April 30, 2024 - 10-Q: Quarterly report pursuant to Section 13 or 15(d)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from to

Commission file number:

1-6523

Exact name of registrant as specified in its charter:

Bank of America Corporation

State or other jurisdiction of incorporation or organization:

Delaware

IRS Employer Identification No.:

56-0906609

Address of principal executive offices:

Bank of America Corporate Center

100 N. Tryon Street

Charlotte, North Carolina 28255

Registrant’s telephone number, including area code:

(704) 386-5681

Former name, former address and former fiscal year, if changed since last report:

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BAC	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrE	New York Stock Exchange
of Floating Rate Non-Cumulative Preferred Stock, Series E
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrB	New York Stock Exchange
of 6.000% Non-Cumulative Preferred Stock, Series GG
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrK	New York Stock Exchange
of 5.875% Non-Cumulative Preferred Stock, Series HH
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L	BAC PrL	New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrG	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 1


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrH	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 2
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrJ	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 4
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrL	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 5
Floating Rate Preferred Hybrid Income Term Securities of BAC Capital	BAC/PF	New York Stock Exchange
Trust XIII (and the guarantee related thereto)
5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities	BAC/PG	New York Stock Exchange
of BAC Capital Trust XIV (and the guarantee related thereto)
Income Capital Obligation Notes initially due December 15, 2066 of	MER PrK	New York Stock Exchange
Bank of America Corporation
Senior Medium-Term Notes, Series A, Step Up Callable Notes, due	BAC/31B	New York Stock Exchange
November 28, 2031 of BofA Finance LLC (and the guarantee
of the Registrant with respect thereto)
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrM	New York Stock Exchange
5.375% Non-Cumulative Preferred Stock, Series KK
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrN	New York Stock Exchange
of 5.000% Non-Cumulative Preferred Stock, Series LL
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrO	New York Stock Exchange
4.375% Non-Cumulative Preferred Stock, Series NN
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrP	New York Stock Exchange
4.125% Non-Cumulative Preferred Stock, Series PP
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrQ	New York Stock Exchange
4.250% Non-Cumulative Preferred Stock, Series QQ
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrS	New York Stock Exchange
of 4.750% Non-Cumulative Preferred Stock, Series SS

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).

Yes ☐ No ☑

On April 29, 2024, there were 7,820,370,305 shares of Bank of America Corporation Common Stock outstanding.

Bank of America Corporation and Subsidiaries

March 31, 2024

Form 10-Q

INDEX

Part I. Financial Information


Item 1. Financial Statements						Page
Consolidated Statement of Income						43
Consolidated Statement of Comprehensive Income						43
Consolidated Balance Sheet						44
Consolidated Statement of Changes in Shareholders’ Equity						45
Consolidated Statement of Cash Flows						46
Notes to Consolidated Financial Statements						47
Note 1 – Summary of Significant Accounting Principles						47
Note 2 – Net Interest Income and Noninterest Income						48
Note 3 – Derivatives						49
Note 4 – Securities						56
Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses						59

Note 6 – Securitizations and Other Variable Interest Entities						69
Note 7– Goodwill and Intangible Assets						73
Note 8 – Leases						73
Note 9 – Securities Financing Agreements, Collateral and Restricted Cash						74
Note 10 – Commitments and Contingencies						75
Note 11 – Shareholders’ Equity						78
Note 12 – Accumulated Other Comprehensive Income (Loss)						78
Note 13 – Earnings Per Common Share						79

Note 14 – Fair Value Measurements						79
Note 15 – Fair Value Option						85
Note 16 – Fair Value of Financial Instruments						86
Note 17 – Business Segment Information						87
Glossary						90
Acronyms						92



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Executive Summary						3
Recent Developments						3
Financial Highlights						3

Supplemental Financial Data						5
Business Segment Operations						8
Consumer Banking						8
Global Wealth & Investment Management						10
Global Banking						12
Global Markets						14

All Other						15
Managing Risk						16

Capital Management						16
Liquidity Risk						20
Credit Risk Management						23
Consumer Portfolio Credit Risk Management						24
Commercial Portfolio Credit Risk Management						28
Non-U.S. Portfolio						34

Allowance for Credit Losses						35
Market Risk Management						37
Trading Risk Management						37
Interest Rate Risk Management for the Banking Book						39
Mortgage Banking Risk Management						40



Climate Risk						40
Complex Accounting Estimates						41
Non-GAAP Reconciliations						42

Item 3. Quantitative and Qualitative Disclosures about Market Risk						42
Item 4. Controls and Procedures						42

1 Bank of America

Part II. Other Information

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 5. Other Information

Item 6. Exhibits

Signature

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Bank of America Corporation (the “Corporation”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Corporation’s current expectations, plans or forecasts of its future results, revenues, liquidity, net interest income, provision for credit losses, expenses, efficiency ratio, capital measures, strategy, deposits, assets, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Corporation’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Corporation’s 2023 Annual Report on Form 10-K and in any of the Corporation’s subsequent Securities and Exchange Commission filings: the Corporation’s potential judgments, orders, settlements, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions, including as a result of our participation in and execution of government programs related to the Coronavirus Disease 2019 (COVID-19) pandemic, such as the processing of unemployment benefits for California and certain other states; the possibility that the Corporation's future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the possibility that the Corporation could face increased claims from one or more parties involved in mortgage securitizations; the Corporation's ability to resolve representations and warranties repurchase and related claims; the risks related to the discontinuation of reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Corporation’s exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, inflation, currency exchange rates, economic conditions, trade policies and tensions, including tariffs, and potential geopolitical instability; the impact of the interest rate, inflationary, macroeconomic, banking and regulatory environment on the Corporation’s assets, business,

financial condition and results of operations; the impact of adverse developments affecting the U.S. or global banking industry, including bank failures and liquidity concerns, resulting in worsening economic and market volatility, and regulatory responses thereto; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on economic conditions and our business; potential losses related to the Corporation’s concentration of credit risk; the Corporation’s ability to achieve its expense targets and expectations regarding revenue, net interest income, provision for credit losses, net charge-offs, effective tax rate, loan growth or other projections; adverse changes to the Corporation’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Corporation’s assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements, stress capital buffer requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Corporation’s capital plans; the effect of changes in or interpretations of income tax laws and regulations; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including, but not limited to, recovery and resolution planning requirements, Federal Deposit Insurance Corporation assessments, the Volcker Rule, fiduciary standards, derivatives regulations and potential changes to loss allocations between financial institutions and customers, including for losses incurred from the use of our products and services, including electronic payments and payment of checks, that were authorized by the customer but induced by fraud; the impact of failures or disruptions in or breaches of the Corporation’s operations or information systems, or those of third parties, including as a result of cybersecurity incidents; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learning; the risks related to the transition and physical impacts of climate change; our ability to achieve environmental, social and governance goals and commitments or the impact of any changes in the Corporation’s sustainability strategy or commitments generally; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary or regulatory policy; the emergence or continuation of widespread health emergencies or pandemics; the impact of natural disasters, extreme weather events, military conflicts (including the

Bank of America 2

Russia/Ukraine conflict, the conflict in the Middle East, the possible expansion of such conflicts and potential geopolitical consequences), terrorism or other geopolitical events; and other matters.

Forward-looking statements speak only as of the date they are made, and the Corporation undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

Notes to the Consolidated Financial Statements referred to in Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) are incorporated by reference into the MD&A. Certain prior-period amounts have been reclassified to conform to current-period presentation. Throughout the MD&A, the Corporation uses certain acronyms and abbreviations which are defined in the Glossary.

Executive Summary

Business Overview

The Corporation is a Delaware corporation, a bank holding company (BHC) and a financial holding company. When used in this report, “Bank of America,” “the Corporation,” “we,” “us” and “our” may refer to Bank of America Corporation individually, Bank of America Corporation and its subsidiaries, or certain of Bank of America Corporation’s subsidiaries or affiliates. Our principal executive offices are located in Charlotte, North Carolina. Through our various bank and nonbank subsidiaries throughout the U.S. and in international markets, we provide a diversified range of banking and nonbank financial services and products through four business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets, with the remaining operations recorded in All Other. We operate our banking activities primarily under the Bank of America, National Association (Bank of America, N.A. or BANA) charter. At March 31, 2024, the Corporation had $3.3 trillion in assets and a headcount of approximately 212,000 employees.

As of March 31, 2024, we served clients through operations across the U.S., its territories and more than 35 countries. Our retail banking footprint covers all major markets in the U.S., and we serve approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs, and leading digital banking platforms (www.bankofamerica.com) with approximately 47 million active users, including approximately 39 million active mobile users. We offer industry-leading support to approximately four million small business households. Our GWIM businesses, with client balances of $4.0 trillion, provide tailored solutions to meet client needs through a full set of investment management, brokerage, banking, trust and retirement products. We are a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world.

The Corporation’s website is www.bankofamerica.com, and the Investor Relations portion of our website is https://investor.bankofamerica.com. We use our website to distribute company information, including as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. We routinely post and make accessible financial and other information, including environmental, social and governance (ESG) information, regarding the Corporation on our website. Investors should monitor our website, including the Investor Relations portion, in

addition to our press releases, U.S. Securities and Exchange Commission (SEC) filings, public conference calls and webcasts. Notwithstanding the foregoing, the information contained on our website as referenced in this paragraph is not incorporated by reference into this Quarterly Report on Form 10-Q.

Recent Developments

Capital Management

On April 25, 2024, the Corporation’s Board of Directors (the Board) declared a quarterly common stock dividend of $0.24 per share, payable on June 28, 2024 to shareholders of record as of June 7, 2024.

For more information on our capital resources, see Capital Management on page 16.

FDIC Special Assessment

During the first quarter of 2024, the Federal Deposit Insurance Corporation (FDIC) increased its estimate of the loss to the Deposit Insurance Fund (DIF) arising from the closures of Silicon Valley Bank and Signature Bank. The estimated loss to the DIF will be recovered through the collection of a special assessment from certain insured depository institutions. Accordingly, the Corporation recorded a pretax charge of $700 million in noninterest expense to increase the accrual for its estimated share of the special assessment. For more information, see Note 10 – Commitments and Contingencies to the Consolidated Financial Statements.

Financial Highlights



Table 1	Summary Income Statement and Selected Financial Data
		Three Months Ended March 31
(Dollars in millions, except per share information)			2024			2023
Income statement
Net interest income			$	14,032		$	14,448
Noninterest income			11,786			11,810
Total revenue, net of interest expense			25,818			26,258
Provision for credit losses			1,319			931
Noninterest expense			17,237			16,238
Income before income taxes			7,262			9,089
Income tax expense			588			928
Net income			6,674			8,161
Preferred stock dividends			532			505
Net income applicable to common shareholders			$	6,142		$	7,656
Per common share information
Earnings			$	0.77		$	0.95
Diluted earnings			0.76			0.94
Dividends paid			0.24			0.22
Performance ratios
Return on average assets (1)			0.83		%	1.07		%
Return on average common shareholders’ equity (1)			9.35			12.48
Return on average tangible common shareholders’ equity (2)			12.73			17.38
Efficiency ratio (1)			66.77			61.84
			March 31 2024			December 31 2023

Balance sheet
Total loans and leases			$	1,049,156		$	1,053,732
Total assets			3,273,803			3,180,151
Total deposits			1,946,496			1,923,827
Total liabilities			2,980,251			2,888,505
Total common shareholders’ equity			265,155			263,249
Total shareholders’ equity			293,552			291,646

(1)For definitions, see Key Metrics on page 91.

(2)Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to the most directly comparable financial measures defined by accounting principles generally accepted in the United States of America (GAAP), see Non-GAAP Reconciliations on page 42.

3 Bank of America

Net income was $6.7 billion, or $0.76 per diluted share, for the three months ended March 31, 2024 compared to $8.2 billion, or $0.94 per diluted share, for the same period in 2023. The decrease in net income was due to higher noninterest expense, lower revenue and higher provision for credit losses.

Total assets increased $93.7 billion from December 31, 2023 to $3.3 trillion primarily driven by higher trading account assets and securities borrowed or purchased under agreements to resell to support Global Markets client activity, as well as higher debt securities.

Total liabilities increased $91.7 billion from December 31, 2023 to $3.0 trillion primarily driven by higher securities loaned or sold under agreements to repurchase and trading account liabilities to support Global Markets client activity, as well as higher deposits due to time deposit growth and seasonal deposit inflows.

Shareholders’ equity increased $1.9 billion from December 31, 2023 primarily due to net income, partially offset by returns of capital to shareholders through common stock repurchases and common and preferred stock dividends.

Net Interest Income

Net interest income decreased $416 million to $14.0 billion for the three months ended March 31, 2024 compared to the same period in 2023. Net interest yield on a fully taxable-equivalent (FTE) basis decreased 21 basis points (bps) to 1.99 percent. The decreases were primarily driven by higher deposits and funding costs, partially offset by higher asset yields, higher net interest income related to Global Markets activity and modest loan growth. For more information on net interest yield and FTE basis, see Supplemental Financial Data on page 5, and for more information on interest rate risk management, see Interest Rate Risk Management for the Banking Book on page 39.

Noninterest Income



Table 2	Noninterest Income

		Three Months Ended March 31
(Dollars in millions)			2024		2023
Fees and commissions:
Card income			$	1,463	$	1,469
Service charges			1,442		1,410
Investment and brokerage services			4,187		3,852
Investment banking fees			1,568		1,163
Total fees and commissions			8,660		7,894
Market making and similar activities			3,888		4,712


Other income			(762)		(796)

Total noninterest income			$	11,786	$	11,810

Noninterest income decreased $24 million to $11.8 billion for the three months ended March 31, 2024 compared to the same period in 2023. The following highlights the significant changes.

● Service charges increased $32 million primarily driven by higher treasury service charges.

● Investment and brokerage services increased $335 million primarily driven by higher asset management fees due to higher average equity market valuations and positive assets under management (AUM) flows, partially offset by the impact of lower AUM pricing.

● Investment banking fees increased $405 million primarily due to higher debt and equity issuance fees.

● Market making and similar activities decreased $824 million primarily driven by lower trading revenue from macro products in Fixed Income, Currencies and Commodities (FICC).

● Other income increased $34 million primarily due to losses on sales of available-for-sale (AFS) debt securities in the prior year, largely offset by higher partnership losses on tax credit investments in the current year.

Provision for Credit Losses

The provision for credit losses increased $388 million to $1.3 billion for the three months ended March 31, 2024 compared to the same period in 2023. The provision for credit losses for the current-year period was primarily driven by credit card loans and the commercial real estate office portfolio, partially offset by an improved macroeconomic outlook. For more information on the provision for credit losses, see Allowance for Credit Losses on page 35.

Noninterest Expense



Table 3	Noninterest Expense

		Three Months Ended March 31
(Dollars in millions)			2024		2023
Compensation and benefits			$	10,195	$	9,918
Occupancy and equipment			1,811		1,799
Information processing and communications			1,800		1,697
Product delivery and transaction related			851		890
Marketing			455		458
Professional fees			548		537
Other general operating			1,577		939
Total noninterest expense			$	17,237	$	16,238

Noninterest expense increased $1.0 billion to $17.2 billion for the three months ended March 31, 2024 compared to the same period in 2023. The increase was primarily driven by the additional accrual of $700 million for the FDIC special assessment, as well as higher revenue-related compensation.

Income Tax Expense



Table 4	Income Tax Expense

		Three Months Ended March 31
(Dollars in millions)			2024			2023
Income before income taxes			$	7,262		$	9,089
Income tax expense			588			928
Effective tax rate			8.1		%	10.2		%

The effective tax rates for the three months ended March 31, 2024 and 2023 were primarily driven by our recurring tax preference benefits that mainly consist of tax credits from investments in affordable housing and renewable energy. Also included in the effective tax rate for the first quarter of 2024 was a discrete tax benefit from the $700 million charge recorded for the FDIC special assessment. Absent recurring tax credits and discrete tax benefits, the effective tax rates would have been approximately 26 percent for both periods.

Bank of America 4

Supplemental Financial Data

Non-GAAP Financial Measures

In this Quarterly Report on Form 10-Q, we present certain non-GAAP financial measures. Non-GAAP financial measures exclude certain items or otherwise include components that differ from the most directly comparable measures calculated in accordance with GAAP. Non-GAAP financial measures are provided as additional useful information to assess our financial condition, results of operations (including period-to-period operating performance) or compliance with prospective regulatory requirements. These non-GAAP financial measures are not intended as a substitute for GAAP financial measures and may not be defined or calculated the same way as non-GAAP financial measures used by other companies.

When presented on a consolidated basis, we view net interest income on an FTE basis as a non-GAAP financial measure. To derive the FTE basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, we use the federal statutory tax rate of 21 percent and a representative state tax rate. Net interest yield, which measures the basis points we earn over the cost of funds, utilizes net interest income on an FTE basis. We believe that presentation of these items on an FTE basis allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices.

We may present certain key performance indicators and ratios excluding certain items (e.g., debit valuation adjustment (DVA) gains (losses)), which result in non-GAAP financial measures. We believe that the presentation of measures that exclude these items is useful because such measures provide additional information to assess the underlying operational performance and trends of our businesses and to allow better comparison of period-to-period operating performance.

We also evaluate our business based on certain ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents shareholders’ equity or common shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights (MSRs)), net of related deferred tax liabilities (“adjusted” shareholders’ equity or common shareholders’ equity). These measures are used to evaluate our use of equity. In addition, profitability, relationship and investment models use both return on average tangible

common shareholders’ equity and return on average tangible shareholders’ equity as key measures to support our overall growth objectives. These ratios are:

● Return on average tangible common shareholders’ equity measures our 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 tangible assets.

● Return on average tangible shareholders’ equity measures our net income as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total tangible assets.

● Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding.

We believe ratios utilizing tangible equity provide additional useful information because they present measures of those assets that can generate income. Tangible book value per common share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock.

The aforementioned supplemental data and performance measures are presented in Table 5 on page 6.

For more information on the reconciliation of these non-GAAP financial measures to the corresponding GAAP financial measures, see Non-GAAP Reconciliations on page 42.

Key Performance Indicators

We present certain key financial and nonfinancial performance indicators (key performance indicators) that management uses when assessing our consolidated and/or segment results. We believe they are useful to investors because they provide additional information about our underlying operational performance and trends. These key performance indicators (KPIs) may not be defined or calculated in the same way as similar KPIs used by other companies. For information on how these metrics are defined, see Key Metrics on page 91.

Our consolidated key performance indicators, which include various equity and credit metrics, are presented in Table 1 on page 3 and Table 5 on page 6.

For information on key segment performance metrics, see Business Segment Operations on page 8.

5 Bank of America




Table 5	Selected Quarterly Financial Data

		2024 Quarter			2023 Quarters
(In millions, except per share information)		First			Fourth			Third			Second			First
Income statement
Net interest income		$	14,032		$	13,946		$	14,379		$	14,158		$	14,448
Noninterest income		11,786			8,013			10,788			11,039			11,810
Total revenue, net of interest expense		25,818			21,959			25,167			25,197			26,258
Provision for credit losses		1,319			1,104			1,234			1,125			931
Noninterest expense		17,237			17,731			15,838			16,038			16,238
Income before income taxes		7,262			3,124			8,095			8,034			9,089
Income tax expense		588			(20)			293			626			928
Net income		6,674			3,144			7,802			7,408			8,161
Net income applicable to common shareholders		6,142			2,838			7,270			7,102			7,656
Average common shares issued and outstanding		7,968.2			7,990.9			8,017.1			8,040.9			8,065.9
Average diluted common shares issued and outstanding		8,031.4			8,062.5			8,075.9			8,080.7			8,182.3
Performance ratios
Return on average assets (1)		0.83		%	0.39		%	0.99		%	0.94		%	1.07		%
Four-quarter trailing return on average assets (2)		0.78			0.84			0.98			0.96			0.92
Return on average common shareholders’ equity (1)		9.35			4.33			11.24			11.21			12.48
Return on average tangible common shareholders’ equity (3)		12.73			5.92			15.47			15.49			17.38
Return on average shareholders’ equity (1)		9.18			4.32			10.86			10.52			11.94
Return on average tangible shareholders’ equity (3)		12.07			5.71			14.41			14.00			15.98
Total ending equity to total ending assets		8.97			9.17			9.10			9.07			8.77
Common equity ratio (1)		8.10			8.28			8.20			8.16			7.88
Total average equity to total average assets		9.01			8.98			9.11			8.89			8.95
Dividend payout (1)		31.11			67.42			26.39			24.88			23.17
Per common share data
Earnings		$	0.77		$	0.36		$	0.91		$	0.88		$	0.95
Diluted earnings		0.76			0.35			0.90			0.88			0.94
Dividends paid		0.24			0.24			0.24			0.22			0.22
Book value (1)		33.71			33.34			32.65			32.05			31.58
Tangible book value (3)		24.79			24.46			23.79			23.23			22.78




Market capitalization		$	298,312		$	265,840		$	216,942		$	228,188		$	228,012
Average balance sheet
Total loans and leases		$	1,047,890		$	1,050,705		$	1,046,254		$	1,046,608		$	1,041,352
Total assets		3,247,159			3,213,159			3,128,466			3,175,358			3,096,058
Total deposits		1,907,462			1,905,011			1,876,153			1,875,353			1,893,649
Long-term debt		254,782			256,262			245,819			248,480			244,759
Common shareholders’ equity		264,114			260,221			256,578			254,028			248,855
Total shareholders’ equity		292,511			288,618			284,975			282,425			277,252
Asset quality
Allowance for credit losses (4)		$	14,371		$	14,551		$	14,640		$	14,338		$	13,951
Nonperforming loans, leases and foreclosed properties (5)		6,034			5,630			4,993			4,274			4,083
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)		1.26		%	1.27		%	1.27		%	1.24		%	1.20		%
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)		225			243			275			314			319
Net charge-offs		$	1,498		$	1,192		$	931		$	869		$	807
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)		0.58		%	0.45		%	0.35		%	0.33		%	0.32		%







Capital ratios at period end (6)

Common equity tier 1 capital		11.9		%	11.8		%	11.9		%	11.6		%	11.4		%

Tier 1 capital		13.6			13.5			13.6			13.3			13.1
Total capital		15.2			15.2			15.4			15.1			15.0
Tier 1 leverage		7.1			7.1			7.3			7.1			7.1
Supplementary leverage ratio		6.0			6.1			6.2			6.0			6.0
Tangible equity (3)		7.0			7.1			7.0			7.0			6.7
Tangible common equity (3)		6.1			6.2			6.1			6.1			5.8
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets		28.7		%	29.0		%	29.3		%	28.8		%	28.8		%
Total loss-absorbing capacity to supplementary leverage exposure		12.8			13.0			13.3			13.0			13.1
Eligible long-term debt to risk-weighted assets		14.2			14.5			14.8			14.6			14.8
Eligible long-term debt to supplementary leverage exposure		6.3			6.5			6.7			6.6			6.7

(1)For definitions, see Key Metrics on page 91.

(2)Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.

(3)Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and corresponding reconciliations to GAAP financial measures, see Supplemental Financial Data on page 5 and Non-GAAP Reconciliations on page 42.

(4)Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.

(5)Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 28 and corresponding Table 24 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 32 and corresponding Table 30.

(6)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 16.

