Annual report pursuant to Section 13 and 15(d)

Long-term Debt

v3.19.3.a.u2
Long-term Debt
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt
Long-term debt consists of borrowings having an original maturity of one year or more. The table below presents the balance of long-term debt at December 31, 2019 and 2018, and the related contractual rates and maturity dates as of December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average Rate
 
 
 
 
 
 
December 31
(Dollars in millions)
 
Interest Rates
 
Maturity Dates
 
2019
 
2018
Notes issued by Bank of America Corporation (1)
 
 
 
 
 
 
 
 
 

 
 

Senior notes:
 
 
 
 
 
 
 
 
 

 
 

Fixed
3.30
%
 
0.25 - 8.05

%
 
2020 - 2050
 
$
140,265

 
$
120,548

Floating
1.81
 
 
0.25 - 6.68

 
 
2020 - 2044
 
19,552

 
25,574

Senior structured notes
 
 
 
 
 
 
 
 
16,941

 
13,815

Subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
Fixed
4.89
 
 
2.94 - 8.57

 
 
2021 - 2045
 
21,632

 
20,843

Floating
2.74
 
 
2.56 - 2.89

 
 
2022 - 2026
 
782

 
1,742

Junior subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
Fixed
6.71
 
 
6.45 - 8.05

 
 
2027 - 2066
 
736

 
732

Floating (2)
2.71
 
 
2.71

 
 
2056
 
1

 
1

Total notes issued by Bank of America Corporation
 
 
 
 
 
 
 
 
199,909

 
183,255

Notes issued by Bank of America, N.A.
 
 
 
 
 
 
 
 
 

 
 

Senior notes:
 
 
 
 
 
 
 
 
 

 
 

Fixed
3.34
 
 
3.34

 
 
2023
 
508

 

Floating
2.18
 
 
1.99 - 2.51

 
 
2020 - 2041
 
6,519

 
1,770

Subordinated notes
6.00
 
 
6.00

 
 
2036
 
1,744

 
1,617

Advances from Federal Home Loan Banks:
 
 
 
 
 
 
 
 
 
 
 
Fixed
4.98
 
 
0.01 - 7.72

 
 
2020 - 2034
 
112

 
130

Floating
1.79
 
 
1.77 - 1.84

 
 
2020
 
2,500

 
14,751

Securitizations and other BANA VIEs (3)
 
 
 
 
 
 
 
 
8,373

 
10,326

Other
 
 
 
 
 
 
 
 
402

 
442

Total notes issued by Bank of America, N.A.
 
 
 
 
 
 
 
 
20,158

 
29,036

Other debt
 
 
 
 
 
 
 
 
 

 
 

Structured liabilities
 
 
 
 
 
 
 
 
20,442

 
16,483

Nonbank VIEs (3)
 
 
 
 
 
 
 
 
347

 
618

Total other debt
 
 
 
 
 
 
 
 
20,789

 
17,101

Total long-term debt
 
 
 
 
 
 
 
