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

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Option (Tables)

Fair Value Option (Tables)

3 Months Ended

Mar. 31, 2022

The following tables provide information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at March 31, 2022 and December 31, 2021, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three months ended March 31, 2022 and 2021.



Fair Value Option Elections

	March 31, 2022						December 31, 2021
(Dollars in millions)	Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal		Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell	$	174,685	$	174,741	$	(56)	$	150,665	$	150,677	$	(12)
Loans reported as trading account assets (1)	11,372		18,802		(7,430)		10,864		18,895		(8,031)
Trading inventory – other	21,250		n/a		n/a		21,986		n/a		n/a
Consumer and commercial loans	7,111		7,233		(122)		7,819		7,888		(69)
Loans held-for-sale (1)	3,203		4,297		(1,094)		4,455		5,343		(888)

Other assets	582		n/a		n/a		544		n/a		n/a
Long-term deposits	446		469		(23)		408		401		7
Federal funds purchased and securities loaned or sold under agreements to repurchase	155,239		155,347		(108)		139,641		139,682		(41)
Short-term borrowings	3,487		3,910		(423)		4,279		4,127		152
Unfunded loan commitments	136		n/a		n/a		97		n/a		n/a

Long-term debt	30,459		33,211		(2,752)		29,708		30,903		(1,195)

(1)A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.

n/a = not applicable



Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option

	Three Months Ended March 31
	2022						2021
(Dollars in millions)	Market making and similar activities		Other Income		Total		Market making and similar activities		Other Income		Total


Loans reported as trading account assets	$	4	$	—	$	4	$	112	$	—	$	112
Trading inventory – other (1)	460		—		460		(730)		—		(730)
Consumer and commercial loans	(22)		(13)		(35)		71		19		90
Loans held-for-sale	—		(132)		(132)		—		(12)		(12)




Short-term borrowings	559		—		559		413		—		413


Long-term debt (2)	1,124		(11)		1,113		386		(16)		370
Other (3)	(5)		10		5		12		27		39
Total (4)	$	2,120	$	(146)	$	1,974	$	264	$	18	$	282

(1) The gains (losses) in market making and similar activities are primarily offset by (losses) gains on trading liabilities that hedge these assets.

(2) The net gains in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by losses on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K.

(3) Includes gains (losses) on federal funds sold and securities borrowed or purchased under agreements to resell, other assets, long-term deposits, federal funds purchased and securities loaned or sold under agreements to repurchase and unfunded loan commitments.

(4) Includes gains (losses) related to borrower-specific credit risk were $(69) million and $78 million for the three months ended March 31, 2022 and 2021.