Bank of America 6



Table 6	Quarterly Average Balances and Interest Rates - FTE Basis

		Average Balance		Interest Income/ Expense (1)		Yield/ Rate		Average Balance		Interest Income/ Expense (1)		Yield/ Rate
(Dollars in millions)		First Quarter 2024						First Quarter 2023
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	346,463	$	4,531	5.26	%	$	202,700	$	1,999	4.00	%
Time deposits placed and other short-term investments		9,728		116		4.80		10,581		108		4.16
Federal funds sold and securities borrowed or purchased under agreements to resell		304,821		5,175		6.83		287,532		3,712		5.24
Trading account assets		202,461		2,482		4.93		183,657		2,040		4.50
Debt securities		842,483		6,162		2.92		851,177		5,485		2.58
Loans and leases (2)
Residential mortgage		227,748		1,803		3.17		229,275		1,684		2.94
Home equity		25,522		390		6.14		26,513		317		4.84
Credit card		99,815		2,786		11.22		91,775		2,426		10.72

Direct/Indirect and other consumer		103,371		1,399		5.45		105,657		1,186		4.55

Total consumer		456,456		6,378		5.61		453,220		5,613		5.00
U.S. commercial		379,566		5,236		5.55		376,852		4,471		4.81
Non-U.S. commercial		125,024		2,170		6.98		127,003		1,778		5.68
Commercial real estate (3)		71,986		1,311		7.33		70,591		1,144		6.57
Commercial lease financing		14,858		200		5.41		13,686		147		4.33
Total commercial		591,434		8,917		6.06		588,132		7,540		5.20
Total loans and leases		1,047,890		15,295		5.87		1,041,352		13,153		5.11
Other earning assets		106,737		2,682		10.10		94,427		2,292		9.82
Total earning assets		2,860,583		36,443		5.12		2,671,426		28,789		4.36
Cash and due from banks		24,185						27,784
Other assets, less allowance for loan and lease losses		362,391						396,848
Total assets		$	3,247,159					$	3,096,058
Interest-bearing liabilities
U.S. interest-bearing deposits

Demand and money market deposits		$	956,716	$	5,012	2.11	%	$	975,085	$	2,790	1.16	%

Time and savings deposits		325,765		3,059		3.78		196,984		919		1.89
Total U.S. interest-bearing deposits		1,282,481		8,071		2.53		1,172,069		3,709		1.28




Non-U.S. interest-bearing deposits		104,373		1,067		4.11		91,603		605		2.68
Total interest-bearing deposits		1,386,854		9,138		2.65		1,263,672		4,314		1.38
Federal funds purchased and securities loaned or sold under agreements to repurchase		350,507		6,026		6.92		256,015		3,551		5.63
Short-term borrowings and other interest-bearing liabilities		141,091		2,509		7.15		156,887		2,629		6.79
Trading account liabilities		51,757		546		4.24		43,953		504		4.65
Long-term debt		254,782		4,034		6.35		244,759		3,209		5.28
Total interest-bearing liabilities		2,184,991		22,253		4.10		1,965,286		14,207		2.93
Noninterest-bearing sources
Noninterest-bearing deposits		520,608						629,977
Other liabilities (4)		249,049						223,543
Shareholders’ equity		292,511						277,252
Total liabilities and shareholders’ equity		$	3,247,159					$	3,096,058
Net interest spread						1.02	%					1.43	%
Impact of noninterest-bearing sources						0.97						0.77
Net interest income/yield on earning assets (5)				$	14,190	1.99	%			$	14,582	2.20	%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 39.

(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 U.S. commercial real estate loans of $66.2 billion and $65.5 billion, and non-U.S. commercial real estate loans of $5.8 billion and $5.1 billion for the first quarter of 2024 and 2023.

(4)Includes $44.1 billion and $37.3 billion of structured notes and liabilities for the first quarter of 2024 and 2023.

(5)Net interest income includes FTE adjustments of $158 million and $134 million for the first quarter of 2024 and 2023.

7 Bank of America

Business Segment Operations

Segment Description and Basis of Presentation

We report our results of operations through four business segments: Consumer Banking, GWIM, Global Banking and Global Markets, with the remaining operations recorded in All Other. We manage our segments and report their results on an FTE basis. For more information, see Business Segment Operations in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

We periodically review capital allocated to our businesses and allocate capital annually during the strategic and capital planning processes. We utilize a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. The capital allocated to the business segments is referred to as allocated capital. Allocated equity in the reporting units is comprised of allocated capital plus capital

for the portion of goodwill and intangibles specifically assigned to the reporting unit. For more information, including the definition of a reporting unit, see Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements.

For more information on our presentation of financial information on an FTE basis, see Supplemental Financial Data on page 5, and for reconciliations to consolidated total revenue, net income and period-end total assets, see Note 17 – Business Segment Information to the Consolidated Financial Statements.

Key Performance Indicators

We present certain key financial and nonfinancial performance indicators that management uses when evaluating segment results. We believe they are useful to investors because they provide additional information about our segments’ operational performance, client trends and business growth.

Consumer Banking



	Deposits						Consumer Lending						Total Consumer Banking
	Three Months Ended March 31
(Dollars in millions)	2024			2023			2024			2023			2024			2023			% Change
Net interest income	$	5,269		$	5,816		$	2,928		$	2,777		$	8,197		$	8,593		(5)	%
Noninterest income:
Card income	(10)			(10)			1,282			1,284			1,272			1,274			—
Service charges	577			598			1			1			578			599			(4)
All other income	102			197			17			43			119			240			(50)
Total noninterest income	669			785			1,300			1,328			1,969			2,113			(7)
Total revenue, net of interest expense	5,938			6,601			4,228			4,105			10,166			10,706			(5)

Provision for credit losses	76			183			1,074			906			1,150			1,089			6
Noninterest expense	3,378			3,415			2,097			2,058			5,475			5,473			—
Income before income taxes	2,484			3,003			1,057			1,141			3,541			4,144			(15)
Income tax expense	621			751			264			285			885			1,036			(15)
Net income	$	1,863		$	2,252		$	793		$	856		$	2,656		$	3,108		(15)

Effective tax rate (1)													25.0		%	25.0		%

Net interest yield	2.23		%	2.31		%	3.81		%	3.76		%	3.31		%	3.27		%
Return on average allocated capital	55			67			11			12			25			30
Efficiency ratio	56.89			51.76			49.60			50.10			53.86			51.12

Balance Sheet


	Three Months Ended March 31
Average	2024			2023			2024			2023			2024			2023			% Change
Total loans and leases	$	4,241		$	4,119		$	308,797		$	299,653		$	313,038		$	303,772		3	%
Total earning assets (2)	950,194			1,022,445			308,914			299,794			995,556			1,065,202			(7)
Total assets (2)	982,857			1,056,007			313,795			306,275			1,033,101			1,105,245			(7)
Total deposits	947,843			1,021,374			4,623			4,868			952,466			1,026,242			(7)
Allocated capital	13,700			13,700			29,550			28,300			43,250			42,000			3


Period end	March 31 2024			December 31 2023			March 31 2024			December 31 2023			March 31 2024			December 31 2023			% Change
Total loans and leases	$	4,260		$	4,218		$	307,465		$	310,901		$	311,725		$	315,119		(1)	%
Total earning assets (2)	976,167			965,088			307,634			311,008			1,022,320			1,009,360			1
Total assets (2)	1,008,366			999,372			313,598			317,194			1,060,482			1,049,830			1
Total deposits	972,906			964,136			5,855			5,436			978,761			969,572			1

(1)Estimated at the segment level only.

(2)In segments and businesses where the total of liabilities and equity exceeds assets, we allocate 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.

Consumer Banking, comprised of Deposits and Consumer Lending, offers a diversified range of credit, banking and investment products and services to consumers and small businesses. For more information about Consumer Banking, see Business Segment Operations in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Consumer Banking Results

Net income for Consumer Banking decreased $452 million to $2.7 billion for the three months ended March 31, 2024 compared to the same period in 2023 largely due to lower revenue. Net interest income decreased $396 million to $8.2 billion primarily driven by lower deposit balances, partially offset by higher loan balances. Noninterest income decreased $144 million to $2.0 billion primarily driven by lower other income

Bank of America 8

driven by the allocation of asset and liability management (ALM) results.

The provision for credit losses increased $61 million to $1.2 billion primarily driven by credit card asset quality. Noninterest expense was $5.5 billion, unchanged from the same period a year ago.

The return on average allocated capital was 25 percent, down from 30 percent, due to an increase in allocated capital and lower net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 8.

Deposits

Net income for Deposits decreased $389 million to $1.9 billion primarily due to lower revenue. Net interest income decreased $547 million to $5.3 billion primarily driven by lower deposit balances. Noninterest income decreased $116 million to $669 million primarily due to lower other income driven by the allocation of ALM results.

Noninterest expense decreased $37 million to $3.4 billion, relatively unchanged from the same period a year ago.

Average deposits decreased $73.5 billion to $947.8 billion primarily due to net outflows of $73.7 billion in money market savings and $32.1 billion in checking, partially offset by growth in time deposits of $43.5 billion.

The table below provides key performance indicators for Deposits. Management uses these metrics, and we believe they are useful to investors because they provide additional information to evaluate our deposit profitability and digital/ mobile trends.



Key Statistics – Deposits

	Three Months Ended March 31
		2024		2023
Total deposit spreads (excludes noninterest costs) (1)		2.69%		2.54%

Period end
Consumer investment assets (in millions) (2)		$	456,391	$	354,892
Active digital banking users (in thousands) (3)		47,079		44,962
Active mobile banking users (in thousands) (4)		38,544		36,322
Financial centers		3,804		3,892
ATMs		15,028		15,407

(1)Includes deposits held in Consumer Lending.

(2)Includes client brokerage assets, deposit sweep balances, Bank of America, N.A. brokered CDs and AUM in Consumer Banking.

(3)Represents mobile and/or online active users over the past 90 days.

(4)Represents mobile active users over the past 90 days.

Consumer investment assets increased $101.5 billion to $456.4 billion driven by market performance and positive net client flows. Active mobile banking users increased approximately two million, reflecting continuing changes in our clients’ banking preferences. We had a net decrease of 88 financial centers and 379 ATMs as we continue to optimize our consumer banking network.

Consumer Lending

Net income for Consumer Lending decreased $63 million to $793 million primarily due to an increase in provision for credit losses, partially offset by higher revenue. Net interest income

increased $151 million to $2.9 billion primarily due to higher loan balances. Noninterest income decreased $28 million to $1.3 billion, relatively unchanged from the same period a year ago.

The provision for credit losses increased $168 million to $1.1 billion primarily driven by credit card asset quality. Noninterest expense increased $39 million to $2.1 billion, relatively unchanged from the same period a year ago.

Average loans increased $9.1 billion to $308.8 billion primarily driven by an increase in credit card loans.

The table below provides key performance indicators for Consumer Lending. Management uses these metrics, and we believe they are useful to investors because they provide additional information about loan growth and profitability.



Key Statistics – Consumer Lending

	Three Months Ended March 31
(Dollars in millions)		2024			2023
Total credit card (1)
Gross interest yield (2)		12.24		%	11.85		%
Risk-adjusted margin (3)		6.81			8.69
New accounts (in thousands)		998			1,187
Purchase volumes		$	87,011		$	85,544
Debit card purchase volumes		$	132,407		$	124,376

(1)Includes GWIM's credit card portfolio.

(2)Calculated as the effective annual percentage rate divided by average loans.

(3)Calculated as the difference between total revenue, net of interest expense, and net credit losses divided by average loans.

During the three months ended March 31, 2024, the total risk-adjusted margin decreased 188 bps compared to the same period in 2023 primarily driven by higher net credit losses, lower net fee income and lower interest margin. Total credit card purchase volumes increased $1.5 billion to $87.0 billion and debit card purchase volumes increased $8.0 billion to $132.4 billion, reflecting higher levels of consumer spending.



Key Statistics – Loan Production (1)

	Three Months Ended March 31
(Dollars in millions)		2024		2023
Consumer Banking:
First mortgage		$	1,688	$	1,956
Home equity		1,600		2,183
Total (2):
First mortgage		$	3,443	$	3,937
Home equity		1,891		2,596

(1)The 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.

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

First mortgage loan originations for Consumer Banking and the total Corporation decreased $268 million and $494 million during the three months ended March 31, 2024 compared to the same period in 2023 primarily driven by lower demand.

Home equity production in Consumer Banking and the total Corporation decreased $583 million and $705 million during the three months ended March 31, 2024 primarily driven by lower demand.

9 Bank of America

Global Wealth & Investment Management



	Three Months Ended March 31
(Dollars in millions)		2024			2023			% Change
Net interest income		$	1,814		$	1,876		(3)	%
Noninterest income:
Investment and brokerage services		3,600			3,238			11
All other income		177			201			(12)
Total noninterest income		3,777			3,439			10
Total revenue, net of interest expense		5,591			5,315			5

Provision for credit losses		(13)			25			n/m
Noninterest expense		4,264			4,067			5
Income before income taxes		1,340			1,223			10
Income tax expense		335			306			9
Net income		$	1,005		$	917		10

Effective tax rate		25.0		%	25.0		%

Net interest yield		2.23			2.20
Return on average allocated capital		22			20

Efficiency ratio		76.27			76.53

Balance Sheet

	Three Months Ended March 31
Average		2024			2023			% Change
Total loans and leases		$	218,616		$	221,448		(1)	%
Total earning assets		327,692			346,384			(5)
Total assets		341,119			359,164			(5)
Total deposits		297,373			314,019			(5)
Allocated capital		18,500			18,500			—

Period end		March 31 2024			December 31 2023			% Change


Total loans and leases		$	219,844		$	219,657		—	%
Total earning assets		329,515			330,653			—
Total assets		343,718			344,626			—
Total deposits		298,039			299,657			(1)

n/m = not meaningful

GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank. For more information about GWIM, see Business Segment Operations in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Net income for GWIM increased $88 million to $1.0 billion for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to higher revenue, partially offset by higher noninterest expense. The operating margin was 24 percent compared to 23 percent a year ago.

Net interest income decreased $62 million to $1.8 billion primarily driven by an increase in the deposit rate paid and lower average deposit balances.

Noninterest income, which primarily includes investment and brokerage services income, increased $338 million to $3.8 billion. The increase was primarily driven by higher asset management fees due to higher average equity market valuations and positive AUM flows, partially offset by the impact of lower AUM pricing.

Noninterest expense increased $197 million to $4.3 billion primarily due to higher revenue-related incentives.

The return on average allocated capital was 22 percent, up from 20 percent, due to higher net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 8.

Average loans of $218.6 billion remained relatively unchanged compared to the same period in 2023. Average deposits decreased $16.6 billion to $297.4 billion primarily driven by clients moving deposits to higher yielding investment cash alternatives, including offerings on our investment and brokerage platforms.

Merrill Wealth Management revenue of $4.6 billion increased six percent primarily driven by higher asset management fees due to higher average equity market valuations and positive AUM flows, partially offset by the impact of lower AUM pricing.

Bank of America Private Bank revenue of $944 million increased three percent primarily driven by higher asset management fees due to higher average market valuations and the impact of positive AUM flows.

Bank of America 10



Key Indicators and Metrics

	Three Months Ended March 31
(Dollars in millions)		2024		2023
Revenue by Business
Merrill Wealth Management		$	4,647	$	4,397
Bank of America Private Bank		944		918

Total revenue, net of interest expense		$	5,591	$	5,315

Client Balances by Business, at period end
Merrill Wealth Management		$	3,339,693	$	2,952,681
Bank of America Private Bank		633,697		568,925

Total client balances		$	3,973,390	$	3,521,606

Client Balances by Type, at period end


Assets under management		$	1,730,005	$	1,467,242
Brokerage and other assets		1,758,642		1,571,409

Deposits		298,039		301,471
Loans and leases (1)		222,528		220,633
Less: Managed deposits in assets under management		(35,824)		(39,149)
Total client balances		$	3,973,390	$	3,521,606

Assets Under Management Rollforward
Assets under management, beginning of period		$	1,617,740	$	1,401,474


Net client flows		24,655		15,262
Market valuation/other		87,610		50,506
Total assets under management, end of period		$	1,730,005	$	1,467,242

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

Client Balances

Client balances increased $451.8 billion, or 13 percent, to $4.0 trillion at March 31, 2024 compared to March 31, 2023. The increase in client balances was primarily due to the impact of higher end-of-period market valuations and positive net client flows.

11 Bank of America

Global Banking



	Three Months Ended March 31
(Dollars in millions)		2024			2023			% Change
Net interest income		$	3,460		$	3,907		(11)	%
Noninterest income:
Service charges		750			714			5
Investment banking fees		850			668			27
All other income		920			914			1
Total noninterest income		2,520			2,296			10
Total revenue, net of interest expense		5,980			6,203			(4)

Provision for credit losses		229			(237)			n/m
Noninterest expense		3,012			2,940			2
Income before income taxes		2,739			3,500			(22)
Income tax expense		753			945			(20)
Net income		$	1,986		$	2,555		(22)

Effective tax rate		27.5		%	27.0		%

Net interest yield		2.50			3.03
Return on average allocated capital		16			21
Efficiency ratio		50.37			47.41

Balance Sheet

	Three Months Ended March 31
Average		2024			2023			% Change

Total loans and leases		$	373,608		$	381,009		(2)	%
Total earning assets		555,957			522,374			6
Total assets		623,073			588,886			6
Total deposits		525,699			492,577			7
Allocated capital		49,250			49,250			—

Period end		March 31 2024			December 31 2023			% Change

Total loans and leases		$	373,403		$	373,891		—	%
Total earning assets		554,253			552,453			—
Total assets		623,204			621,751			—
Total deposits		527,113			527,060			—

n/m = not meaningful

Global Banking, which includes Global Corporate Banking, Global Commercial Banking, Business Banking and Global Investment Banking, provides a wide range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through our network of global offices and client relationship teams. For more information about Global Banking, see Business Segment Operations in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Net income for Global Banking decreased $569 million to $2.0 billion for the three months ended March 31, 2024 compared to the same period in 2023 driven by higher provision for credit losses, lower revenue and higher noninterest expense.

Net interest income decreased $447 million to $3.5 billion primarily due to the impact of interest rates, partially offset by the benefit of higher average deposit balances.

Noninterest income increased $224 million to $2.5 billion driven by higher investment banking fees and higher treasury service charges.

The provision for credit losses increased $466 million to $229 million primarily driven by commercial real estate office exposure in the current-year period compared to a benefit in the prior-year period due to certain improved macroeconomic conditions.

Noninterest expense increased $72 million to $3.0 billion primarily due to continued investments in the business, including technology.

The return on average allocated capital was 16 percent, down from 21 percent, due to lower net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 8.

Global Corporate, Global Commercial and Business Banking

The following table and discussion present a summary of the results, which exclude certain investment banking and other activities in Global Banking.

Bank of America 12



Global Corporate, Global Commercial and Business Banking














	Global Corporate Banking				Global Commercial Banking				Business Banking				Total
	Three Months Ended March 31
(Dollars in millions)	2024		2023		2024		2023		2024		2023		2024		2023
Revenue
Business Lending	$	1,065	$	1,034	$	1,280	$	1,233	$	59	$	67	$	2,404	$	2,334
Global Transaction Services	1,335		1,549		970		1,129		361		387		2,666		3,065
Total revenue, net of interest expense	$	2,400	$	2,583	$	2,250	$	2,362	$	420	$	454	$	5,070	$	5,399

Balance Sheet

Average
Total loans and leases	$	165,040	$	175,293	$	196,276	$	192,796	$	12,132	$	12,618	$	373,448	$	380,707
Total deposits	290,392		259,177		185,727		182,614		49,578		50,795		525,697		492,586

Period end

Total loans and leases	$	164,161	$	175,777	$	196,850	$	194,889	$	12,262	$	12,580	$	373,273	$	383,246
Total deposits	291,066		263,131		186,051		181,315		49,992		51,511		527,109		495,957

Business Lending revenue increased $70 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily driven by tax credit activity in affordable housing and renewable energy.

Global Transaction Services revenue decreased $399 million for the three months ended March 31, 2024 primarily driven by the impact of interest rates, partially offset by the benefit of higher average deposit balances and higher treasury service charges.

Average loans and leases decreased two percent for the three months ended March 31, 2024 due to lower client demand. Average deposits increased seven percent due to growth in both domestic and international balances.

Global Investment Banking

Client teams and product specialists underwrite and distribute debt, equity and loan products, and provide advisory services and tailored risk management solutions. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking originates certain deal-related transactions with our corporate and commercial clients that are executed and distributed by Global Markets. To provide a complete discussion of our consolidated investment banking fees, the table below presents total Corporation investment banking fees and the portion attributable to Global Banking.



Investment Banking Fees

		Global Banking	Total Corporation
	Three Months Ended March 31

(Dollars in millions)			2024		2023		2024		2023
Products
Advisory			$	317	$	313	$	373	$	363
Debt issuance			383		290		885		644
Equity issuance			150		65		363		168
Gross investment banking fees			850		668		1,621		1,175
Self-led deals			(13)		(4)		(53)		(12)
Total investment banking fees			$	837	$	664	$	1,568	$	1,163

Total Corporation investment banking fees of $1.6 billion, which exclude self-led deals and are primarily included within Global Banking and Global Markets, increased 35 percent for the three months ended March 31, 2024 compared to the same period in 2023. The increase was primarily due to higher debt and equity issuance fees.

13 Bank of America

Global Markets



	Three Months Ended March 31
(Dollars in millions)		2024			2023			% Change
Net interest income		$	681		$	109		n/m
Noninterest income:
Investment and brokerage services		495			533			(7)	%
Investment banking fees		708			469			51
Market making and similar activities		3,830			4,398			(13)
All other income		169			117			44
Total noninterest income		5,202			5,517			(6)
Total revenue, net of interest expense		5,883			5,626			5

Provision for credit losses		(36)			(53)			n/m
Noninterest expense		3,492			3,351			4
Income before income taxes		2,427			2,328			4
Income tax expense		704			640			10
Net income		$	1,723		$	1,688		2

Effective tax rate		29.0		%	27.5		%

Return on average allocated capital		15			15
Efficiency ratio		59.38			59.56


Balance Sheet	Three Months Ended March 31
Average		2024			2023			% Change


Trading-related assets:
Trading account securities		$	323,210		$	339,248		(5)	%
Reverse repurchases		134,081			126,760			6
Securities borrowed		134,852			116,280			16
Derivative assets		37,683			43,747			(14)
Total trading-related assets		629,826			626,035			1
Total loans and leases		133,756			125,046			7
Total earning assets		692,851			627,935			10
Total assets		895,382			870,038			3
Total deposits		32,585			36,109			(10)
Allocated capital		45,500			45,500			—

Period end		March 31 2024			December 31 2023			% Change


Total trading-related assets		$	629,082		$	542,544		16	%
Total loans and leases		135,267			136,223			(1)
Total earning assets		698,279			637,955			9
Total assets		902,741			817,588			10
Total deposits		34,847			34,833			—

n/m = not meaningful

Global Markets offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets product coverage includes securities and derivative products in both the primary and secondary markets. For more information about Global Markets, see Business Segment Operations in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

The following explanations for period-over-period changes in results for Global Markets, including those disclosed under Sales and Trading Revenue, are the same for amounts including and excluding net DVA. Amounts excluding net DVA are a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 5.

Net income for Global Markets increased $35 million to $1.7 billion for the three months ended March 31, 2024 compared to the same period in 2023. Net DVA losses were $85 million compared to gains of $14 million in 2023. Excluding net DVA, net income increased $111 million to $1.8 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.

Revenue increased $257 million to $5.9 billion primarily due to higher investment banking fees and sales and trading revenue. Sales and trading revenue increased $25 million, and

excluding net DVA, increased $124 million. These increases were primarily driven by higher revenue in Equities, partially offset by lower revenue in FICC.

Noninterest expense increased $141 million to $3.5 billion, primarily driven by continued investments in the business, including technology.

Average total assets increased $25.3 billion to $895.4 billion for the three months ended March 31, 2024 compared to the same period in 2023 driven by higher levels of inventory, increased secured financing activity and loan growth in FICC, partially offset by lower levels of inventory in Equities. Period-end total assets increased $85.2 billion from December 31, 2023 to $902.7 billion driven by seasonally higher levels of client activity across both Equities and FICC.

The return on average allocated capital was 15 percent, unchanged from the same period a year ago. For information on capital allocated to the business segments, see Business Segment Operations on page 8.

Sales and Trading Revenue

For a description of sales and trading revenue, see Business Segment Operations in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K. The following table and related

Bank of America 14

discussion present sales and trading revenue, substantially all of which is in Global Markets, with the remainder in Global Banking. In addition, the following table and related discussion

also present sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 5.



Sales and Trading Revenue (1, 2, 3)

	Three Months Ended March 31
(Dollars in millions)	2024		2023
Sales and trading revenue (2)
Fixed-income, currencies and commodities	$	3,231	$	3,440
Equities	1,861		1,627
Total sales and trading revenue	$	5,092	$	5,067

Sales and trading revenue, excluding net DVA (4)
Fixed-income, currencies and commodities	$	3,307	$	3,429
Equities	1,870		1,624
Total sales and trading revenue, excluding net DVA	$	5,177	$	5,053

(1)For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements.

(2)Includes FTE adjustments of $149 million and $90 million for the three months ended March 31, 2024 and 2023.

(3)Includes Global Banking sales and trading revenue of $144 million and $177 million for the three months ended March 31, 2024 and 2023.

