||||
Core portfolio
|
|
|
|
|
|
|
|
||||||||
Residential mortgage
(1)
|
$
|
1,616
|
|
|
$
|
1,845
|
|
|
$
|
2,302
|
|
|
$
|
2,645
|
|
Home equity
|
1,310
|
|
|
1,354
|
|
|
—
|
|
|
—
|
|
||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
||||||||
Residential mortgage
(1)
|
2,360
|
|
|
2,958
|
|
|
4,032
|
|
|
4,505
|
|
||||
Home equity
|
1,934
|
|
|
1,983
|
|
|
—
|
|
|
—
|
|
||||
Credit card and other consumer
|
|
|
|
|
|
|
|
||||||||
U.S. credit card
|
n/a
|
|
|
n/a
|
|
|
743
|
|
|
789
|
|
||||
Non-U.S. credit card
|
n/a
|
|
|
n/a
|
|
|
77
|
|
|
76
|
|
||||
Direct/Indirect consumer
|
26
|
|
|
24
|
|
|
31
|
|
|
39
|
|
||||
Other consumer
|
1
|
|
|
1
|
|
|
2
|
|
|
3
|
|
||||
Total consumer
|
7,247
|
|
|
8,165
|
|
|
7,187
|
|
|
8,057
|
|
||||
Commercial
|
|
|
|
|
|
|
|
||||||||
U.S. commercial
|
1,236
|
|
|
867
|
|
|
85
|
|
|
113
|
|
||||
Commercial real estate
|
91
|
|
|
93
|
|
|
—
|
|
|
3
|
|
||||
Commercial lease financing
|
29
|
|
|
12
|
|
|
13
|
|
|
15
|
|
||||
Non-U.S. commercial
|
165
|
|
|
158
|
|
|
2
|
|
|
1
|
|
||||
U.S. small business commercial
|
82
|
|
|
82
|
|
|
60
|
|
|
61
|
|
||||
Total commercial
|
1,603
|
|
|
1,212
|
|
|
160
|
|
|
193
|
|
||||
Total loans and leases
|
$
|
8,850
|
|
|
$
|
9,377
|
|
|
$
|
7,347
|
|
|
$
|
8,250
|
|
(1)
|
Residential mortgage loans in the Core and Legacy Assets & Servicing portfolios accruing past due 90 days or more are fully-insured loans. At
March 31, 2016
and
December 31, 2015
, residential mortgage includes
$3.4 billion
and
$4.3 billion
of loans on which interest has been curtailed by the Federal Housing Administration (FHA), and therefore are no longer accruing interest, although principal is still insured, and
$2.9 billion
and
$2.9 billion
of loans on which interest is still accruing.
|
Credit Quality Indicators
|
Consumer Real Estate – Credit Quality Indicators
(1)
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2016
|
|||||||||||||||||
(Dollars in millions)
|
Core Portfolio Residential Mortgage
(2)
|
Legacy Assets & Servicing Residential Mortgage
(2)
|
Residential
Mortgage PCI (3) |
Core Portfolio Home Equity
(2)
|
Legacy Assets & Servicing Home Equity
(2)
|
Home
Equity PCI
|
||||||||||||
Refreshed LTV
(4)
|
|
|
|
|
|
|
||||||||||||
Less than or equal to 90 percent
|
$
|
112,721
|
|
$
|
15,636
|
|
$
|
8,247
|
|
$
|
43,534
|
|
$
|
14,925
|
|
$
|
1,882
|
|
Greater than 90 percent but less than or equal to 100 percent
|
4,153
|
|
1,863
|
|
1,228
|
|
1,545
|
|
2,290
|
|
786
|
|
||||||
Greater than 100 percent
|
2,633
|
|
2,992
|
|
2,128
|
|
2,394
|
|
4,715
|
|
1,700
|
|
||||||
Fully-insured loans
(5)
|
25,815
|
|
7,024
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total consumer real estate
|
$
|
145,322
|
|
$
|
27,515
|
|
$
|
11,603
|
|
$
|
47,473
|
|
$
|
21,930
|
|
$
|
4,368
|
|
Refreshed FICO score
|
|
|
|
|
|
|
||||||||||||
Less than 620
|
$
|
3,259
|
|
$
|
3,845
|
|
$
|
3,497
|
|
$
|
1,817
|
|
$
|
2,640
|
|
$
|
678
|
|
Greater than or equal to 620 and less than 680
|
5,549
|
|
3,181
|
|
2,519
|
|
3,174
|
|
3,639
|
|
773
|
|
||||||
Greater than or equal to 680 and less than 740
|
21,959
|
|
5,346
|
|
3,155
|
|
8,891
|
|
6,182
|
|
1,281
|
|
||||||
Greater than or equal to 740
|
88,740
|
|
8,119
|
|
2,432
|
|
33,591
|
|
9,469
|
|
1,636
|
|
||||||
Fully-insured loans
(5)
|
25,815
|
|
7,024
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total consumer real estate
|
$
|
145,322
|
|
$
|
27,515
|
|
$
|
11,603
|
|
$
|
47,473
|
|
$
|
21,930
|
|
$
|
4,368
|
|
(1)
|
Excludes
$1.9 billion
of loans accounted for under the fair value option.
|
(2)
|
Excludes PCI loans.
|
(3)
|
Includes
$1.9 billion
of pay option loans. The Corporation no longer originates this product.
|
(4)
|
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
|
(5)
|
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
|
(1)
|
At
March 31, 2016
,
25 percent
of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
|
(2)
|
Other internal credit metrics may include delinquency status, geography or other factors.
|
(3)
|
Direct/indirect consumer includes
$42.9 billion
of securities-based lending which is overcollateralized and therefore has minimal credit risk and
$550 million
of loans the Corporation no longer originates, primarily student loans.
|
(4)
|
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At
March 31, 2016
,
98 percent
of this portfolio was current or less than 30 days past due,
one percent
was 30-89 days past due and
one percent
was 90 days or more past due.
|
Commercial – Credit Quality Indicators (1)
|
|||||||||||||||||||
|
March 31, 2016
|
||||||||||||||||||
(Dollars in millions)
|
U.S.
Commercial |
|
Commercial
Real Estate
|
|
Commercial
Lease Financing |
|
Non-U.S.
Commercial |
|
U.S. Small
Business Commercial (2) |
||||||||||
Risk ratings
|
|
|
|
|
|
|
|
|
|
||||||||||
Pass rated
|
$
|
249,399
|
|
|
$
|
57,584
|
|
|
$
|
20,154
|
|
|
$
|
89,138
|
|
|
$
|
524
|
|
Reservable criticized
|
11,303
|
|
|
476
|
|
|
803
|
|
|
3,734
|
|
|
87
|
|
|||||
Refreshed FICO score
(3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Less than 620
|
|
|
|
|
|
|
|
|
187
|
|
|||||||||
Greater than or equal to 620 and less than 680
|
|
|
|
|
|
|
|
|
550
|
|
|||||||||
Greater than or equal to 680 and less than 740
|
|
|
|
|
|
|
|
|
1,657
|
|
|||||||||
Greater than or equal to 740
|
|
|
|
|
|
|
|
|
3,141
|
|
|||||||||
Other internal credit metrics
(3, 4)
|
|
|
|
|
|
|
|
|
6,788
|
|
|||||||||
Total commercial
|
$
|
260,702
|
|
|
$
|
58,060
|
|
|
$
|
20,957
|
|
|
$
|
92,872
|
|
|
$
|
12,934
|
|
(1)
|
Excludes
$6.3 billion
of loans accounted for under the fair value option.
|
(2)
|
U.S. small business commercial includes
$681 million
of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At
March 31, 2016
,
98 percent
of the balances where internal credit metrics are used was current or less than 30 days past due.
|
(3)
|
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
|
(4)
|
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
|
Consumer Real Estate – Credit Quality Indicators
(1)
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2015
|
|||||||||||||||||
(Dollars in millions)
|
Core Portfolio
Residential Mortgage (2) |
Legacy Assets & Servicing
Residential Mortgage (2) |
Residential
Mortgage PCI (3) |
Core Portfolio Home Equity
(2)
|
Legacy Assets & Servicing Home
Equity (2) |
Home
Equity PCI
|
||||||||||||
Refreshed LTV
(4)
|
|
|
|
|
|
|
||||||||||||
Less than or equal to 90 percent
|
$
|
109,869
|
|
$
|
16,646
|
|
$
|
8,655
|
|
$
|
44,006
|
|
$
|
15,666
|
|
$
|
2,003
|
|
Greater than 90 percent but less than or equal to 100 percent
|
4,251
|
|
2,007
|
|
1,403
|
|
1,652
|
|
2,382
|
|
852
|
|
||||||
Greater than 100 percent
|
2,783
|
|
3,212
|
|
2,008
|
|
2,606
|
|
5,017
|
|
1,764
|
|
||||||
Fully-insured loans
(5)
|
28,942
|
|
8,135
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total consumer real estate
|
$
|
145,845
|
|
$
|
30,000
|
|
$
|
12,066
|
|
$
|
48,264
|
|
$
|
23,065
|
|
$
|
4,619
|
|
Refreshed FICO score
|
|
|
|
|
|
|
||||||||||||
Less than 620
|
$
|
3,465
|
|
$
|
4,408
|
|
$
|
3,798
|
|
$
|
1,898
|
|
$
|
2,785
|
|
$
|
729
|
|
Greater than or equal to 620 and less than 680
|
5,792
|
|
3,438
|
|
2,586
|
|
3,242
|
|
3,817
|
|
825
|
|
||||||
Greater than or equal to 680 and less than 740
|
22,017
|
|
5,605
|
|
3,187
|
|
9,203
|
|
6,527
|
|
1,356
|
|
||||||
Greater than or equal to 740
|
85,629
|
|
8,414
|
|
2,495
|
|
33,921
|
|
9,936
|
|
1,709
|
|
||||||
Fully-insured loans
(5)
|
28,942
|
|
8,135
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total consumer real estate
|
$
|
145,845
|
|
$
|
30,000
|
|
$
|
12,066
|
|
$
|
48,264
|
|
$
|
23,065
|
|
$
|
4,619
|
|
(1)
|
Excludes
$1.9 billion
of loans accounted for under the fair value option.
|
(2)
|
Excludes PCI loans.
|
(3)
|
Includes
$2.0 billion
of pay option loans. The Corporation no longer originates this product.
|
(4)
|
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
|
(5)
|
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
|
(1)
|
At
December 31, 2015
,
27 percent
of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
|
(2)
|
Other internal credit metrics may include delinquency status, geography or other factors.
|
(3)
|
Direct/indirect consumer includes
$43.7 billion
of securities-based lending which is overcollateralized and therefore has minimal credit risk and
$567 million
of loans the Corporation no longer originates, primarily student loans.
|
(4)
|
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At
December 31, 2015
,
98 percent
of this portfolio was current or less than 30 days past due,
one percent
was 30-89 days past due and
one percent
was 90 days or more past due.
|
Commercial – Credit Quality Indicators
(1)
|
|||||||||||||||||||
|
December 31, 2015
|
||||||||||||||||||
(Dollars in millions)
|
U.S.
Commercial |
|
Commercial
Real Estate
|
|
Commercial
Lease Financing |
|
Non-U.S.
Commercial |
|
U.S. Small
Business Commercial (2) |
||||||||||
Risk ratings
|
|
|
|
|
|
|
|
|
|
||||||||||
Pass rated
|
$
|
243,922
|
|
|
$
|
56,688
|
|
|
$
|
20,644
|
|
|
$
|
87,905
|
|
|
$
|
571
|
|
Reservable criticized
|
8,849
|
|
|
511
|
|
|
708
|
|
|
3,644
|
|
|
96
|
|
|||||
Refreshed FICO score
(3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Less than 620
|
|
|
|
|
|
|
|
|
184
|
|
|||||||||
Greater than or equal to 620 and less than 680
|
|
|
|
|
|
|
|
|
543
|
|
|||||||||
Greater than or equal to 680 and less than 740
|
|
|
|
|
|
|
|
|
1,627
|
|
|||||||||
Greater than or equal to 740
|
|
|
|
|
|
|
|
|
3,027
|
|
|||||||||
Other internal credit metrics
(3, 4)
|
|
|
|
|
|
|
|
|
6,828
|
|
|||||||||
Total commercial
|
$
|
252,771
|
|
|
$
|
57,199
|
|
|
$
|
21,352
|
|
|
$
|
91,549
|
|
|
$
|
12,876
|
|
(1)
|
Excludes
$5.1 billion
of loans accounted for under the fair value option.
|
(2)
|
U.S. small business commercial includes
$670 million
of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At
December 31, 2015
,
98 percent
of the balances where internal credit metrics are used was current or less than 30 days past due.
|
(3)
|
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
|
(4)
|
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
|
Impaired Loans and Troubled Debt Restructurings
|
Impaired Loans – Consumer Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
||||||||||||||||||||
|
|
|
|
March 31, 2016
|
|
2016
|
|
2015
|
||||||||||||||||||||||
(Dollars in millions)
|
|
|
|
Unpaid
Principal Balance |
|
Carrying
Value |
|
Related
Allowance |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
|
|
|
$
|
13,356
|
|
|
$
|
10,581
|
|
|
$
|
—
|
|
|
$
|
11,418
|
|
|
$
|
94
|
|
|
$
|
15,393
|
|
|
$
|
108
|
|
Home equity
|
|
|
|
3,586
|
|
|
1,806
|
|
|
—
|
|
|
1,808
|
|
|
13
|
|
|
1,692
|
|
|
25
|
|
|||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
|
|
|
$
|
5,811
|
|
|
$
|
5,675
|
|
|
$
|
348
|
|
|
$
|
6,072
|
|
|
$
|
51
|
|
|
$
|
7,586
|
|
|
$
|
64
|
|
Home equity
|
|
|
|
1,036
|
|
|
913
|
|
|
202
|
|
|
898
|
|
|
6
|
|
|
714
|
|
|
7
|
|
|||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
|
|
|
$
|
19,167
|
|
|
$
|
16,256
|
|
|
$
|
348
|
|
|
$
|
17,490
|
|
|
$
|
145
|
|
|
$
|
22,979
|
|
|
$
|
172
|
|
Home equity
|
|
|
|
4,622
|
|
|
2,719
|
|
|
202
|
|
|
2,706
|
|
|
19
|
|
|
2,406
|
|
|
32
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
|
|
|
$
|
14,888
|
|
|
$
|
11,901
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Home equity
|
|
|
|
3,545
|
|
|
1,775
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|||||||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
|
|
|
$
|
6,624
|
|
|
$
|
6,471
|
|
|
$
|
399
|
|
|
|
|
|
|
|
|
|
||||||||
Home equity
|
|
|
|
1,047
|
|
|
911
|
|
|
235
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
|
|
|
$
|
21,512
|
|
|
$
|
18,372
|
|
|
$
|
399
|
|
|
|
|
|
|
|
|
|
||||||||
Home equity
|
|
|
|
4,592
|
|
|
2,686
|
|
|
235
|
|
|
|
|
|
|
|
|
|
(1)
|
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
|
(1)
|
During the
three months ended March 31, 2016 and 2015
, the Corporation forgave principal of
$10 million
and
$159 million
related to residential mortgage loans in connection with TDRs.
|
(2)
|
The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.
|
(3)
|
Net charge-offs include amounts recorded on loans modified during the period that are no longer held by the Corporation at
March 31, 2016 and 2015
due to sales and other dispositions.
