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

Quarterly report pursuant to Section 13 or 15(d)

Outstanding Loans and Leases (Tables)

Outstanding Loans and Leases (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Loans and Leases Outstanding

The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at March 31, 2020 and December 31, 2019.




	30-59 Days Past Due ⁽¹⁾			60-89 Days Past Due ⁽¹⁾			90 Days or More Past Due ⁽¹⁾			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due ⁽¹⁾			Loans Accounted for Under the Fair Value Option			Total Outstandings
(Dollars in millions)	March 31, 2020
Consumer real estate
Core portfolio
Residential mortgage	$	1,348		$	262		$	580		$	2,190		$	231,445					$	233,635
Home equity	129			59			215			403			34,470						34,873
Non-core portfolio
Residential mortgage	434			172			1,109			1,715			8,195						9,910
Home equity	34			15			67			116			4,578						4,694
Credit card and other consumer
Credit card	541			368			991			1,900			89,990						91,890
Direct/Indirect consumer ⁽²⁾	288			77			32			397			89,849						90,246
Other consumer	—			—			—			—			150						150
Total consumer	2,774			953			2,994			6,721			458,677						465,398
Consumer loans accounted for under the fair value option ⁽³⁾																$	556		556
Total consumer loans and leases	2,774			953			2,994			6,721			458,677			556			465,954
Commercial
U.S. commercial	715			378			504			1,597			356,907						358,504
Non-U.S. commercial	29			41			1			71			116,541						116,612
Commercial real estate ⁽⁴⁾ (4)	188			25			137			350			66,304						66,654
Commercial lease financing	119			25			68			212			18,968						19,180
U.S. small business commercial	123			51			108			282			15,139						15,421
Total commercial	1,174			520			818			2,512			573,859						576,371
Commercial loans accounted for under the fair value option ⁽³⁾																8,460			8,460
Total commercial loans and leases	1,174			520			818			2,512			573,859			8,460			584,831
Total loans and leases ⁽⁵⁾	$	3,948		$	1,473		$	3,812		$	9,233		$	1,032,536		$	9,016		$	1,050,785
Percentage of outstandings	0.38		%	0.14		%	0.36		%	0.88		%	98.26		%	0.86		%	100.00		%

⁽¹⁾

Consumer real estate loans 30-59 days past due includes fully-insured loans of $474 million and nonperforming loans of $138 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $174 million and nonperforming loans of $123 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $1.0 billion. Consumer real estate loans current or less than 30 days past due includes $878 million and direct/indirect consumer includes $43 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles.


⁽²⁾	Total outstandings primarily includes auto and specialty lending loans and leases of $50.0 billion, U.S. securities-based lending loans of $36.4 billion and non-U.S. consumer loans of $3.0 billion.


⁽³⁾	Consumer loans accounted for under the fair value option includes residential mortgage loans of $231 million and home equity loans of $325 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $5.1 billion and non-U.S. commercial loans of $3.4 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.


⁽⁴⁾	Total outstandings includes U.S. commercial real estate loans of $62.9 billion and non-U.S. commercial real estate loans of $3.8 billion.


⁽⁵⁾	Total outstandings includes loans and leases pledged as collateral of $32.7 billion. The Corporation also pledged $217.6 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.




