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[
]
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2017
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.01 per share
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New York Stock Exchange
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Warrants to purchase Common Stock (expiring October 28, 2018)
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New York Stock Exchange
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Warrants to purchase Common Stock (expiring January 16, 2019)
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,000th interest in a share of 6.204% Non-Cumulative
Preferred Stock, Series D
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,000th interest in a share of Floating Rate Non-Cumulative
Preferred Stock, Series E
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Non-Cumulative
Preferred Stock, Series I
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Non-Cumulative
Preferred Stock, Series W
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,000th interest in a share of 6.500% Non-Cumulative
Preferred Stock, Series Y
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,000th interest in a share of 6.200% Non-Cumulative
Preferred Stock, Series CC
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,000th interest in a share of 6.000% Non-Cumulative Preferred Stock, Series EE
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New York Stock Exchange
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Title of each class
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Name of each exchange on which registered
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7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 1
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 2
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation 6.375% Non-Cumulative Preferred Stock, Series 3
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 4
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New York Stock Exchange
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Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 5
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New York Stock Exchange
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7.00% Capital Securities of Countrywide Capital V (and the guarantees related thereto)
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New York Stock Exchange
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Floating Rate Preferred Hybrid Income Term Securities of BAC Capital Trust XIII (and the guarantee related thereto)
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New York Stock Exchange
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5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities of BAC Capital Trust XIV (and the guarantee related thereto)
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New York Stock Exchange
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MBNA Capital B Floating Rate Capital Securities, Series B (and the guarantee related thereto)
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New York Stock Exchange
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Trust Preferred Securities of Merrill Lynch Capital Trust I (and the guarantee of the Registrant with respect thereto)
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New York Stock Exchange
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Trust Preferred Securities of Merrill Lynch Capital Trust III (and the guarantee of the Registrant with respect thereto)
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New York Stock Exchange
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Senior Medium-Term Notes, Series A, Step Up Callable Notes, due November 28, 2031 of BofA Finance LLC (and the guarantee of the Registrant with respect thereto)
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New York Stock Exchange
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Large accelerated filer
☑
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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(do not check if a smaller reporting company)
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Page
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Item 1A
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Item 16.
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1
Bank of America 2017
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Bank of America 2017
2
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3
Bank of America 2017
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Bank of America 2017
4
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5
Bank of America 2017
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Bank of America 2017
6
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7
Bank of America 2017
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Bank of America 2017
8
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9
Bank of America 2017
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Bank of America 2017
10
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11
Bank of America 2017
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Bank of America 2017
12
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13
Bank of America 2017
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Bank of America 2017
14
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15
Bank of America 2017
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Facility Name
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Location
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General Character of the Physical Property
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Primary Business Segment
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Property Status
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Property Square Feet
(1)
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Bank of America Corporate Center
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Charlotte, NC
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60 Story Building
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Principal Executive Offices
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Owned
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1,212,177
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Bank of America Tower at One Bryant Park
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New York, NY
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55 Story Building
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GWIM, Global Banking
and
Global Markets
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Leased
(2)
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1,836,575
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Bank of America Merrill Lynch Financial Centre
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London, UK
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4 Building Campus
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Global Banking
and
Global Markets
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Leased
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562,595
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Cheung Kong Center
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Hong Kong
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62 Story Building
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Global Banking
and
Global Markets
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Leased
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149,790
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(1)
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For leased properties, property square feet represents the square footage occupied by the Corporation.
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(2)
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The Corporation has a 49.9 percent joint venture interest in this property.
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Bank of America 2017
16
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Quarter
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High
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Low
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Dividend
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||||||
2016
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First
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$
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16.43
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$
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11.16
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$
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0.05
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Second
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15.11
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12.18
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0.05
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Third
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16.19
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12.74
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0.075
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Fourth
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23.16
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15.63
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0.075
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2017
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First
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25.50
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22.05
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0.075
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Second
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24.32
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22.23
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0.075
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Third
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25.45
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22.89
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0.12
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Fourth
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29.88
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25.45
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0.12
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||||||
(Dollars in millions, except per share information; shares in thousands)
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Common Shares Repurchased
(1)
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Weighted-Average Per Share Price
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Shares
Purchased as
Part of Publicly Announced Programs |
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Remaining Buyback
Authority Amounts
(2)
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||||||
October 1 - 31, 2017
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32,986
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$
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26.92
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32,982
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$
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9,040
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November 1 - 30, 2017
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68,951
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27.23
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68,951
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7,162
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December 1 - 31, 2017
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72,075
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29.18
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72,073
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10,059
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Three months ended December 31, 2017
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174,012
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27.98
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(1)
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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.
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(2)
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On June 28, 2017, following the Federal Reserve’s non-objection to our 2017 CCAR capital plan, the Board authorized the repurchase of $12.0 billion in common stock from July 1, 2017 through June 30, 2018, plus approximately $900 million to offset the effect of equity-based compensation plans during the same period. On December 5, 2017, the Corporation announced that the Board authorized the repurchase of an additional $5.0 billion of common stock by June 30, 2018. During the
three months ended December 31, 2017
, pursuant to the Board’s authorizations, the Corporation repurchased approximately $
4.9 billion
of common stock, which included common stock to offset equity-based compensation awards. For more information, see Capital Management -- CCAR and Capital Planning on page
45
and
Note 13 – Shareholders’ Equity
to the Consolidated Financial Statements.
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17
Bank of America 2017
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Table of Contents
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Page
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Interest Rate Risk Management for the Banking Book
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201
6 Compared to 2015
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Non-GAAP Reconciliations
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Bank of America 2017
18
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19
Bank of America 2017
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Bank of America 2017
20
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||||
Table 1
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Selected Financial Data
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||||
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(Dollars in millions, except per share information)
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2017
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2016
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|||||
Income statement
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Revenue, net of interest expense
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$
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87,352
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$
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83,701
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Net income
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18,232
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17,822
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Diluted earnings per common share
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1.56
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1.49
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Dividends paid per common share
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0.39
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0.25
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Performance ratios
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|||||
Return on average assets
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0.80
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%
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0.81
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%
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|||
Return on average common shareholders’ equity
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6.72
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6.69
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Return on average tangible common shareholders’ equity
(1)
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9.41
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9.51
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Efficiency ratio
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62.67
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65.81
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|||
Balance sheet at year end
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|||
Total loans and leases
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$
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936,749
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$
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906,683
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Total assets
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2,281,234
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2,188,067
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|||
Total deposits
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1,309,545
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1,260,934
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|||
Total common shareholders’ equity
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244,823
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240,975
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|||
Total shareholders’ equity
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267,146
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266,195
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(1)
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Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to accounting principles generally accepted in the United States of America (GAAP) financial measures, see
Non-GAAP Reconciliations
on page
88
.
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||||
Table 2
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Summary Income Statement
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|
||||
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||||
(Dollars in millions)
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2017
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2016
|
|||||
Net interest income
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$
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44,667
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$
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41,096
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Noninterest income
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42,685
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42,605
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|||
Total revenue, net of interest expense
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87,352
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83,701
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|||
Provision for credit losses
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3,396
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3,597
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|||
Noninterest expense
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54,743
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55,083
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|||
Income before income taxes
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29,213
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25,021
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|||
Income tax expense
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10,981
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7,199
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|||
Net income
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18,232
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17,822
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|||
Preferred stock dividends
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1,614
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1,682
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|||
Net income applicable to common shareholders
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$
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16,618
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$
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16,140
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||||
Per common share information
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|||||
Earnings
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$
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1.63
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$
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1.57
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Diluted earnings
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1.56
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1.49
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21
Bank of America 2017
|
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||||
Table 3
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Noninterest Income
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|
||||
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||||||
(Dollars in millions)
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2017
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2016
|
|||||
Card income
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$
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5,902
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$
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5,851
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Service charges
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7,818
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7,638
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|||
Investment and brokerage services
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13,281
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|
12,745
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|||
Investment banking income
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6,011
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|
5,241
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|||
Trading account profits
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7,277
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|
6,902
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|||
Mortgage banking income
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224
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|
1,853
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|||
Gains on sales of debt securities
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255
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|
490
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|||
Other income
|
1,917
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|
|
1,885
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|||
Total noninterest income
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$
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42,685
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$
|
42,605
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●
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Service charges
increased
$180 million
primarily driven by the impact of pricing strategies and higher treasury services-related revenue.
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●
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Investment and brokerage services income
increased
$536 million
primarily driven by the impact of assets under management (AUM) flows and higher market valuations, partially offset by the impact of changing market dynamics on transactional revenue and AUM pricing.
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●
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Investment banking income
increased
$770 million
primarily due to higher advisory fees and higher debt and equity issuance fees.
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●
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Trading account profits
increased
$375 million
primarily due to increased client financing activity in equities, partially offset by weaker performance across most fixed-income products.
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●
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Mortgage banking income
decreased
$1.6 billion
primarily driven by lower net servicing income due to lower net mortgage servicing rights (MSR) results, and lower production income primarily due to lower volume.
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●
|
Gains on sales of debt securities
decreased
$235 million
primarily driven by lower activity.
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●
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Other income remained relatively unchanged. Included was a $793 million pre-tax gain recognized in connection with the sale of the non-U.S. consumer credit card business and a downward valuation adjustment of $946 million on tax-advantaged energy investments in connection with the Tax Act.
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|
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|
||||
Table 4
|
Noninterest Expense
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|
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|
||||
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|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||
Personnel
|
$
|
31,642
|
|
|
$
|
31,748
|
|
|
Occupancy
|
4,009
|
|
|
4,038
|
|
|||
Equipment
|
1,692
|
|
|
1,804
|
|
|||
Marketing
|
1,746
|
|
|
1,703
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|
|||
Professional fees
|
1,888
|
|
|
1,971
|
|
|||
Data processing
|
3,139
|
|
|
3,007
|
|
|||
Telecommunications
|
699
|
|
|
746
|
|
|||
Other general operating
|
9,928
|
|
|
10,066
|
|
|||
Total noninterest expense
|
$
|
54,743
|
|
|
$
|
55,083
|
|
|
|
|
|
|
||||
Table 5
|
Income Tax Expense
|
|
|
|
||||
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|
||||||
(Dollars in millions)
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2017
|
|
2016
|
|||||
Income before income taxes
|
$
|
29,213
|
|
|
$
|
25,021
|
|
|
Income tax expense
|
10,981
|
|
|
7,199
|
|
|||
Effective tax rate
|
37.6
|
%
|
|
28.8
|
%
|
|
|
Bank of America 2017
22
|
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|
|||||
Table 6
|
Selected Balance Sheet Data
|
|
|
|
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|
|||||
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|
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|
|||||
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|
December 31
|
|
|
|||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
% Change
|
||||||
Assets
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
157,434
|
|
|
$
|
147,738
|
|
|
7
|
%
|
|
Federal funds sold and securities borrowed or purchased under agreements to resell
|
212,747
|
|
|
198,224
|
|
|
7
|
|
|||
Trading account assets
|
209,358
|
|
|
180,209
|
|
|
16
|
|
|||
Debt securities
|
440,130
|
|
|
430,731
|
|
|
2
|
|
|||
Loans and leases
|
936,749
|
|
|
906,683
|
|
|
3
|
|
|||
Allowance for loan and lease losses
|
(10,393
|
)
|
|
(11,237
|
)
|
|
(8
|
)
|
|||
All other assets
|
335,209
|
|
|
335,719
|
|
|
—
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|
|||
Total assets
|
$
|
2,281,234
|
|
|
$
|
2,188,067
|
|
|
4
|
|
|
Liabilities
|
|
|
|
|
|
||||||
Deposits
|
$
|
1,309,545
|
|
|
$
|
1,260,934
|
|
|
4
|
|
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
176,865
|
|
|
170,291
|
|
|
4
|
|
|||
Trading account liabilities
|
81,187
|
|
|
63,031
|
|
|
29
|
|
|||
Short-term borrowings
|
32,666
|
|
|
23,944
|
|
|
36
|
|
|||
Long-term debt
|
227,402
|
|
|
216,823
|
|
|
5
|
|
|||
All other liabilities
|
186,423
|
|
|
186,849
|
|
|
—
|
|
|||
Total liabilities
|
2,014,088
|
|
|
1,921,872
|
|
|
5
|
|
|||
Shareholders’ equity
|
267,146
|
|
|
266,195
|
|
|
—
|
|
|||
Total liabilities and shareholders’ equity
|
$
|
2,281,234
|
|
|
$
|
2,188,067
|
|
|
4
|
|
23
Bank of America 2017
|
|
|
|
|
Bank of America 2017
24
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table 7
|
Five-year Summary of Selected Financial Data
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions, except per share information)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||
Income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
44,667
|
|
|
$
|
41,096
|
|
|
$
|
38,958
|
|
|
$
|
40,779
|
|
|
$
|
40,719
|
|
|
Noninterest income
|
42,685
|
|
|
42,605
|
|
|
44,007
|
|
|
45,115
|
|
|
46,783
|
|
||||||
Total revenue, net of interest expense
|
87,352
|
|
|
83,701
|
|
|
82,965
|
|
|
85,894
|
|
|
87,502
|
|
||||||
Provision for credit losses
|
3,396
|
|
|
3,597
|
|
|
3,161
|
|
|
2,275
|
|
|
3,556
|
|
||||||
Noninterest expense
|
54,743
|
|
|
55,083
|
|
|
57,617
|
|
|
75,656
|
|
|
69,213
|
|
||||||
Income before income taxes
|
29,213
|
|
|
25,021
|
|
|
22,187
|
|
|
7,963
|
|
|
14,733
|
|
||||||
Income tax expense
|
10,981
|
|
|
7,199
|
|
|
6,277
|
|
|
2,443
|
|
|
4,194
|
|
||||||
Net income
|
18,232
|
|
|
17,822
|
|
|
15,910
|
|
|
5,520
|
|
|
10,539
|
|
||||||
Net income applicable to common shareholders
|
16,618
|
|
|
16,140
|
|
|
14,427
|
|
|
4,476
|
|
|
9,190
|
|
||||||
Average common shares issued and outstanding
|
10,196
|
|
|
10,284
|
|
|
10,462
|
|
|
10,528
|
|
|
10,731
|
|
||||||
Average diluted common shares issued and outstanding
|
10,778
|
|
|
11,047
|
|
|
11,236
|
|
|
10,585
|
|
|
11,491
|
|
||||||
Performance ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Return on average assets
|
0.80
|
%
|
|
0.81
|
%
|
|
0.74
|
%
|
|
0.26
|
%
|
|
0.49
|
%
|
||||||
Return on average common shareholders’ equity
|
6.72
|
|
|
6.69
|
|
|
6.28
|
|
|
2.01
|
|
|
4.21
|
|
||||||
Return on average tangible common shareholders’ equity
(1)
|
9.41
|
|
|
9.51
|
|
|
9.16
|
|
|
2.98
|
|
|
6.35
|
|
||||||
Return on average shareholders’ equity
|
6.72
|
|
|
6.70
|
|
|
6.33
|
|
|
2.32
|
|
|
4.51
|
|
||||||
Return on average tangible shareholders’ equity
(1)
|
9.08
|
|
|
9.17
|
|
|
8.88
|
|
|
3.34
|
|
|
6.58
|
|
||||||
Total ending equity to total ending assets
|
11.71
|
|
|
12.17
|
|
|
11.92
|
|
|
11.57
|
|
|
11.06
|
|
||||||
Total average equity to total average assets
|
11.96
|
|
|
12.14
|
|
|
11.64
|
|
|
11.11
|
|
|
10.81
|
|
||||||
Dividend payout
|
24.24
|
|
|
15.94
|
|
|
14.49
|
|
|
28.20
|
|
|
4.66
|
|
||||||
Per common share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings
|
$
|
1.63
|
|
|
$
|
1.57
|
|
|
$
|
1.38
|
|
|
$
|
0.43
|
|
|
$
|
0.86
|
|
|
Diluted earnings
|
1.56
|
|
|
1.49
|
|
|
1.31
|
|
|
0.42
|
|
|
0.83
|
|
||||||
Dividends paid
|
0.39
|
|
|
0.25
|
|
|
0.20
|
|
|
0.12
|
|
|
0.04
|
|
||||||
Book value
|
23.80
|
|
|
23.97
|
|
|
22.48
|
|
|
21.32
|
|
|
20.69
|
|
||||||
Tangible book value
(1)
|
16.96
|
|
|
16.89
|
|
|
15.56
|
|
|
14.43
|
|
|
13.77
|
|
||||||
Market price per share of common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Closing
|
$
|
29.52
|
|
|
$
|
22.10
|
|
|
$
|
16.83
|
|
|
$
|
17.89
|
|
|
$
|
15.57
|
|
|
High closing
|
29.88
|
|
|
23.16
|
|
|
18.45
|
|
|
18.13
|
|
|
15.88
|
|
||||||
Low closing
|
22.05
|
|
|
11.16
|
|
|
15.15
|
|
|
14.51
|
|
|
11.03
|
|
||||||
Market capitalization
|
$
|
303,681
|
|
|
$
|
222,163
|
|
|
$
|
174,700
|
|
|
$
|
188,141
|
|
|
$
|
164,914
|
|
|
Average balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans and leases
|
$
|
918,731
|
|
|
$
|
900,433
|
|
|
$
|
876,787
|
|
|
$
|
898,703
|
|
|
$
|
918,641
|
|
|
Total assets
|
2,268,633
|
|
|
2,190,218
|
|
|
2,160,536
|
|
|
2,145,393
|
|
|
2,163,296
|
|
||||||
Total deposits
|
1,269,796
|
|
|
1,222,561
|
|
|
1,155,860
|
|
|
1,124,207
|
|
|
1,089,735
|
|
||||||
Long-term debt
|
225,133
|
|
|
228,617
|
|
|
240,059
|
|
|
253,607
|
|
|
263,417
|
|
||||||
Common shareholders’ equity
|
247,101
|
|
|
241,187
|
|
|
229,576
|
|
|
222,907
|
|
|
218,340
|
|
||||||
Total shareholders’ equity
|
271,289
|
|
|
265,843
|
|
|
251,384
|
|
|
238,317
|
|
|
233,819
|
|
||||||
Asset quality
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Allowance for credit losses
(3)
|
$
|
11,170
|
|
|
$
|
11,999
|
|
|
$
|
12,880
|
|
|
$
|
14,947
|
|
|
$
|
17,912
|
|
|
Nonperforming loans, leases and foreclosed properties
(4)
|
6,758
|
|
|
8,084
|
|
|
9,836
|
|
|
12,629
|
|
|
17,772
|
|
||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding
(4, 5)
|
1.12
|
%
|
|
1.26
|
%
|
|
1.37
|
%
|
|
1.66
|
%
|
|
1.90
|
%
|
||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases
(4, 5)
|
161
|
|
|
149
|
|
|
130
|
|
|
121
|
|
|
102
|
|
||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the PCI loan portfolio
(4, 5)
|
156
|
|
|
144
|
|
|
122
|
|
|
107
|
|
|
87
|
|
||||||
Net charge-offs
(6, 7)
|
$
|
3,979
|
|
|
$
|
3,821
|
|
|
$
|
4,338
|
|
|
$
|
4,383
|
|
|
$
|
7,897
|
|
|
Net charge-offs as a percentage of average loans and leases outstanding
(4, 6)
|
0.44
|
%
|
|
0.43
|
%
|
|
0.50
|
%
|
|
0.49
|
%
|
|
0.87
|
%
|
||||||
Net charge-offs as a percentage of average loans and leases outstanding, excluding the PCI loan portfolio
(4)
|
0.44
|
|
|
0.44
|
|
|
0.51
|
|
|
0.50
|
|
|
0.90
|
|
||||||
Capital ratios at year end
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity tier 1 capital
|
11.8
|
%
|
|
11.0
|
%
|
|
10.2
|
%
|
|
12.3
|
%
|
|
n/a
|
|
||||||
Tier 1 common capital
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
10.9
|
%
|
||||||
Tier 1 capital
|
13.2
|
|
|
12.4
|
|
|
11.3
|
|
|
13.4
|
|
|
12.2
|
|
||||||
Total capital
|
15.1
|
|
|
14.3
|
|
|
13.2
|
|
|
16.5
|
|
|
15.1
|
|
||||||
Tier 1 leverage
|
8.6
|
|
|
8.9
|
|
|
8.6
|
|
|
8.2
|
|
|
7.7
|
|
||||||
Tangible equity
(1)
|
8.9
|
|
|
9.2
|
|
|
8.9
|
|
|
8.4
|
|
|
7.8
|
|
||||||
Tangible common equity
(1)
|
7.9
|
|
|
8.0
|
|
|
7.8
|
|
|
7.5
|
|
|
7.2
|
|
(1)
|
Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios, see
Supplemental Financial Data
on page
27
, and for corresponding reconciliations to GAAP financial measures, see
Non-GAAP Reconciliations
on page
88
.
|
(2)
|
For more information on the impact of the purchased credit-impaired (PCI) loan portfolio on asset quality, see
Consumer Portfolio Credit Risk Management
on page
54
.
|
(3)
|
Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.
|
(4)
|
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
62
and corresponding
Table 31
, and
Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
on page
67
and corresponding
Table 38
.
|
(5)
|
Asset quality metrics for 2016 include $243 million of non-U.S. credit card allowance for loan and lease losses and $9.2 billion of non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
(6)
|
Net charge-offs exclude
$207 million
,
$340 million
,
$808 million
,
$810 million
and
$2.3 billion
of write-offs in the PCI loan portfolio for
2017
,
2016
,
2015
,
2014
and
2013
, respectively. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
60
.
|
(7)
|
Includes net charge-offs of $75 million and $175 million on non-U.S. credit card loans in 2017 and 2016, which were included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016.
|
(8)
|
Risk-based capital ratios are reported under Basel 3 Advanced - Transition at December 31, 2017, 2016 and 2015. We reported risk-based capital ratios under Basel 3 Standardized - Transition at December 31, 2014 and under the general risk-based approach at December 31, 2013. For more information, see
Capital Management
on page
45
.
|
25
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Table 8
|
Selected Quarterly Financial Data
|
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2017 Quarters
|
|
2016 Quarters
|
||||||||||||||||||||||||||||
(In millions, except per share information)
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|||||||||||||||||
Income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest income
|
$
|
11,462
|
|
|
$
|
11,161
|
|
|
$
|
10,986
|
|
|
$
|
11,058
|
|
|
$
|
10,292
|
|
|
$
|
10,201
|
|
|
$
|
10,118
|
|
|
$
|
10,485
|
|
|
Noninterest income
(1)
|
8,974
|
|
|
10,678
|
|
|
11,843
|
|
|
11,190
|
|
|
9,698
|
|
|
11,434
|
|
|
11,168
|
|
|
10,305
|
|
|||||||||
Total revenue, net of interest expense
|
20,436
|
|
|
21,839
|
|
|
22,829
|
|
|
22,248
|
|
|
19,990
|
|
|
21,635
|
|
|
21,286
|
|
|
20,790
|
|
|||||||||
Provision for credit losses
|
1,001
|
|
|
834
|
|
|
726
|
|
|
835
|
|
|
774
|
|
|
850
|
|
|
976
|
|
|
997
|
|
|||||||||
Noninterest expense
|
13,274
|
|
|
13,394
|
|
|
13,982
|
|
|
14,093
|
|
|
13,413
|
|
|
13,734
|
|
|
13,746
|
|
|
14,190
|
|
|||||||||
Income before income taxes
|
6,161
|
|
|
7,611
|
|
|
8,121
|
|
|
7,320
|
|
|
5,803
|
|
|
7,051
|
|
|
6,564
|
|
|
5,603
|
|
|||||||||
Income tax expense
(1)
|
3,796
|
|
|
2,187
|
|
|
3,015
|
|
|
1,983
|
|
|
1,268
|
|
|
2,257
|
|
|
1,943
|
|
|
1,731
|
|
|||||||||
Net income
(1)
|
2,365
|
|
|
5,424
|
|
|
5,106
|
|
|
5,337
|
|
|
4,535
|
|
|
4,794
|
|
|
4,621
|
|
|
3,872
|
|
|||||||||
Net income applicable to common shareholders
|
2,079
|
|
|
4,959
|
|
|
4,745
|
|
|
4,835
|
|
|
4,174
|
|
|
4,291
|
|
|
4,260
|
|
|
3,415
|
|
|||||||||
Average common shares issued and outstanding
|
10,471
|
|
|
10,198
|
|
|
10,014
|
|
|
10,100
|
|
|
10,170
|
|
|
10,250
|
|
|
10,328
|
|
|
10,370
|
|
|||||||||
Average diluted common shares issued and outstanding
|
10,622
|
|
|
10,747
|
|
|
10,835
|
|
|
10,920
|
|
|
10,992
|
|
|
11,034
|
|
|
11,086
|
|
|
11,108
|
|
|||||||||
Performance ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
0.41
|
%
|
|
0.95
|
%
|
|
0.90
|
%
|
|
0.97
|
%
|
|
0.82
|
%
|
|
0.87
|
%
|
|
0.85
|
%
|
|
0.72
|
%
|
|||||||||
Four quarter trailing return on average assets
(2)
|
0.80
|
|
|
0.91
|
|
|
0.89
|
|
|
0.88
|
|
|
0.81
|
|
|
0.76
|
|
|
0.75
|
|
|
0.76
|
|
|||||||||
Return on average common shareholders’ equity
|
3.29
|
|
|
7.89
|
|
|
7.75
|
|
|
8.09
|
|
|
6.79
|
|
|
7.02
|
|
|
7.14
|
|
|
5.80
|
|
|||||||||
Return on average tangible common shareholders’ equity
(3)
|
4.56
|
|
|
10.98
|
|
|
10.87
|
|
|
11.44
|
|
|
9.58
|
|
|
9.94
|
|
|
10.17
|
|
|
8.32
|
|
|||||||||
Return on average shareholders’ equity
|
3.43
|
|
|
7.88
|
|
|
7.56
|
|
|
8.09
|
|
|
6.69
|
|
|
7.10
|
|
|
7.01
|
|
|
5.99
|
|
|||||||||
Return on average tangible shareholders’ equity
(3)
|
4.62
|
|
|
10.59
|
|
|
10.23
|
|
|
11.01
|
|
|
9.09
|
|
|
9.68
|
|
|
9.61
|
|
|
8.27
|
|
|||||||||
Total ending equity to total ending assets
|
11.71
|
|
|
11.91
|
|
|
12.00
|
|
|
11.92
|
|
|
12.17
|
|
|
12.28
|
|
|
12.21
|
|
|
12.02
|
|
|||||||||
Total average equity to total average assets
|
11.87
|
|
|
12.03
|
|
|
11.94
|
|
|
12.00
|
|
|
12.21
|
|
|
12.26
|
|
|
12.11
|
|
|
11.96
|
|
|||||||||
Dividend payout
|
60.35
|
|
|
25.59
|
|
|
15.78
|
|
|
15.64
|
|
|
18.37
|
|
|
17.97
|
|
|
12.17
|
|
|
15.12
|
|
|||||||||
Per common share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings
|
$
|
0.20
|
|
|
$
|
0.49
|
|
|
$
|
0.47
|
|
|
$
|
0.48
|
|
|
$
|
0.41
|
|
|
$
|
0.42
|
|
|
$
|
0.41
|
|
|
$
|
0.33
|
|
|
Diluted earnings
|
0.20
|
|
|
0.46
|
|
|
0.44
|
|
|
0.45
|
|
|
0.39
|
|
|
0.40
|
|
|
0.39
|
|
|
0.31
|
|
|||||||||
Dividends paid
|
0.12
|
|
|
0.12
|
|
|
0.075
|
|
|
0.075
|
|
|
0.075
|
|
|
0.075
|
|
|
0.05
|
|
|
0.05
|
|
|||||||||
Book value
|
23.80
|
|
|
23.87
|
|
|
24.85
|
|
|
24.34
|
|
|
23.97
|
|
|
24.14
|
|
|
23.68
|
|
|
23.13
|
|
|||||||||
Tangible book value
(3)
|
16.96
|
|
|
17.18
|
|
|
17.75
|
|
|
17.22
|
|
|
16.89
|
|
|
17.09
|
|
|
16.68
|
|
|
16.18
|
|
|||||||||
Market price per share of common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Closing
|
$
|
29.52
|
|
|
$
|
25.34
|
|
|
$
|
24.26
|
|
|
$
|
23.59
|
|
|
$
|
22.10
|
|
|
$
|
15.65
|
|
|
$
|
13.27
|
|
|
$
|
13.52
|
|
|
High closing
|
29.88
|
|
|
25.45
|
|
|
24.32
|
|
|
25.50
|
|
|
23.16
|
|
|
16.19
|
|
|
15.11
|
|
|
16.43
|
|
|||||||||
Low closing
|
25.45
|
|
|
22.89
|
|
|
22.23
|
|
|
22.05
|
|
|
15.63
|
|
|
12.74
|
|
|
12.18
|
|
|
11.16
|
|
|||||||||
Market capitalization
|
$
|
303,681
|
|
|
$
|
264,992
|
|
|
$
|
239,643
|
|
|
$
|
235,291
|
|
|
$
|
222,163
|
|
|
$
|
158,438
|
|
|
$
|
135,577
|
|
|
$
|
139,427
|
|
|
Average balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans and leases
|
$
|
927,790
|
|
|
$
|
918,129
|
|
|
$
|
914,717
|
|
|
$
|
914,144
|
|
|
$
|
908,396
|
|
|
$
|
900,594
|
|
|
$
|
899,670
|
|
|
$
|
892,984
|
|
|
Total assets
|
2,301,687
|
|
|
2,271,104
|
|
|
2,269,293
|
|
|
2,231,649
|
|
|
2,208,391
|
|
|
2,189,750
|
|
|
2,188,410
|
|
|
2,174,126
|
|
|||||||||
Total deposits
|
1,293,572
|
|
|
1,271,711
|
|
|
1,256,838
|
|
|
1,256,632
|
|
|
1,250,948
|
|
|
1,227,186
|
|
|
1,213,291
|
|
|
1,198,455
|
|
|||||||||
Long-term debt
|
227,644
|
|
|
227,309
|
|
|
224,019
|
|
|
221,468
|
|
|
220,587
|
|
|
227,269
|
|
|
233,061
|
|
|
233,654
|
|
|||||||||
Common shareholders’ equity
|
250,838
|
|
|
249,214
|
|
|
245,756
|
|
|
242,480
|
|
|
244,519
|
|
|
243,220
|
|
|
240,078
|
|
|
236,871
|
|
|||||||||
Total shareholders’ equity
|
273,162
|
|
|
273,238
|
|
|
270,977
|
|
|
267,700
|
|
|
269,739
|
|
|
268,440
|
|
|
265,056
|
|
|
260,065
|
|
|||||||||
Asset quality
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Allowance for credit losses
(5)
|
$
|
11,170
|
|
|
$
|
11,455
|
|
|
$
|
11,632
|
|
|
$
|
11,869
|
|
|
$
|
11,999
|
|
|
$
|
12,459
|
|
|
$
|
12,587
|
|
|
$
|
12,696
|
|
|
Nonperforming loans, leases and foreclosed properties
(6)
|
6,758
|
|
|
6,869
|
|
|
7,127
|
|
|
7,637
|
|
|
8,084
|
|
|
8,737
|
|
|
8,799
|
|
|
9,281
|
|
|||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding
(6, 7)
|
1.12
|
%
|
|
1.16
|
%
|
|
1.20
|
%
|
|
1.25
|
%
|
|
1.26
|
%
|
|
1.30
|
%
|
|
1.32
|
%
|
|
1.35
|
%
|
|||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases
(6, 7)
|
161
|
|
|
163
|
|
|
160
|
|
|
156
|
|
|
149
|
|
|
140
|
|
|
142
|
|
|
136
|
|
|||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the PCI loan portfolio
(6, 7)
|
156
|
|
|
158
|
|
|
154
|
|
|
150
|
|
|
144
|
|
|
135
|
|
|
135
|
|
|
129
|
|
|||||||||
Net charge-offs
(8, 9)
|
$
|
1,237
|
|
|
$
|
900
|
|
|
$
|
908
|
|
|
$
|
934
|
|
|
$
|
880
|
|
|
$
|
888
|
|
|
$
|
985
|
|
|
$
|
1,068
|
|
|
Annualized net charge-offs as a percentage of average loans and leases outstanding
(6, 8)
|
0.53
|
%
|
|
0.39
|
%
|
|
0.40
|
%
|
|
0.42
|
%
|
|
0.39
|
%
|
|
0.40
|
%
|
|
0.44
|
%
|
|
0.48
|
%
|
|||||||||
Annualized net charge-offs as a percentage of average loans and leases outstanding, excluding the PCI loan portfolio
(6)
|
0.54
|
|
|
0.40
|
|
|
0.41
|
|
|
0.42
|
|
|
0.39
|
|
|
0.40
|
|
|
0.45
|
|
|
0.49
|
|
|||||||||
Capital ratios at period end
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common equity tier 1 capital
|
11.8
|
%
|
|
11.9
|
%
|
|
11.6
|
%
|
|
11.0
|
%
|
|
11.0
|
%
|
|
11.0
|
%
|
|
10.6
|
%
|
|
10.3
|
%
|
|||||||||
Tier 1 capital
|
13.2
|
|
|
13.3
|
|
|
13.2
|
|
|
12.5
|
|
|
12.4
|
|
|
12.4
|
|
|
12.0
|
|
|
11.5
|
|
|||||||||
Total capital
|
15.1
|
|
|
15.1
|
|
|
15.1
|
|
|
14.4
|
|
|
14.3
|
|
|
14.2
|
|
|
13.9
|
|
|
13.4
|
|
|||||||||
Tier 1 leverage
|
8.6
|
|
|
9.0
|
|
|
8.9
|
|
|
8.8
|
|
|
8.9
|
|
|
9.1
|
|
|
8.9
|
|
|
8.7
|
|
|||||||||
Tangible equity
(3)
|
8.9
|
|
|
9.1
|
|
|
9.2
|
|
|
9.0
|
|
|
9.2
|
|
|
9.3
|
|
|
9.2
|
|
|
9.0
|
|
|||||||||
Tangible common equity
(3)
|
7.9
|
|
|
8.1
|
|
|
8.0
|
|
|
7.9
|
|
|
8.0
|
|
|
8.1
|
|
|
8.1
|
|
|
7.9
|
|
(1)
|
Net income for the fourth quarter of 2017 included an estimated charge of $2.9 billion from enactment of the Tax Act which consisted of $946 million in noninterest income and $1.9 billion in income tax expense. For more information on Tax Act impacts, see Income Tax Expense on page 22.
|
(2)
|
Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.
|
(3)
|
Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios, see
Supplemental Financial Data
on page
27
, and for corresponding reconciliations to GAAP financial measures, see
Non-GAAP Reconciliations
on page
88
.
|
(4)
|
For more information on the impact of the PCI loan portfolio on asset quality, see
Consumer Portfolio Credit Risk Management
on page
54
.
|
(5)
|
Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.
|
(6)
|
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
62
and corresponding
Table 31
, and
Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
on page
67
and corresponding
Table 38
.
|
(7)
|
Asset quality metrics for the first quarter of 2017 and the fourth quarter of 2016 include $242 million and $243 million of non-U.S. credit card allowance for loan and lease losses and $9.5 billion and $9.2 billion of non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet at March 31, 2017 and December 31, 2016. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
(8)
|
Net charge-offs exclude
$46 million
,
$73 million
,
$55 million
and
$33 million
of write-offs in the PCI loan portfolio in the fourth, third, second and first quarters of
2017
, respectively, and
$70 million
,
$83 million
,
$82 million
and
$105 million
in the fourth, third, second and first quarters of
2016
, respectively. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
60
.
|
(9)
|
Includes net charge-offs of $31 million, $44 million and $41 million on non-U.S. credit card loans in the second and first quarters of 2017, and in the fourth quarter of 2016, which were included in assets of business held for sale on the Consolidated Balance Sheet at March 31, 2017 and December 31, 2016.
|
(10)
|
Risk-based capital ratios are reported under Basel 3 Advanced - Transition. For more information, see
Capital Management
on page
45
.
|
|
|
Bank of America 2017
26
|
●
|
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 certain acquired 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 certain acquired 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.
|
27
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Table 9
|
Average Balances and Interest Rates - FTE Basis
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Rate |
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Rate |
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Rate |
|||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
|
$
|
127,431
|
|
|
$
|
1,122
|
|
|
0.88
|
%
|
|
$
|
133,374
|
|
|
$
|
605
|
|
|
0.45
|
%
|
|
$
|
136,391
|
|
|
$
|
369
|
|
|
0.27
|
%
|
|
Time deposits placed and other short-term investments
|
12,112
|
|
|
241
|
|
|
1.99
|
|
|
9,026
|
|
|
140
|
|
|
1.55
|
|
|
9,556
|
|
|
146
|
|
|
1.53
|
|
|||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
222,818
|
|
|
2,390
|
|
|
1.07
|
|
|
216,161
|
|
|
1,118
|
|
|
0.52
|
|
|
211,471
|
|
|
988
|
|
|
0.47
|
|
|||||||
Trading account assets
|
129,007
|
|
|
4,618
|
|
|
3.58
|
|
|
129,766
|
|
|
4,563
|
|
|
3.52
|
|
|
137,837
|
|
|
4,547
|
|
|
3.30
|
|
|||||||
Debt securities
|
435,005
|
|
|
10,626
|
|
|
2.44
|
|
|
418,289
|
|
|
9,263
|
|
|
2.23
|
|
|
390,849
|
|
|
9,233
|
|
|
2.38
|
|
|||||||
Loans and leases
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage
|
197,766
|
|
|
6,831
|
|
|
3.45
|
|
|
188,250
|
|
|
6,488
|
|
|
3.45
|
|
|
201,366
|
|
|
6,967
|
|
|
3.46
|
|
|||||||
Home equity
|
62,260
|
|
|
2,608
|
|
|
4.19
|
|
|
71,760
|
|
|
2,713
|
|
|
3.78
|
|
|
81,070
|
|
|
2,984
|
|
|
3.68
|
|
|||||||
U.S. credit card
|
91,068
|
|
|
8,791
|
|
|
9.65
|
|
|
87,905
|
|
|
8,170
|
|
|
9.29
|
|
|
88,244
|
|
|
8,085
|
|
|
9.16
|
|
|||||||
Non-U.S. credit card
(2)
|
3,929
|
|
|
358
|
|
|
9.12
|
|
|
9,527
|
|
|
926
|
|
|
9.72
|
|
|
10,104
|
|
|
1,051
|
|
|
10.40
|
|
|||||||
Direct/Indirect consumer
(3)
|
93,374
|
|
|
2,622
|
|
|
2.81
|
|
|
91,853
|
|
|
2,296
|
|
|
2.50
|
|
|
84,585
|
|
|
2,040
|
|
|
2.41
|
|
|||||||
Other consumer
(4)
|
2,628
|
|
|
112
|
|
|
4.23
|
|
|
2,295
|
|
|
75
|
|
|
3.26
|
|
|
1,938
|
|
|
56
|
|
|
2.86
|
|
|||||||
Total consumer
|
451,025
|
|
|
21,322
|
|
|
4.73
|
|
|
451,590
|
|
|
20,668
|
|
|
4.58
|
|
|
467,307
|
|
|
21,183
|
|
|
4.53
|
|
|||||||
U.S. commercial
|
292,452
|
|
|
9,765
|
|
|
3.34
|
|
|
276,887
|
|
|
8,101
|
|
|
2.93
|
|
|
248,354
|
|
|
6,883
|
|
|
2.77
|
|
|||||||
Commercial real estate
(5)
|
58,502
|
|
|
2,116
|
|
|
3.62
|
|
|
57,547
|
|
|
1,773
|
|
|
3.08
|
|
|
52,136
|
|
|
1,521
|
|
|
2.92
|
|
|||||||
Commercial lease financing
|
21,747
|
|
|
706
|
|
|
3.25
|
|
|
21,146
|
|
|
627
|
|
|
2.97
|
|
|
19,802
|
|
|
628
|
|
|
3.17
|
|
|||||||
Non-U.S. commercial
|
95,005
|
|
|
2,566
|
|
|
2.70
|
|
|
93,263
|
|
|
2,337
|
|
|
2.51
|
|
|
89,188
|
|
|
2,008
|
|
|
2.25
|
|
|||||||
Total commercial
|
467,706
|
|
|
15,153
|
|
|
3.24
|
|
|
448,843
|
|
|
12,838
|
|
|
2.86
|
|
|
409,480
|
|
|
11,040
|
|
|
2.70
|
|
|||||||
Total loans and leases
(2)
|
918,731
|
|
|
36,475
|
|
|
3.97
|
|
|
900,433
|
|
|
33,506
|
|
|
3.72
|
|
|
876,787
|
|
|
32,223
|
|
|
3.68
|
|
|||||||
Other earning assets
|
76,957
|
|
|
3,032
|
|
|
3.94
|
|
|
59,775
|
|
|
2,762
|
|
|
4.62
|
|
|
62,040
|
|
|
2,890
|
|
|
4.66
|
|
|||||||
Total earning assets
(6)
|
1,922,061
|
|
|
58,504
|
|
|
3.04
|
|
|
1,866,824
|
|
|
51,957
|
|
|
2.78
|
|
|
1,824,931
|
|
|
50,396
|
|
|
2.76
|
|
|||||||
Cash and due from banks
|
27,995
|
|
|
|
|
|
|
|
27,893
|
|
|
|
|
|
|
|
28,921
|
|
|
|
|
|
|
||||||||||
Other assets, less allowance for loan and lease losses
|
318,577
|
|
|
|
|
|
|
|
|
295,501
|
|
|
|
|
|
|
|
|
306,684
|
|
|
|
|
|
|
|
|||||||
Total assets
|
$
|
2,268,633
|
|
|
|
|
|
|
|
|
$
|
2,190,218
|
|
|
|
|
|
|
|
|
$
|
2,160,536
|
|
|
|
|
|
|
|
||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Savings
|
$
|
53,783
|
|
|
$
|
5
|
|
|
0.01
|
%
|
|
$
|
49,495
|
|
|
$
|
5
|
|
|
0.01
|
%
|
|
$
|
46,498
|
|
|
$
|
7
|
|
|
0.01
|
%
|
|
NOW and money market deposit accounts
|
628,647
|
|
|
873
|
|
|
0.14
|
|
|
589,737
|
|
|
294
|
|
|
0.05
|
|
|
543,133
|
|
|
273
|
|
|
0.05
|
|
|||||||
Consumer CDs and IRAs
|
44,794
|
|
|
121
|
|
|
0.27
|
|
|
48,594
|
|
|
133
|
|
|
0.27
|
|
|
54,679
|
|
|
162
|
|
|
0.30
|
|
|||||||
Negotiable CDs, public funds and other deposits
|
36,782
|
|
|
354
|
|
|
0.96
|
|
|
32,889
|
|
|
160
|
|
|
0.49
|
|
|
29,976
|
|
|
95
|
|
|
0.32
|
|
|||||||
Total U.S. interest-bearing deposits
|
764,006
|
|
|
1,353
|
|
|
0.18
|
|
|
720,715
|
|
|
592
|
|
|
0.08
|
|
|
674,286
|
|
|
537
|
|
|
0.08
|
|
|||||||
Non-U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Banks located in non-U.S. countries
|
2,442
|
|
|
21
|
|
|
0.85
|
|
|
3,891
|
|
|
32
|
|
|
0.82
|
|
|
4,473
|
|
|
31
|
|
|
0.70
|
|
|||||||
Governments and official institutions
|
1,006
|
|
|
10
|
|
|
0.95
|
|
|
1,437
|
|
|
9
|
|
|
0.64
|
|
|
1,492
|
|
|
5
|
|
|
0.33
|
|
|||||||
Time, savings and other
|
62,386
|
|
|
547
|
|
|
0.88
|
|
|
59,183
|
|
|
382
|
|
|
0.65
|
|
|
54,767
|
|
|
288
|
|
|
0.53
|
|
|||||||
Total non-U.S. interest-bearing deposits
|
65,834
|
|
|
578
|
|
|
0.88
|
|
|
64,511
|
|
|
423
|
|
|
0.66
|
|
|
60,732
|
|
|
324
|
|
|
0.53
|
|
|||||||
Total interest-bearing deposits
|
829,840
|
|
|
1,931
|
|
|
0.23
|
|
|
785,226
|
|
|
1,015
|
|
|
0.13
|
|
|
735,018
|
|
|
861
|
|
|
0.12
|
|
|||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities
|
273,097
|
|
|
3,538
|
|
|
1.30
|
|
|
251,236
|
|
|
2,350
|
|
|
0.94
|
|
|
275,785
|
|
|
2,387
|
|
|
0.87
|
|
|||||||
Trading account liabilities
|
45,518
|
|
|
1,204
|
|
|
2.64
|
|
|
37,897
|
|
|
1,018
|
|
|
2.69
|
|
|
46,206
|
|
|
1,343
|
|
|
2.91
|
|
|||||||
Long-term debt
|
225,133
|
|
|
6,239
|
|
|
2.77
|
|
|
228,617
|
|
|
5,578
|
|
|
2.44
|
|
|
240,059
|
|
|
5,958
|
|
|
2.48
|
|
|||||||
Total interest-bearing liabilities
(6)
|
1,373,588
|
|
|
12,912
|
|
|
0.94
|
|
|
1,302,976
|
|
|
9,961
|
|
|
0.76
|
|
|
1,297,068
|
|
|
10,549
|
|
|
0.81
|
|
|||||||
Noninterest-bearing sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing deposits
|
439,956
|
|
|
|
|
|
|
|
|
437,335
|
|
|
|
|
|
|
|
|
420,842
|
|
|
|
|
|
|
|
|||||||
Other liabilities
|
183,800
|
|
|
|
|
|
|
|
|
184,064
|
|
|
|
|
|
|
|
|
191,242
|
|
|
|
|
|
|
|
|||||||
Shareholders’ equity
|
271,289
|
|
|
|
|
|
|
|
|
265,843
|
|
|
|
|
|
|
|
|
251,384
|
|
|
|
|
|
|
|
|||||||
Total liabilities and shareholders’ equity
|
$
|
2,268,633
|
|
|
|
|
|
|
|
|
$
|
2,190,218
|
|
|
|
|
|
|
|
|
$
|
2,160,536
|
|
|
|
|
|
|
|
||||
Net interest spread
|
|
|
|
|
|
|
2.10
|
%
|
|
|
|
|
|
|
|
2.02
|
%
|
|
|
|
|
|
|
|
1.95
|
%
|
|||||||
Impact of noninterest-bearing sources
|
|
|
|
|
|
|
0.27
|
|
|
|
|
|
|
|
|
0.23
|
|
|
|
|
|
|
|
|
0.24
|
|
|||||||
Net interest income/yield on earning assets
|
|
|
|
$
|
45,592
|
|
|
2.37
|
%
|
|
|
|
|
$
|
41,996
|
|
|
2.25
|
%
|
|
|
|
|
$
|
39,847
|
|
|
2.19
|
%
|
(1)
|
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 are recorded at fair value upon acquisition and accrete interest income over the estimated life of the loan.
|
(2)
|
Includes assets of the Corporation’s non-U.S. consumer credit card business, which was sold during the second quarter of 2017.
|
(3)
|
Includes non-U.S. consumer loans of
$2.9 billion
,
$3.4 billion
and
$4.0 billion
in
2017
,
2016
and
2015
, respectively.
|
(4)
|
Includes consumer finance loans of
$321 million
,
$514 million
and
$619 million
; consumer leases of
$2.1 billion
,
$1.6 billion
and
$1.2 billion
, and consumer overdrafts of
$179 million
,
$173 million
and
$156 million
in
2017
,
2016
and
2015
, respectively.
|
(5)
|
Includes U.S. commercial real estate loans of
$55.0 billion
,
$54.2 billion
and
$49.0 billion
, and non-U.S. commercial real estate loans of
$3.5 billion
,
$3.4 billion
and
$3.1 billion
in
2017
,
2016
and
2015
, respectively.
|
(6)
|
Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by
$44 million
,
$176 million
and
$59 million
in
2017
,
2016
and
2015
, respectively. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities by
$1.4 billion
,
$2.1 billion
and
$2.4 billion
in
2017
,
2016
and
2015
, respectively. For more information, see
Interest Rate Risk Management for the Banking Book
on page
81
.
|
|
|
Bank of America 2017
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 10
|
Analysis of Changes in Net Interest Income - FTE Basis
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Due to Change in
(1)
|
|
Net Change
|
|
Due to Change in
(1)
|
|
Net Change
|
||||||||||||||||
|
Volume
|
|
Rate
|
|
|
Volume
|
|
Rate
|
|
|||||||||||||||
(Dollars in millions)
|
From 2016 to 2017
|
|
From 2015 to 2016
|
|||||||||||||||||||||
Increase (decrease) in interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
|
$
|
(32
|
)
|
|
$
|
549
|
|
|
$
|
517
|
|
|
$
|
(9
|
)
|
|
$
|
245
|
|
|
$
|
236
|
|
|
Time deposits placed and other short-term investments
|
48
|
|
|
53
|
|
|
101
|
|
|
(8
|
)
|
|
2
|
|
|
(6
|
)
|
|||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
41
|
|
|
1,231
|
|
|
1,272
|
|
|
28
|
|
|
102
|
|
|
130
|
|
|||||||
Trading account assets
|
(22
|
)
|
|
77
|
|
|
55
|
|
|
(265
|
)
|
|
281
|
|
|
16
|
|
|||||||
Debt securities
|
438
|
|
|
925
|
|
|
1,363
|
|
|
722
|
|
|
(692
|
)
|
|
30
|
|
|||||||
Loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
335
|
|
|
8
|
|
|
343
|
|
|
(454
|
)
|
|
(25
|
)
|
|
(479
|
)
|
|||||||
Home equity
|
(360
|
)
|
|
255
|
|
|
(105
|
)
|
|
(343
|
)
|
|
72
|
|
|
(271
|
)
|
|||||||
U.S. credit card
|
290
|
|
|
331
|
|
|
621
|
|
|
(33
|
)
|
|
118
|
|
|
85
|
|
|||||||
Non-U.S. credit card
|
(544
|
)
|
|
(24
|
)
|
|
(568
|
)
|
|
(60
|
)
|
|
(65
|
)
|
|
(125
|
)
|
|||||||
Direct/Indirect consumer
|
38
|
|
|
288
|
|
|
326
|
|
|
174
|
|
|
82
|
|
|
256
|
|
|||||||
Other consumer
|
11
|
|
|
26
|
|
|
37
|
|
|
10
|
|
|
9
|
|
|
19
|
|
|||||||
Total consumer
|
|
|
|
|
|
|
654
|
|
|
|
|
|
|
|
|
(515
|
)
|
|||||||
U.S. commercial
|
468
|
|
|
1,196
|
|
|
1,664
|
|
|
787
|
|
|
431
|
|
|
1,218
|
|
|||||||
Commercial real estate
|
29
|
|
|
314
|
|
|
343
|
|
|
159
|
|
|
93
|
|
|
252
|
|
|||||||
Commercial lease financing
|
19
|
|
|
60
|
|
|
79
|
|
|
42
|
|
|
(43
|
)
|
|
(1
|
)
|
|||||||
Non-U.S. commercial
|
48
|
|
|
181
|
|
|
229
|
|
|
90
|
|
|
239
|
|
|
329
|
|
|||||||
Total commercial
|
|
|
|
|
|
|
2,315
|
|
|
|
|
|
|
|
|
1,798
|
|
|||||||
Total loans and leases
|
|
|
|
|
|
|
2,969
|
|
|
|
|
|
|
|
|
1,283
|
|
|||||||
Other earning assets
|
793
|
|
|
(523
|
)
|
|
270
|
|
|
(104
|
)
|
|
(24
|
)
|
|
(128
|
)
|
|||||||
Total interest income
|
|
|
|
|
|
|
$
|
6,547
|
|
|
|
|
|
|
|
|
$
|
1,561
|
|
|||||
Increase (decrease) in interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Savings
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
NOW and money market deposit accounts
|
20
|
|
|
559
|
|
|
579
|
|
|
22
|
|
|
(1
|
)
|
|
21
|
|
|||||||
Consumer CDs and IRAs
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|
(16
|
)
|
|
(13
|
)
|
|
(29
|
)
|
|||||||
Negotiable CDs, public funds and other deposits
|
20
|
|
|
174
|
|
|
194
|
|
|
10
|
|
|
55
|
|
|
65
|
|
|||||||
Total U.S. interest-bearing deposits
|
|
|
|
|
|
|
761
|
|
|
|
|
|
|
|
|
55
|
|
|||||||
Non-U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Banks located in non-U.S. countries
|
(12
|
)
|
|
1
|
|
|
(11
|
)
|
|
(4
|
)
|
|
5
|
|
|
1
|
|
|||||||
Governments and official institutions
|
(3
|
)
|
|
4
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|||||||
Time, savings and other
|
24
|
|
|
141
|
|
|
165
|
|
|
26
|
|
|
68
|
|
|
94
|
|
|||||||
Total non-U.S. interest-bearing deposits
|
|
|
|
|
|
|
155
|
|
|
|
|
|
|
|
|
99
|
|
|||||||
Total interest-bearing deposits
|
|
|
|
|
|
|
916
|
|
|
|
|
|
|
|
|
154
|
|
|||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities
|
217
|
|
|
971
|
|
|
1,188
|
|
|
(201
|
)
|
|
164
|
|
|
(37
|
)
|
|||||||
Trading account liabilities
|
206
|
|
|
(20
|
)
|
|
186
|
|
|
(240
|
)
|
|
(85
|
)
|
|
(325
|
)
|
|||||||
Long-term debt
|
(85
|
)
|
|
746
|
|
|
661
|
|
|
(288
|
)
|
|
(92
|
)
|
|
(380
|
)
|
|||||||
Total interest expense
|
|
|
|
|
|
|
2,951
|
|
|
|
|
|
|
|
|
(588
|
)
|
|||||||
Net increase in net interest income
|
|
|
|
|
|
|
$
|
3,596
|
|
|
|
|
|
|
|
|
$
|
2,149
|
|
(1)
|
The changes for each category of interest income and expense are divided between the portion of change attributable to the variance in volume and the portion of change attributable to the variance in rate for that category. The unallocated change in rate or volume variance is allocated between the rate and volume variances.
|
29
Bank of America 2017
|
|
|
|
|
Bank of America 2017
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Deposits
|
|
Consumer Lending
|
|
Total Consumer Banking
|
|
|
|||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
|
% Change
|
|
|||||||||||||
Net interest income (FTE basis)
|
$
|
13,353
|
|
$
|
10,701
|
|
|
$
|
10,954
|
|
$
|
10,589
|
|
|
$
|
24,307
|
|
$
|
21,290
|
|
|
14
|
%
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Card income
|
8
|
|
9
|
|
|
5,062
|
|
4,926
|
|
|
5,070
|
|
4,935
|
|
|
3
|
|
|||||||
Service charges
|
4,265
|
|
4,141
|
|
|
1
|
|
1
|
|
|
4,266
|
|
4,142
|
|
|
3
|
|
|||||||
Mortgage banking income
(1)
|
—
|
|
—
|
|
|
481
|
|
960
|
|
|
481
|
|
960
|
|
|
(50
|
)
|
|||||||
All other income
|
391
|
|
403
|
|
|
6
|
|
1
|
|
|
397
|
|
404
|
|
|
(2
|
)
|
|||||||
Total noninterest income
|
4,664
|
|
4,553
|
|
|
5,550
|
|
5,888
|
|
|
10,214
|
|
10,441
|
|
|
(2
|
)
|
|||||||
Total revenue, net of interest expense (FTE basis)
|
18,017
|
|
15,254
|
|
|
16,504
|
|
16,477
|
|
|
34,521
|
|
31,731
|
|
|
9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for credit losses
|
201
|
|
174
|
|
|
3,324
|
|
2,541
|
|
|
3,525
|
|
2,715
|
|
|
30
|
|
|||||||
Noninterest expense
|
10,380
|
|
9,677
|
|
|
7,407
|
|
7,977
|
|
|
17,787
|
|
17,654
|
|
|
1
|
|
|||||||
Income before income taxes (FTE basis)
|
7,436
|
|
5,403
|
|
|
5,773
|
|
5,959
|
|
|
13,209
|
|
11,362
|
|
|
16
|
|
|||||||
Income tax expense (FTE basis)
|
2,816
|
|
1,993
|
|
|
2,186
|
|
2,197
|
|
|
5,002
|
|
4,190
|
|
|
19
|
|
|||||||
Net income
|
$
|
4,620
|
|
$
|
3,410
|
|
|
$
|
3,587
|
|
$
|
3,762
|
|
|
$
|
8,207
|
|
$
|
7,172
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest yield (FTE basis)
|
2.05
|
%
|
1.79
|
%
|
|
4.18
|
%
|
4.37
|
%
|
|
3.54
|
%
|
3.38
|
%
|
|
|
||||||||
Return on average allocated capital
|
39
|
|
28
|
|
|
14
|
|
17
|
|
|
22
|
|
21
|
|
|
|
||||||||
Efficiency ratio (FTE basis)
|
57.61
|
|
63.44
|
|
|
44.88
|
|
48.41
|
|
|
51.53
|
|
55.64
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total loans and leases
|
$
|
5,084
|
|
$
|
4,809
|
|
|
$
|
260,974
|
|
$
|
240,999
|
|
|
$
|
266,058
|
|
$
|
245,808
|
|
|
8
|
%
|
|
Total earning assets
(2)
|
651,963
|
|
598,043
|
|
|
261,802
|
|
242,445
|
|
|
686,612
|
|
629,984
|
|
|
9
|
|
|||||||
Total assets
(2)
|
679,306
|
|
624,592
|
|
|
273,253
|
|
254,287
|
|
|
725,406
|
|
668,375
|
|
|
9
|
|
|||||||
Total deposits
|
646,930
|
|
592,417
|
|
|
6,390
|
|
7,234
|
|
|
653,320
|
|
599,651
|
|
|
9
|
|
|||||||
Allocated capital
|
12,000
|
|
12,000
|
|
|
25,000
|
|
22,000
|
|
|
37,000
|
|
34,000
|
|
|
9
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Year end
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total loans and leases
|
$
|
5,143
|
|
$
|
4,938
|
|
|
$
|
275,330
|
|
$
|
254,053
|
|
|
$
|
280,473
|
|
$
|
258,991
|
|
|
8
|
%
|
|
Total earning assets
(2)
|
675,485
|
|
631,172
|
|
|
275,742
|
|
255,511
|
|
|
709,832
|
|
662,698
|
|
|
7
|
|
|||||||
Total assets
(2)
|
703,330
|
|
658,316
|
|
|
287,390
|
|
268,002
|
|
|
749,325
|
|
702,333
|
|
|
7
|
|
|||||||
Total deposits
|
670,802
|
|
625,727
|
|
|
5,728
|
|
7,059
|
|
|
676,530
|
|
632,786
|
|
|
7
|
|
(1)
|
Total consolidated mortgage banking income of
$224 million
for
2017
was recorded primarily in Consumer Lending and
All Other
compared to
$1.9 billion
for
2016
.
|
(2)
|
In segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets from
All Other
to match the segments’ and businesses’ liabilities and allocated shareholders’ equity. As a result, total earning assets and total assets of the businesses may not equal total
Consumer Banking
.
|
31
Bank of America 2017
|
|
|
|
|
|
|
||||
Key Statistics
–
Deposits
|
|
|
|
||||
|
|
|
|
||||
|
2017
|
|
2016
|
||||
Total deposit spreads (excludes noninterest costs)
(1)
|
1.84
|
%
|
|
1.65
|
%
|
||
|
|
|
|
||||
Year end
|
|
|
|
||||
Client brokerage assets (in millions)
|
$
|
177,045
|
|
|
$
|
144,696
|
|
Digital banking active users (units in thousands)
(2)
|
34,855
|
|
|
32,942
|
|
||
Mobile banking active users (units in thousands)
|
24,238
|
|
|
21,648
|
|
||
Financial centers
|
4,470
|
|
|
4,579
|
|
||
ATMs
|
16,039
|
|
|
15,928
|
|
(1)
|
Includes deposits held in Consumer Lending.
|
(2)
|
Digital users represents mobile and/or online users across consumer businesses; historical information has been reclassified primarily due to the sale of the Corporation’s non-U.S. consumer credit card business in 2017.
|
|
|
|
|
||||
Key Statistics
–
Consumer Lending
|
|||||||
|
|
|
|
||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Total U.S. credit card
(1)
|
|
|
|
||||
Gross interest yield
|
9.65
|
%
|
|
9.29
|
%
|
||
Risk-adjusted margin
|
8.67
|
|
|
9.04
|
|
||
New accounts (in thousands)
|
4,939
|
|
|
4,979
|
|
||
Purchase volumes
|
$
|
244,753
|
|
|
$
|
226,432
|
|
Debit card purchase volumes
|
$
|
298,641
|
|
|
$
|
285,612
|
|
(1)
|
In addition to the U.S. credit card portfolio in
Consumer Banking
, the remaining U.S. credit card portfolio is in
GWIM
.
|
|
|
Bank of America 2017
32
|
|
|
|
|
||||
Key Statistics - Mortgage Banking
|
|
|
|
||||
|
|
|
|
||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Loan production
(1)
:
|
|
|
|
|
|
||
Total
(2)
:
|
|
|
|
||||
First mortgage
|
$
|
50,581
|
|
|
$
|
64,153
|
|
Home equity
|
16,924
|
|
|
15,214
|
|
||
Consumer Banking:
|
|
|
|
||||
First mortgage
|
$
|
34,065
|
|
|
$
|
44,510
|
|
Home equity
|
15,199
|
|
|
13,675
|
|
(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.
|
|
|
|
|
|
|
|
|||||
(Dollars in millions)
|
2017
|
|
2016
|
|
% Change
|
|
|||||
Net interest income (FTE basis)
|
$
|
6,173
|
|
|
$
|
5,759
|
|
|
7
|
%
|
|
Noninterest income:
|
|
|
|
|
|
||||||
Investment and brokerage services
|
10,883
|
|
|
10,316
|
|
|
5
|
|
|||
All other income
|
1,534
|
|
|
1,575
|
|
|
(3
|
)
|
|||
Total noninterest income
|
12,417
|
|
|
11,891
|
|
|
4
|
|
|||
Total revenue, net of interest expense (FTE basis)
|
18,590
|
|
|
17,650
|
|
|
5
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
56
|
|
|
68
|
|
|
(18
|
)
|
|||
Noninterest expense
|
13,564
|
|
|
13,175
|
|
|
3
|
|
|||
Income before income taxes (FTE basis)
|
4,970
|
|
|
4,407
|
|
|
13
|
|
|||
Income tax expense (FTE basis)
|
1,882
|
|
|
1,632
|
|
|
15
|
|
|||
Net income
|
$
|
3,088
|
|
|
$
|
2,775
|
|
|
11
|
|
|
|
|
|
|
|
|
||||||
Net interest yield (FTE basis)
|
2.32
|
%
|
|
2.09
|
%
|
|
|
||||
Return on average allocated capital
|
22
|
|
|
21
|
|
|
|
||||
Efficiency ratio (FTE basis)
|
72.96
|
|
|
74.65
|
|
|
|
||||
|
|
|
|
|
|
||||||
Balance Sheet
|
|
|
|
|
|
|
|||||
|
|
|
|
||||||||
Average
|
|
|
|
|
|
||||||
Total loans and leases
|
$
|
152,682
|
|
|
$
|
142,429
|
|
|
7
|
%
|
|
Total earning assets
|
265,670
|
|
|
275,799
|
|
|
(4
|
)
|
|||
Total assets
|
281,517
|
|
|
291,478
|
|
|
(3
|
)
|
|||
Total deposits
|
245,559
|
|
|
256,425
|
|
|
(4
|
)
|
|||
Allocated capital
|
14,000
|
|
|
13,000
|
|
|
8
|
|
|||
|
|
|
|
|
|
||||||
Year end
|
|
|
|
|
|
||||||
Total loans and leases
|
$
|
159,378
|
|
|
$
|
148,179
|
|
|
8
|
%
|
|
Total earning assets
|
267,026
|
|
|
283,151
|
|
|
(6
|
)
|
|||
Total assets
|
284,321
|
|
|
298,931
|
|
|
(5
|
)
|
|||
Total deposits
|
246,994
|
|
|
262,530
|
|
|
(6
|
)
|
33
Bank of America 2017
|
|
|
|
|
|
|
||||
Key Indicators and Metrics
|
|
|
|
||||
|
|
|
|
||||
(Dollars in millions, except as noted)
|
2017
|
|
2016
|
||||
Revenue by Business
|
|
|
|
||||
Merrill Lynch Global Wealth Management
|
$
|
15,288
|
|
|
$
|
14,486
|
|
U.S. Trust
|
3,295
|
|
|
3,075
|
|
||
Other
(1)
|
7
|
|
|
89
|
|
||
Total revenue, net of interest expense (FTE basis)
|
$
|
18,590
|
|
|
$
|
17,650
|
|
|
|
|
|
||||
Client Balances by Business, at year end
|
|
|
|
||||
Merrill Lynch Global Wealth Management
|
$
|
2,305,664
|
|
|
$
|
2,102,175
|
|
U.S. Trust
|
446,199
|
|
|
406,392
|
|
||
Total client balances
|
$
|
2,751,863
|
|
|
$
|
2,508,567
|
|
|
|
|
|
||||
Client Balances by Type, at year end
|
|
|
|
||||
Assets under management
|
$
|
1,080,747
|
|
|
$
|
886,148
|
|
Brokerage assets
|
1,125,282
|
|
|
1,085,826
|
|
||
Assets in custody
|
136,708
|
|
|
123,066
|
|
||
Deposits
|
246,994
|
|
|
262,530
|
|
||
Loans and leases
(2)
|
162,132
|
|
|
150,997
|
|
||
Total client balances
|
$
|
2,751,863
|
|
|
$
|
2,508,567
|
|
|
|
|
|
||||
Assets Under Management Rollforward
|
|
|
|
||||
Assets under management, beginning of year
|
$
|
886,148
|
|
|
$
|
900,863
|
|
Net client flows
(3)
|
95,707
|
|
|
30,582
|
|
||
Market valuation/other
(1)
|
98,892
|
|
|
(45,297
|
)
|
||
Total assets under management, end of year
|
$
|
1,080,747
|
|
|
$
|
886,148
|
|
|
|
|
|
||||
Associates, at year end
(4, 5)
|
|
|
|
||||
Number of financial advisors
|
17,355
|
|
|
16,820
|
|
||
Total wealth advisors, including financial advisors
|
19,238
|
|
|
18,678
|
|
||
Total primary sales professionals, including financial advisors and wealth advisors
|
20,341
|
|
|
19,629
|
|
||
|
|
|
|
||||
Merrill Lynch Global Wealth Management Metric
(5)
|
|
|
|
||||
Financial advisor productivity
(6)
(in thousands)
|
$
|
1,005
|
|
|
$
|
974
|
|
|
|
|
|
||||
U.S. Trust Metric, at year end
(5)
|
|
|
|
||||
Primary sales professionals
|
1,714
|
|
|
1,677
|
|
(1)
|
Amounts for 2016 include the results of BofA Global Capital Management, the cash management division of Bank of America, and certain administrative items. Amounts also reflect the sale to a third party of approximately $80 billion of BofA Global Capital Management’s AUM in 2016.
