October 14, 2020 - THE SUPPLEMENTAL INFORMATION - 8-K: Current report filing

Supplemental Information

Third Quarter 2020

Current-period information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America Corporation (the Corporation) does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in the Corporation’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at the Corporation’s website (www.bankofamerica.com). The Corporation’s future financial performance is subject to risks and uncertainties as described in its SEC filings.


Bank of America Corporation and Subsidiaries
Table of Contents			Page


Consolidated Financial Highlights			2
Consolidated Statement of Income			3
Consolidated Statement of Comprehensive Income			3
Net Interest Income and Noninterest Income			4
Consolidated Balance Sheet			5
Capital Management			6
Capital Composition under Basel 3			7
Quarterly Average Balances and Interest Rates			8

Debt Securities			9
Supplemental Financial Data			10
Quarterly Results by Business Segment and All Other			11
Year-to-Date Results by Business Segment and All Other			13
Consumer Banking
Total Segment Results			14
Key Indicators			15
Business Results			16
Global Wealth & Investment Management
Total Segment Results			18
Key Indicators			19
Global Banking
Total Segment Results			20
Key Indicators			21

Global Markets
Total Segment Results			22
Key Indicators			23
All Other
Total Results			24
Outstanding Loans and Leases			25
Quarterly Average Loans and Leases by Business Segment and All Other			26
Commercial Credit Exposure by Industry			27
Top 20 Non-U.S. Countries Exposure			28
Nonperforming Loans, Leases and Foreclosed Properties			29
Nonperforming Loans, Leases and Foreclosed Properties Activity			30
Quarterly Net Charge-offs and Net Charge-off Ratios			31
Year-to-Date Net Charge-offs and Net Charge-off Ratios			32
Allocation of the Allowance for Credit Losses by Product Type			33

Exhibit A: Non-GAAP Reconciliations			34







Current Expected Credit Losses Accounting Standard
Effective January 1, 2020, the Corporation adopted the new current expected credit losses (CECL) accounting standard that measures the allowance based on management’s best estimate of lifetime expected credit losses inherent in the Corporation’s lending activities. Prior periods presented reflect measurement of the allowance based on management’s estimate of probable incurred credit losses.

Key Performance Indicators
The Corporation presents certain key financial and nonfinancial performance indicators that management uses when assessing consolidated and/or segment results. The Corporation believes this information is useful because it provides management with information about underlying operational performance and trends. Key performance indicators are presented in Consolidated Financial Highlights on page 2 and on the Key Indicators pages for each segment.

Business Segment Operations
The Corporation reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis. Additionally, the results for the total Corporation as presented on pages 11 - 13 are reported on an FTE basis.


Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(In millions, except per share information)
	Nine Months Ended September 30									Third Quarter 2020			Second Quarter 2020			First Quarter 2020			Fourth Quarter 2019			Third Quarter 2019
	2020			2019
Income statement
Net interest income	$	33,107		$	36,751		$	10,129		$	10,848		$	12,130		$	12,140		$	12,187
Noninterest income	32,322			32,144			10,207			11,478			10,637			10,209			10,620
Total revenue, net of interest expense	65,429			68,895			20,336			22,326			22,767			22,349			22,807
Provision for credit losses	11,267			2,649			1,389			5,117			4,761			941			779
Noninterest expense	41,286			41,661			14,401			13,410			13,475			13,239			15,169
Income before income taxes	12,876			24,585			4,546			3,799			4,531			8,169			6,859
Pretax, pre-provision income ⁽¹⁾	24,143			27,234			5,935			8,916			9,292			9,110			7,638
Income tax expense	452			4,149			(335)			266			521			1,175			1,082
Net income	12,424			20,436			4,881			3,533			4,010			6,994			5,777
Preferred stock dividends	1,159			1,186			441			249			469			246			505
Net income applicable to common shareholders	11,265			19,250			4,440			3,284			3,541			6,748			5,272
Diluted earnings per common share	1.28			2.01			0.51			0.37			0.40			0.74			0.56
Average diluted common shares issued and outstanding	8,800.5			9,565.7			8,777.5			8,768.1			8,862.7			9,079.5			9,353.0
Dividends paid per common share	$	0.54		$	0.48		$	0.18		$	0.18		$	0.18		$	0.18		$	0.18

Performance ratios
Return on average assets	0.63		%	1.14		%	0.71		%	0.53		%	0.65		%	1.13		%	0.95		%
Return on average common shareholders’ equity	6.20			10.49			7.24			5.44			5.91			11.00			8.48
Return on average shareholders’ equity	6.24			10.19			7.26			5.34			6.10			10.40			8.48
Return on average tangible common shareholders’ equity ⁽²⁾	8.71			14.67			10.16			7.63			8.32			15.43			11.84
Return on average tangible shareholders’ equity ⁽²⁾	8.46			13.78			9.84			7.23			8.29			14.09			11.43
Efficiency ratio	63.10			60.47			70.81			60.06			59.19			59.24			66.51


At period end
Book value per share of common stock	$	28.33		$	26.96		$	28.33		$	27.96		$	27.84		$	27.32		$	26.96
Tangible book value per share of common stock ⁽²⁾	20.23			19.26			20.23			19.90			19.79			19.41			19.26
Market capitalization	208,656			264,842			208,656			205,772			184,181			311,209			264,842
Number of financial centers - U.S.	4,309			4,302			4,309			4,298			4,297			4,300			4,302
Number of branded ATMs - U.S.	16,962			16,626			16,962			16,862			16,855			16,788			16,626
Headcount	211,225			208,561			211,225			212,796			208,931			208,131			208,561

⁽¹⁾Pretax, pre-provision income (PTPI) is a non-GAAP financial measure calculated by adjusting pretax income to add back provision for credit losses. Management believes that PTPI is a useful financial measure because it enables an assessment of the Company's ability to generate earnings to cover credit losses through a credit cycle.

⁽²⁾Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on page 34.)

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			2


Bank of America Corporation and Subsidiaries
Consolidated Statement of Income
(In millions, except per share information)
	Nine Months Ended September 30						Third Quarter 2020		Second Quarter 2020		First Quarter 2020		Fourth Quarter 2019		Third Quarter 2019
	2020		2019
Net interest income
Interest income	$	40,124	$	54,310	$	11,486	$	12,540	$	16,098	$	16,926	$	17,916
Interest expense	7,017		17,559		1,357		1,692		3,968		4,786		5,729
Net interest income	33,107		36,751		10,129		10,848		12,130		12,140		12,187

Noninterest income
Fees and commissions	25,490		24,495		8,777		8,392		8,321		8,520		8,467
Market making and similar activities	6,983		7,267		1,689		2,487		2,807		1,767		2,118
Other income (loss)	(151)		382		(259)		599		(491)		(78)		35
Total noninterest income	32,322		32,144		10,207		11,478		10,637		10,209		10,620
Total revenue, net of interest expense	65,429		68,895		20,336		22,326		22,767		22,349		22,807

Provision for credit losses	11,267		2,649		1,389		5,117		4,761		941		779

Noninterest expense
Compensation and benefits	24,535		24,000		8,200		7,994		8,341		7,977		7,779
Occupancy and equipment	5,302		4,908		1,798		1,802		1,702		1,680		1,663
Information processing and communications	3,807		3,484		1,333		1,265		1,209		1,162		1,163
Product delivery and transaction related	2,518		2,067		930		811		777		695		696
Marketing	1,238		1,410		308		492		438		524		440
Professional fees	1,206		1,155		450		381		375		442		386
Other general operating	2,680		4,637		1,382		665		633		759		3,042
Total noninterest expense	41,286		41,661		14,401		13,410		13,475		13,239		15,169
Income before income taxes	12,876		24,585		4,546		3,799		4,531		8,169		6,859
Income tax expense	452		4,149		(335)		266		521		1,175		1,082
Net income	$	12,424	$	20,436	$	4,881	$	3,533	$	4,010	$	6,994	$	5,777
Preferred stock dividends	1,159		1,186		441		249		469		246		505
Net income applicable to common shareholders	$	11,265	$	19,250	$	4,440	$	3,284	$	3,541	$	6,748	$	5,272

Per common share information
Earnings	$	1.29	$	2.02	$	0.51	$	0.38	$	0.40	$	0.75	$	0.57
Diluted earnings	1.28		2.01		0.51		0.37		0.40		0.74		0.56
Average common shares issued and outstanding	8,762.6		9,516.2		8,732.9		8,739.9		8,815.6		9,017.1		9,303.6
Average diluted common shares issued and outstanding	8,800.5		9,565.7		8,777.5		8,768.1		8,862.7		9,079.5		9,353.0


Consolidated Statement of Comprehensive Income
(Dollars in millions)
	Nine Months Ended September 30						Third Quarter 2020		Second Quarter 2020		First Quarter 2020		Fourth Quarter 2019		Third Quarter 2019
	2020		2019
Net income	$	12,424	$	20,436	$	4,881	$	3,533	$	4,010	$	6,994	$	5,777
Other comprehensive income (loss), net-of-tax:
Net change in debt securities	4,794		6,231		101		(102)		4,795		(356)		1,538
Net change in debit valuation adjustments	(5)		(272)		(58)		(1,293)		1,346		(691)		229
Net change in derivatives	808		651		76		315		417		(35)		118
Employee benefit plan adjustments	144		83		44		57		43		53		26
Net change in foreign currency translation adjustments	(86)		(99)		21		(19)		(88)		13		(51)
Other comprehensive income (loss)	5,655		6,594		184		(1,042)		6,513		(1,016)		1,860
Comprehensive income	$	18,079	$	27,030	$	5,065	$	2,491	$	10,523	$	5,978	$	7,637

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			3


Bank of America Corporation and Subsidiaries
Net Interest Income and Noninterest Income
(Dollars in millions)
	Nine Months Ended September 30						Third Quarter 2020		Second Quarter 2020		First Quarter 2020		Fourth Quarter 2019		Third Quarter 2019
	2020		2019
Net interest income
Interest income
Loans and leases	$	26,426	$	32,721	$	7,894	$	8,569	$	9,963	$	10,365	$	10,894
Debt securities	7,413		8,965		2,130		2,440		2,843		2,841		2,829
Federal funds sold and securities borrowed or purchased under agreements to resell	900		3,746		55		26		819		1,097		1,242
Trading account assets	3,203		3,962		948		1,008		1,247		1,234		1,319
Other interest income	2,182		4,916		459		497		1,226		1,389		1,632
Total interest income	40,124		54,310		11,486		12,540		16,098		16,926		17,916

Interest expense
Deposits	1,784		5,640		227		373		1,184		1,548		1,880
Short-term borrowings	1,024		5,725		(24)		(72)		1,120		1,483		1,876
Trading account liabilities	764		967		212		223		329		282		303
Long-term debt	3,445		5,227		942		1,168		1,335		1,473		1,670
Total interest expense	7,017		17,559		1,357		1,692		3,968		4,786		5,729
Net interest income	$	33,107	$	36,751	$	10,129	$	10,848	$	12,130	$	12,140	$	12,187

Noninterest income
Fees and commissions
Card income
Interchange fees ⁽¹⁾	$	2,794	$	2,827	$	1,172	$	830	$	792	$	1,007	$	963
Other card income	1,295		1,459		396		419		480		504		502
Total card income	4,089		4,286		1,568		1,249		1,272		1,511		1,465
Service charges
Deposit-related fees	4,441		4,908		1,515		1,299		1,627		1,680		1,690
Lending-related fees	841		809		302		263		276		277		285
Total service charges	5,282		5,717		1,817		1,562		1,903		1,957		1,975
Investment and brokerage services
Asset management fees	7,905		7,591		2,740		2,483		2,682		2,650		2,597
Brokerage fees	2,898		2,733		883		939		1,076		928		897
Total investment and brokerage services	10,803		10,324		3,623		3,422		3,758		3,578		3,494
Investment banking fees
Underwriting income	3,610		2,198		1,239		1,523		848		800		740
Syndication fees	634		887		133		230		271		297		341
Financial advisory services	1,072		1,083		397		406		269		377		452
Total investment banking fees	5,316		4,168		1,769		2,159		1,388		1,474		1,533
Total fees and commissions	25,490		24,495		8,777		8,392		8,321		8,520		8,467
Market making and similar activities	6,983		7,267		1,689		2,487		2,807		1,767		2,118
Other income (loss)	(151)		382		(259)		599		(491)		(78)		35
Total noninterest income	$	32,322	$	32,144	$	10,207	$	11,478	$	10,637	$	10,209	$	10,620

⁽¹⁾Gross interchange fees were $6.9 billion and $7.4 billion and are presented net of $4.1 billion and $4.6 billion of expenses for rewards and partner payments for the nine months ended September 30, 2020 and 2019, respectively. Gross interchange fees were $2.5 billion, $2.0 billion, $2.3 billion, $2.6 billion and $2.6 billion and are presented net of $1.4 billion, $1.2 billion, $1.5 billion, $1.6 billion and $1.6 billion of expenses for rewards and partner payments for the third, second and first quarters of 2020 and the fourth and third quarters of 2019, respectively.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			4


