Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash

Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash

3 Months Ended

Mar. 31, 2020

Federal Funds Sold, Securities Borrowed or Purchased Under Agreements to Resell and Short-term Borrowings [Abstract]

Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash

The table below presents federal funds sold or purchased, securities financing agreements (which include securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase) and short-term borrowings. The Corporation elects to account for certain securities financing agreements and short-term borrowings under the fair value option. For more information on the fair value option, see Note 15 – Fair Value Option.




	Amount		Rate		Amount		Rate
	Three Months Ended March 31
(Dollars in millions)	2020				2019
Federal funds sold and securities borrowed or purchased under agreements to resell
Average during period	$	278,794	1.18	%	$	274,308	1.77	%
Maximum month-end balance during period	301,969		n/a		280,562		n/a
Federal funds purchased and securities loaned or sold under agreements to repurchase
Average during period	$	199,539	1.60	%	$	200,154	2.44	%
Maximum month-end balance during period	206,493		n/a		200,486		n/a
Short-term borrowings
Average during period	26,430		1.62		15,432		2.95
Maximum month-end balance during period	30,118		n/a		14,848		n/a

n/a = not applicable

Offsetting of Securities Financing Agreements

The Corporation enters into securities financing agreements to accommodate customers (also referred to as “matched-book transactions”), obtain securities to cover short positions and finance inventory positions. For more information on the securities financing agreements and the offsetting of securities financing transactions, see Note 11 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.

The Securities Financing Agreements table presents securities financing agreements included on the Consolidated Balance Sheet in federal funds sold and securities borrowed or purchased under agreements to resell, and in federal funds purchased and securities loaned or sold under agreements to repurchase at March 31, 2020 and December 31, 2019. Balances are presented on a gross basis, prior to the application of counterparty netting. Gross assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements. For more information on the offsetting of derivatives, see Note 3 – Derivatives.




Securities Financing Agreements

	Gross Assets/Liabilities ⁽¹⁾		Amounts Offset			Net Balance Sheet Amount		Financial Instruments ⁽²⁾			Net Assets/Liabilities
(Dollars in millions)	March 31, 2020
Securities borrowed or purchased under agreements to resell ⁽³⁾	$	461,366	$	(159,397	)	$	301,969	$	(266,713	)	$	35,256
Securities loaned or sold under agreements to repurchase	$	329,440	$	(159,397	)	$	170,043	$	(147,064	)	$	22,979
Other ⁽⁴⁾	6,618		—			6,618		(6,618		)	—
Total	$	336,058	$	(159,397	)	$	176,661	$	(153,682	)	$	22,979

	December 31, 2019
Securities borrowed or purchased under agreements to resell ⁽³⁾	$	434,257	$	(159,660	)	$	274,597	$	(244,486	)	$	30,111
Securities loaned or sold under agreements to repurchase	$	324,769	$	(159,660	)	$	165,109	$	(141,482	)	$	23,627
Other ⁽⁴⁾	15,346		—			15,346		(15,346		)	—
Total	$	340,115	$	(159,660	)	$	180,455	$	(156,828	)	$	23,627


⁽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 $13.1 billion and $12.9 billion reported in loans and leases on the Consolidated Balance Sheet at March 31, 2020 and December 31, 2019.

⁽⁴⁾

Balance is reported in accrued expenses and other liabilities on the Consolidated Balance Sheet and relates to transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. In these transactions, the Corporation recognizes an asset at fair value, representing the securities received, and a liability, representing the obligation to return those securities.

Repurchase Agreements and Securities Loaned Transactions Accounted for as Secured Borrowings

The following tables present securities sold under agreements to repurchase and securities loaned by remaining contractual term to maturity and class of collateral pledged. Included in “Other” are transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. Certain agreements contain a right

to substitute collateral and/or terminate the agreement prior to maturity at the option of the Corporation or the counterparty. Such agreements are included in the table below based on the remaining contractual term to maturity. For more information on collateral requirements, see Note 11 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.




Remaining Contractual Maturity

	Overnight and Continuous		30 Days or Less		After 30 Days Through 90 Days		Greater than 90 Days ⁽¹⁾		Total
(Dollars in millions)	March 31, 2020
Securities sold under agreements to repurchase	$	142,680	$	104,485	$	29,017	$	33,127	$	309,309
Securities loaned	16,658		523		779		2,171		20,131
Other	6,618		—		—		—		6,618
Total	$	165,956	$	105,008	$	29,796	$	35,298	$	336,058

	December 31, 2019
Securities sold under agreements to repurchase	$	129,455	$	122,685	$	25,322	$	21,922	$	299,384
Securities loaned	18,766		3,329		1,241		2,049		25,385
Other	15,346		—		—		—		15,346
Total	$	163,567	$	126,014	$	26,563	$	23,971	$	340,115


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




Class of Collateral Pledged

	Securities Sold Under Agreements to Repurchase		Securities Loaned		Other		Total
(Dollars in millions)	March 31, 2020
U.S. government and agency securities	$	174,900	$	—	$	—	$	174,900
Corporate securities, trading loans and other	10,801		2,394		241		13,436
Equity securities	11,252		15,872		6,324		33,448
Non-U.S. sovereign debt	107,565		1,865		53		109,483
Mortgage trading loans and ABS	4,791		—		—		4,791
Total	$	309,309	$	20,131	$	6,618	$	336,058

	December 31, 2019
U.S. government and agency securities	$	173,533	$	1	$	—	$	173,534
Corporate securities, trading loans and other	10,467		2,014		258		12,739
Equity securities	14,933		20,026		15,024		49,983
Non-U.S. sovereign debt	96,576		3,344		64		99,984
Mortgage trading loans and ABS	3,875		—		—		3,875
Total	$	299,384	$	25,385	$	15,346	$	340,115

Restricted Cash

At March 31, 2020 and December 31, 2019, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of $7.4 billion and $24.4 billion, predominantly related to cash held on deposit with the Federal Reserve Bank and non-U.S. central banks to meet reserve requirements and cash segregated in compliance with securities regulations.