|
(2)
|
Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
|
(3)
|
For 2016, net client flows included $8.0 billion of net outflows related to BofA Global Capital Management’s AUM that were sold in 2016.
|
(4)
|
Includes financial advisors in the
Consumer Banking
segment of
2,402
and
2,200
at
December 31, 2017
and
2016
.
|
(5)
|
Associate computation is based on headcount.
|
(6)
|
Financial advisor productivity is defined as MLGWM total revenue, excluding the allocation of certain asset and liability management (ALM) activities, divided by the total average number of financial advisors (excluding financial advisors in the
Consumer Banking
segment).
|
|
|
Bank of America 2017
34
|
|
|
|
|
||||
Net Migration Summary
(1)
|
|
|
|
||||
|
|
|
|
||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Total deposits, net – from
GWIM
|
$
|
356
|
|
|
$
|
1,319
|
|
Total loans, net – from
GWIM
|
154
|
|
|
7
|
|
||
Total brokerage, net – from
GWIM
|
266
|
|
|
1,972
|
|
(1)
|
Migration occurs primarily between
GWIM
and
Consumer Banking
.
|
|
|
|
|
|
|
|
|||||
(Dollars in millions)
|
2017
|
|
2016
|
|
% Change
|
||||||
Net interest income (FTE basis)
|
$
|
10,504
|
|
|
$
|
9,471
|
|
|
11
|
%
|
|
Noninterest income:
|
|
|
|
|
|
||||||
Service charges
|
3,125
|
|
|
3,094
|
|
|
1
|
|
|||
Investment banking fees
|
3,471
|
|
|
2,884
|
|
|
20
|
|
|||
All other income
|
2,899
|
|
|
2,996
|
|
|
(3
|
)
|
|||
Total noninterest income
|
9,495
|
|
|
8,974
|
|
|
6
|
|
|||
Total revenue, net of interest expense (FTE basis)
|
19,999
|
|
|
18,445
|
|
|
8
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
212
|
|
|
883
|
|
|
(76
|
)
|
|||
Noninterest expense
|
8,596
|
|
|
8,486
|
|
|
1
|
|
|||
Income before income taxes (FTE basis)
|
11,191
|
|
|
9,076
|
|
|
23
|
|
|||
Income tax expense (FTE basis)
|
4,238
|
|
|
3,347
|
|
|
27
|
|
|||
Net income
|
$
|
6,953
|
|
|
$
|
5,729
|
|
|
21
|
|
|
|
|
|
|
|
|
||||||
Net interest yield (FTE basis)
|
2.93
|
%
|
|
2.76
|
%
|
|
|
||||
Return on average allocated capital
|
17
|
|
|
15
|
|
|
|
||||
Efficiency ratio (FTE basis)
|
42.98
|
|
|
46.01
|
|
|
|
||||
|
|
|
|
|
|
||||||
Balance Sheet
|
|
|
|
|
|
|
|||||
|
|
|
|
||||||||
Average
|
|
|
|
|
|
||||||
Total loans and leases
|
$
|
346,089
|
|
|
$
|
333,820
|
|
|
4
|
%
|
|
Total earning assets
|
358,302
|
|
|
342,859
|
|
|
5
|
|
|||
Total assets
|
416,038
|
|
|
396,737
|
|
|
5
|
|
|||
Total deposits
|
312,859
|
|
|
304,741
|
|
|
3
|
|
|||
Allocated capital
|
40,000
|
|
|
37,000
|
|
|
8
|
|
|||
|
|
|
|
|
|
||||||
Year end
|
|
|
|
|
|
||||||
Total loans and leases
|
$
|
350,668
|
|
|
$
|
339,271
|
|
|
3
|
%
|
|
Total earning assets
|
365,560
|
|
|
350,110
|
|
|
4
|
|
|||
Total assets
|
424,533
|
|
|
408,330
|
|
|
4
|
|
|||
Total deposits
|
329,273
|
|
|
307,630
|
|
|
7
|
|
35
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Global Corporate, Global Commercial and Business Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
Global Corporate Banking
|
|
Global Commercial Banking
|
|
Business Banking
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Business Lending
|
$
|
4,387
|
|
|
$
|
4,285
|
|
|
$
|
4,280
|
|
|
$
|
4,139
|
|
|
$
|
404
|
|
|
$
|
376
|
|
|
$
|
9,071
|
|
|
$
|
8,800
|
|
|
Global Transaction Services
|
3,322
|
|
|
2,996
|
|
|
3,017
|
|
|
2,718
|
|
|
849
|
|
|
740
|
|
|
7,188
|
|
|
6,454
|
|
|||||||||
Total revenue, net of interest expense
|
$
|
7,709
|
|
|
$
|
7,281
|
|
|
$
|
7,297
|
|
|
$
|
6,857
|
|
|
$
|
1,253
|
|
|
$
|
1,116
|
|
|
$
|
16,259
|
|
|
$
|
15,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total loans and leases
|
$
|
158,292
|
|
|
$
|
152,944
|
|
|
$
|
170,101
|
|
|
$
|
163,309
|
|
|
$
|
17,682
|
|
|
$
|
17,537
|
|
|
$
|
346,075
|
|
|
$
|
333,790
|
|
|
Total deposits
|
148,704
|
|
|
143,233
|
|
|
127,720
|
|
|
126,253
|
|
|
36,435
|
|
|
35,256
|
|
|
312,859
|
|
|
304,742
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Year end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total loans and leases
|
$
|
163,184
|
|
|
$
|
152,589
|
|
|
$
|
169,997
|
|
|
$
|
168,828
|
|
|
$
|
17,500
|
|
|
$
|
17,882
|
|
|
$
|
350,681
|
|
|
$
|
339,299
|
|
|
Total deposits
|
155,614
|
|
|
144,016
|
|
|
137,538
|
|
|
128,210
|
|
|
36,120
|
|
|
35,409
|
|
|
329,272
|
|
|
307,635
|
|
|
|
|
|
|
|
|
|
||||||||
Investment Banking Fees
|
|
|
|
|
|
|
|||||||||
|
|
|
|
||||||||||||
|
Global Banking
|
|
Total Corporation
|
||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Products
|
|
|
|
|
|
|
|
||||||||
Advisory
|
$
|
1,557
|
|
|
$
|
1,156
|
|
|
$
|
1,691
|
|
|
$
|
1,269
|
|
Debt issuance
|
1,506
|
|
|
1,407
|
|
|
3,635
|
|
|
3,276
|
|
||||
Equity issuance
|
408
|
|
|
321
|
|
|
940
|
|
|
864
|
|
||||
Gross investment banking fees
|
3,471
|
|
|
2,884
|
|
|
6,266
|
|
|
5,409
|
|
||||
Self-led deals
|
(113
|
)
|
|
(49
|
)
|
|
(255
|
)
|
|
(168
|
)
|
||||
Total investment banking fees
|
$
|
3,358
|
|
|
$
|
2,835
|
|
|
$
|
6,011
|
|
|
$
|
5,241
|
|
|
|
Bank of America 2017
36
|
|
|
|
|
|
|
|
|||||
(Dollars in millions)
|
2017
|
|
2016
|
|
% Change
|
||||||
Net interest income (FTE basis)
|
$
|
3,744
|
|
|
$
|
4,558
|
|
|
(18
|
)%
|
|
Noninterest income:
|
|
|
|
|
|
||||||
Investment and brokerage services
|
2,049
|
|
|
2,102
|
|
|
(3
|
)
|
|||
Investment banking fees
|
2,476
|
|
|
2,296
|
|
|
8
|
|
|||
Trading account profits
|
6,710
|
|
|
6,550
|
|
|
2
|
|
|||
All other income
|
972
|
|
|
584
|
|
|
66
|
|
|||
Total noninterest income
|
12,207
|
|
|
11,532
|
|
|
6
|
|
|||
Total revenue, net of interest expense (FTE basis)
|
15,951
|
|
|
16,090
|
|
|
(1
|
)
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
164
|
|
|
31
|
|
|
n/m
|
|
|||
Noninterest expense
|
10,731
|
|
|
10,169
|
|
|
6
|
|
|||
Income before income taxes (FTE basis)
|
5,056
|
|
|
5,890
|
|
|
(14
|
)
|
|||
Income tax expense (FTE basis)
|
1,763
|
|
|
2,072
|
|
|
(15
|
)
|
|||
Net income
|
$
|
3,293
|
|
|
$
|
3,818
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
||||||
Return on average allocated capital
|
9
|
%
|
|
10
|
%
|
|
|
||||
Efficiency ratio (FTE basis)
|
67.28
|
|
|
63.21
|
|
|
|
||||
|
|
|
|
|
|
||||||
Balance Sheet
|
|
|
|
|
|
|
|||||
|
|
|
|
||||||||
Average
|
|
|
|
|
|
||||||
Trading-related assets:
|
|
|
|
|
|
||||||
Trading account securities
|
$
|
216,996
|
|
|
$
|
185,135
|
|
|
17
|
%
|
|
Reverse repurchases
|
101,795
|
|
|
89,715
|
|
|
13
|
|
|||
Securities borrowed
|
82,210
|
|
|
87,286
|
|
|
(6
|
)
|
|||
Derivative assets
|
40,811
|
|
|
50,769
|
|
|
(20
|
)
|
|||
Total trading-related assets
(1)
|
441,812
|
|
|
412,905
|
|
|
7
|
|
|||
Total loans and leases
|
71,413
|
|
|
69,641
|
|
|
3
|
|
|||
Total earning assets
(1)
|
449,441
|
|
|
423,579
|
|
|
6
|
|
|||
Total assets
|
638,674
|
|
|
585,341
|
|
|
9
|
|
|||
Total deposits
|
32,864
|
|
|
34,250
|
|
|
(4
|
)
|
|||
Allocated capital
|
35,000
|
|
|
37,000
|
|
|
(5
|
)
|
|||
|
|
|
|
|
|
||||||
Year end
|
|
|
|
|
|
||||||
Total trading-related assets
(1)
|
$
|
419,375
|
|
|
$
|
380,562
|
|
|
10
|
%
|
|
Total loans and leases
|
76,778
|
|
|
72,743
|
|
|
6
|
|
|||
Total earning assets
(1)
|
449,314
|
|
|
397,022
|
|
|
13
|
|
|||
Total assets
|
629,007
|
|
|
566,060
|
|
|
11
|
|
|||
Total deposits
|
34,029
|
|
|
34,927
|
|
|
(3
|
)
|
(1)
|
Trading-related assets include derivative assets, which are considered non-earning assets.
|
37
Bank of America 2017
|
|
|
|
|
|
|
||||
Sales and Trading Revenue
(1, 2)
|
|
|
|
||||
|
|
|
|
||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Sales and trading revenue
|
|
|
|
||||
Fixed-income, currencies and commodities
|
$
|
8,665
|
|
|
$
|
9,373
|
|
Equities
|
4,112
|
|
|
4,017
|
|
||
Total sales and trading revenue
|
$
|
12,777
|
|
|
$
|
13,390
|
|
|
|
|
|
||||
Sales and trading revenue, excluding net DVA
(3)
|
|
|
|
||||
Fixed-income, currencies and commodities
|
$
|
9,059
|
|
|
$
|
9,611
|
|
Equities
|
4,146
|
|
|
4,017
|
|
||
Total sales and trading revenue, excluding net DVA
|
$
|
13,205
|
|
|
$
|
13,628
|
|
(1)
|
Includes FTE adjustments of
$236 million
and
$186 million
for
2017
and
2016
. 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
$236 million
and
$406 million
for
2017
and
2016
.
|
(3)
|
FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA
losses
were
$394 million
and
$238 million
for
2017
and
2016
. Equities net DVA
losses
were
$34 million
and
$0
for
2017
and
2016
.
|
|
|
|
|
|
|
|
|||||
(Dollars in millions)
|
2017
|
|
2016
|
|
% Change
|
||||||
Net interest income (FTE basis)
|
$
|
864
|
|
|
$
|
918
|
|
|
(6
|
)%
|
|
Noninterest income:
|
|
|
|
|
|
||||||
Card income
|
69
|
|
|
189
|
|
|
(63
|
)
|
|||
Mortgage banking income (loss)
|
(263
|
)
|
|
889
|
|
|
(130
|
)
|
|||
Gains on sales of debt securities
|
255
|
|
|
490
|
|
|
(48
|
)
|
|||
All other loss
|
(1,709
|
)
|
|
(1,801
|
)
|
|
(5
|
)
|
|||
Total noninterest income (loss)
|
(1,648
|
)
|
|
(233
|
)
|
|
n/m
|
|
|||
Total revenue, net of interest expense (FTE basis)
|
(784
|
)
|
|
685
|
|
|
n/m
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
(561
|
)
|
|
(100
|
)
|
|
n/m
|
|
|||
Noninterest expense
|
4,065
|
|
|
5,599
|
|
|
(27
|
)
|
|||
Loss before income taxes (FTE basis)
|
(4,288
|
)
|
|
(4,814
|
)
|
|
(11
|
)
|
|||
Income tax expense (benefit) (FTE basis)
|
(979
|
)
|
|
(3,142
|
)
|
|
(69
|
)
|
|||
Net loss
|
$
|
(3,309
|
)
|
|
$
|
(1,672
|
)
|
|
98
|
|
|
|
|
|
|
|
|
|
|||||
Balance Sheet
(1)
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
Average
|
|
|
|
|
|
|
|||||
Total loans and leases
|
$
|
82,489
|
|
|
$
|
108,735
|
|
|
(24
|
)%
|
|
Total assets
(1)
|
206,998
|
|
|
248,287
|
|
|
(17
|
)
|
|||
Total deposits
|
25,194
|
|
|
27,494
|
|
|
(8
|
)
|
|||
|
|
|
|
|
|
|
|||||
Year end
|
|
|
|
|
|
|
|||||
Total loans and leases
(2)
|
$
|
69,452
|
|
|
$
|
96,713
|
|
|
(28
|
)%
|
|
Total assets
(1)
|
194,048
|
|
|
212,413
|
|
|
(9
|
)
|
|||
Total deposits
|
22,719
|
|
|
23,061
|
|
|
(1
|
)
|
(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. Allocated assets were
$515.6 billion
and
$500.0 billion
for
2017
and
2016
, and
$520.4 billion
and
$518.7 billion
at
December 31, 2017
and
2016
.
|
(2)
|
Included $9.2 billion of non-U.S. credit card loans at
December 31, 2016
, which were included in assets of business held for sale on the Consolidated Balance Sheet. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
|
|
Bank of America 2017
38
|
39
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 11
|
Contractual Obligations
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
December 31, 2017
|
|
December 31
2016 |
||||||||||||||||||||
(Dollars in millions)
|
Due in One
Year or Less |
|
Due After
One Year Through Three Years |
|
Due After
Three Years Through Five Years |
|
Due After
Five Years |
|
Total
|
|
Total
|
|||||||||||||
Long-term debt
|
$
|
42,057
|
|
|
$
|
42,145
|
|
|
$
|
30,879
|
|
|
$
|
112,321
|
|
|
$
|
227,402
|
|
|
$
|
216,823
|
|
|
Operating lease obligations
|
2,256
|
|
|
4,072
|
|
|
3,023
|
|
|
5,169
|
|
|
14,520
|
|
|
13,620
|
|
|||||||
Purchase obligations
|
1,317
|
|
|
1,426
|
|
|
458
|
|
|
1,018
|
|
|
4,219
|
|
|
5,742
|
|
|||||||
Time deposits
|
61,038
|
|
|
4,990
|
|
|
1,543
|
|
|
273
|
|
|
67,844
|
|
|
74,944
|
|
|||||||
Other long-term liabilities
|
1,681
|
|
|
1,234
|
|
|
862
|
|
|
1,195
|
|
|
4,972
|
|
|
4,567
|
|
|||||||
Estimated interest expense on long-term debt and time deposits
(1)
|
5,590
|
|
|
8,796
|
|
|
6,909
|
|
|
27,828
|
|
|
49,123
|
|
|
39,447
|
|
|||||||
Total contractual obligations
|
$
|
113,939
|
|
|
$
|
62,663
|
|
|
$
|
43,674
|
|
|
$
|
147,804
|
|
|
$
|
368,080
|
|
|
$
|
355,143
|
|
(1)
|
Represents forecasted net interest expense on long-term debt and time deposits based on interest rates at
December 31, 2017
. Forecasts are based on the contractual maturity dates of each liability, and are net of derivative hedges, where applicable.
|
|
|
Bank of America 2017
40
|
●
|
Strategic risk is the risk resulting from incorrect assumptions about external or internal factors, inappropriate business plans, ineffective business strategy execution, or failure to respond in a timely manner to changes in the regulatory, macroeconomic or competitive environments in the geographic locations in which we operate.
|
●
|
Credit risk is the risk of loss arising from the inability or failure of a borrower or counterparty to meet its obligations.
|
●
|
Market risk is the risk that changes in market conditions may adversely impact the value of assets or liabilities, or otherwise negatively impact earnings.
|
●
|
Liquidity risk is the inability to meet expected or unexpected cash flow and collateral needs while continuing to support our businesses and customers under a range of economic conditions.
|
●
|
Compliance risk is the risk of legal or regulatory sanctions, material financial loss or damage to the reputation of the Corporation arising from the failure of the Corporation to comply with the requirements of applicable laws, rules, regulations and related self-regulatory organizations’ standards and codes of conduct.
|
●
|
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
|
●
|
Reputational risk is the risk that negative perceptions of the Corporation’s conduct or business practices may adversely impact its profitability or operations.
|
41
Bank of America 2017
|
|
|
|
|
Bank of America 2017
42
|
43
Bank of America 2017
|
|
|
|
|
Bank of America 2017
44
|
45
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table 12
|
Bank of America Corporation Regulatory Capital under Basel 3
(1, 2)
|
|
|
|
|
|||||||||||||||||
|
|
|
||||||||||||||||||||
|
|
Transition
|
|
Fully Phased-in
|
||||||||||||||||||
|
Standardized
Approach
|
|
Advanced
Approaches
(3)
|
|
Regulatory Minimum
(4)
|
|
Standardized
Approach
|
|
Advanced
Approaches
(3)
|
|
Regulatory Minimum
(5)
|
|||||||||||
(Dollars in millions, except as noted)
|
December 31, 2017
|
|||||||||||||||||||||
Risk-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common equity tier 1 capital
|
$
|
171,063
|
|
|
$
|
171,063
|
|
|
|
|
$
|
168,461
|
|
|
$
|
168,461
|
|
|
|
|||
Tier 1 capital
|
191,496
|
|
|
191,496
|
|
|
|
|
190,189
|
|
|
190,189
|
|
|
|
|||||||
Total capital
(6)
|
227,427
|
|
|
218,529
|
|
|
|
|
224,209
|
|
|
215,311
|
|
|
|
|||||||
Risk-weighted assets (in billions)
|
1,434
|
|
|
1,449
|
|
|
|
|
1,443
|
|
|
1,459
|
|
|
|
|||||||
Common equity tier 1 capital ratio
|
11.9
|
%
|
|
11.8
|
%
|
|
7.25
|
%
|
|
11.7
|
%
|
|
11.5
|
%
|
|
9.5
|
%
|
|||||
Tier 1 capital ratio
|
13.4
|
|
|
13.2
|
|
|
8.75
|
|
|
13.2
|
|
|
13.0
|
|
|
11.0
|
|
|||||
Total capital ratio
|
15.9
|
|
|
15.1
|
|
|
10.75
|
|
|
15.5
|
|
|
14.8
|
|
|
13.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage-based metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted quarterly average assets (in billions)
(7)
|
$
|
2,224
|
|
|
$
|
2,224
|
|
|
|
|
$
|
2,223
|
|
|
$
|
2,223
|
|
|
|
|||
Tier 1 leverage ratio
|
8.6
|
%
|
|
8.6
|
%
|
|
4.0
|
|
|
8.6
|
%
|
|
8.6
|
%
|
|
4.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
SLR leverage exposure (in billions)
|
|
|
|
|
|
|
|
|
$
|
2,756
|
|
|
|
|||||||||
SLR
|
|
|
|
|
|
|
|
|
6.9
|
%
|
|
5.0
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31, 2016
|
||||||||||||||||||||
Risk-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common equity tier 1 capital
|
$
|
168,866
|
|
|
$
|
168,866
|
|
|
|
|
$
|
162,729
|
|
|
$
|
162,729
|
|
|
|
|||
Tier 1 capital
|
190,315
|
|
|
190,315
|
|
|
|
|
187,559
|
|
|
187,559
|
|
|
|
|||||||
Total capital
(6)
|
228,187
|
|
|
218,981
|
|
|
|
|
223,130
|
|
|
213,924
|
|
|
|
|||||||
Risk-weighted assets (in billions)
|
1,399
|
|
|
1,530
|
|
|
|
|
1,417
|
|
|
1,512
|
|
|
|
|||||||
Common equity tier 1 capital ratio
|
12.1
|
%
|
|
11.0
|
%
|
|
5.875
|
%
|
|
11.5
|
%
|
|
10.8
|
%
|
|
9.5
|
%
|
|||||
Tier 1 capital ratio
|
13.6
|
|
|
12.4
|
|
|
7.375
|
|
|
13.2
|
|
|
12.4
|
|
|
11.0
|
|
|||||
Total capital ratio
|
16.3
|
|
|
14.3
|
|
|
9.375
|
|
|
15.8
|
|
|
14.2
|
|
|
13.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage-based metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted quarterly average assets (in billions)
(7)
|
$
|
2,131
|
|
|
$
|
2,131
|
|
|
|
|
$
|
2,131
|
|
|
$
|
2,131
|
|
|
|
|||
Tier 1 leverage ratio
|
8.9
|
%
|
|
8.9
|
%
|
|
4.0
|
|
|
8.8
|
%
|
|
8.8
|
%
|
|
4.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SLR leverage exposure (in billions)
|
|
|
|
|
|
|
|
|
$
|
2,702
|
|
|
|
|||||||||
SLR
|
|
|
|
|
|
|
|
|
6.9
|
%
|
|
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 method at
December 31, 2017
and
2016
.
|
(2)
|
Under the applicable bank regulatory rules, we are not required to and, accordingly, will not restate previously-filed regulatory capital metrics and ratios in connection with the change in accounting method under GAAP for stock-based compensation awards granted to retirement-eligible employees. Therefore, the December 31, 2016 amounts in the table are as originally reported. The cumulative impact of the change in accounting method resulted in an insignificant pro forma change to our capital metrics and ratios. For more information, see
Note 1 – Summary of Significant Accounting Principles
to the Consolidated Financial Statements
.
|
(3)
|
During the fourth quarter of 2017, we obtained approval from U.S. banking regulators to use our IMM to calculate counterparty credit risk-weighted assets for derivatives under the Advanced approaches. Fully phased-in estimates for prior periods assumed approval.
|
(4)
|
The
December 31, 2017
and
2016
amounts include a transition capital conservation buffer of
1.25 percent
and
0.625 percent
and a transition G-SIB surcharge of
1.5 percent
and
0.75 percent
. The countercyclical capital buffer for both periods is
zero
.
|
(5)
|
Fully phased-in regulatory minimums assume a capital conservation buffer of
2.5 percent
and estimated G-SIB surcharge of
2.5 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
December 31, 2017
and
2016
.
|
|
|
Bank of America 2017
46
|
|
|
|
|
|
||||
Table 13
|
Capital Composition under Basel 3 – Transition
(1, 2)
|
|
|
|
||||
|
|
|
|
|
||||
|
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||
Total common shareholders’ equity
|
$
|
244,823
|
|
|
$
|
241,620
|
|
|
Goodwill
|
(68,576
|
)
|
|
(69,191
|
)
|
|||
Deferred tax assets arising from net operating loss and tax credit carryforwards
|
(5,244
|
)
|
|
(4,976
|
)
|
|||
Adjustments for amounts recorded in accumulated OCI attributed to AFS Securities and defined benefit postretirement plans
|
879
|
|
|
1,899
|
|
|||
Adjustments for amounts recorded in accumulated OCI attributed to certain cash flow hedges
|
831
|
|
|
895
|
|
|||
Intangibles, other than mortgage servicing rights and goodwill
|
(1,395
|
)
|
|
(1,198
|
)
|
|||
Defined benefit pension fund assets
|
(910
|
)
|
|
(512
|
)
|
|||
DVA related to liabilities and derivatives
|
957
|
|
|
413
|
|
|||
Other
|
(302
|
)
|
|
(84
|
)
|
|||
Common equity tier 1 capital
|
171,063
|
|
|
168,866
|
|
|||
Qualifying preferred stock, net of issuance cost
|
22,323
|
|
|
25,220
|
|
|||
Deferred tax assets arising from net operating loss and tax credit carryforwards
|
(1,311
|
)
|
|
(3,318
|
)
|
|||
Defined benefit pension fund assets
|
(228
|
)
|
|
(341
|
)
|
|||
DVA related to liabilities and derivatives under transition
|
239
|
|
|
276
|
|
|||
Other
|
(590
|
)
|
|
(388
|
)
|
|||
Total Tier 1 capital
|
191,496
|
|
|
190,315
|
|
|||
Long-term debt qualifying as Tier 2 capital
|
22,938
|
|
|
23,365
|
|
|||
Eligible credit reserves included in Tier 2 capital
|
2,272
|
|
|
3,035
|
|
|||
Nonqualifying capital instruments subject to phase out from Tier 2 capital
|
1,893
|
|
|
2,271
|
|
|||
Other
|
(70
|
)
|
|
(5
|
)
|
|||
Total Basel 3 Capital
|
$
|
218,529
|
|
|
$
|
218,981
|
|
(1)
|
See
Table 12
, footnotes 1 and 2.
|
(2)
|
Deductions from and adjustments to regulatory capital subject to transition provisions under Basel 3 are generally recognized in 20 percent annual increments, and are fully recognized as of January 1, 2018. Any assets that are a direct deduction from the computation of capital are excluded from risk-weighted assets and adjusted average total assets.
|
|
|
|
|
|
|
|
|
|
||||||||
Table 14
|
Risk-weighted Assets under Basel 3 – Transition
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Standardized Approach
|
|
Advanced Approaches
|
|
Standardized Approach
|
|
Advanced Approaches
|
|||||||||
|
December 31
|
|||||||||||||||
(Dollars in billions)
|
2017
|
|
2016
|
|||||||||||||
Credit risk
|
$
|
1,375
|
|
|
$
|
857
|
|
|
$
|
1,334
|
|
|
$
|
903
|
|
|
Market risk
|
59
|
|
|
58
|
|
|
65
|
|
|
63
|
|
|||||
Operational risk
|
n/a
|
|
|
500
|
|
|
n/a
|
|
|
500
|
|
|||||
Risks related to CVA
|
n/a
|
|
|
34
|
|
|
n/a
|
|
|
64
|
|
|||||
Total risk-weighted assets
|
$
|
1,434
|
|
|
$
|
1,449
|
|
|
$
|
1,399
|
|
|
$
|
1,530
|
|
47
Bank of America 2017
|
|
|
|
|
|
|
|
||||
Table 15
|
Regulatory Capital Reconciliations between Basel 3 Transition to Fully Phased-in
(1)
|
|||||||
|
|
|
|
|||||
|
December 31
|
|||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||
Common equity tier 1 capital (transition)
|
$
|
171,063
|
|
|
$
|
168,866
|
|
|
Deferred tax assets arising from net operating loss and tax credit carryforwards phased in during transition
|
(1,311
|
)
|
|
(3,318
|
)
|
|||
Accumulated OCI phased in during transition
|
(879
|
)
|
|
(1,899
|
)
|
|||
Intangibles phased in during transition
|
(348
|
)
|
|
(798
|
)
|
|||
Defined benefit pension fund assets phased in during transition
|
(228
|
)
|
|
(341
|
)
|
|||
DVA related to liabilities and derivatives phased in during transition
|
239
|
|
|
276
|
|
|||
Other adjustments and deductions phased in during transition
|
(75
|
)
|
|
(57
|
)
|
|||
Common equity tier 1 capital (fully phased-in)
|
168,461
|
|
|
162,729
|
|
|||
Additional Tier 1 capital (transition)
|
20,433
|
|
|
21,449
|
|
|||
Deferred tax assets arising from net operating loss and tax credit carryforwards phased out during transition
|
1,311
|
|
|
3,318
|
|
|||
Defined benefit pension fund assets phased out during transition
|
228
|
|
|
341
|
|
|||
DVA related to liabilities and derivatives phased out during transition
|
(239
|
)
|
|
(276
|
)
|
|||
Other transition adjustments to additional Tier 1 capital
|
(5
|
)
|
|
(2
|
)
|
|||
Additional Tier 1 capital (fully phased-in)
|
21,728
|
|
|
24,830
|
|
|||
Tier 1 capital (fully phased-in)
|
190,189
|
|
|
187,559
|
|
|||
Tier 2 capital (transition)
|
27,033
|
|
|
28,666
|
|
|||
Nonqualifying capital instruments phased out during transition
|
(1,893
|
)
|
|
(2,271
|
)
|
|||
Other adjustments to Tier 2 capital
|
8,880
|
|
|
9,176
|
|
|||
Tier 2 capital (fully phased-in)
|
34,020
|
|
|
35,571
|
|
|||
Basel 3 Standardized approach Total capital (fully phased-in)
|
224,209
|
|
|
223,130
|
|
|||
Change in Tier 2 qualifying allowance for credit losses
|
(8,898
|
)
|
|
(9,206
|
)
|
|||
Basel 3 Advanced approaches Total capital (fully phased-in)
|
$
|
215,311
|
|
|
$
|
213,924
|
|
|
|
|
|
|
|||||
Risk-weighted assets – As reported to Basel 3 (fully phased-in)
|
|
|
|
|||||
Basel 3 Standardized approach risk-weighted assets as reported
|
$
|
1,433,517
|
|
|
$
|
1,399,477
|
|
|
Changes in risk-weighted assets from reported to fully phased-in
|
9,204
|
|
|
17,638
|
|
|||
Basel 3 Standardized approach risk-weighted assets (fully phased-in)
|
$
|
1,442,721
|
|
|
$
|
1,417,115
|
|
|
|
|
|
|
|||||
Basel 3 Advanced approaches risk-weighted assets as reported
|
$
|
1,449,222
|
|
|
$
|
1,529,903
|
|
|
Changes in risk-weighted assets from reported to fully phased-in
|
9,757
|
|
|
(18,113
|
)
|
|||
Basel 3 Advanced approaches risk-weighted assets (fully phased-in)
|
$
|
1,458,979
|
|
|
$
|
1,511,790
|
|
(1)
|
See
Table 12
, footnotes 1, 2 and 4.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Table 16
|
Bank of America, N.A. Regulatory Capital under Basel 3
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Standardized Approach
|
|
Advanced Approaches
|
||||||||||||||||
|
Ratio
|
|
Amount
|
|
Minimum
Required (1) |
|
Ratio
|
|
Amount
|
|
Minimum
Required (1) |
|||||||||
(Dollars in millions)
|
December 31, 2017
|
|||||||||||||||||||
Common equity tier 1 capital
|
12.5
|
%
|
|
$
|
150,552
|
|
|
6.5
|
%
|
|
14.9
|
%
|
|
$
|
150,552
|
|
|
6.5
|
%
|
|
Tier 1 capital
|
12.5
|
|
|
150,552
|
|
|
8.0
|
|
|
14.9
|
|
|
150,552
|
|
|
8.0
|
|
|||
Total capital
|
13.6
|
|
|
163,243
|
|
|
10.0
|
|
|
15.4
|
|
|
154,675
|
|
|
10.0
|
|
|||
Tier 1 leverage
|
9.0
|
|
|
150,552
|
|
|
5.0
|
|
|
9.0
|
|
|
150,552
|
|
|
5.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
December 31, 2016
|
||||||||||||||||||
Common equity tier 1 capital
|
12.7
|
%
|
|
$
|
149,755
|
|
|
6.5
|
%
|
|
14.3
|
%
|
|
$
|
149,755
|
|
|
6.5
|
%
|
|
Tier 1 capital
|
12.7
|
|
|
149,755
|
|
|
8.0
|
|
|
14.3
|
|
|
149,755
|
|
|
8.0
|
|
|||
Total capital
|
13.9
|
|
|
163,471
|
|
|
10.0
|
|
|
14.8
|
|
|
154,697
|
|
|
10.0
|
|
|||
Tier 1 leverage
|
9.3
|
|
|
149,755
|
|
|
5.0
|
|
|
9.3
|
|
|
149,755
|
|
|
5.0
|
|
(1)
|
Percent required to meet guidelines to be considered “well capitalized” under the PCA framework.
|
|
|
Bank of America 2017
48
|
49
Bank of America 2017
|
|
|
|
|
|
|
|
||||
Table 17
|
Average Global Liquidity Sources
|
|||||||
|
|
|
|
|
||||
|
|
Three Months Ended December 31
|
||||||
(Dollars in billions)
|
2017
|
|
2016
|
|||||
Parent company and NB Holdings
|
$
|
79
|
|
|
$
|
77
|
|
|
Bank subsidiaries
|
394
|
|
|
389
|
|
|||
Other regulated entities
|
49
|
|
|
49
|
|
|||
Total Average Global Liquidity Sources
|
$
|
522
|
|
|
$
|
515
|
|
|
|
Bank of America 2017
50
|
|
|
|
|
|
||||
Table 18
|
Average Global Liquidity Sources Composition
|
|||||||
|
|
|
||||||
|
|
Three Months Ended December 31
|
||||||
(Dollars in billions)
|
2017
|
|
2016
|
|||||
Cash on deposit
|
$
|
118
|
|
|
$
|
118
|
|
|
U.S. Treasury securities
|
62
|
|
|
58
|
|
|||
U.S. agency securities and mortgage-backed securities
|
330
|
|
|
322
|
|
|||
Non-U.S. government securities
|
12
|
|
|
17
|
|
|||
Total Average Global Liquidity Sources
|
$
|
522
|
|
|
$
|
515
|
|
51
Bank of America 2017
|
|
|
|
|
|
|
|
||||
Table 19
|
Long-term Debt by Major Currency
|
|||||||
|
|
|
||||||
|
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||
U.S. dollar
|
$
|
175,623
|
|
|
$
|
172,082
|
|
|
Euro
|
35,481
|
|
|
28,236
|
|
|||
British pound
|
7,016
|
|
|
6,588
|
|
|||
Australian dollar
|
3,046
|
|
|
2,900
|
|
|||
Japanese yen
|
2,993
|
|
|
3,919
|
|
|||
Canadian dollar
|
1,966
|
|
|
1,049
|
|
|||
Other
|
1,277
|
|
|
2,049
|
|
|||
Total long-term debt
|
$
|
227,402
|
|
|
$
|
216,823
|
|
|
|
Bank of America 2017
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 20
|
Senior Debt Ratings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
||||||||||||||||
|
|
Moody
’
s Investors Service
|
|
Standard & Poor
’
s Global Ratings
|
|
Fitch Ratings
|
||||||||||||
|
Long-term
|
|
Short-term
|
|
Outlook
|
|
Long-term
|
|
Short-term
|
|
Outlook
|
|
Long-term
|
|
Short-term
|
|
Outlook
|
|
Bank of America Corporation
|
A3
|
|
P-2
|
|
Stable
|
|
A-
|
|
A-2
|
|
Stable
|
|
A
|
|
F1
|
|
Stable
|
|
Bank of America, N.A.
|
Aa3
|
|
P-1
|
|
Stable
|
|
A+
|
|
A-1
|
|
Stable
|
|
A+
|
|
F1
|
|
Stable
|
|
Merrill Lynch, Pierce, Fenner & Smith Incorporated
|
NR
|
|
NR
|
|
NR
|
|
A+
|
|
A-1
|
|
Stable
|
|
A+
|
|
F1
|
|
Stable
|
|
Merrill Lynch International
|
NR
|
|
NR
|
|
NR
|
|
A+
|
|
A-1
|
|
Stable
|
|
A
|
|
F1
|
|
Stable
|
53
Bank of America 2017
|
|
|
|
|
Bank of America 2017
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 21
|
Consumer Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Outstandings
|
|
Nonperforming
|
|
Accruing Past Due
90 Days or More
|
|||||||||||||||||||
|
December 31
|
|||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||
Residential mortgage
(1)
|
$
|
203,811
|
|
|
$
|
191,797
|
|
|
$
|
2,476
|
|
|
$
|
3,056
|
|
|
$
|
3,230
|
|
|
$
|
4,793
|
|
|
Home equity
|
57,744
|
|
|
66,443
|
|
|
2,644
|
|
|
2,918
|
|
|
—
|
|
|
—
|
|
|||||||
U.S. credit card
|
96,285
|
|
|
92,278
|
|
|
n/a
|
|
|
n/a
|
|
|
900
|
|
|
782
|
|
|||||||
Non-U.S. credit card
|
—
|
|
|
9,214
|
|
|
n/a
|
|
|
n/a
|
|
|
—
|
|
|
66
|
|
|||||||
Direct/Indirect consumer
(2)
|
93,830
|
|
|
94,089
|
|
|
46
|
|
|
28
|
|
|
40
|
|
|
34
|
|
|||||||
Other consumer
(3)
|
2,678
|
|
|
2,499
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|||||||
Consumer loans excluding loans accounted for under the fair value option
|
$
|
454,348
|
|
|
$
|
456,320
|
|
|
$
|
5,166
|
|
|
$
|
6,004
|
|
|
$
|
4,170
|
|
|
$
|
5,679
|
|
|
Loans accounted for under the fair value option
(4)
|
928
|
|
|
1,051
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total consumer loans and leases
(5)
|
$
|
455,276
|
|
|
$
|
457,371
|
|
|
|
|
|
|
|
|
|
|||||||||
Percentage of outstanding consumer loans and leases
(6)
|
n/a
|
|
|
n/a
|
|
|
1.14
|
%
|
|
1.32
|
%
|
|
0.92
|
%
|
|
1.24
|
%
|
|||||||
Percentage of outstanding consumer loans and leases, excluding PCI and fully-insured loan portfolios
(6)
|
n/a
|
|
|
n/a
|
|
|
1.23
|
|
|
1.45
|
|
|
0.22
|
|
|
0.21
|
|
(1)
|
Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At
December 31, 2017 and 2016
, residential mortgage includes
$2.2 billion
and
$3.0 billion
of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and
$1.0 billion
and
$1.8 billion
of loans on which interest was still accruing.
|
(2)
|
Outstandings include auto and specialty lending loans of
$49.9 billion
and
$48.9 billion
, unsecured consumer lending loans of
$469 million
and
$585 million
, U.S. securities-based lending loans of
$39.8 billion
and
$40.1 billion
, non-U.S. consumer loans of
$3.0 billion
for both periods, student loans of
$0
and
$497 million
and other consumer loans of
$684 million
and
$1.1 billion
at
December 31, 2017 and 2016
.
|
(3)
|
Outstandings include consumer leases of
$2.5 billion
and
$1.9 billion
, consumer overdrafts of
$163 million
and
$157 million
and consumer finance loans of
$0
and
$465 million
at
December 31, 2017 and 2016
.
|
(4)
|
Consumer loans accounted for under the fair value option include residential mortgage loans of
$567 million
and
$710 million
and home equity loans of
$361 million
and
$341 million
at
December 31, 2017 and 2016
. For more information on the fair value option, see
Note 21 – Fair Value Option
to the Consolidated Financial Statements
.
|
(5)
|
Includes $9.2 billion of non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet at
December 31, 2016
. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
|
|
|
|
|
|
|
|
|
||||||
Table 22
|
Consumer Net Charge-offs and Related Ratios
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Net Charge-offs
(1)
|
|
Net Charge-off Ratios
(1, 2)
|
||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||
Residential mortgage
|
$
|
(100
|
)
|
|
$
|
131
|
|
|
(0.05
|
)%
|
|
0.07
|
%
|
|
Home equity
|
213
|
|
|
405
|
|
|
0.34
|
|
|
0.57
|
|
|||
U.S. credit card
|
2,513
|
|
|
2,269
|
|
|
2.76
|
|
|
2.58
|
|
|||
Non-U.S. credit card
|
75
|
|
|
175
|
|
|
1.91
|
|
|
1.83
|
|
|||
Direct/Indirect consumer
|
211
|
|
|
134
|
|
|
0.23
|
|
|
0.15
|
|
|||
Other consumer
|
166
|
|
|
205
|
|
|
6.35
|
|
|
8.95
|
|
|||
Total
|
$
|
3,078
|
|
|
$
|
3,319
|
|
|
0.68
|
|
|
0.74
|
|
(1)
|
Net charge-offs exclude write-offs in the PCI loan portfolio. For more information, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
60
.
|
(2)
|
Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
|
55
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 23
|
Consumer Real Estate Portfolio
(1)
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Outstandings
|
|
Nonperforming
|
|
Net Charge-offs
(2)
|
||||||||||||||||||
|
|
December 31
|
|
|||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage
|
$
|
176,618
|
|
|
$
|
156,497
|
|
|
$
|
1,087
|
|
|
$
|
1,274
|
|
|
$
|
(45
|
)
|
|
$
|
(29
|
)
|
|
Home equity
|
44,245
|
|
|
49,373
|
|
|
1,079
|
|
|
969
|
|
|
100
|
|
|
113
|
|
|||||||
Total core portfolio
|
220,863
|
|
|
205,870
|
|
|
2,166
|
|
|
2,243
|
|
|
55
|
|
|
84
|
|
|||||||
Non-core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
27,193
|
|
|
35,300
|
|
|
1,389
|
|
|
1,782
|
|
|
(55
|
)
|
|
160
|
|
|||||||
Home equity
|
13,499
|
|
|
17,070
|
|
|
1,565
|
|
|
1,949
|
|
|
113
|
|
|
292
|
|
|||||||
Total non-core portfolio
|
40,692
|
|
|
52,370
|
|
|
2,954
|
|
|
3,731
|
|
|
58
|
|
|
452
|
|
|||||||
Consumer real estate portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage
|
203,811
|
|
|
191,797
|
|
|
2,476
|
|
|
3,056
|
|
|
(100
|
)
|
|
131
|
|
|||||||
Home equity
|
57,744
|
|
|
66,443
|
|
|
2,644
|
|
|
2,918
|
|
|
213
|
|
|
405
|
|
|||||||
Total consumer real estate portfolio
|
$
|
261,555
|
|
|
$
|
258,240
|
|
|
$
|
5,120
|
|
|
$
|
5,974
|
|
|
$
|
113
|
|
|
$
|
536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Allowance for Loan
and Lease Losses
|
|
Provision for Loan
and Lease Losses
|
||||||||||||||||
|
|
|
|
|
|
December 31
|
|
|||||||||||||||||
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Residential mortgage
|
|
|
|
|
$
|
218
|
|
|
$
|
252
|
|
|
$
|
(79
|
)
|
|
$
|
(98
|
)
|
|||||
Home equity
|
|
|
|
|
367
|
|
|
560
|
|
|
(91
|
)
|
|
10
|
|
|||||||||
Total core portfolio
|
|
|
|
|
585
|
|
|
812
|
|
|
(170
|
)
|
|
(88
|
)
|
|||||||||
Non-core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage
|
|
|
|
|
483
|
|
|
760
|
|
|
(201
|
)
|
|
(86
|
)
|
|||||||||
Home equity
|
|
|
|
|
652
|
|
|
1,178
|
|
|
(339
|
)
|
|
(84
|
)
|
|||||||||
Total non-core portfolio
|
|
|
|
|
1,135
|
|
|
1,938
|
|
|
(540
|
)
|
|
(170
|
)
|
|||||||||
Consumer real estate portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage
|
|
|
|
|
701
|
|
|
1,012
|
|
|
(280
|
)
|
|
(184
|
)
|
|||||||||
Home equity
|
|
|
|
|
1,019
|
|
|
1,738
|
|
|
(430
|
)
|
|
(74
|
)
|
|||||||||
Total consumer real estate portfolio
|
|
|
|
|
$
|
1,720
|
|
|
$
|
2,750
|
|
|
$
|
(710
|
)
|
|
$
|
(258
|
)
|
(1)
|
Outstandings and nonperforming loans exclude loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of
$567 million
and
$710 million
and home equity loans of
$361 million
and
$341 million
at
December 31, 2017 and 2016
. For more information, see
Note 21 – Fair Value Option
to the Consolidated Financial Statements
.
|
(2)
|
Net charge-offs exclude write-offs in the PCI loan portfolio. For more information, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
60
.
|
|
|
Bank of America 2017
56
|
|
|
|
|
|
|
|
|
|
|
||||||||
Table 24
|
Residential Mortgage – Key Credit Statistics
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Reported Basis
(1)
|
|
Excluding Purchased
Credit-impaired and Fully-insured Loans |
||||||||||||
|
|
|
December 31
|
||||||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Outstandings
|
|
$
|
203,811
|
|
|
$
|
191,797
|
|
|
$
|
172,069
|
|
|
$
|
152,941
|
|
|
Accruing past due 30 days or more
|
|
5,987
|
|
|
8,232
|
|
|
1,521
|
|
|
1,835
|
|
|||||
Accruing past due 90 days or more
|
|
3,230
|
|
|
4,793
|
|
|
—
|
|
|
—
|
|
|||||
Nonperforming loans
|
|
2,476
|
|
|
3,056
|
|
|
2,476
|
|
|
3,056
|
|
|||||
Percent of portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Refreshed LTV greater than 90 but less than or equal to 100
|
|
3
|
%
|
|
5
|
%
|
|
2
|
%
|
|
3
|
%
|
|||||
Refreshed LTV greater than 100
|
|
2
|
|
|
4
|
|
|
1
|
|
|
3
|
|
|||||
Refreshed FICO below 620
|
|
6
|
|
|
9
|
|
|
3
|
|
|
4
|
|
|||||
2006 and 2007 vintages
(2)
|
|
10
|
|
|
13
|
|
|
8
|
|
|
12
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net charge-off ratio
(3)
|
|
(0.05
|
)%
|
|
0.07
|
%
|
|
(0.06
|
)%
|
|
0.09
|
%
|
(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 accounted for $825 million, or
33 percent
, and $931 million, or
31 percent
, of nonperforming residential mortgage loans at
December 31, 2017 and 2016
.
|
(3)
|
Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
|
57
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 25
|
Residential Mortgage State Concentrations
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Outstandings
(1)
|
|
Nonperforming
(1)
|
|
Net Charge-offs
(2)
|
||||||||||||||||||
|
December 31
|
|
||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||
California
|
$
|
68,455
|
|
|
$
|
58,295
|
|
|
$
|
433
|
|
|
$
|
554
|
|
|
$
|
(103
|
)
|
|
$
|
(70
|
)
|
|
New York
(3)
|
17,239
|
|
|
14,476
|
|
|
227
|
|
|
290
|
|
|
(2
|
)
|
|
18
|
|
|||||||
Florida
(3)
|
10,880
|
|
|
10,213
|
|
|
280
|
|
|
322
|
|
|
(13
|
)
|
|
20
|
|
|||||||
Texas
|
7,237
|
|
|
6,607
|
|
|
126
|
|
|
132
|
|
|
1
|
|
|
9
|
|
|||||||
New Jersey
(3)
|
6,099
|
|
|
5,307
|
|
|
130
|
|
|
174
|
|
|
—
|
|
|
25
|
|
|||||||
Other U.S./Non-U.S.
|
62,159
|
|
|
58,043
|
|
|
1,280
|
|
|
1,584
|
|
|
17
|
|
|
129
|
|
|||||||
Residential mortgage loans
(4)
|
$
|
172,069
|
|
|
$
|
152,941
|
|
|
$
|
2,476
|
|
|
$
|
3,056
|
|
|
$
|
(100
|
)
|
|
$
|
131
|
|
|
Fully-insured loan portfolio
|
23,741
|
|
|
28,729
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased credit-impaired residential mortgage loan portfolio
(5)
|
8,001
|
|
|
10,127
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total residential mortgage loan portfolio
|
$
|
203,811
|
|
|
$
|
191,797
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Outstandings and nonperforming loans exclude loans accounted for under the fair value option.
|
(2)
|
Net charge-offs excluded
$131 million
and $
144 million
of write-offs in the residential mortgage PCI loan portfolio in
2017
and
2016
. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
60
.
|
(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
December 31, 2017 and 2016
, 47 percent and 48 percent of PCI residential mortgage loans were in California. There were no other significant single state concentrations.
|
|
|
Bank of America 2017
58
|
|
|
|
|
|
|
|
|
|
|
||||||||
Table 26
|
Home Equity – Key Credit Statistics
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Reported Basis
(1)
|
|
Excluding Purchased
Credit-impaired Loans |
||||||||||||
|
|
|
December 31
|
||||||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Outstandings
|
|
$
|
57,744
|
|
|
$
|
66,443
|
|
|
$
|
55,028
|
|
|
$
|
62,832
|
|
|
Accruing past due 30 days or more
(2)
|
|
502
|
|
|
566
|
|
|
502
|
|
|
566
|
|
|||||
Nonperforming loans
(2)
|
|
2,644
|
|
|
2,918
|
|
|
2,644
|
|
|
2,918
|
|
|||||
Percent of portfolio
|
|
|
|
|
|
|
|
|
|||||||||
Refreshed CLTV greater than 90 but less than or equal to 100
|
|
3
|
%
|
|
5
|
%
|
|
3
|
%
|
|
4
|
%
|
|||||
Refreshed CLTV greater than 100
|
|
5
|
|
|
8
|
|
|
4
|
|
|
7
|
|
|||||
Refreshed FICO below 620
|
|
6
|
|
|
7
|
|
|
6
|
|
|
6
|
|
|||||
2006 and 2007 vintages
(3)
|
|
29
|
|
|
37
|
|
|
27
|
|
|
34
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Net charge-off ratio
(4)
|
|
0.34
|
%
|
|
0.57
|
%
|
|
0.36
|
%
|
|
0.60
|
%
|
(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 included
$67 million
and
$81 million
and nonperforming loans included
$344 million
and
$340 million
of loans where we serviced the underlying first-lien at
December 31, 2017 and 2016
.
|
(3)
|
These vintages of loans have higher refreshed combined loan-to-value (CLTV) ratios and accounted for
52 percent
and
50 percent
of nonperforming home equity loans at
December 31, 2017 and 2016
, and 91 percent and
54 percent
of net charge-offs in
2017
and
2016
.
|
(4)
|
Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
|
59
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 27
|
Home Equity State Concentrations
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Outstandings
(1)
|
|
Nonperforming
(1)
|
|
Net Charge-offs
(2)
|
||||||||||||||||||
|
|
December 31
|
|
|||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||
California
|
$
|
15,145
|
|
|
$
|
17,563
|
|
|
$
|
766
|
|
|
$
|
829
|
|
|
$
|
(37
|
)
|
|
$
|
7
|
|
|
Florida
(3)
|
6,308
|
|
|
7,319
|
|
|
411
|
|
|
442
|
|
|
38
|
|
|
76
|
|
|||||||
New Jersey
(3)
|
4,546
|
|
|
5,102
|
|
|
191
|
|
|
201
|
|
|
44
|
|
|
50
|
|
|||||||
New York
(3)
|
4,195
|
|
|
4,720
|
|
|
252
|
|
|
271
|
|
|
35
|
|
|
45
|
|
|||||||
Massachusetts
|
2,751
|
|
|
3,078
|
|
|
92
|
|
|
100
|
|
|
9
|
|
|
12
|
|
|||||||
Other U.S./Non-U.S.
|
22,083
|
|
|
25,050
|
|
|
932
|
|
|
1,075
|
|
|
124
|
|
|
215
|
|
|||||||
Home equity loans
(4)
|
$
|
55,028
|
|
|
$
|
62,832
|
|
|
$
|
2,644
|
|
|
$
|
2,918
|
|
|
$
|
213
|
|
|
$
|
405
|
|
|
Purchased credit-impaired home equity portfolio
(5)
|
2,716
|
|
|
3,611
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total home equity loan portfolio
|
$
|
57,744
|
|
|
$
|
66,443
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Outstandings and nonperforming loans exclude loans accounted for under the fair value option.
|
(2)
|
Net charge-offs excluded
$76 million
and
$196 million
of write-offs in the home equity PCI loan portfolio in
2017
and
2016
. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
.
|
(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
December 31, 2017 and 2016
, 28 percent and 29 percent of PCI home equity loans were in California. There were no other significant single state concentrations.
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Table 28
|
Purchased Credit-impaired Loan Portfolio
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Unpaid
Principal Balance |
|
Gross Carrying
Value |
|
Related
Valuation Allowance |
|
Carrying Value Net of Valuation Allowance
|
|
Percent of Unpaid Principal Balance
|
||||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||||||
Residential mortgage
(1)
|
$
|
8,117
|
|
|
$
|
8,001
|
|
|
$
|
117
|
|
|
$
|
7,884
|
|
|
97.13
|
%
|
|
Home equity
|
2,787
|
|
|
2,716
|
|
|
172
|
|
|
2,544
|
|
|
91.28
|
|
|||||
Total purchased credit-impaired loan portfolio
|
$
|
10,904
|
|
|
$
|
10,717
|
|
|
$
|
289
|
|
|
$
|
10,428
|
|
|
95.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
December 31, 2016
|
|||||||||||||||||
Residential mortgage
(1)
|
$
|
10,330
|
|
|
$
|
10,127
|
|
|
$
|
169
|
|
|
$
|
9,958
|
|
|
96.40
|
%
|
|
Home equity
|
3,689
|
|
|
3,611
|
|
|
250
|
|
|
3,361
|
|
|
91.11
|
|
|||||
Total purchased credit-impaired loan portfolio
|
$
|
14,019
|
|
|
$
|
13,738
|
|
|
$
|
419
|
|
|
$
|
13,319
|
|
|
95.01
|
|
(1)
|
At
December 31, 2017 and 2016
, pay option loans had an unpaid principal balance of $1.4 billion and $1.9 billion and a carrying value of $
1.4 billion
and $
1.8 billion
. This includes $1.2 billion and $1.6 billion of loans that were credit-impaired upon acquisition and $141 million and $226 million of loans that were 90 days or more past due at
December 31, 2017 and 2016
. The total unpaid principal balance of pay option loans with accumulated negative amortization was $160 million and $303 million, including $9 million and $16 million of negative amortization at
December 31, 2017 and 2016
.
|
|
|
Bank of America 2017
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 29
|
U.S. Credit Card State Concentrations
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Outstandings
|
|
Accruing Past Due
90 Days or More |
|
Net Charge-offs
|
||||||||||||||||||
|
|
December 31
|
|
|||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||
California
|
$
|
15,254
|
|
|
$
|
14,251
|
|
|
$
|
136
|
|
|
$
|
115
|
|
|
$
|
412
|
|
|
$
|
360
|
|
|
Florida
|
8,359
|
|
|
7,864
|
|
|
94
|
|
|
85
|
|
|
259
|
|
|
245
|
|
|||||||
Texas
|
7,451
|
|
|
7,037
|
|
|
76
|
|
|
65
|
|
|
194
|
|
|
164
|
|
|||||||
New York
|
5,977
|
|
|
5,683
|
|
|
91
|
|
|
60
|
|
|
218
|
|
|
161
|
|
|||||||
Washington
|
4,350
|
|
|
4,128
|
|
|
20
|
|
|
18
|
|
|
56
|
|
|
56
|
|
|||||||
Other U.S.
|
54,894
|
|
|
53,315
|
|
|
483
|
|
|
439
|
|
|
1,374
|
|
|
1,283
|
|
|||||||
Total U.S. credit card portfolio
|
$
|
96,285
|
|
|
$
|
92,278
|
|
|
$
|
900
|
|
|
$
|
782
|
|
|
$
|
2,513
|
|
|
$
|
2,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 30
|
Direct/Indirect State Concentrations
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Outstandings
|
|
Accruing Past Due
90 Days or More |
|
Net Charge-offs
|
||||||||||||||||||
|
|
December 31
|
|
|||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||
California
|
$
|
11,165
|
|
|
$
|
11,300
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
21
|
|
|
$
|
13
|
|
|
Florida
|
10,946
|
|
|
9,418
|
|
|
5
|
|
|
3
|
|
|
42
|
|
|
29
|
|
|||||||
Texas
|
10,623
|
|
|
9,406
|
|
|
5
|
|
|
5
|
|
|
38
|
|
|
21
|
|
|||||||
New York
|
6,058
|
|
|
5,253
|
|
|
2
|
|
|
1
|
|
|
6
|
|
|
3
|
|
|||||||
Georgia
|
3,502
|
|
|
3,255
|
|
|
4
|
|
|
4
|
|
|
15
|
|
|
9
|
|
|||||||
Other U.S./Non-U.S.
|
51,536
|
|
|
55,457
|
|
|
21
|
|
|
18
|
|
|
89
|
|
|
59
|
|
|||||||
Total direct/indirect loan portfolio
|
$
|
93,830
|
|
|
$
|
94,089
|
|
|
$
|
40
|
|
|
$
|
34
|
|
|
$
|
211
|
|
|
$
|
134
|
|
61
Bank of America 2017
|
|
|
(1)
|
Balances do not include nonperforming LHFS of
$2 million
and
$69 million
and nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of
$26 million
and
$27 million
at
December 31, 2017 and 2016
as well as loans accruing past due 90 days or more as presented in
Table 21
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)
|
At
December 31, 2017
, 31 percent of nonperforming loans were 180 days or more past due.
|
(4)
|
Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally FHA-insured, of
$801 million
and
$1.2 billion
at
December 31, 2017 and 2016
.
|
(5)
|
Outstanding consumer loans and leases exclude loans accounted for under the fair value option.
|
|
|
Bank of America 2017
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 32
|
Consumer Real Estate Troubled Debt Restructurings
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(Dollars in millions)
|
Nonperforming
|
|
Performing
|
|
Total
|
|
Nonperforming
|
|
Performing
|
|
Total
|
|||||||||||||
Residential mortgage
(1, 2)
|
$
|
1,535
|
|
|
$
|
8,163
|
|
|
$
|
9,698
|
|
|
$
|
1,992
|
|
|
$
|
10,639
|
|
|
$
|
12,631
|
|
|
Home equity
(3)
|
1,457
|
|
|
1,399
|
|
|
2,856
|
|
|
1,566
|
|
|
1,211
|
|
|
2,777
|
|
|||||||
Total consumer real estate troubled debt restructurings
|
$
|
2,992
|
|
|
$
|
9,562
|
|
|
$
|
12,554
|
|
|
$
|
3,558
|
|
|
$
|
11,850
|
|
|
$
|
15,408
|
|
(1)
|
At
December 31, 2017 and 2016
, residential mortgage TDRs deemed collateral dependent totaled
$2.8 billion
and
$3.5 billion
, and included
$1.2 billion
and
$1.6 billion
of loans classified as nonperforming and
$1.6 billion
and
$1.9 billion
of loans classified as performing.
|
(2)
|
Residential mortgage performing TDRs included
$3.7 billion
and
$5.3 billion
of loans that were fully-insured at
December 31, 2017 and 2016
.
|
(3)
|
Home equity TDRs deemed collateral dependent totaled
$1.6 billion
for both periods and included
$1.2 billion
and
$1.3 billion
of loans classified as nonperforming, and
$388 million
and
$301 million
of loans classified as performing at
December 31, 2017 and 2016
.
|
63
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 33
|
Commercial Credit Exposure by Type
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Commercial Utilized
(1)
|
|
Commercial Unfunded
(2, 3, 4)
|
|
Total Commercial Committed
|
||||||||||||||||||
|
|
December 31
|
||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||
Loans and leases
(5)
|
$
|
487,748
|
|
|
$
|
464,260
|
|
|
$
|
364,743
|
|
|
$
|
356,911
|
|
|
$
|
852,491
|
|
|
$
|
821,171
|
|
|
Derivative assets
(6)
|
37,762
|
|
|
42,512
|
|
|
—
|
|
|
—
|
|
|
37,762
|
|
|
42,512
|
|
|||||||
Standby letters of credit and financial guarantees
|
34,517
|
|
|
33,135
|
|
|
863
|
|
|
660
|
|
|
35,380
|
|
|
33,795
|
|
|||||||
Debt securities and other investments
|
28,161
|
|
|
26,244
|
|
|
4,864
|
|
|
5,474
|
|
|
33,025
|
|
|
31,718
|
|
|||||||
Loans held-for-sale
|
10,257
|
|
|
6,510
|
|
|
9,742
|
|
|
13,019
|
|
|
19,999
|
|
|
19,529
|
|
|||||||
Commercial letters of credit
|
1,467
|
|
|
1,464
|
|
|
155
|
|
|
112
|
|
|
1,622
|
|
|
1,576
|
|
|||||||
Other
|
888
|
|
|
767
|
|
|
—
|
|
|
13
|
|
|
888
|
|
|
780
|
|
|||||||
Total
|
|
$
|
600,800
|
|
|
$
|
574,892
|
|
|
$
|
380,367
|
|
|
$
|
376,189
|
|
|
$
|
981,167
|
|
|
$
|
951,081
|
|
(1)
|
Commercial utilized exposure includes loans of
$4.8 billion
and
$6.0 billion
and issued letters of credit with a notional amount of
$232 million
and
$284 million
accounted for under the fair value option at
December 31, 2017
and
2016
.
|
(2)
|
Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional amount of
$4.6 billion
and
$6.7 billion
at
December 31, 2017
and
2016
.
|
(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. The distributed amounts were
$11.0 billion
and
$12.1 billion
at
December 31, 2017
and
2016
.
|
(5)
|
Includes credit risk exposure associated with assets under operating lease arrangements of $6.3 billion and $5.7 billion at
December 31, 2017
and
2016
.
|
(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
$34.6 billion
and
$43.3 billion
at
December 31, 2017
and
2016
. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of
$26.2 billion
and
$25.3 billion
at
December 31, 2017
and
2016
, which consists primarily of other marketable securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 34
|
Commercial Credit Quality
|
|||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
|
Outstandings
|
|
Nonperforming
|
|
Accruing Past Due
90 Days or More
|
||||||||||||||||||
|
|
December 31
|
||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. commercial
|
$
|
284,836
|
|
|
$
|
270,372
|
|
|
$
|
814
|
|
|
$
|
1,256
|
|
|
$
|
144
|
|
|
$
|
106
|
|
|
Non-U.S. commercial
|
97,792
|
|
|
89,397
|
|
|
299
|
|
|
279
|
|
|
3
|
|
|
5
|
|
|||||||
Total commercial and industrial
|
382,628
|
|
|
359,769
|
|
|
1,113
|
|
|
1,535
|
|
|
147
|
|
|
111
|
|
|||||||
Commercial real estate
(1)
|
58,298
|
|
|
57,355
|
|
|
112
|
|
|
72
|
|
|
4
|
|
|
7
|
|
|||||||
Commercial lease financing
|
22,116
|
|
|
22,375
|
|
|
24
|
|
|
36
|
|
|
19
|
|
|
19
|
|
|||||||
|
463,042
|
|
|
439,499
|
|
|
1,249
|
|
|
1,643
|
|
|
170
|
|
|
137
|
|
|||||||
U.S. small business commercial
(2)
|
13,649
|
|
|
12,993
|
|
|
55
|
|
|
60
|
|
|
75
|
|
|
71
|
|
|||||||
Commercial loans excluding loans accounted for under the fair value option
|
476,691
|
|
|
452,492
|
|
|
1,304
|
|
|
1,703
|
|
|
245
|
|
|
208
|
|
|||||||
Loans accounted for under the fair value option
(3)
|
4,782
|
|
|
6,034
|
|
|
43
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|||||||
Total commercial loans and leases
|
$
|
481,473
|
|
|
$
|
458,526
|
|
|
$
|
1,347
|
|
|
$
|
1,787
|
|
|
$
|
245
|
|
|
$
|
208
|
|
(1)
|
Includes U.S. commercial real estate of
$54.8 billion
and
$54.3 billion
and non-U.S. commercial real estate of
$3.5 billion
and
$3.1 billion
at
December 31, 2017
and
2016
.
|
(2)
|
Includes card-related products.
|
(3)
|
Commercial loans accounted for under the fair value option include U.S. commercial of
$2.6 billion
and
$2.9 billion
and non-U.S. commercial of
$2.2 billion
and
$3.1 billion
at
December 31, 2017
and
2016
. For more information on the fair value option, see
Note 21 – Fair Value Option
to the Consolidated Financial Statements
.
|
|
|
Bank of America 2017
64
|
|
|
|
|
|
|
|
|
|
||||||
Table 35
|
Commercial Net Charge-offs and Related Ratios
|
|||||||||||||
|
|
|
|
|
|
|
||||||||
|
|
Net Charge-offs
|
|
Net Charge-off Ratios
(1)
|
||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|||||||
U.S. commercial
|
$
|
232
|
|
|
$
|
184
|
|
|
0.08
|
%
|
|
0.07
|
%
|
|
Non-U.S. commercial
|
440
|
|
|
120
|
|
|
0.48
|
|
|
0.13
|
|
|||
Total commercial and industrial
|
672
|
|
|
304
|
|
|
0.18
|
|
|
0.09
|
|
|||
Commercial real estate
|
9
|
|
|
(31
|
)
|
|
0.02
|
|
|
(0.05
|
)
|
|||
Commercial lease financing
|
5
|
|
|
21
|
|
|
0.02
|
|
|
0.10
|
|
|||
|
|
686
|
|
|
294
|
|
|
0.15
|
|
|
0.07
|
|
||
U.S. small business commercial
|
215
|
|
|
208
|
|
|
1.60
|
|
|
1.60
|
|
|||
Total commercial
|
$
|
901
|
|
|
$
|
502
|
|
|
0.20
|
|
|
0.11
|
|
(1)
|
Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
|
|
|
|
|
|
|
|
|
|
||||||
Table 36
|
Commercial Utilized Reservable Criticized Exposure
|
|||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Amount
(1)
|
|
Percent
(2)
|
|
Amount
(1)
|
|
Percent
(2)
|
||||||
|
|
December 31
|
||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||||||||
Commercial and industrial:
|
||||||||||||||
U.S. commercial
|
$
|
9,891
|
|
|
3.15
|
%
|
|
$
|
10,311
|
|
|
3.46
|
%
|
|
Non-U.S. commercial
|
1,766
|
|
|
1.70
|
|
|
3,974
|
|
|
4.17
|
|
|||
Total commercial and industrial
|
11,657
|
|
|
2.79
|
|
|
14,285
|
|
|
3.63
|
|
|||
Commercial real estate
|
566
|
|
|
0.95
|
|
|
399
|
|
|
0.68
|
|
|||
Commercial lease financing
|
581
|
|
|
2.63
|
|
|
810
|
|
|
3.62
|
|
|||
|
|
12,804
|
|
|
2.57
|
|
|
15,494
|
|
|
3.27
|
|
||
U.S. small business commercial
|
759
|
|
|
5.56
|
|
|
826
|
|
|
6.36
|
|
|||
Total commercial utilized reservable criticized exposure
|
$
|
13,563
|
|
|
2.65
|
|
|
$
|
16,320
|
|
|
3.35
|
|
(1)
|
Total commercial utilized reservable criticized exposure includes loans and leases of
$12.5 billion
and
$14.9 billion
and commercial letters of credit of
$1.1 billion
and
$1.4 billion
at
December 31, 2017
and
2016
.
|
(2)
|
Percentages are calculated as commercial utilized reservable criticized exposure divided by total commercial utilized reservable exposure for each exposure category.
