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, 2019

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)	Weighted-average Rate		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.