|
Consumer Real Estate – Modification Programs
|
|||||||||||
|
TDRs Entered into During the
Three Months Ended March 31, 2016
|
||||||||||
(Dollars in millions)
|
Residential Mortgage
|
|
Home
Equity
|
|
Total Carrying Value
|
||||||
Modifications under government programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
$
|
22
|
|
|
$
|
5
|
|
|
$
|
27
|
|
Principal and/or interest forbearance
|
—
|
|
|
2
|
|
|
2
|
|
|||
Other modifications
(1)
|
9
|
|
|
—
|
|
|
9
|
|
|||
Total modifications under government programs
|
31
|
|
|
7
|
|
|
38
|
|
|||
Modifications under proprietary programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
12
|
|
|
1
|
|
|
13
|
|
|||
Capitalization of past due amounts
|
7
|
|
|
1
|
|
|
8
|
|
|||
Principal and/or interest forbearance
|
3
|
|
|
—
|
|
|
3
|
|
|||
Other modifications
(1)
|
1
|
|
|
1
|
|
|
2
|
|
|||
Total modifications under proprietary programs
|
23
|
|
|
3
|
|
|
26
|
|
|||
Trial modifications
|
368
|
|
|
149
|
|
|
517
|
|
|||
Loans discharged in Chapter 7 bankruptcy
(2)
|
66
|
|
|
22
|
|
|
88
|
|
|||
Total modifications
|
$
|
488
|
|
|
$
|
181
|
|
|
$
|
669
|
|
|
|
|
|
|
|
||||||
|
TDRs Entered into During the
Three Months Ended March 31, 2015 |
||||||||||
Modifications under government programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
$
|
76
|
|
|
$
|
11
|
|
|
$
|
87
|
|
Principal and/or interest forbearance
|
—
|
|
|
3
|
|
|
3
|
|
|||
Other modifications
(1)
|
15
|
|
|
—
|
|
|
15
|
|
|||
Total modifications under government programs
|
91
|
|
|
14
|
|
|
105
|
|
|||
Modifications under proprietary programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
50
|
|
|
2
|
|
|
52
|
|
|||
Capitalization of past due amounts
|
30
|
|
|
2
|
|
|
32
|
|
|||
Principal and/or interest forbearance
|
11
|
|
|
2
|
|
|
13
|
|
|||
Other modifications
(1)
|
7
|
|
|
25
|
|
|
32
|
|
|||
Total modifications under proprietary programs
|
98
|
|
|
31
|
|
|
129
|
|
|||
Trial modifications
|
1,340
|
|
|
96
|
|
|
1,436
|
|
|||
Loans discharged in Chapter 7 bankruptcy
(2)
|
111
|
|
|
43
|
|
|
154
|
|
|||
Total modifications
|
$
|
1,640
|
|
|
$
|
184
|
|
|
$
|
1,824
|
|
(1)
|
Includes other modifications such as term or payment extensions and repayment plans.
|
(2)
|
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
|
|
|
|
|
|
|
(1)
|
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
|
(2)
|
Includes
$1.4 billion
for the
three months ended March 31, 2015
of trial modification offers made in connection with the August 2014 Department of Justice settlement to which the customer did not respond.
|
(1)
|
Includes accrued interest and fees.
|
(2)
|
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
|
Credit Card and Other Consumer – Renegotiated TDRs by Program Type
|
||||||||||||||||||||||||||||||||
|
Internal Programs
|
|
External Programs
|
|
Other
(1)
|
|
Total
|
|
Percent of Balances Current or
Less Than 30 Days Past Due |
|||||||||||||||||||||||
(Dollars in millions)
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
||||||||||||||||||
U.S. credit card
|
$
|
283
|
|
$
|
313
|
|
|
$
|
284
|
|
$
|
296
|
|
|
$
|
2
|
|
$
|
2
|
|
|
$
|
569
|
|
$
|
611
|
|
|
89.54
|
%
|
88.74
|
%
|
Non-U.S. credit card
|
18
|
|
21
|
|
|
9
|
|
10
|
|
|
92
|
|
95
|
|
|
119
|
|
126
|
|
|
43.22
|
|
44.25
|
|
||||||||
Direct/Indirect consumer
|
7
|
|
11
|
|
|
5
|
|
7
|
|
|
22
|
|
24
|
|
|
34
|
|
42
|
|
|
89.74
|
|
89.12
|
|
||||||||
Total renegotiated TDRs
|
$
|
308
|
|
$
|
345
|
|
|
$
|
298
|
|
$
|
313
|
|
|
$
|
116
|
|
$
|
121
|
|
|
$
|
722
|
|
$
|
779
|
|
|
81.91
|
|
81.55
|
|
(1)
|
Other TDRs for non-U.S. credit card include modifications of accounts that are ineligible for a fixed payment plan.
|
(1)
|
Includes accrued interest and fees.
|
Impaired Loans – Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
Three Months Ended March 31
|
||||||||||||||||||||||||
|
|
|
|
March 31, 2016
|
|
2016
|
|
2015
|
||||||||||||||||||||||
(Dollars in millions)
|
|
|
|
Unpaid
Principal Balance |
|
Carrying
Value |
|
Related
Allowance |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
|
|
|
$
|
649
|
|
|
$
|
624
|
|
|
$
|
—
|
|
|
$
|
583
|
|
|
$
|
2
|
|
|
$
|
628
|
|
|
$
|
3
|
|
Commercial real estate
|
|
|
|
82
|
|
|
76
|
|
|
—
|
|
|
77
|
|
|
—
|
|
|
71
|
|
|
1
|
|
|||||||
Non-U.S. commercial
|
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
|
|
|
$
|
1,978
|
|
|
$
|
1,648
|
|
|
$
|
168
|
|
|
$
|
1,439
|
|
|
$
|
14
|
|
|
$
|
818
|
|
|
$
|
13
|
|
Commercial real estate
|
|
|
|
318
|
|
|
98
|
|
|
13
|
|
|
104
|
|
|
1
|
|
|
332
|
|
|
3
|
|
|||||||
Non-U.S. commercial
|
|
|
|
472
|
|
|
354
|
|
|
69
|
|
|
368
|
|
|
3
|
|
|
66
|
|
|
1
|
|
|||||||
U.S. small business commercial
(1)
|
|
|
|
109
|
|
|
98
|
|
|
35
|
|
|
102
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
|
|
|
$
|
2,627
|
|
|
$
|
2,272
|
|
|
$
|
168
|
|
|
$
|
2,022
|
|
|
$
|
16
|
|
|
$
|
1,446
|
|
|
$
|
16
|
|
Commercial real estate
|
|
|
|
400
|
|
|
174
|
|
|
13
|
|
|
181
|
|
|
1
|
|
|
403
|
|
|
4
|
|
|||||||
Non-U.S. commercial
|
|
|
|
477
|
|
|
359
|
|
|
69
|
|
|
373
|
|
|
3
|
|
|
70
|
|
|
1
|
|
|||||||
U.S. small business commercial
(1)
|
|
|
|
109
|
|
|
98
|
|
|
35
|
|
|
102
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
|
|
|
$
|
566
|
|
|
$
|
541
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
|
|
82
|
|
|
77
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. commercial
|
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|||||||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
|
|
|
$
|
1,350
|
|
|
$
|
1,157
|
|
|
$
|
115
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
|
|
328
|
|
|
107
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. commercial
|
|
|
|
531
|
|
|
381
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. small business commercial
(2)
|
|
|
|
105
|
|
|
101
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
|
|
|
$
|
1,916
|
|
|
$
|
1,698
|
|
|
$
|
115
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
|
|
410
|
|
|
184
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. commercial
|
|
|
|
535
|
|
|
385
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. small business commercial
(2)
|
|
|
|
105
|
|
|
101
|
|
|
35
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes U.S. small business commercial renegotiated TDR loans and related allowance.
|
(2)
|
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
|
(1)
|
U.S. small business commercial TDRs are comprised of renegotiated small business card loans.
|
Purchased Credit-impaired Loans
|
Rollforward of Accretable Yield
|
|||
(Dollars in millions)
|
Three Months Ended March 31, 2016
|
||
Accretable yield, January 1, 2015
|
$
|
5,608
|
|
Accretion
|
(861
|
)
|
|
Disposals/transfers
|
(465
|
)
|
|
Reclassifications from nonaccretable difference
|
287
|
|
|
Accretable yield, December 31, 2015
|
$
|
4,569
|
|
Accretion
|
(192
|
)
|
|
Disposals/transfers
|
(111
|
)
|
|
Reclassifications to nonaccretable difference
|
(16
|
)
|
|
Accretable yield, March 31, 2016
|
$
|
4,250
|
|
Loans Held-for-sale
|
NOTE 5 – Allowance for Credit Losses
|
|
Three Months Ended March 31, 2016
|
||||||||||||||
(Dollars in millions)
|
Consumer Real Estate
|
|
Credit Card
and Other Consumer |
|
Commercial
|
|
Total Allowance
|
||||||||
Allowance for loan and lease losses, January 1
|
$
|
3,914
|
|
|
$
|
3,471
|
|
|
$
|
4,849
|
|
|
$
|
12,234
|
|
Loans and leases charged off
|
(378
|
)
|
|
(912
|
)
|
|
(206
|
)
|
|
(1,496
|
)
|
||||
Recoveries of loans and leases previously charged off
|
175
|
|
|
198
|
|
|
55
|
|
|
428
|
|
||||
Net charge-offs
|
(203
|
)
|
|
(714
|
)
|
|
(151
|
)
|
|
(1,068
|
)
|
||||
Write-offs of PCI loans
|
(105
|
)
|
|
—
|
|
|
—
|
|
|
(105
|
)
|
||||
Provision for loan and lease losses
|
(150
|
)
|
|
552
|
|
|
614
|
|
|
1,016
|
|
||||
Other
(1)
|
—
|
|
|
(7
|
)
|
|
(1
|
)
|
|
(8
|
)
|
||||
Allowance for loan and lease losses, March 31
|
3,456
|
|
|
3,302
|
|
|
5,311
|
|
|
12,069
|
|
||||
Reserve for unfunded lending commitments, January 1
|
—
|
|
|
—
|
|
|
646
|
|
|
646
|
|
||||
Provision for unfunded lending commitments
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(19
|
)
|
||||
Reserve for unfunded lending commitments, March 31
|
—
|
|
|
—
|
|
|
627
|
|
|
627
|
|
||||
Allowance for credit losses, March 31
|
$
|
3,456
|
|
|
$
|
3,302
|
|
|
$
|
5,938
|
|
|
$
|
12,696
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31, 2015
|
||||||||||||||
Allowance for loan and lease losses, January 1
|
$
|
5,935
|
|
|
$
|
4,047
|
|
|
$
|
4,437
|
|
|
$
|
14,419
|
|
Loans and leases charged off
|
(552
|
)
|
|
(964
|
)
|
|
(129
|
)
|
|
(1,645
|
)
|
||||
Recoveries of loans and leases previously charged off
|
183
|
|
|
216
|
|
|
52
|
|
|
451
|
|
||||
Net charge-offs
|
(369
|
)
|
|
(748
|
)
|
|
(77
|
)
|
|
(1,194
|
)
|
||||
Write-offs of PCI loans
|
(288
|
)
|
|
—
|
|
|
—
|
|
|
(288
|
)
|
||||
Provision for loan and lease losses
|
(28
|
)
|
|
647
|
|
|
137
|
|
|
756
|
|
||||
Other
(1)
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||
Allowance for loan and lease losses, March 31
|
5,250
|
|
|
3,929
|
|
|
4,497
|
|
|
13,676
|
|
||||
Reserve for unfunded lending commitments, January 1
|
—
|
|
|
—
|
|
|
528
|
|
|
528
|
|
||||
Provision for unfunded lending commitments
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
||||
Reserve for unfunded lending commitments, March 31
|
—
|
|
|
—
|
|
|
537
|
|
|
537
|
|
||||
Allowance for credit losses, March 31
|
$
|
5,250
|
|
|
$
|
3,929
|
|
|
$
|
5,034
|
|
|
$
|
14,213
|
|
(1)
|
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments.
|
Allowance and Carrying Value by Portfolio Segment
|
|
|
|
|
|
|
|
||||||||
|
March 31, 2016
|
||||||||||||||
(Dollars in millions)
|
Consumer Real Estate
|
|
Credit Card
and Other Consumer |
|
Commercial
|
|
Total
|
||||||||
Impaired loans and troubled debt restructurings
(1)
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
(2)
|
$
|
550
|
|
|
$
|
208
|
|
|
$
|
285
|
|
|
$
|
1,043
|
|
Carrying value
(3)
|
18,975
|
|
|
722
|
|
|
2,903
|
|
|
22,600
|
|
||||
Allowance as a percentage of carrying value
|
2.90
|
%
|
|
28.81
|
%
|
|
9.82
|
%
|
|
4.62
|
%
|
||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
$
|
2,284
|
|
|
$
|
3,094
|
|
|
$
|
5,026
|
|
|
$
|
10,404
|
|
Carrying value
(3, 4)
|
223,265
|
|
|
188,443
|
|
|
442,622
|
|
|
854,330
|
|
||||
Allowance as a percentage of carrying value
(4)
|
1.02
|
%
|
|
1.64
|
%
|
|
1.14
|
%
|
|
1.22
|
%
|
||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Valuation allowance
|
$
|
622
|
|
|
n/a
|
|
|
n/a
|
|
|
$
|
622
|
|
||
Carrying value gross of valuation allowance
|
15,971
|
|
|
n/a
|
|
|
n/a
|
|
|
15,971
|
|
||||
Valuation allowance as a percentage of carrying value
|
3.89
|
%
|
|
n/a
|
|
|
n/a
|
|
|
3.89
|
%
|
||||
Total
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
$
|
3,456
|
|
|
$
|
3,302
|
|
|
$
|
5,311
|
|
|
$
|
12,069
|
|
Carrying value
(3, 4)
|
258,211
|
|
|
189,165
|
|
|
445,525
|
|
|
892,901
|
|
||||
Allowance as a percentage of carrying value
(4)
|
1.34
|
%
|
|
1.75
|
%
|
|
1.19
|
%
|
|
1.35
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2015
|
||||||||||||||
Impaired loans and troubled debt restructurings
(1)
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
(2)
|
$
|
634
|
|
|
$
|
250
|
|
|
$
|
217
|
|
|
$
|
1,101
|
|
Carrying value
(3)
|
21,058
|
|
|
779
|
|
|
2,368
|
|
|
24,205
|
|
||||
Allowance as a percentage of carrying value
|
3.01
|
%
|
|
32.09
|
%
|
|
9.16
|
%
|
|
4.55
|
%
|
||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
$
|
2,476
|
|
|
$
|
3,221
|
|
|
$
|
4,632
|
|
|
$
|
10,329
|
|
Carrying value
(3, 4)
|
226,116
|
|
|
189,660
|
|
|
433,379
|
|
|
849,155
|
|
||||
Allowance as a percentage of carrying value
(4)
|
1.10
|
%
|
|
1.70
|
%
|
|
1.07
|
%
|
|
1.22
|
%
|
||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Valuation allowance
|
$
|
804
|
|
|
n/a
|
|
|
n/a
|
|
|
$
|
804
|
|
||
Carrying value gross of valuation allowance
|
16,685
|
|
|
n/a
|
|
|
n/a
|
|
|
16,685
|
|
||||
Valuation allowance as a percentage of carrying value
|
4.82
|
%
|
|
n/a
|
|
|
n/a
|
|
|
4.82
|
%
|
||||
Total
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
$
|
3,914
|
|
|
$
|
3,471
|
|
|
$
|
4,849
|
|
|
$
|
12,234
|
|
Carrying value
(3, 4)
|
263,859
|
|
|
190,439
|
|
|
435,747
|
|
|
890,045
|
|
||||
Allowance as a percentage of carrying value
(4)
|
1.48
|
%
|
|
1.82
|
%
|
|
1.11
|
%
|
|
1.37
|
%
|
(1)
|
Impaired loans include nonperforming commercial loans and all TDRs, including both commercial and consumer TDRs. Impaired loans exclude nonperforming consumer loans unless they are TDRs, and all consumer and commercial loans accounted for under the fair value option.
|
(2)
|
Allowance for loan and lease losses includes
$35 million
related to impaired U.S. small business commercial at both
March 31, 2016
and
December 31, 2015
.
|
(3)
|
Amounts are presented gross of the allowance for loan and lease losses.
|
(4)
|
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of
$8.2 billion
and
$6.9 billion
at
March 31, 2016
and
December 31, 2015
.
|
NOTE 6 – Securitizations and Other Variable Interest Entities
|
First-lien Mortgage Securitizations
|
First-lien Mortgage Securitizations
|
|
|
|||||||||||
|
Three Months Ended March 31
|
||||||||||||
|
Residential Mortgage
|
|
|
||||||||||
|
Agency
|
|
Commercial Mortgage
|
||||||||||
(Dollars in millions)
|
2016
|
2015
|
|
2016
|
2015
|
||||||||
Cash proceeds from new securitizations
(1)
|
$
|
7,074
|
|
$
|
7,333
|
|
|
$
|
1,247
|
|
$
|
2,156
|
|
Gain (loss) on securitizations
(2)
|
163
|
|
173
|
|
|
(3
|
)
|
(7
|
)
|
(1)
|
The Corporation transfers residential mortgage loans to securitizations sponsored by the GSEs or GNMA in the normal course of business and receives RMBS in exchange which may then be sold into the market to third-party investors for cash proceeds.
|
(2)
|
A majority of the first-lien residential and commercial 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
$108 million
and
$169 million
, net of hedges, during the
three months ended March 31, 2016 and 2015
, are not included in the table above.