|
65
Bank of America 2017
|
|
|
|
|
|
|
|
||||
Table 37
|
Outstanding Commercial Real Estate Loans
|
|||||||
|
|
|
|
|
||||
|
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||
By Geographic Region
|
|
|
|
|
|
|||
California
|
$
|
13,607
|
|
|
$
|
13,450
|
|
|
Northeast
|
10,072
|
|
|
10,329
|
|
|||
Southwest
|
6,970
|
|
|
7,567
|
|
|||
Southeast
|
5,487
|
|
|
5,630
|
|
|||
Midwest
|
3,769
|
|
|
4,380
|
|
|||
Illinois
|
3,263
|
|
|
2,408
|
|
|||
Florida
|
3,170
|
|
|
3,213
|
|
|||
Midsouth
|
2,962
|
|
|
2,346
|
|
|||
Northwest
|
2,657
|
|
|
2,430
|
|
|||
Non-U.S.
|
3,538
|
|
|
3,103
|
|
|||
Other
(1)
|
2,803
|
|
|
2,499
|
|
|||
Total outstanding commercial real estate loans
|
$
|
58,298
|
|
|
$
|
57,355
|
|
|
By Property Type
|
|
|
|
|
|
|||
Non-residential
|
|
|
|
|||||
Office
|
$
|
16,718
|
|
|
$
|
16,643
|
|
|
Shopping centers / Retail
|
8,825
|
|
|
8,794
|
|
|||
Multi-family rental
|
8,280
|
|
|
8,817
|
|
|||
Hotels / Motels
|
6,344
|
|
|
5,550
|
|
|||
Industrial / Warehouse
|
6,070
|
|
|
5,357
|
|
|||
Multi-use
|
2,771
|
|
|
2,822
|
|
|||
Unsecured
|
2,187
|
|
|
1,730
|
|
|||
Land and land development
|
160
|
|
|
357
|
|
|||
Other
|
5,485
|
|
|
5,595
|
|
|||
Total non-residential
|
56,840
|
|
|
55,665
|
|
|||
Residential
|
1,458
|
|
|
1,690
|
|
|||
Total outstanding commercial real estate loans
|
$
|
58,298
|
|
|
$
|
57,355
|
|
(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.
|
|
|
Bank of America 2017
66
|
|
|
|
|
|
||||
Table 38
|
Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
(1, 2)
|
|||||||
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||
Nonperforming loans and leases, January 1
|
$
|
1,703
|
|
|
$
|
1,212
|
|
|
Additions
|
1,616
|
|
|
2,347
|
|
|||
Reductions:
|
|
|
|
|
||||
Paydowns
|
(930
|
)
|
|
(824
|
)
|
|||
Sales
|
(136
|
)
|
|
(318
|
)
|
|||
Returns to performing status
(3)
|
(280
|
)
|
|
(267
|
)
|
|||
Charge-offs
|
(455
|
)
|
|
(434
|
)
|
|||
Transfers to foreclosed properties
|
(40
|
)
|
|
(4
|
)
|
|||
Transfers to loans held-for-sale
|
(174
|
)
|
|
(9
|
)
|
|||
Total net additions/(reductions) to nonperforming loans and leases
|
(399
|
)
|
|
491
|
|
|||
Total nonperforming loans and leases, December 31
|
1,304
|
|
|
1,703
|
|
|||
Total foreclosed properties, December 31
|
52
|
|
|
14
|
|
|||
Nonperforming commercial loans, leases and foreclosed properties, December 31
|
$
|
1,356
|
|
|
$
|
1,717
|
|
|
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases
(4)
|
0.27
|
%
|
|
0.38
|
%
|
|||
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties
(4)
|
0.28
|
|
|
0.38
|
|
(1)
|
Balances do not include nonperforming LHFS of $339 million and $195 million at
December 31, 2017
and
2016
.
|
(2)
|
Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.
|
(3)
|
Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. TDRs are generally classified as performing after a sustained period of demonstrated payment performance.
|
(4)
|
Outstanding commercial loans exclude loans accounted for under the fair value option.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 39
|
Commercial Troubled Debt Restructurings
|
|||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(Dollars in millions)
|
Nonperforming
|
|
Performing
|
|
Total
|
|
Nonperforming
|
|
Performing
|
|
Total
|
|||||||||||||
Commercial and industrial:
|
||||||||||||||||||||||||
U.S. commercial
|
$
|
370
|
|
|
$
|
866
|
|
|
$
|
1,236
|
|
|
$
|
720
|
|
|
$
|
1,140
|
|
|
$
|
1,860
|
|
|
Non-U.S. commercial
|
11
|
|
|
219
|
|
|
230
|
|
|
25
|
|
|
283
|
|
|
308
|
|
|||||||
Total commercial and industrial
|
381
|
|
|
1,085
|
|
|
1,466
|
|
|
745
|
|
|
1,423
|
|
|
2,168
|
|
|||||||
Commercial real estate
|
38
|
|
|
9
|
|
|
47
|
|
|
45
|
|
|
95
|
|
|
140
|
|
|||||||
Commercial lease financing
|
5
|
|
|
13
|
|
|
18
|
|
|
2
|
|
|
2
|
|
|
4
|
|
|||||||
|
424
|
|
|
1,107
|
|
|
1,531
|
|
|
792
|
|
|
1,520
|
|
|
2,312
|
|
|||||||
U.S. small business commercial
|
4
|
|
|
15
|
|
|
19
|
|
|
2
|
|
|
13
|
|
|
15
|
|
|||||||
Total commercial troubled debt restructurings
|
$
|
428
|
|
|
$
|
1,122
|
|
|
$
|
1,550
|
|
|
$
|
794
|
|
|
$
|
1,533
|
|
|
$
|
2,327
|
|
67
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Table 40
|
Commercial Credit Exposure by Industry
(1)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Commercial
Utilized
|
|
Total Commercial
Committed
(2)
|
||||||||||||
|
|
December 31
|
||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Asset managers and funds
|
$
|
59,190
|
|
|
$
|
57,659
|
|
|
$
|
91,092
|
|
|
$
|
85,561
|
|
|
Real estate
(3)
|
61,940
|
|
|
61,203
|
|
|
83,773
|
|
|
83,658
|
|
|||||
Capital goods
|
36,705
|
|
|
34,278
|
|
|
70,417
|
|
|
64,202
|
|
|||||
Government and public education
|
48,684
|
|
|
45,694
|
|
|
58,067
|
|
|
54,626
|
|
|||||
Healthcare equipment and services
|
37,780
|
|
|
37,656
|
|
|
57,256
|
|
|
64,663
|
|
|||||
Finance companies
|
34,050
|
|
|
35,452
|
|
|
53,107
|
|
|
52,953
|
|
|||||
Retailing
|
26,117
|
|
|
25,577
|
|
|
48,796
|
|
|
49,082
|
|
|||||
Materials
|
24,001
|
|
|
22,578
|
|
|
47,386
|
|
|
44,357
|
|
|||||
Consumer services
|
27,191
|
|
|
27,413
|
|
|
43,605
|
|
|
42,523
|
|
|||||
Food, beverage and tobacco
|
23,252
|
|
|
19,669
|
|
|
42,815
|
|
|
37,145
|
|
|||||
Energy
|
16,345
|
|
|
19,686
|
|
|
36,765
|
|
|
39,231
|
|
|||||
Commercial services and supplies
|
22,100
|
|
|
21,241
|
|
|
35,496
|
|
|
35,360
|
|
|||||
Media
|
19,155
|
|
|
13,419
|
|
|
33,955
|
|
|
27,116
|
|
|||||
Global commercial banks
|
29,491
|
|
|
27,267
|
|
|
31,764
|
|
|
30,712
|
|
|||||
Transportation
|
21,704
|
|
|
19,805
|
|
|
29,946
|
|
|
27,483
|
|
|||||
Utilities
|
11,342
|
|
|
11,349
|
|
|
27,935
|
|
|
27,140
|
|
|||||
Individuals and trusts
|
18,549
|
|
|
16,364
|
|
|
25,097
|
|
|
21,764
|
|
|||||
Technology hardware and equipment
|
10,728
|
|
|
9,625
|
|
|
22,071
|
|
|
25,318
|
|
|||||
Vehicle dealers
|
16,896
|
|
|
16,053
|
|
|
20,361
|
|
|
19,425
|
|
|||||
Pharmaceuticals and biotechnology
|
5,653
|
|
|
5,539
|
|
|
18,623
|
|
|
18,910
|
|
|||||
Software and services
|
8,562
|
|
|
7,991
|
|
|
18,202
|
|
|
19,790
|
|
|||||
Consumer durables and apparel
|
8,859
|
|
|
8,112
|
|
|
17,296
|
|
|
15,794
|
|
|||||
Food and staples retailing
|
4,955
|
|
|
4,795
|
|
|
15,589
|
|
|
8,869
|
|
|||||
Automobiles and components
|
5,988
|
|
|
5,459
|
|
|
13,318
|
|
|
12,969
|
|
|||||
Telecommunication services
|
6,389
|
|
|
6,317
|
|
|
13,108
|
|
|
16,925
|
|
|||||
Insurance
|
6,411
|
|
|
7,406
|
|
|
12,990
|
|
|
13,936
|
|
|||||
Religious and social organizations
|
4,454
|
|
|
4,423
|
|
|
6,318
|
|
|
6,252
|
|
|||||
Financial markets infrastructure (clearinghouses)
|
688
|
|
|
656
|
|
|
2,403
|
|
|
3,107
|
|
|||||
Other
|
3,621
|
|
|
2,206
|
|
|
3,616
|
|
|
2,210
|
|
|||||
Total commercial credit exposure by industry
|
$
|
600,800
|
|
|
$
|
574,892
|
|
|
$
|
981,167
|
|
|
$
|
951,081
|
|
|
Net credit default protection purchased on total commitments
(4)
|
|
|
|
|
|
|
$
|
(2,129
|
)
|
|
$
|
(3,477
|
)
|
(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. The distributed amounts were $
11.0 billion
and
$12.1 billion
at
December 31, 2017
and
2016
.
|
(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 more information, see
Commercial Portfolio Credit Risk Management – Risk Mitigation
.
|
|
|
Bank of America 2017
68
|
|
|
|
|
|
||
Table 41
|
Net Credit Default Protection by Maturity
|
|||||
|
|
|
|
|
||
|
|
December 31
|
||||
|
|
2017
|
|
2016
|
||
Less than or equal to one year
|
42
|
%
|
|
56
|
%
|
|
Greater than one year and less than or equal to five years
|
58
|
|
|
41
|
|
|
Greater than five years
|
—
|
|
|
3
|
|
|
Total net credit default protection
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Table 42
|
Net Credit Default Protection by Credit Exposure Debt Rating
|
|||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Net
Notional (1) |
|
Percent of
Total |
|
Net
Notional (1) |
|
Percent of
Total |
||||||
|
|
December 31
|
||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||||||||
Ratings
(2, 3)
|
|
|
|
|
|
|
|
|
|
|
|
|||
A
|
$
|
(280
|
)
|
|
13.2
|
%
|
|
$
|
(135
|
)
|
|
3.9
|
%
|
|
BBB
|
(459
|
)
|
|
21.6
|
|
|
(1,884
|
)
|
|
54.2
|
|
|||
BB
|
(893
|
)
|
|
41.9
|
|
|
(871
|
)
|
|
25.1
|
|
|||
B
|
(403
|
)
|
|
18.9
|
|
|
(477
|
)
|
|
13.7
|
|
|||
CCC and below
|
(84
|
)
|
|
3.9
|
|
|
(81
|
)
|
|
2.3
|
|
|||
NR
(4)
|
(10
|
)
|
|
0.5
|
|
|
(29
|
)
|
|
0.8
|
|
|||
Total net credit default protection
|
$
|
(2,129
|
)
|
|
100.0
|
%
|
|
$
|
(3,477
|
)
|
|
100.0
|
%
|
(1)
|
Represents net credit default protection purchased.
|
(2)
|
Ratings are refreshed on a quarterly basis.
|
(3)
|
Ratings of BBB- or higher are considered to meet the definition of investment grade.
|
(4)
|
NR is comprised of index positions held and any names that have not been rated.
|
|
|
|
|
|
|
|
|
|
||||||||
Table 43
|
Credit Derivatives
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Contract/
Notional |
|
Credit Risk
|
|
Contract/
Notional |
|
Credit Risk
|
||||||||
|
|
December 31
|
||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||||||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit default swaps
|
$
|
470,907
|
|
|
$
|
2,434
|
|
|
$
|
603,979
|
|
|
$
|
2,732
|
|
|
Total return swaps/options
|
54,135
|
|
|
277
|
|
|
21,165
|
|
|
433
|
|
|||||
Total purchased credit derivatives
|
$
|
525,042
|
|
|
$
|
2,711
|
|
|
$
|
625,144
|
|
|
$
|
3,165
|
|
|
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit default swaps
|
$
|
448,201
|
|
|
n/a
|
|
|
$
|
614,355
|
|
|
n/a
|
|
|||
Total return swaps/options
|
55,223
|
|
|
n/a
|
|
|
25,354
|
|
|
n/a
|
|
|||||
Total written credit derivatives
|
$
|
503,424
|
|
|
n/a
|
|
|
$
|
639,709
|
|
|
n/a
|
|
69
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Table 44
|
Credit Valuation Gains and Losses
|
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||||||||||||||
Gains (Losses)
|
Gross
|
Hedge
|
Net
|
|
Gross
|
Hedge
|
Net
|
|||||||||||||
Credit valuation
|
$
|
330
|
|
$
|
(232
|
)
|
$
|
98
|
|
|
$
|
374
|
|
$
|
(160
|
)
|
$
|
214
|
|
|
|
Bank of America 2017
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Table 45
|
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 December 31
2017 |
|
Hedges and Credit Default Protection
|
|
Net Country Exposure at December 31
2017 |
|
Increase (Decrease) from December 31
2016 |
|||||||||||||||||
United Kingdom
|
$
|
20,089
|
|
|
$
|
14,906
|
|
|
$
|
5,278
|
|
|
$
|
1,962
|
|
|
$
|
42,235
|
|
|
$
|
(4,640
|
)
|
|
$
|
37,595
|
|
|
$
|
(10,138
|
)
|
|
Germany
|
12,572
|
|
|
9,856
|
|
|
1,061
|
|
|
1,102
|
|
|
24,591
|
|
|
(3,088
|
)
|
|
21,503
|
|
|
(875
|
)
|
|||||||||
Canada
|
7,037
|
|
|
7,645
|
|
|
2,016
|
|
|
2,579
|
|
|
19,277
|
|
|
(554
|
)
|
|
18,723
|
|
|
(51
|
)
|
|||||||||
China
|
13,634
|
|
|
728
|
|
|
746
|
|
|
1,058
|
|
|
16,166
|
|
|
(241
|
)
|
|
15,925
|
|
|
5,040
|
|
|||||||||
Brazil
|
7,688
|
|
|
501
|
|
|
342
|
|
|
2,726
|
|
|
11,257
|
|
|
(541
|
)
|
|
10,716
|
|
|
(2,950
|
)
|
|||||||||
Australia
|
5,596
|
|
|
2,840
|
|
|
575
|
|
|
2,022
|
|
|
11,033
|
|
|
(444
|
)
|
|
10,589
|
|
|
1,666
|
|
|||||||||
France
|
4,976
|
|
|
5,591
|
|
|
2,191
|
|
|
2,811
|
|
|
15,569
|
|
|
(5,026
|
)
|
|
10,543
|
|
|
(151
|
)
|
|||||||||
India
|
7,229
|
|
|
316
|
|
|
375
|
|
|
3,328
|
|
|
11,248
|
|
|
(751
|
)
|
|
10,497
|
|
|
1,269
|
|
|||||||||
Japan
|
7,399
|
|
|
631
|
|
|
923
|
|
|
1,669
|
|
|
10,622
|
|
|
(1,532
|
)
|
|
9,090
|
|
|
(5,921
|
)
|
|||||||||
Hong Kong
|
6,925
|
|
|
187
|
|
|
585
|
|
|
1,056
|
|
|
8,753
|
|
|
(75
|
)
|
|
8,678
|
|
|
1,199
|
|
|||||||||
Netherlands
|
5,357
|
|
|
3,212
|
|
|
650
|
|
|
930
|
|
|
10,149
|
|
|
(1,682
|
)
|
|
8,467
|
|
|
1,069
|
|
|||||||||
South Korea
|
4,934
|
|
|
544
|
|
|
635
|
|
|
2,208
|
|
|
8,321
|
|
|
(420
|
)
|
|
7,901
|
|
|
1,795
|
|
|||||||||
Singapore
|
3,571
|
|
|
312
|
|
|
504
|
|
|
1,953
|
|
|
6,340
|
|
|
(77
|
)
|
|
6,263
|
|
|
845
|
|
|||||||||
Switzerland
|
3,792
|
|
|
2,810
|
|
|
274
|
|
|
184
|
|
|
7,060
|
|
|
(1,263
|
)
|
|
5,797
|
|
|
(3,849
|
)
|
|||||||||
Mexico
|
2,883
|
|
|
2,446
|
|
|
226
|
|
|
385
|
|
|
5,940
|
|
|
(453
|
)
|
|
5,487
|
|
|
1,003
|
|
|||||||||
Italy
|
2,791
|
|
|
1,490
|
|
|
512
|
|
|
600
|
|
|
5,393
|
|
|
(1,147
|
)
|
|
4,246
|
|
|
159
|
|
|||||||||
Belgium
|
2,440
|
|
|
1,184
|
|
|
82
|
|
|
511
|
|
|
4,217
|
|
|
(252
|
)
|
|
3,965
|
|
|
2,039
|
|
|||||||||
United Arab Emirates
|
2,843
|
|
|
351
|
|
|
247
|
|
|
43
|
|
|
3,484
|
|
|
(97
|
)
|
|
3,387
|
|
|
644
|
|
|||||||||
Spain
|
2,041
|
|
|
820
|
|
|
260
|
|
|
1,232
|
|
|
4,353
|
|
|
(1,245
|
)
|
|
3,108
|
|
|
562
|
|
|||||||||
Turkey
|
2,761
|
|
|
83
|
|
|
66
|
|
|
82
|
|
|
2,992
|
|
|
(3
|
)
|
|
2,989
|
|
|
299
|
|
|||||||||
Total top 20 non-U.S. countries exposure
|
$
|
126,558
|
|
|
$
|
56,453
|
|
|
$
|
17,548
|
|
|
$
|
28,441
|
|
|
$
|
229,000
|
|
|
$
|
(23,531
|
)
|
|
$
|
205,469
|
|
|
$
|
(6,346
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Table 46
|
Total Cross-border Exposure Exceeding One Percent of Total Assets
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(Dollars in millions)
|
December 31
|
|
Public Sector
|
|
Banks
|
|
Private Sector
|
|
Cross-border
Exposure |
|
Exposure as a
Percent of Total Assets |
||||||||||
United Kingdom
|
2017
|
|
$
|
923
|
|
|
$
|
2,984
|
|
|
$
|
47,205
|
|
|
$
|
51,112
|
|
|
2.24
|
%
|
|
|
2016
|
|
2,975
|
|
|
4,557
|
|
|
42,105
|
|
|
49,637
|
|
|
2.27
|
|
|||||
|
2015
|
|
3,264
|
|
|
5,104
|
|
|
38,576
|
|
|
46,944
|
|
|
2.19
|
|
|||||
France
|
2017
|
|
2,964
|
|
|
1,521
|
|
|
27,903
|
|
|
32,388
|
|
|
1.42
|
|
|||||
|
2016
|
|
4,956
|
|
|
1,205
|
|
|
23,193
|
|
|
29,354
|
|
|
1.34
|
|
|||||
|
|
2015
|
|
3,343
|
|
|
1,766
|
|
|
17,099
|
|
|
22,208
|
|
|
1.04
|
|
71
Bank of America 2017
|
|
|
|
|
Bank of America 2017
72
|
73
Bank of America 2017
|
|
|
|
|
|
|
|
||||
Table 47
|
Allowance for Credit Losses
|
|
|
|
||||
|
|
|
|
|
||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||
Allowance for loan and lease losses, January 1
|
$
|
11,237
|
|
|
$
|
12,234
|
|
|
Loans and leases charged off
|
|
|
|
|||||
Residential mortgage
|
(188
|
)
|
|
(403
|
)
|
|||
Home equity
|
(582
|
)
|
|
(752
|
)
|
|||
U.S. credit card
|
(2,968
|
)
|
|
(2,691
|
)
|
|||
Non-U.S. credit card
(1)
|
(103
|
)
|
|
(238
|
)
|
|||
Direct/Indirect consumer
|
(487
|
)
|
|
(392
|
)
|
|||
Other consumer
|
(216
|
)
|
|
(232
|
)
|
|||
Total consumer charge-offs
|
(4,544
|
)
|
|
(4,708
|
)
|
|||
U.S. commercial
(2)
|
(589
|
)
|
|
(567
|
)
|
|||
Non-U.S. commercial
|
(446
|
)
|
|
(133
|
)
|
|||
Commercial real estate
|
(24
|
)
|
|
(10
|
)
|
|||
Commercial lease financing
|
(16
|
)
|
|
(30
|
)
|
|||
Total commercial charge-offs
|
(1,075
|
)
|
|
(740
|
)
|
|||
Total loans and leases charged off
|
(5,619
|
)
|
|
(5,448
|
)
|
|||
Recoveries of loans and leases previously charged off
|
|
|
|
|||||
Residential mortgage
|
288
|
|
|
272
|
|
|||
Home equity
|
369
|
|
|
347
|
|
|||
U.S. credit card
|
455
|
|
|
422
|
|
|||
Non-U.S. credit card
(1)
|
28
|
|
|
63
|
|
|||
Direct/Indirect consumer
|
276
|
|
|
258
|
|
|||
Other consumer
|
50
|
|
|
27
|
|
|||
Total consumer recoveries
|
1,466
|
|
|
1,389
|
|
|||
U.S. commercial
(3)
|
142
|
|
|
175
|
|
|||
Non-U.S. commercial
|
6
|
|
|
13
|
|
|||
Commercial real estate
|
15
|
|
|
41
|
|
|||
Commercial lease financing
|
11
|
|
|
9
|
|
|||
Total commercial recoveries
|
174
|
|
|
238
|
|
|||
Total recoveries of loans and leases previously charged off
|
1,640
|
|
|
1,627
|
|
|||
Net charge-offs
|
(3,979
|
)
|
|
(3,821
|
)
|
|||
Write-offs of PCI loans
|
(207
|
)
|
|
(340
|
)
|
|||
Provision for loan and lease losses
|
3,381
|
|
|
3,581
|
|
|||
Other
(4)
|
(39
|
)
|
|
(174
|
)
|
|||
Total allowance for loan and lease losses, December 31
|
10,393
|
|
|
11,480
|
|
|||
Less: Allowance included in assets of business held for sale
(5)
|
—
|
|
|
(243
|
)
|
|||
Allowance for loan and lease losses, December 31
|
10,393
|
|
|
11,237
|
|
|||
Reserve for unfunded lending commitments, January 1
|
762
|
|
|
646
|
|
|||
Provision for unfunded lending commitments
|
15
|
|
|
16
|
|
|||
Other
(4)
|
—
|
|
|
100
|
|
|||
Reserve for unfunded lending commitments, December 31
|
777
|
|
|
762
|
|
|||
Allowance for credit losses, December 31
|
$
|
11,170
|
|
|
$
|
11,999
|
|
(1)
|
Represents net charge-offs related to the non-U.S. credit card loan portfolio, which was included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
(2)
|
Includes U.S. small business commercial charge-offs of
$258 million
and
$253 million
in
2017
and
2016
.
|
(3)
|
Includes U.S. small business commercial recoveries of
$43 million
and
$45 million
in
2017
and
2016
.
|
(4)
|
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held-for-sale and certain other reclassifications.
|
(5)
|
Represents allowance related to the non-U.S. credit card loan portfolio, which was sold in 2017.
|
|
|
Bank of America 2017
74
|
|
|
|
|
|
||||
Table 47
|
Allowance for Credit Losses (continued)
|
|
|
|
||||
|
|
|
|
|
||||
(Dollars in millions)
|
2017
|
|
2016
|
|||||
Loan and allowance ratios
(6)
:
|
|
|
|
|||||
Loans and leases outstanding at December 31
(7)
|
$
|
931,039
|
|
|
$
|
908,812
|
|
|
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31
(7)
|
1.12
|
%
|
|
1.26
|
%
|
|||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31
(8)
|
1.18
|
|
|
1.36
|
|
|||
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31
(9)
|
1.05
|
|
|
1.16
|
|
|||
Average loans and leases outstanding
(7)
|
$
|
911,988
|
|
|
$
|
892,255
|
|
|
Net charge-offs as a percentage of average loans and leases outstanding
(7, 10)
|
0.44
|
%
|
|
0.43
|
%
|
|||
Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding
(7)
|
0.46
|
|
|
0.47
|
|
|||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31
(7, 11)
|
161
|
|
|
149
|
|
|||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs
(10)
|
2.61
|
|
|
3.00
|
|
|||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs
|
2.48
|
|
|
2.76
|
|
|||
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at December 31
(12)
|
$
|
3,971
|
|
|
$
|
3,951
|
|
|
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 December 31
(7, 12)
|
99
|
%
|
|
98
|
%
|
|||
Loan and allowance ratios excluding PCI loans and the related valuation allowance
(6, 13)
:
|
|
|
|
|||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31
(7)
|
1.10
|
%
|
|
1.24
|
%
|
|||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31
(8)
|
1.15
|
|
|
1.31
|
|
|||
Net charge-offs as a percentage of average loans and leases outstanding
(7)
|
0.44
|
|
|
0.44
|
|
|||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31
(7, 11)
|
156
|
|
|
144
|
|
|||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs
|
2.54
|
|
|
2.89
|
|
(6)
|
Loan and allowance ratios for 2016 include $
243 million
of non-U.S. credit card allowance for loan and lease losses and $
9.2 billion
of ending non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016. See footnote 1 for more information.
|
(7)
|
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of
$5.7 billion
and
$7.1 billion
at
December 31, 2017 and 2016
. Average loans accounted for under the fair value option were
$6.7 billion
and
$8.2 billion
in
2017
and
2016
.
|
(8)
|
Excludes consumer loans accounted for under the fair value option of
$928 million
and
$1.1 billion
at
December 31, 2017 and 2016
.
|
(9)
|
Excludes commercial loans accounted for under the fair value option of
$4.8 billion
and
$6.0 billion
at
December 31, 2017 and 2016
.
|
(10)
|
Net charge-offs exclude
$207 million
and
$340 million
of write-offs in the PCI loan portfolio in
2017
and
2016
. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
60
.
|
(11)
|
For more information on our definition of nonperforming loans, see page
62
and page
67
.
|
(12)
|
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 portfolio in
All Other.
|
(13)
|
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
.
|
75
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Table 48
|
Allocation of the Allowance for Credit Losses by Product Type
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Amount
|
|
Percent of
Total
|
|
Percent of
Loans and Leases
Outstanding
(1)
|
|
Amount
|
|
Percent of
Total
|
|
Percent of
Loans and Leases
Outstanding
(1)
|
|||||||||
(Dollars in millions)
|
December 31, 2017
|
|
December 31, 2016
|
|||||||||||||||||
Allowance for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Residential mortgage
|
$
|
701
|
|
|
6.74
|
%
|
|
0.34
|
%
|
|
$
|
1,012
|
|
|
8.82
|
%
|
|
0.53
|
%
|
|
Home equity
|
1,019
|
|
|
9.80
|
|
|
1.76
|
|
|
1,738
|
|
|
15.14
|
|
|
2.62
|
|
|||
U.S. credit card
|
3,368
|
|
|
32.41
|
|
|
3.50
|
|
|
2,934
|
|
|
25.56
|
|
|
3.18
|
|
|||
Non-U.S. credit card
|
—
|
|
|
—
|
|
|
—
|
|
|
243
|
|
|
2.12
|
|
|
2.64
|
|
|||
Direct/Indirect consumer
|
262
|
|
|
2.52
|
|
|
0.28
|
|
|
244
|
|
|
2.13
|
|
|
0.26
|
|
|||
Other consumer
|
33
|
|
|
0.32
|
|
|
1.22
|
|
|
51
|
|
|
0.44
|
|
|
2.01
|
|
|||
Total consumer
|
5,383
|
|
|
51.79
|
|
|
1.18
|
|
|
6,222
|
|
|
54.21
|
|
|
1.36
|
|
|||
U.S. commercial
(2)
|
3,113
|
|
|
29.95
|
|
|
1.04
|
|
|
3,326
|
|
|
28.97
|
|
|
1.17
|
|
|||
Non-U.S. commercial
|
803
|
|
|
7.73
|
|
|
0.82
|
|
|
874
|
|
|
7.61
|
|
|
0.98
|
|
|||
Commercial real estate
|
935
|
|
|
9.00
|
|
|
1.60
|
|
|
920
|
|
|
8.01
|
|
|
1.60
|
|
|||
Commercial lease financing
|
159
|
|
|
1.53
|
|
|
0.72
|
|
|
138
|
|
|
1.20
|
|
|
0.62
|
|
|||
Total commercial
|
5,010
|
|
|
48.21
|
|
|
1.05
|
|
|
5,258
|
|
|
45.79
|
|
|
1.16
|
|
|||
Total allowance for loan and lease losses
(3)
|
10,393
|
|
|
100.00
|
%
|
|
1.12
|
|
|
11,480
|
|
|
100.00
|
%
|
|
1.26
|
|
|||
Less: Allowance included in assets of business held for sale
(4)
|
—
|
|
|
|
|
|
|
(243
|
)
|
|
|
|
|
|||||||
Allowance for loan and lease losses
|
10,393
|
|
|
|
|
|
|
11,237
|
|
|
|
|
|
|||||||
Reserve for unfunded lending commitments
|
777
|
|
|
|
|
|
|
762
|
|
|
|
|
|
|
||||||
Allowance for credit losses
|
$
|
11,170
|
|
|
|
|
|
|
$
|
11,999
|
|
|
|
|
|
(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
$567 million
and
$710 million
and home equity loans of
$361 million
and
$341 million
at
December 31, 2017
and
2016
. Commercial loans accounted for under the fair value option included U.S. commercial loans of
$2.6 billion
and
$2.9 billion
and non-U.S. commercial loans of
$2.2 billion
and
$3.1 billion
at
December 31, 2017 and 2016
.
|
(2)
|
Includes allowance for loan and lease losses for U.S. small business commercial loans of
$439 million
and
$416 million
at
December 31, 2017 and 2016
.
|
(3)
|
Includes
$289 million
and
$419 million
of valuation allowance presented with the allowance for loan and lease losses related to PCI loans at
December 31, 2017 and 2016
.
|
(4)
|
Represents allowance for loan and lease losses related to the non-U.S. credit card loan portfolio, which was included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
|
|
Bank of America 2017
76
|
77
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Table 49
|
Market Risk VaR for Trading Activities
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
2017
|
|
2016
|
|||||||||||||||||||||||||||||
(Dollars in millions)
|
Year End
|
|
Average
|
|
High
(1)
|
|
Low
(1)
|
|
Year End
|
|
Average
|
|
High
(1)
|
|
Low
(1)
|
|||||||||||||||||
Foreign exchange
|
$
|
7
|
|
|
$
|
11
|
|
|
$
|
25
|
|
|
$
|
3
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
16
|
|
|
$
|
5
|
|
|
Interest rate
|
22
|
|
|
21
|
|
|
41
|
|
|
11
|
|
|
11
|
|
|
19
|
|
|
30
|
|
|
10
|
|
|||||||||
Credit
|
29
|
|
|
26
|
|
|
33
|
|
|
21
|
|
|
25
|
|
|
30
|
|
|
37
|
|
|
25
|
|
|||||||||
Equity
|
19
|
|
|
18
|
|
|
33
|
|
|
12
|
|
|
19
|
|
|
18
|
|
|
30
|
|
|
11
|
|
|||||||||
Commodity
|
5
|
|
|
5
|
|
|
9
|
|
|
3
|
|
|
4
|
|
|
6
|
|
|
12
|
|
|
3
|
|
|||||||||
Portfolio diversification
|
(49
|
)
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Total covered positions trading portfolio
|
33
|
|
|
34
|
|
|
53
|
|
|
23
|
|
|
28
|
|
|
36
|
|
|
50
|
|
|
24
|
|
|||||||||
Impact from less liquid exposures
|
5
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|||||||||
Total market-based trading portfolio
|
38
|
|
|
40
|
|
|
63
|
|
|
26
|
|
|
34
|
|
|
41
|
|
|
58
|
|
|
28
|
|
|||||||||
Fair value option loans
|
9
|
|
|
10
|
|
|
14
|
|
|
7
|
|
|
14
|
|
|
23
|
|
|
40
|
|
|
12
|
|
|||||||||
Fair value option hedges
|
7
|
|
|
7
|
|
|
11
|
|
|
4
|
|
|
6
|
|
|
11
|
|
|
22
|
|
|
5
|
|
|||||||||
Fair value option portfolio diversification
|
(7
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Total fair value option portfolio
|
9
|
|
|
9
|
|
|
11
|
|
|
6
|
|
|
10
|
|
|
13
|
|
|
20
|
|
|
8
|
|
|||||||||
Portfolio diversification
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Total market-based portfolio
|
$
|
43
|
|
|
$
|
45
|
|
|
69
|
|
|
29
|
|
|
$
|
40
|
|
|
$
|
48
|
|
|
70
|
|
|
32
|
|
(1)
|
The high and low for each portfolio may have occurred on different trading days than the high and low for the components. Therefore the impact from less liquid exposures and the amount of portfolio diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant.
|
|
|
Bank of America 2017
78
|
|
|
|
|
|
|
|
|
|
|
||||||||
Table 50
|
Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
2017
|
|
2016
|
||||||||||||
(Dollars in millions)
|
|
99 percent
|
|
95 percent
|
|
99 percent
|
|
95 percent
|
|||||||||
Foreign exchange
|
|
$
|
11
|
|
|
$
|
6
|
|
|
$
|
9
|
|
|
$
|
5
|
|
|
Interest rate
|
|
21
|
|
|
14
|
|
|
19
|
|
|
12
|
|
|||||
Credit
|
|
26
|
|
|
15
|
|
|
30
|
|
|
18
|
|
|||||
Equity
|
|
18
|
|
|
10
|
|
|
18
|
|
|
11
|
|
|||||
Commodity
|
|
5
|
|
|
3
|
|
|
6
|
|
|
3
|
|
|||||
Portfolio diversification
|
|
(47
|
)
|
|
(30
|
)
|
|
(46
|
)
|
|
(30
|
)
|
|||||
Total covered positions trading portfolio
|
|
34
|
|
|
18
|
|
|
36
|
|
|
19
|
|
|||||
Impact from less liquid exposures
|
|
6
|
|
|
2
|
|
|
5
|
|
|
3
|
|
|||||
Total market-based trading portfolio
|
|
40
|
|
|
20
|
|
|
41
|
|
|
22
|
|
|||||
Fair value option loans
|
|
10
|
|
|
6
|
|
|
23
|
|
|
13
|
|
|||||
Fair value option hedges
|
|
7
|
|
|
5
|
|
|
11
|
|
|
8
|
|
|||||
Fair value option portfolio diversification
|
|
(8
|
)
|
|
(6
|
)
|
|
(21
|
)
|
|
(13
|
)
|
|||||
Total fair value option portfolio
|
|
9
|
|
|
5
|
|
|
13
|
|
|
8
|
|
|||||
Portfolio diversification
|
|
(4
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|||||
Total market-based portfolio
|
|
$
|
45
|
|
|
$
|
22
|
|
|
$
|
48
|
|
|
$
|
26
|
|
79
Bank of America 2017
|
|
|
|
|
Bank of America 2017
80
|
|
|
|
|
|
|
|
|||
Table 51
|
Forward Rates
|
||||||||
|
|
|
|
|
|
|
|||
|
|
December 31, 2017
|
|||||||
|
|
Federal
Funds
|
|
Three-month
LIBOR
|
|
10-Year
Swap
|
|||
Spot rates
|
1.50
|
%
|
|
1.69
|
%
|
|
2.40
|
%
|
|
12-month forward rates
|
2.00
|
|
|
2.14
|
|
|
2.48
|
|
|
|
|
|
|
|
|
|
|||
|
|
December 31, 2016
|
|||||||
Spot rates
|
0.75
|
%
|
|
1.00
|
%
|
|
2.34
|
%
|
|
12-month forward rates
|
1.25
|
|
|
1.51
|
|
|
2.49
|
|
|
|
|
|
|
|
|
|
|
||||||
Table 52
|
Estimated Banking Book Net Interest Income Sensitivity
|
|||||||||||||
|
|
|
|
|
|
|
|
|
||||||
(Dollars in millions)
|
Short
Rate (bps)
|
|
Long
Rate (bps)
|
|
December 31
|
|||||||||
Curve Change
|
|
|
2017
|
|
2016
|
|||||||||
Parallel Shifts
|
|
|
|
|
|
|
|
|||||||
+100 bps
instantaneous shift
|
+100
|
|
+100
|
|
$
|
3,317
|
|
|
$
|
3,370
|
|
|||
-50 bps
instantaneous shift
|
-50
|
|
|
-50
|
|
|
(2,273
|
)
|
|
(2,900
|
)
|
|||
Flatteners
|
|
|
|
|
|
|
|
|
|
|
||||
Short-end
instantaneous change
|
+100
|
|
—
|
|
|
2,182
|
|
|
2,473
|
|
||||
Long-end
instantaneous change
|
—
|
|
|
-50
|
|
|
(1,246
|
)
|
|
(961
|
)
|
|||
Steepeners
|
|
|
|
|
|
|
|
|
|
|||||
Short-end
instantaneous change
|
-50
|
|
|
—
|
|
|
(1,021
|
)
|
|
(1,918
|
)
|
|||
Long-end
instantaneous change
|
—
|
|
|
+100
|
|
1,135
|
|
|
928
|
|
81
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Table 53
|
Asset and Liability Management Interest Rate and Foreign Exchange Contracts
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
December 31, 2017
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
Expected Maturity
|
|
|
|||||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years)
|
Fair
Value
|
|
Total
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Average
Estimated
Duration
|
||||||||||||||||||
Receive-fixed interest rate swaps
(1)
|
$
|
2,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.38
|
|
||||||||
Notional amount
|
|
|
|
$
|
176,390
|
|
|
$
|
21,850
|
|
|
$
|
27,176
|
|
|
$
|
16,347
|
|
|
$
|
6,498
|
|
|
$
|
19,120
|
|
|
$
|
85,399
|
|
|
|
|
||
Weighted-average fixed-rate
|
|
|
|
2.42
|
%
|
|
3.20
|
%
|
|
1.87
|
%
|
|
1.88
|
%
|
|
2.99
|
%
|
|
2.10
|
%
|
|
2.52
|
%
|
|
|
|
|||||||||
Pay-fixed interest rate swaps
(1)
|
(37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.63
|
|
|||||||||
Notional amount
|
|
|
|
$
|
45,873
|
|
|
$
|
11,555
|
|
|
$
|
1,210
|
|
|
$
|
4,344
|
|
|
$
|
1,616
|
|
|
$
|
—
|
|
|
$
|
27,148
|
|
|
|
|
||
Weighted-average fixed-rate
|
|
|
|
2.15
|
%
|
|
1.73
|
%
|
|
2.07
|
%
|
|
2.16
|
%
|
|
2.22
|
%
|
|
—
|
%
|
|
2.32
|
%
|
|
|
|
|||||||||
Same-currency basis swaps
(2)
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
|
|
|
|
$
|
38,622
|
|
|
$
|
11,028
|
|
|
$
|
6,789
|
|
|
$
|
1,180
|
|
|
$
|
2,807
|
|
|
$
|
955
|
|
|
$
|
15,863
|
|
|
|
|
||
Foreign exchange basis swaps
(1, 3, 4)
|
(1,616
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
|
|
|
|
107,263
|
|
|
24,886
|
|
|
11,922
|
|
|
13,367
|
|
|
9,301
|
|
|
6,860
|
|
|
40,927
|
|
|
|
|
|||||||||
Option products
(5)
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
(6)
|
|
|
|
1,218
|
|
|
1,201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
|
|
|||||||||
Foreign exchange contracts
(1, 4, 7)
|
1,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
(6)
|
|
|
(11,783
|
)
|
|
(28,689
|
)
|
|
2,231
|
|
|
(24
|
)
|
|
2,471
|
|
|
2,919
|
|
|
9,309
|
|
|
|
|
||||||||||
Net ALM contracts
|
$
|
2,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
December 31, 2016
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
Expected Maturity
|
|
|
|||||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years)
|
Fair
Value
|
|
Total
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Average
Estimated
Duration
|
||||||||||||||||||
Receive-fixed interest rate swaps
(1)
|
$
|
4,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.81
|
|
||||||||
Notional amount
|
|
|
|
$
|
118,603
|
|
|
$
|
21,453
|
|
|
$
|
25,788
|
|
|
$
|
10,283
|
|
|
$
|
7,515
|
|
|
$
|
5,307
|
|
|
$
|
48,257
|
|
|
|
|
||
Weighted-average fixed-rate
|
|
|
|
2.83
|
%
|
|
3.64
|
%
|
|
2.81
|
%
|
|
2.31
|
%
|
|
2.07
|
%
|
|
3.18
|
%
|
|
2.67
|
%
|
|
|
|
|||||||||
Pay-fixed interest rate swaps
(1)
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.77
|
|
|||||||||
Notional amount
|
|
|
|
$
|
22,400
|
|
|
$
|
1,527
|
|
|
$
|
9,168
|
|
|
$
|
2,072
|
|
|
$
|
7,975
|
|
|
$
|
213
|
|
|
$
|
1,445
|
|
|
|
|
||
Weighted-average fixed-rate
|
|
|
|
1.37
|
%
|
|
1.84
|
%
|
|
1.47
|
%
|
|
0.97
|
%
|
|
1.08
|
%
|
|
1.00
|
%
|
|
2.45
|
%
|
|
|
|
|||||||||
Same-currency basis swaps
(2)
|
(26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
|
|
|
|
$
|
59,274
|
|
|
$
|
20,775
|
|
|
$
|
11,027
|
|
|
$
|
6,784
|
|
|
$
|
1,180
|
|
|
$
|
2,799
|
|
|
$
|
16,709
|
|
|
|
|
||
Foreign exchange basis swaps
(1, 3, 4)
|
(4,233
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
|
|
|
|
125,522
|
|
|
26,509
|
|
|
22,724
|
|
|
12,178
|
|
|
12,150
|
|
|
8,365
|
|
|
43,596
|
|
|
|
|
|||||||||
Option products
(5)
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
(6)
|
|
|
|
1,687
|
|
|
1,673
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
|
|
|||||||||
Foreign exchange contracts
(1, 4, 7)
|
3,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
(6)
|
|
|
|
(20,285
|
)
|
|
(30,199
|
)
|
|
197
|
|
|
1,961
|
|
|
(8
|
)
|
|
881
|
|
|
6,883
|
|
|
|
|
|||||||||
Futures and forward rate contracts
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Notional amount
(6)
|
|
|
|
37,896
|
|
|
37,896
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||||||
Net ALM contracts
|
$
|
3,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
December 31, 2017
and
2016
, the notional amount of same-currency basis swaps included
$38.6 billion
and
$59.3 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
$1.2 billion
and
$1.7 billion
at
December 31, 2017
and
2016
was substantially all in foreign exchange options.
|
(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
$(11.8) billion
at
December 31, 2017
was comprised of
$29.1 billion
in foreign currency-denominated and cross-currency receive-fixed swaps,
$(35.6) billion
in net foreign currency forward rate contracts,
$(6.2) billion
in foreign currency-denominated pay-fixed swaps and
$940 million
in net foreign currency futures contracts. Foreign exchange contracts of
$(20.3) billion
at
December 31, 2016
were comprised of
$21.5 billion
in foreign currency-denominated and cross-currency receive-fixed swaps,
$(38.5) billion
in net foreign currency forward rate contracts,
$(4.6) billion
in foreign currency-denominated pay-fixed swaps and
$1.3 billion
in foreign currency futures contracts.
|
|
|
Bank of America 2017
82
|
83
Bank of America 2017
|
|
|
|
|
Bank of America 2017
84
|
85
Bank of America 2017
|
|
|
●
|
Service charges increased
$257 million
primarily due to higher treasury-related revenue.
|
●
|
Investment and brokerage services income decreased
$592 million
driven by lower transactional revenue, and decreased asset management fees due to lower market valuations, partially offset by the impact of higher long-term AUM flows.
|
●
|
Investment banking income decreased
$331 million
driven by lower equity issuance fees and advisory fees due to a decline in market fee pools.
|
●
|
Trading account profits increased
$429 million
due to a stronger performance across credit products led by mortgages, and continued strength in rates products, partially offset by reduced client activity in equities.
|
●
|
Mortgage banking income decreased
$511 million
primarily driven by a decline in production income, higher representations and warranties provision and lower servicing income, partially offset by more favorable MSR results, net of the related hedge performance.
|
●
|
Gains on sales of debt securities decreased
$648 million
primarily driven by lower sales volume.
|
●
|
Other income increased
$102 million
primarily due to lower DVA losses on structured liabilities, improved results from loans and the related hedging activities in the fair value option portfolio and lower payment protection insurance expense, partially offset by lower gains on asset sales. DVA losses related to structured liabilities were
$97 million
in
2015
compared to
$633 million
in
2015
.
|
|
|
Bank of America 2017
86
|
87
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table 54
|
Five-year Reconciliations to GAAP Financial Measures
(1)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in millions, shares in thousands)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income
|
$
|
44,667
|
|
|
$
|
41,096
|
|
|
$
|
38,958
|
|
|
$
|
40,779
|
|
|
$
|
40,719
|
|
|
Fully taxable-equivalent adjustment
|
925
|
|
|
900
|
|
|
889
|
|
|
851
|
|
|
859
|
|
||||||
Net interest income on a fully taxable-equivalent basis
|
$
|
45,592
|
|
|
$
|
41,996
|
|
|
$
|
39,847
|
|
|
$
|
41,630
|
|
|
$
|
41,578
|
|
|
Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total revenue, net of interest expense
|
$
|
87,352
|
|
|
$
|
83,701
|
|
|
$
|
82,965
|
|
|
$
|
85,894
|
|
|
$
|
87,502
|
|
|
Fully taxable-equivalent adjustment
|
925
|
|
|
900
|
|
|
889
|
|
|
851
|
|
|
859
|
|
||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis
|
$
|
88,277
|
|
|
$
|
84,601
|
|
|
$
|
83,854
|
|
|
$
|
86,745
|
|
|
$
|
88,361
|
|
|
Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income tax expense
|
$
|
10,981
|
|
|
$
|
7,199
|
|
|
$
|
6,277
|
|
|
$
|
2,443
|
|
|
$
|
4,194
|
|
|
Fully taxable-equivalent adjustment
|
925
|
|
|
900
|
|
|
889
|
|
|
851
|
|
|
859
|
|
||||||
Income tax expense on a fully taxable-equivalent basis
|
$
|
11,906
|
|
|
$
|
8,099
|
|
|
$
|
7,166
|
|
|
$
|
3,294
|
|
|
$
|
5,053
|
|
|
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common shareholders’ equity
|
$
|
247,101
|
|
|
$
|
241,187
|
|
|
$
|
229,576
|
|
|
$
|
222,907
|
|
|
$
|
218,340
|
|
|
Goodwill
|
(69,286
|
)
|
|
(69,750
|
)
|
|
(69,772
|
)
|
|
(69,809
|
)
|
|
(69,910
|
)
|
||||||
Intangible assets (excluding MSRs)
|
(2,652
|
)
|
|
(3,382
|
)
|
|
(4,201
|
)
|
|
(5,109
|
)
|
|
(6,132
|
)
|
||||||
Related deferred tax liabilities
|
1,463
|
|
|
1,644
|
|
|
1,852
|
|
|
2,090
|
|
|
2,328
|
|
||||||
Tangible common shareholders’ equity
|
$
|
176,626
|
|
|
$
|
169,699
|
|
|
$
|
157,455
|
|
|
$
|
150,079
|
|
|
$
|
144,626
|
|
|
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shareholders’ equity
|
$
|
271,289
|
|
|
$
|
265,843
|
|
|
$
|
251,384
|
|
|
$
|
238,317
|
|
|
$
|
233,819
|
|
|
Goodwill
|
(69,286
|
)
|
|
(69,750
|
)
|
|
(69,772
|
)
|
|
(69,809
|
)
|
|
(69,910
|
)
|
||||||
Intangible assets (excluding MSRs)
|
(2,652
|
)
|
|
(3,382
|
)
|
|
(4,201
|
)
|
|
(5,109
|
)
|
|
(6,132
|
)
|
||||||
Related deferred tax liabilities
|
1,463
|
|
|
1,644
|
|
|
1,852
|
|
|
2,090
|
|
|
2,328
|
|
||||||
Tangible shareholders’ equity
|
$
|
200,814
|
|
|
$
|
194,355
|
|
|
$
|
179,263
|
|
|
$
|
165,489
|
|
|
$
|
160,105
|
|
|
Reconciliation of year-end common shareholders’ equity to year-end tangible common shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common shareholders’ equity
|
$
|
244,823
|
|
|
$
|
240,975
|
|
|
$
|
233,343
|
|
|
$
|
224,167
|
|
|
$
|
219,124
|
|
|
Goodwill
|
(68,951
|
)
|
|
(69,744
|
)
|
|
(69,761
|
)
|
|
(69,777
|
)
|
|
(69,844
|
)
|
||||||
Intangible assets (excluding MSRs)
|
(2,312
|
)
|
|
(2,989
|
)
|
|
(3,768
|
)
|
|
(4,612
|
)
|
|
(5,574
|
)
|
||||||
Related deferred tax liabilities
|
943
|
|
|
1,545
|
|
|
1,716
|
|
|
1,960
|
|
|
2,166
|
|
||||||
Tangible common shareholders’ equity
|
$
|
174,503
|
|
|
$
|
169,787
|
|
|
$
|
161,530
|
|
|
$
|
151,738
|
|
|
$
|
145,872
|
|
|
Reconciliation of year-end shareholders’ equity to year-end tangible shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shareholders’ equity
|
$
|
267,146
|
|
|
$
|
266,195
|
|
|
$
|
255,615
|
|
|
$
|
243,476
|
|
|
$
|
232,475
|
|
|
Goodwill
|
(68,951
|
)
|
|
(69,744
|
)
|
|
(69,761
|
)
|
|
(69,777
|
)
|
|
(69,844
|
)
|
||||||
Intangible assets (excluding MSRs)
|
(2,312
|
)
|
|
(2,989
|
)
|
|
(3,768
|
)
|
|
(4,612
|
)
|
|
(5,574
|
)
|
||||||
Related deferred tax liabilities
|
943
|
|
|
1,545
|
|
|
1,716
|
|
|
1,960
|
|
|
2,166
|
|
||||||
Tangible shareholders’ equity
|
$
|
196,826
|
|
|
$
|
195,007
|
|
|
$
|
183,802
|
|
|
$
|
171,047
|
|
|
$
|
159,223
|
|
|
Reconciliation of year-end assets to year-end tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets
|
$
|
2,281,234
|
|
|
$
|
2,188,067
|
|
|
$
|
2,144,606
|
|
|
$
|
2,104,539
|
|
|
$
|
2,102,064
|
|
|
Goodwill
|
(68,951
|
)
|
|
(69,744
|
)
|
|
(69,761
|
)
|
|
(69,777
|
)
|
|
(69,844
|
)
|
||||||
Intangible assets (excluding MSRs)
|
(2,312
|
)
|
|
(2,989
|
)
|
|
(3,768
|
)
|
|
(4,612
|
)
|
|
(5,574
|
)
|
||||||
Related deferred tax liabilities
|
943
|
|
|
1,545
|
|
|
1,716
|
|
|
1,960
|
|
|
2,166
|
|
||||||
Tangible assets
|
$
|
2,210,914
|
|
|
$
|
2,116,879
|
|
|
$
|
2,072,793
|
|
|
$
|
2,032,110
|
|
|
$
|
2,028,812
|
|
(1)
|
Presents reconciliations of non-GAAP financial measures to GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate these measures differently. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see
Supplemental Financial Data
on page
27
.
|
|
|
Bank of America 2017
88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Table 55
|
Quarterly Reconciliations to GAAP Financial Measures
(1)
|
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2017 Quarters
|
|
2016 Quarters
|
||||||||||||||||||||||||||||
(Dollars in millions)
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest income
|
$
|
11,462
|
|
|
$
|
11,161
|
|
|
$
|
10,986
|
|
|
$
|
11,058
|
|
|
$
|
10,292
|
|
|
$
|
10,201
|
|
|
$
|
10,118
|
|
|
$
|
10,485
|
|
|
Fully taxable-equivalent adjustment
|
251
|
|
|
240
|
|
|
237
|
|
|
197
|
|
|
234
|
|
|
228
|
|
|
223
|
|
|
215
|
|
|||||||||
Net interest income on a fully taxable-equivalent basis
|
$
|
11,713
|
|
|
$
|
11,401
|
|
|
$
|
11,223
|
|
|
$
|
11,255
|
|
|
$
|
10,526
|
|
|
$
|
10,429
|
|
|
$
|
10,341
|
|
|
$
|
10,700
|
|
|
Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total revenue, net of interest expense
|
$
|
20,436
|
|
|
$
|
21,839
|
|
|
$
|
22,829
|
|
|
$
|
22,248
|
|
|
$
|
19,990
|
|
|
$
|
21,635
|
|
|
$
|
21,286
|
|
|
$
|
20,790
|
|
|
Fully taxable-equivalent adjustment
|
251
|
|
|
240
|
|
|
237
|
|
|
197
|
|
|
234
|
|
|
228
|
|
|
223
|
|
|
215
|
|
|||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis
|
$
|
20,687
|
|
|
$
|
22,079
|
|
|
$
|
23,066
|
|
|
$
|
22,445
|
|
|
$
|
20,224
|
|
|
$
|
21,863
|
|
|
$
|
21,509
|
|
|
$
|
21,005
|
|
|
Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income tax expense
|
$
|
3,796
|
|
|
$
|
2,187
|
|
|
$
|
3,015
|
|
|
$
|
1,983
|
|
|
$
|
1,268
|
|
|
$
|
2,257
|
|
|
$
|
1,943
|
|
|
$
|
1,731
|
|
|
Fully taxable-equivalent adjustment
|
251
|
|
|
240
|
|
|
237
|
|
|
197
|
|
|
234
|
|
|
228
|
|
|
223
|
|
|
215
|
|
|||||||||
Income tax expense on a fully taxable-equivalent basis
|
$
|
4,047
|
|
|
$
|
2,427
|
|
|
$
|
3,252
|
|
|
$
|
2,180
|
|
|
$
|
1,502
|
|
|
$
|
2,485
|
|
|
$
|
2,166
|
|
|
$
|
1,946
|
|
|
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common shareholders’ equity
|
$
|
250,838
|
|
|
$
|
249,214
|
|
|
$
|
245,756
|
|
|
$
|
242,480
|
|
|
$
|
244,519
|
|
|
$
|
243,220
|
|
|
$
|
240,078
|
|
|
$
|
236,871
|
|
|
Goodwill
|
(68,954
|
)
|
|
(68,969
|
)
|
|
(69,489
|
)
|
|
(69,744
|
)
|
|
(69,745
|
)
|
|
(69,744
|
)
|
|
(69,751
|
)
|
|
(69,761
|
)
|
|||||||||
Intangible assets (excluding MSRs)
|
(2,399
|
)
|
|
(2,549
|
)
|
|
(2,743
|
)
|
|
(2,923
|
)
|
|
(3,091
|
)
|
|
(3,276
|
)
|
|
(3,480
|
)
|
|
(3,687
|
)
|
|||||||||
Related deferred tax liabilities
|
1,344
|
|
|
1,465
|
|
|
1,506
|
|
|
1,539
|
|
|
1,580
|
|
|
1,628
|
|
|
1,662
|
|
|
1,707
|
|
|||||||||
Tangible common shareholders’ equity
|
$
|
180,829
|
|
|
$
|
179,161
|
|
|
$
|
175,030
|
|
|
$
|
171,352
|
|
|
$
|
173,263
|
|
|
$
|
171,828
|
|
|
$
|
168,509
|
|
|
$
|
165,130
|
|
|
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Shareholders’ equity
|
$
|
273,162
|
|
|
$
|
273,238
|
|
|
$
|
270,977
|
|
|
$
|
267,700
|
|
|
$
|
269,739
|
|
|
$
|
268,440
|
|
|
$
|
265,056
|
|
|
$
|
260,065
|
|
|
Goodwill
|
(68,954
|
)
|
|
(68,969
|
)
|
|
(69,489
|
)
|
|
(69,744
|
)
|
|
(69,745
|
)
|
|
(69,744
|
)
|
|
(69,751
|
)
|
|
(69,761
|
)
|
|||||||||
Intangible assets (excluding MSRs)
|
(2,399
|
)
|
|
(2,549
|
)
|
|
(2,743
|
)
|
|
(2,923
|
)
|
|
(3,091
|
)
|
|
(3,276
|
)
|
|
(3,480
|
)
|
|
(3,687
|
)
|
|||||||||
Related deferred tax liabilities
|
1,344
|
|
|
1,465
|
|
|
1,506
|
|
|
1,539
|
|
|
1,580
|
|
|
1,628
|
|
|
1,662
|
|
|
1,707
|
|
|||||||||
Tangible shareholders’ equity
|
$
|
203,153
|
|
|
$
|
203,185
|
|
|
$
|
200,251
|
|
|
$
|
196,572
|
|
|
$
|
198,483
|
|
|
$
|
197,048
|
|
|
$
|
193,487
|
|
|
$
|
188,324
|
|
|
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common shareholders’ equity
|
$
|
244,823
|
|
|
$
|
249,646
|
|
|
$
|
245,440
|
|
|
$
|
242,770
|
|
|
$
|
240,975
|
|
|
$
|
244,379
|
|
|
$
|
241,884
|
|
|
$
|
238,501
|
|
|
Goodwill
|
(68,951
|
)
|
|
(68,968
|
)
|
|
(68,969
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,761
|
)
|
|||||||||
Intangible assets (excluding MSRs)
|
(2,312
|
)
|
|
(2,459
|
)
|
|
(2,610
|
)
|
|
(2,827
|
)
|
|
(2,989
|
)
|
|
(3,168
|
)
|
|
(3,352
|
)
|
|
(3,578
|
)
|
|||||||||
Related deferred tax liabilities
|
943
|
|
|
1,435
|
|
|
1,471
|
|
|
1,513
|
|
|
1,545
|
|
|
1,588
|
|
|
1,637
|
|
|
1,667
|
|
|||||||||
Tangible common shareholders’ equity
|
$
|
174,503
|
|
|
$
|
179,654
|
|
|
$
|
175,332
|
|
|
$
|
171,712
|
|
|
$
|
169,787
|
|
|
$
|
173,055
|
|
|
$
|
170,425
|
|
|
$
|
166,829
|
|
|
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Shareholders’ equity
|
$
|
267,146
|
|
|
$
|
271,969
|
|
|
$
|
270,660
|
|
|
$
|
267,990
|
|
|
$
|
266,195
|
|
|
$
|
269,600
|
|
|
$
|
267,104
|
|
|
$
|
262,843
|
|
|
Goodwill
|
(68,951
|
)
|
|
(68,968
|
)
|
|
(68,969
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,761
|
)
|
|||||||||
Intangible assets (excluding MSRs)
|
(2,312
|
)
|
|
(2,459
|
)
|
|
(2,610
|
)
|
|
(2,827
|
)
|
|
(2,989
|
)
|
|
(3,168
|
)
|
|
(3,352
|
)
|
|
(3,578
|
)
|
|||||||||
Related deferred tax liabilities
|
943
|
|
|
1,435
|
|
|
1,471
|
|
|
1,513
|
|
|
1,545
|
|
|
1,588
|
|
|
1,637
|
|
|
1,667
|
|
|||||||||
Tangible shareholders’ equity
|
$
|
196,826
|
|
|
$
|
201,977
|
|
|
$
|
200,552
|
|
|
$
|
196,932
|
|
|
$
|
195,007
|
|
|
$
|
198,276
|
|
|
$
|
195,645
|
|
|
$
|
191,171
|
|
|
Reconciliation of period-end assets to period-end tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Assets
|
$
|
2,281,234
|
|
|
$
|
2,284,174
|
|
|
$
|
2,254,714
|
|
|
$
|
2,247,794
|
|
|
$
|
2,188,067
|
|
|
$
|
2,195,588
|
|
|
$
|
2,187,149
|
|
|
$
|
2,185,818
|
|
|
Goodwill
|
(68,951
|
)
|
|
(68,968
|
)
|
|
(68,969
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,744
|
)
|
|
(69,761
|
)
|
|||||||||
Intangible assets (excluding MSRs)
|
(2,312
|
)
|
|
(2,459
|
)
|
|
(2,610
|
)
|
|
(2,827
|
)
|
|
(2,989
|
)
|
|
(3,168
|
)
|
|
(3,352
|
)
|
|
(3,578
|
)
|
|||||||||
Related deferred tax liabilities
|
943
|
|
|
1,435
|
|
|
1,471
|
|
|
1,513
|
|
|
1,545
|
|
|
1,588
|
|
|
1,637
|
|
|
1,667
|
|
|||||||||
Tangible assets
|
$
|
2,210,914
|
|
|
$
|
2,214,182
|
|
|
$
|
2,184,606
|
|
|
$
|
2,176,736
|
|
|
$
|
2,116,879
|
|
|
$
|
2,124,264
|
|
|
$
|
2,115,690
|
|
|
$
|
2,114,146
|
|
(1)
|
Presents reconciliations of non-GAAP financial measures to GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate these measures differently. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see
Supplemental Financial Data
on page
27
.
|
89
Bank of America 2017
|
|
|
|
|
|
Table of Contents
|
|
|
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table I
Outstanding Loans and Leases
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31
|
||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential mortgage
(1)
|
$
|
203,811
|
|
|
$
|
191,797
|
|
|
$
|
187,911
|
|
|
$
|
216,197
|
|
|
$
|
248,066
|
|
Home equity
|
57,744
|
|
|
66,443
|
|
|
75,948
|
|
|
85,725
|
|
|
93,672
|
|
|||||
U.S. credit card
|
96,285
|
|
|
92,278
|
|
|
89,602
|
|
|
91,879
|
|
|
92,338
|
|
|||||
Non-U.S. credit card
|
—
|
|
|
9,214
|
|
|
9,975
|
|
|
10,465
|
|
|
11,541
|
|
|||||
Direct/Indirect consumer
(2)
|
93,830
|
|
|
94,089
|
|
|
88,795
|
|
|
80,381
|
|
|
82,192
|
|
|||||
Other consumer
(3)
|
2,678
|
|
|
2,499
|
|
|
2,067
|
|
|
1,846
|
|
|
1,977
|
|
|||||
Total consumer loans excluding loans accounted for under the fair value option
|
454,348
|
|
|
456,320
|
|
|
454,298
|
|
|
486,493
|
|
|
529,786
|
|
|||||
Consumer loans accounted for under the fair value option
(4)
|
928
|
|
|
1,051
|
|
|
1,871
|
|
|
2,077
|
|
|
2,164
|
|
|||||
Total consumer
|
455,276
|
|
|
457,371
|
|
|
456,169
|
|
|
488,570
|
|
|
531,950
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. commercial
(5)
|
298,485
|
|
|
283,365
|
|
|
265,647
|
|
|
233,586
|
|
|
225,851
|
|
|||||
Non-U.S. commercial
|
97,792
|
|
|
89,397
|
|
|
91,549
|
|
|
80,083
|
|
|
89,462
|
|
|||||
Commercial real estate
(6)
|
58,298
|
|
|
57,355
|
|
|
57,199
|
|
|
47,682
|
|
|
47,893
|
|
|||||
Commercial lease financing
|
22,116
|
|
|
22,375
|
|
|
21,352
|
|
|
19,579
|
|
|
25,199
|
|
|||||
Total commercial loans excluding loans accounted for under the fair value option
|
476,691
|
|
|
452,492
|
|
|
435,747
|
|
|
380,930
|
|
|
388,405
|
|
|||||
Commercial loans accounted for under the fair value option
(4)
|
4,782
|
|
|
6,034
|
|
|
5,067
|
|
|
6,604
|
|
|
7,878
|
|
|||||
Total commercial
|
481,473
|
|
|
458,526
|
|
|
440,814
|
|
|
387,534
|
|
|
396,283
|
|
|||||
Less: Loans of business held for sale
(7)
|
—
|
|
|
(9,214
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total loans and leases
|
$
|
936,749
|
|
|
$
|
906,683
|
|
|
$
|
896,983
|
|
|
$
|
876,104
|
|
|
$
|
928,233
|
|
(1)
|
Includes pay option loans of
$1.4 billion
,
$1.8 billion
,
$2.3 billion
,
$3.2 billion
and
$4.4 billion
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively. The Corporation no longer originates pay option loans.
|
(2)
|
Includes auto and specialty lending loans of
$49.9 billion
,
$48.9 billion
,
$42.6 billion
,
$37.7 billion
and
$38.5 billion
, unsecured consumer lending loans of
$469 million
,
$585 million
,
$886 million
,
$1.5 billion
and
$2.7 billion
, U.S. securities-based lending loans of
$39.8 billion
,
$40.1 billion
,
$39.8 billion
,
$35.8 billion
and
$31.2 billion
, non-U.S. consumer loans of
$3.0 billion
,
$3.0 billion
,
$3.9 billion
,
$4.0 billion
and
$4.7 billion
, student loans of
$0
,
$497 million
,
$564 million
,
$632 million
and
$4.1 billion
, and other consumer loans of
$684 million
,
$1.1 billion
,
$1.0 billion
,
$761 million
and
$1.0 billion
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(3)
|
Includes consumer finance loans of
$0
,
$465 million
,
$564 million
,
$676 million
and
$1.2 billion
, consumer leases of
$2.5 billion
,
$1.9 billion
,
$1.4 billion
,
$1.0 billion
and
$606 million
, and consumer overdrafts of
$163 million
,
$157 million
,
$146 million
,
$162 million
and
$176 million
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(4)
|
Consumer loans accounted for under the fair value option includes residential mortgage loans of
$567 million
,
$710 million
,
$1.6 billion
,
$1.9 billion
and
$2.0 billion
, and home equity loans of
$361 million
,
$341 million
,
$250 million
,
$196 million
and
$147 million
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively. Commercial loans accounted for under the fair value option includes U.S. commercial loans of
$2.6 billion
,
$2.9 billion
,
$2.3 billion
,
$1.9 billion
and
$1.5 billion
, and non-U.S. commercial loans of
$2.2 billion
,
$3.1 billion
,
$2.8 billion
,
$4.7 billion
and
$6.4 billion
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(5)
|
Includes U.S. small business commercial loans, including card-related products, of
$13.6 billion
,
$13.0 billion
,
$12.9 billion
,
$13.3 billion
and
$13.3 billion
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(6)
|
Includes U.S. commercial real estate loans of
$54.8 billion
,
$54.3 billion
,
$53.6 billion
,
$45.2 billion
and
$46.3 billion
, and non-U.S. commercial real estate loans of
$3.5 billion
,
$3.1 billion
,
$3.5 billion
,
$2.5 billion
and
$1.6 billion
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(7)
|
Represents non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet.