Bank of America Corporation and Subsidiaries
Consolidated Balance Sheet
(Dollars in millions)
				September 30 2020				June 30 2020				September 30 2019
Assets
Cash and due from banks				$	32,922			$	33,915			$	26,939
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks				268,084				255,431				130,155
Cash and cash equivalents				301,006				289,346				157,094
Time deposits placed and other short-term investments				5,088				6,071				7,557
Federal funds sold and securities borrowed or purchased under agreements to resell				326,745				451,179				271,595
Trading account assets				255,500				226,465				263,684
Derivative assets				44,297				45,184				45,123
Debt securities:
Carried at fair value				245,997				202,912				254,342
Held-to-maturity, at cost				338,400				268,949				190,252
Total debt securities				584,397				471,861				444,594
Loans and leases				955,172				998,944				972,910
Allowance for loan and lease losses				(19,596)				(19,389)				(9,433)
Loans and leases, net of allowance				935,576				979,555				963,477
Premises and equipment, net				10,902				10,790				10,493
Goodwill				68,951				68,951				68,951
Loans held-for-sale				4,434				7,381				9,811
Customer and other receivables				61,684				55,392				52,560
Other assets				139,872				129,513				131,391
Total assets				$	2,738,452			$	2,741,688			$	2,426,330

Liabilities
Deposits in U.S. offices:
Noninterest-bearing				$	616,925			$	580,667			$	394,379
Interest-bearing				996,804				1,048,012				917,401
Deposits in non-U.S. offices:
Noninterest-bearing				15,158				15,082				13,138
Interest-bearing				73,993				74,905				67,918
Total deposits				1,702,880				1,718,666				1,392,836
Federal funds purchased and securities loaned or sold under agreements to repurchase				190,769				179,024				202,067
Trading account liabilities				84,681				80,912				78,642
Derivative liabilities				41,728				42,511				38,025
Short-term borrowings				17,861				17,998				30,682
Accrued expenses and other liabilities				175,960				175,302				172,286
Long-term debt				255,723				261,638				243,405
Total liabilities				2,469,602				2,476,051				2,157,943
Shareholders’ equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,887,440, 3,887,440 and 3,895,685 shares				23,427				23,427				23,606
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 8,661,522,562, 8,664,081,625 and 9,079,264,535 shares				85,954				85,794				99,215
Retained earnings				160,447				157,578				151,183
Accumulated other comprehensive income (loss)				(978)				(1,162)				(5,617)
Total shareholders’ equity				268,850				265,637				268,387
Total liabilities and shareholders’ equity				$	2,738,452			$	2,741,688			$	2,426,330

	Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
	Trading account assets	$	4,492			$	4,390			$	5,758
	Loans and leases	24,094				25,532				39,387
	Allowance for loan and lease losses	(1,812)				(1,869)				(835)
	Loans and leases, net of allowance	22,282				23,663				38,552

	All other assets	191				563				555
	Total assets of consolidated variable interest entities	$	26,965			$	28,616			$	44,865

	Liabilities of consolidated variable interest entities included in total liabilities above
	Short-term borrowings	$	739			$	739			$	2,274
	Long-term debt	5,742				6,861				8,560
	All other liabilities	19				22				26
	Total liabilities of consolidated variable interest entities	$	6,500			$	7,622			$	10,860

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			5


Bank of America Corporation and Subsidiaries
Capital Management
(Dollars in millions)
	September 30 2020			June 30 2020			September 30 2019
Risk-based capital metrics ⁽¹⁾:
Standardized Approach
Common equity tier 1 capital	$	173,213		$	171,020		$	169,203
Tier 1 capital	196,637			194,441			192,029
Total capital	235,480			233,764			225,430
Risk-weighted assets	1,459,187			1,475,133			1,483,756
Common equity tier 1 capital ratio	11.9		%	11.6		%	11.4		%
Tier 1 capital ratio	13.5			13.2			12.9
Total capital ratio	16.1			15.8			15.2

Advanced Approaches
Common equity tier 1 capital	$	173,213		$	171,020		$	169,203
Tier 1 capital	196,637			194,441			192,029
Total capital	224,570			223,225			217,247
Risk-weighted assets	1,363,467			1,503,565			1,440,088
Common equity tier 1 capital ratio	12.7		%	11.4		%	11.7		%
Tier 1 capital ratio	14.4			12.9			13.3
Total capital ratio	16.5			14.8			15.1

Leverage-based metrics ⁽¹⁾
Adjusted average assets	$	2,666,645		$	2,632,225		$	2,335,840
Tier 1 leverage ratio	7.4		%	7.4		%	8.2		%

Supplementary leverage exposure	$	2,866,655		$	2,756,799		$	2,897,885
Supplementary leverage ratio	6.9		%	7.1		%	6.6		%

Tangible equity ratio ⁽²⁾	7.4			7.3			8.4
Tangible common equity ratio⁽²⁾	6.6			6.5			7.4

⁽¹⁾Regulatory capital ratios at September 30, 2020 are preliminary. We report regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy. Supplementary leverage exposure at September 30, 2020 and June 30, 2020 excludes U.S. Treasury Securities and deposits at Federal Reserve Banks.

⁽²⁾Tangible equity ratio equals period-end tangible shareholders’ equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders’ equity divided by period-end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on page 34.)

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			6


Bank of America Corporation and Subsidiaries
Capital Composition under Basel 3
(Dollars in millions)
	September 30 2020		June 30 2020		September 30 2019
Total common shareholders' equity	$	245,423	$	242,210	$	244,781
CECL transitional amount ⁽¹⁾	4,411		4,302		—
Goodwill, net of related deferred tax liabilities	(68,569)		(68,570)		(68,571)
Deferred tax assets arising from net operating loss and tax credit carryforwards	(5,853)		(5,263)		(5,210)
Intangibles, other than mortgage servicing rights and goodwill, net of related deferred tax liabilities	(1,656)		(1,221)		(1,335)
Defined benefit pension plan net assets	(1,056)		(1,025)		(986)
Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax	1,245		1,108		521
Other	(732)		(521)		3
Common equity tier 1 capital	173,213		171,020		169,203
Qualifying preferred stock, net of issuance cost	23,426		23,426		23,400
Other	(2)		(5)		(574)
Total tier 1 capital	196,637		194,441		192,029
Tier 2 capital instruments	22,605		23,424		23,160
Eligible credit reserves included in tier 2 capital	16,243		5,378		2,059
Other	(5)		(18)		(1)
Total capital ⁽²⁾	$	235,480	$	223,225	$	217,247

⁽¹⁾The CECL transitional amount includes the impact of the Corporation's adoption of the new CECL accounting standard on January 1, 2020 and 25 percent of the increase in reserves from January 1, 2020 through September 30, 2020.

⁽²⁾The Corporation reports Total capital under both the Standardized and Advanced approaches. The approach that yields the lower Total capital ratio is used to assess capital adequacy, which is the Standardized approach at September 30, 2020 and the Advanced approaches at June 30, 2020 and September 30, 2019. Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			7


Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
	Third Quarter 2020										Second Quarter 2020								Third Quarter 2019
	Average Balance		Interest Income/ Expense ⁽¹⁾		Yield/ Rate		Average Balance		Interest Income/ Expense ⁽¹⁾		Yield/ Rate		Average Balance		Interest Income/ Expense ⁽¹⁾		Yield/ Rate
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks	$	245,682	$	10	0.02	%	$	314,661	$	33	0.04	%	$	122,033	$	453	1.47	%
Time deposits placed and other short-term investments	7,686		(4)		(0.25)		8,644		5		0.25		9,863		47		1.87
Federal funds sold and securities borrowed or purchased under agreements to resell	384,221		55		0.06		312,404		26		0.03		269,129		1,242		1.83
Trading account assets	146,972		960		2.60		143,370		1,021		2.86		157,818		1,338		3.37
Debt securities	533,261		2,147		1.63		476,060		2,462		2.10		447,126		2,856		2.56
Loans and leases ⁽²⁾:
Residential mortgage	237,414		1,811		3.05		241,486		1,880		3.11		224,084		1,937		3.46
Home equity	37,897		284		2.99		39,308		308		3.15		43,616		552		5.03
Credit card	81,309		2,086		10.20		86,191		2,140		9.99		94,370		2,581		10.85

Direct/Indirect and other consumer	89,559		593		2.63		88,962		623		2.81		90,813		824		3.59

Total consumer	446,179		4,774		4.26		455,947		4,951		4.36		452,883		5,894		5.18
U.S. commercial	343,533		2,099		2.43		374,965		2,462		2.64		324,436		3,279		4.01
Non-U.S. commercial	102,938		531		2.05		116,040		642		2.22		105,003		905		3.42
Commercial real estate	63,262		393		2.47		65,515		430		2.64		62,185		687		4.38
Commercial lease financing	18,106		138		3.04		18,920		128		2.71		20,226		182		3.58
Total commercial	527,839		3,161		2.38		575,440		3,662		2.56		511,850		5,053		3.92
Total loans and leases	974,018		7,935		3.25		1,031,387		8,613		3.35		964,733		10,947		4.51
Other earning assets	83,086		497		2.39		72,256		508		2.82		68,018		1,181		6.90
Total earning assets	2,374,926		11,600		1.95		2,358,782		12,668		2.16		2,038,720		18,064		3.52
Cash and due from banks	32,714						31,256						25,588
Other assets, less allowance for loan and lease losses	332,044						314,148						347,915
Total assets	$	2,739,684					$	2,704,186					$	2,412,223
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	61,228	$	1	0.01	%	$	56,931	$	2	0.01	%	$	51,277	$	1	0.01	%
Demand and money market deposit accounts	842,987		93		0.04		850,274		152		0.07		741,602		1,172		0.63
Consumer CDs and IRAs	45,921		84		0.73		50,882		123		0.97		49,811		136		1.08
Negotiable CDs, public funds and other deposits	57,499		31		0.21		81,532		56		0.29		63,936		354		2.19
Total U.S. interest-bearing deposits	1,007,635		209		0.08		1,039,619		333		0.13		906,626		1,663		0.73
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	1,108		—		0.08		1,807		—		0.04		1,721		5		1.13
Governments and official institutions	177		—		—		183		—		—		188		—		0.02
Time, savings and other	74,200		18		0.10		74,158		40		0.21		70,234		212		1.20
Total non-U.S. interest-bearing deposits	75,485		18		0.09		76,148		40		0.21		72,143		217		1.19
Total interest-bearing deposits	1,083,120		227		0.08		1,115,767		373		0.13		978,769		1,880		0.76
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities	286,582		(24)		(0.03)		295,465		(72)		(0.10)		280,123		1,876		2.66
Trading account liabilities	39,689		212		2.13		40,717		223		2.20		45,750		303		2.63
Long-term debt	224,254		942		1.67		221,167		1,168		2.12		202,620		1,670		3.28
Total interest-bearing liabilities	1,633,645		1,357		0.33		1,673,116		1,692		0.41		1,507,262		5,729		1.51
Noninterest-bearing sources:
Noninterest-bearing deposits	612,368						542,430						396,283
Other liabilities ⁽³⁾	226,348						222,324						238,248
Shareholders’ equity	267,323						266,316						270,430
Total liabilities and shareholders’ equity	$	2,739,684					$	2,704,186					$	2,412,223
Net interest spread					1.62	%					1.75	%					2.01	%
Impact of noninterest-bearing sources					0.10						0.12						0.40
Net interest income/yield on earning assets ⁽⁴⁾			$	10,243	1.72	%			$	10,976	1.87	%			$	12,335	2.41	%

⁽¹⁾Includes the impact of interest rate risk management contracts.

⁽²⁾Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.

⁽³⁾Includes $34.2 billion, $35.5 billion and $38.1 billion of structured notes and liabilities for the third and second quarters of 2020 and the third quarter of 2019, respectively.