|
First-lien Mortgage VIEs
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Residential Mortgage
|
|
|
|||||||||||||||||||||||||||||||
|
|
|
|
Non-agency
|
|
|
||||||||||||||||||||||||||||
|
Agency
|
|
Prime
|
|
Subprime
|
|
Alt-A
|
|
Commercial Mortgage
|
|||||||||||||||||||||||||
(Dollars in millions)
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
||||||||||||||||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Maximum loss exposure
(1)
|
$
|
27,068
|
|
$
|
28,188
|
|
|
$
|
966
|
|
$
|
1,027
|
|
|
$
|
2,746
|
|
$
|
2,905
|
|
|
$
|
561
|
|
$
|
622
|
|
|
$
|
404
|
|
$
|
326
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Senior securities held
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading account assets
|
$
|
996
|
|
$
|
1,297
|
|
|
$
|
31
|
|
$
|
42
|
|
|
$
|
59
|
|
$
|
94
|
|
|
$
|
73
|
|
$
|
99
|
|
|
$
|
57
|
|
$
|
59
|
|
Debt securities carried at fair value
|
21,974
|
|
24,369
|
|
|
570
|
|
613
|
|
|
2,364
|
|
2,479
|
|
|
327
|
|
340
|
|
|
—
|
|
—
|
|
||||||||||
Held-to-maturity securities
|
4,083
|
|
2,507
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
43
|
|
37
|
|
||||||||||
Subordinate securities held
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading account assets
|
—
|
|
—
|
|
|
1
|
|
1
|
|
|
31
|
|
37
|
|
|
2
|
|
2
|
|
|
88
|
|
22
|
|
||||||||||
Debt securities carried at fair value
|
—
|
|
—
|
|
|
11
|
|
12
|
|
|
2
|
|
3
|
|
|
27
|
|
28
|
|
|
54
|
|
54
|
|
||||||||||
Held-to-maturity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
14
|
|
13
|
|
||||||||||
Residual interests held
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
30
|
|
48
|
|
||||||||||
All other assets
(3)
|
15
|
|
15
|
|
|
36
|
|
40
|
|
|
—
|
|
—
|
|
|
132
|
|
153
|
|
|
—
|
|
—
|
|
||||||||||
Total retained positions
|
$
|
27,068
|
|
$
|
28,188
|
|
|
$
|
649
|
|
$
|
708
|
|
|
$
|
2,456
|
|
$
|
2,613
|
|
|
$
|
561
|
|
$
|
622
|
|
|
$
|
286
|
|
$
|
233
|
|
Principal balance outstanding
(4)
|
$
|
308,996
|
|
$
|
313,613
|
|
|
$
|
15,262
|
|
$
|
16,087
|
|
|
$
|
26,737
|
|
$
|
27,854
|
|
|
$
|
38,976
|
|
$
|
40,848
|
|
|
$
|
30,754
|
|
$
|
34,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Maximum loss exposure
(1)
|
$
|
22,442
|
|
$
|
26,878
|
|
|
$
|
57
|
|
$
|
65
|
|
|
$
|
185
|
|
$
|
232
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading account assets
|
$
|
372
|
|
$
|
1,101
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
188
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
Loans and leases
(5)
|
21,670
|
|
25,328
|
|
|
87
|
|
111
|
|
|
678
|
|
675
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
All other assets
|
401
|
|
449
|
|
|
8
|
|
—
|
|
|
48
|
|
54
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Total assets
|
$
|
22,443
|
|
$
|
26,878
|
|
|
$
|
95
|
|
$
|
111
|
|
|
$
|
726
|
|
$
|
917
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Long-term debt
|
$
|
1
|
|
$
|
—
|
|
|
$
|
38
|
|
$
|
46
|
|
|
$
|
694
|
|
$
|
840
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
All other liabilities
|
1
|
|
1
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Total liabilities
|
$
|
2
|
|
$
|
1
|
|
|
$
|
38
|
|
$
|
46
|
|
|
$
|
694
|
|
$
|
840
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
(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 liability for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations. For additional information, see
Note 7 – Representations and Warranties Obligations and Corporate Guarantees
and
Note 17 – Mortgage Servicing Rights
.
|
(2)
|
As a holder of these securities, the Corporation receives scheduled principal and interest payments. During the
three months ended March 31, 2016 and 2015
, there were
no
OTTI losses recorded on those securities classified as AFS debt securities.
|
(3)
|
Not included in the table above are all other assets of
$169 million
and
$222 million
, representing the unpaid principal balance of mortgage loans eligible for repurchase from unconsolidated residential mortgage securitization vehicles, principally guaranteed by GNMA, and all other liabilities of
$169 million
and
$222 million
, representing the principal amount that would be payable to the securitization vehicles if the Corporation was to exercise the repurchase option, at
March 31, 2016
and
December 31, 2015
.
|
(4)
|
Principal balance outstanding includes loans the Corporation transferred with which it has continuing involvement, which may include servicing the loans.
|
(5)
|
Balance as of
March 31, 2016
includes
$765 million
from consolidated collateralized financing entities that were measured using the fair value of the financial liabilities of those entities as the measurement basis.
|
Other Asset-backed Securitizations
|
Home Equity Loan, Credit Card and Other Asset-backed VIEs
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Home Equity Loan
(1)
|
|
Credit Card
(2, 3)
|
|
Resecuritization Trusts
|
|
Municipal Bond Trusts
|
|
Automobile and Other Securitization Trusts
|
|||||||||||||||||||||||||
(Dollars in millions)
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
|
March 31
2016 |
December 31
2015 |
||||||||||||||||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Maximum loss exposure
|
$
|
3,791
|
|
$
|
3,988
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
11,973
|
|
$
|
13,043
|
|
|
$
|
1,536
|
|
$
|
1,572
|
|
|
$
|
60
|
|
$
|
63
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Senior securities held
(4, 5)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading account assets
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
1,350
|
|
$
|
1,248
|
|
|
$
|
53
|
|
$
|
2
|
|
|
$
|
—
|
|
$
|
—
|
|
Debt securities carried at fair value
|
54
|
|
57
|
|
|
—
|
|
—
|
|
|
3,330
|
|
4,341
|
|
|
—
|
|
—
|
|
|
51
|
|
53
|
|
||||||||||
Held-to-maturity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
7,207
|
|
7,367
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Subordinate securities held
(4, 5)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading account assets
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
16
|
|
17
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Debt securities carried at fair value
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
70
|
|
70
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
All other assets
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
9
|
|
10
|
|
||||||||||
Total retained positions
|
$
|
54
|
|
$
|
57
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
11,973
|
|
$
|
13,043
|
|
|
$
|
53
|
|
$
|
2
|
|
|
$
|
60
|
|
$
|
63
|
|
Total assets of VIEs
(6)
|
$
|
5,619
|
|
$
|
5,883
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
34,669
|
|
$
|
35,362
|
|
|
$
|
2,374
|
|
$
|
2,518
|
|
|
$
|
183
|
|
$
|
314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Maximum loss exposure
|
$
|
224
|
|
$
|
231
|
|
|
$
|
26,842
|
|
$
|
32,678
|
|
|
$
|
308
|
|
$
|
354
|
|
|
$
|
1,977
|
|
$
|
1,973
|
|
|
$
|
—
|
|
$
|
—
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading account assets
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
743
|
|
$
|
771
|
|
|
$
|
1,980
|
|
$
|
1,984
|
|
|
$
|
—
|
|
$
|
—
|
|
Loans and leases
|
304
|
|
321
|
|
|
35,956
|
|
43,194
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Allowance for loan and lease losses
|
(17
|
)
|
(18
|
)
|
|
(1,126
|
)
|
(1,293
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
All other assets
|
20
|
|
20
|
|
|
314
|
|
342
|
|
|
—
|
|
—
|
|
|
9
|
|
1
|
|
|
—
|
|
—
|
|
||||||||||
Total assets
|
$
|
307
|
|
$
|
323
|
|
|
$
|
35,144
|
|
$
|
42,243
|
|
|
$
|
743
|
|
$
|
771
|
|
|
$
|
1,989
|
|
$
|
1,985
|
|
|
$
|
—
|
|
$
|
—
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Short-term borrowings
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
665
|
|
$
|
681
|
|
|
$
|
—
|
|
$
|
—
|
|
Long-term debt
|
169
|
|
183
|
|
|
8,293
|
|
9,550
|
|
|
435
|
|
417
|
|
|
12
|
|
12
|
|
|
—
|
|
—
|
|
||||||||||
All other liabilities
|
—
|
|
—
|
|
|
9
|
|
15
|
|
|
—
|
|
—
|
|
|
4
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Total liabilities
|
$
|
169
|
|
$
|
183
|
|
|
$
|
8,302
|
|
$
|
9,565
|
|
|
$
|
435
|
|
$
|
417
|
|
|
$
|
681
|
|
$
|
693
|
|
|
$
|
—
|
|
$
|
—
|
|
(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 liability for representations and warranties obligations and corporate guarantees. For additional information, see
Note 7 – Representations and Warranties Obligations and Corporate Guarantees
.
|
(2)
|
At
March 31, 2016
and
December 31, 2015
, loans and leases in the consolidated credit card trust included
$19.1 billion
and
$24.7 billion
of seller's interest.
|
(3)
|
At
March 31, 2016
and
December 31, 2015
, all other assets in the consolidated credit card trust included restricted cash, certain short-term investments, and unbilled accrued interest and fees.
|
(4)
|
As a holder of these securities, the Corporation receives scheduled principal and interest payments. During the
three months ended March 31, 2016 and 2015
, there were
no
OTTI losses recorded on those securities classified as AFS or HTM debt securities.
|
(5)
|
The retained senior and subordinate securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy).
|
(6)
|
Total assets include loans the Corporation transferred with which the Corporation has continuing involvement, which may include servicing the loan.
|
Other Variable Interest Entities
|
Other VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(Dollars in millions)
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
||||||||||||
Maximum loss exposure
|
$
|
6,625
|
|
|
$
|
17,393
|
|
|
$
|
24,018
|
|
|
$
|
6,295
|
|
|
$
|
12,916
|
|
|
$
|
19,211
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account assets
|
$
|
2,781
|
|
|
$
|
362
|
|
|
$
|
3,143
|
|
|
$
|
2,300
|
|
|
$
|
366
|
|
|
$
|
2,666
|
|
Debt securities carried at fair value
|
—
|
|
|
112
|
|
|
112
|
|
|
—
|
|
|
126
|
|
|
126
|
|
||||||
Loans and leases
|
3,350
|
|
|
3,498
|
|
|
6,848
|
|
|
3,317
|
|
|
3,389
|
|
|
6,706
|
|
||||||
Allowance for loan and lease losses
|
(9
|
)
|
|
(27
|
)
|
|
(36
|
)
|
|
(9
|
)
|
|
(23
|
)
|
|
(32
|
)
|
||||||
Loans held-for-sale
|
278
|
|
|
1,319
|
|
|
1,597
|
|
|
284
|
|
|
1,025
|
|
|
1,309
|
|
||||||
All other assets
|
723
|
|
|
11,032
|
|
|
11,755
|
|
|
664
|
|
|
6,925
|
|
|
7,589
|
|
||||||
Total
|
$
|
7,123
|
|
|
$
|
16,296
|
|
|
$
|
23,419
|
|
|
$
|
6,556
|
|
|
$
|
11,808
|
|
|
$
|
18,364
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
(1)
|
$
|
1,215
|
|
|
$
|
—
|
|
|
$
|
1,215
|
|
|
$
|
3,025
|
|
|
$
|
—
|
|
|
$
|
3,025
|
|
All other liabilities
|
3
|
|
|
2,607
|
|
|
2,610
|
|
|
5
|
|
|
2,697
|
|
|
2,702
|
|
||||||
Total
|
$
|
1,218
|
|
|
$
|
2,607
|
|
|
$
|
3,825
|
|
|
$
|
3,030
|
|
|
$
|
2,697
|
|
|
$
|
5,727
|
|
Total assets of VIEs
|
$
|
7,123
|
|
|
$
|
63,565
|
|
|
$
|
70,688
|
|
|
$
|
6,556
|
|
|
$
|
49,190
|
|
|
$
|
55,746
|
|
(1)
|
Includes
$720 million
and
$2.8 billion
of long-term debt at
March 31, 2016
and
December 31, 2015
issued by other consolidated VIEs, which has recourse to the general credit of the Corporation.
|
NOTE 7 – Representations and Warranties Obligations and Corporate Guarantees
|
|
Background
|
Settlement Actions
|
Unresolved Repurchase Claims
|
Unresolved Repurchase Claims by Counterparty, net of duplicate claims
|
|
|
|
||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
By counterparty
|
|
|
|
||||
Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other
(1)
|
$
|
16,692
|
|
|
$
|
16,748
|
|
Monolines
|
1,596
|
|
|
1,599
|
|
||
GSEs
|
17
|
|
|
17
|
|
||
Total unresolved repurchase claims by counterparty, net of duplicate claims
|
$
|
18,305
|
|
|
$
|
18,364
|
|
(1)
|
Includes
$11.9 billion
of claims based on individual file reviews and
$4.8 billion
of claims submitted without individual file reviews at both
March 31, 2016
and
December 31, 2015
.
|
Experience with Government-sponsored Enterprises and Monoline Insurers
|
Private-label Securitizations and Whole-loan Sales Experience
|
Liability for Representations and Warranties and Corporate Guarantees and Estimated Range of Possible Loss
|
Representations and Warranties and Corporate Guarantees
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Liability for representations and warranties and corporate guarantees, January 1
|
$
|
11,326
|
|
|
$
|
12,081
|
|
Additions for new sales
|
1
|
|
|
1
|
|
||
Net reductions
|
(8,557
|
)
|
|
(174
|
)
|
||
Provision
|
42
|
|
|
84
|
|
||
Liability for representations and warranties and corporate guarantees, March 31
(1)
|
$
|
2,812
|
|
|
$
|
11,992
|
|
Cash Payments
|
NOTE 8 – Goodwill and Intangible Assets
|
|
Goodwill
|
Goodwill
|
|||||||
(Dollars in millions)
|
March 31
2016 |
|
December 31
2015 |
||||
Consumer Banking
|
$
|
30,123
|
|
|
$
|
30,123
|
|
Global Wealth & Investment Management
|
9,698
|
|
|
9,698
|
|
||
Global Banking
|
23,923
|
|
|
23,923
|
|
||
Global Markets
|
5,197
|
|
|
5,197
|
|
||
All Other
|
820
|
|
|
820
|
|
||
Total goodwill
|
$
|
69,761
|
|
|
$
|
69,761
|
|
Intangible Assets
|
Intangible Assets
(1, 2)
|
|
|
|||||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(Dollars in millions)
|
Gross
Carrying Value
|
|
Accumulated
Amortization
|
|
Net
Carrying Value
|
|
Gross
Carrying Value
|
|
Accumulated
Amortization
|
|
Net
Carrying Value |
||||||||||||
Purchased credit card relationships
|
$
|
5,427
|
|
|
$
|
4,791
|
|
|
$
|
636
|
|
|
$
|
5,450
|
|
|
$
|
4,755
|
|
|
$
|
695
|
|
Core deposit intangibles
|
1,779
|
|
|
1,532
|
|
|
247
|
|
|
1,779
|
|
|
1,505
|
|
|
274
|
|
||||||
Customer relationships
|
3,887
|
|
|
3,034
|
|
|
853
|
|
|
3,927
|
|
|
2,990
|
|
|
937
|
|
||||||
Affinity relationships
|
1,552
|
|
|
1,369
|
|
|
183
|
|
|
1,556
|
|
|
1,356
|
|
|
200
|
|
||||||
Other intangibles
(3)
|
2,143
|
|
|
484
|
|
|
1,659
|
|
|
2,143
|
|
|
481
|
|
|
1,662
|
|
||||||
Total intangible assets
|
$
|
14,788
|
|
|
$
|
11,210
|
|
|
$
|
3,578
|
|
|
$
|
14,855
|
|
|
$
|
11,087
|
|
|
$
|
3,768
|
|
(1)
|
Excludes fully amortized intangible assets.
|
(2)
|
At
March 31, 2016
and
December 31, 2015
, none of the intangible assets were impaired.
|
(3)
|
Includes intangible assets associated with trade names that have an indefinite life and, accordingly, are not amortized.