(4)FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA gains (losses) were $(76) million and $11 million for the three months ended March 31, 2024 and 2023. Equities net DVA gains (losses) were $(9) million and $3 million for the three months ended March 31, 2024 and 2023.

Including and excluding net DVA, FICC revenue decreased $209 million and $122 million for the three months ended March 31, 2024 compared to the same period in 2023 driven by a weaker trading environment for macro products, partially offset by improved trading in mortgages. Including and excluding net DVA, Equities revenue increased $234 million and $246 million driven by a strong trading performance in derivatives.

All Other



	Three Months Ended March 31
(Dollars in millions)		2024		2023		% Change
Net interest income		$	38	$	97	(61)	%





Noninterest income (loss)		(1,682)		(1,555)		8
Total revenue, net of interest expense		(1,644)		(1,458)		13

Provision for credit losses		(11)		107		(110)


Noninterest expense		994		407		144
Loss before income taxes		(2,627)		(1,972)		33
Income tax benefit		(1,931)		(1,865)		4
Net loss		$	(696)	$	(107)	n/m

Balance Sheet

	Three Months Ended March 31

Average		2024		2023		% Change
Total loans and leases		$	8,872	$	10,077	(12)	%
Total assets (1)		354,484		172,725		105
Total deposits		99,339		24,702		n/m





Period end		March 31 2024		December 31 2023		% Change
Total loans and leases		$	8,917	$	8,842	1	%
Total assets (1)		343,658		346,356		(1)
Total deposits		107,736		92,705		16

(1)In segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from All Other to those segments to match liabilities (i.e., deposits) and allocated shareholders’ equity. Average allocated assets were $958.0 billion and $1.0 trillion for the three months ended March 31, 2024 and 2023, and period-end allocated assets were $987.1 billion and $972.9 billion at March 31, 2024 and December 31, 2023.

n/m = not meaningful

All Other primarily consists of ALM activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments. For more information on our ALM activities, see Note 17 – Business Segment Information to the Consolidated Financial Statements.

The net loss in All Other increased $589 million to $696 million primarily due to higher noninterest expense.

Noninterest expense increased $587 million primarily due to a $700 million accrual for the increase in the Corporation’s estimated share of the FDIC special assessment, partially offset by lower expenses related to a liquidating business activity.

The income tax benefit increased $66 million to $1.9 billion due to higher tax preference benefits primarily related to tax credit investment activity. Both periods included income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking and Global Markets.

15 Bank of America

Managing Risk

Risk is inherent in all our business activities. The seven key types of risk faced by the Corporation are strategic, credit, market, liquidity, compliance, operational and reputational. Sound risk management enables us to serve our customers and deliver for our shareholders. If not managed well, risk can result in financial loss, regulatory sanctions and penalties, and damage to our reputation, each of which may adversely impact our ability to execute our business strategies. We take a comprehensive approach to risk management with a defined Risk Framework and an articulated Risk Appetite Statement, which are approved annually by the Enterprise Risk Committee and the Board.

Our Risk Framework serves as the foundation for the consistent and effective management of risks facing the Corporation. The Risk Framework sets forth roles and responsibilities for the management of risk and provides a blueprint for how the Board, through delegation of authority to committees and executive officers, establishes risk appetite and associated limits for our activities.

Our risk appetite provides a common framework that includes a set of measures to assist senior management and the Board in assessing the Corporation’s risk profile against our risk appetite and risk capacity. Our risk appetite is formally articulated in the Risk Appetite Statement, which includes both qualitative statements and quantitative limits.

For more information on the Corporation’s risks, see Item 1A. Risk Factors of the Corporation’s 2023 Annual Report on Form 10-K. These risks are being managed within our Risk Framework and supporting risk management programs. For more information on our Risk Framework, risk management activities and the key types of risk faced by the Corporation, see the Managing Risk section in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Capital Management

The Corporation manages its capital position so that its capital is more than adequate to support its business activities and aligns with risk, risk appetite and strategic planning. For more information, see Capital Management in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

CCAR and Capital Planning

The Federal Reserve requires BHCs to submit a capital plan and planned capital actions on an annual basis, consistent with the rules governing the Comprehensive Capital Analysis and Review (CCAR) capital plan, which includes supervisory stress testing by the Federal Reserve. Based on 2023 stress test results, our stress capital buffer (SCB) is 2.5 percent effective October 1, 2023 through September 30, 2024. In April 2024, we submitted our 2024 CCAR capital plan and related supervisory stress tests. The Federal Reserve has indicated that it will disclose CCAR capital plan supervisory stress test results by June 30, 2024.

The Board has authorized the repurchase of up to $25 billion of common stock over time, which includes common stock repurchases to offset shares awarded under the Corporation’s equity-based compensation plans. Pursuant to Board authorization, during the three months ended March 31, 2024, we repurchased $2.5 billion of common stock. For more information, see Part II, Item 2. Unregistered Sales of Equity securities and Use of Proceeds on page 93 and Capital Management – CCAR and Capital Planning in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

The timing and amount of common stock repurchases are subject to various factors, including the Corporation’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions, and may be suspended at any time. Such repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (Exchange Act).

Regulatory Capital

As a BHC, we are subject to regulatory capital rules, including Basel 3, issued by U.S. banking regulators. The Corporation's depository institution subsidiaries are also subject to the Prompt Corrective Action (PCA) framework. The Corporation and its primary affiliated banking entity, BANA, are Advanced approaches institutions under Basel 3 and are required to report regulatory risk-based capital ratios and risk-weighted assets (RWA) under both the Standardized and Advanced approaches. The lower of the capital ratios under Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements is used to assess capital adequacy, including under the PCA framework. As of March 31, 2024, the Common equity tier 1 (CET1) capital, Tier 1 capital and Total capital ratios under the Standardized approach were the binding ratios.

Minimum Capital Requirements

In order to avoid restrictions on capital distributions and discretionary bonus payments to executive officers, the Corporation must meet risk-based capital ratio requirements that include a capital conservation buffer of 2.5 percent (under the Advanced approaches only), an SCB (under the Standardized approach only), plus any applicable countercyclical capital buffer and a global systemically important bank (G-SIB) surcharge. The buffers and surcharge must be comprised solely of CET1 capital. Effective January 1, 2024, the Corporation's minimum CET1 capital ratio requirements were 10.0 percent under both the Standardized approach and the Advanced approaches.

The Corporation is required to calculate its G-SIB surcharge on an annual basis under two methods and is subject to the higher of the resulting two surcharges. Method 1 is consistent with the approach prescribed by the Basel Committee’s assessment methodology and is calculated using specified indicators of systemic importance. Method 2 modifies the Method 1 approach by, among other factors, including a measure of the Corporation’s reliance on short-term wholesale funding. Effective January 1, 2024, the Corporation’s G-SIB surcharge, which is higher under Method 2, increased 50 bps, resulting in an increase in our minimum CET1 capital ratio requirement under the Standardized approach to 10.0 percent from 9.5 percent. At March 31, 2024, the Corporation’s CET1 capital ratio of 11.9 percent under the Standardized approach exceeded its CET1 capital ratio requirement.

The Corporation is also required to maintain a minimum supplementary leverage ratio (SLR) of 3.0 percent plus a leverage buffer of 2.0 percent in order to avoid certain restrictions on capital distributions and discretionary bonus payments to executive officers. At March 31, 2024, our insured depository institution subsidiaries exceeded their requirement to maintain a minimum 6.0 percent SLR to be considered well capitalized under the PCA framework.

Bank of America 16

Capital Composition and Ratios

Table 7 presents Bank of America Corporation’s capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches as measured at

March 31, 2024 and December 31, 2023. For the periods presented herein, the Corporation met the definition of well capitalized under current regulatory requirements.



Table 7	Bank of America Corporation Regulatory Capital under Basel 3


		Standardized Approach (1)			Advanced Approaches (1)			Regulatory Minimum (2)
(Dollars in millions, except as noted)		March 31, 2024
Risk-based capital metrics:
Common equity tier 1 capital		$	196,625		$	196,625
Tier 1 capital		225,021			225,021
Total capital (3)		252,400			242,576
Risk-weighted assets (in billions)		1,658			1,463
Common equity tier 1 capital ratio		11.9		%	13.4		%	10.0	%
Tier 1 capital ratio		13.6			15.4			11.5
Total capital ratio		15.2			16.6			13.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)		$	3,169		$	3,169
Tier 1 leverage ratio		7.1		%	7.1		%	4.0

Supplementary leverage exposure (in billions)					$	3,724
Supplementary leverage ratio					6.0		%	5.0

		December 31, 2023
Risk-based capital metrics:
Common equity tier 1 capital		$	194,928		$	194,928
Tier 1 capital		223,323			223,323
Total capital (3)		251,399			241,449
Risk-weighted assets (in billions)		1,651			1,459
Common equity tier 1 capital ratio		11.8		%	13.4		%	9.5	%
Tier 1 capital ratio		13.5			15.3			11.0
Total capital ratio		15.2			16.6			13.0

Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)		$	3,135		$	3,135
Tier 1 leverage ratio		7.1		%	7.1		%	4.0

Supplementary leverage exposure (in billions)					$	3,676
Supplementary leverage ratio					6.1		%	5.0

(1)Capital ratios as of March 31, 2024 and December 31, 2023 are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of the current expected credit losses (CECL) accounting standard on January 1, 2020.

(2)The CET1 capital regulatory minimum is the sum of the CET1 capital ratio minimum of 4.5 percent, our G-SIB surcharge of 3.0 percent at March 31, 2024 and 2.5 percent at December 31, 2023, and our capital conservation buffer (under the Advanced approaches) or SCB (under the Standardized approach) of 2.5 percent, as applicable. The countercyclical capital buffer was zero for both periods. The SLR regulatory minimum includes a leverage buffer of 2.0 percent.

(3)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.

(4)Reflects total average assets adjusted for certain Tier 1 capital deductions.

At March 31, 2024, CET1 capital was $196.6 billion, an increase of $1.7 billion from December 31, 2023, primarily due to earnings, partially offset by capital distributions. Tier 1 capital increased $1.7 billion primarily driven by the same factors as CET1 capital. Total capital under the Standardized approach increased $1.0 billion primarily due to the same factors driving the increase in Tier 1 capital and an increase in the adjusted allowance for credit losses included in Tier 2 capital, partially

offset by a decrease in subordinated debt. RWA under the Standardized approach, which yielded the lower CET1 capital ratio at March 31, 2024, increased $6.4 billion during 2024 to $1,658 billion primarily driven by client activity in Global Markets. Supplementary leverage exposure at March 31, 2024 increased $47.5 billion primarily driven by increased activity in Global Markets.

17 Bank of America

Table 8 shows the capital composition at March 31, 2024 and December 31, 2023.



Table 8	Capital Composition under Basel 3


(Dollars in millions)		March 31 2024		December 31 2023

Total common shareholders’ equity		$	265,155	$	263,249
CECL transitional amount (1)		627		1,254
Goodwill, net of related deferred tax liabilities		(68,648)		(68,648)
Deferred tax assets arising from net operating loss and tax credit carryforwards		(8,148)		(7,912)
Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities		(1,482)		(1,496)
Defined benefit pension plan net assets		(775)		(764)
Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax		1,585		1,342
Accumulated net (gain) loss on certain cash flow hedges (2)		8,449		8,025
Other		(138)		(122)
Common equity tier 1 capital		196,625		194,928
Qualifying preferred stock, net of issuance cost		28,396		28,396
Other		—		(1)
Tier 1 capital		225,021		223,323
Tier 2 capital instruments		14,185		15,340
Qualifying allowance for credit losses (3)		13,592		12,920
Other		(398)		(184)
Total capital under the Standardized approach		252,400		251,399
Adjustment in qualifying allowance for credit losses under the Advanced approaches (3)		(9,824)		(9,950)
Total capital under the Advanced approaches		$	242,576	$	241,449

(1)March 31, 2024 and December 31, 2023 include 25 percent and 50 percent of the CECL transition provision’s impact as of December 31, 2021.

(2)Includes amounts in accumulated other comprehensive income (OCI) related to the hedging of items that are not recognized at fair value on the Consolidated Balance Sheet.

(3)Includes the impact of transition provisions related to the CECL accounting standard.

Table 9 shows the components of RWA as measured under Basel 3 at March 31, 2024 and December 31, 2023.



Table 9	Risk-weighted Assets under Basel 3

		Standardized Approach		Advanced Approaches		Standardized Approach		Advanced Approaches


(Dollars in billions)		March 31, 2024				December 31, 2023
Credit risk		$	1,588	$	992	$	1,580	$	983
Market risk		70		70		71		71
Operational risk		n/a		359		n/a		361
Risks related to credit valuation adjustments		n/a		42		n/a		44
Total risk-weighted assets		$	1,658	$	1,463	$	1,651	$	1,459

n/a = not applicable

Bank of America 18

Bank of America, N.A. Regulatory Capital

Table 10 presents regulatory capital information for BANA in accordance with Basel 3 Standardized and Advanced approaches as measured at March 31, 2024 and December 31, 2023. BANA met the definition of well capitalized under the PCA framework for both periods.



Table 10	Bank of America, N.A. Regulatory Capital under Basel 3

		Standardized Approach (1)			Advanced Approaches (1)			Regulatory Minimum (2)
(Dollars in millions, except as noted)		March 31, 2024
Risk-based capital metrics:
Common equity tier 1 capital		$	188,744		$	188,744
Tier 1 capital		188,744			188,744
Total capital (3)		203,699			194,099
Risk-weighted assets (in billions)		1,398			1,118
Common equity tier 1 capital ratio		13.5		%	16.9		%	7.0	%
Tier 1 capital ratio		13.5			16.9			8.5
Total capital ratio		14.6			17.4			10.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)		$	2,481		$	2,481
Tier 1 leverage ratio		7.6		%	7.6		%	5.0

Supplementary leverage exposure (in billions)					$	2,926
Supplementary leverage ratio					6.5		%	6.0

		December 31, 2023
Risk-based capital metrics:
Common equity tier 1 capital		$	187,621		$	187,621
Tier 1 capital		187,621			187,621
Total capital (3)		201,932			192,175
Risk-weighted assets (in billions)		1,395			1,114
Common equity tier 1 capital ratio		13.5		%	16.8		%	7.0	%
Tier 1 capital ratio		13.5			16.8			8.5
Total capital ratio		14.5			17.2			10.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)		$	2,471		$	2,471
Tier 1 leverage ratio		7.6		%	7.6		%	5.0

Supplementary leverage exposure (in billions)					$	2,910
Supplementary leverage ratio					6.4		%	6.0

(2)Risk-based capital regulatory minimums at both March 31, 2024 and December 31, 2023 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimums for the leverage ratios as of both period ends are the percent required to be considered well capitalized under the PCA framework.

(4)Reflects total average assets adjusted for certain Tier 1 capital deductions.

Total Loss-Absorbing Capacity Requirements

Total loss-absorbing capacity (TLAC) consists of the Corporation’s Tier 1 capital and eligible long-term debt issued directly by the Corporation. Eligible long-term debt for TLAC ratios is comprised of unsecured debt that has a remaining maturity of at least one year and satisfies additional requirements as prescribed in the TLAC final rule. As with the

risk-based capital ratios and SLR, the Corporation is required to maintain TLAC ratios in excess of minimum requirements plus applicable buffers to avoid restrictions on capital distributions and discretionary bonus payments to executive officers. Table 11 presents the Corporation's TLAC and long-term debt ratios and related information as of March 31, 2024 and December 31, 2023.

19 Bank of America



Table 11	Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt

		TLAC (1)			Regulatory Minimum (2)		Long-term Debt			Regulatory Minimum (3)
(Dollars in millions)		March 31, 2024
Total eligible balance		$	475,215				$	235,649
Percentage of risk-weighted assets (4)		28.7		%	22.0	%	14.2		%	9.0	%
Percentage of supplementary leverage exposure		12.8			9.5		6.3			4.5

		December 31, 2023
Total eligible balance		$	479,156				$	239,892
Percentage of risk-weighted assets (4)		29.0		%	22.0	%	14.5		%	8.5	%
Percentage of supplementary leverage exposure		13.0			9.5		6.5			4.5

(1)As of March 31, 2024 and December 31, 2023, TLAC ratios are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of the CECL accounting standard on January 1, 2020.

(2)The TLAC RWA regulatory minimum consists of 18.0 percent plus a TLAC RWA buffer comprised of 2.5 percent plus the Method 1 G-SIB surcharge of 1.5 percent. The countercyclical buffer is zero for both periods. The TLAC supplementary leverage exposure regulatory minimum consists of 7.5 percent plus a 2.0 percent TLAC leverage buffer. The TLAC RWA and leverage buffers must be comprised solely of CET1 capital and Tier 1 capital, respectively.

(3)The long-term debt RWA regulatory minimum is comprised of 6.0 percent plus the Corporation’s G-SIB surcharge of 3.0 percent at March 31, 2024 and 2.5 percent at December 31, 2023. The long-term debt leverage exposure regulatory minimum is 4.5 percent. Effective January 1, 2024, the Corporation’s G-SIB surcharge, which is higher under Method 2, increased 50 bps, resulting in an increase in our long-term debt RWA regulatory minimum requirement to 9.0 percent from 8.5 percent.

(4)The approach that yields the higher RWA is used to calculate TLAC and long-term debt ratios, which was the Standardized approach as of March 31, 2024 and December 31, 2023.

Regulatory Developments

For information on regulatory developments, see Capital Management – Regulatory Developments in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Regulatory Capital and Securities Regulation

The Corporation’s principal U.S. broker-dealer subsidiaries are BofA Securities, Inc. (BofAS) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S). The Corporation's principal European subsidiaries undertaking broker-dealer activities are Merrill Lynch International (MLI) and BofA Securities Europe SA (BofASE).

The U.S. broker-dealer subsidiaries are subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. BofAS computes its capital requirements as an alternative net capital broker-dealer under Rule 15c3-1e, and MLPF&S computes its capital requirements in accordance with the alternative standard under Rule 15c3-1. BofAS is registered as a futures commission merchant and is subject to Commodity Futures Trading Commission (CFTC) Regulation 1.17. The U.S. broker-dealer subsidiaries are also registered with the Financial Industry Regulatory Authority, Inc. (FINRA). Pursuant to FINRA Rule 4110, FINRA may impose higher net capital requirements than Rule 15c3-1 under the Exchange Act with respect to each of the broker-dealers.

BofAS provides institutional services, and in accordance with the alternative net capital requirements, is required to maintain tentative net capital in excess of $5.0 billion and net capital in excess of the greater of $1.0 billion or a certain percentage of its reserve requirement in addition to a certain percentage of securities-based swap risk margin. BofAS must also notify the SEC in the event its tentative net capital is less than $6.0 billion. BofAS is also required to hold a certain percentage of its customers' and affiliates' risk-based margin in order to meet its CFTC minimum net capital requirement. At March 31, 2024, BofAS had tentative net capital of $22.6 billion. BofAS also had regulatory net capital of $20.3 billion, which exceeded the minimum requirement of $4.3 billion.

MLPF&S provides retail services. At March 31, 2024, MLPF&S' regulatory net capital was $6.4 billion, which exceeded the minimum requirement of $148 million.

Our European broker-dealers are subject to requirements from U.S. and non-U.S. regulators. MLI, a U.K. investment firm, is regulated by the Prudential Regulation Authority and the Financial Conduct Authority and is subject to certain regulatory

capital requirements. At March 31, 2024, MLI’s capital resources were $33.8 billion, which exceeded the minimum Pillar 1 requirement of $12.8 billion.

BofASE, an authorized credit institution with its head office located in France, is regulated by the Autorité de Contrôle Prudentiel et de Résolution and the Autorité des Marchés Financiers, and supervised under the Single Supervisory Mechanism by the European Central Bank. At March 31, 2024, BofASE's capital resources were $9.9 billion, which exceeded the minimum Pillar 1 requirement of $3.8 billion.

In addition, MLI and BofASE remained conditionally registered with the SEC as security-based swap dealers, and maintained net liquid assets at March 31, 2024 that exceeded the applicable minimum requirements under the Exchange Act.

Liquidity Risk

Funding and Liquidity Risk Management

Our primary liquidity risk management objective is to meet expected or unexpected cash flow and collateral requirements, including payments under long-term debt agreements, commitments to extend credit and customer deposit withdrawals, while continuing to support our businesses and customers under a range of economic conditions. To achieve that objective, we analyze and monitor our liquidity risk under expected and stressed conditions, maintain liquidity and access to diverse funding sources, including our stable deposit base, and seek to align liquidity-related incentives and risks. These liquidity risk management practices have allowed us to effectively manage market fluctuations from the rising interest rate environment, inflationary pressures and changes in the macroeconomic environment.

We define liquidity as readily available assets, limited to cash and high-quality, liquid, unencumbered securities that we can use to meet our contractual and contingent financial obligations as they arise. We manage our liquidity position through line-of-business and ALM activities, as well as through our legal entity funding strategy, on both a forward and current (including intraday) basis under both expected and stressed conditions. We believe that a centralized approach to funding and liquidity management enhances our ability to monitor liquidity requirements, maximizes access to funding sources, minimizes borrowing costs and facilitates timely responses to liquidity events. For more information on the Corporation’s

Bank of America 20

liquidity risks, see the Liquidity section within Item 1A. Risk Factors of the Corporation’s 2023 Annual Report on Form 10-K. For more information regarding global funding and liquidity risk management, as well as liquidity sources, liquidity arrangements, contingency planning and credit ratings discussed below, see Liquidity Risk in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

NB Holdings Corporation

Bank of America Corporation, as the parent company (the Parent), which is a separate and distinct legal entity from our bank and nonbank subsidiaries, has an intercompany arrangement with our wholly-owned holding company subsidiary, NB Holdings Corporation (NB Holdings). We have transferred, and agreed to transfer, additional Parent assets not required to satisfy anticipated near-term expenditures to NB Holdings. The Parent is expected to continue to have access to the same flow of dividends, interest and other amounts of cash necessary to service its debt, pay dividends and perform other obligations as it would have had it not entered into these arrangements and transferred any assets. These arrangements support our preferred single point of entry resolution strategy, under which only the Parent would be resolved under the U.S. Bankruptcy Code.

Global Liquidity Sources and Other Unencumbered Assets

We maintain liquidity available to the Corporation, including the Parent and selected subsidiaries, in the form of cash and high quality, liquid, unencumbered securities. Our liquidity buffer, referred to as Global Liquidity Sources (GLS), is comprised of assets that are readily available to the Parent and selected subsidiaries, including holding company, bank and broker-dealer subsidiaries, even during stressed market conditions. Our cash is primarily on deposit with the Federal Reserve Bank and, to a lesser extent, central banks outside of the U.S. We limit the composition of high-quality, liquid, unencumbered securities to U.S. government securities, U.S. agency securities, U.S. agency mortgage-backed securities and other investment-grade securities, and a select group of non-U.S. government securities. We can obtain cash for these securities, even in stressed conditions, through repurchase agreements or outright sales. We hold our GLS in legal entities that allow us to meet the liquidity requirements of our global businesses, and we consider the impact of potential regulatory, tax, legal and other restrictions that could limit the transferability of funds among entities.

Table 12 presents average GLS for the three months ended March 31, 2024 and December 31, 2023.



Table 12	Average Global Liquidity Sources


		Three Months Ended
(Dollars in billions)		March 31 2024		December 31 2023

Bank entities		$	747	$	735
Nonbank and other entities (1)		162		162
Total Average Global Liquidity Sources		$	909	$	897

(1) Nonbank includes Parent, NB Holdings and other regulated entities.

Our bank subsidiaries’ liquidity is primarily driven by deposit and lending activity, as well as securities valuation and net debt activity. Bank subsidiaries can also generate incremental liquidity by pledging a range of unencumbered loans and securities to certain Federal Home Loan Banks (FHLBs) and the Federal Reserve Discount Window. The cash we could have obtained by borrowing against this pool of specifically-identified

eligible assets was $326 billion and $312 billion at March 31, 2024 and December 31, 2023. We have established operational procedures to enable us to borrow against these assets, including regularly monitoring our total pool of eligible loans and securities collateral. Eligibility is defined in guidelines from the FHLBs and the Federal Reserve and is subject to change at their discretion. Due to regulatory restrictions, liquidity generated by the bank subsidiaries can generally be used only to fund obligations within the bank subsidiaries, and transfers to the Parent or nonbank subsidiaries may be subject to prior regulatory approval.