⁽⁴⁾Net interest income includes FTE adjustments of $114 million, $128 million and $148 million for the third and second quarters of 2020 and the third quarter of 2019, respectively.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			8


Bank of America Corporation and Subsidiaries
Debt Securities
(Dollars in millions)
	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale debt securities
Mortgage-backed securities:
Agency	$	67,566	$	2,349	$	(51)	$	69,864
Agency-collateralized mortgage obligations	5,663		189		(15)		5,837
Commercial	15,190		1,017		(1)		16,206
Non-agency residential	1,167		146		(30)		1,283
Total mortgage-backed securities	89,586		3,701		(97)		93,190
U.S. Treasury and agency securities	100,508		2,377		(7)		102,878
Non-U.S. securities	16,333		34		(13)		16,354
Other taxable securities, substantially all asset-backed securities	3,628		58		(10)		3,676
Total taxable securities	210,055		6,170		(127)		216,098
Tax-exempt securities	17,299		340		(45)		17,594
Total available-for-sale debt securities	227,354		6,510		(172)		233,692
Other debt securities carried at fair value ⁽¹⁾	11,982		399		(76)		12,305
Total debt securities carried at fair value	239,336		6,909		(248)		245,997
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	338,418		9,727		(228)		347,917
Total debt securities	$	577,754	$	16,636	$	(476)	$	593,914


	June 30, 2020
Available-for-sale debt securities
Mortgage-backed securities:
Agency	$	76,539	$	2,501	$	(41)	$	78,999
Agency-collateralized mortgage obligations	6,113		198		(16)		6,295
Commercial	14,926		996		(1)		15,921
Non-agency residential	903		127		(39)		991
Total mortgage-backed securities	98,481		3,822		(97)		102,206
U.S. Treasury and agency securities	50,304		2,368		(8)		52,664
Non-U.S. securities	13,334		12		(14)		13,332
Other taxable securities, substantially all asset-backed securities	4,244		48		(40)		4,252
Total taxable securities	166,363		6,250		(159)		172,454
Tax-exempt securities	17,791		279		(92)		17,978
Total available-for-sale debt securities	184,154		6,529		(251)		190,432
Other debt securities carried at fair value ⁽¹⁾	12,266		295		(81)		12,480
Total debt securities carried at fair value	196,420		6,824		(332)		202,912
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	268,967		10,937		(32)		279,872
Total debt securities	$	465,387	$	17,761	$	(364)	$	482,784

⁽¹⁾Primarily includes non-U.S. securities used to satisfy certain international regulatory requirements.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			9


Bank of America Corporation and Subsidiaries
Supplemental Financial Data
(Dollars in millions)

	Nine Months Ended September 30									Third Quarter 2020			Second Quarter 2020			First Quarter 2020			Fourth Quarter 2019			Third Quarter 2019
	2020			2019






FTE basis data ⁽¹⁾
Net interest income	$	33,493		$	37,201		$	10,243		$	10,976		$	12,274		$	12,285		$	12,335
Total revenue, net of interest expense	65,815			69,345			20,450			22,454			22,911			22,494			22,955
Net interest yield	1.96		%	2.45		%	1.72		%	1.87		%	2.33		%	2.35		%	2.41		%
Efficiency ratio	62.73			60.08			70.42			59.72			58.82			58.85			66.08

⁽¹⁾FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. The Corporation believes that this presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices. Net interest income includes FTE adjustments of $386 million and $450 million for the nine months ended September 30, 2020 and 2019, $114 million, $128 million and $144 million for the third, second and first quarters of 2020, and $145 million and $148 million for the fourth and third quarters of 2019, respectively.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			10


Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment and All Other
(Dollars in millions)
	Third Quarter 2020
	Total Corporation		Consumer Banking		GWIM		Global Banking		Global Markets		All Other
Net interest income	$	10,243	$	5,890	$	1,237	$	2,028	$	1,108	$	(20)
Noninterest income
Fees and commissions:
Card income	1,568		1,221		21		156		169		1
Service charges	1,817		837		18		845		108		9
Investment and brokerage services	3,623		68		3,105		15		440		(5)
Investment banking fees	1,769		—		93		970		739		(33)
Total fees and commissions	8,777		2,126		3,237		1,986		1,456		(28)
Market making and similar activities	1,689		—		13		16		1,726		(66)
Other income (loss)	(259)		23		59		487		(7)		(821)
Total noninterest income (loss)	10,207		2,149		3,309		2,489		3,175		(915)
Total revenue, net of interest expense	20,450		8,039		4,546		4,517		4,283		(935)
Provision for credit losses	1,389		479		24		883		21		(18)
Noninterest expense	14,401		4,842		3,530		2,365		3,104		560
Income (loss) before income taxes	4,660		2,718		992		1,269		1,158		(1,477)
Income tax expense (benefit)	(221)		666		243		343		301		(1,774)
Net income	$	4,881	$	2,052	$	749	$	926	$	857	$	297

Average
Total loans and leases	$	974,018	$	318,751	$	185,587	$	373,118	$	72,319	$	24,243
Total assets ⁽¹⁾	2,739,684		936,112		333,794		557,889		680,983		230,906
Total deposits	1,695,488		860,999		291,845		471,288		56,475		14,881
Quarter end
Total loans and leases	$	955,172	$	312,447	$	187,211	$	356,919	$	75,475	$	23,120
Total assets ⁽¹⁾	2,738,452		947,513		337,576		553,776		676,242		223,345
Total deposits	1,702,880		872,022		295,893		465,399		56,727		12,839

	Second Quarter 2020
	Total Corporation		Consumer Banking		GWIM		Global Banking		Global Markets		All Other
Net interest income	$	10,976	$	5,991	$	1,378	$	2,363	$	1,297	$	(53)
Noninterest income
Fees and commissions:
Card income	1,249		1,053		18		68		111		(1)
Service charges	1,562		706		14		738		95		9
Investment and brokerage services	3,422		66		2,854		23		480		(1)
Investment banking fees	2,159		—		84		1,181		939		(45)
Total fees and commissions	8,392		1,825		2,970		2,010		1,625		(38)
Market making and similar activities	2,487		1		18		(15)		2,360		123
Other income (loss)	599		35		59		733		68		(296)
Total noninterest income (loss)	11,478		1,861		3,047		2,728		4,053		(211)
Total revenue, net of interest expense	22,454		7,852		4,425		5,091		5,350		(264)
Provision for credit losses	5,117		3,024		136		1,873		105		(21)
Noninterest expense	13,410		4,734		3,463		2,224		2,682		307
Income (loss) before income taxes	3,927		94		826		994		2,563		(550)
Income tax expense (benefit)	394		23		202		268		666		(765)
Net income	$	3,533	$	71	$	624	$	726	$	1,897	$	215

Average
Total loans and leases	$	1,031,387	$	321,558	$	182,150	$	423,625	$	74,131	$	29,923
Total assets ⁽¹⁾	2,704,186		885,568		327,594		578,106		663,072		249,846
Total deposits	1,658,197		810,700		287,109		493,918		45,083		21,387
Quarter end
Total loans and leases	$	998,944	$	325,105	$	184,293	$	390,108	$	74,342	$	25,096
Total assets ⁽¹⁾	2,741,688		929,193		334,190		586,078		652,068		240,159
Total deposits	1,718,666		854,017		291,740		500,918		52,842		19,149

⁽¹⁾Total assets include asset allocations to match liabilities (i.e., deposits).

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			11


Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment and All Other (continued)
(Dollars in millions)
	Third Quarter 2019
	Total Corporation		Consumer Banking		GWIM		Global Banking		Global Markets		All Other
Net interest income	$	12,335	$	7,031	$	1,609	$	2,617	$	1,016	$	62
Noninterest income
Fees and commissions:
Card income	1,465		1,289		25		133		18		—
Service charges	1,975		1,098		16		763		92		6
Investment and brokerage services	3,494		74		3,001		9		419		(9)
Investment banking fees	1,533		—		89		902		585		(43)
Total fees and commissions	8,467		2,461		3,131		1,807		1,114		(46)
Market making and similar activities	2,118		1		27		85		1,580		425
Other income (loss)	35		231		137		703		153		(1,189)
Total noninterest income (loss)	10,620		2,693		3,295		2,595		2,847		(810)
Total revenue, net of interest expense	22,955		9,724		4,904		5,212		3,863		(748)
Provision for credit losses	779		917		37		120		—		(295)
Noninterest expense	15,169		4,399		3,414		2,219		2,677		2,460
Income (loss) before income taxes	7,007		4,408		1,453		2,873		1,186		(2,913)
Income tax expense (benefit)	1,230		1,080		356		776		338		(1,320)
Net income (loss)	$	5,777	$	3,328	$	1,097	$	2,097	$	848	$	(1,593)

Average
Total loans and leases	$	964,733	$	303,832	$	170,414	$	377,109	$	71,589	$	41,789
Total assets ⁽¹⁾	2,412,223		781,739		289,460		441,186		687,398		212,440
Total deposits	1,375,052		709,339		254,460		360,457		30,155		20,641
Quarter end
Total loans and leases	$	972,910	$	307,925	$	172,677	$	377,658	$	74,979	$	39,671
Total assets ⁽¹⁾	2,426,330		788,814		288,332		452,642		689,029		207,513
Total deposits	1,392,836		715,778		252,478		371,887		30,885		21,808

⁽¹⁾Total assets include asset allocations to match liabilities (i.e., deposits).

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			12


Bank of America Corporation and Subsidiaries
Year-to-Date Results by Business Segment and All Other
(Dollars in millions)
	Nine Months Ended September 30, 2020
	Total Corporation		Consumer Banking		GWIM		Global Banking		Global Markets		All Other
Net interest income	$	33,493	$	18,743	$	4,186	$	7,003	$	3,558	$	3
Noninterest income
Fees and commissions:
Card income	4,089		3,384		56		347		301		1
Service charges	5,282		2,538		49		2,379		290		26
Investment and brokerage services	10,803		204		9,081		45		1,487		(14)
Investment banking fees	5,316		—		292		2,912		2,280		(168)
Total fees and commissions	25,490		6,126		9,478		5,683		4,358		(155)
Market making and similar activities	6,983		2		52		88		7,059		(218)
Other income (loss)	(151)		149		191		1,434		(116)		(1,809)
Total noninterest income (loss)	32,322		6,277		9,721		7,205		11,301		(2,182)
Total revenue, net of interest expense	65,815		25,020		13,907		14,208		14,859		(2,179)
Provision for credit losses	11,267		5,761		349		4,849		233		75
Noninterest expense	41,286		14,071		10,593		6,910		8,598		1,114
Income (loss) before income taxes	13,262		5,188		2,965		2,449		6,028		(3,368)
Income tax expense (benefit)	838		1,271		726		661		1,567		(3,387)
Net income	$	12,424	$	3,917	$	2,239	$	1,788	$	4,461	$	19

Average
Total loans and leases	$	998,473	$	319,084	$	182,138	$	394,331	$	72,702	$	30,218
Total assets ⁽¹⁾	2,646,607		877,866		321,565		534,061		685,685		227,430
Total deposits	1,598,031		803,002		280,828		449,273		45,002		19,926
Period end
Total loans and leases	$	955,172	$	312,447	$	187,211	$	356,919	$	75,475	$	23,120
Total assets ⁽¹⁾	2,738,452		947,513		337,576		553,776		676,242		223,345
Total deposits	1,702,880		872,022		295,893		465,399		56,727		12,839

	Nine Months Ended September 30, 2019
	Total Corporation		Consumer Banking		GWIM		Global Banking		Global Markets		All Other
Net interest income	$	37,201	$	21,253	$	4,917	$	8,116	$	2,780	$	135
Noninterest income
Fees and commissions:
Card income	4,286		3,754		73		398		61		—
Service charges	5,717		3,163		50		2,225		261		18
Investment and brokerage services	10,324		223		8,805		26		1,296		(26)
Investment banking fees	4,168		—		296		2,328		1,707		(163)
Total fees and commissions	24,495		7,140		9,224		4,977		3,325		(171)
Market making and similar activities	7,267		5		90		190		5,623		1,359
Other income (loss)	382		675		394		2,059		461		(3,207)
Total noninterest income (loss)	32,144		7,820		9,708		7,226		9,409		(2,019)
Total revenue, net of interest expense	69,345		29,073		14,625		15,342		12,189		(1,884)
Provision for credit losses	2,649		2,838		63		356		(18)		(590)
Noninterest expense	41,661		13,178		10,302		6,697		8,109		3,375
Income (loss) before income taxes	25,035		13,057		4,260		8,289		4,098		(4,669)
Income tax expense (benefit)	4,599		3,199		1,044		2,238		1,168		(3,050)
Net income (loss)	$	20,436	$	9,858	$	3,216	$	6,051	$	2,930	$	(1,619)

Average
Total loans and leases	$	953,169	$	297,538	$	167,069	$	373,275	$	70,757	$	44,530
Total assets ⁽¹⁾	2,390,943		776,884		292,114		437,570		679,040		205,335
Total deposits	1,370,178		704,522		256,720		357,413		30,878		20,645
Period end
Total loans and leases	$	972,910	$	307,925	$	172,677	$	377,658	$	74,979	$	39,671
Total assets ⁽¹⁾	2,426,330		788,814		288,332		452,642		689,029		207,513
Total deposits	1,392,836		715,778		252,478		371,887		30,885		21,808

⁽¹⁾Total assets include asset allocations to match liabilities (i.e., deposits).