|
Amortization Expense
|
|||||||
|
Three Months Ended
March 31 |
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Purchased credit card and affinity relationships
|
$
|
74
|
|
|
$
|
89
|
|
Core deposit intangibles
|
27
|
|
|
32
|
|
||
Customer relationships
|
83
|
|
|
87
|
|
||
Other intangibles
|
3
|
|
|
5
|
|
||
Total amortization expense
|
$
|
187
|
|
|
$
|
213
|
|
NOTE 9 – Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings
|
|
Three Months Ended March 31
|
|||||||||||||
|
Amount
|
|
Rate
|
|||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||
Average during period
|
|
|
|
|
|
|
|
|||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
209,183
|
|
|
$
|
213,931
|
|
|
0.53
|
%
|
|
0.44
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
$
|
191,297
|
|
|
$
|
214,722
|
|
|
1.03
|
%
|
|
0.90
|
%
|
|
Short-term borrowings
|
30,693
|
|
|
29,412
|
|
|
1.58
|
|
|
1.47
|
|
|||
Total
|
$
|
221,990
|
|
|
$
|
244,134
|
|
|
1.11
|
|
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|||||||
Maximum month-end balance during period
|
|
|
|
|
|
|
|
|||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
221,129
|
|
|
$
|
226,502
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
$
|
196,631
|
|
|
$
|
219,212
|
|
|
|
|
|
|||
Short-term borrowings
|
30,881
|
|
|
33,270
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
|
March 31, 2016
|
|
December 31, 2015
|
|||||||||||
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|||||||
Period-end
|
|
|
|
|
|
|
|
|||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
221,129
|
|
|
0.25
|
%
|
|
$
|
192,482
|
|
|
0.44
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
$
|
188,960
|
|
|
1.04
|
%
|
|
$
|
174,291
|
|
|
0.82
|
%
|
|
Short-term borrowings
|
30,881
|
|
|
2.06
|
|
|
28,098
|
|
|
1.61
|
|
|||
Total
|
$
|
219,841
|
|
|
1.18
|
|
|
$
|
202,389
|
|
|
0.92
|
|
Offsetting of Securities Financing Agreements
|
Securities Financing Agreements
|
|||||||||||||||||||
|
March 31, 2016
|
||||||||||||||||||
(Dollars in millions)
|
Gross Assets/Liabilities
|
|
Amounts Offset
|
|
Net Balance Sheet Amount
|
|
Financial Instruments
|
|
Net Assets/Liabilities
|
||||||||||
Securities borrowed or purchased under agreements to resell
(1)
|
$
|
366,135
|
|
|
$
|
(145,006
|
)
|
|
$
|
221,129
|
|
|
$
|
(174,031
|
)
|
|
$
|
47,098
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities loaned or sold under agreements to repurchase
|
$
|
333,955
|
|
|
$
|
(145,006
|
)
|
|
$
|
188,949
|
|
|
$
|
(155,126
|
)
|
|
$
|
33,823
|
|
Other
|
12,357
|
|
|
—
|
|
|
12,357
|
|
|
(12,357
|
)
|
|
—
|
|
|||||
Total
|
$
|
346,312
|
|
|
$
|
(145,006
|
)
|
|
$
|
201,306
|
|
|
$
|
(167,483
|
)
|
|
$
|
33,823
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2015
|
||||||||||||||||||
Securities borrowed or purchased under agreements to resell
(1)
|
$
|
347,281
|
|
|
$
|
(154,799
|
)
|
|
$
|
192,482
|
|
|
$
|
(144,332
|
)
|
|
$
|
48,150
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities loaned or sold under agreements to repurchase
|
$
|
329,078
|
|
|
$
|
(154,799
|
)
|
|
$
|
174,279
|
|
|
$
|
(135,737
|
)
|
|
$
|
38,542
|
|
Other
|
13,235
|
|
|
—
|
|
|
13,235
|
|
|
(13,235
|
)
|
|
—
|
|
|||||
Total
|
$
|
342,313
|
|
|
$
|
(154,799
|
)
|
|
$
|
187,514
|
|
|
$
|
(148,972
|
)
|
|
$
|
38,542
|
|
(1)
|
Excludes repurchase activity of
$9.9 billion
and
$9.3 billion
reported in loans and leases on the Consolidated Balance Sheet at
March 31, 2016
and
December 31, 2015
.
|
Repurchase Agreements and Securities Loaned Transactions Accounted for as Secured Borrowings
|
Remaining Contractual Maturity
|
|||||||||||||||||||
|
March 31, 2016
|
||||||||||||||||||
(Dollars in millions)
|
Overnight and Continuous
|
|
30 Days or Less
|
|
After 30 Days Through 90 Days
|
|
Greater than 90 Days
(1)
|
|
Total
|
||||||||||
Securities sold under agreements to repurchase
|
$
|
140,870
|
|
|
$
|
79,715
|
|
|
$
|
42,337
|
|
|
$
|
36,594
|
|
|
$
|
299,516
|
|
Securities loaned
|
28,606
|
|
|
1,547
|
|
|
1,821
|
|
|
2,465
|
|
|
34,439
|
|
|||||
Other
|
12,357
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,357
|
|
|||||
Total
|
$
|
181,833
|
|
|
$
|
81,262
|
|
|
$
|
44,158
|
|
|
$
|
39,059
|
|
|
$
|
346,312
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2015
|
||||||||||||||||||
Securities sold under agreements to repurchase
|
$
|
126,694
|
|
|
$
|
86,879
|
|
|
$
|
43,216
|
|
|
$
|
27,514
|
|
|
$
|
284,303
|
|
Securities loaned
|
39,772
|
|
|
363
|
|
|
2,352
|
|
|
2,288
|
|
|
44,775
|
|
|||||
Other
|
13,235
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,235
|
|
|||||
Total
|
$
|
179,701
|
|
|
$
|
87,242
|
|
|
$
|
45,568
|
|
|
$
|
29,802
|
|
|
$
|
342,313
|
|
(1)
|
No agreements have maturities greater than
three years
.
|
Class of Collateral Pledged
|
|
|
|
|
|
|
|
||||||||
|
March 31, 2016
|
||||||||||||||
(Dollars in millions)
|
Securities Sold Under Agreements to Repurchase
|
|
Securities Loaned
|
|
Other
|
|
Total
|
||||||||
U.S. government and agency securities
|
$
|
158,073
|
|
|
$
|
—
|
|
|
$
|
66
|
|
|
$
|
158,139
|
|
Corporate securities, trading loans and other
|
9,549
|
|
|
787
|
|
|
413
|
|
|
10,749
|
|
||||
Equity securities
|
26,852
|
|
|
13,688
|
|
|
11,823
|
|
|
52,363
|
|
||||
Non-U.S. sovereign debt
|
96,735
|
|
|
19,964
|
|
|
55
|
|
|
116,754
|
|
||||
Mortgage trading loans and ABS
|
8,307
|
|
|
—
|
|
|
—
|
|
|
8,307
|
|
||||
Total
|
$
|
299,516
|
|
|
$
|
34,439
|
|
|
$
|
12,357
|
|
|
$
|
346,312
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2015
|
||||||||||||||
U.S. government and agency securities
|
$
|
142,572
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
142,599
|
|
Corporate securities, trading loans and other
|
11,767
|
|
|
265
|
|
|
278
|
|
|
12,310
|
|
||||
Equity securities
|
32,323
|
|
|
13,350
|
|
|
12,929
|
|
|
58,602
|
|
||||
Non-U.S. sovereign debt
|
87,849
|
|
|
31,160
|
|
|
1
|
|
|
119,010
|
|
||||
Mortgage trading loans and ABS
|
9,792
|
|
|
—
|
|
|
—
|
|
|
9,792
|
|
||||
Total
|
$
|
284,303
|
|
|
$
|
44,775
|
|
|
$
|
13,235
|
|
|
$
|
342,313
|
|
NOTE 10 – Commitments and Contingencies
|
Credit Extension Commitments
|
Credit Extension Commitments
|
|
|
|||||||||||||||||
|
March 31, 2016
|
||||||||||||||||||
(Dollars in millions)
|
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
|
||||||||||
Notional amount of credit extension commitments
|
|
|
|
|
|
|
|
|
|
||||||||||
Loan commitments
|
$
|
86,955
|
|
|
$
|
118,300
|
|
|
$
|
148,779
|
|
|
$
|
32,234
|
|
|
$
|
386,268
|
|
Home equity lines of credit
|
7,536
|
|
|
16,905
|
|
|
4,323
|
|
|
21,126
|
|
|
49,890
|
|
|||||
Standby letters of credit and financial guarantees
(1)
|
20,512
|
|
|
9,934
|
|
|
3,173
|
|
|
1,018
|
|
|
34,637
|
|
|||||
Letters of credit
|
1,415
|
|
|
100
|
|
|
66
|
|
|
44
|
|
|
1,625
|
|
|||||
Legally binding commitments
|
116,418
|
|
|
145,239
|
|
|
156,341
|
|
|
54,422
|
|
|
472,420
|
|
|||||
Credit card lines
(2)
|
378,573
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
378,573
|
|
|||||
Total credit extension commitments
|
$
|
494,991
|
|
|
$
|
145,239
|
|
|
$
|
156,341
|
|
|
$
|
54,422
|
|
|
$
|
850,993
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2015
|
||||||||||||||||||
Notional amount of credit extension commitments
|
|
|
|
|
|
|
|
|
|
||||||||||
Loan commitments
|
$
|
84,884
|
|
|
$
|
119,272
|
|
|
$
|
158,920
|
|
|
$
|
37,112
|
|
|
$
|
400,188
|
|
Home equity lines of credit
|
7,074
|
|
|
18,438
|
|
|
5,126
|
|
|
19,697
|
|
|
50,335
|
|
|||||
Standby letters of credit and financial guarantees
(1)
|
19,584
|
|
|
9,903
|
|
|
3,385
|
|
|
1,218
|
|
|
34,090
|
|
|||||
Letters of credit
|
1,650
|
|
|
165
|
|
|
258
|
|
|
54
|
|
|
2,127
|
|
|||||
Legally binding commitments
|
113,192
|
|
|
147,778
|
|
|
167,689
|
|
|
58,081
|
|
|
486,740
|
|
|||||
Credit card lines
(2)
|
370,127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
370,127
|
|
|||||
Total credit extension commitments
|
$
|
483,319
|
|
|
$
|
147,778
|
|
|
$
|
167,689
|
|
|
$
|
58,081
|
|
|
$
|
856,867
|
|
(1)
|
The notional amounts of SBLCs and financial guarantees classified as investment grade and non-investment grade based on the credit quality of the underlying reference name within the instrument were
$25.8 billion
and
$8.5 billion
at
March 31, 2016
, and
$25.5 billion
and
$8.4 billion
at
December 31, 2015
. Amounts in the table include consumer SBLCs of
$335 million
and
$164 million
at
March 31, 2016
and
December 31, 2015
.
|
(2)
|
Includes business card unused lines of credit.
|
Other Commitments
|
Other Guarantees
|
Litigation and Regulatory Matters
|
NOTE 11 – Shareholders' Equity
|
|
Common Stock
|
Declaration Date
|
Record Date
|
Payment Date
|
Dividend Per Share
|
|
April 27, 2016
|
June 3, 2016
|
June 24, 2016
|
$0.05
|
|
January 21, 2016
|
March 4, 2016
|
March 25, 2016
|
0.05
|
|
Preferred Stock
|
Restricted Stock Units
|
NOTE 12 – Accumulated Other Comprehensive Income (Loss)
|
(Dollars in millions)
|
Debt Securities
|
|
Available-for-sale
Marketable
Equity Securities
|
|
Debit Valuation Adjustments
(1)
|
|
Derivatives
|
|
Employee
Benefit Plans
|
|
Foreign
Currency
(2)
|
|
Total
|
||||||||||||||
Balance, December 31, 2014
|
$
|
1,343
|
|
|
$
|
17
|
|
|
n/a
|
|
|
$
|
(1,661
|
)
|
|
$
|
(3,350
|
)
|
|
$
|
(669
|
)
|
|
$
|
(4,320
|
)
|
|
Cumulative adjustment for accounting change
|
—
|
|
|
—
|
|
|
$
|
(1,226
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,226
|
)
|
||||||
Net change
|
1,317
|
|
|
19
|
|
|
260
|
|
|
43
|
|
|
25
|
|
|
(51
|
)
|
|
1,613
|
|
|||||||
Balance, March 31, 2015
|
$
|
2,660
|
|
|
$
|
36
|
|
|
$
|
(966
|
)
|
|
$
|
(1,618
|
)
|
|
$
|
(3,325
|
)
|
|
$
|
(720
|
)
|
|
$
|
(3,933
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, December 31, 2015
|
$
|
(300
|
)
|
|
$
|
62
|
|
|
$
|
(611
|
)
|
|
$
|
(1,077
|
)
|
|
$
|
(2,956
|
)
|
|
$
|
(792
|
)
|
|
$
|
(5,674
|
)
|
Net change
|
2,924
|
|
|
(33
|
)
|
|
127
|
|
|
24
|
|
|
10
|
|
|
12
|
|
|
3,064
|
|
|||||||
Balance, March 31, 2016
|
$
|
2,624
|
|
|
$
|
29
|
|
|
$
|
(484
|
)
|
|
$
|
(1,053
|
)
|
|
$
|
(2,946
|
)
|
|
$
|
(780
|
)
|
|
$
|
(2,610
|
)
|
(1)
|
For information on the impact of early adoption of new accounting guidance on recognition and measurement of financial instruments, see
Note 1 – Summary of Significant Accounting Principles
.
|
(2)
|
The net change in fair value represents the impact of changes in spot foreign exchange rates on the Corporation's net investment in non-U.S. operations and related hedges.
|
Reclassifications Out of Accumulated OCI
|
||||||||
(Dollars in millions)
|
|
Three Months Ended March 31
|
||||||
Accumulated OCI Components
|
Income Statement Line Item Impacted
|
2016
|
|
2015
|
||||
Debt securities:
|
|
|
|
|
||||
|
Gains on sales of debt securities
|
$
|
226
|
|
|
$
|
268
|
|
|
Other loss
|
(7
|
)
|
|
(70
|
)
|
||
|
Income before income taxes
|
219
|
|
|
198
|
|
||
|
Income tax expense
|
83
|
|
|
75
|
|
||
|
Reclassification to net income
|
136
|
|
|
123
|
|
||
Debit valuation adjustments:
|
|
|
|
|
||||
|
Other loss
|
(7
|
)
|
|
(335
|
)
|
||
|
Loss before income taxes
|
(7
|
)
|
|
(335
|
)
|
||
|
Income tax benefit
|
(3
|
)
|
|
(127
|
)
|
||
|
Reclassification to net income
|
(4
|
)
|
|
(208
|
)
|
||
Derivatives:
|
|
|
|
|
||||
Interest rate contracts
|
Net interest income
|
(164
|
)
|
|
(255
|
)
|
||
Equity compensation contracts
|
Personnel
|
(34
|
)
|
|
(1
|
)
|
||
|
Loss before income taxes
|
(198
|
)
|
|
(256
|
)
|
||
|
Income tax benefit
|
(74
|
)
|
|
(96
|
)
|
||
|
Reclassification to net income
|
(124
|
)
|
|
(160
|
)
|
||
Employee benefit plans:
|
|
|
|
|
||||
Net actuarial losses and prior service costs
|
Personnel
|
(25
|
)
|
|
(42
|
)
|
||
|
Loss before income taxes
|
(25
|
)
|
|
(42
|
)
|
||
|
Income tax benefit
|
(10
|
)
|
|
(16
|
)
|
||
|
Reclassification to net income
|
(15
|
)
|
|
(26
|
)
|
||
Total reclassification adjustments
|
|
$
|
(7
|
)
|
|
$
|
(271
|
)
|
NOTE 13 – Earnings Per Common Share
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions, except per share information; shares in thousands)
|
2016
|
|
2015
|
||||
Earnings per common share
|
|
|
|
||||
Net income
|
$
|
2,680
|
|
|
$
|
3,097
|
|
Preferred stock dividends
|
(457
|
)
|
|
(382
|
)
|
||
Net income applicable to common shareholders
|
$
|
2,223
|
|
|
$
|
2,715
|
|
Average common shares issued and outstanding
|
10,339,731
|
|
|
10,518,790
|
|
||
Earnings per common share
|
$
|
0.21
|
|
|
$
|
0.26
|
|
|
|
|
|
||||
Diluted earnings per common share
|
|
|
|
||||
Net income applicable to common shareholders
|
$
|
2,223
|
|
|
$
|
2,715
|
|
Add preferred stock dividends due to assumed conversions
|
75
|
|
|
75
|
|
||
Net income allocated to common shareholders
|
$
|
2,298
|
|
|
$
|
2,790
|
|
Average common shares issued and outstanding
|
10,339,731
|
|
|
10,518,790
|
|
||
Dilutive potential common shares
(1)
|
760,336
|
|
|
747,721
|
|
||
Total diluted average common shares issued and outstanding
|
11,100,067
|
|
|
11,266,511
|
|
||
Diluted earnings per common share
|
$
|
0.21
|
|
|
$
|
0.25
|
|
(1)
|
Includes incremental dilutive shares from restricted stock units, restricted stock, stock options and warrants.