	30-59 Days Past Due ⁽¹⁾			60-89 Days Past Due ⁽¹⁾			90 Days or More Past Due ⁽¹⁾			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due ⁽¹⁾			Loans Accounted for Under the Fair Value Option			Total Outstandings
(Dollars in millions)	December 31, 2019
Consumer real estate
Core portfolio
Residential mortgage	$	1,378		$	261		$	565		$	2,204		$	223,566					$	225,770
Home equity	135			70			198			403			34,823						35,226
Non-core portfolio
Residential mortgage	458			209			1,263			1,930			8,469						10,399
Home equity	34			16			72			122			4,860						4,982
Credit card and other consumer
Credit card	564			429			1,042			2,035			95,573						97,608
Direct/Indirect consumer ⁽²⁾	297			85			35			417			90,581						90,998
Other consumer	—			—			—			—			192						192
Total consumer	2,866			1,070			3,175			7,111			458,064						465,175
Consumer loans accounted for under the fair value option ⁽³⁾																$	594		594
Total consumer loans and leases	2,866			1,070			3,175			7,111			458,064			594			465,769
Commercial
U.S. commercial	788			279			371			1,438			305,610						307,048
Non-U.S. commercial	35			23			8			66			104,900						104,966
Commercial real estate ⁽⁴⁾	144			19			119			282			62,407						62,689
Commercial lease financing	100			56			39			195			19,685						19,880
U.S. small business commercial	119			56			107			282			15,051						15,333
Total commercial	1,186			433			644			2,263			507,653						509,916
Commercial loans accounted for under the fair value option ⁽³⁾																7,741			7,741
Total commercial loans and leases	1,186			433			644			2,263			507,653			7,741			517,657
Total loans and leases ⁽⁵⁾	$	4,052		$	1,503		$	3,819		$	9,374		$	965,717		$	8,335		$	983,426
Percentage of outstandings	0.41		%	0.15		%	0.39		%	0.95		%	98.20		%	0.85		%	100.00		%

⁽¹⁾

Consumer real estate loans 30-59 days past due includes fully-insured loans of $517 million and nonperforming loans of $139 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $206 million and nonperforming loans of $114 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $1.1 billion. Consumer real estate loans current or less than 30 days past due includes $856 million and direct/indirect consumer includes $45 million of nonperforming loans.


⁽²⁾	Total outstandings primarily includes auto and specialty lending loans and leases of $50.4 billion, U.S. securities-based lending loans of $36.7 billion and non-U.S. consumer loans of $2.8 billion.


⁽³⁾	Consumer loans accounted for under the fair value option includes residential mortgage loans of $257 million and home equity loans of $337 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.7 billion and non-U.S. commercial loans of $3.1 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.


⁽⁴⁾	Total outstandings includes U.S. commercial real estate loans of $59.0 billion and non-U.S. commercial real estate loans of $3.7 billion.

⁽⁵⁾

Total outstandings includes loans and leases pledged as collateral of $25.9 billion. The Corporation also pledged $168.2 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.

Financing Receivable Credit Quality Indicators

The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables and year of origination for term loan balances at March 31, 2020, including revolving loans that converted to term loans without an additional credit decision after origination or through a troubled debt restructuring.




Residential Mortgage – Credit Quality Indicators By Vintage

(Dollars in millions)	Total as of March 31, 2020		2020		2019		2018		2017		2016		Prior
Total Residential Mortgage
Refreshed LTV
Less than or equal to 90 percent	$	219,592	$	16,686	$	61,053	$	23,539	$	31,947	$	32,310	$	54,057
Greater than 90 percent but less than or equal to 100 percent	3,735		528		1,714		592		221		140		540
Greater than 100 percent	1,393		175		437		159		79		66		477
Fully-insured loans	18,825		564		2,789		591		456		2,660		11,765
Total Residential Mortgage	$	243,545	$	17,953	$	65,993	$	24,881	$	32,703	$	35,176	$	66,839

Total Residential Mortgage
Refreshed FICO score
Less than 620	$	3,288	$	59	$	279	$	252	$	247	$	267	$	2,184
Greater than or equal to 620 and less than 680	5,948		172		1,083		689		672		502		2,830
Greater than or equal to 680 and less than 740	28,591		1,638		7,262		3,426		3,728		3,311		9,226
Greater than or equal to 740	186,893		15,520		54,580		19,923		27,600		28,436		40,834
Fully-insured loans	18,825		564		2,789		591		456		2,660		11,765
Total Residential Mortgage	$	243,545	$	17,953	$	65,993	$	24,881	$	32,703	$	35,176	$	66,839




Home Equity - Credit Quality Indicators

	Total		Home Equity Loans and Reverse Mortgages ⁽¹⁾		Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	March 31, 2020
Total Home Equity
Refreshed LTV
Less than or equal to 90 percent	$	38,277	$	2,169	$	25,653	$	10,455
Greater than 90 percent but less than or equal to 100 percent	562		159		159		244
Greater than 100 percent	728		229		150		349
Total Home Equity	$	39,567	$	2,557	$	25,962	$	11,048