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			13


Bank of America Corporation and Subsidiaries
Consumer Banking Segment Results
(Dollars in millions)
	Nine Months Ended September 30									Third Quarter 2020			Second Quarter 2020			First Quarter 2020			Fourth Quarter 2019			Third Quarter 2019
	2020			2019
Net interest income	$	18,743		$	21,253		$	5,890		$	5,991		$	6,862		$	6,905		$	7,031
Noninterest income:
Card income	3,384			3,754			1,221			1,053			1,110			1,330			1,289
Service charges	2,538			3,163			837			706			995			1,056			1,098

All other income	355			903			91			102			162			223			306
Total noninterest income	6,277			7,820			2,149			1,861			2,267			2,609			2,693
Total revenue, net of interest expense	25,020			29,073			8,039			7,852			9,129			9,514			9,724

Provision for credit losses	5,761			2,838			479			3,024			2,258			934			917

Noninterest expense	14,071			13,178			4,842			4,734			4,495			4,468			4,399
Income before income taxes	5,188			13,057			2,718			94			2,376			4,112			4,408
Income tax expense	1,271			3,199			666			23			582			1,007			1,080
Net income	$	3,917		$	9,858		$	2,052		$	71		$	1,794		$	3,105		$	3,328

Net interest yield	2.98		%	3.87		%	2.61		%	2.85		%	3.57		%	3.65		%	3.77		%
Return on average allocated capital ⁽¹⁾	14			36			21			1			19			33			36
Efficiency ratio	56.24			45.33			60.23			60.30			49.23			46.96			45.23

Balance Sheet
Average
Total loans and leases	$	319,084		$	297,538		$	318,751		$	321,558		$	316,946		$	311,008		$	303,832
Total earning assets⁽²⁾	838,792			735,014			896,867			845,236			773,635			750,064			739,802
Total assets ⁽²⁾	877,866			776,884			936,112			885,568			811,277			792,190			781,739
Total deposits	803,002			704,522			860,999			810,700			736,669			719,668			709,339
Allocated capital ⁽¹⁾	38,500			37,000			38,500			38,500			38,500			37,000			37,000

Period end
Total loans and leases	$	312,447		$	307,925		$	312,447		$	325,105		$	317,535		$	317,409		$	307,925
Total earning assets⁽²⁾	906,994			747,279			906,994			890,244			800,143			760,174			747,279
Total assets ⁽²⁾	947,513			788,814			947,513			929,193			837,522			804,093			788,814
Total deposits	872,022			715,778			872,022			854,017			762,387			730,745			715,778

⁽¹⁾Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.

⁽²⁾Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			14


Bank of America Corporation and Subsidiaries
Consumer Banking Key Indicators
(Dollars in millions)
	Nine Months Ended September 30									Third Quarter 2020			Second Quarter 2020			First Quarter 2020			Fourth Quarter 2019			Third Quarter 2019
	2020			2019
Average deposit balances
Checking	$	440,507		$	371,924		$	479,963		$	446,445		$	394,678		$	384,256		$	376,821
Savings	54,945			50,994			59,817			55,607			49,358			49,048			50,013
MMS	262,927			241,141			277,896			263,703			247,018			242,147			239,941
CDs and IRAs	41,715			37,639			40,163			42,256			42,743			41,378			39,727
Other	2,908			2,824			3,160			2,689			2,872			2,839			2,837
Total average deposit balances	$	803,002		$	704,522		$	860,999		$	810,700		$	736,669		$	719,668		$	709,339

Deposit spreads (excludes noninterest costs)
Checking	2.14		%	2.32		%	2.07		%	2.14		%	2.22		%	2.26		%	2.31		%
Savings	2.40			2.53			2.35			2.39			2.45			2.47			2.53
MMS	1.81			2.47			1.59			1.68			2.19			2.25			2.46
CDs and IRAs	0.98			2.16			0.72			0.93			1.28			1.57			1.88
Other	1.21			2.60			0.60			1.28			1.88			2.11			2.42
Total deposit spreads	1.98			2.38			1.87			1.94			2.17			2.23			2.35

Consumer investment assets	$	266,733		$	223,199		$	266,733		$	246,146		$	212,227		$	240,132		$	223,199

Active digital banking users (units in thousands) ⁽¹⁾	39,267			37,981			39,267			39,294			39,075			38,266			37,981
Active mobile banking users (units in thousands)	30,601			28,703			30,601			30,307			29,820			29,174			28,703
Financial centers	4,309			4,302			4,309			4,298			4,297			4,300			4,302
ATMs	16,962			16,626			16,962			16,862			16,855			16,788			16,626

Total credit card ⁽²⁾
Loans
Average credit card outstandings	$	87,302		$	94,333		$	81,309		$	86,191		$	94,471		$	94,951		$	94,370
Ending credit card outstandings	79,834			94,946			79,834			84,244			91,890			97,608			94,946
Credit quality
Net charge-offs	$	1,944		$	2,224		$	509		$	665		$	770		$	724		$	717
	2.97		%	3.15		%	2.49		%	3.10		%	3.28		%	3.03		%	3.01		%
30+ delinquency	$	1,270		$	1,937		$	1,270		$	1,420		$	1,900		$	2,035		$	1,937
	1.59		%	2.04		%	1.59		%	1.69		%	2.07		%	2.09		%	2.04		%
90+ delinquency	$	545		$	960		$	545		$	782		$	991		$	1,042		$	960
	0.68		%	1.01		%	0.68		%	0.93		%	1.08		%	1.07		%	1.01		%
Other total credit card indicators ⁽²⁾
Gross interest yield	10.21		%	10.80		%	10.16		%	9.95		%	10.49		%	10.63		%	10.85		%
Risk-adjusted margin	8.66			8.14			9.66			8.49			7.94			8.68			8.45
New accounts (in thousands)	1,991			3,274			487			449			1,055			1,046			1,172
Purchase volumes	$	182,133		$	204,135		$	64,060		$	53,694		$	64,379		$	73,717		$	71,096

Debit card data
Purchase volumes	$	280,222		$	267,204		$	102,004		$	89,631		$	88,588		$	93,468		$	90,942

Loan production ⁽³⁾
Consumer Banking:
First mortgage	$	35,228		$	34,534		$	7,298		$	15,049		$	12,881		$	14,645		$	13,622
Home equity	6,555			7,109			738			3,176			2,641			2,646			2,219
Total ⁽⁴⁾:
First mortgage	$	55,422		$	50,353		$	13,360		$	23,124		$	18,938		$	22,114		$	20,664
Home equity	7,691			8,132			984			3,683			3,024			2,999			2,539

⁽¹⁾Active digital banking users represents mobile and/or online users.

⁽²⁾In addition to the credit card portfolio in Consumer Banking, the remaining credit card portfolio is in GWIM.

⁽³⁾Loan production amounts represent the unpaid principal balance of loans and, in the case of home equity, the principal amount of the total line of credit.

⁽⁴⁾In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			15


Bank of America Corporation and Subsidiaries
Consumer Banking Quarterly Results
(Dollars in millions)
	Third Quarter 2020															Second Quarter 2020
	Total Consumer Banking			Deposits			Consumer Lending			Total Consumer Banking			Deposits			Consumer Lending
Net interest income	$	5,890		$	3,244		$	2,646		$	5,991		$	3,299		$	2,692
Noninterest income:
Card income	1,221			(3)			1,224			1,053			(4)			1,057
Service charges	837			836			1			706			706			—
All other income	91			85			6			102			62			40
Total noninterest income	2,149			918			1,231			1,861			764			1,097
Total revenue, net of interest expense	8,039			4,162			3,877			7,852			4,063			3,789

Provision for credit losses	479			59			420			3,024			154			2,870

Noninterest expense	4,842			2,938			1,904			4,734			2,869			1,865
Income (loss) before income taxes	2,718			1,165			1,553			94			1,040			(946)
Income tax expense (benefit)	666			285			381			23			255			(232)
Net income (loss)	$	2,052		$	880		$	1,172		$	71		$	785		$	(714)

Net interest yield	2.61		%	1.52		%	3.35		%	2.85		%	1.66		%	3.42		%
Return on average allocated capital ⁽¹⁾	21			29			18			1			26			(11)
Efficiency ratio	60.23			70.60			49.10			60.30			70.62			49.23

Balance Sheet
Average
Total loans and leases	$	318,751		$	5,046		$	313,705		$	321,558		$	5,314		$	316,244
Total earning assets ⁽²⁾	896,867			849,189			314,079			845,236			801,391			316,622
Total assets ⁽²⁾	936,112			886,406			316,107			885,568			837,367			320,978
Total deposits	860,999			853,452			7,547			810,700			804,418			6,282
Allocated capital ⁽¹⁾	38,500			12,000			26,500			38,500			12,000			26,500

Period end
Total loans and leases	$	312,447		$	4,909		$	307,538		$	325,105		$	5,146		$	319,959
Total earning assets ⁽²⁾	906,994			859,659			307,985			890,244			843,131			320,461
Total assets ⁽²⁾	947,513			897,182			310,981			929,193			879,641			322,900
Total deposits	872,022			864,100			7,922			854,017			846,622			7,395

										Third Quarter 2019
										Total Consumer Banking			Deposits			Consumer Lending
Net interest income										$	7,031		$	4,196		$	2,835
Noninterest income:
Card income										1,289			(11)			1,300
Service charges										1,098			1,098			—
All other income										306			232			74
Total noninterest income										2,693			1,319			1,374
Total revenue, net of interest expense										9,724			5,515			4,209

Provision for credit losses										917			84			833

Noninterest expense										4,399			2,664			1,735
Income before income taxes										4,408			2,767			1,641
Income tax expense										1,080			678			402
Net income										$	3,328		$	2,089		$	1,239

Net interest yield										3.77		%	2.37		%	3.76		%
Return on average allocated capital ⁽¹⁾										36			69			20
Efficiency ratio										45.23			48.29			41.23

Balance Sheet
Average
Total loans and leases										$	303,832		$	5,404		$	298,428
Total earning assets ⁽²⁾										739,802			703,926			299,041
Total assets ⁽²⁾										781,739			735,913			308,991
Total deposits										709,339			703,628			5,711
Allocated capital ⁽¹⁾										37,000			12,000			25,000

Period end
Total loans and leases										$	307,925		$	5,447		$	302,478
Total earning assets ⁽²⁾										747,279			711,052			303,195
Total assets ⁽²⁾										788,814			742,654			313,128
Total deposits										715,778			710,212			5,566

⁽²⁾For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates assets from All Other to match the segments’ and businesses’ liabilities and allocated shareholders’ equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Banking.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			16


Bank of America Corporation and Subsidiaries
Consumer Banking Year-to-Date Results
(Dollars in millions)
	Nine Months Ended September 30
	2020															2019
	Total Consumer Banking			Deposits			Consumer Lending			Total Consumer Banking			Deposits			Consumer Lending
Net interest income	$	18,743		$	10,491		$	8,252		$	21,253		$	12,867		$	8,386
Noninterest income:
Card income	3,384			(15)			3,399			3,754			(24)			3,778
Service charges	2,538			2,537			1			3,163			3,162			1

All other income	355			244			111			903			673			230
Total noninterest income	6,277			2,766			3,511			7,820			3,811			4,009
Total revenue, net of interest expense	25,020			13,257			11,763			29,073			16,678			12,395

Provision for credit losses	5,761			328			5,433			2,838			173			2,665

Noninterest expense	14,071			8,532			5,539			13,178			7,993			5,185
Income before income taxes	5,188			4,397			791			13,057			8,512			4,545
Income tax expense	1,271			1,077			194			3,199			2,086			1,113
Net income	$	3,917		$	3,320		$	597		$	9,858		$	6,426		$	3,432

Net interest yield	2.98		%	1.76		%	3.51		%	3.87		%	2.46		%	3.83		%
Return on average allocated capital ⁽¹⁾	14			37			3			36			72			18
Efficiency ratio	56.24			64.36			47.09			45.33			47.92			41.84

Balance Sheet
Average
Total loans and leases	$	319,084		$	5,264		$	313,820		$	297,538		$	5,350		$	292,188
Total earning assets ⁽²⁾	838,792			794,370			314,275			735,014			699,944			292,641
Total assets ⁽²⁾	877,866			829,505			318,214			776,884			731,593			302,862
Total deposits	803,002			796,591			6,411			704,522			699,280			5,242
Allocated capital ⁽¹⁾	38,500			12,000			26,500			37,000			12,000			25,000

Period end
Total loans and leases	$	312,447		$	4,909		$	307,538		$	307,925		$	5,447		$	302,478
Total earning assets ⁽²⁾	906,994			859,659			307,985			747,279			711,052			303,195
Total assets ⁽²⁾	947,513			897,182			310,981			788,814			742,654			313,128
Total deposits	872,022			864,100			7,922			715,778			710,212			5,566

For footnotes, see page 16.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			17


Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Segment Results
(Dollars in millions)
	Nine Months Ended September 30									Third Quarter 2020			Second Quarter 2020			First Quarter 2020			Fourth Quarter 2019			Third Quarter 2019
	2020			2019
Net interest income	$	4,186		$	4,917		$	1,237		$	1,378		$	1,571		$	1,587		$	1,609
Noninterest income:
Investment and brokerage services	9,081			8,805			3,105			2,854			3,122			3,065			3,001
All other income	640			903			204			193			243			261			294
Total noninterest income	9,721			9,708			3,309			3,047			3,365			3,326			3,295
Total revenue, net of interest expense	13,907			14,625			4,546			4,425			4,936			4,913			4,904

Provision for credit losses	349			63			24			136			189			19			37

Noninterest expense	10,593			10,302			3,530			3,463			3,600			3,523			3,414
Income before income taxes	2,965			4,260			992			826			1,147			1,371			1,453
Income tax expense	726			1,044			243			202			281			336			356
Net income	$	2,239		$	3,216		$	749		$	624		$	866		$	1,035		$	1,097

Net interest yield	1.81		%	2.35		%	1.53		%	1.76		%	2.17		%	2.25		%	2.30		%
Return on average allocated capital ⁽¹⁾	20			30			20			17			23			28			30

Efficiency ratio	76.17			70.44			77.63			78.25			72.94			71.71			69.61

Balance Sheet
Average
Total loans and leases	$	182,138		$	167,069		$	185,587		$	182,150		$	178,639		$	174,374		$	170,414
Total earning assets ⁽²⁾	309,240			279,784			321,410			315,258			290,919			279,374			277,343
Total assets ⁽²⁾	321,565			292,114			333,794			327,594			303,173			291,723			289,460
Total deposits	280,828			256,720			291,845			287,109			263,411			255,912			254,460
Allocated capital ⁽¹⁾	15,000			14,500			15,000			15,000			15,000			14,500			14,500


Period end
Total loans and leases	$	187,211		$	172,677		$	187,211		$	184,293		$	181,492		$	176,600		$	172,677
Total earning assets ⁽²⁾	324,889			275,872			324,889			321,846			311,124			287,201			275,872
Total assets ⁽²⁾	337,576			288,332			337,576			334,190			323,866			299,770			288,332
Total deposits	295,893			252,478			295,893			291,740			282,395			263,113			252,478

⁽²⁾Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			18


Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Key Indicators
(Dollars in millions, except as noted)
	Nine Months Ended September 30						Third Quarter 2020		Second Quarter 2020		First Quarter 2020		Fourth Quarter 2019		Third Quarter 2019
	2020		2019
Revenue by Business
Merrill Lynch Global Wealth Management	$	11,446	$	12,065	$	3,748	$	3,625	$	4,073	$	4,046	$	4,053
Bank of America Private Bank	2,461		2,559		798		800		863		867		851

Total revenue, net of interest expense	$	13,907	$	14,624	$	4,546	$	4,425	$	4,936	$	4,913	$	4,904

Client Balances by Business, at period end
Merrill Lynch Global Wealth Management	$	2,570,252	$	2,443,614	$	2,570,252	$	2,449,305	$	2,215,531	$	2,558,102	$	2,443,614
Bank of America Private Bank	496,369		462,347		496,369		478,521		443,080		489,690		462,347

Total client balances	$	3,066,621	$	2,905,961	$	3,066,621	$	2,927,826	$	2,658,611	$	3,047,792	$	2,905,961

Client Balances by Type, at period end


Assets under management ⁽¹⁾	$	1,286,145	$	1,212,120	$	1,286,145	$	1,219,748	$	1,092,482	$	1,275,555	$	1,212,120
Brokerage and other assets	1,344,538		1,305,926		1,344,538		1,282,044		1,155,461		1,372,733		1,305,926

Deposits	295,893		252,466		295,893		291,740		282,395		263,103		252,466
Loans and leases ⁽²⁾	189,952		175,579		189,952		187,004		184,011		179,296		175,579
Less: Managed deposits in assets under management	(49,907)		(40,130)		(49,907)		(52,710)		(55,738)		(42,895)		(40,130)
Total client balances	$	3,066,621	$	2,905,961	$	3,066,621	$	2,927,826	$	2,658,611	$	3,047,792	$	2,905,961

Assets Under Management Rollforward
Assets under management, beginning balance	$	1,275,555	$	1,072,234	$	1,219,748	$	1,092,482	$	1,275,555	$	1,212,120	$	1,203,783
Net client flows	11,993		16,721		1,385		3,573		7,035		8,144		5,529

Market valuation/other	(1,403)		123,165		65,012		123,693		(190,108)		55,291		2,808
Total assets under management, ending balance	$	1,286,145	$	1,212,120	$	1,286,145	$	1,219,748	$	1,092,482	$	1,275,555	$	1,212,120

Associates, at period end
Number of financial advisors	17,760		17,657		17,760		17,888		17,646		17,458		17,657
Total wealth advisors, including financial advisors	19,673		19,672		19,673		19,851		19,628		19,440		19,672
Total primary sales professionals, including financial advisors and wealth advisors	21,271		20,775		21,271		21,198		20,851		20,586		20,775

Merrill Lynch Global Wealth Management Metric
Financial advisor productivity (in thousands)	$	1,111	$	1,073	$	1,125	$	1,069	$	1,138	$	1,108	$	1,096

Bank of America Private Bank Metric, at period end
Primary sales professionals	1,770		1,811		1,770		1,781		1,778		1,766		1,811

⁽¹⁾Defined as managed assets under advisory and/or discretion of GWIM.

⁽²⁾Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			19


Bank of America Corporation and Subsidiaries
Global Banking Segment Results
(Dollars in millions)
	Nine Months Ended September 30									Third Quarter 2020			Second Quarter 2020			First Quarter 2020			Fourth Quarter 2019			Third Quarter 2019
	2020			2019
Net interest income	$	7,003		$	8,116		$	2,028		$	2,363		$	2,612		$	2,559		$	2,617
Noninterest income:
Service charges	2,379			2,225			845			738			796			790			763
Investment banking fees	2,912			2,328			970			1,181			761			809			902
All other income	1,914			2,673			674			809			431			983			930
Total noninterest income	7,205			7,226			2,489			2,728			1,988			2,582			2,595
Total revenue, net of interest expense	14,208			15,342			4,517			5,091			4,600			5,141			5,212

Provision for credit losses	4,849			356			883			1,873			2,093			58			120

Noninterest expense	6,910			6,697			2,365			2,224			2,321			2,320			2,219
Income before income taxes	2,449			8,289			1,269			994			186			2,763			2,873
Income tax expense	661			2,238			343			268			50			746			776
Net income	$	1,788		$	6,051		$	926		$	726		$	136		$	2,017		$	2,097

Net interest yield	1.96		%	2.84		%	1.61		%	1.82		%	2.57		%	2.51		%	2.69		%
Return on average allocated capital ⁽¹⁾	6			20			9			7			1			20			20
Efficiency ratio	48.63			43.65			52.36			43.68			50.44			45.11			42.58

Balance Sheet
Average
Total loans and leases	$	394,331		$	373,275		$	373,118		$	423,625		$	386,483		$	377,359		$	377,109
Total earning assets ⁽²⁾	477,606			382,711			501,572			521,930			409,052			404,299			385,999
Total assets ⁽²⁾	534,061			437,570			557,889			578,106			465,926			459,444			441,186
Total deposits	449,273			357,413			471,288			493,918			382,373			378,510			360,457
Allocated capital ⁽¹⁾	42,500			41,000			42,500			42,500			42,500			41,000			41,000

Period end
Total loans and leases	$	356,919		$	377,658		$	356,919		$	390,108		$	437,122		$	379,268		$	377,658
Total earning assets ⁽²⁾	496,825			397,589			496,825			531,649			505,451			407,180			397,589
Total assets ⁽²⁾	553,776			452,642			553,776			586,078			562,529			464,032			452,642
Total deposits	465,399			371,887			465,399			500,918			477,108			383,180			371,887

⁽²⁾Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			20


Bank of America Corporation and Subsidiaries
Global Banking Key Indicators
(Dollars in millions)
	Nine Months Ended September 30									Third Quarter 2020			Second Quarter 2020			First Quarter 2020			Fourth Quarter 2019			Third Quarter 2019
	2020			2019
Investment Banking fees ⁽¹⁾
Advisory ⁽²⁾	$	948		$	984		$	356		$	345		$	247		$	352		$	427
Debt issuance	1,247			1,007			320			503			424			341			356
Equity issuance	717			337			294			333			90			116			119
Total Investment Banking fees⁽³⁾	$	2,912		$	2,328		$	970		$	1,181		$	761		$	809		$	902

Business Lending
Corporate	$	2,658		$	2,992		$	791		$	916		$	951		$	1,002		$	1,024
Commercial	2,815			3,100			953			881			981			1,032			1,020
Business Banking	207			275			59			66			82			88			91
Total Business Lending revenue	$	5,680		$	6,367		$	1,803		$	1,863		$	2,014		$	2,122		$	2,135

Global Transaction Services
Corporate	$	2,314		$	2,979		$	658		$	785		$	871		$	1,015		$	967
Commercial	2,432			2,642			745			809			878			857			862
Business Banking	682			800			209			217			256			264			267
Total Global Transaction Services revenue	$	5,428		$	6,421		$	1,612		$	1,811		$	2,005		$	2,136		$	2,096

Average deposit balances
Interest-bearing	$	213,142		$	189,517		$	190,417		$	242,408		$	206,851		$	209,343		$	197,801
Noninterest-bearing	236,131			167,896			280,871			251,510			175,522			169,167			162,656
Total average deposits	$	449,273		$	357,413		$	471,288		$	493,918		$	382,373		$	378,510		$	360,457

Loan spread	1.43		%	1.42		%	1.52		%	1.37		%	1.40		%	1.37		%	1.41		%

Provision for credit losses	$	4,849		$	356		$	883		$	1,873		$	2,093		$	58		$	120

Credit quality ^{(4, 5)}
Reservable criticized utilized exposure	$	30,803		$	10,346		$	30,803		$	22,900		$	15,187		$	9,996		$	10,346
	8.18		%	2.61		%	8.18		%	5.62		%	3.34		%	2.51		%	2.61		%

Nonperforming loans, leases and foreclosed properties	$	1,935		$	1,208		$	1,935		$	2,035		$	1,700		$	1,333		$	1,208
	0.55		%	0.32		%	0.55		%	0.53		%	0.39		%	0.36		%	0.32		%

Average loans and leases by product
U.S. commercial	$	230,514		$	216,653		$	218,063		$	252,649		$	220,967		$	217,326		$	219,324
Non-U.S. commercial	91,046			84,326			83,950			96,742			92,526			87,872			86,016
Commercial real estate	53,515			50,866			52,607			54,938			53,009			51,761			51,069
Commercial lease financing	19,255			21,429			18,498			19,293			19,980			20,399			20,700
Other	1			1			—			3			1			1			—
Total average loans and leases	$	394,331		$	373,275		$	373,118		$	423,625		$	386,483		$	377,359		$	377,109

Total Corporation Investment Banking fees
Advisory ⁽²⁾	$	1,072		$	1,083		$	397		$	406		$	269		$	377		$	452
Debt issuance	2,725			2,310			740			1,058			927			797			816
Equity issuance	1,687			937			664			740			283			322			308
Total investment banking fees including self-led deals	5,484			4,330			1,801			2,204			1,479			1,496			1,576
Self-led deals	(168)			(162)			(32)			(45)			(91)			(22)			(43)
Total Investment Banking fees	$	5,316		$	4,168		$	1,769		$	2,159		$	1,388		$	1,474		$	1,533

⁽¹⁾Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending.

⁽²⁾Advisory includes fees on debt and equity advisory and mergers and acquisitions.

⁽³⁾Investment banking fees represent only the fee component in Global Banking and do not include certain other items shared with the Investment Banking Group under internal revenue sharing agreements.

⁽⁴⁾Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial reservable utilized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers’ acceptances.