Liquidity is also held in nonbank entities, including the Parent, NB Holdings and other regulated entities. The Parent and NB Holdings liquidity is typically in the form of cash deposited at BANA, which is excluded from the liquidity at bank subsidiaries, and high-quality, liquid, unencumbered securities. Liquidity held in other regulated entities, comprised primarily of broker-dealer subsidiaries, is primarily available to meet the obligations of that entity, and transfers to the Parent or to any other subsidiary may be subject to prior regulatory approval due to regulatory restrictions and minimum requirements. Our other regulated entities also hold unencumbered investment-grade securities and equities that we believe could be used to generate additional liquidity.

Table 13 presents the composition of average GLS for the three months ended March 31, 2024 and December 31, 2023.



Table 13	Average Global Liquidity Sources Composition

		Three Months Ended


(Dollars in billions)		March 31 2024		December 31 2023
Cash on deposit		$	344	$	380
U.S. Treasury securities		228		197
U.S. agency securities, mortgage-backed securities, and other investment-grade securities		313		299
Non-U.S. government securities		24		21
Total Average Global Liquidity Sources		$	909	$	897

Our GLS are substantially the same in composition to what qualifies as High Quality Liquid Assets (HQLA) under the final U.S. Liquidity Coverage Ratio (LCR) rules. However, HQLA for purposes of calculating LCR is not reported at market value, but at a lower value that incorporates regulatory deductions and the exclusion of excess liquidity held at certain subsidiaries. The LCR is calculated as the amount of a financial institution’s unencumbered HQLA relative to the estimated net cash outflows the institution could encounter over a 30-day period of significant liquidity stress, expressed as a percentage. Our average consolidated HQLA, on a net basis, was $586 billion and $590 billion for the three months ended March 31, 2024 and December 31, 2023. For the same periods, the average consolidated LCR was 113 percent and 115 percent. Our LCR fluctuates due to normal business flows from customer activity.

Liquidity Stress Analysis

We utilize liquidity stress analysis to assist us in determining the appropriate amounts of liquidity to maintain at the Parent and our subsidiaries to meet contractual and contingent cash outflows under a range of scenarios. For more information on liquidity stress analysis, see Liquidity Risk – Liquidity Stress Analysis in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

21 Bank of America

Net Stable Funding Ratio

The Net Stable Funding Ratio (NSFR) is a liquidity requirement for large banks to maintain a minimum level of stable funding over a one-year period. The requirement is intended to support the ability of banks to lend to households and businesses in both normal and adverse economic conditions and is complementary to the LCR, which focuses on short-term liquidity risks. The U.S. NSFR applies to the Corporation on a consolidated basis and to our insured depository institutions. At March 31, 2024, the Corporation and its insured depository institutions were in compliance with the U.S. NSFR.

Diversified Funding Sources

We fund our assets primarily with a mix of deposits, and secured and unsecured liabilities through a centralized, globally coordinated funding approach diversified across products, programs, markets, currencies and investor groups. We fund a substantial portion of our lending activities through our deposits, which were $1.95 trillion and $1.92 trillion at March 31, 2024 and December 31, 2023. Our trading activities in other regulated entities are primarily funded on a secured basis through securities lending and repurchase agreements, and these amounts will vary based on customer activity and market conditions.

Deposits

Our deposit base is well-diversified by clients, geography and product type across our business segments. At March 31, 2024, 50 percent of our deposits were in Consumer Banking, 15 percent in GWIM and 27 percent in Global Banking. We consider a substantial portion of our deposit base to be a

stable, low-cost and consistent source of liquidity. At March 31, 2024 approximately 68 percent of consumer and small business deposits and 81 percent of U.S. deposits in Global Banking were held by clients who have had accounts with us for 10 or more years. In addition, at both March 31, 2024 and December 31, 2023, 28 percent of our deposits were noninterest bearing and included operating accounts of our consumer and commercial clients. Deposits at March 31, 2024 increased $22.7 billion from December 31, 2023 primarily due to time deposit growth and seasonal deposit inflows.

During the three months ended March 31, 2024 and 2023, rates paid on deposits were 55 bps and 12 bps in Consumer Banking, 289 bps and 197 bps in GWIM, and 312 bps and 170 bps in Global Banking. For information on rates paid on consolidated deposit balances, see Table 6 on page 7.

Long-term Debt

During the three months ended March 31, 2024 we issued $15.4 billion of long-term debt consisting of $6.5 billion of notes issued by Bank of America Corporation, substantially all of which were TLAC compliant, $3.5 billion of notes issued by Bank of America, N.A. and $5.4 billion of other debt.

During the three months ended March 31, 2024, we had total long-term debt maturities and redemptions in the aggregate of $15.0 billion consisting of $9.4 billion for Bank of America Corporation, $2.5 billion for Bank of America, N.A. and $3.1 billion of other debt. Table 14 presents the carrying value of aggregate annual contractual maturities of long-term debt at March 31, 2024.



Table 14	Long-term Debt by Maturity

(Dollars in millions)		Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Bank of America Corporation
Senior notes (1)		$	5,146	$	19,029	$	24,508	$	21,302	$	27,475	$	103,463	$	200,923
Senior structured notes		490		1,094		1,166		802		1,035		10,948		15,535
Subordinated notes		3,117		5,080		4,870		2,062		929		9,162		25,220
Junior subordinated notes		—		—		—		191		—		557		748
Total Bank of America Corporation		8,753		25,203		30,544		24,357		29,439		124,130		242,426
Bank of America, N.A.
Senior notes		1,000		3,397		3,144		—		650		—		8,191
Subordinated notes		—		—		—		—		—		1,435		1,435
Advances from Federal Home Loan Banks		4,750		2,512		8		3		9		41		7,323
Securitizations and other Bank VIEs (2)		1,094		2,234		3,245		—		866		211		7,650
Other		40		601		79		46		44		—		810
Total Bank of America, N.A.		6,884		8,744		6,476		49		1,569		1,687		25,409
Other debt
Structured Liabilities		3,649		3,853		3,871		2,935		2,038		11,604		27,950
Nonbank VIEs (2)		44		16		7		—		7		487		561

Total other debt		3,693		3,869		3,878		2,935		2,045		12,091		28,511
Total long-term debt		$	19,330	$	37,816	$	40,898	$	27,341	$	33,053	$	137,908	$	296,346

(1)Total includes $183.0 billion of outstanding notes that are both TLAC eligible and callable one year before their stated maturities, including $15.6 billion during the remainder of 2024, and $21.8 billion, $21.3 billion, $24.6 billion and $19.5 billion during each year of 2025 through 2028, respectively, and $80.2 billion thereafter. For more information on our TLAC eligible and callable outstanding notes, see Liquidity Risk – Diversified Funding Sources in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

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

Total long-term debt decreased $5.9 billion to $296.3 billion during the three months ended March 31, 2024 primarily due to debt maturities and valuation adjustments, partially offset by debt issuances. We may, from time to time, purchase outstanding debt instruments in various transactions, depending on market conditions, liquidity and other factors. Our other regulated entities may also make markets in our debt instruments to provide liquidity for investors.

During the three months ended March 31, 2024, we issued $6.8 billion of structured notes, which are debt obligations that pay investors returns linked to other debt or equity securities, indices, currencies or commodities. These structured notes are typically issued to meet client demand, and notes with certain attributes may also be TLAC eligible. We typically hedge the returns we are obligated to pay on these liabilities with derivatives and/or investments in the underlying instruments, so that from a funding perspective, the cost is similar to our

Bank of America 22

other unsecured long-term debt. We could be required to settle certain structured note obligations for cash or other securities prior to maturity under certain circumstances, which we consider for liquidity planning purposes. We believe, however, that a portion of such borrowings will remain outstanding beyond the earliest put or redemption date.

Substantially all of our senior and subordinated debt obligations contain no provisions that could trigger a requirement for an early repayment, require additional collateral support, result in changes to terms, accelerate maturity or create additional financial obligations upon an adverse change in our credit ratings, financial ratios, earnings, cash flows or stock price. For more information on long-term debt funding, including issuances and maturities and redemptions, see Note 11 – Long-term Debt to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.

We use derivative transactions to manage the duration, interest rate and currency risks of our borrowings, considering the characteristics of the assets they are funding. For more information on our ALM activities, see Interest Rate Risk Management for the Banking Book on page 39.

Credit Ratings

Credit ratings and outlooks are opinions expressed by rating agencies on our creditworthiness and that of our obligations or securities, including long-term debt, short-term borrowings, preferred stock and other securities, including asset securitizations. Table 15 presents the Corporation’s current long-term/short-term senior debt ratings and outlooks expressed by the rating agencies.

The ratings and outlooks from Moody's Investors Service, Standard & Poor’s Global Ratings and Fitch Ratings for the Corporation and its subsidiaries have not changed from those disclosed in the Corporation's 2023 Annual Report on Form 10-K.

For more information on additional collateral and termination payments that could be required in connection with certain over-the-counter derivative contracts and other trading agreements in the event of a credit rating downgrade, see Note 3 – Derivatives to the Consolidated Financial Statements herein and Item 1A. Risk Factors of the Corporation’s 2023 Annual Report on Form 10-K.



Table 15	Senior Debt Ratings

		Moody’s Investors Service			Standard & Poor’s Global Ratings			Fitch Ratings
		Long-term	Short-term	Outlook	Long-term	Short-term	Outlook	Long-term	Short-term	Outlook
Bank of America Corporation		A1	P-1	Stable	A-	A-2	Stable	AA-	F1+	Stable
Bank of America, N.A.		Aa1	P-1	Negative	A+	A-1	Stable	AA	F1+	Stable
Bank of America Europe Designated Activity Company		NR	NR	NR	A+	A-1	Stable	AA	F1+	Stable
Merrill Lynch, Pierce, Fenner & Smith Incorporated		NR	NR	NR	A+	A-1	Stable	AA	F1+	Stable
BofA Securities, Inc.		NR	NR	NR	A+	A-1	Stable	AA	F1+	Stable
Merrill Lynch International		NR	NR	NR	A+	A-1	Stable	AA	F1+	Stable
BofA Securities Europe SA		NR	NR	NR	A+	A-1	Stable	AA	F1+	Stable

NR = not rated

Finance Subsidiary Issuers and Parent Guarantor

BofA Finance LLC, a Delaware limited liability company (BofA Finance), is a consolidated finance subsidiary of the Corporation that has issued and sold, and is expected to continue to issue and sell, its senior unsecured debt securities (Guaranteed Notes) that are fully and unconditionally guaranteed by the Corporation. The Corporation guarantees the due and punctual payment, on demand, of amounts payable on the Guaranteed Notes if not paid by BofA Finance. In addition, each of BAC Capital Trust XIII, BAC Capital Trust XIV and BAC Capital Trust XV, Delaware statutory trusts (collectively, the Trusts) is a 100 percent owned finance subsidiary of the Corporation that has issued and sold trust preferred securities (the Trust Preferred Securities) or capital securities (the Capital Securities and, together with the Guaranteed Notes and the Trust Preferred Securities, the Guaranteed Securities), as applicable, that remained outstanding at March 31, 2024. The Corporation has fully and unconditionally guaranteed (or effectively provided for the full and unconditional guarantee of) all such securities issued by such finance subsidiaries. For more information regarding such guarantees by the Corporation, see Liquidity Risk – Finance Subsidiary Issuers and Parent Guarantor in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Representations and Warranties Obligations

For information on representations and warranties obligations in connection with the sale of mortgage loans, see Note 12 – Commitments and Contingencies to the Consolidated Financial

Statements of the Corporation’s 2023 Annual Report on Form 10-K.

Credit Risk Management

For information on our credit risk management activities, see the following: Consumer Portfolio Credit Risk Management on page 24, Commercial Portfolio Credit Risk Management on page 28, Non-U.S. Portfolio on page 34, Allowance for Credit Losses on page 35, Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements, and Credit Risk Management in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K. For information on the Corporation’s loan modification programs, see Note 1 – Summary of Significant Accounting Principles and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements. For more information on the Corporation’s credit risks, see the Credit section within Item 1A. Risk Factors of the Corporation’s 2023 Annual Report on Form 10-K.

During the three months ended March 31, 2024, our net charge-off ratio increased primarily driven by credit card loans and the commercial real estate office portfolio. In addition, nonperforming loans increased compared to December 31, 2023 driven by the commercial real estate office property type, while commercial reservable criticized exposure increased driven by an increase across a broad range of industries in commercial excluding commercial real estate. Uncertainty remains regarding broader economic impacts as a result of inflationary pressures, elevated rates and the current geopolitical environment and

23 Bank of America

could lead to adverse impacts to credit quality metrics in future periods.

Consumer Portfolio Credit Risk Management

Credit risk management for the consumer portfolio begins with initial underwriting and continues throughout a borrower’s credit cycle. Statistical techniques in conjunction with experiential judgment are used in all aspects of portfolio management including underwriting, product pricing, risk appetite, setting credit limits, and establishing operating processes and metrics to quantify and balance risks and returns. Statistical models are built using detailed behavioral information from external sources, such as credit bureaus, and/or internal historical experience and are a component of our consumer credit risk management process. These models are used in part to assist in making both new and ongoing credit decisions as well as portfolio management strategies, including authorizations and line management, collection practices and strategies, and determination of the allowance for loan and lease losses and allocated capital for credit risk.

Consumer Credit Portfolio

During the three months ended March 31, 2024, the U.S. unemployment rate remained relatively stable and home prices increased slightly. During the three months ended March 31, 2024, net charge-offs increased $375 million to $1.0 billion compared to the same period in 2023, primarily due to higher credit card loan charge-offs.

The consumer allowance for loan and lease losses decreased $44 million during the three months ended March 31, 2024 to $8.5 billion. For more information, see Allowance for Credit Losses on page 35.

For more information on our accounting policies regarding delinquencies, nonperforming status, charge-offs and loan modifications for the consumer portfolio, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

Table 16 presents our outstanding consumer loans and leases, consumer nonperforming loans and accruing consumer loans past due 90 days or more.



Table 16	Consumer Credit Quality

		Outstandings				Nonperforming						Accruing Past Due 90 Days or More


(Dollars in millions)		March 31 2024		December 31 2023		March 31 2024			December 31 2023			March 31 2024			December 31 2023
Residential mortgage (1)		$	227,435	$	228,403	$	2,112		$	2,114		$	230		$	252
Home equity		25,185		25,527		438			450			—			—
Credit card		98,453		102,200		n/a			n/a			1,299			1,224
Direct/Indirect consumer (2)		102,849		103,468		147			148			2			2
Other consumer		115		124		—			—			—			—
Consumer loans excluding loans accounted for under the fair value option		$	454,037	$	459,722	$	2,697		$	2,712		$	1,531		$	1,478
Loans accounted for under the fair value option (3)		235		243
Total consumer loans and leases		$	454,272	$	459,965
Percentage of outstanding consumer loans and leases (4)		n/a		n/a		0.59		%	0.59		%	0.34		%	0.32		%
Percentage of outstanding consumer loans and leases, excluding fully-insured loan portfolios (4)		n/a		n/a		0.61			0.60			0.29			0.27

(1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At March 31, 2024 and December 31, 2023, residential mortgage included $140 million and $156 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and $90 million and $96 million of loans on which interest was still accruing.

(2)Outstandings primarily includes auto and specialty lending loans and leases of $54.1 billion and $53.9 billion, U.S. securities-based lending loans of $45.3 billion and $46.0 billion at March 31, 2024 and December 31, 2023, and non-U.S. consumer loans of $2.7 billion and $2.8 billion at March 31, 2024 and December 31, 2023.

(3)For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.

(4)Excludes consumer loans accounted for under the fair value option. At both March 31, 2024 and December 31, 2023, $4 million of loans accounted for under the fair value option were past due 90 days or more and not accruing interest.

n/a= not applicable

Table 17 presents net charge-offs and related ratios for consumer loans and leases.



Table 17	Consumer Net Charge-offs and Related Ratios

			Net Charge-offs				Net Charge-off Ratios (1)
		Three Months Ended March 31

(Dollars in millions)			2024		2023		2024		2023
Residential mortgage			$	3	$	1	0.01	%	—	%
Home equity			(13)		(12)		(0.20)		(0.18)
Credit card			899		501		3.62		2.21

Direct/Indirect consumer			65		1		0.26		—
Other consumer			74		162		n/m		n/m
Total			$	1,028	$	653	0.91		0.58

(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.

n/m = not meaningful

We believe that the presentation of information adjusted to exclude the impact of the fully-insured loan portfolio and loans accounted for under the fair value option is more representative

of the ongoing operations and credit quality of the business. As a result, in the following tables and discussions of the residential mortgage and home equity portfolios, we exclude

Bank of America 24

loans accounted for under the fair value option and provide information that excludes the impact of the fully-insured loan portfolio in certain credit quality statistics.

Residential Mortgage

The residential mortgage portfolio made up the largest percentage of our consumer loan portfolio at 50 percent of consumer loans and leases at March 31, 2024. Approximately 51 percent of the residential mortgage portfolio was in Consumer Banking, 46 percent was in GWIM and the remaining portion was in All Other.

Outstanding balances in the residential mortgage portfolio decreased $968 million during the three months ended March

31, 2024, as paydowns and payoffs outpaced new originations.

At March 31, 2024 and December 31, 2023, the residential mortgage portfolio included $10.6 billion and $11.0 billion of outstanding fully-insured loans, of which $2.1 billion and $2.2 billion had FHA insurance, with the remainder protected by Fannie Mae long-term standby agreements.

Table 18 presents certain residential mortgage key credit statistics on both a reported basis and excluding the fully-insured loan portfolio. The following discussion presents the residential mortgage portfolio excluding the fully-insured loan portfolio.



Table 18	Residential Mortgage – Key Credit Statistics

		Reported Basis (1)						Excluding Fully-insured Loans (1)


(Dollars in millions)		March 31 2024			December 31 2023			March 31 2024			December 31 2023
Outstandings		$	227,435		$	228,403		$	216,791		$	217,439
Accruing past due 30 days or more		1,308			1,513			832			986
Accruing past due 90 days or more		230			252			—			—
Nonperforming loans (2)		2,112			2,114			2,112			2,114
Percent of portfolio
Refreshed LTV greater than 90 but less than or equal to 100		1		%	1		%	1		%	1		%
Refreshed LTV greater than 100		—			—			—			—
Refreshed FICO below 620		1			1			1			1

(1)Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option.

(2)Includes loans that are contractually current that have not yet demonstrated a sustained period of payment performance following a modification.

Nonperforming outstanding balances in the residential mortgage portfolio remained relatively unchanged during the three months ended March 31, 2024. Of the nonperforming residential mortgage loans at March 31, 2024, $1.3 billion, or 64 percent, were current on contractual payments. Loans accruing past due 30 days or more decreased $154 million.

Of the $216.8 billion in total residential mortgage loans outstanding at March 31, 2024, $62.9 billion, or 29 percent, of loans were originated as interest-only. The outstanding balance of interest-only residential mortgage loans that had entered the amortization period was $3.6 billion, or six percent, at March 31, 2024. Residential mortgage loans that have entered the amortization period generally experience a higher rate of early stage delinquencies and nonperforming status compared to the residential mortgage portfolio as a whole. At March 31, 2024, $51 million, or one percent, of outstanding interest-only residential mortgages that had entered the amortization period were accruing past due 30 days or more compared to $832 million, or less than one percent, for the entire residential mortgage portfolio. In addition, at March 31, 2024, $188

million, or five percent, of outstanding interest-only residential mortgage loans that had entered the amortization period were nonperforming, of which $62 million were contractually current. Loans that have yet to enter the amortization period in our interest-only residential mortgage portfolio are primarily well-collateralized loans to our wealth management clients and have an interest-only period of three years to 10 years. Substantially all of these loans that have yet to enter the amortization period will not be required to make a fully-amortizing payment until 2025 or later.

Table 19 presents outstandings, nonperforming loans and net charge-offs by certain state concentrations for the residential mortgage portfolio. In the New York area, the New York-Northern New Jersey-Long Island Metropolitan Statistical Area (MSA) made up 15 percent of outstandings at both March 31, 2024 and December 31, 2023. The Los Angeles-Long Beach-Santa Ana MSA within California represented 14 percent of outstandings at both March 31, 2024 and December 31, 2023.



Table 19	Residential Mortgage State Concentrations

		Outstandings (1)				Nonperforming (1)					Net Charge-offs
		March 31 2024		December 31 2023		March 31 2024		December 31 2023			Three Months Ended March 31
(Dollars in millions)										2024	2023



California		$	80,920	$	81,085	$	643	$	641		$	3	$	—
New York		25,825		25,975		317		320			—		2
Florida		15,451		15,450		142		131			(1)		(2)
Texas		9,334		9,361		89		88			—		—
New Jersey		8,613		8,671		99		97			—		—
Other		76,648		76,897		822		837			1		1
Residential mortgage loans		$	216,791	$	217,439	$	2,112	$	2,114		$	3	$	1
Fully-insured loan portfolio		10,644		10,964

Total residential mortgage loan portfolio		$	227,435	$	228,403

(1)Outstandings and nonperforming loans exclude loans accounted for under the fair value option.

25 Bank of America

Home Equity

At March 31, 2024, the home equity portfolio made up six percent of the consumer portfolio and was comprised of home equity lines of credit (HELOCs), home equity loans and reverse mortgages. HELOCs generally have an initial draw period of 10 years, and after the initial draw period ends, the loans generally convert to 15- or 20-year amortizing loans. We no longer originate home equity loans or reverse mortgages.

At March 31, 2024, 84 percent of the home equity portfolio was in Consumer Banking, ten percent was in GWIM and the remainder of the portfolio was in All Other. Outstanding balances in the home equity portfolio decreased $342 million during the three months ended March 31, 2024 primarily due to paydowns outpacing draws on existing lines and new

originations. Of the total home equity portfolio at March 31, 2024 and December 31, 2023, $9.8 billion and $10.1 billion, or 39 percent as of both periods, were in first-lien positions. At March 31, 2024, outstanding balances in the home equity portfolio that were in a second-lien or more junior-lien position and where we also held the first-lien loan totaled $4.4 billion, or 17 percent, of our total home equity portfolio.

Unused HELOCs totaled $45.5 billion and $45.1 billion at March 31, 2024 and December 31, 2023. The HELOC utilization rate was 35 percent at both March 31, 2024 and December 31, 2023.

Table 20 presents certain home equity portfolio key credit statistics.



Table 20	Home Equity – Key Credit Statistics (1)



(Dollars in millions)							March 31 2024		December 31 2023

Outstandings							$	25,185	$	25,527
Accruing past due 30 days or more				83		95
Nonperforming loans (2)							438		450
Percent of portfolio
Refreshed CLTV greater than 90 but less than or equal to 100		—	%	—	%
Refreshed CLTV greater than 100				—		—
Refreshed FICO below 620							3		3

(1)Outstandings, accruing past due, nonperforming loans and percentages of the portfolio exclude loans accounted for under the fair value option.

(2)Includes loans that are contractually current that have not yet demonstrated a sustained period of payment performance following a modification.

Nonperforming outstanding balances in the home equity portfolio decreased $12 million to $438 million at March 31, 2024, primarily driven by paydowns and payoffs and returns to performing status outpacing new additions. Of the nonperforming home equity loans at March 31, 2024, $255 million, or 58 percent, were current on contractual payments. In addition, $101 million, or 23 percent, were 180 days or more past due and had been written down to the estimated fair value of the collateral, less costs to sell. Accruing loans that were 30 days or more past due remained relatively unchanged during the three months ended March 31, 2024.

Of the $25.2 billion in total home equity portfolio outstandings at March 31, 2024, as shown in Table 20, 10 percent require interest-only payments. The outstanding balance of HELOCs that had reached the end of their draw period and entered the amortization period was $3.8 billion at March 31, 2024. The HELOCs that have entered the amortization period have experienced a higher percentage of early stage delinquencies and nonperforming status when compared to the HELOC portfolio as a whole. At March 31, 2024, $33 million, or one percent, of outstanding HELOCs that had entered the

amortization period were accruing past due 30 days or more. In addition, at March 31, 2024, $274 million, or seven percent, were nonperforming.

For our interest-only HELOC portfolio, we do not actively track how many of our home equity customers pay only the minimum amount due on their home equity loans and lines; however, we can infer some of this information through a review of our HELOC portfolio that we service and is still in its revolving period. During the three months ended March 31, 2024, 28 percent of these customers with an outstanding balance did not pay any principal on their HELOCs.