Total Home Equity
Refreshed FICO score
Less than 620	$	1,283	$	268	$	290	$	725
Greater than or equal to 620 and less than 680	2,214		308		692		1,214
Greater than or equal to 680 and less than 740	7,153		647		3,713		2,793
Greater than or equal to 740	28,917		1,334		21,267		6,316
Total Home Equity	$	39,567	$	2,557	$	25,962	$	11,048


⁽¹⁾	Includes reverse mortgages of $1.4 billion and home equity loans of $1.2 billion which are no longer originated.




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

			Direct/Indirect Term Loans by Origination Year														Credit Card
(Dollars in millions)	Total Direct/Indirect as of March 31, 2020		2020		2019		2018		2017		2016		Prior		Total Credit Card as of March 31, 2020		Revolving Loans		Revolving Loans Converted to Term Loans ⁽³⁾
Refreshed FICO score
Less than 620	$	1,369	$	26	$	231	$	255	$	404	$	288	$	165	$	5,017	$	4,766	$	251
Greater than or equal to 620 and less than 680	2,663		234		863		512		516		317		221		11,874		11,670		204
Greater than or equal to 680 and less than 740	8,362		946		3,046		1,639		1,308		758		665		34,088		33,919		169
Greater than or equal to 740	37,863		3,971		13,845		8,313		5,756		3,115		2,863		40,911		40,872		39
Other internal credit metrics ^{(1, 2)}	39,989		2,821		4,311		4,037		3,182		3,362		22,276		—		—		—
Total credit card and other consumer	$	90,246	$	7,998	$	22,296	$	14,756	$	11,166	$	7,840	$	26,190	$	91,890	$	91,227	$	663


⁽¹⁾	Other internal credit metrics may include delinquency status, geography or other factors.


⁽²⁾	Direct/indirect consumer includes $39.3 billion and $39.6 billion of securities-based lending which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at March 31, 2020 and December 31, 2019.


⁽³⁾	Represents troubled debt restructurings that were modified into term loans.




Commercial – Credit Quality Indicators By Vintage ^{(1, 2)}
			Term Loans
			Amortized Cost Basis by Origination Year
(Dollars in millions)	Total as of March 31, 2020		2020		2019		2018		2017		2016		Prior		Revolving Loans
U.S. Commercial
Risk ratings
Pass rated	$	346,042	$	17,797	$	48,441	$	24,019	$	18,227	$	10,092	$	24,445	$	203,021
Reservable criticized	12,462		578		999		872		635		377		978		8,023
Total U.S. Commercial	$	358,504	$	18,375	$	49,440	$	24,891	$	18,862	$	10,469	$	25,423	$	211,044

Non-U.S. Commercial
Risk ratings
Pass rated	$	115,233	$	6,026	$	18,591	$	12,245	$	7,510	$	1,810	$	7,269	$	61,782
Reservable criticized	1,379		46		216		86		98		74		6		853
Total Non-U.S. Commercial	$	116,612	$	6,072	$	18,807	$	12,331	$	7,608	$	1,884	$	7,275	$	62,635

Commercial Real Estate
Risk ratings
Pass rated	$	65,133	$	3,384	$	17,481	$	12,594	$	7,586	$	4,358	$	9,309	$	10,421
Reservable criticized	1,521		1		306		213		467		69		302		163
Total Commercial Real Estate	$	66,654	$	3,385	$	17,787	$	12,807	$	8,053	$	4,427	$	9,611	$	10,584

Commercial Lease Financing
Risk ratings
Pass rated	$	18,768	$	944	$	4,165	$	4,138	$	3,264	$	2,204	$	4,053	$	—
Reservable criticized	412		54		15		68		37		41		197		—
Total Commercial Lease Financing	$	19,180	$	998	$	4,180	$	4,206	$	3,301	$	2,245	$	4,250	$	—

U.S. Small Business Commercial ⁽³⁾
Risk ratings
Pass rated	$	7,280	$	359	$	1,412	$	1,056	$	902	$	655	$	2,653	$	243
Reservable criticized	604		1		16		86		121		93		279		8
Total U.S. Small Business Commercial	$	7,884	$	360	$	1,428	$	1,142	$	1,023	$	748	$	2,932	$	251
Total ^{(1, 2)}	$	568,834	$	29,190	$	91,642	$	55,377	$	38,847	$	19,773	$	49,491	$	284,514

⁽¹⁾ Excludes $8.5 billion and $7.7 billion of loans accounted for under the fair value option at March 31, 2020 and December 31, 2019.