⁽⁵⁾Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			21


Bank of America Corporation and Subsidiaries
Global Markets Segment Results
(Dollars in millions)
	Nine Months Ended September 30									Third Quarter 2020			Second Quarter 2020			First Quarter 2020			Fourth Quarter 2019			Third Quarter 2019
	2020			2019
Net interest income	$	3,558		$	2,780		$	1,108		$	1,297		$	1,153		$	1,135		$	1,016
Noninterest income:
Investment and brokerage services	1,487			1,296			440			480			567			442			419
Investment banking fees	2,280			1,707			739			939			602			581			585
Market making and similar activities	7,059			5,623			1,726			2,360			2,973			1,441			1,580
All other income	475			783			270			274			(69)			(174)			263
Total noninterest income	11,301			9,409			3,175			4,053			4,073			2,290			2,847
Total revenue, net of interest expense ⁽¹⁾	14,859			12,189			4,283			5,350			5,226			3,425			3,863

Provision for credit losses	233			(18)			21			105			107			9			—

Noninterest expense	8,598			8,109			3,104			2,682			2,812			2,613			2,677
Income before income taxes	6,028			4,098			1,158			2,563			2,307			803			1,186
Income tax expense	1,567			1,168			301			666			600			229			338
Net income	$	4,461		$	2,930		$	857		$	1,897		$	1,707		$	574		$	848

Return on average allocated capital ⁽²⁾	17		%	11		%	9		%	21		%	19		%	7		%	10		%

Efficiency ratio	57.86			66.53			72.42			50.15			53.81			76.29			69.31

Balance Sheet
Average
Total trading-related assets	$	485,142		$	489,858		$	485,314		$	466,990		$	503,119		$	489,260		$	498,796
Total loans and leases	72,702			70,757			72,319			74,131			71,660			73,044			71,589
Total earning assets	485,448			474,481			476,182			478,648			501,616			481,401			476,919
Total assets	685,685			679,040			680,983			663,072			713,051			680,071			687,398
Total deposits	45,002			30,878			56,475			45,083			33,323			32,866			30,155
Allocated capital ⁽²⁾	36,000			35,000			36,000			36,000			36,000			35,000			35,000


Period end
Total trading-related assets	$	477,552		$	497,212		$	477,552		$	468,309		$	439,684		$	452,499		$	497,212
Total loans and leases	75,475			74,979			75,475			74,342			78,591			72,993			74,979
Total earning assets	461,855			478,303			461,855			462,184			465,632			471,701			478,303
Total assets	676,242			689,029			676,242			652,068			654,939			641,809			689,029
Total deposits	56,727			30,885			56,727			52,842			38,536			34,676			30,885

Trading-related assets (average)
Trading account securities	$	241,753		$	246,077		$	251,735		$	216,157		$	257,254		$	247,097		$	261,182
Reverse repurchases	106,968			117,087			100,395			104,883			115,698			116,280			110,907
Securities borrowed	88,734			82,772			86,508			96,448			83,271			84,533			80,641
Derivative assets	47,687			43,922			46,676			49,502			46,896			41,350			46,066
Total trading-related assets	$	485,142		$	489,858		$	485,314		$	466,990		$	503,119		$	489,260		$	498,796

⁽¹⁾Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 23.

⁽²⁾Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			22


Bank of America Corporation and Subsidiaries
Global Markets Key Indicators
(Dollars in millions)
	Nine Months Ended September 30						Third Quarter 2020		Second Quarter 2020		First Quarter 2020		Fourth Quarter 2019		Third Quarter 2019
	2020		2019
Sales and trading revenue ⁽¹⁾
Fixed-income, currencies and commodities	$	7,905	$	6,435	$	2,019	$	2,941	$	2,945	$	1,754	$	2,056
Equities	4,105		3,478		1,205		1,210		1,690		1,015		1,152
Total sales and trading revenue	$	12,010	$	9,913	$	3,224	$	4,151	$	4,635	$	2,769	$	3,208

Sales and trading revenue, excluding net debit valuation adjustment ⁽²⁾
Fixed-income, currencies and commodities	$	7,983	$	6,562	$	2,126	$	3,186	$	2,671	$	1,835	$	2,074
Equities	4,104		3,487		1,214		1,226		1,664		1,020		1,149
Total sales and trading revenue, excluding net debit valuation adjustment	$	12,087	$	10,049	$	3,340	$	4,412	$	4,335	$	2,855	$	3,223

Sales and trading revenue breakdown
Net interest income	$	3,142	$	2,301	$	960	$	1,158	$	1,024	$	1,008	$	886
Commissions	1,456		1,266		429		470		557		432		410
Trading	7,058		5,621		1,725		2,360		2,973		1,441		1,580
Other	354		725		110		163		81		(112)		332
Total sales and trading revenue	$	12,010	$	9,913	$	3,224	$	4,151	$	4,635	$	2,769	$	3,208

⁽¹⁾Includes Global Banking sales and trading revenue of $378 million and $399 million for the nine months ended September 30, 2020 and 2019, and $86 million, $65 million and $227 million for the third, second and first quarters of 2020, and $139 million and $152 million for the fourth and third quarters of 2019, respectively.

⁽²⁾For this presentation, sales and trading revenue excludes net debit valuation adjustment (DVA) gains (losses) which include net DVA on derivatives, as well as amortization of own credit portion of purchase discount and realized DVA on structured liabilities. Sales and trading revenue excluding net DVA gains (losses) represents a non-GAAP financial measure. We believe the use of this non-GAAP financial measure provides additional useful information to assess the underlying performance of these businesses and to allow better comparison of period-to-period operating performance.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			23


Bank of America Corporation and Subsidiaries
All Other Results ⁽¹⁾
(Dollars in millions)
	Nine Months Ended September 30						Third Quarter 2020		Second Quarter 2020		First Quarter 2020		Fourth Quarter 2019		Third Quarter 2019
	2020		2019
Net interest income	$	3	$	135	$	(20)	$	(53)	$	76	$	99	$	62





Noninterest income (loss)	(2,182)		(2,019)		(915)		(211)		(1,056)		(598)		(810)
Total revenue, net of interest expense	(2,179)		(1,884)		(935)		(264)		(980)		(499)		(748)

Provision for credit losses	75		(590)		(18)		(21)		114		(79)		(295)



Noninterest expense	1,114		3,375		560		307		247		315		2,460
Loss before income taxes	(3,368)		(4,669)		(1,477)		(550)		(1,341)		(735)		(2,913)
Income tax expense (benefit)	(3,387)		(3,050)		(1,774)		(765)		(848)		(998)		(1,320)
Net income (loss)	$	19	$	(1,619)	$	297	$	215	$	(493)	$	263	$	(1,593)

Balance Sheet
Average
Total loans and leases	$	30,218	$	44,530	$	24,243	$	29,923	$	36,555	$	38,201	$	41,789
Total assets ⁽²⁾	227,430		205,335		230,906		249,846		201,501		226,577		212,440
Total deposits	19,926		20,645		14,881		21,387		23,560		23,483		20,641

Period end
Total loans and leases	$	23,120	$	39,671	$	23,120	$	25,096	$	36,045	$	37,156	$	39,671

Total assets ⁽³⁾	223,345		207,513		223,345		240,159		241,098		224,375		207,513
Total deposits	12,839		21,808		12,839		19,149		22,899		23,089		21,808

⁽¹⁾All Other consists of asset and liability management (ALM) activities, equity investments, non-core mortgage loans and servicing activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass certain residential mortgages, debt securities, and interest rate and foreign currency risk management activities. Substantially all of the results of ALM activities are allocated to our business segments.

⁽²⁾Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity of $714.2 billion and $540.9 billion for the nine months ended September 30, 2020 and 2019, $828.3 billion, $740.7 billion and $572.2 billion for the third, second and first quarters of 2020, and $554.2 billion and $536.8 billion for the fourth and third quarters of 2019, respectively.

⁽³⁾Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity of $857.8 billion, $829.1 billion, $665.8 billion, $565.4 billion and $546.5 billion at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively.

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			24


Bank of America Corporation and Subsidiaries
Outstanding Loans and Leases
(Dollars in millions)
	September 30 2020		June 30 2020		September 30 2019
Consumer
Residential mortgage	$	232,718	$	239,500	$	227,472
Home equity	36,530		38,396		41,574
Credit card	79,834		84,244		94,946
Direct/Indirect consumer ⁽¹⁾	89,914		88,628		90,836
Other consumer ⁽²⁾	140		120		208
Total consumer loans excluding loans accounted for under the fair value option	439,136		450,888		455,036
Consumer loans accounted for under the fair value option ⁽³⁾	657		684		640
Total consumer	439,793		451,572		455,676

Commercial
U.S. commercial	293,934		313,938		310,982
Non-U.S. commercial	96,151		103,684		101,084
Commercial real estate ⁽⁴⁾	62,454		64,095		62,798
Commercial lease financing	17,413		18,200		20,107
	469,952		499,917		494,971
U.S. small business commercial ⁽⁵⁾	38,850		38,963		15,229
Total commercial loans excluding loans accounted for under the fair value option	508,802		538,880		510,200
Commercial loans accounted for under the fair value option ⁽³⁾	6,577		8,492		7,034
Total commercial	515,379		547,372		517,234

Total loans and leases	$	955,172	$	998,944	$	972,910

⁽¹⁾Includes primarily auto and specialty lending loans and leases of $47.1 billion, $48.4 billion and $50.3 billion, U.S. securities-based lending loans of $39.0 billion, $36.6 billion and $36.5 billion and non-U.S. consumer loans of $2.9 billion, $2.8 billion and $3.0 billion at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

⁽²⁾Substantially all of other consumer is consumer overdrafts.

⁽³⁾Consumer loans accounted for under the fair value option includes residential mortgage loans of $314 million, $330 million and $275 million and home equity loans of $343 million, $354 million and $365 million at September 30, 2020, June 30, 2020 and September 30, 2019, respectively. Commercial loans accounted for under the fair value option include U.S. commercial loans of $3.4 billion, $5.1 billion and $4.7 billion and non-U.S. commercial loans of $3.2 billion, $3.4 billion and $2.4 billion at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

⁽⁴⁾Includes U.S. commercial real estate loans of $58.7 billion, $60.6 billion and $58.1 billion and non-U.S. commercial real estate loans of $3.7 billion, $3.5 billion and $4.7 billion at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

⁽⁵⁾Includes card-related products.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			25


Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment and All Other
(Dollars in millions)
	Third Quarter 2020
	Total Corporation		Consumer Banking		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	237,414	$	127,546	$	89,926	$	—	$	—	$	19,942
Home equity	37,897		30,069		3,128		—		302		4,398
Credit card	81,309		78,915		2,394		—		—		—
Direct/Indirect and other consumer	89,559		48,137		41,420		—		—		2
Total consumer	446,179		284,667		136,868		—		302		24,342

Commercial
U.S. commercial	343,533		34,069		43,401		218,063		47,691		309
Non-U.S. commercial	102,938		—		837		83,950		18,146		5
Commercial real estate	63,262		15		4,480		52,607		6,154		6
Commercial lease financing	18,106		—		1		18,498		26		(419)
Total commercial	527,839		34,084		48,719		373,118		72,017		(99)
Total loans and leases	$	974,018	$	318,751	$	185,587	$	373,118	$	72,319	$	24,243

	Second Quarter 2020
	Total Corporation		Consumer Banking		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	241,486	$	127,380	$	88,718	$	3	$	—	$	25,385
Home equity	39,308		31,220		3,160		—		304		4,624
Credit card	86,191		83,890		2,301		—		—		—
Direct/Indirect and other consumer	88,962		49,390		39,569		—		—		3
Total consumer	455,947		291,880		133,748		3		304		30,012

Commercial
U.S. commercial	374,965		29,662		43,244		252,649		49,184		226
Non-U.S. commercial	116,040		—		675		96,742		18,520		103
Commercial real estate	65,515		16		4,482		54,938		6,069		10
Commercial lease financing	18,920		—		1		19,293		54		(428)
Total commercial	575,440		29,678		48,402		423,622		73,827		(89)
Total loans and leases	$	1,031,387	$	321,558	$	182,150	$	423,625	$	74,131	$	29,923

	Third Quarter 2019
	Total Corporation		Consumer Banking		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	224,084	$	107,527	$	80,959	$	—	$	—	$	35,598
Home equity	43,616		33,585		3,326		—		352		6,353
Credit card	94,370		91,595		2,775		—		—		—
Direct/Indirect and other consumer	90,813		50,738		40,072		—		—		3
Total consumer	452,883		283,445		127,132		—		352		41,954

Commercial
U.S. commercial	324,436		20,372		39,289		219,324		45,083		368
Non-U.S. commercial	105,003		—		88		86,016		18,967		(68)
Commercial real estate	62,185		15		3,902		51,069		7,187		12
Commercial lease financing	20,226		—		3		20,700		—		(477)
Total commercial	511,850		20,387		43,282		377,109		71,237		(165)
Total loans and leases	$	964,733	$	303,832	$	170,414	$	377,109	$	71,589	$	41,789

Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			26


Bank of America Corporation and Subsidiaries
Commercial Credit Exposure by Industry ^{(1, 2, 3, 4, 6)}
(Dollars in millions)
	Commercial Utilized										Total Commercial Committed
	September 30 2020		June 30 2020		September 30 2019		September 30 2020		June 30 2020		September 30 2019
Asset managers and funds	$	63,360	$	64,237	$	73,822	$	97,508	$	100,773	$	109,841
Real estate ⁽⁵⁾	72,105		74,181		70,643		95,251		96,124		93,625
Capital goods	42,899		47,711		41,651		83,115		85,715		79,308
Finance companies	43,396		40,661		37,502		66,949		63,767		59,923
Healthcare equipment and services	36,554		39,716		34,563		61,077		63,759		56,649
Government and public education	43,699		43,787		42,802		56,785		55,972		54,177
Materials	25,478		28,771		27,647		51,305		52,417		52,293
Retailing	27,085		29,564		27,354		49,599		49,813		48,874
Consumer services	32,016		34,245		25,959		48,631		48,300		46,335
Food, beverage and tobacco	22,706		24,633		23,587		44,967		46,159		44,609
Commercial services and supplies	22,274		24,686		22,328		39,211		38,147		37,855
Transportation	25,157		26,309		25,440		34,661		35,473		34,638
Energy	15,432		16,954		15,660		34,495		37,386		35,750
Utilities	12,488		13,310		11,938		29,501		29,978		28,899
Individuals and trusts	21,171		20,460		18,887		27,954		28,364		26,303
Media	13,616		14,457		13,285		25,802		26,396		23,645
Global commercial banks	21,295		25,096		23,602		23,424		27,507		25,687
Technology hardware and equipment	9,875		10,280		11,287		22,563		22,485		25,379
Software and services	10,767		11,721		10,257		21,104		20,963		20,098
Consumer durables and apparel	10,053		10,931		10,174		20,972		21,061		21,459
Automobiles and components	11,916		12,417		8,033		19,391		18,609		15,176
Vehicle dealers	14,598		15,369		17,332		18,457		19,798		20,580
Pharmaceuticals and biotechnology	5,142		6,790		6,261		15,634		17,565		27,051
Insurance	6,310		6,791		6,966		13,962		14,227		13,804
Telecommunication services	7,063		7,939		8,580		13,441		13,581		15,980
Food and staples retailing	5,166		6,383		5,642		10,449		10,628		9,871
Financial markets infrastructure (clearinghouses)	4,587		4,852		11,864		7,216		7,330		14,316
Religious and social organizations	4,987		5,404		4,104		6,910		7,240		5,950

Total commercial credit exposure by industry	$	631,195	$	667,655	$	637,170	$	1,040,334	$	1,059,537	$	1,048,075

⁽¹⁾Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $41.3 billion, $42.2 billion and $40.7 billion at September 30, 2020, June 30, 2020 and September 30, 2019, respectively. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $35.0 billion, $32.2 billion and $35.1 billion, which consists primarily of other marketable securities, at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

⁽²⁾Total utilized and total committed exposure includes loans of $6.6 billion, $8.5 billion and $7.0 billion and issued letters of credit with a notional amount of $121 million, $152 million and $115 million accounted for under the fair value option at September 30, 2020, June 30, 2020 and September 30, 2019, respectively. In addition, total committed exposure includes unfunded loan commitments accounted for under the fair value option with a notional amount of $3.2 billion, $2.6 billion and $4.7 billion at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

⁽³⁾Includes U.S. small business commercial exposure.

⁽⁴⁾Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (e.g., syndicated or participated) to other financial institutions.

⁽⁵⁾Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the primary business activity of the borrowers or the counterparties using operating cash flows and primary source of repayment as key factors.

⁽⁶⁾September 30, 2020 and June 30, 2020 include $24.7 billion and $24.4 billion of Paycheck Protection Program loan exposure across impacted industries.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			27


Bank of America Corporation and Subsidiaries
Top 20 Non-U.S. Countries Exposure
(Dollars in millions)
	Funded Loans and Loan Equivalents ⁽¹⁾		Unfunded Loan Commitments		Net Counterparty Exposure		Securities/ Other Investments ⁽²⁾		Country Exposure at September 30 2020		Hedges and Credit Default Protection ⁽³⁾		Net Country Exposure at September 30 2020 ⁽⁴⁾		Increase (Decrease) from June 30 2020
United Kingdom	$	31,825	$	16,188	$	6,197	$	2,836	$	57,046	$	(2,015)	$	55,031	$	(5,983)
Germany	35,523		9,366		2,389		5,353		52,631		(2,564)		50,067		143
Japan	20,481		1,004		1,560		2,558		25,603		(983)		24,620		(40)
France	11,340		8,436		1,308		4,942		26,026		(1,740)		24,286		3,204
Canada	8,148		9,043		1,323		2,082		20,596		(720)		19,876		(619)
Australia	6,610		3,660		454		2,893		13,617		(367)		13,250		422
China	9,182		41		1,126		2,343		12,692		(203)		12,489		(339)
Brazil	6,478		730		272		3,907		11,387		(320)		11,067		(230)
Netherlands	6,579		3,081		590		1,592		11,842		(810)		11,032		(513)
India	5,597		151		448		3,897		10,093		(224)		9,869		(13)
Switzerland	5,752		2,921		156		230		9,059		(395)		8,664		(503)
South Korea	5,486		854		459		1,824		8,623		(127)		8,496		(111)
Singapore	3,997		230		354		3,809		8,390		(57)		8,333		918
Mexico	3,920		1,225		201		1,663		7,009		(139)		6,870		(220)
Belgium	4,271		1,310		534		901		7,016		(250)		6,766		365
Hong Kong	4,723		220		512		1,167		6,622		(26)		6,596		(192)
Spain	2,926		1,343		306		789		5,364		(303)		5,061		(200)
Ireland	3,272		930		103		389		4,694		(11)		4,683		63
Italy	2,610		1,222		562		1,310		5,704		(1,065)		4,639		(1,377)
United Arab Emirates	2,545		139		217		52		2,953		(41)		2,912		(585)
Total top 20 non-U.S. countries exposure	$	181,265	$	62,094	$	19,071	$	44,537	$	306,967	$	(12,360)	$	294,607	$	(5,810)

⁽¹⁾Includes loans, leases, and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses.

⁽²⁾Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures and net credit default swaps purchased, consisting of single-name and net indexed and tranched credit default swaps.

⁽³⁾Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation’s risk to country exposures as listed, consisting of net single-name and net indexed and tranched credit default swaps. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable.

⁽⁴⁾ Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			28


Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties
(Dollars in millions)
	September 30 2020			June 30 2020			March 31 2020			December 31 2019			September 30 2019
Residential mortgage	$	1,675		$	1,552		$	1,580		$	1,470		$	1,551
Home equity	640			594			578			536			585

Direct/Indirect consumer	42			45			46			47			53

Total consumer	2,357			2,191			2,204			2,053			2,189
U.S. commercial	1,351			1,247			1,240			1,094			966
Non-U.S. commercial	338			387			90			43			51
Commercial real estate	414			474			408			280			185
Commercial lease financing	14			17			44			32			35
	2,117			2,125			1,782			1,449			1,237
U.S. small business commercial	76			77			70			50			50
Total commercial	2,193			2,202			1,852			1,499			1,287
Total nonperforming loans and leases	4,550			4,393			4,056			3,552			3,476
Foreclosed properties ⁽¹⁾	180			218			275			285			247
Total nonperforming loans, leases and foreclosed properties ^{(2, 3, 4)}	$	4,730		$	4,611		$	4,331		$	3,837		$	3,723

Fully-insured home loans past due 30 days or more and still accruing	$	1,213		$	1,153		$	1,598		$	1,811		$	1,919
Consumer credit card past due 30 days or more and still accruing	1,270			1,420			1,900			2,035			1,937
Other loans past due 30 days or more and still accruing	3,322			2,980			3,904			3,746			3,286
Total loans past due 30 days or more and still accruing ^{(3, 5, 6)}	$	5,805		$	5,553		$	7,402		$	7,592		$	7,142

Fully-insured home loans past due 90 days or more and still accruing	$	837		$	854		$	951		$	1,088		$	1,203
Consumer credit card past due 90 days or more and still accruing	546			782			991			1,042			960
Other loans past due 90 days or more and still accruing	365			579			384			283			496
Total loans past due 90 days or more and still accruing ^{(3, 5, 6)}	$	1,748		$	2,215		$	2,326		$	2,413		$	2,659

Nonperforming loans, leases and foreclosed properties/Total assets ⁽⁷⁾	0.17		%	0.17		%	0.17		%	0.16		%	0.15		%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties ⁽⁷⁾	0.50			0.47			0.42			0.39			0.39
Nonperforming loans and leases/Total loans and leases ⁽⁷⁾	0.48			0.44			0.39			0.36			0.36

Commercial reservable criticized utilized exposure ⁽⁸⁾	$	35,710		$	25,950		$	17,400		$	11,452		$	11,835
Commercial reservable criticized utilized exposure/Commercial reservable utilized exposure ⁽⁸⁾	6.55		%	4.51		%	2.84		%	2.09		%	2.17		%
Total commercial criticized utilized exposure/Commercial utilized exposure ⁽⁸⁾	6.34			4.34			2.65			2.00			2.02

⁽¹⁾Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally loans insured by the Federal Housing Administration (FHA), that entered foreclosure of $131 million, $124 million, $224 million, $260 million and $275 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively.

⁽²⁾Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the FHA and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate.

⁽³⁾For periods prior to 2020, balances do not include purchased credit-impaired loans even though the customer may be contractually past due. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.

⁽⁴⁾Balances do not include nonperforming loans held-for-sale of $184 million, $151 million, $223 million, $239 million and $237 million and nonperforming loans accounted for under the fair value option of $9 million, $79 million, $6 million, $6 million and $7 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively.

⁽⁵⁾Balances do not include loans held-for-sale past due 30 days or more and still accruing of $93 million, $209 million, $354 million, $21 million and $44 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively, and loans held-for-sale past due 90 days or more and still accruing of $41 million, $5 million, $0, $11 million and $3 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively. At September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, there were $119 million, $18 million, $52 million, $6 million and $9 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest.

⁽⁶⁾These balances are excluded from total nonperforming loans, leases and foreclosed properties.

⁽⁷⁾Total assets and total loans and leases do not include loans accounted for under the fair value option of $7.2 billion, $9.2 billion, $9.0 billion, $8.3 billion and $7.7 billion at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively.

⁽⁸⁾Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			29


Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties Activity ⁽¹⁾
(Dollars in millions)
	Third Quarter 2020		Second Quarter 2020		First Quarter 2020		Fourth Quarter 2019		Third Quarter 2019
Nonperforming Consumer Loans and Leases:
Balance, beginning of period	$	2,191	$	2,204	$	2,053	$	2,189	$	3,027

Additions	587		354		477		291		335


Reductions:
Paydowns and payoffs	(113)		(84)		(106)		(121)		(197)
Sales	—		(25)		(6)		(109)		(748)
Returns to performing status ⁽²⁾	(291)		(233)		(165)		(143)		(185)
Charge-offs ⁽³⁾	(13)		(22)		(27)		(31)		(23)
Transfers to foreclosed properties	(4)		(3)		(22)		(23)		(20)

Total net additions (reductions) to nonperforming loans and leases	166		(13)		151		(136)		(838)
Total nonperforming consumer loans and leases, end of period	2,357		2,191		2,204		2,053		2,189
Foreclosed properties	135		169		226		229		188
Nonperforming consumer loans, leases and foreclosed properties, end of period	$	2,492	$	2,360	$	2,430	$	2,282	$	2,377

Nonperforming Commercial Loans and Leases ⁽⁴⁾:
Balance, beginning of period	$	2,202	$	1,852	$	1,499	$	1,287	$	1,160

Additions	656		889		781		527		492
Reductions:
Paydowns	(216)		(177)		(212)		(169)		(161)
Sales	(50)		(10)		(16)		(22)		(33)
Return to performing status ⁽⁵⁾	(21)		(8)		(16)		(15)		(48)
Charge-offs	(367)		(344)		(184)		(107)		(123)
Transfers to foreclosed properties	—		—		—		(2)		—
Transfers to loans held-for-sale	(11)		—		—		—		—
Total net additions (reductions) to nonperforming loans and leases	(9)		350		353		212		127
Total nonperforming commercial loans and leases, end of period	2,193		2,202		1,852		1,499		1,287
Foreclosed properties	45		49		49		56		59
Nonperforming commercial loans, leases and foreclosed properties, end of period	$	2,238	$	2,251	$	1,901	$	1,555	$	1,346

⁽¹⁾For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 29.

⁽²⁾Consumer loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructuring and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

⁽³⁾Our policy is not to classify consumer credit card and non-bankruptcy related consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and, accordingly, are excluded from this table.

⁽⁴⁾Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.