Table 21 presents outstandings, nonperforming balances and net recoveries by certain state concentrations for the home equity portfolio. In the New York area, the New York-Northern New Jersey-Long Island MSA made up 11 percent of the outstanding home equity portfolio at both March 31, 2024 and December 31, 2023. The Los Angeles-Long Beach-Santa Ana MSA within California made up 11 percent and 10 percent of the outstanding home equity portfolio at March 31, 2024 and December 31, 2023.



Table 21	Home Equity State Concentrations

		Outstandings (1)				Nonperforming (1)					Net Charge-Offs


		March 31 2024		December 31 2023		March 31 2024		December 31 2023		Three Months Ended March 31
(Dollars in millions)											2024		2023
California		$	6,890	$	6,966	$	108	$	109		$	(3)	$	(1)
Florida		2,543		2,576		51		53			(2)		(3)
New Jersey		1,815		1,870		42		46			(2)		—
New York		1,544		1,590		69		71			—		(2)
Texas		1,422		1,410		15		16			—		—
Other		10,971		11,115		153		155			(6)		(6)
Total home equity loan portfolio		$	25,185	$	25,527	$	438	$	450		$	(13)	$	(12)

(1)Outstandings and nonperforming loans exclude loans accounted for under the fair value option.

Bank of America 26

Credit Card

At March 31, 2024, 97 percent of the credit card portfolio was managed in Consumer Banking with the remainder in GWIM. Outstandings in the credit card portfolio decreased $3.7 billion during the three months ended March 31, 2024 to $98.5 billion primarily driven by a seasonal decline in purchase volume. Net charge-offs increased $398 million to $899 million during the three months ended March 31, 2024 compared to the same period in 2023 primarily due to late-stage delinquent credit card

loans that were charged off. Credit card loans 30 days or more past due and still accruing interest increased $27 million, and 90 days or more past due and still accruing interest increased $75 million at March 31, 2024.

Unused lines of credit for credit card increased to $395.5 billion at March 31, 2024 from $390.2 billion at December 31, 2023.

Table 22 presents certain state concentrations for the credit card portfolio.



Table 22	Credit Card State Concentrations

		Outstandings				Accruing Past Due 90 Days or More					Net Charge-offs


		March 31 2024		December 31 2023		March 31 2024		December 31 2023		Three Months Ended March 31
(Dollars in millions)											2024		2023
California		$	16,377	$	16,952	$	237	$	216		$	161	$	88
Florida		10,254		10,521		178		168			123		69
Texas		8,704		8,978		133		125			90		48
New York		5,540		5,788		83		84			62		39
Washington		5,204		5,352		45		41			27		14
Other		52,374		54,609		623		590			436		243
Total credit card portfolio		$	98,453	$	102,200	$	1,299	$	1,224		$	899	$	501

Direct/Indirect Consumer

At March 31, 2024, 53 percent of the direct/indirect portfolio was included in Consumer Banking (consumer auto and recreational vehicle lending) and 47 percent was included in GWIM (principally securities-based lending loans). Outstandings in the direct/indirect portfolio decreased $619 million during the

three months ended March 31, 2024 to $102.8 billion driven by declines in securities-based lending stemming from paydown activity due to higher interest rates.

Table 23 presents certain state concentrations for the direct/indirect consumer loan portfolio.



Table 23	Direct/Indirect State Concentrations

		Outstandings				Nonperforming					Net Charge-offs


		March 31 2024		December 31 2023		March 31 2024		December 31 2023		Three Months Ended March 31
(Dollars in millions)											2024		2023

California		$	15,325	$	15,416	$	26	$	27		$	15	$	2
Florida		13,557		13,550		17		18			9		—
Texas		9,881		9,668		14		14			8		—
New York		7,320		7,335		11		11			4		—
New Jersey		4,360		4,376		7		5			2		—
Other		52,406		53,123		72		73			27		(1)
Total direct/indirect loan portfolio		$	102,849	$	103,468	$	147	$	148		$	65	$	1

Other Consumer

Other consumer primarily consists of deposit overdraft balances. Net charge-offs decreased $88 million to $74 million during the three months ended March 31, 2024 compared to the same period in 2023, primarily driven by lower overdraft losses from fraud activity.

Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

Table 24 presents nonperforming consumer loans, leases and foreclosed properties activity for the three months ended March 31, 2024 and 2023. During the three months ended March 31,

2024, nonperforming consumer loans of $2.7 billion remained relatively unchanged.

At March 31, 2024, $487 million, or 18 percent, of nonperforming loans were 180 days or more past due and had been written down to their estimated property value less costs to sell. In addition, at March 31, 2024, $1.7 billion, or 61 percent, of nonperforming consumer loans were current and classified as nonperforming loans in accordance with applicable policies.

Foreclosed properties increased $9 million during the three months ended March 31, 2024 to $112 million.

27 Bank of America



Table 24	Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

		Three Months Ended March 31
(Dollars in millions)			2024			2023
Nonperforming loans and leases, January 1			$	2,712		$	2,754
Additions			254			253
Reductions:
Paydowns and payoffs			(131)			(103)
Sales			(1)			(2)
Returns to performing status (1)			(113)			(170)
Charge-offs			(10)			(12)
Transfers to foreclosed properties			(14)			(6)

Total net reductions to nonperforming loans and leases			(15)			(40)
Total nonperforming loans and leases, March 31			2,697			2,714
Foreclosed properties, March 31			112			117
Nonperforming consumer loans, leases and foreclosed properties, March 31 (2)			$	2,809		$	2,831
Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (3)			0.59		%	0.60		%
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties (3)			0.62			0.63

(1)Consumer loans 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.

(2)Includes repossessed non-real estate assets of $22 million and $0 at March 31, 2024 and 2023.

(3)Outstanding consumer loans and leases exclude loans accounted for under the fair value option.

Commercial Portfolio Credit Risk Management

Commercial credit risk is evaluated and managed with the goal that concentrations of credit exposure continue to be aligned with our risk appetite. We review, measure and manage concentrations of credit exposure by industry, product, geography, customer relationship and loan size. We also review, measure and manage commercial real estate loans by geographic location and property type. In addition, within our non-U.S. portfolio, we evaluate exposures by region and by country. Tables 29, 31 and 34 summarize our concentrations. We also utilize syndications of exposure to third parties, loan sales, hedging and other risk mitigation techniques to manage the size and risk profile of the commercial credit portfolio. For more information on our industry concentrations, see Table 31 and Commercial Portfolio Credit Risk Management – Industry Concentrations on page 32.

For more information on our accounting policies regarding delinquencies, nonperforming status, net charge-offs and loan modifications for the commercial portfolio, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

Commercial Credit Portfolio

Outstanding commercial loans and leases increased $1.1 billion during the three months ended March 31, 2024 due to growth in U.S. commercial primarily in Global Banking and GWIM. During the three months ended March 31, 2024, commercial credit quality deteriorated as nonperforming commercial loans increased primarily driven by the commercial real estate office property type, and reservable criticized utilized exposure increased primarily driven by U.S. commercial increases across a broad range of industries. Commercial net charge-offs

increased $316 million to $470 million during the three months ended March 31, 2024 compared to the same period in 2023 primarily due to higher losses in the commercial real estate office portfolio.

With the exception of the office property type, which is further discussed in the Commercial Real Estate section herein, credit quality of commercial real estate borrowers has remained relatively stable since December 31, 2023; however, we are closely monitoring emerging trends and borrower performance in the higher interest rate environment. Recent demand for office space has been stagnant, and future demand for office space continues to be uncertain as companies evaluate space needs with employment models that utilize a mix of remote and conventional office use.

The commercial allowance for loan and lease losses decreased $85 million during the three months ended March 31, 2024 to $4.7 billion. For more information, see Allowance for Credit Losses on page 35.

Total commercial utilized credit exposure decreased $546 million during the three months ended March 31, 2024 to $695.8 billion primarily driven by lower derivative assets. The utilization rate for loans and leases, standby letters of credit (SBLCs) and financial guarantees, and commercial letters of credit, in the aggregate, was 55 percent at both March 31, 2024 and December 31, 2023.

Table 25 presents commercial credit exposure by type for utilized, unfunded and total binding committed credit exposure. Commercial utilized credit exposure includes SBLCs and financial guarantees and commercial letters of credit that have been issued and for which we are legally bound to advance funds under prescribed conditions during a specified time period, and excludes exposure related to trading account assets. Although funds have not yet been advanced, these exposure types are considered utilized for credit risk management purposes.

Bank of America 28



Table 25	Commercial Credit Exposure by Type

		Commercial Utilized (1)				Commercial Unfunded (2, 3, 4)				Total Commercial Committed


(Dollars in millions)		March 31 2024		December 31 2023		March 31 2024		December 31 2023		March 31 2024		December 31 2023
Loans and leases		$	594,884	$	593,767	$	510,338	$	507,641	$	1,105,222	$	1,101,408
Derivative assets (5)		36,236		39,323		—		—		36,236		39,323
Standby letters of credit and financial guarantees		31,396		31,348		1,861		1,953		33,257		33,301
Debt securities and other investments		18,247		20,422		4,299		3,083		22,546		23,505
Loans held-for-sale		7,821		4,338		4,673		4,904		12,494		9,242
Operating leases		5,281		5,312		—		—		5,281		5,312
Commercial letters of credit		1,042		943		248		232		1,290		1,175
Other		846		846		—		—		846		846
Total		$	695,753	$	696,299	$	521,419	$	517,813	$	1,217,172	$	1,214,112

(1)Commercial utilized exposure includes loans of $2.7 billion and $3.3 billion accounted for under the fair value option at March 31, 2024 and December 31, 2023.

(2)Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional amount of $3.1 billion and $2.6 billion at March 31, 2024 and December 31, 2023.

(3)Excludes unused business card lines, which are not legally binding.

(4)Includes the notional amount of unfunded legally binding lending commitments, net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $9.9 billion and $10.3 billion at March 31, 2024 and December 31, 2023.

(5)Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $27.9 billion and $29.4 billion at March 31, 2024 and December 31, 2023. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $57.9 billion and $56.1 billion at March 31, 2024 and December 31, 2023, which consists primarily of other marketable securities.

Nonperforming commercial loans increased $413 million during the three months ended March 31, 2024 primarily in commercial real estate. Table 26 presents our commercial loans and leases portfolio and related credit quality information at March 31, 2024 and December 31, 2023.



Table 26	Commercial Credit Quality

		Outstandings				Nonperforming				Accruing Past Due 90 Days or More

(Dollars in millions)		March 31 2024		December 31 2023		March 31 2024		December 31 2023		March 31 2024		December 31 2023
Commercial and industrial:
U.S. commercial		$	362,744	$	358,931	$	720	$	636	$	106	$	51
Non-U.S. commercial		123,073		124,581		157		175		11		4
Total commercial and industrial		485,817		483,512		877		811		117		55
Commercial real estate		71,652		72,878		2,273		1,927		12		32
Commercial lease financing		14,781		14,854		16		19		13		7
		572,250		571,244		3,166		2,757		142		94
U.S. small business commercial (1)		19,931		19,197		20		16		199		184
Commercial loans excluding loans accounted for under the fair value option		$	592,181	$	590,441	$	3,186	$	2,773	$	341	$	278
Loans accounted for under the fair value option (2)		2,703		3,326
Total commercial loans and leases		$	594,884	$	593,767

(1)Includes card-related products.

(2)Commercial loans accounted for under the fair value option includes U.S. commercial of $1.7 billion and $2.2 billion and non-U.S. commercial of $965 million and $1.2 billion at March 31, 2024 and December 31, 2023. For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.

Table 27 presents net charge-offs and related ratios for the three months ended March 31, 2024 and 2023.



Table 27	Commercial Net Charge-offs and Related Ratios

			Net Charge-offs				Net Charge-off Ratios (1)
		Three Months Ended March 31

(Dollars in millions)			2024		2023		2024		2023
Commercial and industrial:
U.S. commercial			$	66	$	47	0.07	%	0.05	%
Non-U.S. commercial			(9)		20		(0.03)		0.07
Total commercial and industrial			57		67		0.05		0.06
Commercial real estate			304		22		1.70		0.12
Commercial lease financing			1		(1)		0.03		(0.01)
			362		88		0.26		0.06
U.S. small business commercial			108		66		2.22		1.48
Total commercial			$	470	$	154	0.32		0.11

(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.

29 Bank of America

Table 28 presents commercial reservable criticized utilized exposure by loan type. Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories as defined by regulatory authorities. Total commercial reservable criticized utilized exposure increased $1.2 billion during the

three months ended March 31, 2024 primarily driven by U.S. commercial. At both March 31, 2024 and December 31, 2023, 89 percent of commercial reservable criticized utilized exposure was secured.



Table 28	Commercial Reservable Criticized Utilized Exposure (1, 2)




(Dollars in millions)		March 31 2024				December 31 2023
Commercial and industrial:
U.S. commercial		$	12,972	3.34	%	$	12,006	3.12	%
Non-U.S. commercial		1,942		1.51		1,787		1.37
Total commercial and industrial		14,914		2.88		13,793		2.68
Commercial real estate		8,824		12.11		8,749		11.80
Commercial lease financing		178		1.20		166		1.12
		23,916		3.95		22,708		3.76
U.S. small business commercial		613		3.08		592		3.08
Total commercial reservable criticized utilized exposure		$	24,529	3.93		$	23,300	3.74

(1)Total commercial reservable criticized utilized exposure includes loans and leases of $23.7 billion and $22.5 billion and commercial letters of credit of $847 million and $795 million at March 31, 2024 and December 31, 2023.

(2)Percentages are calculated as commercial reservable criticized utilized exposure divided by total commercial reservable utilized exposure for each exposure category.

Commercial and Industrial

Commercial and industrial loans include U.S. commercial and non-U.S. commercial portfolios.

U.S. Commercial

At March 31, 2024, 62 percent of the U.S. commercial loan portfolio, excluding small business, was managed in Global Banking, 22 percent in Global Markets, 14 percent in GWIM (loans that provide financing for asset purchases, business investments and other liquidity needs for high net worth clients) and the remainder primarily in Consumer Banking. U.S. commercial loans increased $3.8 billion, or one percent, during the three months ended March 31, 2024 primarily driven by Global Banking and GWIM. Reservable criticized utilized exposure increased $1.0 billion, or eight percent, driven by a broad range of industries.

Non-U.S. Commercial

At March 31, 2024, 61 percent of the non-U.S. commercial loan portfolio was managed in Global Banking, 38 percent in Global Markets and the remainder primarily in GWIM. Non-U.S. commercial loans decreased $1.5 billion, or one percent, during the three months ended March 31, 2024 primarily driven by Global Banking. Reservable criticized utilized exposure increased $155 million, or nine percent. For information on the non-U.S. commercial portfolio, see Non-U.S. Portfolio on page 34.

Commercial Real Estate

Commercial real estate primarily includes commercial loans secured by non-owner-occupied real estate and is dependent on the sale or lease of the real estate as the primary source of repayment. Outstanding loans decreased $1.2 billion, or two percent, during the three months ended March 31, 2024 to

$71.7 billion with decreases across multiple property types. The commercial real estate portfolio is primarily managed in Global Banking and consists of loans made primarily to public and private developers, and commercial real estate firms. The portfolio remains diversified across property types and geographic regions. California represented the largest state concentration at 20 percent of commercial real estate at both March 31, 2024 and December 31, 2023.

Reservable criticized utilized exposure increased $75 million, or one percent, during the three months ended March 31, 2024. Office loans represented the largest property type concentration at 24 percent of the commercial real estate portfolio at March 31, 2024, and approximately two percent of total loans for the Corporation. This property type is roughly 75 percent Class A and had an origination loan-to-value of approximately 55 percent. Reservable criticized exposure for the office property type was $5.6 billion at March 31, 2024, and approximately $7.0 billion of office loans are scheduled to mature by the end of 2024.

During the three months ended March 31, 2024, net charge-offs increased by $282 million to $304 million compared to the same period in 2023 driven by office loans. We use a number of proactive risk mitigation initiatives to reduce adversely rated exposure in the commercial real estate portfolio, including transfers of deteriorating exposures for management by independent special asset officers and the pursuit of loan restructurings or asset sales to achieve the best results for our customers and the Corporation.

Table 29 presents outstanding commercial real estate loans by geographic region, based on the geographic location of the collateral, and by property type.

Bank of America 30



Table 29	Outstanding Commercial Real Estate Loans


(Dollars in millions)		March 31 2024		December 31 2023
By Geographic Region
Northeast		$	15,743	$	15,920
California		13,988		14,551
Southwest		9,073		9,318
Southeast		8,212		8,368
Florida		4,968		4,986
Illinois		3,341		3,361
Midwest		2,972		3,149
Midsouth		2,858		2,785
Northwest		2,172		2,095
Non-U.S.		6,155		6,052
Other		2,170		2,293
Total outstanding commercial real estate loans		$	71,652	$	72,878
By Property Type
Non-residential
Office		$	17,442	$	17,976
Industrial / Warehouse		14,635		14,746
Multi-family rental		11,414		10,606
Shopping centers / Retail		5,682		5,756
Hotel / Motels		5,434		5,665

Multi-use		2,491		2,681

Other		13,835		14,201
Total non-residential		70,933		71,631
Residential		719		1,247
Total outstanding commercial real estate loans		$	71,652	$	72,878

U.S. Small Business Commercial

The U.S. small business commercial loan portfolio is comprised of small business card loans and small business loans primarily managed in Consumer Banking. Credit card-related products were 54 percent of the U.S. small business commercial portfolio at both March 31, 2024 and December 31, 2023 and represented 98 percent of net charge-offs compared to 99 percent for March 31, 2023. Accruing past due 90 days or more increased $15 million in the three months ended March 31, 2024 driven by deteriorating asset quality in the small business card portfolio.

Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity

Table 30 presents the nonperforming commercial loans, leases and foreclosed properties activity during the three months ended March 31, 2024 and 2023. Nonperforming loans do not include loans accounted for under the fair value option. During the three months ended March 31, 2024, nonperforming commercial loans and leases increased $413 million to $3.2 billion. At March 31, 2024, 97 percent of commercial nonperforming loans, leases and foreclosed properties were secured, and 46 percent were contractually current. Commercial nonperforming loans were carried at 84 percent of their unpaid principal balance, as the carrying value of these loans has been reduced to the estimated collateral value less costs to sell.

31 Bank of America



Table 30	Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2)

		Three Months Ended March 31
(Dollars in millions)			2024			2023
Nonperforming loans and leases, January 1			$	2,773		$	1,054
Additions			1,006			419


Reductions:
Paydowns			(220)			(72)
Sales			(1)			—
Returns to performing status (3)			(4)			(52)
Charge-offs			(368)			(88)

Transfers to loans held-for-sale			—			(57)
Total net additions to nonperforming loans and leases			413			150
Total nonperforming loans and leases, March 31			3,186			1,204






Foreclosed properties, March 31			39			48
Nonperforming commercial loans, leases and foreclosed properties, March 31			$	3,225		$	1,252
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)			0.54		%	0.20		%
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)			0.54			0.21

(1)Balances do not include nonperforming loans held-for-sale of $379 million and $250 million at March 31, 2024 and 2023.

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

(3)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, when the loan otherwise becomes well-secured and is in the process of collection, or when a modified loan demonstrates a sustained period of payment performance.

(4)Outstanding commercial loans exclude loans accounted for under the fair value option.

Industry Concentrations

Table 31 presents commercial committed and utilized credit exposure by industry. For information on net notional credit protection purchased to hedge funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures, see Commercial Portfolio Credit Risk Management – Risk Mitigation.

Commercial credit exposure is diversified across a broad range of industries. Total commercial committed exposure increased $3.1 billion during the three months ended March 31, 2024 to $1.2 trillion. The increase in commercial committed exposure was concentrated in Asset managers and funds, Software and services and Consumer services.

For information on industry limits, see Commercial Portfolio Credit Risk Management – Risk Mitigation in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Asset managers and funds, our largest industry concentration with committed exposure of $172.3 billion, increased $3.0 billion, or two percent, during the three months ended March 31, 2024, which was primarily driven by investment-grade exposures.

Real estate, our second largest industry concentration with committed exposure of $99.3 billion decreased $931 million or one percent during the three months ended March 31, 2024. For more information on the commercial real estate and related portfolios, see Commercial Portfolio Credit Risk Management – Commercial Real Estate on page 30.

Capital goods, our third largest industry concentration with committed exposure of $94.7 billion, decreased $2.3 billion, or two percent, during the three months ended March 31, 2024. The decrease in committed exposure occurred primarily as a result of decreases in Industrial conglomerates and Aerospace and defense, partially offset by an increase in Building products.

Various macroeconomic challenges, including geopolitical tensions, inflationary pressures and elevated interest rates, have led to uncertainty in the U.S. and global economies and have adversely impacted, and may continue to adversely impact, a number of industries. We continue to monitor all industries, particularly higher risk industries that are experiencing or could experience a more significant impact to their financial condition.

Bank of America 32



Table 31	Commercial Credit Exposure by Industry (1)

		Commercial Utilized				Total Commercial Committed (2)

(Dollars in millions)		March 31 2024		December 31 2023		March 31 2024		December 31 2023
Asset managers and funds		$	104,602	$	103,138	$	172,321	$	169,318
Real estate (3)		72,992		73,150		99,338		100,269
Capital goods		49,292		49,698		94,710		97,044
Finance companies		60,501		62,906		89,253		89,119
Healthcare equipment and services		35,013		35,037		61,827		61,766
Materials		25,257		25,223		54,935		55,296
Retailing		25,399		24,561		53,193		54,523
Consumer services		29,287		27,355		51,724		49,105
Food, beverage and tobacco		23,624		23,865		48,283		49,426
Government and public education		31,453		31,051		47,041		45,873
Individuals and trusts		32,800		32,481		44,587		43,938
Commercial services and supplies		23,073		22,642		41,480		41,473
Utilities		17,571		18,610		39,298		39,481
Energy		12,143		12,450		37,978		36,996
Transportation		23,868		24,200		35,924		36,267
Technology hardware and equipment		11,363		11,951		29,605		29,160
Global commercial banks		22,816		22,749		25,667		25,684
Software and services		9,904		9,830		25,257		22,381
Media		12,944		13,033		24,998		24,908
Vehicle dealers		17,365		16,283		23,370		22,570
Consumer durables and apparel		8,948		9,184		20,771		20,732
Pharmaceuticals and biotechnology		7,202		6,852		20,428		22,169
Insurance		8,499		9,371		19,423		19,322
Telecommunication services		9,396		9,224		17,186		17,269
Automobiles and components		7,508		7,049		15,724		16,459
Food and staples retailing		7,512		7,423		13,200		12,496
Financial markets infrastructure (clearinghouses)		2,687		4,229		5,008		6,503
Religious and social organizations		2,734		2,754		4,643		4,565

Total commercial credit exposure by industry		$	695,753	$	696,299	$	1,217,172	$	1,214,112

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

(2)Includes the notional amount of unfunded legally binding lending commitments, net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $9.9 billion and $10.3 billion at March 31, 2024 and December 31, 2023.

(3)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 counterparties using operating cash flows and primary source of repayment as key factors.

Risk Mitigation

We purchase credit protection to cover the funded portion as well as the unfunded portion of certain credit exposures. To lower the cost of obtaining our desired credit protection levels, we may add credit exposure within an industry, borrower or counterparty group by selling protection.

At March 31, 2024 and December 31, 2023, net notional credit default protection purchased in our credit derivatives portfolio to hedge our funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures, was $12.8 billion and $10.9 billion. We recorded net losses of $25 million for the three months ended March 31, 2024 compared to net losses of $77 million for the three months ended March 31, 2023. The gains and losses on these instruments were largely offset by gains and losses on the related exposures. The Value-at-Risk (VaR) results for these exposures are included in the fair value option portfolio information in Table 37. For more information, see Trading Risk Management on page 37.

Tables 32 and 33 present the maturity profiles and the credit exposure debt ratings of the net credit default protection portfolio at March 31, 2024 and December 31, 2023.