|
NOTE 14 – Fair Value Measurements
|
Valuation Processes and Techniques
|
Recurring Fair Value
|
|
March 31, 2016
|
||||||||||||||||||
|
Fair Value Measurements
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
Adjustments
(1)
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
—
|
|
|
$
|
53,379
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
53,379
|
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency securities
(2)
|
37,321
|
|
|
19,865
|
|
|
—
|
|
|
—
|
|
|
57,186
|
|
|||||
Corporate securities, trading loans and other
|
341
|
|
|
24,052
|
|
|
2,954
|
|
|
—
|
|
|
27,347
|
|
|||||
Equity securities
|
31,857
|
|
|
21,336
|
|
|
417
|
|
|
—
|
|
|
53,610
|
|
|||||
Non-U.S. sovereign debt
|
16,263
|
|
|
14,660
|
|
|
572
|
|
|
—
|
|
|
31,495
|
|
|||||
Mortgage trading loans and ABS
|
—
|
|
|
7,735
|
|
|
1,614
|
|
|
—
|
|
|
9,349
|
|
|||||
Total trading account assets
(3)
|
85,782
|
|
|
87,648
|
|
|
5,557
|
|
|
—
|
|
|
178,987
|
|
|||||
Derivative assets
(4)
|
6,447
|
|
|
848,297
|
|
|
5,459
|
|
|
(807,948
|
)
|
|
52,255
|
|
|||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency securities
|
20,669
|
|
|
1,547
|
|
|
—
|
|
|
—
|
|
|
22,216
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
—
|
|
|
207,736
|
|
|
—
|
|
|
—
|
|
|
207,736
|
|
|||||
Agency-collateralized mortgage obligations
|
—
|
|
|
10,558
|
|
|
—
|
|
|
—
|
|
|
10,558
|
|
|||||
Non-agency residential
|
—
|
|
|
2,079
|
|
|
150
|
|
|
—
|
|
|
2,229
|
|
|||||
Commercial
|
—
|
|
|
10,233
|
|
|
—
|
|
|
—
|
|
|
10,233
|
|
|||||
Non-U.S. securities
|
2,884
|
|
|
3,196
|
|
|
—
|
|
|
—
|
|
|
6,080
|
|
|||||
Other taxable securities
|
—
|
|
|
9,741
|
|
|
739
|
|
|
—
|
|
|
10,480
|
|
|||||
Tax-exempt securities
|
—
|
|
|
14,026
|
|
|
562
|
|
|
—
|
|
|
14,588
|
|
|||||
Total AFS debt securities
|
23,553
|
|
|
259,116
|
|
|
1,451
|
|
|
—
|
|
|
284,120
|
|
|||||
Other debt securities carried at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency-collateralized mortgage obligations
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Non-agency residential
|
—
|
|
|
3,294
|
|
|
29
|
|
|
—
|
|
|
3,323
|
|
|||||
Non-U.S. securities
|
13,406
|
|
|
1,222
|
|
|
—
|
|
|
—
|
|
|
14,628
|
|
|||||
Other taxable securities
|
—
|
|
|
256
|
|
|
—
|
|
|
—
|
|
|
256
|
|
|||||
Total other debt securities carried at fair value
|
13,406
|
|
|
4,778
|
|
|
29
|
|
|
—
|
|
|
18,213
|
|
|||||
Loans and leases
(5)
|
—
|
|
|
6,515
|
|
|
1,697
|
|
|
—
|
|
|
8,212
|
|
|||||
Mortgage servicing rights
|
—
|
|
|
—
|
|
|
2,631
|
|
|
—
|
|
|
2,631
|
|
|||||
Loans held-for-sale
|
—
|
|
|
2,643
|
|
|
660
|
|
|
—
|
|
|
3,303
|
|
|||||
Other assets
|
11,024
|
|
|
1,894
|
|
|
375
|
|
|
—
|
|
|
13,293
|
|
|||||
Total assets
|
$
|
140,212
|
|
|
$
|
1,264,270
|
|
|
$
|
17,859
|
|
|
$
|
(807,948
|
)
|
|
$
|
614,393
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in U.S. offices
|
$
|
—
|
|
|
$
|
1,038
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,038
|
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
—
|
|
|
24,024
|
|
|
345
|
|
|
—
|
|
|
24,369
|
|
|||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency securities
|
15,933
|
|
|
224
|
|
|
—
|
|
|
—
|
|
|
16,157
|
|
|||||
Equity securities
|
30,795
|
|
|
4,099
|
|
|
—
|
|
|
—
|
|
|
34,894
|
|
|||||
Non-U.S. sovereign debt
|
14,204
|
|
|
1,863
|
|
|
—
|
|
|
—
|
|
|
16,067
|
|
|||||
Corporate securities and other
|
153
|
|
|
6,704
|
|
|
28
|
|
|
—
|
|
|
6,885
|
|
|||||
Total trading account liabilities
|
61,085
|
|
|
12,890
|
|
|
28
|
|
|
—
|
|
|
74,003
|
|
|||||
Derivative liabilities
(4)
|
6,374
|
|
|
838,510
|
|
|
5,774
|
|
|
(809,595
|
)
|
|
41,063
|
|
|||||
Short-term borrowings
|
—
|
|
|
1,482
|
|
|
—
|
|
|
—
|
|
|
1,482
|
|
|||||
Accrued expenses and other liabilities
|
10,683
|
|
|
2,184
|
|
|
9
|
|
|
—
|
|
|
12,876
|
|
|||||
Long-term debt
|
—
|
|
|
29,447
|
|
|
1,814
|
|
|
—
|
|
|
31,261
|
|
|||||
Total liabilities
|
$
|
78,142
|
|
|
$
|
909,575
|
|
|
$
|
7,970
|
|
|
$
|
(809,595
|
)
|
|
$
|
186,092
|
|
(1)
|
Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
|
(2)
|
Includes
$19.2 billion
of GSE obligations.
|
(3)
|
Includes securities with a fair value of
$13.6 billion
that were segregated in compliance with securities regulations or deposited with clearing organizations. This amount is included in the parenthetical disclosure on the Consolidated Balance Sheet.
|
(4)
|
During the
three months ended March 31, 2016
,
$609 million
of derivative assets and
$744 million
of derivative liabilities were transferred from Level 1 to Level 2 and
$312 million
of derivative assets and
$230 million
of derivative liabilities were transferred from Level 2 to Level 1 based on the inputs used to measure fair value. For further disaggregation of derivative assets and liabilities, see
Note 2 – Derivatives
.
|
(5)
|
Includes
$765 million
from CFEs that were measured using the fair value of the financial liabilities of those entities as the measurement basis.
|
|
December 31, 2015
|
||||||||||||||||||
|
Fair Value Measurements
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
Adjustments
(1)
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
—
|
|
|
$
|
55,143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55,143
|
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency securities
(2)
|
33,034
|
|
|
15,501
|
|
|
—
|
|
|
—
|
|
|
48,535
|
|
|||||
Corporate securities, trading loans and other
|
325
|
|
|
22,738
|
|
|
2,838
|
|
|
—
|
|
|
25,901
|
|
|||||
Equity securities
|
41,735
|
|
|
20,887
|
|
|
407
|
|
|
—
|
|
|
63,029
|
|
|||||
Non-U.S. sovereign debt
|
15,651
|
|
|
12,915
|
|
|
521
|
|
|
—
|
|
|
29,087
|
|
|||||
Mortgage trading loans and ABS
|
—
|
|
|
8,107
|
|
|
1,868
|
|
|
—
|
|
|
9,975
|
|
|||||
Total trading account assets
(3)
|
90,745
|
|
|
80,148
|
|
|
5,634
|
|
|
—
|
|
|
176,527
|
|
|||||
Derivative assets
(4)
|
5,149
|
|
|
679,458
|
|
|
5,134
|
|
|
(639,751
|
)
|
|
49,990
|
|
|||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and agency securities
|
23,374
|
|
|
1,903
|
|
|
—
|
|
|
—
|
|
|
25,277
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
—
|
|
|
228,947
|
|
|
—
|
|
|
—
|
|
|
228,947
|
|
|||||
Agency-collateralized mortgage obligations
|
—
|
|
|
10,985
|
|
|
—
|
|
|
—
|
|
|
10,985
|
|
|||||
Non-agency residential
|
—
|
|
|
3,073
|
|
|
106
|
|
|
—
|
|
|
3,179
|
|
|||||
Commercial
|
—
|
|
|
7,165
|
|
|
—
|
|
|
—
|
|
|
7,165
|
|
|||||
Non-U.S. securities
|
2,768
|
|
|
2,999
|
|
|
—
|
|
|
—
|
|
|
5,767
|
|
|||||
Other taxable securities
|
—
|
|
|
9,688
|
|
|
757
|
|
|
—
|
|
|
10,445
|
|
|||||
Tax-exempt securities
|
—
|
|
|
13,439
|
|
|
569
|
|
|
—
|
|
|
14,008
|
|
|||||
Total AFS debt securities
|
26,142
|
|
|
278,199
|
|
|
1,432
|
|
|
—
|
|
|
305,773
|
|
|||||
Other debt securities carried at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency-collateralized mortgage obligations
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Non-agency residential
|
—
|
|
|
3,460
|
|
|
30
|
|
|
—
|
|
|
3,490
|
|
|||||
Non-U.S. securities
|
11,691
|
|
|
1,152
|
|
|
—
|
|
|
—
|
|
|
12,843
|
|
|||||
Other taxable securities
|
—
|
|
|
267
|
|
|
—
|
|
|
—
|
|
|
267
|
|
|||||
Total other debt securities carried at fair value
|
11,691
|
|
|
4,886
|
|
|
30
|
|
|
—
|
|
|
16,607
|
|
|||||
Loans and leases
|
—
|
|
|
5,318
|
|
|
1,620
|
|
|
—
|
|
|
6,938
|
|
|||||
Mortgage servicing rights
|
—
|
|
|
—
|
|
|
3,087
|
|
|
—
|
|
|
3,087
|
|
|||||
Loans held-for-sale
|
—
|
|
|
4,031
|
|
|
787
|
|
|
—
|
|
|
4,818
|
|
|||||
Other assets
(5)
|
11,923
|
|
|
2,023
|
|
|
374
|
|
|
—
|
|
|
14,320
|
|
|||||
Total assets
|
$
|
145,650
|
|
|
$
|
1,109,206
|
|
|
$
|
18,098
|
|
|
$
|
(639,751
|
)
|
|
$
|
633,203
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in U.S. offices
|
$
|
—
|
|
|
$
|
1,116
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,116
|
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
—
|
|
|
24,239
|
|
|
335
|
|
|
—
|
|
|
24,574
|
|
|||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency securities
|
14,803
|
|
|
169
|
|
|
—
|
|
|
—
|
|
|
14,972
|
|
|||||
Equity securities
|
27,898
|
|
|
2,392
|
|
|
—
|
|
|
—
|
|
|
30,290
|
|
|||||
Non-U.S. sovereign debt
|
13,589
|
|
|
1,951
|
|
|
—
|
|
|
—
|
|
|
15,540
|
|
|||||
Corporate securities and other
|
193
|
|
|
5,947
|
|
|
21
|
|
|
—
|
|
|
6,161
|
|
|||||
Total trading account liabilities
|
56,483
|
|
|
10,459
|
|
|
21
|
|
|
—
|
|
|
66,963
|
|
|||||
Derivative liabilities
(4)
|
4,941
|
|
|
671,613
|
|
|
5,575
|
|
|
(643,679
|
)
|
|
38,450
|
|
|||||
Short-term borrowings
|
—
|
|
|
1,295
|
|
|
30
|
|
|
—
|
|
|
1,325
|
|
|||||
Accrued expenses and other liabilities
|
11,656
|
|
|
2,234
|
|
|
9
|
|
|
—
|
|
|
13,899
|
|
|||||
Long-term debt
|
—
|
|
|
28,584
|
|
|
1,513
|
|
|
—
|
|
|
30,097
|
|
|||||
Total liabilities
|
$
|
73,080
|
|
|
$
|
739,540
|
|
|
$
|
7,483
|
|
|
$
|
(643,679
|
)
|
|
$
|
176,424
|
|
(1)
|
Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
|
(2)
|
Includes
$14.8 billion
of GSE obligations.
|
(3)
|
Includes securities with a fair value of
$16.4 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.
|
(4)
|
During
2015
,
$6.6 billion
of derivative assets and
$6.7 billion
of derivative liabilities were transferred from Level 1 to Level 2 based on inputs used to measure fair value. Additionally,
$6.4 billion
of derivative assets and
$6.2 billion
of derivative liabilities were transferred from Level 2 to Level 1 due to additional information related to certain options. For further disaggregation of derivative assets and liabilities, see
Note 2 – Derivatives
.
|
(5)
|
During
2015
, approximately
$327 million
of assets were transferred from Level 2 to Level 1 due to a restriction that was lifted for an equity investment.
|
Level 3 – Fair Value Measurements
(1)
|
||||||||||||||||||||||||||||||
|
Three Months Ended March 31, 2016
|
|||||||||||||||||||||||||||||
|
|
|
|
Gross
|
|
|
|
|||||||||||||||||||||||
(Dollars in millions)
|
Balance
January 1
2016
|
Gains
(Losses) in
Earnings
|
Gains
(Losses) in
OCI
(2)
|
Purchases
|
Sales
|
Issuances
|
Settlements
|
Gross
Transfers
into
Level 3
|
Gross
Transfers
out of
Level 3
|
Balance March 31
2016 |
||||||||||||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Corporate securities, trading loans and other
|
$
|
2,838
|
|
$
|
50
|
|
$
|
1
|
|
$
|
227
|
|
$
|
(147
|
)
|
$
|
—
|
|
$
|
(148
|
)
|
$
|
158
|
|
$
|
(25
|
)
|
$
|
2,954
|
|
Equity securities
|
407
|
|
60
|
|
—
|
|
10
|
|
(2
|
)
|
—
|
|
(62
|
)
|
4
|
|
—
|
|
417
|
|
||||||||||
Non-U.S. sovereign debt
|
521
|
|
42
|
|
49
|
|
3
|
|
(1
|
)
|
—
|
|
(42
|
)
|
—
|
|
—
|
|
572
|
|
||||||||||
Mortgage trading loans and ABS
|
1,868
|
|
28
|
|
(2
|
)
|
194
|
|
(404
|
)
|
—
|
|
(73
|
)
|
31
|
|
(28
|
)
|
1,614
|
|
||||||||||
Total trading account assets
|
5,634
|
|
180
|
|
48
|
|
434
|
|
(554
|
)
|
—
|
|
(325
|
)
|
193
|
|
(53
|
)
|
5,557
|
|
||||||||||
Net derivative assets
(3)
|
(441
|
)
|
403
|
|
—
|
|
89
|
|
(175
|
)
|
—
|
|
12
|
|
(116
|
)
|
(87
|
)
|
(315
|
)
|
||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-agency residential MBS
|
106
|
|
—
|
|
5
|
|
135
|
|
(92
|
)
|
—
|
|
(4
|
)
|
—
|
|
—
|
|
150
|
|
||||||||||
Other taxable securities
|
757
|
|
1
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
(16
|
)
|
—
|
|
—
|
|
739
|
|
||||||||||
Tax-exempt securities
|
569
|
|
—
|
|
(7
|
)
|
1
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
562
|
|
||||||||||
Total AFS debt securities
|
1,432
|
|
1
|
|
(5
|
)
|
136
|
|
(92
|
)
|
—
|
|
(21
|
)
|
—
|
|
—
|
|
1,451
|
|
||||||||||
Other debt securities carried at fair value – Non-agency residential MBS
|
30
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29
|
|
||||||||||
Loans and leases
(4, 5)
|
1,620
|
|
43
|
|
—
|
|
69
|
|
—
|
|
25
|
|
(35
|
)
|
5
|
|
(30
|
)
|
1,697
|
|
||||||||||
Mortgage servicing rights
(5)
|
3,087
|
|
(380
|
)
|
—
|
|
—
|
|
(1
|
)
|
136
|
|
(211
|
)
|
—
|
|
—
|
|
2,631
|
|
||||||||||
Loans held-for-sale
(4)
|
787
|
|
73
|
|
27
|
|
20
|
|
(163
|
)
|
—
|
|
(34
|
)
|
13
|
|
(63
|
)
|
660
|
|
||||||||||
Other assets
|
374
|
|
(25
|
)
|
—
|
|
34
|
|
—
|
|
—
|
|
(10
|
)
|
2
|
|
—
|
|
375
|
|
||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
(4)
|
(335
|
)
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
(14
|
)
|
7
|
|
—
|
|
—
|
|
(345
|
)
|
||||||||||
Trading account liabilities – Corporate securities and other
|
(21
|
)
|
1
|
|
—
|
|
—
|
|
(8
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(28
|
)
|
||||||||||
Short-term borrowings
(4)
|
(30
|
)
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Accrued expenses and other liabilities
|
(9
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(9
|
)
|
||||||||||
Long-term debt
(4)
|
(1,513
|
)
|
(91
|
)
|
(7
|
)
|
9
|
|
—
|
|
(169
|
)
|
56
|
|
(186
|
)
|
87
|
|
(1,814
|
)
|
(1)
|
Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.