⁽⁵⁾Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			30


Bank of America Corporation and Subsidiaries
Quarterly Net Charge-offs and Net Charge-off Ratios ⁽¹⁾
(Dollars in millions)
	Third Quarter 2020						Second Quarter 2020						First Quarter 2020						Fourth Quarter 2019		Third Quarter 2019
	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
Net Charge-offs
Residential mortgage ⁽²⁾	$	(6)	(0.01)	%	$	(20)	(0.03)	%	$	(1)	—	%	$	4	0.01	%	$	(38)	(0.07)	%
Home equity ⁽³⁾	(20)		(0.21)		(14)		(0.14)		(11)		(0.11)		(12)		(0.12)		(202)		(1.85)
Credit card	509		2.49		665		3.10		770		3.28		724		3.03		717		3.01

Direct/Indirect consumer	18		0.08		26		0.12		40		0.18		39		0.17		76		0.33
Other consumer	63		n/m		77		n/m		74		n/m		83		n/m		69		n/m
Total consumer	564		0.50		734		0.65		872		0.75		838		0.72		622		0.55
U.S. commercial	154		0.20		219		0.26		163		0.21		54		0.07		53		0.07
Non-U.S. commercial	57		0.23		32		0.12		1		—		(31)		(0.12)		67		0.26
Total commercial and industrial	211		0.21		251		0.22		164		0.16		23		0.02		120		0.12
Commercial real estate	106		0.66		57		0.35		6		0.04		21		0.13		(1)		—
Commercial lease financing	24		0.53		31		0.66		5		0.10		7		0.13		1		0.02
	341		0.28		339		0.25		175		0.14		51		0.04		120		0.10
U.S. small business commercial	67		0.69		73		0.96		75		1.95		70		1.83		69		1.83
Total commercial	408		0.31		412		0.29		250		0.19		121		0.09		189		0.15
Total net charge-offs	$	972	0.40		$	1,146	0.45		$	1,122	0.46		$	959	0.39		$	811	0.34

By Business Segment and All Other
Consumer Banking	$	658	0.82	%	$	843	1.05	%	$	963	1.22	%	$	924	1.18	%	$	905	1.18	%
Global Wealth & Investment Management	(6)		(0.01)		9		0.02		9		0.02		17		0.04		39		0.09
Global Banking	328		0.36		330		0.32		160		0.17		40		0.04		116		0.12
Global Markets	17		0.10		—		—		7		0.04		9		0.05		—		—
All Other	(25)		(0.40)		(36)		(0.49)		(17)		(0.19)		(31)		(0.32)		(249)		(2.43)
Total net charge-offs	$	972	0.40		$	1,146	0.45		$	1,122	0.46		$	959	0.39		$	811	0.34

⁽¹⁾Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category.

⁽²⁾Includes loan sale net charge-offs (recoveries) of $0, $(16) million and $0 for the third, second and first quarters of 2020, and $2 million and $(25) million for the fourth and third quarters of 2019, respectively.

⁽³⁾Includes loan sale net charge-offs (recoveries) of $0, $0 and $0 for the third, second and first quarters of 2020, and $9 million and $(173) million for the fourth and third quarters of 2019, respectively.

n/m = not meaningful

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			31


Bank of America Corporation and Subsidiaries
Year-to-Date Net Charge-offs and Net Charge-off Ratios ⁽¹⁾
(Dollars in millions)
	Nine Months Ended September 30
	2020						2019
	Amount		Percent		Amount		Percent
Net Charge-offs
Residential mortgage ⁽²⁾	$	(27)	(0.02)	%	$	(51)	(0.03)	%
Home equity ⁽³⁾	(45)		(0.16)		(346)		(1.02)
Credit card	1,944		2.97		2,224		3.15

Direct/Indirect consumer	84		0.13		170		0.25
Other consumer	214		n/m		151		n/m
Total consumer	2,170		0.64		2,148		0.64
U.S. commercial	536		0.23		202		0.09
Non-U.S. commercial	90		0.11		115		0.15
Total commercial and industrial	626		0.20		317		0.11
Commercial real estate	169		0.35		8		0.02
Commercial lease financing	60		0.43		14		0.09
	855		0.23		339		0.09
U.S. small business commercial	215		1.01		202		1.83
Total commercial	1,070		0.27		541		0.15
Total net charge-offs	$	3,240	0.44		$	2,689	0.38

By Business Segment and All Other
Consumer Banking	$	2,464	1.03	%	$	2,745	1.23	%
Global Wealth & Investment Management	12		0.01		63		0.05
Global Banking	818		0.28		327		0.12
Global Markets	24		0.05		—		—
All Other	(78)		(0.35)		(446)		(1.36)
Total net charge-offs	$	3,240	0.44		$	2,689	0.38

⁽²⁾Includes loan sale net charge-offs (recoveries) of $(16) million and $35 million for the nine months ended September 30, 2020 and 2019.

⁽³⁾Includes loan sale net recoveries of $0 and $267 million for the nine months ended September 30, 2020 and 2019.

n/m = not meaningful

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			32


Bank of America Corporation and Subsidiaries
Allocation of the Allowance for Credit Losses by Product Type
(Dollars in millions)
	September 30, 2020					June 30, 2020				January 1, 2020				September 30, 2019
	Amount		Percent of Loans and Leases Outstanding ^{(1, 2)}	Amount			Percent of Loans and Leases Outstanding ^{(1, 2)}	Amount		Percent of Loans and Leases Outstanding ^{(1, 2)}	Amount		Percent of Loans and Leases Outstanding ^{(1, 2)}
Allowance for loan and lease losses
Residential mortgage	$	457	0.20%	$	439		0.18%	$	212	0.09%	$	341	0.15%
Home equity	398		1.09	394			1.03	228		0.57	250		0.60
Credit card	8,972		11.24	9,247			10.98	6,809		6.98	3,709		3.91

Direct/Indirect consumer	800		0.89	800			0.90	566		0.62	234		0.26
Other consumer	64		n/m	75			n/m	55		n/m	42		n/m
Total consumer	10,691		2.43	10,955			2.43	7,870		1.69	4,576		1.01
U.S. commercial ⁽³⁾	5,163		1.55	4,788			1.36	2,723		0.84	3,038		0.93
Non-U.S.commercial	1,353		1.41	1,321			1.27	668		0.64	669		0.66
Commercial real estate	2,283		3.66	2,235			3.49	1,036		1.65	992		1.58
Commercial lease financing	106		0.60	90			0.50	61		0.31	158		0.79
Total commercial	8,905		1.75	8,434			1.57	4,488		0.88	4,857		0.95
Allowance for loan and lease losses	19,596		2.07	19,389			1.96	12,358		1.27	9,433		0.98


Reserve for unfunded lending commitments	1,910			1,702				1,123			809
Allowance for credit losses	$	21,506		$	21,091			$	13,481		$	10,242

Asset Quality Indicators

Allowance for loan and lease losses/Total loans and leases ⁽²⁾			2.07%				1.96%			1.27%			0.98%

Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁴⁾			431				441			331			271

Ratio of the allowance for loan and lease losses/Annualized net charge-offs			5.07				4.21			n/m			2.93

⁽¹⁾Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option include residential mortgage loans of $314 million, $330 million, $257 million and $275 million and home equity loans of $343 million, $354 million, $337 million and $365 million at September 30, 2020, June 30, 2020, January 1, 2020 and September 30, 2019, respectively. Commercial loans accounted for under the fair value option include U.S. commercial loans of $3.4 billion, $5.1 billion, $5.1 billion and $4.7 billion and non-U.S. commercial loans of $3.2 billion, $3.4 billion, $3.2 billion and $2.4 billion at September 30, 2020, June 30, 2020, January 1, 2020 and September 30, 2019, respectively.

⁽²⁾Total loans and leases do not include loans accounted for under the fair value option of $7.2 billion, $9.2 billion, $8.9 billion and $7.7 billion at September 30, 2020, June 30, 2020, January 1, 2020 and September 30, 2019, respectively.

⁽³⁾Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.5 billion, $1.4 billion, $831 million and $518 million at September 30, 2020, June 30, 2020, January 1, 2020 and September 30, 2019, respectively.

⁽⁴⁾Allowance for loan and lease losses includes $10.3 billion, $10.5 billion, $7.5 billion and $4.1 billion allocated to products (primarily the Consumer Lending portfolios within Consumer Banking) that are excluded from nonperforming loans and leases at September 30, 2020, June 30, 2020, January 1, 2020 and September 30, 2019, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 204 percent, 202 percent, 129 percent and 152 percent at September 30, 2020, June 30, 2020, January 1, 2020 and September 30, 2019, respectively.

n/m = not meaningful

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			33

Exhibit A: Non-GAAP Reconciliations

Bank of America Corporation and Subsidiaries

Reconciliations to GAAP Financial Measures

(Dollars in millions, except per share information)

The Corporation evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents an adjusted shareholders’ equity or common shareholders’ equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders’ equity measures the Corporation’s net income applicable to common shareholders as a percentage of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders’ equity measures the Corporation’s net income as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation’s use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders’ equity as key measures to support our overall growth goals.

See the tables below for reconciliations of these non-GAAP financial measures to the most closely related financial measures defined by GAAP for the nine months ended September 30, 2020 and 2019 and the three months ended September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in understanding its results of operations and trends. Other companies may define or calculate supplemental financial data differently.


	Nine Months Ended September 30						Third Quarter 2020		Second Quarter 2020		First Quarter 2020		Fourth Quarter 2019		Third Quarter 2019
	2020		2019





























Reconciliation of income before income taxes to pretax, pre-provision income
Income before income taxes	$	12,876	$	24,585	$	4,546	$	3,799	$	4,531	$	8,169	$	6,859
Provision for credit losses	11,267		2,649		1,389		5,117		4,761		941		779
Pretax, pre-provision income	$	24,143	$	27,234	$	5,935	$	8,916	$	9,292	$	9,110	$	7,638

Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and average tangible common shareholders’ equity
Shareholders’ equity	$	266,062	$	268,223	$	267,323	$	266,316	$	264,534	$	266,900	$	270,430
Goodwill	(68,951)		(68,951)		(68,951)		(68,951)		(68,951)		(68,951)		(68,951)
Intangible assets (excluding mortgage servicing rights)	(1,758)		(1,735)		(1,976)		(1,640)		(1,655)		(1,678)		(1,707)
Related deferred tax liabilities	791		787		855		790		728		730		752
Tangible shareholders’ equity	$	196,144	$	198,324	$	197,251	$	196,515	$	194,656	$	197,001	$	200,524
Preferred stock	(23,437)		(22,894)		(23,427)		(23,427)		(23,456)		(23,461)		(23,800)
Tangible common shareholders’ equity	$	172,707	$	175,430	$	173,824	$	173,088	$	171,200	$	173,540	$	176,724








Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity and period-end tangible common shareholders’ equity
Shareholders’ equity	$	268,850	$	268,387	$	268,850	$	265,637	$	264,918	$	264,810	$	268,387
Goodwill	(68,951)		(68,951)		(68,951)		(68,951)		(68,951)		(68,951)		(68,951)
Intangible assets (excluding mortgage servicing rights)	(2,185)		(1,690)		(2,185)		(1,630)		(1,646)		(1,661)		(1,690)
Related deferred tax liabilities	910		734		910		789		790		713		734
Tangible shareholders’ equity	$	198,624	$	198,480	$	198,624	$	195,845	$	195,111	$	194,911	$	198,480
Preferred stock	(23,427)		(23,606)		(23,427)		(23,427)		(23,427)		(23,401)		(23,606)
Tangible common shareholders’ equity	$	175,197	$	174,874	$	175,197	$	172,418	$	171,684	$	171,510	$	174,874

Reconciliation of period-end assets to period-end tangible assets
Assets	$	2,738,452	$	2,426,330	$	2,738,452	$	2,741,688	$	2,619,954	$	2,434,079	$	2,426,330
Goodwill	(68,951)		(68,951)		(68,951)		(68,951)		(68,951)		(68,951)		(68,951)
Intangible assets (excluding mortgage servicing rights)	(2,185)		(1,690)		(2,185)		(1,630)		(1,646)		(1,661)		(1,690)
Related deferred tax liabilities	910		734		910		789		790		713		734
Tangible assets	$	2,668,226	$	2,356,423	$	2,668,226	$	2,671,896	$	2,550,147	$	2,364,180	$	2,356,423

Book value per share of common stock
Common shareholders’ equity	$	245,423	$	244,781	$	245,423	$	242,210	$	241,491	$	241,409	$	244,781
Ending common shares issued and outstanding	8,661.5		9,079.3		8,661.5		8,664.1		8,675.5		8,836.1		9,079.3
Book value per share of common stock	$	28.33	$	26.96	$	28.33	$	27.96	$	27.84	$	27.32	$	26.96

Tangible book value per share of common stock
Tangible common shareholders’ equity	$	175,197	$	174,874	$	175,197	$	172,418	$	171,684	$	171,510	$	174,874
Ending common shares issued and outstanding	8,661.5		9,079.3		8,661.5		8,664.1		8,675.5		8,836.1		9,079.3
Tangible book value per share of common stock	$	20.23	$	19.26	$	20.23	$	19.90	$	19.79	$	19.41	$	19.26

Certain prior-period amounts have been reclassified to conform to current-period presentation.


Current-period information is preliminary and based on company data available at the time of the presentation.			34

Form: 8-K

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