Bank of America Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Long-term Debt

Long-term Debt

12 Months Ended

Dec. 31, 2018

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, 2018 and 2017, and the related contractual rates and maturity dates as of December 31, 2018.




	Weighted-average Rate					December 31
(Dollars in millions)	Weighted-average Rate		Interest Rates		Maturity Dates	2018		2017
Notes issued by Bank of America Corporation
Senior notes:
Fixed	3.39	%	0.39 - 8.40	%	2019 - 2049	$	120,548	$	119,548
Floating	2.09		0.06 - 7.26		2019 - 2044	25,574		21,048
Senior structured notes ⁽¹⁾						13,768		15,460
Subordinated notes:
Fixed	4.91		2.94 - 8.57		2019 - 2045	20,843		22,004
Floating	2.16		1.14 - 3.55		2019 - 2026	1,742		4,058
Junior subordinated notes ⁽²⁾:
Fixed	6.71		6.45 - 8.05		2027 - 2066	732		3,282
Floating	3.54		3.54		2056	1		553
Total notes issued by Bank of America Corporation						183,208		185,953
Notes issued by Bank of America, N.A.
Senior notes:
Fixed						—		4,686
Floating	2.96		2.90 - 2.96		2020 - 2041	1,770		1,033
Subordinated notes	6.00		6.00		2036	1,617		1,679
Advances from Federal Home Loan Banks:
Fixed	5.10		0.01 - 7.72		2019 - 2034	130		146
Floating	2.49		2.24 - 2.80		2019 - 2020	14,751		5,000
Securitizations and other BANA VIEs⁽³⁾						10,326		8,641
Other						442		433
Total notes issued by Bank of America, N.A.						29,036		21,618
Other debt
Structured liabilities						16,478		18,574
Nonbank VIEs⁽³⁾						618		1,232
Other						—		25
Total other debt						17,096		19,831
Total long-term debt						$	229,340	$	227,402


⁽¹⁾	Includes total loss-absorbing capacity compliant debt.


⁽²⁾	Includes amounts related to trust preferred securities. For additional information, see Trust Preferred Securities in this Note.


⁽³⁾	Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet.

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, 2018 and 2017, the amount of foreign currency-denominated debt translated into U.S. dollars included in total long-term debt was $48.6 billion and $51.8 billion. Foreign currency contracts may be used to convert certain foreign currency-denominated debt into U.S. dollars.

At December 31, 2018, long-term debt of consolidated VIEs in the table above included debt from credit card and all other VIEs of $10.3 billion and $623 million. Long-term debt of VIEs is collateralized by the assets of the VIEs. For additional 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 3.29 percent, 3.66 percent and 2.26 percent, respectively, at December 31, 2018, and 3.44 percent, 3.87 percent and 1.49 percent, respectively, at December 31, 2017. 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 $3.8 billion at December 31, 2018 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.

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. During 2017, the Corporation had total long-term debt maturities and redemptions in the aggregate of $48.8 billion consisting of $29.1 billion for Bank of America Corporation, $13.3 billion for Bank of America, N.A. and $6.4 billion of other debt.

The following table shows the carrying value for aggregate annual contractual maturities of long-term debt as of December 31, 2018. 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)	2019		2020		2021		2022		2023		Thereafter		Total
Bank of America Corporation
Senior notes	$	14,831	$	10,308	$	15,883	$	14,882	$	22,570	$	67,648	$	146,122
Senior structured notes	1,337		875		482		1,914		323		8,837		13,768
Subordinated notes	1,501		—		346		364		—		20,374		22,585
Junior subordinated notes	—		—		—		—		—		733		733
Total Bank of America Corporation	17,669		11,183		16,711		17,160		22,893		97,592		183,208
Bank of America, N.A.
Senior notes	—		1,750		—		—		—		20		1,770
Subordinated notes	—		—		—		—		—		1,617		1,617
Advances from Federal Home Loan Banks	11,762		3,010		2		3		1		103		14,881
Securitizations and other Bank VIEs ⁽¹⁾	3,200		3,100		4,022		—		—		4		10,326
Other	224		83		—		2		133		—		442
Total Bank of America, N.A.	15,186		7,943		4,024		5		134		1,744		29,036
Other debt
Structured liabilities	5,085		2,712		1,112		558		830		6,181		16,478
Nonbank VIEs ⁽¹⁾	35		—		—		—		23		560		618
Total other debt	5,120		2,712		1,112		558		853		6,741		17,096
Total long-term debt	$	37,975	$	21,838	$	21,847	$	17,723	$	23,880	$	106,077	$	229,340


⁽¹⁾	Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet.

Trust Preferred Securities

Trust preferred securities (Trust Securities) are primarily issued by trust companies (the Trusts) that are not consolidated. These Trust Securities are mandatorily redeemable preferred security obligations of the Trusts. The sole assets of the Trusts generally are junior subordinated deferrable interest notes of the Corporation or its subsidiaries (the Notes). The Trusts generally are 100 percent owned finance subsidiaries of the Corporation.

Periodic cash payments and payments upon liquidation or redemption with respect to Trust Securities are guaranteed by the Corporation or its subsidiaries to the extent of funds held by the Trusts (the Preferred Securities Guarantee). The Preferred Securities Guarantee, when taken together with the Corporation’s other obligations including its obligations under the Notes, generally will constitute a full and unconditional guarantee, on a subordinated basis, by the Corporation of payments due on the Trust Securities.

During 2018, the Corporation redeemed Trust Securities of 11 Trusts with a carrying value of $3.1 billion. At December 31, 2018, the Corporation had one remaining floating-rate junior subordinated note held in trust.