Table 32	Net Credit Default Protection by Maturity


		March 31 2024		December 31 2023
Less than or equal to one year		32	%	36	%
Greater than one year and less than or equal to five years		68		64
Greater than five years		—		—
Total net credit default protection		100	%	100	%

33 Bank of America



Table 33	Net Credit Default Protection by Credit Exposure Debt Rating

		Net Notional (1)		Percent of Total		Net Notional (1)		Percent of Total


(Dollars in millions)		March 31 2024				December 31 2023
Ratings (2, 3)
AAA		$	(399)	3.1	%	$	(479)	4.4	%
AA		(1,672)		13.0		(1,080)		9.9
A		(6,038)		47.1		(5,237)		48.2
BBB		(3,660)		28.5		(2,912)		26.8
BB		(623)		4.9		(698)		6.4
B		(395)		3.1		(419)		3.9
CCC and below		(37)		0.3		(52)		0.5
NR (4)		1		—		2		(0.1)
Total net credit default protection		$	(12,823)	100.0	%	$	(10,875)	100.0	%

(1)Represents net credit default protection purchased.

(2)Ratings are refreshed on a quarterly basis.

(3)Ratings of BBB- or higher are considered to meet the definition of investment grade.

(4)NR is comprised of index positions held and any names that have not been rated.

For more information on credit derivatives and counterparty credit risk valuation adjustments, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.

Non-U.S. Portfolio

Our non-U.S. credit and trading portfolios are subject to country risk. We define country risk as the risk of loss from unfavorable economic and political conditions, currency fluctuations, social instability and changes in government policies. A risk management framework is in place to measure, monitor and manage non-U.S. risk and exposures. In addition to the direct risk of doing business in a country, we also are exposed to indirect country risks (e.g., related to the collateral received on secured financing transactions or related to client clearing activities). These indirect exposures are managed in the normal course of business through credit, market and operational risk governance rather than through country risk governance. For more information on our non-U.S. credit and trading portfolios, see Non-U.S. Portfolio in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K. For more information on risks related to our non-U.S. portfolio, see the Geopolitical section within Item 1A. Risk Factors of the Corporation’s 2023 Annual Report on Form 10-K.

Table 34 presents our 20 largest non-U.S. country exposures at March 31, 2024. These exposures accounted for 90 percent and 89 percent of our total non-U.S. exposure at March 31, 2024 and December 31, 2023. Net country exposure for these 20 countries decreased $3.0 billion in 2024 primarily driven by decreases in Canada, Japan, Germany and Australia, partially offset by an increase in the United Kingdom.



Table 34	Top 20 Non-U.S. Countries Exposure

(Dollars in millions)		Funded Loans and Loan Equivalents		Unfunded Loan Commitments		Net Counterparty Exposure		Securities/ Other Investments		Country Exposure at March 31 2024		Hedges and Credit Default Protection		Net Country Exposure at March 31 2024		Increase (Decrease) from December 31 2023
United Kingdom		$	39,799	$	18,178	$	4,301	$	1,628	$	63,906	$	(1,988)	$	61,918	$	5,983
Germany		24,170		9,977		1,496		2,096		37,739		(3,680)		34,059		(1,596)
Canada		11,738		10,149		1,217		3,063		26,167		(497)		25,670		(2,345)
France		14,132		8,921		892		1,744		25,689		(1,406)		24,283		(575)
Australia		13,117		4,699		553		1,763		20,132		(337)		19,795		(1,527)
Brazil		9,546		1,344		811		4,364		16,065		(70)		15,995		712
Japan		9,109		1,905		1,098		3,415		15,527		(779)		14,748		(2,226)
India		6,826		205		671		5,914		13,616		(40)		13,576		1,651
Singapore		5,594		560		122		4,783		11,059		(53)		11,006		189
Ireland		8,013		1,553		71		361		9,998		(51)		9,947		(386)
Mexico		5,052		1,671		594		1,811		9,128		(50)		9,078		159
Switzerland		4,316		3,997		429		340		9,082		(241)		8,841		(388)
China		5,016		285		459		3,028		8,788		(235)		8,553		41
South Korea		4,890		1,039		535		1,773		8,237		(108)		8,129		(331)
Netherlands		2,530		3,660		698		700		7,588		(1,073)		6,515		(634)
Italy		4,047		2,027		232		327		6,633		(822)		5,811		(804)
Hong Kong		3,178		574		408		1,127		5,287		(56)		5,231		(621)
Spain		2,712		1,733		203		779		5,427		(331)		5,096		(500)
Belgium		1,595		1,329		446		192		3,562		(162)		3,400		(47)
Sweden		1,370		2,159		127		125		3,781		(483)		3,298		284
Total top 20 non-U.S. countries exposure		$	176,750	$	75,965	$	15,363	$	39,333	$	307,411	$	(12,462)	$	294,949	$	(2,961)

Our largest non-U.S. country exposure at March 31, 2024 was the United Kingdom with net exposure of $61.9 billion, which represents an increase of $6.0 billion from December 31, 2023. The increase was primarily driven by higher deposits with the central bank. Our second largest non-U.S. country exposure was Germany with net exposure of $34.1 billion at March 31, 2024, a decrease of $1.6 billion from December 31, 2023. The decrease was primarily driven by lower exposure with financial institutions.

Bank of America 34

Allowance for Credit Losses

The allowance for credit losses decreased $180 million from December 31, 2023 to $14.4 billion at March 31, 2024, which included a $111 million reserve decrease related to the commercial portfolio and a $69 million reserve decrease related to the consumer portfolio. The decrease in the allowance was

primarily driven by the commercial portfolio due to an improved macroeconomic outlook.

Table 35 presents an allocation of the allowance for credit losses by product type at March 31, 2024 and December 31, 2023.



Table 35	Allocation of the Allowance for Credit Losses by Product Type


		Amount		Percent of Total		Percent of Loans and Leases Outstanding (1)			Amount		Percent of Total		Percent of Loans and Leases Outstanding (1)
(Dollars in millions)		March 31, 2024						December 31, 2023
Allowance for loan and lease losses
Residential mortgage		$	292	2.21	%	0.13	%		$	339	2.54	%	0.15	%
Home equity		63		0.48		0.25			47		0.35		0.19
Credit card		7,296		55.22		7.41			7,346		55.06		7.19

Direct/Indirect consumer		751		5.68		0.73			715		5.36		0.69
Other consumer		74		0.56		n/m			73		0.55		n/m
Total consumer		8,476		64.15		1.87			8,520		63.86		1.85
U.S. commercial (2)		2,596		19.65		0.68			2,600		19.49		0.69
Non-U.S. commercial		812		6.14		0.66			842		6.31		0.68
Commercial real estate		1,292		9.78		1.80			1,342		10.06		1.84
Commercial lease financing		37		0.28		0.25			38		0.28		0.26
Total commercial		4,737		35.85		0.80			4,822		36.14		0.82
Allowance for loan and lease losses		13,213		100.00	%	1.26			13,342		100.00	%	1.27


Reserve for unfunded lending commitments		1,158							1,209
Allowance for credit losses		$	14,371						$	14,551

(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.

(2)Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.1 billion and $1.0 billion at March 31, 2024 and December 31, 2023.

n/m = not meaningful

Net charge-offs for the three months ended March 31, 2024 were $1.5 billion compared to $807 million for the same period in 2023 primarily due to credit card loans and the commercial real estate office portfolio. The provision for credit losses increased $388 million to $1.3 billion for the three months ended March 31, 2024 compared to the same period in 2023. The provision for credit losses for the three months ended March 31, 2024 was primarily driven by credit card loans and the commercial real estate office portfolio. The provision for credit losses for the consumer portfolio, including unfunded lending commitments, increased $13 million to $959 million for the three months ended March 31, 2024 compared to the same period in 2023. The provision for credit losses for the

commercial portfolio, including unfunded lending commitments, increased $509 million to $360 million for the three months ended March 31, 2024 compared to the same period in 2023.

Table 36 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for the three months ended March 31, 2024 and 2023. For more information on the Corporation’s credit loss accounting policies and activity related to the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

35 Bank of America



Table 36	Allowance for Credit Losses

		Three Months Ended March 31
(Dollars in millions)			2024			2023
Allowance for loan and lease losses, December 31			$	13,342		$	12,682
January 1, 2023 adoption of credit loss standard			—			(243)
Allowance for loan and lease losses, January 1			$	13,342		$	12,439
Loans and leases charged off
Residential mortgage			(8)			(8)
Home equity			(3)			(6)
Credit card			(1,045)			(650)
Direct/Indirect consumer			(102)			(40)
Other consumer			(78)			(171)
Total consumer charge-offs			(1,236)			(875)
U.S. commercial (1)			(196)			(134)
Non-U.S. commercial			(1)			(23)
Commercial real estate			(304)			(24)
Commercial lease financing			(1)			—
Total commercial charge-offs			(502)			(181)
Total loans and leases charged off			(1,738)			(1,056)
Recoveries of loans and leases previously charged off
Residential mortgage			5			7
Home equity			16			18
Credit card			146			149
Direct/Indirect consumer			37			39
Other consumer			4			9
Total consumer recoveries			208			222
U.S. commercial (2)			22			21
Non-U.S. commercial			10			3
Commercial real estate			—			2
Commercial lease financing			—			1
Total commercial recoveries			32			27
Total recoveries of loans and leases previously charged off			240			249
Net charge-offs			(1,498)			(807)

Provision for loan and lease losses			1,370			900
Other			(1)			(18)
Allowance for loan and lease losses, March 31			13,213			12,514




Reserve for unfunded lending commitments, January 1			1,209			1,540
Provision for unfunded lending commitments			(51)			(103)

Reserve for unfunded lending commitments, March 31			1,158			1,437
Allowance for credit losses, March 31			$	14,371		$	13,951

Loan and allowance ratios (3) :
Loans and leases outstanding at March 31			$	1,046,218		$	1,042,009
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at March 31			1.26		%	1.20		%
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at March 31			1.87			1.63
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at March 31			0.80			0.87
Average loans and leases outstanding			$	1,044,723		$	1,036,337
Net charge-offs as a percentage of average loans and leases outstanding			0.58		%	0.32		%

Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at March 31			225			319
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs			2.19			3.83

Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31 (4)			$	8,353		$	7,122
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31 (4)			83		%	138		%

(1)Includes U.S. small business commercial charge-offs of $118 million and $75 million for the three months ended March 31, 2024 and 2023.

(2)Includes U.S. small business commercial recoveries of $10 million and $9 million for the three months ended March 31, 2024 and 2023.

(3)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.

(4)Primarily includes amounts related to credit card and unsecured consumer lending portfolios in Consumer Banking.

Bank of America 36

Market Risk Management

For more information on our market risk management process, see Market Risk Management in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K. For more information on market risks, see the Market section within Item 1A. Risk Factors of the Corporation’s 2023 Annual Report on Form 10-K.

Market risk is the risk that changes in market conditions may adversely impact the value of assets or liabilities, or otherwise negatively impact earnings. This risk is inherent in the financial instruments associated with our operations, primarily within our Global Markets segment. We are also exposed to these risks in other areas of the Corporation (e.g., our ALM activities). In the event of market stress, these risks could have a material impact on our results.

Trading Risk Management

To evaluate risks in our trading activities, we focus on the actual and potential volatility of revenues generated by individual positions as well as portfolios of positions. VaR is a common statistic used to measure market risk. Our primary VaR statistic is equivalent to a 99 percent confidence level, which means that for a VaR with a one-day holding period, there should not be losses in excess of VaR, on average, 99 out of 100 trading days.

Table 37 presents the total market-based portfolio VaR, which is the combination of the total covered positions (and less liquid trading positions) portfolio and the fair value option portfolio. For more information on the market risk VaR for trading activities, see Trading Risk Management in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

The total market-based portfolio VaR results in Table 37 include market risk to which we are exposed from all business segments, excluding credit valuation adjustment (CVA), DVA and related hedges. The majority of this portfolio is within the Global Markets segment.

Table 37 presents period-end, average, high and low daily trading VaR for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023 using a 99 percent confidence level. The amounts disclosed in Table 37 and Table 38 align to the view of covered positions used in the Basel 3 capital calculations. Foreign exchange and commodity positions are always considered covered positions, regardless of trading or banking treatment for the trade, except for structural foreign currency positions that are excluded with prior regulatory approval.

The average of total covered positions and less liquid trading positions portfolio VaR for the three months ended March 31, 2024 compared to the prior quarter remained stable.



Table 37	Market Risk VaR for Trading Activities

		Three Months Ended

		March 31, 2024								December 31, 2023								March 31, 2023
(Dollars in millions)		Period End		Average		High (1)		Low (1)		Period End		Average		High (1)		Low (1)		Period End		Average		High (1)		Low (1)
Foreign exchange		$	34	$	34	$	42	$	27	$	29	$	30	$	43	$	19	$	39	$	32	$	42	$	17
Interest rate		56		63		89		41		51		49		68		35		43		43		56		32
Credit		48		46		55		42		53		55		65		46		52		84		108		52
Equity		19		17		25		13		9		13		20		9		19		19		25		14
Commodities		10		10		12		8		9		9		11		7		11		11		14		8
Portfolio diversification		(97)		(103)		n/a		n/a		(90)		(89)		n/a		n/a		(103)		(122)		n/a		n/a
Total covered positions portfolio		70		67		86		55		61		67		83		52		61		67		92		54
Impact from less liquid exposures (2)		6		13		n/a		n/a		12		12		n/a		n/a		14		42		n/a		n/a
Total covered positions and less liquid trading positions portfolio		76		80		100		69		73		79		101		63		75		109		149		69
Fair value option loans		12		14		17		11		16		19		23		14		15		41		49		15
Fair value option hedges		8		9		12		6		11		14		18		9		14		16		17		14
Fair value option portfolio diversification		(11)		(11)		n/a		n/a		(12)		(18)		n/a		n/a		(19)		(32)		n/a		n/a
Total fair value option portfolio		9		12		16		9		15		15		21		10		10		25		30		10
Portfolio diversification		(5)		(7)		n/a		n/a		(9)		(8)		n/a		n/a		(7)		(10)		n/a		n/a
Total market-based portfolio		$	80	$	85	106		74		$	79	$	86	109		68		$	78	$	124	173		73

(1)The high and low for each portfolio may have occurred on different trading days than the high and low for the components. Therefore the impact from less liquid exposures and the amount of portfolio diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant.

(2)Impact is net of diversification effects between the covered positions and less liquid trading positions portfolios.

n/a = not applicable

The following graph presents the daily covered positions and less liquid trading positions portfolio VaR for the previous five quarters, corresponding to the data in Table 37.

37 Bank of America

Line graph of Daily Total Covered Positions and Less Liquid Trading Portfolio VaR History; please reference Table 37 for data

Additional VaR statistics produced within our single VaR model are provided in Table 38 at the same level of detail as in Table 37. Evaluating VaR with additional statistics allows for an increased understanding of the risks in the portfolio, as the historical market data used in the VaR calculation does not necessarily follow a predefined statistical distribution. Table 38 presents average trading VaR statistics at 99 percent and 95 percent confidence levels for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.



Table 38	Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics


		Three Months Ended
		March 31, 2024				December 31, 2023				March 31, 2023
(Dollars in millions)		99 percent		95 percent		99 percent		95 percent		99 percent		95 percent
Foreign exchange		$	34	$	21	$	30	$	20	$	32	$	20
Interest rate		63		32		49		29		43		22
Credit		46		26		55		31		84		31
Equity		17		7		13		6		19		8
Commodities		10		6		9		6		11		6
Portfolio diversification		(103)		(57)		(89)		(58)		(122)		(53)
Total covered positions portfolio		67		35		67		34		67		34
Impact from less liquid exposures		13		8		12		8		42		8
Total covered positions and less liquid trading positions portfolio		80		43		79		42		109		42
Fair value option loans		14		9		19		12		41		14
Fair value option hedges		9		5		14		8		16		10
Fair value option portfolio diversification		(11)		(7)		(18)		(11)		(32)		(14)
Total fair value option portfolio		12		7		15		9		25		10
Portfolio diversification		(7)		(4)		(8)		(5)		(10)		(7)
Total market-based portfolio		$	85	$	46	$	86	$	46	$	124	$	45

Backtesting

The accuracy of the VaR methodology is evaluated by backtesting, which compares the daily VaR results, utilizing a one-day holding period, against a comparable subset of trading revenue. For more information on our backtesting process, see Trading Risk Management – Backtesting in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

During the three months ended March 31, 2024, there were no days where this subset of trading revenue had losses that exceeded our total covered portfolio VaR, utilizing a one-day holding period.

Total Trading-related Revenue

Total trading-related revenue, excluding brokerage fees, and CVA, DVA and funding valuation adjustment gains (losses), represents the total amount earned from trading positions, including market-based net interest income, which are taken in

a diverse range of financial instruments and markets. For more information, see Trading Risk Management – Total Trading-related Revenue in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

The following histogram is a graphic depiction of trading volatility and illustrates the daily level of trading-related revenue for the three months ended March 31, 2024 compared to the three months ended December 31, 2023. During the three months ended March 31, 2024, positive trading-related revenue was recorded for 100 percent of the trading days, of which 97 percent were daily trading gains of over $25 million. This compares to the three months ended December 31, 2023 where positive trading-related revenue was recorded for 100 percent of the trading days, of which 85 percent were daily trading gains of over $25 million.

Bank of America 38

Bar graph of Daily Total Covered Positions and Less Liquid Trading Portfolio VaR History; please reference previous paragraph for data

Trading Portfolio Stress Testing

Because the very nature of a VaR model suggests results can exceed our estimates and it is dependent on a limited historical window, we also stress test our portfolio using scenario analysis. This analysis estimates the change in the value of our trading portfolio that may result from abnormal market movements. For more information, see Trading Risk Management – Trading Portfolio Stress Testing in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Interest Rate Risk Management for the Banking Book

The following discussion presents net interest income for banking book activities. For more information, see Interest Rate Risk Management for the Banking Book in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Table 39 presents the spot and 12-month forward rates used in our baseline forecasts at March 31, 2024 and December 31, 2023.



Table 39	Forward Rates


		Federal Funds		SOFR		10-Year SOFR
		March 31, 2024
Spot rates		5.50	%	5.34	%	3.84	%
12-month forward rates		4.50		4.43		3.68

		December 31, 2023

Spot rates		5.50	%	5.38	%	3.47	%
12-month forward rates		3.89		3.93		3.32

Table 40 shows the pretax impact to forecasted net interest income over the next 12 months from March 31, 2024 and December 31, 2023 resulting from instantaneous parallel and non-parallel shocks to the market-based forward curve. Periodically, we evaluate the scenarios presented so that they are meaningful in the context of the current rate environment. The interest rate scenarios also assume U.S. dollar interest rates are floored at zero.

During the three months ended March 31, 2024, the overall decrease in asset sensitivity of our balance sheet to higher and lower rate scenarios was primarily due to higher expenses on interest-bearing deposits as a result of higher forward rates. We continue to be asset sensitive to a parallel upward move in interest rates with the majority of that impact coming from the

short end of the yield curve. Additionally, higher interest rates negatively impact the fair value of our debt securities classified as available for sale and adversely affect accumulated OCI and thus capital levels under the Basel 3 capital rules. Under instantaneous upward parallel shifts, the near-term adverse impact to Basel 3 capital would be reduced over time by offsetting positive impacts to net interest income generated from the banking book activities. For more information on Basel 3, see Capital Management – Regulatory Capital on page 16.



Table 40	Estimated Banking Book Net Interest Income Sensitivity to Curve Changes

		Short Rate (bps)	Long Rate (bps)

(Dollars in millions)				March 31 2024		December 31 2023

Parallel Shifts
+100 bps instantaneous shift		+100	+100	$	3,037	$	3,476

-100 bps instantaneous shift		-100	-100	(2,869)		(3,077)
Flatteners
Short-end instantaneous change		+100	—	2,844		3,242

Long-end instantaneous change		—	-100	(227)		(257)
Steepeners

Short-end instantaneous change		-100	—	(2,596)		(2,773)
Long-end instantaneous change		—	+100	226		272

The sensitivity analysis in Table 40 assumes that we take no action in response to these rate shocks and does not assume any change in other macroeconomic variables normally correlated with changes in interest rates. As part of our ALM activities, we use securities, certain residential mortgages, and interest rate and foreign exchange derivatives in managing interest rate sensitivity.

The behavior of our deposit portfolio in the baseline forecast and in alternate interest rate scenarios is a key assumption in our projected estimates of net interest income. The sensitivity analysis in Table 40 assumes no change in deposit portfolio size or mix from the baseline forecast in alternate rate environments. In higher rate scenarios, the increase in net interest income would be impacted by any customer activity resulting in the replacement of low-cost or noninterest-bearing deposits with higher yielding deposits or market-based funding,

39 Bank of America

as our benefit in those scenarios would be reduced. Conversely, in lower-rate scenarios, any customer activity that results in the replacement of higher yielding deposits or market-based funding with low-cost or noninterest-bearing deposits would reduce our exposure in those scenarios.

For interest rate scenarios larger than 100 bps shifts, it is expected that the interest rate sensitivity will illustrate non-linear behaviors as there are numerous estimates and assumptions, which require a high degree of judgment and are often interrelated, that could impact the outcome. Pertaining to the mortgage-backed securities and residential mortgage portfolio, if long-end interest rates were to significantly decrease over the next twelve months, for example over 200 bps, there would generally be an increase in customer prepayment behaviors with an incremental reduction to net interest income, noting that the extent of changes in customer prepayment activity can be impacted by multiple factors and is not necessarily limited to long-end interest rates. Conversely, if long-end interest rates were to significantly increase over the next twelve months, for example, over 200 bps, customer prepayments would likely modestly decrease and result in an incremental increase to net interest income. In addition, deposit pricing will have non-linear impacts to larger short-end rate movements. In decreasing interest rate scenarios, and particularly where interest rates have decreased to small amounts, the ability to further reduce rates paid is reduced as customer rates near zero. In higher short-end rate scenarios, deposit pricing will likely increase at a faster rate, leading to incremental interest expense and reducing asset sensitivity. While the impact related to the above assumptions used in the asset sensitivity analysis can provide directional analysis on how net interest income will be impacted in changing environments, the ultimate impact is dependent upon the interrelationship of the assumptions and factors, which vary in different macroeconomic scenarios.

Interest Rate and Foreign Exchange Derivative Contracts

We use interest rate and foreign exchange derivative contracts in our ALM activities to manage our interest rate and foreign exchange risks. Specifically, we use those derivatives to manage both the variability in cash flows and changes in fair value of various assets and liabilities arising from those risks. Our interest rate derivative contracts are generally non-leveraged swaps tied to various benchmark interest rates and foreign exchange basis swaps, options, futures and forwards, and our foreign exchange contracts include cross-currency interest rate swaps, foreign currency futures contracts, foreign currency forward contracts and options.

The derivatives used in our ALM activities can be split into two broad categories: designated accounting hedges and other risk management derivatives. Designated accounting hedges are primarily used to manage our exposure to interest rates as described in the Interest Rate Risk Management for the Banking Book section and are included in the sensitivities presented in Table 40. The Corporation also uses foreign currency derivatives in accounting hedges to manage substantially all of the foreign exchange risk of our foreign operations. By hedging the foreign exchange risk of our foreign operations, the Corporation's market risk exposure in this area is not significant.

Risk management derivatives are predominantly used to hedge foreign exchange risks related to various foreign currency-denominated assets and liabilities and eliminate substantially all foreign currency exposures in the cash flows of the Corporation’s non-trading foreign currency-denominated financial

instruments. These foreign exchange derivatives are sensitive to other market risk exposures such as cross-currency basis spreads and interest rate risk. However, as these features are not a significant component of these foreign exchange derivatives, the market risk related to this exposure is not significant. For more information on the accounting for derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements.

Mortgage Banking Risk Management

We originate, fund and service mortgage loans, which subject us to credit, liquidity and interest rate risks, among others. We determine whether loans will be held for investment or held for sale at the time of commitment and manage credit and liquidity risks by selling or securitizing a portion of the loans we originate.

Changes in interest rates impact the value of interest rate lock commitments (IRLCs) and the related residential first mortgage loans held-for-sale (LHFS), as well as the value of the MSRs. Because the interest rate risks of these hedged items offset, we combine them into one overall hedged item with one combined economic hedge portfolio consisting of derivative contracts and securities. For more information on IRLCs and the related residential mortgage LHFS, see Mortgage Banking Risk Management in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

There were no significant gains or losses related to the change in fair value of MSRs, IRLCs and LHFS, net of gains and losses on the hedge portfolio, for the three months ended March 31, 2024 and 2023. For more information on MSRs, see Note 14 – Fair Value Measurements to the Consolidated Financial Statements.