|
(2)
|
Includes unrealized gains (losses) on AFS debt securities, foreign currency translation adjustments and the impact on structured liabilities of changes in the Corporation's credit spreads. For more information, see
Note 1 – Summary of Significant Accounting Principles
.
|
(3)
|
Net derivatives include derivative assets of
$5.5 billion
and derivative liabilities of
$5.8 billion
.
|
(4)
|
Amounts represent instruments that are accounted for under the fair value option.
|
(5)
|
Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole-loan sales.
|
•
|
$193 million
of trading account assets
|
•
|
$116 million
of net derivative assets
|
•
|
$186 million
of long-term debt. Transfers occur on a regular basis for these 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)
|
||||||||||||||||||||||||||||||
|
Three Months Ended March 31, 2015
|
|||||||||||||||||||||||||||||
|
|
|
|
Gross
|
|
|
|
|||||||||||||||||||||||
(Dollars in millions)
|
Balance
January 1
2015
|
Gains
(Losses) in
Earnings
|
Gains
(Losses) in
OCI
(2)
|
Purchases
|
Sales
|
Issuances
|
Settlements
|
Gross
Transfers
into
Level 3
|
Gross
Transfers
out of
Level 3
|
Balance March 31
2015 |
||||||||||||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Corporate securities, trading loans and other
|
$
|
3,270
|
|
$
|
(21
|
)
|
$
|
—
|
|
$
|
139
|
|
$
|
(95
|
)
|
$
|
—
|
|
$
|
(435
|
)
|
$
|
171
|
|
$
|
(269
|
)
|
$
|
2,760
|
|
Equity securities
|
352
|
|
3
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
(5
|
)
|
9
|
|
(18
|
)
|
340
|
|
||||||||||
Non-U.S. sovereign debt
|
574
|
|
66
|
|
(90
|
)
|
2
|
|
—
|
|
—
|
|
(44
|
)
|
—
|
|
—
|
|
508
|
|
||||||||||
Mortgage trading loans and ABS
|
2,063
|
|
60
|
|
—
|
|
319
|
|
(249
|
)
|
—
|
|
(83
|
)
|
9
|
|
(13
|
)
|
2,106
|
|
||||||||||
Total trading account assets
|
6,259
|
|
108
|
|
(90
|
)
|
460
|
|
(345
|
)
|
—
|
|
(567
|
)
|
189
|
|
(300
|
)
|
5,714
|
|
||||||||||
Net derivative assets
(3)
|
(920
|
)
|
(44
|
)
|
—
|
|
56
|
|
(176
|
)
|
—
|
|
25
|
|
(46
|
)
|
24
|
|
(1,081
|
)
|
||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-agency residential MBS
|
279
|
|
(19
|
)
|
(2
|
)
|
21
|
|
—
|
|
—
|
|
(9
|
)
|
132
|
|
—
|
|
402
|
|
||||||||||
Non-U.S. securities
|
10
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
9
|
|
||||||||||
Other taxable securities
|
1,667
|
|
—
|
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
(42
|
)
|
—
|
|
(933
|
)
|
690
|
|
||||||||||
Tax-exempt securities
|
599
|
|
—
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
(13
|
)
|
—
|
|
—
|
|
583
|
|
||||||||||
Total AFS debt securities
|
2,555
|
|
(19
|
)
|
(7
|
)
|
21
|
|
—
|
|
—
|
|
(65
|
)
|
132
|
|
(933
|
)
|
1,684
|
|
||||||||||
Loans and leases
(4, 5)
|
1,983
|
|
15
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
(43
|
)
|
6
|
|
(6
|
)
|
1,954
|
|
||||||||||
Mortgage servicing rights
(5)
|
3,530
|
|
(85
|
)
|
—
|
|
—
|
|
—
|
|
179
|
|
(230
|
)
|
—
|
|
—
|
|
3,394
|
|
||||||||||
Loans held-for-sale
(4)
|
173
|
|
(70
|
)
|
—
|
|
406
|
|
(82
|
)
|
21
|
|
(6
|
)
|
138
|
|
(37
|
)
|
543
|
|
||||||||||
Other assets
|
911
|
|
10
|
|
—
|
|
—
|
|
(31
|
)
|
—
|
|
(9
|
)
|
—
|
|
(34
|
)
|
847
|
|
||||||||||
Trading account liabilities – Corporate securities and other
|
(36
|
)
|
1
|
|
—
|
|
2
|
|
(8
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(41
|
)
|
||||||||||
Short-term borrowings
(4)
|
—
|
|
5
|
|
—
|
|
—
|
|
—
|
|
(21
|
)
|
1
|
|
(4
|
)
|
4
|
|
(15
|
)
|
||||||||||
Accrued expenses and other liabilities
|
(10
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10
|
)
|
||||||||||
Long-term debt
(4)
|
(2,362
|
)
|
4
|
|
—
|
|
132
|
|
—
|
|
(90
|
)
|
97
|
|
(713
|
)
|
126
|
|
(2,806
|
)
|
(1)
|
Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.
|
(2)
|
Includes unrealized gains (losses) on AFS debt securities, foreign currency translation adjustments and the impact on structured liabilities of changes in the Corporation's credit spreads. For more information, see
Note 1 – Summary of Significant Accounting Principles
.
|
(3)
|
Net derivatives include derivative assets of
$7.5 billion
and derivative liabilities of
$8.5 billion
.
|
(4)
|
Amounts represent instruments that are accounted for under the fair value option.
|
(5)
|
Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole-loan sales.
|
•
|
$189 million
of trading account assets
|
•
|
$132 million
of AFS debt securities
|
•
|
$138 million
of LHFS
|
•
|
$713 million
of long-term debt. Transfers occur on a regular basis for these 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.
|
•
|
$300 million
of trading account assets, primarily the result of increased market liquidity
|
•
|
$933 million
of AFS debt securities
|
•
|
$126 million
of long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Mortgage banking income (loss) does not reflect the impact of Level 1 and Level 2 hedges on MSRs.
|
(2)
|
Amounts represent instruments that are accounted for under the fair value option.
|
|
|
|
|
|
|
|
|
(1)
|
Mortgage banking income (loss) does not reflect the impact of Level 1 and Level 2 hedges on MSRs.
|
(2)
|
Amounts represent instruments that are accounted for under the fair value option.
|
|
|
|
|
|
|
|
|
(1)
|
The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page
181
: Trading account assets – Corporate securities, trading loans and other of
$3.0 billion
, Trading account assets – Non-U.S. sovereign debt of
$572 million
, Trading account assets – Mortgage trading loans and ABS of
$1.6 billion
, AFS debt securities – Other taxable securities of
$739 million
, AFS debt securities – Tax-exempt securities of
$562 million
, Loans and leases of
$1.7 billion
and LHFS of
$660 million
.
|
(2)
|
Includes models such as Monte Carlo simulation and Black-Scholes.
|
(3)
|
Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.
|
(1)
|
The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page
182
: Trading account assets – Corporate securities, trading loans and other of
$2.8 billion
, Trading account assets – Non-U.S. sovereign debt of
$521 million
, Trading account assets – Mortgage trading loans and ABS of
$1.9 billion
, AFS debt securities – Other taxable securities of
$757 million
, AFS debt securities – Tax-exempt securities of
$569 million
, Loans and leases of
$1.6 billion
and LHFS of
$787 million
.
|
(2)
|
Includes models such as Monte Carlo simulation and Black-Scholes.
|
(3)
|
Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.
|
Nonrecurring Fair Value
|
(1)
|
Includes
$42 million
of losses on loans that were written down to a collateral value of zero during the
three months ended March 31, 2016
compared to losses of
$98 million
for the
same period in 2015
.
|
(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 taken during the first
90
days after transfer of a loan to foreclosed properties.
|
(3)
|
Excludes
$1.4 billion
and
$1.2 billion
of properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans) as of
March 31, 2016
and
2015
.
|
|
December 31, 2015
|
|||||||
Loans and leases backed by residential real estate assets
|
$
|
2,739
|
|
Market comparables
|
OREO discount
|
7% to 55%
|
20
|
%
|
|
|
Cost to sell
|
8% to 45%
|
10
|
%
|
NOTE 15 – Fair Value Option
|
Fair Value Option Elections
|
|||||||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(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
|
$
|
53,379
|
|
|
$
|
53,223
|
|
|
$
|
156
|
|
|
$
|
55,143
|
|
|
$
|
54,999
|
|
|
$
|
144
|
|
Loans reported as trading account assets
(1)
|
5,002
|
|
|
9,763
|
|
|
(4,761
|
)
|
|
4,995
|
|
|
9,214
|
|
|
(4,219
|
)
|
||||||
Trading inventory – other
|
8,036
|
|
|
n/a
|
|
|
n/a
|
|
|
8,149
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Consumer and commercial loans
|
8,212
|
|
|
8,512
|
|
|
(300
|
)
|
|
6,938
|
|
|
7,293
|
|
|
(355
|
)
|
||||||
Loans held-for-sale
|
3,303
|
|
|
4,604
|
|
|
(1,301
|
)
|
|
4,818
|
|
|
6,157
|
|
|
(1,339
|
)
|
||||||
Other assets
|
291
|
|
|
250
|
|
|
41
|
|
|
275
|
|
|
270
|
|
|
5
|
|
||||||
Long-term deposits
|
1,038
|
|
|
907
|
|
|
131
|
|
|
1,116
|
|
|
1,021
|
|
|
95
|
|
||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
24,369
|
|
|
24,500
|
|
|
(131
|
)
|
|
24,574
|
|
|
24,718
|
|
|
(144
|
)
|
||||||
Short-term borrowings
|
1,482
|
|
|
1,408
|
|
|
74
|
|
|
1,325
|
|
|
1,325
|
|
|
—
|
|
||||||
Unfunded loan commitments
|
509
|
|
|
n/a
|
|
|
n/a
|
|
|
658
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Long-term debt
(2)
|
31,261
|
|
|
31,772
|
|
|
(511
|
)
|
|
30,097
|
|
|
30,593
|
|
|
(496
|
)
|
(1)
|
A significant portion of the loans reported as trading account assets are distressed loans which trade and were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.
|
(2)
|
Includes structured liabilities with a fair value of
$30.1 billion
and
$29.0 billion
, and contractual principal outstanding of
$30.6 billion
and
$29.4 billion
at
March 31, 2016
compared to
December 31, 2015
.
|
(1)
|
The gains (losses) in trading account profits (losses) are primarily offset by gains (losses) on trading liabilities that hedge these assets.
|
(2)
|
Includes the value of interest rate lock commitments on funded loans, including those sold during the period.
|
(3)
|
The majority of the net gains (losses) in trading account profits relate to the embedded derivative in structured liabilities and are offset by gains (losses) on derivatives and securities that hedge these liabilities. For more information on the adoption of new accounting guidance relating to DVA on structured liabilities, see
Note 1 – Summary of Significant Accounting Principles
.
|
(4)
|
For the cumulative impact of changes in the Corporation's own credit spreads and the amount recognized in 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 2015 Annual Report on Form 10-K
.
|
|
|
|
|
|
|
|
|
NOTE 16 – Fair Value of Financial Instruments
|
Fair Value of Financial Instruments
|
|||||||||||||||||||||||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||||||||||
(Dollars in millions)
|
Carrying
Value
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Carrying
Value
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans
|
$
|
868,220
|
|
|
$
|
70,644
|
|
|
$
|
814,209
|
|
|
$
|
884,853
|
|
|
$
|
863,561
|
|
|
$
|
70,223
|
|
|
$
|
805,371
|
|
|
$
|
875,594
|
|
Loans held-for-sale
|
6,192
|
|
|
5,221
|
|
|
971
|
|
|
6,192
|
|
|
7,453
|
|
|
5,347
|
|
|
2,106
|
|
|
7,453
|
|
||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Deposits
|
$
|
1,217,261
|
|
|
$
|
1,217,625
|
|
|
$
|
—
|
|
|
$
|
1,217,625
|
|
|
$
|
1,197,259
|
|
|
$
|
1,197,577
|
|
|
$
|
—
|
|
|
$
|
1,197,577
|
|
Long-term debt
|
232,849
|
|
|
233,863
|
|
|
1,814
|
|
|
235,677
|
|
|
236,764
|
|
|
239,596
|
|
|
1,513
|
|
|
241,109
|
|
NOTE 17 – Mortgage Servicing Rights
|
Rollforward of Mortgage Servicing Rights
|
|
|
|
||||
|
Three Months Ended
March 31 |
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Balance, January 1
|
$
|
3,087
|
|
|
$
|
3,530
|
|
Additions
|
136
|
|
|
179
|
|
||
Sales
|
(1
|
)
|
|
—
|
|
||
Amortization of expected cash flows
(1)
|
(211
|
)
|
|
(230
|
)
|
||
Impact of changes in interest rates and other market factors
(2)
|
(376
|
)
|
|
(176
|
)
|
||
Model and other cash flow assumption changes:
(3)
|
|
|
|
||||
Projected cash flows, including changes in costs to service loans
|
—
|
|
|
87
|
|
||
Impact of changes in the Home Price Index
|
(10
|
)
|
|
(12
|
)
|
||
Impact of changes to the prepayment model
|
—
|
|
|
9
|
|
||
Other model changes
(4)
|
6
|
|
|
7
|
|
||
Balance, March 31
(5)
|
$
|
2,631
|
|
|
$
|
3,394
|
|
Mortgage loans serviced for investors (in billions)
|
$
|
386
|
|
|
$
|
475
|
|
(1)
|
Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows.
|
(2)
|
These amounts reflect the changes in modeled MSR fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve and periodic adjustments to valuation based on third-party discovery.
|
(3)
|
These amounts reflect periodic adjustments to the valuation model to reflect changes in the modeled relationship between inputs and their impact on projected cash flows as well as changes in certain cash flow assumptions such as cost to service and ancillary income per loan.
|
(4)
|
These amounts include the impact of periodic recalibrations of the model to reflect changes in the relationship between market interest rate spreads and projected cash flows.
|
(5)
|
At
March 31, 2016
, includes
$2.2 billion
of U.S. and
$479 million
of non-U.S. consumer MSR balances compared to
$3.1 billion
and
$286 million
at
March 31, 2015
.