|
|
|
Bank of America 2017
90
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table II
Nonperforming Loans, Leases and Foreclosed Properties
(1)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31
|
||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential mortgage
|
$
|
2,476
|
|
|
$
|
3,056
|
|
|
$
|
4,803
|
|
|
$
|
6,889
|
|
|
$
|
11,712
|
|
Home equity
|
2,644
|
|
|
2,918
|
|
|
3,337
|
|
|
3,901
|
|
|
4,075
|
|
|||||
Direct/Indirect consumer
|
46
|
|
|
28
|
|
|
24
|
|
|
28
|
|
|
35
|
|
|||||
Other consumer
|
—
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
18
|
|
|||||
Total consumer
(2)
|
5,166
|
|
|
6,004
|
|
|
8,165
|
|
|
10,819
|
|
|
15,840
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. commercial
|
814
|
|
|
1,256
|
|
|
867
|
|
|
701
|
|
|
819
|
|
|||||
Non-U.S. commercial
|
299
|
|
|
279
|
|
|
158
|
|
|
1
|
|
|
64
|
|
|||||
Commercial real estate
|
112
|
|
|
72
|
|
|
93
|
|
|
321
|
|
|
322
|
|
|||||
Commercial lease financing
|
24
|
|
|
36
|
|
|
12
|
|
|
3
|
|
|
16
|
|
|||||
|
1,249
|
|
|
1,643
|
|
|
1,130
|
|
|
1,026
|
|
|
1,221
|
|
|||||
U.S. small business commercial
|
55
|
|
|
60
|
|
|
82
|
|
|
87
|
|
|
88
|
|
|||||
Total commercial
(3)
|
1,304
|
|
|
1,703
|
|
|
1,212
|
|
|
1,113
|
|
|
1,309
|
|
|||||
Total nonperforming loans and leases
|
6,470
|
|
|
7,707
|
|
|
9,377
|
|
|
11,932
|
|
|
17,149
|
|
|||||
Foreclosed properties
|
288
|
|
|
377
|
|
|
459
|
|
|
697
|
|
|
623
|
|
|||||
Total nonperforming loans, leases and foreclosed properties
|
$
|
6,758
|
|
|
$
|
8,084
|
|
|
$
|
9,836
|
|
|
$
|
12,629
|
|
|
$
|
17,772
|
|
(1)
|
Balances do not include PCI loans even though the customer may be contractually past due. PCI loans are recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. In addition, balances do not include foreclosed properties insured by certain government-guaranteed loans, principally FHA-insured loans, that entered foreclosure of
$801 million
,
$1.2 billion
,
$1.4 billion
,
$1.1 billion
and
$1.4 billion
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(2)
|
In
2017
,
$867 million
in interest income was estimated to be contractually due on
$5.2 billion
of consumer loans and leases classified as nonperforming at
December 31, 2017
, as presented in the table above, plus
$10.1 billion
of TDRs classified as performing at
December 31, 2017
. Approximately
$578 million
of the estimated
$867 million
in contractual interest was received and included in interest income for
2017
.
|
(3)
|
In
2017
,
$90 million
in interest income was estimated to be contractually due on
$1.3 billion
of commercial loans and leases classified as nonperforming at
December 31, 2017
, as presented in the table above, plus
$1.1 billion
of TDRs classified as performing at
December 31, 2017
. Approximately
$58 million
of the estimated
$90 million
in contractual interest was received and included in interest income for
2017
.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table III
Accruing Loans and Leases Past Due 90 Days or More
(1)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31
|
||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential mortgage
(2)
|
$
|
3,230
|
|
|
$
|
4,793
|
|
|
$
|
7,150
|
|
|
$
|
11,407
|
|
|
$
|
16,961
|
|
U.S. credit card
|
900
|
|
|
782
|
|
|
789
|
|
|
866
|
|
|
1,053
|
|
|||||
Non-U.S. credit card
|
—
|
|
|
66
|
|
|
76
|
|
|
95
|
|
|
131
|
|
|||||
Direct/Indirect consumer
|
40
|
|
|
34
|
|
|
39
|
|
|
64
|
|
|
408
|
|
|||||
Other consumer
|
—
|
|
|
4
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|||||
Total consumer
|
4,170
|
|
|
5,679
|
|
|
8,057
|
|
|
12,433
|
|
|
18,555
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. commercial
|
144
|
|
|
106
|
|
|
113
|
|
|
110
|
|
|
47
|
|
|||||
Non-U.S. commercial
|
3
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
17
|
|
|||||
Commercial real estate
|
4
|
|
|
7
|
|
|
3
|
|
|
3
|
|
|
21
|
|
|||||
Commercial lease financing
|
19
|
|
|
19
|
|
|
15
|
|
|
40
|
|
|
41
|
|
|||||
|
170
|
|
|
137
|
|
|
132
|
|
|
153
|
|
|
126
|
|
|||||
U.S. small business commercial
|
75
|
|
|
71
|
|
|
61
|
|
|
67
|
|
|
78
|
|
|||||
Total commercial
|
245
|
|
|
208
|
|
|
193
|
|
|
220
|
|
|
204
|
|
|||||
Total accruing loans and leases past due 90 days or more
(3)
|
$
|
4,415
|
|
|
$
|
5,887
|
|
|
$
|
8,250
|
|
|
$
|
12,653
|
|
|
$
|
18,759
|
|
(1)
|
Our policy is to classify consumer real estate-secured loans as nonperforming at 90 days past due, except the PCI loan portfolio, the fully-insured loan portfolio and loans accounted for under the fair value option as referenced in footnote 3.
|
(2)
|
Balances are fully-insured loans.
|
(3)
|
Balances exclude loans accounted for under the fair value option. At
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, $2 million, $1 million, $1 million, $5 million and $8 million of loans accounted for under the fair value option were past due 90 days or more and still accruing interest.
|
91
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table IV
Allowance for Credit Losses
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Allowance for loan and lease losses, January 1
|
$
|
11,237
|
|
|
$
|
12,234
|
|
|
$
|
14,419
|
|
|
$
|
17,428
|
|
|
$
|
24,179
|
|
Loans and leases charged off
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage
|
(188
|
)
|
|
(403
|
)
|
|
(866
|
)
|
|
(855
|
)
|
|
(1,508
|
)
|
|||||
Home equity
|
(582
|
)
|
|
(752
|
)
|
|
(975
|
)
|
|
(1,364
|
)
|
|
(2,258
|
)
|
|||||
U.S. credit card
|
(2,968
|
)
|
|
(2,691
|
)
|
|
(2,738
|
)
|
|
(3,068
|
)
|
|
(4,004
|
)
|
|||||
Non-U.S. credit card
(1)
|
(103
|
)
|
|
(238
|
)
|
|
(275
|
)
|
|
(357
|
)
|
|
(508
|
)
|
|||||
Direct/Indirect consumer
|
(487
|
)
|
|
(392
|
)
|
|
(383
|
)
|
|
(456
|
)
|
|
(710
|
)
|
|||||
Other consumer
|
(216
|
)
|
|
(232
|
)
|
|
(224
|
)
|
|
(268
|
)
|
|
(273
|
)
|
|||||
Total consumer charge-offs
|
(4,544
|
)
|
|
(4,708
|
)
|
|
(5,461
|
)
|
|
(6,368
|
)
|
|
(9,261
|
)
|
|||||
U.S. commercial
(2)
|
(589
|
)
|
|
(567
|
)
|
|
(536
|
)
|
|
(584
|
)
|
|
(774
|
)
|
|||||
Non-U.S. commercial
|
(446
|
)
|
|
(133
|
)
|
|
(59
|
)
|
|
(35
|
)
|
|
(79
|
)
|
|||||
Commercial real estate
|
(24
|
)
|
|
(10
|
)
|
|
(30
|
)
|
|
(29
|
)
|
|
(251
|
)
|
|||||
Commercial lease financing
|
(16
|
)
|
|
(30
|
)
|
|
(19
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|||||
Total commercial charge-offs
|
(1,075
|
)
|
|
(740
|
)
|
|
(644
|
)
|
|
(658
|
)
|
|
(1,108
|
)
|
|||||
Total loans and leases charged off
|
(5,619
|
)
|
|
(5,448
|
)
|
|
(6,105
|
)
|
|
(7,026
|
)
|
|
(10,369
|
)
|
|||||
Recoveries of loans and leases previously charged off
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage
|
288
|
|
|
272
|
|
|
393
|
|
|
969
|
|
|
424
|
|
|||||
Home equity
|
369
|
|
|
347
|
|
|
339
|
|
|
457
|
|
|
455
|
|
|||||
U.S. credit card
|
455
|
|
|
422
|
|
|
424
|
|
|
430
|
|
|
628
|
|
|||||
Non-U.S. credit card
|
28
|
|
|
63
|
|
|
87
|
|
|
115
|
|
|
109
|
|
|||||
Direct/Indirect consumer
|
276
|
|
|
258
|
|
|
271
|
|
|
287
|
|
|
365
|
|
|||||
Other consumer
|
50
|
|
|
27
|
|
|
31
|
|
|
39
|
|
|
39
|
|
|||||
Total consumer recoveries
|
1,466
|
|
|
1,389
|
|
|
1,545
|
|
|
2,297
|
|
|
2,020
|
|
|||||
U.S. commercial
(3)
|
142
|
|
|
175
|
|
|
172
|
|
|
214
|
|
|
287
|
|
|||||
Non-U.S. commercial
|
6
|
|
|
13
|
|
|
5
|
|
|
1
|
|
|
34
|
|
|||||
Commercial real estate
|
15
|
|
|
41
|
|
|
35
|
|
|
112
|
|
|
102
|
|
|||||
Commercial lease financing
|
11
|
|
|
9
|
|
|
10
|
|
|
19
|
|
|
29
|
|
|||||
Total commercial recoveries
|
174
|
|
|
238
|
|
|
222
|
|
|
346
|
|
|
452
|
|
|||||
Total recoveries of loans and leases previously charged off
|
1,640
|
|
|
1,627
|
|
|
1,767
|
|
|
2,643
|
|
|
2,472
|
|
|||||
Net charge-offs
|
(3,979
|
)
|
|
(3,821
|
)
|
|
(4,338
|
)
|
|
(4,383
|
)
|
|
(7,897
|
)
|
|||||
Write-offs of PCI loans
|
(207
|
)
|
|
(340
|
)
|
|
(808
|
)
|
|
(810
|
)
|
|
(2,336
|
)
|
|||||
Provision for loan and lease losses
|
3,381
|
|
|
3,581
|
|
|
3,043
|
|
|
2,231
|
|
|
3,574
|
|
|||||
Other
(4)
|
(39
|
)
|
|
(174
|
)
|
|
(82
|
)
|
|
(47
|
)
|
|
(92
|
)
|
|||||
Total allowance for loan and lease losses, December 31
|
10,393
|
|
|
11,480
|
|
|
12,234
|
|
|
14,419
|
|
|
17,428
|
|
|||||
Less: Allowance included in assets of business held for sale
(5)
|
—
|
|
|
(243
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Allowance for loan and lease losses, December 31
|
10,393
|
|
|
11,237
|
|
|
12,234
|
|
|
14,419
|
|
|
17,428
|
|
|||||
Reserve for unfunded lending commitments, January 1
|
762
|
|
|
646
|
|
|
528
|
|
|
484
|
|
|
513
|
|
|||||
Provision for unfunded lending commitments
|
15
|
|
|
16
|
|
|
118
|
|
|
44
|
|
|
(18
|
)
|
|||||
Other
(4)
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||
Reserve for unfunded lending commitments, December 31
|
777
|
|
|
762
|
|
|
646
|
|
|
528
|
|
|
484
|
|
|||||
Allowance for credit losses, December 31
|
$
|
11,170
|
|
|
$
|
11,999
|
|
|
$
|
12,880
|
|
|
$
|
14,947
|
|
|
$
|
17,912
|
|
(1)
|
Represents net charge-offs related to the non-U.S. credit card loan portfolio, which was included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
(2)
|
Includes U.S. small business commercial charge-offs of
$258 million
,
$253 million
,
$282 million
,
$345 million
and
$457 million
in
2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(3)
|
Includes U.S. small business commercial recoveries of
$43 million
,
$45 million
,
$57 million
,
$63 million
and
$98 million
in
2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(4)
|
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held-for-sale and certain other reclassifications.
|
(5)
|
Represents allowance related to the non-U.S. credit card loan portfolio, which was sold in 2017.
|
|
|
Bank of America 2017
92
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Table IV
Allowance for Credit Losses (continued)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Loan and allowance ratios
(6)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases outstanding at December 31
(7)
|
$
|
931,039
|
|
|
$
|
908,812
|
|
|
$
|
890,045
|
|
|
$
|
867,422
|
|
|
$
|
918,191
|
|
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31
(7)
|
1.12
|
%
|
|
1.26
|
%
|
|
1.37
|
%
|
|
1.66
|
%
|
|
1.90
|
%
|
|||||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31
(8)
|
1.18
|
|
|
1.36
|
|
|
1.63
|
|
|
2.05
|
|
|
2.53
|
|
|||||
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31
(9)
|
1.05
|
|
|
1.16
|
|
|
1.11
|
|
|
1.16
|
|
|
1.03
|
|
|||||
Average loans and leases outstanding
(7)
|
$
|
911,988
|
|
|
$
|
892,255
|
|
|
$
|
869,065
|
|
|
$
|
888,804
|
|
|
$
|
909,127
|
|
Net charge-offs as a percentage of average loans and leases outstanding
(7, 10)
|
0.44
|
%
|
|
0.43
|
%
|
|
0.50
|
%
|
|
0.49
|
%
|
|
0.87
|
%
|
|||||
Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding
(7)
|
0.46
|
|
|
0.47
|
|
|
0.59
|
|
|
0.58
|
|
|
1.13
|
|
|||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31
(7, 11)
|
161
|
|
|
149
|
|
|
130
|
|
|
121
|
|
|
102
|
|
|||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs
(10)
|
2.61
|
|
|
3.00
|
|
|
2.82
|
|
|
3.29
|
|
|
2.21
|
|
|||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs
|
2.48
|
|
|
2.76
|
|
|
2.38
|
|
|
2.78
|
|
|
1.70
|
|
|||||
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at December 31
(12)
|
$
|
3,971
|
|
|
$
|
3,951
|
|
|
$
|
4,518
|
|
|
$
|
5,944
|
|
|
$
|
7,680
|
|
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 December 31
(7, 12)
|
99
|
%
|
|
98
|
%
|
|
82
|
%
|
|
71
|
%
|
|
57
|
%
|
|||||
Loan and allowance ratios excluding PCI loans and the related valuation allowance
(6, 13)
:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31
(7)
|
1.10
|
%
|
|
1.24
|
%
|
|
1.31
|
%
|
|
1.51
|
%
|
|
1.67
|
%
|
|||||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31
(8)
|
1.15
|
|
|
1.31
|
|
|
1.50
|
|
|
1.79
|
|
|
2.17
|
|
|||||
Net charge-offs as a percentage of average loans and leases outstanding
(7)
|
0.44
|
|
|
0.44
|
|
|
0.51
|
|
|
0.50
|
|
|
0.90
|
|
|||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31
(7, 11)
|
156
|
|
|
144
|
|
|
122
|
|
|
107
|
|
|
87
|
|
|||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs
|
2.54
|
|
|
2.89
|
|
|
2.64
|
|
|
2.91
|
|
|
1.89
|
|
(6)
|
Loan and allowance ratios for 2016 include $
243 million
of non-U.S. credit card allowance for loan and lease losses and $
9.2 billion
of ending non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016. See footnote 1 for more information.
|
(7)
|
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of
$5.7 billion
,
$7.1 billion
, $6.9 billion, $8.7 billion and $10.0 billion at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively. Average loans accounted for under the fair value option were
$6.7 billion
,
$8.2 billion
, $7.7 billion, $9.9 billion and $9.5 billion in
2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(8)
|
Excludes consumer loans accounted for under the fair value option of
$928 million
,
$1.1 billion
, $1.9 billion, $2.1 billion and $2.2 billion at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(9)
|
Excludes commercial loans accounted for under the fair value option of
$4.8 billion
,
$6.0 billion
, $5.1 billion, $6.6 billion and $7.9 billion at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(10)
|
Net charge-offs exclude
$207 million
,
$340 million
, $808 million, $810 million and $2.3 billion of write-offs in the PCI loan portfolio in
2017
,
2016
,
2015
,
2014
and
2013
respectively. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
60
.
|
(11)
|
For more information on our definition of nonperforming loans, see page
62
and page
67
.
|
(12)
|
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 portfolio in
All Other
.
|
(13)
|
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
.
|
93
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Table V
Allocation of the Allowance for Credit Losses by Product Type
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
December 31
|
|||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
(Dollars in millions)
|
Amount
|
|
Percent
of Total |
|
Amount
|
|
Percent
of Total |
|
Amount
|
|
Percent
of Total |
|
Amount
|
|
Percent
of Total |
|
Amount
|
|
Percent
of Total |
|||||||||||||||
Allowance for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential mortgage
|
$
|
701
|
|
|
6.74
|
%
|
|
$
|
1,012
|
|
|
8.82
|
%
|
|
$
|
1,500
|
|
|
12.26
|
%
|
|
$
|
2,900
|
|
|
20.11
|
%
|
|
$
|
4,084
|
|
|
23.43
|
%
|
Home equity
|
1,019
|
|
|
9.80
|
|
|
1,738
|
|
|
15.14
|
|
|
2,414
|
|
|
19.73
|
|
|
3,035
|
|
|
21.05
|
|
|
4,434
|
|
|
25.44
|
|
|||||
U.S. credit card
|
3,368
|
|
|
32.41
|
|
|
2,934
|
|
|
25.56
|
|
|
2,927
|
|
|
23.93
|
|
|
3,320
|
|
|
23.03
|
|
|
3,930
|
|
|
22.55
|
|
|||||
Non-U.S. credit card
|
—
|
|
|
—
|
|
|
243
|
|
|
2.12
|
|
|
274
|
|
|
2.24
|
|
|
369
|
|
|
2.56
|
|
|
459
|
|
|
2.63
|
|
|||||
Direct/Indirect consumer
|
262
|
|
|
2.52
|
|
|
244
|
|
|
2.13
|
|
|
223
|
|
|
1.82
|
|
|
299
|
|
|
2.07
|
|
|
417
|
|
|
2.39
|
|
|||||
Other consumer
|
33
|
|
|
0.32
|
|
|
51
|
|
|
0.44
|
|
|
47
|
|
|
0.38
|
|
|
59
|
|
|
0.41
|
|
|
99
|
|
|
0.58
|
|
|||||
Total consumer
|
5,383
|
|
|
51.79
|
|
|
6,222
|
|
|
54.21
|
|
|
7,385
|
|
|
60.36
|
|
|
9,982
|
|
|
69.23
|
|
|
13,423
|
|
|
77.02
|
|
|||||
U.S. commercial
(1)
|
3,113
|
|
|
29.95
|
|
|
3,326
|
|
|
28.97
|
|
|
2,964
|
|
|
24.23
|
|
|
2,619
|
|
|
18.16
|
|
|
2,394
|
|
|
13.74
|
|
|||||
Non-U.S. commercial
|
803
|
|
|
7.73
|
|
|
874
|
|
|
7.61
|
|
|
754
|
|
|
6.17
|
|
|
649
|
|
|
4.50
|
|
|
576
|
|
|
3.30
|
|
|||||
Commercial real estate
|
935
|
|
|
9.00
|
|
|
920
|
|
|
8.01
|
|
|
967
|
|
|
7.90
|
|
|
1,016
|
|
|
7.05
|
|
|
917
|
|
|
5.26
|
|
|||||
Commercial lease financing
|
159
|
|
|
1.53
|
|
|
138
|
|
|
1.20
|
|
|
164
|
|
|
1.34
|
|
|
153
|
|
|
1.06
|
|
|
118
|
|
|
0.68
|
|
|||||
Total commercial
|
5,010
|
|
|
48.21
|
|
|
5,258
|
|
|
45.79
|
|
|
4,849
|
|
|
39.64
|
|
|
4,437
|
|
|
30.77
|
|
|
4,005
|
|
|
22.98
|
|
|||||
Total allowance for loan and lease losses
(2)
|
10,393
|
|
|
100.00
|
%
|
|
11,480
|
|
|
100.00
|
%
|
|
12,234
|
|
|
100.00
|
%
|
|
14,419
|
|
|
100.00
|
%
|
|
17,428
|
|
|
100.00
|
%
|
|||||
Less: Allowance included in assets of business held for sale
(3)
|
—
|
|
|
|
|
(243
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||
Allowance for loan and lease losses
|
10,393
|
|
|
|
|
11,237
|
|
|
|
|
12,234
|
|
|
|
|
14,419
|
|
|
|
|
17,428
|
|
|
|
||||||||||
Reserve for unfunded lending commitments
|
777
|
|
|
|
|
762
|
|
|
|
|
|
646
|
|
|
|
|
528
|
|
|
|
|
484
|
|
|
|
|||||||||
Allowance for credit losses
|
$
|
11,170
|
|
|
|
|
$
|
11,999
|
|
|
|
|
|
$
|
12,880
|
|
|
|
|
$
|
14,947
|
|
|
|
|
$
|
17,912
|
|
|
|
(1)
|
Includes allowance for loan and lease losses for U.S. small business commercial loans of
$439 million
,
$416 million
,
$507 million
,
$536 million
and
$462 million
at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(2)
|
Includes
$289 million
,
$419 million
,
$804 million
,
$1.7 billion
and
$2.5 billion
of valuation allowance presented with the allowance for loan and lease losses related to PCI loans at
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
(3)
|
Represents allowance for loan and lease losses related to the non-U.S. credit card loan portfolio, which was included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
|
|
|
|
|
|
|
|
||||||||
Table VI
Selected Loan Maturity Data
(1, 2)
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2017
|
||||||||||||||
(Dollars in millions)
|
Due in One
Year or Less
|
|
Due After One Year Through Five Years
|
|
Due After
Five Years
|
|
Total
|
||||||||
U.S. commercial
|
$
|
74,563
|
|
|
$
|
177,459
|
|
|
$
|
49,090
|
|
|
$
|
301,112
|
|
U.S. commercial real estate
|
14,015
|
|
|
35,741
|
|
|
5,005
|
|
|
54,761
|
|
||||
Non-U.S. and other
(3)
|
42,933
|
|
|
53,094
|
|
|
7,457
|
|
|
103,484
|
|
||||
Total selected loans
|
$
|
131,511
|
|
|
$
|
266,294
|
|
|
$
|
61,552
|
|
|
$
|
459,357
|
|
Percent of total
|
29
|
%
|
|
58
|
%
|
|
13
|
%
|
|
100
|
%
|
||||
Sensitivity of selected loans to changes in interest rates for loans due after one year:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed interest rates
|
|
|
|
$
|
17,765
|
|
|
$
|
27,992
|
|
|
|
|
||
Floating or adjustable interest rates
|
|
|
|
248,529
|
|
|
33,560
|
|
|
|
|
||||
Total
|
|
|
|
$
|
266,294
|
|
|
$
|
61,552
|
|
|
|
|
(1)
|
Loan maturities are based on the remaining maturities under contractual terms.
|
(2)
|
Includes loans accounted for under the fair value option.
|
(3)
|
Loan maturities include non-U.S. commercial and commercial real estate loans.
|
|
|
Bank of America 2017
94
|
|
|
|
Table of Contents
|
|
|
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Glossary
|
|
|
Acronyms
|
|
95
Bank of America 2017
|
|
|
|
|
Bank of America 2017
96
|
97
Bank of America 2017
|
|
|
|
|
|
|
|
|
||||||
Consolidated Statement of Income
|
|||||||||||
|
|
|
|
|
|
||||||
(Dollars in millions, except per share information)
|
2017
|
|
2016
|
|
2015
|
||||||
Interest income
|
|
|
|
|
|
|
|
|
|||
Loans and leases
|
$
|
36,221
|
|
|
$
|
33,228
|
|
|
$
|
31,918
|
|
Debt securities
|
10,471
|
|
|
9,167
|
|
|
9,178
|
|
|||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
2,390
|
|
|
1,118
|
|
|
988
|
|
|||
Trading account assets
|
4,474
|
|
|
4,423
|
|
|
4,397
|
|
|||
Other interest income
|
4,023
|
|
|
3,121
|
|
|
3,026
|
|
|||
Total interest income
|
57,579
|
|
|
51,057
|
|
|
49,507
|
|
|||
|
|
|
|
|
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|||
Deposits
|
1,931
|
|
|
1,015
|
|
|
861
|
|
|||
Short-term borrowings
|
3,538
|
|
|
2,350
|
|
|
2,387
|
|
|||
Trading account liabilities
|
1,204
|
|
|
1,018
|
|
|
1,343
|
|
|||
Long-term debt
|
6,239
|
|
|
5,578
|
|
|
5,958
|
|
|||
Total interest expense
|
12,912
|
|
|
9,961
|
|
|
10,549
|
|
|||
Net interest income
|
44,667
|
|
|
41,096
|
|
|
38,958
|
|
|||
|
|
|
|
|
|
||||||
Noninterest income
|
|
|
|
|
|
|
|
|
|||
Card income
|
5,902
|
|
|
5,851
|
|
|
5,959
|
|
|||
Service charges
|
7,818
|
|
|
7,638
|
|
|
7,381
|
|
|||
Investment and brokerage services
|
13,281
|
|
|
12,745
|
|
|
13,337
|
|
|||
Investment banking income
|
6,011
|
|
|
5,241
|
|
|
5,572
|
|
|||
Trading account profits
|
7,277
|
|
|
6,902
|
|
|
6,473
|
|
|||
Mortgage banking income
|
224
|
|
|
1,853
|
|
|
2,364
|
|
|||
Gains on sales of debt securities
|
255
|
|
|
490
|
|
|
1,138
|
|
|||
Other income
|
1,917
|
|
|
1,885
|
|
|
1,783
|
|
|||
Total noninterest income
|
42,685
|
|
|
42,605
|
|
|
44,007
|
|
|||
Total revenue, net of interest expense
|
87,352
|
|
|
83,701
|
|
|
82,965
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
3,396
|
|
|
3,597
|
|
|
3,161
|
|
|||
|
|
|
|
|
|
||||||
Noninterest expense
|
|
|
|
|
|
|
|
||||
Personnel
|
31,642
|
|
|
31,748
|
|
|
32,751
|
|
|||
Occupancy
|
4,009
|
|
|
4,038
|
|
|
4,093
|
|
|||
Equipment
|
1,692
|
|
|
1,804
|
|
|
2,039
|
|
|||
Marketing
|
1,746
|
|
|
1,703
|
|
|
1,811
|
|
|||
Professional fees
|
1,888
|
|
|
1,971
|
|
|
2,264
|
|
|||
Data processing
|
3,139
|
|
|
3,007
|
|
|
3,115
|
|
|||
Telecommunications
|
699
|
|
|
746
|
|
|
823
|
|
|||
Other general operating
|
9,928
|
|
|
10,066
|
|
|
10,721
|
|
|||
Total noninterest expense
|
54,743
|
|
|
55,083
|
|
|
57,617
|
|
|||
Income before income taxes
|
29,213
|
|
|
25,021
|
|
|
22,187
|
|
|||
Income tax expense
|
10,981
|
|
|
7,199
|
|
|
6,277
|
|
|||
Net income
|
$
|
18,232
|
|
|
$
|
17,822
|
|
|
$
|
15,910
|
|
Preferred stock dividends
|
1,614
|
|
|
1,682
|
|
|
1,483
|
|
|||
Net income applicable to common shareholders
|
$
|
16,618
|
|
|
$
|
16,140
|
|
|
$
|
14,427
|
|
|
|
|
|
|
|
||||||
Per common share information
|
|
|
|
|
|
|
|
|
|||
Earnings
|
$
|
1.63
|
|
|
$
|
1.57
|
|
|
$
|
1.38
|
|
Diluted earnings
|
1.56
|
|
|
1.49
|
|
|
1.31
|
|
|||
Dividends paid
|
0.39
|
|
|
0.25
|
|
|
0.20
|
|
|||
Average common shares issued and outstanding (in thousands)
|
10,195,646
|
|
|
10,284,147
|
|
|
10,462,282
|
|
|||
Average diluted common shares issued and outstanding (in thousands)
|
10,778,428
|
|
|
11,046,806
|
|
|
11,236,230
|
|
|
|
Bank of America 2017
98
|
|
|
|
|
|
|
||||||
Consolidated Statement of Comprehensive Income
|
|
|
|||||||||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
18,232
|
|
|
$
|
17,822
|
|
|
$
|
15,910
|
|
Other comprehensive income (loss), net-of-tax:
|
|
|
|
|
|
||||||
Net change in debt and marketable equity securities
|
61
|
|
|
(1,345
|
)
|
|
(1,580
|
)
|
|||
Net change in debit valuation adjustments
|
(293
|
)
|
|
(156
|
)
|
|
615
|
|
|||
Net change in derivatives
|
64
|
|
|
182
|
|
|
584
|
|
|||
Employee benefit plan adjustments
|
288
|
|
|
(524
|
)
|
|
394
|
|
|||
Net change in foreign currency translation adjustments
|
86
|
|
|
(87
|
)
|
|
(123
|
)
|
|||
Other comprehensive income (loss)
|
206
|
|
|
(1,930
|
)
|
|
(110
|
)
|
|||
Comprehensive income
|
$
|
18,438
|
|
|
$
|
15,892
|
|
|
$
|
15,800
|
|
99
Bank of America 2017
|
|
|
|
|
|
|
||||
Consolidated Balance Sheet
|
|||||||
|
|
||||||
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
|
|
||
Cash and due from banks
|
$
|
29,480
|
|
|
$
|
30,719
|
|
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
|
127,954
|
|
|
117,019
|
|
||
Cash and cash equivalents
|
157,434
|
|
|
147,738
|
|
||
Time deposits placed and other short-term investments
|
11,153
|
|
|
9,861
|
|
||
Federal funds sold and securities borrowed or purchased under agreements to resell (includes
$52,906
and $49,750
measured at fair value)
|
212,747
|
|
|
198,224
|
|
||
Trading account assets (includes
$106,274
and $106,057
pledged as collateral)
|
209,358
|
|
|
180,209
|
|
||
Derivative assets
|
37,762
|
|
|
42,512
|
|
||
Debt securities:
|
|
|
|
|
|||
Carried at fair value (includes
$29,830
and $29,804
pledged as collateral)
|
315,117
|
|
|
313,660
|
|
||
Held-to-maturity, at cost (fair value –
$123,299
and $115,285
;
$6,007
and
$8,233 pledged as collateral)
|
125,013
|
|
|
117,071
|
|
||
Total debt securities
|
440,130
|
|
|
430,731
|
|
||
Loans and leases (includes
$5,710
and $7,085 measured at fair value and
$40,051
and $31,805 pledged as collateral)
|
936,749
|
|
|
906,683
|
|
||
Allowance for loan and lease losses
|
(10,393
|
)
|
|
(11,237
|
)
|
||
Loans and leases, net of allowance
|
926,356
|
|
|
895,446
|
|
||
Premises and equipment, net
|
9,247
|
|
|
9,139
|
|
||
Mortgage servicing rights
|
2,302
|
|
|
2,747
|
|
||
Goodwill
|
68,951
|
|
|
68,969
|
|
||
Loans held-for-sale (includes
$2,156
and $4,026
measured at fair value)
|
11,430
|
|
|
9,066
|
|
||
Customer and other receivables
|
61,623
|
|
|
58,759
|
|
||
Assets of business held for sale (includes $619 measured at fair value at December 31, 2016)
|
—
|
|
|
10,670
|
|
||
Other assets (includes
$20,279
and $13,802
measured at fair value)
|
132,741
|
|
|
123,996
|
|
||
Total assets
|
$
|
2,281,234
|
|
|
$
|
2,188,067
|
|
|
|
|
|
||||
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
|
|||||||
Trading account assets
|
$
|
6,521
|
|
|
$
|
5,773
|
|
Loans and leases
|
48,929
|
|
|
56,001
|
|
||
Allowance for loan and lease losses
|
(1,016
|
)
|
|
(1,032
|
)
|
||
Loans and leases, net of allowance
|
47,913
|
|
|
54,969
|
|
||
Loans held-for-sale
|
27
|
|
|
188
|
|
||
All other assets
|
1,694
|
|
|
1,596
|
|
||
Total assets of consolidated variable interest entities
|
$
|
56,155
|
|
|
$
|
62,526
|
|
|
|
Bank of America 2017
100
|
|
|
|
|
||||
Consolidated Balance Sheet (continued)
|
|||||||
|
|
||||||
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Liabilities
|
|
|
|
|
|
||
Deposits in U.S. offices:
|
|
|
|
|
|
||
Noninterest-bearing
|
$
|
430,650
|
|
|
$
|
438,125
|
|
Interest-bearing (includes
$449
and $731
measured at fair value)
|
796,576
|
|
|
750,891
|
|
||
Deposits in non-U.S. offices:
|
|
|
|
||||
Noninterest-bearing
|
14,024
|
|
|
12,039
|
|
||
Interest-bearing
|
68,295
|
|
|
59,879
|
|
||
Total deposits
|
1,309,545
|
|
|
1,260,934
|
|
||
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes
$36,182
and $35,766
measured at fair value)
|
176,865
|
|
|
170,291
|
|
||
Trading account liabilities
|
81,187
|
|
|
63,031
|
|
||
Derivative liabilities
|
34,300
|
|
|
39,480
|
|
||
Short-term borrowings (includes
$1,494
and $2,024
measured at fair value)
|
32,666
|
|
|
23,944
|
|
||
Accrued expenses and other liabilities (includes
$22,840
and $14,630
measured at fair value and
$777
and $762 of reserve for unfunded lending commitments)
|
152,123
|
|
|
147,369
|
|
||
Long-term debt (includes
$31,786
and $30,037
measured at fair value)
|
227,402
|
|
|
216,823
|
|
||
Total liabilities
|
2,014,088
|
|
|
1,921,872
|
|
||
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 –
3,837,683
and 3,887,329 shares
|
22,323
|
|
|
25,220
|
|
||
Common stock and additional paid-in capital, $0.01 par value; authorized –
12,800,000,000
shares; issued and outstanding –
10,287,302,431
and 10,052,625,604 shares
|
138,089
|
|
|
147,038
|
|
||
Retained earnings
|
113,816
|
|
|
101,225
|
|
||
Accumulated other comprehensive income (loss)
|
(7,082
|
)
|
|
(7,288
|
)
|
||
Total shareholders’ equity
|
267,146
|
|
|
266,195
|
|
||
Total liabilities and shareholders’ equity
|
$
|
2,281,234
|
|
|
$
|
2,188,067
|
|
|
|
|
|
||||
Liabilities of consolidated variable interest entities included in total liabilities above
|
|
|
|
|
|
||
Short-term borrowings
|
$
|
312
|
|
|
$
|
348
|
|
Long-term debt (includes
$9,872
and $10,417 of non-recourse debt)
|
9,873
|
|
|
10,646
|
|
||
All other liabilities (includes
$34
and $38 of non-recourse liabilities)
|
37
|
|
|
41
|
|
||
Total liabilities of consolidated variable interest entities
|
$
|
10,222
|
|
|
$
|
11,035
|
|
101
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
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
|
|
|
$
|
74,731
|
|
|
$
|
(4,022
|
)
|
|
$
|
243,476
|
|
Cumulative adjustment for accounting change related to debit valuation adjustments
|
|
|
|
|
|
|
|
|
|
1,226
|
|
|
(1,226
|
)
|
|
—
|
|
|||||
Cumulative adjustment for accounting change related to retirement-eligible stock-based compensation expense
|
|
|
|
|
|
|
|
|
(635
|
)
|
|
|
|
|
(635
|
)
|
||||||
Net income
|
|
|
|
|
|
|
|
|
|
15,910
|
|
|
|
|
15,910
|
|
||||||
Net change in debt and marketable equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,580
|
)
|
|
(1,580
|
)
|
|||||
Net change in debit valuation adjustments
|
|
|
|
|
|
|
|
|
615
|
|
|
615
|
|
|||||||||
Net change in derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
584
|
|
|
584
|
|
|||||
Employee benefit plan adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
394
|
|
|
394
|
|
|||||
Net change in foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
(123
|
)
|
|
(123
|
)
|
||||||
Dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common
|
|
|
|
|
|
|
|
(2,091
|
)
|
|
|
|
|
(2,091
|
)
|
|||||||
Preferred
|
|
|
|
|
|
|
|
|
(1,483
|
)
|
|
|
|
|
(1,483
|
)
|
||||||
Issuance of preferred stock
|
2,964
|
|
|
|
|
|
|
|
|
|
|
2,964
|
|
|||||||||
Common stock issued under employee plans, net, and related tax effects
|
|
|
4,054
|
|
|
(42
|
)
|
|
|
|
|
|
|
|
(42
|
)
|
||||||
Common stock repurchased
|
|
|
(140,331
|
)
|
|
(2,374
|
)
|
|
|
|
|
|
(2,374
|
)
|
||||||||
Balance, December 31, 2015
|
$
|
22,273
|
|
|
10,380,265
|
|
|
$
|
151,042
|
|
|
$
|
87,658
|
|
|
$
|
(5,358
|
)
|
|
$
|
255,615
|
|
Net income
|
|
|
|
|
|
|
17,822
|
|
|
|
|
17,822
|
|
|||||||||
Net change in debt and marketable equity securities
|
|
|
|
|
|
|
|
|
(1,345
|
)
|
|
(1,345
|
)
|
|||||||||
Net change in debit valuation adjustments
|
|
|
|
|
|
|
|
|
(156
|
)
|
|
(156
|
)
|
|||||||||
Net change in derivatives
|
|
|
|
|
|
|
|
|
182
|
|
|
182
|
|
|||||||||
Employee benefit plan adjustments
|
|
|
|
|
|
|
|
|
(524
|
)
|
|
(524
|
)
|
|||||||||
Net change in foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
(87
|
)
|
|
(87
|
)
|
|||||||||
Dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common
|
|
|
|
|
|
|
(2,573
|
)
|
|
|
|
(2,573
|
)
|
|||||||||
Preferred
|
|
|
|
|
|
|
(1,682
|
)
|
|
|
|
(1,682
|
)
|
|||||||||
Issuance of preferred stock
|
2,947
|
|
|
|
|
|
|
|
|
|
|
2,947
|
|
|||||||||
Common stock issued under employee plans, net, and related tax effects
|
|
|
5,111
|
|
|
1,108
|
|
|
|
|
|
|
1,108
|
|
||||||||
Common stock repurchased
|
|
|
(332,750
|
)
|
|
(5,112
|
)
|
|
|
|
|
|
(5,112
|
)
|
||||||||
Balance, December 31, 2016
|
$
|
25,220
|
|
|
10,052,626
|
|
|
$
|
147,038
|
|
|
$
|
101,225
|
|
|
$
|
(7,288
|
)
|
|
$
|
266,195
|
|
Net income
|
|
|
|
|
|
|
18,232
|
|
|
|
|
18,232
|
|
|||||||||
Net change in debt and marketable equity securities
|
|
|
|
|
|
|
|
|
61
|
|
|
61
|
|
|||||||||
Net change in debit valuation adjustments
|
|
|
|
|
|
|
|
|
(293
|
)
|
|
(293
|
)
|
|||||||||
Net change in derivatives
|
|
|
|
|
|
|
|
|
64
|
|
|
64
|
|
|||||||||
Employee benefit plan adjustments
|
|
|
|
|
|
|
|
|
288
|
|
|
288
|
|
|||||||||
Net change in foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
86
|
|
|
86
|
|
|||||||||
Dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common
|
|
|
|
|
|
|
(4,027
|
)
|
|
|
|
(4,027
|
)
|
|||||||||
Preferred
|
|
|
|
|
|
|
(1,578
|
)
|
|
|
|
(1,578
|
)
|
|||||||||
Common stock issued in connection with exercise of warrants and exchange of preferred stock
|
(2,897
|
)
|
|
700,000
|
|
|
2,933
|
|
|
(36
|
)
|
|
|
|
—
|
|
||||||
Common stock issued under employee plans, net and other
|
|
|
43,329
|
|
|
932
|
|
|
|
|
|
|
932
|
|
||||||||
Common stock repurchased
|
|
|
(508,653
|
)
|
|
(12,814
|
)
|
|
|
|
|
|
(12,814
|
)
|
||||||||
Balance, December 31, 2017
|
$
|
22,323
|
|
|
10,287,302
|
|
|
$
|
138,089
|
|
|
$
|
113,816
|
|
|
$
|
(7,082
|
)
|
|
$
|
267,146
|
|
|
|
Bank of America 2017
102
|
|
|
|
|
|
|
||||||
Consolidated Statement of Cash Flows
|
|||||||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
18,232
|
|
|
$
|
17,822
|
|
|
$
|
15,910
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Provision for credit losses
|
3,396
|
|
|
3,597
|
|
|
3,161
|
|
|||
Gains on sales of debt securities
|
(255
|
)
|
|
(490
|
)
|
|
(1,138
|
)
|
|||
Depreciation and premises improvements amortization
|
1,482
|
|
|
1,511
|
|
|
1,555
|
|
|||
Amortization of intangibles
|
621
|
|
|
730
|
|
|
834
|
|
|||
Net amortization of premium/discount on debt securities
|
2,251
|
|
|
3,134
|
|
|
2,613
|
|
|||
Deferred income taxes
|
8,175
|
|
|
5,793
|
|
|
2,967
|
|
|||
Stock-based compensation
|
1,649
|
|
|
1,367
|
|
|
(89
|
)
|
|||
Loans held-for-sale:
|
|
|
|
|
|
||||||
Originations and purchases
|
(43,506
|
)
|
|
(33,107
|
)
|
|
(37,933
|
)
|
|||
Proceeds from sales and paydowns of loans originally classified as held-for-sale
|
40,059
|
|
|
31,376
|
|
|
36,204
|
|
|||
Net change in:
|
|
|
|
|
|
||||||
Trading and derivative instruments
|
(13,939
|
)
|
|
(866
|
)
|
|
2,550
|
|
|||
Other assets
|
(19,859
|
)
|
|
(13,802
|
)
|
|
2,645
|
|
|||
Accrued expenses and other liabilities
|
4,673
|
|
|
(35
|
)
|
|
730
|
|
|||
Other operating activities, net
|
7,424
|
|
|
1,331
|
|
|
(1,612
|
)
|
|||
Net cash provided by operating activities
|
10,403
|
|
|
18,361
|
|
|
28,397
|
|
|||
Investing activities
|
|
|
|
|
|
|
|
|
|||
Net change in:
|
|
|
|
|
|
||||||
Time deposits placed and other short-term investments
|
(1,292
|
)
|
|
(2,117
|
)
|
|
50
|
|
|||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
(14,523
|
)
|
|
(5,742
|
)
|
|
(659
|
)
|
|||
Debt securities carried at fair value:
|
|
|
|
|
|
||||||
Proceeds from sales
|
73,353
|
|
|
71,547
|
|
|
137,569
|
|
|||
Proceeds from paydowns and maturities
|
93,874
|
|
|
108,592
|
|
|
92,498
|
|
|||
Purchases
|
(166,975
|
)
|
|
(189,061
|
)
|
|
(219,412
|
)
|
|||
Held-to-maturity debt securities:
|
|
|
|
|
|
||||||
Proceeds from paydowns and maturities
|
16,653
|
|
|
18,677
|
|
|
12,872
|
|
|||
Purchases
|
(25,088
|
)
|
|
(39,899
|
)
|
|
(36,575
|
)
|
|||
Loans and leases:
|
|
|
|
|
|
||||||
Proceeds from sales
|
11,761
|
|
|
18,230
|
|
|
22,316
|
|
|||
Purchases
|
(6,846
|
)
|
|
(12,283
|
)
|
|
(12,629
|
)
|
|||
Other changes in loans and leases, net
|
(41,104
|
)
|
|
(31,194
|
)
|
|
(51,895
|
)
|
|||
Other investing activities, net
|
8,180
|
|
|
107
|
|
|
294
|
|
|||
Net cash used in investing activities
|
(52,007
|
)
|
|
(63,143
|
)
|
|
(55,571
|
)
|
|||
Financing activities
|
|
|
|
|
|
|
|
|
|||
Net change in:
|
|
|
|
|
|
||||||
Deposits
|
48,611
|
|
|
63,675
|
|
|
78,347
|
|
|||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
7,024
|
|
|
(4,000
|
)
|
|
(26,986
|
)
|
|||
Short-term borrowings
|
8,538
|
|
|
(4,014
|
)
|
|
(3,074
|
)
|
|||
Long-term debt:
|
|
|
|
|
|
||||||
Proceeds from issuance
|
53,486
|
|
|
35,537
|
|
|
43,670
|
|
|||
Retirement of long-term debt
|
(49,553
|
)
|
|
(51,849
|
)
|
|
(40,365
|
)
|
|||
Preferred stock: Proceeds from issuance
|
—
|
|
|
2,947
|
|
|
2,964
|
|
|||
Common stock repurchased
|
(12,814
|
)
|
|
(5,112
|
)
|
|
(2,374
|
)
|
|||
Cash dividends paid
|
(5,700
|
)
|
|
(4,194
|
)
|
|
(3,574
|
)
|
|||
Other financing activities, net
|
(397
|
)
|
|
(63
|
)
|
|
(73
|
)
|
|||
Net cash provided by financing activities
|
49,195
|
|
|
32,927
|
|
|
48,535
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
2,105
|
|
|
240
|
|
|
(597
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
9,696
|
|
|
(11,615
|
)
|
|
20,764
|
|
|||
Cash and cash equivalents at January 1
|
147,738
|
|
|
159,353
|
|
|
138,589
|
|
|||
Cash and cash equivalents at December 31
|
$
|
157,434
|
|
|
$
|
147,738
|
|
|
$
|
159,353
|
|
Supplemental cash flow disclosures
|
|
|
|
|
|
||||||
Interest paid
|
$
|
12,852
|
|
|
$
|
10,510
|
|
|
$
|
10,623
|
|
Income taxes paid
|
3,297
|
|
|
1,633
|
|
|
2,326
|
|
|||
Income taxes refunded
|
(62
|
)
|
|
(590
|
)
|
|
(151
|
)
|
103
Bank of America 2017
|
|
|
|
|
Bank of America 2017
104
|
105
Bank of America 2017
|
|
|
|
|
Bank of America 2017
106
|
107
Bank of America 2017
|
|
|
|
|
Bank of America 2017
108
|
109
Bank of America 2017
|
|
|
|
|
Bank of America 2017
110
|
Level 1
|
Unadjusted quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in OTC markets.
|
Level 2
|
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts where fair value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes U.S. government and agency mortgage-backed (MBS) and asset-backed securities (ABS), corporate debt securities, derivative contracts, certain loans and LHFS.
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and that are significant to the overall fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments for which the determination of fair value requires significant management judgment or estimation. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. This category generally includes retained residual interests in securitizations, consumer MSRs, certain ABS, highly structured, complex or long-dated derivative contracts, certain loans and LHFS, IRLCs and certain CDOs where independent pricing information cannot be obtained for a significant portion of the underlying assets.
|
111
Bank of America 2017
|
|
|
|
|
Bank of America 2017
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
December 31, 2017
|
||||||||||||||||||||||||
|
|
|
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
(2)
|
$
|
15,416.4
|
|
|
$
|
175.1
|
|
|
$
|
2.9
|
|
|
$
|
178.0
|
|
|
$
|
172.5
|
|
|
$
|
1.7
|
|
|
$
|
174.2
|
|
Futures and forwards
(2)
|
4,332.4
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||||||
Written options
|
1,170.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35.5
|
|
|
—
|
|
|
35.5
|
|
|||||||
Purchased options
|
1,184.5
|
|
|
37.6
|
|
|
—
|
|
|
37.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Swaps
|
2,011.1
|
|
|
35.6
|
|
|
2.2
|
|
|
37.8
|
|
|
36.1
|
|
|
2.7
|
|
|
38.8
|
|
|||||||
Spot, futures and forwards
|
3,543.3
|
|
|
39.1
|
|
|
0.7
|
|
|
39.8
|
|
|
39.1
|
|
|
0.8
|
|
|
39.9
|
|
|||||||
Written options
|
291.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|||||||
Purchased options
|
271.9
|
|
|
4.6
|
|
|
—
|
|
|
4.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Swaps
|
265.6
|
|
|
4.8
|
|
|
—
|
|
|
4.8
|
|
|
4.4
|
|
|
—
|
|
|
4.4
|
|
|||||||
Futures and forwards
|
106.9
|
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|||||||
Written options
|
480.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.9
|
|
|
—
|
|
|
23.9
|
|
|||||||
Purchased options
|
428.2
|
|
|
24.7
|
|
|
—
|
|
|
24.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Swaps
|
46.1
|
|
|
1.8
|
|
|
—
|
|
|
1.8
|
|
|
4.6
|
|
|
—
|
|
|
4.6
|
|
|||||||
Futures and forwards
|
47.1
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||||||
Written options
|
21.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|||||||
Purchased options
|
22.9
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Credit derivatives
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Credit default swaps
(2)
|
470.9
|
|
|
4.1
|
|
|
—
|
|
|
4.1
|
|
|
11.1
|
|
|
—
|
|
|
11.1
|
|
|||||||
Total return swaps/options
|
54.1
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|||||||
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Credit default swaps
(2)
|
448.2
|
|
|
10.6
|
|
|
—
|
|
|
10.6
|
|
|
3.6
|
|
|
—
|
|
|
3.6
|
|
|||||||
Total return swaps/options
|
55.2
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||||||
Gross derivative assets/liabilities
|
|
|
$
|
345.8
|
|
|
$
|
5.8
|
|
|
$
|
351.6
|
|
|
$
|
340.8
|
|
|
$
|
5.2
|
|
|
$
|
346.0
|
|
||
Less: Legally enforceable master netting agreements
(2)
|
|
|
|
|
|
|
|
|
|
(279.2
|
)
|
|
|
|
|
|
|
|
(279.2
|
)
|
|||||||
Less: Cash collateral received/paid
(2)
|
|
|
|
|
|
|
|
|
|
(34.6
|
)
|
|
|
|
|
|
|
|
(32.5
|
)
|
|||||||
Total derivative assets/liabilities
|
|
|
|
|
|
|
|
|
|
$
|
37.8
|
|
|
|
|
|
|
|
|
$
|
34.3
|
|
(1)
|
Represents the total contract/notional amount of derivative assets and liabilities outstanding.
|
(2)
|
Derivative assets and liabilities reflect the effects of contractual amendments by
two
central clearing counterparties to legally re-characterize daily cash variation margin from collateral, which secures an outstanding exposure, to settlement, which discharges an outstanding exposure. One of these central clearing counterparties amended its governing documents, which became effective in January 2017. In addition, the Corporation elected to transfer its existing positions to the settlement platform for the other central clearing counterparty in September 2017.
|
(3)
|
The net derivative asset and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were
$6.4 billion
and
$435.1 billion
at
December 31, 2017
.
|
113
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
December 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
|
$
|
16,977.7
|
|
|
$
|
385.0
|
|
|
$
|
5.9
|
|
|
$
|
390.9
|
|
|
$
|
386.9
|
|
|
$
|
2.0
|
|
|
$
|
388.9
|
|
Futures and forwards
|
5,609.5
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|||||||
Written options
|
1,146.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52.2
|
|
|
—
|
|
|
52.2
|
|
|||||||
Purchased options
|
1,178.7
|
|
|
53.3
|
|
|
—
|
|
|
53.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Swaps
|
1,828.6
|
|
|
54.6
|
|
|
4.2
|
|
|
58.8
|
|
|
58.8
|
|
|
6.2
|
|
|
65.0
|
|
|||||||
Spot, futures and forwards
|
3,410.7
|
|
|
58.8
|
|
|
1.7
|
|
|
60.5
|
|
|
56.6
|
|
|
0.8
|
|
|
57.4
|
|
|||||||
Written options
|
356.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
9.4
|
|
|||||||
Purchased options
|
342.4
|
|
|
8.9
|
|
|
—
|
|
|
8.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Swaps
|
189.7
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|||||||
Futures and forwards
|
68.7
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|||||||
Written options
|
431.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.4
|
|
|
—
|
|
|
21.4
|
|
|||||||
Purchased options
|
385.5
|
|
|
23.9
|
|
|
—
|
|
|
23.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Swaps
|
48.2
|
|
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|||||||
Futures and forwards
|
49.1
|
|
|
3.6
|
|
|
—
|
|
|
3.6
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||||||
Written options
|
29.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|||||||
Purchased options
|
28.9
|
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Credit derivatives
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Credit default swaps
|
604.0
|
|
|
8.1
|
|
|
—
|
|
|
8.1
|
|
|
10.3
|
|
|
—
|
|
|
10.3
|
|
|||||||
Total return swaps/options
|
21.2
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|||||||
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit default swaps
|
614.4
|
|
|
10.7
|
|
|
—
|
|
|
10.7
|
|
|
7.5
|
|
|
—
|
|
|
7.5
|
|
|||||||
Total return swaps/options
|
25.4
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||||||
Gross derivative assets/liabilities
|
|
|
|
$
|
619.3
|
|
|
$
|
11.8
|
|
|
$
|
631.1
|
|
|
$
|
619.3
|
|
|
$
|
9.0
|
|
|
$
|
628.3
|
|
|
Less: Legally enforceable master netting agreements
|
|
|
|
|
|
|
|
|
|
(545.3
|
)
|
|
|
|
|
|
|
|
(545.3
|
)
|
|||||||
Less: Cash collateral received/paid
|
|
|
|
|
|
|
|
|
|
(43.3
|
)
|
|
|
|
|
|
|
|
(43.5
|
)
|
|||||||
Total derivative assets/liabilities
|
|
|
|
|
|
|
|
|
|
$
|
42.5
|
|
|
|
|
|
|
|
|
$
|
39.5
|
|
(1)
|
Represents the total contract/notional amount of derivative assets and liabilities outstanding.
|
(2)
|
The net derivative asset and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were
$2.2 billion
and
$548.9 billion
at
December 31, 2016
.
|
|
|
Bank of America 2017
114
|
|
|
|
|
|
|
|
|
||||||||
Offsetting of Derivatives
(1)
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Derivative
Assets
|
|
Derivative Liabilities
|
|
Derivative
Assets
|
|
Derivative Liabilities
|
||||||||
(Dollars in billions)
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||
Over-the-counter
|
$
|
211.7
|
|
|
$
|
206.0
|
|
|
$
|
267.3
|
|
|
$
|
258.2
|
|
Over-the-counter cleared
(2)
|
1.9
|
|
|
1.8
|
|
|
177.2
|
|
|
182.8
|
|
||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
78.7
|
|
|
80.8
|
|
|
124.3
|
|
|
126.7
|
|
||||
Over-the-counter cleared
|
0.9
|
|
|
0.7
|
|
|
0.3
|
|
|
0.3
|
|
||||
Equity contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
18.3
|
|
|
16.2
|
|
|
15.6
|
|
|
13.7
|
|
||||
Exchange-traded
|
9.1
|
|
|
8.5
|
|
|
11.4
|
|
|
10.8
|
|
||||
Commodity contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
2.9
|
|
|
4.4
|
|
|
3.7
|
|
|
4.9
|
|
||||
Exchange-traded
|
0.7
|
|
|
0.8
|
|
|
1.1
|
|
|
1.0
|
|
||||
Credit derivatives
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
9.1
|
|
|
9.6
|
|
|
15.3
|
|
|
14.7
|
|
||||
Over-the-counter cleared
(2)
|
6.1
|
|
|
6.0
|
|
|
4.3
|
|
|
4.3
|
|
||||
Total gross derivative assets/liabilities, before netting
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
320.7
|
|
|
317.0
|
|
|
426.2
|
|
|
418.2
|
|
||||
Exchange-traded
|
9.8
|
|
|
9.3
|
|
|
12.5
|
|
|
11.8
|
|
||||
Over-the-counter cleared
(2)
|
8.9
|
|
|
8.5
|
|
|
181.8
|
|
|
187.4
|
|
||||
Less: Legally enforceable master netting agreements and cash collateral received/paid
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
(296.9
|
)
|
|
(294.6
|
)
|
|
(398.2
|
)
|
|
(392.6
|
)
|
||||
Exchange-traded
|
(8.6
|
)
|
|
(8.6
|
)
|
|
(8.9
|
)
|
|
(8.9
|
)
|
||||
Over-the-counter cleared
(2)
|
(8.3
|
)
|
|
(8.5
|
)
|
|
(181.5
|
)
|
|
(187.3
|
)
|
||||
Derivative assets/liabilities, after netting
|
25.6
|
|
|
23.1
|
|
|
31.9
|
|
|
28.6
|
|
||||
Other gross derivative assets/liabilities
(3)
|
12.2
|
|
|
11.2
|
|
|
10.6
|
|
|
10.9
|
|
||||
Total derivative assets/liabilities
|
37.8
|
|
|
34.3
|
|
|
42.5
|
|
|
39.5
|
|
||||
Less: Financial instruments collateral
(4)
|
(11.2
|
)
|
|
(10.4
|
)
|
|
(13.5
|
)
|
|
(10.5
|
)
|
||||
Total net derivative assets/liabilities
|
$
|
26.6
|
|
|
$
|
23.9
|
|
|
$
|
29.0
|
|
|
$
|
29.0
|
|
(1)
|
OTC derivatives include bilateral transactions between the Corporation and a particular counterparty. OTC-cleared derivatives include bilateral transactions between the Corporation and a counterparty where the transaction is cleared through a clearinghouse, and exchange-traded derivatives include listed options transacted on an exchange.
|
(2)
|
Derivative assets and liabilities reflect the effects of contractual amendments by
two
central clearing counterparties to legally re-characterize daily cash variation margin from collateral, which secures an outstanding exposure, to settlement, which discharges an outstanding exposure. One of these central clearing counterparties amended its governing documents, which became effective in January 2017. In addition, the Corporation elected to transfer its existing positions to the settlement platform for the other central clearing counterparty in September 2017.
|
(3)
|
Consists of derivatives entered into under master netting agreements where the enforceability of these agreements is uncertain under bankruptcy laws in some countries or industries.
|
(4)
|
Amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. Financial instruments collateral includes securities collateral received or pledged and cash securities held and posted at third-party custodians that are not offset on the Consolidated Balance Sheet but shown as a reduction to derive net derivative assets and liabilities.
|
115
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Derivatives Designated as Fair Value Hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gains (Losses)
|
Derivative
|
|
Hedged Item
|
|
Hedge Ineffectiveness
|
||||||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
Interest rate risk on long-term debt
(1)
|
$
|
(1,537
|
)
|
|
$
|
(1,488
|
)
|
|
$
|
(718
|
)
|
|
$
|
1,045
|
|
|
$
|
646
|
|
|
$
|
(77
|
)
|
|
$
|
(492
|
)
|
|
$
|
(842
|
)
|
|
$
|
(795
|
)
|
Interest rate and foreign currency risk on long-term debt
(1)
|
1,811
|
|
|
(941
|
)
|
|
(1,898
|
)
|
|
(1,767
|
)
|
|
944
|
|
|
1,812
|
|
|
44
|
|
|
3
|
|
|
(86
|
)
|
|||||||||
Interest rate risk on available-for-sale securities
(2)
|
(67
|
)
|
|
227
|
|
|
105
|
|
|
35
|
|
|
(286
|
)
|
|
(127
|
)
|
|
(32
|
)
|
|
(59
|
)
|
|
(22
|
)
|
|||||||||
Total
|
$
|
207
|
|
|
$
|
(2,202
|
)
|
|
$
|
(2,511
|
)
|
|
$
|
(687
|
)
|
|
$
|
1,304
|
|
|
$
|
1,608
|
|
|
$
|
(480
|
)
|
|
$
|
(898
|
)
|
|
$
|
(903
|
)
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives Designated as Cash Flow and Net Investment Hedges
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gains (Losses) Recognized in
Accumulated OCI on Derivatives
|
|
Gains (Losses) in Income
Reclassified from Accumulated OCI |
||||||||||||||||||||
(Dollars in millions, amounts pre-tax)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest rate risk on variable-rate portfolios
|
$
|
(109
|
)
|
|
$
|
(340
|
)
|
|
$
|
95
|
|
|
$
|
(327
|
)
|
|
$
|
(553
|
)
|
|
$
|
(974
|
)
|
Price risk on certain restricted stock awards
(1)
|
59
|
|
|
41
|
|
|
(40
|
)
|
|
148
|
|
|
(32
|
)
|
|
91
|
|
||||||
Total
(2)
|
$
|
(50
|
)
|
|
$
|
(299
|
)
|
|
$
|
55
|
|
|
$
|
(179
|
)
|
|
$
|
(585
|
)
|
|
$
|
(883
|
)
|
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange risk
(3)
|
$
|
(1,588
|
)
|
|
$
|
1,636
|
|
|
$
|
3,010
|
|
|
$
|
1,782
|
|
|
$
|
3
|
|
|
$
|
153
|
|
(1)
|
Gains (losses) recognized in accumulated OCI are primarily related to the change in the Corporation’s stock price for the period.
|
(2)
|
In
2017
,
2016
and
2015
, amounts representing hedge ineffectiveness were not significant.
|
(3)
|
In
2017
, substantially all of the gains in income reclassified from accumulated OCI were comprised of the gain recognized on derivatives used to hedge the currency risk of the Corporation’s net investment in its non-U.S. consumer credit card business, which was sold in 2017. For more information, see
Note 14 – Accumulated Other Comprehensive Income (Loss)
. In
2017
,
2016
and
2015
, amounts excluded from effectiveness testing in total were
$120 million
,
$325 million
and
$298 million
.
|
|
|
Bank of America 2017
116
|
|
|
|
|
|
|
||||||
Other Risk Management Derivatives
|
|||||||||||
|
|
|
|
|
|
||||||
Gains (Losses)
|
|
|
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Interest rate risk on mortgage banking income
(1)
|
$
|
8
|
|
|
$
|
461
|
|
|
$
|
254
|
|
Credit risk on loans
(2)
|
(6
|
)
|
|
(107
|
)
|
|
(22
|
)
|
|||
Interest rate and foreign currency risk on ALM activities
(3)
|
(36
|
)
|
|
(754
|
)
|
|
(222
|
)
|
|||
Price risk on certain restricted stock awards
(4)
|
301
|
|
|
9
|
|
|
(267
|
)
|
(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 LHFS, all of which are measured at fair value with changes in fair value recorded in mortgage banking income. The fair value of IRLCs is derived from the fair value of related mortgage loans which is based on observable market data and includes the expected net future cash flows related to servicing of the loans. 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 $
220 million
,
$533 million
and
$714 million
for
2017
,
2016
and
2015
, respectively.
|
(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.
|
117
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales and Trading Revenue
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Trading Account Profits
|
|
Net Interest Income
|
|
Other
(1)
|
|
Total
|
||||||||
(Dollars in millions)
|
2017
|
||||||||||||||
Interest rate risk
|
$
|
1,145
|
|
|
$
|
980
|
|
|
$
|
417
|
|
|
$
|
2,542
|
|
Foreign exchange risk
|
1,417
|
|
|
(1
|
)
|
|
(162
|
)
|
|
1,254
|
|
||||
Equity risk
|
2,689
|
|
|
(525
|
)
|
|
1,904
|
|
|
4,068
|
|
||||
Credit risk
|
1,251
|
|
|
2,537
|
|
|
577
|
|
|
4,365
|
|
||||
Other risk
|
204
|
|
|
33
|
|
|
75
|
|
|
312
|
|
||||
Total sales and trading revenue
|
$
|
6,706
|
|
|
$
|
3,024
|
|
|
$
|
2,811
|
|
|
$
|
12,541
|
|
|
|
|
|
|
|
|
|
||||||||
|
2016
|
||||||||||||||
Interest rate risk
|
$
|
1,613
|
|
|
$
|
1,410
|
|
|
$
|
304
|
|
|
$
|
3,327
|
|
Foreign exchange risk
|
1,360
|
|
|
(10
|
)
|
|
(154
|
)
|
|
1,196
|
|
||||
Equity risk
|
1,917
|
|
|
20
|
|
|
2,074
|
|
|
4,011
|
|
||||
Credit risk
|
1,250
|
|
|
2,569
|
|
|
424
|
|
|
4,243
|
|
||||
Other risk
|
407
|
|
|
(20
|
)
|
|
40
|
|
|
427
|
|
||||
Total sales and trading revenue
|
$
|
6,547
|
|
|
$
|
3,969
|
|
|
$
|
2,688
|
|
|
$
|
13,204
|
|
|
|
|
|
|
|
|
|
||||||||
|
2015
|
||||||||||||||
Interest rate risk
|
$
|
1,290
|
|
|
$
|
1,333
|
|
|
$
|
(259
|
)
|
|
$
|
2,364
|
|
Foreign exchange risk
|
1,322
|
|
|
(10
|
)
|
|
(117
|
)
|
|
1,195
|
|
||||
Equity risk
|
2,115
|
|
|
56
|
|
|
2,152
|
|
|
4,323
|
|
||||
Credit risk
|
920
|
|
|
2,333
|
|
|
445
|
|
|
3,698
|
|
||||
Other risk
|
459
|
|
|
(81
|
)
|
|
62
|
|
|
440
|
|
||||
Total sales and trading revenue
|
$
|
6,106
|
|
|
$
|
3,631
|
|
|
$
|
2,283
|
|
|
$
|
12,020
|
|
(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 $
2.0 billion
,
$2.1 billion
, and
$2.2 billion
for
2017
,
2016
, and
2015
, respectively.