Climate Risk

Climate Risk Management

Climate risk is the risk that climate change or actions taken to mitigate climate change expose the Corporation to economic, legal/regulatory, operational or reputational harm. Climate-related risks are divided into two major categories, both of which span across the seven key risk types discussed in the Managing Risk section in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K: (1) Physical Risk: risks related to the physical impacts of climate change, driven by extreme weather events such as hurricanes and floods, as well as chronic longer-term shifts such as rising average global temperatures and sea levels, and (2) Transition Risk: risks related to the transition to a low-carbon economy, which may entail extensive policy, legal, technology and market changes.

Physical risks of climate change, such as more frequent and severe extreme weather events, can increase the Corporation’s risks, including credit risk by diminishing borrowers’ repayment capacity or collateral values, and operational risk by negatively impacting the Corporation’s facilities, employees, or vendors. Transition risks of climate change may amplify credit risks through the financial impacts of changes in policy, technology or the market on the Corporation or our counterparties. Unanticipated market changes can lead to sudden price adjustments and give rise to heightened market risk. Reputational risk can arise if we do not meet our climate-related goals and/or targets, or are perceived to be inadequately responsive to climate change or otherwise.

Our approach to managing climate risk is consistent with our risk management governance structure, from senior management to our Board and its committees, including the

Bank of America 40

Enterprise Risk Committee (ERC) and the Corporate Governance, ESG and Sustainability Committee (CGESC) of the Board, which regularly discuss climate-related topics. The ERC oversees climate risk as set forth in our Risk Framework and Risk Appetite Statement. The CGESC is responsible for overseeing the Corporation’s environmental and sustainability-related activities and practices, and regularly reviews the Corporation’s climate-related policies and practices. Our Climate Risk Council consists of leaders across risk, Front Line Unit and control functions, and meets routinely to discuss our approach to managing climate-related risks.

Our climate risk management efforts are overseen by an officer who reports to the Chief Risk Officer. The Corporation has a Climate and Environmental Risk Management function that is responsible for overseeing climate risk management. They are responsible for establishing the Climate Risk Framework (described below) and governance structure, and providing an independent assessment of enterprise-wide climate risks.

Based on the Corporation’s Risk Framework, in 2023 we created our internal Climate Risk Framework, which addresses how the Corporation identifies, measures, monitors and controls climate risk by enhancing existing risk management processes and also includes examples of how climate risk manifests across the seven risk types. The framework details the roles and responsibilities for climate risk management across our three lines of defense (i.e., Front Line Units, Global Risk Management and Corporate Audit).

For more information on our governance framework, see the Managing Risk section in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K. For more information on climate risk, see Item 1A. Risk Factors of the Corporation’s 2023 Annual Report on Form 10-K.

Climate-related Goals and Targets

In 2021, the Corporation announced a goal of achieving net zero greenhouse gas emissions before 2050 in our financing activities, operations and supply chain (Net Zero goal), and in 2022, we released our Approach to ZeroTM, a framework for how we plan to achieve our Net Zero goal. In line with this approach, we have set interim 2030 targets across our financing activities related to certain high-emitting sectors (2030 Financing Activity Emissions Targets), operations and supply chain, all of which are further supported and complemented by our $1.5 trillion sustainable finance goal (which is aligned with the 17 UN Sustainable Development Goals) of which $1 trillion is dedicated to supporting the transition toward a low-carbon economy, including capital mobilized across clean energy sectors and tailored financial solutions for emerging areas of the low-carbon economy. In particular, we have announced 2030 Financing Activity Emissions Targets for auto manufacturing, aviation, cement, energy, iron and steel, maritime shipping and power generation sectors.

Achieving our climate--related goals and targets, including our Net Zero goal and 2030 Financing Activity Emissions Targets, may require technological advances, clearly defined roadmaps for industry sectors, better emissions data reporting, new standards and public policies, including those that improve the cost of capital for the transition to a low-carbon economy, as well as strong and active engagement with customers, suppliers, investors, government officials and other stakeholders. Activities related to our climate-related goals and targets have not resulted in a significant effect on our results of operations or financial position in the relevant periods presented herein.

For more information on climate-related matters and the Corporation’s climate-related goals and targets, including the Corporation’s plans to achieve its Net Zero goal and its 2030 targets, and progress on its sustainable finance goal, see the Corporation’s website, including its 2023 Task Force on Climate-related Financial Disclosures (TCFD) Report (2023 TCFD Report) and Addendum to the 2023 TCFD Report (2023 TCFD Addendum). The contents of the Corporation’s website, including the 2023 TCFD Report and 2023 TCFD Addendum are not incorporated by reference into this Quarterly Report on Form 10-Q.

The foregoing discussion and the statements on the Corporation’s website, including in the 2023 TCFD Report and 2023 TCFD Addendum, regarding the Corporation’s climate-related goals and targets, its approach with respect to climate risk management, and the nature and extent of climate-related risks, contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Corporation’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.

Complex Accounting Estimates

Our significant accounting principles, are essential in understanding the MD&A. Many of our significant accounting principles require complex judgments to estimate the values of assets and liabilities. We have procedures and processes in place to facilitate making these judgments. For more information, see Complex Accounting Estimates in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K and Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.

41 Bank of America

Non-GAAP Reconciliations

Table 41 provides reconciliations of certain non-GAAP financial measures to the most directly comparable GAAP financial measures.



Table 41	Average and Period-end Supplemental Financial Data and Reconciliations to GAAP Financial Measures (1)




		2024 Quarter		2023 Quarters
(Dollars in millions)		First		Fourth		Third		Second		First














































Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and average tangible common shareholders’ equity
Shareholders’ equity		$	292,511	$	288,618	$	284,975	$	282,425	$	277,252
Goodwill		(69,021)		(69,021)		(69,021)		(69,022)		(69,022)
Intangible assets (excluding MSRs)		(1,990)		(2,010)		(2,029)		(2,049)		(2,068)
Related deferred tax liabilities		874		886		890		895		899
Tangible shareholders’ equity		$	222,374	$	218,473	$	214,815	$	212,249	$	207,061
Preferred stock		(28,397)		(28,397)		(28,397)		(28,397)		(28,397)
Tangible common shareholders’ equity		$	193,977	$	190,076	$	186,418	$	183,852	$	178,664
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity and period-end tangible common shareholders’ equity




Shareholders’ equity		$	293,552	$	291,646	$	287,064	$	283,319	$	280,196
Goodwill		(69,021)		(69,021)		(69,021)		(69,021)		(69,022)
Intangible assets (excluding MSRs)		(1,977)		(1,997)		(2,016)		(2,036)		(2,055)
Related deferred tax liabilities		869		874		886		890		895
Tangible shareholders’ equity		$	223,423	$	221,502	$	216,913	$	213,152	$	210,014
Preferred stock		(28,397)		(28,397)		(28,397)		(28,397)		(28,397)
Tangible common shareholders’ equity		$	195,026	$	193,105	$	188,516	$	184,755	$	181,617
Reconciliation of period-end assets to period-end tangible assets
Assets		$	3,273,803	$	3,180,151	$	3,153,090	$	3,123,198	$	3,194,657
Goodwill		(69,021)		(69,021)		(69,021)		(69,021)		(69,022)
Intangible assets (excluding MSRs)		(1,977)		(1,997)		(2,016)		(2,036)		(2,055)
Related deferred tax liabilities		869		874		886		890		895
Tangible assets		$	3,203,674	$	3,110,007	$	3,082,939	$	3,053,031	$	3,124,475

(1)For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 5.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

See Market Risk Management on page 37 in the MD&A and the sections referenced therein for Quantitative and Qualitative Disclosures about Market Risk.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of the end of the period covered by this report, the Corporation’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness and design of the Corporation’s disclosure controls and procedures (as that term is defined in Rule 13a-15(e) of the Exchange Act). Based upon that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective, as of the end of the period covered by this report.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the three months ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

Bank of America 42

Part I. Financial Information

Item 1. Financial Statements

Bank of America Corporation and Subsidiaries



Consolidated Statement of Income

	Three Months Ended March 31
(In millions, except per share information)		2024		2023
Net interest income
Interest income		$	36,285	$	28,655
Interest expense		22,253		14,207
Net interest income		14,032		14,448

Noninterest income
Fees and commissions		8,660		7,894
Market making and similar activities		3,888		4,712
Other income (loss)		(762)		(796)
Total noninterest income		11,786		11,810
Total revenue, net of interest expense		25,818		26,258

Provision for credit losses		1,319		931

Noninterest expense
Compensation and benefits		10,195		9,918
Occupancy and equipment		1,811		1,799
Information processing and communications		1,800		1,697
Product delivery and transaction related		851		890
Professional fees		548		537
Marketing		455		458
Other general operating		1,577		939


Total noninterest expense		17,237		16,238
Income before income taxes		7,262		9,089
Income tax expense		588		928
Net income		$	6,674	$	8,161
Preferred stock dividends		532		505
Net income applicable to common shareholders		$	6,142	$	7,656

Per common share information
Earnings		$	0.77	$	0.95
Diluted earnings		0.76		0.94

Average common shares issued and outstanding		7,968.2		8,065.9
Average diluted common shares issued and outstanding		8,031.4		8,182.3



Consolidated Statement of Comprehensive Income

	Three Months Ended March 31
(Dollars in millions)		2024		2023
Net income		$	6,674	$	8,161
Other comprehensive income (loss), net-of-tax:
Net change in debt securities		332		555
Net change in debit valuation adjustments		(188)		10
Net change in derivatives		(416)		2,042
Employee benefit plan adjustments		23		10
Net change in foreign currency translation adjustments		(20)		12
Other comprehensive income (loss)		(269)		2,629
Comprehensive income (loss)		$	6,405	$	10,790

See accompanying Notes to Consolidated Financial Statements.

43 Bank of America

Bank of America Corporation and Subsidiaries



Consolidated Balance Sheet

		March 31 2024		December 31 2023
(Dollars in millions)
Assets
Cash and due from banks		$	23,550	$	27,892
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		289,854		305,181
Cash and cash equivalents		313,404		333,073
Time deposits placed and other short-term investments		7,859		8,346
Federal funds sold and securities borrowed or purchased under agreements to resell (includes $158,281 and $133,053 measured at fair value)		316,093		280,624
Trading account assets (includes $154,424 and $130,815 pledged as collateral)		318,364		277,354
Derivative assets		36,236		39,323
Debt securities:
Carried at fair value		323,119		276,852
Held-to-maturity, at cost (fair value $477,748 and $496,597)		586,863		594,555
Total debt securities		909,982		871,407
Loans and leases (includes $2,938 and $3,569 measured at fair value)		1,049,156		1,053,732
Allowance for loan and lease losses		(13,213)		(13,342)
Loans and leases, net of allowance		1,035,943		1,040,390
Premises and equipment, net		11,901		11,855
Goodwill		69,021		69,021
Loans held-for-sale (includes $2,070 and $2,059 measured at fair value)		8,571		6,002
Customer and other receivables		86,106		81,881
Other assets (includes $13,935 and $11,861 measured at fair value)		160,323		160,875
Total assets		$	3,273,803	$	3,180,151

Liabilities
Deposits in U.S. offices:
Noninterest-bearing		$	524,982	$	530,619
Interest-bearing (includes $341 and $284 measured at fair value)		1,304,508		1,273,904
Deposits in non-U.S. offices:
Noninterest-bearing		16,502		16,427
Interest-bearing		100,504		102,877
Total deposits		1,946,496		1,923,827
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $206,867 and $178,609 measured at fair value)		329,658		283,887
Trading account liabilities		114,326		95,530
Derivative liabilities		40,401		43,432
Short-term borrowings (includes $6,611 and $4,690 measured at fair value)		38,895		32,098
Accrued expenses and other liabilities (includes $14,605 and $11,473 measured at fair value and $1,158 and $1,209 of reserve for unfunded lending commitments)		214,129		207,527
Long-term debt (includes $43,975 and $42,809 measured at fair value)		296,346		302,204
Total liabilities		2,980,251		2,888,505
Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)
Shareholders’ equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,088,099 and 4,088,099 shares		28,397		28,397
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,866,868,200 and 7,895,457,665 shares		54,310		56,365
Retained earnings		228,902		224,672
Accumulated other comprehensive income (loss)		(18,057)		(17,788)

Total shareholders’ equity		293,552		291,646
Total liabilities and shareholders’ equity		$	3,273,803	$	3,180,151

	Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
	Trading account assets	$	5,838	$	6,054


	Loans and leases	19,250		18,276
	Allowance for loan and lease losses	(920)		(826)
	Loans and leases, net of allowance	18,330		17,450

	All other assets	256		269
	Total assets of consolidated variable interest entities	$	24,424	$	23,773
	Liabilities of consolidated variable interest entities included in total liabilities above
	Short-term borrowings (includes $23 and $23 of non-recourse short-term borrowings)	$	3,387	$	2,957
	Long-term debt (includes $8,157 and $8,456 of non-recourse debt)	8,157		8,456
	All other liabilities (includes $18 and $19 of non-recourse liabilities)	18		19
	Total liabilities of consolidated variable interest entities	$	11,562	$	11,432

See accompanying Notes to Consolidated Financial Statements.

Bank of America 44

Bank of America Corporation and Subsidiaries



Consolidated Statement of Changes in Shareholders’ Equity

	Preferred Stock		Common Stock and Additional Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
(In millions)			Shares	Amount
Balance, December 31, 2022	$	28,397	7,996.8	$	58,953	$	207,003	$	(21,156)	$	273,197
Cumulative adjustment for adoption of credit loss accounting standard						184				184

Net income						8,161				8,161
Net change in debt securities								555		555
Net change in debit valuation adjustments								10		10
Net change in derivatives								2,042		2,042
Employee benefit plan adjustments								10		10
Net change in foreign currency translation adjustments								12		12
Dividends declared:
Common						(1,774)				(1,774)
Preferred						(505)				(505)


Common stock issued under employee plans, net, and other			42.4	526		(7)				519
Common stock repurchased			(66.8)	(2,215)						(2,215)
Balance, March 31, 2023	$	28,397	7,972.4	$	57,264	$	213,062	$	(18,527)	$	280,196
Balance, December 31, 2023	$	28,397	7,895.5	$	56,365	$	224,672	$	(17,788)	$	291,646


Net income						6,674				6,674
Net change in debt securities								332		332
Net change in debit valuation adjustments								(188)		(188)
Net change in derivatives								(416)		(416)
Employee benefit plan adjustments								23		23
Net change in foreign currency translation adjustments								(20)		(20)
Dividends declared:
Common						(1,910)				(1,910)
Preferred						(532)				(532)


Common stock issued under employee plans, net, and other			44.0	445		(2)				443
Common stock repurchased			(72.6)	(2,500)						(2,500)
Balance, March 31, 2024	$	28,397	7,866.9	$	54,310	$	228,902	$	(18,057)	$	293,552

See accompanying Notes to Consolidated Financial Statements.

45 Bank of America

Bank of America Corporation and Subsidiaries



Consolidated Statement of Cash Flows


	Three Months Ended March 31
(Dollars in millions)	2024		2023
Operating activities
Net income	$	6,674	$	8,161
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	1,319		931
(Gains) losses on sales of debt securities	(10)		210
Depreciation and amortization	538		503
Net (accretion) amortization of discount/premium on debt securities	(352)		34
Deferred income taxes	(512)		(169)
Stock-based compensation	865		794

Loans held-for-sale:
Originations and purchases	(5,843)		(2,285)
Proceeds from sales and paydowns of loans originally classified as held for sale and instruments from related securitization activities	3,244		2,378
Net change in:
Trading and derivative assets/liabilities	(23,795)		(725)
Other assets	(6,026)		(16,078)
Accrued expenses and other liabilities	6,907		(7,066)
Other operating activities, net	1,452		2,012
Net cash used in operating activities	(15,539)		(11,300)
Investing activities
Net change in:
Time deposits placed and other short-term investments	487		(4,512)
Federal funds sold and securities borrowed or purchased under agreements to resell	(32,969)		(30,504)
Debt securities carried at fair value:
Proceeds from sales	16,266		61,493
Proceeds from paydowns and maturities	93,060		19,085
Purchases	(157,726)		(19,104)
Held-to-maturity debt securities:
Proceeds from paydowns and maturities	7,407		8,042
Purchases	—		(38)
Loans and leases:
Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities	2,170		2,168
Purchases	(1,303)		(1,510)
Other changes in loans and leases, net	2,100		(2,319)
Other investing activities, net	(814)		(1,955)
Net cash provided by (used in) investing activities	(71,322)		30,846
Financing activities
Net change in:
Deposits	22,669		(19,939)
Federal funds purchased and securities loaned or sold under agreements to repurchase	45,771		118,745
Short-term borrowings	6,797		29,632
Long-term debt:
Proceeds from issuance	15,662		14,319
Retirement	(16,607)		(11,341)



Common stock repurchased	(2,500)		(2,215)
Cash dividends paid	(2,519)		(2,352)
Other financing activities, net	(615)		(728)
Net cash provided by financing activities	68,658		126,121
Effect of exchange rate changes on cash and cash equivalents	(1,466)		348
Net increase (decrease) in cash and cash equivalents	(19,669)		146,015
Cash and cash equivalents at January 1	333,073		230,203
Cash and cash equivalents at March 31	$	313,404	$	376,218

See accompanying Notes to Consolidated Financial Statements.

Bank of America 46

Bank of America Corporation and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 1 Summary of Significant Accounting Principles

Bank of America Corporation, a bank holding company and a financial holding company, provides a diverse range of financial services and products throughout the U.S. and in certain international markets. The term “the Corporation” as used herein may refer to Bank of America Corporation, individually, Bank of America Corporation and its subsidiaries, or certain of Bank of America Corporation’s subsidiaries or affiliates.

Principles of Consolidation and Basis of Presentation

The Consolidated Financial Statements include the accounts of the Corporation and its majority-owned subsidiaries and those variable interest entities (VIEs) where the Corporation is the primary beneficiary. Intercompany accounts and transactions have been eliminated. Results of operations of acquired companies are included from the dates of acquisition, and for VIEs, from the dates that the Corporation became the primary beneficiary. Assets held in an agency or fiduciary capacity are not included in the Consolidated Financial Statements. The Corporation accounts for investments in companies for which it

owns a voting interest and for which it has the ability to exercise significant influence over operating and financing decisions using the equity method of accounting. These investments, which include the Corporation’s interests in affordable housing and renewable energy partnerships, are recorded in other assets. Equity method investments are subject to impairment testing, and the Corporation’s proportionate share of income or loss is included in other income.

The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could materially differ from those estimates and assumptions.

These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, of the Corporation’s 2023 Annual Report on Form 10-K.

The nature of the Corporation’s business is such that the results of any interim period are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period results, have been made. The Corporation evaluates subsequent events through the date of filing with the Securities and Exchange Commission (SEC).

47 Bank of America

NOTE 2 Net Interest Income and Noninterest Income

The table below presents the Corporation’s net interest income and noninterest income disaggregated by revenue source for the three months ended March 31, 2024 and 2023. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K. For a disaggregation of noninterest income by business segment and All Other, see Note 17 – Business Segment Information.



	Three Months Ended March 31
(Dollars in millions)		2024		2023
Net interest income
Interest income
Loans and leases		$	15,240	$	13,097
Debt securities		6,137		5,460
Federal funds sold and securities borrowed or purchased under agreements to resell		5,175		3,712
Trading account assets		2,455		2,028
Other interest income (1)		7,278		4,358
Total interest income		36,285		28,655

Interest expense
Deposits		9,138		4,314
Short-term borrowings		8,535		6,180
Trading account liabilities		546		504
Long-term debt		4,034		3,209
Total interest expense		22,253		14,207
Net interest income		$	14,032	$	14,448

Noninterest income
Fees and commissions
Card income
Interchange fees (2)		$	931	$	956
Other card income		532		513
Total card income		1,463		1,469
Service charges
Deposit-related fees		1,122		1,097
Lending-related fees		320		313
Total service charges		1,442		1,410
Investment and brokerage services
Asset management fees		3,270		2,918
Brokerage fees		917		934
Total investment and brokerage services		4,187		3,852
Investment banking fees
Underwriting income		901		569
Syndication fees		294		231
Financial advisory services		373		363
Total investment banking fees		1,568		1,163
Total fees and commissions		8,660		7,894
Market making and similar activities		3,888		4,712
Other income (loss)		(762)		(796)
Total noninterest income		$	11,786	$	11,810

(1)Includes interest income on interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks of $4.5 billion and $2.0 billion for the three months ended March 31, 2024 and 2023.

(2)Gross interchange fees and merchant income were $3.2 billion for both the three months ended March 31, 2024 and 2023 and are presented net of $2.3 billion and $2.2 billion of expenses for rewards and partner payments as well as certain other card costs for the same periods.

Bank of America 48

NOTE 3 Derivatives

Derivative Balances

Derivatives are entered into on behalf of customers, for trading or to support risk management activities. Derivatives used in risk management activities include derivatives that may or may not be designated in qualifying hedge accounting relationships. Derivatives that are not designated in qualifying hedge accounting relationships are referred to as other risk management derivatives. For more information on the Corporation’s derivatives and hedging activities, see Note 1 – Summary of Significant Accounting Principles and Note 3 –

Derivatives to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K. The following tables present derivative instruments included on the Consolidated Balance Sheet in derivative assets and liabilities at March 31, 2024 and December 31, 2023. Balances are presented on a gross basis, prior to the application of counterparty and cash collateral netting. Total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and have been reduced by cash collateral received or paid.



			March 31, 2024
			Gross Derivative Assets						Gross Derivative Liabilities
(Dollars in billions)	Contract/ Notional (1)		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total
Interest rate contracts
Swaps	$	18,724.5	$	75.6	$	8.1	$	83.7	$	61.9	$	19.8	$	81.7
Futures and forwards	3,410.1		1.5		—		1.5		1.5		—		1.5
Written options (2)	1,890.9		—		—		—		31.5		—		31.5
Purchased options (3)	1,813.2		32.4		—		32.4		—		—		—
Foreign exchange contracts
Swaps	1,863.3		37.3		0.3		37.6		35.2		0.2		35.4
Spot, futures and forwards	4,995.8		28.9		6.1		35.0		28.1		6.0		34.1
Written options (2)	513.5		—		—		—		6.0		—		6.0
Purchased options (3)	471.2		5.9		—		5.9		—		—		—
Equity contracts
Swaps	461.9		13.6		—		13.6		17.0		—		17.0
Futures and forwards	148.7		2.7		—		2.7		1.9		—		1.9
Written options (2)	927.7		—		—		—		65.5		—		65.5
Purchased options (3)	806.2		54.8		—		54.8		—		—		—
Commodity contracts
Swaps	61.6		3.1		—		3.1		4.6		—		4.6
Futures and forwards	191.4		4.9		—		4.9		4.1		0.5		4.6
Written options (2)	72.6		—		—		—		3.0		—		3.0
Purchased options (3)	79.1		2.7		—		2.7		—		—		—
Credit derivatives (4)
Purchased credit derivatives:
Credit default swaps	391.3		1.8		—		1.8		2.7		—		2.7
Total return swaps/options	85.1		0.8		—		0.8		0.9		—		0.9
Written credit derivatives:
Credit default swaps	366.4		2.2		—		2.2		1.5		—		1.5
Total return swaps/options	78.6		1.0		—		1.0		0.4		—		0.4
Gross derivative assets/liabilities			$	269.2	$	14.5	$	283.7	$	265.8	$	26.5	$	292.3
Less: Legally enforceable master netting agreements							(219.6)						(219.6)
Less: Cash collateral received/paid							(27.9)						(32.3)
Total derivative assets/liabilities							$	36.2					$	40.4

(1)Represents the total contract/notional amount of derivative assets and liabilities outstanding.

(2)Includes certain out-of-the-money purchased options that have a liability amount primarily due to the deferral of option premiums to the end of the contract.

(3)Includes certain out-of-the-money written options that have an asset amount primarily due to the deferral of option premiums to the end of the contract.

(4)The net derivative asset (liability) and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $571 million and $337.8 billion at March 31, 2024.