|
Significant Economic Assumptions
|
|||||||||||
|
March 31, 2016
|
|
December 31, 2015
|
||||||||
|
Fixed
|
|
Adjustable
|
|
Fixed
|
|
Adjustable
|
||||
Weighted-average OAS
|
4.78
|
%
|
|
7.77
|
%
|
|
4.62
|
%
|
|
7.61
|
%
|
Weighted-average life, in years
|
3.79
|
|
|
3.20
|
|
|
4.46
|
|
|
3.43
|
|
Sensitivity Impacts
|
|||||||||||||
|
March 31, 2016
|
||||||||||||
|
Change in Weighted-average Lives
|
|
|
||||||||||
(Dollars in millions)
|
Fixed
|
|
Adjustable
|
|
Change in
Fair Value
|
||||||||
Prepayment rates
|
|
|
|
|
|
|
|
|
|
||||
Impact of 10% decrease
|
0.30
|
|
|
years
|
|
0.24
|
|
|
years
|
|
$
|
183
|
|
Impact of 20% decrease
|
0.64
|
|
|
|
|
0.52
|
|
|
|
|
394
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impact of 10% increase
|
(0.26
|
)
|
|
|
|
(0.21
|
)
|
|
|
|
(161
|
)
|
|
Impact of 20% increase
|
(0.48
|
)
|
|
|
|
(0.40
|
)
|
|
|
|
(304
|
)
|
|
OAS level
|
|
|
|
|
|
|
|
|
|
||||
Impact of 100 bps decrease
|
|
|
|
|
|
|
|
|
$
|
98
|
|
||
Impact of 200 bps decrease
|
|
|
|
|
|
|
|
|
203
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||
Impact of 100 bps increase
|
|
|
|
|
|
|
|
|
(90
|
)
|
|||
Impact of 200 bps increase
|
|
|
|
|
|
|
|
|
(174
|
)
|
NOTE 18 – Business Segment Information
|
Basis of Presentation
|
Results for Business Segments and All Other
|
|
|
|
|
|||||||||||||||||||
At and for the Three Months Ended March 31
|
|
|
|
|
|||||||||||||||||||
|
Total Corporation
(1)
|
|
Consumer Banking
|
|
Global Wealth &
Investment Management
|
||||||||||||||||||
(Dollars in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Net interest income (FTE basis)
|
$
|
9,386
|
|
|
$
|
9,626
|
|
|
$
|
5,185
|
|
|
$
|
4,872
|
|
|
$
|
1,489
|
|
|
$
|
1,351
|
|
Noninterest income
|
10,341
|
|
|
11,503
|
|
|
2,463
|
|
|
2,534
|
|
|
2,956
|
|
|
3,166
|
|
||||||
Total revenue, net of interest expense (FTE basis)
|
19,727
|
|
|
21,129
|
|
|
7,648
|
|
|
7,406
|
|
|
4,445
|
|
|
4,517
|
|
||||||
Provision for credit losses
|
997
|
|
|
765
|
|
|
560
|
|
|
716
|
|
|
25
|
|
|
23
|
|
||||||
Noninterest expense
|
14,816
|
|
|
15,827
|
|
|
4,266
|
|
|
4,367
|
|
|
3,250
|
|
|
3,458
|
|
||||||
Income before income taxes (FTE basis)
|
3,914
|
|
|
4,537
|
|
|
2,822
|
|
|
2,323
|
|
|
1,170
|
|
|
1,036
|
|
||||||
Income tax expense (FTE basis)
|
1,234
|
|
|
1,440
|
|
|
1,037
|
|
|
862
|
|
|
430
|
|
|
384
|
|
||||||
Net income
|
$
|
2,680
|
|
|
$
|
3,097
|
|
|
$
|
1,785
|
|
|
$
|
1,461
|
|
|
$
|
740
|
|
|
$
|
652
|
|
Period-end total assets
|
$
|
2,185,498
|
|
|
$
|
2,143,545
|
|
|
$
|
656,615
|
|
|
$
|
612,939
|
|
|
$
|
296,062
|
|
|
$
|
272,777
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Global Banking
|
|
Global Markets
|
||||||||||||||||||
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Net interest income (FTE basis)
|
|
|
|
|
$
|
2,489
|
|
|
$
|
2,215
|
|
|
$
|
1,189
|
|
|
$
|
981
|
|
||||
Noninterest income
|
|
|
|
|
1,909
|
|
|
2,187
|
|
|
2,762
|
|
|
3,210
|
|
||||||||
Total revenue, net of interest expense (FTE basis)
|
|
|
|
|
4,398
|
|
|
4,402
|
|
|
3,951
|
|
|
4,191
|
|
||||||||
Provision for credit losses
|
|
|
|
|
553
|
|
|
96
|
|
|
9
|
|
|
21
|
|
||||||||
Noninterest expense
|
|
|
|
|
2,159
|
|
|
2,132
|
|
|
2,432
|
|
|
3,140
|
|
||||||||
Income before income taxes (FTE basis)
|
|
|
|
|
1,686
|
|
|
2,174
|
|
|
1,510
|
|
|
1,030
|
|
||||||||
Income tax expense (FTE basis)
|
|
|
|
|
620
|
|
|
807
|
|
|
526
|
|
|
353
|
|
||||||||
Net income
|
|
|
|
|
$
|
1,066
|
|
|
$
|
1,367
|
|
|
$
|
984
|
|
|
$
|
677
|
|
||||
Period-end total assets
|
|
|
|
|
$
|
390,643
|
|
|
$
|
365,024
|
|
|
$
|
582,048
|
|
|
$
|
585,187
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
Legacy Assets & Servicing
|
|
All Other
|
||||||||||||||||
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Net interest income (FTE basis)
|
|
|
|
|
$
|
314
|
|
|
$
|
428
|
|
|
$
|
(1,280
|
)
|
|
$
|
(221
|
)
|
||||
Noninterest income
|
|
|
|
|
365
|
|
|
486
|
|
|
(114
|
)
|
|
(80
|
)
|
||||||||
Total revenue, net of interest expense (FTE basis)
|
|
|
|
|
679
|
|
|
914
|
|
|
(1,394
|
)
|
|
(301
|
)
|
||||||||
Provision for credit losses
|
|
|
|
|
(118
|
)
|
|
91
|
|
|
(32
|
)
|
|
(182
|
)
|
||||||||
Noninterest expense
|
|
|
|
|
860
|
|
|
1,200
|
|
|
1,849
|
|
|
1,530
|
|
||||||||
Loss before income taxes (FTE basis)
|
|
|
|
|
(63
|
)
|
|
(377
|
)
|
|
(3,211
|
)
|
|
(1,649
|
)
|
||||||||
Income tax benefit (FTE basis)
|
|
|
|
|
(23
|
)
|
|
(140
|
)
|
|
(1,356
|
)
|
|
(826
|
)
|
||||||||
Net loss
|
|
|
|
|
$
|
(40
|
)
|
|
$
|
(237
|
)
|
|
$
|
(1,855
|
)
|
|
$
|
(823
|
)
|
||||
Period-end total assets
|
|
|
|
|
$
|
38,928
|
|
|
$
|
53,620
|
|
|
$
|
221,202
|
|
|
$
|
253,998
|
|
(1)
|
There were no material intersegment revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment Reconciliations
|
|
||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2016
|
|
2015
|
||||
Segments' total revenue, net of interest expense (FTE basis)
|
$
|
21,121
|
|
|
$
|
21,430
|
|
Adjustments:
|
|
|
|
||||
ALM activities
|
(1,241
|
)
|
|
(210
|
)
|
||
Liquidating businesses and other
|
(153
|
)
|
|
(91
|
)
|
||
FTE basis adjustment
|
(215
|
)
|
|
(215
|
)
|
||
Consolidated revenue, net of interest expense
|
$
|
19,512
|
|
|
$
|
20,914
|
|
|
|
|
|
||||
Segments' total net income
|
$
|
4,535
|
|
|
$
|
3,920
|
|
Adjustments, net-of-taxes:
|
|
|
|
||||
ALM activities
|
(884
|
)
|
|
(228
|
)
|
||
Liquidating businesses and other
|
(971
|
)
|
|
(595
|
)
|
||
Consolidated net income
|
$
|
2,680
|
|
|
$
|
3,097
|
|
|
|
|
|
||||
|
March 31
|
||||||
|
2016
|
|
2015
|
||||
Segments' total assets
|
$
|
1,964,296
|
|
|
$
|
1,889,547
|
|
Adjustments:
|
|
|
|
||||
ALM activities, including securities portfolio
|
688,730
|
|
|
694,056
|
|
||
Equity investments
|
4,205
|
|
|
4,701
|
|
||
Liquidating businesses and other
|
59,888
|
|
|
68,187
|
|
||
Elimination of segment asset allocations to match liabilities
|
(531,621
|
)
|
|
(512,946
|
)
|
||
Consolidated total assets
|
$
|
2,185,498
|
|
|
$
|
2,143,545
|
|
Part II. OTHER INFORMATION
|
Item 1. Legal Proceedings
|
Item 1A. Risk Factors
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
(Dollars in millions, except per share information; shares in thousands)
|
Common Shares
Repurchased
(1)
|
|
Weighted-Average
Per Share Price
|
|
Shares Purchased as
Part of Publicly
Announced Programs
|
|
Remaining Buyback Authority Amounts
(2)
|
||||||
January 1 - 31, 2016
|
51,157
|
|
|
$
|
13.91
|
|
|
49,679
|
|
|
$
|
940
|
|
February 1 - 29, 2016
|
9,209
|
|
|
13.44
|
|
|
8,351
|
|
|
826
|
|
||
March 1 - 31, 2016
|
15,964
|
|
|
13.73
|
|
|
14,511
|
|
|
1,426
|
|
||
Three Months Ended March 31, 2016
|
76,330
|
|
|
13.81
|
|
|
|
|
|
(1)
|
Includes shares of the Corporation's common stock acquired by the Corporation in connection with satisfaction of tax withholding obligations on vested restricted stock or restricted stock units and certain forfeitures and terminations of employment-related awards under equity incentive plans.
|
(2)
|
On March 11, 2015, the Board of Directors authorized the repurchase of up to $4.0 billion of the Corporation's common stock through open market purchases or privately negotiated transactions, including Rule 10b5-1 plans, during the period from April 1, 2015 through June 30, 2016. On March 18, 2016, the Board of Directors authorized additional repurchases of common stock up to
$800 million
in addition to the March 11, 2015 resolution to offset the share count dilution resulting from equity incentive compensation awarded to retirement-eligible employees. Amounts shown in this column reflect the aggregate repurchase authority amounts considering the timing and effect of both authorizations. For additional information, see
Capital Management – CCAR and Capital Planning
on page
45
and
Note 11 – Shareholders' Equity
to the Consolidated Financial Statements.
|
Item 6. Exhibits
|
||
|
|
|
Exhibit 3(a)
|
|
Amended and Restated Certificate of Incorporation of the Corporation
(1)
|
|
|
|
Exhibit 3(b)
|
|
Amended and Restated Bylaws of the Corporation, as in effect on the date hereof, incorporated by reference to Exhibit 3.1 of the Corporation's Current Report on Form 8-K (File No. 1-6523) filed on March 20, 2015
|
|
|
|
Exhibit 10(a)
|
|
Form of Cash-settled Restricted Stock Units Award Agreement (February 2016) between the Corporation and certain executive officers of the Corporation, including certain Named Executive Officers
(1, 2)
|
|
|
|
Exhibit 10(b)
|
|
Form of Time-based Restricted Stock Units Award Agreement (February 2016) between the Corporation and certain executive officers of the Corporation, including certain Named Executive Officers
(1, 2)
|
|
|
|
Exhibit 10(c)
|
|
Form of Performance Restricted Stock Units Award Agreement (February 2016) between the Corporation and certain executive officers of the Corporation, including certain Named Executive Officers
(1, 2)
|
|
|
|
Exhibit 11
|
|
Earnings Per Share Computation – included in
Note 13 – Earnings Per Common Share
to the Consolidated Financial Statements
(1)
|
|
|
|
Exhibit 12
|
|
Ratio of Earnings to Fixed Charges
(1)
Ratio of Earnings to Fixed Charges and Preferred Dividends (1) |
|
|
|
Exhibit 31(a)
|
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 31(b)
|
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 32(a)
|
|
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)
|
|
|
|
Exhibit 32(b)
|
|
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)
|
|
|
|
Exhibit 101.INS
|
|
XBRL Instance Document
(1)
|
|
|
|
Exhibit 101.SCH
|
|
XBRL Taxonomy Extension Schema Document
(1)
|
|
|
|
Exhibit 101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
(1)
|
|
|
|
Exhibit 101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
(1)
|
|
|
|
Exhibit 101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
(1)
|
|
|
|
Exhibit 101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document
(1)
|
(1)
|
Filed herewith
|
(2)
|
Exhibit is a management contract or a compensatory plan or arrangement
|
|
|
Bank of America Corporation
Registrant
|
|
||
|
|
|
|
|
|
Date:
|
May 2, 2016
|
|
/s/ Rudolf A. Bless
|
|
|
|
|
|
Rudolf A. Bless
Chief Accounting Officer
|
|
Exhibit
|
|
Description
|
|
|
|
Exhibit 3(a)
|
|
Amended and Restated Certificate of Incorporation of the Corporation
(1)
|
|
|
|
Exhibit 3(b)
|
|
Amended and Restated Bylaws of the Corporation, as in effect on the date hereof, incorporated by reference to Exhibit 3.1 of the Corporation's Current Report on Form 8-K (File No. 1-6523) filed on March 20, 2015
|
|
|
|
Exhibit 10(a)
|
|
Form of Cash-settled Restricted Stock Units Award Agreement (February 2016) between the Corporation and certain executive officers of the Corporation, including certain Named Executive Officers
(1, 2)
|
|
|
|
Exhibit 10(b)
|
|
Form of Time-based Restricted Stock Units Award Agreement (February 2016) between the Corporation and certain executive officers of the Corporation, including certain Named Executive Officers
(1, 2)
|
|
|
|
Exhibit 10(c)
|
|
Form of Performance Restricted Stock Units Award Agreement (February 2016) between the Corporation and certain executive officers of the Corporation, including certain Named Executive Officers
(1, 2)
|
|
|
|
Exhibit 11
|
|
Earnings Per Share Computation – included in
Note 13 – Earnings Per Common Share
to the Consolidated Financial Statements
(1)
|
|
|
|
Exhibit 12
|
|
Ratio of Earnings to Fixed Charges
(1)
Ratio of Earnings to Fixed Charges and Preferred Dividends
(1)
|
|
|
|
Exhibit 31(a)
|
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 31(b)
|
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 32(a)
|
|
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)
|
|
|
|
Exhibit 32(b)
|
|
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)
|
|
|
|
Exhibit 101.INS
|
|
XBRL Instance Document
(1)
|
|
|
|
Exhibit 101.SCH
|
|
XBRL Taxonomy Extension Schema Document
(1)
|
|
|
|
Exhibit 101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
(1)
|
|
|
|
Exhibit 101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
(1)
|
|
|
|
Exhibit 101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
(1)
|
|
|
|
Exhibit 101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document
(1)
|
(1)
|
Filed herewith
|
(2)
|
Exhibit is a management contract or a compensatory plan or arrangement
|
Class
|
Number of Shares
|
|
Common
|
5,000,000,000
|
|
Preferred
|
100,000,000
|
|
BANKAMERICA CORPORATION
|
By:
|
/s/ Hugh L. McColl, Jr.
|
Name:
|
Hugh L. McColl, Jr.
|
Title:
|
Chairman of the Board and Chief Executive Officer
|
By:
|
/s/ James W. Kiser
|
|
James W. Kiser
|
|
Secretary
|
Class
|
Number of Shares
|
|
Common
|
7,500,000,000
|
|
Preferred
|
100,000,000."
|
|
By:
|
/s/ James H. Hance, Jr.
|
Name:
|
James H. Hance, Jr.
|
Title:
|
Vice Chairman and Chief Financial Officer
|
Redemption Period
|
Redemption
Price Per
Share
|
|
Redemption
Price Per
Depositary
Share
|
||
April 2, 2004 to March 31, 2005
|
252.50
|
|
|
50.50
|
|
April 1, 2005 to March 31, 2006
|
251.25
|
|
|
50.25
|
|
On or after April 1, 2006
|
250.00
|
|
|
50.00
|
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ James H. Hance, Jr.
|
|
Vice Chairman and Chief Financial Officer
|
ATTEST:
|
|
|
|
/s/ Rachel R. Cummings
|
|
Corporate Secretary
|
|
|
|
(Corporate Seal)
|
|
Redemption Period
|
Redemption Price Per
Share
|
|
Redemption Price Per Depositary Share
|
||
April 2, 2004 to April 14, 2004
|
253.75
|
|
|
50.75
|
|
April 15, 2004 to April 14, 2005
|
252.50
|
|
|
50.50
|
|
April 15, 2005 to April 14, 2006
|
251.25
|
|
|
50.25
|
|
On or after April 15, 2006
|
250.00
|
|
|
50.00
|
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ James H. Hance, Jr.
|
|
Vice Chairman and Chief Financial Officer
|
ATTEST:
|
|
|
|
|
|
/s/ Rachel R. Cummings
|
|
|
Corporate Secretary
|
|
|
|
|
|
(Corporate Seal)
|
|
Name
|
|
State of Incorporation
|
FleetBoston Financial Corporation
|
|
Rhode Island
|
Bank of America Corporation
|
|
Delaware
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ James H. Hance, Jr.
|
Name:
|
James H. Hance, Jr.
|
Title:
|
Chief Financial Officer
|
FIRST:
|
The name and state of incorporation of each of the constituent corporations (the “Constituent Corporations”) in the Merger are:
|
||
|
Name:
|
|
State of Incorporation
|
|
Bank of America Corporation
|
|
Delaware
|
|
MBNA Corporation
|
|
Maryland
|
SECOND:
|
The Agreement and Plan of Merger, dated as of June 30, 2005, by and between MBNA and Bank of America (the “Plan of Merger”), setting forth the terms and conditions of the Merger has been approved, adopted, certified, executed and acknowledged by each of the Constituent Corporations in accordance with the requirements of Section 252 of the DGCL.
|
||
THIRD:
|
The name of the surviving corporation of the Merger (the “Surviving Corporation”) is Bank of America
Corporation.
|
||
FOURTH:
|
The Amended and Restated Certificate of Incorporation of Bank of America in effect immediately prior to the effective time of the Merger shall be the certificate of incorporation of the Surviving Corporation.
|
||
FIFTH:
|
The executed Plan of Merger is on file at the principal place of business of the Surviving Corporation at
Bank of America Corporate Center, 100 N. Tryon Street, Charlotte, North Carolina 28255.
|
||
SIXTH:
|
A copy of the Plan of Merger will be furnished by the Surviving Corporation, on request and without cost, to any stockholder of either Constituent Corporation.
|
||
SEVENTH:
|
The authorized capital stock of MBNA consisted of 1,500,000,000 shares of
|
||
|
|
|
|
|
common stock, par value $0.01 per share, and 20,000,000 shares of preferred stock, par value $0.01 per share.
|
||
EIGHTH:
|
The Merger shall become effective as of 12:01 a.m., Eastern time, on January 1, 2006.