|
|
|
Bank of America 2017
118
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Derivative Instruments
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Less than
One Year
|
|
One to
Three Years
|
|
Three to
Five Years
|
|
Over Five
Years
|
|
Total
|
||||||||||
|
December 31, 2017
|
||||||||||||||||||
(Dollars in millions)
|
Carrying Value
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment grade
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
61
|
|
|
$
|
245
|
|
|
$
|
313
|
|
Non-investment grade
|
203
|
|
|
453
|
|
|
484
|
|
|
2,133
|
|
|
3,273
|
|
|||||
Total
|
207
|
|
|
456
|
|
|
545
|
|
|
2,378
|
|
|
3,586
|
|
|||||
Total return swaps/options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment grade
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|||||
Non-investment grade
|
150
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
153
|
|
|||||
Total
|
180
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
183
|
|
|||||
Total credit derivatives
|
$
|
387
|
|
|
$
|
456
|
|
|
$
|
545
|
|
|
$
|
2,381
|
|
|
$
|
3,769
|
|
Credit-related notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment grade
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
689
|
|
|
$
|
696
|
|
Non-investment grade
|
12
|
|
|
4
|
|
|
34
|
|
|
1,548
|
|
|
1,598
|
|
|||||
Total credit-related notes
|
$
|
12
|
|
|
$
|
4
|
|
|
$
|
41
|
|
|
$
|
2,237
|
|
|
$
|
2,294
|
|
|
Maximum Payout/Notional
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment grade
|
$
|
61,388
|
|
|
$
|
115,480
|
|
|
$
|
107,081
|
|
|
$
|
21,579
|
|
|
$
|
305,528
|
|
Non-investment grade
|
39,312
|
|
|
49,843
|
|
|
39,098
|
|
|
14,420
|
|
|
142,673
|
|
|||||
Total
|
100,700
|
|
|
165,323
|
|
|
146,179
|
|
|
35,999
|
|
|
448,201
|
|
|||||
Total return swaps/options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment grade
|
37,394
|
|
|
2,581
|
|
|
—
|
|
|
143
|
|
|
40,118
|
|
|||||
Non-investment grade
|
13,751
|
|
|
514
|
|
|
143
|
|
|
697
|
|
|
15,105
|
|
|||||
Total
|
51,145
|
|
|
3,095
|
|
|
143
|
|
|
840
|
|
|
55,223
|
|
|||||
Total credit derivatives
|
$
|
151,845
|
|
|
$
|
168,418
|
|
|
$
|
146,322
|
|
|
$
|
36,839
|
|
|
$
|
503,424
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2016
|
||||||||||||||||||
|
Carrying Value
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
10
|
|
|
$
|
64
|
|
|
$
|
535
|
|
|
$
|
783
|
|
|
$
|
1,392
|
|
Non-investment grade
|
771
|
|
|
1,053
|
|
|
908
|
|
|
3,339
|
|
|
6,071
|
|
|||||
Total
|
781
|
|
|
1,117
|
|
|
1,443
|
|
|
4,122
|
|
|
7,463
|
|
|||||
Total return swaps/options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment grade
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Non-investment grade
|
127
|
|
|
10
|
|
|
2
|
|
|
1
|
|
|
140
|
|
|||||
Total
|
143
|
|
|
10
|
|
|
2
|
|
|
1
|
|
|
156
|
|
|||||
Total credit derivatives
|
$
|
924
|
|
|
$
|
1,127
|
|
|
$
|
1,445
|
|
|
$
|
4,123
|
|
|
$
|
7,619
|
|
Credit-related notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment grade
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
542
|
|
|
$
|
1,423
|
|
|
$
|
1,977
|
|
Non-investment grade
|
70
|
|
|
22
|
|
|
60
|
|
|
1,318
|
|
|
1,470
|
|
|||||
Total credit-related notes
|
$
|
70
|
|
|
$
|
34
|
|
|
$
|
602
|
|
|
$
|
2,741
|
|
|
$
|
3,447
|
|
|
Maximum Payout/Notional
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
121,083
|
|
|
$
|
143,200
|
|
|
$
|
116,540
|
|
|
$
|
21,905
|
|
|
$
|
402,728
|
|
Non-investment grade
|
84,755
|
|
|
67,160
|
|
|
41,001
|
|
|
18,711
|
|
|
211,627
|
|
|||||
Total
|
205,838
|
|
|
210,360
|
|
|
157,541
|
|
|
40,616
|
|
|
614,355
|
|
|||||
Total return swaps/options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment grade
|
12,792
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,792
|
|
|||||
Non-investment grade
|
6,638
|
|
|
5,127
|
|
|
589
|
|
|
208
|
|
|
12,562
|
|
|||||
Total
|
19,430
|
|
|
5,127
|
|
|
589
|
|
|
208
|
|
|
25,354
|
|
|||||
Total credit derivatives
|
$
|
225,268
|
|
|
$
|
215,487
|
|
|
$
|
158,130
|
|
|
$
|
40,824
|
|
|
$
|
639,709
|
|
119
Bank of America 2017
|
|
|
|
|
|
||||
Additional Collateral Required to be Posted Upon Downgrade at December 31, 2017
|
||||||
|
|
|
||||
(Dollars in millions)
|
One
incremental notch
|
Second
incremental notch
|
||||
Bank of America Corporation
|
$
|
779
|
|
$
|
487
|
|
Bank of America, N.A. and subsidiaries
(1)
|
391
|
|
230
|
|
(1)
|
Included in Bank of America Corporation collateral requirements in this table.
|
|
|
|
||||
Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at December 31, 2017
|
||||||
|
|
|
||||
(Dollars in millions)
|
One
incremental notch
|
Second
incremental notch
|
||||
Derivative liabilities
|
$
|
428
|
|
$
|
1,163
|
|
Collateral posted
|
339
|
|
800
|
|
|
|
Bank of America 2017
120
|
|
|
|
|
|
|
|
|
|
||||||||||||
Valuation Adjustments on Derivatives
(1)
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Gains (Losses)
|
Gross
|
Net
|
|
Gross
|
Net
|
|
Gross
|
Net
|
||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
Derivative assets (CVA)
|
$
|
330
|
|
$
|
98
|
|
|
$
|
374
|
|
$
|
214
|
|
|
$
|
255
|
|
$
|
227
|
|
Derivative assets/liabilities (FVA)
|
160
|
|
178
|
|
|
186
|
|
102
|
|
|
16
|
|
16
|
|
||||||
Derivative liabilities (DVA)
|
(324
|
)
|
(281
|
)
|
|
24
|
|
(141
|
)
|
|
(18
|
)
|
(153
|
)
|
(1)
|
At
December 31, 2017
,
2016
and
2015
, cumulative CVA reduced the derivative assets balance by
$677 million
,
$1.0 billion
and
$1.4 billion
, cumulative FVA reduced the net derivatives balance by
$136 million
,
$296 million
and
$481 million
, and cumulative DVA reduced the derivative liabilities balance by
$450 million
,
$774 million
and
$750 million
, respectively.
|
121
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt Securities and Available-for-Sale Marketable Equity Securities
|
|
|
|
|
|||||||||||
|
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|||||||
Agency
|
$
|
194,119
|
|
|
$
|
506
|
|
|
$
|
(1,696
|
)
|
|
$
|
192,929
|
|
Agency-collateralized mortgage obligations
|
6,846
|
|
|
39
|
|
|
(81
|
)
|
|
6,804
|
|
||||
Commercial
|
13,864
|
|
|
28
|
|
|
(208
|
)
|
|
13,684
|
|
||||
Non-agency residential
(1)
|
2,410
|
|
|
267
|
|
|
(8
|
)
|
|
2,669
|
|
||||
Total mortgage-backed securities
|
217,239
|
|
|
840
|
|
|
(1,993
|
)
|
|
216,086
|
|
||||
U.S. Treasury and agency securities
|
54,523
|
|
|
18
|
|
|
(1,018
|
)
|
|
53,523
|
|
||||
Non-U.S. securities
|
6,669
|
|
|
9
|
|
|
(1
|
)
|
|
6,677
|
|
||||
Other taxable securities, substantially all asset-backed securities
|
5,699
|
|
|
73
|
|
|
(2
|
)
|
|
5,770
|
|
||||
Total taxable securities
|
284,130
|
|
|
940
|
|
|
(3,014
|
)
|
|
282,056
|
|
||||
Tax-exempt securities
|
20,541
|
|
|
138
|
|
|
(104
|
)
|
|
20,575
|
|
||||
Total available-for-sale debt securities
|
304,671
|
|
|
1,078
|
|
|
(3,118
|
)
|
|
302,631
|
|
||||
Other debt securities carried at fair value
|
12,273
|
|
|
252
|
|
|
(39
|
)
|
|
12,486
|
|
||||
Total debt securities carried at fair value
|
316,944
|
|
|
1,330
|
|
|
(3,157
|
)
|
|
315,117
|
|
||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities
|
125,013
|
|
|
111
|
|
|
(1,825
|
)
|
|
123,299
|
|
||||
Total debt securities
(2)
|
$
|
441,957
|
|
|
$
|
1,441
|
|
|
$
|
(4,982
|
)
|
|
$
|
438,416
|
|
Available-for-sale marketable equity securities
(3)
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
25
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2016
|
||||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agency
|
$
|
190,809
|
|
|
$
|
640
|
|
|
$
|
(1,963
|
)
|
|
$
|
189,486
|
|
Agency-collateralized mortgage obligations
|
8,296
|
|
|
85
|
|
|
(51
|
)
|
|
8,330
|
|
||||
Commercial
|
12,594
|
|
|
21
|
|
|
(293
|
)
|
|
12,322
|
|
||||
Non-agency residential
(1)
|
1,863
|
|
|
181
|
|
|
(31
|
)
|
|
2,013
|
|
||||
Total mortgage-backed securities
|
213,562
|
|
|
927
|
|
|
(2,338
|
)
|
|
212,151
|
|
||||
U.S. Treasury and agency securities
|
48,800
|
|
|
204
|
|
|
(752
|
)
|
|
48,252
|
|
||||
Non-U.S. securities
|
6,372
|
|
|
13
|
|
|
(3
|
)
|
|
6,382
|
|
||||
Other taxable securities, substantially all asset-backed securities
|
10,573
|
|
|
64
|
|
|
(23
|
)
|
|
10,614
|
|
||||
Total taxable securities
|
279,307
|
|
|
1,208
|
|
|
(3,116
|
)
|
|
277,399
|
|
||||
Tax-exempt securities
|
17,272
|
|
|
72
|
|
|
(184
|
)
|
|
17,160
|
|
||||
Total available-for-sale debt securities
|
296,579
|
|
|
1,280
|
|
|
(3,300
|
)
|
|
294,559
|
|
||||
Less: Available-for-sale securities of business held for sale
(4)
|
(619
|
)
|
|
—
|
|
|
—
|
|
|
(619
|
)
|
||||
Other debt securities carried at fair value
|
19,748
|
|
|
121
|
|
|
(149
|
)
|
|
19,720
|
|
||||
Total debt securities carried at fair value
|
315,708
|
|
|
1,401
|
|
|
(3,449
|
)
|
|
313,660
|
|
||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities
|
117,071
|
|
|
248
|
|
|
(2,034
|
)
|
|
115,285
|
|
||||
Total debt securities
(2)
|
$
|
432,779
|
|
|
$
|
1,649
|
|
|
$
|
(5,483
|
)
|
|
$
|
428,945
|
|
Available-for-sale marketable equity securities
(3)
|
$
|
325
|
|
|
$
|
51
|
|
|
$
|
(1
|
)
|
|
$
|
375
|
|
(1)
|
At
December 31, 2017
and
2016
, the underlying collateral type included approximately
62 percent
and
60 percent
prime,
13 percent
and
19 percent
Alt-A, and
25 percent
and
21 percent
subprime.
|
(2)
|
The Corporation had debt securities from FNMA and FHLMC that each exceeded 10 percent of shareholders’ equity, with an amortized cost of
$163.6 billion
and
$50.3 billion
, and a fair value of
$162.1 billion
and
$50.0 billion
at
December 31, 2017
, and an amortized cost of
$156.4 billion
and
$48.7 billion
, and a fair value of
$154.4 billion
and
$48.3 billion
at
December 31, 2016
.
|
(3)
|
Classified in other assets on the Consolidated Balance Sheet.
|
(4)
|
Represents AFS debt securities of business held for sale. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
|
|
Bank of America 2017
122
|
|
|
|
|
||||
Other Debt Securities Carried at Fair Value
|
|||||||
|
|
||||||
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Mortgage-backed securities:
|
|
|
|
||||
Agency-collateralized mortgage obligations
|
$
|
5
|
|
|
$
|
5
|
|
Non-agency residential
|
2,764
|
|
|
3,139
|
|
||
Total mortgage-backed securities
|
2,769
|
|
|
3,144
|
|
||
Non-U.S. securities
(1)
|
9,488
|
|
|
16,336
|
|
||
Other taxable securities, substantially all asset-backed securities
|
229
|
|
|
240
|
|
||
Total
|
$
|
12,486
|
|
|
$
|
19,720
|
|
(1)
|
These securities are primarily used to satisfy certain international regulatory liquidity requirements.
|
|
|
|
|
|
|
||||||
Gains and Losses on Sales of AFS Debt Securities
|
|||||||||||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Gross gains
|
$
|
352
|
|
|
$
|
520
|
|
|
$
|
1,174
|
|
Gross losses
|
(97
|
)
|
|
(30
|
)
|
|
(36
|
)
|
|||
Net gains on sales of AFS debt securities
|
$
|
255
|
|
|
$
|
490
|
|
|
$
|
1,138
|
|
Income tax expense attributable to realized net gains on sales of AFS debt securities
|
$
|
97
|
|
|
$
|
186
|
|
|
$
|
432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Temporarily Impaired and Other-than-temporarily Impaired AFS Debt Securities
|
|
|
|
|
|
|
|||||||||||||||||
|
|
||||||||||||||||||||||
|
Less than Twelve Months
|
|
Twelve Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
|
Gross Unrealized Losses
|
||||||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||||||||||
Temporarily impaired AFS debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
$
|
73,535
|
|
|
$
|
(352
|
)
|
|
$
|
72,612
|
|
|
$
|
(1,344
|
)
|
|
$
|
146,147
|
|
|
$
|
(1,696
|
)
|
Agency-collateralized mortgage obligations
|
2,743
|
|
|
(29
|
)
|
|
1,684
|
|
|
(52
|
)
|
|
4,427
|
|
|
(81
|
)
|
||||||
Commercial
|
5,575
|
|
|
(50
|
)
|
|
4,586
|
|
|
(158
|
)
|
|
10,161
|
|
|
(208
|
)
|
||||||
Non-agency residential
|
335
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
335
|
|
|
(7
|
)
|
||||||
Total mortgage-backed securities
|
82,188
|
|
|
(438
|
)
|
|
78,882
|
|
|
(1,554
|
)
|
|
161,070
|
|
|
(1,992
|
)
|
||||||
U.S. Treasury and agency securities
|
27,537
|
|
|
(251
|
)
|
|
24,035
|
|
|
(767
|
)
|
|
51,572
|
|
|
(1,018
|
)
|
||||||
Non-U.S. securities
|
772
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
772
|
|
|
(1
|
)
|
||||||
Other taxable securities, substantially all asset-backed securities
|
—
|
|
|
—
|
|
|
92
|
|
|
(2
|
)
|
|
92
|
|
|
(2
|
)
|
||||||
Total taxable securities
|
110,497
|
|
|
(690
|
)
|
|
103,009
|
|
|
(2,323
|
)
|
|
213,506
|
|
|
(3,013
|
)
|
||||||
Tax-exempt securities
|
1,090
|
|
|
(2
|
)
|
|
7,100
|
|
|
(102
|
)
|
|
8,190
|
|
|
(104
|
)
|
||||||
Total temporarily impaired AFS debt securities
|
111,587
|
|
|
(692
|
)
|
|
110,109
|
|
|
(2,425
|
)
|
|
221,696
|
|
|
(3,117
|
)
|
||||||
Other-than-temporarily impaired AFS debt securities
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-agency residential mortgage-backed securities
|
58
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
58
|
|
|
(1
|
)
|
||||||
Total temporarily impaired and other-than-temporarily impaired
AFS debt securities
|
$
|
111,645
|
|
|
$
|
(693
|
)
|
|
$
|
110,109
|
|
|
$
|
(2,425
|
)
|
|
$
|
221,754
|
|
|
$
|
(3,118
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2016
|
||||||||||||||||||||||
Temporarily impaired AFS debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
$
|
135,210
|
|
|
$
|
(1,846
|
)
|
|
$
|
3,770
|
|
|
$
|
(117
|
)
|
|
$
|
138,980
|
|
|
$
|
(1,963
|
)
|
Agency-collateralized mortgage obligations
|
3,229
|
|
|
(25
|
)
|
|
1,028
|
|
|
(26
|
)
|
|
4,257
|
|
|
(51
|
)
|
||||||
Commercial
|
9,018
|
|
|
(293
|
)
|
|
—
|
|
|
—
|
|
|
9,018
|
|
|
(293
|
)
|
||||||
Non-agency residential
|
212
|
|
|
(1
|
)
|
|
204
|
|
|
(13
|
)
|
|
416
|
|
|
(14
|
)
|
||||||
Total mortgage-backed securities
|
147,669
|
|
|
(2,165
|
)
|
|
5,002
|
|
|
(156
|
)
|
|
152,671
|
|
|
(2,321
|
)
|
||||||
U.S. Treasury and agency securities
|
28,462
|
|
|
(752
|
)
|
|
—
|
|
|
—
|
|
|
28,462
|
|
|
(752
|
)
|
||||||
Non-U.S. securities
|
52
|
|
|
(1
|
)
|
|
142
|
|
|
(2
|
)
|
|
194
|
|
|
(3
|
)
|
||||||
Other taxable securities, substantially all asset-backed securities
|
762
|
|
|
(5
|
)
|
|
1,438
|
|
|
(18
|
)
|
|
2,200
|
|
|
(23
|
)
|
||||||
Total taxable securities
|
176,945
|
|
|
(2,923
|
)
|
|
6,582
|
|
|
(176
|
)
|
|
183,527
|
|
|
(3,099
|
)
|
||||||
Tax-exempt securities
|
4,782
|
|
|
(148
|
)
|
|
1,873
|
|
|
(36
|
)
|
|
6,655
|
|
|
(184
|
)
|
||||||
Total temporarily impaired AFS debt securities
|
181,727
|
|
|
(3,071
|
)
|
|
8,455
|
|
|
(212
|
)
|
|
190,182
|
|
|
(3,283
|
)
|
||||||
Other-than-temporarily impaired AFS debt securities
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-agency residential mortgage-backed securities
|
94
|
|
|
(1
|
)
|
|
401
|
|
|
(16
|
)
|
|
495
|
|
|
(17
|
)
|
||||||
Total temporarily impaired and other-than-temporarily impaired
AFS debt securities
|
$
|
181,821
|
|
|
$
|
(3,072
|
)
|
|
$
|
8,856
|
|
|
$
|
(228
|
)
|
|
$
|
190,677
|
|
|
$
|
(3,300
|
)
|
(1)
|
Includes OTTI AFS debt securities on which an OTTI loss, primarily related to changes in interest rates, remains in accumulated OCI.
|
123
Bank of America 2017
|
|
|
|
|
|
|
|
|
|||
Significant Assumptions
|
||||||||
|
|
|
|
|||||
|
|
|
Range
(1)
|
|||||
|
Weighted-
average |
|
10th
Percentile
(2)
|
|
90th
Percentile
(2)
|
|||
Prepayment speed
|
12.4
|
%
|
|
3.0
|
%
|
|
21.3
|
%
|
Loss severity
|
20.2
|
|
|
9.1
|
|
|
36.7
|
|
Life default rate
|
20.9
|
|
|
1.2
|
|
|
76.6
|
|
(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.
|
|
|
Bank of America 2017
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Maturities of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Due in One
Year or Less
|
|
Due after One Year
through Five Years
|
|
Due after Five Years
through Ten Years
|
|
Due after
Ten Years
|
|
Total
|
|||||||||||||||||||||||||
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|
Amount
|
|
Yield
(1)
|
|||||||||||||||
(Dollars in millions)
|
December 31, 2017
|
|||||||||||||||||||||||||||||||||
Amortized cost of debt securities carried at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency
|
$
|
5
|
|
|
4.20
|
%
|
|
$
|
28
|
|
|
3.69
|
%
|
|
$
|
555
|
|
|
2.57
|
%
|
|
$
|
193,531
|
|
|
3.22
|
%
|
|
$
|
194,119
|
|
|
3.22
|
%
|
Agency-collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
2.52
|
|
|
6,817
|
|
|
3.18
|
|
|
6,850
|
|
|
3.18
|
|
|||||
Commercial
|
54
|
|
|
7.45
|
|
|
974
|
|
|
1.98
|
|
|
11,866
|
|
|
2.43
|
|
|
970
|
|
|
2.78
|
|
|
13,864
|
|
|
2.44
|
|
|||||
Non-agency residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
0.01
|
|
|
4,955
|
|
|
9.32
|
|
|
4,979
|
|
|
9.28
|
|
|||||
Total mortgage-backed securities
|
59
|
|
|
7.18
|
|
|
1,002
|
|
|
2.03
|
|
|
12,478
|
|
|
2.43
|
|
|
206,273
|
|
|
3.36
|
|
|
219,812
|
|
|
3.31
|
|
|||||
U.S. Treasury and agency securities
|
490
|
|
|
0.39
|
|
|
23,395
|
|
|
1.42
|
|
|
30,615
|
|
|
2.03
|
|
|
23
|
|
|
2.52
|
|
|
54,523
|
|
|
1.75
|
|
|||||
Non-U.S. securities
|
13,832
|
|
|
1.02
|
|
|
2,111
|
|
|
0.97
|
|
|
48
|
|
|
0.72
|
|
|
167
|
|
|
6.60
|
|
|
16,158
|
|
|
1.07
|
|
|||||
Other taxable securities, substantially all asset-backed securities
|
1,979
|
|
|
2.53
|
|
|
2,029
|
|
|
3.02
|
|
|
1,151
|
|
|
3.22
|
|
|
751
|
|
|
4.74
|
|
|
5,910
|
|
|
3.11
|
|
|||||
Total taxable securities
|
16,360
|
|
|
1.21
|
|
|
28,537
|
|
|
1.52
|
|
|
44,292
|
|
|
2.17
|
|
|
207,214
|
|
|
3.37
|
|
|
296,403
|
|
|
2.89
|
|
|||||
Tax-exempt securities
|
1,327
|
|
|
1.81
|
|
|
6,927
|
|
|
1.88
|
|
|
9,132
|
|
|
1.79
|
|
|
3,155
|
|
|
1.84
|
|
|
20,541
|
|
|
1.83
|
|
|||||
Total amortized cost of debt securities carried at fair value
|
$
|
17,687
|
|
|
1.25
|
|
|
$
|
35,464
|
|
|
1.59
|
|
|
$
|
53,424
|
|
|
2.11
|
|
|
$
|
210,369
|
|
|
3.35
|
|
|
$
|
316,944
|
|
|
2.82
|
|
Amortized cost of HTM debt securities
(2)
|
$
|
1
|
|
|
5.82
|
|
|
$
|
71
|
|
|
3.06
|
|
|
$
|
1,144
|
|
|
2.65
|
|
|
$
|
123,797
|
|
|
3.03
|
|
|
$
|
125,013
|
|
|
3.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Debt securities carried at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency
|
$
|
5
|
|
|
|
|
|
$
|
28
|
|
|
|
|
|
$
|
555
|
|
|
|
|
|
$
|
192,341
|
|
|
|
|
|
$
|
192,929
|
|
|
|
|
Agency-collateralized mortgage obligations
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
32
|
|
|
|
|
|
6,777
|
|
|
|
|
|
6,809
|
|
|
|
|
|||||
Commercial
|
54
|
|
|
|
|
|
969
|
|
|
|
|
|
11,703
|
|
|
|
|
|
958
|
|
|
|
|
|
13,684
|
|
|
|
|
|||||
Non-agency residential
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
33
|
|
|
|
|
|
5,400
|
|
|
|
|
|
5,433
|
|
|
|
|
|||||
Total mortgage-backed securities
|
59
|
|
|
|
|
997
|
|
|
|
|
12,323
|
|
|
|
|
205,476
|
|
|
|
|
218,855
|
|
|
|
||||||||||
U.S. Treasury and agency securities
|
491
|
|
|
|
|
22,898
|
|
|
|
|
30,111
|
|
|
|
|
23
|
|
|
|
|
53,523
|
|
|
|
||||||||||
Non-U.S. securities
|
13,830
|
|
|
|
|
|
2,115
|
|
|
|
|
|
48
|
|
|
|
|
|
172
|
|
|
|
|
|
16,165
|
|
|
|
|
|||||
Other taxable securities, substantially all asset-backed securities
|
1,981
|
|
|
|
|
|
2,006
|
|
|
|
|
|
1,184
|
|
|
|
|
|
828
|
|
|
|
|
|
5,999
|
|
|
|
|
|||||
Total taxable securities
|
16,361
|
|
|
|
|
|
28,016
|
|
|
|
|
|
43,666
|
|
|
|
|
|
206,499
|
|
|
|
|
|
294,542
|
|
|
|
|
|||||
Tax-exempt securities
|
1,326
|
|
|
|
|
|
6,934
|
|
|
|
|
|
9,162
|
|
|
|
|
|
3,153
|
|
|
|
|
|
20,575
|
|
|
|
|
|||||
Total debt securities carried at fair value
|
$
|
17,687
|
|
|
|
|
|
$
|
34,950
|
|
|
|
|
|
$
|
52,828
|
|
|
|
|
|
$
|
209,652
|
|
|
|
|
|
$
|
315,117
|
|
|
|
|
Fair value of HTM debt securities
(2)
|
$
|
1
|
|
|
|
|
$
|
71
|
|
|
|
|
$
|
1,117
|
|
|
|
|
$
|
122,110
|
|
|
|
|
$
|
123,299
|
|
|
|
(1)
|
The average yield is computed based on a constant effective interest rate over the contractual life of each security. The average yield considers the contractual coupon and the amortization of premiums and accretion of discounts, excluding the effect of related hedging derivatives.
|
(2)
|
Substantially all U.S. agency MBS.
|
125
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
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
|
||||||||||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||||||||||||||||||
Consumer real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
|
$
|
1,242
|
|
|
$
|
321
|
|
|
$
|
1,040
|
|
|
$
|
2,603
|
|
|
$
|
174,015
|
|
|
|
|
|
|
$
|
176,618
|
|
||||
Home equity
|
215
|
|
|
108
|
|
|
473
|
|
|
796
|
|
|
43,449
|
|
|
|
|
|
|
44,245
|
|
||||||||||
Non-core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
(5)
|
1,028
|
|
|
468
|
|
|
3,535
|
|
|
5,031
|
|
|
14,161
|
|
|
$
|
8,001
|
|
|
|
|
27,193
|
|
||||||||
Home equity
|
224
|
|
|
121
|
|
|
572
|
|
|
917
|
|
|
9,866
|
|
|
2,716
|
|
|
|
|
13,499
|
|
|||||||||
Credit card and other consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. credit card
|
542
|
|
|
405
|
|
|
900
|
|
|
1,847
|
|
|
94,438
|
|
|
|
|
|
|
96,285
|
|
||||||||||
Direct/Indirect consumer
(6)
|
320
|
|
|
102
|
|
|
43
|
|
|
465
|
|
|
93,365
|
|
|
|
|
|
|
93,830
|
|
||||||||||
Other consumer
(7)
|
10
|
|
|
2
|
|
|
1
|
|
|
13
|
|
|
2,665
|
|
|
|
|
|
|
2,678
|
|
||||||||||
Total consumer
|
3,581
|
|
|
1,527
|
|
|
6,564
|
|
|
11,672
|
|
|
431,959
|
|
|
10,717
|
|
|
|
|
454,348
|
|
|||||||||
Consumer loans accounted for under the fair value option
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
928
|
|
|
928
|
|
|||||||
Total consumer loans and leases
|
3,581
|
|
|
1,527
|
|
|
6,564
|
|
|
11,672
|
|
|
431,959
|
|
|
10,717
|
|
|
928
|
|
|
455,276
|
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. commercial
|
547
|
|
|
244
|
|
|
425
|
|
|
1,216
|
|
|
283,620
|
|
|
|
|
|
|
284,836
|
|
||||||||||
Non-U.S. commercial
|
52
|
|
|
1
|
|
|
3
|
|
|
56
|
|
|
97,736
|
|
|
|
|
|
|
97,792
|
|
||||||||||
Commercial real estate
(9)
|
48
|
|
|
10
|
|
|
29
|
|
|
87
|
|
|
58,211
|
|
|
|
|
|
|
58,298
|
|
||||||||||
Commercial lease financing
|
110
|
|
|
68
|
|
|
26
|
|
|
204
|
|
|
21,912
|
|
|
|
|
|
|
22,116
|
|
||||||||||
U.S. small business commercial
|
95
|
|
|
45
|
|
|
88
|
|
|
228
|
|
|
13,421
|
|
|
|
|
|
|
13,649
|
|
||||||||||
Total commercial
|
852
|
|
|
368
|
|
|
571
|
|
|
1,791
|
|
|
474,900
|
|
|
|
|
|
|
476,691
|
|
||||||||||
Commercial loans accounted for under the fair value option
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,782
|
|
|
4,782
|
|
||||||||
Total commercial loans and leases
|
852
|
|
|
368
|
|
|
571
|
|
|
1,791
|
|
|
474,900
|
|
|
|
|
4,782
|
|
|
481,473
|
|
|||||||||
Total loans and leases
(10)
|
$
|
4,433
|
|
|
$
|
1,895
|
|
|
$
|
7,135
|
|
|
$
|
13,463
|
|
|
$
|
906,859
|
|
|
$
|
10,717
|
|
|
$
|
5,710
|
|
|
$
|
936,749
|
|
Percentage of outstandings
|
0.48
|
%
|
|
0.20
|
%
|
|
0.76
|
%
|
|
1.44
|
%
|
|
96.81
|
%
|
|
1.14
|
%
|
|
0.61
|
%
|
|
100.00
|
%
|
(1)
|
Consumer real estate loans 30-59 days past due includes fully-insured loans of
$850 million
and nonperforming loans of
$253 million
. Consumer real estate loans 60-89 days past due includes fully-insured loans of
$386 million
and nonperforming loans of
$195 million
.
|
(2)
|
Consumer real estate includes fully-insured loans of
$3.2 billion
.
|
(3)
|
Consumer real estate includes
$2.3 billion
and direct/indirect consumer includes
$43 million
of nonperforming loans.
|
(4)
|
PCI loan amounts are shown gross of the valuation allowance.
|
(5)
|
Total outstandings includes pay option loans of
$1.4 billion
. The Corporation no longer originates this product.
|
(6)
|
Total outstandings includes auto and specialty lending loans of
$49.9 billion
, unsecured consumer lending loans of
$469 million
, U.S. securities-based lending loans of
$39.8 billion
, non-U.S. consumer loans of
$3.0 billion
and other consumer loans of
$684 million
.
|
(7)
|
Total outstandings includes consumer leases of
$2.5 billion
and consumer overdrafts of
$163 million
.
|
(8)
|
Consumer loans accounted for under the fair value option includes residential mortgage loans of
$567 million
and home equity loans of
$361 million
. Commercial loans accounted for under the fair value option includes U.S. commercial loans of
$2.6 billion
and non-U.S. commercial loans of
$2.2 billion
. For more information, see
Note 20 – Fair Value Measurements
and
Note 21 – Fair Value Option
.
|
(9)
|
Total outstandings includes U.S. commercial real estate loans of
$54.8 billion
and non-U.S. commercial real estate loans of
$3.5 billion
.
|
(10)
|
The Corporation pledged
$160.3 billion
of loans to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank (FHLB). 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.
|
|
|
Bank of America 2017
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
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
|
||||||||||||||||
(Dollars in millions)
|
December 31, 2016
|
||||||||||||||||||||||||||||||
Consumer real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
|
$
|
1,340
|
|
|
$
|
425
|
|
|
$
|
1,213
|
|
|
$
|
2,978
|
|
|
$
|
153,519
|
|
|
|
|
|
|
|
|
$
|
156,497
|
|
||
Home equity
|
239
|
|
|
105
|
|
|
451
|
|
|
795
|
|
|
48,578
|
|
|
|
|
|
|
|
|
49,373
|
|
||||||||
Non-core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage
(5)
|
1,338
|
|
|
674
|
|
|
5,343
|
|
|
7,355
|
|
|
17,818
|
|
|
$
|
10,127
|
|
|
|
|
|
35,300
|
|
|||||||
Home equity
|
260
|
|
|
136
|
|
|
832
|
|
|
1,228
|
|
|
12,231
|
|
|
3,611
|
|
|
|
|
|
17,070
|
|
||||||||
Credit card and other consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. credit card
|
472
|
|
|
341
|
|
|
782
|
|
|
1,595
|
|
|
90,683
|
|
|
|
|
|
|
|
92,278
|
|
|||||||||
Non-U.S. credit card
|
37
|
|
|
27
|
|
|
66
|
|
|
130
|
|
|
9,084
|
|
|
|
|
|
|
|
9,214
|
|
|||||||||
Direct/Indirect consumer
(6)
|
272
|
|
|
79
|
|
|
34
|
|
|
385
|
|
|
93,704
|
|
|
|
|
|
|
|
94,089
|
|
|||||||||
Other consumer
(7)
|
26
|
|
|
8
|
|
|
6
|
|
|
40
|
|
|
2,459
|
|
|
|
|
|
|
|
2,499
|
|
|||||||||
Total consumer
|
3,984
|
|
|
1,795
|
|
|
8,727
|
|
|
14,506
|
|
|
428,076
|
|
|
13,738
|
|
|
|
|
456,320
|
|
|||||||||
Consumer loans accounted for under the fair value option
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,051
|
|
|
1,051
|
|
|||||||||||||
Total consumer loans and leases
|
3,984
|
|
|
1,795
|
|
|
8,727
|
|
|
14,506
|
|
|
428,076
|
|
|
13,738
|
|
|
1,051
|
|
|
457,371
|
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. commercial
|
952
|
|
|
263
|
|
|
400
|
|
|
1,615
|
|
|
268,757
|
|
|
|
|
|
|
|
270,372
|
|
|||||||||
Non-U.S. commercial
|
348
|
|
|
4
|
|
|
5
|
|
|
357
|
|
|
89,040
|
|
|
|
|
|
|
|
89,397
|
|
|||||||||
Commercial real estate
(9)
|
20
|
|
|
10
|
|
|
56
|
|
|
86
|
|
|
57,269
|
|
|
|
|
|
|
|
57,355
|
|
|||||||||
Commercial lease financing
|
167
|
|
|
21
|
|
|
27
|
|
|
215
|
|
|
22,160
|
|
|
|
|
|
|
|
22,375
|
|
|||||||||
U.S. small business commercial
|
96
|
|
|
49
|
|
|
84
|
|
|
229
|
|
|
12,764
|
|
|
|
|
|
|
|
12,993
|
|
|||||||||
Total commercial
|
1,583
|
|
|
347
|
|
|
572
|
|
|
2,502
|
|
|
449,990
|
|
|
|
|
|
|
|
452,492
|
|
|||||||||
Commercial loans accounted for under the fair value option
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
6,034
|
|
|
6,034
|
|
||||||||||||||
Total commercial loans and leases
|
1,583
|
|
|
347
|
|
|
572
|
|
|
2,502
|
|
|
449,990
|
|
|
|
|
6,034
|
|
|
458,526
|
|
|||||||||
Total consumer and commercial loans and leases
(10)
|
$
|
5,567
|
|
|
$
|
2,142
|
|
|
$
|
9,299
|
|
|
$
|
17,008
|
|
|
$
|
878,066
|
|
|
$
|
13,738
|
|
|
$
|
7,085
|
|
|
$
|
915,897
|
|
Less: Loans of business held for sale
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,214
|
)
|
|||||||||||||||
Total loans and leases
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
906,683
|
|
||||||||||||||
Percentage of outstandings
(10)
|
0.61
|
%
|
|
0.23
|
%
|
|
1.02
|
%
|
|
1.86
|
%
|
|
95.87
|
%
|
|
1.50
|
%
|
|
0.77
|
%
|
|
100.00
|
%
|
(1)
|
Consumer real estate loans 30-59 days past due includes fully-insured loans of
$1.1 billion
and nonperforming loans of
$266 million
. Consumer real estate loans 60-89 days past due includes fully-insured loans of
$547 million
and nonperforming loans of
$216 million
.
|
(2)
|
Consumer real estate includes fully-insured loans of
$4.8 billion
.
|
(3)
|
Consumer real estate includes
$2.5 billion
and direct/indirect consumer includes
$27 million
of nonperforming loans.
|
(4)
|
PCI loan amounts are shown gross of the valuation allowance.
|
(5)
|
Total outstandings includes pay option loans of
$1.8 billion
. The Corporation no longer originates this product.
|
(6)
|
Total outstandings includes auto and specialty lending loans of
$48.9 billion
, unsecured consumer lending loans of
$585 million
, U.S. securities-based lending loans of
$40.1 billion
, non-U.S. consumer loans of
$3.0 billion
, student loans of
$497 million
and other consumer loans of
$1.1 billion
.
|
(7)
|
Total outstandings includes consumer finance loans of
$465 million
, consumer leases of
$1.9 billion
and consumer overdrafts of
$157 million
.
|
(8)
|
Consumer loans accounted for under the fair value option includes residential mortgage loans of
$710 million
and home equity loans of
$341 million
. Commercial loans accounted for under the fair value option includes U.S. commercial loans of
$2.9 billion
and non-U.S. commercial loans of
$3.1 billion
. For more information, see
Note 20 – Fair Value Measurements
and
Note 21 – Fair Value Option
.
|
(9)
|
Total outstandings includes U.S. commercial real estate loans of
$54.3 billion
and non-U.S. commercial real estate loans of
$3.1 billion
.
|
(10)
|
Includes non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet.
|
(11)
|
The Corporation pledged
$143.1 billion
of loans to secure potential borrowing capacity with the Federal Reserve Bank and FHLB. 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.
|
127
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit Quality
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Nonperforming Loans
and Leases
|
|
Accruing Past Due
90 Days or More
|
||||||||||||
|
December 31
2017 |
||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Consumer real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||
Core portfolio
|
|
|
|
|
|
|
|
||||||||
Residential mortgage
(1)
|
$
|
1,087
|
|
|
$
|
1,274
|
|
|
$
|
417
|
|
|
$
|
486
|
|
Home equity
|
1,079
|
|
|
969
|
|
|
—
|
|
|
—
|
|
||||
Non-core portfolio
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential mortgage
(1)
|
1,389
|
|
|
1,782
|
|
|
2,813
|
|
|
4,307
|
|
||||
Home equity
|
1,565
|
|
|
1,949
|
|
|
—
|
|
|
—
|
|
||||
Credit card and other consumer
|
|
|
|
|
|
|
|
|
|
||||||
U.S. credit card
|
n/a
|
|
|
n/a
|
|
|
900
|
|
|
782
|
|
||||
Non-U.S. credit card
|
n/a
|
|
|
n/a
|
|
|
—
|
|
|
66
|
|
||||
Direct/Indirect consumer
|
46
|
|
|
28
|
|
|
40
|
|
|
34
|
|
||||
Other consumer
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
||||
Total consumer
|
5,166
|
|
|
6,004
|
|
|
4,170
|
|
|
5,679
|
|
||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. commercial
|
814
|
|
|
1,256
|
|
|
144
|
|
|
106
|
|
||||
Non-U.S. commercial
|
299
|
|
|
279
|
|
|
3
|
|
|
5
|
|
||||
Commercial real estate
|
112
|
|
|
72
|
|
|
4
|
|
|
7
|
|
||||
Commercial lease financing
|
24
|
|
|
36
|
|
|
19
|
|
|
19
|
|
||||
U.S. small business commercial
|
55
|
|
|
60
|
|
|
75
|
|
|
71
|
|
||||
Total commercial
|
1,304
|
|
|
1,703
|
|
|
245
|
|
|
208
|
|
||||
Total loans and leases
|
$
|
6,470
|
|
|
$
|
7,707
|
|
|
$
|
4,415
|
|
|
$
|
5,887
|
|
(1)
|
Residential mortgage loans in the core and non-core portfolios accruing past due
90
days or more are fully-insured loans. At
December 31, 2017 and 2016
, residential mortgage includes
$2.2 billion
and
$3.0 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
$1.0 billion
and
$1.8 billion
of loans on which interest is still accruing.
|
|
|
Bank of America 2017
128
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer Real Estate – Credit Quality Indicators
(1)
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Core Residential
Mortgage
(2)
|
|
Non-core Residential
Mortgage (2) |
|
Residential Mortgage PCI
(3)
|
|
Core Home Equity
(2)
|
|
Non-core Home Equity
(2)
|
|
Home
Equity PCI
|
||||||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||||||||||
Refreshed LTV
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Less than or equal to 90 percent
|
$
|
153,669
|
|
|
$
|
12,135
|
|
|
$
|
6,872
|
|
|
$
|
43,048
|
|
|
$
|
7,944
|
|
|
$
|
1,781
|
|
Greater than 90 percent but less than or equal to 100 percent
|
3,082
|
|
|
850
|
|
|
559
|
|
|
549
|
|
|
1,053
|
|
|
412
|
|
||||||
Greater than 100 percent
|
1,322
|
|
|
1,011
|
|
|
570
|
|
|
648
|
|
|
1,786
|
|
|
523
|
|
||||||
Fully-insured loans
(5)
|
18,545
|
|
|
5,196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer real estate
|
$
|
176,618
|
|
|
$
|
19,192
|
|
|
$
|
8,001
|
|
|
$
|
44,245
|
|
|
$
|
10,783
|
|
|
$
|
2,716
|
|
Refreshed FICO score
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 620
|
$
|
2,234
|
|
|
$
|
2,390
|
|
|
$
|
1,941
|
|
|
$
|
1,169
|
|
|
$
|
2,098
|
|
|
$
|
452
|
|
Greater than or equal to 620 and less than 680
|
4,531
|
|
|
2,086
|
|
|
1,657
|
|
|
2,371
|
|
|
2,393
|
|
|
466
|
|
||||||
Greater than or equal to 680 and less than 740
|
22,934
|
|
|
3,519
|
|
|
2,396
|
|
|
8,115
|
|
|
2,723
|
|
|
786
|
|
||||||
Greater than or equal to 740
|
128,374
|
|
|
6,001
|
|
|
2,007
|
|
|
32,590
|
|
|
3,569
|
|
|
1,012
|
|
||||||
Fully-insured loans
(5)
|
18,545
|
|
|
5,196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer real estate
|
$
|
176,618
|
|
|
$
|
19,192
|
|
|
$
|
8,001
|
|
|
$
|
44,245
|
|
|
$
|
10,783
|
|
|
$
|
2,716
|
|
(1)
|
Excludes
$928 million
of loans accounted for under the fair value option.
|
(2)
|
Excludes PCI loans.
|
(3)
|
Includes
$1.2 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.
|
|
|
|
|
|
|
||||||
Credit Card and Other Consumer – Credit Quality Indicators
|
|||||||||||
|
|
|
|
|
|
||||||
|
U.S. Credit
Card
|
|
Direct/Indirect
Consumer
|
|
Other
Consumer
|
||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||
Refreshed FICO score
|
|
|
|
|
|
|
|
|
|||
Less than 620
|
$
|
4,730
|
|
|
$
|
1,630
|
|
|
$
|
49
|
|
Greater than or equal to 620 and less than 680
|
12,422
|
|
|
2,000
|
|
|
143
|
|
|||
Greater than or equal to 680 and less than 740
|
35,656
|
|
|
11,906
|
|
|
398
|
|
|||
Greater than or equal to 740
|
43,477
|
|
|
34,838
|
|
|
1,921
|
|
|||
Other internal credit metrics
(1, 2)
|
—
|
|
|
43,456
|
|
|
167
|
|
|||
Total credit card and other consumer
|
$
|
96,285
|
|
|
$
|
93,830
|
|
|
$
|
2,678
|
|
(1)
|
Other internal credit metrics may include delinquency status, geography or other factors.
|
(2)
|
Direct/indirect consumer includes
$42.8 billion
of securities-based lending which is overcollateralized and therefore has minimal credit risk.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial – Credit Quality Indicators
(1)
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S.
Commercial
|
|
Non-U.S.
Commercial
|
|
Commercial
Real Estate
|
|
Commercial
Lease
Financing
|
|
U.S. Small
Business
Commercial
(2)
|
||||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||||||
Risk ratings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pass rated
|
$
|
275,904
|
|
|
$
|
96,199
|
|
|
$
|
57,732
|
|
|
$
|
21,535
|
|
|
$
|
322
|
|
Reservable criticized
|
8,932
|
|
|
1,593
|
|
|
566
|
|
|
581
|
|
|
50
|
|
|||||
Refreshed FICO score
(3)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Less than 620
|
|
|
|
|
|
|
|
|
|
223
|
|
||||||||
Greater than or equal to 620 and less than 680
|
|
|
|
|
|
|
|
|
625
|
|
|||||||||
Greater than or equal to 680 and less than 740
|
|
|
|
|
|
|
|
|
1,875
|
|
|||||||||
Greater than or equal to 740
|
|
|
|
|
|
|
|
|
3,713
|
|
|||||||||
Other internal credit metrics
(3, 4)
|
|
|
|
|
|
|
|
|
6,841
|
|
|||||||||
Total commercial
|
$
|
284,836
|
|
|
$
|
97,792
|
|
|
$
|
58,298
|
|
|
$
|
22,116
|
|
|
$
|
13,649
|
|
(1)
|
Excludes
$4.8 billion
of loans accounted for under the fair value option.
|
(2)
|
U.S. small business commercial includes
$709 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, 2017
,
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.
|
129
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer Real Estate – Credit Quality Indicators
(1)
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Core Residential
Mortgage
(2)
|
|
Non-core Residential
Mortgage (2) |
|
Residential Mortgage PCI
(3)
|
|
Core Home Equity
(2)
|
|
Non-core Home Equity
(2)
|
|
Home
Equity PCI
|
||||||||||||
(Dollars in millions)
|
December 31, 2016
|
||||||||||||||||||||||
Refreshed LTV
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Less than or equal to 90 percent
|
$
|
129,737
|
|
|
$
|
14,280
|
|
|
$
|
7,811
|
|
|
$
|
47,171
|
|
|
$
|
8,480
|
|
|
$
|
1,942
|
|
Greater than 90 percent but less than or equal to 100 percent
|
3,634
|
|
|
1,446
|
|
|
1,021
|
|
|
1,006
|
|
|
1,668
|
|
|
630
|
|
||||||
Greater than 100 percent
|
1,872
|
|
|
1,972
|
|
|
1,295
|
|
|
1,196
|
|
|
3,311
|
|
|
1,039
|
|
||||||
Fully-insured loans
(5)
|
21,254
|
|
|
7,475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer real estate
|
$
|
156,497
|
|
|
$
|
25,173
|
|
|
$
|
10,127
|
|
|
$
|
49,373
|
|
|
$
|
13,459
|
|
|
$
|
3,611
|
|
Refreshed FICO score
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Less than 620
|
$
|
2,479
|
|
|
$
|
3,198
|
|
|
$
|
2,741
|
|
|
$
|
1,254
|
|
|
$
|
2,692
|
|
|
$
|
559
|
|
Greater than or equal to 620 and less than 680
|
5,094
|
|
|
2,807
|
|
|
2,241
|
|
|
2,853
|
|
|
3,094
|
|
|
636
|
|
||||||
Greater than or equal to 680 and less than 740
|
22,629
|
|
|
4,512
|
|
|
2,916
|
|
|
10,069
|
|
|
3,176
|
|
|
1,069
|
|
||||||
Greater than or equal to 740
|
105,041
|
|
|
7,181
|
|
|
2,229
|
|
|
35,197
|
|
|
4,497
|
|
|
1,347
|
|
||||||
Fully-insured loans
(5)
|
21,254
|
|
|
7,475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer real estate
|
$
|
156,497
|
|
|
$
|
25,173
|
|
|
$
|
10,127
|
|
|
$
|
49,373
|
|
|
$
|
13,459
|
|
|
$
|
3,611
|
|
(1)
|
Excludes
$1.1 billion
of loans accounted for under the fair value option.
|
(2)
|
Excludes PCI loans.
|
(3)
|
Includes
$1.6 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.
|
|
|
|
|
|
|
|
|
||||||||
Credit Card and Other Consumer – Credit Quality Indicators
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
U.S. Credit
Card
|
|
Non-U.S.
Credit Card
|
|
Direct/Indirect
Consumer
|
|
Other
Consumer
(1)
|
||||||||
(Dollars in millions)
|
December 31, 2016
|
||||||||||||||
Refreshed FICO score
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less than 620
|
$
|
4,431
|
|
|
$
|
—
|
|
|
$
|
1,478
|
|
|
$
|
187
|
|
Greater than or equal to 620 and less than 680
|
12,364
|
|
|
—
|
|
|
2,070
|
|
|
222
|
|
||||
Greater than or equal to 680 and less than 740
|
34,828
|
|
|
—
|
|
|
12,491
|
|
|
404
|
|
||||
Greater than or equal to 740
|
40,655
|
|
|
—
|
|
|
33,420
|
|
|
1,525
|
|
||||
Other internal credit metrics
(2, 3, 4)
|
—
|
|
|
9,214
|
|
|
44,630
|
|
|
161
|
|
||||
Total credit card and other consumer
|
$
|
92,278
|
|
|
$
|
9,214
|
|
|
$
|
94,089
|
|
|
$
|
2,499
|
|
(1)
|
At
December 31, 2016
,
19 percent
of the other consumer portfolio was 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
$43.1 billion
of securities-based lending which is overcollateralized and therefore has minimal credit risk and
$499 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 was evaluated using internal credit metrics, including delinquency status. At
December 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)
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S.
Commercial
|
|
Non-U.S.
Commercial
|
|
Commercial
Real Estate
|
|
Commercial
Lease
Financing
|
|
U.S. Small
Business
Commercial
(2)
|
||||||||||
(Dollars in millions)
|
December 31, 2016
|
||||||||||||||||||
Risk ratings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pass rated
|
$
|
261,214
|
|
|
$
|
85,689
|
|
|
$
|
56,957
|
|
|
$
|
21,565
|
|
|
$
|
453
|
|
Reservable criticized
|
9,158
|
|
|
3,708
|
|
|
398
|
|
|
810
|
|
|
71
|
|
|||||
Refreshed FICO score
(3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Less than 620
|
|
|
|
|
|
|
|
|
200
|
|
|||||||||
Greater than or equal to 620 and less than 680
|
|
|
|
|
|
|
|
|
591
|
|
|||||||||
Greater than or equal to 680 and less than 740
|
|
|
|
|
|
|
|
|
1,741
|
|
|||||||||
Greater than or equal to 740
|
|
|
|
|
|
|
|
|
3,264
|
|
|||||||||
Other internal credit metrics
(3, 4)
|
|
|
|
|
|
|
|
|
6,673
|
|
|||||||||
Total commercial
|
$
|
270,372
|
|
|
$
|
89,397
|
|
|
$
|
57,355
|
|
|
$
|
22,375
|
|
|
$
|
12,993
|
|
(1)
|
Excludes
$6.0 billion
of loans accounted for under the fair value option.
|
(2)
|
U.S. small business commercial includes
$755 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, 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.
|
|
|
Bank of America 2017
130
|
131
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Loans – Consumer Real Estate
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Unpaid
Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
|
Unpaid
Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
||||||||||||
(Dollars in millions)
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage
|
$
|
8,856
|
|
|
$
|
6,870
|
|
|
$
|
—
|
|
|
$
|
11,151
|
|
|
$
|
8,695
|
|
|
$
|
—
|
|
Home equity
|
3,622
|
|
|
1,956
|
|
|
—
|
|
|
3,704
|
|
|
1,953
|
|
|
—
|
|
||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage
|
$
|
2,908
|
|
|
$
|
2,828
|
|
|
$
|
174
|
|
|
$
|
4,041
|
|
|
$
|
3,936
|
|
|
$
|
219
|
|
Home equity
|
972
|
|
|
900
|
|
|
174
|
|
|
910
|
|
|
824
|
|
|
137
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage
|
$
|
11,764
|
|
|
$
|
9,698
|
|
|
$
|
174
|
|
|
$
|
15,192
|
|
|
$
|
12,631
|
|
|
$
|
219
|
|
Home equity
|
4,594
|
|
|
2,856
|
|
|
174
|
|
|
4,614
|
|
|
2,777
|
|
|
137
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
$
|
7,737
|
|
|
$
|
311
|
|
|
$
|
10,178
|
|
|
$
|
360
|
|
|
$
|
13,867
|
|
|
$
|
403
|
|
Home equity
|
1,997
|
|
|
109
|
|
|
1,906
|
|
|
90
|
|
|
1,777
|
|
|
89
|
|
||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
$
|
3,414
|
|
|
$
|
123
|
|
|
$
|
5,067
|
|
|
$
|
167
|
|
|
$
|
7,290
|
|
|
$
|
236
|
|
Home equity
|
858
|
|
|
24
|
|
|
852
|
|
|
24
|
|
|
785
|
|
|
24
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
$
|
11,151
|
|
|
$
|
434
|
|
|
$
|
15,245
|
|
|
$
|
527
|
|
|
$
|
21,157
|
|
|
$
|
639
|
|
Home equity
|
2,855
|
|
|
133
|
|
|
2,758
|
|
|
114
|
|
|
2,562
|
|
|
113
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer Real Estate – TDRs Entered into During 2017, 2016 and 2015
(1)
|
|||||||||||||||||
|
|
||||||||||||||||
|
Unpaid Principal Balance
|
|
Carrying
Value
|
|
Pre-Modification Interest Rate
|
|
Post-Modification Interest Rate
(2)
|
|
Net
Charge-offs
(3)
|
||||||||
(Dollars in millions)
|
December 31, 2017
|
|
2017
|
||||||||||||||
Residential mortgage
|
$
|
824
|
|
|
$
|
712
|
|
|
4.43
|
%
|
|
4.16
|
%
|
|
$
|
6
|
|
Home equity
|
764
|
|
|
590
|
|
|
4.22
|
|
|
3.49
|
|
|
42
|
|
|||
Total
|
$
|
1,588
|
|
|
$
|
1,302
|
|
|
4.33
|
|
|
3.83
|
|
|
$
|
48
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2016
|
|
2016
|
||||||||||||||
Residential mortgage
|
$
|
1,130
|
|
|
$
|
1,017
|
|
|
4.73
|
%
|
|
4.16
|
%
|
|
$
|
11
|
|
Home equity
|
849
|
|
|
649
|
|
|
3.95
|
|
|
2.72
|
|
|
61
|
|
|||
Total
|
$
|
1,979
|
|
|
$
|
1,666
|
|
|
4.40
|
|
|
3.54
|
|
|
$
|
72
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2015
|
|
2015
|
||||||||||||||
Residential mortgage
|
$
|
2,986
|
|
|
$
|
2,655
|
|
|
4.98
|
%
|
|
4.43
|
%
|
|
$
|
97
|
|
Home equity
|
1,019
|
|
|
775
|
|
|
3.54
|
|
|
3.17
|
|
|
84
|
|
|||
Total
|
$
|
4,005
|
|
|
$
|
3,430
|
|
|
4.61
|
|
|
4.11
|
|
|
$
|
181
|
|
(1)
|
During
2017
, there was
no
forgiveness of principal related to residential mortgage loans in connection with TDRs compared to
$13 million
and
$396 million
during
2016
and
2015
.
|
(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
December 31, 2017, 2016 and 2015
due to sales and other dispositions.
|
|
|
Bank of America 2017
132
|
|
|
|
|
|
|
||||||
Consumer Real Estate – Modification Programs
|
|
|
|
|
|||||||
|
|
|
|
|
|
||||||
|
TDRs Entered into During
|
||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Modifications under government programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
$
|
59
|
|
|
$
|
151
|
|
|
$
|
431
|
|
Principal and/or interest forbearance
|
4
|
|
|
13
|
|
|
11
|
|
|||
Other modifications
(1)
|
22
|
|
|
23
|
|
|
46
|
|
|||
Total modifications under government programs
|
85
|
|
|
187
|
|
|
488
|
|
|||
Modifications under proprietary programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
281
|
|
|
235
|
|
|
219
|
|
|||
Capitalization of past due amounts
|
63
|
|
|
40
|
|
|
79
|
|
|||
Principal and/or interest forbearance
|
38
|
|
|
72
|
|
|
168
|
|
|||
Other modifications
(1)
|
55
|
|
|
75
|
|
|
129
|
|
|||
Total modifications under proprietary programs
|
437
|
|
|
422
|
|
|
595
|
|
|||
Trial modifications
|
569
|
|
|
831
|
|
|
1,968
|
|
|||
Loans discharged in Chapter 7 bankruptcy
(2)
|
211
|
|
|
226
|
|
|
379
|
|
|||
Total modifications
|
$
|
1,302
|
|
|
$
|
1,666
|
|
|
$
|
3,430
|
|
(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.
|
|
|
|
|
|
|
||||||
Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months
|
|||||||||||
|
|
|
|
|
|||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Modifications under government programs
|
$
|
81
|
|
|
$
|
262
|
|
|
$
|
457
|
|
Modifications under proprietary programs
|
138
|
|
|
196
|
|
|
287
|
|
|||
Loans discharged in Chapter 7 bankruptcy
(1)
|
116
|
|
|
158
|
|
|
285
|
|
|||
Trial modifications
(2)
|
391
|
|
|
824
|
|
|
3,178
|
|
|||
Total modifications
|
$
|
726
|
|
|
$
|
1,440
|
|
|
$
|
4,207
|
|
(1)
|
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
|
(2)
|
Includes trial modification offers to which the customer did not respond.
|
133
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Loans – Credit Card and Other Consumer
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Unpaid
Principal
Balance
|
|
Carrying
Value
(1)
|
|
Related
Allowance
|
|
Unpaid
Principal
Balance
|
|
Carrying
Value
(1)
|
|
Related
Allowance
|
||||||||||||
(Dollars in millions)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Direct/Indirect consumer
|
|
$
|
58
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
49
|
|
|
$
|
22
|
|
|
$
|
—
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. credit card
|
|
$
|
454
|
|
|
$
|
461
|
|
|
$
|
125
|
|
|
$
|
479
|
|
|
$
|
485
|
|
|
$
|
128
|
|
Non-U.S. credit card
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
88
|
|
|
100
|
|
|
61
|
|
||||||
Direct/Indirect consumer
|
|
1
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. credit card
|
|
$
|
454
|
|
|
$
|
461
|
|
|
$
|
125
|
|
|
$
|
479
|
|
|
$
|
485
|
|
|
$
|
128
|
|
Non-U.S. credit card
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
88
|
|
|
100
|
|
|
61
|
|
||||||
Direct/Indirect consumer
|
|
59
|
|
|
29
|
|
|
—
|
|
|
52
|
|
|
25
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Average
Carrying Value |
|
Interest
Income Recognized (2) |
|
Average
Carrying Value |
|
Interest
Income Recognized (2) |
|
Average
Carrying Value |
|
Interest
Income Recognized (2) |
||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct/Indirect consumer
|
|
$
|
21
|
|
|
$
|
2
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. credit card
|
|
$
|
464
|
|
|
$
|
25
|
|
|
$
|
556
|
|
|
$
|
31
|
|
|
$
|
749
|
|
|
$
|
43
|
|
Non-U.S. credit card
|
|
47
|
|
|
1
|
|
|
111
|
|
|
3
|
|
|
145
|
|
|
4
|
|
||||||
Direct/Indirect consumer
|
|
2
|
|
|
—
|
|
|
10
|
|
|
1
|
|
|
51
|
|
|
3
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. credit card
|
|
$
|
464
|
|
|
$
|
25
|
|
|
$
|
556
|
|
|
$
|
31
|
|
|
$
|
749
|
|
|
$
|
43
|
|
Non-U.S. credit card
|
|
47
|
|
|
1
|
|
|
111
|
|
|
3
|
|
|
145
|
|
|
4
|
|
||||||
Direct/Indirect consumer
|
|
23
|
|
|
2
|
|
|
30
|
|
|
1
|
|
|
73
|
|
|
3
|
|
(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 – TDRs by Program Type at December 31
|
|||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
Internal Programs
|
|
External Programs
|
|
Other
(1)
|
|
Total
|
|
Percent of Balances Current or Less Than 30 Days Past Due
|
||||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||
U.S. credit card
|
$
|
203
|
|
|
$
|
220
|
|
|
$
|
257
|
|
|
$
|
264
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
461
|
|
|
$
|
485
|
|
|
86.92
|
%
|
|
88.99
|
%
|
Non-U.S. credit card
|
n/a
|
|
|
11
|
|
|
n/a
|
|
|
7
|
|
|
n/a
|
|
|
82
|
|
|
n/a
|
|
|
100
|
|
|
n/a
|
|
|
38.47
|
|
||||||||
Direct/Indirect consumer
|
1
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
28
|
|
|
22
|
|
|
29
|
|
|
25
|
|
|
88.16
|
|
|
90.49
|
|
||||||||
Total TDRs by program type
|
$
|
204
|
|
|
$
|
233
|
|
|
$
|
257
|
|
|
$
|
272
|
|
|
$
|
29
|
|
|
$
|
105
|
|
|
$
|
490
|
|
|
$
|
610
|
|
|
87.00
|
|
|
80.79
|
|
(1)
|
Other TDRs for non-U.S. credit card included modifications of accounts that are ineligible for a fixed payment plan.
|
|
|
Bank of America 2017
134
|
|
|
|
|
|
|
|
|
||||||
Credit Card and Other Consumer – TDRs Entered into During 2017, 2016 and 2015
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
Unpaid Principal Balance
|
|
Carrying Value
(1)
|
|
Pre-
Modification
Interest Rate
|
|
Post-
Modification
Interest Rate
|
||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||
U.S. credit card
|
$
|
203
|
|
|
$
|
213
|
|
|
18.47
|
%
|
|
5.32
|
%
|
Direct/Indirect consumer
|
37
|
|
|
22
|
|
|
4.81
|
|
|
4.30
|
|
||
Total
(2)
|
$
|
240
|
|
|
$
|
235
|
|
|
17.17
|
|
|
5.22
|
|
|
|
|
|
|
|
|
|
||||||
|
December 31, 2016
|
||||||||||||
U.S. credit card
|
$
|
163
|
|
|
$
|
172
|
|
|
17.54
|
%
|
|
5.47
|
%
|
Non-U.S. credit card
|
66
|
|
|
75
|
|
|
23.99
|
|
|
0.52
|
|
||
Direct/Indirect consumer
|
21
|
|
|
13
|
|
|
3.44
|
|
|
3.29
|
|
||
Total
(2)
|
$
|
250
|
|
|
$
|
260
|
|
|
18.73
|
|
|
3.93
|
|
|
|
|
|
|
|
|
|
||||||
|
December 31, 2015
|
||||||||||||
U.S. credit card
|
$
|
205
|
|
|
$
|
218
|
|
|
17.07
|
%
|
|
5.08
|
%
|
Non-U.S. credit card
|
74
|
|
|
86
|
|
|
24.05
|
|
|
0.53
|
|
||
Direct/Indirect consumer
|
19
|
|
|
12
|
|
|
5.95
|
|
|
5.19
|
|
||
Total
(2)
|
$
|
298
|
|
|
$
|
316
|
|
|
18.58
|
|
|
3.84
|
|
(1)
|
Includes accrued interest and fees.
|
(2)
|
Net charge-offs were
$52 million
,
$74 million
and
$98 million
in
2017
,
2016
and
2015
, respectively.
|
135
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Loans – Commercial
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Unpaid
Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
|
Unpaid
Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
||||||||||||
(Dollars in millions)
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. commercial
|
$
|
576
|
|
|
$
|
571
|
|
|
$
|
—
|
|
|
$
|
860
|
|
|
$
|
827
|
|
|
$
|
—
|
|
Non-U.S. commercial
|
14
|
|
|
11
|
|
|
—
|
|
|
130
|
|
|
130
|
|
|
—
|
|
||||||
Commercial real estate
|
83
|
|
|
80
|
|
|
—
|
|
|
77
|
|
|
71
|
|
|
—
|
|
||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. commercial
|
$
|
1,393
|
|
|
$
|
1,109
|
|
|
$
|
98
|
|
|
$
|
2,018
|
|
|
$
|
1,569
|
|
|
$
|
132
|
|
Non-U.S. commercial
|
528
|
|
|
507
|
|
|
58
|
|
|
545
|
|
|
432
|
|
|
104
|
|
||||||
Commercial real estate
|
133
|
|
|
41
|
|
|
4
|
|
|
243
|
|
|
96
|
|
|
10
|
|
||||||
Commercial lease financing
|
20
|
|
|
18
|
|
|
3
|
|
|
6
|
|
|
4
|
|
|
—
|
|
||||||
U.S. small business commercial
(1)
|
84
|
|
|
70
|
|
|
27
|
|
|
85
|
|
|
73
|
|
|
27
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. commercial
|
$
|
1,969
|
|
|
$
|
1,680
|
|
|
$
|
98
|
|
|
$
|
2,878
|
|
|
$
|
2,396
|
|
|
$
|
132
|
|
Non-U.S. commercial
|
542
|
|
|
518
|
|
|
58
|
|
|
675
|
|
|
562
|
|
|
104
|
|
||||||
Commercial real estate
|
216
|
|
|
121
|
|
|
4
|
|
|
320
|
|
|
167
|
|
|
10
|
|
||||||
Commercial lease financing
|
20
|
|
|
18
|
|
|
3
|
|
|
6
|
|
|
4
|
|
|
—
|
|
||||||
U.S. small business commercial
(1)
|
84
|
|
|
70
|
|
|
27
|
|
|
85
|
|
|
73
|
|
|
27
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Average
Carrying Value |
|
Interest
Income Recognized (2) |
|
Average
Carrying Value |
|
Interest
Income Recognized (2) |
|
Average
Carrying Value |
|
Interest
Income Recognized (2) |
||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. commercial
|
$
|
772
|
|
|
$
|
12
|
|
|
$
|
787
|
|
|
$
|
14
|
|
|
$
|
688
|
|
|
$
|
14
|
|
Non-U.S. commercial
|
46
|
|
|
—
|
|
|
34
|
|
|
1
|
|
|
29
|
|
|
1
|
|
||||||
Commercial real estate
|
69
|
|
|
1
|
|
|
67
|
|
|
—
|
|
|
75
|
|
|
1
|
|
||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. commercial
|
$
|
1,260
|
|
|
$
|
33
|
|
|
$
|
1,569
|
|
|
$
|
59
|
|
|
$
|
953
|
|
|
$
|
48
|
|
Non-U.S. commercial
|
463
|
|
|
13
|
|
|
409
|
|
|
14
|
|
|
125
|
|
|
7
|
|
||||||
Commercial real estate
|
73
|
|
|
2
|
|
|
92
|
|
|
4
|
|
|
216
|
|
|
7
|
|
||||||
Commercial lease financing
|
8
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
U.S. small business commercial
(1)
|
73
|
|
|
—
|
|
|
87
|
|
|
1
|
|
|
109
|
|
|
1
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. commercial
|
$
|
2,032
|
|
|
$
|
45
|
|
|
$
|
2,356
|
|
|
$
|
73
|
|
|
$
|
1,641
|
|
|
$
|
62
|
|
Non-U.S. commercial
|
509
|
|
|
13
|
|
|
443
|
|
|
15
|
|
|
154
|
|
|
8
|
|
||||||
Commercial real estate
|
142
|
|
|
3
|
|
|
159
|
|
|
4
|
|
|
291
|
|
|
8
|
|
||||||
Commercial lease financing
|
8
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
U.S. small business commercial
(1)
|
73
|
|
|
—
|
|
|
87
|
|
|
1
|
|
|
109
|
|
|
1
|
|
(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.
|
|
|
Bank of America 2017
136
|
|
|
|
|
||||
Commercial – TDRs Entered into During 2017, 2016 and 2015
|
|||||||
|
|
||||||
|
Unpaid Principal Balance
|
|
Carrying Value
|
||||
(Dollars in millions)
|
December 31, 2017
|
||||||
U.S. commercial
|
$
|
1,033
|
|
|
$
|
922
|
|
Non-U.S. commercial
|
105
|
|
|
105
|
|
||
Commercial real estate
|
35
|
|
|
24
|
|
||
Commercial lease financing
|
20
|
|
|
17
|
|
||
U.S. small business commercial
(1)
|
13
|
|
|
13
|
|
||
Total
(2)
|
$
|
1,206
|
|
|
$
|
1,081
|
|
|
|
|
|
||||
|
December 31, 2016
|
||||||
U.S. commercial
|
$
|
1,556
|
|
|
$
|
1,482
|
|
Non-U.S. commercial
|
255
|
|
|
253
|
|
||
Commercial real estate
|
77
|
|
|
77
|
|
||
Commercial lease financing
|
6
|
|
|
4
|
|
||
U.S. small business commercial
(1)
|
1
|
|
|
1
|
|
||
Total
(2)
|
$
|
1,895
|
|
|
$
|
1,817
|
|
|
|
|
|
||||
|
December 31, 2015
|
||||||
U.S. commercial
|
$
|
853
|
|
|
$
|
779
|
|
Non-U.S. commercial
|
329
|
|
|
326
|
|
||
Commercial real estate
|
42
|
|
|
42
|
|
||
U.S. small business commercial
(1)
|
14
|
|
|
11
|
|
||
Total
(2)
|
$
|
1,238
|
|
|
$
|
1,158
|
|
(1)
|
U.S. small business commercial TDRs are comprised of renegotiated small business card loans.