⁽²⁾	Includes $41 million of loans that converted from revolving to term loans.

⁽³⁾

Excludes U.S. Small Business Card loans of $7.5 billion. Refreshed FICO scores for this portfolio are $319 million for less than 620; $749 million for greater than or equal to 620 and less than 680; $2.2 billion for greater than or equal to 680 and less than 740; and $4.3 billion greater than or equal to 740.

Schedule of Financing Receivables, Non Accrual Status

The table below presents the Corporation’s nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at March 31, 2020 and December 31, 2019. Nonperforming loans held-for-sale (LHFS) are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles. For more information on the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.




Credit Quality

	Nonperforming Loans and Leases						Accruing Past Due 90 Days or More ⁽¹⁾
(Dollars in millions)	March 31 2020			December 31 2019			March 31 2020			December 31 2019
Residential mortgage⁽²⁾	$	1,580		$	1,470		$	951		$	1,088
With negative allowance ⁽³⁾	482			—
Home equity ⁽²⁾	578			536			—			—
With negative allowance ⁽³⁾	123			—
Credit Card	n/a			n/a			991			1,042
Direct/indirect consumer	46			47			30			33
Total consumer	2,204			2,053			1,972			2,163
U.S. commercial	1,240			1,094			188			106
Non-U.S. commercial	90			43			1			8
Commercial real estate	408			280			39			19
Commercial lease financing	44			32			31			20
U.S. small business commercial	70			50			95			97
Total commercial	1,852			1,499			354			250
Total nonperforming loans	$	4,056		$	3,552		$	2,326		$	2,413
Percentage of outstanding loans and leases	0.39		%	0.36		%	0.22		%	0.25		%


⁽¹⁾	For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles.

⁽²⁾

Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At March 31, 2020 and December 31, 2019 residential mortgage includes $637 million and $740 million of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $314 million and 348 million of loans on which interest was still accruing.


⁽³⁾	At March 31, 2020, Residential Mortgage and Home Equity include negative allowance on nonperforming loans of $145 million and $107 million.

n/a = not applicable

Troubled Debt Restructurings on Financing Receivables

The table below presents the March 31, 2020 and 2019 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during the three months ended March 31, 2020 and 2019. The following Consumer Real Estate portfolio segment tables include loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period.




Consumer Real Estate – TDRs Entered into During The Three Months Ended March 31, 2020 and 2019 ⁽¹⁾

	Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate ⁽²⁾
(Dollars in millions)	March 31, 2020
Residential mortgage	$	122	$	103	4.04	%	3.94	%
Home equity	23		20		4.69		4.68
Total	$	145	$	123	4.15		4.06

	March 31, 2019
Residential mortgage	$	135	$	112	4.19	%	4.27	%
Home equity	63		48		5.23		4.86
Total	$	198	$	160	4.52		4.46


⁽¹⁾	For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.


⁽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.

The table below presents the March 31, 2020 and 2019 carrying value for consumer real estate loans that were modified in a TDR during the three months ended March 31, 2020 and 2019, by type of modification.




Consumer Real Estate – Modification Programs ⁽¹⁾

	TDRs Entered into During the Three Months Ended March 31
(Dollars in millions)	2020		2019
Modifications under government programs	$	1	$	3
Modifications under proprietary programs	28		26
Loans discharged in Chapter 7 bankruptcy ⁽²⁾	15		28
Trial modifications	79		103
Total modifications	$	123	$	160


⁽¹⁾	For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.


⁽²⁾	Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.