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ WILLIAM J. MOSTYN
|
Name:
|
William J. Mostyn
|
Title:
|
Secretary
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ Teresa M. Brenner
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANKAMERICA CORPORATION
|
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
Effective Date
|
|
$40.00
|
|
$41.00
|
|
$42.00
|
|
$44.00
|
|
$47.00
|
|
$50.00
|
|
$60.00
|
|
$80.00
|
|
$110.00
|
|
$150.00
|
|
$200.00
|
||||
|
|
5.00
|
|
4.79
|
|
4.61
|
|
4.20
|
|
3.68
|
|
3.25
|
|
2.14
|
|
1.04
|
|
|
0.51
|
|
|
0.27
|
|
|
0.14
|
|
1/24/2008
|
|
00
|
|
93
|
|
90
|
|
23
|
|
51
|
|
40
|
|
50
|
|
50
|
|
|
64
|
|
|
65
|
|
|
68
|
|
|
|
5.00
|
|
4.75
|
|
4.46
|
|
4.13
|
|
3.57
|
|
3.17
|
|
2.03
|
|
0.95
|
|
|
0.46
|
|
|
0.24
|
|
|
0.12
|
|
1/30/2009
|
|
00
|
|
12
|
|
43
|
|
86
|
|
02
|
|
60
|
|
17
|
|
63
|
|
|
82
|
|
|
80
|
|
|
85
|
|
|
|
5.00
|
|
4.64
|
|
4.29
|
|
3.98
|
|
3.38
|
|
2.93
|
|
1.76
|
|
0.64
|
|
|
0.22
|
|
|
0.10
|
|
|
0.03
|
|
1/30/2010
|
|
00
|
|
39
|
|
29
|
|
86
|
|
30
|
|
00
|
|
17
|
|
62
|
|
|
87
|
|
|
33
|
|
|
90
|
|
|
|
5.00
|
|
4.60
|
|
4.24
|
|
3.92
|
|
3.31
|
|
2.80
|
|
1.56
|
|
0.53
|
|
|
0.19
|
|
|
0.10
|
|
|
0.05
|
|
1/30/2011
|
|
00
|
|
49
|
|
29
|
|
50
|
|
70
|
|
40
|
|
50
|
|
00
|
|
|
64
|
|
|
67
|
|
|
00
|
|
|
|
5.00
|
|
4.57
|
|
4.24
|
|
3.83
|
|
3.25
|
|
2.58
|
|
1.26
|
|
0.23
|
|
|
0.07
|
|
|
0.04
|
|
|
0.02
|
|
1/30/2012
|
|
00
|
|
80
|
|
05
|
|
86
|
|
96
|
|
40
|
|
67
|
|
13
|
|
|
55
|
|
|
29
|
|
|
06
|
|
|
|
5.00
|
|
4.53
|
|
4.22
|
|
3.79
|
|
3.16
|
|
2.52
|
|
1.02
|
|
|
|
|
|
|
|
|
||||
1/30/2013
|
|
00
|
|
66
|
|
14
|
|
32
|
|
60
|
|
60
|
|
17
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
5.00
|
|
4.53
|
|
4.22
|
|
3.79
|
|
3.16
|
|
2.52
|
|
1.02
|
|
|
|
|
|
|
|
|
||||
Thereafter
|
|
00
|
|
66
|
|
14
|
|
32
|
|
60
|
|
60
|
|
17
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
OS
1
|
OS
0
|
OS
1
|
OS
0
|
OS
0
+ X
|
OS
0
+ Y
|
SP
0
|
SP
0
- FMV
|
MP
0
+ MP
s
|
MP
0
|
Sp
0
|
Sp
0
- DIV
|
AC + (SP
0
X OS
1
)
|
OS
0x
Sp
0
|
BANK OF AMERICA CORPORATION
|
|
|
|
/s/ TERESA M. BRENNER
|
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
/s/ TERESA M. BRENNER
|
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
Class
|
Number of Shares
|
Common
|
10000000000
|
Preferred
|
100,000,000."
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
Class
|
Number of Shares
|
|
Common
|
11,300,000,000
|
|
Preferred
|
100,000,000."
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
Class
|
Number of Shares
|
|
Common
|
12,800,000,000
|
|
Preferred
|
100,000,000."
|
|
By:
|
/s/ TERESA M. BRENNER
|
Name:
|
Teresa M. Brenner
|
Title:
|
Associate General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ MARK D. LINSZ
|
Name:
|
Mark D. Linsz
|
Title:
|
Corporate Treasurer
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ ROSS E. JEFFRIES JR.
|
Name:
|
Ross E. Jeffries, Jr.
|
Title:
|
Corporate Secretary and Associate General Council
|
1.
|
The Certificate of Designations of the Corporation’s 6% Cumulative Perpetual Preferred Stock, Series T, which was previously filed with the Secretary of State of the State of Delaware on August 31, 2011, is hereby amended and restated in its entirety to read as follows:
|
BANK OF AMERICA CORPORATION
|
|
|
|
By:
|
/s/ ROSS E. JEFFRIES JR.
|
Name:
|
Ross E. Jeffries, Jr.
|
Title:
|
Deputy General Counsel, and Corporate Secretary
|
BANK OF AMERICA CORPORATION
|
|
|
|
|
|
By:
|
/s/ ROSS E. JEFFRIES, JR.
|
Name:
|
Ross E. Jeffries, Jr.
|
Title:
|
Corporate Secretary and Deputy General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
|
|
By:
|
/s/ Ross E. Jeffries, Jr.
|
Name:
|
Ross E. Jeffries, Jr.
|
Title:
|
Corporate Secretary and Deputy General Counsel
|
BANK OF AMERICA CORPORATION
|
|
|
|
|
|
By:
|
/s/ ROSS E. JEFFRIES, JR.
|
Name:
|
Ross E. Jeffries, Jr.
|
Title:
|
Deputy General Counsel and Corporate Secretary
|
BANK OF AMERICA CORPORATION
|
|
|
|
|
|
By:
|
/s/ Ross E. Jeffries, Jr.
|
Name:
|
Ross E. Jeffries, Jr.
|
Title:
|
Corporate Secretary and Deputy General Counsel
|
By:
|
/s/ ROSS E. JEFFRIES, JR.
|
Name:
|
Ross E. Jeffries, Jr.
|
Title:
|
Deputy General Counsel
|
|
and Corporate Secretary
|
By:
|
/s/ ROSS E. JEFFRIES, JR.
|
Name:
|
Ross E. Jeffries, Jr.
|
Title:
|
Deputy General Counsel
|
|
and Corporate Secretary
|
|
BANK OF AMERICA CORPORATION
|
||
|
|
|
|
|
By:
|
/s/ Ross E. Jeffries, Jr.
|
|
|
|
Ross E. Jeffries, Jr.
|
|
|
|
Deputy General Counsel and Corporate Secretary
|
|
|
BANK OF AMERICA CORPORATION
|
||
|
|
|
|
|
By:
|
/s/ Ross E. Jeffries, Jr.
|
|
|
|
Ross E. Jeffries, Jr.
|
|
|
|
Deputy General Counsel and Corporate Secretary
|
|
|
BANK OF AMERICA CORPORATION
|
||
|
|
|
|
|
By:
|
/s/ Ross E. Jeffries, Jr.
|
|
|
|
Ross E. Jeffries, Jr.
|
|
|
|
Deputy General Counsel and Corporate Secretary
|
|
1.
|
Review the Award Agreement to ensure you understand its provisions. With each award you receive, provisions of your Award Agreement may change so it is important to review your Award Agreement.
|
2.
|
Print the Award Agreement and file it with your important papers.
|
3.
|
Designate your beneficiary on the Benefits OnLine® Beneficiary tab.
|
Granted To :
|
Grant Date :
|
Grant Type :
|
Grant Code :
|
Number Granted :
|
1.
|
Review the Award Agreement to ensure you understand its provisions. With each award you receive, provisions of your Award Agreement may change so it is important to review your Award Agreement.
|
2.
|
Print the Award Agreement and file it with your important papers.
|
3.
|
Accept your Award Agreement through the online acceptance process.*
|
4.
|
Designate your beneficiary on the Benefits OnLine® Beneficiary tab.
|
5.
|
More detailed information about competitive businesses can be found on HR Connect under Money / Pay / Incentive plans & awards / How Performance Plan awards are paid, to the extent that the competition restriction is applicable to you, as described in this Award Agreement.
|
Granted To :
|
Grant Date :
|
Grant Type :
|
Grant Code :
|
Number Granted :
|
1.
|
Review the Award Agreement to ensure you understand its provisions. With each award you receive, provisions of your Award Agreement may change so it is important to review your Award Agreement.
|
2.
|
Print the Award Agreement and file it with your important papers.
|
3.
|
Accept your Award Agreement through the online acceptance process.*
|
4.
|
Designate your beneficiary on the Benefits OnLine® Beneficiary tab.
|
5.
|
More detailed information about competitive businesses can be found on HR Connect under Money / Pay / Incentive plans & awards / How Performance Plan awards are paid, to the extent that the competition restriction is applicable to you, as described in this Award Agreement.
|
Granted To :
|
Grant Date :
|
Grant Type :
|
Grant Code :
|
Number Granted :
|
3-year Average ROA
(50% Weighting)
|
3-year Average Growth in Adjusted TBV
(50% Weighting)
|
||
ROA
|
% Earned Based on Goal Achievement
|
Adjusted TBV
|
% Earned Based on Goal Achievement
|
Less than 50 bps
|
0%
|
Less than 5.25%
|
0%
|
50 bps
|
33-1/3%
|
5.25%
|
33-1/3%
|
65 bps
|
66-2/3%
|
7.00%
|
66-2/3%
|
80 bps
|
100%
|
8.50%
|
100%
|
100 bps
|
125%
|
11.50%
|
125%
|
Bank of America Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
Exhibit 12
|
|
|||||||||||||
Ratio of Earnings to Fixed Charges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends
|
|||||||||||||||||||||||
|
|
|
Year Ended December 31
|
||||||||||||||||||||
(Dollars in millions)
|
Three Months Ended March 31, 2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
Excluding Interest on Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes
|
$
|
3,699
|
|
|
$
|
22,154
|
|
|
$
|
6,855
|
|
|
$
|
16,172
|
|
|
$
|
3,072
|
|
|
$
|
(230
|
)
|
Equity in undistributed earnings (loss) of unconsolidated subsidiaries
|
(14
|
)
|
|
(152
|
)
|
|
(222
|
)
|
|
(66
|
)
|
|
212
|
|
|
596
|
|
||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
2,299
|
|
|
9,688
|
|
|
9,854
|
|
|
11,359
|
|
|
14,754
|
|
|
18,618
|
|
||||||
1/3 of net rent expense
(1)
|
224
|
|
|
945
|
|
|
1,023
|
|
|
1,091
|
|
|
1,092
|
|
|
1,072
|
|
||||||
Total fixed charges
|
2,523
|
|
|
10,633
|
|
|
10,877
|
|
|
12,450
|
|
|
15,846
|
|
|
19,690
|
|
||||||
Preferred dividend requirements
(2)
|
631
|
|
|
2,068
|
|
|
1,481
|
|
|
1,767
|
|
|
1,080
|
|
|
n/m
|
|
||||||
Fixed charges and preferred dividends
|
3,154
|
|
|
12,701
|
|
|
12,358
|
|
|
14,217
|
|
|
16,926
|
|
|
19,690
|
|
||||||
Earnings
|
$
|
6,208
|
|
|
$
|
32,635
|
|
|
$
|
17,510
|
|
|
$
|
28,556
|
|
|
$
|
19,130
|
|
|
$
|
20,056
|
|
Ratio of earnings to fixed charges
|
2.46
|
|
|
3.07
|
|
|
1.61
|
|
|
2.29
|
|
|
1.21
|
|
|
1.02
|
|
||||||
Ratio of earnings to fixed charges and preferred dividends
|
1.97
|
|
|
2.57
|
|
|
1.42
|
|
|
2.01
|
|
|
1.13
|
|
|
1.02
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Year Ended December 31
|
||||||||||||||||||||
(Dollars in millions)
|
Three Months Ended March 31, 2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
Including Interest on Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes
|
$
|
3,699
|
|
|
$
|
22,154
|
|
|
$
|
6,855
|
|
|
$
|
16,172
|
|
|
$
|
3,072
|
|
|
$
|
(230
|
)
|
Equity in undistributed earnings (loss) of unconsolidated subsidiaries
|
(14
|
)
|
|
(152
|
)
|
|
(222
|
)
|
|
(66
|
)
|
|
212
|
|
|
596
|
|
||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
2,524
|
|
|
10,549
|
|
|
10,934
|
|
|
12,755
|
|
|
16,744
|
|
|
21,620
|
|
||||||
1/3 of net rent expense
(1)
|
224
|
|
|
945
|
|
|
1,023
|
|
|
1,091
|
|
|
1,092
|
|
|
1,072
|
|
||||||
Total fixed charges
|
2,748
|
|
|
11,494
|
|
|
11,957
|
|
|
13,846
|
|
|
17,836
|
|
|
22,692
|
|
||||||
Preferred dividend requirements
(2)
|
631
|
|
|
2,068
|
|
|
1,481
|
|
|
1,767
|
|
|
1,080
|
|
|
n/m
|
|
||||||
Fixed charges and preferred dividends
|
3,379
|
|
|
13,562
|
|
|
13,438
|
|
|
15,613
|
|
|
18,916
|
|
|
22,692
|
|
||||||
Earnings
|
$
|
6,433
|
|
|
$
|
33,496
|
|
|
$
|
18,590
|
|
|
$
|
29,952
|
|
|
$
|
21,120
|
|
|
$
|
23,058
|
|
Ratio of earnings to fixed charges
|
2.34
|
|
|
2.91
|
|
|
1.55
|
|
|
2.16
|
|
|
1.18
|
|
|
1.02
|
|
||||||
Ratio of earnings to fixed charges and preferred dividends
|
1.90
|
|
|
2.47
|
|
|
1.38
|
|
|
1.92
|
|
|
1.12
|
|
|
1.02
|
|
(1)
|
Represents an appropriate interest factor.
|
(2)
|
The loss before income taxes for 2011 reflects the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges, which resulted in a negative preferred dividend requirement.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Bank of America Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 2, 2016
|
/s/ Brian T. Moynihan
Brian T. Moynihan
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Bank of America Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 2, 2016
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/s/ Paul M. Donofrio
Paul M. Donofrio
Chief Financial Officer
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1.
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I am the Chief Executive Officer of Bank of America Corporation (the registrant).
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2.
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I hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
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•
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the Quarterly Report on Form 10-Q of the registrant for the quarter ended
March 31, 2016
(the periodic report) containing financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
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•
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the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented.
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Date:
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May 2, 2016
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/s/ Brian T. Moynihan
Brian T. Moynihan
Chief Executive Officer
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1.
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I am the Chief Financial Officer of Bank of America Corporation (the registrant).
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2.
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I hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
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•
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the Quarterly Report on Form 10-Q of the registrant for the quarter ended
March 31, 2016
(the periodic report) containing financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
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•
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the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented.
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Date:
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May 2, 2016
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/s/ Paul M. Donofrio
Paul M. Donofrio
Chief Financial Officer
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