49 Bank of America



			December 31, 2023
			Gross Derivative Assets						Gross Derivative Liabilities
(Dollars in billions)	Contract/ Notional (1)		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total
Interest rate contracts
Swaps	$	15,715.2	$	78.4	$	7.9	$	86.3	$	66.6	$	18.5	$	85.1
Futures and forwards	2,803.8		5.1		—		5.1		7.0		—		7.0
Written options (2)	1,807.7		—		—		—		31.7		—		31.7
Purchased options (3)	1,714.9		32.9		—		32.9		—		—		—
Foreign exchange contracts
Swaps	1,814.7		41.1		0.2		41.3		38.2		0.5		38.7
Spot, futures and forwards	3,561.7		37.2		6.1		43.3		40.3		6.2		46.5
Written options (2)	462.8		—		—		—		6.8		—		6.8
Purchased options (3)	405.3		6.2		—		6.2		—		—		—
Equity contracts
Swaps	427.0		13.3		—		13.3		16.7		—		16.7
Futures and forwards	136.9		2.1		—		2.1		1.6		—		1.6
Written options (2)	854.9		—		—		—		50.1		—		50.1
Purchased options (3)	716.2		44.1		—		44.1		—		—		—
Commodity contracts
Swaps	59.0		3.1		—		3.1		4.5		—		4.5
Futures and forwards	187.8		3.8		—		3.8		3.1		0.4		3.5
Written options (2)	67.1		—		—		—		3.3		—		3.3
Purchased options (3)	70.9		3.0		—		3.0		—		—		—
Credit derivatives (4)
Purchased credit derivatives:
Credit default swaps	312.8		1.7		—		1.7		2.5		—		2.5
Total return swaps/options	69.4		0.8		—		0.8		1.3		—		1.3
Written credit derivatives:
Credit default swaps	289.1		2.2		—		2.2		1.6		—		1.6
Total return swaps/options	68.6		1.1		—		1.1		0.3		—		0.3
Gross derivative assets/liabilities			$	276.1	$	14.2	$	290.3	$	275.6	$	25.6	$	301.2
Less: Legally enforceable master netting agreements							(221.6)						(221.6)
Less: Cash collateral received/paid							(29.4)						(36.2)
Total derivative assets/liabilities							$	39.3					$	43.4

(1)Represents the total contract/notional amount of derivative assets and liabilities outstanding.

(2)Includes certain out-of-the-money purchased options that have a liability amount primarily due to the deferral of option premiums to the end of the contract.

(3)Includes certain out-of-the-money written options that have an asset amount primarily due to the deferral of option premiums to the end of the contract.

Offsetting of Derivatives

The Corporation enters into International Swaps and Derivatives Association, Inc. (ISDA) master netting agreements or similar agreements with substantially all of the Corporation’s derivative counterparties. For more information, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.

The following table presents derivative instruments included in derivative assets and liabilities on the Consolidated Balance Sheet at March 31, 2024 and December 31, 2023 by primary risk (e.g., interest rate risk) and the platform, where applicable,

on which these derivatives are transacted. Balances are presented on a gross basis, prior to the application of counterparty and cash collateral netting. Total gross derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements, which include reducing the balance for counterparty netting and cash collateral received or paid.

For more information on offsetting of securities financing agreements, see Note 9 – Securities Financing Agreements, Collateral and Restricted Cash.

Bank of America 50



Offsetting of Derivatives (1)

	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
(Dollars in billions)	March 31, 2024				December 31, 2023
Interest rate contracts
Over-the-counter	$	115.1	$	110.6	$	119.2	$	117.7
Exchange-traded	0.1		0.1		0.2		0.2
Over-the-counter cleared	2.0		1.8		4.4		3.3
Foreign exchange contracts
Over-the-counter	77.4		74.6		89.7		90.4
Over-the-counter cleared	0.2		0.2		0.2		0.2
Equity contracts
Over-the-counter	26.4		36.6		24.7		32.2
Exchange-traded	44.2		46.1		34.4		33.9
Commodity contracts
Over-the-counter	7.6		9.6		6.6		8.4
Exchange-traded	2.0		1.9		2.3		2.1
Over-the-counter cleared	0.5		0.5		0.4		0.5
Credit derivatives
Over-the-counter	5.6		5.4		5.7		5.6

Total gross derivative assets/liabilities, before netting
Over-the-counter	232.1		236.8		245.9		254.3
Exchange-traded	46.3		48.1		36.9		36.2
Over-the-counter cleared	2.7		2.5		5.0		4.0
Less: Legally enforceable master netting agreements and cash collateral received/paid
Over-the-counter	(199.9)		(204.3)		(212.1)		(218.9)
Exchange-traded	(45.3)		(45.3)		(35.4)		(35.4)
Over-the-counter cleared	(2.3)		(2.3)		(3.5)		(3.5)
Derivative assets/liabilities, after netting	33.6		35.5		36.8		36.7
Other gross derivative assets/liabilities (2)	2.6		4.9		2.5		6.7
Total derivative assets/liabilities	36.2		40.4		39.3		43.4
Less: Financial instruments collateral (3)	(15.8)		(14.1)		(15.5)		(13.0)
Total net derivative assets/liabilities	$	20.4	$	26.3	$	23.8	$	30.4

(1)Over-the-counter derivatives include bilateral transactions between the Corporation and a particular counterparty. Over-the-counter cleared derivatives include bilateral transactions between the Corporation and a counterparty where the transaction is cleared through a clearinghouse. Exchange-traded derivatives include listed options transacted on an exchange.

(2)Consists of derivatives entered into under master netting agreements where the enforceability of these agreements is uncertain under bankruptcy laws in some countries or industries.

(3)Amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. Financial instruments collateral includes securities collateral received or pledged and cash securities held and posted at third-party custodians that are not offset on the Consolidated Balance Sheet but shown as a reduction to derive net derivative assets and liabilities.

Derivatives Designated as Accounting Hedges

The Corporation uses various types of interest rate and foreign exchange derivative contracts to protect against changes in the fair value of its assets and liabilities due to fluctuations in interest rates and foreign exchange rates (fair value hedges). The Corporation also uses these types of contracts to protect against changes in the cash flows of its assets and liabilities, and other forecasted transactions (cash flow hedges). The Corporation hedges its net investment in consolidated non-U.S.

operations determined to have functional currencies other than the U.S. dollar using forward exchange contracts and cross-currency basis swaps, and by issuing foreign currency- denominated debt (net investment hedges).

Fair Value Hedges

The table below summarizes information related to fair value hedges for the three months ended March 31, 2024 and 2023.



Gains and Losses on Derivatives Designated as Fair Value Hedges

	Three Months Ended March 31
	2024				2023

(Dollars in millions)	Derivative		Hedged Item		Derivative		Hedged Item
Interest rate risk on long-term debt (1)	$	(3,104)	$	3,090	$	3,308	$	(3,305)
Interest rate and foreign currency risk (2)	344		(329)		8		(8)
Interest rate risk on available-for-sale securities (3)	2,490		(2,502)		(3,027)		3,016
Price risk on commodity inventory (4)	(220)		220		(519)		519
Total	$	(490)	$	479	$	(230)	$	222

(1)Amounts are recorded in interest expense in the Consolidated Statement of Income.

(2)Represents cross-currency interest rate swaps related to available-for-sale debt securities and long-term debt. For the three months ended March 31, 2024 and 2023, the derivative amount includes gains (losses) of $9 million and $0 in interest income, $0 and $8 million in interest expense, $324 million and $1 million in market making and similar activities, and $11 million and $(1) million in accumulated other comprehensive income (OCI). Line item totals are in the Consolidated Statement of Income and on the Consolidated Balance Sheet.

(3)Amounts are recorded in interest income in the Consolidated Statement of Income.

(4)Amounts are recorded in market making and similar activities in the Consolidated Statement of Income.

The following table summarizes the carrying value of hedged assets and liabilities that are designated and qualifying in fair value hedging relationships along with the cumulative amount of fair value hedging adjustments included in the carrying value that have been recorded in the current hedging relationships. These fair value hedging adjustments are open basis adjustments that are not subject to amortization as long as the hedging relationship remains designated.

51 Bank of America



Designated Fair Value Hedged Assets and Liabilities

	March 31, 2024				December 31, 2023
(Dollars in millions)	Carrying Value		Cumulative Fair Value Adjustments (1)		Carrying Value		Cumulative Fair Value Adjustments (1)

Long-term debt (2)	$	197,036	$	(8,615)	$	203,986	$	(5,767)
Available-for-sale debt securities (2, 3, 4)	181,553		(4,598)		134,077		(1,793)
Trading account assets (5)	5,303		397		7,475		414

(1)Increase (decrease) to carrying value.

(2)The cumulative fair value adjustments remaining on long-term debt and available-for-sale debt securities from discontinued hedging relationships resulted in a decrease of $10.5 billion in the related liability at both March 31, 2024 and December 31, 2023, and a decrease in the related asset of $5.3 billion and $5.6 billion at March 31, 2024 and December 31, 2023, which are being amortized over the remaining contractual life of the de-designated hedged items.

(3)These amounts include the amortized cost of the financial assets in closed portfolios used to designate hedging relationships in which the hedged item is a stated layer that is expected to be remaining at the end of the hedging relationship (i.e. portfolio layer hedging relationship). At March 31, 2024 and December 31, 2023, the amortized cost of the closed portfolios used in these hedging relationships was $37.9 billion and $39.1 billion, of which $22.2 billion and $22.5 billion were designated in a portfolio layer hedging relationship. At March 31, 2024 and December 31, 2023, the cumulative adjustment associated with these hedging relationships was a decrease of $339 million and an increase of $48 million.

(4)Carrying value represents amortized cost.

(5)Represents hedging activities related to certain commodities inventory.

Cash Flow and Net Investment Hedges

The table below summarizes certain information related to cash flow hedges and net investment hedges for the three months ended March 31, 2024 and 2023. Of the $8.4 billion after-tax net loss ($11.2 billion pretax) on derivatives in accumulated OCI at March 31, 2024, losses of $3.9 billion after-tax ($5.2 billion pretax) related to both open and terminated cash flow hedges are expected to be reclassified into earnings in the next 12 months. These net losses reclassified into earnings are

expected to primarily decrease net interest income related to the respective hedged items. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately nine years. For terminated cash flow hedges, the time period over which the forecasted transactions will be recognized in interest income is approximately five years, with the aggregated amount beyond this time period being insignificant.



Gains and Losses on Derivatives Designated as Cash Flow and Net Investment Hedges

					Three Months Ended March 31
					2024				2023
(Dollars in millions, amounts pretax)	Gains (Losses) Recognized in Accumulated OCI on Derivatives	Gains (Losses) in Income Reclassified from Accumulated OCI	Gains (Losses) Recognized in Accumulated OCI on Derivatives	Gains (Losses) in Income Reclassified from Accumulated OCI

Cash flow hedges
Interest rate risk on variable-rate portfolios (1)					$	(1,090)	$	(514)	$	2,550	$	(160)
Price risk on forecasted MBS purchases (1)					—		(2)		2		—
Price risk on certain compensation plans (2)					14		9		17		5
Total					$	(1,076)	$	(507)	$	2,569	$	(155)
Net investment hedges
Foreign exchange risk (3)					$	797	$	—	$	(377)	$	—

(1)Amounts reclassified from accumulated OCI are recorded in interest income in the Consolidated Statement of Income.

(2)Amounts reclassified from accumulated OCI are recorded in compensation and benefits expense in the Consolidated Statement of Income.

(3)Amounts reclassified from accumulated OCI are recorded in other income in the Consolidated Statement of Income. For the three months ended March 31, 2024 and 2023, amounts excluded from effectiveness testing and recognized in market making and similar activities were gains of $66 million and $33 million.

Bank of America 52

Other Risk Management Derivatives

Other risk management derivatives are used by the Corporation to reduce certain risk exposures by economically hedging various assets and liabilities. The table below presents gains (losses) on these derivatives for the three months ended March 31, 2024 and 2023. These gains (losses) are largely offset by the income or expense recorded on the hedged item.



Gains and Losses on Other Risk Management Derivatives

	Three Months Ended March 31
(Dollars in millions)	2024		2023
Interest rate risk on mortgage activities (1, 2)	$	(30)	$	26
Credit risk on loans (2)	(19)		(28)
Interest rate and foreign currency risk on asset and liability management activities (3)	91		(122)
Price risk on certain compensation plans (4)	242		195

(1)Includes hedges of interest rate risk on mortgage servicing rights (MSRs) and interest rate lock commitments (IRLCs) to originate mortgage loans that will be held for sale.

(2)Gains (losses) on these derivatives are recorded in other income.

(3)Gains (losses) on these derivatives are recorded in market making and similar activities.

(4)Gains (losses) on these derivatives are recorded in compensation and benefits expense.

Transfers of Financial Assets with Risk Retained through Derivatives

The Corporation enters into certain transactions involving the transfer of financial assets that are accounted for as sales where substantially all of the economic exposure to the transferred financial assets is retained through derivatives (e.g., interest rate and/or credit), but the Corporation does not retain control over the assets transferred. At March 31, 2024 and December 31, 2023, the Corporation had transferred $4.2 billion and $4.1 billion of non-U.S. government-guaranteed mortgage-backed securities to a third-party trust and retained economic exposure to the transferred assets through derivative contracts. In connection with these transfers, the Corporation received gross cash proceeds of $4.2 billion at the transfer dates. At both March 31, 2024 and December 31, 2023, the fair value of the transferred securities was $4.1 billion.

Sales and Trading Revenue

The Corporation enters into trading derivatives to facilitate client transactions and to manage risk exposures arising from trading account assets and liabilities. It is the Corporation’s policy to include these derivative instruments in its trading activities, which include derivatives and non-derivative cash instruments. The resulting risk from these derivatives is managed on a portfolio basis as part of the Corporation’s Global Markets business segment. For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.

The table below, which includes both derivatives and non-derivative cash instruments, identifies the amounts in the respective income statement line items attributable to the Corporation’s sales and trading revenue in Global Markets, categorized by primary risk, for the three months ended March 31, 2024 and 2023. This table includes debit valuation adjustment (DVA) and funding valuation adjustment (FVA) gains (losses). Global Markets results in Note 17 – Business Segment Information are presented on a fully taxable-equivalent (FTE) basis. The table below is not presented on an FTE basis.



Sales and Trading Revenue

		Market making and similar activities		Net Interest Income		Other (1)		Total
(Dollars in millions)	Three Months Ended March 31, 2024
Interest rate risk		$	853	$	230	$	77	$	1,160
Foreign exchange risk		437		34		23		494
Equity risk		1,864		(429)		427		1,862
Credit risk		551		604		131		1,286
Other risk (2)		125		29		(13)		141
Total sales and trading revenue		$	3,830	$	468	$	645	$	4,943

	Three Months Ended March 31, 2023
Interest rate risk		$	1,244	$	99	$	86	$	1,429
Foreign exchange risk		402		49		24		475
Equity risk		2,000		(838)		460		1,622
Credit risk		480		666		115		1,261
Other risk (2)		272		(78)		(4)		190
Total sales and trading revenue		$	4,398	$	(102)	$	681	$	4,977

(1)Represents amounts in investment and brokerage services and other income that are recorded in Global Markets and included in the definition of sales and trading revenue. Includes investment and brokerage services revenue of $494 million and $529 million for the three months ended March 31, 2024 and 2023.

(2)Includes commodity risk.

Credit Derivatives

The Corporation enters into credit derivatives primarily to facilitate client transactions and to manage credit risk exposures. Credit derivatives are classified as investment and non-investment grade based on the credit quality of the underlying referenced obligation. The Corporation considers ratings of BBB- or higher as investment grade. Non-investment grade includes non-rated credit derivative instruments. The Corporation discloses internal categorizations of investment grade and non-investment grade consistent with how risk is managed for these instruments. For more information on credit derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.

53 Bank of America

Credit derivative instruments where the Corporation is the seller of credit protection and their expiration at March 31, 2024 and December 31, 2023 are summarized in the table below.



Credit Derivative Instruments

	Less than One Year		One to Three Years		Three to Five Years		Over Five Years		Total
	March 31, 2024
(Dollars in millions)	Carrying Value
Credit default swaps:
Investment grade	$	1	$	7	$	15	$	21	$	44
Non-investment grade	23		237		670		552		1,482
Total	24		244		685		573		1,526
Total return swaps/options:
Investment grade	18		—		—		—		18
Non-investment grade	237		63		70		7		377
Total	255		63		70		7		395
Total credit derivatives	$	279	$	307	$	755	$	580	$	1,921
Credit-related notes:
Investment grade	$	—	$	—	$	10	$	558	$	568
Non-investment grade	—		6		18		1,012		1,036
Total credit-related notes	$	—	$	6	$	28	$	1,570	$	1,604
	Maximum Payout/Notional
Credit default swaps:
Investment grade	$	37,594	$	68,197	$	114,691	$	49,572	$	270,054
Non-investment grade	16,093		31,315		36,608		12,291		96,307
Total	53,687		99,512		151,299		61,863		366,361
Total return swaps/options:
Investment grade	49,019		1,770		1,378		894		53,061
Non-investment grade	20,858		1,544		2,205		889		25,496
Total	69,877		3,314		3,583		1,783		78,557
Total credit derivatives	$	123,564	$	102,826	$	154,882	$	63,646	$	444,918

	December 31, 2023
	Carrying Value
Credit default swaps:
Investment grade	$	—	$	11	$	26	$	20	$	57
Non-investment grade	38		277		601		595		1,511
Total	38		288		627		615		1,568
Total return swaps/options:
Investment grade	59		—		—		—		59
Non-investment grade	149		69		56		5		279
Total	208		69		56		5		338
Total credit derivatives	$	246	$	357	$	683	$	620	$	1,906
Credit-related notes:
Investment grade	$	—	$	—	$	—	$	859	$	859
Non-investment grade	—		5		16		1,103		1,124
Total credit-related notes	$	—	$	5	$	16	$	1,962	$	1,983
	Maximum Payout/Notional
Credit default swaps:
Investment grade	$	33,750	$	65,015	$	83,313	$	17,023	$	199,101
Non-investment grade	18,061		32,155		33,934		5,827		89,977
Total	51,811		97,170		117,247		22,850		289,078
Total return swaps/options:
Investment grade	40,515		1,503		1,561		23		43,602
Non-investment grade	20,694		1,414		1,907		988		25,003
Total	61,209		2,917		3,468		1,011		68,605
Total credit derivatives	$	113,020	$	100,087	$	120,715	$	23,861	$	357,683

The notional amount represents the maximum amount payable by the Corporation for most credit derivatives. However, the Corporation does not monitor its exposure to credit derivatives based solely on the notional amount because this measure does not take into consideration the probability of occurrence. As such, the notional amount is not a reliable indicator of the Corporation’s exposure to these contracts. Instead, a risk framework is used to define risk tolerances and establish limits so that certain credit risk-related losses occur within acceptable, predefined limits.

Credit-related notes in the table above include investments in securities issued by collateralized debt obligation (CDO), collateralized loan obligation (CLO) and credit-linked note vehicles. These instruments are primarily classified as trading securities. The carrying value of these instruments equals the Corporation’s maximum exposure to loss. The Corporation is not obligated to make any payments to the entities under the terms of the securities owned.

Bank of America 54

Credit-related Contingent Features and Collateral

Certain of the Corporation’s derivative contracts contain credit risk-related contingent features, primarily in the form of ISDA master netting agreements and credit support documentation that enhance the creditworthiness of these instruments compared to other obligations of the respective counterparty with whom the Corporation has transacted. These contingent features may be for the benefit of the Corporation as well as its counterparties with respect to changes in the Corporation’s creditworthiness and the mark-to-market exposure under the derivative transactions. At March 31, 2024 and December 31, 2023, the Corporation held cash and securities collateral of $105.1 billion and $104.1 billion and posted cash and securities collateral of $89.7 billion and $93.4 billion in the normal course of business under derivative agreements, excluding cross-product margining agreements where clients are permitted to margin on a net basis for both derivative and secured financing arrangements.

In connection with certain OTC derivative contracts and other trading agreements, the Corporation can be required to provide additional collateral or to terminate transactions with certain counterparties in the event of a downgrade of the senior debt ratings of the Corporation or certain subsidiaries. The amount of additional collateral required depends on the contract and is usually a fixed incremental amount and/or the market value of the exposure. For more information on credit-related contingent features and collateral, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.

At March 31, 2024, the amount of collateral, calculated based on the terms of the contracts, that the Corporation and certain subsidiaries could be required to post to counterparties but had not yet posted to counterparties was $3.1 billion, including $1.6 billion for Bank of America, National Association.

Some counterparties are currently able to unilaterally terminate certain contracts, or the Corporation or certain subsidiaries may be required to take other action such as find a suitable replacement or obtain a guarantee. At March 31, 2024 and December 31, 2023, the liability recorded for these derivative contracts was not significant.

The following table presents the amount of additional collateral that would have been contractually required by derivative contracts and other trading agreements at March 31, 2024 if the rating agencies had downgraded their long-term

senior debt ratings for the Corporation or certain subsidiaries by one incremental notch and by an additional second incremental notch. The table also presents derivative liabilities that would be subject to unilateral termination by counterparties upon downgrade of the Corporation's or certain subsidiaries’ long-term senior debt ratings.



Additional Collateral Required to be Posted and Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at March 31, 2024

(Dollars in millions)	One Incremental Notch		Second Incremental Notch
Additional collateral required to be posted upon downgrade
Bank of America Corporation	$	132	$	878
Bank of America, N.A. and subsidiaries (1)	40		708

Derivative liabilities subject to unilateral termination upon downgrade
Derivative liabilities	$	5	$	158
Collateral posted	4		63

(1)Included in Bank of America Corporation collateral requirements in this table.

Valuation Adjustments on Derivatives

The table below presents credit valuation adjustment (CVA), DVA and FVA gains (losses) on derivatives (excluding the effect of any related hedge activities), which are recorded in market making and similar activities, for the three months ended March 31, 2024 and 2023. For more information on the valuation adjustments on derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.



Valuation Adjustments Gains (Losses) on Derivatives (1)

	Three Months Ended March 31
(Dollars in millions)	2024		2023
Derivative assets (CVA)	$	62	$	12
Derivative assets/liabilities (FVA)	14		(43)
Derivative liabilities (DVA)	(69)		2

(1)At March 31, 2024 and December 31, 2023, cumulative CVA reduced the derivative assets balance by $297 million and $359 million, cumulative FVA reduced the net derivative balance by $73 million and $87 million, and cumulative DVA reduced the derivative liabilities balance by $230 million and $299 million.

55 Bank of America

NOTE 4 Securities

The table below presents the amortized cost, gross unrealized gains and losses, and fair value of available-for-sale (AFS) debt securities, other debt securities carried at fair value and held-to-maturity (HTM) debt securities at March 31, 2024 and December 31, 2023.



Debt Securities

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in millions)	March 31, 2024								December 31, 2023
Available-for-sale debt securities
Mortgage-backed securities:
Agency	$	37,971	$	28	$	(1,487)	$	36,512	$	39,195	$	37	$	(1,420)	$	37,812
Agency-collateralized mortgage obligations	2,661		8		(219)		2,450		2,739		6		(201)		2,544
Commercial	10,978		66		(469)		10,575		10,909		40		(514)		10,435
Non-agency residential (1)	310		46		(58)		298		449		3		(70)		382
Total mortgage-backed securities	51,920		148		(2,233)		49,835		53,292		86		(2,205)		51,173
U.S. Treasury and government agencies	229,830		81		(1,072)		228,839		179,108		19		(1,461)		177,666
Non-U.S. securities	21,249		23		(21)		21,251		22,868		27		(20)		22,875

Other taxable securities	3,285		2		(49)		3,238		4,910		1		(76)		4,835

Tax-exempt securities	10,134		11		(235)		9,910		10,304		17		(221)		10,100
Total available-for-sale debt securities	316,418		265		(3,610)		313,073		270,482		150		(3,983)		266,649
Other debt securities carried at fair value (2)	10,035		90		(79)		10,046		10,202		56		(55)		10,203
Total debt securities carried at fair value	326,453		355		(3,689)		323,119		280,684		206		(4,038)		276,852
Held-to-maturity debt securities

Agency mortgage-backed securities	457,841		—		(88,505)		369,336		465,456		—		(78,930)		386,526




U.S. Treasury and government agencies	121,658		—		(19,526)		102,132		121,645		—		(17,963)		103,682


Other taxable securities	7,400		—		(1,120)		6,280		7,490		—		(1,101)		6,389


Total held-to-maturity debt securities	586,899		—		(109,151)		477,748		594,591		—		(97,994)		496,597
Total debt securities (3,4)	$	913,352	$	355	$	(112,840)	$	800,867	$	875,275	$	206	$	(102,032)	$	773,449

Form: 10-Q

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