 
$
240,856


$
229,392

(1) 
Includes total loss-absorbing capacity compliant debt.
(2) 
Includes amounts related to trust preferred securities. For more information, see Trust Preferred Securities in this Note.
(3) 
Represents liabilities of consolidated VIEs included in total long-term debt on the Consolidated Balance Sheet.
During 2019, the Corporation issued $52.5 billion of long-term debt consisting of $29.3 billion of notes issued by Bank of America Corporation, $10.9 billion of notes issued by Bank of America, N.A. and $12.3 billion of other debt, substantially all of which was structured liabilities. During 2018, the Corporation issued $64.4 billion of long-term debt consisting of $30.7 billion of notes issued by Bank of America Corporation, $18.7 billion of notes issued by Bank of America, N.A. and $15.0 billion of other debt, substantially all of which was structured liabilities.
During 2019, the Corporation had total long-term debt maturities and redemptions in the aggregate of $50.6 billion consisting of $21.1 billion for Bank of America Corporation, $19.9 billion for Bank of America, N.A. and $9.6 billion of other debt. During 2018, the Corporation had total long-term debt maturities and redemptions in the aggregate of $53.3 billion consisting of $29.8 billion for Bank of America Corporation, $11.2 billion for Bank of America, N.A. and $12.3 billion of other debt.
Bank of America Corporation and Bank of America, N.A. maintain various U.S. and non-U.S. debt programs to offer both senior and subordinated notes. The notes may be denominated in U.S. dollars or foreign currencies. At December 31, 2019 and 2018, the amount of foreign currency-denominated debt translated into U.S. dollars included in total long-term debt was $49.6 billion and $48.6 billion. Foreign currency contracts may be used to convert certain foreign currency-denominated debt into U.S. dollars.
At December 31, 2019, long-term debt of consolidated VIEs in the table above included debt from credit card, residential mortgage, home equity, other VIEs and ABS of $8.4 billion, $217 million, $64 million, $46 million and $19 million, respectively. Long-term debt of VIEs is collateralized by the assets of the VIEs. For more information, see Note 7 – Securitizations and Other Variable Interest Entities.
The weighted-average effective interest rates for total long-term debt (excluding senior structured notes), total fixed-rate debt and total floating-rate debt were 3.26 percent, 3.55 percent and 1.92 percent, respectively, at December 31, 2019, and 3.29 percent, 3.66 percent and 2.26 percent, respectively, at December 31, 2018. The Corporation’s ALM activities maintain an overall interest rate risk management strategy that incorporates the use of interest rate contracts to manage fluctuations in earnings that are caused by interest rate volatility. The Corporation’s goal is to manage interest rate sensitivity so that movements in interest rates do not significantly adversely affect earnings and capital. The weighted-average rates are the contractual interest rates on the debt and do not reflect the impacts of derivative transactions.
Debt outstanding of $5.7 billion at December 31, 2019 was issued by BofA Finance LLC, a 100 percent owned finance
subsidiary of Bank of America Corporation, the parent company, and is fully and unconditionally guaranteed by the parent company.
The table below shows the carrying value for aggregate annual contractual maturities of long-term debt as of December 31, 2019. Included in the table are certain structured notes issued by the Corporation that contain provisions whereby the borrowings are redeemable at the option of the holder (put options) at specified dates prior to maturity. Other structured notes have coupon or repayment terms linked to the performance of debt or equity securities, indices, currencies or commodities, and the maturity may be accelerated based on the value of a referenced index or security. In both cases, the Corporation or a subsidiary may be required to settle the obligation for cash or other securities prior to the contractual maturity date. These borrowings are reflected in the table as maturing at their contractual maturity date.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt by Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
 
Total
Bank of America Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes
$
9,312

 
$
15,978

 
$
14,875

 
$
23,045

 
$
17,236

 
$
79,371

 
$
159,817

Senior structured notes
822

 
453

 
2,232

 
288

 
547

 
12,599

 
16,941

Subordinated notes

 
360

 
386

 

 
3,213

 
18,455

 
22,414

Junior subordinated notes (1)

 

 

 

 

 
737

 
737

Total Bank of America Corporation
10,134


16,791


17,493


23,333


20,996


111,162


199,909

Bank of America, N.A.
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes
3,000

 
3,499

 

 
509

 

 
19

 
7,027

Subordinated notes

 

 

 

 

 
1,744

 
1,744

Advances from Federal Home Loan Banks
2,509

 
2

 
3

 
1

 

 
97

 
2,612

Securitizations and other Bank VIEs (2)
3,099

 
4,080

 
1,185

 
9

 

 

 
8,373

Other
134

 
55

 

 
130

 

 
83

 
402

Total Bank of America, N.A.
8,742


7,636


1,188


649




1,943


20,158

Other debt
 
 
 
 
 
 
 
 
 
 
 
 
 
Structured liabilities
5,275

 
1,884

 
1,057

 
1,372

 
745

 
10,109

 
20,442

Nonbank VIEs (2)

 

 

 
1

 

 
346

 
347

Total other debt
5,275


1,884


1,057


1,373


745


10,455


20,789

Total long-term debt
$
24,151


$
26,311


$
19,738


$
25,355


$
21,741


$
123,560


$
240,856

(1) 
Includes amounts related to trust preferred securities. For more information, see Trust Preferred Securities in this Note.
(2)  
Represents liabilities of consolidated VIEs included in total long-term debt on the Consolidated Balance Sheet.
Trust Preferred Securities
At December 31, 2019, trust preferred securities (Trust Securities) with a carrying value of $1 million, issued by BAC Capital Trust XV (the Trust), a 100 percent owned, non-consolidated finance subsidiary of the Corporation, were issued and outstanding. The Trust Securities are mandatorily redeemable preferred security obligations of the Trust. The sole asset of the Trust is a junior subordinated deferrable interest note of the Corporation (the Note).
Periodic cash payments and payments upon liquidation or redemption with respect to Trust Securities are guaranteed by the Corporation to the extent of funds held by the Trust (the Preferred Securities Guarantee). The Preferred Securities Guarantee, when taken together with the Corporation’s other obligations including its obligations under the Note, generally will constitute a full and unconditional guarantee, on a subordinated basis, by the Corporation of payments due on the Trust Securities.