|
(2)
|
Net charge-offs were
$138 million
,
$137 million
and
$31 million
in
2017
,
2016
and
2015
, respectively.
|
|
|
|
||
Rollforward of Accretable Yield
|
|
|
||
|
|
|
||
(Dollars in millions)
|
|
|
||
Accretable yield, January 1, 2016
|
|
$
|
4,569
|
|
Accretion
|
|
(722
|
)
|
|
Disposals/transfers
|
|
(486
|
)
|
|
Reclassifications from nonaccretable difference
|
|
444
|
|
|
Accretable yield, December 31, 2016
|
|
3,805
|
|
|
Accretion
|
|
(601
|
)
|
|
Disposals/transfers
|
|
(634
|
)
|
|
Reclassifications from nonaccretable difference
|
|
219
|
|
|
Accretable yield, December 31, 2017
|
|
$
|
2,789
|
|
137
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Consumer
Real Estate
(1)
|
|
Credit Card and Other Consumer
|
|
Commercial
|
|
Total
Allowance
|
||||||||
(Dollars in millions)
|
2017
|
||||||||||||||
Allowance for loan and lease losses, January 1
|
$
|
2,750
|
|
|
$
|
3,229
|
|
|
$
|
5,258
|
|
|
$
|
11,237
|
|
Loans and leases charged off
|
(770
|
)
|
|
(3,774
|
)
|
|
(1,075
|
)
|
|
(5,619
|
)
|
||||
Recoveries of loans and leases previously charged off
|
657
|
|
|
809
|
|
|
174
|
|
|
1,640
|
|
||||
Net charge-offs
(2)
|
(113
|
)
|
|
(2,965
|
)
|
|
(901
|
)
|
|
(3,979
|
)
|
||||
Write-offs of PCI loans
(3)
|
(207
|
)
|
|
—
|
|
|
—
|
|
|
(207
|
)
|
||||
Provision for loan and lease losses
(4)
|
(710
|
)
|
|
3,437
|
|
|
654
|
|
|
3,381
|
|
||||
Other
(5)
|
—
|
|
|
(38
|
)
|
|
(1
|
)
|
|
(39
|
)
|
||||
Allowance for loan and lease losses, December 31
|
1,720
|
|
|
3,663
|
|
|
5,010
|
|
|
10,393
|
|
||||
Reserve for unfunded lending commitments, January 1
|
—
|
|
|
—
|
|
|
762
|
|
|
762
|
|
||||
Provision for unfunded lending commitments
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||
Reserve for unfunded lending commitments, December 31
|
—
|
|
|
—
|
|
|
777
|
|
|
777
|
|
||||
Allowance for credit losses, December 31
|
$
|
1,720
|
|
|
$
|
3,663
|
|
|
$
|
5,787
|
|
|
$
|
11,170
|
|
|
2016
|
||||||||||||||
Allowance for loan and lease losses, January 1
|
$
|
3,914
|
|
|
$
|
3,471
|
|
|
$
|
4,849
|
|
|
$
|
12,234
|
|
Loans and leases charged off
|
(1,155
|
)
|
|
(3,553
|
)
|
|
(740
|
)
|
|
(5,448
|
)
|
||||
Recoveries of loans and leases previously charged off
|
619
|
|
|
770
|
|
|
238
|
|
|
1,627
|
|
||||
Net charge-offs
(2)
|
(536
|
)
|
|
(2,783
|
)
|
|
(502
|
)
|
|
(3,821
|
)
|
||||
Write-offs of PCI loans
(3)
|
(340
|
)
|
|
—
|
|
|
—
|
|
|
(340
|
)
|
||||
Provision for loan and lease losses
(4)
|
(258
|
)
|
|
2,826
|
|
|
1,013
|
|
|
3,581
|
|
||||
Other
(5)
|
(30
|
)
|
|
(42
|
)
|
|
(102
|
)
|
|
(174
|
)
|
||||
Total allowance for loan and lease losses, December 31
|
2,750
|
|
|
3,472
|
|
|
5,258
|
|
|
11,480
|
|
||||
Less: Allowance included in assets of business held for sale
(6)
|
—
|
|
|
(243
|
)
|
|
—
|
|
|
(243
|
)
|
||||
Allowance for loan and lease losses, December 31
|
2,750
|
|
|
3,229
|
|
|
5,258
|
|
|
11,237
|
|
||||
Reserve for unfunded lending commitments, January 1
|
—
|
|
|
—
|
|
|
646
|
|
|
646
|
|
||||
Provision for unfunded lending commitments
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||
Other
(5)
|
—
|
|
|
—
|
|
|
100
|
|
|
100
|
|
||||
Reserve for unfunded lending commitments, December 31
|
—
|
|
|
—
|
|
|
762
|
|
|
762
|
|
||||
Allowance for credit losses, December 31
|
$
|
2,750
|
|
|
$
|
3,229
|
|
|
$
|
6,020
|
|
|
$
|
11,999
|
|
|
2015
|
||||||||||||||
Allowance for loan and lease losses, January 1
|
$
|
5,935
|
|
|
$
|
4,047
|
|
|
$
|
4,437
|
|
|
$
|
14,419
|
|
Loans and leases charged off
|
(1,841
|
)
|
|
(3,620
|
)
|
|
(644
|
)
|
|
(6,105
|
)
|
||||
Recoveries of loans and leases previously charged off
|
732
|
|
|
813
|
|
|
222
|
|
|
1,767
|
|
||||
Net charge-offs
|
(1,109
|
)
|
|
(2,807
|
)
|
|
(422
|
)
|
|
(4,338
|
)
|
||||
Write-offs of PCI loans
(3)
|
(808
|
)
|
|
—
|
|
|
—
|
|
|
(808
|
)
|
||||
Provision for loan and lease losses
(4)
|
(70
|
)
|
|
2,278
|
|
|
835
|
|
|
3,043
|
|
||||
Other
(5)
|
(34
|
)
|
|
(47
|
)
|
|
(1
|
)
|
|
(82
|
)
|
||||
Allowance for loan and lease losses, December 31
|
3,914
|
|
|
3,471
|
|
|
4,849
|
|
|
12,234
|
|
||||
Reserve for unfunded lending commitments, January 1
|
—
|
|
|
—
|
|
|
528
|
|
|
528
|
|
||||
Provision for unfunded lending commitments
|
—
|
|
|
—
|
|
|
118
|
|
|
118
|
|
||||
Reserve for unfunded lending commitments, December 31
|
—
|
|
|
—
|
|
|
646
|
|
|
646
|
|
||||
Allowance for credit losses, December 31
|
$
|
3,914
|
|
|
$
|
3,471
|
|
|
$
|
5,495
|
|
|
$
|
12,880
|
|
(1)
|
Includes valuation allowance associated with the PCI loan portfolio.
|
(2)
|
Includes net charge-offs related to the non-U.S. credit card loan portfolio, which was included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
(3)
|
Includes write-offs of
$87 million
,
$60 million
and
$234 million
associated with the sale of PCI loans in
2017
,
2016
and
2015
, respectively.
|
(4)
|
Includes provision
expense
of
$76 million
and a
benefit
of
$45 million
and
$40 million
associated with the PCI loan portfolio in
2017
,
2016
and
2015
, respectively.
|
(5)
|
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held-for-sale and certain other reclassifications.
|
(6)
|
Represents allowance for loan and lease losses related to the non-U.S. credit card loan portfolio, which was sold in 2017.
|
|
|
Bank of America 2017
138
|
|
|
|
|
|
|
|
|
||||||||
Allowance and Carrying Value by Portfolio Segment
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
|
Consumer
Real Estate |
|
Credit Card and Other Consumer
|
|
Commercial
|
|
Total
|
||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||
Impaired loans and troubled debt restructurings
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance for loan and lease losses
(2)
|
$
|
348
|
|
|
$
|
125
|
|
|
$
|
190
|
|
|
$
|
663
|
|
Carrying value
(3)
|
12,554
|
|
|
490
|
|
|
2,407
|
|
|
15,451
|
|
||||
Allowance as a percentage of carrying value
|
2.77
|
%
|
|
25.51
|
%
|
|
7.89
|
%
|
|
4.29
|
%
|
||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance for loan and lease losses
|
$
|
1,083
|
|
|
$
|
3,538
|
|
|
$
|
4,820
|
|
|
$
|
9,441
|
|
Carrying value
(3, 4)
|
238,284
|
|
|
192,303
|
|
|
474,284
|
|
|
904,871
|
|
||||
Allowance as a percentage of carrying value
(4)
|
0.45
|
%
|
|
1.84
|
%
|
|
1.02
|
%
|
|
1.04
|
%
|
||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
|
|
|
|||||
Valuation allowance
|
$
|
289
|
|
|
n/a
|
|
|
n/a
|
|
|
$
|
289
|
|
||
Carrying value gross of valuation allowance
|
10,717
|
|
|
n/a
|
|
|
n/a
|
|
|
10,717
|
|
||||
Valuation allowance as a percentage of carrying value
|
2.70
|
%
|
|
n/a
|
|
|
n/a
|
|
|
2.70
|
%
|
||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance for loan and lease losses
|
$
|
1,720
|
|
|
$
|
3,663
|
|
|
$
|
5,010
|
|
|
$
|
10,393
|
|
Carrying value
(3, 4)
|
261,555
|
|
|
192,793
|
|
|
476,691
|
|
|
931,039
|
|
||||
Allowance as a percentage of carrying value
(4)
|
0.66
|
%
|
|
1.90
|
%
|
|
1.05
|
%
|
|
1.12
|
%
|
|
December 31, 2016
|
||||||||||||||
Impaired loans and troubled debt restructurings
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance for loan and lease losses
(2)
|
$
|
356
|
|
|
$
|
189
|
|
|
$
|
273
|
|
|
$
|
818
|
|
Carrying value
(3)
|
15,408
|
|
|
610
|
|
|
3,202
|
|
|
19,220
|
|
||||
Allowance as a percentage of carrying value
|
2.31
|
%
|
|
30.98
|
%
|
|
8.53
|
%
|
|
4.26
|
%
|
||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for loan and lease losses
|
$
|
1,975
|
|
|
$
|
3,283
|
|
|
$
|
4,985
|
|
|
$
|
10,243
|
|
Carrying value
(3, 4)
|
229,094
|
|
|
197,470
|
|
|
449,290
|
|
|
875,854
|
|
||||
Allowance as a percentage of carrying value
(4)
|
0.86
|
%
|
|
1.66
|
%
|
|
1.11
|
%
|
|
1.17
|
%
|
||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
|
|
||||||
Valuation allowance
|
$
|
419
|
|
|
n/a
|
|
|
n/a
|
|
|
$
|
419
|
|
||
Carrying value gross of valuation allowance
|
13,738
|
|
|
n/a
|
|
|
n/a
|
|
|
13,738
|
|
||||
Valuation allowance as a percentage of carrying value
|
3.05
|
%
|
|
n/a
|
|
|
n/a
|
|
|
3.05
|
%
|
||||
Less: Assets of business held for sale
(5)
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
(6)
|
n/a
|
|
|
$
|
(243
|
)
|
|
n/a
|
|
|
$
|
(243
|
)
|
||
Carrying value
(3)
|
n/a
|
|
|
(9,214
|
)
|
|
n/a
|
|
|
(9,214
|
)
|
||||
Total
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for loan and lease losses
|
$
|
2,750
|
|
|
$
|
3,229
|
|
|
$
|
5,258
|
|
|
$
|
11,237
|
|
Carrying value
(3, 4)
|
258,240
|
|
|
188,866
|
|
|
452,492
|
|
|
899,598
|
|
||||
Allowance as a percentage of carrying value
(4)
|
1.06
|
%
|
|
1.71
|
%
|
|
1.16
|
%
|
|
1.25
|
%
|
(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
$27 million
related to impaired U.S. small business commercial at both
December 31, 2017
and
2016
.
|
(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
$5.7 billion
and
$7.1 billion
at
December 31, 2017
and
2016
.
|
(5)
|
Represents allowance for loan and lease losses and loans related to the non-U.S. credit card loan portfolio, which was included in assets of business held for sale on the Consolidated Balance Sheet at
December 31, 2016
. In 2017, the Corporation sold its non-U.S. consumer credit card business.
|
(6)
|
Includes
$61 million
of allowance for loan and lease losses related to impaired loans and TDRs and $
182 million
related to loans collectively evaluated for impairment at
December 31, 2016
.
|
139
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First-lien Mortgage Securitizations
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Residential Mortgage - Agency
|
|
Commercial Mortgage
|
||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Cash proceeds from new securitizations
(1)
|
$
|
14,467
|
|
|
$
|
24,201
|
|
|
$
|
27,164
|
|
|
$
|
5,641
|
|
|
$
|
3,887
|
|
|
$
|
7,945
|
|
Gains on securitizations
(2)
|
158
|
|
|
370
|
|
|
894
|
|
|
91
|
|
|
38
|
|
|
49
|
|
||||||
Repurchases from securitization trusts
(3)
|
2,713
|
|
|
3,611
|
|
|
3,716
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(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 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
$243 million
,
$487 million
and
$750 million
net of hedges, during
2017
,
2016
and
2015
, respectively, are not included in the table above.
|
(3)
|
The Corporation may have the option to repurchase delinquent loans out of securitization trusts, which reduces the amount of servicing advances it is required to make. The Corporation may also repurchase loans from securitization trusts to perform modifications. Repurchased loans include FHA-insured mortgages collateralizing GNMA securities.
|
|
|
Bank of America 2017
140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
First-lien Mortgage VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Residential Mortgage
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
Non-agency
|
|
|
|
|
|
|||||||||||||||||||||||
|
Agency
|
|
Prime
|
|
Subprime
|
|
Alt-A
|
|
Commercial Mortgage
|
|||||||||||||||||||||||||
|
December 31
|
|||||||||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||||||||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maximum loss exposure
(1)
|
$
|
19,110
|
|
$
|
22,661
|
|
|
$
|
689
|
|
$
|
757
|
|
|
$
|
2,643
|
|
$
|
2,750
|
|
|
$
|
403
|
|
$
|
560
|
|
|
$
|
585
|
|
$
|
344
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Senior securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account assets
|
$
|
716
|
|
$
|
1,399
|
|
|
$
|
6
|
|
$
|
20
|
|
|
$
|
10
|
|
$
|
112
|
|
|
$
|
50
|
|
$
|
118
|
|
|
$
|
108
|
|
$
|
51
|
|
Debt securities carried at fair value
|
15,036
|
|
17,620
|
|
|
477
|
|
441
|
|
|
2,221
|
|
2,235
|
|
|
351
|
|
305
|
|
|
—
|
|
—
|
|
||||||||||
Held-to-maturity securities
|
3,348
|
|
3,630
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
274
|
|
64
|
|
||||||||||
Subordinate securities
|
—
|
|
—
|
|
|
5
|
|
9
|
|
|
38
|
|
25
|
|
|
2
|
|
24
|
|
|
69
|
|
81
|
|
||||||||||
Residual interests
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
19
|
|
25
|
|
||||||||||
All other assets
(2)
|
10
|
|
12
|
|
|
—
|
|
28
|
|
|
—
|
|
—
|
|
|
—
|
|
113
|
|
|
—
|
|
—
|
|
||||||||||
Total retained positions
|
$
|
19,110
|
|
$
|
22,661
|
|
|
$
|
488
|
|
$
|
498
|
|
|
$
|
2,269
|
|
$
|
2,372
|
|
|
$
|
403
|
|
$
|
560
|
|
|
$
|
470
|
|
$
|
221
|
|
Principal balance outstanding
(3)
|
$
|
232,761
|
|
$
|
265,332
|
|
|
$
|
10,549
|
|
$
|
16,280
|
|
|
$
|
10,254
|
|
$
|
19,373
|
|
|
$
|
28,129
|
|
$
|
35,788
|
|
|
$
|
26,504
|
|
$
|
23,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maximum loss exposure
(1)
|
$
|
14,502
|
|
$
|
18,084
|
|
|
$
|
571
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
25
|
|
|
$
|
—
|
|
$
|
—
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account assets
|
$
|
232
|
|
$
|
434
|
|
|
$
|
571
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
99
|
|
|
$
|
—
|
|
$
|
—
|
|
Loans and leases, net
|
14,030
|
|
17,223
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
All other assets
|
240
|
|
427
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Total assets
|
$
|
14,502
|
|
$
|
18,084
|
|
|
$
|
571
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
99
|
|
|
$
|
—
|
|
$
|
—
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
74
|
|
|
$
|
—
|
|
$
|
—
|
|
All other liabilities
|
3
|
|
4
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Total liabilities
|
$
|
3
|
|
$
|
4
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
74
|
|
|
$
|
—
|
|
$
|
—
|
|
(1)
|
Maximum loss exposure includes obligations under loss-sharing reinsurance and other arrangements for non-agency residential mortgage and commercial mortgage securitizations, but excludes the reserve for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations. For more information, see
Note 7 – Representations and Warranties Obligations and Corporate Guarantees
and
Note 20 – Fair Value Measurements
.
|
(2)
|
Not included in the table above are all other assets of
$148 million
and
$189 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
$148 million
and
$189 million
, representing the principal amount that would be payable to the securitization vehicles if the Corporation was to exercise the repurchase option, at
December 31, 2017
and
2016
.
|
(3)
|
Principal balance outstanding includes loans where the Corporation was the transferor to securitization vehicles with which it has continuing involvement, which may include servicing the loans.
|
141
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Home Equity Loan, Credit Card and Other Asset-backed VIEs
|
|
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Home Equity Loan
(1)
|
|
Credit Card
(2, 3)
|
|
Resecuritization Trusts
|
|
Municipal Bond Trusts
|
||||||||||||||||||||
|
December 31
|
||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maximum loss exposure
|
$
|
1,522
|
|
$
|
2,732
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
8,204
|
|
$
|
9,906
|
|
|
$
|
1,631
|
|
$
|
1,635
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Senior securities
(4)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account assets
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
869
|
|
$
|
902
|
|
|
$
|
33
|
|
$
|
—
|
|
Debt securities carried at fair value
|
36
|
|
46
|
|
|
—
|
|
—
|
|
|
1,661
|
|
2,338
|
|
|
—
|
|
—
|
|
||||||||
Held-to-maturity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
5,644
|
|
6,569
|
|
|
—
|
|
—
|
|
||||||||
Subordinate securities
(4)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
30
|
|
97
|
|
|
—
|
|
—
|
|
||||||||
Total retained positions
|
$
|
36
|
|
$
|
46
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
8,204
|
|
$
|
9,906
|
|
|
$
|
33
|
|
$
|
—
|
|
Total assets of VIEs
(5)
|
$
|
2,432
|
|
$
|
4,274
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
19,281
|
|
$
|
22,155
|
|
|
$
|
2,287
|
|
$
|
2,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Maximum loss exposure
|
$
|
112
|
|
$
|
149
|
|
|
$
|
24,337
|
|
$
|
25,859
|
|
|
$
|
628
|
|
$
|
420
|
|
|
$
|
1,453
|
|
$
|
1,442
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account assets
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
1,557
|
|
$
|
1,428
|
|
|
$
|
1,452
|
|
$
|
1,454
|
|
Loans and leases
|
177
|
|
244
|
|
|
32,554
|
|
35,135
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Allowance for loan and lease losses
|
(9
|
)
|
(16
|
)
|
|
(988
|
)
|
(1,007
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
All other assets
|
6
|
|
7
|
|
|
1,385
|
|
793
|
|
|
—
|
|
—
|
|
|
1
|
|
—
|
|
||||||||
Total assets
|
$
|
174
|
|
$
|
235
|
|
|
$
|
32,951
|
|
$
|
34,921
|
|
|
$
|
1,557
|
|
$
|
1,428
|
|
|
$
|
1,453
|
|
$
|
1,454
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
312
|
|
$
|
348
|
|
Long-term debt
|
76
|
|
108
|
|
|
8,598
|
|
9,049
|
|
|
929
|
|
1,008
|
|
|
—
|
|
12
|
|
||||||||
All other liabilities
|
—
|
|
—
|
|
|
16
|
|
13
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Total liabilities
|
$
|
76
|
|
$
|
108
|
|
|
$
|
8,614
|
|
$
|
9,062
|
|
|
$
|
929
|
|
$
|
1,008
|
|
|
$
|
312
|
|
$
|
360
|
|
(1)
|
For unconsolidated home equity loan VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves. For both consolidated and unconsolidated home equity loan VIEs, the maximum loss exposure excludes the reserve for representations and warranties obligations and corporate guarantees. For more information, see
Note 7 – Representations and Warranties Obligations and Corporate Guarantees
.
|
(2)
|
At
December 31, 2017
and
2016
, loans and leases in the consolidated credit card trust included
$15.6 billion
and
$17.6 billion
of seller’s interest.
|
(3)
|
At
December 31, 2017
and
2016
, all other assets in the consolidated credit card trust included restricted cash, certain short-term investments, and unbilled accrued interest and fees.
|
(4)
|
The retained senior and subordinate securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy).
|
(5)
|
Total assets include loans the Corporation transferred with which it has continuing involvement, which may include servicing the loan.
|
|
|
Bank of America 2017
142
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other VIEs
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
||||||||||||||||||||
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
||||||||||||
|
December 31
|
||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||||||||||||||||||
Maximum loss exposure
|
$
|
4,660
|
|
|
$
|
19,785
|
|
|
$
|
24,445
|
|
|
$
|
6,114
|
|
|
$
|
17,754
|
|
|
$
|
23,868
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trading account assets
|
$
|
2,709
|
|
|
$
|
346
|
|
|
$
|
3,055
|
|
|
$
|
2,358
|
|
|
$
|
233
|
|
|
$
|
2,591
|
|
Debt securities carried at fair value
|
—
|
|
|
160
|
|
|
160
|
|
|
—
|
|
|
122
|
|
|
122
|
|
||||||
Loans and leases
|
2,152
|
|
|
3,596
|
|
|
5,748
|
|
|
3,399
|
|
|
3,249
|
|
|
6,648
|
|
||||||
Allowance for loan and lease losses
|
(3
|
)
|
|
(32
|
)
|
|
(35
|
)
|
|
(9
|
)
|
|
(24
|
)
|
|
(33
|
)
|
||||||
Loans held-for-sale
|
27
|
|
|
940
|
|
|
967
|
|
|
188
|
|
|
464
|
|
|
652
|
|
||||||
All other assets
|
62
|
|
|
14,276
|
|
|
14,338
|
|
|
369
|
|
|
13,156
|
|
|
13,525
|
|
||||||
Total
|
$
|
4,947
|
|
|
$
|
19,286
|
|
|
$
|
24,233
|
|
|
$
|
6,305
|
|
|
$
|
17,200
|
|
|
$
|
23,505
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt
(1)
|
$
|
270
|
|
|
$
|
—
|
|
|
$
|
270
|
|
|
$
|
395
|
|
|
$
|
—
|
|
|
$
|
395
|
|
All other liabilities
|
18
|
|
|
3,417
|
|
|
3,435
|
|
|
24
|
|
|
2,959
|
|
|
2,983
|
|
||||||
Total
|
$
|
288
|
|
|
$
|
3,417
|
|
|
$
|
3,705
|
|
|
$
|
419
|
|
|
$
|
2,959
|
|
|
$
|
3,378
|
|
Total assets of VIEs
|
$
|
4,947
|
|
|
$
|
69,746
|
|
|
$
|
74,693
|
|
|
$
|
6,305
|
|
|
$
|
62,269
|
|
|
$
|
68,574
|
|
(1)
|
Includes
$1 million
and
$229 million
of long-term debt at
December 31, 2017 and 2016
issued by other consolidated VIEs, which has recourse to the general credit of the Corporation.
|
143
Bank of America 2017
|
|
|
|
|
|
|
||||
Unresolved Repurchase Claims by Counterparty, Net of Duplicate Claims
|
|||||||
|
|
|
|
||||
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
By counterparty
|
|
|
|
|
|
||
Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other
(1)
|
$
|
16,064
|
|
|
$
|
16,685
|
|
Monolines
|
1,565
|
|
|
1,583
|
|
||
GSEs
|
5
|
|
|
9
|
|
||
Total unresolved repurchase claims by counterparty, net of duplicate claims
|
$
|
17,634
|
|
|
$
|
18,277
|
|
(1)
|
Includes
$11.4 billion
and
$11.9 billion
of claims based on individual file reviews and
$4.7 billion
and
$4.8 billion
of claims submitted without individual file reviews at
December 31, 2017
and
2016
.
|
|
|
Bank of America 2017
144
|
|
|
|
|
||||
Representations and Warranties and Corporate Guarantees
|
|||||||
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Reserve for representations and warranties and corporate guarantees, January 1
|
$
|
2,339
|
|
|
$
|
11,326
|
|
Additions for new sales
|
4
|
|
|
4
|
|
||
Payments
(1)
|
(814
|
)
|
|
(9,097
|
)
|
||
Provision
|
393
|
|
|
106
|
|
||
Reserve for representations and warranties and corporate guarantees, December 31
|
$
|
1,922
|
|
|
$
|
2,339
|
|
(1)
|
In February 2016, the Corporation made an
$8.5 billion
settlement payment as part of the settlement with BNY Mellon.
|
145
Bank of America 2017
|
|
|
|
|
|
|
||||
Goodwill
|
|
|
|
||||
|
|
|
|
||||
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Consumer Banking
|
$
|
30,123
|
|
|
$
|
30,123
|
|
Global Wealth & Investment Management
|
9,677
|
|
|
9,681
|
|
||
Global Banking
|
23,923
|
|
|
23,923
|
|
||
Global Markets
|
5,182
|
|
|
5,197
|
|
||
All Other
|
46
|
|
|
820
|
|
||
Less: Goodwill of business held for sale
(1)
|
—
|
|
|
(775
|
)
|
||
Total goodwill
|
$
|
68,951
|
|
|
$
|
68,969
|
|
(1)
|
Reflects the goodwill assigned to the non-U.S. consumer credit card business, which was included in assets of business held for sale on the Consolidated Balance Sheet at
December 31, 2016
. In
2017
, the Corporation sold its non-U.S. consumer credit card business.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Intangible Assets
(1, 2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gross
Carrying Value |
|
Accumulated
Amortization |
|
Net
Carrying Value |
|
Gross
Carrying Value |
|
Accumulated
Amortization |
|
Net
Carrying Value |
||||||||||||
(Dollars in millions)
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
Purchased credit card and affinity relationships
|
$
|
5,919
|
|
|
$
|
5,604
|
|
|
$
|
315
|
|
|
$
|
6,830
|
|
|
$
|
6,243
|
|
|
$
|
587
|
|
Core deposit and other intangibles
(3)
|
3,835
|
|
|
2,140
|
|
|
1,695
|
|
|
3,836
|
|
|
2,046
|
|
|
1,790
|
|
||||||
Customer relationships
|
3,886
|
|
|
3,584
|
|
|
302
|
|
|
3,887
|
|
|
3,275
|
|
|
612
|
|
||||||
Total intangible assets
(4)
|
$
|
13,640
|
|
|
$
|
11,328
|
|
|
$
|
2,312
|
|
|
$
|
14,553
|
|
|
$
|
11,564
|
|
|
$
|
2,989
|
|
(1)
|
Excludes fully amortized intangible assets.
|
(2)
|
At
December 31, 2017
and
2016
, none of the intangible assets were impaired.
|
(3)
|
Includes
$1.6 billion
at both
December 31, 2017
and
2016
of intangible assets associated with trade names that have an indefinite life and, accordingly, are not amortized.
|
(4)
|
Includes
$67 million
at
December 31, 2016
of intangible assets assigned to the non-U.S. consumer credit card business, which was included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016.
|
|
|
Bank of America 2017
146
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time Deposits of $100 Thousand or More
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2017
|
|
December 31
2016 |
||||||||||||||||
(Dollars in millions)
|
Three Months
or Less
|
|
Over Three
Months to
Twelve Months
|
|
Thereafter
|
|
Total
|
|
Total
|
||||||||||
U.S. certificates of deposit and other time deposits
|
$
|
12,505
|
|
|
$
|
10,660
|
|
|
$
|
2,027
|
|
|
$
|
25,192
|
|
|
$
|
32,898
|
|
Non-U.S. certificates of deposit and other time deposits
|
10,561
|
|
|
3,652
|
|
|
1,259
|
|
|
15,472
|
|
|
14,677
|
|
|
|
|
|
|
|
||||||
Contractual Maturities of Total Time Deposits
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
U.S.
|
|
Non-U.S.
|
|
Total
|
||||||
Due in 2018
|
$
|
46,774
|
|
|
$
|
14,264
|
|
|
$
|
61,038
|
|
Due in 2019
|
2,623
|
|
|
657
|
|
|
3,280
|
|
|||
Due in 2020
|
1,661
|
|
|
49
|
|
|
1,710
|
|
|||
Due in 2021
|
514
|
|
|
15
|
|
|
529
|
|
|||
Due in 2022
|
452
|
|
|
562
|
|
|
1,014
|
|
|||
Thereafter
|
264
|
|
|
9
|
|
|
273
|
|
|||
Total time deposits
|
$
|
52,288
|
|
|
$
|
15,556
|
|
|
$
|
67,844
|
|
|
|
|
|
|
|
|
|
||||||
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
|
|
|
|
|
|
|
||||||
Average during year
|
$
|
222,818
|
|
|
1.07
|
%
|
|
$
|
216,161
|
|
|
0.52
|
%
|
Maximum month-end balance during year
|
237,064
|
|
|
n/a
|
|
|
225,015
|
|
|
n/a
|
|
||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
|
|
|
|
|
|
|
||||||
Average during year
|
$
|
199,501
|
|
|
1.30
|
%
|
|
$
|
183,818
|
|
|
0.97
|
%
|
Maximum month-end balance during year
|
218,017
|
|
|
n/a
|
|
|
196,631
|
|
|
n/a
|
|
||
Short-term borrowings
|
|
|
|
|
|
|
|
||||||
Average during year
|
37,337
|
|
|
2.48
|
%
|
|
29,440
|
|
|
1.95
|
%
|
||
Maximum month-end balance during year
|
46,202
|
|
|
n/a
|
|
|
33,051
|
|
|
n/a
|
|
147
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities Financing Agreements
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gross Assets/Liabilities
(1)
|
|
Amounts Offset
|
|
Net Balance Sheet Amount
|
|
Financial Instruments
(2)
|
|
Net Assets/Liabilities
|
||||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||||||
Securities borrowed or purchased under agreements to resell
(3)
|
$
|
348,472
|
|
|
$
|
(135,725
|
)
|
|
$
|
212,747
|
|
|
$
|
(165,720
|
)
|
|
$
|
47,027
|
|
Securities loaned or sold under agreements to repurchase
|
$
|
312,582
|
|
|
$
|
(135,725
|
)
|
|
$
|
176,857
|
|
|
$
|
(146,205
|
)
|
|
$
|
30,652
|
|
Other
(4)
|
22,711
|
|
|
—
|
|
|
22,711
|
|
|
(22,711
|
)
|
|
—
|
|
|||||
Total
|
$
|
335,293
|
|
|
$
|
(135,725
|
)
|
|
$
|
199,568
|
|
|
$
|
(168,916
|
)
|
|
$
|
30,652
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2016
|
||||||||||||||||||
Securities borrowed or purchased under agreements to resell
(3)
|
$
|
326,970
|
|
|
$
|
(128,746
|
)
|
|
$
|
198,224
|
|
|
$
|
(154,974
|
)
|
|
$
|
43,250
|
|
Securities loaned or sold under agreements to repurchase
|
$
|
299,028
|
|
|
$
|
(128,746
|
)
|
|
$
|
170,282
|
|
|
$
|
(140,774
|
)
|
|
$
|
29,508
|
|
Other
(4)
|
14,448
|
|
|
—
|
|
|
14,448
|
|
|
(14,448
|
)
|
|
—
|
|
|||||
Total
|
$
|
313,476
|
|
|
$
|
(128,746
|
)
|
|
$
|
184,730
|
|
|
$
|
(155,222
|
)
|
|
$
|
29,508
|
|
(1)
|
Includes activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries.
|
(2)
|
Includes securities collateral received or pledged under repurchase or securities lending agreements where there is a legally enforceable master netting agreement. These amounts are not offset on the Consolidated Balance Sheet, but are shown as a reduction to derive a net asset or liability. Securities collateral received or pledged where the legal enforceability of the master netting agreements is uncertain is excluded from the table.
|
(3)
|
Excludes repurchase activity of
$10.2 billion
and
$10.1 billion
reported in loans and leases on the Consolidated Balance Sheet at
December 31, 2017
and
2016
.
|
(4)
|
Balance is reported in accrued expenses and other liabilities on the Consolidated Balance Sheet and relates to transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. In these transactions, the Corporation recognizes an asset at fair value, representing the securities received, and a liability, representing the obligation to return those securities.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Remaining Contractual Maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Overnight and Continuous
|
|
30 Days or Less
|
|
After 30 Days Through 90 Days
|
|
Greater than 90 Days
(1)
|
|
Total
|
||||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||||||
Securities sold under agreements to repurchase
|
$
|
125,956
|
|
|
$
|
79,913
|
|
|
$
|
46,091
|
|
|
$
|
38,935
|
|
|
$
|
290,895
|
|
Securities loaned
|
9,853
|
|
|
5,658
|
|
|
2,043
|
|
|
4,133
|
|
|
21,687
|
|
|||||
Other
|
22,711
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,711
|
|
|||||
Total
|
$
|
158,520
|
|
|
$
|
85,571
|
|
|
$
|
48,134
|
|
|
$
|
43,068
|
|
|
$
|
335,293
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2016
|
||||||||||||||||||
Securities sold under agreements to repurchase
|
$
|
129,853
|
|
|
$
|
77,780
|
|
|
$
|
31,851
|
|
|
$
|
40,752
|
|
|
$
|
280,236
|
|
Securities loaned
|
8,564
|
|
|
6,602
|
|
|
1,473
|
|
|
2,153
|
|
|
18,792
|
|
|||||
Other
|
14,448
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,448
|
|
|||||
Total
|
$
|
152,865
|
|
|
$
|
84,382
|
|
|
$
|
33,324
|
|
|
$
|
42,905
|
|
|
$
|
313,476
|
|
(1)
|
No agreements have maturities greater than
three years
.
|
|
|
Bank of America 2017
148
|
|
|
|
|
|
|
|
|
||||||||
Class of Collateral Pledged
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Securities Sold Under Agreements to Repurchase
|
|
Securities Loaned
|
|
Other
|
|
Total
|
||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||
U.S. government and agency securities
|
$
|
158,299
|
|
|
$
|
—
|
|
|
$
|
409
|
|
|
$
|
158,708
|
|
Corporate securities, trading loans and other
|
12,787
|
|
|
2,669
|
|
|
624
|
|
|
16,080
|
|
||||
Equity securities
|
23,975
|
|
|
13,523
|
|
|
21,628
|
|
|
59,126
|
|
||||
Non-U.S. sovereign debt
|
90,857
|
|
|
5,495
|
|
|
50
|
|
|
96,402
|
|
||||
Mortgage trading loans and ABS
|
4,977
|
|
|
—
|
|
|
—
|
|
|
4,977
|
|
||||
Total
|
$
|
290,895
|
|
|
$
|
21,687
|
|
|
$
|
22,711
|
|
|
$
|
335,293
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2016
|
||||||||||||||
U.S. government and agency securities
|
$
|
153,184
|
|
|
$
|
—
|
|
|
$
|
70
|
|
|
$
|
153,254
|
|
Corporate securities, trading loans and other
|
11,086
|
|
|
1,630
|
|
|
127
|
|
|
12,843
|
|
||||
Equity securities
|
24,007
|
|
|
11,175
|
|
|
14,196
|
|
|
49,378
|
|
||||
Non-U.S. sovereign debt
|
84,171
|
|
|
5,987
|
|
|
55
|
|
|
90,213
|
|
||||
Mortgage trading loans and ABS
|
7,788
|
|
|
—
|
|
|
—
|
|
|
7,788
|
|
||||
Total
|
$
|
280,236
|
|
|
$
|
18,792
|
|
|
$
|
14,448
|
|
|
$
|
313,476
|
|
149
Bank of America 2017
|
|
|
|
|
|
|
||||
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Notes issued by Bank of America Corporation
|
|
|
|
|
|
||
Senior notes:
|
|
|
|
|
|
||
Fixed, with a weighted-average rate of 3.64%, ranging from 0.39% to 8.40%, due 2018 to 2048
|
$
|
119,548
|
|
|
$
|
108,933
|
|
Floating, with a weighted-average rate of 1.54%, ranging from 0.04% to 6.13%, due 2018 to 2044
|
21,048
|
|
|
13,164
|
|
||
Senior structured notes
|
15,460
|
|
|
17,049
|
|
||
Subordinated notes:
|
|
|
|
||||
Fixed, with a weighted-average rate of 4.90%, ranging from 2.94% to 8.57%, due 2018 to 2045
|
22,004
|
|
|
26,047
|
|
||
Floating, with a weighted-average rate of 1.00%, ranging from 0.20% to 2.56%, due 2018 to 2026
|
4,058
|
|
|
4,350
|
|
||
Junior subordinated notes (related to trust preferred securities):
|
|
|
|
||||
Fixed, with a weighted-average rate of 6.91%, ranging from 5.25% to 8.05%, due 2027 to 2067
|
3,282
|
|
|
3,280
|
|
||
Floating, with a weighted-average rate of 2.13%, ranging from 1.91% to 2.60%, due 2027 to 2056
|
553
|
|
|
552
|
|
||
Total notes issued by Bank of America Corporation
|
185,953
|
|
|
173,375
|
|
||
Notes issued by Bank of America, N.A.
|
|
|
|
|
|
||
Senior notes:
|
|
|
|
|
|
||
Fixed, with a weighted-average rate of 1.78%, ranging from 0.02% to 2.05%, due in 2018
|
4,686
|
|
|
5,936
|
|
||
Floating, with a weighted-average rate of 2.60%, ranging from 1.44% to 2.80%, due 2018 to 2041
|
1,033
|
|
|
3,383
|
|
||
Subordinated notes:
|
|
|
|
||||
Fixed, with a rate of 6.00%, due in 2036
|
1,679
|
|
|
4,424
|
|
||
Floating, with a rate of 1.33%, due in 2019
|
1
|
|
|
598
|
|
||
Advances from Federal Home Loan Banks:
|
|
|
|
||||
Fixed, with a weighted-average rate of 5.22%, ranging from 0.01% to 7.72%, due 2018 to 2034
|
146
|
|
|
162
|
|
||
Floating, with a weighted-average rate of 1.42%, ranging from 1.35% to 1.60%, due 2018 to 2019
|
5,000
|
|
|
—
|
|
||
Securitizations and other BANA VIEs
(1)
|
8,641
|
|
|
9,164
|
|
||
Other
|
432
|
|
|
3,084
|
|
||
Total notes issued by Bank of America, N.A.
|
21,618
|
|
|
26,751
|
|
||
Other debt
|
|
|
|
|
|
||
Structured liabilities
|
18,574
|
|
|
15,171
|
|
||
Nonbank VIEs
(1)
|
1,232
|
|
|
1,482
|
|
||
Other
|
25
|
|
|
44
|
|
||
Total other debt
|
19,831
|
|
|
16,697
|
|
||
Total long-term debt
|
$
|
227,402
|
|
|
$
|
216,823
|
|
(1)
|
Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet.
|
|
|
Bank of America 2017
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Long-term Debt by Maturity
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Total
|
|||||||||||||||
Bank of America Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Senior notes
|
$
|
19,577
|
|
|
$
|
15,115
|
|
|
$
|
10,580
|
|
|
$
|
16,196
|
|
|
$
|
9,691
|
|
|
$
|
69,437
|
|
|
$
|
140,596
|
|
|
Senior structured notes
|
2,749
|
|
|
1,486
|
|
|
950
|
|
|
437
|
|
|
2,017
|
|
|
7,821
|
|
|
15,460
|
|
||||||||
Subordinated notes
|
2,973
|
|
|
1,552
|
|
|
—
|
|
|
375
|
|
|
476
|
|
|
20,686
|
|
|
26,062
|
|
||||||||
Junior subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,835
|
|
|
3,835
|
|
||||||||
Total Bank of America Corporation
|
25,299
|
|
|
18,153
|
|
|
11,530
|
|
|
17,008
|
|
|
12,184
|
|
|
101,779
|
|
|
185,953
|
|
||||||||
Bank of America, N.A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes
|
5,699
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
5,719
|
|
||||||||
Subordinated notes
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,679
|
|
|
1,680
|
|
||||||||
Advances from Federal Home Loan Banks
|
3,009
|
|
|
2,013
|
|
|
11
|
|
|
2
|
|
|
3
|
|
|
108
|
|
|
5,146
|
|
||||||||
Securitizations and other Bank VIEs
(1)
|
2,300
|
|
|
3,200
|
|
|
3,098
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
8,641
|
|
||||||||
Other
|
51
|
|
|
194
|
|
|
15
|
|
|
—
|
|
|
9
|
|
|
163
|
|
|
432
|
|
||||||||
Total Bank of America, N.A.
|
11,059
|
|
|
5,408
|
|
|
3,124
|
|
|
2
|
|
|
12
|
|
|
2,013
|
|
|
21,618
|
|
||||||||
Other debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Structured liabilities
|
5,677
|
|
|
2,340
|
|
|
1,545
|
|
|
870
|
|
|
803
|
|
|
7,339
|
|
|
18,574
|
|
||||||||
Nonbank VIEs
(1)
|
22
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,165
|
|
|
1,232
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
||||||||
Total other debt
|
5,699
|
|
|
2,385
|
|
|
1,545
|
|
|
870
|
|
|
803
|
|
|
8,529
|
|
|
19,831
|
|
||||||||
Total long-term debt
|
$
|
42,057
|
|
|
$
|
25,946
|
|
|
$
|
16,199
|
|
|
$
|
17,880
|
|
|
$
|
12,999
|
|
|
$
|
112,321
|
|
|
$
|
227,402
|
|
(1)
|
Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet.
|
151
Bank of America 2017
|
|
|
(1)
|
Notes are denominated in British pound. Presentation currency is U.S. dollar.
|
|
|
Bank of America 2017
152
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Extension Commitments
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
||||||||||||||||||
|
Expire in One
Year or Less |
|
Expire After One
Year Through Three Years |
|
Expire After Three Years Through Five Years
|
|
Expire After Five
Years |
|
Total
|
||||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||||||
Notional amount of credit extension commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan commitments
|
$
|
85,804
|
|
|
$
|
140,942
|
|
|
$
|
147,043
|
|
|
$
|
21,342
|
|
|
$
|
395,131
|
|
Home equity lines of credit
|
6,172
|
|
|
4,457
|
|
|
2,288
|
|
|
31,250
|
|
|
44,167
|
|
|||||
Standby letters of credit and financial guarantees
(1)
|
19,976
|
|
|
11,261
|
|
|
3,420
|
|
|
1,144
|
|
|
35,801
|
|
|||||
Letters of credit
|
1,291
|
|
|
117
|
|
|
129
|
|
|
87
|
|
|
1,624
|
|
|||||
Legally binding commitments
|
113,243
|
|
|
156,777
|
|
|
152,880
|
|
|
53,823
|
|
|
476,723
|
|
|||||
Credit card lines
(2)
|
362,030
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362,030
|
|
|||||
Total credit extension commitments
|
$
|
475,273
|
|
|
$
|
156,777
|
|
|
$
|
152,880
|
|
|
$
|
53,823
|
|
|
$
|
838,753
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2016
|
||||||||||||||||||
Notional amount of credit extension commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan commitments
|
$
|
82,609
|
|
|
$
|
133,063
|
|
|
$
|
152,854
|
|
|
$
|
22,129
|
|
|
$
|
390,655
|
|
Home equity lines of credit
|
8,806
|
|
|
10,701
|
|
|
2,644
|
|
|
25,050
|
|
|
47,201
|
|
|||||
Standby letters of credit and financial guarantees
(1)
|
19,165
|
|
|
10,754
|
|
|
3,225
|
|
|
1,027
|
|
|
34,171
|
|
|||||
Letters of credit
|
1,285
|
|
|
103
|
|
|
114
|
|
|
53
|
|
|
1,555
|
|
|||||
Legally binding commitments
|
111,865
|
|
|
154,621
|
|
|
158,837
|
|
|
48,259
|
|
|
473,582
|
|
|||||
Credit card lines
(2)
|
377,773
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
377,773
|
|
|||||
Total credit extension commitments
|
$
|
489,638
|
|
|
$
|
154,621
|
|
|
$
|
158,837
|
|
|
$
|
48,259
|
|
|
$
|
851,355
|
|
(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
$27.3 billion
and
$8.1 billion
at
December 31, 2017
, and
$25.5 billion
and
$8.3 billion
at
December 31, 2016
. Amounts in the table include consumer SBLCs of
$421 million
and
$376 million
at
December 31, 2017
and
2016
.
|
(2)
|
Includes business card unused lines of credit.
|
153
Bank of America 2017
|
|
|
|
|
Bank of America 2017
154
|
155
Bank of America 2017
|
|
|
|
|
Bank of America 2017
156
|
157
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
||
Declared Quarterly Cash Dividends on Common Stock
(1)
|
||||||||
|
|
|
|
|
|
|
||
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Dividend Per Share
|
||
January 31, 2018
|
|
March 2, 2018
|
|
March 30, 2018
|
|
$
|
0.12
|
|
October 25, 2017
|
|
December 1, 2017
|
|
December 29, 2017
|
|
0.12
|
|
|
July 26, 2017
|
|
September 1, 2017
|
|
September 29, 2017
|
|
0.12
|
|
|
April 26, 2017
|
|
June 2, 2017
|
|
June 30, 2017
|
|
0.075
|
|
|
January 26, 2017
|
|
March 3, 2017
|
|
March 31, 2017
|
|
0.075
|
|
(1)
|
In
2017
and through
February 22, 2018
.
|
|
|
|
|
||||||
Common Stock Repurchase Summary
|
|||||||||
|
|
|
|
||||||
(in millions)
|
2017
|
2016
|
2015
|
||||||
Total share repurchases, including CCAR capital plan repurchases
|
509
|
|
333
|
|
140
|
|
|||
|
|
|
|
||||||
Purchase price of shares repurchased and retired
(1)
|
|
|
|
||||||
CCAR capital plan repurchases
|
$
|
9,347
|
|
$
|
4,312
|
|
$
|
2,374
|
|
Other authorized repurchases
|
3,467
|
|
800
|
|
—
|
|
|||
Total shares repurchased
|
$
|
12,814
|
|
$
|
5,112
|
|
$
|
2,374
|
|
(1)
|
Represents reductions to shareholders’ equity due to common stock repurchases.
|
|
|
Bank of America 2017
158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred Stock Summary
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Dollars in millions, except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Series
|
Description
|
|
Initial
Issuance Date |
|
Total
Shares Outstanding |
|
Liquidation
Preference per Share (in dollars) |
|
Carrying
Value (1) |
|
Per Annum
Dividend Rate |
|
Redemption Period
(2)
|
||||||
Series B
|
7% Cumulative Redeemable
|
|
June
1997 |
|
7,110
|
|
|
$
|
100
|
|
|
$
|
1
|
|
|
7.00
|
%
|
|
n/a
|
Series D
(3)
|
6.204% Non-Cumulative
|
|
September
2006 |
|
26,174
|
|
|
25,000
|
|
|
654
|
|
|
6.204
|
%
|
|
On or after
September 14, 2011 |
||
Series E
(3)
|
Floating Rate Non-Cumulative
|
|
November
2006 |
|
12,691
|
|
|
25,000
|
|
|
317
|
|
|
3-mo. LIBOR + 35 bps
(4)
|
|
|
On or after
November 15, 2011 |
||
Series F
|
Floating Rate Non-Cumulative
|
|
March
2012 |
|
1,409
|
|
|
100,000
|
|
|
141
|
|
|
3-mo. LIBOR + 40 bps
(4)
|
|
|
On or after
March 15, 2012 |
||
Series G
|
Adjustable Rate Non-Cumulative
|
|
March
2012 |
|
4,926
|
|
|
100,000
|
|
|
493
|
|
|
3-mo. LIBOR + 40 bps
(4)
|
|
|
On or after
March 15, 2012 |
||
Series I
(3)
|
6.625% Non-Cumulative
|
|
September
2007 |
|
14,584
|
|
|
25,000
|
|
|
365
|
|
|
6.625
|
%
|
|
On or after
October 1, 2017 |
||
Series K
(5)
|
Fixed-to-Floating Rate Non-Cumulative
|
|
January
2008 |
|
61,773
|
|
|
25,000
|
|
|
1,544
|
|
|
8.00% to, but excluding, 1/30/18; 3-mo. LIBOR + 363 bps thereafter
|
|
|
On or after
January 30, 2018 |
||
Series L
|
7.25% Non-Cumulative Perpetual Convertible
|
|
January
2008 |
|
3,080,182
|
|
|
1,000
|
|
|
3,080
|
|
|
7.25
|
%
|
|
n/a
|
||
Series M
(5)
|
Fixed-to-Floating Rate Non-Cumulative
|
|
April
2008 |
|
52,399
|
|
|
25,000
|
|
|
1,310
|
|
|
8.125% to, but excluding, 5/15/18; 3-mo. LIBOR + 364 bps thereafter
|
|
|
On or after
May 15, 2018 |
||
Series T
(6)
|
6% Non-cumulative
|
|
September
2011 |
|
354
|
|
|
100,000
|
|
|
35
|
|
|
6.00
|
%
|
|
After May 7, 2019
|
||
Series U
(5)
|
Fixed-to-Floating Rate Non-Cumulative
|
|
May
2013 |
|
40,000
|
|
|
25,000
|
|
|
1,000
|
|
|
5.2% to, but excluding, 6/1/23;
3-mo. LIBOR + 313.5 bps thereafter |
|
|
On or after
June 1, 2023 |
||
Series V
(5)
|
Fixed-to-Floating Rate Non-Cumulative
|
|
June
2014 |
|
60,000
|
|
|
25,000
|
|
|
1,500
|
|
|
5.125% to, but excluding, 6/17/19; 3-mo. LIBOR + 338.7 bps thereafter
|
|
|
On or after
June 17, 2019 |
||
Series W
(3)
|
6.625% Non-Cumulative
|
|
September 2014
|
|
44,000
|
|
|
25,000
|
|
|
1,100
|
|
|
6.625
|
%
|
|
On or after
September 9, 2019 |
||
Series X
(5)
|
Fixed-to-Floating Rate Non-Cumulative
|
|
September 2014
|
|
80,000
|
|
|
25,000
|
|
|
2,000
|
|
|
6.250% to, but excluding, 9/5/24; 3-mo. LIBOR + 370.5 bps thereafter
|
|
|
On or after
September 5, 2024 |
||
Series Y
(3)
|
6.500% Non-Cumulative
|
|
January 2015
|
|
44,000
|
|
|
25,000
|
|
|
1,100
|
|
|
6.500
|
%
|
|
On or after
January 27, 2020 |
||
Series Z
(5)
|
Fixed-to-Floating Rate Non-Cumulative
|
|
October 2014
|
|
56,000
|
|
|
25,000
|
|
|
1,400
|
|
|
6.500% to, but excluding,10/23/24; 3-mo. LIBOR + 417.4 bps thereafter
|
|
|
On or after
October 23, 2024 |
||
Series AA
(5)
|
Fixed-to-Floating Rate Non-Cumulative
|
|
March 2015
|
|
76,000
|
|
|
25,000
|
|
|
1,900
|
|
|
6.100% to, but excluding, 3/17/25; 3-mo. LIBOR + 389.8 bps thereafter
|
|
|
On or after
March 17, 2025 |
||
Series CC
(3)
|
6.200% Non-Cumulative
|
|
January 2016
|
|
44,000
|
|
|
25,000
|
|
|
1,100
|
|
|
6.200
|
%
|
|
On or after
January 29, 2021 |
||
Series DD
(5)
|
Fixed-to-Floating Rate Non-Cumulative
|
|
March 2016
|
|
40,000
|
|
|
25,000
|
|
|
1,000
|
|
|
6.300% to, but excluding, 3/10/26; 3-mo. LIBOR + 455.3 bps thereafter
|
|
|
On or after
March 10, 2026 |
||
Series EE
(3)
|
6.000% Non-Cumulative
|
|
April 2016
|
|
36,000
|
|
|
25,000
|
|
|
900
|
|
|
6.000
|
%
|
|
On or after
April 25, 2021 |
||
Series 1
(7)
|
Floating Rate Non-Cumulative
|
|
November
2004 |
|
3,275
|
|
|
30,000
|
|
|
98
|
|
|
3-mo. LIBOR + 75 bps
(8)
|
|
|
On or after
November 28, 2009 |
||
Series 2
(7)
|
Floating Rate Non-Cumulative
|
|
March
2005 |
|
9,967
|
|
|
30,000
|
|
|
299
|
|
|
3-mo. LIBOR + 65 bps
(8)
|
|
|
On or after
November 28, 2009 |
||
Series 3
(7)
|
6.375% Non-Cumulative
|
|
November
2005 |
|
21,773
|
|
|
30,000
|
|
|
653
|
|
|
6.375
|
%
|
|
On or after
November 28, 2010 |
||
Series 4
(7)
|
Floating Rate Non-Cumulative
|
|
November
2005 |
|
7,010
|
|
|
30,000
|
|
|
210
|
|
|
3-mo. LIBOR + 75 bps
(4)
|
|
|
On or after
November 28, 2010 |
||
Series 5
(7)
|
Floating Rate Non-Cumulative
|
|
March
2007 |
|
14,056
|
|
|
30,000
|
|
|
422
|
|
|
3-mo. LIBOR + 50 bps
(4)
|
|
|
On or after
May 21, 2012 |
||
Total
|
|
|
|
|
3,837,683
|
|
|
|
|
|
$
|
22,622
|
|
|
|
|
|
|
(1)
|
Amounts shown are before third-party issuance costs and certain book value adjustments of
$299 million
.
|
(2)
|
The Corporation may redeem series of preferred stock on or after the redemption date, in whole or in part, at its option, at the liquidation preference plus declared and unpaid dividends. Series B and Series L Preferred Stock do not have early redemption/call rights.
|
(3)
|
Ownership is held in the form of depositary shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.
|
(4)
|
Subject to
4.00%
minimum rate per annum.
|
(5)
|
Ownership is held in the form of depositary shares, each representing a 1/25th interest in a share of preferred stock, paying a semi-annual cash dividend, if and when declared, until the first redemption date at which time, it adjusts to a quarterly cash dividend, if and when declared, thereafter.
|
(6)
|
Represents shares that were not surrendered when the holders of Series T preferred stock exercised warrants to acquire
700 million
shares of common stock in the third quarter of 2017.
|
(7)
|
Ownership is held in the form of depositary shares, each representing a 1/1,200th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.
|
(8)
|
Subject to
3.00%
minimum rate per annum.
|
159
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Debt
Securities
|
|
Available-for-
Sale Marketable
Equity Securities
|
|
Debit Valuation Adjustments
|
|
Derivatives
|
|
Employee
Benefit Plans
|
|
Foreign
Currency
(1)
|
|
Total
|
||||||||||||||
Balance, December 31, 2014
|
$
|
1,641
|
|
|
$
|
17
|
|
|
n/a
|
|
|
$
|
(1,661
|
)
|
|
$
|
(3,350
|
)
|
|
$
|
(669
|
)
|
|
$
|
(4,022
|
)
|
|
Cumulative adjustment for accounting change
|
—
|
|
|
—
|
|
|
$
|
(1,226
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,226
|
)
|
||||||
Net change
|
(1,625
|
)
|
|
45
|
|
|
615
|
|
|
584
|
|
|
394
|
|
|
(123
|
)
|
|
(110
|
)
|
|||||||
Balance, December 31, 2015
|
$
|
16
|
|
|
$
|
62
|
|
|
$
|
(611
|
)
|
|
$
|
(1,077
|
)
|
|
$
|
(2,956
|
)
|
|
$
|
(792
|
)
|
|
$
|
(5,358
|
)
|
Net change
|
(1,315
|
)
|
|
(30
|
)
|
|
(156
|
)
|
|
182
|
|
|
(524
|
)
|
|
(87
|
)
|
|
(1,930
|
)
|
|||||||
Balance, December 31, 2016
|
$
|
(1,299
|
)
|
|
$
|
32
|
|
|
$
|
(767
|
)
|
|
$
|
(895
|
)
|
|
$
|
(3,480
|
)
|
|
$
|
(879
|
)
|
|
$
|
(7,288
|
)
|
Net change
|
91
|
|
|
(30
|
)
|
|
(293
|
)
|
|
64
|
|
|
288
|
|
|
86
|
|
|
206
|
|
|||||||
Balance, December 31, 2017
|
$
|
(1,208
|
)
|
|
$
|
2
|
|
|
$
|
(1,060
|
)
|
|
$
|
(831
|
)
|
|
$
|
(3,192
|
)
|
|
$
|
(793
|
)
|
|
$
|
(7,082
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Changes in OCI Components Before- and After-tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
Before-tax
|
|
Tax
effect
|
|
After-
tax
|
|
Before-tax
|
|
Tax effect
|
|
After-
tax
|
|
Before-tax
|
|
Tax effect
|
|
After-
tax
|
||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net increase in fair value
|
$
|
202
|
|
|
$
|
26
|
|
|
$
|
228
|
|
|
$
|
(1,645
|
)
|
|
$
|
622
|
|
|
$
|
(1,023
|
)
|
|
$
|
(1,564
|
)
|
|
$
|
595
|
|
|
$
|
(969
|
)
|
Reclassifications into earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gains on sales of debt securities
|
(255
|
)
|
|
97
|
|
|
(158
|
)
|
|
(490
|
)
|
|
186
|
|
|
(304
|
)
|
|
(1,138
|
)
|
|
432
|
|
|
(706
|
)
|
|||||||||
Other income
|
41
|
|
|
(20
|
)
|
|
21
|
|
|
19
|
|
|
(7
|
)
|
|
12
|
|
|
81
|
|
|
(31
|
)
|
|
50
|
|
|||||||||
Net realized gains reclassified into earnings
|
(214
|
)
|
|
77
|
|
|
(137
|
)
|
|
(471
|
)
|
|
179
|
|
|
(292
|
)
|
|
(1,057
|
)
|
|
401
|
|
|
(656
|
)
|
|||||||||
Net change
|
(12
|
)
|
|
103
|
|
|
91
|
|
|
(2,116
|
)
|
|
801
|
|
|
(1,315
|
)
|
|
(2,621
|
)
|
|
996
|
|
|
(1,625
|
)
|
|||||||||
Available-for-sale marketable equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net increase (decrease) in fair value
|
38
|
|
|
(12
|
)
|
|
26
|
|
|
(49
|
)
|
|
19
|
|
|
(30
|
)
|
|
72
|
|
|
(27
|
)
|
|
45
|
|
|||||||||
Net realized gains reclassified into earnings
(2)
|
(90
|
)
|
|
34
|
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net change
|
(52
|
)
|
|
22
|
|
|
(30
|
)
|
|
(49
|
)
|
|
19
|
|
|
(30
|
)
|
|
72
|
|
|
(27
|
)
|
|
45
|
|
|||||||||
Debit valuation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net increase (decrease) in fair value
|
(490
|
)
|
|
171
|
|
|
(319
|
)
|
|
(271
|
)
|
|
104
|
|
|
(167
|
)
|
|
436
|
|
|
(166
|
)
|
|
270
|
|
|||||||||
Net realized losses reclassified into earnings
(2)
|
42
|
|
|
(16
|
)
|
|
26
|
|
|
17
|
|
|
(6
|
)
|
|
11
|
|
|
556
|
|
|
(211
|
)
|
|
345
|
|
|||||||||
Net change
|
(448
|
)
|
|
155
|
|
|
(293
|
)
|
|
(254
|
)
|
|
98
|
|
|
(156
|
)
|
|
992
|
|
|
(377
|
)
|
|
615
|
|
|||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net increase (decrease) in fair value
|
(50
|
)
|
|
1
|
|
|
(49
|
)
|
|
(299
|
)
|
|
113
|
|
|
(186
|
)
|
|
55
|
|
|
(22
|
)
|
|
33
|
|
|||||||||
Reclassifications into earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net interest income
|
327
|
|
|
(122
|
)
|
|
205
|
|
|
553
|
|
|
(205
|
)
|
|
348
|
|
|
974
|
|
|
(367
|
)
|
|
607
|
|
|||||||||
Personnel
|
(148
|
)
|
|
56
|
|
|
(92
|
)
|
|
32
|
|
|
(12
|
)
|
|
20
|
|
|
(91
|
)
|
|
35
|
|
|
(56
|
)
|
|||||||||
Net realized losses reclassified into earnings
|
179
|
|
|
(66
|
)
|
|
113
|
|
|
585
|
|
|
(217
|
)
|
|
368
|
|
|
883
|
|
|
(332
|
)
|
|
551
|
|
|||||||||
Net change
|
129
|
|
|
(65
|
)
|
|
64
|
|
|
286
|
|
|
(104
|
)
|
|
182
|
|
|
938
|
|
|
(354
|
)
|
|
584
|
|
|||||||||
Employee benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net increase (decrease) in fair value
|
223
|
|
|
(55
|
)
|
|
168
|
|
|
(921
|
)
|
|
329
|
|
|
(592
|
)
|
|
408
|
|
|
(121
|
)
|
|
287
|
|
|||||||||
Reclassifications into earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Prior service cost
|
4
|
|
|
(1
|
)
|
|
3
|
|
|
5
|
|
|
(2
|
)
|
|
3
|
|
|
5
|
|
|
(2
|
)
|
|
3
|
|
|||||||||
Net actuarial losses
|
175
|
|
|
(60
|
)
|
|
115
|
|
|
92
|
|
|
(34
|
)
|
|
58
|
|
|
164
|
|
|
(60
|
)
|
|
104
|
|
|||||||||
Net realized losses reclassified into earnings
(3)
|
179
|
|
|
(61
|
)
|
|
118
|
|
|
97
|
|
|
(36
|
)
|
|
61
|
|
|
169
|
|
|
(62
|
)
|
|
107
|
|
|||||||||
Settlements, curtailments and other
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
15
|
|
|
(8
|
)
|
|
7
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||||||||
Net change
|
405
|
|
|
(117
|
)
|
|
288
|
|
|
(809
|
)
|
|
285
|
|
|
(524
|
)
|
|
578
|
|
|
(184
|
)
|
|
394
|
|
|||||||||
Foreign currency:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net increase (decrease) in fair value
|
(439
|
)
|
|
430
|
|
|
(9
|
)
|
|
514
|
|
|
(601
|
)
|
|
(87
|
)
|
|
600
|
|
|
(723
|
)
|
|
(123
|
)
|
|||||||||
Net realized gains reclassified into earnings
(1,2)
|
(606
|
)
|
|
701
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
38
|
|
|
—
|
|
|||||||||
Net change
|
(1,045
|
)
|
|
1,131
|
|
|
86
|
|
|
514
|
|
|
(601
|
)
|
|
(87
|
)
|
|
562
|
|
|
(685
|
)
|
|
(123
|
)
|
|||||||||
Total other comprehensive income (loss)
|
$
|
(1,023
|
)
|
|
$
|
1,229
|
|
|
$
|
206
|
|
|
$
|
(2,428
|
)
|
|
$
|
498
|
|
|
$
|
(1,930
|
)
|
|
$
|
521
|
|
|
$
|
(631
|
)
|
|
$
|
(110
|
)
|
(1)
|
During
2017
, foreign currency included a pre-tax gain on derivatives and related income tax expense associated with the Corporation’s net investment in its non-U.S. consumer credit card business, which was sold in 2017. The derivative gain was partially offset by a loss on the related foreign currency translation adjustment.
|
(2)
|
Reclassifications of pre-tax AFS marketable equity securities, DVA and foreign currency are recorded in other income in the Consolidated Statement of Income.
|
(3)
|
Reclassifications of pre-tax employee benefit plan costs are recorded in personnel expense in the Consolidated Statement of Income.
|
|
|
Bank of America 2017
160
|
|
|
|
|
|
|
||||||
(Dollars in millions, except per share information; shares in thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Earnings per common share
|
|
|
|
|
|
|
|||||
Net income
|
$
|
18,232
|
|
|
$
|
17,822
|
|
|
$
|
15,910
|
|
Preferred stock dividends
|
(1,614
|
)
|
|
(1,682
|
)
|
|
(1,483
|
)
|
|||
Net income applicable to common shareholders
|
$
|
16,618
|
|
|
$
|
16,140
|
|
|
$
|
14,427
|
|
Average common shares issued and outstanding
|
10,195,646
|
|
|
10,284,147
|
|
|
10,462,282
|
|
|||
Earnings per common share
|
$
|
1.63
|
|
|
$
|
1.57
|
|
|
$
|
1.38
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share
|
|
|
|
|
|
|
|
||||
Net income applicable to common shareholders
|
$
|
16,618
|
|
|
$
|
16,140
|
|
|
$
|
14,427
|
|
Add preferred stock dividends due to assumed conversions
(1)
|
186
|
|
|
300
|
|
|
300
|
|
|||
Net income allocated to common shareholders
|
$
|
16,804
|
|
|
$
|
16,440
|
|
|
$
|
14,727
|
|
Average common shares issued and outstanding
|
10,195,646
|
|
|
10,284,147
|
|
|
10,462,282
|
|
|||
Dilutive potential common shares
(2)
|
582,782
|
|
|
762,659
|
|
|
773,948
|
|
|||
Total diluted average common shares issued and outstanding
|
10,778,428
|
|
|
11,046,806
|
|
|
11,236,230
|
|
|||
Diluted earnings per common share
|
$
|
1.56
|
|
|
$
|
1.49
|
|
|
$
|
1.31
|
|
(1)
|
Represents the Series T dividends under the “if-converted” method prior to conversion.
|
(2)
|
Includes incremental dilutive shares from RSUs, restricted stock and warrants.
|
161
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Regulatory Capital under Basel 3 – Transition
(1)
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
||||||||||||||||||||
|
Bank of America Corporation
|
|
Bank of America, N.A.
|
||||||||||||||||||
|
Standardized Approach
|
|
Advanced Approaches
|
|
Regulatory Minimum
(2)
|
|
Standardized Approach
|
|
Advanced Approaches
|
|
Regulatory Minimum
(3)
|
||||||||||
(Dollars in millions, except as noted)
|
December 31, 2017
|
||||||||||||||||||||
Risk-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity tier 1 capital
|
$
|
171,063
|
|
|
$
|
171,063
|
|
|
|
|
$
|
150,552
|
|
|
$
|
150,552
|
|
|
|
||
Tier 1 capital
|
191,496
|
|
|
191,496
|
|
|
|
|
150,552
|
|
|
150,552
|
|
|
|
||||||
Total capital
(4)
|
227,427
|
|
|
218,529
|
|
|
|
|
163,243
|
|
|
154,675
|
|
|
|
||||||
Risk-weighted assets (in billions)
(5)
|
1,434
|
|
|
1,449
|
|
|
|
|
1,201
|
|
|
1,007
|
|
|
|
||||||
Common equity tier 1 capital ratio
|
11.9
|
%
|
|
11.8
|
%
|
|
7.25
|
%
|
|
12.5
|
%
|
|
14.9
|
%
|
|
6.5
|
%
|
||||
Tier 1 capital ratio
|
13.4
|
|
|
13.2
|
|
|
8.75
|
|
|
12.5
|
|
|
14.9
|
|
|
8.0
|
|
||||
Total capital ratio
|
15.9
|
|
|
15.1
|
|
|
10.75
|
|
|
13.6
|
|
|
15.4
|
|
|
10.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage-based metrics:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted quarterly average assets (in billions)
(6)
|
$
|
2,224
|
|
|
$
|
2,224
|
|
|
|
|
$
|
1,672
|
|
|
$
|
1,672
|
|
|
|
||
Tier 1 leverage ratio
|
8.6
|
%
|
|
8.6
|
%
|
|
4.0
|
|
|
9.0
|
%
|
|
9.0
|
%
|
|
5.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2016
|
||||||||||||||||||||
Risk-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity tier 1 capital
|
$
|
168,866
|
|
|
$
|
168,866
|
|
|
|
|
$
|
149,755
|
|
|
$
|
149,755
|
|
|
|
||
Tier 1 capital
|
190,315
|
|
|
190,315
|
|
|
|
|
149,755
|
|
|
149,755
|
|
|
|
||||||
Total capital
(4)
|
228,187
|
|
|
218,981
|
|
|
|
|
163,471
|
|
|
154,697
|
|
|
|
||||||
Risk-weighted assets (in billions)
|
1,399
|
|
|
1,530
|
|
|
|
|
1,176
|
|
|
1,045
|
|
|
|
||||||
Common equity tier 1 capital ratio
|
12.1
|
%
|
|
11.0
|
%
|
|
5.875
|
%
|
|
12.7
|
%
|
|
14.3
|
%
|
|
6.5
|
%
|
||||
Tier 1 capital ratio
|
13.6
|
|
|
12.4
|
|
|
7.375
|
|
|
12.7
|
|
|
14.3
|
|
|
8.0
|
|
||||
Total capital ratio
|
16.3
|
|
|
14.3
|
|
|
9.375
|
|
|
13.9
|
|
|
14.8
|
|
|
10.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage-based metrics:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted quarterly average assets (in billions)
(6)
|
$
|
2,131
|
|
|
$
|
2,131
|
|
|
|
|
$
|
1,611
|
|
|
$
|
1,611
|
|
|
|
||
Tier 1 leverage ratio
|
8.9
|
%
|
|
8.9
|
%
|
|
4.0
|
|
|
9.3
|
%
|
|
9.3
|
%
|
|
5.0
|
|
(1)
|
Under the applicable bank regulatory rules, the Corporation is not required to and, accordingly, will not restate previously-filed regulatory capital metrics and ratios in connection with the change in accounting method as described in
Note 1 – Summary of Significant Accounting Principles
. Therefore, the December 31, 2016 amounts in the table are as originally reported. The cumulative impact of the change in accounting method resulted in an insignificant pro forma change to the Corporation’s capital metrics and ratios.
|
(2)
|
The
December 31, 2017
and
2016
amounts include a transition capital conservation buffer of
1.25 percent
and
0.625 percent
and a transition global systemically important bank surcharge of
1.5 percent
and
0.75 percent
. The countercyclical capital buffer for both periods is
zero
.
|
(3)
|
Percentage required to meet guidelines to be considered “well capitalized” under the PCA framework.
|
(4)
|
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.
|
(5)
|
During the fourth quarter of 2017, the Corporation obtained approval from U.S. banking regulators to use its Internal Models Methodology to calculate counterparty credit risk-weighted assets for derivatives under the Advanced approaches.
|
(6)
|
Reflects adjusted average total assets for the three months ended
December 31, 2017
and
2016
.
|
|
|
Bank of America 2017
162
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Pension and Postretirement Plans
(1)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Qualified
Pension Plan
|
|
Non-U.S.