The table below presents the carrying value of consumer real estate loans that entered into payment default during the three months ended March 31, 2020 and 2019 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate TDRs is recognized when a borrower has missed three monthly payments (not necessarily consecutively) since modification.




Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months ⁽¹⁾

	Three Months Ended March 31
(Dollars in millions)	2020		2019
Modifications under government programs	$	6	$	7
Modifications under proprietary programs	14		29
Loans discharged in Chapter 7 bankruptcy ⁽²⁾	7		9
Trial modifications ⁽³⁾	18		16
Total modifications	$	45	$	61


⁽¹⁾	For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.


⁽²⁾	Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.

⁽³⁾

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

The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the March 31, 2020 and 2019 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during the three months ended March 31, 2020 and 2019.




Credit Card and Other Consumer – TDRs Entered into During the Three Months Ended March 31, 2020 and 2019 ⁽¹⁾

	Unpaid Principal Balance		Carrying Value ⁽²⁾		Pre-Modification Interest Rate		Post-Modification Interest Rate
(Dollars in millions)	March 31, 2020
Credit card	$	94	$	101	18.52	%	5.30	%
Direct/Indirect consumer	17		9		5.34		5.34
Total	$	111	$	110	17.40		5.30

	March 31, 2019
Credit card	$	98	$	105	19.86	%	5.21	%
Direct/Indirect consumer	18		10		4.96		4.96
Total	$	116	$	115	18.56		5.19


⁽¹⁾	For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.

⁽²⁾

Includes accrued interest and fees.

The table below presents the March 31, 2020 and 2019 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three months ended March 31, 2020 and 2019, by program type.




Credit Card and Other Consumer – TDRs by Program Type ⁽¹⁾

	TDRs Entered into During the Three Months Ended March 31
(Dollars in millions)	2020		2019
Internal programs	$	74	$	75
External programs	27		30
Other	9		10
Total	$	110	$	115

⁽¹⁾

Includes accrued interest and fees.

Changes in the Allowance for Credit Losses

The table below summarizes the changes in the allowance for credit losses by portfolio segment for the three months ended March 31, 2020 and 2019.




	Consumer Real Estate			Credit Card and Other Consumer			Commercial			Total
(Dollars in millions)	Three Months Ended March 31, 2020
Allowance for loan and lease losses, January 1	$	440		$	7,430		$	4,488		$	12,358
Loans and leases charged off	(35		)	(1,121		)	(282		)	(1,438		)
Recoveries of loans and leases previously charged off	47			237			32			316
Net charge-offs	12			(884		)	(250		)	(1,122		)
Provision for loan and lease losses	351			1,712			2,462			4,525
Other ⁽¹⁾	5			—			—			5
Allowance for loan and lease losses, March 31	808			8,258			6,700			15,766
Reserve for unfunded lending commitments, January 1	119			—			1,004			1,123
Provision for unfunded lending commitments	30			—			206			236
Other ⁽¹⁾	—			—			1			1
Reserve for unfunded lending commitments, March 31	149			—			1,211			1,360
Allowance for credit losses, March 31	$	957		$	8,258		$	7,911		$	17,126

	Three Months Ended March 31, 2019
Allowance for loan and lease losses, January 1	$	928		$	3,874		$	4,799		$	9,601
Loans and leases charged off	(103		)	(1,057		)	(177		)	(1,337		)
Recoveries of loans and leases previously charged off	108			217			21			346
Net charge-offs	5			(840		)	(156		)	(991		)
Provision for loan and lease losses	(70		)	900			178			1,008
Other ⁽¹⁾	(41		)	—			—			(41		)
Allowance for loan and lease losses, March 31	822			3,934			4,821			9,577
Reserve for unfunded lending commitments, January 1	—			—			797			797
Provision for unfunded lending commitments	—			—			5			5
Reserve for unfunded lending commitments, March 31	—			—			802			802
Allowance for credit losses, March 31	$	822		$	3,934		$	5,623		$	10,379


⁽¹⁾	Primarily represents write-offs of purchased credit-impaired loans in 2019, and the net impact of portfolio sales, transfers to held-for-sale and transfers to foreclosed properties.