Pension Plans
|
|
Nonqualified and Other
Pension Plans
|
|
Postretirement
Health and Life Plans
|
||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
Change in fair value of plan assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair value, January 1
|
$
|
18,239
|
|
|
$
|
17,962
|
|
|
$
|
2,789
|
|
|
$
|
2,738
|
|
|
$
|
2,744
|
|
|
$
|
2,805
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
2,285
|
|
|
1,075
|
|
|
118
|
|
|
541
|
|
|
128
|
|
|
74
|
|
|
—
|
|
|
—
|
|
||||||||
Company contributions
|
—
|
|
|
—
|
|
|
23
|
|
|
48
|
|
|
98
|
|
|
104
|
|
|
393
|
|
|
104
|
|
||||||||
Plan participant contributions
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
||||||||
Settlements and curtailments
|
—
|
|
|
—
|
|
|
(190
|
)
|
|
(20
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
||||||||
Benefits paid
|
(816
|
)
|
|
(798
|
)
|
|
(54
|
)
|
|
(118
|
)
|
|
(246
|
)
|
|
(233
|
)
|
|
(230
|
)
|
|
(242
|
)
|
||||||||
Federal subsidy on benefits paid
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
12
|
|
|
13
|
|
||||||||
Foreign currency exchange rate changes
|
n/a
|
|
|
n/a
|
|
|
256
|
|
|
(401
|
)
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
||||||||
Fair value, December 31
|
$
|
19,708
|
|
|
$
|
18,239
|
|
|
$
|
2,943
|
|
|
$
|
2,789
|
|
|
$
|
2,724
|
|
|
$
|
2,744
|
|
|
$
|
300
|
|
|
$
|
—
|
|
Change in projected benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligation, January 1
|
$
|
14,982
|
|
|
$
|
14,461
|
|
|
$
|
2,763
|
|
|
$
|
2,580
|
|
|
$
|
3,047
|
|
|
$
|
3,053
|
|
|
$
|
1,125
|
|
|
$
|
1,152
|
|
Service cost
|
—
|
|
|
—
|
|
|
24
|
|
|
25
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
7
|
|
||||||||
Interest cost
|
606
|
|
|
634
|
|
|
72
|
|
|
86
|
|
|
117
|
|
|
127
|
|
|
43
|
|
|
47
|
|
||||||||
Plan participant contributions
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
||||||||
Plan amendments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
||||||||
Settlements and curtailments
|
—
|
|
|
—
|
|
|
(200
|
)
|
|
(31
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
||||||||
Actuarial loss (gain)
|
934
|
|
|
685
|
|
|
(26
|
)
|
|
535
|
|
|
128
|
|
|
106
|
|
|
(7
|
)
|
|
25
|
|
||||||||
Benefits paid
|
(816
|
)
|
|
(798
|
)
|
|
(54
|
)
|
|
(118
|
)
|
|
(246
|
)
|
|
(233
|
)
|
|
(230
|
)
|
|
(242
|
)
|
||||||||
Federal subsidy on benefits paid
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
12
|
|
|
13
|
|
||||||||
Foreign currency exchange rate changes
|
n/a
|
|
|
n/a
|
|
|
234
|
|
|
(315
|
)
|
|
n/a
|
|
|
n/a
|
|
|
1
|
|
|
(2
|
)
|
||||||||
Projected benefit obligation, December 31
|
$
|
15,706
|
|
|
$
|
14,982
|
|
|
$
|
2,814
|
|
|
$
|
2,763
|
|
|
$
|
3,047
|
|
|
$
|
3,047
|
|
|
$
|
1,056
|
|
|
$
|
1,125
|
|
Amounts recognized on Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other assets
|
$
|
4,002
|
|
|
$
|
3,257
|
|
|
$
|
610
|
|
|
$
|
475
|
|
|
$
|
730
|
|
|
$
|
760
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accrued expenses and other liabilities
|
—
|
|
|
—
|
|
|
(481
|
)
|
|
(449
|
)
|
|
(1,053
|
)
|
|
(1,063
|
)
|
|
(756
|
)
|
|
(1,125
|
)
|
||||||||
Net amount recognized, December 31
|
$
|
4,002
|
|
|
$
|
3,257
|
|
|
$
|
129
|
|
|
$
|
26
|
|
|
$
|
(323
|
)
|
|
$
|
(303
|
)
|
|
$
|
(756
|
)
|
|
$
|
(1,125
|
)
|
Funded status, December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accumulated benefit obligation
|
$
|
15,706
|
|
|
$
|
14,982
|
|
|
$
|
2,731
|
|
|
$
|
2,645
|
|
|
$
|
3,046
|
|
|
$
|
3,046
|
|
|
n/a
|
|
|
n/a
|
|
||
Overfunded (unfunded) status of ABO
|
4,002
|
|
|
3,257
|
|
|
212
|
|
|
144
|
|
|
(322
|
)
|
|
(302
|
)
|
|
n/a
|
|
|
n/a
|
|
||||||||
Provision for future salaries
|
—
|
|
|
—
|
|
|
83
|
|
|
118
|
|
|
1
|
|
|
1
|
|
|
n/a
|
|
|
n/a
|
|
||||||||
Projected benefit obligation
|
15,706
|
|
|
14,982
|
|
|
2,814
|
|
|
2,763
|
|
|
3,047
|
|
|
3,047
|
|
|
$
|
1,056
|
|
|
$
|
1,125
|
|
||||||
Weighted-average assumptions, December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Discount rate
|
3.68
|
%
|
|
4.16
|
%
|
|
2.39
|
%
|
|
2.56
|
%
|
|
3.58
|
%
|
|
4.01
|
%
|
|
3.58
|
%
|
|
3.99
|
%
|
||||||||
Rate of compensation increase
|
n/a
|
|
|
n/a
|
|
|
4.31
|
|
|
4.51
|
|
|
4.00
|
|
|
4.00
|
|
|
n/a
|
|
|
n/a
|
|
(1)
|
The measurement date for the Qualified Pension Plan, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans was
December 31
of each year reported.
|
163
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
Plans with PBO and ABO in Excess of Plan Assets
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Non-U.S.
Pension Plans
|
|
Nonqualified
and Other
Pension Plans
|
||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
PBO
|
$
|
671
|
|
|
$
|
626
|
|
|
$
|
1,054
|
|
|
$
|
1,065
|
|
ABO
|
644
|
|
|
594
|
|
|
1,053
|
|
|
1,064
|
|
||||
Fair value of plan assets
|
191
|
|
|
179
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Qualified Pension Plan
|
|
Non-U.S. Pension Plans
|
||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Components of net periodic benefit cost (income)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
25
|
|
|
$
|
27
|
|
Interest cost
|
606
|
|
|
634
|
|
|
621
|
|
|
72
|
|
|
86
|
|
|
93
|
|
||||||
Expected return on plan assets
|
(1,068
|
)
|
|
(1,038
|
)
|
|
(1,045
|
)
|
|
(136
|
)
|
|
(123
|
)
|
|
(133
|
)
|
||||||
Amortization of net actuarial loss
|
154
|
|
|
139
|
|
|
170
|
|
|
8
|
|
|
6
|
|
|
6
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
2
|
|
|
1
|
|
||||||
Net periodic benefit cost (income)
|
$
|
(308
|
)
|
|
$
|
(265
|
)
|
|
$
|
(254
|
)
|
|
$
|
(39
|
)
|
|
$
|
(4
|
)
|
|
$
|
(6
|
)
|
Weighted-average assumptions used to determine net cost for years ended December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
4.16
|
%
|
|
4.51
|
%
|
|
4.12
|
%
|
|
2.56
|
%
|
|
3.59
|
%
|
|
3.56
|
%
|
||||||
Expected return on plan assets
|
6.00
|
|
|
6.00
|
|
|
6.00
|
|
|
4.73
|
|
|
4.84
|
|
|
5.27
|
|
||||||
Rate of compensation increase
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
4.51
|
|
|
4.67
|
|
|
4.70
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nonqualified and
Other Pension Plans |
|
Postretirement Health
and Life Plans |
||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Components of net periodic benefit cost (income)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
7
|
|
|
$
|
8
|
|
Interest cost
|
117
|
|
|
127
|
|
|
122
|
|
|
43
|
|
|
47
|
|
|
48
|
|
||||||
Expected return on plan assets
|
(95
|
)
|
|
(101
|
)
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Amortization of net actuarial loss (gain)
|
34
|
|
|
25
|
|
|
34
|
|
|
(21
|
)
|
|
(81
|
)
|
|
(46
|
)
|
||||||
Other
|
—
|
|
|
3
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
4
|
|
||||||
Net periodic benefit cost (income)
|
$
|
57
|
|
|
$
|
54
|
|
|
$
|
64
|
|
|
$
|
32
|
|
|
$
|
(23
|
)
|
|
$
|
13
|
|
Weighted-average assumptions used to determine net cost for years ended December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
4.01
|
%
|
|
4.34
|
%
|
|
3.80
|
%
|
|
3.99
|
%
|
|
4.32
|
%
|
|
3.75
|
%
|
||||||
Expected return on plan assets
|
3.50
|
|
|
3.66
|
|
|
3.26
|
|
|
n/a
|
|
|
n/a
|
|
|
6.00
|
|
||||||
Rate of compensation increase
|
4.00
|
|
|
4.00
|
|
|
4.00
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
|
Bank of America 2017
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Pretax Amounts Included in Accumulated OCI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Qualified
Pension Plan
|
|
Non-U.S.
Pension Plans
|
|
Nonqualified
and Other
Pension Plans
|
|
Postretirement
Health and
Life Plans
|
|
Total
|
||||||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
Net actuarial loss (gain)
|
$
|
3,992
|
|
|
$
|
4,429
|
|
|
$
|
196
|
|
|
$
|
216
|
|
|
$
|
1,014
|
|
|
$
|
953
|
|
|
$
|
(30
|
)
|
|
$
|
(44
|
)
|
|
$
|
5,172
|
|
|
$
|
5,554
|
|
Prior service cost (credits)
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
12
|
|
|
(7
|
)
|
|
16
|
|
||||||||||
Amounts recognized in accumulated OCI
|
$
|
3,992
|
|
|
$
|
4,429
|
|
|
$
|
200
|
|
|
$
|
220
|
|
|
$
|
1,014
|
|
|
$
|
953
|
|
|
$
|
(41
|
)
|
|
$
|
(32
|
)
|
|
$
|
5,165
|
|
|
$
|
5,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Pretax Amounts Recognized in OCI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Qualified
Pension Plan
|
|
Non-U.S.
Pension Plans
|
|
Nonqualified
and Other
Pension Plans
|
|
Postretirement
Health and
Life Plans
|
|
Total
(1)
|
||||||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
Current year actuarial loss (gain)
|
$
|
(283
|
)
|
|
$
|
648
|
|
|
$
|
(12
|
)
|
|
$
|
100
|
|
|
$
|
95
|
|
|
$
|
133
|
|
|
$
|
(7
|
)
|
|
$
|
25
|
|
|
$
|
(207
|
)
|
|
$
|
906
|
|
Amortization of actuarial gain (loss)
|
(154
|
)
|
|
(139
|
)
|
|
(8
|
)
|
|
(6
|
)
|
|
(34
|
)
|
|
(28
|
)
|
|
21
|
|
|
81
|
|
|
(175
|
)
|
|
(92
|
)
|
||||||||||
Current year prior service cost (credit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
||||||||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
(5
|
)
|
||||||||||
Amounts recognized in OCI
|
$
|
(437
|
)
|
|
$
|
509
|
|
|
$
|
(20
|
)
|
|
$
|
93
|
|
|
$
|
61
|
|
|
$
|
105
|
|
|
$
|
(9
|
)
|
|
$
|
102
|
|
|
$
|
(405
|
)
|
|
$
|
809
|
|
165
Bank of America 2017
|
|
|
|
|
|
|
2018 Target Allocation
|
|||
|
|
|
|
|
Percentage
|
||
Asset Category
|
Qualified
Pension Plan
|
Non-U.S.
Pension Plans
|
Nonqualified
and Other
Pension Plans
|
Equity securities
|
30-60
|
5-35
|
0-5
|
Debt securities
|
40-70
|
40-80
|
95-100
|
Real estate
|
0-10
|
0-15
|
0-5
|
Other
|
0-5
|
0-25
|
0-5
|
|
|
|
|
|
|
|
|
||||||||
Fair Value Measurements
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||
Cash and short-term investments
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market and interest-bearing cash
|
$
|
2,190
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,190
|
|
Cash and cash equivalent commingled/mutual funds
|
—
|
|
|
1,004
|
|
|
—
|
|
|
1,004
|
|
||||
Fixed income
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government and agency securities
|
3,331
|
|
|
854
|
|
|
9
|
|
|
4,194
|
|
||||
Corporate debt securities
|
—
|
|
|
2,417
|
|
|
—
|
|
|
2,417
|
|
||||
Asset-backed securities
|
—
|
|
|
1,832
|
|
|
—
|
|
|
1,832
|
|
||||
Non-U.S. debt securities
|
693
|
|
|
898
|
|
|
—
|
|
|
1,591
|
|
||||
Fixed income commingled/mutual funds
|
775
|
|
|
1,676
|
|
|
—
|
|
|
2,451
|
|
||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common and preferred equity securities
|
5,833
|
|
|
—
|
|
|
—
|
|
|
5,833
|
|
||||
Equity commingled/mutual funds
|
271
|
|
|
1,753
|
|
|
—
|
|
|
2,024
|
|
||||
Public real estate investment trusts
|
138
|
|
|
—
|
|
|
—
|
|
|
138
|
|
||||
Real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||
Private real estate
|
—
|
|
|
—
|
|
|
93
|
|
|
93
|
|
||||
Real estate commingled/mutual funds
|
—
|
|
|
13
|
|
|
831
|
|
|
844
|
|
||||
Limited partnerships
|
—
|
|
|
155
|
|
|
85
|
|
|
240
|
|
||||
Other investments
(1)
|
101
|
|
|
649
|
|
|
74
|
|
|
824
|
|
||||
Total plan investment assets, at fair value
|
$
|
13,332
|
|
|
$
|
11,251
|
|
|
$
|
1,092
|
|
|
$
|
25,675
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2016
|
||||||||||||||
Cash and short-term investments
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market and interest-bearing cash
|
$
|
776
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
776
|
|
Cash and cash equivalent commingled/mutual funds
|
—
|
|
|
997
|
|
|
—
|
|
|
997
|
|
||||
Fixed income
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government and agency securities
|
3,125
|
|
|
816
|
|
|
10
|
|
|
3,951
|
|
||||
Corporate debt securities
|
—
|
|
|
1,892
|
|
|
—
|
|
|
1,892
|
|
||||
Asset-backed securities
|
—
|
|
|
2,246
|
|
|
—
|
|
|
2,246
|
|
||||
Non-U.S. debt securities
|
789
|
|
|
705
|
|
|
—
|
|
|
1,494
|
|
||||
Fixed income commingled/mutual funds
|
778
|
|
|
1,503
|
|
|
—
|
|
|
2,281
|
|
||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common and preferred equity securities
|
6,120
|
|
|
—
|
|
|
—
|
|
|
6,120
|
|
||||
Equity commingled/mutual funds
|
735
|
|
|
1,225
|
|
|
—
|
|
|
1,960
|
|
||||
Public real estate investment trusts
|
145
|
|
|
—
|
|
|
—
|
|
|
145
|
|
||||
Real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||
Private real estate
|
—
|
|
|
—
|
|
|
150
|
|
|
150
|
|
||||
Real estate commingled/mutual funds
|
—
|
|
|
12
|
|
|
748
|
|
|
760
|
|
||||
Limited partnerships
|
—
|
|
|
132
|
|
|
38
|
|
|
170
|
|
||||
Other investments
(1)
|
15
|
|
|
732
|
|
|
83
|
|
|
830
|
|
||||
Total plan investment assets, at fair value
|
$
|
12,483
|
|
|
$
|
10,260
|
|
|
$
|
1,029
|
|
|
$
|
23,772
|
|
(1)
|
Other investments include interest rate swaps of
$156 million
and
$257 million
, participant loans of
$20 million
and
$36 million
, commodity and balanced funds of
$451 million
and
$369 million
and other various investments of
$197 million
and
$168 million
at
December 31, 2017 and 2016
.
|
|
|
Bank of America 2017
166
|
|
|
|
|
|
|
|
|
||||||||
Level 3 Fair Value Measurements
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Balance
January 1
|
|
Actual Return on
Plan Assets Still Held at the
Reporting Date
|
|
Purchases, Sales and Settlements
|
|
Balance
December 31
|
||||||||
(Dollars in millions)
|
2017
|
||||||||||||||
Fixed income
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government and agency securities
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
9
|
|
Real estate
|
|
|
|
|
|
|
|
|
|
||||||
Private real estate
|
150
|
|
|
8
|
|
|
(65
|
)
|
|
93
|
|
||||
Real estate commingled/mutual funds
|
748
|
|
|
63
|
|
|
20
|
|
|
831
|
|
||||
Limited partnerships
|
38
|
|
|
14
|
|
|
33
|
|
|
85
|
|
||||
Other investments
|
83
|
|
|
5
|
|
|
(14
|
)
|
|
74
|
|
||||
Total
|
$
|
1,029
|
|
|
$
|
90
|
|
|
$
|
(27
|
)
|
|
$
|
1,092
|
|
|
|
|
|
|
|
|
|
||||||||
|
2016
|
||||||||||||||
Fixed income
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government and agency securities
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
10
|
|
Real estate
|
|
|
|
|
|
|
|
|
|
||||||
Private real estate
|
144
|
|
|
1
|
|
|
5
|
|
|
150
|
|
||||
Real estate commingled/mutual funds
|
731
|
|
|
21
|
|
|
(4
|
)
|
|
748
|
|
||||
Limited partnerships
|
49
|
|
|
(2
|
)
|
|
(9
|
)
|
|
38
|
|
||||
Other investments
|
102
|
|
|
4
|
|
|
(23
|
)
|
|
83
|
|
||||
Total
|
$
|
1,037
|
|
|
$
|
24
|
|
|
$
|
(32
|
)
|
|
$
|
1,029
|
|
|
|
|
|
|
|
|
|
||||||||
|
2015
|
||||||||||||||
Fixed income
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency securities
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
Real estate
|
|
|
|
|
|
|
|
|
|
||||||
Private real estate
|
127
|
|
|
14
|
|
|
3
|
|
|
144
|
|
||||
Real estate commingled/mutual funds
|
632
|
|
|
37
|
|
|
62
|
|
|
731
|
|
||||
Limited partnerships
|
65
|
|
|
(1
|
)
|
|
(15
|
)
|
|
49
|
|
||||
Other investments
|
127
|
|
|
(5
|
)
|
|
(20
|
)
|
|
102
|
|
||||
Total
|
$
|
962
|
|
|
$
|
45
|
|
|
$
|
30
|
|
|
$
|
1,037
|
|
|
|
|
|
|
|
|
|
||||||||
Projected Benefit Payments
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||||
(Dollars in millions)
|
Qualified
Pension Plan
(1)
|
|
Non-U.S.
Pension Plans
(2)
|
|
Nonqualified
and Other
Pension Plans
(2)
|
|
Postretirement Health and Life Plans
(3)
|
||||||||
2018
|
$
|
927
|
|
|
$
|
90
|
|
|
$
|
237
|
|
|
$
|
92
|
|
2019
|
912
|
|
|
98
|
|
|
239
|
|
|
87
|
|
||||
2020
|
924
|
|
|
104
|
|
|
242
|
|
|
84
|
|
||||
2021
|
912
|
|
|
112
|
|
|
239
|
|
|
81
|
|
||||
2022
|
919
|
|
|
121
|
|
|
232
|
|
|
78
|
|
||||
2023 - 2027
|
4,455
|
|
|
695
|
|
|
1,073
|
|
|
343
|
|
(1)
|
Benefit payments expected to be made from the plan’s assets.
|
(2)
|
Benefit payments expected to be made from a combination of the plans’ and the Corporation’s assets.
|
(3)
|
Benefit payments (net of retiree contributions) expected to be made from a combination of the plans’ and the Corporation’s assets.
|
167
Bank of America 2017
|
|
|
|
|
|
Cash-settled Restricted Units
|
|
|
|
|
|
|
Units
|
|
Outstanding at January 1, 2017
|
121,235,489
|
|
Granted
|
3,105,988
|
|
Vested
|
(79,525,864
|
)
|
Canceled
|
(2,605,987
|
)
|
Outstanding at December 31, 2017
|
42,209,626
|
|
|
|
|
|
|||
Stock Options
|
||||||
|
|
|
|
|||
|
Options
|
|
Weighted-
average
Exercise Price
|
|||
Outstanding at January 1, 2017
|
42,357,282
|
|
|
$
|
50.57
|
|
Forfeited
|
(25,769,108
|
)
|
|
55.15
|
|
|
Outstanding at December 31, 2017
|
16,588,174
|
|
|
43.44
|
|
|
|
Bank of America 2017
168
|
|
|
|
|
|
|
||||||
Income Tax Expense
|
|
|
|
|
|||||||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Current income tax expense
|
|
|
|
|
|
|
|
|
|||
U.S. federal
|
$
|
1,310
|
|
|
$
|
302
|
|
|
$
|
2,539
|
|
U.S. state and local
|
557
|
|
|
120
|
|
|
210
|
|
|||
Non-U.S.
|
939
|
|
|
984
|
|
|
561
|
|
|||
Total current expense
|
2,806
|
|
|
1,406
|
|
|
3,310
|
|
|||
Deferred income tax expense
|
|
|
|
|
|
|
|
|
|||
U.S. federal
|
7,238
|
|
|
5,416
|
|
|
1,855
|
|
|||
U.S. state and local
|
835
|
|
|
(279
|
)
|
|
515
|
|
|||
Non-U.S.
|
102
|
|
|
656
|
|
|
597
|
|
|||
Total deferred expense
|
8,175
|
|
|
5,793
|
|
|
2,967
|
|
|||
Total income tax expense
|
$
|
10,981
|
|
|
$
|
7,199
|
|
|
$
|
6,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of Income Tax Expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
Expected U.S. federal income tax expense
|
$
|
10,225
|
|
|
35.0
|
%
|
|
$
|
8,757
|
|
|
35.0
|
%
|
|
$
|
7,765
|
|
|
35.0
|
%
|
Increase (decrease) in taxes resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
State tax expense, net of federal benefit
|
881
|
|
|
3.0
|
|
|
420
|
|
|
1.7
|
|
|
438
|
|
|
2.0
|
|
|||
Tax law changes
(1)
|
2,281
|
|
|
7.8
|
|
|
348
|
|
|
1.4
|
|
|
289
|
|
|
1.3
|
|
|||
Changes in prior-period UTBs, including interest
|
133
|
|
|
0.5
|
|
|
(328
|
)
|
|
(1.3
|
)
|
|
(52
|
)
|
|
(0.2
|
)
|
|||
Nondeductible expenses
|
97
|
|
|
0.3
|
|
|
180
|
|
|
0.7
|
|
|
40
|
|
|
0.1
|
|
|||
Affordable housing/energy/other credits
|
(1,406
|
)
|
|
(4.8
|
)
|
|
(1,203
|
)
|
|
(4.8
|
)
|
|
(1,087
|
)
|
|
(4.9
|
)
|
|||
Tax-exempt income, including dividends
|
(672
|
)
|
|
(2.3
|
)
|
|
(562
|
)
|
|
(2.2
|
)
|
|
(539
|
)
|
|
(2.4
|
)
|
|||
Non-U.S. tax rate differential
|
(272
|
)
|
|
(0.9
|
)
|
|
(307
|
)
|
|
(1.2
|
)
|
|
(559
|
)
|
|
(2.5
|
)
|
|||
Share-based compensation
|
(236
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other
|
(50
|
)
|
|
(0.2
|
)
|
|
(106
|
)
|
|
(0.5
|
)
|
|
(18
|
)
|
|
(0.1
|
)
|
|||
Total income tax expense
|
$
|
10,981
|
|
|
37.6
|
%
|
|
$
|
7,199
|
|
|
28.8
|
%
|
|
$
|
6,277
|
|
|
28.3
|
%
|
(1)
|
Amounts for
2016
and
2015
are for Non-U.S. tax law changes.
|
|
|
|
|
|
|
||||||
Reconciliation of the Change in Unrecognized Tax Benefits
|
|||||||||||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Balance, January 1
|
$
|
875
|
|
|
$
|
1,095
|
|
|
$
|
1,068
|
|
Increases related to positions taken during the current year
|
292
|
|
|
104
|
|
|
36
|
|
|||
Increases related to positions taken during prior years
|
750
|
|
|
1,318
|
|
|
187
|
|
|||
Decreases related to positions taken during prior years
|
(122
|
)
|
|
(1,091
|
)
|
|
(177
|
)
|
|||
Settlements
|
(17
|
)
|
|
(503
|
)
|
|
(1
|
)
|
|||
Expiration of statute of limitations
|
(5
|
)
|
|
(48
|
)
|
|
(18
|
)
|
|||
Balance, December 31
|
$
|
1,773
|
|
|
$
|
875
|
|
|
$
|
1,095
|
|
169
Bank of America 2017
|
|
|
|
|
|
|
Tax Examination Status
|
|
|
|
|
|
|
|
|
Years under
Examination
(1)
|
|
Status at December 31 2017
|
United States
|
2012 – 2013
|
|
IRS Appeals
|
United States
|
2014 – 2016
|
|
Field examination
|
New York
|
2015
|
|
Field examination
|
United Kingdom
|
2016
|
|
To begin in 2018
|
(1)
|
All tax years subsequent to the years shown remain subject to examination.
|
|
|
|
|
||||
Deferred Tax Assets and Liabilities
|
|
|
|
||||
|
|
|
|
||||
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Deferred tax assets
|
|
|
|
|
|
||
Net operating loss carryforwards
|
$
|
8,506
|
|
|
$
|
9,199
|
|
Security, loan and debt valuations
|
2,939
|
|
|
4,726
|
|
||
Allowance for credit losses
|
2,598
|
|
|
4,362
|
|
||
Accrued expenses
|
2,021
|
|
|
3,016
|
|
||
Tax credit carryforwards
|
1,793
|
|
|
3,125
|
|
||
Employee compensation and retirement benefits
|
1,705
|
|
|
3,042
|
|
||
Available-for-sale securities
|
510
|
|
|
784
|
|
||
Other
|
1,034
|
|
|
1,599
|
|
||
Gross deferred tax assets
|
21,106
|
|
|
29,853
|
|
||
Valuation allowance
|
(1,644
|
)
|
|
(1,117
|
)
|
||
Total deferred tax assets, net of valuation allowance
|
19,462
|
|
|
28,736
|
|
||
|
|
|
|
|
|
||
Deferred tax liabilities
|
|
|
|
||||
Equipment lease financing
|
2,492
|
|
|
3,489
|
|
||
Tax credit partnerships
|
734
|
|
|
539
|
|
||
Intangibles
|
670
|
|
|
1,171
|
|
||
Fee income
|
601
|
|
|
847
|
|
||
Mortgage servicing rights
|
349
|
|
|
829
|
|
||
Long-term borrowings
|
227
|
|
|
355
|
|
||
Other
|
1,764
|
|
|
1,915
|
|
||
Gross deferred tax liabilities
|
6,837
|
|
|
9,145
|
|
||
Net deferred tax assets, net of valuation allowance
|
$
|
12,625
|
|
|
$
|
19,591
|
|
|
|
|
|
|
|
|
|
||||||
Net Operating Loss and Tax Credit Carryforward Deferred Tax Assets
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||
(Dollars in millions)
|
Deferred
Tax Asset
|
|
Valuation
Allowance
|
|
Net
Deferred
Tax Asset
|
|
First Year
Expiring
|
||||||
Net operating losses - U.S.
|
$
|
868
|
|
|
$
|
—
|
|
|
$
|
868
|
|
|
After 2027
|
Net operating losses - U.K.
(1)
|
5,347
|
|
|
—
|
|
|
5,347
|
|
|
None
|
|||
Net operating losses - other non-U.S.
|
657
|
|
|
(578
|
)
|
|
79
|
|
|
Various
|
|||
Net operating losses - U.S. states
(2)
|
1,634
|
|
|
(584
|
)
|
|
1,050
|
|
|
Various
|
|||
General business credits
|
1,721
|
|
|
—
|
|
|
1,721
|
|
|
After 2036
|
|||
Foreign tax credits
|
72
|
|
|
(72
|
)
|
|
—
|
|
|
n/a
|
(1)
|
Represents U.K. broker/dealer net operating losses which may be carried forward indefinitely.
|
(2)
|
The net operating losses and related valuation allowances for U.S. states before considering the benefit of federal deductions were
$2.1 billion
and
$739 million
.
|
|
|
Bank of America 2017
170
|
171
Bank of America 2017
|
|
|
|
|
Bank of America 2017
172
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2017
|
||||||||||||||||||
|
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
|
$
|
—
|
|
|
$
|
52,906
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
52,906
|
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Treasury and agency securities
(2, 3)
|
38,720
|
|
|
1,922
|
|
|
—
|
|
|
—
|
|
|
40,642
|
|
|||||
Corporate securities, trading loans and other
|
—
|
|
|
28,714
|
|
|
1,864
|
|
|
—
|
|
|
30,578
|
|
|||||
Equity securities
(3)
|
60,747
|
|
|
23,958
|
|
|
235
|
|
|
—
|
|
|
84,940
|
|
|||||
Non-U.S. sovereign debt
(3)
|
6,545
|
|
|
15,839
|
|
|
556
|
|
|
—
|
|
|
22,940
|
|
|||||
Mortgage trading loans, MBS and ABS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government-sponsored agency guaranteed
(2)
|
—
|
|
|
20,586
|
|
|
—
|
|
|
—
|
|
|
20,586
|
|
|||||
Mortgage trading loans, ABS and other MBS
|
—
|
|
|
8,174
|
|
|
1,498
|
|
|
—
|
|
|
9,672
|
|
|||||
Total trading account assets
(4)
|
106,012
|
|
|
99,193
|
|
|
4,153
|
|
|
—
|
|
|
209,358
|
|
|||||
Derivative assets
(3, 5)
|
6,305
|
|
|
341,178
|
|
|
4,067
|
|
|
(313,788
|
)
|
|
37,762
|
|
|||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Treasury and agency securities
|
51,915
|
|
|
1,608
|
|
|
—
|
|
|
—
|
|
|
53,523
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency
|
—
|
|
|
192,929
|
|
|
—
|
|
|
—
|
|
|
192,929
|
|
|||||
Agency-collateralized mortgage obligations
|
—
|
|
|
6,804
|
|
|
—
|
|
|
—
|
|
|
6,804
|
|
|||||
Non-agency residential
|
—
|
|
|
2,669
|
|
|
—
|
|
|
—
|
|
|
2,669
|
|
|||||
Commercial
|
—
|
|
|
13,684
|
|
|
—
|
|
|
—
|
|
|
13,684
|
|
|||||
Non-U.S. securities
|
772
|
|
|
5,880
|
|
|
25
|
|
|
—
|
|
|
6,677
|
|
|||||
Other taxable securities
|
—
|
|
|
5,261
|
|
|
509
|
|
|
—
|
|
|
5,770
|
|
|||||
Tax-exempt securities
|
—
|
|
|
20,106
|
|
|
469
|
|
|
—
|
|
|
20,575
|
|
|||||
Total AFS debt securities
|
52,687
|
|
|
248,941
|
|
|
1,003
|
|
|
—
|
|
|
302,631
|
|
|||||
Other debt securities carried at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency-collateralized mortgage obligations
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Non-agency residential
|
—
|
|
|
2,764
|
|
|
—
|
|
|
—
|
|
|
2,764
|
|
|||||
Non-U.S. securities
|
8,191
|
|
|
1,297
|
|
|
—
|
|
|
—
|
|
|
9,488
|
|
|||||
Other taxable securities
|
—
|
|
|
229
|
|
|
—
|
|
|
—
|
|
|
229
|
|
|||||
Total other debt securities carried at fair value
|
8,191
|
|
|
4,295
|
|
|
—
|
|
|
—
|
|
|
12,486
|
|
|||||
Loans and leases
|
—
|
|
|
5,139
|
|
|
571
|
|
|
—
|
|
|
5,710
|
|
|||||
Mortgage servicing rights
(6)
|
—
|
|
|
—
|
|
|
2,302
|
|
|
—
|
|
|
2,302
|
|
|||||
Loans held-for-sale
|
—
|
|
|
1,466
|
|
|
690
|
|
|
—
|
|
|
2,156
|
|
|||||
Other assets
|
19,367
|
|
|
789
|
|
|
123
|
|
|
—
|
|
|
20,279
|
|
|||||
Total assets
|
$
|
192,562
|
|
|
$
|
753,907
|
|
|
$
|
12,909
|
|
|
$
|
(313,788
|
)
|
|
$
|
645,590
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits in U.S. offices
|
$
|
—
|
|
|
$
|
449
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
449
|
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
—
|
|
|
36,182
|
|
|
—
|
|
|
—
|
|
|
36,182
|
|
|||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury and agency securities
|
17,266
|
|
|
734
|
|
|
—
|
|
|
—
|
|
|
18,000
|
|
|||||
Equity securities
(3)
|
33,019
|
|
|
3,885
|
|
|
—
|
|
|
—
|
|
|
36,904
|
|
|||||
Non-U.S. sovereign debt
(3)
|
11,976
|
|
|
7,382
|
|
|
—
|
|
|
—
|
|
|
19,358
|
|
|||||
Corporate securities and other
|
—
|
|
|
6,901
|
|
|
24
|
|
|
—
|
|
|
6,925
|
|
|||||
Total trading account liabilities
|
62,261
|
|
|
18,902
|
|
|
24
|
|
|
—
|
|
|
81,187
|
|
|||||
Derivative liabilities
(3, 5)
|
6,029
|
|
|
334,261
|
|
|
5,781
|
|
|
(311,771
|
)
|
|
34,300
|
|
|||||
Short-term borrowings
|
—
|
|
|
1,494
|
|
|
—
|
|
|
—
|
|
|
1,494
|
|
|||||
Accrued expenses and other liabilities
|
21,887
|
|
|
945
|
|
|
8
|
|
|
—
|
|
|
22,840
|
|
|||||
Long-term debt
|
—
|
|
|
29,923
|
|
|
1,863
|
|
|
—
|
|
|
31,786
|
|
|||||
Total liabilities
|
$
|
90,177
|
|
|
$
|
422,156
|
|
|
$
|
7,676
|
|
|
$
|
(311,771
|
)
|
|
$
|
208,238
|
|
(1)
|
Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
|
(2)
|
Includes
$21.3 billion
of GSE obligations.
|
(3)
|
During
2017
, for trading account assets and liabilities,
$1.1 billion
of U.S. Treasury and agency securities assets,
$5.3 billion
of equity securities assets,
$3.1 billion
of equity securities liabilities,
$3.3 billion
of non-U.S. sovereign debt assets and
$1.5 billion
of non-U.S. sovereign debt liabilities were transferred from Level 1 to Level 2 based on the liquidity of the positions. In addition,
$14.1 billion
of equity securities assets and
$4.3 billion
of equity securities liabilities were transferred from Level 2 to Level 1. Also in
2017
,
$4.2 billion
of derivative assets and
$3.0 billion
of derivative liabilities were transferred from Level 1 to Level 2 and
$758 million
of derivative assets and
$608 million
of derivative liabilities were transferred from Level 2 to Level 1 based on the observability of inputs used to measure fair value. For further disaggregation of derivative assets and liabilities, see
Note 2 – Derivatives
.
|
(4)
|
Includes securities with a fair value of
$16.8 billion
that were segregated in compliance with securities regulations or deposited with clearing organizations. This amount is included in the parenthetical disclosure on the Consolidated Balance Sheet.
|
(5)
|
Derivative assets and liabilities reflect the effects of contractual amendments by
two
central clearing counterparties to legally re-characterize daily cash variation margin from collateral, which secures an outstanding exposure, to settlement, which discharges an outstanding exposure. One of these central clearing counterparties amended its governing documents, which became effective in January 2017. In addition, the Corporation elected to transfer its existing positions to the settlement platform for the other central clearing counterparty in September 2017.
|
(6)
|
MSRs include the
$1.7 billion
core MSR portfolio held in
Consumer Banking
, the
$135 million
non-core MSR portfolio held in
All Other
and the
$510 million
non-U.S. MSR portfolio held in
Global Markets.
|
173
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 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
|
$
|
—
|
|
|
$
|
49,750
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,750
|
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Treasury and agency securities
(2)
|
34,587
|
|
|
1,927
|
|
|
—
|
|
|
—
|
|
|
36,514
|
|
|||||
Corporate securities, trading loans and other
|
171
|
|
|
22,861
|
|
|
2,777
|
|
|
—
|
|
|
25,809
|
|
|||||
Equity securities
|
50,169
|
|
|
21,601
|
|
|
281
|
|
|
—
|
|
|
72,051
|
|
|||||
Non-U.S. sovereign debt
|
9,578
|
|
|
9,940
|
|
|
510
|
|
|
—
|
|
|
20,028
|
|
|||||
Mortgage trading loans, MBS and ABS:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government-sponsored agency guaranteed
(2)
|
—
|
|
|
15,799
|
|
|
—
|
|
|
—
|
|
|
15,799
|
|
|||||
Mortgage trading loans, ABS and other MBS
|
—
|
|
|
8,797
|
|
|
1,211
|
|
|
—
|
|
|
10,008
|
|
|||||
Total trading account assets
(3)
|
94,505
|
|
|
80,925
|
|
|
4,779
|
|
|
—
|
|
|
180,209
|
|
|||||
Derivative assets
(4)
|
7,337
|
|
|
619,848
|
|
|
3,931
|
|
|
(588,604
|
)
|
|
42,512
|
|
|||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Treasury and agency securities
|
46,787
|
|
|
1,465
|
|
|
—
|
|
|
—
|
|
|
48,252
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency
|
—
|
|
|
189,486
|
|
|
—
|
|
|
—
|
|
|
189,486
|
|
|||||
Agency-collateralized mortgage obligations
|
—
|
|
|
8,330
|
|
|
—
|
|
|
—
|
|
|
8,330
|
|
|||||
Non-agency residential
|
—
|
|
|
2,013
|
|
|
—
|
|
|
—
|
|
|
2,013
|
|
|||||
Commercial
|
—
|
|
|
12,322
|
|
|
—
|
|
|
—
|
|
|
12,322
|
|
|||||
Non-U.S. securities
|
1,934
|
|
|
3,600
|
|
|
229
|
|
|
—
|
|
|
5,763
|
|
|||||
Other taxable securities
|
—
|
|
|
10,020
|
|
|
594
|
|
|
—
|
|
|
10,614
|
|
|||||
Tax-exempt securities
|
—
|
|
|
16,618
|
|
|
542
|
|
|
—
|
|
|
17,160
|
|
|||||
Total AFS debt securities
|
48,721
|
|
|
243,854
|
|
|
1,365
|
|
|
—
|
|
|
293,940
|
|
|||||
Other debt securities carried at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency-collateralized mortgage obligations
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Non-agency residential
|
—
|
|
|
3,114
|
|
|
25
|
|
|
—
|
|
|
3,139
|
|
|||||
Non-U.S. securities
|
15,109
|
|
|
1,227
|
|
|
—
|
|
|
—
|
|
|
16,336
|
|
|||||
Other taxable securities
|
—
|
|
|
240
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|||||
Total other debt securities carried at fair value
|
15,109
|
|
|
4,586
|
|
|
25
|
|
|
—
|
|
|
19,720
|
|
|||||
Loans and leases
|
—
|
|
|
6,365
|
|
|
720
|
|
|
—
|
|
|
7,085
|
|
|||||
Mortgage servicing rights
(5)
|
—
|
|
|
—
|
|
|
2,747
|
|
|
—
|
|
|
2,747
|
|
|||||
Loans held-for-sale
|
—
|
|
|
3,370
|
|
|
656
|
|
|
—
|
|
|
4,026
|
|
|||||
Debt securities in assets of business held for sale
|
619
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
619
|
|
|||||
Other assets
|
11,824
|
|
|
1,739
|
|
|
239
|
|
|
—
|
|
|
13,802
|
|
|||||
Total assets
|
$
|
178,115
|
|
|
$
|
1,010,437
|
|
|
$
|
14,462
|
|
|
$
|
(588,604
|
)
|
|
$
|
614,410
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits in U.S. offices
|
$
|
—
|
|
|
$
|
731
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
731
|
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
—
|
|
|
35,407
|
|
|
359
|
|
|
—
|
|
|
35,766
|
|
|||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury and agency securities
|
15,854
|
|
|
197
|
|
|
—
|
|
|
—
|
|
|
16,051
|
|
|||||
Equity securities
|
25,884
|
|
|
3,014
|
|
|
—
|
|
|
—
|
|
|
28,898
|
|
|||||
Non-U.S. sovereign debt
|
9,409
|
|
|
2,103
|
|
|
—
|
|
|
—
|
|
|
11,512
|
|
|||||
Corporate securities and other
|
163
|
|
|
6,380
|
|
|
27
|
|
|
—
|
|
|
6,570
|
|
|||||
Total trading account liabilities
|
51,310
|
|
|
11,694
|
|
|
27
|
|
|
—
|
|
|
63,031
|
|
|||||
Derivative liabilities
(4)
|
7,173
|
|
|
615,896
|
|
|
5,244
|
|
|
(588,833
|
)
|
|
39,480
|
|
|||||
Short-term borrowings
|
—
|
|
|
2,024
|
|
|
—
|
|
|
—
|
|
|
2,024
|
|
|||||
Accrued expenses and other liabilities
|
12,978
|
|
|
1,643
|
|
|
9
|
|
|
—
|
|
|
14,630
|
|
|||||
Long-term debt
|
—
|
|
|
28,523
|
|
|
1,514
|
|
|
—
|
|
|
30,037
|
|
|||||
Total liabilities
|
$
|
71,461
|
|
|
$
|
695,918
|
|
|
$
|
7,153
|
|
|
$
|
(588,833
|
)
|
|
$
|
185,699
|
|
(1)
|
Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
|
(2)
|
Includes
$17.5 billion
of GSE obligations.
|
(3)
|
Includes securities with a fair value of
$14.6 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
2016
,
$2.3 billion
of derivative assets and
$2.4 billion
of derivative liabilities were transferred from Level 1 to Level 2 and
$2.0 billion
of derivative assets and
$1.8 billion
of derivative liabilities were transferred from Level 2 to Level 1 based on the observability of inputs used to measure fair value. For further disaggregation of derivative assets and liabilities, see
Note 2 – Derivatives
.
|
(5)
|
MSRs include the
$2.1 billion
core MSR portfolio held in
Consumer Banking
, the
$212 million
non-core MSR portfolio held in
All Other
and the
$469 million
non-U.S. MSR portfolio held in
Global Markets.
|
|
|
Bank of America 2017
174
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Level 3 – Fair Value Measurements in 2017
(1)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||
(Dollars in millions)
|
Balance
January 1
2017
|
Total Realized/Unrealized Gains/(Losses)
(2)
|
Gains/
(Losses) in OCI (3) |
Gross
|
Gross
Transfers into
Level 3
|
Gross
Transfers out of
Level 3
|
Balance
December 31 2017 |
Change in Unrealized Gains/(Losses) Related to Financial Instruments Still Held
(2)
|
|||||||||||||||||||||||||
Purchases
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Corporate securities, trading loans and other
|
$
|
2,777
|
|
$
|
229
|
|
$
|
—
|
|
$
|
547
|
|
$
|
(702
|
)
|
$
|
5
|
|
$
|
(666
|
)
|
$
|
728
|
|
$
|
(1,054
|
)
|
$
|
1,864
|
|
$
|
2
|
|
Equity securities
|
281
|
|
18
|
|
—
|
|
55
|
|
(70
|
)
|
—
|
|
(10
|
)
|
146
|
|
(185
|
)
|
235
|
|
(1
|
)
|
|||||||||||
Non-U.S. sovereign debt
|
510
|
|
74
|
|
(8
|
)
|
53
|
|
(59
|
)
|
—
|
|
(73
|
)
|
72
|
|
(13
|
)
|
556
|
|
70
|
|
|||||||||||
Mortgage trading loans, ABS and other MBS
|
1,211
|
|
165
|
|
(2
|
)
|
1,210
|
|
(990
|
)
|
—
|
|
(233
|
)
|
218
|
|
(81
|
)
|
1,498
|
|
72
|
|
|||||||||||
Total trading account assets
|
4,779
|
|
486
|
|
(10
|
)
|
1,865
|
|
(1,821
|
)
|
5
|
|
(982
|
)
|
1,164
|
|
(1,333
|
)
|
4,153
|
|
143
|
|
|||||||||||
Net derivative assets
(4)
|
(1,313
|
)
|
(984
|
)
|
—
|
|
664
|
|
(979
|
)
|
—
|
|
949
|
|
48
|
|
(99
|
)
|
(1,714
|
)
|
(409
|
)
|
|||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-U.S. securities
|
229
|
|
2
|
|
16
|
|
49
|
|
—
|
|
—
|
|
(271
|
)
|
—
|
|
—
|
|
25
|
|
—
|
|
|||||||||||
Other taxable securities
|
594
|
|
4
|
|
8
|
|
5
|
|
—
|
|
—
|
|
(42
|
)
|
34
|
|
(94
|
)
|
509
|
|
—
|
|
|||||||||||
Tax-exempt securities
|
542
|
|
1
|
|
3
|
|
14
|
|
(70
|
)
|
—
|
|
(11
|
)
|
35
|
|
(45
|
)
|
469
|
|
—
|
|
|||||||||||
Total AFS debt securities
|
1,365
|
|
7
|
|
27
|
|
68
|
|
(70
|
)
|
—
|
|
(324
|
)
|
69
|
|
(139
|
)
|
1,003
|
|
—
|
|
|||||||||||
Other debt securities carried at fair value – Non-agency residential MBS
|
25
|
|
(1
|
)
|
—
|
|
—
|
|
(21
|
)
|
—
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||
Loans and leases
(5, 6)
|
720
|
|
15
|
|
—
|
|
3
|
|
(34
|
)
|
—
|
|
(126
|
)
|
—
|
|
(7
|
)
|
571
|
|
11
|
|
|||||||||||
Mortgage servicing rights
(6, 7)
|
2,747
|
|
70
|
|
—
|
|
—
|
|
(25
|
)
|
258
|
|
(748
|
)
|
—
|
|
—
|
|
2,302
|
|
(248
|
)
|
|||||||||||
Loans held-for-sale
(5)
|
656
|
|
100
|
|
(3
|
)
|
3
|
|
(189
|
)
|
—
|
|
(346
|
)
|
501
|
|
(32
|
)
|
690
|
|
14
|
|
|||||||||||
Other assets
|
239
|
|
74
|
|
(57
|
)
|
2
|
|
(189
|
)
|
—
|
|
(10
|
)
|
64
|
|
—
|
|
123
|
|
22
|
|
|||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
(5)
|
(359
|
)
|
(5
|
)
|
—
|
|
—
|
|
—
|
|
(12
|
)
|
171
|
|
(58
|
)
|
263
|
|
—
|
|
—
|
|
|||||||||||
Trading account liabilities – Corporate securities and other
|
(27
|
)
|
14
|
|
—
|
|
8
|
|
(17
|
)
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
(24
|
)
|
2
|
|
|||||||||||
Accrued expenses and other liabilities
(5)
|
(9
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
(8
|
)
|
—
|
|
|||||||||||
Long-term debt
(5)
|
(1,514
|
)
|
(135
|
)
|
(31
|
)
|
84
|
|
—
|
|
(288
|
)
|
514
|
|
(711
|
)
|
218
|
|
(1,863
|
)
|
(196
|
)
|
(1)
|
Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.
|
(2)
|
Includes gains/losses reported in earnings in the following income statement line items: Trading account assets/liabilities - primarily trading account profits; Net derivative assets - primarily trading account profits and mortgage banking income; MSRs - primarily mortgage banking income; Long-term debt - primarily trading account profits. For MSRs, the amounts reflect the changes in modeled MSR fair value due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve, and periodic adjustments to the valuation model to reflect changes in the modeled relationships between inputs and projected cash flows, as well as changes in cash flow assumptions including cost to service.
|
(3)
|
Includes unrealized gains/losses in OCI on AFS securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. For more information, see
Note 1 – Summary of Significant Accounting Principles
.
|
(4)
|
Net derivatives include derivative assets of
$4.1 billion
and derivative liabilities of
$5.8 billion
.
|
(5)
|
Amounts represent instruments that are accounted for under the fair value option.
|
(6)
|
Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales.
|
(7)
|
Settlements represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.
|
175
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Level 3 – Fair Value Measurements in 2016
(1)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||
|
Balance
January 1
2016
|
Total Realized/Unrealized Gains/(Losses)
(2)
|
Gains/
(Losses) in OCI (3) |
Gross
|
Gross
Transfers into
Level 3
|
Gross
Transfers out of
Level 3
|
Balance
December 31 2016 |
Change in Unrealized Gains/(Losses) Related to Financial Instruments Still Held
(2)
|
|||||||||||||||||||||||||
(Dollars in millions)
|
Purchases
|
Sales
|
Issuances
|
Settlements
|
|||||||||||||||||||||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate securities, trading loans and other
|
$
|
2,838
|
|
$
|
78
|
|
$
|
2
|
|
$
|
1,508
|
|
$
|
(847
|
)
|
$
|
—
|
|
$
|
(725
|
)
|
$
|
728
|
|
$
|
(805
|
)
|
$
|
2,777
|
|
$
|
(82
|
)
|
Equity securities
|
407
|
|
74
|
|
—
|
|
73
|
|
(169
|
)
|
—
|
|
(82
|
)
|
70
|
|
(92
|
)
|
281
|
|
(59
|
)
|
|||||||||||
Non-U.S. sovereign debt
|
521
|
|
122
|
|
91
|
|
12
|
|
(146
|
)
|
—
|
|
(90
|
)
|
—
|
|
—
|
|
510
|
|
120
|
|
|||||||||||
Mortgage trading loans, ABS and other MBS
|
1,868
|
|
188
|
|
(2
|
)
|
988
|
|
(1,491
|
)
|
—
|
|
(344
|
)
|
158
|
|
(154
|
)
|
1,211
|
|
64
|
|
|||||||||||
Total trading account assets
|
5,634
|
|
462
|
|
91
|
|
2,581
|
|
(2,653
|
)
|
—
|
|
(1,241
|
)
|
956
|
|
(1,051
|
)
|
4,779
|
|
43
|
|
|||||||||||
Net derivative assets
(4)
|
(441
|
)
|
285
|
|
—
|
|
470
|
|
(1,155
|
)
|
—
|
|
76
|
|
(186
|
)
|
(362
|
)
|
(1,313
|
)
|
(376
|
)
|
|||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-agency residential MBS
|
106
|
|
—
|
|
—
|
|
—
|
|
(106
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||
Non-U.S. securities
|
—
|
|
—
|
|
(6
|
)
|
584
|
|
(92
|
)
|
—
|
|
(263
|
)
|
6
|
|
—
|
|
229
|
|
—
|
|
|||||||||||
Other taxable securities
|
757
|
|
4
|
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
(83
|
)
|
—
|
|
(82
|
)
|
594
|
|
—
|
|
|||||||||||
Tax-exempt securities
|
569
|
|
—
|
|
(1
|
)
|
1
|
|
—
|
|
—
|
|
(2
|
)
|
10
|
|
(35
|
)
|
542
|
|
—
|
|
|||||||||||
Total AFS debt securities
|
1,432
|
|
4
|
|
(9
|
)
|
585
|
|
(198
|
)
|
—
|
|
(348
|
)
|
16
|
|
(117
|
)
|
1,365
|
|
—
|
|
|||||||||||
Other debt securities carried at fair value – Non-agency residential MBS
|
30
|
|
(5
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
25
|
|
—
|
|
|||||||||||
Loans and leases
(5, 6)
|
1,620
|
|
(44
|
)
|
—
|
|
69
|
|
(553
|
)
|
50
|
|
(194
|
)
|
6
|
|
(234
|
)
|
720
|
|
17
|
|
|||||||||||
Mortgage servicing rights
(6, 7)
|
3,087
|
|
149
|
|
—
|
|
—
|
|
(80
|
)
|
411
|
|
(820
|
)
|
—
|
|
—
|
|
2,747
|
|
(107
|
)
|
|||||||||||
Loans held-for-sale
(5)
|
787
|
|
79
|
|
50
|
|
22
|
|
(256
|
)
|
—
|
|
(93
|
)
|
173
|
|
(106
|
)
|
656
|
|
70
|
|
|||||||||||
Other assets
|
374
|
|
(13
|
)
|
—
|
|
38
|
|
(111
|
)
|
—
|
|
(52
|
)
|
3
|
|
—
|
|
239
|
|
(36
|
)
|
|||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
(5)
|
(335
|
)
|
(11
|
)
|
—
|
|
—
|
|
—
|
|
(22
|
)
|
27
|
|
(19
|
)
|
1
|
|
(359
|
)
|
4
|
|
|||||||||||
Trading account liabilities – Corporate securities and other
|
(21
|
)
|
5
|
|
—
|
|
—
|
|
(11
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(27
|
)
|
4
|
|
|||||||||||
Short-term borrowings
(5)
|
(30
|
)
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||
Accrued expenses and other liabilities
(5)
|
(9
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(9
|
)
|
—
|
|
|||||||||||
Long-term debt
(5)
|
(1,513
|
)
|
(74
|
)
|
(20
|
)
|
140
|
|
—
|
|
(521
|
)
|
948
|
|
(939
|
)
|
465
|
|
(1,514
|
)
|
(184
|
)
|
(1)
|
Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.
|
(2)
|
Includes gains/losses reported in earnings in the following income statement line items: Trading account assets/liabilities - trading account profits; Net derivative assets - primarily trading account profits and mortgage banking income; MSRs - primarily mortgage banking income; Long-term debt - primarily trading account profits. For MSRs, the amounts reflect the changes in modeled MSR fair value due principally to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve.
|
(3)
|
Includes unrealized gains/losses in OCI on AFS securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. For more information, see
Note 1 – Summary of Significant Accounting Principles
.
|
(4)
|
Net derivatives include derivative assets of
$3.9 billion
and derivative liabilities of
$5.2 billion
.
|
(5)
|
Amounts represent instruments that are accounted for under the fair value option.
|
(6)
|
Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales.
|
(7)
|
Settlements represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.
|
|
|
Bank of America 2017
176
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Level 3 – Fair Value Measurements in 2015
(1)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
(Dollars in millions)
|
Balance
January 1
2015
|
Total Realized/Unrealized Gains/(Losses)
(2)
|
Gains/
(Losses) in OCI (3) |
Gross
|
Gross
Transfers into
Level 3
|
Gross
Transfers out of
Level 3
|
Balance
December 31
2015
|
Change in Unrealized Gains/(Losses) Related to Financial Instruments Still Held
(2)
|
|||||||||||||||||||||||||
Purchases
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate securities, trading loans and other
|
$
|
3,270
|
|
$
|
(31
|
)
|
$
|
(11
|
)
|
$
|
1,540
|
|
$
|
(1,616
|
)
|
$
|
—
|
|
$
|
(1,122
|
)
|
$
|
1,570
|
|
$
|
(762
|
)
|
$
|
2,838
|
|
$
|
(123
|
)
|
Equity securities
|
352
|
|
9
|
|
—
|
|
49
|
|
(11
|
)
|
—
|
|
(11
|
)
|
41
|
|
(22
|
)
|
407
|
|
3
|
|
|||||||||||
Non-U.S. sovereign debt
|
574
|
|
114
|
|
(179
|
)
|
185
|
|
(1
|
)
|
—
|
|
(145
|
)
|
—
|
|
(27
|
)
|
521
|
|
74
|
|
|||||||||||
Mortgage trading loans, ABS and other MBS
|
2,063
|
|
154
|
|
1
|
|
1,250
|
|
(1,117
|
)
|
—
|
|
(493
|
)
|
50
|
|
(40
|
)
|
1,868
|
|
(93
|
)
|
|||||||||||
Total trading account assets
|
6,259
|
|
246
|
|
(189
|
)
|
3,024
|
|
(2,745
|
)
|
—
|
|
(1,771
|
)
|
1,661
|
|
(851
|
)
|
5,634
|
|
(139
|
)
|
|||||||||||
Net derivative assets
(4)
|
(920
|
)
|
1,335
|
|
(7
|
)
|
273
|
|
(863
|
)
|
—
|
|
(261
|
)
|
(40
|
)
|
42
|
|
(441
|
)
|
605
|
|
|||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-agency residential MBS
|
279
|
|
(12
|
)
|
—
|
|
134
|
|
—
|
|
—
|
|
(425
|
)
|
167
|
|
(37
|
)
|
106
|
|
—
|
|
|||||||||||
Non-U.S. securities
|
10
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||
Other taxable securities
|
1,667
|
|
—
|
|
—
|
|
189
|
|
—
|
|
—
|
|
(160
|
)
|
—
|
|
(939
|
)
|
757
|
|
—
|
|
|||||||||||
Tax-exempt securities
|
599
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(30
|
)
|
—
|
|
—
|
|
569
|
|
—
|
|
|||||||||||
Total AFS debt securities
|
2,555
|
|
(12
|
)
|
—
|
|
323
|
|
—
|
|
—
|
|
(625
|
)
|
167
|
|
(976
|
)
|
1,432
|
|
—
|
|
|||||||||||
Other debt securities carried at fair value – Non-agency residential MBS
|
—
|
|
(3
|
)
|
—
|
|
33
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
30
|
|
—
|
|
|||||||||||
Loans and leases
(5, 6)
|
1,983
|
|
(23
|
)
|
—
|
|
—
|
|
(4
|
)
|
57
|
|
(237
|
)
|
144
|
|
(300
|
)
|
1,620
|
|
13
|
|
|||||||||||
Mortgage servicing rights
(6, 7)
|
3,530
|
|
187
|
|
—
|
|
—
|
|
(393
|
)
|
637
|
|
(874
|
)
|
—
|
|
—
|
|
3,087
|
|
(85
|
)
|
|||||||||||
Loans held-for-sale
(5)
|
173
|
|
(51
|
)
|
(8
|
)
|
771
|
|
(203
|
)
|
61
|
|
(61
|
)
|
203
|
|
(98
|
)
|
787
|
|
(39
|
)
|
|||||||||||
Other assets
|
911
|
|
(55
|
)
|
—
|
|
11
|
|
(130
|
)
|
—
|
|
(51
|
)
|
10
|
|
(322
|
)
|
374
|
|
(61
|
)
|
|||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
(5)
|
—
|
|
(11
|
)
|
—
|
|
—
|
|
—
|
|
(131
|
)
|
217
|
|
(411
|
)
|
1
|
|
(335
|
)
|
—
|
|
|||||||||||
Trading account liabilities – Corporate securities and other
|
(36
|
)
|
19
|
|
—
|
|
30
|
|
(34
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(21
|
)
|
(3
|
)
|
|||||||||||
Short-term borrowings
(5)
|
—
|
|
17
|
|
—
|
|
—
|
|
—
|
|
(52
|
)
|
10
|
|
(24
|
)
|
19
|
|
(30
|
)
|
1
|
|
|||||||||||
Accrued expenses and other liabilities
(5)
|
(10
|
)
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(9
|
)
|
1
|
|
|||||||||||
Long-term debt
(5)
|
(2,362
|
)
|
287
|
|
19
|
|
616
|
|
—
|
|
(188
|
)
|
273
|
|
(1,592
|
)
|
1,434
|
|
(1,513
|
)
|
255
|
|
(1)
|
Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.
|
(2)
|
Includes gains/losses reported in earnings in the following income statement line items: Trading account assets/liabilities - trading account profits; Net derivative assets - primarily trading account profits and mortgage banking income; MSRs - primarily mortgage banking income; Long-term debt - primarily trading account profits. For MSRs, the amounts reflect the changes in modeled MSR fair value due principally to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve.
|
(3)
|
Includes unrealized gains/losses in OCI on AFS securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. For more information, see
Note 1 – Summary of Significant Accounting Principles
.
|
(4)
|
Net derivatives include derivative assets of
$5.1 billion
and derivative liabilities of
$5.6 billion
.
|
(5)
|
Amounts represent instruments that are accounted for under the fair value option.
|
(6)
|
Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales.
|
(7)
|
Settlements represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.
|
177
Bank of America 2017
|
|
|
|
|
|
|
|
|
||||
Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017
|
|
||||||||
|
|
|
|
|
|||||
(Dollars in millions)
|
|
|
Inputs
|
||||||
Financial Instrument
|
Fair
Value
|
Valuation
Technique
|
Significant Unobservable
Inputs
|
Ranges of
Inputs
|
Weighted Average
|
||||
Loans and Securities
(1)
|
|
|
|
|
|
||||
Instruments backed by residential real estate assets
|
$
|
871
|
|
Discounted cash flow
|
Yield
|
0% to 25%
|
|
6
|
%
|
Trading account assets – Mortgage trading loans, ABS and other MBS
|
298
|
|
Prepayment speed
|
0% to 22% CPR
|
|
12
|
%
|
||
Loans and leases
|
570
|
|
Default rate
|
0% to 3% CDR
|
|
1
|
%
|
||
Loans held-for-sale
|
3
|
|
Loss severity
|
0% to 53%
|
|
17
|
%
|
||
Instruments backed by commercial real estate assets
|
$
|
286
|
|
Discounted cash flow
|
Yield
|
0% to 25%
|
|
9
|
%
|
Trading account assets – Corporate securities, trading loans and other
|
244
|
|
Price
|
$0 to $100
|
|
$67
|
|||
Trading account assets – Mortgage trading loans, ABS and other MBS
|
42
|
|
|
|
|
||||
Commercial loans, debt securities and other
|
$
|
4,023
|
|
Discounted cash flow, Market comparables
|
Yield
|
0% to 12%
|
|
5
|
%
|
Trading account assets – Corporate securities, trading loans and other
|
1,613
|
|
Prepayment speed
|
10% to 20%
|
|
16
|
%
|
||
Trading account assets – Non-U.S. sovereign debt
|
556
|
|
Default rate
|
3% to 4%
|
|
4
|
%
|
||
Trading account assets – Mortgage trading loans, ABS and other MBS
|
1,158
|
|
Loss severity
|
35% to 40%
|
|
37
|
%
|
||
AFS debt securities – Other taxable securities
|
8
|
|
Price
|
$0 to $145
|
|
$63
|
|||
Loans and leases
|
1
|
|
|
|
|
||||
Loans held-for-sale
|
687
|
|
|
|
|
||||
Auction rate securities
|
$
|
977
|
|
Discounted cash flow, Market comparables
|
Price
|
$10 to $100
|
|
$94
|
|
Trading account assets – Corporate securities, trading loans and other
|
7
|
|
|
|
|
||||
AFS debt securities – Other taxable securities
|
501
|
|
|
|
|
||||
AFS debt securities – Tax-exempt securities
|
469
|
|
|
|
|
||||
MSRs
|
$
|
2,302
|
|
Discounted cash flow
|
Weighted-average life, fixed rate
(4)
|
0 to 14 years
|
|
5 years
|
|
|
|
Weighted-average life, variable rate
(4)
|
0 to 10 years
|
|
3 years
|
|
|||
|
|
Option Adjusted Spread, fixed rate
|
9% to 14%
|
|
10
|
%
|
|||
|
|
Option Adjusted Spread, variable rate
|
9% to 15%
|
|
12
|
%
|
|||
Structured liabilities
|
|
|
|
|
|
||||
Long-term debt
|
$
|
(1,863
|
)
|
Discounted cash flow, Market comparables, Industry standard derivative pricing
(2)
|
Equity correlation
|
15% to 100%
|
|
63
|
%
|
|
|
Long-dated equity volatilities
|
4% to 84%
|
|
22
|
%
|
|||
|
|
Yield
|
7.5
|
%
|
n/a
|
|
|||
|
|
Price
|
$0 to $100
|
|
$66
|
||||
Net derivative assets
|
|
|
|
|
|
||||
Credit derivatives
|
$
|
(282
|
)
|
Discounted cash flow, Stochastic recovery correlation model
|
Yield
|
1% to 5%
|
|
3
|
%
|
|
|
Upfront points
|
0 points to 100 points
|
|
71 points
|
|
|||
|
|
Credit correlation
|
35% to 83%
|
|
42
|
%
|
|||
|
|
Prepayment speed
|
15% to 20% CPR
|
|
16
|
%
|
|||
|
|
Default rate
|
1% to 4% CDR
|
|
2
|
%
|
|||
|
|
Loss severity
|
35
|
%
|
n/a
|
|
|||
|
|
Price
|
$0 to $102
|
|
$82
|
||||
Equity derivatives
|
$
|
(2,059
|
)
|
Industry standard derivative pricing
(2)
|
Equity correlation
|
15% to 100%
|
|
63
|
%
|
|
|
Long-dated equity volatilities
|
4% to 84%
|
|
22
|
%
|
|||
Commodity derivatives
|
$
|
(3
|
)
|
Discounted cash flow, Industry standard derivative pricing
(2)
|
Natural gas forward price
|
$1/MMBtu to $5/MMBtu
|
|
$3/MMBtu
|
|
|
|
Correlation
|
71% to 87%
|
|
81
|
%
|
|||
|
|
Volatilities
|
26% to 132%
|
|
57
|
%
|
|||
Interest rate derivatives
|
$
|
630
|
|
Industry standard derivative pricing
(3)
|
Correlation (IR/IR)
|
15% to 92%
|
|
50
|
%
|
|
|
Correlation (FX/IR)
|
0% to 46%
|
|
1
|
%
|
|||
|
|
Long-dated inflation rates
|
-14% to 38%
|
|
4
|
%
|
|||
|
|
Long-dated inflation volatilities
|
0% to 1%
|
|
1
|
%
|
|||
Total net derivative assets
|
$
|
(1,714
|
)
|
|
|
|
|
(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
173
: Trading account assets – Corporate securities, trading loans and other of
$1.9 billion
, Trading account assets – Non-U.S. sovereign debt of
$556 million
, Trading account assets – Mortgage trading loans, ABS and other MBS of
$1.5 billion
, AFS debt securities – Other taxable securities of
$509 million
, AFS debt securities – Tax-exempt securities of
$469 million
, Loans and leases of
$571 million
and LHFS of
$690 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.
|
(4)
|
The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions.
|
|
|
Bank of America 2017
178
|
|
|
|
|
|
|
||||
Quantitative Information about Level 3 Fair Value Measurements at December 31, 2016
|
|||||||||
|
|
|
|
|
|||||
(Dollars in millions)
|
|
|
Inputs
|
||||||
Financial Instrument
|
Fair
Value |
Valuation
Technique |
Significant Unobservable
Inputs |
Ranges of
Inputs |
Weighted Average
|
||||
Loans and Securities
(1)
|
|
|
|
|
|
||||
Instruments backed by residential real estate assets
|
$
|
1,066
|
|
Discounted cash flow, Market comparables
|
Yield
|
0% to 50%
|
|
7
|
%
|
Trading account assets – Mortgage trading loans, ABS and other MBS
|
337
|
|
Prepayment speed
|
0% to 27% CPR
|
|
14
|
%
|
||
Loans and leases
|
718
|
|
Default rate
|
0% to 3% CDR
|
|
2
|
%
|
||
Loans held-for-sale
|
11
|
|
Loss severity
|
0% to 54%
|
|
18
|
%
|
||
Instruments backed by commercial real estate assets
|
$
|
317
|
|
Discounted cash flow, Market comparables
|
Yield
|
0% to 39%
|
|
11
|
%
|
Trading account assets – Corporate securities, trading loans and other
|
178
|
|
Price
|
$0 to $100
|
|
$65
|
|||
Trading account assets – Mortgage trading loans, ABS and other MBS
|
53
|
|
|
|
|
||||
Loans held-for-sale
|
86
|
|
|
|
|
||||
Commercial loans, debt securities and other
|
$
|
4,486
|
|
Discounted cash flow, Market comparables
|
Yield
|
1% to 37%
|
|
14
|
%
|
Trading account assets – Corporate securities, trading loans and other
|
2,565
|
|
Prepayment speed
|
5% to 20%
|
|
19
|
%
|
||
Trading account assets – Non-U.S. sovereign debt
|
510
|
|
Default rate
|
3% to 4%
|
|
4
|
%
|
||
Trading account assets – Mortgage trading loans, ABS and other MBS
|
821
|
|
Loss severity
|
0% to 50%
|
|
19
|
%
|
||
AFS debt securities – Other taxable securities
|
29
|
|
Price
|
$0 to $292
|
|
$68
|
|||
Loans and leases
|
2
|
|
Duration
|
0 to 5 years
|
|
3 years
|
|||
Loans held-for-sale
|
559
|
|
|
Enterprise value/EBITDA multiple
|
34x
|
|
n/a
|
||
Auction rate securities
|
$
|
1,141
|
|
Discounted cash flow, Market comparables
|
Price
|
$10 to $100
|
|
$94
|
|
Trading account assets – Corporate securities, trading loans and other
|
34
|
|
|
|
|||||
AFS debt securities – Other taxable securities
|
565
|
|
|
|
|
||||
AFS debt securities – Tax-exempt securities
|
542
|
|
|
|
|
||||
MSRs
|
$
|
2,747
|
|
Discounted cash flow
|
Weighted-average life, fixed rate
(4)
|
0 to 15 years
|
|
6 years
|
|
|
|
Weighted-average life, variable rate
(4)
|
0 to 14 years
|
|
4 years
|
|
|||
|
|
Option Adjusted Spread, fixed rate
|
9% to 14%
|
|
10
|
%
|
|||
|
|
Option Adjusted Spread, variable rate
|
9% to 15%
|
|
12
|
%
|
|||
Structured liabilities
|
|
|
|
|
|
||||
Long-term debt
|
$
|
(1,514
|
)
|
Discounted cash flow, Market comparables, Industry standard derivative pricing
(2)
|
Equity correlation
|
13% to 100%
|
|
68
|
%
|
|
|
Long-dated equity volatilities
|
4% to 76%
|
|
26
|
%
|
|||
|
|
Yield
|
6% to 37%
|
|
20
|
%
|
|||
|
|
Price
|
$12 to $87
|
|
$73
|
||||
|
|
Duration
|
0 to 5 years
|
|
3 years
|
|
|||
Net derivative assets
|
|
|
|
|
|
||||
Credit derivatives
|
$
|
(129
|
)
|
Discounted cash flow, Stochastic recovery correlation model
|
Yield
|
0% to 24%
|
|
13
|
%
|
|
|
Upfront points
|
0 to 100 points
|
|
72 points
|
|
|||
|
|
Credit spreads
|
17 bps to 814 bps
|
|
248 bps
|
|
|||
|
|
Credit correlation
|
21% to 80%
|
|
44
|
%
|
|||
|
|
Prepayment speed
|
10% to 20% CPR
|
|
18
|
%
|
|||
|
|
Default rate
|
1% to 4% CDR
|
|
3
|
%
|
|||
|
|
Loss severity
|
35
|
%
|
n/a
|
|
|||
Equity derivatives
|
$
|
(1,690
|
)
|
Industry standard derivative pricing
(2)
|
Equity correlation
|
13% to 100%
|
|
68
|
%
|
|
|
Long-dated equity volatilities
|
4% to 76%
|
|
26
|
%
|
|||
Commodity derivatives
|
$
|
6
|
|
Discounted cash flow, Industry standard derivative pricing
(2)
|
Natural gas forward price
|
$2/MMBtu to $6/MMBtu
|
|
$4/MMBtu
|
|
|
|
Correlation
|
66% to 95%
|
|
85
|
%
|
|||
|
|
Volatilities
|
23% to 96%
|
|
36
|
%
|
|||
|
|
|
|
|
|||||
Interest rate derivatives
|
$
|
500
|
|
Industry standard derivative pricing
(3)
|
Correlation (IR/IR)
|
15% to 99%
|
|
56
|
%
|
|
|
Correlation (FX/IR)
|
0% to 40%
|
|
2
|
%
|
|||
|
|
Illiquid IR and long-dated inflation rates
|
-12% to 35%
|
|
5
|
%
|
|||
|
|
Long-dated inflation volatilities
|
0% to 2%
|
|
1
|
%
|
|||
Total net derivative assets
|
$
|
(1,313
|
)
|
|
|
|
|
(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
174
: Trading account assets – Corporate securities, trading loans and other of
$2.8 billion
, Trading account assets – Non-U.S. sovereign debt of
$510 million
, Trading account assets – Mortgage trading loans, ABS and other MBS of
$1.2 billion
, AFS debt securities – Other taxable securities of
$594 million
, AFS debt securities – Tax-exempt securities of
$542 million
, Loans and leases of
$720 million
and LHFS of
$656 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.
|
(4)
|
The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions.
|
179
Bank of America 2017
|
|
|
|
|
Bank of America 2017
180
|
|
|
|
|
|
|
|
|
||||||||
Assets Measured at Fair Value on a Nonrecurring Basis
|
|||||||||||||||
|
|
||||||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
(Dollars in millions)
|
Level 2
|
|
Level 3
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans held-for-sale
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
193
|
|
|
$
|
44
|
|
Loans and leases
(1)
|
—
|
|
|
894
|
|
|
—
|
|
|
1,416
|
|
||||
Foreclosed properties
(2, 3)
|
—
|
|
|
83
|
|
|
—
|
|
|
77
|
|
||||
Other assets
|
425
|
|
|
—
|
|
|
358
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
Gains (Losses)
|
||||||||||||
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans held-for-sale
|
|
|
$
|
(6
|
)
|
|
$
|
(54
|
)
|
|
$
|
(8
|
)
|
||
Loans and leases
(1)
|
|
|
(336
|
)
|
|
(458
|
)
|
|
(993
|
)
|
|||||
Foreclosed properties
|
|
|
(41
|
)
|
|
(41
|
)
|
|
(57
|
)
|
|||||
Other assets
|
|
|
(124
|
)
|
|
(74
|
)
|
|
(28
|
)
|
(1)
|
Includes
$135 million
of losses on loans that were written down to a collateral value of zero during
2017
compared to losses of
$150 million
and
$174 million
for
2016
and
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 recorded during the first 90 days after transfer of a loan to foreclosed properties.
|
(3)
|
Excludes
$801 million
and
$1.2 billion
of properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans) at
December 31, 2017 and 2016
.
|
|
|
|
|
|
|
|
|
|
|
|||
Quantitative Information about Nonrecurring Level 3 Fair Value Measurements
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||
(Dollars in millions)
|
|
|
|
|
Inputs
|
|||||||
Financial Instrument
|
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Inputs
|
|
Ranges of
Inputs
|
|
Weighted Average
|
|||
|
December 31, 2017
|
|||||||||||
Loans and leases backed by residential real estate assets
|
$
|
894
|
|
|
Market comparables
|
|
OREO discount
|
|
15% to 58%
|
|
23
|
%
|
|
|
|
|
|
Costs to sell
|
|
5% to 49%
|
|
7
|
%
|
|
December 31, 2016
|
|||||||||||
Loans and leases backed by residential real estate assets
|
$
|
1,416
|
|
|
Market comparables
|
|
OREO discount
|
|
8% to 56%
|
|
21
|
%
|
|
|
|
|
|
Costs to sell
|
|
7% to 45%
|
|
9
|
%
|
181
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair Value Option Elections
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
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
|
||||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
52,906
|
|
|
$
|
52,907
|
|
|
$
|
(1
|
)
|
|
$
|
49,750
|
|
|
$
|
49,615
|
|
|
$
|
135
|
|
Loans reported as trading account assets
(1)
|
5,735
|
|
|
11,804
|
|
|
(6,069
|
)
|
|
6,215
|
|
|
11,557
|
|
|
(5,342
|
)
|
||||||
Trading inventory – other
|
12,027
|
|
|
n/a
|
|
|
n/a
|
|
|
8,206
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Consumer and commercial loans
|
5,710
|
|
|
5,744
|
|
|
(34
|
)
|
|
7,085
|
|
|
7,190
|
|
|
(105
|
)
|
||||||
Loans held-for-sale
|
2,156
|
|
|
3,717
|
|
|
(1,561
|
)
|
|
4,026
|
|
|
5,595
|
|
|
(1,569
|
)
|
||||||
Customer receivables and other assets
|
3
|
|
|
n/a
|
|
|
n/a
|
|
|
253
|
|
|
250
|
|
|
3
|
|
||||||
Long-term deposits
|
449
|
|
|
421
|
|
|
28
|
|
|
731
|
|
|
672
|
|
|
59
|
|
||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
36,182
|
|
|
36,187
|
|
|
(5
|
)
|
|
35,766
|
|
|
35,929
|
|
|
(163
|
)
|
||||||
Short-term borrowings
|
1,494
|
|
|
1,494
|
|
|
—
|
|
|
2,024
|
|
|
2,024
|
|
|
—
|
|
||||||
Unfunded loan commitments
|
120
|
|
|
n/a
|
|
|
n/a
|
|
|
173
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Long-term debt
(2)
|
31,786
|
|
|
31,512
|
|
|
274
|
|
|
30,037
|
|
|
29,862
|
|
|
175
|
|
(1)
|
A significant portion of the loans reported as trading account assets are distressed loans that 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
$31.4 billion
and
$29.7 billion
, and contractual principal outstanding of
$31.1 billion
and
$29.5 billion
at
December 31, 2017 and 2016
.
|
|
|
Bank of America 2017
182
|
|
|
|
|
|
|
|
|
||||||||
Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Trading
Account
Profits
|
|
Mortgage Banking Income
|
|
Other
Income
|
|
Total
|
||||||||
(Dollars in millions)
|
2017
|
||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
(57
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(57
|
)
|
Loans reported as trading account assets
|
318
|
|
|
—
|
|
|
—
|
|
|
318
|
|
||||
Trading inventory – other
(1)
|
3,821
|
|
|
—
|
|
|
—
|
|
|
3,821
|
|
||||
Consumer and commercial loans
|
(9
|
)
|
|
—
|
|
|
35
|
|
|
26
|
|
||||
Loans held-for-sale
(2)
|
—
|
|
|
211
|
|
|
87
|
|
|
298
|
|
||||
Unfunded loan commitments
|
—
|
|
|
—
|
|
|
36
|
|
|
36
|
|
||||
Long-term debt
(3, 4)
|
(1,044
|
)
|
|
—
|
|
|
(146
|
)
|
|
(1,190
|
)
|
||||
Other
(5)
|
(36
|
)
|
|
—
|
|
|
13
|
|
|
(23
|
)
|
||||
Total
|
$
|
2,993
|
|
|
$
|
211
|
|
|
$
|
25
|
|
|
$
|
3,229
|
|
|
|
|
|
|
|
|
|
||||||||
|
2016
|
||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
(64
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(63
|
)
|
Loans reported as trading account assets
|
301
|
|
|
—
|
|
|
—
|
|
|
301
|
|
||||
Trading inventory – other
(1)
|
57
|
|
|
—
|
|
|
—
|
|
|
57
|
|
||||
Consumer and commercial loans
|
49
|
|
|
—
|
|
|
(37
|
)
|
|
12
|
|
||||
Loans held-for-sale
(2)
|
11
|
|
|
518
|
|
|
6
|
|
|
535
|
|
||||
Unfunded loan commitments
|
—
|
|
|
—
|
|
|
487
|
|
|
487
|
|
||||
Long-term debt
(3, 4)
|
(489
|
)
|
|
—
|
|
|
(97
|
)
|
|
(586
|
)
|
||||
Other
(5)
|
(21
|
)
|
|
—
|
|
|
52
|
|
|
31
|
|
||||
Total
|
$
|
(156
|
)
|
|
$
|
518
|
|
|
$
|
412
|
|
|
$
|
774
|
|
|
|
|
|
|
|
|
|
||||||||
|
2015
|
||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
(195
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(195
|
)
|
Loans reported as trading account assets
|
(199
|
)
|
|
—
|
|
|
—
|
|
|
(199
|
)
|
||||
Trading inventory – other
(1)
|
1,284
|
|
|
—
|
|
|
—
|
|
|
1,284
|
|
||||
Consumer and commercial loans
|
52
|
|
|
—
|
|
|
(295
|
)
|
|
(243
|
)
|
||||
Loans held-for-sale
(2)
|
(36
|
)
|
|
673
|
|
|
63
|
|
|
700
|
|
||||
Unfunded loan commitments
|
—
|
|
|
—
|
|
|
(210
|
)
|
|
(210
|
)
|
||||
Long-term debt
(3, 4)
|
2,107
|
|
|
—
|
|
|
(633
|
)
|
|
1,474
|
|
||||
Other
(5)
|
37
|
|
|
—
|
|
|
23
|
|
|
60
|
|
||||
Total
|
$
|
3,050
|
|
|
$
|
673
|
|
|
$
|
(1,052
|
)
|
|
$
|
2,671
|
|
(1)
|
The gains in trading account profits are primarily offset by losses on trading liabilities that hedge these assets.
|
(2)
|
Includes the value of IRLCs on funded loans, including those sold during the period.
|
(3)
|
The 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.
|
(4)
|
For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in OCI, see
Note 14 – Accumulated Other Comprehensive Income (Loss)
. For more information on how the Corporation’s own credit spread is determined, see
Note 20 – Fair Value Measurements
.
|
(5)
|
Includes gains (losses) on other assets, long-term deposits, federal funds purchased and securities loaned or sold under agreements to repurchase and short-term borrowings.
|
183
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair Value of Financial Instruments
|
|||||||||||||||
|
|
|
|
||||||||||||
|
|
|
Fair Value
|
||||||||||||
|
Carrying Value
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
(Dollars in millions)
|
December 31, 2017
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
904,399
|
|
|
$
|
68,586
|
|
|
$
|
849,576
|
|
|
$
|
918,162
|
|
Loans held-for-sale
|
11,430
|
|
|
10,521
|
|
|
909
|
|
|
11,430
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Deposits
|
1,309,545
|
|
|
1,309,398
|
|
|
—
|
|
|
1,309,398
|
|
||||
Long-term debt
|
227,402
|
|
|
235,126
|
|
|
1,863
|
|
|
236,989
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2016
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
873,209
|
|
|
$
|
71,793
|
|
|
$
|
815,329
|
|
|
$
|
887,122
|
|
Loans held-for-sale
|
9,066
|
|
|
8,082
|
|
|
984
|
|
|
9,066
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
1,260,934
|
|
|
1,261,086
|
|
|
—
|
|
|
1,261,086
|
|
||||
Long-term debt
|
216,823
|
|
|
220,071
|
|
|
1,514
|
|
|
221,585
|
|
|
|
Bank of America 2017
184
|
185
Bank of America 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Results of Business Segments and All Other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
At and for the year ended December 31
|
Total Corporation
(1)
|
|
Consumer Banking
|
||||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Net interest income (FTE basis)
|
$
|
45,592
|
|
|
$
|
41,996
|
|
|
$
|
39,847
|
|
|
$
|
24,307
|
|
|
$
|
21,290
|
|
|
$
|
20,428
|
|
Noninterest income
|
42,685
|
|
|
42,605
|
|
|
44,007
|
|
|
10,214
|
|
|
10,441
|
|
|
11,091
|
|
||||||
Total revenue, net of interest expense (FTE basis)
|
88,277
|
|
|
84,601
|
|
|
83,854
|
|
|
34,521
|
|
|
31,731
|
|
|
31,519
|
|
||||||
Provision for credit losses
|
3,396
|
|
|
3,597
|
|
|
3,161
|
|
|
3,525
|
|
|
2,715
|
|
|
2,346
|
|
||||||
Noninterest expense
|
54,743
|
|
|
55,083
|
|
|
57,617
|
|
|
17,787
|
|
|
17,654
|
|
|
18,710
|
|
||||||
Income before income taxes (FTE basis)
|
30,138
|
|
|
25,921
|
|
|
23,076
|
|
|
13,209
|
|
|
11,362
|
|
|
10,463
|
|
||||||
Income tax expense (FTE basis)
|
11,906
|
|
|
8,099
|
|
|
7,166
|
|
|
5,002
|
|
|
4,190
|
|
|
3,814
|
|
||||||
Net income
|
$
|
18,232
|
|
|
$
|
17,822
|
|
|
$
|
15,910
|
|
|
$
|
8,207
|
|
|
$
|
7,172
|
|
|
$
|
6,649
|
|
Period-end total assets
|
$
|
2,281,234
|
|
|
$
|
2,188,067
|
|
|
|
|
|
$
|
749,325
|
|
|
$
|
702,333
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Global Wealth &
Investment Management |
|
Global Banking
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Net interest income (FTE basis)
|
$
|
6,173
|
|
|
$
|
5,759
|
|
|
$
|
5,527
|
|
|
$
|
10,504
|
|
|
$
|
9,471
|
|
|
$
|
9,244
|
|
Noninterest income
|
12,417
|
|
|
11,891
|
|
|
12,507
|
|
|
9,495
|
|
|
8,974
|
|
|
8,377
|
|
||||||
Total revenue, net of interest expense (FTE basis)
|
18,590
|
|
|
17,650
|
|
|
18,034
|
|
|
19,999
|
|
|
18,445
|
|
|
17,621
|
|
||||||
Provision for credit losses
|
56
|
|
|
68
|
|
|
51
|
|
|
212
|
|
|
883
|
|
|
686
|
|
||||||
Noninterest expense
|
13,564
|
|
|
13,175
|
|
|
13,938
|
|
|
8,596
|
|
|
8,486
|
|
|
8,482
|
|
||||||
Income before income taxes (FTE basis)
|
4,970
|
|
|
4,407
|
|
|
4,045
|
|
|
11,191
|
|
|
9,076
|
|
|
8,453
|
|
||||||
Income tax expense (FTE basis)
|
1,882
|
|
|
1,632
|
|
|
1,475
|
|
|
4,238
|
|
|
3,347
|
|
|
3,114
|
|
||||||
Net income
|
$
|
3,088
|
|
|
$
|
2,775
|
|
|
$
|
2,570
|
|
|
$
|
6,953
|
|
|
$
|
5,729
|
|
|
$
|
5,339
|
|
Period-end total assets
|
$
|
284,321
|
|
|
$
|
298,931
|
|
|
|
|
|
$
|
424,533
|
|
|
$
|
408,330
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Global Markets
|
|
All Other
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Net interest income (FTE basis)
|
$
|
3,744
|
|
|
$
|
4,558
|
|
|
$
|
4,191
|
|
|
$
|
864
|
|
|
$
|
918
|
|
|
$
|
457
|
|
Noninterest income (loss)
|
12,207
|
|
|
11,532
|
|
|
10,822
|
|
|
(1,648
|
)
|
|
(233
|
)
|
|
1,210
|
|
||||||
Total revenue, net of interest expense (FTE basis)
|
15,951
|
|
|
16,090
|
|
|
15,013
|
|
|
(784
|
)
|
|
685
|
|
|
1,667
|
|
||||||
Provision for credit losses
|
164
|
|
|
31
|
|
|
99
|
|
|
(561
|
)
|
|
(100
|
)
|
|
(21
|
)
|
||||||
Noninterest expense
|
10,731
|
|
|
10,169
|
|
|
11,374
|
|
|
4,065
|
|
|
5,599
|
|
|
5,113
|
|
||||||
Income (loss) before income taxes (FTE basis)
|
5,056
|
|
|
5,890
|
|
|
3,540
|
|
|
(4,288
|
)
|
|
(4,814
|
)
|
|
(3,425
|
)
|
||||||
Income tax expense (benefit) (FTE basis)
|
1,763
|
|
|
2,072
|
|
|
1,117
|
|
|
(979
|
)
|
|
(3,142
|
)
|
|
(2,354
|
)
|
||||||
Net income (loss)
|
$
|
3,293
|
|
|
$
|
3,818
|
|
|
$
|
2,423
|
|
|
$
|
(3,309
|
)
|
|
$
|
(1,672
|
)
|
|
$
|
(1,071
|
)
|
Period-end total assets
|
$
|
629,007
|
|
|
$
|
566,060
|
|
|
|
|
$
|
194,048
|
|
|
$
|
212,413
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Business Segment Reconciliations
|
|
|
|
|
|
|
||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||
Segments’ total revenue, net of interest expense (FTE basis)
|
|
$
|
89,061
|
|
|
$
|
83,916
|
|
|
$
|
82,187
|
|
Adjustments
(2)
:
|
|
|
|
|
|
|
|
|
||||
ALM activities
|
|
312
|
|
|
(300
|
)
|
|
(208
|
)
|
|||
Liquidating businesses and other
|
|
(1,096
|
)
|
|
985
|
|
|
1,875
|
|
|||
FTE basis adjustment
|
|
(925
|
)
|
|
(900
|
)
|
|
(889
|
)
|
|||
Consolidated revenue, net of interest expense
|
|
$
|
87,352
|
|
|
$
|
83,701
|
|
|
$
|
82,965
|
|
Segments’ total net income
|
|
21,541
|
|
|
19,494
|
|
|
16,981
|
|
|||
Adjustments, net-of-taxes
(2)
:
|
|
|
|
|
|
|
|
|
||||
ALM activities
|
|
(355
|
)
|
|
(651
|
)
|
|
(694
|
)
|
|||
Liquidating businesses and other
|
|
(2,954
|
)
|
|
(1,021
|
)
|
|
(377
|
)
|
|||
Consolidated net income
|
|
$
|
18,232
|
|
|
$
|
17,822
|
|
|
$
|
15,910
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
December 31
|
||||||||
|
|
|
|
2017
|
|
2016
|
||||||
Segments’ total assets
|
|
|
|
$
|
2,087,186
|
|
|
$
|
1,975,654
|
|
||
Adjustments
(2)
:
|
|
|
|
|
|
|
|
|
||||
ALM activities, including securities portfolio
|
|
|
|
625,488
|
|
|
612,996
|
|
||||
Liquidating businesses and other
(3)
|
|
|
|
89,008
|
|
|
118,073
|
|
||||
Elimination of segment asset allocations to match liabilities
|
|
|
|
(520,448
|
)
|
|
(518,656
|
)
|
||||
Consolidated total assets
|
|
|
|
$
|
2,281,234
|
|
|
$
|
2,188,067
|
|
(1)
|
There were no material intersegment revenues.
|
(2)
|
Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.
|
(3)
|
At
December 31, 2016
, includes assets of the non-U.S. consumer credit card business which were included in assets of business held for sale on the Consolidated Balance Sheet.
|
|
|
Bank of America 2017
186
|
|
|
|
|
|
|
||||||
Condensed Statement of Income
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Income
|
|
|
|
|
|
|
|
|
|||
Dividends from subsidiaries:
|
|
|
|
|
|
|
|
|
|||
Bank holding companies and related subsidiaries
|
$
|
12,088
|
|
|
$
|
4,127
|
|
|
$
|
18,970
|
|
Nonbank companies and related subsidiaries
|
202
|
|
|
77
|
|
|
53
|
|
|||
Interest from subsidiaries
|
7,043
|
|
|
2,996
|
|
|
2,004
|
|
|||
Other income (loss)
|
28
|
|
|
111
|
|
|
(623
|
)
|
|||
Total income
|
19,361
|
|
|
7,311
|
|
|
20,404
|
|
|||
Expense
|
|
|
|
|
|
|
|
|
|||
Interest on borrowed funds from related subsidiaries
|
189
|
|
|
969
|
|
|
1,169
|
|
|||
Other interest expense
|
5,555
|
|
|
5,096
|
|
|
5,098
|
|
|||
Noninterest expense
|
1,672
|
|
|
2,704
|
|
|
4,631
|
|
|||
Total expense
|
7,416
|
|
|
8,769
|
|
|
10,898
|
|
|||
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries
|
11,945
|
|
|
(1,458
|
)
|
|
9,506
|
|
|||
Income tax expense (benefit)
|
950
|
|
|
(2,311
|
)
|
|
(3,532
|
)
|
|||
Income before equity in undistributed earnings of subsidiaries
|
10,995
|
|
|
853
|
|
|
13,038
|
|
|||
Equity in undistributed earnings (losses) of subsidiaries:
|
|
|
|
|
|
|
|
|
|||
Bank holding companies and related subsidiaries
|
8,725
|
|
|
16,817
|
|
|
3,068
|
|
|||
Nonbank companies and related subsidiaries
|
(1,488
|
)
|
|
152
|
|
|
(196
|
)
|
|||
Total equity in undistributed earnings (losses) of subsidiaries
|
7,237
|
|
|
16,969
|
|
|
2,872
|
|
|||
Net income
|
$
|
18,232
|
|
|
$
|
17,822
|
|
|
$
|
15,910
|
|
|
|
|
|
||||
Condensed Balance Sheet
|
|
|
|
||||
|
|
|
|
||||
|
December 31
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
|
|
||
Cash held at bank subsidiaries
(1)
|
$
|
4,747
|
|
|
$
|
20,248
|
|
Securities
|
596
|
|
|
909
|
|
||
Receivables from subsidiaries:
|
|
|
|
||||
Bank holding companies and related subsidiaries
|
146,566
|
|
|
117,072
|
|
||
Banks and related subsidiaries
|
146
|
|
|
171
|
|
||
Nonbank companies and related subsidiaries
|
4,745
|
|
|
26,500
|
|
||
Investments in subsidiaries:
|
|
|
|
||||
Bank holding companies and related subsidiaries
|
296,506
|
|
|
287,416
|
|
||
Nonbank companies and related subsidiaries
|
5,225
|
|
|
6,875
|
|
||
Other assets
|
14,554
|
|
|
11,038
|
|
||
Total assets
(2)
|
$
|
473,085
|
|
|
$
|
470,229
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
||
Accrued expenses and other liabilities
|
$
|
10,286
|
|
|
$
|
14,284
|
|
Payables to subsidiaries:
|
|
|
|
||||
Banks and related subsidiaries
|
359
|
|
|
352
|
|
||
Bank holding companies and related subsidiaries
|
1
|
|
|
4,013
|
|
||
Nonbank companies and related subsidiaries
|
9,340
|
|
|
12,010
|
|
||
Long-term debt
|
185,953
|
|
|
173,375
|
|
||
Total liabilities
|
205,939
|
|
|
204,034
|
|
||
Shareholders’ equity
|
267,146
|
|
|
266,195
|
|
||
Total liabilities and shareholders’ equity
|
$
|
473,085
|
|
|
$
|
470,229
|
|
(1)
|
Balance includes third-party cash held of
$193 million
and
$342 million
at
December 31, 2017 and 2016
.
|
(2)
|
During
2016
, the Corporation entered into intercompany arrangements with certain key subsidiaries under which the Corporation transferred certain parent company assets to NB Holdings Corporation.
|
187
Bank of America 2017
|
|
|
|
|
|
|
|
|
||||||
Condensed Statement of Cash Flows
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
18,232
|
|
|
$
|
17,822
|
|
|
$
|
15,910
|
|
Reconciliation of net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|||
Equity in undistributed (earnings) losses of subsidiaries
|
(7,237
|
)
|
|
(16,969
|
)
|
|
(2,872
|
)
|
|||
Other operating activities, net
|
(2,593
|
)
|
|
(2,860
|
)
|
|
(2,583
|
)
|
|||
Net cash provided by (used in) operating activities
|
8,402
|
|
|
(2,007
|
)
|
|
10,455
|
|
|||
Investing activities
|
|
|
|
|
|
|
|
|
|||
Net sales of securities
|
312
|
|
|
—
|
|
|
15
|
|
|||
Net payments to subsidiaries
|
(7,087
|
)
|
|
(65,481
|
)
|
|
(7,944
|
)
|
|||
Other investing activities, net
|
(1
|
)
|
|
(308
|
)
|
|
70
|
|
|||
Net cash used in investing activities
|
(6,776
|
)
|
|
(65,789
|
)
|
|
(7,859
|
)
|
|||
Financing activities
|
|
|
|
|
|
|
|
|
|||
Net decrease in short-term borrowings
|
—
|
|
|
(136
|
)
|
|
(221
|
)
|
|||
Net decrease in other advances
|
(6,672
|
)
|
|
(44
|
)
|
|
(770
|
)
|
|||
Proceeds from issuance of long-term debt
|
37,704
|
|
|
27,363
|
|
|
26,492
|
|
|||
Retirement of long-term debt
|
(29,645
|
)
|
|
(30,804
|
)
|
|
(27,393
|
)
|
|||
Proceeds from issuance of preferred stock
|
—
|
|
|
2,947
|
|
|
2,964
|
|
|||
Common stock repurchased
|
(12,814
|
)
|
|
(5,112
|
)
|
|
(2,374
|
)
|
|||
Cash dividends paid
|
(5,700
|
)
|
|
(4,194
|
)
|
|
(3,574
|
)
|
|||
Net cash used in financing activities
|
(17,127
|
)
|
|
(9,980
|
)
|
|
(4,876
|
)
|
|||
Net decrease in cash held at bank subsidiaries
|
(15,501
|
)
|
|
(77,776
|
)
|
|
(2,280
|
)
|
|||
Cash held at bank subsidiaries at January 1
|
20,248
|
|
|
98,024
|
|
|
100,304
|
|
|||
Cash held at bank subsidiaries at December 31
|
$
|
4,747
|
|
|
$
|
20,248
|
|
|
$
|
98,024
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Dollars in millions)
|
|
|
Total Assets at Year End
(1)
|
|
Total Revenue, Net of Interest Expense
(2)
|
|
Income Before Income Taxes
|
|
Net Income
|
||||||||
U.S.
(3)
|
2017
|
|
$
|
1,965,490
|
|
|
$
|
74,830
|
|
|
$
|
25,108
|
|
|
$
|
15,550
|
|
|
2016
|
|
1,901,043
|
|
|
72,418
|
|
|
22,282
|
|
|
16,183
|
|
||||
|
2015
|
|
|
|
|
72,117
|
|
|
20,181
|
|
|
14,711
|
|
||||
Asia
|
2017
|
|
103,255
|
|
|
3,405
|
|
|
676
|
|
|
464
|
|
||||
|
2016
|
|
85,410
|
|
|
3,365
|
|
|
674
|
|
|
488
|
|
||||
|
2015
|
|
|
|
|
3,524
|
|
|
726
|
|
|
457
|
|
||||
Europe, Middle East and Africa
|
2017
|
|
189,661
|
|
|
7,907
|
|
|
2,990
|
|
|
1,926
|
|
||||
|
2016
|
|
174,934
|
|
|
6,608
|
|
|
1,705
|
|
|
925
|
|
||||
|
2015
|
|
|
|
6,081
|
|
|
938
|
|
|
516
|
|
|||||
Latin America and the Caribbean
|
2017
|
|
22,828
|
|
|
1,210
|
|
|
439
|
|
|
292
|
|
||||
|
2016
|
|
26,680
|
|
|
1,310
|
|
|
360
|
|
|
226
|
|
||||
|
2015
|
|
|
|
|
1,243
|
|
|
342
|
|
|
226
|
|
||||
Total Non-U.S.
|
2017
|
|
315,744
|
|
|
12,522
|
|
|
4,105
|
|
|
2,682
|
|
||||
|
2016
|
|
287,024
|
|
|
11,283
|
|
|
2,739
|
|
|
1,639
|
|
||||
|
2015
|
|
|
|
|
10,848
|
|
|
2,006
|
|
|
1,199
|
|
||||
Total Consolidated
|
2017
|
|
$
|
2,281,234
|
|
|
$
|
87,352
|
|
|
$
|
29,213
|
|
|
$
|
18,232
|
|
|
2016
|
|
2,188,067
|
|
|
83,701
|
|
|
25,021
|
|
|
17,822
|
|
||||
|
2015
|
|
|
|
|
82,965
|
|
|
22,187
|
|
|
15,910
|
|
(1)
|
Total assets include long-lived assets, which are primarily located in the U.S.
|
(2)
|
There were no material intercompany revenues between geographic regions for any of the periods presented.
|
(3)
|
Substantially reflects the U.S.
|
|
|
Bank of America 2017
188
|
189
Bank of America 2017
|
|
|
ICAAP
|
Internal Capital Adequacy Assessment Process
|
IMM
|
Internal models methodology
|
IRLC
|
Interest rate lock commitment
|
IRM
|
Independent risk management
|
ISDA
|
International Swaps and Derivatives Association, Inc.
|
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
|
MLGWM
|
Merrill Lynch Global Wealth Management
|
MLI
|
Merrill Lynch International
|
MLPCC
|
Merrill Lynch Professional Clearing Corp
|
MLPF&S
|
Merrill Lynch, Pierce, Fenner & Smith Incorporated
|
MRC
|
Management Risk Committee
|
MSA
|
Metropolitan Statistical Area
|
MSR
|
Mortgage servicing right
|
NSFR
|
Net Stable Funding Ratio
|
OAS
|
Option-adjusted spread
|
OCC
|
Office of the Comptroller of the Currency
|
OCI
|
Other comprehensive income
|
OREO
|
Other real estate owned
|
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
|
RSU
|
Restricted stock unit
|
SBLC
|
Standby letter of credit
|
SEC
|
Securities and Exchange Commission
|
SLR
|
Supplementary leverage ratio
|
TDR
|
Troubled debt restructurings
|
TLAC
|
Total loss-absorbing capacity
|
TTF
|
Time-to-required funding
|
VA
|
U.S. Department of Veterans Affairs
|
VaR
|
Value-at-Risk
|
VIE
|
Variable interest entity
|
|
|
Bank of America 2017
190
|
191
Bank of America 2017
|
|
|
●
|
“Proposal 1: Electing Directors – Our Director Nominees;”
|
●
|
“Corporate Governance – Additional Information;”
|
●
|
“Corporate Governance – Board Meetings, Committee Membership and Attendance;” and
|
●
|
“Section 16(a) Beneficial Ownership Reporting Compliance.”
|
●
|
“Compensation Discussion and Analysis;”
|
●
|
“Compensation and Benefits Committee Report;”
|
●
|
“Executive Compensation;”
|
●
|
“Corporate Governance;” and
|
●
|
“Director Compensation.”
|
|
|
Bank of America 2017
192
|
●
|
“Stock Ownership of Directors, Executive Officers, and Certain Beneficial Owners.”
|
|
|
|
|
|
|
||||
Plan Category
(1)
|
Number of Shares to
be Issued Under Outstanding Options
and Rights
|
|
Weighted-average
Exercise Price of Outstanding
Options
(2)
|
|
Number of Shares Remaining for Future Issuance Under Equity Compensation Plans
(3)
|
||||
Plans approved by shareholders
(4)
|
190,865,153
|
|
|
$
|
42.70
|
|
|
288,515,217
|
|
Plans not approved by shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
190,865,153
|
|
|
$
|
42.70
|
|
|
288,515,217
|
|
(1)
|
This table does not include outstanding options to purchase 5,610,830 shares of the Corporation’s common stock that were assumed by the Corporation in connection with prior acquisitions, under whose plans the options were originally granted. The weighted-average exercise price of these assumed options was $44.89 at
December 31, 2017
. Also, at
December 31, 2017
, there were 984,443 vested restricted stock units and stock option gain deferrals associated with these plans.
|
(2)
|
Does not reflect restricted stock units included in the first column, which do not have an exercise price.
|
(3)
|
Plans approved by shareholders include 288,394,387 shares of common stock available for future issuance under the Bank of America Corporation Key Employee Equity Plan and 120,830 shares of common stock which are available for future issuance under the Corporations Director Stock Plan.
|
(4)
|
Includes 179,887,809 outstanding restricted stock units.
|
●
|
“Related Person and Certain Other Transactions;” and
|
●
|
“Corporate Governance – Director Independence.”
|
●
|
“Proposal 3: Ratifying the Appointment of our Independent Registered Public Accounting Firm for 2018.”
|
193
Bank of America 2017
|
|
|
|
|
|
Incorporated by Reference
|
|||
Exhibit No.
|
Description
|
Notes
|
Form
|
Exhibit
|
Filing Date
|
File No.
|
3(a)
|
|
10-Q
|
3(a)
|
5/2/16
|
1-6523
|
|
(b)
|
|
8-K
|
3.1
|
3/20/15
|
1-6523
|
|
4(a)
|
|
S-3
|
4.1
|
2/1/95
|
33-57533
|
|
|
|
8-K
|
4.3
|
11/18/98
|
1-6523
|
|
|
|
8-K
|
4.4
|
6/14/01
|
1-6523
|
|
|
|
8-K
|
4.2
|
8/27/04
|
1-6523
|
|
|
|
S-3
|
4.6
|
5/5/06
|
333-133852
|
|
|
|
8-K
|
4.1
|
12/5/08
|
1-6523
|
|
|
|
10-K
|
4(ee)
|
2/25/11
|
1-6523
|
|
|
|
8-K
|
4.1
|
1/13/17
|
1-6523
|
|
|
|
10-K
|
4(a)
|
2/23/17
|
1-6523
|
|
(b)
|
|
S-3
|
4.2
|
6/28/96
|
333-07229
|
|
(c)
|
|
10-K
|
4(aaa)
|
2/28/07
|
1-6523
|
|
(d)
|
|
S-3
|
4.12
|
5/1/15
|
333-202354
|
|
(e)
|
|
S-3
|
4.13
|
5/1/15
|
333-202354
|
|
(f)
|
|
S-3
|
4.14
|
5/1/15
|
333-202354
|
|
(g)
|
|
8-K
|
4.2
|
1/13/17
|
1-6523
|
|
(h)
|
|
8-K
|
4.3
|
1/13/17
|
1-6523
|
|
(i)
|
|
S-3
|
4.5
|
2/1/95
|
33-57533
|
|
|
|
8-K
|
4.8
|
11/18/98
|
1-6523
|
|
|
|
S-4
|
4.3
|
3/1/07
|
333-141361
|
|
|
|
10-K
|
4(ff)
|
2/25/11
|
1-6523
|
|
|
|
10-K
|
4(i)
|
2/23/17
|
1-6523
|
|
|
Bank of America 2017
194
|
|
|
|
Incorporated by Reference
|
|||
Exhibit No.
|
Description
|
Notes
|
Form
|
Exhibit
|
Filing Date
|
File No.
|
|
Registrant and its subsidiaries have other long-term debt agreements, but these are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. Copies of these agreements will be furnished to the Commission on request
|
|
|
|
|
|
10(a)
|
1
|
10-K
|
10(c)
|
2/27/09
|
1-6523
|
|
|
1
|
10-K
|
10(c)
|
2/26/10
|
1-6523
|
|
|
1
|
10-K
|
10(c)
|
2/25/11
|
1-6523
|
|
|
1
|
10-K
|
10(a)
|
2/28/13
|
1-6523
|
|
(b)
|
NationsBank Corporation Benefit Security Trust dated as of June 27, 1990
|
1
|
10-K
|
10(t)
|
3/27/91
|
1-6523
|
|
•First Supplement thereto dated as of November 30, 1992
|
1
|
10-K
|
10(v)
|
3/24/93
|
1-6523
|
|
1
|
10-K
|
10(o)
|
3/29/96
|
1-6523
|
|
(c)
|
1
|
10-K
|
10(c)
|
2/25/15
|
1-6523
|
|
(d)
|
1
|
10-K
|
10(d)
|
2/28/13
|
1-6523
|
|
(e)
|
1
|
10-K
|
10(g)
|
2/28/07
|
1-6523
|
|
(f)
|
1
|
8-K
|
10.2
|
12/14/05
|
1-6523
|
|
|
1
|
10-K
|
10(h)
|
3/1/05
|
1-6523
|
|
|
1
|
10-Q
|
10(a)
|
8/4/11
|
1-6523
|
|
(g)
|
1
|
8-K
|
10.2
|
5/3/10
|
1-6523
|
|
|
1
|
10-K
|
10(i)
|
2/28/08
|
1-6523
|
|
|
1
|
10-K
|
10(i)
|
2/26/10
|
1-6523
|
|
|
1
|
10-K
|
10(i)
|
2/25/11
|
1-6523
|
|
|
1
|
10-Q
|
10(a)
|
5/5/13
|
1-6523
|
|
|
1
|
10-Q
|
10(a)
|
5/1/14
|
1-6523
|
|
|
1
|
8-K
|
10.2
|
5/7/15
|
1-6523
|
|
|
1
|
10-Q
|
10(a)
|
5/2/16
|
1-6523
|
|
|
1
|
10-Q
|
10(b)
|
5/2/16
|
1-6523
|
|
|
1
|
10-Q
|
10(c)
|
5/2/16
|
1-6523
|
|
|
|
1
|
10-Q
|
10(a)
|
5/2/17
|
1-6523
|
|
|
1
|
10-Q
|
10(b)
|
5/2/17
|
1-6523
|
(h)
|
1
|
10-K
|
10(v)
|
3/1/04
|
1-6523
|
|
(i)
|
1
|
10-K
|
10(r)
|
3/1/05
|
1-6523
|
|
(j)
|
1
|
10-K
|
10(u)
|
3/1/05
|
1-6523
|
|
(k)
|
1
|
10-K
|
10(v)
|
3/1/05
|
1-6523
|
|
(l)
|
1
|
10-K
|
10(p)
|
2/26/10
|
1-6523
|
|
|
1
|
10-K
|
10(c)
|
2/25/11
|
1-6523
|
|
|
1
|
10-K
|
10(l)
|
2/28/13
|
1-6523
|
|
(m)
|
1
|
10-K
|
10(x)
|
3/1/05
|
1-6523
|
|
(n)
|
1
|
10-K
|
10(y)
|
3/1/05
|
1-6523
|
|
(o)
|
1
|
10-K
|
10(z)
|
3/1/05
|
1-6523
|
|
(p)
|
1
|
10-K
|
10(aa)
|
3/1/05
|
1-6523
|
|
(q)
|
1
|
10-K
|
10(cc)
|
3/1/05
|
1-6523
|
|
(r)
|
1
|
10-K
|
10(hh)
|
3/1/05
|
1-6523
|
|
(s)
|
1
|
10-K
|
10(ii)
|
3/1/05
|
1-6523
|
195
Bank of America 2017
|
|
|
|
|
|
Incorporated by Reference
|
|||
Exhibit No.
|
Description
|
Notes
|
Form
|
Exhibit
|
Filing Date
|
File No.
|
(t)
|
1
|
10-K
|
10(jj)
|
3/1/05
|
1-6523
|
|
(u)
|
1
|
10-K
|
10(ll)
|
3/1/05
|
1-6523
|
|
(v)
|
1
|
10-K
|
10(oo)
|
3/1/05
|
1-6523
|
|
(w)
|
1
|
S-4
|
10(d)
|
12/4/03
|
333-110924
|
|
(x)
|
1
|
8-K
|
10.1
|
10/26/05
|
1-6523
|
|
(y)
|
1
|
8-K
|
10.2
|
10/26/05
|
1-6523
|
|
(z)
|
1
|
10-K
|
10(zz)
|
2/26/10
|
1-6523
|
|
(aa)
|
1
|
10-K
|
10(aaa)
|
2/26/10
|
1-6523
|
|
(bb)
|
1
|
10-K
|
10(bbb)
|
2/26/10
|
1-6523
|
|
(cc)
|
|
8-A
|
4.2
|
3/4/10
|
1-6523
|
|
(dd)
|
|
8-A
|
4.2
|
3/4/10
|
1-6523
|
|
(ee)
|
1
|
10-K
|
10(jjj)
|
2/25/11
|
1-6523
|
|
(ff)
|
|
8-K
|
1.1
|
8/25/11
|
1-6523
|
|
(gg)
|
1
|
10-Q
|
10
|
7/29/15
|
1-6523
|
|
(hh)
|
1
|
10-K
|
10(vv)
|
2/24/16
|
1-6523
|
|
(ii)
|
1
|
10-K
|
10(uu)
|
2/24/16
|
1-6523
|
|
(jj)
|
1
|
10-Q
|
10
|
8/1/16
|
1-6523
|
|
(kk)
|
|
10-K
|
10(rr)
|
2/23/17
|
1-6523
|
|
(ll)
|
1
|
10-Q
|
10
|
7/31/17
|
1-6523
|
|
12
|
2
|
|
|
|
|
|
|
2
|
|
|
|
|
|
18
|
2
|
|
|
|
|
|
21
|
2
|
|
|
|
|
|
23
|
2
|
|
|
|
|
|
24
|
2
|
|
|
|
|
|
31(a)
|
2
|
|
|
|
|
|
(b)
|
2
|
|
|
|
|
|
32(a)
|
2
|
|
|
|
|
|
(b)
|
2
|
|
|
|
|
|
101.INS
|
XBRL Instance Document
|
2
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
2
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
2
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
2
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
2
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definitions Linkbase Document
|
2
|
|
|
|
|
|
|
Bank of America 2017
196
|
Bank of America Corporation
|
|
|
|
By:
|
/s/ Brian T
.
Moynihan
|
|
Brian T
.
Moynihan
|
|
Chief Executive Officer
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ Brian T
.
Moynihan
|
|
Chief Executive Officer, Chairman and Director
(Principal Executive Officer)
|
|
February 22, 2018
|
|
Brian T
.
Moynihan
|
|
|
||
|
|
|
|
|
|
|
*/s/ Paul M. Donofrio
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
February 22, 2018
|
|
Paul M. Donofrio
|
|
|
||
|
|
|
|
|
|
|
*/s/ Rudolf A. Bless
|
|
Chief Accounting Officer
(Principal Accounting Officer)
|
|
February 22, 2018
|
|
Rudolf A. Bless
|
|
|
||
|
|
|
|
|
|
|
*/s/ Sharon L. Allen
|
|
Director
|
|
February 22, 2018
|
|
Sharon L. Allen
|
|
|
||
|
|
|
|
|
|
|
*/s/ Susan S. Bies
|
|
Director
|
|
February 22, 2018
|
|
Susan S. Bies
|
|
|
||
|
|
|
|
|
|
|
*/s/ Jack O. Bovender, Jr.
|
|
Director
|
|
February 22, 2018
|
|
Jack O. Bovender, Jr.
|
|
|
||
|
|
|
|
|
|
|
*/s/ Frank P
.
Bramble, Sr.
|
|
Director
|
|
February 22, 2018
|
|
Frank P
.
Bramble, Sr.
|
|
|
||
|
|
|
|
|
|
|
*/s/ Pierre de Weck
|
|
Director
|
|
February 22, 2018
|
|
Pierre de Weck
|
|
|
||
|
|
|
|
|
|
|
*/s/ Arnold W. Donald
|
|
Director
|
|
February 22, 2018
|
|
Arnold W. Donald
|
|
|
||
|
|
|
|
|
|
|
*/s/ Linda P
.
Hudson
|
|
Director
|
|
February 22, 2018
|
|
Linda P
.
Hudson
|
|
|
||
|
|
|
|
|
|
|
*/s/ Monica C. Lozano
|
|
Director
|
|
February 22, 2018
|
|
Monica C. Lozano
|
|
|
197
Bank of America 2017
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*/s/ Thomas J. May
|
|
Director
|
|
February 22, 2018
|
|
Thomas J. May
|
|
|
||
|
|
|
|
|
|
|
*/s/ Lionel L. Nowell, III
|
|
Director
|
|
February 22, 2018
|
|
Lionel L. Nowell, III
|
|
|
||
|
|
|
|
|
|
|
*/s/ Michael D. White
|
|
Director
|
|
February 22, 2018
|
|
Michael D. White
|
|
|
||
|
|
|
|
|
|
|
*/s/ Thomas D. Woods
|
|
Director
|
|
February 22, 2018
|
|
Thomas D. Woods
|
|
|
||
|
|
|
|
|
|
|
*/s/ R. David Yost
|
|
Director
|
|
February 22, 2018
|
|
R. David Yost
|
|
|
||
|
|
|
|
|
|
|
*/s/ Maria T
.
Zuber
|
|
Director
|
|
February 22, 2018
|
|
Maria T
.
Zuber
|
|
|
||
|
|
|
|
|
|
*By
|
/s/ Ross E. Jeffries, Jr.
|
|
|
|
|
|
Ross E. Jeffries, Jr.
Attorney-in-Fact
|
|
|
|
|
|
|
Bank of America 2017
198
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Excluding Interest on Deposits
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
$
|
29,213
|
|
|
$
|
25,021
|
|
|
$
|
22,187
|
|
|
$
|
7,963
|
|
|
$
|
14,733
|
|
Equity in undistributed earnings (loss) of unconsolidated subsidiaries
|
(245
|
)
|
|
(262
|
)
|
|
(152
|
)
|
|
(222
|
)
|
|
(66
|
)
|
|||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
10,981
|
|
|
8,946
|
|
|
9,688
|
|
|
9,855
|
|
|
11,359
|
|
|||||
1/3 of net rent expense
(1)
|
831
|
|
|
883
|
|
|
945
|
|
|
1,023
|
|
|
1,091
|
|
|||||
Total fixed charges
|
11,812
|
|
|
9,829
|
|
|
10,633
|
|
|
10,878
|
|
|
12,450
|
|
|||||
Preferred dividend requirements
|
2,528
|
|
|
2,361
|
|
|
2,068
|
|
|
1,506
|
|
|
1,746
|
|
|||||
Fixed charges and preferred dividends
|
14,340
|
|
|
12,190
|
|
|
12,701
|
|
|
12,384
|
|
|
14,196
|
|
|||||
Earnings
|
$
|
40,780
|
|
|
$
|
34,588
|
|
|
$
|
32,668
|
|
|
$
|
18,619
|
|
|
$
|
27,117
|
|
Ratio of earnings to fixed charges
|
3.45
|
|
|
3.52
|
|
|
3.07
|
|
|
1.71
|
|
|
2.18
|
|
|||||
Ratio of earnings to fixed charges and preferred dividends
|
2.84
|
|
|
2.84
|
|
|
2.57
|
|
|
1.50
|
|
|
1.91
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Year Ended December 31
|
||||||||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Including Interest on Deposits
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
$
|
29,213
|
|
|
$
|
25,021
|
|
|
$
|
22,187
|
|
|
$
|
7,963
|
|
|
$
|
14,733
|
|
Equity in undistributed earnings (loss) of unconsolidated subsidiaries
|
(245
|
)
|
|
(262
|
)
|
|
(152
|
)
|
|
(222
|
)
|
|
(66
|
)
|
|||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
12,912
|
|
|
9,961
|
|
|
10,549
|
|
|
10,935
|
|
|
12,755
|
|
|||||
1/3 of net rent expense
(1)
|
831
|
|
|
883
|
|
|
945
|
|
|
1,023
|
|
|
1,091
|
|
|||||
Total fixed charges
|
13,743
|
|
|
10,844
|
|
|
11,494
|
|
|
11,958
|
|
|
13,846
|
|
|||||
Preferred dividend requirements
|
2,528
|
|
|
2,361
|
|
|
2,068
|
|
|
1,506
|
|
|
1,746
|
|
|||||
Fixed charges and preferred dividends
|
16,271
|
|
|
13,205
|
|
|
13,562
|
|
|
13,464
|
|
|
15,592
|
|
|||||
Earnings
|
$
|
42,711
|
|
|
$
|
35,603
|
|
|
$
|
33,529
|
|
|
$
|
19,699
|
|
|
$
|
28,513
|
|
Ratio of earnings to fixed charges
|
3.11
|
|
|
3.28
|
|
|
2.92
|
|
|
1.65
|
|
|
2.06
|
|
|||||
Ratio of earnings to fixed charges and preferred dividends
|
2.62
|
|
|
2.70
|
|
|
2.47
|
|
|
1.46
|
|
|
1.83
|
|
(1)
|
Represents an appropriate interest factor.
|
Name
|
Location
|
Jurisdiction
|
BA Continuum India Private Limited
|
Hyderabad, India
|
India
|
BA Credit Card Funding, LLC
|
Charlotte, NC
|
Delaware
|
BA Electronic Data Processing (Guangzhou) Ltd.
|
Guangzhou, PRC
|
People's Republic of China
|
BAC Canada Finance Company
|
Toronto, Ontario, Canada
|
Canada
|
BAC North America Holding Company
|
Charlotte, NC
|
Delaware
|
BAL Investment & Advisory, Inc.
|
San Francisco, CA
|
Delaware
|
BAMS Solutions, Inc.
|
Louisville, KY
|
Ohio
|
BANA Holding Corporation
|
Charlotte, NC
|
Delaware
|
Banc of America FSC Holdings, Inc.
|
San Francisco, CA
|
Delaware
|
Banc of America Leasing & Capital, LLC
|
San Francisco, CA
|
Delaware
|
Banc of America Preferred Funding Corporation
|
Charlotte, NC
|
Delaware
|
Banc of America Public Capital Corp
|
Charlotte, NC
|
Kansas
|
Banc of America Securities Asia Limited
|
Hong Kong, PRC
|
Hong Kong
|
Bank of America California, National Association
|
San Francisco, CA
|
United States of America
|
Bank of America Custodial Services (Ireland) Limited
|
Dublin, Ireland
|
Ireland
|
Bank of America Malaysia Berhad
|
Kuala Lumpur, Malaysia
|
Malaysia
|
Bank of America Merrill Lynch Banco Multiplo S.A.
|
Sao Paulo, Brazil
|
Brazil
|
Bank of America Merrill Lynch International Designated Activity Company
|
Dublin, Ireland
|
Ireland
|
Bank of America Merrill Lynch International Limited
|
London, U.K.
|
United Kingdom
|
Bank of America Mexico, S.A., Institucion de Banca Multiple
|
Mexico City, Mexico
|
Mexico
|
Bank of America Singapore Limited
|
Singapore, Singapore
|
Singapore
|
Bank of America, National Association
|
Charlotte, NC
|
United States of America
|
BankAmerica International Financial Corporation
|
San Francisco, CA
|
United States of America
|
Blue Ridge Investments, L.L.C.
|
Charlotte, NC
|
Delaware
|
BofA Canada Bank
|
Toronto, Ontario, Canada
|
Canada
|
BofA Finance LLC
|
Charlotte, NC
|
Delaware
|
BofAML EMEA Funding Limited
|
St. Helier, Jersey
|
Jersey
|
BofAML Jersey Holdings Limited
|
St. Helier, Jersey
|
Jersey
|
CM Investment Solutions Limited
|
London, U.K.
|
United Kingdom
|
Countrywide Financial Corporation
|
Calabasas, CA
|
Delaware
|
Countrywide Home Loans, Inc.
|
Calabasas, CA
|
New York
|
DSP Merrill Lynch Limited
|
Mumbai, India
|
India
|
Financial Data Services, LLC
|
Jacksonville, FL
|
Florida
|
Managed Account Advisors LLC
|
Jersey City, NJ
|
Delaware
|
Merrill Lynch (Asia Pacific) Limited
|
Hong Kong, PRC
|
Hong Kong
|
Merrill Lynch (Australia) Futures Limited
|
Sydney, Australia
|
Australia
|
Merrill Lynch (Singapore) Pte. Ltd.
|
Singapore, Singapore
|
Singapore
|
Merrill Lynch Argentina S.A.
|
Capital Federal, Argentina
|
Argentina
|
Merrill Lynch B.V.
|
Amsterdam, Netherlands
|
Netherlands
|
Merrill Lynch Bank and Trust Company (Cayman) Limited
|
George Town, Grand Cayman, Cayman Is.
|
Cayman Islands
|
Merrill Lynch Canada Inc.
|
Toronto, Ontario, Canada
|
Canada
|
Merrill Lynch Capital Markets Espana, S.A., S.V.
|
Madrid, Spain
|
Spain
|
Merrill Lynch Capital Services, Inc.
|
New York, NY
|
Delaware
|
Merrill Lynch Commodities Canada, ULC
|
Toronto, Ontario, Canada
|
Canada
|
Merrill Lynch Commodities, Inc.
|
Houston, TX
|
Delaware
|
Merrill Lynch Corredores de Bolsa SpA
|
Santiago, Chile
|
Chile
|
Merrill Lynch Credit Reinsurance Limited
|
Hamilton, Bermuda
|
Bermuda
|
Merrill Lynch Derivative Products AG
|
Zurich, Switzerland
|
Switzerland
|
Merrill Lynch Equities (Australia) Limited
|
Sydney, Australia
|
Australia
|
Merrill Lynch Equity S.a.r.l.
|
Luxembourg, Luxembourg
|
Luxembourg
|
Merrill Lynch Far East Limited
|
Hong Kong, PRC
|
Hong Kong
|
Merrill Lynch Financial Markets, Inc.
|
New York, NY
|
Delaware
|
Merrill Lynch Global Services Pte. Ltd.
|
Singapore, Singapore
|
Singapore
|
Merrill Lynch International
|
London, U.K.
|
United Kingdom
|
Merrill Lynch International & Co. C.V.
|
Curacao, Netherlands Antilles
|
Curacao
|
Merrill Lynch International, LLC
|
New York, NY
|
Delaware
|
Merrill Lynch Israel Ltd.
|
Tel Aviv, Israel
|
Israel
|
Merrill Lynch Japan Finance GK
|
Tokyo, Japan
|
Japan
|
Merrill Lynch Japan Securities Co., Ltd.
|
Tokyo, Japan
|
Japan
|
Merrill Lynch Luxembourg Finance S.A.
|
Luxembourg, Luxembourg
|
Luxembourg
|
Merrill Lynch Malaysian Advisory Sdn. Bhd.
|
Kuala Lumpur, Malaysia
|
Malaysia
|
Merrill Lynch Markets (Australia) Pty. Limited
|
Sydney, Australia
|
Australia
|
Merrill Lynch Markets Singapore Pte. Ltd.
|
Singapore, Singapore
|
Singapore
|
Merrill Lynch Mexico, S.A. de C.V., Casa de Bolsa
|
Mexico City, Mexico
|
Mexico
|
Merrill Lynch Professional Clearing Corp.
|
New York, NY
|
Delaware
|
Merrill Lynch Reinsurance Solutions LTD
|
Hamilton, Bermuda
|
Bermuda
|
Merrill Lynch S.A. Corretora de Titulos e Valores Mobiliarios
|
Sao Paulo, Brazil
|
Brazil
|
Name
|
Location
|
Jurisdiction
|
Merrill Lynch Securities (Taiwan) Ltd.
|
Taipei, Taiwan
|
Taiwan
|
Merrill Lynch Securities (Thailand) Limited
|
Bangkok, Thailand
|
Thailand
|
Merrill Lynch South Africa Proprietary Limited
|
Gauteng, South Africa
|
South Africa
|
Merrill Lynch Yatirim Bank A.S.
|
Istanbul, Turkey
|
Turkey
|
Merrill Lynch, Kingdom of Saudi Arabia Company
|
Kingdom of Saudi Arabia
|
Saudi Arabia
|
Merrill Lynch, Pierce, Fenner & Smith, Incorporated
|
New York, NY
|
Delaware
|
ML Equity Solutions Jersey Limited
|
St. Helier, Jersey
|
Jersey
|
ML UK Capital Holdings Limited
|
London, U.K.
|
United Kingdom
|
Mortgages 1 Limited
|
London, U.K.
|
United Kingdom
|
Mortgages plc
|
London, U.K.
|
United Kingdom
|
NB Holdings Corporation
|
Charlotte, NC
|
Delaware
|
OOO Merrill Lynch Securities
|
Moscow, Russia
|
Russia Federation
|
PT Merrill Lynch Sekuritas Indonesia
|
Jakarta, Indonesia
|
Indonesia
|
ReconTrust Company, National Association
|
Simi Valley, CA
|
United States of America
|
U.S. Trust Company of Delaware
|
Wilmington, DE
|
Delaware
|
Wave Lending Limited
|
London, U.K.
|
United Kingdom
|
Signature
|
|
Title
|
Date
|
|
|
|
|
/s/ Brian T. Moynihan
|
|
Chief Executive Officer,
Chairman and Director
(Principal Executive Officer)
|
February 22, 2018
|
Brian T. Moynihan
|
|
|
|
|
|
|
|
/s/ Paul M. Donofrio
|
|
Chief Financial Officer
(Principal Financial Officer)
|
February 22, 2018
|
Paul M. Donofrio
|
|
|
|
|
|
|
|
/s/ Rudolf A. Bless
|
|
Chief Accounting Officer
(Principal Accounting Officer)
|
February 22, 2018
|
Rudolf A. Bless
|
|
|
|
|
|
|
|
/s/ Sharon L. Allen
|
|
Director
|
February 19, 2018
|
Sharon L. Allen
|
|
|
|
|
|
|
|
/s/ Susan S. Bies
|
|
Director
|
February 22, 2018
|
Susan S. Bies
|
|
|
|
|
|
|
|
/s/ Jack O. Bovender, Jr.
|
|
Director
|
February 17, 2018
|
Jack O. Bovender, Jr.
|
|
|
|
|
|
|
|
/s/ Frank P
.
Bramble, Sr.
|
|
Director
|
February 22, 2018
|
Frank P
.
Bramble, Sr.
|
|
|
|
|
|
|
|
/s/ Pierre de Weck
|
|
Director
|
February 20, 2018
|
Pierre de Weck
|
|
|
|
|
|
|
|
/s/ Arnold W. Donald
|
|
Director
|
February 22, 2018
|
Arnold W. Donald
|
|
|
|
|
|
|
|
/s/ Linda P
.
Hudson
|
|
Director
|
February 16, 2018
|
Linda P
.
Hudson
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
Date
|
|
|
|
|
|
|
|
|
/s/ Monica C. Lozano
|
|
Director
|
February 17, 2018
|
Monica C. Lozano
|
|
|
|
|
|
|
|
/s/ Thomas J. May
|
|
Director
|
February 19, 2018
|
Thomas J. May
|
|
|
|
|
|
|
|
/s/ Lionel L. Nowell, III
|
|
Director
|
February 16, 2018
|
Lionel L. Nowell, III
|
|
|
|
|
|
|
|
/s/ Michael D. White
|
|
Director
|
February 21, 2018
|
Michael D. White
|
|
|
|
|
|
|
|
/s/ Thomas D. Woods
|
|
Director
|
February 14, 2018
|
Thomas D. Woods
|
|
|
|
|
|
|
|
/s/ R. David Yost
|
|
Director
|
February 19, 2018
|
R. David Yost
|
|
|
|
|
|
|
|
/s/ Maria T. Zuber
|
|
Director
|
February 15, 2018
|
Maria T. Zuber
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of Bank of America Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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Date:
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February 22, 2018
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/s/ Brian T. Moynihan
Brian T. Moynihan
Chief Executive Officer
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1.
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I have reviewed this Annual Report on Form 10-K of Bank of America Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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Date:
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February 22, 2018
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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 Annual Report on Form 10-K of the registrant for the year ended
December 31, 2017
(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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February 22, 2018
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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 Annual Report on Form 10-K of the registrant for the year ended
December 31, 2017
(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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February 22, 2018
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/s/ Paul M. Donofrio
Paul M. Donofrio
Chief Financial Officer
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